ing 65,080 pounds, 6.7 mills per ton-mile and 21.7 cents per car-mile over a route 915 miles or 36.6 per cent circuitous; and on fuel petroleum oil, average loading 66,380 pounds, 6.5 mills and 21.7 cents, respectively, over a route 888 miles, or 44 per cent circuitous.

Relatively higher rates are sought to be maintained at intermediate points in adjoining States than those applicable between points in Texas over intrastate routes. To justify relief based upon different rate levels, it must be shown, among other things, that the higher rates at intermediate points are reasonable. No such showing is made. They compare the prescribed rate of 64 cents on rice from Beaumont to Texola, 787 miles, with the Texas scale rate of 44.5 cents to Amarillo, the more distant point to which the short-line distance is only 653 miles. This does not, as argued on exceptions, prove the reasonableness of the numerous rates here considered from and to higher rated intermediate points on routes operating outside the State of Texas.

Considering the entire adjustment, there is no more reason for concluding that the higher basis at intermediate points is justified, than for the opposite conclusion that the Texas scales should be observed at intermediate points on routes through adjoining States. The only ground upon which relief is justified over routes through adjoining States is circuity. The scale rates which applicants propose to maintain between more distant competitive points in Texas have had the approval of the Texas commission, and, generally speaking, appear to be reasonably compensatory over reasonably direct routes. The relief sought over routes through adjoining States will be granted subject to the limitations hereinafter specified. Export, import, and coastwise rates.-The distance class and commodity scales previously considered on domestic traffic, also apply on export, import, and coastwise traffic. Departures and the grounds relied upon for relief are substantially the same. Where relief is granted herein with respect to rates on domestic traffic the same measure of relief will be granted where such rates apply on export, import, and coastwise traffic.

Differentials.—In all types of departures previously considered, applicants seek such additional relief as will enable them to maintain the differentials generally observed in rates from and to points in Texas differential territory, and from and to points on recognized short and weak lines which are accorded special differentials in addition to the standard scales.

The short and weak lines are Bartlett Western Railway; Jefferson & Northwestern Railway Company; Marshall, Elysian Fields and Southeastern Railway Company; Pecos Valley Southern Railway Company; Roby & Northern Railroad Company; Port Isabel & Rio Grande Valley Railway; and Uvalde & Northern Railway Company.

We have generally recognized that transportation and traffic conditions in Texas differential territory warrant relatively higher rates than in common-point territory. The considered differentials on this traffic have been approved for interstate application in several proceedings, including the southwestern revision. They have likewise been approved by the Texas commission. The special differentials for short and weak lines are the same as those authorized by the Texas commission on intrastate traffic. Upon this record the differentials, both as to recognized short and weak lines and Texas differential territory, appear proper. Relief therefore, will be granted as will enable applicants to continue these differentials.

Equidistant provision and circuity limitations.-In considering distance-rate adjustments based upon approved formulas for computing distances, we have said that the spirit of the equidistant provision is fully met when, not merely the intermediate points, but all points throughout the territory covered by the scale, are accorded the same basis of distance rates as are accorded the competitive points. Cement in Trunk-Line Territory, 174 I. C. C. 224. The distance scales which applicants propose to continue over routes within Texas, are uniformly observed throughout Texas, and the method of computing distances there employed is the same as that approved by this commission in several major adjustments, including the southwestern revision. These rates, therefore, are in substantial compliance with the equidistant provision. With respect to routes operating outside the State of Texas, where the distance scales are not observed at intermediate points, the only justification of record is circuity, therefore imposition of the equidistant provision is mandatory.

Since the Texas lines do not observe any circuity limitations on intrastate traffic, applicants contend that any relief granted in the interstate adjustment should likewise be free from any circuity limitations; otherwise, they argue, the interstate routes will be at a disadvantage. On traffic originating at or destined to points beyond Texas, all routes within Texas are required to observe the interstate rates, including all limitations prescribed in connection therewith. As to interstate routes operating through adjoining States meeting the rates of intrastate routes on traffic originating at and destined to points in Texas, the fact that no circuity limitations apply in connection with the intrastate routes does not justify application of the Texas scales over all available interstate routes through adjoining States without regard to circuity limitations necessary to avoid wasteful transportation over unduly circuitous routes in compliance with the reasonably compensatory requirement of section 4.

Findings.-Applicants will be authorized to establish and maintain on the classes and commodities here considered (a) on interstate traffic between points in Texas over routes operating wholly within that State, and between points in Texas, on the one hand, and Shreveport and points grouped therewith, on the other, over routes through Louisiana and Texas where distance scales are observed at all intermediate points the lowest rates applicable over any route on interstate traffic, between the same points, constructed on basis of the same distance scales; and to maintain higher rates from, to, and between intermediate points, and (b) on interstate traffic between points in Texas over routes through adjoining States, and between points in Texas, on the one hand, and Shreveport and points grouped therewith, on the other, from and to which rates are constructed on basis of the Texas intrastate distance scales, rates the same as those in effect between the same points constructed on basis of the Texas intrastate scales; and to maintain higher rates from, to, and between intermediate points, subject to the conditions (1) that the present rates from, to, and between higher rated intermediate points shall not be increased except as may be hereafter authorized by the commission, and shall not exceed the lowest combination of rates subject to the act; (2) that the relief shall be subject to the circuity limitations previously described; (3) that from and to points in Texas differential territory and from and to points on the short and weak lines named herein, applicants may apply the same differentials as those applicable on like traffic over intrastate routes; and (4) that the relief granted routes operating outside the State of Texas, whose rates at intermediate points are not constructed on the same scale as rates to or from more distant points, shall be subject to the equidistant provision.

All other and further relief prayed herein, except that granted by outstanding permanent orders, will be denied, and all relief granted in the considered rates by temporary orders will be rescinded. An appropriate order will be entered.

190 I. C. C.

FOURTH SECTION APPLICATION No. 14810

POULTRY GRIT FROM FALLING SPRING, VA.

Submitted July 25, 1932. Decided January 12, 1933

Authority granted, on conditions, to establish less-than-carload rates on poultry grit from Falling Spring, Va., to points in the South, without observing the long-and-short-haul provision of section 4.

J. E. Tilford for applicants.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, PORTER, AND TATE BY DIVISION 2:

Carriers parties to Speiden's limestone tariff, I. C. C. No. 1488, apply for authority to establish rates on limestone poultry grit, in bags, less than carload, when included with carload shipments of ground or pulverized limestone or stone, as described in that tariff named (the content of poultry grit not to exceed 10 per cent of the weight of the carload shipment) from Falling Spring, Va., to designated destinations in southern territory, without observing the longand-short-haul provision of section 4 of the interstate commerce act Rates are stated in amounts per net ton unless otherwise specified.

The proposed rates are to be on the basis of the less-than-carload distance scale of rates prescribed on ground oyster shell in Fertilizers Between Southern Points, 113 I. C. C. 389, 123 I. C. C. 193, and 129 I. C. C. 215, hereinafter called the Fertilizer case. Distances are to be computed over the shortest route over which traffic can be transported without transfer of lading. Rates are to apply only over routes over which the rates on carloads are applicable. The less than carload rates prescribed in the Fertilizer Case on fertilizer and fertilizer materials, including oyster shells, crushed or ground, were prescribed on a basis not to exceed 130 per cent of the rates prescribed on the same commodities in carloads.

It is proposed to continue the higher class rates from intermediate points. The rates to intermediate points will be constructed on the same basis as rates to more distant points. Typical examples of the rates that will not conform to section 4 are the proposed rate to Brunswick, Ga., of $7.60 for 919 miles, while from Covington, Va., an intermediate origin point, 908 miles, it is proposed to continue the fifth-class rate of $16. Earnings under the proposed rate from

Falling Spring would be 8.3 mills per ton-mile. The route over which this rate is to be applied is 41 per cent longer than the direct line. The rate proposed to Gadsden, Ala., is $7.50 for 901 miles. The short line is 622 miles. To Blount Springs, Ala., an intermediate point, 706 miles, a rate of $8 will be applied, based on the scale for that distance. The ton-mile earnings to Gadsden under this rate will be 8.3 mills. These rates would appear to be compensatory.

Applicants submit that limestone poultry grit, which is a scratch feed for poultry, produced from limestone partly ground but not pulverized, is in competition with ground oyster shells, which also have a calcium ingredient and are used as poultry grit. On ground oyster shells, in less-than-carload quantities the current less-thancarload commodity rates on fertilizer and fertilizer material prescribed in the Fertilizer case apply.

By fourth-section order No. 9346, carriers having circuitous lines or routes between points embraced in the Fertilizer case, were authorized to establish over any route the lowest rate prescribed therein and to maintain higher rates from, to, and between intermediate points. This order was subject to the provisions that rates at higher rated intermediate points should not exceed the scale prescribed therein, or the lowest available combination and circuity limitations. By supplemental fourth-section order No. 10595 entered in Ground Limestone to the South, 188 I. C. C. 316, applicants therein were authorized to establish, over all routes, rates on ground limestone, in carloads, prescribed in Falling Spring Lime Co., v. Chesapeake & O. Ry. Co., 172 I. C. C. 783, from Falling Spring to destinations in southern territory, and to maintain higher rates from, to, and between intermediate points, provided that rates at such higher rated intermediate points should not exceed rates constructed on the same basis as rates from and to more distant points or the lowest available combination. The relief was made subject to circuity limitations 1 but not to the equidistant provision of section 4 due to destination grouping.

Relief to establish rates on the proposed basis subject to circuity limitations set out on the margin1 and the provision that rates from,

1 Relief shall not apply to circuitous lines or routes where the distance over the short line or route (1) is 150 miles or less and the longer line or route is more than 70 per cent circuitous; (2) exceeds 150 miles and the longer line or route is more than 50 per cent circuitous, except that where the distance over the short line or route exceeds 150 miles and the distance over the longer line or route does not exceed 255 miles, relief will apply to such longer line or route even though it is more than 50 per cent circuitous; and (3) exceeds 1,000 miles and the longer line or route is more than 33% per cent circuitous, except that where the distance over the short line or route exceeds 1,000 miles and the distance over the longer line or route does not exceed 1,500 miles, relief will apply to such longer line or route even though more than 33% per cent circuitous.