Shippers using superior all-rail service from intermediate Virginia points were
not unduly prejudiced by lower ocean-rail rates from more distant points when
differentials did no more than place the ocean-rail routes in position to obtain a
fair share of the traffic moving from the more distant points. Id. (421).
Fourth-section relief sought for purpose of maintaining differential bases over
ocean-rail routes to differential territory and to maintain standard all-rail basis
to directly intermediate points in nondifferential territory, including points in
trunk-line territory, was limited to instances where intermediate rates do not
exceed rates constructed on the differential basis observed at the more distant
point. Id. (423).
Fourth-section relief granted to maintain eastbound ocean-and-rail rates made
on approved differential bases under all-rail rates from certain portion of central
territory to north Atlantic ports, with higher rate at Virginia ports and interme-
diate interior points, such relief to be similar to that granted in respect of the
westbound adjustment. Id. (425).
When general direction of rail-water routes and of all-rail routes was the same,
a differential basis, while relating the two rate structures directly to each other,
did not cause the water-rail rates to depart greatly from the distance basis upon
which the all-rail rates were fixed. But in fixing rates on traffic from eastern
seaboard territory to the Southwest, the ocean-rail distances frequently increased
as the all-rail distances decreased. In such circumstances it would be impossible
to devise any system of ocean-rail rates differentially related to all-rail rates
which would be reasonable and at the same time nondiscriminatory. Consoli-
dated Southwestern Cases, 601 (628).
DISADVANTAGES. See ADVANTAGES.
DISCRIMINATION.
Intrastate Rates Discriminatory Against Interstate Commerce: See
INTRASTATE COMMERCE.
Presumptions: See PRESUMPTIONS.
DISTANCE.
In General: Ocean-rail rate structure between Atlantic seaboard territory
and the Southwest, although of long standing, had been made to meet competi-
tive conditions, ignored distance to a great extent, and contained many dis-
criminatory situations. These could best be removed, and the rights of all parties
best be conserved, by prescription of a rate structure based primarily upon dis-
tance, but giving consideration to such matters as transfer services at ports,
ratio of rail to water haul, and competition of ocean-rail routes with each other
and with all-rail routes. Consolidated Southwestern Cases, 601 (627, 628).
Computation: Reparation awarded on talc from Hailesboro, N. Y., to
Holyoke, Mass., based on short-line distance when rates were the same over all
routes in use. Chemical Paper Mfg. Co. v. Boston & M. R., 177.
In determining amount of reparation on molding sand from New York and
New Jersey to Massachusetts points under finding in 188 I. C. C. 99, short-line
distance through New York Harbor was found proper when shipments moved
over route less than 15 percent circuitous, and distance over route of movement
found proper when shipments were routed over longer of two available routes
which was more than 15 percent circuitous. Chapman Valve Mfg. Co. v. Bos-
ton & A. R., 191 (194).
Circuity limitation on fourth-section relief in connection with rates on cement
from Kansas Gas Belt to New Mexico points was based on distances over short
tariff routes. Cement from Kansas Gas Belt, 315 (317).
In passing upon fourth-section application for relief over differential routes
embracing water hauls, distances used were actual rail distances plus actual
statute miles on lake when actual lake distance was less than 300 miles or, when
greater, the lake distance was equated on basis of 2 lake miles to 1 rail mile. Dif-
ferential Routes to Central Territory, 403 (411)
Since rates prescribed on methanol from Pennsylvania and New York to
official-territory points, refined at Cadosia, N. Y., were to be computed for dis-
tances over routes via transit point, which were materially greater than over the
short-line routes, carriers would be adequately compensated for every mile of
service rendered. Thomas Keery Co., Inc., v. New York, O. & W. Ry. Co., 451
(455).
In computing reparation on butter, eggs, and dressed poultry from Southwest
to Florida destinations distance was computed over shortest possible routes via
existing connections for the interchange of carload traffic. Swift and Co. v.
Union Pac. R. Co., 528 (533).
Fifteen-percent circuity limitation placed upon formula prescribed in 205 I.
C. C. 601 for computation of scale rates in the Southwest over indirect routes
through lower-rated zones, fixed point beyond which carriers need not go in
search of routes making lower rates. Compliance with formula would require
relatively few additional computations, without occasion for uncertainties, and
fourth-section situations could readily be cared for. Consolidated Southwestern
Cases, 575 (584).
Provisions in 205 I. C. C. 601 for computation of rates from Galveston-Hous-
ton-Texas City group on basis of distances from Houston plus fifteen miles,
modified to provide that when short-line distances from Houston approximated
or exceeded those from Galveston, scales should be applied to Houston distances.
Id. (587).
Under prescribed adjustment of ocean-rail rates on traffic from Atlantic sea-
board territory to Southwest, grouping of any eastern point was to be deter-
mined by its distance from port through which rate was computed. Consolidated
Southwestern Cases, 601 (630).
Equated Mileage: Method of computing water distances prescribed in con-
nection with fourth-section relief on class and commodity rates from, to, and
between points in southern territory. Augusta-Savannah Line Rates, 367 (370).
In passing upon fourth-section application for relief over differential routes
embracing water hauls, distances used were actual rail distances plus actual
statute miles on lake when actual lake distance was less than 300 miles or, when
greater, the lake distance was equated on basis of 2 lake miles to 1 rail mile.
Differential Routes to Central Territory, 403 (411).
Scales: Rates on livestock from West Virginia points to Pittsburgh, Pa.,
were not unreasonable compared with rates under scale prescribed in 165 I. C. C.
277 from central territory to trunk-line territory. Producers Co-Operative
Comm. Assn. v. Baltimore & O. R. Co., 105 (107).
Rate on wrought-iron pipe from Sheridan, Wyo., to Glasgow, Mont., found
unreasonable to the extent that it exceeded rate equal to 37.5 percent of con-
structive first-class rate under zone III scale of the western trunk-line revision,
plus arbitrary of 15 percent for haul within Montana. Bowdoin Utilities Co.
v. Chicago, B. & Q. R. Co., 440.
Rates on butter, eggs, and dressed poultry from Oklahoma, Texas, Missouri,
Kansas, and Arkansas to Florida peninsula were found unreasonable in the
past to the extent that they exceeded 60 percent of first-class rates using con-
structive rates under scale prescribed in 123 I. C. C. 203, plus differentials for
river crossings and for hauls in Florida peninsula, and for future to the extent
that they might exceed 60 percent of first-class constructive rates using rates
prescribed in 205 I. C. C. 601, plus differentials prescribed for distances west of
the River and plus arbitraries fixed for haul in Florida peninsula. Swift & Co.
v. Union Pac. R. Co., 528.
"Bridge scale" prescribed in 205 I. C. C. 601 for interterritorial traffic from
and to Southwest was designed to avoid abrupt "humps" at territorial boundaries.
It did not reduce rates below strict conformity with basic scales except within a
limited area, some such reduction being inevitable in applying any scheme of
gradation. Consolidated Southwestern Cases, 575 (585).
Distance arbitraries based on differences between first-class rates fixed in
eastern and western class-rate cases between points on Missouri River and
respective Mississippi River crossings, prescribed on cotton-piece goods from
southern territory to western trunk-line points for that portion of the haul which
is in western trunk-line territory, to be added to the rates prescribed or approved
up to Mississippi River gateways. Cotton, Woolen, and Knitting Factory
Products, 692 (763).
DISTANCE RATES. See DISTANCE (Scales).
DIVERSION. See RECONSIGNMENT AND DIVERSION.
DIVISIONS OF RATES.
Narrow-gage Lines: Divisions prescribed in 203 I. C. C. 299 and 208 I. C. C.
299, on traffic to and from trans-Missouri territory limited to rates to and from
points on standard-gage lines, to permit carriers with narrow-gage lines to nego-
tiate divisions in harmony with standard-line basis and in conformity with
principle governing special allowances to weak lines. Former findings modified.
Divisions of Freight Rates, 17 (18).
DROUGHT. See EMERGENCIES.
EARNINGS.
Car-Mile: Earnings under proposed reduced rates on citrus fruit from repre-
sentative points in Florida over representative routes ranging from 15.6 to 23.6
cents per car-mile more than covered extra or additional expenses incurred in
handling traffic. Citrus Fruit from Florida to North Atlantic Ports, 535 (547).
Factor in Reasonableness: When rate charged was applicable only over
route of movement which was circuitous, earnings were not comparable as a
criterion of reasonableness. International Motor Co. v. Delaware & H. R.
Corp., 339 (341).
Minimum Earnings: See MINIMUM RATES.
Ton-Mile: Ton-mile earnings of 7.5 mills are regarded as approaching the
minimum limit of revenue for carload traffic. Carrollton Excelsior & Fuel Co.
v. Southern Ry. Co., 271 (275).
It was not error for Commission to consider unfavorable state of complainants'
industry; difficulties encountered in competing with manufacturers of synthetic
methanol; and the possibility that complainants would resort to truck competi-
tion, since conditions prevailing in particular industry should be considered with
other factors, and rates found reasonable were not designed to compel carriers
to meet truck competition or to offset complainants' competitive disadvantages.
Thomas Keery Co., Inc., v. New York, O. & W. Ry. Co., 451 (455).
Commercial needs are not necessarily a basis for legal compulsion. Cotton,
Woolen, and Knitting Factory Products, 692 (719).
While freight rates in part enabled southern cotton mills to market their prod-
ucts north of the Ohio River, other factors also contributed. Southern mills
were nearer the source of raw material, and costs of production, such as labor,
taxes, land values, etc., were more favorable for southern than for northern
manufacturer. Such factors were part of industrial problem as distinguished
from transportation problem, and their value in consideration of competitive
rates was doubtful. Id. (786).
Exemptions under Various Acts: It is reasonable to suppose that Congress
authorized the Commission to determine status of electric railways under the
Railway Labor Act, which is not otherwise administered by the Commission, be-
cause of the Commission's experience in passing upon such questions under simi-
lar exemption provisions in other acts. This also indicated that Congress used
the word "interurban" in the sense in which Commission had interpreted that
term in its decisions. Piedmont & N. Ry. Co., 4 (8).
Piedmont & N. Ry. found not to be a street, interurban, or suburban railway
within the meaning of the exemption proviso to par. 1 of sec. 1 of the Railway
Labor Act, as amended. Id. (8).
Fort Dodge, D. M. & S. R. found not to be a street, interurban, or suburban
electric railway within the meaning of the exemption proviso of par. 1 of sec. 1
of the Railway Labor Act, as amended. Fort Dodge, D. M. & S. R. Co., 9 (13).
EMERGENCIES.
Rates: Relationship prescribed in 197 I. C. C. 617, to remove undue preju-
dice between ex-river rates on coal from Colona and Conway, Pa., to Youngs-
town, Ohio, on one hand, and all-rail rates from Pittsburgh, Pa., and related dis-
tricts, on the other, modified to enable carriers to establish rates from Colona
and Conway without emergency charge authorized in 208 I. C. C. 4, for purpose
of meeting impending truck competition. Bituminous Coal to Youngstown,
Ohio, 1.
Failure of Corporation Commission of Oklahoma to authorize or permit in-
creased rates on various commodities corresponding to emergency increases
authorized on interstate commerce in 208 I. C. C. 4, found not to result in undue
prejudice to shippers or localities or unjust discrimination against interstate
commerce in violation of sec. 13. Emergency Freight Charges Within Okla-
homa, 23.
Considering severity of truck competition in Arkansas affecting intrastate
movement of coal, sand, and gravel, and competition of coal with natural gas,
the nonapplication of emergency increases thereon, corresponding to increases
prescribed for interstate traffic, did not result in undue prejudice or preference
under sec. 13. Emergency Freight Charges Within Arkansas, 219 (221).
Considering relation of Kansas intrastate rates on certain commodities to the
interstate rates, the relative volume of movement, competitive situation with
respect to motor trucks, and competition of coal with natural gas, application
thereon of interstate emergency charges would not yield any substantial increase
in carriers' revenue. Failure to apply such charges did not violate sec. 13. Emer-
gency Freight Charges Within Kansas, 225 (231).
Applicable rates on hay from Ludden and Oakes, N. Dak., to Miller, Ree
Heights, and Harrold, S. Dak., on basis of 50 percent of commodity rates under
emergency reduction during drought period, found not unreasonable. First Na-
tional Bank of Miller, S. Dak., v. Chicago & N. W. Ry. Co., 237.
Tariff naming emergency charges exempted middlings not specially prepared
for human consumption. Shipments of farina were subject to the emergency
charge when Department of Agriculture had defined farina as purified middlings
of white wheat other than durum, and the article had been processed for human
consumption. Commodity was not embraced within term "edible meal", also
exempted. Commodity was more specifically described as middlings specially
prepared for human consumption. Quaker Oats Co. v. Erie R. Co., 471.
Refusal of Louisiana State Commission to apply on certain articles emergency
charges similar to those approved for interstate traffic, found not to result in
unreasonable or unjust discrimination against interstate commerce in violation
of sec. 13. Carriers' evidence did not establish such facts as to the effect upon
revenues as the Supreme Court in 283 U. S. 194 had stated to be necessary for
action by Commission. Emergency Freight Charges in Louisiana, 499 (503).
Fourth-section relief granted in 200 I. C. C. 425 on rags and waste paper from
New York City stations and New York lighterage points, N. Y., and from New
Jersey to Lockport and North Tonawanda, N. Y., modified to permit elimination
of emergency charge at more distant points. Rags and Paper to Lockport and
North Tonawanda, N. Y., 685.
EMERGENCY RATES. See EMERGENCIES.
EQUALIZATION.
Ports: Fourth-section relief granted in connection with domestic rates appli-
cable on export, import, and coastwise traffic from and to Galveston and Texas
City, Tex., on one hand, and inland points in southwestern and western trunk-
line territories, on the other, the same as applied in connection with rates from
Houston, Tex., for purpose of establishing and maintaining port group adjust-
ment, subject to certain conditions. Texas Ports Equalization of Rates, 371.
Proposed equalization of rates between interior Texas points and New Orleans
La., with those from and to Texas ports would not increase total volume of
traffic, but would only divert a portion of traffic from lines serving Texas ports
to those serving New Orleans. Need of New Orleans lines for additional traffic
was not shown to be more urgent than that of Texas carriers, and revenue losses
of Texas lines would exceed revenue gains of New Orleans lines. Fourth-
section relief to establish equalization denied. Export and Import Rates from
and to Gulf Ports, 395 (398-399).
Fourth-section relief granted to establish rates on interstate traffic to and
from Gulfport, Miss., the same as those in effect on like traffic between same
points and New Orleans, La., subject to minimum earnings and other conditions.
Gulfport, Miss., Export, Import, and Coastwise Rates, 643.
EQUIDISTANT CLAUSE. See LONG AND SHORT HAUL.
Misquotation of Tariff: See QUOTATION OF RATES.
EVIDENCE.
In General: When important evidence is questioned in such manner as to
justify reasonable doubt of its accuracy, the criticism is not adequately met
merely by testimony, without supporting data, that if the cause for criticism
were removed the resulting change would be small. Emergency Freight Charges
in Louisiana, 499 (502).
Admissions: See ADMISSIONS.
Burden of Proof: See BURDEN OF PROOF.
Damages: See DAMAGES (Proof).
Documents: Testimony given by official of complainant from personal
knowledge and records made under his supervision in regular course of business
constituted identification of freight bills offered in evidence sufficient to give
reasonable assurance of their genuineness. Galesburg Horse & Mule Co., Inc.,
v. Atchison, T. & S. F. Ry. Co., 197 (198).
New: Further hearing denied when there was no showing that nature and
purpose of evidence to be adduced would not be merely cumulative. Public
Service Comm. of Nevada v. Southern Pac. Co., 567 (568).
Presumptions: See PRESUMPTIONS.
Quantum: Evidence of disparities between interstate and intrastate rates and
competitive conditions on traffic generally was insufficient to support finding of
undue prejudice. Jacksonville Chamber of Commerce v. Atlanta & W. P. R.
Co., 509 (513).
Rate Comparisons: See RATE COMPARISONS.
|