fiable under which "the traffic will move." Conceding for argument's sake that this is a proper test, the evidence tends strongly to show that the lumber shipped from Georgia to the West was not of the character to bear the advance. That lumber was, for the most part, low grade lumber of comparatively small value. A rate under which an article of high value will move may be prohibitory when applied to an article of comparatively little value. On many of the low grade classes of the lumber shipped from Georgia to the West, the freight charges under the rates prior to the advance equaled, and in some cases exceeded, the value at the mill. The rate being the same on all grades of lumber, the advance affected more seriously the shipments of low grade than of high grade lumber. The natural effect or tendency of a material increase in a rate on a commodity, is to restrict the territories or markets to which that commodity can be profitably shipped. The advance in the rate June 22, 1903, was followed by a material falling off in shipments of lumber from Georgia to the West. The decrease in shipments appears to have been in part due to the diminished demand for lumber by the railroads and the car manufacturing companies in the West, but it was also attributable largely to the advance in the rate. 6. It is urged in behalf of the carriers that "for the transportation of lumber they are compelled to haul a large number of flat cars to the mills empty," and that "it is a common practice for shippers of lumber to load the cars below their capacity." These are conditions which are properly taken into account by carriers in fixing rates and which, presumably, were considered by the defendants in establishing and maintaining the lower rates so long in force prior to the advance. There is no claim that the hauling of empty cars to the mills and the alleged underloading originated or had increased at the date of the advance and had not been previously taken into account. As to empty cars, the proof is that box cars when brought south for lumber, are for the most part, loaded, but that from 85 to 100 per cent of the flat cars brought south for lumber (and which constitute from 50 to 60 per cent of the total number of cars used in hauling lumber) come south empty. (Find ing 13.) It also appears that a portion of the box cars which come from the west would return empty but for lumber. As to loading, the proof is that the shippers load such cars as are furnished them to as near their capacity as is practicable, but it is impracticable, as a rule, to load to full capacity, either because, as contended by complainants, the cars are not adapted to the dimensions of the lumber, or, as contended by the carriers, the lumber is not adapted to the dimensions of the cars. As it is, the loading of lumber is equal to or greater than that of a large number, if not most, of the principal commodities transported by the defendants. (Table, Finding 14.) 7. For the purpose of showing the reasonableness of the lumber rate, it is compared with the rates on other commodities produced in South Carolina, Georgia and Florida and shipped to the central west, such as "oranges, pineapples, watermelons, peaches and other fruit, rosin, turpentine, pyroligneous products, cotton seed oil, and cotton factory products." Important among the controlling factors in fixing rates are value, volume, risk and cost of handling. The rates are per hundred pounds or, in other words, based on weight. Lumber is much less valuable per weight than most, if not all, the above articles and its volume is many times greater. The larger portion or nearly all of the above articles are what are termed perishable and, therefore, involve greater risk and greater cost in handling than lumber. The rates on lumber, therefore, should be not only not as high as, but materially less than, the rates on those articles. The rate on lumber prior to the advance appears to have been a reasonably high rate when compared with the rates on other commodities which are at all analogous to lumber in respect to value, volume, risk, cost of handling and the various other circumstances and conditions affecting the transportation of traffic. 8. The defendants, other than the originating roads, complain of the small amount of revenue or low rate per ton per mile realized by them out of their proportions of the through This is due to the large allowances out of the rates made to the originating roads. (See Finding 3.) Those allowances commenced under the lower rates in force prior to rates. the advance and raise the presumption that those lower rates: minus the allowances were then considered reasonably remunerative for the remainder of the hauls to the Ohio River crossings. As the advance of 2 cents goes entirely to the roads continuing the transportation on to the Ohio and none of it to the originating roads, the inference is that the advance was made solely with a view of increasing the proportions of the former roads. If the allowances to the originating roads are unreasonably large, as they appear to be from a distance standpoint, and result in unreasonably low proportions to the other roads, this cannot be remedied by an advance in the total through rates charged the public. It is the total rate, and not. its proportions, which is in issue. 9. While the railways in Georgia have been essential to the development of the lumber business and it has been their policy to encourage and assist in its development, that business has. been an important factor in building up and sustaining many of those railways. The roads which penetrate the lumber sections, when first built, had little to depend upon except the transportation of lumber and of the supplies of all kinds required in its manufacture. This should predispose the railways, as far as practicable without discriminating against other traffic and without doing injustice to themselves, to favor the lumber industry and cause them to abstain from placing any additional burden or tax upon that industry except in a clear case of necessity. In this connection it is proper to consider that, while the business of the railways may be said to be permanent, the lumber business has a limited tenure of life, the evidence being that within about ten years the yellow pine forests of Georgia will have been exhausted and the large investments of lumber manufacturers in their plants, including buildings, machinery and tram roads, will have become practically valueless. (Finding 8.) Under the materially lower rates in force for many years prior to the advance of June 22, 1903, the lumber business had been a paying business to the roads. Their net revenue grew larger from year to year during that period and, as the tonnage of lumber also constantly increased, the increase in net revenue may be fairly attributed in part to lumber. Lumber is an in-expensive freight and only a few other commodities furnish to carriers so large a tonnage. The transportation of lumber is a constant business, yielding the carriers revenue throughout the year. No special equipment is constructed or furnished for its carriage. It is loaded by the shipper and unloaded by the consignee, and where flat or open cars are furnished, the shipper is required at considerable expense to equip them so as to protect the lumber and the train. It is not what is known as, "perishable traffic" and does not require rapidity of movement; there is small risk incident to its transportation, and, in case of accident, the damage is insignificant. Lumber is moreover an article of general utility. For these and other reasons lumber should be given rates which are relatively low. We find and conclude that the said advance of 2 cents per hundred pounds in the rates on lumber from the said shipping points in Georgia to the said Ohio River Crossings made effective June 22, 1903, was not warranted by the facts, circumstances and conditions disclosed by the testimony, and that the increased rates then put in force are unreasonable and unjust. An appropriate order will be issued in accordance with these conclusions. KNAPP, Chairman, and FIFER, Commissioner, dissenting: In the view we take of this case the conclusions of our associates are not justified by the facts and circumstances appearing in the record or otherwise entitled to consideration. Holding that the rates complained of have not been shown to be in violation of law we respectfully dissent from the foregoing report and opinion. 10 I. C. C. REP. No. 575. THE CONSOLIDATED FORWARDING COMPANY v. THE SOUTHERN PACIFIC COMPANY; THE ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY; THE SANTA FE PACIFIC RAILWAY COMPANY; and the SOUTHERN CALIFORNIA RAILWAY COMPANY. No. 576. THE SOUTHERN CALIFORNIA FRUIT EXCHANGE บ. THE SOUTHERN PACIFIC COMPANY; THE ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY; THE SANTA FE PACIFIC RAILWAY COMPANY; and THE SOUTHERN CALIFORNIA RAILWAY COMPANY. THE CONTINENTAL FRUIT EXPRESS COMPANY and ARMOUR & COMPANY, INTERVENERS. Decided February 11, 1905. 1. Defendants' minimum carload weight of 26,000 pounds for the carriage of citrus fruit in refrigerator or ventilator cars from Southern California points to eastern destinations is not unreasonable with the 40foot car in general use. 2. Whether or not the regulating statute applies to refrigeration charges in all cases, the defendants, by compelling shippers to pay icing charges on citrus fruits as established by the car lines or do without necessary |