and that 12 of the girls living at Bartlesville, Okla., ride the trains between Nowata and Paola on an average of at least once a month. There is no bus service at Paola from the south, and the bus transportation between Paola and Kansas City is very poor. A consolidated public school at Vian has an enrollment of 874 pupils. Each spring for the past 3 years, the children of the primary grade were taken for a train ride to Claremore or Fort Smith where the schoolbus met them for the return trip to Vian. The superintendent of the school is planning a similar trip this year. The witness deplored the possible loss of the last remaining passenger service at Vian, and particularly emphasized the superior safety factor of rail as compared to highway travel. A publisher of newspapers at Sallisaw, Clarkesville, and Claremore uses the trains for rapid mail service and express shipments. The witness, in anticipation of the trains' discontinuance, and the absence of a suitable substitution therefor, already has canceled a contract which called for engraving service at points along the line. And an owner of three automobiles, who is engaged in the production of oil, and is a dealer in oil well supplies makes personal use of trains 125 and 126 between Osawatomie and Nowata, and for mail and express service between Osawatomie, Coffeyville, and Nowata. If the trains are discontinued, Osawatomie no longer will have any passenger service available to the witness in the transaction of his business. The protestants urge that in deciding whether losses would be incurred in the future and whether operation should be continued, we should consider the following: That if the increase in passenger revenues for the first 7 months of 1959 were projected for the entire year, there would be an increase in passenger revenues for that year over 1958, of approximately $5,000; that if a 5-percent increase in mail rates authorized by the Commission as of July 1959 were applied to the mail traffic handled in 1958, there would have been an increase in revenues of approximately $16,330; and that an increase in express rates recently has been authorized by this Commission, which they assert amounted to approximately 12 percent. The protestants also point out that the trains have some feeder value since testimony of the carrier indicates that in June 1959, for example, there were 265 tickets sold on train 125 to points beyond Little Rock, 34 tickets sold on train 126 beyond Kansas City, and 160 tickets sold on train 126 to points beyond Osawatomie. The carrier did not furnish the amount of contributed revenue for the record but expressed the view that passengers would use other services to reach its main line terminals and little loss in traffic from these trains would be experienced. Such contributed revenue as may be lost they feel sure would be insignificant, but the protestants are of a contrary view. Protestants contend that some of the expenses allocated by the applicant are excessive, but challenge only those shown for locomotive repairs, passenger-car repairs, train supplies and expenses, and payroll taxes. An employee of The Atchison, Topeka and Santa Fe Railway Company testified that in a train discontinuance proceeding by that carrier now pending before us, locomotive repairs are computed on an average cost of approximately 10 cents per mile, and passenger car expenses at about 4 cents per mile. The witness did not explain how such figures were determined, and in the absence of pertinent information with respect thereto we would not be warranted in accepting them in lieu of those furnished by the applicant. Protestants also object to the train supplies and expenses and payroll taxes primarily on the ground that they are system allocations rather than actual expenditures. The record shows that it would have been impractical and too burdensome on the applicant to show actual expenses for these two classifications because the employees used to perform the services in connection therewith were also engaged in performing work other than on trains 125 and 126. On brief, the protestants submitted a statement showing the financial results of operation on trains 125 and 126 during the years 1957-58, and the first 10 months of 1959, based upon the situation as it would exist in the future, with additional mail and express revenues resulting from increases authorized in 1959, and by decreasing the locomotive repair and passenger car repair expenses to conform with those experienced on the Santa Fe, and also eliminating the terminal costs and passenger car repairs attributable to the extra coach operated on trains 125 and 126 on weekends, since that coach operation has been discontinued. On those bases, the protestants determined that trains 125 and 126 operated at a profit of $2,151 in 1957, and losses of $28,600 and $7,921 for 1958 and the first 10 months of 1959, respectively. Except for the expense of terminal facilities. and tracks at Kansas City discussed heretofore, we are of the opinion that all of the expenses of operating trains 125 and 126 shown by the applicant were determined on reasonable bases. Protestants, particularly those living in the smaller communities along the line, expressed concern as to the effect discontinuance of the trains would have on mail deliveries and express shipments. The handling of mail is the primary responsibility of the U.S. Post Office Department, and the record shows that the department is prepared to provide adequate postal service, through the use of other transportation media, at the post offices now served by trains 125 and 126 in the event those trains are discontinued. A similar situation exists with respect to express shipments, which will continue to be the responsibility of the Railway Express Agency, Inc. The agency, in performing its duty, uses all forms of transportation. The traffic manager of the agency has advised the carrier that if the trains herein involved are discontinued, the agency will provide adequate replacement service at all stations along the line. Although the carrier's systemwide operations are profitable,2 this factor is not of controlling importance in a proceeding of this nature. However, it is a factor which we may consider. As the Commission stated in New York Central R. Co. Abandonment, 254 I.C.C. 745, involving an application under section 1(18) of the act, losses from a branch operation “are inevitably a burden on interstate commerce, whether at the particular time the system as a whole is profitable or unprofitable." This statement applies with equal force to a proceeding involving the discontinuance of train service under section 13a (1). We must determine whether, under the circumstances, the burden is undue. Even the recomputation of applicant's statements by the protestants to include certain factors which they believe should have been given consideration, indicates that the trains are being operated at a loss. In view of the slight use made of the trains in question, we doubt that they fill a substantial public need in the territory through which they run insofar as passenger transportation is concerned. Few persons ride such trains regularly. It is conceded that the mail and express traffic handled is important to the communities served. However, other means of transportation will be used to provide adequate service for this traffic. That being true, the applicant hardly can be expected to continue operations at a great loss in order to provide standby service for students traveling to and from school, or for the occasional use of funeral directors to transport the remains of deceased individuals which have to be moved to or from distant places for burial. They still can be moved at some increase in expense. We also recognize that certain communities will be deprived entirely of common-carrier transportation service, but it is apparent that they have little need for these trains since they do not use them. It is apparent that they depend almost wholly on private automobiles. Under all the circumstances, we conclude that the continued operation of the trains is not required by the public convenience and necessity, and that such operation would constitute an undue burden on interstate commerce. 2 Annual report to this Commission for 1958 shows net income after fixed charges of $41,412, 701. Representatives of railway labor organizations request that, in the event we do not order operations of the trains continued, conditions for the protection of such employees be imposed similar to those contained in Chicago, B. & Q. R. Co. Abandonment, 257 I.C.C. 700. In Great Northern Ry. Co. Discontinuance of Service, 307 I.C.C. 59, we found that we were not empowered by the provisions of section 13a (1) to impose conditions in a proceeding thereunder for the protection of employees who may be adversely affected by a discontinuance of service. That decision recognized, however, that in determining whether an operation involved in such proceeding is required by the public convenience and necessity, consideration should be given to the probable effect which the discontinuance of service would have upon the employees. In the instant case the evidence shows that effective January 15, 1960, applicant was to inaugurate a new fast freight train schedule in conjunction with the Kansas, Oklahoma & Gulf Railway Company and the Texas and Pacific Railway Company between Kansas City and points in Texas. This service by the applicant will require the operation of a train in each direction daily, 7 days a week, with a regular assignment of five standard crews. We are of the opinion that the record in this proceeding does not justify the findings which we are required to make before we may order continuance of the operations under consideration. We find that continuance of operation by the Missouri Pacific Railroad Company of passenger trains Nos. 125 and 126 between Kansas City, Mo., and Little Rock, Ark., is not required by the public convenience and necessity, and the continued operation thereof will constitute an undue burden upon interstate commerce. An appropriate order will be entered discontinuing the investigation herein. 312 I.C.C. APPENDIX A Schedule train No. 125 operating between Kansas City, Mo., and Little Rock, Ark. s 4:47 p.m. 927 s 4:58 p.m. 2,885 s 5:11 p.m. Lv. Vian, Okla. Lv. Hartman, Ark. Lv. Clarksville, Ark. Lv. Russellville, Ark.. |