FOURTH SECTION APPLICATIONS Nos. 623 ET AL.1 LUMBER FROM THE SOUTH AND SOUTHWEST Submitted July 7, 1937. Decided March 8, 1938 Authority granted, on conditions, to continue and to establish and maintain rates on lumber and related articles from points in southern territory to destinations in central territory, including Illinois Freight Association territory, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. Prior reports, 198 I. C. C. 753, 215 I. C. C. 391, and 218 I. C. C. 181. J. E. Adair, W. W. Wolford, Roy Pope, and T. T. Masengill for applicants. THIRD REPORT OF THE COMMISSION ON FURTHER HEARING DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND CASKIE BY DIVISION 2: By fourth-section application No. 16819 carriers granted relief by fourth-section orders Nos. 11425 and 8843, as amended, entered in connection with the prior reports in these and other proceedings hereinafter cited, apply for additional authority to continue and to establish and maintain rates on lumber and related articles from points in southern territory to destinations in Central Freight Association territory, including Illinois Freight Association territory, and to Buffalo-Pittsburgh territory, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. A hearing was held and no opposition was presented with respect to the relief sought. Rates will be stated in amounts per 100 pounds. The present rates from and to the points here considered are included in adjustments established following decisions in Rates on Lumber from Southern Points, 34 I. C. C. 652; Southeastern Lumber, 42 I. C. C. 548; Adams-Bank Lbr. Co. v. Aberdeen & R. R. Co., 157 I. C. C. 280; Lumber from the South and Southwest, 198 I. C. C. 753, 215 I. C. C. 391, and 218 I. C. C. 181; North Carolina Pine Assn. v. Atlantic Coast Line R. Co., 85 I. C. C. 270, 107 I. C. C. 190. In establishing these rates the origin and destination territories were divided into a number of groups, each of which included large areas embracing many points, and the same rates were 1 This report deals only with fourth-section application No. 16819. Other applications heretofore considered are listed in appendix A of the original report, 198 I. C. C. 753. established to all points within the particular groups and applied over practically all existing routes. By fourth-section order No. 11425, as amended, entered in connection with Lumber from the South and Southwest, supra, among other things, the carriers were granted authority to continue and to establish and maintain, over all routes, on lumber and related articles, from points in the South to destinations in central territory, the lowest rates then in effect on like property over any route from and to such points, and to maintain the existing higher rates at intermediate points on routes operating from and to lower-rated groups through higher-rated groups, subject to the limitation that the relief granted should not apply to circuitous lines or routes when the distance over the short line or route was as shown in column 1 of the following table and the distances over the circuitous routes exceeded the percentages of column 1 or actual distances as shown in column 2 opposite those in column 1: 150 miles and less.. 151 to 170 miles 1. 171 to 1,000 miles 1 1,001 to 1,125 miles Over 1,125 miles 1. Column 1 Column 2 170 percent of column 1 distance. 150 percent of column 1 distance. 133 percent of column 1 distance. Where the distance over the short line or route is 160 miles or more, the relief herein shall apply to circuitous lines or routes not more than 60 percent circuitous, in connection with rates considered herein which produce not less than 6 mills per ton per mile for the actual distances over such lines or routes. In complying with the above conditions and limitations, with respect to traffic from points in groups in southern territory to points in groups in central territory, the circuity of the longer lines or routes was to be determined by comparison of the short-line distances from the base point in an origin class-rate group to the base point in a destination class-rate group in lieu of actual distances between individual points. The relief authorized also was made subject to the conditions that higher rates from and to intermediate points should not exceed the lowest combination of rates subject to the act and should not be increased except as authorized by this Commission or where necessary to comply with the provisions of section 4 or other conditions set forth in the report. In North Carolina Pine Assn. v. Atlantic Coast Line R. Co., supra, specific rates were prescribed on lumber and related articles from points in the Southeast, and from the Virginia cities to destinations in trunk-line and New England territories, including Pittsburgh, Pa., Buffalo, N. Y., and other Buffalo-Pittsburgh territory points. That report also embraced fourth-section applications No. 600 et seq., and by fourth-section order No. 8843, as amended, the carriers were authorized to apply over all routes the lowest rate available over any route between competing points, and to apply higher rates from and to intermediate points, subject to the conditions that the rates from and to higher-rated intermediate points should not exceed rates constructed on the bases prescribed, or the lowest combination of rates subject to the act, and that, except on traffic from points on certain short or weak lines, the relief authorized should not include intermediate points as to which the haul of the line or route to which the relief was granted was not longer than the direct line or route between the competitive points, or as to which the haul of the line or route to which relief was granted was more than 160 percent of the direct line or route between the competitive points. The short lines named in appendix B to the report on rehearing in the above proceeding 2 were authorized to charge higher rates from intermediate points on their lines to destinations in trunk-line and New England territories than those contemporaneously maintained to the same destinations from more distant junction points with trunk-line carriers, subject to the conditions that the rates from such intermediate stations shall in no case exceed the lowest combination, and that the differences between the rates from the more distant junction points on the one hand and the intermediate points on the short lines on the other shall not be increased except as may hereafter be authorized by this Commission. The rates established to central territory were based largely on combinations of rates to and beyond the gateways between the South and the northern territories, and due to varying routing, commodity descriptions, and minimum weights, in connection with the respective rates, which made necessary many exceptions to the general basis in establishing the through rates, a complicated system of tariffs has been published which is difficult to understand and interpret. The rates are now published in seven different agency tariffs, and several individual lines' publications, aggregating approximately 3,000 pages. This complex system of tariffs and multiplicity of rates makes it difficult for a shipper to determine the lowest rates available and has brought about numerous criticisms both by shippers and by this Commission. The carriers have recognized that such criticisms are well founded, and after careful study in an effort to remove as many of the causes of criticism as possible, have decided upon a plan of regrouping and rerouting which they assert will closely approximate those used in connection with the contemporaneous class rates from and to the same points and will result in marked improvement in the publication of the rates with a minimum disturbance of the present adjustment. In the proposed plan of re 107 I. C. C. 190. grouping, applicants disclaim any intention to bring about an upward revision of the present rates. Such changes as will be made, they contend, will result in as many reductions as increases, neither of which will be substantial in amount nor represent departures of importance from the present adjustment. In narrowing and reconstructing the destination grouping the more important points in the group will be selected as base points to which the present rates will be applied. Any changes in the rates will result mainly at nonagency or relatively unimportant stations. Certain departures which not exist will be removed because of reductions of some existing higher rates on certain routes to a basis the same as or less than to points in a proposed destination group. The proposed adjustment will consolidate the present rates in not more than four new tariffs, aggregating about 1,500 pages, with uniform commodity descriptions and minimum weights, and will result in the application of the same rates over the different initial and terminal lines at common points of origin and destination. It is asserted that it will also minimize the necessity for the publication of so many restrictive provisions in connection with the rates, thereby simplifying the determination of the applicable rates and charges, and will result in other important improvements and economies in connection with the publication of the rates. Briefly stated, the relief sought herein is such as will in effect modify the existing relief so as to (1) permit such changes in the present rates as will result from the proposed plan of regrouping, (2) permit necessary changes in the commodity descriptions where different from those in effect when the above orders and amendments were issued, and (3) modify the existing circuity and minimum revenue limitations so as to include additional base points in central and Buffalo-Pittsburgh territories, and the proposed grouping therewith. Since the measure of the present rates has been considered by the Commission in the cases cited, and fourth-section relief, subject to certain limitations, has been granted in connection with those rates, which relief is of a continuing nature and will continue to protect existing departures where the present adjustment is to be maintained, it is only necessary in this proceeding to consider the changes proposed. From group 29 points in Georgia the carriers now group with Chicago, Ill., destinations in Indiana almost as far south as the Ohio River, including such points as Mitchell and Seymour, stations on the Cincinnati-St. Louis line of the Baltimore and Ohio Railroad Company. Another group includes stations in north-central Indiana north of Logansport and Reynolds, and another central and southeastern Indiana, including Logansport and Reynolds and points southeast thereof to the State line and the Ohio River. Most of the northeastern part of Indiana is included in another group, of which Fort Wayne is the central point. On traffic from Mississippi Valley groups 1 and 1A, all northwestern and central Ohio, from Toledo south to the Ohio River is included in one destination group. All eastern Ohio is included in another group. Under the proposed adjustment these areas will be divided into many relatively small groups. While it is asserted that the grouping under the proposed adjustment will closely approximate the destination group adjustment used in connection with the contemporaneous class rates, exhibits of record show that only on movements from shipping points in the South, including Virginia and Louisiana, to destinations in Illinois, and a few border points in Iowa, Missouri, West Virginia, and Wisconsin, will the base points be the same in number as used in connection with the class rates from and to the same points. To Indiana, a far greater number of base points will be used in connection with the proposed regrouping of the rates on lumber than are used in connection with the present class rates. This is also true with respect to points in Michigan and Ohio. For example, there are 52 destination base points in connection with the class. rates from Georgia to destinations in Indiana, as compared with 103 under the proposed lumber adjustment; 62 base points with respect to the class rates from Georgia to Michigan, as compared with 87 on lumber; and 68 base points in connection with class rates from Georgia to Ohio, as compared with 104 on lumber. A similar situation will exist from points in Mississippi to destinations in the same States. It is evident, therefore, that the proposed destination groups will be much more restricted in area than those used in connection with the present class rates from and to the same points. In this connection, however, an exhibit of record shows that the average distances from base points in Georgia and Mississippi to certain destinations in central territory under the proposed groupings are the same or substantially the same as the average distances from the class-rate base points in those States to the same destinations. Under the proposed adjustment there will be no departures on direct routes. The following examples are illustrative of departures which will occur at points on indirect routes. From Hattiesburg, Miss., a representative Mississippi Valley shipping point, to Chicago and group points, the distance over the direct route is 805 miles and the rate is 38 cents. This rate also applies over the route of the New Orleans and Northeastern Railroad Company to Meridian, Miss., the Alabama Great Southern Railroad Company to Chattanooga, Tenn., the Cincinnati, New Orleans and Texas Pacific Railway Com |