prescribed for the past and future in finding no. 1, and that the rates assailed on the same shipments from Intake to Williston were unreasonable to the extent that they exceeded the basis indicated in finding no. 2. An order for the future in respect of this latter movement is not necessary for the reason set forth in no. 25233 (sub-no. 1).

4. We further find that the rates assailed in no. 25233 (sub-no. 4) on wrought-iron pipe from Conrad to Sheridan were unreasonable in the past to the extent that they exceeded a rate of 86 cents contemporaneously applicable between the same points in the opposite direction. An order for the future does not appear to be necessary.

5. We further find that the rates assailed in nos. 25353, 25353 (sub-no. 1), and 25353 (sub-no. 2) on second-hand contractors' equipment, in carloads, between points in Montana and North Dakota as previously set forth herein were unreasonable to the extent that they exceeded rates constructed in a like manner as those prescribed in finding numbered 2, minimum 24,000 pounds, except that the percentage of the corresponding first-class rates and differentials shall be 45 percent.

6. We further find that complainants made shipments as herein described and bore the charges thereon; that they were damaged. thereby in the amount of the difference between the charges paid under the rates assailed and those which would have accrued at the rates herein found reasonable; and that they are entitled to reparation, with interest. Complainants should comply with rule V of the Rules of Practice. It appears from the record that some of the shipments were overcharged and that others were undercharged.

In determining the rates, arbitraries, and differentials under the foregoing findings, fractions of less than 0.5 cent shall be dropped and other fractions converted into 1 cent.

An order for the future will be entered with respect to the rates on pipe from Milwaukee and North Milwaukee to the destinations here considered in Montana.

APPENDIX A

Complaints embraced in report herein

No. 25233, Montana-Dakota Power Company v. Chicago & North Western Railway Company et al. Filed April 13, 1932. Complainant alleges that the rates and charges on Smithweld pipe and fittings, in carloads, from Milwaukee and North Milwaukee, Wis., to destinations in North Dakota and Montana were and are unreasonable.

No. 25233 (Sub-No. 1), Montana-Dakota Power Company et al. v. Great Northern Railway Company et al. Filed April 13, 1932. Complainants allege that the rates and charges on wrought-iron pipe and fittings, in carloads, from points in Montana to destinations in North Dakota were and are unreasonable.

No. 25233 (Sub-No. 2), Montana-Dakota Utilities Company v. Chicago & North Western Railway Company et al. Filed May 7, 1932. Complainant alleges that the rates and charges on Smithweld pipe and fittings from Milwaukee and North Milwaukee, Wis., to destinations in North Dakota and Montana were and are unreasonable.

No. 25233 (Sub-No. 3), Montana-Dakota Power Company v. Chicago, Milwaukee, St. Paul & Pacific Railroad Company et al. Filed May 26, 1932. Complainant alleges that the rates and charges on three carloads of wrought-iron pipe from North Milwaukee, Wis., to Crane, Mont., reconsigned in transit to Intake, Mont., and after arrival at Intake reconsigned to Williston, N.Dak., and on one carload of wrought-iron pipe from North Milwaukee to Intake and after arrival at Intake reconsigned to Williston, were and are unreasonable.

No. 25233 (Sub-No. 4), Northwest States Utilities Company v. Chicago, Burlington & Quincy Railroad Company et al. Filed August 1, 1932. Complainant alleges that the rate and charges on one carload of wrought-iron pipe from Conrad, Mont., to Sheridan, Wyo., were and are unreasonable.

No. 25353, Montana-Dakota Power Company v. Great Northern Railway Company et al., No. 25353 (Sub-No. 1), Northwest States Utilities Company v. Great Northern Railway Company et al.; and No. 25353 (Sub-No. 2), Montana-Dakota Utilities Company v. Northern Pacific Railway Company. Filed June 13, 1932. Complainants allege that the rates and charges on second-hand contractors' equipment, in carloads, between points in North Dakota and Montana were and are unreasonable.

APPENDIX B

Scale of first-class arbitraries in cents per 100 pounds for use in constructing rates from Milwaukee and North Milwaukee, Wis., to destinations beyond zone III in Montana

APPENDIX C

Scale of first-class differentials in cents per 100 pounds for use in constructing rates from North Dakota origins to destinations in Montana and from origins in Montana to destinations in North Dakota

5 miles and under..

10 miles and over 5 miles. 15 miles and over 10 miles. 20 miles and over 15 miles. 25 miles and over 20 miles.. 30 miles and over 25 miles. 35 miles and over 30 miles. 40 miles and over 35 miles. 45 miles and over 40 miles. 50 miles and over 45 miles. 55 miles and over 50 miles. 60 miles and over 55 miles. 65 miles and over 60 miles.. 70 miles and over 65 miles..

75 miles and over 70 miles.. 80 miles and over 75 miles. 85 miles and over 80 miles.. 90 miles and over 85 miles. 95 miles and over 90 miles.. 100 miles and over 95 miles. 110 miles and over 100 miles. 120 miles and over 110 miles. 130 miles and over 120 miles. 140 miles and over 130 miles. 150 miles and over 140 miles. 160 miles and over 150 miles. 170 miles and over 160 miles. 180 miles and over 170 miles.

190 miles and over 180 miles. 200 miles and over 190 miles. 210 miles and over 200 miles. 220 miles and over 210 miles. 230 miles and over 220 miles. 240 miles and over 230 miles. 260 miles and over 240 miles.. 280 miles and over 260 miles. 300 miles and over 280 miles. 320 miles and over 300 miles.. 340 miles and over 320 miles. 360 miles and over 340 miles.

380 miles and over 360 miles.

400 miles and over 380 miles.

No. 25363

S. SMITH COAL COMPANY v. ERIE RAILROAD COMPANY ET AL.

Submitted October 25, 1933. Decided January 22, 1934

Rates on bituminous coal, in carloads, from mines in Pennsylvania, West Virginia, and Maryland, to Kearny, N.J., for Erie Railroad delivery, found unduly prejudicial, but not otherwise unlawful. Basis of nonprejudicial rates prescribed. Reparation denied.

Eric E. Ebert and Edmond M. Moffett for complainant.

Henry G. Elwell and William Levine for interveners.

M. B. Pierce, Joseph F. Eshelman, W. J. Larrabee, Thomas P. Healy, Charles R. Webber, Eugene S. Williams, and Earle C. Calhoun for defendants.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, PORTER, AND TATE BY DIVISION 2:

Exceptions to the proposed report and replies thereto were filed by complainant and defendants, and the case was orally argued. Our conclusions differ from those recommended by the examiner.

Complainant, a corporation dealing in coal, alleges by complaint filed June 16, 1932, that rates on bituminous coal, in carloads, from mines in Pennsylvania, West Virginia, and Maryland served by the Pennsylvania Railroad Company, the Baltimore & Ohio Railroad Company, Western Maryland Railway Company, and certain shortline defendants, to Kearny, N.J., for Erie Railroad delivery, were and are unreasonable, unjustly discriminatory, and unduly prejudicial. Lawful rates for the future and reparation are sought. The Woburn Degreasing Company of New Jersey, a corporation, intervened in support of the complaint, also seeking reparation. The Roebling Coal Company, Incorporated, dealing in coal at Newark, N.J., and the New York Central Railroad Company intervened in behalf of defendants. Reference to defendants will include that carrier. Rates and differences in rates will be stated in amounts per long ton.

Complainant's coal yard is on the Erie in Kearny, an incorporated municipality between Newark and Jersey City, N.J. The gravamen of the complaint is that rates to Kearny for Erie delivery should not

be higher than rates to Newark for delivery by the Pennsylvania, Lehigh Valley Railroad Company, or the Central Railroad Company of New Jersey, hereinafter called the Jersey Central, to Harrison, N.J., on the Pennsylvania, to Kearny on the Jersey Central, to Seaboard, N.J., on lines of the Delaware, Lackawanna & Western Railroad Company, hereinafter called the Lackawanna, and Erie, to Croxton, N.J., on the Erie, to West End, N.J., on the line of the New York, Susquehanna & Western Railroad Company, hereinafter called the Susquehanna, and to Jersey City on the West Shore Railroad, Pennsylvania, Lehigh Valley, Lackawanna, and Jersey Central.

The grouping of the points of origin is described in Central Pennsylvania Coal Producers Assn. v. B. & O. R. Co., 196 I.C.C. 203, and cases there cited. In the general eastbound adjustment of rates on bituminous coal, the Clearfield and Cumberland-Piedmont-Myersdale regions constitute the base rate groups. The rates assailed from groups west and south of the base groups are made the following differentials over the base rates: 10 cents from the Greensburg group, and 25 cents from the Westmoreland and West Virginia groups. The origin grouping and differentials are not assailed. Of the entire movement of bituminous coal eastbound, 53 percent is from the base groups and 47 percent from the differential groups. The destination groups concerned in this proceeding are the socalled Jersey City and Albany groups, to which rates from the base regions are $3.09 and $3.22 respectively. The extent of the Albany group, which embraces destinations along the Hudson River down to but not including Jersey City, is due primarily to water competition. Approximately 3,600,000 tons of bituminous coal are shipped annually to this group. Newark and Jersey City are in the $3.09 rate group. The boundary between the Albany and Jersey City groups is, with certain exceptions, the terminus of the lines approaching the Newark-Jersey City district from the southwest and northwest, respectively. The delivering lines join with the Pennsylvania in maintaining the $3.09 rate to Weehawken, N.J., on the West Shore, to Hoboken, N.J., on the Lackawanna, to West End on the Susquehanna, and to Croxton and Seaboard on the Erie. Seaboard, although within the corporate limits of Kearny, is approximately 4.5 miles from complainant's siding. The $3.09 rate also applies for Erie delivery at Weehawken and Hoboken, the West Shore absorbing the Erie's switching charges.

From the Clearfield region the Pennsylvania has the short singleline route to Newark and Jersey City. Other lines from that region, and the Baltimore & Ohio and Western Maryland from the Cumberland-Piedmont-Myersdale district, in connection with the Jersey