contrasted rates are lower, and in numerous instances materially lower, for equal or greater distances than those from Florida. For the most part the contrasted rates are commodity rates which are lower percentages of the corresponding second-class express rates applicable to any-quantity shipments of articles of food and drink generally than are the assailed rates. The latter rates also are generally higher percentages of the first-class freight rates from and to the same points than in the cases of the respective rates from the other producing sections. For example, from Lawtey to Kansas City, 1,145 miles, the express commodity rate is $3.61, and from Plan City to New York, 1,156 miles, it is $3.29, or 94 and 93 per cent, respectively, of the corresponding second-class express rates. In contrast therewith, from Castleberry, Ala., to New York, 1,150 miles, from Ponchatoula, La., to Pittsburgh, Pa., 1,120 miles, from Sarcoxie, Mo., to Boston, 1,171 miles, and from Portland, Tenn., to Boston, 1,165 miles, the express commodity rates are $2.45, $2.26, $2.37, and $2.26, respectively, and range from 55 to 67 per cent of the corresponding second-class express rates.

Complainants take the position that both the express and freight commodity rates from Florida should bear fixed relations to the corresponding first-class freight rates. They contend that for linehaul freight service a maximum reasonable basis will not exceed 65 per cent of those first-class rates, minimum 17,000 pounds, except to points in trunk-line and New England territories, whereto they suggest rates 65 per cent of first-class rates constructed on the so-called Q-1 formula of the southern class-rate revision. Complainants refer to Milk and Cream Between New England Points, 126 I. C. C. 38, wherein we approved a distance scale of rates on milk and cream in milk-train or passenger-train service, and found that the rates in freight-train service should not exceed 75 per cent of those approved for the expedited service. They maintain that a definite relationship between express and freight rates was thereby established, and on this basis contend that for expedited or express line-haul service a maximum reasonable basis for strawberries from Florida would be 1331⁄2 per cent of their proposed freight rates, or 863 per cent of the first-class freight rates, minimum 17,000 pounds.

Although the express rates are published exclusively by the Express Agency and the service is an Express Agency service, the burden of defending the assailed rates was assumed largely by the Coast Line and the Seaboard as representatives of all defendant southern carriers. The testimony deals at length with the history of the Florida rates and the circumstances leading up to the inauguration of express carload refrigerator service to the northern markets. The standard

agreement for express operations, effective March 1, 1929, between the Coast Line and the Seaboard, on the one hand, and the Express Agency, on the other, contains a provision whereby these rail car‐ riers have reserved to themselves the exclusive right to handle carload traffic in refrigerator cars and the Express Agency may not handle such traffic in passenger or express trains except under special agreement with the rail companies. As previously stated, such an agreement was first entered into for the purpose of handling the Florida strawberry traffic for the 1929–1930 season.

A witness for the Florida rail lines testifies that as this was an entirely new service they felt that the rates should be compensatory for the service rendered and bear a proper relation to the prevailing freight rates. Because of the uncertainty of the car supply and to avoid the necessity of operating double-header or extra trains those lines thought it necessary to control the routing, to limit the destination territory, and to limit the reconsignment and diversion privileges. They submitted to the Express Agency a schedule of transportation rates which they believed should be applied to this traffic. They proceeded on the theory that the freight rates on strawberries from Florida had been approved by us and were presumed to be reasonable. With this as a basis the carriers undertook to construct express rates for the new service by adding to the freight rates the estimated additional cost of the express service. Consideration was given to such items as the additional rental allowance of 0.5 cent per mile for the express refrigerator car, the expense for handling a greater number of crates of berries in the larger express car, the greater dead weight of the express refrigerator car, the cost of handling such larger and heavier cars in fast passenger or express trains which are limited in tonnage to maintain the required speed, and such other items as distinguish the two services. In this manner they came to the conclusion that the new carload express rates should approximate 150 per cent of the corresponding first-class freight rates, subject to the classification minimum of 17,000 pounds, with the provision that to trunk-line destinations the percentage should be computed on the so-called Q-1 basis, which we had directed the carriers to use in establishing freight rates on citrus fruit and fresh vegetables from Florida to points in that territory in Florida R. R. Commissioners v. A. & R. R. R. Co., 144 I. C. C. 603, 177 I. C. C. 735, and will hereinafter be referred to as constructive first-class rates. However, they discovered that rates so constructed would exceed the second-class any-quantity express rates then applicable to strawberries, and to avoid that result finally concluded to put into effect commodity line-haul express rates rep

resenting 70 per cent of the corresponding first-class express rates, subject to a minimum of 17,000 pounds. The same rates were effective for the 1930-1931 season and are the present rates.

The rail defendants contend that the carload rates, both freight and express, from Florida are not higher than reasonable. They maintain that to the extent the rates from other producing sections, particularly those in the Mississippi Valley, are relatively lower than the Florida rates, the former have been held down by freight rates lower than they might reasonably be and do not afford fair bases upon which to condemn either the express or freight rates from Florida. They submit that the strawberry is a light-loading, highly perishable commodity of relatively high value which demands the best transportation service available and the use of refrigerator cars, but there is no showing that the Florida berry differs in this respect from the berry produced in other sections.

Defendants maintain that Florida has less competition in marketing its strawberries than any other producing section in the country. Of the 1,721 cars shipped from Florida in the 1929-1930 season, 107 cars moved in December, 359 cars in January, and 439 cars in February; a total of 905 cars, or more than 50 per cent of the crop, and during this period Florida had no competition whatever. In March, 1930, Florida shipped 594 cars, while 68 cars moved from other producing points, principally from Louisiana. In other words, up to March 31, 1930, Florida had shipped 1,499 cars, or about 87 per cent of its total shipments for that season, and during that period had encountered competition with only 68 cars from other sections. In April, 1930, 2,301 cars originated in Alabama, Louisiana, Mississippi, and Texas, or approximately 80 per cent of the total production for that month, only 174 cars having moved from Florida. In May, 1930, the peak of the strawberry movement throughout the country, Florida shipped 48 cars of the total of 5,425 from all producing points.

For the years 1926 to 1929, inclusive, the average farm price paid for Florida strawberries was 30 cents per quart, while the early strawberries from Georgia brought an average price per quart of 15 cents, from Louisiana 24 cents, from Mississippi 20 cents, and from Texas 21 cents. Thus, the average Florida price was 6 cents per quart higher than Louisiana and 7 cents higher than the 23-cent average for the early crop States, including Florida, or 10 cents higher than the average for those States, excluding Florida. The second early strawberries for the same period brought an average price of 14 cents per quart, while the average for the so-called intermediate and late strawberries was 13 and 16 cents, respectively, the average for the United States as a whole having been 15 cents.

Defendants point out that Florida strawberries come into the markets long before the berries from other sections and bring prices ranging from 25 to 100 per cent higher than do the others. Defendants also show that on a carload of 175 crates, containing 32 quarts each, the total difference of the average Florida price over the average Louisiana price amounts to $336 and that this amount is only $5.25 less than the line-haul charge on a carload from Plant City to New York in freight service at the applicable rate of $1.95 per crate, minimum 175 crates. On the same basis it is computed that the total carload difference in the average value of the Florida strawberries is $392 in excess of the average for the early crop States, including Florida, or $560 when Florida is excluded, and $896 in excess of the average for the second early group, or $840 in excess of the average for the United States as a whole. They contend that the absence of competition and the higher price received for Florida berries justifies relatively higher rates from Florida than from other producing sections.

Defendants show that for the three years 1927-1929 more than 90 per cent of the carload shipments from Florida were delivered in 10 of the leading markets and considerably exceeded the percentage of carload deliveries from other States, including Louisiana, to the same markets. The proportions from Louisiana ranged from 49 per cent in 1929 to 60 per cent in 1927, while the average from all points was approximately 40 per cent. Approximately 50 per cent of the Florida shipments were delivered in the New York market, and complainants, on their part, consider that this supports their contention that the rates assailed herein had restricted their distribution. It should be borne in mind, however, that during this period carload express service was not available to Florida shippers. Carload movement from that State was in freight service and was of much lighter loading than the express movement from other States. Defendants' witness testifies that the Florida berry is the lightest berry he knows of, but no attempt is made in this record to compare the respective ladings.

The grouping of the Florida shipping points is the same as that prescribed by us for express class rates, that is, by blocks bounded by the principal parallels and meridians. Generally, express carload commodity rates are made with regard to the freight rates of the railroads serving the same territory. Under its general contracts with the various railroads the Express Agency is prohibited from establishing any commodity rates less than twice the prevailing firstclass freight rates between the same points without the concurrence of the railroad companies serving that territory or unless so ordered by Federal or State authority. These contracts have contained such

a provision for many years. The purpose, it is said, is to prevent the establishment of express rates as low as, or lower than, freight rates, which practice, defendant submits, would result in diversion of traffic to passenger-train movement that should properly move in freight service. The witness for the Express Agency maintains that an express rate lower than twice the prevailing freight rate is considered very low for passenger-train transportation, and refers to the existing block system of express rates, prescribed in 1912, 24 I. C. C. 380, wherein, as explained in Express Rates, 1922, 83 I. C. C. 606, 612, the basic haulage charges or factors in the first-class rates for 50-mile blocks of travel were made twice the approximate average 50-mile first-class freight rates in the several prescribed express Varying changes in express and freight rates in recent years have affected this relationship, but the witness urges that the fundamental principle that express rates should bear a proper relation to freight rates remains unchanged. Nevertheless, the carload express rates on strawberries from Florida were not published in accordance with this principle, having been made a percentage of the corresponding first-class express rates, and defendant shows that in some instances the assailed express rates are actually lower than the applicable freight rates from and to the same points, while in other instances they are but slightly higher. For example, the express rates per 32-quart crate on a minimum carload of strawberries from Lawtey and Plant City to New York are equivalent to $1.921 and $2.072, respectively, while the freight rate is $1.95 per crate, minimum 175 crates.

zones.

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Comparison of the express commodity rates from Plant City and Starke to Jersey City, Boston, Cincinnati, and Chicago, per crate and per pint or per quart, for the different-sized crates with the prevailing freight rates from and to the same points for each of the eight different carload freight minima discloses that the express rates per crate for the 24-pint crate are lower than the freight rates in each instance, while for the 36-pint, 24-quart, and 32-quart crates the express rates per crate are either lower or but slightly higher than the freight rates with the higher freight minima, and in all instances are lower than the rates with the lower minima. Reducing the rates per crate to rates per pint or per quart, the express rates range from 2.9 to 3.9 cents per pint and from 5.7 to 7.5 cents per quart, and the freight rates range from 2.9 to 6.9 cents per pint and from 5.7 to 10.4 cents per quart.

Prior to the advent of the express carload rates strawberries from Florida moved in that service largely in pony refrigerator boxes

Starke is in the origin group adjacent to the Lawtey group and in a few instances takes the Lawtey rate, but in the majority of cases the rate from Starke is from 4 to 14 cents higher than the Lawtey rate.