presented at the hearings. The Chamber of Commerce of Rapid City, which is almost as large as all of the other towns combined, actually supported the discontinuance. In view of all the evidence, and since adequate alternative service is available for the transportation of passengers, mail, and express, continued operation of the trains would clearly constitute an unnecessary and uneconomic service and would unduly burden interstate commerce. Although a few persons may be inconvenienced by the discontinuance of the trains, there would be no deprivation of passenger service to the vast majority of the traveling public. We conclude that the cost to the carrier of operating the trains would greatly exceed the revenues to be derived therefrom. The savings to be realized by the discontinuance will outweigh the minor inconvenience to which the public may be subjected, and such savings will enable the carrier more efficiently to provide those transportation services which remain in substantial demand. The evidence does not indicate that there would be any substantial increase in the use of these trains by the traveling public in the future, or that there are any feasible steps which would stem the downward trend of continuing operating losses sustained from the operation thereof. At the hearings employees of the carrier whose jobs may be adversely affected as a direct or indirect consequence of the proposal herein requested that appropriate employee-protective conditions be imposed upon the carrier in the event the trains are discontinued. In Great Northern Ry. Co. Discontinuance of Service, 307 I.C.C. 59, the Commission found that it had no jurisdiction to impose protective conditions for carrier employees in a proceeding under section 13a(1), but it recognized that the probable effect which a discontinuance of service would have upon employees was a matter to be considered in determining public convenience and necessity for such service. We have considered this factor in the instant proceeding and, in our opinion, the probable adverse effect upon the carrier's employees, when considered with other factors previously discussed, does not justify the findings which we are required to make before we may order continuance of the trains involved herein. We find that the present and future public convenience and necessity permit discontinuance by the Chicago and North Western Railway Company of passenger trains Nos. 518 and 519 between Mankato, Minn., and Rapid City, S. Dak., and that the continued operation of such service will constitute an unjust and undue burden upon the interstate operations of that carrier and upon interstate commerce. An appropriate order will be entered discontinuing the investigation. 737-292-64- -22 APPENDIX A Population of communities served by trains Nos. 518 and 519 operating between Mankato, Minn., and Rapid City, 8. Dak. Community: New Ulm, Minn.... Wolsey, S. Dak_. Wessington, S. Dak__. St. Lawrence, S. Dak--- Miller, S. Dak.... Ree Heights, S. Dak___. Van Metre,'1 S. Dak.. Population 22, 000 9,348 3,278 2, 574 3, 020 863 10, 493 1,096 1, 180 14, 077 391 467 261 2,069 254 1, 020 263 423 10, 100 8 10 39 387 40 1, 103 102 214 556 144 60 268 42, 131 Source: Rand McNally Commercial Atlas and Marketing Guide, 91st Edition 1960, as supplemented by preliminary 1960, census figures given at the hearing. 312 I.C.C. APPENDIX B Revenue passengers handled per day on trains Nos. 518 and 519 in 1959 NOTE: Passengers entraining at Mankato include passengers entraining at points prior to Mankato, and passengers detraining at Mankato include passengers detraining at points beyond Mankato. 1 Conditional stop. 312 I.C.C. FINANCE DOCKET No. 20743 CHICAGO, ROCK ISLAND & PACIFIC RAILROAD COMPANY DISCONTINUANCE OF SERVICE BETWEEN KANSAS CITY, MO., AND FORT WORTH, TEX. Decided November 28, 1960 Upon reconsideration, findings in the prior report, 307 I.C.C. 655, decided December 29, 1959, that operation of passenger trains Nos. 509 and 510 between Kansas City, Mo., and Fort Worth, Tex., is required by the public convenience and necessity and that the continued operation thereof will not unduly burden interstate commerce, affirmed. Additional appearances: Eaton Adams and Martin L. Cassell for an interested party. REPORT OF THE COMMISSION ON RECONSIDERATION DIVISION 4, COMMISSIONERS TUGGLE, HUTCHINSON, AND WALRATH BY DIVISION 4: In the prior report in this proceeding, 307 I.C.C. 655, acting upon a notice and supporting statement filed on July 30, 1959, pursuant to section 13a (1) of the Interstate Commerce Act, it was found that the continuance of operation by the Chicago, Rock Island and Pacific Railroad Company of passenger trains Nos. 509 and 510 between Kansas City, Mo., and Fort Worth, Tex., is required by public convenience and necessity and will not unduly burden interstate or foreign commerce. The service was ordered continued for a period not in excess of 1 year from the date of the report, and the investigation was discontinued. Upon petition of the carrier the proceeding was reopened for reconsideration on the present record by our order dated June 29, 1960. In considering the carrier's financial data regarding the operation of trains Nos. 509 and 510 for the years 1957, 1958, and the first 4 months of 1959, which indicated net losses in the operation of $76,649, $86,762, and $77,514 for the respective periods, recognition was given to the fact that there was not reflected in the computation of such losses either the recent increase in mail revenues authorized in Docket No. 33007, Increased Mail Pay Western Railroads, 1959, 306 I.C.C. 719, effective July 1, 1959, or the reduction in expenses and revenues that would occur by reason of a discontinuance in April 1959 of dining car service on the trains. In order to determine what effect such changes might have upon the future financial results of operation of the trains, the carrier's computations were adjusted to include the increased mail revenues and to eliminate the dining car revenues and expenses. Adjusted in this manner, the financial results disclosed that the loss sustained in 1957 would have been converted into a profit of $19,461, and the loss in 1958 into a profit of $520. Similar adjustments were not made for the first 4-month period of 1959 as it was conceded that period was not representative of passenger travel. While we are of the opinion that it is appropriate and proper to consider the changes described, we also believe that, as contended by petitioner, corresponding adjustments should have been made to reflect increased wage costs. For example, wages for train enginemen (item 392) and wages for trainmen (item 401) are reported for the first 4 months of 1959 as $47,457 and $41,787, respectively, and upon projection to a full 12-month period would amount to $142,371 and $125,361, respectively, or increases of $46,135 and $11,349 over wages as shown for the respective years 1957 and 1958. Should the financial results of operation as adjusted in our prior report, and before elimination of joint-facility expenses referred to hereinafter, be further adjusted to give effect to the increase in wages as determined above, these profits would be converted into losses of $26,674 and $10,829 for the respective years. As indicated herein before, another item in the carrier's financial exhibits which needs some clarification and elaboration as to our conclusions thereon is the expense of $127,223 in 1957 and $116,544 in 1958 charged to the operation of the trains in question for use of joint terminal facilities at Kansas City. In previous proceedings of this nature doubt has been expressed as to whether charges for such joint terminal expenditures represent savings. It has been pointed out that the effect of discontinuance of trains by the particular carrier to the extent savings were made would merely shift that expense to the other trains using the terminal and, accordingly, the total burden upon interstate and foreign commerce would not be materially lessened. See Finance Docket No. 20779, Texas & N. O. R. Co. Discontinuance of Service, 307 I.C.C. 725, and other cases cited therein. Although our prior report states that a similar conclusion is warranted in this proceeding, no mention was made as to the effect this conclusion has upon the financial results of operation of the trains. If the amounts charged to the operation for use of the joint facility were eliminated from the out-of-pocket expenses for 1957 and 1958, the losses for those years resulting from the increase in wages would be absorbed, and profits of $100,549 and $105,715 for the respective years would be shown. |