in carloads, minimum 40,000 pounds, between points named in Agent Pope's tariff I. C. C. No. 1896, rates the same as those concurrently applicable on fertilizer and fertilizer materials, as described in item 500 of that tariff, between the same points. The proposed rates are to be established by adding tung-nut pomace to the list of articles named in that item and are to apply over the same routes as the rates on fertilizer and fertilizer materials. The departures under the proposed rates will therefore be the same as the departures existing under the rates on those commodities between the same points.

In Fertilizers Between Southern Points, 113 I. C. C. 389, 123 I. C. C. 193, and 129 I. C. C. 215, the Commission prescribed maximum reasonable rates, based on a distance scale, on fertilizer and fertilizer materials between points in southern territory and provided that, in applying such rates to the longer hauls, the carriers, for the purposes of tariff simplification, may use groups of moderate extent, and measure the rates by distances from and to fairly representative points in such groups. By fourth-section order No. 9346, entered in that proceeding, carriers having circuitous lines or routes between points embraced therein were authorized to establish over any route between such points the lowest rate prescribed on fertilizer and fertilizer materials over any route between the same points, and to maintain higher rates from, to, and between intermediate points, subject to the provision that the rates at higher-rated intermediate points should not exceed the scale prescribed, and subject to certain other conditions, including limitations as to circuity. Departures under the present rates on fertilizer and fertilizer materials are authorized by that order and other outstanding fourth-section orders.

It is further stated that the rates on fertilizer and fertilizer material between points in southern territory and points in official territory named in Agent Pope's tariff I. C. C. No. 1896, are constructed on the basis of the scale applicable generally between points in southern territory.

The following example is representative of the departures that will occur under the proposed rates. From Richmond, Va., to Sanford, N. C., 200 miles over the direct route of the Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. Anderson, receivers), the proposed rate is $3.20. This rate would also apply over the route of the Atlantic Coast Line Railroad Company, 245 miles, or 23 percent circuitous, and would yield earnings of 13.1 mills per tonmile and 26.1 cents per car-mile. The latter earnings are based on the carload minimum of 40,000 pounds. From Richmond to Wade and Jonesboro, N. C., the first and last higher-rated intermediate points, 198 and 243 miles respectively, and Shaw, N. C., the highest-rated

intermediate point, 216 miles, on the indirect route the proposed rates are $3.30, $3.30, and $3.45, respectively. The earnings shown are reasonably compensatory.

Upon this record we conclude that relief, subject to the conditions hereinafter specified, is justified in those instances where departures lawfully exist in the corresponding rates on fertilizer and fertilizer materials.

Applicants will be authorized to establish and maintain for the transportation of tung-nut pomace, in carloads, between points in southern territory and between points in that territory, on the one hand, and points in official territory, on the other, named in Agent Pope's tariff I. C. C. No. 1896, rates the same as those contemporaneously in effect on fertilizer and fertilizer materials, in carloads, between the same points, and to maintain higher rates from, to, and between intermediate points; provided (1) that the authority herein granted shall apply only in those instances where departures from the long-and-short-haul provision of section 4 of the act lawfully exist under authority of outstanding fourth-section orders in the rates on fertilizer and fertilizer materials in carloads from, to, and between the same points, and (2) that the rates from, to, and between such higher-rated intermediate points shall not exceed the rates contemporaneously in effect on fertilizer and fertilizer materials, in carloads, from, to, and between the same points, and shall in no instance exceed the lowest combination of rates subject to the act. In the event that any existing relief with respect to rates on fertilizer and fertilizer materials shall expire or shall be rescinded, the relief granted herein with respect to corresponding rates on tung-nut pomace shall expire contemporaneously therewith. All other and further relief will be denied.

An appropriate order will be entered.

227 I. C. C.

FOURTH SECTION APPLICATION NO. 134701

RATES FROM, TO, AND BETWEEN POINTS IN SOUTHERN TERRITORY

Submitted December 22, 1937. Decided April 4, 1938

Upon further consideration, authority granted applicants to establish and maintain rates between points in southern territory the same as the lowest aggregate of intermediate rates over any route, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. Other reports, 191 I. C. C. 507, 201 I. C. C. 18, 209 I. C. C. 216, 213 I. C. C. 297, and 220 I. C. C. 105.

F. W. Gwathmey, E. A. Smith, W. A. Northcutt, W. N. McGehee, and J. G. Kerr for applicants.

FIFTH SUPPLEMENTAL REPORT OF THE COMMISSION ON FURTHER CONSIDERATION

BY THE COMMISSION:

In our original report herein, 191 I. C. C. 507,2 certain relief from the provisions of section 4 of the Interstate Commerce Act was granted to carriers participating in the class rates prescribed or approved in Southern Class Rate Investigation, 100 I. C. C. 513,3 as well as in connection with commodity rates made a percentage of such class rates. In our fourth supplemental report on further hearing, 220 I. C. C. 105, we accorded additional authority to such carriers, subject to certain limitations, to establish and maintain rates between points in official territory and points in southern territory over routes over which relief with respect to class rates had been granted, made the same as the lowest aggregate of intermediate class and commodity rates in effect over any route. Applicants by their petition of December 20, 1937, now ask for similar relief with respect to rates between points in southern territory. That is to say, carriers in the South wish to meet the lowest combination of class and commodity rates in effect over any route, and to maintain higher rates from, to, and between intermediate points. Rates will be stated in amounts per 100 pounds.

1 This report embraces the applications listed in the footnote of the first page of the original report, 191 I. C. C. 507.

2 Other reports, 201 I. C. C. 18, 209 I. C. C. 216, 213 I. C. C. 297, and 220 I. C. C. 105. Subsequent reports in which the prescribed basis has been modified are 109 I. C. C. 300, 113 I. C. C. 200, and 128 I, C. C. 567.

4

An example of the relief sought is shown by the rates in effect on automobiles from Roseland, Ga., to Laurinburg, N. C. Over the lines of the Southern Railway Company to Atlanta, Ga., Georgia Rail Road & Banking Company to Augusta Ga., Atlantic Coast Line Railroad Company to Johns, N. C., and Laurinburg and Southern Railroad Company to Laurinburg, 390 miles, the applicable first-class rate is $1.34, while over the Southern to Atlanta and the Seaboard Air Line Railway Company (L. R. Powell, Jr., and E. W. Smith, receivers) to Laurinburg, 347 miles, there is a combination rate in effect of $1.18, composed of a commodity rate of 77 cents from Roseland to Hamlet, N. C., and the first-class rate of 41 cents from Hamlet to Laurinburg. The through first-class rate of $1.34 also applies over the Southern to Atlanta, Seaboard Air Line to Dixie, N. C., and the Laurinburg & Southern to Laurinburg, 348 miles. These competing routes desire to meet the combination rate of $1.18 without reducing their rates at intermediate points. Like situations, it is said, also exist in connection with the movement of cottonseed where rates over certain lines have been made to meet truck competition.

The justification for the relief here sought is the same as that with respect to the interterritorial adjustment, more specifically set forth in the fourth supplemental report herein.

Applicants state that the relief desired can be availed of by eliminating reference to finding 17 (f) in paragraph 3 (a) of twentysecond supplemental order No. 11200 issued with the foregoing report. Finding 17 (f) of the report in Southern Class Rate Investigation, supra, had application only to interterritorial rates or where part of the haul was through official territory. The elimination of this reference will, therefore, afford general application of the relief there granted, and remove the restriction to interterritorial rates. The relief here sought will be granted by the amendment of the order as requested.

Operated as the Georgia Railroad by lessees Atlantic Coast Line Railroad Company and Louisville and Nashville Railroad Company.

227 I. C. C.

FOURTH SECTION APPLICATION NO. 153941

EXPORT AND IMPORT RATES FROM AND TO GULF

PORTS

Decided April 4, 1938

Upon reconsideration, authority, previously denied, 211 I. C. C. 395, to establish and maintain export, import, and coastwise rates between certain interior points in Texas, on the one hand, and New Orleans, La., and points taking the same rates, on the other, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act, granted, on conditions. Fourth-section order previously entered denying relief, vacated. Appearances as in prior report, and Rene A. Stiegler, Louis A. Schwartz, and J. H. Rauhman, Jr., for interveners.

REPORT OF THE COMMISSION ON RECONSIDERATION AITCHISON, Commissioner:

In our prior report, 211 I. C. C. 395, we denied these applications, in which several southwestern rail carriers applied for authority to establish and maintain on export, import, and coastwise traffic, from and to certain interior points in Texas, on the one hand, and the port of New Orleans, La.,2 on the other, reduced rates on the commodities named in the appendix thereto, in carloads, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce

Act.

Upon petitions filed on behalf of the Texas & Pacific Railway Company, the Louisiana, Arkansas and Texas Railway Company and connecting carriers, and by the New Orleans Joint Traffic Bureau, all of the applications were reopened, and Nos. 15394 and 15560 were orally argued. At the argument the latter applications were further amended to exclude all points on the Texas & Pacific and connecting carriers west of Sweetwater, Tex.," and letters from the Galveston Chamber of Commerce and the Houston Port and Traffic Bureau were presented withdrawing their opposition to the fourth-section relief prayed, without prejudice to their rights in subsequent proceedings with respect to port equalization.

1 This report also embraces fourth-section applications Nos. 15456, 15540, 15549, 15560, and 15616.

The port of New Orleans includes the so-called subports, such as Amesville, Gouldsboro, Gretna, Harvey, Westwego, Belle Chasse, and Port Chalmette, La.

The connecting carriers are Roscoe, Snyder and Pacific Railway Company, Texas-New Mexico Railway Company, and the Pecos Valley Southern Railway Company.