the average value of an average carload of such boxes has ranged from $720, during the past five years, to $540 at present. The distance from St. Louis to Murfreesboro is 352 miles and the rate assailed was and is a commodity rate of 52 cents, equivalent to 40 per cent of the corresponding first-class rate of 130 cents. Complainant contends that the rate on paper boxes should not exceed 27.5 per cent of the first-class rate, or 10 per cent higher than the basis of rates applicable on paperboards, that being the differential generally recognized as proper between these two commodities. Reference is made by it to Standard Paint Co. v. Director General, 142 I. C. C. 221, where 25 per cent of the first-class rates were prescribed on paperboards from points in central and trunk-line territories to points in southern territory, except Virginia and North Carolina. A similar basis of rates was prescribed in Bedford Pulp & Paper Co. v. Chesapeake & O. Ry. Co., 157 I. C. C. 110, on traffic from Big Island, Va., to Atlanta, Ga.; and in Marley Paper Mfg. Co. v. Akron, C. & Y. Ry. Co., 163 I. C. C. 103, on traffic from Childs and Marley, Md., and Winchester, Va., to points in official territory. The basis requested by complainant would produce a rate of 36 cents. In support of its allegations complainant relies mainly upon the following comparison between the rates from St. Louis and those from alleged competitive producing points: From Nashville to St. Louis, Cincinnati, Cairo, and Louisville, the rates are 37, 32, 28, and 26.5 cents, respectively, and the percentage of first class, 29.8, 26.2, 27.4, and 26.5, respectively. Complainant also compares the rate assailed with the corresponding rates from Chattanooga, Tenn., to destinations in Missouri, Ohio, Illinois, Kentucky, and Arkansas for distances ranging from 312 to 604 miles. These compared rates range from 34 to 55 cents and are from 21 to 27.9 per cent of the corresponding first-class rates. There are manufacturers of corrugated-paper boxes at Cincinnati, Louisville, and Evansville. In the sale of its product at Murfreesboro complainant competes with these manufacturers. It will be noted from the foregoing table that the rates from these points to Murfreesboro, which average approximately 33 per cent of the contemporaneous first-class rates, are on a substantially lower level than the rate from St. Louis to the same point. The rates from the points first above referred to have been in effect since the early part of 1927, or practically two years prior to the movement of the shipments here concerned. Throughout this period the considered rate from St. Louis has been markedly out of line with rates from the compared origins. There is no showing of circumstances and conditions relating to traffic and transportation, or carrier competition, which would justify the charging of a higher level of rates from St. Louis than from the other points named to Murfreesboro. Upon cross-examination, witness for defendants stated that rates from St. Louis into southern territory should be on the same level as that prevailing in southern territory. It will be observed that the rate from St. Louis to Nashville, 320 miles, is 38.5 cents, equivalent to 31 per cent of the first-class rate of 124 cents between these points. For a haul of 352 miles, or but 32 miles longer, over main lines of the same carriers from the same origin to Murfreesboro defendants have maintained a rate on the commodity concerned 13.5 cents higher than the rate to Nashville, although the difference between the first-class rates from St. Louis to the respective destinations is but 6 cents. The ton-mile earnings under the assailed rate are 29.55 mills. Based on the average loading of 24,000 pounds the per car and car-mile, earnings would be $124.80 and 35.45 cents, respectively. At the rate of 36 cents sought by complainant the earnings, similarly computed, would be $86.40 per car, 24.5 cents per car-mile, and 20 mills per ton-mile. Under the rate of 46 cents which defendants offer to establish for the future, as hereinafter indicated, the earnings would be $110.40 per car, 31.34 cents per car-mile, and 26 mills per ton-mile. The rate of 41 cents from Cincinnati to Murfreesboro yields earnings per car, car-mile, and ton-mile, of $98.40, 30 cents, and 24.92 mills, respectively; and the rate of 38.5 cents from St. Louis to Nashville, $92.40, 29 cents, and 24 mills. Defendants deny that the rate assailed is unreasonable or otherwise unlawful, or that reparation should be awarded on past shipments, but express a willingness to establish for the future a rate equivalent to 35 per cent of first class, or 46 cents. This proposal is based principally upon the decision in Paper Boxes Between Southeastern Points, 93 I. C. C. 559, hereinafter referred to as the Southeastern case. In that case, decided December 3, 1924, we found justified certain proposed rates on paper boxes from Nashville, Chattanooga, Atlanta, and Birmingham, to certain destinations in Georgia, Alabama, South Carolina, and Tennessee, the average distance being 274.3 miles, and average rate approved being 36.4 per cent of first class. In the case just referred to, rates of 47 cents were proposed and approved by us, from Nashville to Athens, Columbus, and Macon, Ga., for distances of 362, 364, and 377 miles, respectively. The rate of 46 cents proposed by defendants herein for the distance of 352 miles from St. Louis to Murfreesboro compares favorably with the foregoing rates. The rates from St. Louis and other Mississippi and Ohio River crossings to southern points were not embraced in the readjustment considered in the Southeastern case. Subsequent to the decision of that case, and prior to the movement of the shipments here concerned, the rates on corrugated boxes from a number of such crossings to numerous southeastern destinations, including Murfreesboro, were revised by the carriers, but no change was made in the rate from St. Louis to the latter point, and this record furnishes no explanation in respect thereof. The rates from St. Louis to Chattanooga and Knoxville, Tenn., Atlanta and Augusta, Ga., and Birmingham, Ala., average 35.2 per cent of the contemporaneous first-class rates, and the rates from Louisville to the principal points in southern territory average 35.4 per cent of first class. From St. Louis to Chattanooga, 472 miles, defendants maintain a rate of 52 cents, which is 33.8 per cent of the contemporaneous first-class rate. They offer no justification for charging the same rate to Murfreesboro, the latter being intermediate to Chattanooga and 120 miles less distant from St. Louis over the same lines. With respect to the above-instanced rates to Nashville and from Chattanooga, defendants refer to the Southeastern case wherein it was stated that the rates to points in the Mississippi Valley were prescribed in Rates to, from, and between Points South of Ohio River, 64 I. C. C. 306, primarily to bring about an adjustment in harmony with the requirements of the fourth section of the act and at the same time conserve the revenues of the carriers, and that such rates should not be used as standards of reasonable maximum rates. In the Southeastern case it was also stated that the rates from ChattaDooga to the Ohio River crossings were established in order to permit manufacturers at those points to meet competition from central territory at the Ohio River and beyond. In American Tri-State Paper Box Co. v. L. & N. R. R. Co., 104 I. C. C. 442, we cited with approval the rates found justified in the Southeastern case. We find that the rate assailed was, is, and for the future will be unreasonable to the extent that it exceeded, exceeds, or may exceed 46 cents. We further find that it is and will for the future be unduly prejudicial to the extent that it bears or may bear a greater percentage relationship to the first-class rate from St. Louis to Murfrees boro than does the rate on the same commodity from Cincinnati to Murfreesboro bear to the corresponding first-class rate. We further find that complainant made shipments as described and paid and bore charges thereon; that it was damaged thereby in the amount of the difference between the charges paid and those which would have accrued at the rates herein found reasonable; and that it is entitled to reparation, with interest. Complainant should comply with Rule V of the Rules of Practice. An order for the future will be entered. 190 I. C. C. INVESTIGATION AND SUSPENSION DOCKET No. 3674 Submitted October 5, 1932. Decided December 28, 1932 Proposed revision of rates on unmanufactured tobacco in the South and from the South to official-classification territory found not justified. Suspended schedules ordered canceled and proceeding discontinued. Edward D. Mohr, Joseph P. Cook, Charles P. Reynolds, H. G. Fitzpatrick, H. G. Rardin, and Henry Thurtell for respondents. Slaughter Linthicum for American Sumatra Tobacco Corporation. Wilbur LaRoe, jr., Frederick E. Brown, G. C. Lucas, Walter L. Clark, H. J. Wagner, J. E. Marks, Moses R. Glenn, Oscar Vest, James Hatcher, W. G. Womble, E. M. Price, and J. F. Sloan for protestants. REPORT OF THE COMMISSION DIVISION 5, COMMISSIONERS LEWIS, FARRELL, AND TATE LEWIS, Commissioner: Exceptions were filed by protestants to the report proposed by the examiner, and the case was orally argued. Our conclusion differs from that of the examiner. By schedules filed to become effective December 9, 1931, respondents propose to revise their rates on unmanufactured tobacco in the South and from the South to official-classification territory. Upon protest of tobacco marketing, manufacturing and merchandising interests and Southern States authorities, we suspended operation of the schedules until July 9, 1932, and they have since been held under voluntary suspension by respondents pending this decision. Rates will be stated herein in amounts per 100 pounds and exclusive of the emergency increases of January 4, 1932. Generally speaking, both the present and proposed rates on shipments in hogsheads, tierces, or cases apply to any quantity, but on shipments in bulk, bags, crates, bundles, or baskets they apply only to carloads. Unmanufactured tobacco, which is in leaf form, is generally shipped compressed into large hogsheads, about 16 being loaded into a 36-foot 6-inch car and 18 into a 40-foot 6-inch car. The average loading in standard carloads is about 18,000 pounds, except that on some unusually heavy, low-grade tobacco produced in southwestern Kentucky and eastern Tennessee and shipped to the north Atlantic ports and interior eastern cities for the manufacture of |