INVESTIGATION AND SUSPENSION DOCKET No. 3718 EXPORT AND IMPORT RATES TO AND FROM SOUTHERN PORTS Decided October 25, 1939 Findings in original report, 205 I. C. C. 511, covering rates on export traffic from Evansville, Ind., modified. Other prior reports in this proceeding, 210 I. C. C. 525 and 222 I. C. C. 483. Appearances same as in prior reports. THIRD SUPPLEMENTAL REPORT OF THE COMMISSION LEE, Commissioner: ON RECONSIDERATION By the original report in this proceeding, 205 I. C. C. 511, it was found, among other things, that the lowest lawful rates on export and import traffic between the Evansville, Ind., group and south Atlantic and Gulf ports, hereinafter referred to as southern ports, would be rates no lower than those found justified from and to the Indianapolis, Ind., group. In the supplemental report, 210 I. C. C. 525, certain modifications, not important here, were made in the findings and order. In the second supplemental report on further hearing, 222 I. C. C. 483, the finding above mentioned and the order entered pursuant thereto were modified so as to eliminate their application to rates on lumber and related articles from the Evansville group to southern ports for export. A petition has been filed by the Evansville Chamber of Commerce on behalf of shippers at Evansville, seeking further modification of the finding referred to so as to eliminate its application to rates on all export traffic from Evansville to southern ports. No replies have been received to this petition. Rates are stated in amounts per 100 pounds. Evansville is one of a number of Ohio River crossings located between, and inclusive of, Cincinnati, Ohio, and Cairo, Ill. Producers of various commodities at Evansville are in keen competition with producers of similar commodities at other crossings, particularly Cincinnati and Louisville, Ky., in the export trade. Export rates are and have been higher from Evansville than from Cincinnati and Louisville to north Atlantic ports. To southern ports, however, the export rates from the several Ohio River crossings formerly were on 216338-40-vol. 235- -4 a parity; and this condition still prevails as to all the crossings except Evansville. The requirement in the instant proceeding that the Indianapolis rates on export traffic to southern ports be observed as minima from Evansville resulted in increases from that point and the elimination of its only outlet for export traffic on a parity with the other crossings. The petition shows that to New Orleans, La., for instance, the first-class export rates are $1.13 on traffic destined to Europe, Africa, and the east coast of South America, and $1.28 on traffic for other foreign destinations, from both Cincinnati and Louisville for hauls of 836 and 747 miles, respectively. From Evansville, for a haul of 683 miles, the corresponding first-class export rates are $1.26 and $1.41, these being the rates from Indianapolis for a haul of 827 miles. It is alleged in the petition that the exaction from Evansville of rates on export traffic to southern ports higher than from the other crossings deprives Evansville of the benefit of its geographical location and results in undue prejudice and preference. It is stated further that the southern carriers serving Evansville are willing to reestablish export rates from that point to southern ports the same as from the other crossings, if permitted to do so. Upon further consideration of the record in this proceeding in the light of the petition, and having in mind the absence of any opposition to the action sought therein, we find that finding 1 on page 555 of the original report herein, as subsequently amended, should be, and it is hereby, further amended to read as follows: 1. That the suspended rates to which the southern lines are respondents have not been justified insofar as they would apply from and to the St. Louis and Centralia groups, and to the Evansville group; that the lowest lawful rates from and to the St. Louis and Centralia groups are rates no lower than those found justified in finding 4 from and to the Indianapolis group; and that the lowest lawful rates to the Evansville group are rates no lower than those found justified in finding 4 to the Indianapolis group. Any reduction which may be made in the export rates from Evansville or points grouped therewith as a result of this modification will still be subject to limitations with respect to minimum earnings contained in other findings in the original report. An appropriate order will be entered. 235 I. C. C. FOURTH SECTION APPLICATION No. 17607 AUTOMOBILES TO IOWA, MINNESOTA, AND SOUTH DAKOTA Submitted December 27, 1938. Decided October 31, 1939 Authority granted, on conditions, to establish and maintain carload rates on automobiles, chassis, and trailers, from Fordson, Minneapolis, Minnesota Transfer, and St. Paul, Minn., to points in Iowa, Minnesota, and South Dakota, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. L. E. Kipp for applicants. REPORT OF THE COMMISSION DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND CASKIE BY DIVISION 2: Carriers parties to Agent L. E. Kipp's tariff I. C. C. No. A-2976 apply for authority to establish and maintain rates on automobiles, chassis, and trailers, in straight or mixed carloads, as described in and subject to the provisions of item 20 of that tariff, respecting automobile parts included with automobiles, from Fordson, Minneapolis, Minnesota Transfer, and St. Paul, Minn., to certain points in Iowa, Minnesota, and South Dakota,1 without observing the longand-short-haul provision of section 4 of the Interstate Commerce Act. Relief was authorized temporarily by fourth-section order No. 13326. No opposition to the relief sought has been presented. Rates will be stated in amounts per 100 pounds. The purpose of the relief sought is to enable applicants having circuitous routes to apply the same rates as the direct routes, which latter rates were established to meet truck competition. Under the proposed adjustment, departures will occur only at intermediate origin points, as the proposed rates will be observed as maxima to intermediate destinations. The following examples are typical of departures at origin. From St. Paul to Sioux Falls, over the direct route of the Chicago, St. Paul, Minneapolis and Omaha Railway Company, the distance is 238 miles and the rate 55 cents. This rate 1 Lester, Larchwood, Matlock, George, and Edna, Iowa; Steen and Hills, Minn.; Sioux Falls, Elkton, Watertown, and Rowena, S. Dak., on the Chicago, Rock Island and Pacific Railway or Illinois Central Railroad, and Rock Rapids, Iowa, on the Illinois Central, over named routes in connection with the Chicago, Great Western Railroad, Chicago, Milwaukee, St. Paul and Pacific Railroad, or the Minneapolis & St. Louis Railroad. will be applied over a route composed of the lines of the Chicago Great Western Railroad Company (Patrick H. Joyce and Luther M. Walter, trustees) to Waterloo, Iowa, and the Illinois Central Railroad Company beyond, a distance of 478 miles, or 100.8 percent circuitous. Over the latter route from Invergrove, Minn., 436 miles, and Dewar and Austinville, Iowa, 245 and 238 miles, respectively, to Sioux Falls, the present respective rates of $1.05, $1.09, and 95 cents will be maintained. The proposed rate of 55 cents also will be established from St. Paul to Sioux Falls over the route of The Chicago, Rock Island and Pacific Railway Company (Frank O. Lowden, James E. Gorman and Joseph B. Fleming, trustees) through Albert Lea, Minn., a distance of 292 miles, or 22.2 percent circuitous. Over this latter route from Rosemount, Medford, and Conger, Minn., 273, 230, and 183 miles, respectively, to Sioux Falls, the present respective rates of $1.01, 97 cents, and 90 cents will be applied. Similarly, from St. Paul to Watertown, S. Dak., over the route of the Chicago, St. Paul, Minneapolis & Omaha the distance is 252 miles and the rate 45 cents. This rate will be applied over the route of the Chicago, Rock Island & Pacific, a distance of 368 miles, or 46 percent circuitous. Over the latter route from Rosemount, 349 miles, and Walters, Minn., 251 miles, the present rates of $1.18 and $1.16, respectively, will apply. The proposed rate of 55 cents to Sioux Falls over the longest route above described would yield 23 mills per ton-mile and 13.8 cents per car-mile, while the proposed rate of 45 cents to Watertown would yield 24 mills per ton-mile and 14.7 cents per car-mile.3 There is no known production of these commodities at points intermediate between these origins and destinations. Applicants assert that the relief prayed is necessary in order to avoid the disruption of the existing rate adjustment on this traffic from Janesville, Wis., and possibly other producing points, to the destinations here considered, which disruption would result in an unwarranted loss of revenue to the carriers. It is pointed out that, if the proposed rates were maintained as maxima from intermediate origins, shippers at Janesville or other producing points could take advantage of combination rates on such origin points and obtain substantial reductions in the present charges. To illustrate: The present through rate on this traffic from Janesville to Sioux Falls is $1.20. The present rate from Janesville to Waterloo, Iowa, is 34 cents. If the proposed rate of 55 cents from St. Paul to Sioux Falls were maintained as maximum from Waterloo, an intermediate point on Rates from all intermediate origin points shown above are the first-class rates. one of applicants' routes, the combination on Waterloo from Janesville to Sioux Falls would be 89 cents, or 31 cents less than the present through rate. Other examples are shown of record. Since, as previously indicated, the purpose of the relief is to enable applicants to meet the rates over the direct routes, which rates were established to meet motortruck competition, applicants request that such relief be granted without the imposition of the equidistant provision of section 4. Under similar conditions in Automobiles and Parts to Shreveport, La., 213 I. C. C. 683, division 2 said: As the relief sought is based upon applicants' desire to participate in rates constructed on a scale initiated and adopted by the direct lines for the purpose of meeting motor-truck competition, the imposition of that provision is not mandatory. We are of opinion that no different conclusion is warranted here. Applicants also request that relief be granted without the imposition of any circuity limitations. However, the record shows that some of applicants' routes are excessively circuitous. In these circumstances some limitations are necessary to prevent wasteful transportation which would result from the indiscriminate hauling of traffic over all available routes. See Livestock in Official Territory, 186 I. C. C. 457. Upon the record herein, we find that the proposed rates will be reasonably compensatory and that relief is justified, subject to the conditions and limitations hereinafter prescribed. Applicants having circuitous routes will be authorized to establish and maintain on the traffic described, from Fordson, Minneapolis, Minnesota Transfer, and St. Paul to destinations in Iowa, Minnesota, and South Dakota, as named in the application, rates the same as those contemporaneously in effect over the direct lines or routes from and to the same points, but not lower than the rates set forth in the application, and to maintain higher rates from intermediate points; provided, that the rates from such higher-rated intermediate points shall not be increased except as may be authorized by this Commission, and shall in no instance exceed the lowest combination of rates subject to the act; and provided further, that the relief granted herein shall not apply to routes over which the distance exceeds the distance over the direct line or route by more than 50 percent. All other and further relief will be denied. An appropriate order will be entered. 235 I. C. C. |