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 com-
petitors at Hull and Empire, Ala., and to the unregulated Government 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).
Proposed reduced rates on bunker coal from Alabama mines over interstate
routes to Mobile, Ala., and Pensacola, Fla., as related to rates in effect from
Brilliant, Ala., to the same ports, were found not justified since they would
subject the mine at Brilliant to undue and unreasonable prejudice and disad-
vantage. Suspended schedules ordered canceled without prejudice to the filing
of new schedules. Id. (493).
Finding in 226 I. C. C. 164, that proposed reduced rates on lumber from Decatur,
Ala., to Gulf ports for export were not justified, affirmed. Differences in distances
from Decatur to New Orleans, La., on one hand, and Mobile, Ala., and Pensacola,
Fla., on the other, created dissimilar transportation conditions justifying 3-cent
rate spread, New Orleans over Mobile; proposed grouping of New Orleans with
Gulfport, Miss., would unduly prejudice Gulfport, locational advantages of
which should be recognized; but rate of 1.5 cents under that to New Orleans
would be lawful. Lumber from Decatur, Ala., to Gulf Ports, 793 (794).
Voluntary: Subsequent reduction of a rate does not alone warrant finding
the prior rate unreasonable. Hallet & Carey Co. v. Chicago, St. P., M. & O.
Ry. Co., 457 (458).
In the following cases, rates assailed were found unreasonable in comparison
with lower rates subsequently established: Armour & Co. of Delaware v. Erie
R. Co., 177 (178); Winner v. Pennsylvania R. Co., 5.
REFUND. See SPECIAL Docket; Waste (Allowance for, in Transit RULES).
RELATION OF RATES.
In General: The class-rate adjustment affords a general yardstick for meas-
uring the relation of rates throughout official territory. That class rates have
been prescribed on particular commodities between certain points in the terri-
tory is entitled to weight in dealing with rates for the transportation of those
commodities between other points in the territory These considerations alone,
without supporting data with respect to the actual transportation involved, are
not sufficient to warrant approval of increases to the class basis of rates on such
commodities from different origins, which are lower. Fruits, Vegetables, and
Hay in Official Territory, 210 (217).
Rate relations established and maintained over a long period, to which busi-
ness has become accustomed, should not be lightly disturbed. Wallboard Be-
tween Southern and Official Territories, 235 (242).
Since the proposed adjustment of rates on fresh meats from interior Iowa and
Minnesota points to the East went beyond finding in 220 I. C. C. 171 and em-
braced a new adjustment, burden of justifying the proposed rates rested upon
carriers and was not sustained. Proposed adjustment would break up long-
established relations between, and grouping of, interior Iowa points, create new
prejudices and preferences, and fail to remove many of the old ones. Fresh
Meats from Iowa and Minnesota to the East, 765 (773).
While increased rates approved on fresh meats from interior Iowa and Minne-
sota points to eastern destinations would result in some rates in excess of the
aggregate of intermediates, isolated instances should not preclude the establish-
ment of such an extensive rate adjustment which would be otherwise just and
proper. Carriers should consider the situation to determine whether combi-
nation factors could be increased to avoid fourth-section departures. Id. (783).
Commodities: Rates on low-grade petroleum products 80 percent of the
rates on refined products were not unreasonable. Hansen & Jensen Oil Co. v.
Alton & S. R., 219.
Rates from Whiting, Ind., to destinations in Oklahoma, found unreasonable
for the future to the extent that they might exceed rates from Wood River upon
the basis of 80 percent of rates on refined petroleum oils in effect prior to general
commodity increases of 1937, plus 6 cents. Stanolind Pipe Line Co. v. Alton
R. Co., 619.
Intrastate with Interstate: See INTRASTATE COMMERCE.
Localities: Interstate rate on coal over Pittsburgh, L. & W. R. and Youngs-
town & S. Ry. from Leetonia, Ohio, district to Youngstown, Ohio, lower than
minimum ex-river rate prescribed from Colona and Conway, Pa., was too low,
considering relative distances and transportation conditions. Reasonable rate
should not exceed or be less than 50 cents under all-rail rate from Pittsburgh, Pa.,
district, and 50 cents, plus existing differentials over the Pittsburgh rate, under
all-rail rates from other related districts. Pittsburgh, L. & W. R. Co. Prac-
tices, 73 (122).
When increased rates on wallboard from New Orleans, La., under proposed
basis from southern origins to southern and official territories, would adversely
affect relations of New Orleans shipper with competing producers in the South
and in other territories, without special justification therefor, proposed revision
was found not justified in that respect; but similar adjustment under which
rates from New Orleans should in no case exceed the highest of the respective
rates from Greenville and Laurel, Miss., and Pensacola, Fla., would be justified.
Wallboard Between Southern and Official Territories, 235 (242).
Comparison of rates on coal from the Fulton-Peoria group to Wisconsin points
with rate from southern Illinois base group indicated that the relationship in
rates between those groups compared favorably with the relationships between
other Illinois groups and the base group. Also, the differential, Fulton-Peoria
over northern Illinois, compared favorably with the differentials over northern
Illinois maintained from other Illinois groups. Creamery Package Mfg. Co. v.
Alton R. Co., 322 (342).
Relation between rates on coal to Janesville, Wis., from mines in Illinois and
Indiana groups and in western Kentucky, on the one hand, and rates to Janes-
ville from other mines whether within the same groups, or within other Illinois
groups, on the other, found unduly prejudicial to the extent that such relation-
ships differ from those existing prior to the effective date of rates prescribed in
215 I. C. C. 225. Former finding reversed, and proper relationship of rates
restored. Id. (343).
Upon further hearing, petition for vacation or modification of findings in 147
I. C. C. 201, 176 I. C. C. 309, 179 I. C. C. 107, and 195 I. C. C. 579, prescribing
or modifying rate relationship between Cambridge, Minn., district and the Red
River district in Minnesota and North Dakota on potatoes to Chicago, Ill., and
St. Louis, Mo., was denied. Grand Forks Commercial Club v. Ahnapee & W.
Ry. Co., 605.
Rates from Whiting, Ind., to destinations in Oklahoma found unreasonable for
the future to the extent that they might exceed rates from Wood River, Ill.
Stanolind Pipe Line Co. v. Alton R. Co., 619.
Water with Rail: See WATER-AND-RAIL.
REOPENING.
Motion to vacate order reopening of suspension proceeding on ground that the
controversy 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).
On Commission's own motion, former report in 215 I. C. C. 225, reopened for
consideration as to reasonableness of coal rates for the future. Creamery Package
Mfg. Co. v. Alton R. Co., 322 (327).
Air Mail: See AIR MAIL.
RES JUDICATA.
Rule in 298 U. S. 492 that, for the purpose of the commodities clause, railroad
whose stock is wholly owned by a holding company which also controls an in-
dustry whose products are transported by the railroad does not as a matter of law
become an agent, instrumentality, or department of the holding company, but
that such relationship must be determined upon evidence, applies equally where
the railroad is directly controlled by the industry. Pittsburgh, L. & W. R. Co.
Practices, 73 (76).
Decision in 253 U. S. 26, that transportation of coal violated the commodities
clause when all the stock of both the coal company and the railroad was owned
by a single corporation, should not be taken as a declaration of abstract prin-
ciple. That decision applied only to the relevant circumstances, which showed
that the manner of stockholding constituted an abdication of independent cor-
porate action by the carrier and the coal company, and would not be controlling
where the relationship was materially different. 298 U. S. 492. Id. (87).
Private-carrier status of railroad built by Pittsburgh Coal Co. from Smiths
Ferry, Pa., to connection near Negley, Ohio, with Pittsburgh, L. & W. R., a sub-
sidiary common carrier, was settled by decision of Circuit Court of Appeals in
83 Fed. (2d) 861 that its construction and operation as a private enterprise was
not within the provisions of sec. 1 (18-22) and could not be deemed an extension
of the Lisbon; and by decision in 298 U. S. 170 that intrastate character of trans-
portation by the Lisbon of the company's coal from Negley to Youngstown,
Ohio, was not affected by preliminary carriage from Pennsylvania by shipper's
own facilities. Id. (98-99).
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. Cancelation of Livestock
Services at Chicago, 716 (720).
Exceptions to tariff providing for application of rates to Deming, N. Mex., as
maxima on water-rail shipments from Boston, Mass., to Las Vegas, N. Mex.,
which restricted their application to named stations on Atchison, T. & S. F. Ry.
when routed via Southern Pac. S. S. Lines (Morgan Line) and Galveston, Tex.,
and named Las Vegas but not Deming, limited application of the maximum rates
by the Morgan Line without specifically authorizing their application to Las
Vegas over the Santa Fe. And as general routing provisions restricted appli-
cation of the maximum rates to instances where they applied to Deming over
rail carriers transporting the traffic to points named as subject thereto, and rout-
ing to Deming over the Santa Fe was not provided from Boston piers of the
Morgan Line from which the maximum rate sought was named, shipment routed
over that line to Galveston and the Santa Fe to Las Vegas was not entitled to the
Deming rate. Charles Ilfeld Co. v. Southern Pac. S. S. Lines, 291 (294-295).
Proposed restriction of ocean-rail class rates between north Atlantic ports and
points in the Southwest through south Atlantic and Gulf ports, to apply only
from and to docks at north Atlantic ports and not to include any service or ex-
pense of delivery, found not justified. Receipt and Delivery Service at Eastern
Ports, 317.
Proposed establishment of proportional rates on sugar from Wheatley, Ark.,
to points in northwestern Arkansas, restricted to apply only on shipments origi-
nating beyond Wheatley and transported by barge lines to Helena, Ark., which
would result in combination rates from New Orleans, lower than joint rates in
effect, to meet competition of motor trucks, was found justified. Sugar from
Wheatley, Ark., to Arkansas Points, 431.
REVENUES. See also EARNINGS.
Since operations of Railway Exp. Agency, Inc., were conducted at lower unit
cost than those of Southeastern Exp. Co., resulting in accrual of a larger per-
centage of gross express revenues to its contract rail lines, admission of Southern
Ry. and affiliated lines formerly served by the Southeastern to pooling arrange-
ment in effect between the Express Agency and other railroads in the southern
group should increase their revenues from express traffic. Railway Exp. Agency,
Inc., Pooling Application, 517 (522).
The Pullman Company was found entitled to additional revenue from sale of
its accommodations when proposed increase in rates, fares, and charges was
based on increased expenses and taxes rather than on decline in traffic. Bases
for just and reasonable Pullman rates, fares, and charges, approved. Increased
Pullman Fares and Charges, 1937, 644 (652-653, 655).
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
determined only by actual test and careful analysis. Proposed basis was there-
fore 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).
While some increase in fare on carrier's line between New Jersey and lower
Manhattan Island, N. Y., appeared necessary to provide required revenue,
cheaper transportation facilities were available to many commuters using that
line, and loss of a substantial proportion of such passengers could be expected to
follow any increased fare, especially when general economic conditions enhanced
the importance of the price factor. Revenue results over an extended period of
time would therefore be more favorable under an 8-cent fare than urder the
10-cent fare sought, since both diversion of traffic and likelihood of development
of severe motor competition would be less. Passenger Fares of Hudson & M.
R. Co., 741 (760-762).
REWEIGHING. See WEIGHTS AND WEIGHING.
RIGHTS-OF-WAY. See CONdemnation; Valuation (Rights-OF-WAY).
ROUTES. See also THROUGH ROUTES.
Rate Comparisons over Different Routes: Rate charged on soap and wash-
ing powder from Babbit, N. J., to Charleston, W. Va., found unreasonable to the
extent that it exceeded rate applicable over alternative route and subsequently
established over route of movement. The lower rate applied over route of move-
ment in reverse direction, and carriers conceded in special-docket application
that that route had been inadvertently omitted in publishing the lower rate.
Armour & Co. of Delaware v. Erie R. Co., 177 (178).
Reduced rates proposed for alternative application on malt liquors from New
Orleans, La., to Texas, and on empty containers in reverse direction, lower than
total charges over steamship and barge-truck routes, found justified. The pro-
posed rates, although lower than reasonable maxima, were compensatory, and
relative advantages of the competing rail and water routes indicated that equality
of rates was not necessary for each to share in the traffic. Malt Liquors from
New Orleans to Texas Points, 439.
Restrictions: See RESTRICTED RATES.
RULES, REGULATIONS, AND PRACTICES. See STORAGE; TRANSIT; and
various topics.
SAFETY. See DANGEROUS ARTICLES.
SALARIES AND WAGES.
Although officers of air-mail carrier had received no salaries and had advanced
funds to cover operating deficits during period of mail operations, they devoted
their entire time to carrier's service, and any question of actual payment of
salaries for their services under the underwriting agreement, or propriety of
accruing such salaries on carrier's books, did not preclude Commission from con-
sidering them in determining reasonable air-mail rates. Air Mail Rates for
Route No. 8, 509 (514).
Distance: See DISTANCE.
SCHEDULES.
In General: Shippers are charged with knowledge of published tariffs, and
where shipper paid higher rates on inbound lumber because he refused to supply
tonnage data under impression that advance yearly estimates were required by
transit tariff, carrier was not obliged to inform him that advance estimates were
no longer required. Folding Furniture Works, Inc., v. Minneapolis, St. P. &
S. S. M. Ry. Co., 159 (160).
That the machinery for working out a discrimination may be in a particular
tariff form would not afford it sanctity, and an unlawful discrimination sought to
be practiced under a tariff is as evil as one practiced contrary to a tariff. Allow-
ance for Driving Horses at Miles City, Mont., 387 (389).
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