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DUFFY-TROWBRIDGE STOVE MFG. CO. V. ATCHISON, T. & S. F. RY. Co. 543

No. 20325

DUFFY-TROWBRIDGE STOVE MANUFACTURING COMPANY v. ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY ET AL.

Submitted August 23, 1928. Decided October 1, 1929

Rates on silica and molding sand, in carloads, from Ottawa, Utica, Arenzville, and Dallas City, Ill., to Hannibal, Mo., found to have been and to be unduly prejudicial. Present rates from Dallas City and Arenzville found to be unreasonable. Rates in the past and present rates from Ottawa and Utica found not unreasonable. Reasonable and unprejudicial rates prescribed. W. A. Weeks for complainant.

G. A. Hoffelder, H. W. Schaffer, A. B. Enoch, Walter McFarland, and Kenneth F. Burgess for defendants.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS AITCHISON, TAYLOR, AND PORTER BY DIVISION 3:

Exceptions were filed by defendants to the report proposed by the examiner. Our conclusions differ somewhat from those proposed by him.

Complainant, a corporation manufacturing stoves at Hannibal, Mo., alleges by complaint filed November 3, 1927, as amended, that the rates on silica and molding sand shipped in carloads from Ottawa, Utica, Arenzville, and Dallas City, Ill., to Hannibal were and are unreasonable, unduly prejudicial to Hannibal, and unduly preferential of Quincy, Ill., and St. Louis, Mo. Reasonable and nonprejudicial rates for the future and reparation on shipments delivered on and after November 4, 1925, are sought. Rates will be stated in amounts per ton of 2,000 pounds.

Hannibal is on the west bank of the Mississippi River, 117 miles northwest of St. Louis and 20 miles southwest of Quincy. Lines of the Chicago, Burlington & Quincy, hereinafter called the Burlington, extend from Hannibal through Quincy north to Dallas City, 76 miles, easterly to Arenzville, 146 miles, and northwest to Ottawa, 236 miles. Utica is a local point on the Chicago, Rock Island & Pacific, 9.5 miles west of Ottawa. The distance from Utica to Hannibal over the carrier named to La Salle, Ill., and the Burlington beyond is 209 miles.

The molding sand, valued at $1.45 to $1.75 per ton, was used in the manufacture of stove parts and other castings. It was shipped from Arenzville and Dallas City. The record does not show that any of this sand moves to St. Louis. The silica sand, valued at 90 cents to $1.25 per ton, is known as glass sand and is used to clean castings after molding. It was shipped from Ottawa and Utica. Hannibal and St. Louis are accorded the same rates from Ottawa and Utica. Complainant's foundry competes with foundries at Quincy and St. Louis.

In support of its allegation of unreasonableness complainant compares the rates assailed and ton-mile earnings thereunder with rates and ton-mile earnings from the origins considered to St. Louis and Quincy and certain points in Illinois, Iowa, and Missouri, of which the following are representative:

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Complainant asserts that since Hannibal is in Illinois territory, it should be accorded the same level of rates as applies to competing points in that territory. From Ottawa to 13 points in Illinois, for distances ranging from 121 to 299 miles, a rate of $1.64 applies which yields ton-mile earnings averaging 7.2 mills; to eight points in or near the Chicago, Ill., industrial district, for distances ranging from 94.6 miles to 126.6 miles, a rate of $1.13 applies, which yields ton-mile earnings averaging 9.7 mills; and rates from Arenzville, Ottawa, and Dallas City to St. Louis and Quincy average 11, 11.4, and 8.9 per cent, respectively, of the first-class rates between the same points, as compared with 15, 11.6, and 12.6 per cent, respectively, of the firstclass rates from the same points to Hannibal.

To show that the rates assailed are reasonable, defendants presented numerous comparisons. Some of these rates and certain other rates of record are listed in the following table:

157 I. C. C.

DUFFY TROWBRIDGE STOVE MFG. CO. v. ATCHISON, T. & S. F. RY. CO. 545

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The rates assailed compare favorably with most of the compared rates to central territory and are lightly higher than the compared rates in Illinois territory. In Illinois Classification, 55 I. C. C. 290, the Disque scale of class rates, which we had previously prescribed for central territory, was approved for application in Illinois territory south and east of a specified line from Chicago through Peoria, Il., to St. Louis. In Cancellation of Commodity Rates, 140 I. C. C. 27, also, we approved the same level of rates for both territories. In Ill. Silica Sand Traff. Bureau v. Atchison, T. & S. F. Ry. Co., 152 I. C. C. 749, 155 I. C. C. 687, we prescribed a distance scale of rates on washed or processed silica sand from Ottawa and Utica to destinations in Indiana, southern Wisconsin, and Michigan, under which the single-line rates are 90 cents, $1.20, and $1.92 for 76, 145, ard 236 miles, respectively, and under which the joint-line rate is $204 for 2.9 miles. The prescribed rates for distances 20 miles less in each instance are 12 cents less than those indicated, respectively. A difference in rates from Ottawa and Utica of 13 cents was preribed for Keokuk over Burlington for a difference in distance of 30 m les, and a difference of 12 cents for Keokuk under Quincy for a i.frence in distance of 27 miles.

The application of the foregoing distance scale for the distances here considered would result in both increases and reductions. Reparation was not sought in the case last cited and the extension of 1..e rates prescribed therein should be without peril of reparation No damage has been shown to have resulted from the undue prejudice hereinafter found to have existed and an award of reparation will not be made.

KO 30 Vol. 157 -35

We find that the assailed rates were not unreasonable as applied to past shipments; that the assailed rates from Utica and Ottawa are not unreasonable; that the assailed rates from Dallas City and Arenzville are, and for the future will be, unreasonable to the extent that they exceed or may exceed 90 cents and $1.20, respectively; that all of the assailed rates were, are, and for the future will be unduly prejudicial to Hannibal and unduly preferential of Quincy to the extent that they exceeded, exceed, or may exceed the rates to the latter point by more than 12 cents. An order for the future will be entered.

157 I. C. C.

No. 20967

PROCTER & GAMBLE COMPANY v. ALABAMA GREAT SOUTHERN RAILROAD COMPANY ET AL.

Submitted May 20, 1929. Decided October 9, 1929

Rate on red oil, in carloads, from Ivorydale (Cincinnati), Ohio, to Dallas, Tex., found unreasonable. Reasonable rate prescribed and reparation awarded. W. E. Willey and H. Ignatius for complainant.

Elmer Westlake, Robert Thompson, C. S. Burg, Herbert S. Harr, Anthony P. Donadio, Frank H. Cole, jr., B. F. Batts, and A. H. Kiskaddon for defendants.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS AITCHISON, TAYLOR, AND PORTER

BY DIVISION 3:

Exceptions were filed by complainant to the report proposed by the examiner, and oral argument was had. We have modified the conclusions recommended by him.

Complainant, a corporation, manufactures red oil, soap, and related products at Ivorydale (Cincinnati), Ohio. By complaint filed April 25, 1928, it alleges that the rate on red oil, in carloads, since May 6, 1926, from Ivorydale to Dallas, Tex., was and is unreasonable. We are asked to prescribe a reasonable rate for the future and to award reparation. Rates will be stated in amounts per 100 pounds.

Red oil, an inedible oil, also known as oleic acid, or olein, is a reddish-brown liquid derived from splitting the neutral oil which has run off of animal grease after a process of cooling and pressing. It is used in the manufacture of soap, oleates, medicine, and polishing compounds, and for scouring and oiling wool.

Ivorydale is within the switching limits of Cincinnati. Shipments originate on the Baltimore & Ohio and the Cleveland, Cincinnati, Chicago & St. Louis, and move over various routes to Dallas. The short-line distance is 960 miles. During the period from May 6, 1926, to April 21, 1928, complainant shipped a total of 61 carloads, or approximately 2.5 carloads per month. The average weight was 34,542 pounds per car. Camplainant's red oil is shipped in iron drums, in box cars. Claims for loss and damage are negligible.

Red oil is rated fifth class in the governing western classification. Prior to July 14, 1928, the applicable rate was a commodity rate of

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