the empty cans without extra charge.
While in the past the carrying of
cream has been in the nature of sur-
plus transportation, requiring no addi-
tional employes or equipment, the busi-
ness has so developed as to make prob-
able the requirement of special equip-
ment in the future. Under the 33c
rate applying west of the Missouri
River the Burlington earned about 14c
per car mile as compared with about
19c per car mile paid to it under its
mail contracts with the Federal Gov-
ernment. Express rates are materially
higher than the rates under the 70c
scale attacked. Freight rates are lower
for shorter distances and somewhat
higher for long distances than the 33c
scale. They are lower for all distances
than the 70c scale. The service for
which these freight rates are charged,
however, is much less expensive than
the transportation of cream. HELD,
that rates must not be established so
low as to give the centralizers an un-
natural advantage over the local cream-
cries in territory suited to the latter;
that the 70c scale was unreasonable;
that a rate of 20c per 10-gallon can
for all distances up to and including
25 miles should be established; that be-
yond 25 miles the rates should increase
Ic for every 5 miles, up to and includ-
: ng 50 miles; that for the next 50
miles it should increase Ic for every
10 miles, and Ic for every 15 miles
thereafter; that on account of the
greater labor and smaller economy in
handling the 5 and 8 gallon cans, the
rates for 5 and 8 gallon cans should
be approximately 7-10 and 9-10, re-
spectively, of the rates for 10-gallon
cans. Beatrice Creamery Co. v. I. C.
R. R. Co., 15 I. C. C. 109, 124, 132.
112. Mine-Prop Logs.
(a) Rates charged for the trans-
portation of mine-prop logs from points
in North Carolina to Norfolk, Va., of
'"c and 3^c per 100 Ibs. were attacked
to the extent they exceeded the rates
on saw logs between the same points of
$2.50 per 1,000 board feet, minimum
carload 3,500 feet. The logs intended
for mine props are similar to those
intended for conversion into lumber
except that they are longer, but the
loading and unloading are done by the
shippers in both cases. Logs intended
for mine props are handled on single
cars that must be switched out of a
train at the loading point, switched
into another train when loaded and
switched to the track of a connecting
carrier at destination, and are moved
on logging cars, while sawmill logs
generally move in solid trains, the only
service of the carrier in addition to
the road haul being the coupling and
uncoupling of the engine at the two
ends of the run. HELD, the fact that
certain traffic is hauled in trainload
lots while complainant's traffic moves
in carloads cannot be made the basis
of a difference in rates. The char-
acter of the equipment used is in the
discretion and for the convenience of
the carrier, and the conditions surround-
REASONABLENESS OF RATES, 113 (a) 116 (a)
677
ing the transportation of mine props
are not so dissimilar as to justify a
higher charge thereon. Defendant's
rates for the transportation of saw
logs in this territory having proven to
be reasonable and compensatory, it is
ordered to maintain the same rate
on mine props as is contemporaneously
applied on saw logs. Reparation award-
ed. Rickards v. A. C. L. R. R. Co.,
23 I. C. C. 239.
113. Mohair.
(a) Mohair is prepared for shipment
like wool in both sacks and bales. It
loads somewhat heavier than wool.
The physical incidents of its trans-
portation are almost exactly the same
as with wool. Its value is somewhat
greater than that of wool in the grease,
in those regions where mohair is
produced, although the lower grades of
mohair do not sell for as much as the
higher grades of wool. HELD, there
is no reason why mohair should be re-
quired to pay a higher rate of trans-
portation than wool. The rates pre-
scribed in the Wool case, 23 I. C. C.
151, for the transportation of wool from
western territory to eastern destinations
should not be exceeded for the trans-
portation of mohair, which should be
classified as second class in less than
carloads, and as fourth class in car-
loads, with a minimum of 24,000 Ibs.
for a standard 36-foot car and an in-
crease for larger cars. National Mo-
hair Growers' Ass'n v. A. T. & S. F.
Ry. Co., 23 I. C. C. 180, 181.
114. Motorcycles.
(a) Complainants attacked the less-
than-carload rate of $6 per 100 Ibs. on
motorcycles, crated, from Springfield,
Mass., Hammondsport and Angola, N
Y., Reading, Pa., Geneseo, Chicago and
Aurora, 111., 'Milwaukee, Wis., Minneap-
olis, Minn., and San Francisco and
other Pacific coast terminals. Motorcy-
cles crated weigh from 225 to 250 Ibs.
and bicycles 40 to 50 Ibs. Motorcycles
occupy a space 7 feet long, 3 feet
high, 9 inches wide; bicycles, a space
6 feet long, 3 feet high, and 7 inches
wide. Motorcycles vary in price from
$150 to $225; bicycles from $30 to $50.
The profit on motorcycles ranges from
$10 to $50; that on bicycles from $5 to
$10. Formerly the movement of bi-
cycles was in excess of that of motor-
cycles, but recently the movement of
motorcycles has equaled or exceeded
that of bicycles. The less-than-carload
rate on bicycles, crated, was $4.50;
completely boxed, $3. GO. Subsequent
to the shipment in question the car-
load rate on motorcycles was made
$4; that on bicycles was at the time of
the shipment and at the time of the
hearing $2.50. The contention of de-
fendants that the rates on motorcycles
and bicycles were both induced by
water competition was not sustained
by evidence. HELD, while it was not
necessary that there should be an un-
varying relation between rates on mo-
torcycles and bicycles packed in the
same manner, under the evidence pre-
sented the rate attacked was unreason-
able to the extent it exceeded one and
one-half times the first-class rate on
motorcycles, less-than-carload, boxed or
crated, between the points in question.
Reparation denied. Rose v. Boston &
Albany R. R. Co., 18 I. C. C. 427, 429.
(b) Commission held motorcycle rates
should not exceed first-class rate on car-
loads and one and a half times the first
class on less than carloads. Carrier put
in effect commodity rates equal to such
reduction, and subsequently Commission
reduced class rates. Reparation awarded
on basis of subsequent reduction. Mead
Auto Cycle Co. v. W. R. R. Co., Unrep.
Op. 435; Whiting v. C. B. & Q. R. R. Co.,
Unrep. Op. 436.
115. Mussel Shells.
(a) Complainant was assessed a rate
of 17c on carloads of mussel shells
Prom Terre Haute, Incl., to Davenport. la.,
such rate being the sixth-class rate law-
fully applicable. Shortly after the ship-
ment defendants established a joint
through commodity rate of 15c and ad-
mitted the 17c rate to be unreasonable.
HELD, the rate assessed was excess-
ive. Reparation awarded. Davenport
Pearl Button Co. v. C. B. & Q. R. R.
Co., 17 I. C. C. 193, 194.
. Newspaper.
(a) On carloads of newspaper
shipped in the summer of 1907 from
Grand Mere, Quebec, to San Francisco,
Gal., complainant was assessed 90c, the
rate applicable by the route of move-
ment. The shipments, with one excep-
tion, were routed by the shipper via
the C. P. Ry., Wabash R. R., C. B. &
Q. R. R. and lines beyond. One car-
load was routed via C. P. Ry., Wabash
678
REASONABLENESS OF RATES, 117 (a) 118 (a)
R. R., C. & N. W. Ry. and lines beyond.
At the time of movement a rate of 75c
was in effect from Grand Mere to San
Francisco, through Chicago. The Wa-
bash R. R. carried the shipments from
Detroit via its East Hannibal gateway
and delivered the same to the C. B.
& Q. R. R. at Kansas City, except one
carload, which was delivered to the
M. P. Ry. at Kansas City. Effective
Jan. 28, 1908, a 75c rate was made ap-
plicable via all routes. Such rate was
canceled Jan. 1, 1909, but re-established
June 5, 1909. Had the Wabash R. R.
routed the same by the Chicago gate-
way, the rate would have been 75c.
HELD, the charges assessed were un-
reasonable. Reparation awarded on the
basis of 75c, declared to be a reason-
able rate for the future. Williar v C.
N. Q. Ry. Co., 17 I. C. C. 304.
117. Oil.
(a) On carloads of fuel oil from
Sapulpa, Okla., to Acme, Tex., rates of
19c and 22%c per 100 Ibs., prior to
July 26, 1909, were charged, at which
time they were reduced to 15c. Com-
plainant sought reparation, on the basis
that the rates charged on shipments
were unreasonable to the extent that
they exceeded 15c. The record indi-
cated that the establishment of the 15c
rate resulted from competition condi-
tions due to the oil fields in Texas.
HELD, that complainant be granted rep-
aration for the charges over 15c, and
that the present rate be continued.
Acme Cement Plaster Co. v. St. L. &
S. F. R. R. Co., 22 I. C. C. 283.
(b) On crude petroleum oil shipped
from Sapulpa, Okla., to Humboldt, Kan.,
in carload lots, complainant was charged
a rate of 36c per 100 Ibs., the routing
being "Frisco & M. K. & T., Vinita."
The rate from Sapulpa to Kansas City
through Vinita was only 13c. Within
two months after the shipment the rate
was reduced to 16c. HELD, the rat*
of 36c was unreasonable to the extent
that it exceeded the present interme-
diate rate of IGc. Reparation awarded.
Humboldt Refining Co. v. M. K. & T.
Ry. Co., 22 I. C. C. 363.
(c) On carloads of petroleum oil
from Stanards, N. Y., to Struthers, Pa.,
a rate of lOc was collected, the dis-
tance being 180 miles. At the time of
shipments a rate of S^c was in effect
from Stanards to Warren, Pa., and to
other points in Pennsylvania and Ohio
distant from Stanards from 119 to 247
miles. Warren is iy 2 miles from
Struthers. The shipments moved via
Keating Summit, Pa., while the 8^c
rate to Warren was applicable via Buf-
falo and Wellsville, N. Y. Shortly after
shipments moved the 8^c rate was
made applicable from Stanards to
Struthers via Keating Summit, and at
the time of the hearing had been vol-
untarily maintained for more than four
months. HELD, that testing the rate
attacked by the rate on the same or
adjacent lines in the immediate terri-
tory, under the same conditions, the
rate complained of was unreasonable
to the extent that it exceeded S^c. Clark
Co. v. Buffalo & Susquehanna Ry. Co.,
18 I. C. C. 380, 381.
(d) On carloads of redistilled press
oil from Edgewater, N. J., to Struthers,
Pa., a local rate of 4c, Edgewater to
Bergen Junction, and a joint rate of
18c thence to destination was exacted,
no through rate being in effect. The
Struthers to Edgewater rate was 16^0.
There was no regular movement of oil
from coast points to the West, the
movement in question being accidental
on account of fire. Some two years
after the movement defendants volun-
tarily established the 16^c rate from
Edgewater to Struthers. HELD, the
rate charged was not shown to be ex-
cessive. The fact that the eastbound
rate was lower than the westbound did
not prove the latter to be unreasonable.
Wilburine O T 1 Worlds, Ltd., v. Penn. R. R.
Co., 18 I. C. C. 548, 549.
(e) Since the Commission in Mar-
shall Oil Co. v. C. & X. W. Ry. Co.. 14
I. C. C. 210, refusing to apply fourth-
class rates on oil in less than carloads,
it appeared that almost all the lines
on shipments from Minneapolis and St.
Paul to stations in South Dakota vol-
untarily applied the fourth-class rates,
such rates being apparently compensa-
tory. HELD, the third-class rates on
illuminating oils and gasoline were
unreasonable and the fourth-class rates
should be applied. Bartles Oil Co. v.
C. M. & St. P. Ry. Co., 17 I. C. C. 146,
148.
118. Packing-House Products, Meats.
(a) The rate on fresh meats and
packing-house products from Wichita,
Kan., to southeastern territory ought
REASONABLENESS OF RATES, 118 (b)
679
not to be advanced unless that from
Kansas City is also increased by a
corresponding amount. In Re Investi-
gation of Unreasonable Rates on Meats,
23 I. C. C. 656, 666.
(b) The rates involved in this pro-
ceeding were those, both relative and ab-
solute, upon live stock into, out of, and
through Ft. Worth, Tex., Oklahoma City,
Okla., and Wichita, Kan., as compared
with rates to Kansas City and to other
packing houses upon the Missouri River
and east; those on fresh meats and
packing-house products from Ft. Worth,
Oklahoma City and Wichita to all points
of consumption, and the rate on salt from
the Kansas field to Oklahoma City. The
raw material for the rival slaughtering
houses in these three cities was drawn to
a large extent from the same section in
the Southwest, and where the rate upon
the live animal to the point of slaughter,
added to the rate upon the product to
the consuming market, was less in case
of one city than another, the one en-
joying the more favorable rate had an
advantage. Ft, Worth drew the bulk
of its beef cattle from Texas upon rates
fixed by the Texas commission. Okla-
homa City and Wichita drew their sup-
plies largely from the same source in the
Southwest as Kansas City. It was gen-
erally agreed that rates from the more
distant points to Oklahoma City and
Wichita should be made less than cor-
responding rates to Kansas City, by a
fixed arbitrary. Live stock originating in
the eastern part of Texas reached Kansas
City largely through Ft. Worth or
through some junction east of Ft. Worth.
With respect to all such traffic, Okla-
homa City and Wichita both involved an
out-of-line haul, the distance from Ft.
Worth to Kansas City, via Wichita, be-
ing nearly one-fifth greater than that by
the short line. With respect to western
Texas, the completion of the Orient sys-
tem would make the short route, with re-
spect to all points upon it and many
points west of it. to Kansas City, through
Wichita. In case of considerable live-
stock territory, the short line to St. Louis
was through Oklahoma City. HELD, the
rates attacked from the live-stock pro-
ducing territory in New Mexico, Texas
and Cklahoma to Wichita, Oklahoma City
and Ft. Worth were unreasonable, and
new rates should be established on a
mileage basis; that with respect to joint
rates to these markets, the rate for live
stock for a two-line haul might properly
exceed that prescribed for a one-line haul
by 2y 2 c. New rates prescribed as speci-
fied by table in the opinion. LOCAL
RATES FOR THE HOME MARKET. It
was generally agreed that local rates on
tresh meats and packing-house products
from the slaughtering pofnts in question
should be established on a mileage scale.
On account of the moving of live stock
In very large quantities, rates upon live
stock to these slaughtering points had
been maintained at a somewhat lower
level than the rates obtaining in other
sections of the country where the move-
ment of live stock was much less, and
the general density of traffic much
greater. Upon the other hand, the tend-
ency had been to maintain somewhat
higher relative rates upon fresh meat and
packing-house products in this section
than in other portions of the country
where traffic was heavier and the general
level of rates lower. HELD, the local
rates attacked were unreasonable, and
a mileage scale should be applied as to
such rates for the home market between
all points in New Mexico, Texas, Okla-
homa, Arkansas, Missouri south of the
Missouri River, and Louisiana west of
the Mississippi River, but that on ac-
count of the danger of throwing the
slaughtering points in question out of
line with other competing localities, no
attempt would be made to readjust the
relation between the rates upon live ani-
mals and those upon the products. PRO-
PORTIONAL RATES TO DISTANT
MARKETS FROM FT. WORTH, WICHI-
TA AND OKLAHOMA CITY. The rates
involved were to (1) the Southeast, em-
bracing Alabama, G-eorgia and Florida;
(2) Carolina territory, including the two
Carolinas and the southern portion of
Virginia; (3) trunk line territory north
of the Potomac and Ohio rivers and east
of the Indiana-Illinois state line, includ-
ing the Virginia cities; (4) territory be-
tween the Illinois-Indiana state line and
the Mississippi River, designated as Illi-
nois territory. The rates to the first
three territories were constructed upon
St. Louis and the lower Mississippi cross-
ings by adding a proportional rate from
the packing house to the Mississippi
River and another rate from the Missis-
sippi River to destination. The rate from
the Mississippi River crossing to a given
destination was the same, irrespective
of the point at which the traffic origi-
nated, so that the only charges involved
were the proportional rates from the
680
REASONABLENESS OF RATES, 118 (b)
packing house to the Mississippi River
crossings. It was generally agreed that
the differences in distances up to the
Mississippi River should be considered
as fairly indicating proper differences in
the rates to be established. The dis-
tances from Wichita, Oklahoma City and
Ft. Worth to St. Louis and Memphis were,
from Wichita, 479 miles and 543 miles,
respectively; from Oklahoma City, 543
and 486 miles, respectively, and from Ft.
Worth, 720 and 539 miles, respectively.
The distance from Ft. Worth to Vicks-
burg was 393 miles. From Ft. Worth
business was handled for the Southeast
and for Carolina territory through Mem-
phis, Vicksburg and New Orleans, and
the rate appeared to be based sometimes
upon one crossing and sometimes upon
another. From Oklahoma City, traffic
moved mainly through Memphis to both
Carolina territory and the Southeast.
From Wichita, Carolina territory was also
reached through Memphis. While busi-
ness to trunk line territory was worked
by southern lines through Memphis, and
perhaps through Vicksburg, the rate
made in all cases was made through St.
Louis. The distance from Ft. Worth and
from Oklahoma City to Carolina terri-
tory was substantially the same, and it
was agreed that rates from both these
points should be identical. With respect
to Southeast territory, Ft. Worth had an
advantage over Oklahoma City in dis-
tance to the extent that its mileage to
Vicksburg was less than from Oklahoma
City to Memphis. The rates attacked
from Wichita to both Carolina territory
and the Southeast were iy 2 c higher the
those from Oklahoma City. While the
short-line distance from Ft. Worth was
through Vicksburg and that from Okla-
homa City through Memphis, the tariffs
attacked indicated that lines leading
from these two points of production do-
sired to handle business through those
gateways, and also through New Orleans,
with the result that the long line would
simply be meeting the short-line rate.
The rates attacked upon both fresh meat
and packing-house products from Wichita
to St. Louis were 24 1 /c. From Oklahoma
City to St. Louis the proportional rates
were, upon packing-house products 28 %.c,
upon dressed meat 31%c, equivalent to a
differential above Wichita of 4%c upon
packing-house products and 7c upon fresh
meat. Rates from Ft. Worth to St. Louis
were 32 %c on packing-house products
and 35^c upon fresh meat, a differential
of 4c upon both packing-house products
and fresh meat in favor of Oklahoma
City. While, therefore, the distance from
Oklahoma City to St. Louis was but 64
miles greater than from Wichita to St.
Louis, its rate increased by 4 1 / 4c and
7c, while for an increase in distance
amounting to 177 miles from Ft. Worth
to St. Louis, as compared with Oklahoma
City to St. Louis, the rate increased but
Ic in case of both fresh meats and pack-
ing-house products. Wichita contended
that, while 24^ c might be a reasonable
local rate to St. Louis, it was excessive
as a proportional rate applied to busi-
ness for beyond. The mileage scale
adopted in the opinion would justify a
rate of 44c upon packing-house products
and 53c upon fresh meats, and, excluding
competitive conditions, nothing war-
ranted the imposing of as low a rate as
24%c from Wichita to St. Louis. With
respect to the rate to Illinois territory,
including the rate to Kansas City, it ap-
peared that the rate attacked from Okla-
homa City to St. Louis and Chicago upon
fresh meat and packing-house products
was 53c; from Ft. Worth, 57c; from
Wichita to Chicago, 29%c. Oklahoma
Interests insisted that this adjustment
constituted a gross discrimination against
Oklahoma City. The Chicago rate from
Wichita was constructed by adding 5c
to the St. Louis rate, and this was done
to allow lines leading from Kansas City
through St. Louis to Chicago to com-
pete for the business. The short-line
distance from Oklahoma City to Chicago
is 791 miles, and from Ft. Worth, 945
miles. Under the mileage scale adopted
in the opinion, the rates from Oklahoma
City would be 62c upon packing-house
products and 74c upon fresh meat. The
live-stock rate attacked from Oklahoma
City to Chicago was 44 %c, and from Ft.
Worth, 49%c. The rate attacked from
Wichita to Kansas City was I2c upon
packing-house products, and 16%c upon
fresh meat; that from Oklahoma Citv to
Kansas City was 53c upon both fresh
meat and packing-house products, and
from Ft. Worth, 60c. The distances from
Wichita, Oklahoma City and Ft. Worth
to Kansas City are 208, 243 and 508
miles, respectively. HELD, adopting
the mileage scale, Fort Worth was en-
titled to a proportional rate upon busi-
ness for the Southeast 3c lower upon
both packing-house products and fresh
meats than the rate in effect from Okla-
homa City; that for a like reason the
REASONABLENESS OF RATES, 118- (c) (e)
681
rates from Wichita to both Carolina terri-
tory and the Southeast, which under the
adjustment attacked were l l / 2 c higher
than those from Oklahoma City, should
be made 2 l / 2 c higher on both packing-
house products and fresh meat; that pro-
portional rates from Oklahoma City,
when for the Southeast, should be 3c
higher through the gateways of Vicks-
burg, Memphis and New Orleans than
corresponding rates from Ft. Worth; that
the rate to St. Louis for beyond should
be 3c higher from Oklahoma City than
from Wichita upon packing-house prod-
ucts and 4c upon fresh meats, and the
rate upon packing-house products from
Ft. Worth should exceed that from Okla-
homa City by S^c, and upon fresh meats
by 7c; that the rate of 24^c from Wichita
to St. Louis for beyond was not excess-
ive; that, while a rate of 53c upon both
packing-house products and fresh meat
from Oklahoma City to St. Louis and
Chicago was not excessive in itself, it
was unduly discriminatory, as compared
with the 29^c rate in effect from
Wichita; that the rate from Wichita to
Kansas City of 12c upon packing-house
products and 16 %c upon fresh meats,
the rate from Oklahoma City to Kansas
City of 53c, and the rate from Ft. Worth
to Kansas City of 60c resulted in undue
discrimination in favor of Wichita, and
the rate from Oklahoma City ought not
to exceed by more than 40 per cent that
from Wichita, and the rate from Ft.
Worth ought not to exceed that from
Wichita by more than 75 per cent; that
the rates to Illinois territory should be
constructed by adding to the trunk line
proportional to St. Louis the local rate
from St. Louis to destination; that the
rates from Oklahoma City and Ft. Worth
to St. Paul, Omaha and Duluth, as com-
pared with similar rates from Wichita,
unduly discriminated in favor of Wichita
and should be readjusted so as to bring
them in accord with the rates prescribed
for Kansas City and Chicago, and that
whatever transit privileges were ac-
corded to one of the slaughtering points
in question -should be extended to the
others, where the circumstances and con-
ditions were the same. RATES ON
SALT FROM THE KANSAS FIELDS TO
OKLAHOMA CITY. The average dis-
tance involved was 200 miles; the rate
attacked, 15c in carloads. The same
carriers leading from the Kansas field
to the Missouri River established rates
of lOc on salt for distances of from 200
to 275 miles, but these latter rates were
made to meet the competition of salt
produced in the Michigan field. HELD,
the 15c rate attacked was unreasonable,
and a rate not exceeding 12c, carload
minimum 40,000 Ibs., should be estab-
lished on bulk salt from the Kansas field
to Oklahoma City. In Re Unreasonable
Rates on Meats, 22 I. C. C. 160, 165, 166,
168-174, 175.
(c) On packing-house products and
fresh meats in carloads from Houston,
Tex., to Lake Charles, La., a charge of
32c and 35c, respectively, was exacted.
On the same products from Ft. Worth,
Tex., to Lake Charles, a distance of 405
miles, as compared with 144 miles from