by fourth-section order no. her order or orders to be entered en held. No one appeared in Races will be stated in amounts per

Set as between the Atlantic and ne services on imported traffic of in central and western trunk-line and comprehensively described in 10 occasion to redescribe it here. ity rates on fertilizer and fertilizer i si are, within that adjustment. Nor ach progressively have occurred therein ...the fertilizer list be of any assistance in .....mation of the question here presented.

e concern is whether the rates at present ern ports to the affected destinations may er hauls of like traffic to intermediate points lawful discrimination or prejudice against nate localities or the shippers interested in

modity rates from Baltimore to the destination er consideration, generally set at 22.5 percent of which were prescribed at that level for transcal territory in the Eastern Fertilizer Cases, Nany of which, when established, were lower than then in effect from the southern ports to the same

part the import fertilizer and fertilizer-material e southern ports to the affected territories of destinatermediate points, have been, and at present remain, and at the level approved in Imported Fertilizer Ma92 L. C. C. 649. The exceptions were where lower rates arily maintained, with fourth-section relief, at intere points to meet competitive rates concurrently maintained more. Continuance of the competitive aspects of that nent necessitated a downward revision from the southern Shultaneously with the rate reductions from Baltimore which d from the findings in the Eastern Fertilizer Cases, supra. evision, however, was deferred because of the then pending ...y of much broader scope on the lawfulness of rates in Export ort Rates to and from Southern Ports, 205 I. C. C. 511.

-cal of which are Export and Import Rates, 169 I. C. C. 13, December 2, 1930; Erand Import Rates to and from Southern Ports, 205 I. C. C. 511, December 3, 1934, my desed. Fertilizer Materials, 161 I. C. C. 649, March 10, 1930.

• Svarth section order no. 10428.

219 I. C. C.

Eventually, on May 10, 1936, after authority had been granted December 27, 1935, temporarily to depart from the fourth section, the revision was made, thus restoring rates from the southern ports to a competitive basis with Baltimore in reaching central and western trunk-line territories. For example, on some of the articles within the fertilizer list, such as tankage and dried blood, the applicable rate from Baltimore to Chicago is shown of record to have been 39 cents June 20, 1934, and 31 cents subsequently thereto. From the Gulf ports to Chicago, as late as May 9, 1936, the applicable rate was 35 cents but, effective May 10, 1936, to meet the competition from Baltimore, it was reduced to 31 cents. Many like illustrations are included in the applicants' presentation.

The departures against which the applicants now have temporary relief, and for which they are here seeking continuing relief, may occur at intermediate points in southern and southwestern territories, at border points along the Ohio River such as Cairo, Ill., and Louisville, Ky., including points grouped therewith, and in western trunkline territory west of the Mississippi River where traffic may pass through higher-rated destination groups in reaching locations east of that river in lower-rated groups. For example, the applicable rate adjustment, as a whole, includes about 75 destination rate groups, 44 of which are east, and the remainder generally west, of the Mississippi River. Pivotal key points in the eastern groups, to which the rates from Baltimore are equalized from the south Atlantic and Gulf ports, are Indianapolis, Ind., and Chicago, Ill. Other more northerly groups east of the river, to which rates 1 to 3 cents higher than from Baltimore are maintained, include as key points Rockford, Ill., Milwaukee, Janesville, Madison, Sheboygan, Fond du Lac, Green Bay, and Appleton, Wis. The important key points west of the river include Des Moines, Mason City, and Fort Dodge, Iowa, and Rochester and Faribault, Minn., to which rates from the Gulf ports are not equalized with those concurrently maintained from Baltimore, but are somewhat higher, in no instance exceeding, however, the rates given approval in Imported Fertilizer Materials, supra, plus a handling charge of 50 cents per ton at the ports; the same basis being maintained, as maxima from the Gulf ports to St. Paul, Minneapolis and Duluth, Minn. To those same upper Mississippi River points, from the south Atlantic ports the rates are the same as those concurrently maintained from Baltimore. Thus, no departures will occur in central territory or in western trunk-line territory, excepting where movements may be over routes which pass through the higher-rated groups in reaching destinations in groups where the rates from Baltimore are equalized.

Higher rates maintained at intermediate points in southwestern territory do not exceed those prescribed as reasonable maxima in

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reans. La to Chummm nu er I He for 1 dance of 381⁄2 10 DE TE TRIA Tel. 3 # gente, while from New means Lilla IT and Walton, K. I mea more stessively 469. 779. and Bft mies ma Merely maintained a H A CL en fr éstances of 1,166 and 1 nie m Para. I and Madison, Wis. resperiment 18 esme aferrine May 19, 1938. are 31 ani te mas maltained from Houston to KTO Tu 10 intermediate to Peoria, Tad NT mies amki and 405 cents. In reaching Matson. Ts. sa mi ther Golf ports, like departures raj Mi soras vest of the Mississippi River in Iown und We inarier a carriers serving southern ports may compen 17- erumicie basis with carriers serving north Atlant purs mper mac to central and western trunk-line Tartires. yang mmpelled to unnecessarily sacrifice revenue & moærwe pune influenced by rates from north Atlantar pirts. m the long-and-short-haul provision of section 4 v The relief sought is found to be justified.

Applicants will be authorized to maintain the rates established em May 19, 1936, and also rates on crude nitrate of potash the same as on other articles in the fertilizer list, from southern parts bestinations in central and western trunk-line territories, made

relation to the rates from Baltimore as more particularly defined their application and exhibit 10 of the evidence of record, and to matain higher rates for shorter distances from the same ports to intermediate points on their established all-rail routes; provided. that the higher rates maintained to the intermediate points shall not be increased except on authority of this Commission, shall not exceed the lowest combinations of rates subject to the act, and provided further that the relief here granted shall not apply to rates over any route which yields earnings of less than 10 cents per car-mile for the distance over such route.

An appropriate order will be entered.

FOURTH SECTION APPLICATION No. 16189 1 IMPORTED VEGETABLE OILS FROM GULF AND EASTERN PORTS

Submitted May 29, 1936. Decided November 27, 1936

Authority granted, on conditions, to establish and maintain rates on vegetable oils and olive-oil foots, in tank-car loads, from New Orleans, La., and subports, to Cincinnati, Ohio, Louisville, Ky., Jeffersonville, Ind., East St. Louis, Ill., and St. Louis, Mo., and from north Atlantic ports to Cincinnati, Louisville, and Jeffersonville, without observing the long-and-shorthaul provision of section 4 of the Interstate Commerce Act.

William C. Burger, Lawrence Chaffee, J. P. Cook, R. J. Lehman,and W. J. Boewer for applicants.

M. C. Baker, C. D. Dooley, C. H. Meyer, and W. E. Willey for interested shippers.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, TATE, AND SPLAWN

BY DIVISION 2:

These applications present related issues, were heard together, and will be disposed of in one report.

By application no. 16189 as amended, carriers parties to Agent E. B. Boyd's tariff I. C. C. no. A-2151, and, by application no. 16247 as amended, carriers parties to Agent W. S. Curlett's tariff I. C. C. no. A-273, and Agent Frank Van Ummersen's tariff I. C. C. no. 260, ask for authority to establish and maintain import rates on vegetable oils from New Orleans, La., and other ports to certain destinations, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. A hearing was held and subsequently thereto relief was temporarily granted by fourth-section order no. 12349. Rates will be stated in amounts per 100 pounds and do not. include authorized emergency charges.

2

No. 16189.-Carriers parties to this application, hereinafter called the southern applicants, propose to establish a rate of 25 cents on various vegetable oils and on olive-oil foots, originating in all foreign countries, in tank-car loads, estimated weight 7.5 pounds per gallon, subject to rule 35 of the southern classification, from New

1

This report also embraces fourth-section application no. 16247, Imported Vegetable Oils from North Atlantic Ports.

*Chinawood, cocoanut, copra, palm, palm-nut or palm-kernel, peanut, perilla, sesame, soya-bean, and sunflower-seed oils.

Orleans and subports, including Good Hope, La., to the river ports of Cincinnati, Ohio, Louisville, Ky., Jeffersonville, Ind., East St. Louis, Ill., and St. Louis, Mo. The present rates from New Orleans are 27 cents on traffic which originates in Europe and Africa, and 30 cents on traffic which originates at other foreign points, to Cincinnati, Louisville, and Jeffersonville, except that to Cincinnati over the route of the Illinois Central Railroad Company and the Baltimore and Ohio Railroad Company the present rates are 46 and 49 cents from the respective origins just described. Where import rates are at present in effect to St. Louis they are 29.5 and 32.5 cents from the same origins respectively. No changes are proposed in the present rates to intermediate points, except in instances where the proposed rates to the above-named destinations, plus the local rates back to the intermediate points, are lower than the normal through rates to such intermediate points. Authority is also requested to enable these applicants to increase or reduce the proposed rates as future circumstances and conditions may warrant.

Under the proposed adjustment, destination departures will occur on both direct and indirect routes. The following examples are illustrative of such departures. From New Orleans to Cincinnati, 834 miles over the direct route composed of the lines of the New Orleans and Northeastern Railroad Company to Meridian, Miss., the Alabama Great Southern Railroad Company to Chattanooga, Tenn., and the Cincinnati, New Orleans and Texas Pacific Railway Company beyond, the proposed rate is 25 cents. Over this route departures will occur at Trussville, Ala., 368 miles, and Devon, Ky., 822 miles, and intermediate stations, to which points the present rates of 27 and 30 cents will apply on this traffic from the respective foreign origins as hereinbefore described. The proposed rate of 25 cents will be applied also over the indirect route of the Louisville and Nashville Railroad Company between New Orleans and Cincinnati, a distance of 917 miles. Over this route, departures, among others, will occur at Worthville, Ky., 861 miles, and Maurice, Ky., 909 miles, to which points proposed rates of 40 and 34 cents respectively will be applied.

3

The distances over the direct routes shown of record from New Orleans to the destinations here considered range from 697 to 834 miles. Over the indirect routes the distances range from 711 to 940 miles, or from 2 to 35 percent circuitous. For the distances shown above the proposed rate of 25 cents will yield from 5.3 to 7.2 mills per ton-mile, from 17.12 to 23.27 cents per car-mile, and $161.60 per

Combination rates composed of proposed rate to Cincinnati plus local rate back to intermediate point.