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When demurrage tariff provided that term "reconsignment" would be applied as defined in reconsignment tariff, and latter defined destination as billed destination or terminal yard serving such destination, the terminal yard was destination for demurrage purposes also. Id. (54).

DIFFERENTIALS IN RATES AND ROUTES.

Distance scale of arbitraries authorized for Denver & R. G. W. R. Co., to be added to rates prescribed on livestock in 176 I. C. C. 1. Former finding amended. Livestock-Western District Rates, 175.

All-rail carload rates with which applicant barge line sought differential relationship were new rates supplementing any-quantity rates in effect on date of prior orders, and former findings as to proper differential were not controlling. Application of American Barge Line Co., 177 (180).

Differentials under all-rail rates authorized for joint rail-water transportation must be such that rates will be reasonably fair to both water and rail carriers, not designed to divert traffic from either rail or water carriers, but to reflect differences in cost and value of service. Id. (180).

Differentials used in constructing barge-rail and rail-barge-rail rates on cotton from Memphis, Tenn., and Arkansas to eastern destinations were made less than would result from formula in 182 I. C. C. 521 and 185 I. C. C. 483, since all-rail rates were depressed by unregulated truck and water competition, but were made greater than those governing rates via Federal barge lines and New Orleans because of differences in character of service and because all-rail rates to eastern territory were higher than to New Orleans. Id. (180-181).

Findings in 169 I. C. C. 663, modified to allow carriers to establish scale of rates for both single and joint line hauls on whole oyster shells and oyster-shell dust from Jacksonville, Fla., to Georgia points equal to single-line rates on ground limestone prescribed in 172 I. C. C. 783 for southern territory. Atlantic Shell Co., Inc., v. Atlantic Coast Line R. Co., 219.

Finding in 159 I. C. C. 333, modified and rate on rough stone from Bedford, Ind., limestone district to Kansas City, Mo., found unduly prejudicial to the extent that it might exceed rate 4.5 cents less than rate maintained on dressed stone between same points. Undue prejudice ordered removed. Builders' Assn. of Kansas City, Mo., Inc., v. Chicago, B. & Q. R. Co., 221.

Observance of prescribed rail differentials over water rates on the Pacific coast was required to prevent carriers from establishing rates lower than necessary to meet water competition and to protect water lines. Pacific Coast Fourth Section Applications, 273 (280).

Rates on brick from Cliffwood, N. J., to New York, N. Y., and Long Island groups found unreasonable to the extent that they exceeded rates based on scale prescribed in 68 I. C. C. 213, plus arbitrary of 50 cents for harbor service and additional arbitraries to points in Groups B, C, and D in Long Island, rates to New York and Group A to be the same. Rates prescribed for the future and reparation awarded. Ketcham v. Pennsylvania R. Co., 449 (451-453).

Less favorable operating conditions in Florida peninsula have given rise to addition of arbitraries on traffic to and from that territory. Georgia Public Service Comm. v. Atlantic Coast Line R. Co., 588 (599).

Differentials in Texas and special differentials for short and weak lines were continued in connection with fourth-section relief granted to establish class and commodity rates in Texas and from Texas to Shreveport, La., group. Class and Commodity Rates in Texas, 669 (674).

Transportation and traffic conditions in Texas differential territory warrant relatively higher rates than in common-point territory. Id. (674).

DIRECTION.

Westbound rates were not a proper measure of rates on coal from Virginia and West Virginia mines to Virginia points. Volume of movement and traffic density were greater on westbound lines, operating expenses were less, and rates were affected by competitive conditions not existing on eastbound coal. Comm. of Virginia v. Norfolk & W. Ry. Co., 325 (342). DISCRIMINATION. See also PREFERENCE AND PREJUDICE.

State Corp.

Intrastate Rates Discriminatory Against Interstate Commerce: See INTRASTATE COMMERCE.

DISTANCE.

Computation: In computing reparation on tankage from Milwaukee and Carrollville, Wis., to southern points and on peat humus from Manito, Ill., to Decatur, Ala., distance formula prescribed in 146 I. C. C. 149 as modified in 151 I. C. C. 795 was to be used: Farmers Fertilizer Co., Inc., v. Baltimore & O. R. Co., 573; Milwaukee Sewerage Comm. v. Aberdeen & R. R. Co., 601.

No obligation rested upon carrier to reduce rate on hogs from Wichita, Kans., to Los Angeles, Calif., established pursuant to 128 I. C. C. 607 for distance then obtaining, when by reason of subsequently acquired trackage a shorter mileage resulted. Cudahy Packing Co. v. Atchison, T. & S. F. Ry. Co., 735 (736).

In determining average distances from Indiana coal groups to Illinois destinations, only actual or potential shipping points should be used and distances from abandoned or dismantled mines should be ignored. Coal Trade Assn. of Indiana v. Baltimore & O. R. Co., 743 (744).

Distance rates prescribed on coal from Indiana to Illinois were to be computed over shortest route available without transfer, except in certain instances when shortest existing tariff routes were to be used. Id. (746).

Group Rates: See GROUPS AND GROUP RATES.

Scales: Rates on cement from Louisville, Nebr., to points in extended cement Scale III territory in Minnesota, North Dakota, and South Dakota, and to extended cement Scale IV territory in North Dakota were found unreasonable and unduly prejudicial for the future to the extent that they might exceed revised Scale III and Scale IV, respectively, for distances computed according to the method prescribed in 128 I. C. C. 63. Reasonable and nonprejudicial rates prescribed. Ash Grove Lime & Portland Cement Co. v. Chicago, B. & Q. R. Co., 103. Distance scale of arbitraries authorized for Denver & R. G. W. R. Co., to be added to rates prescribed on livestock in 176 I. C. C. 1. Former finding amended. Livestock-Western District Rates, 175.

Findings in 169 I. C. C. 663, modified to allow carriers to establish scale of rates for both single and joint line hauls on whole oyster shells and oyster-shell dust from Jacksonville, Fla., to Georgia points, equal to single-line rates on ground limestone prescribed in 172 I. C. C. 783 for southern territory. Co., Inc., v. Atlantic Coast Line R. Co., 219.

Atlantic Shell

Holmes & Hallowell scale was constructed in light of traffic, transportation, and other conditions so dissimilar to those prevailing in the southern West Virginia coal fields that it is not an appropriate yardstick to measure rates therefrom: Staunton Brick Co. v. Chesapeake & O. Ry. Co., 301 (310, 321); State Corp. Comm. of Virginia v. Norfolk & W. Ry. Co., 325 (342).

Rates on can stock from Chicago, Ill., to Oklahoma City, Okla., and North Fort Worth, Tex., were found not unreasonable in the past but unreasonable for the future to the extent that they might exceed column 38 rates under the southwestern revision, minimum 40,000 pounds. Finding in 183 I. C. C. 245, modified. Armour & Co. v. Atchison, T. & S. F. Ry. Co., 379.

Rates on brick from Cliffwood, N. J., to New York, N. Y., and Long Island
groups, found unreasonable to the extent that they exceeded rates based on scale
prescribed in 68 I. C. C. 213, plus arbitrary of 50 cents for harbor service and
additional arbitraries to points in Groups B, C, and D in Long Island, rates to
New York and Group A to be the same. Rates prescribed for the future and
reparation awarded. Ketcham v. Pennsylvania R. Co., 449 (451-453).

That average percentage of any given scale will be greater from the origin and
origin groups nearest to the destination area is a necessary concomitant of a
group and differential adjustment. Similarly, where the joint-line arbitrary
disappears for the longer distances, the single-line rate will bear a higher percent-
age to a given single-line scale than the joint-line rates bear to the corresponding
joint-line scale. Missouri Gravel Co. v. Chicago, B. & Q. R. Co., 465 (470).

Rates on tankage from Milwaukee and Carrollville, Wis., to southern territory
were unreasonable prior to effective date of rates prescribed in 151 I. C. C. 613,
to the extent that they exceeded rates based on scale prescribed in 113 I. C. C.
389, for southern territory, and on and after that date to the extent that they
exceeded rates based on the interterritorial scale approved in 151 I. C. C. 613.
Reasonable rates prescribed and reparation awarded, subject to limitations
prescribed in 146 I. C. C. 149; 151 I. C. C. 795, for computing distances: Farmers
Fertilizer Co., Inc., v. Baltimore & O. R. Co., 573; Milwaukee Sewerage Comm.
v. Aberdeen & R. R. Co., 601.

Per-car rates on cattle and sheep from Utah points on the Denver & R. G. W.
R. Co., to Los Angeles and Colton, Calif., were unreasonable to the extent that
they exceeded rates under separate scales for cattle and sheep found reasonable in
179 I. C. C. 29. Reparation awarded. Larsen v. Denver & R. G. W. R. Co., 608.
Rate scales constructed to provide greater rate of return for short hauls than
for longer hauls were not necessarily to be reconstructed because of loss of short-
haul traffic to trucks, since other considerations might outweigh or off-set that
factor. Livestock-Western District Rates, 611 (619).

Commission has never accepted the principle that each mile of line-haul trans-
portation is of uniform cost, regardless of the distance the shipment moves, and
has never made a rate scale covering all distances upon a straight-line, or uni-
form, progression throughout its length. That theory would result in rates on
many commodities for the longer distances above what the traffic will bear, thus
restricting the movement and defeating the purpose of the law, that rate struc-
tures shall be such that traffic may freely move to the extent that it can under
reasonable rates. Id. (628).

Rate scale prescribed in 81 I. C. C. 115 has never been exceeded in any scale
prescribed on livestock, and upon proper showing commission has rather consist-
ently held rates in excess thereof to be unreasonable and has awarded reparation.
Id. (639).

Upon further hearing to bring record down to date, findings in 176 I. C. C. 1,
prescribing maximum reasonable rates on edible livestock throughout the western
district, affirmed, except as to certain matters specifically dealt with to correct
or prevent abuses and to simplify application of the rates. Id. (643).

Rates on coal from Indiana to Illinois, found not unreasonable in the past but
unreasonable for the future to the extent that they might exceed distance scale
prescribed. Method for computing distances determined. Findings in 185
I. C. C. 225, modified. Coal Trade Assn. of Indiana v. Baltimore & O. R. Co.,

743.

Since distance scale prescribed in 185 I. C. C. 225 on coal from Indiana mines to Illinois destinations would result in lower rates than intended if made applicable over shortest routes available without transfer, a slightly higher scale than that formerly approved was prescribed. Coal Trade Assn. of Indiana v. Baltimore & O. R. Co., 743 (745).

That distance rates are prescribed for application over shortest possible rail routes is taken into consideration in determining their level. Id. (745).

Short Line: Carriers permitted to use short-line distance and grouping under western class-rate revision in publication of rates prescribed on livestock in 176 I. C. C. 1, between points not public markets. Livestock-Western District Rates, 611 (652).

Test of Reasonableness: That average distance over designated routes of movement was approximately 18 per cent greater than short-line distances should be taken into consideration in determining reasonableness of charges. Alphons Custodis Chimney Construction Co. v. Pennsylvania R. Co., 679 (680). DISTANCE RATES. See DISTANCE (SCALES).

DIVERSION. See RECONSIGNMENT AND DIVERSION.

DIVISIONS OF RATES.

While evidence concerning divisions is admissible in some cases, its value is slight where it is sought to measure purely local rates, since many factors foreign to the issues may have entered into acceptance of the divisions: Staunton Brick Co. v. Chesapeake & O. Ry. Co., 302 (309); State Corp. Comm. of Virginia v. Norfolk & W. Ry. Co., 325 (331).

EARNINGS.

In General: Diminishing returns of railroads must be considered in light of present countrywide economic situation as reflected by evidence of returns of business in general. Livestock-Western District Rates, 611 (629).

When livestock industry was prostrated financially and carriers were facing truck competition, a general increase in rates, with its attendant effect of discouraging shipment by rail, was one of the last means to consider in an effort to augment revenues. Id. (643).

Comparisons: See RATE COMPARISONS.

ECONOMIC CONDITIONS.

Diminishing returns of railroads must be considered in light of present countrywide economic situation as reflected by evidence of returns of business in general. Livestock-Western District Rates, 611 (629).

Economic condition of livestock industry had a direct bearing upon a basic element in rate making, namely, what traffic will bear, or value of the service to the shipper. Id. (633).

When livestock industry was prostrated financially and carriers were facing truck competition, a general increase in rates, with its attendant effect of discouraging shipment by rail, was one of the last means to consider in an effort to augment revenues.

ELKINS ACT.

Id. (643).

Agent performing service for carrier under contract does so subject to interstate commerce and related acts, including Elkins Act. The agent may not give to any shipper a favor or advantage not publicly offered to all shippers by the published tariffs. Storage in Transit at New Haven, Conn., 209 (211).

EMERGENCIES.

Addition of surcharges to Texas intrastate 1. c. 1. rates to remove unjust discrimination against interstate rates resulted in diversion of traffic to rail-transport and motor-truck companies. Findings in 186 I. C. C. 615, rescinded and proceeding reopened. Increases in Intrastate Freight Rates, Texas, 41.

Financial condition of carriers is such that they should not now be required to undertake new construction except where absolutely necessary. J. W. Hilliard Co. v. Great Northern Ry. Co., 201 (203).

FINDINGS.

Finding that proposed increases in commodity rates on vehicle materials were not justified, the only justification being higher rates on lumber which were not shown to be reasonable, did not constitute an approval of the commodity rates as reasonable maxima. Phipps-Reynolds Co. v. St. Louis-S. F. Ry. Co., 49 (50). All-rail carload rates with which applicant barge line sought differential relationship were new rates supplementing any-quantity rates in effect on date of prior orders, and former findings as to proper differentials were not controlling. Application of American Barge Line Co., 177 (180).

FOREIGN COUNTRY. See ADJACENT FOREIGN COUNTRY.
GATHERING SERVICE.

Tons shipped per locomotive-hour show to some extent relative difficulty of moving coal from mines to assembly points. Staunton Brick Co. v. Chesapeake & O. Ry. Co., 302 (314).

GROUPS AND GROUP RATES.

In General: Report and order in 161 I. C. C. 673, modified so as to permit grouping of rates on common brick, hollow building tile, and brick other than common from southern territory to points in Florida peninsula on the basis approved in 88 I. C. C. 543; 155 I. C. C. 730. Dann-Gerow Co., Inc., v. Alabama Great Southern R. Co., 171.

Transcontinental rate structure is recognized as different from that existing in any other territory. Distance is to a large extent disregarded and there is no other rate adjustment in the country with such extensive blanket or zone rates. Chamber of Commerce of Grand Junction, Colo., Inc., v. Aberdeen & R. R. Co., 233 (252).

That the average percentage of any given scale will be greater from the origin and origin groups nearest to the destination area is a necessary concomitant of a group and differential adjustment. Missouri Gravel Co. v. Chicago, B. & Q. R. Co., 465 (470).

Carriers permitted to use grouping under western class-rate revision in publication of rates prescribed on livestock in 176 I. C. C. 1, between points not public markets. Livestock-Western District Rates, 611 (652).

Distance: In measuring reasonableness of group rates, average distances between groups should be used. Alphons Custodis Chimney Construction Co. v. Pennsylvania R. Co., 679 (680).

In determining average distances from Indiana coal groups to Illinois destinations, only actual or potential shipping points should be used and distances from abandoned or dismantled mines should be ignored. Coal Trade Assn. of Indiana v. Baltimore & O. R. Co., 743 (744).

HEARING.

Denison Act does not authorize hearings prior to establishment of differential barge-rail rates, contemplating instead subsequent hearings upon complaint. It provides for changes in level either by order of commission or by agreement of carriers, without hearings thereon, and to hold prior hearings would be inconsistent with plain intent of act. Application of American Barge Line Co., 177 (179).

INBOUND RATES.

Rates on logs established by carriers in western portion of southern territory were reduced partly to receive outbound movement of manufactured product, and while rates were not attractive standing alone, they were attractive when coupled with rates for outbound movement. Georgia Public Service Comm. v. Atlantic Coast Line R. Co., 588 (592).

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