From Hanna. To all open stations on main line between Smeed and Omaha. To all open stations on main line between Smeed and North Platte.. To all open stations on main line between Smeed and Grand Island. To all open stations between Cheyenne and Denver..... To all open stations between Denver and Kansas state line.. To all open stations on main line in Kansas between Colorado state line and Mills. 9.3 13.6 11.8 6.6 5.2 5.27 Complainant, for purposes of comparison, showed that anthracite coal is carried from Chicago to Omaha, a distance of 492 miles, for $2.10 per ton, or a rate per ton per mile of 4.27 mills. Anthracite coal is also carried from Duluth to Omaha, a distance of 528 miles, for $2.10 per ton, or at a rate per ton per mile of 3.98 mills. The Chicago, Rock Island & Pacific Railway Company names a rate of $2.50 per ton on lump coal from Roswell, Colo., to Omaha, a distance of 579 miles, which rate yields a revenue of 4.3 mills per ton per mile. It was also shown that in 1902 the defendant published and for some time maintained a rate of $3.50 per ton on lump coal from Rock Spring to Omaha, this rate, however, being restricted to 10-car lots. On March 29, 1907, effective May 1, 1907, defendant published a tariff quoting a rate of $3.75 on lump coal in 10-car lots from Rock Springs to Omaha, and also a rate of $3.25 on 10-car lots from Hanna to Omaha. By another tariff on the same date, a rate of $3.90 from Rock Springs, and of $3.40 from Hanna, was made on 10-car lots to Lincoln and Fremont, Nebr., with the privilege of dividing a shipment between the two cities. These rates were all canceled on June 30, 1907. The 10-car rates to Omaha afforded a revenue of 4.6 mills per ton per mile and 5 mills per ton per mile, respectively. Concerning these 10-car lot rates it was testified by the general freight agent of the defendant that they were made for the purpose of "dumping" coal during a time of overproduction at the mines. These rates had the result desired, and practically all the wholesale dealers in Omaha took advantage of them. It appears that these rates were restricted to 10-car shipments for the reason that defendant desired to confine their application to the territory where competition was strongest, viz, the Missouri River. From a statement filed by the defendant it appears that the entire number of cars of bituminous coal handled by it in Nebraska during 1907 was 6.001. Of this number 2,421 were from Rock Springs and 987 from Hanna. The statement shows that during 1907 the defendant delivered to the stations on the main line in western Nebraska, to and including Kearney, a station 196 miles west of Omaha, 714 cars of coal from Rock Springs, 173 from Hanna, and 166 from other points, as follows: The evidence shows that coal shipments from Rock Springs and Hanna, destined to Colorado, Kansas, and Wyoming points south of Cheyenne, leave the main line of the Union Pacific Railroad at Cheyenne. It also appears that the grades from Cheyenne to Nebraska points are much easier than the grades from Cheyenne to Denver, Colo., and thence to Kansas points. For instance, the working time-cards of the Union Pacific filed by defendant with the Nebraska State Railway Commission show that an engine with a 20-inch cylinder and a 28-inch stroke is estimated to be able, under normal conditions, to haul the following loads from Cheyenne eastward to Omaha: As compared with this, the tonnage capacity of the same engine, under the same conditions, from Cheyenne to southern Wyoming, Colorado, and Kansas points is given by these same time-cards as follows: Cheyenne to Carr, Wyo., on a slow train..... Carr, Wyo., to Denver, on a slow train.. Salina, Kans., to Kansas City. Tons. 500 400 1,500 1,000 850 1,000 1,300 800 2,300 The haul from the mines into Cheyenne is likewise more difficult and expensive than the haul eastward from Cheyenne to and through Nebraska. The entire mileage of the defendant company is 3,031.41, of which 983.48 miles are within the state of Nebraska. The number of tons of freight handled by the Union Pacific Company during the year ending June 30, 1907, was 8,830,686. Of this tonnage, it handled on its Nebraska lines 4,258,938 tons. It was also shown that the average number of freight cars hauled per train mile in Nebraska is 35.06, while the average number of cars per train mile over the system is 31.02. The number of loaded freight cars hauled per train mile in Nebraska is 26.58, as against 23.30 over the entire line. The net income of the Union Pacific system for the last fiscal year was $19,678,798.80. Defendant's explanation of the existence of blanket rates for all Nebraska points on coal transported from Rock Springs and Hanna, as given by its general freight agent, is as follows: That rate was established from Rock Springs and Omaha for the purpose of marketing that coal at a rate that would at least let us in without loss as against the coal that comes from the east and south. Had it not been for the competitive conditions that obtained at Omaha, I have no doubt that the Rock Springs and Hanna rates to Omaha would have been higher than they were when they were originally established. Having established the rate to meet a competitive condition, it would naturally follow in the readjustment of rates to the intermediate points that that rate should blanket back to cover the intermediate territory where the competition decreases as you go west. Being asked why the rates were not made on the same plan for Kansas points, the general freight agent replied that— the making of rates for Kansas points was more for the purpose of affording dumping ground for the Wyoming coal when there was a surplus than with any particular hope of carrying a particular tonnage to that state. It was also testified that conditions in Kansas are different from those in Nebraska, Kansas being a producer of coal at some points. It was testified by the freight traffic manager of defendant that the rates from Rock Springs and Hanna to Omaha are fair to the carrier and to the public. Being asked: Do you regard the rate of $4.50 from Rock Springs to towns in the western part of the state of Nebraska as a fair rate? The freight traffic manager replied: If there was any considerable movement of business that would not be the rate. With a larger tonnage the rate would have been reduced a long time ago. Defendant also showed that it had made emergency rates on coal from the Missouri River to the west in order to relieve the coal famine which threatened in the winter of 1906-7. It also showed that it had purchased much coal from mines east of the Missouri River and had stored as much as 7,050 tons as far west as Cheyenne, Wyo., hauling engine coal even as far west as Green River, Wyo. Formerly the Union Pacific used a far larger percentage of Rock Springs and Hanna coal for its engines than it does to-day. Defendant also showed that there was last year a shortage of coal in the country west of these Wyoming mines. The explanation of the purpose of this testimony was that it was offered upon the theory that as the coal is needed in the country west of Nebraska a lower rate should not be made for its transportation to Nebraska points. The testimony shows the rate on pea coal from Rock Springs to Omaha to be $3.50 per ton; while from Hanna to Omaha the rate is $3 per ton. The testimony also shows that the rate to Omaha from Rock Springs on slack coal is $3.25 per ton, while from Hanna it is $2.75 per ton. An examination of the tariffs on file with the Commission shows that the rate of $3.50 per ton on pea coal and of $3.25 per ton on slack coal from Rock Springs applies to all stations on the main line of the Union Pacific from Omaha to Mercer, both points included, Mercer being 41 miles west of Omaha and 768.2 miles east of Rock Springs. This rate also applies to all branch line stations. From Rock Springs to all stations on the main line in Nebraska, west of Mercer, the rates are: Pea coal, $3.25; slack coal, $3. From Hanna to Omaha the rates are: Pea coal, $3; slack coal, $2.75. These rates apply to all stations on the main line east of Kearney (613.2 miles from Rock Springs and 196 miles from Omaha). Kearney and all Nebraska points west thereof on the main line pay a rate of $2.50 per ton on pea coal, and $2.25 per ton on slack coal for the haul from Hanna. These rates upon pea coal and slack coal, however, were but incidentally referred to in the complaint, were not mentioned in the answer and were treated but superficially in the testimony and argument. They are made up on a different basis from that underlying the lump-coal rates. Instead of one zone for the entire state there. are two zones from Rock Springs, with the boundary between these two zones just east of Fremont, and two entirely different zones from Hanna, with the boundary between them just east of Kearney. As the conditions affecting these rates have not been developed to the Commission, no order will be here made concerning them. It will be noted, however, that the lump-coal rates named by the order here are less to Sidney and points west thereof in Nebraska than the present published pea-coal and slack-coal rates. This relation of rates can not be allowed. The conditions which, in our opinion, warrant the reduction upon lump coal to the western part of Nebraska apply also to the rates upon pea coal and slack coal wherever our order may result in leaving such rates equal to or higher than the rates upon lump coal. It is expected that the defendant will make a reasonable difference between these rates and the lump-coal rates. If it should not do so, however, complainant may bring the matter before the Commission by supplemental complaint herein or by a new complaint, as it may be advised. We are not convinced that the rates on lump coal of $4.50 from Rock Springs to Omaha and of $3.50 from Hanna to Omaha are excessive. It is apparent from the testimony, however, that the rates on lump coal from Rock Springs and Hanna, Wyo., to points on the line of defendant as far east as Grand Island, Nebr., are unjust and excessive and should be reduced. Moreover, it appears that no justification exists for the maintenance of a blanket rate on lump coal to all points in Nebraska. It is also apparent that the fact that there is competition for the purchase of this coal between Nebraska communities and communities in Wyoming and Utah is no justification whatever for allowing this carrier to charge more than a reasonable rate for the transportation of such coal as the Nebraska people may succeed in buying Under the present system of rate making the greatest injustice is done to the Nebraska towns nearest the Wyoming line. The difference between the rates on this coal to Cheyenne and the rates to towns just east of Cheyenne is great, and this difference is wholly unexplained. For instance, the rate of $2.30 per ton on lump coal from Rock Springs to Cheyenne (or $0.00785 per ton per mile), being voluntarily established by the defendant, must be taken to be compensatory for the haul of 293 miles to that place, which is shown to be more difficult and more expensive per mile than any part of the haul between Cheyenne and Omaha. The presumption that this rate to Cheyenne is compensatory is made still stronger by the fact that the defendant makes the same rate of $2.30 per ton to Denver, which is 107 miles farther distant, or 400 miles from Rock Springs. The dis |