First class, per 100 pounds, but not less than 25c., from 1876 to 1879;

Class rate of 50 pounds, but not less than 25c., from 1879 to 1881.

From 1881 to 1891, class rate of 100 pounds, but not less than 25c.

From 1891 to June 1894, the actual weight, but not less than 25c.

From June 1894 to November 1894, class rate per 100 pounds, but not less than 25c.

From November 1894 to May 1898, actual weight, but not less than 25c.

From May 1898 to June 1898, class rate per 100 pounds, but not less than 25c.

From June 1898 to September 1898, actual weight, but not less than 25c.

From September 1898 to February 16, 1903, class or commodity rate for 50 pounds, but not less than 25c.

February 16, 1903, to present time, class or commodity rate for 100 pounds.

From the foregoing it will be seen that the method or rule now in force has been followed for nearly eleven years of the time from 1876 to 1903, and for a considerably longer period than any other method.

Complainant shows, by way of illustration, the difference in charge for a 50 lb. shipment prior and subsequent to February 16, 1903, when the change in the rule complained of was made, as follows:

The following table shows the rates now in force, with distances, from Chicago to Atlanta, Ga., Montgomery, Ala., and Chattanooga, Tenn., and the classification of chewing gum under the Southern Classification:

INTERSTATE COMMERCE COMMISSION.

AUDITOR'S OFFICE.

December 3rd, 1904.

STATEMENT SHOWING CLASS RATES AND RATES ON CHEWING GUM AND MILEAGE.

Feb. 16, 1903.
Present Rates.
Montgomery, Ala.
Rates prior to
Feb. 16, 1903.
Present Rates.

Chattanooga, Tenn.
Rates prior to

Feb. 16, 1903.
Present Rates.

138 126 103 80 67 53 40 43 34 30 61 48
138 126 103 80 67 53 40 43 34 30 61 51

60

116 99 82 64 55 42 32 38 33 29 47 48 58 116 99 82 64 55 42 32 38 33 29 47 51 58 Classification by the Southern Classification of Chewing Gum. Prior to February 16th, 1903, to present date, 2nd Class (Any Quantity). C. & O. T. A. ICC 77 and 105.

R. G. B.

It appears from the evidence that in the shipment of less than carload lots of freight, or small shipments, the same amount of clerical work is required, making of bills of lading,

receipts, expense bills, the duplication and copying of same, rate calculation, transfer to connecting lines, notice to consignees, receipt of freight and division among carriers conducting transportation, whether it be a small shipment or one of several hundred pounds, the only difference being in the manual labor necessary in loading, transferring and unloading. By way of illustration it is shown that a shipment from Chicago by connecting lines to Jacksonville, Florida, would receive attention from and come under the jurisdiction of perhaps fifty different persons; and that in case the package should become mislaid or stolen the tracing thereof would require ordinarily not less than twenty-five written communications. It appears also that small packages are much more liable to be lost, misplaced or stolen than larger ones, and occasion more trouble in tracing; whereas the cost of clerical labor is as much for a small as for a large package or shipment, and there is little if any difference in the cost of other labor. In respect to all these conditions there has been no change since February 16, 1903, from conditions existing previously. For these reasons small package freight is not considered as desirable traffic as larger shipments, either on the basis of 50 lbs. or 100 lbs. minimum.

The carrying capacity of a car loaded with miscellaneous small packages or shipments is ordinarily much less than when loaded with a single shipment, from ten to thirteen thousand pounds being the limit of loading capacity for small package freight, of a thirty-six foot car with a carrying capacity of 50,000 lbs.

It is shown that the Official Classification provides as follows:

"No single package or small lot of freight of one class will be taken at less than 100 lbs. at first class rate and in no case will the charge for a single shipment be less than 25 cents.

"A small lot of freight of different classes will be taken at actual weight at the class rate of each article provided that the aggregate charge for the shipment shall not be less than for 100 lbs., at first class rate, and in no case shall the charge for the entire consignment be less than 25 cents."

This rule has been in force in Official Classification territory since September 26, 1898, in which territory the population and volume of traffic are much more dense than in other sections of the country. Prior to that date the minimum charge was based on 100 lbs. at the class rate.

The average earnings on all classes accruing to all carriers. from Chicago to Atlanta per package is 69.2 cents, and if commodities were included the average would be less, commodity rates being lower than class rates.

The following table shows the average earnings of each of the connecting lines named on less than carload shipments of all classes of freight from Louisville, Ky., and Evansville, Ind., to Atlanta, Ga., and Jacksonville, Florida, and the length of haul by each line.

The following table shows the traffic in shipments of 50 lbs. or less during the month of January, 1903, from Cincinnati, Ohio, over the L. & N. R. R. to points on that road and connecting lines.

10 I. C. C. REP.

On the 100 lbs. minimum basis the revenue would have been twice the amount stated.

The above is fairly illustrative of the relation between shipments, weight, revenue and length of haul for such traffic over defendants' lines to points in Southern Classification territory. The length of haul and accruing revenue from Chicago traffic to the same destinations would present greater averages.

CONCLUSIONS.

It is reasonable and proper that carriers should fix a minimum weight and charge for the transportation of less than carload shipments. This is justified by the necessary expense and trouble attending the carriage of such shipments, large or small, which, aside from the actual manual labor involved, are practically the same irrespective of the weight or bulk of the package. Therefore, the only question presented for determination is whether or not the rule in force is reasonable, and not unjustly discriminative in its application.

The amount of clerical work required in the shipment, transfer to connecting carriers and delivery of a shipment, the records of the same necessary to be kept, the division of the freight charges among the carriers participating in the transportation of this traffic, is shown to be considerable, and justifies a higher charge proportionally than for large shipments. Such higher charge is also justified by the limited car capacity of package freight as compared with carloads of other freight. Illustrative of the minimum revenue per carload, one witness testified to an instance of the carriage of a car of package