No. 217721 INTERSTATE RATES BETWEEN POINTS IN MISSOURI Decided January 8, 1934 Upon reconsideration, finding numbered 15 in original report, 181 I.C.C. 259, modified insofar as it relates to rates on grain products, in less-thancarload lots of 10,000 pounds or more. Appearances as shown in former report, and C. M. Spence and G. W. Holmes for respondents. REPORT OF THE COMMISSION ON RECONSIDERATION BY THE COMMISSION: This report deals with no. 21215, which was included in our report in these proceedings, 181 I.C.C. 259. In no. 21215, East St. Louis shippers alleged, among other things, that on shipments of grain products, in less than carloads, to destinations in Missouri, they were charged the classification basis of fourth-class rates, while St. Louis shippers of the same commodities to the same destinations had the benefit of a lower intrastate distance scale of less-thancarload rates, subject to a minimum of 10,000 pounds, prescribed by the Missouri Public Service Commission; and that thereby East St. Louis shippers were prejudiced and the St. Louis shippers were preferred. On this issue we found as follows (finding 15, pages 294, 295): the maintenance of rates on flour, meal, bran, mill stuffs, shorts, middlings, grain screenings, and ground feed in straight or mixed lots of 10,000 pounds or more from St. Louis to points in Missouri within 150 miles of St. Louis which are less than the contemporaneous rates from East St. Louis to the same destinations by differences greater than would result from the respective applications of the maximum reasonable class rates herein prescribed or approved for application from St. Louis and East St. Louis to said Missouri destinations, subject to the ratings applicable to said commodities in less-thancarload quantities in the western classification, is, and for the future will be, unduly preferential of St. Louis and shippers there located, and unduly prejudicial to East St. Louis and to shippers there located, and that the undue prejudice and preference should be removed by cancellation of the rates on lots of 10,000 pounds or more and the application in lieu thereof of the class rates applicable to less-than-carload lots of less than 10,000 pounds. This report embraces No. 21215, Chamber of Commerce of East St. Louis v. Atchison, Topeka & Santa Fe Railway Company et al. An order was issued requiring the establishment of the rates found reasonable from East St. Louis, but no order was issued respecting rates from St. Louis. Upon petition of defendants asking for modification of the above finding insofar as it relates to rates on lots of 10,000 pounds or more, no. 21215 was reopened solely for the purpose of determining whether this finding should be modified upon the record as made. In the petition defendants state that there is a large amount of flour and feed moving from East St. Louis and St. Louis by truck to Missouri destinations within approximately 200 miles. To meet this truck competition they ask that our finding be modified to permit them to establish on grain products in lots of 10,000 pounds or more from both St. Louis and East St. Louis certain rates set forth in the petition. The following statement shows representative destinations, the distances thereto from St. Louis, the present less-than-carload intrastate rates from St. Louis on lots of 10,000 pounds or more, the lessthan-carload interstate rates per 100 pounds from St. Louis and East St. Louis, and the rates proposed: 1 Intrastate rates from St. Louis, Mo., 10,000 pounds or more. State and interstate (single line) rates on flour, meal, mill stuffs, etc., in lots of 10,000 pounds or more, from St. Louis, Mo., and East St. Louis, Ill. From St. Louis, Mo. From East St. Louis, Ill. All of the commodities concerned are rated fourth class in the western classification. To the destinations concerned the present rates from East St. Louis and the interstate rates from St. Louis are the same for all distances, as are the proposed rates for distances in excess of 50 miles. For distances less than 50 miles the proposed rates from East St. Louis exceed those from St. Louis. in some instances by as much as 3 cents. In the second supplemental report in Rate Structure Investigation, Part 3, Cotton, 174 I.C.C. 9, 16, we said: In view of the unstable character of the truck rates, and the intangible nature of the truck competition, we are not disposed to impose definite restrictions and limitations of a general character upon the establishment of truck-competitive rates except with respect to the minimum below which the rates may not go. In that proceeding we refused to approve truck-competitive rates which were less than 65 percent of the rates prescribed in the original order therein. The rates proposed in the instant proceeding are in some instances less than 50 percent of the rates now applicable and it is doubtful whether they would be reasonably compensatory. As stated, certain of the proposed rates contravene our original finding with respect to the relation of rates from St. Louis and East St. Louis. While rates lower than the present rates might be justified, for the reasons above stated our finding herein is not to be construed as an approval of the specific rates proposed. Upon reconsideration, we find that our original finding numbered 15 should be, and it is hereby, modified so as to eliminate that part thereof reading as follows: and that the undue prejudice and preference should be removed by cancellation of the rates on lots of 10,000 pounds or more and the application in lieu thereof of class rates applicable to less-than-carload lots of less than 10,000 pounds. In all other respects the original finding is affirmed. INVESTIGATION AND SUSPENSION DOCKET No. 38141 Submitted November 27, 1933. Decided January 8, 1934 Relief from the long-and-short-haul provision of section 4 of the Interstate Commerce Act in rates on sugar authorized, in 195 I.C.C. 127 and 195 I.C.C. 383, further modified (a) to include additional routes on traffic from San Francisco Bay points to Chicago, Ill., St. Louis, Mo., and other points, and (b) to permit the establishment of the lowest combination of rates over any route from western refineries to points in Illinois, Wisconsin, Michigan (Upper Peninsula), and Minnesota. E. B. Boyd and C. Schonfelder, Jr., for applicants. BY THE COMMISSION: In the former reports, 195 I.C.C. 127 and 195 I.C.C. 383, applicants in no. 14080 were authorized by order no. 11300 to establish a rate of not less than 65 cents per 100 pounds on sugar, in carloads, from San Francisco Bay points to Chicago, Milwaukee, St. Louis, and related points, and to maintain higher rates to intermediate points east of the Utah-Nevada State line and east of and including Williams and Phoenix, Ariz., subject to the conditions that the present rates to the higher rated intermediate points should not be increased or exceed the lowest combinations of rates subject to the Interstate Commerce Act. By order no. 11344 entered in no. 15234, similar relief was granted to maintain the same rates over routes in connection with the Illinois Central Railroad Company. The Texas & Pacific Railway Company and certain other lines not parties to no. 14080, and their connections, now request that order no. 11300, as amended, be further modified to permit application of the rates authorized therein and in no. 11344 over additional routes through El Paso, Tex., thence by routes on, north, and west of the line of the Texas & Pacific Railway Company to Texarkana, Ark.-Tex., and the St. Louis Southwestern Railway Company and Missouri Pacific Railroad Company through Dexter and Illmo, Mo., Thebes and Flinton, Ill., to East St. Louis, Ill. The distances over applicants' routes generally do not exceed those over some of the routes now having relief, and, as conditions con 1 This report deals only with fourth-section applications nos. 14080 and 14816. fronting applicants are the same as those presented in support of the relief granted by order no. 11300, the order will be modified to authorize applicants to apply the same rates over the additional routes, subject to the same terms and conditions as imposed in that order, and to the further condition that relief will not apply over routes over which the distances exceed the distance over the short line or route by more than 33% percent. In the former report, 195 I.C.C. 127, applicants in no. 14816 were authorized to establish for the transportation of refined sugar, in carloads, from points in Colorado, Nebraska, Wyoming, Kansas, Utah, Idaho, Montana, Minnesota, South Dakota, and Iowa to Chicago, Ill., Milwaukee, Wis., St. Louis, Mo., and related points, rates shown in the application, subject to minimum carload weight of 60,000 pounds and rates subject to a minimum of 80,000 pounds 4 cents higher than rates shown in the application in connection with that minimum, and to maintain higher rates to intermediate points subject, among others, to the condition that rates to higher rated intermediate points should not exceed the lowest combination of rates subject to the act. No authority was requested to apply over existing routes the lowest combination available over other routes from and to those points. Applicants now apply for this additional relief. Illustrative of departures resulting from the application of the lowest combination over all routes is the Milwaukee combination of 52 cents, from Fort Morgan, Colo., to Green Bay, Wis., constructed over a 3-line route of 1,190 miles. It is proposed to apply this rate over a 2-line route of approximately 1,300 miles composed of the Chicago, Burlington & Quincy Railroad to East Winona, Minn., thence Green Bay & Western Railroad. The latter route passes through Wisconsin Rapids and Merrillan, Wis., to which points the Milwaukee combination of 56.5 cents is applicable. To East Winona the published through rate is 56 cents. From the Utah group to Mount Vernon, Ill., the lowest rate is the Salem, Ill., combination of 62 cents constructed over a 4-line route. Traffic from the Utah group to Mount Vernon can move over a slightly longer 2-line route through Pinckneyville and Flinton, Ill., to which the rates from the Utah group are the Sandoval, Ill., and St. Louis, Mo., combinations of 64 and 65 cents respectively. To enable applicants to obtain their long hauls and to apply the lowest combinations over all routes not unduly circuitous, order no. 11300 will be modified to authorize the establishment and maintenance over all routes from points in the States named to destinations in Illinois, Wisconsin, Michigan (Upper Peninsula), and Minnesota, rates constructed on the basis of the lowest combinations of rates |