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sions on this traffic which is much more burdensome and expensive to transport than is general traffic.

The majority evidently have overlooked the fact that the prescription of a lower basis of divisions on citrus fruit and vegetables than the general class-rate basis is likely to place in jeopardy the existing higher basis of divisions on general traffic moving at the class rates and at rates related thereto. As of the time of the submission of this case the Florida East Coast was in a precarious financial condition. The consequences of the action of the majority, therefore, may be permanently to impair the ability of the Florida East Coast to furnish adequate and efficient transportation service.

COMMISSIONER ROGERS did not participate in the disposition of these proceedings.

APPENDIX

Distance over Florida East Coast Railway, and percentage to be received by the Florida East Coast Railway out of the rate factor south of Richmond, Va.:

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FOURTH SECTION APPLICATION No. 16341

METHANOL FROM NEW YORK AND PENNSYLVANIA

Submitted November 16, 1938. Decided November 21, 1939

Authority granted, on conditions, to establish and maintain rates on methanol (wood alcohol), in carloads, from points in New York and Pennsylvania to destinations in official territory, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act.

Alfred S. Knowlton for applicants.

REPORT OF THE COMMISSION

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

Carriers parties to Agent W. S. Curlett's tariff I. C. C. No. A-499 apply for authority to establish and maintain rates on methanol (wood alcohol), in carloads, minimum 30,000 pounds, when in tank cars, subject to rule 35 of the official classification, from points in New York and Pennsylvania to destinations in official territory, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. Relief was authorized temporarily by fourthsection order No. 12361. A hearing was held, and no opposition to the relief prayed was presented. Rates will be stated in amounts per 100 pounds.

In Thomas Keery Co., Inc., v. New York, O. & W. Ry. Co., 206 I. C. C. 585, division 3 found that the interstate rates on methanol, in carloads, from 23 specified points in New York and Pennsylvania, refined in transit at Cadosia, N. Y., to 58 specified destinations in official territory, would be unreasonable to the extent that they might exceed the fifth-class rates shown in appendix E of the eastern classrate revision. The rates prescribed for the future were to be predicated upon the distances by way of Cadosia over the shortest routes over which carload traffic can be moved without transfer of lading, and in instances where arbitraries were authorized in the eastern classrate revision like arbitraries were authorized in the rates on methanol. Applicants propose to establish and maintain on this traffic from the producing points to the destinations shown in appendix A to the report on further hearing in Thomas Keery Co., Inc., v. New York, O. & W. Ry. Co., 226 I. C. C. 335, rates on the basis prescribed in the original report and to maintain higher rates constructed on the

basis prescribed therein from and to intermediate points. Relief is also sought to establish and maintain rates on the same basis from and to producing or consuming points that may develop in the future. We have generally declined to grant relief based on some contingency that might arise in the future, and no reason appears for any different action here.

The relief sought is to enable applicants to maintain, from and to competitive points, rates on the basis prescribed in the proceeding cited. The following examples are illustrative of such departures in the proposed adjustment. From Custer City, Pa., to Boston, Mass., 613 miles over the shortest working route through the transit point, the rate is 48 cents. This rate would also apply over an indirect route composed of the lines of The Baltimore and Ohio Railroad Company to Pittsburgh & Lehigh Junction, N. Y., Lehigh Valley Railroad Company to Fish Creek, N. Y., New York, Ontario & Western Railway Company to Campbell Hall, N. Y., and The New York, New Haven and Hartford Railroad Company beyond, 661 miles. To Forest Hills, Mass., the only higher-rated intermediate point on this route, 656 miles from Custer City, a rate of 49 cents applies. From Roulette, Pa., to Altoona, Pa., 511 miles over the shortest working route through Cadosia, the rate is 43 cents. This rate would also apply over an indirect route composed of the lines of the Coudersport and Port Allegany Railroad Company to Port Allegany, Pa., Pennsylvania Railroad Company to Genesee Junction, N. Y., West Shore Railroad (The New York Central Railroad Company, lessee) to Oneida, N. Y., New York, Ontario & Western to Jermyn Transfer, Pa., The Delaware and Hudson Railroad Corporation to WilkesBarre, Pa., and the Pennsylvania beyond, 608 miles, or 19 percent circuitous as compared with the shortest working route through the transit point. From Port Allegany, the only higher-rated intermediate point on this route, to Altoona, 601 miles, a rate of 45 cents applies. As compared with the normal short-line route from Roulette to Altoona this route is 249 percent circuitous. Over the indirect route the rate from Roulette to Altoona would yield 31.9 cents per car-mile, based on the average loading of 45,093 pounds, and 14.1 mills per ton-mile.

While these rates were established from and to specific points, they are based on rates prescribed in the eastern class-rate revision, and it is the position of applicants that this adjustment is a modification of the eastern class-rate structure and reflects the distance basis and groupings observed therein. As the proposed rates will be uniformly on a distance basis and therefore in substantial compliance with the equidistant provision of section 4, the requirements of that provision

will not be imposed. The routes shown of record, except in one instance, are not unduly circuitous.

Under the circumstances set forth herein, we conclude that relief subject to the conditions hereinafter prescribed is justified.

Applicants will be authorized to establish and maintain on methanol as described herein, over routes by way of Cadosia, from points in New York and Pennsylvania to destinations in official territory shown in appendix A of the report on further hearing in Thomas Keery Co., Inc., v. New York, O. & W. Ry. Co., supra, the lowest rates that may be constructed over any route by way of Cadosia, on the basis prescribed in the original report therein, and to maintain higher rates from, to, and between intermediate points; provided that the rates from, to, and between such higher-rated intermediate points shall not exceed rates constructed on the basis prescribed or approved in that proceeding, and shall in no instance exceed the lowest combination of rates subject to the act, and provided further, that this relief shall be subject to the circuity limitations set forth in the footnote.1 All other and further relief sought will be denied. An appropriate order will be entered.

1 Relief shall not apply to circuitous lines or routes from and to competitive points where the distance over the short tariff line or route through Cadosia, N. Y., (1) is 150 miles or less and the longer line or route is more than 70 percent circuitous; (2) exceeds 150 miles but does not exceed 1,000 miles and the longer line or route is more than 50 percent circuitous, except that where the distance over the short tariff line or route exceeds 150 miles and the distance over the longer line or route does not exceed 255 miles, relief will apply to such longer line or route even though it is more than 50 percent circuitous; and (3) exceeds 1,000 miles and the longer line or route is more than 33% percent circuitous, except that where the distance over the short tariff line or route exceeds 1,000 miles and the distance over the longer line or route does not exceed 1,500 miles, relief will apply to such longer line or route, even though it is more than 33% percent circuitous. 235 I. C. C.

No. 277461

STATE OF ALABAMA ET AL. v. NEW YORK CENTRAL RAILROAD COMPANY ET AL.

Submitted June 2, 1939. Decided November 22, 1939

1. Rates on certain articles from points in southern territory to points in official territory found unreasonable to the extent they are upon levels higher than would result from application of approximately the same levels of rates as apply on similar traffic within official territory.

2. Rates on certain articles from points in southern territory to points in official territory found unduly prejudicial to the extent they are upon levels higher than would result from application of approximately the same levels of rates as apply on similar traffic within official territory.

3. Rates on certain other articles from points in southern territory to points in official territory found not shown to be unlawful.

4. Proposed rates on soapstone and talc, in carloads, between southern and official territories found not justified. Suspended schedules ordered canceled, and proceeding discontinued.

Bibb Graves, Edgar Watkins, J. V. Norman, Hugh White, C. A. Morvant, P. A. Frye, J. H. Tench, T. T. Turnbull, Lewis E. Staley, Frank H. Scruggs, Herman Gunter, F. C. Hillyer, and Greek L. Rice for complainants.

W. A. Cole, J. P. Canny, Daniel P. Loomis, F. N. Hiller, John J. Fitzpatrick, D. P. Connell, Frank H. Cole, Jr., Jervis Langdon, Jr., Arthur Van Meter, Joseph F. Eshelman, Thomas P. Healy, Henry D. Boynton, B. G. Stackhouse, W. L. O'Neil, M. G. Roberts, Nathan S. Sherman, W. A. Northcutt, A. R. Smith, B. F. Morris, E. A. Smith, Lawrence Chaffee, Robert Mitten, M. W. Thomas, C. B. Kealhofer, Charles Barham, H. L. Hanes, E. R. Oliver, W. N. McGehee, Joseph Marks, D. Jordan, F. W. Gwathmey, D. H. Bagley, W. T. Tannehill, H. R. Wilkinson, Alfred S. Knowlton, James P. Harrington, Charles Clark, Henry Thurtell, and Norman E. White for defendants and respondents.

Harry C. Ames, T. D. Geoghegan, John J. Burns, Nathan David, and Norris W. Ford for New England Governors' Railroad Freight Rate Committee; Parker McCollester for the State of New York, the State of Delaware, and the Chamber of Commerce of New York, John J. Bennett, Jr., Frank J. Clark, and Charles E. Bell for the

1 This report also embraces Investigation and Suspension Docket No. 4400, Soapstone and Talc Between Southern and Official Points.

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