fully illustrated by the following table comparing the rates on lumber from intermediate points to Chicago, Ill., and Indianapolis, Ind., with rates thereon from other territories:

In the circumstances the relief prayed with respect to this situation will be denied.

In the third class of cases applicants ask for authority to continue and to maintain over routes operating in part south of the Ohio River, from Ohio River crossings, Cairo to Cincinnati, inclusive, to points in central territory, rates the same as those applicable between the same points over routes operating wholly within central territory and to maintain higher rates from intermediate points south of the Ohio River. The rate from Paducah, Ky., to Detroit, Mich., is representative. The present rate of 26.5 cents over routes which cross the Ohio River at Paducah and operate thence through official territory is also applicable over the route of the Illinois Central Railroad Company through Parker, Ill., the Cleveland, Cincinnati, Chicago & St. Louis Railway Company to Danville, Ill., and thence Wabash Railway Company. The line of the Illinois Central from Paducah passes through Mercer and other points in Kentucky from which the rates are higher than from Paducah, the rate from Mercer being 34 cents. The routes over which this relief is prayed are generally circuitous. As stated above, however, the relief prayed is not based upon that circumstance but upon the difference in the conditions existing in the territory south of the Ohio River through which they operate in meeting the rates of the carriers operating wholly or for the most part through territory north of the river. We have frequently held that conditions in the territory south of the river warrant a higher level of rates than that which generally prevails in the

territory north of the river, and in numerous instances because of these conditions have granted routes operating through southern territory relief to meet rates of routes operating through the territory north of the river, Rates from, to, and between Points in Southern Territory, 191 I.C.C. 507. Over applicant's routes which are within the circuity limitations hereinafter provided the rates which they desire to continue are reasonably compensatory and the higher rates which they propose to maintain at intermediate points compare favorably with rates for hauls of similar distances under like circumstances. Applicants, therefore, will be granted relief to continue rates between the points referred to, over routes operating in part south of the Ohio River the same as those contemporaneously in effect from and to the same points over routes operating wholly north of the Ohio River, but not lower than the present rates of the latter routes, and to maintain higher rates from intermediate points. south of Ohio River, provided, that the present rates from such intermediate points shall not be increased except where such increases may be necessary to comply with the provisions of section 4, or the conditions prescribed in this report.

The rates included in the fourth general class of cases are those applicable over short-and-weak-line carriers in southern territory which have been granted relief in other proceedings to enable them to meet the rates of the standard lines from competitive points and to maintain higher rates from intermediate local stations on their lines. Relief similar to that prayed herein has been granted those carriers shown in appendix C with respect to class rates in Rates from, to, and between Points in Southern Territory, 191 I.C.C. 507, and in respect to rates on lumber and lumber articles between points in southern territory in Lumber in the South, 196 I.C.C. 255. In the latter proceeding the short-and-weak-line carriers parties thereto which were granted relief with respect to class rates on account of their financial condition were authorized to maintain rates between points in southern territory the same as those contemporaneously in effect from and to the same points over competing lines, and to maintain higher rates from and to intermediate local stations on their lines. That relief does not apply to rates over any route in connection with a short-and-weak line unless relief was also granted with respect to corresponding rates over its standardline connection over corresponding routes to and from the junction point at which the traffic is interchanged. The higher rates from and to intermediate local stations on such short-and-weak-line carriers may not exceed by more than 3.5 cents the rate from or to the next more distant junction point between the said short-and-weak-line carrier and its standard-line connection. Similar relief will be

granted herein subject to the further condition that the present higher rates from intermediate local stations on the short-and-weakline carriers shall not be increased except as may be necessary to conform to the conditions prescribed herein.

In the fifth class of departures the N., C. & St. L., which for the most part is located in the State of Tennessee, asks special relief with respect to rates on lumber and articles taking lumber rates from stations on its line, on the ground that conditions in the territory in which it operates are different from those prevailing on the lines of other carriers in southern territory. Evidence was presented by it with respect to fourth-section departures in rates from stations on its lines, not only to points in central territory but also to the Ohio River crossings and Memphis, Tenn. The location of this railroad is fully described in Crow Lbr. Co. v. Louisville & N. R. Co., 169 I.C.C. 576, and will not be repeated here. As stated in that report, of the 1,223 miles of this system 906.5 miles, or 75 percent, are in Tennessee, and the other 25 percent, or 316.5 miles, in Kentucky, Georgia, and Alabama. For the most part it is an eastand-west line and is intersected by north-and-south lines which in most cases form the short routes from the points of intersection and adjacent territory to the Ohio River crossings and central territory. The N., C. & St. L. has one branch leading directly north from Bruceton, Tenn., to Paducah, Ky., on the Ohio River and to that crossing and the territory in the vicinity thereof it forms the short route from most of the points reached by its line. Relief is prayed to continue rates from junction points with other lines, principally north-and-south lines, the same as those in effect over such other lines from the same points, and to maintain higher rates from intermediate local stations.

The principal production of lumber in the territory served by the N., C. & St. L. is of the hardwood variety. Applicant's rates on these products are not grouped as are the rates on lumber from the yellowpine belt and its witness stated that it had not found it necessary to make group rates from points on its line. The basis used was to apply from the junction points rates the same as those of competing lines, and to build the rates from local stations over the rates from the junctions. This has resulted in lower rates from the junction points, with ascending rates on either side thereof. For example, from Chattanooga, Tenn., to St. Louis, Mo., the present rate on lumber is 29 cents. The rates from intermediate points to, but not including, Bridgeport, Ala., 29 miles west of Chattanooga, ascend to 33 cents. From Bridgeport the rate is 32.5 cents, from Bolivar, Ala., the next station, 34 cents, from Stevenson, Ala., the next station, 30 cents. From intermediate points west thereof the rates ascend again

to 33 cents, and after reaching that figure grade downward to 29 cents at Christiana, Tenn., 129 miles west of Chattanooga. It is obvious that under this method of construction many departures occur in the adjustment of rates from stations on the line of this carrier.

In defense of this situation the applicant laid considerable stress upon the fact that the hardwood lumber produced at points on its line is of greater value than yellow pine and other soft-wood lumbers produced in the yellow-pine belt, which is served by its principal competitors. It is urged that the rates maintained by those lines on the latter grades of lumber has influenced their rates from the territory in which the principal production is hardwood lumber. It is also contended that the higher rates established from its local stations have been reviewed and approved by this Commission in Crow Lbr. Co. v. Louisville & N. R. Co., supra and cases there cited, that those rates are reasonable, and that it should not be required to reduce them to the level of the lower rates which it has been compelled to establish from junction points to meet the competition of rival lines. The applicant also urged that it is entitled to special relief on account of the difficult operating conditions prevailing on its lines. A very large percentage of the total mileage of this company consists of branch lines, and many of these branch lines operate through mountainous sections of Tennessee. The fourth-section departures in the rates of this applicant occur on its main line. There is no evidence that the conditions of operation on its main line are different from those on competing lines. In some cases the applicant's line is, or forms a substantial part of, the short route from the competing points to important destinations. For example, it is the short route from Chattanooga to Paducah and also forms a part of the short route from Chattanooga to Chicago and St. Louis. In support of the contention that it is entitled to a greater measure of relief than other standard-line carriers in the South, reference is made to Fourth Section Applications 542 et seq., 25 I.C.C. 50, dealing with numerous applications, including one of its own, in which the statement was made that the situation presented by the application of the Nashville Chattanooga & St. Louis is largely peculiar to itself and should be considered separately. However, that proceeding was decided more than 20 years ago. The situation of this carrier is now presented for consideration in the light of present conditions, and there is nothing of record herein which justifies the conclusion that conditions on the main line of this company, on which are located the intermediate points from which it is proposed to maintain higher rates than from more distant points, are different from those on the lines of competing carriers in the same territory. As already pointed out, in some cases the applicant's line forms the short route from the competitive

points to the destination territory and to that extent has an advantage over its competitors.

The applicant further contends that the rates from the intermediate points were found to be reasonable in Crow Lbr. Co. v. Louisville & N. R. Co., supra. That case was a complaint in which it was alleged, among other things, that the rates charged for the transportation of lumber and articles taking the same rates from Nashville and various other points on the N. C. & St. L. to Ohio and Mississippi River crossings and various points in central territory were unreasonable, unduly prejudicial and preferential, and in violation of the long-and-short-haul clause of section 4. The evidence did not support these allegations and the complaint was dismissed. In the instant proceeding the burden is upon the applicant to show that the rates from the competitive points are depressed rates not subject to its control but made to meet the competition of other routes, and that the higher rates which it is proposed to maintain from intermediate points are not unreasonable. The evidence is not convincing that in all instances the lower rates from more distant points are depressed and not subject to the applicant's control. For example, in the case of rates to St. Louis, Mo., referred to above, the applicant has the direct route. From Chattanooga to Paducah the entire haul is over its route, and it is considerably shorter than any other route. The record does not show that these rates were established to meet the competition of competing lines, and there is as much reason for assuming that they were made by the latter lines to meet the competition of the N. C. & St. L. as there is for assuming that they were made by the latter to meet the competition of the longer lines. It was further contended in justification of rates from junction points to Paducah lower than rates from intermediate points that the Paducah rates had been made with relation to rates made by competing lines from the territory of origin to Cincinnati, Ohio, for the purpose of equalizing the routes. through Paducah with those through Cincinnati on traffic to central territory. The establishment of proportional rates for the purpose of equalizing routes through various gateways has been recognized under some circumstances as a ground for fourth-section relief. However, the rates here under consideration are the local rates to Paducah and not proportional rates. Furthermore, they could have no application as proportional rates as joint through rates are now in effect from the points of origin over routes through that gateway to points in central territory. We are not satisfied that there is any justification for relief to maintain higher rates from points on the N. C. & St. L. than from more distant points