Memphis was published in compliance with the findings in the southern class-rate revision. As above indicated, the joint class A rate of 35 cents was the rate established to a destination group and it is complainant's position that defendants improperly grouped Felts, a point 6 miles from Memphis, with Jackson, Dyersburg, and Milan, 85, 76, and 93 miles from Memphis, respectively. Felts was intermediate to Dyersburg. The distances from West Memphis to Memphis were 8.2 and 15.1 miles over the short line and route of movement, respectively. In the original southwestern revision in 123 I. C. C., at page 466, group 200 embraced points west of the Mississippi River 50 miles and less from Memphis, as shown in connection with reference mark 16 on page 476, and group 1040 (Jackson) embraced Jackson, Dyersburg, and Milan. See page 474. There was no first-class or column 100 rate shown on page 466 from group 200 to group 1010, but in place of such a rate reference mark 20 appeared, the explanation thereof on page 476 reading as follows: "Apply southwestern scale for the through distance, plus 4 cents." At page 475 the following grouping was authorized: not spe Other points in southern and eastern defined territories cifically named in any of the Groups 1000–1066, inclusive, should be grouped with the appropriate points to and from which specific rates are shown above, or, if there is no point named with which such other points may properly be grouped, additional base points should be selected, and rates provided in harmony with those set forth in sections 1, 2, and 3 above. Defendants use the latter quotation to justify their action in placing Felts in the same group as Jackson, Dyersburg, and Milan and establishing joint first-class and class A rates of 78 and 35 cents to that group from West Memphis. The 78-cent rate was the southwestern-scale rate for 81 to 85 miles, inclusive, plus 4 cents. Complainant contends that a separate group embracing Felts should have been provided, and rates established thereto in harmony with those prescribed to group 1040. In determining distances under the original southwestern revision, the shortest routes over which carload traffic could be moved without transfer of lading were authorized. Based on the distance from West Memphis to Felts, the first-class rate plus 4 cents was 45 cents, which would result in a class A rate of 20 cents. The latter rate is the rate sought. Jackson, Dyersburg, Milan, and other points in western Tennessee or Mississippi were not named as key points in the twenty-first supplemental report in the southwestern revision, decided November 22, 1934. The key rates which were provided were also authorized for application to points grouped with the key point. With respect to other points it was said in 205 I. C. C. at page 659: Provided, That where a point in any of said territories, except New England and trunk line, important from a commercial or population standpoint, is materially more than 50 miles, or if in southwestern zone IV is materially more than 100 miles, from a more distant key-rate point in the general direction of a short-line interterritorial route to or from said southwestern territories, as the case may be, defendants shall publish specific rates to and from such additional point, graded in with the prescribed corresponding key rates to or from the named key points in the same area. Under the distance scale of rates prescribed in the supplemental proceeding for the short-line distance, the first-class rate would be 40 cents and the class A rate 18 cents. It will be observed that both of these rates are lower than those prescribed for that distance in the original proceeding. The maximum rate under finding 12, page 661, and the bridge scale, page 736, would be 19 cents. The tariffs filed in purported compliance with the findings in the twenty-first supplemental report became effective April 9, 1937. The shipments moved prior to that date. Although the findings in the original southwestern revision left it to the carriers to determine the appropriate grouping of points not specifically named, either by including them in a group designated in the report or by creating additional base points or groups when necessary, we are of the opinion that Felts should not have been included in group 1040, but that it should have been included in a group to which the average distance from Memphis would have been approximately 25 miles. Under the original southwestern proceeding, the first-class rate for 33 miles, based on 8.2 miles to Memphis and an average of 25 miles beyond, plus 4 cents, was 55 cents, which produces a class A rate of 25 cents. It is believed that the 25-mile grouping just mentioned results in a just and reasonable rate for reparation purposes. We find that the rate assailed was unreasonable to the extent that it exceeded 25 cents, plus 7-percent emergency charge; that complainant received the shipment as described; that the consignor, L. O. Brayton Construction Company, paid the charges thereon and the complainant bore those charges; that by an appropriate stipulation of record these parties agree that any award of reparation should be made to complainant; that complainant was damaged by bearing these charges and is entitled to reparation in the sum of $34.66, with interest. An order awarding reparation will be entered. 226 I. C. C. INVESTIGATION AND SUSPENSION DOCKET No. 4395 ALL FREIGHT BETWEEN BOSTON & MAINE RAILROAD POINTS Submitted January 20, 1938. Decided March 2, 1938 Proposed reduced rates on mixed carloads of all commodities, except as indicated, between Boston, Mass., and certain points in Massachusetts, Maine, New Hampshire, and New York, found justified. Order of suspension vacated and proceeding discontinued. W. A. Cole for respondent. Ralph H. Cahouet, J. H. Sturtevant, and Earle C. Doebener for protestants. REPORT OF THE COMMISSION DIVISION 4, COMMISSIONERS MEYER, PORTER, AND MAHAFFIE MAHAFFIE, Commissioner: By schedules filed to become effective August 23, 1937, respondent, Boston and Maine Railroad, proposed to reduce the rates on mixed carloads of all commodities between Boston, Mass., on the one hand, and Fitchburg, Greenfield, and Holyoke, Mass., Portland and Sanford, Maine, Dover, Keene, and Manchester, N. H., and Mechanicville and Troy, N. Y., on the other. Upon protest of the Eastern Motor Freight Bureau, Incorporated, the New England Motor Rate Bureau, Incorporated, and others, operation of the schedules was suspended until March 23, 1938. Only the protestants named were represented at the hearing. Except as noted, rates will be stated in cents per 100 pounds. Respondent and other carriers in this general territory have maintained so-called all-commodity rates for several years. The suspended rates are limited to apply only "on shipments received or delivered at team tracks or facilities at which freight is generally received or delievered (not private sidings) and will not apply from or to Hoosac or Mystic Wharves." They are published to apply on mixed carloads of all commodities except 22 named articles. The excepted articles include coal, explosives, lime, and milk. These rates generally are lower than the present rates and are intended to secure the line haul, exclusive of terminal services, of traffic which otherwise would move over the road in motortrucks. The suspended tariffs are designated as published to meet motortruck competition and carry an expiration date of December 31, 1937. Respondent explained, however, that these rates are intended to coordinate motor and rail transportation rather than to compete with motor transportation. The freight traffic transported annually by respondent declined from almost 24,000,000 tons in 1929 to 16,250,000 tons in 1936, a decline of 32 percent. The decrease in total less-than-carload traffic during the same period was 51.6 percent, while the decrease in local less-than-carload traffic was 68 percent. This decrease is attributed by respondent to the increase in over-the-road hauls by truck. Respondent explains that the suspended rates are designed to attract the road haul to the rails, leaving to trucks the terminal and delivery service of traffic which formerly moved in less than carloads but now is consolidated and moves in line-haul service by trucks. The following table shows illustrative suspended rates and the earnings thereunder. These rates are alternative, based upon the weight shipped: The suspended rates are believed to be above the out-of-pocket costs, although not based upon a cost study. The total operating expense of the Boston & Maine, based on the aggregate of "direct freight" and "apportioned freight" expense, but excluding taxes and other items beyond direct operating expense for 1935, is shown as 9.129 mills per net-ton mile and 18.35 cents per loaded-car mile. Respondent concedes that its operations would not be very profitable if all of its rates were on the level of the suspended rates. It is clear, however, that these rates are compensatory and would yield a profit above out-of-pocket costs. Respondent stresses the fact that the suspended rates are carload rates and do not include loading, unloading, or terminal services beyond team-track delivery. This delivery is less expensive in most instances than delivery to private sidings. In view of the limitation on service rendered, these rates properly cannot be compared, as to level, with normal carload or less-than-carload rates which contemplate a greater service. As illustrative of the cost, here eliminated, under less-than-carload service, respondent shows the average labor cost in November 1937 of handling a ton of less-thancarload freight ranged from 59.9 cents at Holyoke to $1.032 at Boston, and the system average was 79 cents. Protestants are associations of motor carriers. They contend that the suspended rates, which are lower than present rail or truck rates, are unreasonably low, and that approval of them will endanger protestants' rate structure. Reference is made, for example, to the present truck rates on a number of specified commodities, including asphalt, iron and steel articles, and paint, between Boston and Portland. These rates are 30 cents for weight units to and including 12,000 pounds, and 25, 20, and 16 cents for minima of 12,001, 20,001, and 24,000 pounds, respectively. The rates on sugar are 30, 18, and 15 cents for actual weight up to 6,000 pounds and minima of 6,001, and 12,001 pounds, respectively. The motor-carrier tariffs provide, as to these rates, that the charge for a shipment shall not exceed the charge for the next greater weight unit at the lower rate. However, the compared truck rates cover door-to-door service and, without a basis for comparing these different levels in the light of the different services contemplated, the present record does not warrant a finding that the suspended rates are unreasonably low. Certain truck operators have indicated that they desire to use the suspended rates. No shipper or receiver of freight or truck operator testified in opposition to the considered schedules. This record, therefore, is not convincing that protestants' rate structure is endangered. Protestants express the fear that the low level of the suspended rates will break down the present rail carload and less-than-carload rate structures. Reference is made to the fifth-class and third-class rates of 21 and 43 cents between Boston and Portland, as illustrative of present carload and less-than-carload rates, and to the present rail commodity rate of $2.45 per gross ton on pig iron. Protestants state that a shipper of pig iron may include one glass bottle, or other minor article, in a carload and thus get the benefit of the suspended all-commodity rate, which is equivalent to $1.40 per net ton. Respondent states that the restriction on the use of these rates protects the existing rate structure, as evidenced by the operation of the present all-commodity rates, and that any attempted subterfuge such as that suggested by protestants will bring further restrictions. It is contended that the suspended rates will be in violation of sections 2 and 3 of the Interstate Commerce Act in that these rates |