immediate territory at Tylertown, Foxworth, and Columbia, and by the New Orleans and Northeastern Railroad line, which extends from New Orleans through Lumberton to Hattiesburg and beyond. The Mississippi Central cuts across this territory, about 30 miles north of the rails of the Fernwood, Columbia & Gulf, crossing the Illinois Central at Brookhaven, the Gulf & Ship Island at Silver Creek and Hattiesburg, and connecting also with the New Orleans & Northeastern at the latter point.

Unless the rates to and from Gulfport on the traffic described are maintained on an equality with the rates on like traffic to and from New Orleans, such traffic to and from Gulfport must decrease and, to that extent, the tonnage hauled by the Fernwood, Columbia & Gulf will diminish. Columbia and Fernwood, the termini of the Fernwood, Columbia & Gulf, are the gateways necessary to Gulfport's traffic. The short-line distance from New Orleans to Columbia is 106 miles. To Columbia from Gulfport the short-line distance is 153 miles over the Gulf & Ship Island in connection with the Mississippi Central from Hattiesburg to Silver Creek. The single-line distance of the Gulf & Ship Island through Mendenhall is 186 miles or 21.5 percent circuitous. From Gulfport to Columbia over the Louisville & Nashville to New Orleans and the Gulf, Mobile & Northern beyond, the distance is 167 miles.

Through Columbia the distances on the basis of the now abandoned route placed Gulfport upon an approximate equality with New Orleans. Indeed the mileages through Columbia and Fernwood enabled Gulfport to serve certain stations on the main line of the Illinois Central upon a fair basis in competition with traffic from New Orleans. For example, to Fernwood the distances from New Orleans and Gulfport were 101 and 137 miles respectively, and to all stations on the Illinois Central north of Fernwood the mileage disability of Gulfport was only 36 miles as compared with New Orleans.

This application does not rest upon the ground of the circuity of the present routes as contrasted with the abandoned route. There is no requirement, therefore, that the equidistant clause of section 4 of the act be imposed.

Certain of the rates involved are the same as those prescribed in Fertilizers Between Southern Points, 113 I. C. C. 389, Import Fertilizer to Southern Points, 147 I. C. C. 274, Imported Fertilizer Materials, 161 I. C. C. 649, Southern Class Rate Investigation, 100 I. C. C. 513, and subsequent reports, and Cottonseed, Its Products, and Related Articles, 188 I. C. C. 605. The following example illustrates a typical fourth-section departure under the proposed rates. From Gulfport to Columbia, 167 miles over the Louisville & Nash

ville to New Orleans and the Gulf, Mobile & Northern beyond, the present rate on import and coastwise fertilizer and fertilizer materials is $2.20 per net ton. Over the Gulf & Ship Island from Gulfport to Columbia through Mendenhall the distance is 186 miles, or 11 percent circuitous as contrasted with the route through New Orleans. It is proposed to apply the rate of $2.20 over the route through Mendenhall, which would yield earnings of 11.8 mills per ton-mile and 23.6 cents per car-mile based on the carload minimum of 40,000 pounds. The present rate on this traffic to Mendenhall, 129 miles from Gulfport, is $2.55.

We find that, for the purpose of placing Gulfport on an equality with New Orleans with respect to the movement of the traffic described herein, there does not appear to be any reason why the rates to and from Gulfport should be lower than the rates to and from New Orleans, and that rates on the New Orleans basis, subject to the limitations hereinafter provided, would be reasonably compensatory.

Applicants will be authorized to maintain for application on interstate traffic as described, to and from Gulfport, from and to stations on the Gulf & Ship Island, the Fernwood, Columbia & Gulf, and the Mississippi Central and connecting carriers parties to this application, rates the same as those contemporaneously in effect on like traffic between the same points and New Orleans, La., and to maintain the present higher rates to and from intermediate points; provided (1) that the rates to and from higher-rated intermediate points shall not be increased except as may be authorized by this Commission and shall in no case exceed the lowest combination of rates subject to the act, and (2) that this relief shall not apply to rates over any route which yield on the basis of the lowest minimum weight on the respective classes and commodities to which they apply, earnings based on the distance over the said route of less than 5 mills per ton-mile where the carload minimum weight is 40,000 pounds or more, and 10 cents per car-mile where the carload minimum weight is less than 40,000 pounds. All other and further relief will be denied. An appropriate order will be entered.

211 I. C. C.

No. 22109

IN THE MATTER OF RATES ON SAND, GRAVEL, CRUSHED STONE, ETC., WITHIN THE STATE OF SOUTH CAROLINA

Decided November 4, 1935

Upon petition of certain respondents, findings in prior reports herein, 177 I. C. C. 123 and 197 I. C. C. 215, further modified to permit establishment of reduced intrastate rates on crushed stone, in carloads, from Rion, Blair, Columbia, and Cayce, S. C., to Charleston, S. C.

THIRD SUPPLEMENTAL REPORT OF THE COMMISSION

BY THE COMMISSION:

As the result of findings made in the original report herein, 177 I. C. C. 123, which were reaffirmed on further hearing, 197 I. C. C. 215, respondents were required to maintain intrastate rates on sand, gravel, crushed stone, and allied commodities, in straight or mixed carloads, between points in South Carolina on a basis not lower, distance considered, than the so-called 17517 basic single-line and joint-line scales of rates then applicable on this traffic for interstate transportation over respondents' lines between points in South Carolina and from points in other States in southern territory, except Florida, to points in South Carolina, which were found reasonable for such interstate transportation.

As the result of two subsequent petitions, both by the Seaboard Air Line Railway (the Charlotte, Monroe and Columbia Railroad Company joining in one), two supplemental reports and orders have been heretofore issued modifying the original findings and orders so as to permit the establishment of certain reduced intrastate rates. The first, 205 I. C. C. 563, permitted a reduction in the rate on sand from Norwood Siding, S. C., to Hartsville, S. C. The second, 209 I. C. C. 307, permitted reductions in rates on sand from Dixiana, S. C., to Columbia, S. C. These modifications were granted because of truck competition.

The respondents Atlantic Coast Line Railroad Company, Southern Railway Company, and Seaboard Air Line Railway, by their joint petition now request further modification so as to permit the establishment of certain reduced intrastate rates on crushed stone, in carloads, from Columbia, Blair, Rion, and Cayce, S. C., to Charleston, S. C. Rates will be stated in amounts per net ton.

The short-line distances from these points to Charleston, the present rates, and the reduced rates, exclusive of emergency charges, which these respondents now desire to establish, as set forth in their petition, are as follows:

Crushed stone is quarried at the above-named origins and is shipped over petitioners' lines. The petition sets forth that there is in prospect a large movement of coarse aggregates, such as traprock, slag, crushed stone, etc., to Charleston, approximately one half of which will be used by the United States Government in construction work at the Charleston Navy Yard. It is stated that these materials are now moving to Charleston from eastern points, particularly points in the vicinity of the Chesapeake Bay, by unregulated water lines at a rate of 70 cents and without the addition of a wharfage charge of 20 cents when the materials are for use at the Charleston Navy Yard; also that this traffic is moving via water from Sparrows Point, Md., to Charleston at a rate of $1.

The shippers of crushed stone at the South Carolina origins here involved have advised petitioners that, unless the reduced rates as set forth above are established, they will be unable to compete with the water movement of this traffic to Charleston. Petitioners are convinced that unless such rates are established they will be unable to secure any portion of this prospective tonnage. No objection has been received to the granting of the petition.

The findings of undue prejudice and preference and unjust discrimination made in the original reports herein are hereby further modified so as to permit the establishment by petitioners of the reduced intrastate rates here requested. An appropriate order will be entered.

LEE, Commissioner, dissenting in part:

This Commission prescribed maximum reasonable interstate rates on sand, gravel, crushed stone, etc., for application throughout a substantial portion of southern territory, but the South Carolina commission refused to permit the interstate basis to become wholly applicable on intrastate traffic in that State. It appears that we prescribed one basis of rates for single-line movements and a higher

are

basis for joint-line movements. The South Carolina commission prescribed our single-line basis for both single-line and joint-line movements. Thereafter, on petition of various carriers operating in South Carolina, including these petitioners, we found that the intrastate rates maintained in South Carolina under authority of the State commission "to the extent that the rates * * lower, distance considered " than the interstate rates applicable on the same commodities, resulted in undue preference and advantage of shippers and receivers of freight in intrastate commerce within South Carolina and in undue prejudice to shippers and receivers of freight in interstate commerce between points in South Carolina, and from points in certain other States in southern territory to points in South Carolina, and in unjust discrimination against interstate commerce. In order to remove such undue preference, prejudice, and unjust discrimination, we required the establishment of rates for intrastate application not lower, distance considered, than those theretofore prescribed for interstate transportation.

These petitioners now seek our permission for the establishment of certain reduced intrastate rates on crushed stone, etc., from Rion, Blair, Columbia, and Cayce to Charleston to compete with lower rates on a prospective movement by water. Rion appears to be the only one of these origins requiring a 2-line movement. From the other points, shipments apparently may be made over either single or joint lines. It would appear, therefore, that our section 13 order "froze" the rates only from Rion and any joint-line movements from the other three origins, while the lower, or single-line, rates, for single-line movements, were not affected thereby. A comparison of the rates prescribed by the South Carolina commission from these origins with those shown in the table in the report discloses that the rates, prescribed by the South Carolina commission and condemned by us as unjustly discriminatory against interstate commerce, are higher in each instance than the rates which the carriers now propose, and which we permit to be established. Conceding the carriers' present position as to the four movements in question, it follows that the rates prescribed by the South Carolina commission for joint-line movement are not so low as to unjustly discriminate against interstate commerce, but that, on the contrary, rates even lower than those prescribed by the South Carolina commission, and which we required to be increased, are necessary to move the traffic and to produce the greater revenue. The conclusion is inescapable, therefore, that either this Commission was mistaken in its original finding that these particular South Carolina rates for joint-line movement were unjustly discriminatory against interstate commerce, or conditions have so changed that they no longer result in unjust discrimina