and 3 being comparatively small in area. The rates above named not only apply to any point in a given group, in the first instance, but under the various transit privileges allowed grain may be unloaded at an intermediate point and afterwards sent on to any point in Texas at the rate applicable to that group. These groups have been in effect in substantially their present form for a long time, and various business conditions relating to the handling and milling of grain have adjusted themselves to this system of rate making.

The millers of Wichita Falls, the milling and grain interests of Fort Worth and Dallas, as well as similar interests from certain other towns in northern Texas, appeared and were heard in this proceeding. Neither the complainants nor the defendants nor any of the interveners suggested that this group arrangement should be interfered with. Indeed, it seemed to be the universal opinion that it ought to remain as it is. It was claimed that rates from certain points in Oklahoma were unduly high to near-by points in these groups; but considering merely the stations in Kansas which are involved in this complaint, there was no serious claim that this scheme of group rates might not properly be and, indeed, ought not to be retained. In view of the attitude of all parties, the Commission will not disturb in this proceeding this system of rate making.

This leaves for consideration merely the reasonableness of the rates themselves. In determining that it must be carefully kept in mind that we are passing not upon a rate from a particular point like Wichita to a particular point like Fort Worth. That rate is not merely to Fort Worth. It carries grain from Wichita into any part of group 1, and it gives to it the facility of stoppage in transit in any point in that group.

It must also be borne in mind that these groups include the entire State of Texas and stand in relation one to another. For the additional payment of 5 cents per 100 pounds, grain which has paid a charge of 33 cents to Fort Worth from Wichita can be sent to any part of groups 3 and 4 and for 2 cents to any part of group 2.

If the complainants desire that this group system be retained, then the railways must have the benefit of the fact that these are not rates to individual towns, but rates to extensive areas. A rate of 38 cents from Wichita to group 4 can not properly be compared with the export rate to Galveston, but must be treated as applicable to the entire territory covered by that extensive group.

It must also be observed that the circumstances of the carriage under which this domestic traffic moves are much less favorable than those applicable to the movement of export business. There the haul is over the main lines of the railroads involved. It is in large quantities. The attractiveness of the traffic is shown by the fact that

carriers from Fort Worth are willing to take it at that point and transport it to destination for from 6 to 7 cents per 100 pounds. Upon the other hand, while most of this domestic grain goes in the first instance to points like Fort Worth, Dallas, and Houston, in the end much of it is diverted to other points in the State, passing over roads upon which transportation is expensive and which ought to receive, whether they do or not, a division much larger than that paid lines leading south to Galveston.

While it is impossible to say with any degree of confidence what may be a fair rate to these different groups, it is our impression that the domestic rate to group 4 may properly be 10 cents higher per 100 pounds than the export rate to Galveston, the same difference being observed between the different groups as now in effect. This would produce a rate from Wichita to groups 3 and 4 of 35 cents, to group 2 of 32 cents, and to group 1 of 30 cents.

The differential made by the carriers themselves in these domestic rates between wheat and corn seems to be considerably larger than that between these commodities when for export. The reason for this has not been stated to the Commission. We know of no reason from a transportation standpoint why this should be, and in fixing these rates the same differential of 3 cents will be observed. Upon this basis the Commission is of the opinion that domestic rates to groups 3 and 4 should not exceed the figures shown in the following tables for wheat and corn and that to the other groups they should be less by 2 cents to group 2 and 5 cents to group 1.

Domestic rates on wheat and corn, C. L., in cents per 100 pounds, from stations in Kansas on the Atchison, Topeka & Santa Fe Railway.

Domestic rates on wheat and corn, C. L., in cents per 100 pounds, from stations in Kansas on the Chicago, Rock Island & Pacific Railway.

Representatives of the city of Lancaster, Tex., appeared before the Commission upon the hearings in this case and objected that this community was unduly prejudiced by being placed in group 2 instead of group 1.

Lancaster is situated about 10 miles south of Dallas, upon the main line of the Missouri, Kansas & Texas and upon a branch line of the Houston & Texas Central, and it was said that mills located at that city were unable to grind grain in competition with Fort Worth, Dallas, and other mills in group 1. This was not seriously disputed by the defendants, who do not object to transferring this town into group 1, and our order will so direct.

No. 920.

TERRITORY OF OKLAHOMA

v.

CHICAGO, ROCK ISLAND & PACIFIC RAILWAY COMPANY; ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY; MISSOURI, KANSAS & TEXAS RAILWAY COMPANY; MISSOURI, KANSAS & TEXAS RAILWAY COMPANY OF TEXAS; CHICAGO, ROCK ISLAND & TEXAS RAILWAY COMPANY; ST. LOUIS, KANSAS CITY & COLORADO RAILROAD COMPANY; ST. LOUIS & SAN FRANCISCO RAILROAD COMPANY; CHICAGO, ROCK ISLAND & GULF RAILWAY COMPANY; GULF, COLORADO & SANTA FE RAILWAY COMPANY; HOUSTON & TEXAS CENTRAL RAILROAD COMPANY; SOUTHERN PACIFIC COMPANY; TEXAS & PACIFIC RAILWAY COMPANY; TEXAS MIDLAND RAILROAD; GALVES

TON, HOUSTON & HENDERSON RAILROAD COMPANY; INTERNATIONAL & GREAT NORTHERN RAILROAD COMPANY; AND GALVESTON, HARRISBURG & SAN ANTONIO RAILWAY COMPANY.

Submitted June 4, 1907. Decided July 8, 1907.

Defendants' rates on wheat and corn shipped from points in Oklahoma Territory to Galveston, Tex., for export, found unreasonable, and reductions in such rates ordered.

W. O. Cromwell, Attorney-General of Oklahoma, for complainant. S. H. Cowan for Burrus Mill & Elevator Co. and others, inter

veners.

Gardiner Lathrop, Robert Dunlap, and A. A. Hurd for A., T. & S. F. Ry. Co. and G., C. & S. F. Ry. Co.

M. A. Low and E. B. Peirce for C., R. I. & P. Ry. Co., C., R. I. & G. Ry. Co., St. L. & S. F. R. R. Co., and Southern Pac. Co.

REPORT OF THE COMMISSION.

PROUTY, Commissioner:

This petition is brought by the Territory of Oklahoma, and asks a reduction of the rates on wheat and corn from all stations within that Territory upon the lines of the defendants when moving to Galveston for export. The defendants are the various railway companies carrying this grain from points of origin in Oklahoma Territory to Galveston. The originating roads are the Atchison, Topeka & Santa Fe Railway and the Gulf, Colorado & Santa Fe Railway, composing the Santa Fe System, the Chicago, Rock Island & Pacific Railway and the St. Louis & San Francisco Railroad, composing the Rock Island System, and the Missouri, Kansas & Texas Railway. The other defendants are railway companies which receive this traffic at various junction points and carry it to destination.

The questions involved in this case are substantially the same with those which we have just considered in the cases Farmers, Merchants and Shippers' Club of Kansas v. Atchison, Topeka & Santa Fe Railway Co. et al., and Same v. Chicago, Rock Island & Pacific Railway Company et al., supra. The territory involved lies immediately south of Kansas and is of the same general character. The traffic moves to Galveston over the same lines and under the same circumstances. The Missouri, Kansas & Texas Railway was not embraced in the Kansas cases, but there are no conditions peculiar to that system which would in any way modify the conclusions reached. The considerations which control the disposition of those cases must

govern the disposition of this, and we shall only apply those conclusions without repeating the discussion.

There is one difference between the cases. Export rates from Kansas had never been adjusted upon a group basis, and we declined, although requested by the complainant, to introduce this system. We did recognize the group principle in the small account made of distance. These rates from the northern portion of Oklahoma Territory have hitherto been made by the railways upon the group plan, and we are asked by the petitioner to retain that plan in whatever rates we may put in effect. Inasmuch as the group was originally established by the defendants and since the people of Oklahoma Territory through their authorities request us to retain that arrangement, we shall do so, although no very good reason appears for this.

As before stated, the rates complained of in this proceeding apply to the transportation of wheat and corn to Galveston, Tex., for export, from shipping points in Oklahoma Territory. The shipping points referred to are shown in the following table. In our opinion these rates are excessive and unreasonable. We are also of the opinion that rates for such transportation greater than those shown in the table referred to would be unreasonable, and an order in accordance with the views herein expressed will therefore be made and served upon the defendant carriers.

Rates on wheat and corn, C. L., in cents per 100 pounds, from stations on the Atchison, Topeka & Santa Fe Railway in Oklahoma Territory to Galveston, Tex., for export.