SAND, GRAVEL, CRUSHED STONE, AND SHELLS WITHIN THE SOUTHWEST No. 170001 RATE STRUCTURE INVESTIGATION, PART 11, SAND AND GRAVEL Decided September 30, 1929 Upon petition of defendant and respondent southwestern lines, findings in former report, 155 I. C. C. 247, modified so as to eliminate therefrom rates between various points located on the Mississippi River. Formula for computing distances approved in the former report, also clarified. Original order modified accordingly. SUPPLEMENTAL REPORT OF THE COMMISSION LEWIS, Chairman: In our former report in these cases, 155 I. C. C. 247, we found the interstate rates on sand, gravel, crushed stone, shells, and related commodities taking the same rates, in carloads, between points in the Southwest unreasonable, and entered an order requiring the future maintenance of the single-line and the joint-line basis of rates there approved. Those findings and the order embraced rates between various west-bank and east-bank Mississippi River points. The southwestern lines, respondents and defendants in these proceedings, have now filed a petition requesting modification of our former report and order so that they will not apply to rates between various points located on the Mississippi River. The points which they desire excepted are set forth in the appendix to this report. In support of their request petitioners point out that the present rates between the points here sought to be excluded are generally controlled by carriers operating routes exclusively east of the Mississippi River. They also point out that the rates between these points are now included within the readjustment of rates which the carriers in southern territory have proposed within the Mississippi Valley, which proposed readjustment is involved in Investigation and Suspension Docket No. 3250 now pending before the commission. Petitioners state that if their petition is not granted two sets of rates will be in effect between these points, that is, one basis will apply via the lines operating east of the Mississippi River and another 1 This report also embraces the proceedings listed in the margin of the first page of the original report, 155 I. C. C. 247. via lines operating routes west of said river. They say that the rates published via the west-side lines will move no traffic and will be nothing more than paper rates. Petitioners refer to our report on reconsideration in Consolidated Southwestern Cases, 139 I. C. C. 535, where, having before us, among other things, a similar situation as here presented, we modified our previous findings therein so that they would not apply to rates between various west-bank Mississippi River crossings and points east of the river. No objection has been offered by anyone to the granting of the request here made. On the other hand the New Orleans Joint Traffic Bureau supports the petition. The findings of our previous report in these proceedings are hereby, and the order will be, modified so that they shall not apply to rates between the points set forth in the appendix to this report. In accordance with finding No. 7 in our former report the order there entered required defendants and respondents, in computing distances for the application of the interstate rates there prescribed, to use the shortest routes over which carload traffic can be moved without transfer of lading. Defendants and respondents construe this formula for computing distances as authorizing them to hold the rate between any two points to a basis not lower than that obtained by applying to the shortest distance between such points either the single-line or the joint-line scale according as to whether such shortest distance is made over a single-line or a joint-line route. That is, if a joint-line route between two points makes the shortest distance defendants and respondents construe the formula as giving authority to publish between such points over any route a rate no lower than that obtained by the application of the joint-line scale for such shortest distance notwithstanding a lower rate would be obtained by the application of the single-line scale to the distance made over an existing single-line route between such points. Such construction would result in a rate over the single-line route which would be higher than the single-line scale rate authorized for such distances. The single-line scale was intended to be used for computing maximum rates over single-line routes and the joint-scale for computing maximum rates over routes composed of two or more lines not under common control and management and operated as one system. We here find that, in determining the maximum interstate rates prescribed in our former report, 155 I. C. C. 247, the following formula shall be used: In computing distances, the shortest single-line routes over which carload traffic can be moved without transfer of lading shall be used in connection with the single-line scale, and the shortest joint route over which carload traffic can be moved without transfer of lading shall be used in connection with the joint-line scale. An order will be entered in accordance with the above findings. APPENDIX Points on Mississippi River between which petitioners seek to have rates excluded from original findings and order From St. Louis, Mo. Helena, West Helena, and Outer Yard, Ark. Vicksburg, Miss. Natchez, Miss. Baton Rouge, La. Harahan, La. Points in the switching district of New Or leans located on the west bank of the Mississippi River as defined in the terminal tariffs of the T. P., S. P., and M. P. To Helena, West Helena, and Outer Yard, Ark. Memphis, Tenn. Angola, La. Baton Rouge, La. North Baton Rouge, La. Harahan, La. New Orleans, La., and points in the New Orleans Helena, West Helena, and Outer Yard, Ark. Helena, West Helena, and Outer Yard, Ark. Helena, West Helena, and Outer Yard, Ark. Points in the switching district of New Orleans on Helena, West Helena, and Outer Yard, Ark. 157 L. C. C. No. 20415 STATE OF IDAHO, EX REL. PUBLIC UTILITIES COMMISSION OF IDAHO, v. OREGON SHORT LINE RAILROAD COMPANY ET AL. Submitted January 18, 1929. Decided October 2, 1929 1. Class rates on traffic moving via the Rogerson-Wells cut-off between points on the Oregon Short Line in Idaho north and west of Pocatello and points on the Southern Pacific in California Group 1 found unreasonable but not otherwise unlawful. Reasonable basis of rates prescribed for the future. 2. Commodity rates in effect between the same points over the cut-off found not unreasonable or otherwise unlawful. 3. Class and commodity rates between the same Idaho points and points on the Southern Pacific in Nevada via the cut-off found not unreasonable or otherwise unlawful. 4. Class and commodity rates between Los Angeles, Calif., and the same Idaho points found not unreasonable or otherwise unlawful. Frank L. Stephan, J. M. Lampert, Oppenheim & Lampert, and H. O. McDougall for complainant. Sherman M. Coffin, Asher B. Wilson, John W. Graham, H. R. Brashear, R. S. Sawyer, H. W. Prickett, Seth Mann, and William C. McCulloch for interveners. J. M. Souby, Douglas L. Smith, Geo. H. Smith, Dana T. Smith, J. E. Lyons, A. L. Whittle, J. R. Bell, G. H. Muckley, and Douglas F. Smith for defendants. REPORT OF THE COMMISSION DIVISION 3, COMMISSIONERS AITCHISON, TAYLOR, AND PORTER PORTER, Commissioner. Exceptions were filed by the parties to the report proposed by the examiner, and the case was argued orally. Our conclusions differ somewhat from those proposed. By complaint filed December 2, 1927, as amended, the State of Idaho alleges that all class and commodity rates between all points on defendants' lines in Idaho north and west of Pocatello and all points on defendants' lines in California Group 1 territory and in Nevada, via the Rogerson-Wells cut-off, hereinafter referred to as the Wells line, were and are unreasonable, unjustly discriminatory, and unduly prejudicial. No evidence in support of the allegation of unjust discrimination was introduced, so that allegation will not be further considered. Lawful rates via the Wells line are sought Rates will be stated in amounts per 100 pounds. The Chamber of Commerce, Oakland, Calif.; Chamber of Commerce, San Francisco, Calif.; Portland Traffic & Transportation Association of Portland, Oreg.; Associated Jobbers & Manufacturers of Los Angeles, Calif.; Los Angeles Chamber of Commerce; Hailey Commercial Club, Hailey, Idaho; Shoshone Commercial Club, Shoshone, Idaho; Jerome Chamber of Commerce, Jerome, Idaho; Buhl Rotary Club, Buhl, Idaho; Filer Kiwanis Club, Filer, Idaho; Burley Chamber of Commerce, Burley, Idaho; Utah Shippers Traffic Association, Salt Lake City, Utah; Idaho Rate Association, Twin Falls, Idaho; and Twin Falls Chamber of Commerce were permitted to intervene. The Wells line extends from Wells, Nev., to Rogerson, Idaho, 94.6 miles, and was opened for operation February 15, 1926. What is now known as the Wells branch of the Oregon Short Line, hereinafter called the Short Line, includes the cut-off and 29 miles of track previously in existence, which extends north from Rogerson to Twin Falls. Twin Falls is on a branch line of the Short Line, known as the Twin Falls branch, which extends 74 miles in a northeasterly direction from Buhl to a connection with the main line at Minidoka, Idaho. Another branch line extends in a northwesterly direction from Rupert, a point on the Twin Falls branch 14 miles southwest of Minidoka, to a connection with the main line at Bliss, Idaho. Bliss is 78 miles west of Minidoka over the main line. Other points particularly referred to herein are American Falls and Pocatello, Idaho, main-line points 34 and 58.4 miles east of Minidoka respectively. Prior to the opening of the Wells line, traffic from California points to Idaho points moved east from Wells over the Southern Pacific to Ogden, 175 miles, north over a branch of the Short Line to McCammon, Idaho, 111 miles, and thence west through Pocatello, 22.7 miles west of McCammon. Distances between San Francisco and Idaho points on the Short Line were reduced by the opening of the Wells line as follows: To Twin Falls 302 miles; to points from Rupert to, but not including Bliss 211 miles; to points from Bliss west across Idaho 202 miles; to points from Minidoka west, including the Ketchum and Hill City branch, which extends north of the main line, but not including Bliss, 184 miles; to American Falls 118 miles; and to Pocatello and points north 68 miles. Complainant proposes for application between points in Idaho north and west of Pocatello, on the one hand, and San Francisco and California points in Group 1, on the other hand, class rates the same as those prescribed in Arizona Corporation Commission v. A. E. R. R. Co., 113 I. C. C. 52, 142 I. C. C. 61, hereinafter referred to as |