much as $1.30 per ton on lump coal, $1.40 per ton on the lower grades, including slack, and not less than $1.213 per ton on any grade. Since the rates from the Walsenburg and Oak Hills districts are the same to stations on the Union Pacific, Burlington, and Rock Island roads, and the divisions received by the originating lines for their hauls from both districts to Denver are substantially the same to Union Pacific and Burlington stations, the Moffat road contends that it is unreasonable for the Rock Island to demand divisions that result in lower revenues to the Moffat road than accrue to it on coal which it delivers at Denver to other carriers. The Rock Island replies that the circumstances relative to the divisions of the joint rates on coal that moves from Denver via the Union Pacific and the Burlington differ from those which obtain on coal from Denver over the Rock Island in that the Union Pacific and the Burlington receive the coal from both districts only at Denver, whereas the Rock Island receives Oak Hills coal at Denver and Walsenburg coal at Pueblo, 118 miles south of Denver. Since the coals produced in the two fields named are alike, and may replace each other, the Rock Island demands divisions out of the Oak Hills rates based on the ton-mile revenue it receives on Walsenburg coal applied to its mileage from Denver.

The Moffat road operates its own line from the Oak Hills district to Denver, where it has no direct track connections with the Rock Island, and absorbs a switching charge of 20 cents per ton for deliveries to the Rock Island. It formerly paid a similar charge for switching to the Union Pacific until a direct connection was established. The Rock Island extends eastward from Colorado Springs, crossing the Union Pacific at Limon, 79 miles distant. Formerly its route from Limon to Denver was via Colorado Springs and the Denver & Rio Grande, a haul of 154 miles. During recent years it has used the rails of the Union Pacific from Limon direct to Denver, 89 miles. The Rock Island, however, not only pays wheelage to the Union Pacific for the actual use of its tracks but also to the Denver & Rio Grande for the constructive use of its tracks between Denver and Colorado Springs, 75 miles, on all Denver traffic that it handles. Rock Island Railway v. Rio Grande Railroad, 143 U. S., 596. The Rock Island enters Pueblo over the rails of the Denver & Rio Grande, paying wheelage charges for the 44 miles from Colorado Springs.

Coal from Walsenburg is received by the Rock Island at Pueblo after a haul of about 68 miles by the initial lines and is moved thence to Limon, 123 miles from Pueblo, 191 miles from Walsenburg. Coal from the Oak Hills district is carried by the Moffat road 197 miles to Denver, and by the Rock Island to Limon, 286 miles from Oak Hills, 95 miles more than from Walsenburg. The Rock Island's service eastward from Limon is the same whether the coals originate

at Oak Hills or Walsenburg. Coal from the Oak Hills district begins to move over the Rock Island's own rails only at Limon. On such coal the Rock Island pays wheelage from Denver to Limon, 164 miles, including constructive mileage over the Denver & Rio Grande. On coal from Walsenburg it pays wheelage for only 44 miles from Pueblo to Colorado Springs. The Rock Island urges that because it has its own rails to Colorado Springs and receives Walsenburg traffic at Pueblo it occupies a strategic position relative to the Walsenburg field, and that its position and the revenues resulting from it should be considered.

The Moffat road's local rates from Oak Hills to Denver are $1.60 per ton on lump coal, $1.40 on other kinds of coal. It has never demanded of the Rock Island more than $1.336 as its share of the joint rates on lump coal to interstate points, and now demands only $1.30 per ton, except on slack coal. In some instances the divisions demanded on slack coal are as high as the Moffat road's local rates. The divisions of the rates on lump published by the Moffat road in its I. C. C. No. 5, effective August 18, 1913, were entirely satisfactory to it. They were practically the same as the divisions now demanded, ranging from $1.336 to $1.201 per ton and averaging about $1.25 per ton. Some of the reductions effected by the present rates amounted to 43 cents per ton. The divisions demanded of the present rates therefore are relatively higher than the former divisions. The ratios of the former divisions to the rates divided, if applied to the present rates on lump coal to points as far east as the Missouri River and as far south as Dwight, Kans., would give the Moffat road from $1.21 to $1.11 per ton, or an average of $1.162 per ton, to 128 interstate points. The same basis would give the Moffat road from $1.18 to $1.03 per ton, or an average of $1.106 per ton, on run of mine and slack to such points. The average of the divisions so computed on all kinds of coal would amount to $1.134. The divisions voluntarily established by the Moffat road on coal to 54 destinations involved did not exceed $1.22 per ton. To one Colorado point the Moffat road's division was $1.154. To certain Colorado points served by the Union Pacific it was and still is $1.20. This $1.20 division specifically assumes 20 cents per ton for switching at Denver, which the Moffat road no longer pays on Union Pacific business. The $1.154 division described involved the absorption of a 20 cents per ton switching charge.

The services performed by the Moffat road from Oak Hills to Denver are the same on all grades of coal and cost no more when delivery is made to the Rock Island at Denver than when delivery formerly was made to the Union Pacific. The $1.154, $1.20, and $1.22 divisions referred to represent revenues acceptable to the Moffat

road. It accepts or is willing to accept divisions not exceeding $1.22 out of the rates to 25 out of 41 competitive points involved. The joint rates from the Oak Hills district to Rock Island stations have benefited the Moffat road more than the Rock Island, as the Rock Island obtained an ample supply of coal from the Walsenburg fields before the Oak Hills district was opened. The equalization of the rates from the Oak Hills and Walsenburg fields to Rock Island points was welcomed by the initial line but was vigorously opposed by the delivering carrier. On the other hand, we are urged to consider the mountainous character of the country through which the Moffat road runs and the switching charge which it at present absorbs in delivering coal to the Rock Island.

Upon all of the facts of record we find that the Moffat road is entitled to divisions on coal, soft, all kinds but nut, slack, and pea, of $1.18 per ton, and on coal, soft, nut, slack, and pea, of $1.12 per ton, on shipments to all destinations on the line of the Rock Island in Kansas, Nebraska, and Missouri shown in Moffat road tariff I. C. C. No. 20.

The Moffat road attempted at the hearing to broaden the scope of the proceeding to include an inquiry with respect to the divisions on run of mine and slack coal under its tariff I C. C. No. 5, but without amending its petition. The question thus raised is not properly before us and will not be considered at this time. We may suggest, however, but without prejudice to future action, that one method of dividing the rates would be to apply the percentage received by the Moffat road on lump coal to the rates on run of mine and slack coal to the same stations with the divisions to the Moffat road on lump coal as maxima.

This report deals with a particular case. It refers only to the relations between the Moffat road and the Rock Island lines on a particular commodity and is not intended for application to other commodities or to the relations of the Moffat road, the Rock Island, or both, with other roads. The divisions received by the initial lines in the Walsenburg district, on coal delivered to the Rock Island at Pueblo, while not as large as the constant divisions herein found reasonable for the Moffat road in connection with the Rock Island at Denver, yield, much higher returns per ton-mile. We have not considered them sufficiently high to measure the divisions which the Moffat road should receive for its haul from Oak Hills to Denver. The divisions and revenues herein found reasonable for the Moffat road's services in connection with the Rock Island should not be used to measure the divisions of the carriers serving the mines at Walsenburg on coal delivered to other carriers at Pueblo or at Denver, or its own in connection with other carriers. An order will be entered accordingly.

No. 4800.

SLOSS-SHEFFIELD STEEL & IRON COMPANY ET AL.

v.

LOUISVILLE & NASHVILLE

ET AL.

RAILROAD

Submitted June 21, 1915. Decided July 22, 1915.

COMPANY

On the evidence of record, following the principle of our original report in this case, 30 I. C. C., 597; Held:

1. The rates on pig iron in carloads from points in Alabama and Tennessee

to points reached by defendants' lines in central freight association territory, to which pig-iron rates were not reduced on October 1, 1914, are unreasonable. Reasonable rates prescribed for the future.

2. Divisions of such rates between the carriers operating north and those operating south of the Ohio River, prescribed.

W. A. Wimbish for complainants.

W. W. Collin, jr., and E. S. Ballard for Central Freight Association carriers.

W. C. Coleman for Baltimore & Ohio Railroad Company.

W. A. Northcutt for Louisville & Nashville Railroad Company and other southern carriers.

L. B. Boswell for Quincy Freight Bureau, intervener.

A. M. Campbell for Milwaukee Metal Trades & Founders' Association, intervener.

C. P. Hackett for United States Radiator Corperation, inter

vener.

F. B. James for American Rolling Mill Company, intervener.

SUPPLEMENTAL REPORT OF THE COMMISSION.

MCCHORD, Chairman:

The original complaint brought in issue the reasonableness of rates on pig iron in carloads from producing points in Alabama and Tennessee to Ohio River crossings and to points in central freight association, trunk line, and New England territories. Birmingham, Ala., was taken as representative of Alabama producing points, and Chattanooga, Tenn., as representative of Tennessee producing points. Louisville, Ky., was considered as typical of the Ohio River crossings

and Chicago as illustrative of central freight association territory. The same method is followed here. Rates are given per gross ton unless otherwise stated.

At the time the original complaint was filed rates were in effect from the Birmingham district of $3 to Louisville and $4.35 to Chicago. From the Chattanooga district the rates were certain differentials under the Birmingham rates. From other Alabama and Tennessee points the rates bore fixed relations to the Birmingham and Chattanooga rates.

By decision of June 1, 1914, 30 I. C. C., 597, we found that the rates attacked were unreasonable and that reasonable rates from the Birmingham district to the representative points named should not exceed $2.65 to Louisville or $4 to Chicago. To Boston, as typical of the east, a rate of $4.25, rail and water, was prescribed. We held that the then existing differentials between southern furnaces should not be disturbed, and that the relation of rates to the Ohio River crossings, to points in central freight association territory, and to the east should be maintained. An order was entered in accordance with these findings, which order became effective October 1, 1914.

The carriers operating south of the Ohio River opened negotiations with those operating north of the river, with a view to an agreement upon divisions of the through rates required to be established, but the northern carriers declined to assume any part of the reduction.

Only a few of the carriers in central freight association territory were made parties to the original complaint. In view of that fact, and of the failure to agree upon divisions of the reduced rates, the tariffs when filed under the Commission's order embraced only such points as were reached by the lines parties to the proceeding. Reduced rates to certain named eastern points were also established.

On November 3, 1914, complainants filed a supplemental com plaint alleging that the new tariffs were not in compliance with the Commission's decision and order, and asking that such further order be entered as might be required to afford full and complete relief in the premises.

In the meantime, on October 12, 1914, the carriers south of the Ohio River filed a petition asking that the Commission determine what would be just and reasonable divisions of the newly prescribed rates as between them and the carriers north of the river.

The Commission thereupon reopened the case for certain stated purposes, among which were the following:

(1) To further investigate the reasonableness of the rates to points in central freight association territory not covered by the former order though brought in issue in the original complaint.