Ordinarily an agency of transportation may initiate rates that will, in the opinion of its management, enable it to obtain or retain desired traffic provided that such rates are compensatory and do not cast a burden upon other traffic. However, when competition is carried to the point where the service is performed at a loss, public interest is not being served. Such competition tends to undermine the financial stability of the carriers and thereby to lessen their ability to furnish adequate and efficient service. Naval Stores from Mississippi to Gulf Ports, 723 (734).

MARKETS.

In General: In a well-planned market for a city the size of Denver, Colo., it is desirable to have track facilities conveniently located for delivery and unloading of cars consigned to produce dealers and for displaying cars of produce to wholesalers and jobbers. While lack of such a market gave truck competitors advantage over the railroads, the advisability of the railroads taking the lead in such projects and assuming the burdens and financial risks attendant upon their construction and operation was questionable, especially when duplicate terminals were built when only one was needed. Economy in railroad expenditures is just as important as economy in marketing produce. Competitive Produce Terminals at Denver, Colo., 699 (712).

Competition: See COMPETITION.

MAXIMUM RATES.

In General: See also COMMODITY RATES (RELATIONSHIP TO CLASS RATES). West-bound transcontinental rates do not necessarily represent a proper basis for determining a maximum reasonable rate on east-bound traffic. Rudolph Wurlitzer Co. v. Chicago, B. & Q. R. Co., 91 (92).

In classification rule providing for application of less-than-carload charges as maximum on fully loaded cars, "fully loaded" must be given a practical meaning. When cars containing less than the carload minimum weight of sweetpotatoes were fully loaded in that sense and shipments were treated as carloads by carriers and shippers, that they were assessed less-than-carload rates because charges so computed were lower did not alter their character as carloads. Haberman v. Pennsylvania R. Co., 475 (476).

Carriers are free to establish and maintain rates lower than prescribed maxima, if reduced rates do not result in undue preference and prejudice. Columbus Freight Bureau v. Atlanta, B. & C. R. Co., 744 (746).

Commodities: See RATE COMPARISONS (TERRITORIES). MINIMUM RATES.

In General: See also REASONABLENESS (RATES, FARES, AND CHARGES (UNREASONABLY LOW RATES)).

Since assailed rate on iron and steel articles from Pennsylvania to Sands, Mo., was on basis prescribed as reasonable maximum in western trunk-line revision, and award of reparation to any lower basis was barred under principle in 284 U. S. 370, it was unnecessary to determine whether the same rate also complied with minimum-rate provisions of that revision, or whether the principle announced by the Supreme Court applied to the authorized minimum rate. As reparation only was sought, a finding as to reasonableness would serve no useful purpose. Mount Vernon Bridge Co. v. Baltimore & O. R. Co., 365 (369).

Past denials of fourth-section relief, because of doubt as to compensatory character of rates yielding ton-mile earnings approximating those under protested water-competitive rates on ex-lake grain, did not establish that the latter were below reasonable minima, since "reasonably compensatory", as used in the fourth section, involves much more than the netting of a profit to the carriers. Whether

the ex-lake rates were unreasonably low depended on other valid considerations, such as car-mile revenues, their character as proportional rates, and carriers' right, in special cases, to establish rates lower than gross cost, but yielding more than out-of-pocket cost, in order to share in the movement of traffic. Ex-Lake Grain to North Atlantic Ports, 415 (428-429).

Reasonable minimum multiple-car or quantity rate fixed on blackstrap molasses from New Orleans and Harvey, La., to Peoria and Pekin, Ill., subject to minimum weight of 1,800 tons, equivalent to 381⁄2 tank-car loads, to be loaded to not less than 90 percent of shell capacity of tank, computed at 11.7 pounds per gallon, but in no case to exceed the weight-carrying capacity of the car. New Orleans, La., to Peoria and Pekin, Ill., 485.

Molasses from

Long and Short Haul: See Water-and-Rail (LONG-AND-Short-Haul Relief). Minimum Earnings: See EQUALIZATION (RIVER CROSSINGS).

Prescription by Commission: Notwithstanding that ex-lake grain moving at water-competitive rates from Buffalo and Oswego, N. Y., to north Atlantic ports, for export, represented added traffic and that ton-mile cost of hauling such traffic is generally less than the average for all traffic, as well as that cost per ton is less for a heavy than for a lighter load, and cost per mile less for a longer than for a shorter haul, the reduced rates were found to be below a reasonable minimum when net earnings did not exceed 3.1 mills per ton-mile and 16.86 cents per carmile. Minimum reasonable basis yielding not greatly in excess of out-of-pocket costs, determined. Ex-Lake Grain to North Atlantic Ports, 415 (427, 429).

Upon investigation of the rates, rules, regulations, and practices of common carriers by motor and by rail, and the minimum charges, rules, regulations, and practices of contract carriers by motor vehicle, proposed rail rates and existing motor rates were found to be compensatory and not to cause a real burden upon other traffic. While there was keen competition, there was no ruinous competition, and prescription of reasonable minimum rates was not required. Naval Stores from Mississippi to Gulf Ports, 723 (724, 734).

When competition between competitive agencies of transportation is carried to the point where the service is performed at a loss, public interest is not being served. Such competition tends to undermine the financial stability of the carriers and thereby to lessen their ability to furnish adequate and efficient service. It is to prevent such competition that Commission has been authorized to prescribe reasonable minimum rates. This authority should be exercised with care. Id. (734).

MINIMUM WEIGHTS.

In General: Reduction in minimum weight was not proof of unreasonableness of former minimum in connection with that rate, but was evidence to be considered with other facts. Heekin Can Co. v. Pennsylvania R. Co., 433 (434). Alternative Minima and Rates: See ALTERNATIVE RATES.

Car Capacity: In classification rule providing for application of less-thancarload charges as maximum on fully loaded cars, "fully loaded" must be given a practical meaning. When cars containing less than the carload minimum weight of sweetpotatoes were fully loaded in that sense and shipments were treated as carloads by carriers and shippers, that they were assessed less-than-carload rates because charges so computed were lower did not alter their character as carloads. Haberman v. Pennsylvania R. Co., 475 (476).

Commodities: Minimum weights were involved or fixed in the following cases: Cotton, compressed, in bales: Warren v. Gulf, C. & S. F. Ry. Co., 55.

Firebrick, used, broken: Chas. Taylor Sons Co. v. Chesapeake & O. Ry. Co., 199.

Laundry machines: American Electric Co. v. Chicago, R. I. & P. Ry. Co., 435. Logs: St. Louis Basket & Box Co. v. Illinois Central R. Co., 9.

Paper: Paper from Holyoke, Mass., to Harlem River, N. Y., 99 (101–102). Tin cans: Heekin Can Co. v. Pennsylvania R. Co., 433.

Wool tops: Jantzen Knitting Mills v. Boston & A. R., 29 (31).

Considerations Affecting Fixation: See also REDUCTIONS (JUSTIFICATION). Proposed reduction in rates on printing and wrapping paper, and pulpboard, from Canton, N. C., to Atlanta, Ga., found not justified without prejudice to establishment of rates in conformity with the findings. The proposed minimum of less than 20,000 pounds would result in wasteful transportation and an unnecessary lessening of carriers' revenues and also in an unreasonably low basis. Paper from Canton, N. C., to Atlanta, Ga., 529.

Full Visible Capacity: See CAR CAPACITY under this heading.

Inability to Load Minimum: Charges collected on tin cans from Norwood, Ohio, to Cheriton, Va., based on minimum of 18,000 pounds, subject to rule 34, were found unreasonable when it was impossible to load the required minimum. Charges which would have accrued on basis of minimum subsequently established or on the actual weight where in excess of that minimum, plus the applicable emergency charges, were reasonable. Heekin Can Co. v. Pennsylvania R. Co., 433. Schedules, Interpretation: Charges collected on horses from Billings, Mont., to Vernon, N. Y., reconsigned at Potsdam, N. Y., based on 30,100-pound minimum, from Chicago, Ill., to Potsdam, were inapplicable. In absence of evidence that car was weighed loaded and empty as required by governing tariff, 23,000pound minimum provided on range horses under exception to official classification was applicable for determining charges from Chicago to Potsdam and beyond. Sheldon v. Chicago, B. & Q. R. Co., 32 (33).

Tank Cars: Reasonable minimum multiple-car or quantity rate fixed on blackstrap molasses from New Orleans and Harvey, La., to Peoria and Pekin, Ill., subject to minimum weight of 1,800 tons, equivalent to 381⁄2 tank-car loads, to be loaded to not less than 90 percent of shell capacity of tank, computed at 11.7 pounds per gallon, but in no case to exceed the weight-carrying capacity of the Molasses from New Orleans, La., to Peoria and Pekin, Ill., 485. MISQUOTATION. See PASSENGERS (SCHEDULES). MISROUTING.

car.

Shipments routed "Sou-Rail Federal Barge Line”, which moved over Southern Ry. to St. Louis, Mo., and were there interchanged with the barge line, were misrouted when lower rate was available over the Southern via Memphis, Tenn. However, failure to utilize still cheaper route via Cairo, Ill., was not misrouting when the Southern had no connection with the barge line at that point. While there was some evidence that shipper intended to indicate routing over the Southern and rail connections to the barge-line junction through which the lowest rate applied, such intent was not readily discernible in the wording, and shipper's routing was not so patently ambiguous as to obligate carrier's agent to seek more specific instructions. Interpretation of "Sou-Rail" as abbreviation for "Southern Railway" was not unreasonable, and the instruction thus designated a complete route, which ordinarily precludes movement over an unnamed intermediate line. Miller Waste Mills, Inc., v. Southern Ry. Co., 679 (680).

When shipper inserted ostensibly complete routing over Southern Ry. and Federal Barge Line, the Southern was liable for strict observance of the bill-oflading routing, and failure to forward shipments over lower-rated route requiring movement by an intermediate rail line did not constitute misrouting. Id. (681).

MOOT CASES.

Although reduced rates, the lawfulness of which was under consideration by Commission, were due shortly to expire, motion to dismiss the proceeding on ground that the issue had become moot was overruled. Ex-Lake Grain to North Atlantic Ports, 415 (416).

Although complaint assailing proposed increased switching charges of New Orleans Public Belt R. and proposed limitation on absorptions thereof by line-haul carriers on export, import, and coastwise traffic incidentally raised the issue of lawfulness of existing charges and absorptions, complainant's real object was to prevent either the increases or the attempt to pass them on to shippers, and no objection to existing absorption limitations on domestic traffic was advanced. The issues therefore became moot when the proposed increased switching charges were disapproved. New Orleans Public Belt R. Switching and Absorptions, 613 (645-646).

The question of lawfulness of proposed reduced rates on export grain did not become moot because expiration date occurred prior to Commission's decision. Investigation and suspension proceedings are primarily concerned with the lawfulness of carriers' proposal; suspension is an incident. Export Grain, C. F. A. Territory to North Atlantic Ports, 655 (656).

MOTIONS. See COMPLAINTS (DISMISSAL); SCHEDULES (Expiration Date). MOTOR CARRIER ACT, 1935.

The provisions of sec. 15a of the Interstate Commerce Act and of sec. 202 (a) of the Motor Carrier Act, 1935, are not inconsistent. The paramount duty laid upon Commission is to regulate both transportation agencies, not in the interest of one or the other of such agencies, but in the public interest. Naval Stores from Mississippi to Gulf Ports, 723 (733).

MOTOR CARRIERS.

In General: See UNITS OF SHIPMENT.

Advantages of Service: See ADVANTAGES (MOTOR vs. RAIL).

MOTOR COMPETITION. See COMPETITION.

MULTIPLE-CAR (QUANTITY) RATES. See QUANTITY (RATES).

MULTIPLE LINES. See DIFFERENTIALS IN RATES AND ROUTES (MULTIPLE LINES).

MULTIPLE UNITS OF SHIPMENT. See UNITS OF SHIPMENT.

MUNICIPALITIES. See GOVERNMENTAL TRAFFIC.

OPERATING AND TRANSPORTATION CONDITIONS. See COST OF SERVICE (LOADING).

OPERATION.

Difficulty: See also RATE COMPARISONS (LEVEL OF RATES).

Since average main-line operating conditions, as affected by grades, curves, and elevations, did not differ materially in eastern and central Montana, and evidence dealt with the entire complaint area or with Montana as a whole, class rates from western trunk-line and official territories should be on one level to the entire area. Finding in 226 I. C. C. 467, prescribing separate bases, reversed. Great Falls Traffic Assn. v. Chicago, B. & Q. R. Co., 459 (461).

ORDERS.

Effective Date: Order directing cancelation of reduced rates on ex-lake grain, found unlawful after protest and investigation, was unnecessary when rates were published to expire on a date prior to the effective date of any order which might be made. Ex-Lake Grain to North Atlantic Ports, 415 (429).

Long and Short Haul: Authorization under a fourth-section order, with the usual provision that Commission did not by the order approve rates filed thereunder and that such rates would be subject to complaint, investigation, and cor

rection if in conflict with the provisions of the act, could not justify the establishment of an unlawful rate. Naval Stores from Mississippi to Gulf Ports, 723 (729).

Modification: See LONG AND SHORT HAUL (RELIEF, GENERALLY). Relief from: See LONG AND SHORT HAUL (Relief, GENERALLY). Suspension: See INVESTIGATION AND SUSPENSION (ORDERS). Violation: See TRACKS (TRACKAGE AGREEMENTS AND RIGHTS). OUT-BOUND RATES. See IN-BOUND RATES.

OUT-OF-LINE HAULS.

While Atchison, T. & S. F. Ry., in proposing to apply direct-route rates on grain from points on its line north of Enid, Okla., to Kansas City, Mo., and beyond, to shipments transited at Enid, had not expressly requested fourthsection relief to maintain lower rates via Enid than from that point, relief was granted, since the out-of-line hauls were not unusual, the degree of circuity did not represent transportation for which rates should necessarily be higher than over direct routes, and earnings for the total hauls would be compensatory. Transit on Grain at Enid, Okla., 720 (722). OUT-OF-POCKET COSTS. PAPER RATES.

See COST OF SERVICE (OUT-OF-POCKET COSTS).

Rates on cast-iron pipe and related articles, to, from, and within the Southwest were found unreasonable to the extent that they exceeded or might exceed rates on a scale approximately the same as that prescribed in 213 I. C. C. 381, provided that publication of rates from known shipping points except points in official territory, to destinations in the Southwest, should be considered as substantial compliance with the finding in order that publication of "paper" rates might be avoided. Findings in 234 I. C. C. 347, modified. Wrought Pipe and Fittings, 539.

PARTIES.

Defendants, Generally: Northern carriers which participated in interterritorial rates as a group actually and effectively controlled rates within the North and the north-bound rates from the South into the North, except to points on and west of the Monon line, and southern carriers were defendants and respondents in name only in cases assailing the reasonableness of such interterritorial rates and in an investigation and suspension proceeding covering such rates. State of Alabama v. New York Central R. Co., 255 (329).

Substitution: Under the State law providing for extension of legal existence of a dissolved corporation, a trustee of the corporation or its successor had the right to be substituted as complainant in a pending suit filed in the name of the corporation which was dissolved after the suit was brought, notwithstanding the elapse of more than 3 years since dissolution. Armstrong Packing Co. v. Abilene & S. Ry. Co., 717.

PASSENGERS.

Cost of Service: See COST OF Service (Apportionment as Between Freight AND PASSENGER SERVICE).

Intrastate Fares and Charges: Refusal of Missouri Pac. R. Co. to arrange switching service at San Antonio, Tex., to enable members of tour from Indianapolis, Ind., to Mexico City, Mex., and return, to resume their original scheduled route, which resulted in purchase of local tickets over Missouri Pac. R. from Laredo to Hearne, Tex., was in regard to an intrastate movement, and any violation of carrier's legal obligation occasioned by this action was not within Commission's jurisdiction. 252 U. S. 152. Hinkle v. New York Central R. Co., 195 (197).