No. 20735 GENERAL ALLOYS COMPANY v. AKRON, CANTON & YOUNGSTOWN RAILWAY COMPANY ET AL. Submitted January 23, 1929. Decided October 12, 1929 First-class any-quantity rating in official classification on new and old burnt-out chromium-iron-nickel alloy castings and annealing or carbonizing boxes or pots found not unreasonable or unduly prejudicial as applied to less than carloads, but found unreasonable for the future, as applied to carloads, to the extent it exceeds third class. Charles E. Vose for complainant and certain interveners. DIVISION 3, COMMISSIONERS AITCHISON, TAYLOR, AND PORTER Exceptions were filed by complainant to the report proposed by the examiner and the case was orally argued. Complainant, a corporation, at Boston, Mass., manufactures and sells castings and annealing or carbonizing boxes or pots made of an alloyed metal, the metal consisting in major part of chromium, iron, and nickel, with smaller quantities of manganese and silicon. The principal characteristic of the alloy is its heat-resisting properties. Complainant alleges, by complaint filed February 22, 1928, that the ratings in the official classification on its products, either new or when burnt out and returned for remelting, were and are unreasonable and, as compared with the lower ratings on iron or steel castings and iron or steel carbonizing or annealing boxes or pots, were and are unduly prejudicial. We are asked to prescribe reasonable and nonprejudicial ratings for the future and to award reparation on past shipments and on those moving pendente lite. The Crucible Steel Company of America, Case Hardening Service Company of Cleveland, Ohio, and Continental Motors Corporation of Detroit, Mich., intervened. Prior to 1924, castings made of this metal were rated second class, less than carloads, and rule 26, carloads, in the official classification, by analogy with the rating for nickel-copper castings, n. o. i. b. n. On March 25, 1924, at the request of certain shippers, the classification committee undertook to provide definitely for these articles by establishing a rating of first class, any quantity, on "Nichrome Castings, n. o. i. b. n." Upon learning that the term "nichrome" included only a limited number of these heat-resisting alloys, the designation was later changed to read "Chromium-Nickel Alloy." This description was likewise found inadequate and on April 30, 1928, the present item was established. It read as follows: Nickel-Iron-Chromium Alloy : Castings, N. o. I. B. N., as from the mold except that Sinker- Weighing each 50 lbs. or over, loose, or in bundles weigh- 1st Class Provision was first made in the official classification for complainant's carbonizing boxes or pots on September 20, 1924, as nichrome metal, the rating being fixed at first class any quantity. The description was subsequently changed in much the same way as the item covering castings and now reads: Annealing or Carbonizing Boxes or Pots: Nickel-Iron-Chromium Alloy, loose or in packages, any quantity 1st Class The rating on both the castings and boxes is also first class, any quantity, in the southern and western classifications. Complainant contends that the ratings assailed are unreasonable to the extent they exceeded the following: The ratings sought on the articles when new are those applicable to the same articles made of iron or steel, except that iron or steel castings are rated fourth class in less than carloads. The ratings sought on the old or burnt-out articles are those applicable to scrap iron. There is some question as to what represents a fair average value of the commodities under consideration. They are manufactured in three grades. There is no difference in value between the various boxes and castings within each grade. Complainant states that the cheapest grade is worth 30 cents per pound, the highest 85 cents per pound, and the intermediate grade 48 cents per pound. Defendants state that prices quoted to them by consumers range from 75 cents to $1.25 per pound. They concede, however, that these prices probably are somewhat high. Out of 42 representative shipments, 23 consisted of the 48-cent grade and weighed 14,504 pounds, and 19 were of the 85-cent grade and weighed 3,854 pounds. The 30-cent grade is a recent development, only one less-than-carload shipment having been made up to the time of the hearing. Based on the above shipments the weighted-average value is about 55 cents per pound. Complainant states that its products meet competition with castings and boxes made of iron or steel, although the nickel-ironchromium alloy concededly is a much superior product. It also states that iron and steel castings range in value from 5 to 8 cents, and boxes or pots from 8 to 15 cents per pound. Defendants' testimony is that the ordinary range in value of these articles in iron or steel is from 1.5 to 8 cents per pound. In any event complainant's products are very much higher in price than similar articles of iron or steel. In the following table the ratings and values of various highgrade castings taken from the record are shown. Weight-density tests made by complainant disclose that of 105 shipments, 30 weighed less than 50 pounds, 42 weighed 50 to 100 pounds, and 35 weighed over 100 pounds per cubic foot. The lightest weighed 17 pounds per cubic foot. Defendants state that the present rating was established on information, which this record confirms, that the values of chromiumiron-nickel alloy articles were about the same as nickel articles, and as nickel castings were then first class in less than carloads, that rating was established for any quantity of chromium-iron-nickel castings, there being no carload movement of the latter and consequently no necessity for a carload rating. Subsequently, however, the committee reclassified nickel castings at second class in less than carloads, and rule 26 in carloads, and defendants express a willing. ness now to make the same reductions on complainant's products. Complainant has made no carload shipments, but it has had no incentive from a rate standpoint to do so. It was testified that complainant could and would ship in carload quantities if given reasonably related carload and less-than-carload ratings. In our prior decisions we have consistently prescribed first-class less-than-carload and third-class carload ratings for articles of approximately the same or even lower value than the commodities here under consideration, as, for example, automobile horns worth between 40 and 50 cents per pound, in Klaxon Co. v. A. G. S. R. R. Co., 78 I. C. C. 313, and air rifles averaging 46 cents per pound, in Daisy Mfg. Co. v. A. & V. Ry. Co., 81 I. C. C. 44. No reason appears here, other than the seeming acquiescence of defendants, for departing from past practice and prescribing a lower basis for complainant's products. Very little testimony was adduced relating to the burnt-out articles other than the statement that they are broken up and remelted. It is manifest that this fact alone does not support complainant's contention for ratings on such articles lower than those on the new articles. Of course, reasonable ratings on the burnt-out articles should not exceed those on the same articles when new. We find that the ratings assailed on new and old burnt-out chromium-iron-nickel alloy castings and annealing or carbonizing boxes or pots were and are not unduly prejudicial as applied to either carload or less-than-carload shipments, nor unreasonable as applied to less-than-carload shipments, but that as applied to carload shipments the ratings are and for the future will be unreasonable to the extent that they exceed or may exceed third class subject to a minimum not exceeding 36,000 pounds. An appropriate order will be entered. 157 I. C. C. No. 21365 SHREVEPORT CHAMBER OF COMMERCE v. KANSAS CITY SOUTHERN RAILWAY COMPANY ET AL. Submitted May 24, 1929. Decided October 14, 1929. Rates charged on wrought-iron pipe and scrap iron, in carloads, from Port Arthur, Tex., to Shreveport, La., found not unreasonable or otherwise unlawful. Complaint dismissed. W. S. Cornell for complainant. H. B. Muller and W. E. Davis for defendants. REPORT OF THE COMMISSION DIVISION 3, COMMISSIONERS AITCHISON, TAYLOR, AND PORTER BY DIVISION 3: This case was presented under the shortened procedure. Exceptions were filed by complainant to the report proposed by the examiner. By complaint originally received July 2, 1928, on behalf of S. Bender Iron & Supply Company, hereinafter referred to as complainant, a dealer in secondhand pipe at Shreveport, La., it is alleged that the rates charged on four carloads of "scrap pipe " shipped June 29 and July 2, 1926, from Port Arthur, Tex., to Shreveport were and are unreasonable and unduly prejudicial. By amendment filed January 7, 1929, 16 cars moving September 5, 1926, to May 9, 1927, inclusive, from Port Arthur to Shreveport, were included in the complaint. In view of the conclusions hereinafter reached it is unnecessary to determine whether or not any of the shipments covered by the complaint, as amended, are barred from consideration herein. Lawful rates for the future and reparation are sought. Rates will be stated in amounts per 100 pounds. The shipments consisted of used wrought-iron pipe. Upon arrival at Shreveport representatives of complainant and the Western Weighing & Inspection Bureau jointly inspected all of the shipments except one car and agreed as to what portion of each shipment was wrought-iron pipe and what portion was scrap iron. The portion of each car consisting of scrap iron was treated as a separate shipment. Charges were collected at the rates of 17 cents, minimum 50,000 pounds, on the scrap iron and 36.5 cents, minimum 46,000 pounds, on the pipe. The fourth-class rate of 76 cents was applied on the pipe in two cars since it would produce |