However, on movements from points in the so-called outer belt the switching charge to the lake dock is $1.20, which results in total charges of $2.70. There are approximately 250 vessels of American registry and 67 of Canadian registry operating from or to Lake Michigan ports which are equipped to transport petroleum coke. The time in transit by rail from Chicago to Sault Ste. Marie is 48 hours, and slightly longer from related points, depending on their location, as compared to one week by water. Applicants have been informed that during the year 1936 the chemical plant at Sault Ste. Marie received 56,700 tons of coke which moved by water from the origin territory here considered. It is not known what percentage of these movements consisted of petroleum coke, but it is stated that the amount of such coke shipped to the plant in 1937 would approximate 35,000 tons. Applicants proposed to establish a rate of $2.75 to meet this water competition, and the purpose of the relief is to enable them to maintain the present higher rates from and to intermediate points on their routes in Wisconsin and the Upper Peninsula of Michigan. The rates on coke from Chicago to points in Wisconsin were prescribed in Indiana Coke & Gas Co. v. Ahnapee & W. Ry. Co., 155 I. C. C. 70, and rates to points in the Upper Peninsula of Michigan are voluntarily maintained on the same relative level. It is asserted, however, that petroleum coke is not produced at, or shipped from or to, such intermediate points, and is not competitive with ordinary fuel coke. Under the proposed adjustment, departures will occur at intermediate origins and destinations on direct and indirect routes. The following examples are illustrative. From Chicago to Sault Ste. Marie over the direct route of the Chicago, Milwaukee, St. Paul & Pacific to Champion, Mich., and Duluth, South Shore & Atlantic beyond the distance is 533 miles and the proposed rate $2.75. Over this route from Milwaukee and Green Bay, Wis., 448 and 337 miles respectively, the present rate of $3.52 will be maintained. From Whiting, Ind., to Sault Ste. Marie, over the direct route of the Pennsylvania Railroad to Chicago, the Chicago, Milwaukee, St. Paul & Pacific to Champion, and the Duluth, South Shore & Atlantic beyond, the distance is 550 miles and the proposed rate $2.75. This rate will also apply over the route of the Elgin, Joliet & Eastern to Leighton, Ill., and the Minneapolis, St. Paul & Sault Ste. Marie beyond, a distance of 628 miles, or 14 percent circuitous. This is the longest route shown of record. Over the latter route to St. Mary's Transfer, Mich., an intermediate destination 627 miles from Whiting, the present rate of $3.52 will apply. To the extent shown by applicants' exhibits the proposed rate to Sault Ste. Marie will yield from 4.4 to 5.2 mills per ton-mile and, based on an average loading of 60,000 pounds, from 13.1 to 15.5 cents per car-mile. These earnings are considerably in excess of the average cost of handling added traffic westbound on the Minneapolis, St. Paul & Sault Ste. Marie during the year 1935, which cost, applicants assert, averaged 2.3 mills per ton-mile and 4.7 cents per car-mile. It is stated that applicants' trains are operated at less than tonnage capacity and that the movement of a few cars of this coke traffic each week will not necessitate additional operations. While this traffic has heretofore moved by water, applicants expect that the proposed rate will result in a substantial movement over their lines, due to the superiority of rail service as compared with water transportation. It is requested, however, that the relief prayed be made applicable during the entire year and not limited to the period of open navigation on Lake Michigan. This will permit the movement of two or three carloads per week throughout the year and avoid the necessity of storing large quantities at destination, which is the present practice in connection with shipments by water which can be made from and to these points only during the period of open navigation. We find that the water competition existing during the season of navigation affects the level of the rates necessary to move this traffic by the rail carriers during the entire year; that the proposed rate is not lower than necessary to meet such competition and is reasonably compensatory; and that the relief sought is justified throughout the entire year. Applicants will be authorized to establish and maintain over their existing lines or routes, for the transportation of petroleum coke, in carloads, from and to the points here considered, a rate not lower than $2.75, and to maintain higher rates from and to intermediate points; provided, that the rates from and to such higher-rated intermediate points shall not be increased except to the extent authorized in General Commodity Rate Increases, 1937, supra, or as hereafter may be authorized by this Commission, and shall in no instance exceed the lowest combination of rates subject to the act; and provided further, that the relief herein granted shall not apply over any line or route that is more than 50 percent longer than the direct line or route from and to the same points. An appropriate order will be entered. 226 I. C. C. No. 27792 STRAIGHT LINE ENGINE COMPANY, INCORPORATED, v. DELAWARE, LACKAWANNA & WESTERN RAILROAD COMPANY ET AL. Submitted February 8, 1938. Decided March 9, 1938 Rate charged on one carload of machinery and machinery parts from Syracuse, N. Y., to North Baton Rouge, La., found inapplicable. Applicable rate on this shipment and the rate charged on four carloads of machinery and machinery parts n. o. i. b. n., and the power pumps and parts for same included in one of the shipments from and to the same points not shown to have been unreasonable. Reparation awarded. L. V. Brandt, Robert A. Peckens, and Edgar O. Anderson for complainant. W. J. Larrabee for defendents. REPORT OF THE COMMISSION DIVISION 3, COMMISSIONERS MCMANAMY, PORTER, AND MILLER BY DIVISION 3: The shortened procedure was followed. Complainant filed exception to, and our conclusions differ from, the examiner's recommendations. Complainant corporation alleges by complaint filed July 6, 1937, that the rates charged on one carload originally described and billed as rough and finished castings, three carloads of machinery and machinery parts n. o. i. b. n., and one carload of the latter articles and eight crates of power pumps and one box of parts for same, shipped between December 10 and 31, 1934, inclusive, from Syracuse, N. Y., to North Baton Rouge, La., were unreasonable. Reparation is sought. An informal complaint covering these shipments and alleging violations of sections 1, 4, and 6 of the Interstate Commerce Act was filed on behalf of complainant on November 23, 1936, and closed June 11, 1937. Rates are per 100 pounds. The shipments, aggregating 219,819 pounds, moved as routed by the shipper over lines of the Delaware, Lackawanna and Western Railroad Company to Buffalo, N. Y., the New York, Chicago and St. Louis Railroad Company to St. Louis, Mo., the Missouri Pacific Railroad Company to Alexandria, La., and the Louisiana & Arkansas Railway Company beyond, 1,702 miles. Rough and finished iron or steel castings were rated sixth class and fifth class, minimum 36,000 pounds, respectively, and machinery and machinery parts and power pumps were rated sixth class, minimum 24,000 pounds, subject to rule 34, in the governing southern classification. The one shipment, described on the bill of lading and billed as rough and finished castings, moved in car D. L. & W. 65917 and consisted of the following articles: Spider and valve body for float regulator---- One filter complete----- Pounds 475 418 3, 900 23,000 27,000 The filter in this shipment and those in the other shipments were dismantled insofar as necessary for convenience of loading and shipping. The fifth-clas rate of $1.18 was charged on this carload. Complainant claims that the sixth-class rate of $1.05 was applicable. All the articles in the shipment were rated sixth class, either specifically or by use of the analogous rule of the classification. The weights of the articles shown above aggregate 54,793 pounds, but the charges were based on a weight of 54,818 pounds. Complainant does not question the accuracy of the latter weight, which was the weight shown by it on the bill of lading. This shipment was overcharged $71.26. The applicable sixth-class rate was orginally or ultimately charged on the other shipments, which consisted of such articles as filters, caustic-pot covers, small bailing pumps, and cast-iron flanges, tank bushings, and counterweight collars and shafts. The class rates referred to were established pursuant to the findings in the southern class-rate revision. Complainant contends that the applicable rate was unreasonable to the extent that it exceeded the combination rate of 91 cents, composed of the fifth-class rate of 40 cents to Richmond, Va., and a commodity rate of 51 cents beyond. The official classification rating of fifth class governed the rate to Richmond. The 40-cent factor applied over two routes to Richmond and the 51-cent factor applied over the route of the Southern Railway Company and certain of its connections. The distances over these routes are 1,714 and 1,756 miles. Complainant states that, when the shipments were made, it understood that the rates and charges "were on an equal basis via all reasonable routes," and owing to this the shipments were specifically routed. The mere showing of a lower rate over a different route is insufficient to condemn the applicable rate over the used route, and, since the shipper is charged with knowledge of the applicable rate, the testimony indicating that it thought the rate was the same over all reasonable routes is immaterial. The applicable rate over the used route yielded average car-mile earnings of 27.1 cents and the ton-mile earnings were 12.3 mills. The rate sought would yield 23.5 cents and 10.7 mills respectively, over the used route and 23 cents and 10.5 mills, respectively, based on the average distance of 1,735 miles through Richmond. All car-mile earnings are based on the average weight of the shipments, 43,964 pounds. The weight of each shipment exceeded the minimum under rule 34. Defendants, in addition to showing that the applicable rate was prescribed by the Commission, state that there are no commodity rates in effect on castings or on machinery from Syracuse to points in southern territory or to southern or southwestern gateways such as Richmond, Cincinnati, Ohio, or St. Louis, Mo. Complainant contends that defendants have not shown that the rate assailed was reasonable as required by the statute. The applicable rate assailed has been increased since 1910 and the burden is on defendants to establish its lawfulness. Defendants' evidence, however, is sufficient to sustain that burden of proof. Moreover, no presumption of unreasonableness attaches to the joint rate over the route of movement because a lower combination was in effect over another route. Prairie Pipe Line Co. v. Missouri Pac. R. Co., 139 I. C. C. 187. We find that the rate charged on the shipment in car D. L. & W. 65917 was inapplicable; that the applicable rate was $1.05; that the applicable rate on all the shipments has not been shown to have been unreasonable; that complainant made the shipment in car D. L. & W. 65917 and paid and bore the charges thereon at the rate found inapplicable herein; and that it was damaged thereby and is entitled to reparation in the sum of $71.26, with interest. An order awarding reparation will be entered. 226 I. C. C. |