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).
In the following cases, fourth-section relief was granted or modified: Auto-
mobiles from Evansville, Ind., 693; Beaufort & M. R. Rates, 272; Beverages and
Beverage Containers in the East, 173; Clay from the South, 351; Coal from
Meyersdale District to Niagara Frontier, 533; Coal to Buffalo, Rochester, and
Salamanca, N. Y., 525; Coal to Hagerstown and Security, Md., 303; Coke to
Palmerton, Pa., 269; Copper from Western Territory to the East, 613; Cordage
Oil to New Bedford and North Plymouth, Mass., 462; Export and Import Rates
from and to Gulf Ports, 61; Fuel Oil from South Atlantic and Virginia Ports, 465;
Imported Fertilizer Materials from Norfolk, Va., 713; Import rates from Gulf
Ports to Central Territory, 552 (555); Iron and Steel in the South, 180; Lime from
Berwick, La., 275; Lime from Trunk Line to Central Territory, 358 (361); Lime
to Lower Mississippi River Crossings, 409; Melons from Western Points to Offi-
cial Territory, 257; Package Salt Between Kansas Points, 696; Paper Bags to
Norfolk and Newport News, Va., 247; Pig Iron from Alabama and Tennessee,
631; Potatoes from the South to Canada, 557; Rails and Track Material to South-
west, 459; Road Building Material from Tampa, Fla., 185; Soap and Soap Powders
in the Southwest, 469; Tobacco to Houston, Tex., 309 (311); Tung Nut Pomace
from and to the South, 56; Victor Lynn transp. Co. Rates, 535; Wood Pulp to
Fredericksburg, Va., 570.
In the following additional cases, fourth-section relief was denied: Cement to
Central Vermont Ry. Points, 300; Cotton from West Texas to Gulf Ports, 415
(417); Kalsomine to South Atlantic and Florida Ports, 419; Lime to Lower Missis-
sippi River Crossings, 409 (414); Molasses from North Atlantic Ports, 254.
MAILS.
Air Mail: See AIR MAIL.
MANAGEMENT.
After half a century of unrestricted managerial discretion, Congress passed the
act to regulate commerce and created the Commission for the specific purpose of
interfering with managerial discretion insofar as might be necessary to insure
compliance with that law. Purpose of all governmental regulation of business
is to interfere with managerial discretion where it is inconsistent with the dis-
cretion of the lawmakers, as expressed in the law of the land, and those who inter-
pret and administer the law. Eastern Passenger Fares in Coaches, 17 (29).
What can be done to make the passenger service of railroads in the eastern dis-
trict profitable as a whole is a matter primarily for the carriers. Id. (29).
MARKET COMPETITION. See COMPETITION.
Competition: See COMPETITION.
Equalization: See EQUALIZATION.
MAXIMUM RATES.
In General: 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. Automobiles and Chassis to Chi-
cago, Ill., 223 (226).
Localities: Maximum reasonable rates were prescribed or determined in the
following cases between the localities specified:
New Orleans, La.: Wallboard Between Southern and Official Territories,
235 (242).
Points intermediate between St. Louis, Mo., Peoria and Chicago, Ill., and
Milwaukee, Wis., on the one hand, and Pacific coast points, on the other.
Liquors from Midwestern Points to Pacific Coast, 494 (495).
In General: A doubt as to whether proposed single-line or joint-line rates on
bunker coal from Alabama mines to the Gulf ports were less than minimum
reasonable rates was resolved in favor of carriers. The showing by carriers and
shippers served by them was persuasive that the proposed rates to Mobile, Ala.,
and to Pensacola, Fla., offered practically the only alternative to the loss to the
producing competitors at Hull and Empire, Ala., and to the unregulated Govern-
ment barge line of substantially all of the bunker coal which moved to those ports
from mines on carriers' lines. Bunker Coal from Alabama Mines to Gulf Ports,
485 (493).
Prescription by Commission: 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.
and Chassis to Chicago, Ill., 223 (224).
MINIMUM WEIGHTS. See also WEIGHTS AND WEIGHING.
Car Capacity: Minimum weight on a carload of asphalt-coated stone from
St. Louis, Mo., to Effingham, Ill., based on capacity of larger car furnished for
carrier's convenience, was found unreasonable. Reasonable minimum based on
capacity of smallest available car determined and reparation awarded. Granite
Bituminous Paving Co. v. Pennsylvania R. Co., 679.
When shipper ordered smaller cars than were available, minimum weight should
have been based on smallest car available to carriers. Id. (679).
Under an interchange rule at point of origin, that carriers performing switching
service should furnish cars ordered without calling on the line-haul carriers, the
determinitation of minimum weight when larger car than ordered is furnished
by carrier should not be predicated on available equipment of line-haul carriers
alone, but on the total of such equipment owned by carriers serving the origin.
Id. (680).
Carrier's Convenience Rule: When shipment tendered as less than carload,
loaded by shipper and unloaded by consignee, could have been loaded in a standard
car with double doors, shipper presumably would not have ordered a longer car
if shipment had been tendered as a carload. Therefore, under classification rule
34, minimum weight to be applied in connection with carload rate applicable
under rule 15 should be that for a standard car and not that for longer car furnished
by carrier solely for its convenience. Penn Metal Corp. of Pa. v. Delaware &
Commodities: Minimum weights were involved or fixed in the following case:
Pulp, wood: Columbian Paper Co. v. Norfolk & W. Ry. Co., 373.
Graduation: As shipper had informed carrier that bulky character of shipment
required a double-door box car, and no particular length of car was specified,
shipment being tendered as less than carload, classification provision for applica-
tion of graduated minimum weight was not applicable in connection with carload
rate when shipment could have been loaded in a standard car with double doors
and a longer car was furnished solely for carrier's convenience. Penn Metal
Corp. of Pa. v. Delaware & H. R. Corp., 167 (169).
Two-for-One: See CARRIER'S CONVENIENCE RULE under this heading.
MISQUOTATION. See QUOTATION OF RATES.
Shipment tendered to steamship line for water-and-rail movement, and forwarded
over its line in accordance with bill-of-lading routing, was not misrouted, although
through rate named in bill of lading did not apply via that line. As initial
carrier, it was entitled to a line haul and was not obligated to protect the lower
rate named by delivering shipment at origin point to a competing line over which
such rate applied. Charles Ilfeld Co. v. Southern Pac. S. S. Lines, 291 (295–296).
MIXED CARLOADS.
In General: Carload shipments of vegetables packed in both standard and
nonstandard containers were considered mixed-carload shipments. American
Fruits Growers, Inc., v. Alabama G. S. R. Co., 139 (148).
Class rates and classification rule for mixed carloads were found applicable on
shipments consisting of two or more kinds of vegetables that took different class
rates although packed in standard containers. Id. (149).
Rate revision resulting in both increases and reductions did not warrant award
or reparation based on subsequently established rate applicable under a mixed-
carload rule. Robinson Clay Products Co. v. Baltimore & O. R. Co., 449 (450).
Charges: Charges on mixed carload of clay sewer pipe, clay flue lining, fire
brick, and fire clay from Parral, Ohio, to Broadalbin, N. Y., under mixed-carload
rule, found unreasonable to the extent that the applicable commodity rate exceeded
sixth-class rate, plus emergency charge. Reparation awarded. Robinson Clay
Products Co. v. Baltimore & O. R. Co., 449.
MOOT CASES.
Motion to vacate reopening of suspension proceeding on ground that the con-
troversy had become moot, Commission having declined to suspend revised
schedules conforming to its findings, denied. Lawfulness of such schedules was
properly before Commission on further hearing, and such findings and order
could be made as the record warranted. Transit Lumber, Pacific Coast to Eastern
Destinations, 189 (190).
General rule is that alleged defects in definiteness of pleadings 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 at least 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 (72).
MOTOR COMPETITION. See COMPETITION.
While points north of Chicago switching district and alleged preferred points
within that district have developed into a continuous metropolis, it did not
follow that with every enlargement of the suburban area of a community a rate
thereto, the same as to the original community, must be established. If this
were so, an increase in the average service rendered might warrant an increase
in the established rate to the original community. Wigginton v. Chicago & N.
W. Ry. Co., 41 (49).
In General: Where complainants are not parties to the transportation records
of the shipments for which reparation is sought, carriers are entitled to due
notice thereof. American Fruit Growers, Inc., v. Alabama G. S. R. Co., 139 (146).
227 I. C. C.
Nonbeneficial Title: Purpose of a notice of nonbeneficial title filed in accord-
ance with sec. 3 (2), as amended, is to relieve a consignee, acting as an agent for
the beneficial owner, from liability under any undercharge which may be found to
be due on the shipment included in the notice. Commission has recognized the
right of any factor or agent who was consignee and who paid freight charges, to
maintain in his own name an action to recover excessive charges in the interest
of his principal, and this right was not abrogated by the amendment to sec. 3 (2).
American Fruit Growers, Inc., v. Alabama G. S. R. Co., 139 (145).
Schedules: See SCHEDULES.
OPERATING AND TRANSPORTATION CONDITIONS.
SIMILAR CIRCUMSTANCES AND CONDITIONS.
Difficulties: Maintenance of rates relatively higher to points in northern
peninsula of Michigan than to points in Wisconsin was justified, considering that
weather conditions in the peninsula are unusually severe in winter months and,
as a consequence, operating costs are substantially higher and traffic volume
considerably less, than in Wisconsin. Hansen & Jensen Oil Co. v. Alton & S. R.,
219 (221).
Through routes from Chemical, Pa., over Bellefonte Central R. to Tyrone, Pa.,
and Pennsylvania R. beyond, were not necessary or desirable in the public
interest when, because of unfavorable operating conditions on the Bellefonte
Central, they would be less economical and efficient than existing routes via
Milesburg, Pa., which short hauled that line. Bellefonte Central R. Co. v.
Pennsylvania R. Co., 699 (704).
ORDERS. See also INVESTIGATION AND SUSPENSION.
Violation: Construction by Pittsburgh Coal Co. of private railroad from
Smiths Ferry, Pa., to connection with subsidiary common carrier at Negley, Ohio,
as part of through route planned for transportation of its coal from Ohio River to
Youngstown, Ohio, did not defeat findings in 150 I. C. C. 43 and 619, denying the
subsidiary authority for extension between the same points. While there was no
material physical difference between the proposed extension and the line con-
structed, movement planned over the former was interstate common carriage,
and that established over the latter was private carriage. Pittsburgh, L. & W.
R. Co. Practices, 73 (99-100).
OUTBOUND RATES. See INBOUND RATES.
OUT-OF-LINE HAULS.
Tariff provisions for additional distance charges for extra service where transit
station is not located on the direct line of movement from origin to final desti-
nation, via ordinarily-used routes, did not authorize generally reverse movements
on direct routes without charge. Rates from origins to final destinations, whether
based on arbitraries to transit station or not, do not include backward or forward
movements on routes ordinarily used where no definite provision is made for
inclusion of such movements. Unless specifically and definitely authorized, no
published rate applies on shipments accorded reverse-haul service. Stout v.
Alton R. Co., 281 (284).
Complainants, Generally: Under a complaint brought in the name of a
partnership whose assets and liabilities were subsequently taken over by a cor-
poration, claims on shipments moving after the formation of the corporation could
not be considered, since corporation was not a party complainant. American
Fruit Growers, Inc., v. Alabama G. S. R. Co., 139 (156).
Defendants Necessary: Where an unreasonable joint rate has been collected,
the liability of the parties is joint and several and reparation may be awarded,
although not all of the carriers participating in the transportation are made
parties defendant. Failure to name all participating carriers as defendants was
not a fatal defect. Swift & Co. v. Atchison, T. & S. F. Ry. Co., 579 (587).
PASSENGERS.
Aggregate of Intermediates, Fares Exceeding: Relief from the aggregate-of-
intermediates provision of sec. 4, granted in connection with one-way local, inter-
division, and joint passenger fares between stations on applicants' lines within
trunk-line and central passenger association territories, except that the higher
fares should not exceed those on bases prescribed or approved in 214 I. C. C. 174.
Eastern Passenger Fares, 232.
Cost of Service: Difference in cost of operating the average train when
filled and when empty or partly filled is negligible. Eastern Passenger Fares in
Coaches, 17 (25).
Survey of passenger service and costs made by Federal Coordinator of Trans-
portation, discussed. Id. (25).
Maximum reasonable fare on carrier's line serving downtown Manhattan,
New York, N. Y., should be somewhat less than its uptown line when cost of
service per passenger was substantially greater on the latter. Passenger Fares of
Hudson & M. R. Co., 741 (754).
Extra Fares: See FARES AND CHARGES under this heading.
Fares and Charges: Proposed increase in passenger coach fares on eastern
carriers, including Pocahontas region, from 2 to 2.5 cents, found not justified.
Since coach service on such carriers is being operated at a profit and pullman serv-
ice at a substantial deficit, revenue difficulties in passenger-car service lie in
reserved-car service rather than in coach service, and any readjustment in present
fare basis which would result in diverting a substantial number of passengers
from coach to pullman would be detrimental to carriers' revenues. Further
experimentation in passenger fares by disturbing the only basic fare of carriers
which holds promise of returning a profit would be of doubtful wisdom, from a
revenue standpoint. Eastern Passenger Fares in Coaches, 17 (24-26, 28-29).
Extra fares charged for extraordinary or alternate coach service, found not
unreasonable when it was faster and more comfortable than standard coach
service, following 214 I. C. C. 174, approving extra fares for de luxe pullman
services. Id. (31).
While results of existing passenger-fare basis in the East and of increased
coach fares in the South were not conclusive that proposed increased coach fares
on eastern railroads would result in revenue increases, carriers' unfavorable financial
condition warranted according them every reasonable opportunity to augment their
revenues; and whether proposed basis would improve revenues could be deter-
mined only by actual test and careful analysis. Proposed basis was therefore
authorized for an experimental period of 18 months, during which carriers should
keep as complete a record as practicable of gross and net revenues from passenger-
train service. Eastern Passenger Fares in Coaches, 685 (689).
Finding in 214 I. C. C. 174, authorizing 10-cent minimum passenger charge
for all classes of equipment applied to noncommutation traffic only, and fur-
nished neither authority for increasing fare of Hudson & M. R. on commuter
traffic, nor criterion of what that fare should be. Passenger Fares of Hudson &
M. R. Co., 741 (751).
What is a reasonable passenger fare for a particular service depends greatly
on the value of the service to the patron; but it also depends on the revenue
needs of the carrier. Id. (753).
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