method of disposing of fractions, these rules correspond to applicants' detailed proposals stated in the course of the hearings, to which no objections were voiced. It was originally proposed to use quartercent fractions in increasing rates of 2.5 cents and less, and half-cent fractions in increasing rates of more than 2.5 cents but not more than 5 cents. That proposal contemplated a 15-percent increase and would produce anomalous and undesirable results in connection with the authorized increases. Our findings are hereby modified to permit the use of quarter-cent fractions in increasing rates of 5 cents and less, and half-cent fractions in increasing rates of more than 5 but not more than 10 cents.

In our original findings we authorized an increase of 10 percent in rates

except the rates on products of agriculture other than tropical fruits; except the rates on animals and products and the products thereof and articles taking the same rates, horses and mules not being included in this exception; and except lumber, shingles, and lath, and articles taking lumber rates; and except the rates on cottonseed oil and vegetable oils, n. o. s.. other than linseed oil; as to all of which excepted groups of commodities the increase in rates may be 5 percent ;

In a footnote on page 138 it was stated that "the generic descriptions of commodities or commodity groups are those prescribed by the Commission's outstanding statistical orders". Applicants have pointed out that there are a number of articles listed under the generic descriptions as products of agriculture, or animals and products thereof, which are relatively high priced and have been subjected to various processes akin to that of manufacture. In other instances they are commodities, such as bananas and cocoanuts, that are produced in this country only to a limited extent, but which generally move from the ports on domestic rates. A number are not closely related to the basic raw products of the farm, range, or orchard, as to which the reasons for limiting the increase to 5 percent are most compelling. As an illustration of anomalies which would result from a literal application of the lists prescribed in our statistical orders, applicants point out that canned meats are therein listed as products of animals, whereas canned fruits and vegetables are not listed as products of agriculture, and that such prepared, processed, or manufactured articles as roasted or salted peanuts, leather, and dressed or tanned furs appear as products of agriculture or animals, respectively. It was not intended that the commodity groupings in our statistical orders should be literally followed in all cases and our findings are modified to make that clear.

By permissive order we have authorized the publication on 10 days' notice of the differentiation between commodities upon which 5 percent and 10 percent should be applied as appearing in the master tariff. With the exception noted below, the increases provided in that

tariff are found to have been lawfully filed. The various generic headings in our statistical orders include articles listed under such headings only when shipped in carloads, except that cotton is reported as a product of agriculture when shipped in smaller lots. Thus, under our original report, a 10-percent increase was authorized in less-thancarload rates on the articles on which, in carloads, a 5-percent increase was authorized, except cotton. The latter commodity and unmanufactured tobacco move quite extensively on any-quantity rates, although most other products of animals and of agriculture move generally in carload quantities. We conclude that our findings should be, and they are hereby, modified to limit the increase on unmanufactured tobacco, in less than carloads, to 5 percent. No similar change has been shown to be necessary on other articles.

We recognize that it will no doubt be found that in a number of instances, in the master tariff, errors have been made in assigning particular commodities to the 5 and 10 percent classifications, and that shifts should be made to avoid undue prejudice and preference as between commodities, localities, or shippers. Applicants have designated a committee promptly to consider suggestions from interested parties as to changes of this kind which should be made and we will designate a committee of our employees informally to consider such suggestions and endeavor to bring about prompt settlement of controversies without resort to formal proceedings. Parties believing that injustices result from any of the increases as published should in the first instance bring their situations to the attention of these committees. Failing satisfactory settlement of controversies through this means; such situations may of course be brought to our attention either by petition in this proceeding or by formal complaint.

Fourth-section order No. 13050 will be modified to accord with the provisions of this report.

COMMISSIONER MCMANAMY did not participate in the disposition of this proceeding.

226 I. C. C.

INVESTIGATION AND SUSPENSION DOCKET No. 4364

ROUTING VEGETABLES FROM GEORGIA, ASHBURN, SYLVESTER & CAMILLA RAILWAY VIA GEORGIA & FLORIDA RAILROAD

Submitted March 5, 1938. Decided March 26, 1938

Proposed cancelation of a route through Bridgeboro and Moultrie, Ga., for fresh vegetables, in carloads, from stations on the line of the Georgia, Ashburn, Sylvester & Camilla Railway Company to destinations in the South and in official territory, found not justified. Suspended schedules ordered canceled and proceeding discontinued.

Waldo De Loache for respondents.

Moultrie Hitt, G. Kibby Munson, and F. N. Hicks for protestants. REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS MCMANAMY, PORTER, AND MILLER

BY DIVISION 3:

Exceptions to the report proposed by the examiner were filed by the Georgia, Ashburn, Sylvester & Camilla Railway Company, hereinafter called respondent. A reply thereto was filed by receivers of the Georgia & Florida Railroad.

By schedules filed to become effective May 20, 1937, it is proposed to cancel an available route for fresh or green vegetables, in carloads, from stations on respondent's line through Bridgeboro, Ga., over the line of the Georgia Northern Railway Company through Moultrie, Ga., and thence over the Georgia & Florida, to destinations in the South and in official territory. Upon protest of the Georgia & Florida (W. V. Griffin and H. W. Purvis, receivers) and F. N. Hicks, Incorporated, of Tampa, Fla., operation of the schedules was suspended until December 20, 1937, and respondents have voluntarily postponed the effective date until June 30, 1938.

The line of the respondent extends in a northeasterly direction from Camilla to Ashburn, Ga., a distance of 50 miles, crossing and connecting with the Georgia Northern at Bridgeboro. The line of the Flint River and Northeastern Railroad Company parallels respondent's line and extends in a northeasterly direction from Pelham to Ticknor, Ga., 24 miles, connecting at the latter point with the Georgia Northern. The Georgia Northern extends in a southerly direction from Albany to Boston, Ga., a distance of 68 miles, connecting with the Georgia & Florida at Moultrie south of Ticknor.

The distance to Moultrie from Bridgeboro is 19 miles, and from Ticknor, 14 miles.

Cancelation of the route through Bridgeboro and Moultrie would result in the application of combination rates substantially higher than the established joint rates.

Respondent's justification of the proposed cancelation of the route by way of Moultrie rests solely upon a showing that during the heavy contemporaneous seasonal movement of tomatoes and watermelons over the Georgia Northern, the acceptance by that line of a substantial amount of traffic at Bridgeboro for movement southward to Moultrie would greatly interfere with and complicate operations under which perishable traffic can be and is moved promptly northward from Bridgeboro. The seasonal movement of tomatoes begins about June 1 and that of watermelons about June 15, and extend into the first part of July, the peak of these movements being about June 25. Approximately 500 acres in the vicinity of Camilla have been planted in tomatoes. Some of this traffic has been moved from Camilla over the Atlantic Coast Line and some has been trucked to Pelham for movement via Moultrie. During the normal season, respondent moves an average of about 20 carloads of traffic per day and the Georgia Northern between 35 and 40. At the peak of the movement of tomatoes the Georgia Northern moves about 250 carloads per day. Over the route of the Flint River & Northeastern to Ticknor and Georgia Northern to Moultrie for delivery to the Georgia & Florida, which is to be continued, 23 carloads of tomatoes were transported in 1935, 44 in 1936, and 65 in 1937. In the past there has been practically no movement of tomatoes over the route which is proposed to be canceled, but there apparently now is some prospect of a substantial movement.

Respondent owns one locomotive and employs one train crew, consisting of an engineer, fireman, and brakeman. The Georgia Northern owns five locomotives and employs two crews. At the peak of the seasonal movement it is necessary to rent or hire additional motive power, and the respondent then employs from two to three crews and the Georgia Northern about eight crews. Considerable difficulty is experienced in securing, for brief employment, competent crews familiar with operating conditions on the respective lines of railroad. During the watermelon season, shipping instructions are received between 6 and 10 p. m. The empties for this traffic, which are received at Albany, must be moved southward and placed for loading before 6 a. m. and loaded during the day. Loaded-train movements northward are made between 8 p. m. and 6 a. m. At the peak of the season about 90 carloads per day originate at Moultrie and about 100 carloads per day at intermediate points between Moul

trie and Albany, necessitating the use of four or five trains in addition to the regular service. Due to the lack of sidetrack facilities between Albany and Moultrie, trains can pass each other only at Bridgeboro and Ticknor, resulting in delay of the movement and distribution of empties until practically all loaded cars are delivered at Albany.

The receivers of the Georgia & Florida strenuously oppose the cancelation of the route by way of Moultrie. They maintain that this line is desirable for the transportation of vegetables to Augusta, Ga., occasionally used as a reconsigning point. Attention is directed to the fact that no proposal is made by respondent to cancel or restrict the routes or rates maintained by way of Sylvester, Ga., in connection with the Atlantic Coast Line or by way of Ashburn in connection with the Georgia Southern & Florida Railway. The distances from Camilla by way of Moultrie and the Georgia & Florida to Richmond and Potomac Yard, Va., are shorter than the distance over other available routes. Respondent does not contend that it is entitled to or receives greater revenue on traffic transported over the latter routes than on traffic by way of Moultrie. It appears that the cancelation of the route by way of Bridgeboro and Moultrie with the continuance of routes by way of Bridgeboro and other junctions of the Georgia Northern would contravene the provisions of section 3 (3) of the Interstate Commerce Act, which provides that carriers shall not discriminate in their rates between connecting lines, or unduly prejudice any connecting line, in the distribution of traffic.

The movement of traffic northward from Bridgeboro is much greater than the movement southward from that point. It may be true that the continuance of such operations is in the interest of better service than would be the case if the southward movement were increased. However, the fact that the traffic is and can be handled with greater facility by way of junctions north of Moultrie than by way of Moultrie, is not a sufficient reason for closing the Moultrie route. If respondent and the Georgia Northern are at any time for any reason unable to transport the traffic offered it so as properly to serve the public, the provisions of section 1 (16) of the Interstate Commerce Act may be invoked, by which the Commission is authorized to make just and reasonable directions with respect to the movement of traffic in the interest of the public. There is no warrant here for a conclusion that because of the fact that the Moultrie route is open, the respondent and the Georgia Northern will be unable properly to serve the public.

We find that the proposed schedules have not been justified. An order will be entered requiring their cancelation and discontinuing this proceeding.