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minal expenses add to the cost of opera- | of the total passengers transported tion.-Fares between Bergen County, move by private car and less than 8 N. J. and New York, N. Y., 6 M. C. C. 25 (28).

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percent by bus.-Eastern Mich. Transp. Corp.-Control-Eastern Mich. Motorbuses 25 M. C. C. 483 (487).

18. Empty movement.-Cost of operation is increased by reason of con- That Pacific Greyhound was forced to siderable travel empty, traffic moving reduce its fare does not establish that principally in one direction. About 300 it was injured thereby unless the repercent more busses are used during duced fare was on too low a basis. morning and afternoon rush hours. Earnings compared, the reduction tends Busses frequently run empty, being sent only to illustrate the benefit to the pubback to make an additional schedule, lic which results from competition, which practically doubles the mileage rather than that protestant was innecessary to transport one pay load.-jured.-All American Bus Lines, Inc., Fares between Bergen County, N. J. and New York, N. Y., 6 M. C. C. 25 (31). Pacific Greyhound's net profit of 25. Disposition of fractions.-The $5,766,106 in 1935, permitting payment commission has approved additions to of dividends totaling $4,514,307 on a rail fares so that all fares might end total of preferred and common stock in 0 or 5, (214 I C. C. 174), and there is of $16,267,257, indicate that Greyhound no reason why bus fares should not be lines are in financial position to meet similarly treated.-Fares between Ber-reasonable competition; that applicant's gen County, N. J. and New York, N. Y., lower fares are not too low.-Id., p. 6 M. C. C. 25 (33).

It is the usual practice of bus lines to make all fares end in 0 or 5; applicant's rail fare of 24 cents will be 25 by its bus route.-Burlington Transp. Co. Extension-Leavenworth (Passengers), 13 M. C. C. 287 (289).

30. Competition affecting fares.Maintenance of lower fares by some respondents than by others, to and from the same points, on account of slight differences in distance traveled, would create a chaotic condition. The carrier having the lower fare would get the traffic, forcing down the fares of other carriers, regardless of the revenue effect.-Fares between Bergen County, N. J. and New York, N. Y., 6 M. C. C. 25 (34).

18 M. C. C. 755 (777).

780.

The New Jersey territory is adequately served by rail. Applicant's rates are 10 percent higher than rail. Erie R. has the advantage over applicant in fares and time schedules. However, the Erie service involves a transfer of passengers.-Inter City Transp. Co., Inc., Extension-Jersey City-Liberty, 11 M. C. C. 109.

35. Returns from entire operation.— Respondent should not be required to continue operating at a loss because of the possibility of offsetting loss on a division of the route from another more profitable operation.-Fares between Bergen County, N. J., and New York, N. Y., 6 M. C. C. 25 (33).

40. Reasonable fares, in general.Though it is not possible from the record to ascertain the value of property which the Arnold Line devotes to public use and on which it is entitled to earn a reasonable return, its operations for 3

Contention that if operations had been continued, in absence of alleged unfair competition loss might have been erased, is of little merit. A motor carrier should not be required to continue operating at a loss, as a purely experimental proposition, in the hope of ulti-years show a satisfactory improvement; mately earning a profit.-Id., p. 33.

Survey of intercity automobile passenger transportation to and from Detroit shows that more than 92 percent

territory is growing rapidly; with amounts reserved for depreciation, means will be ample for financing replacements and credit, without increas

ing fares.-Fares between Arlington with connecting carriers to other points County, Va., and D. C., 17 M. C. C. 267. in the State in interstate movement, to prevent undue competition, is contrary to sec. 216 (a), making it the duty of every common carrier to establish through routes and joint rates with connecting carriers.-Inter City Transp. Co., Inc., Extension, 11 M. C. C. 109 (110).

The experience of the electric line cannot be used as a criterion to measure the financial results of the new form of operation, the Auto Railroad. It is in serious need of larger revenues and proposed increased fares are not unlawful.-Id.

In absence of information as to profit which accrued to the lessor, or of a showing that protestant's method of round-trip excursion operation is as economical and efficient as it would be if it operated its own equipment, its net profit ro loss is not of significance in determining whether proposed rate is compensatory. - Fares between New York City and Southeastern New York, 18 M. C. C. 243 (247).

Before proposed rate may be condemned, it must be found that it does

It is the duty of every common carrier of passengers to establish through rates with other motor common carriers, just and reasonable joint fares and charges, regulations and practices relating to issuance, form, and substance of tickets. If protestants or other motor carriers fail or refuse to do so, the matter may be brought to the commission's attention in an appropriate proceeding.-Lincoln Trails System, Inc., 2 M. C. C. 627 (630).

While operations under traffic arrangements in substance may constitute only lawful interchange of equipment, no showing to that effect was made. All the commission can do without additional information about the traffic ar

or will violate some provision of the act. Since it is proposed by several operators, opposed by only one, considering earnings per bus-mile, it is shown to be non-compensatory.-Id. 100. Joint rates.-Agreement provid-rangements is to admonish the carriers ing that applicant undertakes now and for the future not to solicit passengers in New York City, not to handle such passengers in interchange arrangements

to cease operation of their busses on routes over which they have no operating rights.—Maine Central Transp. Co., 2 M. C. C. 590 (596).

Section 216. (b) [Sec. 316 (b) U. S. Code.] Rates, facilities for carriers of property.-It shall be the duty of every common carrier of property by motor vehicle to provide safe and adequate service, equipment, and facilities for the transportation of property in interstate or foreign commerce; to establish, observe, and enforce just and reasonable rates, charges, and classifications, and just and reasonable regulations and practices relating thereto and to the manner and method of presenting, marking, packing, and delivering property for transportation, the facilities for transportation, and all other matters relating to or connected with the transportation of property in interstate or foreign commerce. (Part II, sec. 216, Aug. 9, 1935, c. 498, sec. 1, 49 Stat. 558.)

Notes of Decisions

4. Safe and adequate equipment to be 225. Commodity rates.

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25. Competition considered.

30. Volume of traffic bearing on reasonableness.

275. Minimum rates.

300. Truck-water rates.

400. Pick-up and delivery service.
405. Constructive mileage; arbitraries.

4. Safe and adequate equipment to be furnished.-Only a limited number of motor common carriers have suitable equipment for transport of commodities

40. Distance considered in determining requiring refrigeration or other protec

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45. Disruption of rate adjustment.

50. Difference in value as between grades of same commodity.

51. New and second-hand articles. 60. Weight basis.

61. Alternative minima.

70. Comparisons of rates; with rail rates. 71. With water rates.

tive service. In general there are no satisfactory facilities at common-carrier terminals for refrigeration.-Pomprowitz Extension, 9 M. C. C. 301 (303).

Applicant's superior terminal service is the reason for shippers desiring its proposed operation; much of its business has been secured to the detriment

72. With rates of other motor carriers, of existing carriers.-American Steve

73.

common and contract.

With expense of private operators. 75. In opposite direction. In the same territory.

76.

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100. Costs considered; truck-capacity.

Terminal services.

Operating costs.

Depreciation of equipment.

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Transit costs.

Loss and damage to shipments.
Wages; prices; taxes.

Out-of-pocket costs.

125. Commodities; characteristics;

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less-than-truckload

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dore Co. Extension, 14 M. C. C. 61 (63).

Because of limitations in equipment, motor carriers do not have available at all times and at all points vehicles equipped for transport of perishables. Tariff rule should be revised to provide that shippers shall ascertain if vehicles equipped for protection of perishables are available before tendering them for shipment. If such vehicles are available the shipments should be accepted.Mid-Western Motor Freight Tariff Bureau, Inc., v. Eichholz, 4 M. C. C. 755 (759).

There is a lack of sufficient refrigerator equipment capable of maintaining temperatures of zero or less while

Classifications; classification rules. the outside temperature is 90°, and of

keeping commodities warm in winter.Growers Cold Storage Co., Inc., Extension, 9 M. C. C. 563 (566).

5. Rates initiated by carriers.-The intendment of the whole of part II seems reasonably clear that the right and duty to initiate rates remains with the carrier, subject to the commission's power of suspension for a limited period, its authority and duty to prescribe lawful rate or maximum or minimum rate, or both, when existing rate is unlawful.-Consolidated Freight Co. Commodities from Flint, Mich., 21 M. C. C. 329 (331).

Individual motor carriers are free to establish rates to develop their traffic, if they do not contravene the act.Western Territory Commodity Rates and Ratings, 17 M. C. C. 511 (523).

Prior to passage of the act, rates were generally matters of private agreement, and actual rates were not readily obtainable by competing carriers. For this reason rate cutting was not so prevalent as it became immediately after the effective date of provisions relating to filing and posting of tariffs.Commodity Rates in New England Territory, 8 M. C. C. 387 (389)*.

Motor carriers in mid-western territory do not maintain a uniform basis or level of rates. Prior to 1932 complainants generally maintained rates the same as or higher than rail rates; some still maintain rates similar to rail rates, or rates based on State prescribed distance scales; others maintain rates not related to rail rates.-Mid-Western Motor Freight Tariff Bureau, Inc., v. Eichholz, 4 M. C. C. 755 (761).

Rates prescribed are minimum rates only, the motor carriers are free to, and should, where conditions permit, establish higher rates which do not exceed a maximum reasonable basis or otherwise contravene provisions of the act.-Id., p. 779.

Changes which represent an increase rather than a reduction require no prior authorization from the commission. Motor Carrier Rates in Middle Atlantic States, 4 M. C. C. 231*.

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While some responsible shippers in the territory are concerned with the amount of rates, the majority are concerned with uniformity of rates. forts to stabilize rates after enactment of the Motor Carrier Act, see-Rates between Ariz., Calif., N. Mex., and Tex., 3 M. C. C. 505.

It is impracticable to attain any uniformity in rates through voluntary action of the carriers. There is need for establishment and maintenance, temporarily at least, of a level below which respondents may not go except by authorization.-Central Territory Motor Carrier Rates, 8 M. C. C. 233*.

When initial filing of tariffs was made numerous discrepancies, inequalities and inconsistencies appeared, each carrier learned of the rates charged by its competitors. The effect was a general reduction to the level of the lowest rate maintained by any competitor.-Id., 8 M. C. C. 233; Id., 8 M. C. C. 131 (134).

Use of agency tariffs as a means of specifying prescribed rates is not to be taken to mean that any respondent shall necessarily participate in those tariffs or join any motor carrier association.-Id., 8 M. C. C. 233*; Motor Carrier Rates in New England Territory, 8 M. C. C. 287*.

Class rates approved and established by most common carriers in New England were constructed by use of formula which gives weight to the material elements of the operating and pick-up and delivery costs of numerous carriers; intended to yield a 10-percent profit above costs.-Fifth Class Rates between Boston and Providence, 2 M. C. C. 530 (531).

Because of the vast number of carriers, common, contract, and private, which are competing for traffic with rail and rail-water lines, it would be impossible for organized highway carriers to proceed independently or as individuals.-Fifteen Percent Case, 19371938, 226 I. C. C. 41 (73)*.

6. Reasonable rate, construed.—Any rate which is less than compensatory

must be condemned as unjust and unreasonable under sec. 216, which requires the maintenance of just and reasonable rates.-Rates over Carpet City Trucking, 4 M. C. C. 589 (592); Fifth Class Rates between Boston and Providence, 2 M. C. C. 530; Commodity Rates of Okla. & Tex. Transfer Co., 6 M. C. C. 259 (260); Commodity Rates from Gulf Ports to Ala., Ga., Tenn., 10 M. C. C. 106 (109); Western Territory Commodity Rates and Ratings, 17 M. C. C. 511 (523).

That a rate may be unreasonable because unduly low has long been recognized.-Fifth Class Rates between Boston and Providence, 2 M. C. C. 530 (548); Rates over Carpet City Trucking, 4 M. C. C. 589 (592).

Rates of motor common

carriers

should return a reasonable profit above the cost of transportation. - Central Territory Motor Carrier Rates, 20 M. C. C. 725 (731)*.

be obtained.-Central Territory, Motor Carrier Rates, 8 M. C. C. 233*.

A rate which yields approximately the same as the average for the group cannot be found noncompensatory or unreasonably low solely for that reason.-Rope and Sash Cord from Rockford, Tenn., 14 M. C. C. 437.

That the net income of vendor's business for 1934 was only $93 cannot be explained away by the depressed business conditions and the poor condition of vendor's equipment; business may again be depressed and condition of the equipment not improved. Other factors which might affect earning power materially are possible changes in wages and working conditions or in the prices of materials and supplies.-Union Bus Lines, Inc.,-Purchase-Amberson, 5 M. C. C. 201 (205).

Investment of a motor carrier in

tangible property is relatively small as compared with the corresponding investment of a railroad company, and Rates and classifications which pre- this fact must be considered in detervail have many inconsistencies and inmining the return which a motor carcongruitles and are otherwise imper-rier may fairly be allowed to earn.—Id.,

fect. Rates over Freight Forwarders, Inc., 4 M. C. C. 68 (77) *.

10. Earnings on all services to be reasonable.-Maintenance of rates on

basis of offsetting losses through profits accruing from carriers' other operations would be unsound; also unfair to carriers not in position to meet competition financed in that manner.-Fifth Class Rates between Boston and Providence, 2 M. C. C. 530 (549).

That a carrier's operations as a whole have yielded some profit during a stated period does not warrant a conclusion that particular operations which comprise a comparatively small part of the whole have been profitable or otherwise.-Cotton Clothing and Underwear in the South, 10 M. C. C. 691 (695).

To the extent that rail competition makes it necessary to go below full allocated cost plus a reasonable profit on some rates, there must be an opportunity to go above that standard on other rates, if adequate earnings are to 237167-4076

p. 205.

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