No. 247671

OF

TRAFFIC BUREAU, CHAMBER OF

COMMERCE OF

MITCHELL, S. DAK., ET AL. v. CHIGAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD COMPANY

Submitted November 6, 1932. Decided January 23, 1933

Rate on dressed hogs, in carloads, from Mitchell, S. Dak., to Austin, Minn., found not unreasonable or unduly prejudicial. Complaints dismissed.

W. G. Lyons and O. W. O'Berg for complainants.

Carson L. Taylor, O. H. Timm, and J. N. Davis for defendants. Paul E. Blanchard, L. A. Newell, Ross Dean Rynder, William N. Strack, and O. W. O'Berg for certain interveners.

REPORT OF THE COMMISSION

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

Exceptions were filed by complainants to the report proposed by the examiner.

Complainants are the Traffic Bureau, Chamber of Commerce of Mitchell, S. Dak., a voluntary association, and the Mitchell Abattoir, Incorporated, at Mitchell. By complaints filed October 5, 1931, in the title case and December 14, 1931, in Sub-No. 1, as amended, it is alleged that the rate on dressed hogs, in carloads, from Mitchell to Austin, Minn., was and is unreasonable and unduly prejudicial to complainants and unduly preferential of their competitors at Huron and Watertown, S. Dak., and other points. A lawful future rate and reparation on shipments made after July 14, 1931, are sought. Rates are in amounts per 100 pounds and do not include the present authorized emergency charges. The Board of Railroad Commissioners of the State of South Dakota intervened in the title case but was not represented at the hearing. John Morrell & Company intervened subsequent to the hearing. George A. Hormel & Company, owning a majority of the stock of Mitchell Abattoir, Incorporated, intervened in support of the complaint. Armour & Company and Swift & Company intervened, opposing any increase in the rates on dressed hogs from Huron and Watertown.

1 This report also embraces No. 24767 (Sub-No. 1), Same v. Chicago, Milwaukee, St. Paul & Pacific Railroad Company et al.

to 150 miles and 1 cent for each 15 miles or fraction thereof beyond that distance up to 300 miles from Pueblo. From the Augusta group the prescribed rates were made 7 cents higher than those from Casper. Those rates became effective October 16, 1930, resulting in rates to Pando of 62 cents from Casper and 69 cents from Wichita. In cases consolidated with the cited case, reparation based on the rates prescribed for the future in the latter case was awarded on shipments from Casper and points in the midcontinent field to various Colorado destinations on the Rio Grande, including points east and west of Pando. The rates therein prescribed to Minturn, Colo., 14 miles west of Pando, are sought here.

The assailed rates of 66 and 93 cents were prescribed from the midcontinent field and Casper, respectively, to Salt Lake City, Ogden, and Provo, Utah, in Utah State Automobile Asso. v. A., T. & S. F. Ry. Co., 92 I. C. C. 376. The carriers voluntarily established the same rates at all directly intermediate Rio Grande main-line points west of Canon City, Colo., which includes Pando, to avoid violation of section 4 of the interstate commerce act. Defendants contend, therefore, that we are precluded from awarding reparation on the considered shipments by reason of the decision of the Supreme Court in Arizona Grocery Co. v. Atchison, T. & S. F. Ry. Co., 284 U. S. 370. However, prior to the Rio Grande case we had never prescribed maximum reasonable rates on the considered traffic from and to these points. The principle announced by the Supreme Court is therefore not applicable to the instant case.

In Costello v. Atchison, T. & S. F. Ry. Co., 179 I. C. C. 525, reparation was awarded on shipments of gasoline from origins in the Casper and midcontinent groups, including the Augusta group, to various Colorado destinations on the main and branch lines of the Rio Grande to bases of the rates prescribed in the Rio Grande case.

We find that the rates assailed were unreasonable to the extent that they exceeded 63 cents from Casper and 70 cents from Wichita; that complainants received the shipments as described and paid and bore the charges thereon and were 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 are entitled to reparation with interest. Complainants should comply with Rule V of the Rules of Practice.

190 I. C. C.

No. 247671

TRAFFIC BUREAU, CHAMBER OF COMMERCE OF MITCHELL, S. DAK., ET AL. v. CHIGAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD COMPANY

Submitted November 6, 1932. Decided January 23, 1933

Rate on dressed hogs, in carloads, from Mitchell, S. Dak., to Austin, Minn., found not unreasonable or unduly prejudicial. Complaints dismissed.

W. G. Lyons and O. W. O'Berg for complainants.

Carson L. Taylor, O. H. Timm, and J. N. Davis for defendants. Paul E. Blanchard, L. A. Newell, Ross Dean Rynder, William N. Strack, and O. W. O'Berg for certain interveners.

REPORT OF THE COMMISSION

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

Exceptions were filed by complainants to the report proposed by the examiner.

Complainants are the Traffic Bureau, Chamber of Commerce of Mitchell, S. Dak., a voluntary association, and the Mitchell Abattoir, Incorporated, at Mitchell. By complaints filed October 5, 1931, in the title case and December 14, 1931, in Sub-No. 1, as amended, it is alleged that the rate on dressed hogs, in carloads, from Mitchell to Austin, Minn., was and is unreasonable and unduly prejudicial to complainants and unduly preferential of their competitors at Huron and Watertown, S. Dak., and other points. A lawful future rate and reparation on shipments made after July 14, 1931, are sought. Rates are in amounts per 100 pounds and do not include the present authorized emergency charges. The Board of Railroad Commissioners of the State of South Dakota intervened in the title case but was not represented at the hearing. John Morrell & Company intervened subsequent to the hearing. George A. Hormel & Company, owning a ity of the stock of Mitchell Abattoir, Incorporated, interven pport of the complaint. Armour & Company and y intervened, opposing any increase in the rates om H and Watertown.

to 150 miles and 1 cent for each 15 miles or fraction thereof beyond that distance up to 300 miles from Pueblo. From the Augusta group the prescribed rates were made 7 cents higher than those from Casper. Those rates became effective October 16, 1930, resulting in rates to Pando of 62 cents from Casper and 69 cents from Wichita. In cases consolidated with the cited case, reparation based on the rates prescribed for the future in the latter case was awarded on shipments from Casper and points in the midcontinent field to various Colorado destinations on the Rio Grande, including points east and west of Pando. The rates therein prescribed to Minturn, Colo., 14 miles west of Pando, are sought here.

The assailed rates of 66 and 93 cents were prescribed from the midcontinent field and Casper, respectively, to Salt Lake City, Ogden, and Provo, Utah, in Utah State Automobile Asso. v. A., T. & S. F. Ry. Co., 92 I. C. C. 376. The carriers voluntarily established the same rates at all directly intermediate Rio Grande main-line points west of Canon City, Colo., which includes Pando, to avoid violation of section 4 of the interstate commerce act. Defendants contend, therefore, that we are precluded from awarding reparation on the considered shipments by reason of the decision of the Supreme Court in Arizona Grocery Co. v. Atchison, T. & S. F. Ry. Co., 284 U. S. 370. However, prior to the Rio Grande case we had never prescribed maximum reasonable rates on the considered traffic from and to these points. The principle announced by the Supreme Court is therefore not applicable to the instant case.

In Costello v. Atchison, T. & S. F. Ry. Co., 179 I. C. C. 525, reparation was awarded on shipments of gasoline from origins in the Casper and midcontinent groups, including the Augusta group, to various Colorado destinations on the main and branch lines of the Rio Grande to bases of the rates prescribed in the Rio Grande case.

We find that the rates assailed were unreasonable to the extent that they exceeded 63 cents from Casper and 70 cents from Wichita; that complainants received the shipments as described and paid and bore the charges thereon and were 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 are entitled to reparation with interest. Complainants should comply with Rule V of the Rules of Practice.

190 I. C. C.

No. 247671

TRAFFIC BUREAU, CHAMBER OF COMMERCE OF MITCHELL, S. DAK., ET AL. v. CHIGAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD COMPANY

Submitted November 6, 1932. Decided January 23, 1933

Rate on dressed hogs, in carloads, from Mitchell, S. Dak., to Austin, Minn., found not unreasonable or unduly prejudicial. Complaints dismissed.

W. G. Lyons and O. W. O'Berg for complainants.

Carson L. Taylor, O. H. Timm, and J. N. Davis for defendants. Paul E. Blanchard, L. A. Newell, Ross Dean Rynder, William N. Strack, and O. W. O'Berg for certain interveners.

REPORT OF THE COMMISSION

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

Exceptions were filed by complainants to the report proposed by the examiner.

Complainants are the Traffic Bureau, Chamber of Commerce of Mitchell, S. Dak., a voluntary association, and the Mitchell Abattoir, Incorporated, at Mitchell. By complaints filed October 5, 1931, in the title case and December 14, 1931, in Sub-No. 1, as amended, it is alleged that the rate on dressed hogs, in carloads, from Mitchell to Austin, Minn., was and is unreasonable and unduly prejudicial to complainants and unduly preferential of their competitors at Huron and Watertown, S. Dak., and other points. A lawful future rate and reparation on shipments made after July 14, 1931, are sought. Rates are in amounts per 100 pounds and do not include the present authorized emergency charges. The Board of Railroad Commissioners of the State of South Dakota intervened in the title case but was not represented at the hearing. John Morrell & Company intervened subsequent to the hearing. George A. Hormel & Company, owning a majority of the stock of Mitchell Abattoir, Incorporated, intervened in support of the complaint. Armour & Company and Swift & Company intervened, opposing any increase in the rates on dressed hogs from Huron and Watertown.

This report also embraces No. 24767 (Sub-No. 1), Same v. Chicago, Milwaukee, St. Paul & Pacific Railroad Company et al.