Traffic between eastern and mountain Pacific territories. - For the purpose of estimating the amount of revenue produced by the rates subject to the divisions here in issue, the parties made traffic studies based on actual movements in 1953 and 1955. The eastern lines undertook to measure all carload traffic between eastern and mountain-Pacific territories covered by interline settlements in October 1953. The defendants applied a sampling process to abstracts of waybills of carload shipments in 1953 and 1955. Certain other differences in the scope of these studies are of little practical imporance. As a whole, the studies indicate that, if 1953 and 1955 may be considered representative years, the traffic between these territories amounts to an annual volume of 910,000 carloads or 22.9 million tons, and yields about $890 million in annual revenue. These figures do not include lessthan-carload traffic, which equals about 1.5 percent of the carload tonnage. Eastbound traffic predominates, accounting for 63 percent of the car loads, 70 percent of the tons, and 56 percent of the total revenue.

The primary commodity classifications of the carload traffic are represented by the following approximate percentages:

Although the parties differ as to the proper method of estimating representative average hauls within the respective territories, it is fair conclusion that the average movement in eastern territory is 600 miles and in western territory 2,000 miles, based on short-line distances. From this it would appear that the complainants perform approximately 23 percent of the total service, measured by short-line ton-miles. The same percentage represents their share of the joint revenue as indicated by the defendants' traffic studies, the shares of the midwestern lines and the defendants being 15 percent and 62 percent, respectively. The shares of individual carriers in the group totals as estimated by the defendants for 1953 are shown below:

The foregoing figures for the defendants reflect an understatement as the showing for the CMStP&P is incomplete.

The great majority of cars included in the studies were interchanged between eastern and western lines at Chicago, Ill., St. Louis, Mo. (including East St. Louis, Ill.), and Peoria, Ill. The Chicago interchange was over 60 percent and as much as 64 percent, including certain other junctions in the Chicago area. That at St. Louis was at least 18 percent and at Peoria 3 percent (increased to 7 percent with the addition of other interior Illinois cities). About 2.6 percent moved by car ferry across There was a negligible movement of about 0.3 percent or less through southern territory. A fairly substantiai number, 7 or 8 percent, were interchanged by the Wabash at Kansas City, Mo., and other midwestern points.

Lake Michigan.

About 27 percent of the traffic received a one-line haul west of the interchange points. Principally, these were movements over the AT&SF and the CMSt P&P, but it appears logical also here to take account of the CB&Q, a subsidiary of the GN and the NP, and the StLSW and the T&NO, which are parts of the SP system. The traffic in which the midwestern lines participate is interchanged between them and the defendants largely at Council Bluffs, Iowa (including Omaha, Nebr.), Kansas City, Mo.-Kans., El Paso, Tex., the Twin Cities (Minnesota Transfer, Minneapolis, and St. Paul, Minn.), and Colorado junctions (chiefly Denver and Pueblo). The defendants' study shows that average western hauls of this traffic in 1953 were 548 miles over midwestern lines and 1,666 miles over transcontinental lines. The study of the midwestern lines for that year shows an average haul of 702 miles for them and 1,603 miles for transcontinental lines.

The movements to and from the subdivisions of eastern territory were represented by the following percentages of total tons: central, 55.1; trunkline, 35.5; New England, 9.4. The revenue percentages were about the same. From the defendants' 1953 study it appears that about 36 percent of the cars originated or terminated in the metropolitan districts of the four major Pacific ports: Seattle, Wash., Portland, Oreg., and San Francisco and Los Angeles, Calif.

More than 90 percent of the movement between eastern and mountain-Pacific territories is in boxcars and refrigerator cars. The corresponding percentage for the more diversified traffic to and from midwestern territory is 82 percent. The percentages for the various types of equipment are shown in the following table:

Traffic between transcontinental and midwest territories.-Because of differences in the scope of the traffic studies of the defendants and the midwestern lines, it is impossible to estimate closely the volume of movement and revenue involved in Sub-No. 1. The midwestern study indicates a movement of 330,000 cars between these territories in 1935 and a total revenue of $264.6 million. The broader study of the defendants includes the intermountain region not covered by this complaint and railroads which are not complainants therein. It shows a movement of 787,549 cars in 1953 and total revenue of $634.8 million. It appears from the two studies that the directional movements were about 60 percent eastbound and 40 percent westbound.

The midwestern study shows the following distribution of volume and revenue among the primary commodity classes:

The most important points of interchange between the defendants and the midwestern lines are (in the order of importance) Kansas City, Council Bluffs, El Paso, Twin Cities, and Colorado Junctions. According to the midwestern lines' study the average actual haul per car for them on this traffic was 695 miles and for the defendants, 1,583 miles. The revenue was divided 26.58 percent to the midwestern lines and 73.42 percent to the defendants. The average actual hauls shown in the defendants' study were 620 miles for the

midwestern lines and 1,488 miles for the defendants, and the respective shares of revenue were 25.9 percent for the former and 74.1 percent for the latter.

The revenue interests of individual carriers in the midwesternmountain-Pacific traffic, according to the defendants' study, are shown below.

For the purpose of these proceedings 3 subdivisions of midwestern territory have been designated, as follows: Midwest east-Iowa, Wisconsin, the Upper Peninsula of Michigan, southeastern Minnesota, northwestern Illinois, and northern Missouri; Midwest southwest-Arkansas, Louisiana, Oklahoma, Texas, southern Missouri, and eastern New Mexico; and Midwest northwest-Kansas, Nebraska, South Dakota, southwestern Minnesota, and eastern Colorado. The percentages of total movement to and from these subdivisions were, east 60 percent, southwest 33 percent, and northwest 7 percent.