revenue thereon was 67 cents, or 13.56 per cent of the value. In Increased Rates on Saw Logs and Bolts, 80 I. C. C. 590, a distance scale of rates was referred to as then, in 1923, in effect on saw logs and bolts from points on the Milwaukee between stations in Wisconsin and Michigan for manufacture and reshipment, and rates 2 cents higher than that scale for like distances were approved for joint-line hauls from certain points in Michigan to certain points in Wisconsin. The scale there approved was prescribed for joint hauls of like distances on saw logs and excelsior bolts for manufacture and reshipment from several points in Michigan to Marinette in MarinetteGreen Bay Mfg. Co. v. Duluth, S. S. & A. Ry. Co., 168 I. C. C. 413. Such of the saw logs and bolts as are used in the manufacture of box material, excelsior, etc., are the same size and often of the same species as pulpwood. Logs of this description and pulpwood load substantially the same. The Wisconsin pulpwood scale rate for 170 miles is 6.7 cents, whereas the joint-line scale rate on saw logs is 7 cents. The latter scale of rates is subject to manufacture and reshipment provisions by which the inbound carrier is insured. the outbound haul of the manufactred products. These special provisions have kept down the level of rates on logs and bolts.

In 1913 in Pulp & Paper Mfrs. Traffic Asso. v. C., M. & St. P. Ry. Co., 27 I. C. C. 83, the then existing scale prescribed by the Wisconsin commission was considered and rejected as a measure of proportional rates on shipments of pulpwood from Wisconsin to Minnesota points. Similar action was taken by division 3 as to the present Wisconsin scale in Tomahawk Kraft Paper Co. v. C. & N. W. Ry. Co., 109 I. C. C. 517. For the distances complainant's shipments move there is little difference on the average between the Wisconsin 2-line pulpwood scale and the joint log and bolt scale. From 50 to 150 miles the former ranges from 0.1 to 0.6 cent lower, and from 160 to 270 miles from 0.1 to 0.7 cent higher than the latter. In Michigan Pole & Tie Co. v. Duluth, S. S. & A. Ry. Co., 177 I. C. C. 565, a 15.5-cent combination rate on pulpwood from Raco and other Michigan points to Nekoosa, Wis., was found not unreasonable for a haul of approximately 400 miles. Distance considered, the assailed rates are as low or lower than the rates assailed in that case. The low traffic density in the territory considered is advanced to substantiate the need for higher rates together with the fact that operating conditions, due to heavy snowfalls in the Upper Peninsula of Michigan, are unusually difficult.

Rates on pulpwood logs from points in Canada to destinations in New York and Pennsylvania, which are over 200 per cent higher than the rates assailed for similar distances in the instant case, were

found not unreasonable in Castanea Paper Co. v. Algoma Central & H. B. Ry. Co., 177 I. C. C. 719. On a shipment from Michigan to Peshtigo for a haul of 175 miles, complainant pays 9.7 cents while the interstate scale of the Maine Central Railroad Company, applicable throughout New England, is 10.5 cents, and an eastern territory interstate joint-line scale prescribed in West Virginia Pulp & Paper Co. v. B. & O. R. R. Co., 104 I. C. C. 495, produces a rate of 10.5 cents for the same distance.

Finally it should be pointed out that in addition to the allegation under section 1, the complaint, as originally filed, contained allegations relating to sections 2, 3, and 13 of the act. Because of the failure to state the facts relied upon as constituting violations of these sections, as required by our rules of practice, the complaint was returned to complainant, who withdrew all of the allegations except that relating to section 1. However, much of complainant's evidence deals with interstate and intrastate rates on pulpwood to competitive paper-mill points in Wisconsin. Except as they may have a bearing on section 1 issues, these rates suggest issues under sections 3 and 13 with which we have no authority to deal under the pleadings.

We find that the assailed rates were not and are not unreasonable. The complaint will be dismissed.

190 I. C. C.

No. 24430

DIAMOND A CATTLE COMPANY v. ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY ET AL.

Submitted September 26, 1932. Decided January 18, 1933

Carload rates on stocker and feeder cattle from certain origins in New Mexico to Mossman, S. Dak., found not to have been unreasonable. Complaint dismissed.

E. C. Wallace and D. P. Harris, jr., for complainant.

R. S. Outlaw, E. A. Boyd, H. C. Barron, and Thomas F. King for defendants.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS MCMANAMY, BRAINERD, AND LEE BY DIVISION 3:

Exceptions were filed to the report proposed by the examiner. Our conclusions differ from those recommended by him.

Complainant, a corporation, alleges by complaint filed May 5, 1931, that the carload rates on stocker and feeder cattle from Roswell, Lake Arthur, Avalon, and Wagon Mound, N. Mex., to Mossman, S. Dak., were and are unreasonable. Reasonable future rates and reparation on shipments made after May 8, 1929, are sought. Future rates were prescribed in Livestock, Western District Rates, 176 I. C. C. 1, and became effective January 25, 1932. That proceeding has been reopened for further hearing, and in the report on further hearing, adopted January 10, 1933, we approved the levels of rates prescribed in the original report. Under the circumstances we will consider only the rates in the past.

The shipments consisted of stocker and feeder cattle, which animals are described in the case just cited, page 100. The rates charged applied on ordinary livestock not intended for immediate slaughter. Higher combination rates applied on beef cattle. All but two of the shipments were in 40-foot cars, and we will consider the rates only on the latter, as the record does not show where the two shipments in 36-foot cars originated.

The record differs as to the distances traversed, complainant showing the respective mileages from Roswell, Lake Arthur, Avalon, and Wagon Mound as 1,475, 1,507, 1,545, and 1,435. Defendants' figures are 1,455, 1,487, 1,525, and 1,490.

Prior to January 25, 1932, the rates from Roswell, Lake Arthur, Avalon, and Wagon Mound were $154.55, $162.25, $164.45, and $133.65 per car, respectively. On and after that date they were and are $144.76, $146.97, $150.28, and $137.02 per car. Complainant compares the rates assailed prior to January 25, 1932, with lower rates from the considered origins to various destinations in the Southwest, including southern Kansas, under what is known as the 2797 scale, which scale is described in the case before cited, page 10. It is urged that this scale is an unduly high measure of comparison, as the traffic after leaving the Southwest passes through Kansas and Nebraska, in which States and throughout western trunk-line territory rates generally, including those on livestock, were at that time lower than in the Southwest. Other livestock rates below the 2797 scale are also instanced. Reparation was first sought to the basis of that scale, but on exceptions complainant now seeks rates approximately 16.5 per cent lower.

Since January 25, 1932, the rates on livestock have been on the same basis throughout the entire territory here considered. We believe that scales other than the 2797 scale afford a better test of the reasonableness of the rates assailed. For example, in Arizona Packing Co. v. Arizona E. R. Co., 81 I. C. C. 115, the so-called Cactus scale was prescribed on beef cattle from Denver, Colo., and points in Arizona, New Mexico, and Texas differential territory to Cactus, Ariz. Rates have heretofore been prescribed on stocker and feeder cattle made 85 per cent of the rates on beef cattle. This basis was approved in Livestock, Western District Rates, supra, and applying that percentage to the Cactus scale for the distances involved produces rates higher than those here assailed. The Cactus scale was recently used as the basis for reparation purposes in Arizona Woolgrowers Assn. v. Atchison, T. & S. F. Ry. Co., 188 I. C. C. 475, on shipments of sheep and goats from Arizona points to Kansas City and St. Joseph, Mo. In American National Live Stock Asso. v. Oregon-W. R. & Nav. Co., 109 I. C. C. 621, the so-called northwestern scale was prescribed on beef cattle from points in Idaho, Oregon, Washington, and Montana to Chicago, Ill., St. Paul, Minn., Omaha, Nebr., and other middle-western and Missouri River markets. Although the rates under that scale are much lower than those under the Cactus scale, rates made 85 per cent of the former compare favorably with the rates assailed. Incidentally it may be pointed out that this northwestern scale, retrograded and converted for application on hogs in single-deck cars, was used for reparation purposes in Livestock, Western District Rates, supra.

We find that the rates assailed were not unreasonable. plaint will be dismissed.

The com

No. 24188 1

LIGHT GRAIN & MILLING COMPANY v. CHICAGO, ROCK ISLAND & GULF RAILWAY COMPANY ET AL.

Submitted June 13, 1932. Decided January 17, 1933

Rates applicable on carloads of grain and grain products from Liberal, Kans., and from various points to Liberal, there accorded transit and reforwarded to certain destinations in New Mexico, found unreasonable and in violation of the fourth section. Waiver of outstanding undercharges authorized. Reparation awarded.

W. E. Bush for complainants.

M. J. Dowlin, A. B. Enoch, Thomas F. King, and T. V. Robertson for defendants.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS MCMANAMY, BRAINERD, AND LEE BY DIVISION 3:

No exceptions were filed to the report proposed by the examiner and our conclusions are in accord with his recommendations. Complainants are C. M. Light, Paul W. Light, I. R. Salley, and Mrs. C. M. Light, copartners operating a flour mill and grain elevators at Liberal, Kans.

In the title case, by complaint filed January 9, 1931, as amended, it is alleged that the rates charged on certain carloads of grain and grain products from Liberal and various points in Oklahoma and Kansas, and from St. Joseph, Mo., and Beatrice, Nebr., to Liberal, there accorded transit, and the products reforwarded to various destinations in New Mexico, covered by certain previously filed special-docket applications, were unreasonable and in violation of the long-and-short-haul clause of section 4 of the interstate commerce act. We are asked to award reparation and to authorize waiver of certain outstanding undercharges.

In No. 24188 (Sub No. 7), by complaint originally received January 12, 1931, as amended, it is alleged that the rates charged on two carloads of grain and grain products shipped February 24, 1930,2 and August 9, 1930, respectively, from Liberal to Santa Fe, N. Mex., were unreasonable and unduly prejudicial. Reparation only is

1 This report also embraces No. 24188 (Sub-No. 1), Light Grain & Milling Company v. Atchison, Topeka & Santa Fe Railway Company et al.

Most of which was milled from wheat which originated at Sand Springs, Kans.