42.32 Livestock 4. SERVICE & OPERATIONS 42.3 Loading & Unloading 42.32 Complainant found entitled to compensation for services of loading and unloading livestock transported by defendants from or to complainant's public stockyard, but not including the service of trailing or driving livestock from its pens to the pens maintained by the defendants alongside their tracks, from which or to which livestock is moved directly into or from the cars. 287 I. C. C. 109. No. 31715, Yellowstone Livestock Commission v. Northern Pac. Ry. Co., .... I. C. C. ...., 9-7-56, Div. 2. 42.32 The defendant's duty to load or unload the livestock does not include the service of trailing or driving the stock between the complainant's and the defendant's pens. 287 I. C. C. 109. Reasonable value of the complainant's services for loading and unloading livestock to and from the defendant's cars at Lewistown, Mont., determined. No. 31692, Central Montana Stockyards v. Chicago, M., St. P. & P. R. Co., I. C. C. ...., 9-11-56, Div. 3. 42.50 Generally 42.5 Switching 42.50 The effect of the proposal to eliminate Sharp, La., from the switching limits of Baton Rouge, La., and cancel switching rates to and from Sharp, not being ascertainable, it cannot be found unreasonable on the ground that it would cause substantially higher charges which would be unreasonable or otherwise unlawful. I & S 6550, Switching Charges― Sharp, La., .... I. C. C. ... ., 9-6-56, Div. 3. 42.51 Area or Limits 42.51 The reasonable boundaries of a switching district vary with the circumstances of each case. There is no way in which the Commission can arbitrarily gauge such limits. The extent and location of industrial areas, distance and other transportation conditions, and the competitive necessities of local shippers and receivers must be considered. I & S 6550, Switching Charges-Sharp, La., .... I. C. C. ...., 9-6-56, Div. 3. 53.00 Rates and charges must be stated with certainty. MC-C-1769, Computation of Deadhead Rates or Charges on One-Way Charter Parties, M. C. C. 9-21-56, Div. 2. ..... 53.28 Terminal Areas 53.2 Rate Groups 53.28 Schedules establishing and defining terminal areas exceeding territorially the terminal areas prescribed for freight forwarders in Ex Parte No. MC-37, 46 M. C. C. 665, and supplemental reports therein, found unlawful because in violation of orders entered in that proceeding. Respondents are free to seek relief from unduly onerous requirements by appropriate pleadings in that proceeding. I & S 6332, Freight Forwarder Terminal Areas, .... I. C. C. . . . ., 9-20-56, Div. 3. 53.30 Generally 53.3 Class Rates 53.30 The classification generally imposes the highest rate which a particular commodity should bear under normal conditions. A commodity cr exceptions rate which is higher than the corresponding class rate is an abnormality which requires special justification. 288 I. C. C. 371, 375; 291 I. C. C. 21; 294 I. C. C. 307. No. 31459, Stewart Co., Inc. v. Atchison T. & S. F. Ry. Co., .... I. C. 53.7 C... 9-12-56, Div. 2. 53.73 Multiple Vehicle Loads Minimum Weights 53.73 Motor-carrier minimum weights which exceeded the individual capacities of the proponents' vehicles have been approved where, as here, a competitive necessity was shown and substantial utilization of each vehicle used resulted. 63 M. C. C. 430. I & S M-7859, Rayon Fibre-New York, N. Y. to Lexington, N. C., 9-21-56, Div. 2. 54. Joint or Through Routes, Rates & Divisions 54.8 Cancellation of Joint Routes or Rates 54.81 One of Several Routes 54.81 The burden of proof that a proposed cancellation of any through route or joint rate, without the consent of all parties thereto or authorization by the Commission, is consistent with the public interest, is upon the carrier or carriers proposing such cancellation. I & S 6415, Cancellation of Routing, Paper, Gainesville Midland R. Co., I. C. C. 9-13-56, Div. 2. 54.84 Circumvention of Order Requiring Maintenance of .... ..... 54.84 Schedules proposing cancellation of through routes on phosphate rock, in carloads, from points on the Seaboard A. L. R. Co. south of Jacksonville, Fla., to certain destinations on the Atlantic C. L. R. Co. and points north and west thereof in southern, central, western trunkline, and southwestern territories found violative of the amended order in 291 I. C. C. 329. Schedules ordered canceled. I & S 6495, Routing-Cancellation-Phosphate Rock-SAL-ACL, .... I. C. C. 9-26-56, Div. 3. 55.01 .... 55. Competitive Ratemaking 55.0 Generally Right to Meet Competition 55.01 The traffic in foodstuffs is highly competitive, and the respondent is entitled to meet the existing competition if he can do so at reasonable rates. I & S M-7629, Foodstuffs-From and to Chicago and Wisconsin Points, M. C. C. ...., 9-5-56, Div. 2. 55.01 That a carrier may voluntarily publish under the force of compelling competition rates on a level which it might not be required to maintain, has long been established. I & S 6307, Grain from Groups I and J Origins to Pacific Coast, . . . . I. C. C. ... ., 9-24-56, Commission. 55.01 One of the petitioning railroads regards the threat of diversion to trucks as serious, and this circumstance is entitled to considerable weight in view of the important interest of that railroad in the movement. No. 28881, Bituminous Coal Rates Within Illinois, .... I. C. C. . ..., 10-1-56, Commission. 55.2 Destructive Competition 55.21 Rail v. Water 55.21 In determining whether a special case exists justifying fourthsection relief in a competitive situation, the Commission has consistently required a showing that the proposed rate would be no lower than necessary to meet the competition encountered. The evidence is convincing that the proposed rate would result in diversion of all or practically all of this traffic to the all-rail routes. I & S 6424, Ingot Molds-Pa. to Alabama City, Ala., I. C. C. 9-5-56, Div. 2. .... ..... 55.23 Rail v. Motor Carrier 55.23 The establishment of the proposed motor-carrier rates lower than the rates of the railroads in this instance would not, it appears, from the facts presented, result in destructive competition because the considered traffic is not being transported by the rail protestants and there is no indication that it would move under the present rates maintained by them. I & S M-8026, Cement, Lime, and Mortar-Dick Dreher, . . . . M. C. C. 9-6-56, Div. 2. 55.24 Motor Carrier ..... 55.24 The proposed reductions would have a destructive effect upon the present rate levels to other points. Found that suspended schedules would constitute an unfair and destructive competitive practice. I & S M-8019, Chemicals-Baltimore, Md. to Ohio, .... M. C. C. ...., 9-13-56, Div. 3. 55.82 Rail Rates 55.8 Compensativeness 55.82 For the short tariff route distances of 577 and 505 miles the proposed rates will yield 69.3 and 71.3 cents a car-mile. Over the most circuitous route of record the earnings will be 50 cents a car-mile. The class I railways of the eastern district earned in 1954 on all traffic 51 cents per loaded car-mile for an average haul of 192.56 miles. Average expenses were 37 cents. Proposals found reasonably compensatory. I & S 6586, Crude Coal Tar-Ohio to Edgewater, N. J., .... I. C. C. .., 8-27-56, Div. 2. 55.82 Over the short tariff route, the proposed rate would yield 9.2 mills a net ton-mile and 45.8 cents a car-mile at the minimum weight and 59.8 cents at an average weight of 58.25 tons. Over the longest indirect route, 49 percent circuitous, the yield would be 6.2 mills a net ton-mile, 30.8 cents and 40.2 cents a car-mile at the carload minimum and average weight, respectively. The car-mile earnings, particularly based on the average weight, compare favorably with those upon which fourth-section relief has been granted in other proceedings. See: 272 I. C. C. 781 and 287 I. C. C. 123. I & S 6424, Ingot Molds-Pa. to Alabama City, Ala., ... I. C. C. ..., 9-5-56, Div. 2. 55.82 The proposed rate compares favorably with rates from and to a number of other points for comparable distances and would yield revenue of 45.9 cents a car-mile for the round trip of 118 miles. The line-haul carrier's average revenue and expense per car-mile in 1955 were 46.19 and 26.05 cents, respectively. The proposed rate appears to be reasonably compensatory. I & S 6580, Petroleum-Chattanooga Group to Scottsboro, Ala., .... I. C. C. . . . ., 9-20-56, Div. 2. 55.82 Although the proposed rate is below a maximum reasonable level, it compares favorably with various barge-competitive and truckcompetitive rail rates on coal referred to in the record, and may be considered to be above a minimum level. No. 28881, Bituminous Coal Rates Within Illinois, .... I. C. C. . . . ., 10-1-56, Commission. 57.33 Intent of Framers 57. Tariffs 57.3 Interpretation 57.33 Inasmuch as the rules referred to are not ambiguous, it would be improper to consider the purpose or intent of the tariff publisher. No. 31769, Wm. Schluderberg-T. J. Kurdle Co. v. Pennsylvania R. Co., I. C. C. ...." 8-29-56, Div. 2. 57.36 Specific v. General Provision 57.36 Where a commodity is included in more than one tariff designation, that which is more specific is applicable. 210 I. C. C. 301; 284 I. C. C. 329, 332. No. 31837, Thomas J. Lipton, Inc. v. N. Y. C. R. Co., I. C. C. 9-18-56, Div. 2. 58.04 Provisions Considered 58. Charges 58.0 Generally .... 58.04 Tariff provisions interpreted and found applicable on one-way charter party movements by motor common carriers of passengers. MC-C1769, Computation of Deadhead Rates or Charges on One-Way Charter Parties, M. C. C. ...., 9-21-56, Div. 2. 60.05 While the volume of movement is important in determining the reasonableness of rates, it is not the sole factor to be considered. No. 31809, Foote Mineral Co. v. Southern Ry. Co., I. C. C. .., 9-26-56, Div. 2. 60.07 It has not been the policy of the Commission to impose the retroactive application of reconsignment provisions. 216 I. C. C. 683. No. 31769, Wm. Schluderberg-T. J. Kurdle Co. v. Pennsylvania R. Co., I. C. C. . . .., 8-29-56, Div. 2. 60.3 Conformity With Fourth Section Principles 60.33 Through v. Aggregate of Intermediate Rates-Rail .... 60.33 Proposed rates higher than those from more distant points may not be approved in the absence of special justification. I & S M-7629, Foodstuffs-From and to Chicago and Wisconsin Points, M. C. C. 9-5-56, Div. 2. 60.34 Through v. Aggregate of Intermediate Rates-Motor Carrier 60.34 One-factor rates which exceed the aggregate of intermediate rates are prima facie unreasonable. 32 M. C. C. 10. MC-C-1836, Fred C. Fielding v. Arrowhead Freight Lines, Ltd., et al, M. C. C. ..., 8-24-56, Div. 3. .... 60.4 Reasonableness of Combination of Local Rates 60.42 Applicable Combination 60.42 It is true that the rates assailed, if regarded as through rates, are out of line with the rates prescribed, but it must be recognized that the instant shipments involved separate and distinct movements with two rate factors, and these factors are not at variance with the prescribed measure of reasonableness. No. 31769, Wm. Schluderberg-T. J. Kurdle Co. v. Pennsylvania R. Co., I. C. C. 8-29-56, Div. 2. ...., 62. Rate Comparisons 62.01 Standard of Reasonableness 62.01 One of the best tests of the reasonableness of a rate is by comparing it with other rates on the same or similar commodities moving between other points in the same general territory. No. 31567, Economy Block Co. v. B. & O. R. Co., I. C. C. .., 9-26-56, Div. 3. To Same Effect: .... MC-C-1836, Fred C. Fielding v. Arrowhead Freight Lines, Ltd., M. C. C. ...., 8-24-56, Div. 3. 62.04 Normalcy of Compared Rates .... 62.04 Truck competitive rates do not afford a proper basis for maximum reasonable rates on other products. No. 31809, Foote Mineral Co. v. Southern Ry. Co., I. C. C. ...., 9-26-56, Div. 2. 62.07 Rate via Competing Route 62.07 Although no presumption of unreasonableness attaches to a rate over a particular route because a lower rate applies over another route, the shipper should not be denied a reasonable rate merely because it could have been secured by use of another route, 58 I. C. C. 42, 44. No. 31567, Economy Block Co. v. B. & O. R. Co., I. C. C. 9-26-56, Div. 3. 63.5 .... 63. Value of Service ..... Semi-Processed Material 63.59 Scrap, Slag & Waste Material 63.59 Scrap iron is a low-valued commodity which generally moves at relatively low rates. MC-C-1836, Fred C. Fielding v. Arrowhead Freight Lines, Ltd., et al, ... M. C. C. ... 8-24-56, Div. 3. ..... 64. Compensativeness 64.07 Vehicle Mile Earnings 64.07 While both ton-mile and car-mile yields merit consideration, the latter are of more significance in determining the compensatory character of rates on heavy-loading commodities. F. S. A. 31023, Ethylene Glycol Between Velasco, Texas and Graingers, N. C., ... I. C. C. 9-6-56, Div. 2. 64.1 Ascertainment of Costs 64.10 Cost Elements 64.10 Inasmuch as the respondent is a new carrier and has had no experience as yet with the proposed transportation, it was necessary for him to estimate the prospective costs. Motion to strike the estimate on the ground that no foundation exists therefor, overruled. I & S M-8026, Cement, Lime, and Mortar-Dick Dreher, .... M. C. C. . . . ., 9-6-56, Div. 2. 64.11 Average Costs 64.11 The infirmity of system average truck-mile expenses as an aid in the determination of the compensatory character of rates has been pointed out. See: 61 M. C. C. 319, 327 and Volume 16, Interstate Commerce Acts Annotated, note 102, page 12885. This infirmity is not cured by restricting the showing of average expenses to the line-haul operations of a carrier, particularly where, as here, the record is lacking as to the average haul of the carriers embraced in the study. Quite obviously the cost on a particular commodity would vary with the length of the haul. MC-C-1860, Union City Transfer v. Heavy Haulers, Inc., et al, ... M. C. C. ..., 9-5-56, Div. 2. .... |