prior to the shipment, a rate of 13 2-3c
had been maintained. The 16c rate at-
tacked yielded 4 mills per ton mile.
HELD, the evidence was not sufficient to
show the rate attacked to be unreason-
able. Delray Salt Co. v. Detroit, Toledo
& Ironton Ry. Co., 18 I. C. C. 245, 246.

(b) On a carload of salt from Detroit,
Mich., to Patricksburg, Ind., a rate of
12 l-3c was charged. At time of ship-
ment a rate was in effect via another
route of 8 l-3c. Shortly after the ship-
ment moved, defendants published and
maintained a rate of 8 l-3c for several
months, when it was advanced to 10%c.
the present rate. Defendants conceded the
12 ^c rate to be unreasonable to the ex-
tent it exceeded lO^c. Complainant in
attacking the lO^c rate offered no evi-
dence except the lower rate of 8 l-3c via
another route. HELD, the 12 l-3c late
was unreasonable, but the lO^c rate was
not shown to be excessive. Reparation
awarded on the basis of lO^c. Delra v
Salt Co. v. M. C. R. R. Co., 18 T. 1 C.
247, 247.

(c) Complainant attacks the rates on
salt in carloads from Detroit, Mich., to
Buffalo, N. Y., of 8c per 100 Ibs., to New
York City of 17% c per 100 Ibs., and to
other seaport cities basing on the latter
point and taking the usual arbitraries
over or under that rate. Detroit salt
competed with that produced in other lo-
calities, and particularly in the East with
Ohio and New York salt, as well as with
the imported article. The selling price
of bulk salt on the warehouse floor at
Detroit was about $1.50 per ton, or 7%c
per 100 Ibs., and in packages loaded in a
railroad car, about lOc per 100 Ibs. or
$2 per ton. From June 1, 1903, to Nov.
1, 1907, the rate from Detroit to Buffalo
was lOc per 100 Ibs. Between the lat-
ter date and March, 1909, salt in bulk
took a rate of 5c, and in packages of
6%c. On March 1, 1909, the rate was
made 8c in packages or in bulk. Buffalo
is 251 miles east of Detroit. The former
rate on bulk salt was 5c, or nearly 4
mills per ton per mile, and the rate of
6 2-3c on salt in packages yielded 5.31
mills, whereas the present rate of 8c
yielded 6.4 mills. Since January 15, 1906,



defendant had maintained a rate from
Syracuse to Buffalo of 4c per 100 Ibs.,
yielding a ton-mile revenue of 5.2 mills
for a much shorter haul. Since Dec.
14, 1906, defendants voluntarily have
maintained a rate from Detroit to Albany
of 13c per 100 Ibs., yielding 4.71 mills per
ton mile. HELD, the rates on salt from
Detroit to New York City and points tak-
ing the New York r?tes should not ex-
ceed 15c per 100 Ibs. Delray Salt Co. v.
M. C. R. R. Co., 18 I. C. C. 268, 269.

(d) On a shipment of rock salt from
Lyons, Kan., to Lusk, Wyo., via Superior,
Neb., defendant connecting carrier
charged 44c from Superior to Lusk. The
rate from Superior to Orin Junction,
Wyo., to which Lusk is intermediate, was
28c. Defendant's practice was to apply
the longer distance rat-e to points inter-
mediate, although shortly before the
shipment its tariff canceled such pro-
vision. HELD, the 44c charge was un-
reasonable. Reparation awarded on the
basis of the 28c rate, but on stipulation
of complainant a 35c rate from Superior
to Lusk was established for the future.
Sunderland Bros. Co. v. C. & N. W Ry.
Co., 16 I. C. C. 433, 434.

135. Sash Weights.

(a) Complainant attacked the unrea-
sonableness of the rate of 23c per 100 Ibs.
on sash weights from Shreveport. La., to
Marshall, Tex., a distance of 42 miles.
Between the same points, defendant had
in effect a commodity rate of 6^c per 100
Ibs. upon car wheels, axles and castings,
articles substantially similar in trans-
portation requirements, but of greater
commercial value than sash weights.
From Terrell, Tex., to Shreveport, 158
miles, defendant maintained a commodity
rate of 17%c on sash weights. HELD,
the rate of 23c on sash weights from
Shreveport to Marshall is unlawful and
unreasonable, and defendant ordered to
establish for the future a rate not to
exceed 6%c per 100 Ibs. Henderson Iron
Works & Supply Co. v. T. & P. Ry. Co.,
20 I. C. C. 159.

136. Sawdust.

See 105, Supra.

(a) On sawdust in carloads from East
Grand Forks, Minn., to Minnewaukan,
N. D., a commodity rate of 20c was ex-
acted. HELD, sawdust being a low-
grade commodity and valued at about
$1.50 per ton, the rate should not exceed



688



REASONABLENESS OF RATES, 137 (a) 140 (b)



8c per 100 Ibs., minimum 24,000 Ibs., so
as to correspond with the rate on fuel
wood and that on sawdust on the lines
of other carriers in the territory in ques-
tion. William Plummer Co. v. N. P. Ry.
Co., 18 I. C. C. 530, 531.

137. Second-Hand Steel Rails and Log-
ging Equipment.

(a) Complainant shipped second-hand
steel rails, old logging cars, steam
skidders and other equipment, Onalaska,
Ark., to Batchelor, La., under a combi-
nation rate of from 86c to 94c, distance
of about 454 miles. St. Louis is 926.5
miles from Batchelor via the lines of
defendant, and shipments from St. Louis
passed through Onalaska. HELD, the
charges exacted should not exceed the
St. Louis rate and were unreasonable
to the extent they exceeded $3.77 per
ton on the steel rails and 35c per 100
Ibs. on the other equipment. Repara-
tion awarded. Northern Lumber Mfg.
Co. v. T. & P. Ry. Co., 19 I. C. C. 54.

138. Sheet-Iron Roofing.

(a) Complainants attacked the rate
of 23c per 100 Ibs. on carload shipments
of sheet-iron roofing from Newport, Ky.,
and Cincinnati, O., to Knoxville, Tenn.
Contemporaneously a rate of 20c ap-
plied on sheet iron, and both sheet-iron
and iron roofing were rated sixth class in
the classification. The two articles are
very similar in that the material is
identical and the price practically the
same. There is a difference in that
sheet iron would require painting or
other preparation to satisfactorily adapt
it for use as roofing. In trade there
is no competition between the two, and
roofing is to a very slight extent a
manufactured product of sheet iron. The
lower rate on the sheet iron was due to
competitive influences absent on the
roofing. North of the Ohio River and
in other sections of the country sheet-
iron and iron roofing took the same
rate. HELD, as a general rule there is
no objection to a reasonable differential
between the rates on material and the
manufactured product thereof. The
commodities involved bear to a degree
the relation of raw material and prod-
ucts, and the difference in the rates is
not found to be undue. Complaint dis-
missed. McClung & Co. v. L. & N
R, R. Co., 23 I. C. C. 414, 416.



139. Shingles.

(a) Complainant shipped shingles,
C. L., from Monroe, La., to Crowell,
Tex., under a joint through class rate
of 44c. Five days after this shipment
moved a commodity rate of 26%c be-
came effective. But a month later this
rate was canceled and there was estab-
lished between the same points but via
a different route a 26 y 2 c rate. A part
only of the defendants appeared at the
hearing and admitted the justness of
the claim for reparation. HELD, the
charges exacted were unreasonable to
the extent they exceeded 26 %c. Menefee
Bros. v. V. S. & P. Ry. Co., 19 I. C. C.
117.

140. Snapped Corn.

(a) Complainants shipped a carload
of snapped corn, or corn in the shuck,
Erath, La., to Miles, Tex., under the
lawful combination rate of 52 %c. Sub-
sequently the rate was reduced to 31c.
The rate on corn, Miles to Erath, at
time of hearing, was 25c. One defend-
ant was willing to apply a rate of 31 %c
if its connections would join in such
action. An officer of one defendant ex-
pressed the opinion that a reasonable
rate would have been 35c. HELD, 3lc
was a reasonable rate on the shipment.
Reparation awarded. Browne Grain Co.
v. G. C. & S. F. Ry. Co., 20 I. C. C. 163.

(b) On one carload of snapped corn
from Ninnekah, Okla., to Clarksville,
Tex., and on another from Addington,
Okla., to Clarksville, Tenn., rates of
28%c and 21 1 / 4c, respectively, were col-
lected, being 125 per cent of the shelled
corn rates of 23c and 17c, respectively.
Shortly prior and shortly subsequent to
the shipments in question the rates on
snapped corn and shelled corn were
the same. Defendants stated that the
rate was raised on snapped corn on ac-
count of shortage of equipment and for
the purpose of inducing shippers to
ship their corn shelled. The cars in
question weighed 35,030 and 37,170 Ibs.,
respectively, a fact showing that
snapped corn weighed as heavily as
shelled corn. The minimum for snapped
corn was the actual weight when loaded
to visible capacity, but not less than
24,000 Ibs. Complainant offered no
other evidence except to rely on Ochel-
tree Grain Co. v. St. L. & S. F. R. R.
Co., 13 I. C. C. 46. HELD, the rates
exacted were unreasonable to the ex-



REASONABLENESS OF RATES, 140 (c) 144 (a)



689



tent that they exceeded the rates on
shelled corn. Texas Grain & Elevator
Co. v. C. R. I. & P. Ry. Co., 18 I. C. C.

580, 581.

(c) A charge of 29.38c on snapped
corn in carloads from Okemah, Okla.,
to Terrell, Tex., is excessive, where the
shelled corn rate is 23 %c, and defend-
ant shortly after the shipment in ques-
tion applies that lower rate to snapped
corn. Reparation awarded. Tully Grain
Co. v. F. S. & W. R. R. Co., 16 I. C. C.
28, 29.

141. Stamped Ware.

(a) The carload rate of $1.80 on
stamped ware in corrugated strawboard
boxes shipped from Buffalo to Califor-
nia and North Pacific terminals was at-
tacked as unreasonable and discrimina-
tory. The tariffs expressly provided
a rate of $1.20 on stamped ware in
boxes, barrels and crates. The pack-
ages here involved were neither boxes,
barrels nor crates, within the meaning
of the tariff. The rule further provided for
a 50 per cent higher rate if the articles
were shipped in bales, bags or bundles.
HELD, the shipment was governed by
no published rate, and inasmuch as
other classifications in force at that
time placed such packages in the same
class as wooden boxes, and the trans-
continental tariffs succeeding the tariff
in effect at the time of shipment makes
no distinction, and considering the
character of the commodity and of the
package, the rate is unreasonable to
the amount of its excess over $1.20 per
100 Ibs. Republic Metalware Co. v. E.
R. R. Co., 22 I. C. C. 565, 567.

142. Staves.

(a) Complainant attacked the rates on
staves from Harrisburg, Paragouid,
Jonesboro, Brinkley, Clarendon, Little
Rock, Pine Bluff, Fordyce, Stephens,
Camden, Texarkana, Ark., and Maiden,
Mo., to Alexandria, Mo., and Keokuk,
la. For 15 years prior to September,
1908, the defendants maintained a joint
through rate of 17c per 100 Ibs. between
Harrisburg and Alexandria, under which
the complainant transported this traffic.
The joint rate was then canceled, rnd
the combination local rate of 19c ex-
acted. The distance is 422 miles, which
under a rate of 17c yielded a ton-mile
revenue of 8 mills. The M. P. R. R.,
a defendant, maintained from Alexandria



to Kansas City, a distance of 539
miles, a rate of 16c; to St. Joe, a dis-
tance of 607 miles, a rate of 17c. The
rates from the other points had been
variously advanced, ranging from 2c to
5c over what they had been for some
seven years prior to the date of the
advance. HELD, that ordinarily a
through rate for a long haul should
be less than the sum of the locals, snd
that a ton-mile revenue of 8 mills for
this commodity, which is substantially
lumber, cannot be pronounced low; that
a through route and joint rate should
be established from Harrisburg to Alex-
andria under a rate not exceeding 17c
per 100 Ibs., and that the rates from
Maiden, Mo., Paragouid, Ark., and
Jonesboro, Ark., to Alexandria, Mo., are
unreasonable to the extent they ex-
ceed 15c, 17c and 17c per 100 Ibs., respect-
ively. Reparation awarded. Bo f t Bros.
Mfg. Co. v. C. B. & Q. R. R. Co., 19 I.
C. C. 136.

143. Stucco.

(a) A rate of 41c on stucco in car-
loads from Gypsum, la., to Lemmon, S.
D., is not shown to be unreasonable,
the only evidence presented being the
mere fact that a lower rate was sub-
sequently established by defendants,
Quammen & Austad Lumber Co. v. C.
G. W. R. R. Co., 18 I. C. C. 599, 600.

144. Sugar.

(a) Since 1901 the rate on raw
sugar from New York via water to Nor-
folk aiid thence by rail to Martinsville
and Winston-Salem, N. C., was 29^c.
During that period the rate to Reids-
ville, N. C., was 40c. At the request
of complainant tobacco manufacturers
at Reidsville, the rate was on May 15,
1909, reduced through an error to 26 1 /e,
the intention of the defendants being
to reduce the same to 29 V 2 c, so as to
correspond with the Martinsville and
Winston-Salem rate. Reidsville is 233
miles, Martinsville 248 miles and Win-
ston-Salem 282 miles from Norfolk. De
fendants admitted that they put the
new rate to Reidsville in effect because
the old rate was relatively "out of line"
and "wrong." No other evidence of
the unreasonableness of the old - I 0c
rate to Reidsville was offered. Com-
plainants' nominal competitors at Mar-
tinsville and Winston-Salem were con-
trolled by the American Tobacco Co.,



690



REASONABLENESS OF RATES, 144 (b) 145 (a)



and there was, in fact, no real competi-
tion. HELD, while the mere voluntary
reduction by a carrier of a rate is not
of itself sufficient to prove the old
rate unreasonable so as to entitle a
shipper to reparation, still the evidence
of unreasonableness is sufficient where
the defendant admits that the old rate
was excessive. Ordered that the rates
to Reidsville should not exceed that
to Martinsville and Winston-Salem.
Reparation awarded on the basis of
29^c and not on the basis of 26^c.
Penn Tobacco Co. v. Old Dominion S. S.
Co., 18 I. C. C. 197, 199.

(b) On a shipment of sugar in car-
loads from Eaton, Colo., to Decatur,
111., complainant was assessed a joint
through rate of 74^, the only joint
through rate to which one of the de-
fendants was a party. At the time of
shipment a joint through rate of 32 ^c
was in effect between said points, such
rate not being applicable over the line
of defendant. Subsequent to the ship-
ment defendant joined in a joint rate
between said points of 32M>c. HELD,
the rate charged was unreasonable
Reparation awarded on the basis of
32Vfcc. Havemeyer & Co. v. U. P. R. R.
Co., 17 I. C. C. 13.

145. Sulphuric Acid.

(a) Complainant attacked the ratea
on sulphuric acid in carloads from Cop-
perhill, Tenn., of $2.60 to Athens, Ga.,
258 miles; of $3 to Augusta, Ga., 356
miles; of $4 to Columbia, S. C., 409
miles; of $3 to Dublin, Ga., 327 miles,
as typical points. Sulphuric acid was
used by the complainant in large quan-
tities in the manufacture of fertilizer.
The principal ingredients of fertilizer
are phosphate rock and sulphuric acid.
The process of acidulation can be car-
ried on wherever the rock and the acid
can be most cheaply brought together.
The rock is found throughout the south-
eastern states. Other ingredients are
usually added by the local dealer. The
sulphuric acid used in this industry
had until recently been produced mainly
from iron pyrites, the bulk of which was
Imported from Spain. The cost of pro-
ducing 50-degree sulphuric acid from
pyrites was about $4.50 per ton. Re-
cently the copper smelters of Tennessee
had manufactured large quantities of
sulphuric acid as a by-product. The com-
plainant corporation was organized as



a result of a contract with the smelters
to purchase the entire outfit of sul-
phuric acid at 60 degrees of strength
at about $5 per ton. This represented
a cost of about $4 per ton for the acid
reduced to the 50 degrees basis. The
cost of sulphuric acid to the complain-
ant's competitors was the cost of pyrites,
plus the amount of freight on the py-
rites to the interior, plus the cost of
manufacture. One ton of pyrites makes
two tons of acid. Complainant's rates
on acid were higher than the rates on
pyrites. The cost per ton mile on sul-
phuric acid ranged from 7 to 8 mills
to points of present or prospective ship-
ment. The low rates on pyrites were
due to the fact that the rock situated
in the interior could not compete with
the rock on the coast, although the cost
of distribution of the fertilizer was less
in the interior. The Railway Commis-
sion of Georgia established low rates
on pyrites in order to stimulate the
production in the interior. Fertilizer
tonnage was important to many southern
railroads. Rates were reduced to meet
the Georgia rates. The pyrites rates
were the result of competition. Sul-
phuric acid was transported in tank cars
with a capacity of 50 tons. The cars
were owned by complainant. The car-
riers paid %c per mile both ways for
their use. The cars were always re-
turned empty. The traffic did not re-
quire expedited service. The movement
was uniform. The liability to loss and
damage was small. The volume of traf-
fic was comparatively large, 250,000 tons
per year, with considerable prospective
increase. Considerable negotiations had
taken place relative to the rates. The
carriers maintained that sulphuric acid
should take the same rate as fertilizer.
Fertilizer did not compete with the
acid. The value of fertilizer was $15 to
$20 per ton. Acid is distinctly a raw
material. The value of acid was about
the same as that of phosphate rock in
Tennessee and Florida. The loading of
acid was heavier than rock, but the tank
car returns empty, while the rock cars
took a return load. The rates on phos-
phate rock had been highly competi-
tive. HELD, that the rate on pyrites
should not be used as a standard to fix
the rate on acid; that the rate on acid
may well be somewhat higher than the
rate on rock, and that the rates to
Athens, Augusta, Columbia and Dublin
as typical points should not exceed



REASONABLENESS OF RATES, 145 (b) 148 (c)



691



$2.20, $2.80, $3.15 and $2.65, respectively.
Reparation awarded for rates charged
in excess of these rates. International
Agricultural Corporation v. L. & N. R.
R. Co., 22 I. C. C. 488, 493, 494.

(b) On carloads of sulphuric acid
shipped from Howe, 111., to Aetna, Ind.,
the class rate of 13c is, upon admission
of defendants, held unreasonable, and
reparation is awarded on the basis of
lOc, the rate established by defendant
subsequent to the shipment and prior
to the filing of the complaint. Mineral
Point Zinc Co. v. Wabash R. R. Co., 16
I. C. C. 440, 441.

(c) Complainant manufacturer of sul-
phuric acid at Detroit attacked the rate
of $2.72 per ton on iron pyrites from
Baltimore to Detroit, as compared with
the rates accorded to competitors at
Chicago, St. Louis and Cincinnati.
Prior to the date of advance, Jan. 1,
1907, the rate to Detroit had been $1.74,
except for the years 1903 and 19o6,
when it was $1.56 and $2.68, respect-
ively. Prior to the advance the rate to
Detroit averaged 44c a ton less than to
Chicago, whereas under the rate at-
tacked it was only lie less. Over
the short line distance from Baltimore
to Detroit the rate attacked yielded 4.19
mills per ton mile and by the longer
route over which the complainant's
shipments moved, 3.84 mills. Since the
date of the hearing defendants estab-
lished rates from Baltimore to Detroit,
Cincinnati, St. Louis and Chicago of
$2.21. $2.53. $2.86 and $3, respectively.
HELD, that while the rate attacked
yielded a low revenue, still the defend-
ant having long maintained the rates
previously in effect and complainant's
sale contracts and competitive relations
having been established on the basis
of the former rates, the rate attacked
was unreasonable and unjust to the ex-
tent that it exceeded $2.21. Reparation
awarded. Detroit Chemical Works v.
Northern Central Ry. Co., 13 I C C.
357, 362.

146. Tanners' Outfits.

(a) Carloads containing a second-
hand tanner's outfit shipped from Mil-
waukee to Tacoma, Wash., was classi-
fied as machinery, and complainant was
assessed $1.40 per 100 Ibs., 24,000 Ibs.
minimum. HELD, this freight could
not be classified either as cooperage or
machinery; and that the $1.40 rate



was unreasonable. Reparation awarded
on $1.35 basis, which was declared to
be a reasonable rate. Carstens Packing
Co. v. C. M. & St. P. R. R. Co., 16 I.
C. C. 469, 470.

147. Tent Pins.

(a) Upon a carload of rough sod
tent pins from Gleason, Ark., to Dallas,
Tex., the class rate of 60c was assessed.
At the time shipment moved a rate of
20c was in effect on lumber. The value
of the shipment was $194.36 and the
freight exacted $180. Defendant ad-
mitted the unreasonableness of the
charge. Shortly after the shipment a
rate was established on tent pins of
21c. HELD, the rate exacted was un-
reasonable. Reparation awarded on the
basis of 21c. Beekman Lumber Co. v.
St. L. I. M. & S. Ry. Co., 15 I. C. C.
274, 275.

148. Ties.

See Supra, 105.

(a) The exception by defendants of
hewn oak cross ties from the applica-
tion of the rates on oak lumber from
points in Arkansas west of Pine Bluff
on the St. L. S. W. Ry. to points in
Texas on the I. & G. N. R. R. is un-
reasonable and unjustly discriminatory,
and defendants will be required to apply
to hewn oak cross ties the joint rates
contemporaneously applicable to oak
lumber. Signer lie Co. v. I. & G. N.
R. R. Co., 21 I. C. C. 615, 617.

(b) Complainants shipped a carload
of switch ties, Harvey, Va., to Mus-
kegon, Mich. Consignee refused to ac-
cept the shipment on account of mis-
routing. The delivering line used the
ties itself and credited the shipper, who
had paid no charges, with the market
price at destination, which was less
than the accrued freight charges. HELD,
the rate on the ties should not exceed
the rate on lumber. The delivering
line authorized to refund to the shipper
the difference between the market value
of the ties and the freight rate on lum-
ber, and to adjust the account with
connecting carriers. Fullerton Powell
Hardwood Lumber Co. v. V. & S. W.
Ry. Co., 20 I. C. C. 86.

(c) The rate for the transportation
of ties, C. L., Tennessee Ridge, Tenn.,
to Louisville, Ky., should not exceed the
rate contemporaneously in effect for
carriage between the same points for



692



REASONABLENESS OF RATES, 148 (d) 150 (c)



lumber similar in quality to that from
which the ties are made. Chicago Car
Lumber Co. v. L. & N. R. R. Co., 19
I. C. C. 438.

(d) Rate on crossties should not ex-
ceed the rate applicable on lumber of
the same kind. Reparation awarded.
Preston v. R. F. & P. R. R. Co., Unrep.
Op. 203.

(e) Rates on cedar ties exceeded
those in effect on lumber. Reparation
awarded. MacGillis & Gibbs Co. v. C.
& N. W. Ry. Co., Unrep. Op. 271.

(f) Rates on crossties found to be
unreasonable to the extent that they
exceed the rates contemporaneously
charged for the transportation of lumber.
Wheeler-Holden Co. v. L. & N. R. R. Co.,
Unrep. Op. 402.

(g) Rates on crossties found to have
been unreasonable to the extent that
they exceeded the rates contemporan-
eously in effect on lumber manufactured
from the same kind of wood. Reparation
awarded. Stricklin & Co. v. L. &. N. R.
R. Co., Unrep. Op. 533; Gooch Lumber
Co. v. L. & N. R. R. Co., Unrep. Op.
535; Harmount v. L. & N. R. R. Co.,
Unrep. Op. 545; Ohio Valley Tie Co. v.
L. H. & St. L. Ry. Co., Unrep. Op. 567.

149. Tin Plate Scrap.

(a) Complainant attacked the rate
of 52M>c per 100 Ibs. on "scrap tin
plate," C. L., Denver, Colo., to Streeter,
111. Prior to the movement defendants
maintained a specific commodity rate
of 30c per 100 Ibs. on scrap tin, but,
owing to cancelation, the commodity
rate of 52 y 2 c on junk applied, which
was collected. Subsequently a specific
commodity rate of 31 %c on tin plate
scrap was published. HELD, scrap tin
plate is refuse of little intrinsic value.
The invoice price of the consignment
In question was only $5 per ton. It
is apparent that it can move only under
a rate relatively low as compared with
other articles usually classed as junk.
Tuis fact was recegnized by the car-
riers when, after the junk rate had
been applicable for a few months, they
re-established a specific commodity rate
substantially as low as the one that
had been in effect for several years.
Rate exacted was unreasonable to the ex-
tent it exceeded 31 3 /4c. Vulcan Detin-
ning Co. v. U. P. R. R. Co., 21 I. C. C.
93.



150. Vehicles, Wagons, Buggies.

(a) On vehicles in carloads from
Elkhart, Ind., to Milwaukee, Wis., com-
plainant was charged a joint rate of