Status of Particular Lines: Change in predominant business of Youngstown &
S. Ry. from passengers to freight, coupled with its purchase by Pittsburgh, L. &
W. R., a steam railroad subject to the act, with intent to operate it as part of an
interstate freight route, and relation between the carriers through joint officers
and directors, changed its status from an interurban electric line exempt from the
provisions of the act into one subject to the act in all respects, even before con-
struction of extension connecting it with the Lisbon made possible its operation
as part of the new route; and such construction and operation fixed its status for
the future. Pittsburgh, L. & W. R. Co. Practices, 73 (91).
Interurban Electric Ry. Co. found to be part of a general steam railroad system
and not within exemption provisos of sec. 1 (a) of Railroad Retirement Act and
Carriers Taxing Act, by reason of its organization by Southern Pac. Co. for
purposes of operating passenger service between San Francisco and Oakland,
Calif., and of operating East Bay Electric Lines in passenger and freight service,
in connection with Southern Pacific system; and by further reason of its employ-
ment of Southern Pacific employees with interchangeable seniority rights. Inter-
urban Electric Ry. Co., 589.
The Union Stock Yard & Transit Co. of Chicago found to be a common carrier
by railroad, subject to the provisions of the act, in respect of services it performs
at the Union Stock Yards in Chicago, Ill., in connection with the unloading and
loading of carload shipments of livestock transported by railroad in interstate
commerce to and from the yards. Cancelation of Livestock Services at Chicago,
716.
While the Union Stock Yard & Transit Co. leased its railroad properties sub-
sequent to the decision of the Supreme Court that it was a common carrier, the
lease did not accomplish any change in the company's status, since it could not
divest itself of its common-carrier status by contract. Id. (720).
Tests to Determine Status: Construction of extension of Youngstown & S. Ry.
to connect with Pittsburgh, L. & W. R., and operation thereof as part of new
railroad freight route intended for interstate transportation and therefore subject
to the act, fixed the status of the Suburban for the future as a common carrier
subject to the act, regardless of whether it was theretofore an interurban electric
line exempt from requirements of sec. 1 (18). Pittsburgh, L. & W. R. Co. Prac-
tices, 73 (89, 91).
That Youngstown & S. Ry., although built primarily for passenger transporta-
tion, had handled freight from the outset; that its track was on private right-of-
way; that its construction, while lighter than the usual steam-railroad type, was
suitable to freight traffic and its grades and curvatures not excessive compared
with steam railroads generally; and that its freight traffic had become its chief
source of revenue, were significant in determining that it was not an interurban
electric railroad exempt from the act when extension was built connecting it with
Pittsburgh, L. & W. R. and making it part of an interstate freight route. Id. (90).
A lease of the railroad properties of the Union Stock Yard & Transit Co., by
terms of which the Company covenanted, if called upon by its lessees, to exercise
its charter powers as a railroad to condemn any lands needed in connection with
operation of the leased property and to keep alive its charter powers as a railroad
during the term of the lease, to preserve its power of eminent domain, did not
accomplish any change in the Company's status under the act. Cancelation of
Livestock Services at Chicago, 716 (720).
COMMON CONTROL, MANAGEMENT, OR ARRANGEMENT. See also
SYSTEM.
Transactions of officers and stockholders of Pittsburgh, L. & W. R. and Youngs-
town & S. Ry. indicated that they were under the same management and control
when extension of the Suburban to connect with the Lisbon was authorized. At
that time the Suburban was controlled by the Lisbon through stock ownership,
and although the stock of the Suburban was subsequently sold to Pittsburgh
Coal Co., and the stock of the Lisbon sold to the coal company by Montour R.,
which was itself controlled by the coal company, the change of ownership merely
placed direct control of both carriers in that company, which already controlled
them indirectly through its ownership of the Montour and through joint officers
and directors, and did not affect the plan for the extension, which was carried out
under the authorization given while the Lisbon had control. Pittsburgh, L. &
W. R. Co. Practices, 73 (92–93).
That officers and directors of Youngstown & S. Ry., an interurban electric line,
and of Pittsburgh, L. & W. R. and Montour R., common carriers subject to the
act, were with one or two exceptions the same, and that the capital stock of all
three was owned by a single corporation, were indications that the Suburban was
operated as part of a general steam-railroad system. Id. (101).
COMPENSATORY RATES.
Section 4 contains no provision relating to the compensatory character of an
intermediate rate but the Commission may, as provided in sec. 15, prescribe just
and reasonable minimum rates. Automobiles and Chassis to Chicago, Ill., 223
(224).
Proposed establishment of proportional rates on sugar from Wheatley, Ark., to
points in northwestern Arkansas was found justified. Earnings under proposed
rates compared favorably with those in the Southwest and rates would be com-
pensatory. Sugar from Wheatley, Ark., to Arkansas Points, 431.
Proposed reduced rates on malt liquors from New Orleans, La., to Texas, lower
than total charges over steamship and barge-truck routes, found not to violate
sec. 1 (5) and 15a (2). Although lower than reasonable maxima, they were
compensatory; and factors other than freight rates, which influenced the choice
of routes, indicated that equality of rates over the competing routes was not
necessary for each to share in the traffic. Malt Liquors from New Orleans to
Texas Points, 439 (447).
Carrier: Proposed rates on malt liquors from St. Louis, Mo., Lexington, Ky.,
and Ohio River crossings to Miami, Tampa, and other points in Florida, to meet
competition over water routes, and transportation by truck from manufacturing
points to destinations within that State, found justified. Malt Liquors from River
Crossings to Florida, 285.
Allowance for driving horses from a sales yard in Miles City, Mont., to loading
pens of carriers at that point, without similar allowance from other points in
Miles City, could not be justified solely on the ground of carrier competition at
the sales yard. The exigencies of competition do not justify the more favorable
treatment which would be accorded shippers of horses using the sales yard.
Allowance for Driving Horses at Miles City, Mont., 387 (389).
Authority to maintain export and coastwise rates on cotton from stations in
western Texas to New Orleans, La., and other Gulf ports, lower than rates in
effect from intermediate points, to meet carrier competition, denied. Carrier's
objection to disturbing the so-called normal adjustment from intermediate origins
had little merit in view of the fact that a competing carrier observed the fourth-
section departure in connection with its rates. Neither did the threat of another
carrier to reduce its rates from a few intermediate points to Houston, Tex., make
it a "special case" within the meaning of the statute. Cotton from West Texas
to Gulf Ports, 415 (417).
Although proposed substitution of service of Railway Exp. Agency, Inc., for
that of Southeastern Exp. Co. on Southern Ry. and affiliated lines would curtail
competition, economies and benefits of uniform operation by a single company
would offset any advantage to the public from operation of separate companies;
and keen competition developed by other transportation agencies should prevent
any lapse in continued improvement of express service. Moreover, rates and
practices of Express Agency would be as fully subject to regulation and control
by Commission as when both companies were operating. Railway Exp. Agency,
Inc., Pooling Application, 517 (523).
In the following cases, fourth-section relief was granted to establish rates on
specified commodities, to meet carrier competition: Automobiles from Evansville,
Ind., 693; Beverages and Beverage Containers in the East, 173; Coal to Buffalo,
Rochester, and Salamanca, N. Y., 525; Coal to Hagerstown and Security, Md.,
303; Coke to Palmerton, Pa., 269; Imported Fertilizer Materials from Norfolk,
Va., 713; Package Salt Between Kansas Points, 696; Pig Iron from Alabama and
Tennessee, 631; Rails and Track Material to Southwest, 459; Road Building
Material from Tampa, Fla., 185; Tobacco to Houston, Tex., 309 (316).
Competitive Rates: See SUBNORMAL RATES.
Market: Competition between Far West and Midwest transit operators in sale
of millwork in eastern markets was governed by demand rather than freight rates;
and reduced charges on inbound lumber accorded Midwest manufacturers under
transit provision authorizing refund of a portion of rates representing wastage did
not unduly prejudice Far West mills, since they were in a better position than
the Midwest mills in respect of aggregate transportation costs per equal weight
of millwork. Transit Lumber, Pacific Coast to Eastern Destinations, 189 (198).
When greater increases in rates on wallboard from New Orleans, La., to im-
portant consuming points, under basis proposed to southern and official territories,
would injure New Orleans shipper in marketing its product, and no special justifi-
cation was offered in that regard, the proposed revision was not justified. Wall-
board Between Southern and Official Territories, 235 (242).
Although market competition has been recognized as affording proper basis for
fourth-section relief, the granting of relief on that basis is ordinarily limited to
instances where a special showing is made as to the justification for the more
favorable treatment of the more distant than of the intermediate points, and a
mere showing of difference in the rates from the different producing points to
common markets is not regarded as sufficient. Kalsomine to South Atlantic and
Florida Ports, 419 (421).
Proposed additional rate on malt liquors, in tins or glass, boxed, from St. Louis,
Mo., Peoria and Chicago, Ill., and Milwaukee, Wis., to Pacific coast points, to
enable midwestern brewers to meet local competition, found justified. Malt
Liquors from Midwestern Points to Pacific Coast, 494.
Motor Carrier: It is a carrier's privilege to maintain a rate lower than a
maximum reasonable rate if it is no lower than the minimum of reasonableness
and no lower than is necessary to meet truck competition. Automobile and
Chassis to Chicago, Ill., 223 (226).
There is comparatively little long-haul truck competition in the transportation
from the South of watermelons of the quality generally offered the railroads in
southern territory. Trucks make their greatest inroads in the handling of melons
to markets within the South. Georgia Public Service Comm. v. Alabama G. S. R.
Co., 375 (383).
Proposed reduced rates on sheet-iron or steel cans, from Baltimore, Md., to
Bridgeton, N. J., to meet motor-carrier competition, which would not be un-
reasonably low but would result in fourth-section departures at intermediate
points, found not justified without prejudice to filing new schedules in conformity
with the findings. Cans from Baltimore, Md., to Bridgeton, N. J., 391.
Proposed establishment of proportional rates on sugar from Wheatley, Ark.,
to points in northwestern Arkansas, to meet motor competition, was found justi-
fied. Sugar from Wheatley, Ark., to Arkansas Points, 431.
Petition for vacation of prior findings prescribing rate relationship between
Cambridge, Minn., district and Red River district in Minnesota and North
Dakota on potatoes to Chicago, Ill., and St. Louis, Mo., to permit reductions in
rates from Cambridge district to meet truck competition, without corresponding
reductions from the Red River district, or for modification to permit differentials
from the Red River district not in excess of those which would obtain if 27.5
percent of first-class rates were applied from both districts, was denied. It was
not shown that competitive conditions had changed, and any increase in existing
spreads would be unduly prejudicial. Grand Forks Commercial Club v. Ahnapee
& W. Ry. Co., 605.
Preference and Prejudice: See PREFERENCE AND PREJUDICE.
Rail-and-Water: Fourth-section relief was granted, on conditions, in the
following cases, to meet rates in effect over rail-water-rail or water-and-rail routes:
Victor Lynn Transp. Co. Rates, 535; WOOD Pulp to Fredericksburg, Va., 570.
Shipper's Ability to Meet: See MARKET under this heading.
Water: See also RAIL-AND-WATER under this heading.
Proposed reduced rates on malt liquors from St. Louis, Mo., Lexington, Ky.,
and Ohio River crossings to Florida destinations, to meet water competition, were
not made with relation either to the barge-steamer rates from the origins, to the
ocean rates from New Orleans, or to the north Atlantic seaboard, but were pub-
lished as a result of the best judgment of shippers and carriers as to the rates
which would permit movement of the commodity from origins considered to
Florida points and sale in the latter territory in competition with malt liquors
locally manufactured and that which moves in by water. Malt Liquors from
River Crossings to Florida, 285 (289).
Since the greater preponderance of beer traffic to points in Florida is moved
by water, it could not be said that the participation of rail lines in that traffic
to a greater extent than at present will be contrary to the interests and purposes
of sec. 500 of the Transportation Act, 1920. Id. (289).
That water-competitive rates are below normal does not warrant fourth-section
relief with respect to traffic from points not subject to the same competition.
Tobacco to Houston, Tex., 309 (314).
Rate on hops from Salem, Oreg., to Miami, Fla., found not unreasonable com-
pared with rates to eastern destinations approved in 25 I. C. C. 13, as modified
by authorized general percentage changes, to meet water competition, and the
alternative bases subsequently established. S. S. Steiner, Inc., v. Northern Pac.
Ry. Co., 434.
Proposed reduced rates on malt liquors from New Orleans to Texas ports, lower
than total charges via steamship and barge-truck routes, found not to violate
sec. 500 of Transportation Act, 1920, under interpretation in 292 U. S. 282 that
fostering of both rail and water transportation does not require rail carriers to
maintain prohibitive rates in order to preserve profits of competing water carriers,
but only that Commission shall promote the interests of both impartially where-
ever regulation of both water and rail rates is involved; and that reduced but
compensatory rail rates which do not directly affect rates of competing water
lines are not necessarily unlawful. Malt Liquors from New Orleans to Texas
Points, 439 (446-447).
Proposed reduced rates on malt liquors from New Orleans, La., to Texas, lower
than total charges over steamship and barge-truck routes, found not to violate
sec. 1 (5). Although lower than reasonable maxima, they were compensatory,
and factors other than freight rates, which influenced the choice of routes, indi-
cated that equality of rates over the competing routes was not necessary for each
to share in the traffic. Id. (447).
Proposed additional rate on malt liquors, in tins or glass, boxed, from St. Louis,
Mo., Peoria and Chicago, Ill., and Milwaukee, Wis., to Pacific coast points, to
enable midwestern brewers to meet competition by water from St. Louis and
Peoria, found justified. Malt Liquors from Midwestern Points to Pacific Coast,
494.
Findings in 177 I. C. C. 123 and 197 I. C. C. 215, of undue prejudice to inter-
state transportation, were modified to exempt intrastate movements of crushed
stone and screening from Johns Island, S. C., to Charleston, S. C., to enable
carriers to meet barge competition. Rates on Sand, Gravel, and Crushed Stone,
538.
In the following cases, fourth-section relief was granted, with conditions, to
enable carriers to meet water competition: Copper from Western Territory to
the East, 613; Cordage Oil to New Bedford and North Plymouth, Mass., 462;
Paper Bags to Norfolk and Newport News, Va., 247; Tobacco to Houston, Tex.,
309 (311).
In the following cases, fourth-section relief sought in order to meet competition
by water was denied: Kalsomine to South Atlantic and Florida Ports, 419; Mo-
lasses from North Atlantic Ports, 254.
Water-and-Rail: See RAIL-AND-WATER under this heading.
COMPLAINTS.
In General: Objections to a complaint should be made promptly, and ordinarily
cannot be countenanced if delayed until day of hearing. General rule is that
alleged defects in definiteness must be brought to attention of the court by motion
to make more definite and certain or for a bill of particulars. Such a motion
must be seasonably filed, which is generally held to mean before pleading to the
merits or before trial; and failure to so file precludes defendant from raising such
objections subsequently. Cicardi Bros. Fruit & Produce Co. v. Atlantic Coast
Line R. Co., 67 (71–72).
Informal: Finding that informal complaint which failed to show all details
of shipments on which reparation was sought was sufficient in substance, from
a strictly legalistic standpoint, to stop the running of the statute should not be
construed as approving failure to furnish details referred to in Rules of Practice,
since efficient functioning of the Bureau of Informal Cases and the settlement
of claims with reasonable expedition require that details, if available, be included
in informal complaints. Cicardi Bros. Fruit & Produce Co. v. Atlantic Coast
Line R. Co., 67 (71).
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