The Thacker district is west of the Tug River district, extending from Hull, W. Va., to Williamson, W. Va. The Kenova district extends west from Goodman, W. Va., to Wayne and Pritchard, W. Va. The Clinch Valley No. 1 district is on the Norton branch, southwest of the Pocahontas district, and extends from Hockman, Va., to Finney, Va. Clinch Valley No. 2 district is west of Clinch Valley No. 1 district and extends from Ward's, Va., to Norton. The Virginian extends from Deepwater, W. Va., on the west to Sewalls Point, Va., on the east. East of Oakvale, W. Va., it parallels the N. & W. The coal fields on the Virginian extend south from Deepwater to Elmore, W. Va. Coal from the few mines just east of Elmore is handled through that point.

The more northerly coal fields in the Appalachian region are served by the Pennsylvania Railroad Company, Western Maryland Railway Company, the Baltimore and Ohio Railroad Company, hereinafter called the B. & O., and other carriers. There is a heavy movement of coal to Atlantic ports for track delivery and for transshipment from the fields served by the Pennsylvania, Western Maryland, B. & O., C. & O., N. & W. and Virginian.

In 1929, mines on the N. & W. originated 44,918,105 tons of coal, of which 11,689,660 tons, or 26 per cent moved east. Of the eastbound tonnage 6,916,301 tons, or 15.4 per cent, moved to tidewater and 4,773,359 tons, or 10.6 per cent, moved to inland points. The westbound movement amounted to 30,024,259 tons, or 66.8 per cent. Of the westbound tonnage 8,715,010 tons, or 19.4 per cent, moved to the lakes and 21,305,249 tons, or 47.4 per cent, moved to inland points. The total movement of commercial coal was 41,709,919 tons, or 92.8 per cent. N. & W. fuel coal amounted to 3,074,617 tons, or 6.9 per cent. The movement of Virginian semianthracite coal (commercial and N. & W. fuel) amounted to 133,569 tons, or 0.3 per cent. During 1929 the N. & W. delivered 3,564,322 tons of coal to destinations on its line, other than tidewater, of which 382,307 tons moved to complaining points. Most of the coal delivered to N. & W. points in Virginia originates in the Pocahontas district. Mines in the Pocahontas group produced and shipped 31,569,604 tons of coal in 1929, of which approximately 80 per cent was produced on branch lines. In 1930 22,500,000 tons originated in the Pocahontas district, 7,000,000 in the Tug River field, 9,000,000 in the Thacker field, 2,000,000 in Clinch Valley Nos. 1 and 2, and 3,000,000 in the Kenova field.

The Pocahontas group, comprising the Pocahontas, Tug River, Clinch Valley No. 1, and Clinch Valley No. 2 districts, is used, with minor exceptions, as the base group in making eastbound rates from the coal fields. From the Thacker and Kenova districts to the east, rates are generally 10 cents higher than from the base group.

Informal complaints shown in Appendix A were made a part of this record. Rates and differences in rates will be stated in amounts per net ton, unless otherwise indicated, and do not include emergency charges authorized in the Fifteen Per Cent Case, 1931, 178 I. C. C. 539, 179 I. C. C. 215.

At the hearing the Chesapeake and Ohio Railway Company, hereinafter called the C. & O., was eliminated as a defendant. The Virginian Railway Company is named as a defendant in No. 23805 (Sub-No. 4) only, wherein rates to Roanoke and Vinton, Va., are assailed. The Norfolk and Western Railway Company will be hereinafter referred to as defendant or the N. & W.

Intervening petitions were filed by the Columbian Paper Company, Buena Vista, Va.; Traffic Bureau, Lynchburg Chamber of Commerce, Lynchburg, Va.; Martinsville Cotton Mill Company, Incorporated, Martinsville, Va.; Mathieson Alkali Works, Saltville, Va.; Benevolent and Protective Order of Elks of the United States of America, Bedford, Va.; Lehigh Portland Cement Company, Fordwick, Va.; and Hagerstown Chamber of Commerce, Hagerstown, Md. Complainants and these interveners are hereinafter called complainants. Intervening petitions were also filed by the Atlantic Coast Line Railroad Company, Carolina, Clinchfield & Ohio Railway, Louisville and Nashville Railroad Company, Seaboard Air Line Railway Company, Southern Railway Company, and Danville and Western Railway Company.

The N. & W. extends from Norfolk, Va., through Petersburg, Lynchburg, Roanoke, Walton, and Bluefield, Va., and Kenova, W. Va., to Portsmouth, Ohio. Beyond Portsmouth one line extends north to Columbus, Ohio, and another west to Cincinnati, Ohio. Branch lines extend from the main line as follows: From Lynchburg south to Durham, N. C.; from Roanoke north to Hagerstown, Md., and south to Winston-Salem, N. C.; from Salem, Va., north to Catawba Sanatorium, Va.; and from Christiansburg, Va., north to Blacksburg, Va. From Walton, Va., a line extends southwestward to Bristol, Tenn. Several branches extend from this line. At Narrows, Va., a branch extends south to Suiter, Va. At Bluefield a branch extends southwestward to Norton, Va. West of Bluefield numerous branch lines extend into the coal fields. The destination territory here in issue is Lynchburg and west and south from Roanoke to Martinsville.

The principal coal fields served by the N. & W. lie between Bluefield, Va., and Kenova. The Pochahontas district extends from Cooper, W. Va., west to Welch, W. Va. The Tug River district is west thereof, extending from Hemphill, W. Va., to Iaeger, W. Va.

The Thacker district is west of the Tug River district, extending from Hull, W. Va., to Williamson, W. Va. The Kenova district extends west from Goodman, W. Va., to Wayne and Pritchard, W. Va. The Clinch Valley No. 1 district is on the Norton branch, southwest of the Pocahontas district, and extends from Hockman, Va., to Finney, Va. Clinch Valley No. 2 district is west of Clinch Valley No. 1 district and extends from Ward's, Va., to Norton.

The Virginian extends from Deepwater, W. Va., on the west to Sewalls Point, Va., on the east. East of Oakvale, W. Va., it parallels the N. & W. The coal fields on the Virginian extend south from Deepwater to Elmore, W. Va. Coal from the few mines just east of Elmore is handled through that point.

The more northerly coal fields in the Appalachian region are served by the Pennsylvania Railroad Company, Western Maryland Railway Company, the Baltimore and Ohio Railroad Company, hereinafter called the B. & O., and other carriers. There is a heavy movement of coal to Atlantic ports for track delivery and for transshipment from the fields served by the Pennsylvania, Western Maryland, B. & O., C. & O., N. & W. and Virginian.

In 1929, mines on the N. & W. originated 44,918,105 tons of coal, of which 11,689,660 tons, or 26 per cent moved east. Of the eastbound tonnage 6,916,301 tons, or 15.4 per cent, moved to tidewater and 4,773,359 tons, or 10.6 per cent, moved to inland points. The westbound movement amounted to 30,024,259 tons, or 66.8 per cent. Of the westbound tonnage 8,715,010 tons, or 19.4 per cent, moved to the lakes and 21,305,249 tons, or 47.4 per cent, moved to inland points. The total movement of commercial coal was 41,709,919 tons, or 92.8 per cent. N. & W. fuel coal amounted to 3,074,617 tons, or 6.9 per cent. The movement of Virginian semianthracite coal (commercial and N. & W. fuel) amounted to 133,569 tons, or 0.3 per cent. During 1929 the N. & W. delivered 3,564,322 tons of coal to destinations on its line, other than tidewater, of which 382,307 tons moved to complaining points. Most of the coal delivered to N. & W. points in Virginia originates in the Pocahontas district. Mines in the Pocahontas group produced and shipped 31,569,604 tons of coal in 1929, of which approximately 80 per cent was produced on branch lines. In 1930 22,500,000 tons originated in the Pocahontas district, 7,000,000 in the Tug River field, 9,000,000 in the Thacker field, 2,000,000 in Clinch Valley Nos. 1 and 2, and 3,000,000 in the Kenova field.

The Pocahontas group, comprising the Pocahontas, Tug River, Clinch Valley No. 1, and Clinch Valley No. 2 districts, is used, with minor exceptions, as the base group in making eastbound rates from the coal fields. From the Thacker and Kenova districts to the east, rates are generally 10 cents higher than from the base group.

To local points on the N. & W. involved herein, east of Lurich, Va., rates from the Thacker and Kenova districts are uniformly 10 cents higher than from the base group. To Lurich, and east, rates are on a group basis.

Defendant's exhibits show rates on coal and average distances from the Pocahontas group to the complaining points and to Norfolk and Durham as follows:

More than one-half the points here involved are located on branch lines. The larger part of the coal received originated on branch lines.

Mileages used by complainants generally represent average distances from the Pocahontas district, whereas those used by defendant are average distances from the Pocahontas group. As a result the defendant's mileages are generally 12 miles greater than those of complainants. Average distances from the coal fields to Bluefield, W. Va., are, Pocahontas district, 31 miles; Tug River district, 51 miles; Clinch Valley No. 1, 37 miles; Clinch Valley No. 2, 84 miles; Thacker district, 86 miles, and Kenova district, 124 miles. From the Pocahontas group the average distance is 43 miles, and from all districts 62 miles. Defendant's exhibits are based on these mileages. The average distance from the Kenova-Thacker districts exceeds the average distance from the Pocahontas group by approximately 57 miles. In Appalachian Power Co. v. N. & W. Ry. Co., 144 I. C. C. 333, 152 I. C. C. 389, hereinafter called the Appalachian case, it was testified that the average weighted distance from the Pocahontas district to Bluefield was 24.4 miles. Here 31 miles from that district is used, but it is not a weighted average.

The rate changes of September 8, 1930, were made following the decision of division 4 in Bedford Pulp & Paper Co. v. Chesapeake & O. Ry. Co., 163 I. C. C. 670, hereinafter called the Bedford case.

In that case the following rates were prescribed from the C. & O. New River district:

Generally speaking, rates in effect in 1910 have been changed only by authorized increases and reductions, although some individual changes have been made.

Rates from the Pocahontas group to main-line points between Bluefield and Lynchburg range from 139 to 239 cents and are higher than rates from the New River district to points on the C. & O. for comparable distances. A rate of 135 cents applies from the New River district to Low Moor, Va., 118 miles, and is blanketed back to Bellespoint, W. Va., 44 miles. Defendant explains that this rate was established in 1922 at the request of pig-iron producers because of a depression in the Virginia pig-iron industry. Prior to that time a rate of 164 cents applied to a group extending from Caldwell, Va., to Low Moor, inclusive, for an average distance of 98 miles. In 1927 the C. & O. sought to restore the former basis, but after protest and suspension the proposal was withdrawn. As shown above, a rate of 165 cents was prescribed in the Bedford case from the New River district to Iron Gate, Va., which is 8 miles east of Low Moor. From the Pocahontas group to Bluefield, 43 miles, the rate on slack coal is 135 cents and on other kinds of coal 139 cents. The 135-cent rate also applies on slack coal to Glen Lyn, 25 miles east of Bluefield, but the rate on other kinds of coal is gradually increased until it reaches 176 cents at Glen Lyn. To Narrows, Va., 6 miles east of Glen Lyn, the rate is 189 cents on all kinds of coal. This is an increase of 54 cents on slack coal for an additional haul of 6 miles, while on other kinds of coal the increase is only 13 cents. To Pearisburg, Va., 9 miles east of Glen Lyn, the rate on slack coal is 57 cents higher than the rate to Glen Lyn. In the Appalachian case, and also in Standard Fuel & Supply Co. v. Norfolk & W. Ry. Co., 178 I. C. C. 255, the Bluefield rates were found not unreasonable. In many instances rates from the Pocahontas group to points off the main line are lower than rates to main-line points for comparable distances. Apparently this is due to the meeting of competitive rates of other carriers. In other instances rates increase out of proportion to increases in distance. For example, the rate to