ganization in some instances might be separate, even though the officials thereof also perform similar duties for another road or roads. The question of separate organization and separate operation in any particular case, however, was held to be one to be decided upon all the facts.

Applicant is separately incorporated, has a separate corporate title, makes in its own name separate accounting and operating reports, and files separate freight and passenger tariffs. It is a subsidiary of the Erie which owns 83 percent of the capital stock. All of applicant's bonds, however, are owned by the public. The Erie from time to time advances applicant sums of money, called investment advances, which are repaid by applicant from its operating revenues.

Of the 11 directors of applicant, 5 are directors of the Erie and two of the five members of applicant's executive committee are members of the executive committee of the Erie. All of the executive, administrative, and operating officials of applicant are officials of the Erie. For their services applicant pays a sum based upon the proportion of applicant's gross revenue to the total gross revenue of the Erie and its subsidiary railroads. Payment is made such officers by the Erie which collects the amount from applicant. The joint officials perform similar functions for the other subsidiaries of the Erie, the Chicago & Erie and the New York, Susquehanna & Western Railroad, and payments for their services are made in the same manner. Operating employees, agents, and trainmen are employed and paid directly by applicant.

Applicant derives 85 percent of its revenue from passenger traffic. For this service it uses from 100 to 105 passenger cars each day. It owns only 3 passenger coaches and leases from the Erie all other equipment, locomotives, both passenger and freight, passenger coaches, passenger motor cars, and work equipment. Freight cars are paid for on a per diem basis.

Applicant issues tickets for passenger service between New York City and points on its line west of Jersey City. These are honored on the ferries operated by the Erie, which charges applicant 2 cents per passenger, except users of commutation tickets, for whom a charge of $5.60 per passenger per year is made. Applicant does not own nor lease any facilities for the service. The Erie also performs service for applicant in freight operations by car float, barge, and lighter at a rate of 4 cents per 100 pounds.

The Erie grants applicant general trackage rights in the Erie terminals at Jersey City and Croxton, N.J., at a charge of $3 per train. Employees in the terminals, dispatchers and operators, furnish service to the Erie, the New York, Susquehanna & Western,

and the applicant. Their salary and wage expenses are divided between these railroads according to the time they are engaged in service to each road. Salaries of eastern-district officers of the Erie also employed by applicant, other than general executive, administrative, and operating officials, and salaries of the clerical forces employed by the Erie and the applicant, are divided between them upon a locomotive ton-mile basis.

Applicant relies upon our decisions in Railway Mail Pay, 165 I.C.C. 774, 185 I.C.C. 715, and 174 I.C.C. 781, particularly the latter, in which the status of the Northwestern Railroad Company of South Carolina was determined. We found in those cases that applicants therein were separately operated short lines. In none of them, however, was the same close relation shown between the short line and the controlling line as that shown here. It did not appear in any of them, as appears here, that the short line had no operating equipment but through leases and service charges depended upon the equipment and services furnished by the trunk line which controlled it. In the case of the Northwestern Railroad Company of South Carolina, the services of the accounting and treasury officers, who were also officers of the Atlantic Coast Line Railroad, and the services of the latter road's accounting department, were paid for upon a revenue-prorate basis. The same basis is used in the instant case, but is employed also to apportion the salary expense of all the joint executive, administrative, and operating officers. In computing the total revenue of which applicant's revenue is a part, revenues derived from operations of other subsidiary lines of the Erie are included. The division of salaries of certain minor officials and of clerical forces employed by the Erie and the applicant upon a locomotive ton-mile basis, and the division of salaries and wages of certain terminal employees upon a time basis, also show a much closer relation between applicant and the Erie than that shown by the short-line and other railroads in the cited cases.

It is clear from the foregoing facts that, while applicant's reports, accounting records, and tariffs are kept and issued upon the basis of separate operation, its physical operations and its administrative organization are not separate and distinct from those of the Erie. and its subsidiary lines.

We find that applicant is not a separately operated railroad within the meaning of the findings and orders in the Railway Mail Pay cases, supra, and is not entitled to the higher rates established for railroads so classified.

An appropriate order denying the application will be entered.

No. 252841

WILMINGTON CHAMBER OF COMMERCE, DEL., ON BEHALF OF WILMINGTON COAL MERCHANTS BUREAU ET AL. v. BALTIMORE & OHIO RAILROAD COMPANY ET AL.

Submitted December 13, 1933. Decided January 18, 1934

Rates on anthracite, in carloads, from mines in Pennsylvania to destinations in northern Delaware found unreasonable. Reasonable rates prescribed for the future. Reparation denied.

Harry S. Elkins, P. F. Guerke, and C. R. Marshall for complainants and interveners.

W. I. Woodcock, Jr., J. Hamilton Cheston, John J. Fitzpatrick, Jervis Langdon, Jr., and Joseph F. Eshelman for defendants.

REPORT OF THE COMMISSION

DIVISION 4, COMMISSIONERS MEYER, MAHAFFIE, AND MILLER BY DIVISION 4:

Exceptions were filed by complainants and defendants to the examiner's proposed report, and the cases were argued orally. Our conclusions differ in some respects from those recommened by him.

The complaint in the title case was filed on May 9, 1932, on behalf of the Wilmington Coal Merchants Bureau, a nonprofit organization, and of certain coal dealers. Complainants allege that the rates on anthracite, in carloads, from the Wyoming, Lehigh, and Schuykill regions in Pennsylvania to destinations in northern Delaware 2 were and are unreasonable. In the subnumbered complaint, filed on the same date, it is alleged that the rates on buckwheat no. 4 anthracite, in carloads, from the Pennsylvania origin districts to Wilmington, Del., were and are unreasonable. Reparation and rates for the future are sought in both complaints.

The Pyrites Company, Incorporated, and certain copartners and corporations dealing in coal at Wilmington, Concord, Holly Oak,

1 This report also embraces No. 25284 (Sub-No. 1), Wilmington Chamber of Commerce, Del., on Behalf of The Pyrites Company, Incorporated, v. Same.

2 The destinations are as follows: On the line of the Baltimore & Ohio Railroad Company, from the Pennsylvania-Delaware border to and including Kiamensi, Del., and on the Landenberg branch from Landenberg Junction, Del., to Hockessin, Del., inclusive; on the line of the Pennsylvania Railroad Company, from Claymont to Newport and New Castle, Del., inclusive; on the line of the Reading Company, from the PennsylvaniaDelaware border to and including Wilmington, Del.

Silverside, and Hockessin, Del., intervened in the title case and seek reparation. Those interveners and complainants will be referred to collectively as complainants. The Baltimore Coal Exchange intervened but introduced no evidence.

The evidence herein is not such as to warrant consideration of the rates to points other than Wilmington, New Castle, Elsmere, Kiamensi, Greenville, Marshallton, and Newport, Del., at which the complainants are located, and to the other destinations brought in issue by the interventions, as stated above. The findings herein. will be restricted accordingly. Rates will be stated in amounts per ton of 2,240 pounds.

In previous cases, pea coal has been referred to as being one of the so-called prepared sizes, but the statement is made herein that broken, egg, stove, and nut size anthracite are usually known as prepared sizes. Buckwheat no. 4, on which rates are assailed in the subnumbered complaint, is small enough to pass through a 2-inch screen. Its principal sources of production are at river mines, the culm banks of colleries, and at colleries in connection with the screening of barley-size anthracite. It is used mainly at power plants close to the point of production, in the manufacture of coal briquets, and in metalurgical processes. The Pyrites Company uses it in the production of pyrites sinter. The average weight of the several sizes shipped to complainants is about 48 tons. The average weight of buckwheat no. 4 shipped to The Pyrites Company is about 43 tons. The mine prices per net ton of 2,000 pounds for the several sizes of anthracite in August 1932 were as follows: Broken $6.35, egg $6.60, stove $6.85, nut $6.60, pea $4.95, buckwheat $3.25, rice $1.85, and barley $1.40. The average mine value of buckwheat no. 4 in 1932 was about 65 cents per long ton. The cost of buckwheat no. 4 purchased by the Pyrites Company was 55 cents at origin. The prevailing retail prices per net ton of anthracite at Wilmington on October 1, 1932, were as follows: Stove $12.75, egg and nut $12.50, pea $10.50, and buckwheat $8.50. Some dealers charged different prices. A description of the mining groups in the Pennsylvania anthracite field and the names of the carriers entering the several groups are shown in Baltimore Coal Exc. v. Baltimore & O. R. Co., 196 I.C.C. 15. No rates are maintained or sought from origins on the lines of the Erie Railroad Company or New York, Ontario & Western Railroad Company to the destinations herein.

Wilmington, New Castle, and Newport are the largest of the destinations here considered. Wilmington is served by the Baltimore & Ohio Railroad Company, the Pennsylvania Railroad Company, and Reading Company. Concord is a station on the Baltimore & Ohio within the switching limits of Wilmington.

Newport and New Castle are on the Pennsylvania 4 and 7 miles south and southeast of Wilmington, respectively, and Holly Oak is on the same line 6 miles north of that point. Greenville is on the Reading 6 miles north of Wilmington. Elsmere is on the Baltimore & Ohio and Reading south of Wilmington. Marshallton and Hockessin are on the same line 4.5 and 13.5 miles, respectively, west of Wilmington. Silverside and Kiamensi are also Baltimore & Ohio stations, respectively north and south of Wilmington.

The Pennsylvania and Reading are the only carriers which reach the origin groups as well as the destination territories herein. From mines on the Reading and on the line of the Lehigh and New England Railroad Company to Reading destinations the route is through Birdsboro and Coatesville, Pa. Coal from Reading mines to destinations on the Pennsylvania moves over the Reading to Thurlow Junction, near Chester, Pa., and Pennsylvania beyond. From Reading mines to Baltimore & Ohio stations, Wilmington and north thereof, the route is over the Reading to Park Junction (Philadelphia), Pa., and Baltimore & Ohio beyond; and to stations south of Wilmington the route is over the Reading to Elsmere Junction, Del., thence Baltimore & Ohio. Coal for stations on that destination line, when moving from mines on the line of the Central Railroad Company of New Jersey in connection with the Reading, is delivered to the Reading at Allentown or Haucks, Pa.; and when from mines. on the Lehigh Valley the Reading receives it at East Penn Junction, Pa. The Reading delivers such coal to the Baltimore & Ohio at Park Junction or Elsmere Junction, depending upon whether the destinations are Wilmington or stations north or south thereof.

Coal from mines on the Pennsylvania in the Pottsville group to destinations on the Pennsylvania moves over that line through Reading and Gray's Ferry (Philadelphia), Pa.; and from mines in other groups it moves over the Pennsylvania through Harrisburg, Pa., and Philadelphia, Pa., when for destinations as far south as Wilmington, and through Harrisburg and Perryville, Md., when for destinations on the Pennsylvania south of Wilmington. Coal from mines on the Delaware & Hudson Company is delivered to the Pennsylvania at Wilkes-Barre, Pa., and when from mines on the line of the Delaware, Lackawanna & Western Railroad, hereinafter called the Lackawanna, the Pennsylvania receives it at Nanticoke or West Nanticoke, Pa. From those three junctions the route of the Pennsylvania is through Philadelphia or Perryville, depending upon whether the destinations are north or south of Wilmington.

Coal moving in connection with the Pennsylvania from mines on the line of the Central Railway Company of New Jersey, herein