posed rate is 420 cents. From Hobbsville, N. C., 20 miles, the present and proposed rates are 131 and 455 cents, and from Edenton, N. C., 42 miles, the respective rates are 174 and 595 cents. Protestant competes with a pulpmill on the Norfolk Southern at Plymouth, N. C., to which point the Roanoke Rapids scale applies. Pulpwood is rated twelfth class (17.5 percent of first class) in the South, but if the suspended schedules are found justified the applicable rates will be the commodity rates on lumber and related articles, including pulpwood, in effect from and to the same points. The range of these lumber rates is between the present rates and twelfth class. To Cypress from Sun Oil, Hobbsville, and Edenton, as illustrative, the twelfth-class rates, converted to a per cord basis of 180 cubic feet, are 560, 560, and 700 cents, respectively. Wrapping paper and pulpboard are rated eighth class (30 percent of first class) in the southern classification and fifth class (35 percent of first class) in the official classification. If the suspended schedules become effective the rates on these two commodities will be made 30 percent of the corresponding first-class rates established pursuant to North Carolina Corp. Comm. v. Akron, C. & Y. Ry. Co., 213 I. C. C. 259; Commonwealth of Kentucky v. Ahnapee & W. Ry. Co., 229 I. C. C. 20. The present rates on wrapping paper from Cypress to Baltimore, Md., New York, N. Y., Pittsburgh, Pa., Cleveland, Ohio, Detroit, Mich., and Chicago, Ill., for example, are 28, 33, 37, 43, 50, and 53 cents per 100 pounds, respectively, whereas the proposed rates are 31, 35, 40, 46, 52, and 56 cents. The rates on pulpboard are from 3 to 5 cents less than those on wrapping paper. Protestant made shipments from Franklin to those points during 1938. The present rates to and from Franklin and to and from Cypress are satisfactory to protestant, and it wants respondents to continue treating Cypress as a consuming point for pulpwood and a producing point for wrapping paper and pulpboard. However, protestant has not received at, or shipped from, Cypress any of this traffic since the inauguration there of the same bases as applied and apply to and from Franklin and other consuming and producing points. Witness for respondents testified that maintenance of the present rates from Cypress creates departures from the long-and-short-haul provision of section 4 of the Interstate Commerce Act, and that if the proposed rates are not permitted to go into effect fourth-section relief should be granted. Respondents cite Milliken Bros. Mfg. Co., v. Pennsylvania R. Co., 152 I. C. C. 767, wherein division 3 pointed out that the fact that commodity rates from producing points are lower than the class basis from nonproducing points does not prove that the class rates are too high for application from the nonproducing points, and particularly where the commodity rates have been established for competitive reasons. We find that respondents have justified the suspended schedules. An order will be entered vacating the orders of suspension and discontinuing these proceedings. COMMISSIONER MAHAFFIE dissents. 235 I. C. C. FOURTH SECTION APPLICATION No. 17640 Submitted March 9, 1939. Decided October 30, 1939 Authority granted, on conditions, to establish and maintain rates on automobiles, automobile chassis, and automobile parts, in straight or mixed carloads, from Tarrytown, N. Y., to Bellows Falls, Vt., without observing the longand-short-haul provision of section 4 of the Interstate Commerce Act. W. S. Curlett for applicants. REPORT OF THE COMMISSION DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND CASKIE BY DIVISION 2: Carriers named in the appendix hereto apply for authority to establish and maintain rates on automobiles, automobile chassis, and automobile parts, as described in the application, in straight or mixed carloads, from Tarrytown, N. Y., to Bellows Falls, Vt., without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. Relief was authorized temporarily by fourthsection order No. 13393. No opposition to the relief sought has been presented. Rates will be stated in cents per 100 pounds. The present rate over the direct route of The New York Central Railroad Company to Troy, N. Y., and the Boston and Maine Railroad beyond is 59 cents. Over applicants' routes the rate is 68 cents. The purpose of the relief sought is to enable applicants to establish the same rate as the direct route without reducing the present higher rates to intermediate points on their longer routes. There is a large assembly plant at Tarrytown from which there is a substantial movement of automobiles to Bellows Falls. A large portion of this traffic has been moving by motortruck and to meet such competition a rate of 59 cents was established over the direct route. Applicants desire to participate in this traffic without suffering the loss of revenue which would result from reducing the present rates at intermediate points not affected by similar competition. It is asserted that, unless the proposed rate is established, applicants 1 See appendix. will be deprived of a fair share of this traffic and shippers will be denied the use of competitive normal routes. There are no departures on the direct route. Under the proposed adjustment departures will occur only at destinations. The following example is illustrative. From Tarrytown to Bellows Falls over the direct route, 255 miles, the rate is 59 cents. This rate will be applied over a route composed of the lines of the New York Central to Rensselaer, N. Y., the Boston & Albany to Chatham, N. Y., and the Rutland beyond, 307 miles, and 20 percent circuitous. This is the longest route shown of record. Over this route to Wallingford and Chester, Vt., 245 and 293 miles, respectively, the present respective rates of 61 and 68 cents will be maintained. The proposed rate of 59 cents over the longer route will yield 38.4 mills per ton-mile and, based on a minimum of 10,000 pounds, 19.2 cents per car-mile.2 As previously indicated, the purpose of the relief is to meet the rate over the direct route, which rate was established to meet motortruck competition. Applicants request, therefore, that relief be granted without the imposition of the equidistant provision of section 4. The higher-rated points intermediate to Bellows Falls on the indirect rail routes are more distant points on the motortruck route. If the equidistant provision were imposed and applicants should establish the competitive rate over the specified routes, rates to some intermediate points would be reduced below the truck basis. Subject to the conditions hereinafter prescribed, we find that the proposed rate will be reasonably compensatory and that the relief prayed is justified. Applicants will be authorized to establish and maintain, over their routes as shown in the appendix hereto on automobiles, automobile chassis, and automobile parts, in straight or mixed carloads, from Tarrytown to Bellows Falls, rates the same as those contemporaneously in effect on like traffic over the direct route from and to the same points, but not less than 59 cents, and to maintain higher rates to intermediate points; provided, that the rates to such higherrated intermediate points shall not be increased except as authorized by this Commission, and shall not exceed the lowest combination of rates subject to the act. An appropriate order will be entered. 'Minimum weights will be the same as under the present rates, namely, 10,000, 12,500, and 20,000 pounds, governed by the size of the car used. 235 I. C. C. APPENDIX Applicant carriers Boston and Albany Railroad (The New York Central Railroad Company, lessee). Boston and Maine Railroad. The Delaware and Hudson Railroad Corporation. The New York Central Railroad Company. Rutland Railroad Company (L. G. Morphy, receiver). Routes New York Central, Troy, N. Y., Boston & Maine, White Creek, N. Y., and Rutland. New York Central, Troy, N. Y., Delaware & Hudson, Rutland, Vt., and Rutland. New York Central, Rensselaer, N. Y., Boston & Albany, Chatham, N. Y., and Rutland. New York Central, Selkirk Junction, N. Y., Boston & Albany, Chatham, N. Y.,, and Rutland. 235 I. C. C. |