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District of Columbia, Baltimore, terri-| England Motor Carrier Rates, 11 M. C. tory.-Mid-Western Motor Freight Tar-C. 325 (326)*. iff Bureau, Inc., v. Eichholz, 4 M. C. C. 25. Competition considered. If tbe 755 (761).

commission is to foster sound economic The deplorable financial condition in conditions, it must have regard for the the mid-western territory of motor car- welfare of the carriers generally, and riers generally, whose ratios of operat- it is its duty to keep competition withing expenses, including taxes, to reve in reasonable bounds and prevent the nues, are close to 100 percent, demon- industry from degenerating into a mere strates the need for a reasonably com- struggle for existence.-Mid-Western pensatory level of rates for uniform Motor Freight Tariff Bureau, Inc., v. application.—Id., p. 772.

Eichholz, 4 M. C. C. 755 (772) ; SouthThe motor carrier industry in central western Motor Freight Bureau, Inc., v. territory is in a demoralized condition Gill, 11 M. C. C. 91. due principally to conflicting rates and It is inevitable that in one way or anpractices, lack of unity of action, con- other the competitive equilibrium in tinuing rate wars. The rate structure rates must be restored.-Id. is filled with inequalities and incon- A rate which is compensatory for a gruities. An order prescribing rates be- rail carrier might be below a minimum low which respondent carriers may not reasonable motor-carrier rate. The relawfully go is essential.–Central Terri- verse may also be true in many in. tory Motor Carrier Rates, 8 M. O. C. stances. The commission must also 233*.

take notice that the rail carriers to meet Present downward trend in the rate competition and for other purposes have level in central territory must be ar- resorted to rates below a minimum rearested if sound economic conditions are sonable rate basis.-Mid-Western Motor to be fostered. Cancelation of proposed Freight Tariff Bureau, Inc., v. Eichrates ordered.-Id., 8 M. C. C. 131 (135). holz, 4 M. C. C. 755 (775).

Class I motor common carriers in cen- In many instances advantages inhertral territory as a group suffered heavy ent in motor transport permit motor operating losses during 1937 and the carriers to charge higher rates than the first two months of 1938 under rates rails, but where the services of both now in effect. The situation was less agencies are equally attractive to shipfavorable during the first two months pers the traffic flows to the agency havof 1938.-Id., p. 135.

ing lower rates.—Id., p. 774. The industry in New England is now Defendants permitted to establish and for some time has been in a critical commodity rates as low as those maincondition. One of the major factors tained by rail carriers, but no lower.was the practice of establishing rates Id., p. 778. lower than the prevailing level to at- To foster sound economic conditions tract traffic, forcing the majority to re- the commission must keep in mind the duce rates or see desirable traffic di- needs of the territory as a whole for verted to such competitors.—Commod- good service at reasonable rates, includ. ity Rates in New England, 8 M. C. C. ing small towns as well as larger cities. 387 (388)*.

Carriers which undertake to provide a Injunction to respondents to increase comprehensive service must be given their rates to a maximum reasonable reasonable protection against those level wherever possible renewed; need which have elected to confine their atfor increased revenues are not local to tention largely to the points where busicarriers operating to and from the New ness in volume can be obtained.-Id., York metropolitan area, but is general p. 773; Southwestern Motor Freight Buthroughout the entire territory.-New reau, Inc., v. Gill, 11 M. C. C. 91.

One of the principal purposes of the prevailed not only between motor caract is to bring greater stability to the riers and other transport agencies but motor-carrier industry and to prevent to a considerable degree between the the demoralization which flows from un- common motor carriers themselves.restrained and unreasonable competi- Id. tion.-Rates over Freight Forwarders, It may ultimately be found that both Inc., 4 M. C. C. 68 (75)*.

rail and motor carrier rates should conRailroads and motor carriers should form to cost of service principles, but put their houses in order and avoid de- as matters now stand motor carrier structive competition.–Stoves, Ala. and rates cannot reasonably be constructed Tenn. to Interstate Points, 4 M. C. c. without regard to the competitive rates 641 (649).

of other carriers.--Id. Rails have similar, perhaps better, It is necessary to establish a uniopportunities to cut under the higher form basis for common carrier rates rates in the reverse direction upon which before it is possible to attack the simirespondent is dependent for any profit. lar problem of contract carrier rates. Competitive truck rates ought not to be Issuance of a minimum rate order with permitted in the situation.-Refriger- respect to common carriers alone will ator Material, Memphis, Tenn., to Day- not prejudice them unduly in favor of ton, Ohio, 4 M, C. C. 187 (189).

contract carriers, railroads or forwardTo meet truck competition, through ers.--Id. the medium of the forwarder, respond- Mere allegations that reductions are ents established c. I. all-commodity rates necessary to meet intrastate competibetween many important points in the tion, competition of other transport territory. These rates recovered a dis- agencies, are insufficient to warrant reappointingly small amount of traffic. ductions. The fact of competition, volUnderlying reason-lack of information ume, rates of competing agencies, conas to going-truck-rates.-Rates between ditions surrounding establishment of Ariz., Calif., New Mexico, Texas, 3 M. those rates, should be put in evidence.C. C. 505 (511-12).

Id., 12 M. C. C. 153 (155)*. In view of the volume and importance Intrastate rates are said to have been of petroleum traffic to defendant, the influenced by contract-carrier competicommission would hardly be justified in tion, but they may not in any way be prescribing rates so high as to preclude affected by an order under the motor it from competing on an even basis with carrier act.-Id., p. 160. the rail carriers.—Bamberger Electric Reduction below prescribed rates is R. Co. v. Lang Transp. Corp., 8 M. C. C. not warranted merely because of the 200 (209).

belief that, upon the level sought, reFinancial ability of respondents spondents would be able to handle some serving small intermediate points as traffic now moving c. 1. for distribution well as large key points is impaired by in smaller quantities at destination.their efforts to meet competition of key- Id., 19 M. O. C. 545 (586)*. point operators which handle truck- Although the level of intrastate rates loads between important commercial is lower than the level of the prescribed centers only, thereby able to cut rates rates, this fact in itself is insufficient to to a degree that makes it no longer require reduction of the latter.-Id., 20 profitable for carriers that serve the M. C. C. 725 (728)*. general public. Central Territory Mo- In certain circumstances competition tor Carrier Rates, 8 M. C. C. 233*.

may justify inequalities in rates, but it The principal reason for inequalities is not sufficient justification where the in existing commodity rates is the ex- inequalities cause undue preference and treme competitive conditions that have prejudice.--Id., 21 M. C. C. 473 (485) *

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If railroads are permitted to meet reasonable minimum level and thus will competitively the rates of motor car- forgo the opportunity to obtain needed riers where the latter have the advan- increased revenues.-Id., 16 M. C. C. tage in costs of service, and at the same 499*. time the motor carriers refrain from If present trends in the motor-carrier meeting rail rates where the railroads industry continue, it will not be capable have the cost advantage, the net result of transporting so large a portion of the will be disadvantage to the motor car- traffic as it has attracted from the rails. riers.—New England Motor Carrier It must be on a sound financial basis Rates, 8 M. C. C. 287*.

or shrivel until merely that remnant The rail situation in New England remains which is able to carry on at a and border territory is far less com- living profit. And it must be able to plex than the motor carrier situation. act with some degree of solidarity.There are 100 motor common carriers Fifteen Percent Case, 1937–1938, 226 of property in New England for every 1. C. C. 41 (74)*. carrier by rail. Motor carriers com- Competitive rail rates are very low pete with each other, with contract and as a result of pipe-line competition and private carriers, railroads, steamship there is serious question as to whether companies, forwarding companies. They they would be reasonable for motor have no noncompetitive traffic.-Id.

carriers.—Lubricating Oil and Greases An irregular-route operator can des- from Okla. to Mo., 9 M. C. C. 465 (467). patch a truck of the size required, while The principal question in cases seekregular-route operators generally oper- ing adjustments to enable motor carate 10 ton trucks between terminals riers to regain lost business, and to regardless of extent to which loaded. enable them to share in traffic that now Advantage of irregular-route carrier is moves solely by rall, is whether rates offset by higher load factor on round proposed would be reasonably compentrips enjoyed by regular-route carriers, satory.—Middle Atlantic States Motor and generally irregular-route operators Carrier Rates, 10 M. C. C. 193 (194)*. transport in one direction only.-Id. The commission has no jurisdiction

By limiting operations to shipments over competitive intrastate rates.weighing 6,000 pounds or over, and col- Candy and Confectionery-Hershey. lecting and delivering shipments with Baltimore, 11 M. C. C. 657 (661). line-haul trucks, the irregular-route Disastrous results will follow if the carrier may avoid pick-up and delivery, commission permits rail and motor carand other expenses incurred by regular- riers to engage in a rate war to gain or route carriers which afford a complete retain available traffic. There are reaservice.-Id.

sonable limits, however, to which motor While small common carriers are carriers should be permitted to go in alleged to be at a disadvantage in com- their effort to meet competition.-Rope peting with larger carriers, there was and Sash Cord from Rockford, Tenn., no agreement as to what constitutes a 14 M. C. C. 437 (439). small carrier.-Id.

Owing to the flexibility of motor seryWhen the only justification offered for ice and the lower minimum possible by reduction in prescribed rates is to meet truck, it should be able to compete for rail competition, respondents should not the traffic on the basis of a rate which, be permitted to go any farther than to although higher than the competitive publish a competitive rate.-Id., 12 M. c. 1. rail rate, would be compensatory.C. C. 417 (423)*.

Leather from Middlesboro, Ky., to ChiUnless the commission prescribes the cago, Ill., 18 M. O. C. 265 (268). increased rates, respondents, because of Rates on a depressed basis because of their apprehensions, will not bring competition are not a standard for reamany of their unduly low rates to a sonableness. — Rockne Bros.-Commodi.

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ties, Sioux City, 19 M. C. C. 739 (741). As distance increases beyond 50 miles

The commission cannot adjust rates rail competition becomes more imporso as to deprive a point of the benefit of tant. For extreme long hauls, costs of its natural advantages, such as location truck transport prevent any possibility on a water route.-Coffee, Roasted, of motor carriers competing with the from Omaha to Twin Cities, 22 M. C. C. rails. On low-grade, heavy-loading 529 (532).

commodities, the competitive range is A contributing factor to operating shorter for motor carriers than on more losses of vendors is destructive com- valuable light-loading commodities.petitive practices in central territory.- New England Motor Carrier Rates, 8 Kirk Transp. Co.-Purchase-Guardian, 15 M. C. C. 287*. M. C. C. 729.

That present rates are the same in 30. Volume of traffic bearing on rea- amount as corresponding class rates of sonableness.-Frequency and volume rail carriers, which are based upon disof traffic handled have a bearing on the tances by rail, does not establish that fact that defendant has been able to such rates are discriminatory even if continue in operation in spite of his ex- the highway distances are shorter than tremely low rates, but such circum- the distances by rail.—Hosiery-Loudon stances do not convince that the low and Roane Counties, Tenn.-St. Louis, rates are just and reasonable.—South-17 M. C. C. 464 (465). western Motor Freight Bureau, Inc., v. Waring tariff class rates compared Gill, 11 M. C. C. 91 (99).

with similar rates for like distances beWhile tonnage of carriers transport-tween New York City and New Enging special commodities has not fallen land points show the former materially off during the recession, that of com- lower, much lower than for comparable mon carriers of general commodities has distances between Charlotte, N. C. and been reduced from 25 to 40 percent. — other points in southern territory.New England Motor Carrier Rates, 8 Rates over Freight Forwarders, Inc., 4 M. C. C. 287*.

M. C. O. 68 (74) *. Uniform spreads of 10 and 20 cents Paper stock can be moved with profit under any-quantity basis are made on by trucks for distances up to 100 miles. the theory that there is actual saving-Paper Stock in Official Territory, 214 (largely terminal) to the carrier, ap- 1. C. C. 588 (599). proximating those amounts, in handling California R. Comm. has found movthe larger quantities.-Rates between ing petroleum products in trucks has Ariz., Calif., New Mex., Tex., 3 M. C. C. advantage in costs 290 miles and 505 (514).

less, rails in costs for longer distances. The new Waring tariff rates include a-Petroleum between Wash. and Oreg. volume "break-down”. [Described, p. Points, 225 I. C. C. 382 (388)*. 74].-Rates over Freight Forwarders, It is doubtful whether earnings of Inc., 4 M. C. C. 68*.

8.15 cents per truck-mile for round40. Distance considered in determin- | trip movement of 1,150 miles would proing reasonableness.—That traffic to in- duce any profit.-Bigler, 6 M. C. C. 221 termediate points is less than to the (224). more distant points is no satisfactory 41. Rates per truck-mile. reason for maintenance of higher rates “truck-mile" is meant the highway unit, to such points. In absence of a sound generally a truck and trailer.-Petroreason therefor, maintenance of class leum between Wash., Oreg., Ida., Mont., rates to intermediate points higher than 234 I. C. C. 609 (626)*. to more distant points on the same A rate which yields earnings per route is prima facie unreasonable.-truck-mile substantially less than the Fifth Class Rates between Boston and carrier's average fully allocated costs Providence, 2 M. O. C. 530 (546). is not compensatory, in absence of

By showing that admitted average costs If proposed commodity rates were are not representative for the particu- permitted to become effective, a genlar movement.-Tallow from Tulsa to eral demand would be made for like Mo., Ill., Ind., Ky., 19 M. C. C. 751 rates from other manufacturing points (753),

in the South. Not approved.—HosieryProposed rate and minimum would Loudon and Roane Counties, Tenn.-St. hardly be compensatory, for 5.83 cents, Louis, 17 M. C. C. 464 (466). or even 6.89 cents, per truck-mile is very

Proposed rate would tend to disrupt low revenue.- Refrigerator Material, existing rate structures. In event addiMemphis to Dayton, 4 M. C. C. 187 tional traffic could not be secured in (189).

large volume, there would be an unnecesProposed rates would produce earn-sary depletion of respondents' revenues ings ranging from 3.4 to 4.5 cents, from as well as those of protestants and other 3.1 to 5.5 cents per loaded truck-mile. carriers, should they, because of comSuch low earnings form a logical basis petitive influences, reduce their rates to

the same level. Unlawful. for the presumption that the rates are

Proporless than compensatory.-Commodity

tional Rate on Drugs-Memphis-St. Louis, Rates of Okla. & Tex. Transfer Co., 6 12 M. C. C. 447 (452). M. C. C. 259 (260).

If respondents were permitted to meet

the competitive rates, other carriers Truckload rates that yield 27 cents

might seek to do likewise and a bad situper truck-mile for 111 miles and 30

ation would become worse.-Rockne cents for 72 miles are not so low as to

Bros.-Commodities, Sioux City, 19 M. C. be noncompensatory.-Brown Commod

C. 739 (741). ity Rates-Baltimore and Washington,

Motor carriers do not generally re17 M. C. O. 335.

gard small package business as profit45. Disruption of rate adjustment.-able except at rather high minimum That proposed rates might tend to dis-rates. It is difficult to see that the rupt the class-rate adjustment through-motor-carrier rate structure would be out a great portion of the territory is disrupted by applicant's effort to revise by itself no sufficient reason for con- its rates to place it in better relation demning them.-Fifth Class Rates with its principal competitor, parcel between Boston and Providence, 2

post service.-Express Rates, 1938-1939, M. C. C. 530 (547).

231 I. C. C. 471 (499). Disruption of the rate structure of 50. Difference in value as between motor common carriers in itself is no grades of same commodity. – That sufficient reason for prohibiting a value and transport characteristics of change. All that rail carriers have the two kinds of paper are substandone is to initiate a schedule which tially the same, considered.—Commodity must be upheld as lawful unless ade- Rates via Bates Motor Transport Lines, quate reasons are presented for setting Inc., 1 M. C. C. 457 (458). it aside. Reduced rate on mixed car- 51. New and second-hand articles.loads of all commodities, by rail, justi-Used or second-hand articles will be fied.—A11-Freight, Boston to East Hart- given lower ratings than the new articles ford, 223 I. C. C. 421.

of the same kind only when the old arRates not approved, for if permitted ticles have no value except as junk. Reto remain in effect it is probable that conditioned auto parts are used for the competition would at length force sim- same purposes as new parts, despite the ilar reductions throughout Southern differences in value.-Reconditioned and territory, thus unnecessarily imperil a Junk Auto Parts in Southern Territory, reasonable rate structure.-Paint, etc., 17 M. C. C. 436 (439). from Chattanooga to Ala. and Ga., 19 60. Weight basis. — Weight limita. M. C. C. 1 (5).

tions, sec. 225, 0. 25.

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