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return without authority. No need has been shown here for the proposed service in the return movement of new steel office furniture and scientific equipment other than rejected shipments of such articles.

Applicant is fit and able, financially and otherwise, to conduct the operations hereinafter authorized.

We find that the present and future public convenience and necessity require operation by applicant, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, (1) of new steel office furniture, and scientific equipment, both uncrated, from Rochester, N. Y., to points in Connecticut, Georgia, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, Virginia, West Virginia, Wisconsin, and the District of Columbia, and (2) of photographic machines and equipment, uncrated, between Rochester, on the one hand, and, on the other, points in the States named in (1) above; that applicant is fit, willing, and able properly to perform such service and to conform to the requirements of the Interstate Commerce Act and of our rules and regulations thereunder; that a certificate authorizing such operations should be granted; and that in all other respects the application should be denied.

Upon compliance by applicant with the requirements of sections 215 and 217 of the act and with our rules and regulations thereunder. an appropriate certificate will be issued. An order will be entered denying the application, except to the extent granted herein.

COMMISSIONER PATTERSON was necessarily absent and did not participate in the disposition of this proceeding.

49 M. C. C.

INVESTIGATION AND SUSPENSION DOCKET NO. M-2949 INCREASES, MIDDLE ATLANTIC AND NEW ENGLAND, 1948

Submitted March 11, 1949. Decided June 17, 1949

Increased rates and charges proposed by respondent common carriers by motor vehicle within trunk-line territory and between trunk-line and New England territories found not just and reasonable. Suspended schedules ordered canceled without prejudice to establishment of rates and charges 5 percent higher than those now in effect. Proceeding discontinued.

D. T. Waring, Edgar Watkins, L. J. Achorn, Herman B. J. Weckstein, Alexander Markowitz, and Allen Lesley for respondents and motor carrier associations.

Henry A. Cockrum and Donald C. Leavens for the Secretary of Agriculture, protestant.

S. W. Earnshaw, W. G. Burnette, S. H. Moersman, Philip G. Kraemer, J. R. Miller, S. A. Morrell, Joseph K. Reichbart, Edwin R. Liggett, Warren H. Wagner, Donald W. Crane, George V. Evans, H. W. Browne, J. T. Schatt, R. E. Covey, J. M. Davison, James H. Wallace, Carmine Dragotta, Frank S. McConough, D. W. Holmes, Martin E. Coughlin, Robert A. Blocki, Charles A. Mohn, Allen B. Ferguson, Jr., George W. Schaefer, Robert L. Knott, R. K. Knott, R. K. Woolridge, Charles J. Fagg, Michael J. O'Mahoney, Stanley H. Tippett, and H. J. Wagner for shippers, shipper associations, Port of New York Authority, and Norfolk Port Authority, protestants.

Bert Collins and Henry J. Bunker for interested carriers.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND ALLDREDGE BY DIVISION 2:

By schedules filed to become effective November 29, 1948, and later dates, the motor common carriers parties to certain tariffs of the Middle Atlantic States Motor Carrier Conference, Inc., hereinafter called the conference, the New York-New Jersey Tariff Bureau, Inc., agent, Adley Express Company, Inc., Continental Transportation Lines, Inc., Association of Interstate Motor Carriers, agent, Transamerican Freight Lines, Inc., Metropolitan Motor Carriers Confer

ence, Inc., agent, G. F. Morgan, agent, Reading Transportation Company, Richards Motor Freight Lines, and Tidewater Express Lines, Inc., propose a general increase in their class and commodity rates and charges between points within trunk-line territory,' and between points in that territory, and points in New England, on the other. Upon protest of a number of shippers, certain shipper organizations, manufacturers associations, chambers of commerce, traffic bureaus, the United States Department of Agriculture, and others, operation of the proposed schedules was suspended until June 28, 1949, or later.

The conference is the tariff publishing agent for approximately 1,000 motor common carriers operating wholly or in part within trunkline territory. More than 200 of them are class I carriers. The conference membership includes approximately 850 motor common carriers of general commodities. Numerous respondents participate in the proposed rates between trunk-line territory and New England. The respondents propose to increase their class and commodity rates within trunk-line territory, including the so-called New York shorthaul area,2 and between trunk-line territory and New England, generally by 10 percent. Certain commodity rates would not be increased and others would be increased by less than 10 percent, because of intense competition from railroads, motor contract carriers, private carriers, certain motor common carriers, and the Railway Express Agency. No change is poposed in accessorial charges, minimum charges per shipment, or the New York, N. Y. Zone 22 arbitraries over New York Zone 12 rates. The arbitraries applicable in the New York area are 4 cents or less on less than truckloads and 2 cents or less on truckloads. The reasonableness of these arbitraries is in issue in docket No. MC-C-882, Increases Middle Atlantic and New England Territories. The proposed increase is estimated to amount to no more than 7.5 or 8 percent of the total revenues under the rates in issue.

Prior to March 18, 1942, the motor common carrier rates in trunk-line territory were, in general, those prescribed as minimum reasonable class and commodity rates in Trunk Line Territory Motor Carriers Rates, 24 M. C. C. 501. On March 18, 1942, the respondents increased their rates, generally, by 6 percent, following the approval by this Commission of temporary increases in rail rates of like amount. On May 15, 1943, the rail increases were suspended, but the respondents' rates remained unchanged. Effective October 4, 1943, the respondents' rates in trunk-line territory were increased by 4 percent, and on May

1 Trunk-line territory, as used in this report, is described in appendix A to the report in Trunk Line Territory Motor Carrier Rates, 24 M. C. C. 501.

For general territorial descriptions of the New York short-haul area and New York zones 1 and 2, see Trunk Line Territory Motor Carrier Rates, supra.

14, 1945, emergency charges of 2.5 cents on less-than-truckload traffic, and 1 cent on truckload traffic, were added. On April 15, 1946, the emergency charges were canceled and the rates were increased by 15 percent on shipments of less than 6,000 pounds and 4 percent on shipments of 6,000 pounds or more. Effective January 6, 1947, the respondents' rates within trunk-line territory were further increased by 5 percent, and between trunk-line territory and New England by 7.5 percent, plus the New York area arbitraries. The last general increase became effective April 19, 1948. By that adjustment, certain so-called area arbitraries in trunk-line territory, ranging from 1 to 11 cents on shipments between points in the New York short-haul area and points in the remainder of trunk-line territory were reduced to amounts ranging from 1 to 4 cents, and arbitraries ranging from 1 to 7 cents on shipments originating at or destined to points in areas comprising about one-half of the territory were canceled. Before the addition of the reduced area arbitraries, the rates were increased within trunk-line territory by 12.5 percent and between that territory and New England by 10 percent. To the rates resulting from these percentage increases there were added 20 cents per 100 pounds on shipments weighing less than 2,000 pounds and 10 cents per 100 pounds on shipments weighing from 2,000 to 6,000 pounds. It is now proposed to increase from 20 and 10 cents to 22 and 11 cents, respectively, the differentials over the base rates.

The evidence submitted by the parties relates principally to the adequacy of the respondents' revenues in view of increased labor, material, and equipment costs. The evidence does not relate, and the issues in the proceeding do not embrace, the lawfulness of individual rates. In the following table are shown the present and proposed motor-carrier class rates in trunk-line territory for classes 1, 3, 4, and 5, as compared with the present rates of the railroads in that territory, and the motor common carrier rates in central territory for various distances:

49 M. C. C.

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