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would be 44.5 cents per car-mile. This record does not warrant the prescription of a future rate.

It is found that the rate charged was unreasonable to the extent it exceeded $2.05; that complainant received the shipment as described and paid and bore the charges thereon; and that it was damaged thereby and is entitled to reparation in the sum of $58.71, with interest.

An order awarding reparation will be entered.

FOURTH SECTION APPLICATION No. 17867

SODA ASH FROM LAKE CHARLES, LA., TO MOBILE, ALA.

Submitted July 12, 1939. Decided November 20, 1939

Authority to establish and maintain rates on soda ash, in carloads, from Lake Charles, La., to Mobile, Ala., without observing the long-and-short-haul provision of section 4, of the Interstate Commerce Act, denied.

E. A. Rouse for applicant.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND CASKIE BY DIVISON 2:

1

By this application, as amended, The Kansas City Southern Railway Company, for itself and on behalf of the Louisiana & Arkansas Railway Company, The Texas and Pacific Railway Company, and the Louisville and Nashville Railroad Company, requests authority to establish and maintain a rate of $3 for the transportation of soda ash, in bulk or in packages, in carloads, minimum 80.000 pounds, from Lake Charles, La., to Mobile, Ala., without observing the long-and-short-haul provision of section 4 of the Inter state Commerce Act. A hearing was held. Rates, charges, and costs are stated in amounts per net ton, except as otherwise indicated. Soda ash is produced at Lake Charles by the Mathieson Alkali Works, Inc., and at Baton Rouge, La., by the Solvay Process Company, Inc. The manufacturing plants of these companies are located near deep water and have access to water transportation. Large quantities of soda ash are used in the operation of a concentrate plant of the Aluminum Company of America, located at Mobile, and the above-named manufacturers are in direct competition for this business.

1 Weighing not less than 100 pounds each.

On July 3, 1939, a rate of $3 was established for the movement of this traffic, in carloads, from Baton Rouge to Mobile, and effective July 15, 1939, the same rate was made applicable from Lake Charles to Mobile over the direct routes of the Southern Pacific Company, or the Missouri Pacific Railroad Company (Guy A. Thompson, trustee), to New Orleans, La., and the Louisville & Nashville beyond. There are no departures in the rate over these direct routes. It is stated that this rate was established from Lake Charles to meet water competition. While no actual movement by water is shown, barge lines and ocean steamers operate regularly between Lake Charles and Mobile, and the record indicates that the Mathieson Company has received quotations for movements by water ranging from $2.51 to $2.76 per net ton, which included all incidental costs and charges except marine insurance, for which the charge would be 5 cents additional.

At present the Kansas City Southern performs only a switching service with respect to this traffic at the plant of the Mathieson Company. This carrier and its connections now desire to participate in the through movement by establishing the $3 rate over their indirect routes, composed of the lines of the Kansas City Southern to Shreveport, La., the Louisiana & Arkansas or the Texas & Pacific to New Orleans, and the Louisville & Nashville beyond. No departures will occur at intermediate origins on these routes, as rates there from will be provided by an intermediate rule similar to that authorized by rule 27 of Tariff Circular 20. The proposed rate will also be observed as maximum at New Orleans and intermediate destinations east thereof. Departures will occur only at intermediate destinations in Louisiana west of New Orleans. The following examples are illustrative. The distance from Lake Charles to Mobile over the direct route is 359 miles. The distances over applicants' routes as above described are 630 and 644 miles, or 75 and 79 percent circuitous, respectively. Over these routes to Neame, La., 56 miles, the present rate of $3.20 will be maintained, while to Shrewsbury and Gretna, La., 484 and 500 miles, respectively, the present respective rates of $5.60 and $5.80 will also be maintained. These rates are on the basis of 22.5 percent of the first-class rates prescribed or approved in the southwestern revision.

The proposed rate of $3 over applicants' routes would yield respectively 4.8 and 4.7 mills per ton-mile and, based on the minimum of 80,000 pounds, 19 and 18.6 cents per car-mile. Applicants' operating expenses per ton-mile and per car-mile, respectively, for the year 1937 were 6.15 mills and 14.72 cents for the Kansas City Southern, 6.81 mills and 18.85 cents for the Louisiana & Arkansas, and 6.73 mills and 13.67 cents for the Texas & Pacific.

Applicants assert that if the relief prayed is denied or, if granted, is made subject to the equidistant provision of section 4, the maintenance of the proposed rate as maximum at intermediate destinations in Louisiana west of New Orleans would result in an unwarranted loss of revenue. For example, the present intrastate rate on this traffic from Lake Charles to Shreveport is 17 cents, equivalent to $3.40 per net ton. This rate is also applicable on interstate traffic. Under a ruling of the Louisiana Public Service Commission which requires that the lower rate, interstate or intrastate, shall apply on intrastate movements, a rate no higher than $3 would have to be applied on shipments to Shreveport. A rate of 17 cents per 100 pounds applies from Lake Charles to Monroe and West Monroe, La., and any change in the Shreveport rate would require similar reductions in the rates to the other two points. There is a movement of soda ash to the three points named, and no complaints have been filed against the present rates.

While applicants insist that the water competition herein before described creates a special case which warrants the granting of relief as prayed, the evidence establishes that the only real basis for relief is circuity. However, the distances over applicants' routes greatly exceed the limitation of 50 percent in excess of the distance over the direct route generally permitted. In these circumstances, and upon the record before us, we find that sufficient justification for the relief prayed has not been presented, and the application, as amended, will accordingly be denied.

An appropriate order will be entered.

COMMISSIONER CASKIE dissents.

235 I. C. C.

FOURTH SECTION APPLICATION No. 17796

PHOSPHATE ROCK FROM GULF PORTS TO QUINCY, ILL.

Submitted June 2, 1939. Decided November 20, 1939

1. Authority granted, on conditions, to establish and maintain all-rail rates of not less than $4.70 on imported phosphate rock, in carloads, from New Orleans, La., and other Gulf ports, to Quincy, Ill., during the season of open navigation on the upper Mississippi River, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act.

2. Authority to establish and maintain barge-rail rates of not less than $4.50 on like traffic from and to the same points, without observing the longand-short-haul provision of section 4 of the act, denied.

Joseph Hattendorf, K. C. Bogue, J. I. Bonner, Joe S. Thompson, George Jeck, Harold Scherer, and Wm. T. Boardman for applicants. W. G. Oliphant and J. G. Hartmann for the Inland Waterways Corporation.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND CASKIE By DIVISION 2:

By this application, as amended, carriers parties to Agent Joseph Hattendorf's tariffs I. C. C. Nos. 21 and 24 apply for authority to establish and maintain rates of $4.70 (all-rail) and $4.50 (barge-rail) for the transportation of imported phosphate rock, in carloads, minimum 100,000 pounds, from New Orleans, La., and other Gulf ports between Galveston, Tex., and Pensacola, Fla., both inclusive, as named in the above tariffs, to Quincy, Ill., without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. Relief was authorized temporarily by fourth-section order No. 13416. A hearing was held, and no one appeared in opposition to the relief sought. Rates, prices, costs, and other items of expense are stated in amounts per ton of 2,000 pounds.

During the latter part of 1938 the Moorman Manufacturing Company, which operates a mixed-feed plant at Quincy, imported 766.6 tons of crude phosphate rock, all of which moved by barge on the Mississippi River from New Orleans to Quincy. This movement was handled by the Union Barge Line, which operates on the Mississippi and Ohio Rivers. As the Moorman Company estimates that its requirements of imported rock for 1939 will be from 3,000 to

6,000 tons the rail lines desire to participate in the transportation. The purpose of the relief sought is to enable applicants to meet this water competition by establishing the proposed rates, previously indicated, without reducing the present higher rates at intermediate points on their routes not affected by similar competition.

This commodity weighs 94 pounds per cubic foot, requires no protection from the elements, and is hauled in open-top cars.

Applicants have been informed that, unless their present rates are reduced, movements of this traffic will be made by barge. Quotations by responsible barge companies for movements by water from New Orleans to Quincy during 1939 ranged from $3.85 to $5.20, and, although these quotations do not include cost of transfer from ocean vessel to barge at the ports, applicants have been advised that shipments made in 1938 were transferred from vessel to barge alongside, thereby eliminating any charge for extra handling. The rates proposed by applicants include a charge of 35 cents for wharfage and handling at the ports. Shipments received by barge at Quincy must be trucked a distance of 3 miles. The cost of unloading and trucking on shipments received during 1938 was 40 cents. Applicants assert that while the proposed all-rail rate of $4.70 is 45 cents higher than the barge rate of $3.85, plus the 40-cent unloading and trucking charge, it is expected that the proposed rate will enable them to participate in the movement of this traffic. In this connection, a cargo of rock, amounting to 68 carloads averaging 115,120 pounds each, moved from Mobile to Quincy in May 1939 under the rate of $4.70 temporarily authorized by order No. 13416.

Under the proposed adjustment, departures will occur at intermediate destinations on direct and indirect routes. The following examples are typical in connection with all-rail movements. From New Orleans to Quincy, over the direct route of the Illinois Central Railroad Company to St. Louis, Mo., and the Chicago, Burlington & Quincy Railroad Company beyond, the distance is 835 miles and the proposed rate $4.70. Over this route, to Madison, Miss., 196 miles, and to Hannibal, Mo., 816 miles, the present respective rates of $4.77 and $7 will be maintained. From Mobile, Ala., to Quincy the distance over the direct route is 780 miles and the proposed rate $4.70. This rate will be applied over a route composed of the lines of the Mobile and Ohio Rail Road Company (C. E. Ervin and T. M. Stevens, receivers) to East St. Louis, Ill., and the Wabash Railway Company (Norman B. Pitcairn and Frank C. Nicodemus, Jr., receivers) beyond, a distance of 911 miles, or 16.8 percent circuitous. Over the latter route to Jackson, Tenn., 386 miles, and to East Hannibal, Ill., 894 miles, the present respective rates of $5.80 and $7 will apply. Exhibits of records show that the proposed rate of $4.70

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