INTERSTATE COMMERCE REPORTS INVESTIGATION AND SUSPENSION DOCKET No. 3282 COAL, BITUMINOUS, EX-RIVER, FROM COLONA AND CONWAY, PA., TO YOUNGSTOWN, OHIO Decided October 12, 1935 Former findings, 197 I. C. C. 617, as to the relationship between the ex-river rates on bituminous coal, in carloads, from Colona and Conway, Pa., to Youngstown, Ohio, on the one hand, and the all-rail rates on like traffic from the Pittsburgh district and related districts to the same destination, on the other hand, prescribed to avoid undue prejudice, modified because of changed conditions. Order modifying former order entered. Appearances shown in former report. REPORT OF THE COMMISSION ON FURTHER CONSIDERATION MCMANAMY, Commissioner: In the former report in this proceeding, 197 I. C. C. 617, we found inter alia that a rate of 77 cents per ton of 2,000 pounds on ex-river bituminous coal, in carloads, from Colona and Conway, Pa., to Youngstown, Ohio, was unreasonable to the extent that it was less than 90 cents and required the establishment of the latter rate. We also found in that proceeding that the maintenance of ex-river rates from Colona and Conway to Youngstown on any basis less than hereinafter indicated would constitute undue prejudice against operators of inland coal mines located in the Freeport, Pittsburgh, Connellsville, and Fairmont districts, and undue preference of operators of mines located on the Monongahela, Allegheny, and Ohio Rivers, transferring coal from barges to respondents' rails at Colona and Conway to the extent that: The ex-river rates from Colona and Conway to Youngstown may be less than those based on 44 cents under the contemporaneous all-rail rates maintained by respondents on like traffic from the Pittsburgh district to the same destination, and 44 cents plus or minus, as the case may be, the present existing differentials over or under the rates from the Pittsburgh district, from Freeport, Connellsville, and Fairmont districts to the same destinations; * the term "carrier "as including among others any carrier by railroad subject to the Interstate Commerce Act, which is followed by the proviso hereinbefore quoted. There is no question that the Piedmont & Northern is a carrier by railroad subject to the Interstate Commerce Act, except such sections thereof as contain exemptions somewhat similar to that here under consideration. This carrier is operated by electric power and is not owned or controlled by any steam railroad. The only issue therefore is whether it falls within the exemption proviso in other respects. The Piedmont & Northern has two separate and disconnected lines, one in North Carolina and the other in South Carolina. The North Carolina division extends from Charlotte to Gastonia, about 24 miles, with a branch to Belmont, 3.6 miles; and the South Carolina division extends from Spartanburg through Greenville to Greenwood, 89.6 miles, with a branch to Anderson, 11.3 miles. The total mileage operated is approximately 128, of which from 3.5 to 4 miles are on city streets. The tracks are of standard railroad construction with 80-pound rails on the main lines and from 56 to 70 pound rails on the branches. The overhead construction is lighter and the voltage, power supply, and substation capacity considerably smaller than on the electrified sections of certain trunk lines. The signal system is of a different type from the systems generally used on the steam railroads. The number of employees was 580 at the peak in 1928 and 373 in 1934. The ratio of the freight revenue to the total revenue of this carrier during the years from 1923 to 1932, inclusive, ranged from 77 to 94 percent and averaged 88 percent over the period. In 1934 the freight revenue was $1,647,669 compared with passenger revenue of $91,847, these figures being respectively 89 and 5 percent of the total revenue. Approximately 20 percent of the freight traffic is local to this railway and 80 percent is interchanged with other railroads. Of the interchange traffic, approximately 19 percent moves intrastate and the rest interstate. The freight traffic is of a general character, and manufacturers located along this railway ship to points throughout the country. The Piedmont & Northern has on file with this Commission 24 local tariffs, and it is a party to 228 freight tariffs as initial carrier and 400 tariffs as delivering or intermediate carrier. Freight solicitors are maintained by this carrier at New York, N. Y., Detroit, Mich., Chicago, Ill., and Atlanta and Augusta, Ga., besides points on its own lines. The number of passengers carried increased from 79,464 in 1930 to 533,755 in 1934, which appears to have been due to a reduction in the passenger fares to 1 cent per mile effective September 17, 1932. The passenger revenue also increased from $34,311 or 1.56 percent of the total revenue in 1930, to $91,827 or 5 percent of the total revenue in 1934. The bulk of the passenger business is apparently local. Interline tickets are sold to points on the steam railroads, but this business is not encouraged. The carrier owns 17 electric locomotives, which are used to haul the freight trains and also the passenger trains on Saturdays, when the passenger business is largest. These locomotives are smaller and of a different type from those used on the electrified sections of certain trunk lines. Their ratings range from 750 to 1,200 tons, but when more than one locomotive is used, they can haul freight trains of from 60 to 65 cars. This carrier also owns 286 freight cars without electric equipment, of which approximately 90 percent are interchangeable with the steam railroads. Some of the passenger cars are self-propelled, while others are trailers, from three to five cars being handled together. The locomotives and self-propelled passenger cars are not interchangeable for service on the steam railroads. Interchange connections are maintained between this carrier and seven other railroads at nine points. It also has joint trackage or yard facilities with the Southern Railway Company and the Seaboard Air Line Railway at several points, and it has a joint depot with the Seaboard Air Line and the Georgia & Florida Railroad at Greenwood. The Piedmont & Northern owns the street-railway system in Gastonia, and it operates over 15 miles of track used jointly by street cars there and elsewhere. The locomotives and self-propelled cars are equipped with a switch to permit the use of a lower voltage on the street-car lines than on the other lines. The United States mail is carried by the Piedmont & Northern at the rates prescribed for "urban and interurban electric railway common carriers". This carrier was under Federal control during the World War emergency period, although the President's proclamation assuming possession and control of the railroads expressly excluded "street electric passenger railways, including railways commonly called interurbans." The Piedmont & Northern relies upon a decision of the former Railroad Labor Board rendered December 11, 1920, under the labor provisions of the Transportation Act, 1920. Section 300 (1) thereof in defining the term "carrier" excepted "a street, interurban, or suburban electric railway not operating as a part of a general steam railroad system of transportation ". The Labor Board held that the Piedmont & Northern and 10 other electric railways were exempted from its jurisdiction by that provision. However, that decision has not been followed by this Commission in dealing with the status of |