tional rates upon the patrons of the road. Proposed Increases in New England, 49 I. C. C. 421, 430, 431. (ww) Proposed increased commodity rates on sugar from New Orleans, La., to Chattanooga, Tenn., found justified, in that the rates are relatively low as compared with rates from New York. N. Y., and Savannah, Ga. Sugar from New Orleans, La., 49 I. C. C. 494. per ton rates Arkansas City to Memphis, Tenn., Cairo, and Thebes, Ill., St. Louis, Mo., and points in central freight association territory. The existing rates from Arkansas City to St. Louis, Cairo and Thebes for beyond were 13, 11, 11 and 11c per 100 lbs; the proposed rates 14.5, 13, 13 and 13c. The existing rates from Memphis were 12.5, 11, 11, and 8c, and from Helena 12.5, 11, 11, and 9c. The existing rate on haruwoods from Arkansas City to Memphis was 8.75c; proposed rate, (xx) Proposed increased rates on acid 9.75c. While the latter rate was under in tank cars, between Illinois producing suspension the carrier changed the rate points. on the one hand, and Chicago, Ill., to Memphis to 12c. The existing rates and Chicago rate points, St. Louis, Mo., from Arkansas City to East St. Louis, and Milwaukee, Wis., on the other, found St. Louis, Cairo and Thebes, 427, 420, justified. in that they compare favorably 338, and 316 miles, were 13, 13, 11, and would still be much lower than the and 11c, yielding an average present rates in C. F. A. territory. Acid mile revenue of 6.4 mills; while probetween Illinois Points (No. 2), 49 I. C. posed rates of 14.5, 14.5, 13 and C. 498. 13c would yield 7.3 mills. The from Arkansas points southeast and southwest of Little Rock, and substantially equi-distant from the destinations named, yielded average per ton-mile revenue of 8.8 mills, while rates from Arkansas points intermediate to Arkansas City to Thebes proper and for beyond would yield 8.23 mills. HELD, (1) that the proposed increased rates on lumber in carloads from Arkansas City to Mississippi crossings, Memphis to St. Louis, inclusive, and to Cairo, for beyond, were justified; (2) that proposed rates from Arkansas City to Thebes, for beyond, and to points in central freight association territory, were not justified. Schedules under suspension ordered cancelled; (3) that existing rates from Arkansas City to points in Illinois-Wisconsin, BuffaloPittsburgh, western trunk line, central freig... association, and eastern trunk line territories were discriminatory to the extent that they exceeded the rates from Helena, Ark., by more than 2c. V. DISCRIMINATION THROUGH AD- Lumber from Arkansas City, Ark., 43 I. VANCE. (vy) The Commission considered proposed increased rates on tobacco from North Carolina points to C. F. A. territory. From Virginia cities to Chicago the existing and proposed rates on plug tobacco were 30.8 and 36c per 100 lbs., c. 1. and 45.5 and 53c, 1. c. 1.: on smok ing tobacco, 45.5 and 53c. c. 1.. and 62.8 and 74c 1. c. 1. To Cincinnati, on plug tobacco, 27 and 31.5c, c. 1. and 39.7 and 46c 1. c. 1.; and on smoking tobacco, 39.7 and 46c c. 1., and 57.6 and 67.5c 1. c. 1. The existing and proposed rates from North Carolina points were constructed by adding differentials of 26 and 33c, on plug tobacco. c. 1. and 1. c. 1., and 20c on smoking tobacco. a. q., to the rates from the Virginia cities. HELD that the proposed increased rates had been justified. Orders of suspension vacated. Southeastern Manufactured Tobacco (No. 2), 50 I. C. C. 120. See Absorption of Charges §3 §19. In General. C. C. 423. (b) The Commission considered proposed increases, varying from 1 to 9.5c per 100 lbs.; in the rates, a. q., on cotton factory and knitting factory products (a) Complainants attacked the rates on from southeastern points in central hardwood lumber from Arkansas City, freight assn. territory. It was proposed Ark., to points in Illinois-Wisconsin, Buf- to continue to Chicago, rate territory the falo-Pittsburgh, western trunk line, cen- existing a. q. rate of 55c as a 1. c. 1. rate tral freight association, and eastern and establish a carload rate of 52c; to trunk line territories as unreasonable five points viz., Detroit, Cleveland, Toand discriminatory compared with the ledo. Fort Wayne and Akron, the factor rates from Helena, Ark. The Commis- of 20c accruing from the joint rates to sion also considered proposed increases the lines north of the Ohio River was to in the rates on lumber in carloads from be raised to 15% less than second class; and to other points in central freight north of the river were 2c over the Galassn. territory the factor applicable north liver rates. On January 1, 1916, the arof the river (rule 25) was to be increased bitrary to Kentucky points had been in5%. The traffic in question encountered creased from 2 to 34c, and the carriers competition from northeastern producing proposed a like increase to points north points, and there was active competition of the river. Rates from all points on between manufacturers in Chicago rate the L. & N. in the territory east of the territory and manufacturers located at Mississippi River, south of a line drawn the five named cities. The value of cot-west from Vicksburg through Jackson, ton-piece goods ranged from 20 to 30c and Meridian, and Montgomery, and west, per pound they were shipped without of the Chattahoochie River to the Gulf, special equipment, loss and damage were blanketed to the destinations inclaims were nominal, and the traffic les- volved. The average distance from the sened the empty return haul from the blanketed area to Cincinnati, O., was 762 south. The volume of business shipped miles; average haul, 777 miles. The disunder the rates in effect had increased tance from Falco to Cincinnati was 828 rapidly until by 1916 it approximated 50,- miles, but it was well within the outer 000,000 annually; and manufacturers limits of the blanket. It was the gen would increase their shipments in car-eral policy of the L. & N. to make the loads if there were a carload rating low-rates from points on short lines like the er than on 1. c. 1. shipments. The exist- F. A. & G. R. R. higher than those from ing a. q. rate of 55c from Macon, Ga., to junction points; but from four short Chicago, 835 miles, yielded 13.2 mills per lines connecting with the L. & N. and ton mile; the proposed carload rate of running in a southerly direction to navig52c would yield 12.5 mills. From Macon able waters the L. & N. shrank the blankto Detroit and Kalamazoo, Mich, Youngs et rate 1c to points south of Nashville town, O., and Grand Rapids, Mich., 836, and 2c to points north. The object of 834, 878 and 883 miles, the existing rates the shrinkage was to present a southof 55, 64, 64 and 66c yielded 13.2, 15.3, ward movement of lumber; but about 14.7 and 14.9 mills; while proposed rates one-half of complainant's lumber moved of 64.5, 65.3, 65.3 and 67.6c would yield to Pensacola for export over the L. & N. 15.4, 15.7, 14.9 and 15.3 mills. These at 34c, which took no similar action to rates included a factor of 35c south to encourage its movement toward the inthe Ohio River, while from South Caro- terior. HELD, (1) that neither the inlina points the factor was 45c. From creased nor the proposed increased rates Laurens, S. C., to Cleveland, and Toledo, on yellow pine lumber from Falco to the O., 791 and 704 miles, the existing destinations involved had been justified; through rates were 65 and 65c; proposed, (2) that the existing rates from Falco 73.6 and 71.4c. HELD, that the proposed were, and since January 1, 1916, had been increased rates a. q., on cotton factory unreasonable and discriminatory to the and knitting factory products from south-extent that they exceeded the rates from eastern points to points in central freight assn. territory, other than Chicago rate territory, were unreasonable and discriminatory; and (2) that the proposal publish lower carload rates to Chicago rate territory while increasing them to competitive points would work undue prejudice to the latter. Cancellation of schedules directed. Southeastern Cotton Goods, 43 I. C. C. 530. to (c) Complainant attacked the rates on yellow pine lumber from Falco, Ala., | on the F. A. & G. R. R., 26 miles from Galliver, Fla., its junction with the L. & N. R. R., to points in Kentucky and Tennessee, and to various points north of the Ohio River, as unreasonable and discriminatory. Rates to the Kentucky and Tennessee destinations were on an arbitrary 3c per 100 lbs. over the rates from Galliver, and rates to the points Galliver by more than 2c per 100 lbs.: and (3) that for the future they would be discriminatory to the extent that they exceeded the blanket basis of rates from Galliver to the same destinations. Reparation to be awarded. McGowan-Foshee Lumber Co. v. F. A. & G. R. R., 43 I. C. C. 581. (d) The Commission considered proposed increases, ranging from 3.5 to 4.5c per 100 lbs., in the carload commodity rates on cement plaster and commodities taking the same rates from Plasterco, Tex., to stations on the St. L. & S. F. R. R. in Oklahoma, Kansas, Missouri and Arkansas and to Memphis, Tenn. These proposed rates were compared with the existing rates from Acme, Tex. The traffic passed through Altus, Okla. Plasterco was 142 miles from Altus, on the K. C. M. & O. Ry.; while Acme was on the F. W. & D. C. Ry., 5 miles from Quanah, 74, 75, and 112c per 100 lbs., and the Tex., which was on the St. L. & S. F❘ proposed rates 85, 88, and 112c. Between Ry., 41 miles from Altus. The existing Lawton, Okla., and Fort Worth, Waco rate from Acme and Plasterco to Mem- and Wichita Falls, Tex., 155, 242, and 101 phis, 773 and 873 miles, was 18c, yield- miles, the existing rates were 60, 90, and ing 4.66 and 4.12 mills per ton mile. The 54c and the proposed rates 75, 98, and carriers had voluntarily grouped Plast- 65c. 1. Contention that Rates were erco and Acme on both northbound and Subnormal: In 1892 the rates on the southbound traffic generally. HELD, first five classes between Houston and that the proposed increased rates had Texas common points for distances from not been justified since no sufficient rea- 177 to 187 miles were 88, 80, 67, 65, and son appeared for making an exception 49c, and the rates from Galveston, made with respect to the rate on cement by adding differentials, 98, 90, 77, 70, plaster. Cancellation of schedules di- 54c. The tendency of the class rates in rected. Cement-Plaster from Plasterco, Texas from 1895 till 1916, when the Tex., 43 I. C. C. 615. Shreveport scale was prescribed, was downward. 2. Advances in Class Rates From Mississippi and Missouri Rivers: The first-class rates, St. Louis to Texas common points in the years 1887, 1889, 1903, and 1917, were 120, 133, 137, and 147c; from St. Louis to Oklahoma City, in 1893, 1904, and 1917, 133, 130, and 130c; Kansas City to Ardmore, Okla., 1892, 1905, 1909, and 1917, 113, 110, 120, and 120c; Kansas City to Woodward, Okla., in 1892, 1905, 1909, and 1917, 110, 110, 110 and 110c. 3. Class Rates from the Rivers to Oklahoma and Texas, Higher than Rates Within or Between Those States: The first-class rates from Kansas City (e) In 40 I. C. C. 121, the Commission considered the rates on cottonseed oil, soap stock, tank bottoms, and inedible tallow in carloads from points in Arkansas, Louisiana, Missouri, Oklahoma and Texas to Cincinnati, O., and Ivorydale and St. Bernard, points within the Cincinnati switching district in creased in June, 1915, in conformity with the findings in The Five Per Cent. Case, 32 I. C. C. 325, 331. On rehearing it appeared that while the rates to Cincinnati, were increased, the rates to Chicago, Ill., and St. Louis, Mo., where competing soap manufacturers were located, had not been increased. Complainants and Arkansas City to Gainesville, Tex., had been subjected to an additional expense of from $2.75 to $13.75 per car. The only attempt to justify the failure to increase the rates to Chicago while increasing those to Cincinnati, was that Chicago was not in C. F. A. territory and hence not covered by the holding in the Five Per Cent Case, and that the lines between Chicago and the river crossings had demanded no increase in their divisions. The rates from Monroe, La., Paris Tex., Little Rock, Ark., and Muskogee, Okla., to Cincinnati, 733, 868, 627, and 772 miles, were 31.5, 41.5, 24.5, and 36.5c, yielding 8.6, 9.6, 7.8, and 9.5 mills per ton-mile. The fifth-class rates were 72.7, 82.7, 44.7, and 63.8c. HELD that the increased rates attacked were prejudicial to Cincinnati, Ivorydale, and St. Bernard. Reparation denied. Globe were 127c; to Fort Worth, Tex., 507 and 325 miles, 127c; Oklahoma to Texas, 433 miles, 106 and 109c. 4. That L. C. L. Freight did not Pay its Proportion of Transportation Cost: In the territory involved commodity rates were published on most traffic moving in carloads. Consequently the bulk of the traffic carried under class rates moved in less-than-carload quantities. Carload freight loaded to 66.70 per cent of weight-carrying capacity; 1. c. 1. freight to only 13.51 per cent. 1. traffic was 5.30 per cent of all traffic On the A. T. & S. F. Ry., the 1. c. and paid 18.25 per cent of total freight revenue; on the St. L. & S. F., 3.84 per cent of traffic, paying 16.64 per cent of revenue. The terminal expenses on lessthan-carload traffic for both terminals was $3.64 per ton or 18.2c per 100 lbs. On the first four classes for distances of 10 miles, the existing rates were 13, 12, 10, and 8c; the proposed rates 23, 19, 16, and 14c; and the rates under the new Shreveport scale 23, 19, 16, and 14c. The relative percentage of traffic moving under these classes was 18, 8, 28, and 46; (f) The Commission considered proposed increases in the class rates between Oklahoma and Texas, between Kansas and the panhandle of Texas, and between Shreveport, La., and points in Oklahoma, Between Oklahoma City, Okla., and Fort Worth, Wichita Falls, total, 100 per cent. 5. Traffic and Fiand Houston, Tex., 206, 181, and 465 miles, the existing first-class rates were nancial Conditions of Carriers in Oklahoma not Superior to those in Texas: There was a substantial similarity be- 12, 11, 10c; (7) cancellation of suspendtween transportation conditions in the ed tariffs directed. Southwestern Class territory involved and that throughout Case, 48 I. C. C. 379. which the Shreveport scale was effec tive. The transportation conditions be- VI. REMEDIES AND PROCEDURE. See Procedure. (a) Parties agreed to waive all technical requirements and guaranties of pleading in order that an expeditious and practicable procedure might be adopted. The Fifteen Per Cent Case, 45 I. C. C. 303, 311. (b) If rates authorized to be increased are held by unexpired orders of the Comfore filing such increased rates, apply mission, parties to such orders must, befor and secure specific modification of such orders. The Fifteen Per Cent Case, See Procedure IV. to (a) After tariffs publishing rates Missouri River cities was filed, respondents applied to Commission for permission to make corresponding increases to Des Moines; but as order had not pired application was denied. Trunk Line Rate Increases, 43 I. C. C. 481, 490. ex Western tween Oklahoma and Texas, and between Oklahoma and Shreveport, were sufficiently similar to those between Shreve- $192. In General. port and Texas, that for rate-making purposes they might be treated similarly. 6. Effect of Adoption of Proposed Distance Rates: The existing first-class from Hobart to Wichita Falls was 51c for a haul of 97 miles; proposed, 71c for 122 miles. From Woodward to Wichita Falls, 221 miles, the existing rate was 78c; proposed, 85c. From Muskogee to Georgetown, 420 miles, the existing rate was 106c; proposed, 109c. From Ridgeway, Tex., to Hugo, Okla., the existing rate was 43c for 71.4 miles; proposed 45 I. C. C. 303, 325. rate, 78c for 147.5 miles; former Shreveport scale, 55c for from 70 to 80 miles; §212. Orders. and new Shreveport scale, 52c for 70-75 miles. Unreasonableness: The Oklahoma-Texas scale rates on the first four classes were 23, 19, 16, 14c for 10 miles, 53, 45, 37, 32c for 100 miles, and 100, 85, 70, and 60c for 300 miles. The corresponding rates under the Missouri RiverNebraska scale were 24, 20.4, 16.8, and 14.4c for 10 miles, 42, 35.7, 29.4, and 25.2c for 100 miles, and 105, 89, 74, and 63c for 300 miles. HELD (1) that the proposed rates were discriminatory so far as the proposed method of arriving at distances determining the rates differed from the method prescribed in Shreveport Chamber of Com. v. K. C. S. Ry., 39 I. C. C. 296; (2) that the proposed rates were Carrier's agent at destination is unreasonable; (3) that the percentage under no duty to notify consignor by relationship of rates under the various wire that shipment was not promptly declasses to the first class should be 100, livered. His duty goes no further than 85, 70, 60, 48, 52, 40, 35, 30, 25; (4) that to give intended purchaser notice of the differentials on joint line hauls should arrival. Famechon Co. v. C. B. & Q. for the various classes be 8, 7, 6, 5, 4, 4, 4, R. R., 45 I. C. C. 598, 600. 3, 2, 2,; (5) that the following were reasonable maxima between points in the territory involved: 10 miles or less, 23, 19, 16, 14, 10, 10, 8, 7, 6, and 5c; 100 to 105 miles, 53, 45, 37, 32, 25.5, 27.5, 21, 18.5, 16, 13c; 200 to 210 miles, 79, 67, 55.5, 47.5, 38, 41, 31.5, 28, 23.5, 19.5c; 400 to 425 miles, 104.5, 88.5, 73, 63, 50, 54, 42, 36.5, 31, 26c; except (6) that rates between points in Oklahoma or Kansas and points in Texas differential territory might exceed the above maxima by the following differentials: 20 miles and less. 2, 2, 1, 1, 1, 1, 1, 1, 1, and 1c; 100 to 110 miles, 11, 10, 9, 8, 7, 8, 6, 5, 4, 3c; 200 to 250 miles, 25, 23, 21, 20, 14, 15, 13, (a) AGENCY CROSS REFERENCES See Cars and Car Supply §12 (g); (b) If a service is to be performed by the carrier, then the agency employed is the agent of the carrier, and the carrier is free to choose his agent and but if the agency employed is the agent to secure the collection of his charges; of the shipper, the rule is different. Emery & Co. v. B. & M. R. R., 47 I. C. C. 200, 202. AGGREGATED SHIPMENTS CROSS REFERENCES See Facilities and Privileges §10 (e). (a) A rule permitting the concentrat- the White Pass & Yukon Route, narrowing at the point of shipment of numerous gauge, extended from Skagway, Alaska, small shipments belonging to different to White Horse, Yukon Territory, about shippers into one large shipment for the 110 miles. "White Pass & Yukon transportation to one consignee by a Route" was a trade name, there being steamship line may or may not be proper. no corporation of that name. The route There appeared no justification for applying a special rate on small shipments the P. & A. Ry. & Nav. Co., from Skagwas made up of the properties of (1) aggregated at destination after transportation service had been completed. S. way to the international boundary at White Pass, 20 miles; (2) the B. C. & P. Co. Ownership of Atlantic S. S. Y. Ry. from White Pass to Pennington, Lines, 4 31. C. C. 168, 178. about 33 miles; (3) the B.-Y. Ry. from Pennington to White Horse; and (4) the B.-Y. Nav. Co., Ltd., operating steamboats between White Horse and Daw AGREEMENTS See Division III; Special Con- son, Yukon Ter., and between Caribou, tracts. ALASKA. I. REGULATION OF RATES. Yukon Ter., and Atlin, B. C. The shares, bonds and debentures of these several properties were held by a holding company, the W. P. & Y. Ry. Co., Ltd., of London, England. The managing officers of the route were separately See Adjacent Foreign Country. elected by the several boards of direc(a) Complainant attacked the rates tors of the constituent companies, the fares and practices of certain transpor- holding company having no part in the tation, wharfage, mining and mercantile operation or management of the propercompanies governing the transportation ties. The Am. Y. Nav. Co. operating of persons and property between points a line of steamers on the Yukon River in Alaska and between points in the and its tributaries between Dawson and State of Washington and points in Al-St. Michael, was controlled by the W. aska as unreasonable and discriminatory, P. & Y. Route. The Valdez Dock Co., alleging that the traffic of certain large operating a wharf at Valdez; the Nor. shippers engaged in mining and mercan- | Com. Co., engaged in mercantile busitile enterprises in Alaska was transport-ness at numerous points in interior ed for materially less than the tariff rates Alaska; the K. C. Corp., engaged in minexacted from the general public, and thating copper at Kennecott; and the Pac. by means of combinations and conspira- Coast Co., a holding company owning cies defendants had obtained a monopoly the stock of the P. C. S. S. Co., the Nor. of the transportation, mining and mer-Nav. Co., and of certain railways and cantile business of Alaska. Thereupon coal mines in the United States, were the Commission, on its own motion, in- also respondents. Issues and Order stituted a general investigation of the of Investigation. The complainant rates, practices, rules and regulations of alleged that the rates and fares defendants and other carriers serving of all the respondents were unAlaska, and an inquiry into the owner-reasonable; that the ocean carriers were ship or interest of respondent railroad in parties to an agreement to limit commines or in minerals transported by petition by so arranging schedules and them. Respondent's Routes: The Alas-routes as to give each a practical monka S. S. Co., Pacific S. S. Co., Border opoly of traffic between certain parts Transp. Co., Humboldt S. S. Co., C. P. Ry. or sections of Alaska; that the ocean Co's. Steamship Lines and the G. T. P. carriers applied lower rates on the trafS. S. Co., Ltd. served southeastern Alas- fic of cannery and mining companies ka; the Pac. S. S. Co. and the Alaska S. than on that of other shippers; and S. Co. being the principal ocean carriers that the C. R. & N. W. Ry. and the serving Alaska. The C. R. & N. W. Ry. Am. Y. Nav. Co. made rebates to certain extending from Cordova to Kennecott, large shippers. The order of investigaAlaska, about 196 miles, over a route in- tion, besides these allegations, included volving extensive fillings and heavy rock an inquiry into ownership by respondent work, was a standard-gauge road with railroads or their interest in mines, or few sharp curves and maximum gra- minerals they transported. Reasonabledients not exceeding 1 per cent., and ness of Rates: The attack dealt with (1) operated a tri-weekly mixed freight and traffic originating in the United States passenger train service. The lines of and moving by rail to Seattle, and thence |