exhibited statements indicating that cars were delayed at New Orleans unloaded on an average of about fourteen days, while complainants presented figures showing the delay was about eight days.

It was testified that cars were worth about $2.50 per day to the carriers, though the demurrage charge was only $1 per day and car rental paid to each other was but 50 cents. The same witness also testified that although there had always been this marked delay on export shipments, yet the carriers had never charged shippers demurrage on that account, but prior to 1903 and subsequent thereto had voluntarily maintained 3 car-service rules on lumber consigned to New Orleans: First, upon that consigned for domestic use, a demurrage charge of $1 per day was made after forty-eight hours free time. Second, upon that consigned on what was termed a "port" bill of lading twenty days free time at New Orleans was allowed up to sixty days prior to the hearing in this case, when such free time had been reduced to ten days. Third, lumber for export was allowed to remain indefinitely in the car awaiting water transportation. Although this defense of the rate was made at the hearing, yet when the rate was increased the delay at New Orleans was not urged as one of the causes. The reasons assigned at that time were that the lumber business was a prosperous business and the rates on that commodity were not bearing a just share of the transportation expenses, which had largely increased owing to the advanced cost of railroad operation.

Since March, 1907, the defendants have adopted the rule "not to issue through bill of lading unless steamer is in sight." This is accomplished by the carrier's representative in New Orleans receiving telegraphic notice that ships are coming in. This gives several days' notice before the time of loading. Under this new practice, when the railroad is advised that a shipper has lumber to export, it issues a contract in which it specifies when the loading is to take place. By this method defendants have materially decreased the delay at New Orleans. There are not berths enough at times at New Orleans for the ships loading or unloading. This in part results in the delay of cars at New Orleans. The delay is also no doubt somewhat accounted for by the fact that when traffic was congested between Memphis and New Orleans lumber often did not arrive at the wharves in time to reach the ship to which it was billed. Necessarily this lumber had to be held on the wharves or in the cars until the next ship sailed for the foreign port.

Not only was there delay at New Orleans, but likewise at Memphis. One witness testified that 60 cars loaded with lumber were delayed in the Memphis yards five and two-tenths days before they were placed at his place of business for unloading. Under the rules, two days additional were allowed for unloading, making the actual time the cars were in the yards seven and two-tenths days.

At the time of the increase of the rate there was a marked scarcity of cars, which continued until the fall of 1907. Since that time it is reported that the defendants have a large number of cars idle.

Wages and cost of material in connection with railroads have largely increased during the last ten years, as in all other lines of business, including that of manufacturing lumber. On the other hand, the enterprise of the railroads has kept pace with such increase by improvements in their roadbeds and equipment to such an extent that, as the superintendent of transportation of the Yazoo & Mississippi Valley Railroad testified at the hearing, they had just about offset the increased cost growing out of increased wages and cost of material.

There has been a substantial increase in the market price of both gum and hardwood lumber from 1897 to 1907. This has been due both to the scarcity of timber generally, thereby increasing the price of stumpage, and to increased price of labor and supplies.

While cotton is valued at about $2,500 per car, and hardwood lumber at $500, and while cotton pays 17 cents per 100 pounds, and lumber 12 cents, yet the lumber loading 54,000 pounds to the car earns $64.80, while cotton loading 25,000 pounds earns only $42.50. Up to November, 1906, when this same 17-cent rate was in effect, as a matter of fact the carrier earned less, owing to the practice of equalizing rates on export traffic through the several ports, and the testimony is that such equalization on cotton through New Orleans resulted in 1906 in reducing the actual rate received to 15 cents.

Molasses, valued at $1,300 per car, moving north in box cars at 10 cents per 100 pounds produces a revenue of about $42.50 per car, and sugar, valued at about $1,400, carried at the same rate, produces a revenue of $36.60 per car. Cotton-seed meal, valued at about $400, moves on a 10-cent rate from Memphis to New Orleans and produces a revenue of $50 or $55.

The Illinois Central hauls a carload of bananas weighing 20,000 pounds from New Orleans to Memphis at 35 cents, or $70 per car, while the revenue received from a car of oak lumber in the reverse direction, Memphis to New Orleans, is $64.80. These bananas are hauled in special trains at passenger speed, in expressly constructed ventilator cars, with a messenger carried free both ways, and in this business, too, the cars are held at New Orleans a long time, awaiting the arrival of ships loaded with the fruit.

Gum lumber, moving between the same points at the same time in the same train, though about 30 per cent less valuable than oak and weighing about one-fourth less, is transported on a 10-cent rate, thus producing $42 revenue, as against $64.80 for the oak. In other words, under the present adjustment of rates oak pays 54 per cent

more revenue per car than gum, of which there is a large volume shipped.

Following are rates on some commodities of heavy tonnage hauled by the Illinois Central between Memphis and New Orleans. None of these commodities load a greater weight per car than hardwood lumber, unless it be cotton ties or scrap iron, and most of them load much lighter.

The regular class rates between Memphis and New Orleans show & rate of 12 cents for Class A, including jute bagging, asbestos roofing, asphalt paving blocks, clay, and cotton ties. As shown above, two of these articles are hauled at a much lower rate under a commodity tariff.

At the hearing the general freight agent of the St. Louis, Iron Mountain & Southern Railway testified that that carrier had never been a party to the 10-cent rate on oak lumber when it was in force between Memphis and New Orleans; that he did not consider that rate remunerative and would not seek it on those terms; that his company did not seek it at the 12-cent rate, and that the few cars that had been handled were proffered it without solicitation. There is no tariff on file with the Interstate Commerce Commission which indicates that this company ever participated in the 10-cent rate referred to. It was testified that when the "river line" of this carrier was completed the distance would be 532 miles. This carrier also had to pay a bridge charge at Memphis of $3.50 per car on all the lumber and staves moved, and had to pay the Illinois Central a switching charge at Memphis of $2 per car on a portion of such traffic.

The following table, made up from the reports of the Illinois Central and the Yazoo & Mississippi lines to this Commission, tells an interesting and instructive story of the development of traffic upon these roads and the increasing volume of returns therefor during the past fourteen years.

a This average is based on the number of cars reported as in the service of the company on June 30. Based on freight, plus mixed train mileage, from 1900 to 1907 and on freight, plus 75 per cent of mixed train mileage, from 1893 to 1899.

The annual report form did not require this data prior to 1902.

13 I. C. C. Rep.

It will be noted that since 1902 the capacity of the average freight car of the Illinois Central has increased from 31 tons to 36 tons, or 16 per cent; that the average tractive power of its locomotives has increased 17 per cent, and the average number of tons of freight per train-mile has increased from 275 to 364, or over 30 per cent. The capacity of the average freight car of the Yazoo & Mississippi Valley has increased from 23 to 31 tons, or 35 per cent; and while the tractive power of its locomotives has not increased, yet the average number of tons of freight per ton-mile during the same period has increased from 215 to 318, or practically 50 per cent. This indicates that these defendants may now haul from 16 to 35 per cent more freight per car and from 30 to 50 per cent more freight per train than they could in 1902, just prior to the advance in the rate. Comparing the present with 1893, the Illinois Central may now haul considerably more than 100 per cent greater tonnage per train.

The rate of 12 cents per 100 pounds for the haul of 395 miles yields the Illinois Central :00607 per ton-mile as compared with .00577, its average receipts per ton-mile on all traffic. The Yazoo & Mississippi Valley at the same rate for its 455-mile haul between the same points earns .00527, compared to .0075, its average receipts.

In determining what is a reasonable and just rate many considerations are involved. Among these are the general financial and physical condition of the road, the character of the commodity in question, whether it constitutes a large or small part of the business of the carrier, whether it is economical or expensive to handle, how it compares with other commodities hauled, and, as evidencing the railroad's own judgment, whether a different rate has been in effect on this commodity at some other time.

A review of the record makes it apparent that lumber constitutes probably as large a tonnage, if not the largest, of all the commodities transported on the Illinois Central and the Yazoo & Mississippi Valley railways between Memphis and New Orleans; that it is about the lowest grade of freight moved (except coal); that it is less liable to damage than any other commodity; is loaded and unloaded at the expense of the shipper; is moved in any kind of a car, and moves with probably greater regularity throughout the year than any other commodity.

It is true that lumber cars are delayed at New Orleans for export, but this is a matter within the control of the carrier and results in part from a lack of adequate dock facilities at the port. It could be remedied by increasing these facilities, or by not moving the lumber from Memphis until just prior to the time the ship is to sail. In fact, pending these proceedings, this latter method has been adopted, and the evidence is that it has greatly relieved the delay. At any rate