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Cement moves in considerable volume by water from St. Louis and Hannibal to Memphis and New Orleans. Little cement moves by water from Cape Girardeau. Complainant has the only cement mill at Cape Girardeau, and admittedly ships by water only occasionally. The water rate from Cape Girardeau is said to be 8 cents, and the cost of loading coment into boats at that point is considerable. For these reasons defendants operating along the east bank of the Mississippi River refuse to meet the Frisco's 7-cent rate from Cape Girardeau to Memphis through Bridge Junction, and apply the 9-cent rate applicable from St. Louis. We think they do so properly. The same considerations do not apply, however, to the rates to the interior points involved, as the rates from St. Louis to such points do not appear to be unduly low. The rates from St. Louis to the interior points named in the table above average 14.562 cents for an average haul of 246 miles, yielding an average of 11.8 mills per ton-mile, as compared with 9.8 mills earned by the 17-cent rate from St. Louis to Little Rock, 345 miles, and to points north of Little Rock, attributed to both railroad and water competition, 5.9 mills by the 9-cent rate to Memphis, 8.5 mills by the 6.5-cent rate from St. Louis to Cairo, and 6.2 mills by the 8-cent rate from Des Moines, Iowa, to St. Paul, Minn., 257 miles, prescribed in Cement Rates from Points in Minois, 32 I. C. C., 369. The average ton-mile earnings of the Illinois Central's whole system for the year ended June 30, 1914, were 5.63 mills for an average haul of 241 miles; the average earnings of the Mobile & Ohio, 6.7 mills for an average haul of 225 miles. The rates from Cairo and Memphis are virtually proportional rates, as no cement is produced at either point, and apparently fully compensate for the rates applicable to Cairo and Memphis. The negligible water movement of cement from Cape Girardeau relatively to the water movement from St. Louis, therefore, is immaterial to the rate adjustment between Cape Girardeau and St. Louis to the interior points involved. Since the advantage in distance which St. Louis has over Hannibal is recognized in lower rates from St. Louis to the points involved than from Hannibal, Cape Girardeau is entitled to lower rates than St. Louis unless the transportation conditions are different or other countervailing conditions exist.

The principal mills at St. Louis are located at Prospect Hill and Continental, within the switching limits of St. Louis. Prospect Hill is served by the Burlington; Continental by the Missouri Pacific-Iron Mountain system and the Frisco. Cement traffic from Continental usually is moved by the Iron Mountain to Carondelet, ferried across to East Carondelet, and delivered to the Illinois Central or the Mobile & Ohio at East Carondelet or Cairo. Traffic from Prospect Hill is switched by the Burlington to the rails of either of the terminal railways operating at St. Louis or to the rails of the Iron Mountain. The terminal railways move it to and across either the Eads bridge or the Merchants bridge, about 10 miles and 14 miles to East St. Louis, where it is delivered to the Mobile & Ohio, the Illinois Central, or the Louisville & Nashville. The Iron Mountain moves it to its car ferry at Carondelet, ferries it across the river to East Carondelet, and delivers it to the Illinois Central or the Mobile & Ohio at East Carondelet or Cairo. The Burlington imposes a switching charge of $3.50 per car, about one-half cent per 100 pounds for loads of 60,000 pounds per car. The terminal railways impose a

. bridge arbitrary of 14 cents per 100 pounds. The Mobile & Ohio and the Illinois Central and Louisville & Nashville absorb the bridge charge imposed because shipments moving over the Iron Mountain, their competitor, do not have to pay a similar charge. The Burlington's switching charge also is absorbed, except by the Louisville & Nashville, on noncompetitive traffic. The 3 cents retained by the Mobile & Ohio and the Illinois Central out of the 5-cent differential St. Louis over Cairo on traffic to points beyond Cairo on their own lines earns 3.9 mills per ton-mile for the haul of 152 miles from East St. Louis to Cairo; the total differential which they would retain but for the compulsory absorptions described, 6.5 mills. The 5-cent rate

5 from Cape Girardeau to Cairo, Illinois Central from Olive Branch to Cairo, divides 2 cents to the lines to Thebes, 3 cents to the lines south of Thebes. The 3 cents received by the lines south of Thebes divides 1.5 cents to the Chicago & Eastern Illinois for the haul from Thebes to Olive Branch, 1.5 cents to the Illinois Central for the haul from Olive Branch to Cairo. The 1.5 cents received by the Chicago & Eastern Illinois is added to the 2 cents received by the Frisco and the Chicago & Eastern Illinois for the haul to Thebes and the sum divided 1.75 cents to the Frisco, 1.75 cents to the Chicago & Eastern Illinois. Where the Iron Mountain receives the haul into Cairo the rate divides arbitrarily 2 cents to the Frisco and Chicago & Eastern Illinois to Thebes, subdivided 1.25 cents to each road, 2} cents to the Iron Mountain. Traffic consigned to points beyond Cairo received by the Illinois Central at Olive Branch requires no local terminal service at Cairo and may be handled precisely as traffic from St. Louis is handled. The divisions described evidently represent an allowance of 2 cents for the haul from Cape Girardeau to Thebes and an allowance of one-half cent for switching at Thebes or Olive Branch. If one-half cent also is allowed for switching at Chaffee yard, the linehaul charges, including bridge service, are 14 cents from Cape Girardeau to Thebes, 28 miles; 24 cents from Cape Girardeau to Olive Branch, 37 miles. The 13-cent bridge arbitrary imposed at St. Louis covers hauls, including bridge service, of 10 miles and 14 miles, and switching at East St. Louis. Defendants therefore evidently consider the service from Cape Girardeau to Thebes worth only one-half cent more than the service from Prospect Hill to East St. Louis if one-half cent is deducted from the 14-cent bridge charge imposed at St. Louis for switching at East St. Louis. The Illinois Central's haul from Olive Branch to Cairo earns relatively more per ton-mile, 1.66 cents, than its haul from East St. Louis. The Frisco and Chicago & Eastern Illinois apply a rate of 5 cents from Cape Girardeau to points on the Chicago & Eastern Illinois in southern Illinois as far north as Mount Vernon, 130 miles from Cape Girardeau. The rate from St. Louis to Mount Vernon, 79 miles, is 5.5 cents. The Thebes bridge is owned by the Southern Illinois and Missouri Bridge Company, whose capital stock is owned in equal shares by the Illinois Central, the Chicago & Eastern Illinois, the Cotton Belt, the Missouri Pacific, and the Iron Mountain, which use the bridge. The tenant companies contributed equally to the cost of the bridge in excess of the funds realized from its securities and defray its annual operating expenses, taxes, and interest charges in proportion to the amount of business contributed by each company. The total average amount per car contributed for the year ended June 30, 1914, was 39.728 cents for 487,186 cars of all kinds, passenger and freight, loaded and empty. On this basis a bridge arbitrary of 1 cent per 100 pounds per loaded car of cement is ample. A bridge arbitrary of 1 cent and switching charges of one-half cent per 100 pounds for switching at Chaffee yard and at Thebes or Olive Branch leaves 3 cents per 100 pounds for a direct line haul of 51 miles, or 1.17 cents per ton-mile, as compared with 6.5 mills per ton-mile earned by the 5-cent differential applicable from St. Louis to Cairo on traffic for beyond. The conditions described do not warrant the discrepancy.

All points on the Mobile & Ohio and the Illinois Central between St. Louis and Cairo are said to be grouped with St. Louis for all traffic to Mississippi Valley points south of Cairo. Cape Girardeau, although on the west bank of the river, formerly was accorded the same rates as east bank points opposite, because the Illinois Central had its own car ferry between Cape Girardeau and East Cape Girardeau or Gale, Ill., and the use of the Cape Girardeau terminals of a carrier since absorbed by the Frisco. When the Frisco acquired the terminals used the Illinois Central discontinued its car ferry, but participated in a 5-cent joint all-rail rate on cement from Cape Girardeau to Cairo to give complainant St. Louis rates on cement to the territory involved and to maintain for cement the grouping formerly maintained for all traffic. It is unnecessary to consider this adjustment in detail. It suffices to say that there are no cement mills in Illinois between St. Louis and Cairo and that the St. Louis-Cape Girardeau adjustment must be considered on its own merits.

Lower rates from Cape Girardeau than from St. Louis would give Cape Girardeau lower rates than Kosmosdale to most of the points involved, taking Louisville rates from Kosmosdale if Kosmosdale is to have the same rates as St. Louis. Cape Girardeau probably is not entitled to lower rates than Kosmosdale. The distances involved from Cape Girardeau to the interior destination points named above as typical average 138 miles less than the distances from Kosmosdale, but the hauls from Kosmosdale are only one and two line hauls over no bridges at all comparable to the bridges at Thebes and Cairo. No peculiar sanctity attaches, however, to the rate parity maintained for cement between St. Louis and Louisville. Where water competition, actual or potential, depresses and equalizes the rates from St. Louis and Louisville, equal rates from both points may be proper. Paducah and Memphis may be such points of destination, although we believe commercial competition more responsible for the 7-cent rate from St. Louis and Louisville to Paducah. The rates to Cairo are 6.5 cents from St. Louis, 14.7 cents from Louisville. The traffic from St. Louis must cross the Mississippi River, the traffic from Louisville the Ohio River. Evidently little cement moves by water to Cairo. Most of the rates to the interior points involved from St. Louis make over Cairo and, as stated before, are not unduly low. The average distance from St. Louis to the interior points involved is only 40 miles less than the average distance from Kosmosdale, but two bridges or two car ferries are involved from St. Louis; none from Kosmosdale.

The average distance from Cape Girardeau to the same points is 123 miles less than the average distance from Richard City. No expensive bridges are crossed from Richard City but mountain ranges are crossed. The ton-mile earnings from Richard City to 22 points on the Nashville, Chattanooga & St. Louis, the originating line, west of the Tennessee River, named in one of defendants' exhibits, average 1.19 cents for an average haul of 266.5 miles. The ton-mile earnings from Cape Girardeau to the same points average 2.03 cents for an average haul of 167 miles; the ton-mile earnings from Kosmosdale, 1.13 cents for an average haul of 287 miles; the ton-mile earnings from St. Louis, 1.30 cents for an average haul of 265 miles. In Cement Rates from Points in Mlinois, supra, we refused to allow an increase in the carload rate on cement from Des Moines, Iowa, to St. Paul, Minn., 257 miles, from 7 cents to 9 cents. We authorized an increase from 7 cents to 8 cents. The 8-cent rate authorized yields 6.2 mills per ton-mile. In our opinion the St. Louis-Louisville adjustment is not a bar to lower rates to the points involved from Cape Girardeau than from St. Louis.

We find that the rates assailed from Cape Girardeau unjustly discriminate against Cape Girardeau in favor of St. Louis. Just rates for the future should not exceed rates 2 cents per 100 pounds lower than the rates contemporaneously in effect from St. Louis to the same points except to Memphis and Paducah, to which points the same rates may be applied through southern Illinois from Cape Girardeau and St. Louis. The present adjustment to Memphis through Bridge Junction, Ark., appears proper.

SUB-NO. 2. SOUTHERN ILLINOIS.

Cement traffic from Cape Girardeau to points in this territory is moved by the Frisco south to Chaffee yard; by the Chicago & Eastern Illinois from Chaffee yard across the Thebes bridge to Thebes, Olive Branch, Tamms, Karnak, West Vienna, Marion, Mount Vernon, or Salem, Ill.; by the Iron Mountain from Thebes; the Illinois Central from Olive Branch and Marion; the Mobile & Ohio from Tamms; the Cleveland, Cincinnati, Chicago & St. Louis, hereinafter called the Big Four, from Karnak; the Burlington from West Vienna; the Southern, the Louisville & Nashville, not a party defendant, and the Wabash, Chester & Western from Mount Vernon; and by the Baltimore & Ohio Southwestern and Illinois Southern from Salem. The rates maintained are combination rates based on the junctions named, 5 cents to all junctions except Salem, 51 cents to Salem, plus the local rates of the several delivering carriers beyond. St. Louis, Hannibal,

, La Salle, and Mitchell have joint rates materially lower than the rates from Cape Girardeau, although combination rates obtain to a few points on the Mobile & Ohio. Typical points with rates and shortline distances are as follows:

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Fort Gage:

Iron Mountain

I. S.
Alto Pass: M. &0.
Carbondale: I.C..
Wayne City: Southern..
Ledford: C., C., C. & St. L..
Centralia:

C., B. & Q..
I.C.
Southern..

I.S.
Murphysboro:

fron Mountain I.C.

M. &0.
Mount Vernon:

C. & E.I...
L. & N.
Southern.

W., C. & W
Herrin:

Iron Mountain.
I.C.

C., B. & Q.
Eldorado:

I.C.
L.&N.

C., C., C. & St. L..
Sparta:

M. &0..

I. S.
Cairo:

Iron Mountain.
I. C.
M. &0...
C., C., C. & St. L....

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