waste procured from other mills, as thread waste, knots, defective thread yarns, and thread ends partially manufactured-refuse accumulated in cotton factories. The bales are compressed by machinery. Sometimes they weigh 125 pounds, but those which weigh five to six hundred pounds measure about 50 cubic feet, thus approaching the density of the flat cotton bale. The classification of July 10, 1882, placed cotton waste in sixth class, where it remained for more than twelve years, until November 1, 1894, since which time it has been fifth class, but during part of that time, as now, it was carried at a commodity rate. Since March 10, 1900, the rate has been 41 cents on both cotton waste and cotton goods. Prior to February 22, 1880, no northbound rates were published, but on an occasional shipment moving north, southbound rates were applied in the absence of commodity rates, but since then separate tariffs apply in each direction. As shown by the records of the Commission, the classification of cotton waste in bales has been as follows: From April 1, 1887, to November 1, 1894, sixth class. Since the latter date it has been fifth class. The value of cotton goods is about $20 per 100 pounds, but cotton waste averages only one-fourth as much, or $5 per 100. Cotton goods, being easily damaged, are handled by hand or trucks, without hooks, necessitating much extra labor. It also requires clean and dry floors, free from nails, bolts, and other projections. Cotton waste does not require such care and labor, nor does its transportation involve the same degree of risk and expense. Insurance, depending somewhat on value and liability to injury, is 3 cents per 100 pounds on the goods and one-quarter of 1 per cent on waste, or, on the $5 per 100 valuation, 1 cents-less than half as much as on cotton goods. Cotton waste, baled, has a lower classification than cotton goods everywhere in the United States. In Official Classification Territory waste is fourth class and cotton goods 15 per cent less than second class. In Western Classification Territory waste is third class, less than carloads; fourth class, carloads, and cotton goods, first class. In Southern Classification Territory cotton goods are fourth class and waste fifth class. Waste has a lower rate than cotton goods in Official Classification Territory. From New York to Chicago cotton goods are 55 cents and waste 35 cents. Cotton waste has a lower rate in Western Classification Territory, as from Chicago to Denver the rate on cotton goods is $1.30 per 100 pounds and on cotton waste, baled, 97 cents. It has a lower rate in eastern territory, as from Nashua, N. H., to New York the cotton-goods rate is 19 cents and waste is 17 cents. In Southern Classification Terri tory, westbound, as from Augusta to Galveston, cotton goods are $1.48 and cotton waste $1.01. Waste had a lower rate for many years from Augusta to New York than cotton goods, and it is of comparatively recent date that the two were given a like commodity rate between these points. Cotton has a value two and one-half times that of waste, but takes a lower rate from Augusta to New York. With the existing classification rates applied to both cotton goods, fourth class, 58 cents, sea and rail, and cotton waste, baled, fifth class, 47 cents, between Augusta and New York, there would be a difference of 11 cents per 100 pounds in favor of the waste. Owing to the greater density of cotton goods there is a possibility of heavier loading and greater revenue in its transportation than in the transportation of baled waste. Notwithstanding this, the carload minimums are the same. All the reasons urged in favor of considering a rate of 41 cents on cotton goods from Augusta, Ga., to New York as reasonable, in the preceding case of the Warren Manufacturing Co. et al. v. Southern Railway Co. et al., 12 I. C. C. Rep., 381, are quite as potent in condemning the same rate as unreasonable when applied on cotton waste baled. Taking all the circumstances and conditions of this transportation into consideration, it is the opinion of the Commission that upon two classes of freight so unequal in value and in the cost of handling-differences fully recognized in the classifications and rates obtaining generally throughout the country-the exaction of the same rate on both commodities is unreasonable and discriminatory, and that no higher rate from Augusta, Ga., to New York, N. Y., sea and rail, than 35 cents per 100 pounds is justified upon baled cotton waste. An order will be entered in accordance with these conclusions. The facts appearing in this case do not in our judgment justify an order for reparation. 12 I. C. C. Rep. No. 774. JAS. L. QUIMBY; HAHN BROS., A FIRM COMPOSED OF F. W. & FRED HAHN; HAHN & SCHRODER, A FIRM COMPOSED OF H. C. HAHN & H. N. SCHRODER; W. J. PLATT & COMPANY, A FIRM COMPOSED OF W. J. PLATT & H. E. VINCENT; AIKEN CLOTHING & SHOE COMPANY, J. P. MCHAIR, PROPRIETOR; RIVES & EUBANKS, A FIRM COMPOSED OF E. S. RIVES & I. N. EUBANKS; J. M. FERRELL; WILLIAM MORRISON; SIMON BROWN'S SONS, A FIRM COMPOSED OF HERMAN BROWN & ISADORE BROWN; N. BLATT; JOHN O'GORMAN, AND J. F. MORRIS v. CLYDE STEAMSHIP COMPANY; OLD DOMINION STEAM- WESTERN Submitted April 30, 1907. Decided July 11, 1907. It appears that class rates from north Atlantic ports were the same to a group of suburban mills as to Augusta, Georgia, for ten or twelve years before the absorption of the South Carolina and Georgia Railroad by the Southern Railway Company; that subsequent to such absorption the longexisting rates to these suburban points were increased by the concerted action of the defendant carriers, though the mill group is still recognized on shipments in the opposite direction, and that this grouping system is still effective to the extent of classing together some of these suburban points which are as far apart as Augusta is from the nearest. It also appears that water lines by way of the Savannah River secure most of the freight of the heavy and bulky classes for these mills, and that a restoration of the Augusta rates to these suburban points would divert much of this traffic to the defendant lines and thus increase their revenues; Held, That the rates to these suburban mill points in excess of those to Augusta are, under the circumstances, unjust and unreasonable. R. J. Southall for complainants. Ed. Baxter, Claudian B. Northrop, and S. F. Andrews for defendants. REPORT OF THE COMMISSION. CLEMENTS, Commissioner: The complainants are merchants and dealers engaged in business in the cities of Aiken, Graniteville, Langley, and Blackville, South Carolina. They complain that the established rates of the defendant carriers for the transportation of freight included in the numbered classes, 1 to 6, both inclusive, from Boston, Mass., Providence, R. I., New York, N. Y., Philadelphia, Pa., and Baltimore, Md., to Aiken, Langley, Graniteville, and Blackville were advanced as hereinafter stated, are to that extent unjust and unreasonable, and that they are also discriminatory. They ask that the defendants be required to cease and desist from these alleged violations of the act. The complaint was filed in the latter part of 1904. Hearing was had thereon in 1905 and 1906 and the case was submitted, but on January 9, 1907, before the same was disposed of, an order was entered by the Commission on motion of complainants reopening the proceedings with leave to the complainants to file an amended petition, and under agreement of counsel the testimony taken upon the original petition is to be considered herein. In the original petition there was a prayer for reparation which was abandoned on the hearing under the original complaint on account of the relatively small individual accounts involved and the lack of the necessary freight bills and vouchers. In the amended petition more recently filed there is no prayer for reparation but only for correction of the unreasonable rates and unjust discriminations complained of. On the general facts there was no substantial variance. The Southern Railway Company admitted control of the South Carolina & Georgia Railroad after May 18, 1899, as hereinafter stated, and the subsequent increase of class rates involved over those previously in effect. The sole issue is whether the defendants are justified in such increases by the circumstances and conditions under which said traffic is transported. The routes over which such shipments might be made are from Boston and Providence by the Merchants and Miners' Transportation Co., from Philadelphia by the Clyde Steamship Co., from New York by the Old Dominion Steamship Co., and from Baltimore by the Baltimore Steam Packet Co. to Norfolk, whence the traffic is carried by the Southern Railway Co., the Atlantic Coast Line, or by the Seaboard Air Line in conjunction with the Southern Railway, to destination. From Boston and New York the Clyde Steamship Co. is the initial carrier to Charleston, whence the traffic is transported by the Southern Railway to the points named, or by the Atlantic Coast Line and Charleston & Western Carolina to Augusta and thence to the said South Carolina points. By certain of the routes named traffic destined to Augusta passes through some of the points, the rates to which are in issue. The history of the rates is not in dispute. For a decade before the lease hereinafter referred to was consummated the rates from the eastern ports, Boston, Providence, New York, and Philadelphia, to Langley, Graniteville, and Aiken were the same as the rates to Augusta-that is, of the numbered classes, as follows: There is no complaint of the existing differentials from the various ports or points of origin, and therefore to simplify consideration only the rates from New York will be used in illustration. June 5, 1899, little more than a month after the Southern Railway came into control of the South Carolina & Georgia Railroad, the rates were increased to Langley, Graniteville, and Aiken from those above shown and further changes made, as follows: The above rates of September 1, 1899, were in force at the date of complaint, and are still in effect. These rates are more than 11 per cent higher from New York and Philadelphia than those which prevailed for ten years while the South Carolina points above named were included in the Augusta group. The South Carolina & Georgia Railroad, extending from Charleston, S. C., to Augusta, Ga., and running through Blackville, Aiken, Graniteville, and Langley, competed for the traffic at all these points. About May 1, 1889, its control passed by lease to the Southern Railway Company. Previous to this time Aiken, Graniteville, and Langley were included in the Augusta group, and as far back as the records of the Commission extend (at least eleven years before the said lease was executed) these towns enjoyed the Augusta rates. This |