The two State proceedings1 and that initiated by us were heard on a common record before a representative of the New York commission and our examiner, who was authorized to conduct the hearing for the Pennsylvania commission.

The exceptions rating which the respondents propose to cancel is sixth class, minimum 23,000 pounds, on dry earth paint, and on nine other articles listed under the caption "Dry earth pigments.' The proposed cancelation would result in the application of the classification ratings of fifth class on dry earth paint, dry ground iron ore, dry ochre, iron oxide, and mortar color; but no change in ratings on the other five articles would result. The present minimum weight of 23,000 pounds would be continued by a general exception to the classification. The respondents contend that the exception rating of sixth class is unreasonably low as a motor rating on the articles rated fifth class.

The articles move in volume from only a few producing points in the territory. The principal movement has been from Bethlehem and Easton, Pa., and of the two, Easton is the more important origin. From those origins the preponderant movement has been to New York, N. Y., and certain nearby points in New Jersey. The average distances to that destination area are 90 miles from Easton and 100 miles from Bethlehem.

3

From the initial filing of motor-carrier tariffs with the Commission until March 2, 1938, the rates to New York City zone 12 on these articles, 28 cents from Bethlehem and 27 cents from Easton, were on the basis of fourth class (50 percent of first class), which was the minimum class rate observed by the respondents in the territory on truckload traffic, although during this period these commodities were rated sixth class in the exceptions tariff. Effective on the date last mentioned the truckload class-rate stop was reduced to fifth class, and the fifth-class rates applied from both origins until February 1941 when minimum class and commodity rates, prescribed for application in trunk-line territory in Trunk Line Territory Motor Carrier Rates, 24 M. C. C. 501, become effective. Under the new adjustment, sixth class became the applicable class-rate stop on truckloads where the first-class rate was 66 cents and less. This was for distances of approximately 100 miles and less.

In order to avoid the loss of revenue that would follow the reduction from fifth-class to sixth-class rates, the respondent transporting these commodities from Easton to New York City and nearby points ini

1 New York Public Service Commission Case No. 11619, and Pennsylvania Public Utility Commission Complaint Docket No. 14012.

2 New York, N. Y., zone 1 includes most of the Borough of Manhattan and parts of the Boroughs of Bronx, Brooklyn, and Queens.

3 Rates herein are stated in cents per 100 pounds.

tiated truckload commodity rates on the basis of fifth class. They became effective, apparently without objection by the shippers. It is represented by the respondents, therefore, that the effect of the proposed cancelation of the exceptions rating of sixth class between all points in the territory would be to restore the relative parity of rates, distance considered, between Easton and Bethlehem. The present commodity rate to New York City zone 1 from Easton, 23 cents, would remain unchanged, and a fifth-class rate of 24 cents to New York City zone 1 would become effective from Bethlehem on those commodities rated fifth class in the classification in lieu of the present sixth-class rate of 19 cents. The shipper at Easton has complained of the present disparity in the rates from Easton to the New York City area as compared with the rates from Bethlehem.

By means of a questionnaire to its member carriers, the conference ascertained that the commodities under consideration have moved from 13 origins to 5 destinations. A total of 21 specific movements within trunk-line territory were reported by 12 carriers. Under the present minimum class-rate restrictions and those approved in Minimum Class Rate Restrictions, 44 M. C. C. 367, and 44 M. C. C. 686, for distances of approximately 100 to 450 miles or where the first-class rates range from 67 cents to $1.24, the lowest class rates on truckloads are the fifth-class rates. Higher class-rate restrictions apply for longer distances. Consequently, no change would be made in the rates for hauls in excess of 100 miles. The proposed cancelation would result in increases only where the hauls are shorter. Of the 21 movements, 9 were for hauls of 100 miles or less.

On minimum shipments of 23,000 pounds, the present rates on those commodities from Easton and Bethlehem to New York City zone 1 for the distances of 90 and 100 miles, respectively, yield truck-mile revenues of 58.8 and 43.7 cents, respectively, and the proposed fifth-class rate of 24 cents from Bethlehem would yield 55 cents a truck-mile. Some of the carriers have complained to the conference that certain of the articles contaminate their vehicles unless packed in tight containers, and where contamination results thorough cleansing of the equipment is necessary before it may be used for other commodities.

The rail carriers currently maintain exceptions ratings of sixth class, minimum 36,000 pounds, on dry earth paint and column 25 L (approximately 22.7 percent of first class), minimum 40,000 pounds, on the other commodities, between points in trunk-line territory. On exceptions, the Price Administrator contends that in comparison with these rail ratings the proposed application of the fifth-class rates by the respondents would be unreasonable. He urges also that if there be preference and prejudice in the maintenance of a lower basis of rates from Bethlehem than from Easton to a common destination area, this could be

44 M. C. C.

removed as well by reducing the rates from Easton as by increasing those from Bethlehem.

The motor-carrier rates on this traffic have generally been higher than sixth class in the past. At one time between these points they were on the fourth-class basis. For hauls of more than 100 miles they are now fifth class or higher. We conclude that the proposed rates on this traffic do not exceed a maximum reasonable basis.

We find that the proposed schedules are just and reasonable. An order will be entered discontinuing the proceeding.

44 M. C. C.

CASES DISPOSED OF BY THE COMMISSION WITHOUT
PRINTED REPORT DURING THE TIME COVERED
BY THIS VOLUME

COMPLAINTS AGAINST AND INVESTIGATIONS INTO MOTOR CARRIER RATES AND PRACTICES

BY COMMISSIONER MILLER

MC-C-390, BLAW-KNOX COMPANY, POWER PIPING DIVISION V. Acme FREIGHT LINES, INC., ET AL. Decided July 18, 1945. Assailed joint rates on less-thantruckload shipments of iron and steel articles from Pittsburgh, Pa., to Dania and Perkins, Fla., found not unreasonable or otherwise unlawful. Complaint dismissed. C. Peyton Collins for respondent. Edgar Watkins, Jr., and C. R. Miner for defendants.

BY DIVISION 5, COMMISSIONERS LEE, ROGERS, AND PATTERSON MC-C-384. See MC-53515, infra.

APPLICATION CASES-COMMON AND CONTRACT CARRIERS

BY DIVISION 5, COMMISSIONERS LEE, ROGERS, AND ALLDREdge

MC-86692, PHILLIPS TRANSPORT COMPANY, INCORPORATED, CONTRACT CARRIER APPLICATION. Decided April 12, 1945. On reconsideration, findings in prior report, 23 M. C. C. 640, modified by limiting applicant's operations to described classes of shippers. Commissioner Lee dissented in a separate expression. Appearances shown in prior report.

Decided January

MC-88447, FRANK JACOB COMMON CARRIER APPLICATION. 16, 1945. Upon reconsideration, findings in prior report on further hearing, 43 M. C. C. 803, modified, and certificate granted. Household goods, between points in a certain area in Illinois, Indiana, Michigan, and Wisconsin, and between points within that area, on the one hand, and, on the other, 26 States and the District of Columbia, over irregular routes. Application in other respects denied. Other report 33 M. C. C. 271. Appearances in prior reports, and Wilhelmina Boersma for protestants.

BY DIVISION 5, COMMISSIONERS LEE, ROGERS, AND PATTERSON

MC-200, RISS & COMPANY, Inc., Common CARRIER APPLICATION. Decided November 27, 1944. On reconsideration, findings in prior report on further hearing, 43 M. C. C. 801, reversed. Applicant found to have failed to establish its

right to a certificate under the "grandfather" clause of the act, authorizing it to serve St. Louis, Mo., as an intermediate point of origin in connection with authority heretofore granted to transport general commodities, except livestock, over a

specified route between Chicago, Ill., and Denison, Tex. Other prior report, 21 M. C. C. 521. Commissioner Alldredge dissented. Appearances shown in prior reports.

MC-200 (Sub-No. 46), RISS & COMPANY, INC., COMMON CARRIER APPLICATION; and MC-30077 (Sub-No. 1), Monark Motor FREIGHT SYSTEM, INC., EXTENSION OF OPERATIONS-PENNSYLVANIA TURNPIKE. Decided February 3, 1945. Certificate granted. In MC-200 (Sub-No. 46), general commodities, with exceptions, between specified points in Kentucky, Missouri, Nebraska, Iowa, Illinois, Indiana, Ohio, Pennsylvania, New York, New Jersey, and Massachusetts, traversing West Virginia, over specified routes, and of certain commodities, from and to named points in the above States and Connecticut and Kansas, over irregular routes. In MC-30077 (Sub-No. 1), general commodities, with exceptions, over the Pennsylvania Turnpike, as an alternate route between Harrisburg and Pittsburgh, Pa., with no service at intermediate points, in connection with routes otherwise authorized. Applications denied in other respects. Ferdinand Born, Eugene L. Cohn, D. C. Stone, and Jacob Weiss for applicant. David Axelrod, Robert W. Brunow, Harry E. Boe, Phil W. Bowman, C. S. Burg, G. H. Dilla, James J. Doherty, George F. Dyche, S. L. Edelstein, Harry A. Evernden, Howell Ellis, Zachary D. Ford, Jr., Jerome D. Fenton, Rex H. Fowler, Jack Goodman, Thomas B. Harvey, Walter Hitchen, Paul J. Hergenroeder, Jack B. Josselson, C. G. Kosky, Ewaldt E. Kundtz, A. H. Kiskaddon, A. E. Later, B. W. LaTourette, Roland J. Lehmán, Richard J. Lehman, Oscar Lindstrand, C. R. Morrow, Fred J. McManus, Walter R. McFarland, Ralph N. Neumann, Ellis F. Powell, Martin E. Perrine, M. G. Roberts, W. O. Ristine, Floyd F. Shields, Vernon L. Stouffer, Richard W. Sharpless, Joseph H. Welker, L. E. Wells, W. D. Wilbur, Harry A. Yockey, and Kirkwood Yockey for protestants. Isadore H. Schwartz for intervener.

MC-330 (Sub-No. 2), J. M. STEARN EXTENSION OF OPERATIONS-FROZEN FOODS. Decided November 15, 1945. Certificate granted. Specified commodities, from specified points in Virginia, to points in Delaware, Maryland, New Jersey, New York, Pennsylvania, West Virginia, Ohio, North Carolina, and the District of Columbia, over irregular routes, with rejected or damaged shipments on return to points of origin. Application denied in other respects. Glenn F. Morgan and Charles A, Nelson for applicant. John T. Money, Frank X. Masterson, and E. B. Ussery for protestants.

MC-340 (Sub-No. 1), J. L. QUERNER EXTENSION OF OPERATIONS-ADDITIONAL POINTS AND COMMODITIES. Decided June 22, 1945. Certificate granted. Specified commodities, from or to certain points in Indiana, Illinois, Missouri, and Texas, over irregular routes. Application denied in other respects. A. M. Felts for applicant. David Axelrod, Marshall O. Bell, Walter N. Bieneman, B. C. Brile, Carl B. Callaway, T. S. Christopher, F. C. Culkin, James L. Givan, M. J. Hrebec, A. H. Hall, Joseph H. Hays, Glover Johnson, Rollo E. Kidwell, B. W. La Tourette, E. G. Minor, Kenneth McCalla, James W. Nisbet, E. D. Perkins, Maynard F. Robinson, G. M. Rebman, Frank H. Rawlings, R. W. Sharpless, Tom P. Scott, Herbert L. Smith, J. R. Turney, Albert G. Walker, Frank M. Wilson, and Kirkwood Yockey for protestants.

MC-429. See MC-29600, infra.

MC-431 (Sub-No. 2), W. R. LORENTSON EXTENSION OF OPERATIONS-HOUSEHOLD GOODS. Decided November 19, 1945. Certificate granted. Household goods, between points in Pacific County, Wash., on the one hand, and, on the other, points in Columbia, Clatsop, Tillamook, and Lincoln Counties, Oreg., and from points in Pacific County to points in Washington County, Oreg., and to certain points in Multnomah and Clackamas Counties, Oreg., over irregular outes. Application denied in other respects. E. V. White for applicant. Wm. Ellis for protestants.