The truckload minimum weight is rate applies when a shipper tenders the part of the truckload rate. Such truck-volume minimum weight at one time, load weight, in connection with the even though it may exceed the carryrates, determines the truckload earnings, and the propriety of the minima cannot be determined without considering the measure of the rates.-Minimum Weights of Coffman Bros., 9 M. C. C. 619 (623). Minimum weights may be disturbed only on a general showing that they are unsuitable to the particular commodity and generally unsatisfactory to the shipping public as a whole. One of the best tests of the reasonableness of a carrier's tariff provisions in these respects is by comparison with the rates on like traffic in the same territory.Id., p. 623. The theory of minimum weights is to insure economical use of equipment and thereby increase transportation efficiency, not to serve as a direct medium for increasing or reducing carrier revenues.-Id., p. 623. Ordinarily any reduction in a minimum weight, particularly one of only moderate proportions, should be accompanied by an appropriate adjustment of the rate level. Normally this adjustment should be upward.-Id., p. 623. An any-quantity rate which in fact moves both c. 1. and 1. c. 1. traffic is presumed to be higher than the c. 1. and lower than the 1. c. 1. rate would be.Id., p. 623. ing capacity of the largest vehicle available and must be transported in two or more vehicles, whereas a truckload minimum is the quantity a carrier can transport in a single vehicle.-Stoves, Ala. and Tenn. to Interstate Points, 4 M. C. C. 641 (643); Mid-Western Motor Freight Tariff Bureau, Inc., v. Eichholz, 4 M. C. C. 755 (775); Commodity Rates from Gulf Ports to Ala., Ga., Tenn., 10 M. C. C. 106; Iron and Steel from Pittsburgh and Aliquippa, Pa., 21 M. C. C. 791 (792). On account of weight limitations in central territory it was necessary to devise some sort of rule to take care of the minimum weight that could be hauled. Present rule approved.-Central Territory Motor Carrier Rates, 8 M. C. C. 233*. The cubical contents of a package are no more indefinite than its weight in pounds, and usually no more difficult to ascertain with accuracy.-Id. It is impracticable to prescribe minimum weights based on the capacity of the vehicles of individual carriers.— Id., 12 M. C. C. 153 (177)*. Not all vehicles used by common carriers in New England in line-haul service are of 10-ton capacity, but minimum weights in New England classifications apply regardless of the size of truck used. Minimum weights are, therefore, actual t. 1. minima when 10-ton trucks or larger are used, and in the nature of volume minima when the service is performed in smaller vehicles.-New England Motor Carrier Rates, 8 M. C. C. 287*. To permit continuance of maintain ing graduated rates at varying minima, and to allow motor carriers to establish truckload rates based on the carrying capacities of their trucks, a basis of graduated rates is provided, which may be established in lieu of, or to alternate with, truckload rates based on defendant's present truck- cluded in mixed shipments may be load minima. Mid-Western Motor Freight Tariff Bureau, Inc., v. Eichholz, 4 M. C. C. 755 (778); Roofing from the East to the South, 10 M. C. C. 589 (593). A volume minimum is distinguished from a t. 1. minimum in that the volume Weight of the higher-valued lighterloading commodities which can be in based on the weight of the group A articles, not the weight of the entire shipment.-Id., 11 M. C. C. 325 (329)*. Rates published to apply on the net weight of articles are contrary to sound rate-making practices.-Id., 19 M. C. C. 777 (779)*. Motor carriers should not establish | from Ala. to Southern States, 22 M. C. minimum weights which exceed the ca- C. 171 (175). pacity of the equipment ordinarily used in their transportation.—Id., 21 M. C. C. 373 (396) *; Iron and Steel from Pittsburgh and Aliquippa, Pa., 21 M. C. C. 791 (792). A minimum weight as low as 500 pounds is not necessary or desirable in connection with rates on truckload or volume shipments.-River Terms. Corp. Class and Commodity Rates, 14 M. C. C. 542 (550). In absence of information as to average weight of freight handled in individual truck movements, comparisons between estimated truck-mile costs and revenues are of little force.-Paint, etc., from Chattanooga to Ala. and Ga., 19 M. C. C. 1 (4). Assuming some liberalization of rules governing rates applicable on mixed c. 1. shipments may be justified to enable railroads to meet motor carrier competition, and that corresponding changes might be made by motor carriers, proposed rule, in providing that any deficiency in minimum weight be charged at rate applicable on lowest-rated commodity in the mixture, not approved.Mixed Volume Shipments between Western States, 19 M. C. C. 455 (459). All rates subject to minimum weight should be restricted to apply only when the shipments which equal or exceed the minimum weight are actually tendered for transport from one shipper and are transported from point of origin in one day and on one bill of lading, subject to any tariff provisions allowing split pick-ups or partial loading in transit.-Peanut Butter from Montgomery to Ga., 22 M. C. C. 375 (378). Change in tonnage-reduction rule to give shipper of mixed shipments, in volume, under class rates, the same consideration as that accorded shippers of single commodities under commodity rates, faulty for lack of definiteness. Not justified.-Mixed Shipment-Tonnage Reduction Rule-Oregon, 22 M. C. C. 533. [Dissenting opinion p. 535.] Mixed truckloads, tin, stationery, fiber and pulpboard, weight considered, seeMotor Exp. & Term. Corp. Rates, 14 M. C. C. 351. Under a basis which required household-goods carrier to weigh the loaded vehicle at origin, the commission would have the opportunity of making a definite check of the quantity of goods transported at any time before delivery by requiring that the vehicle be reweighed. Weight ticket would furnish a reliable permanent record of the quantity actually transported.-Practices of Motor Common Carriers of Household Goods, 17 M. C. C. 467 (484). When available scales are of insufficient size to accomodate a full tractor-semitrailer combination accurate weights can be obtained by disengaging the tractor and weighing the semitrailer.-Id., p. 485–6. Use of constructive weight based on 7 pounds per cubic foot of properly loaded van space where no adequate scales are located at origin or any point within 10 miles thereof, prescribed.-Id., p. 489. Weight of an empty vehicle may change from day to day, owing to mechanical changes and weather conditions. It is possible for the average van to increase in weight more than 1,000 pounds when operated in a sleet or snow storm on slushy streets. The amount of equipment on a furniture van is not standard. To weigh the vehicle In view of capacity of rail equip ment and high average loading of lime and cement, rail carriers would reduce rates, not minima, to meet reduced truck rates. If motor carriers met these reductions, rail carriers would immediately before and after loading make further reductions. Proposal to is the most accurate method.—Id., p. reduce truck rates to points in 160 487. miles is an "unfair and destructive com Weighing of small part loads on petitive practice".-Building Material | warehouse scales prior to loading may be continued, provided shipments are weighed on certified scales and are accompanied by a weigh ticket.-Id., p. 489. Gross weight of a van containing previously loaded tonnage should be used as the tare weight on tonnage subsequently loaded in the vehicle.Id., p. 488. While placing of the gross, tare, and net weights on the bill of lading would be valuable to the shipper, it is not practical and should not be required.— Id., p. 489. -Commodities over Tidewater Exp. Lines., Inc., 2 M. C. C. 356 (361). Each proposed rate would be the same as the corresponding rail rate or higher. Each seems necessary to permit respondent motor carriers to participate in the traffic. Atlantic Approved. Middle Proposed rates on furniture, based on distance stated in amounts per cubic foot, unlawful.-Household Goods Rates of J. Norman Geipe, Inc., 18 M. C. O. States Motor Carrier Rates, 4 M. C. C. 295. 61. 679*. That rail rates have been increased Alternative minima.-To pro- since the matter first came before the vide a reasonable and nondiscrimina-rate committee will be taken into contory method of applying rates in consideration in determining reasonable nection with the varying minima, a truck rate.—Id., 12 M. C. C. 27 (31)*. rule should be established for the alternative application of a lower rate in conjunction with a higher minimum if such application results in a lower charge.-Electrical Supplies, etc., via Shulman & Sons Exp., 10 M. C. C. 399 (403). Respondents' earnings, roofing, are unduly low because the minimum weights applying are less than reasonable. Motor carriers should not maintain varying minima which apply in connection with the same rate for transport of an individual commodity. Nor should they maintain minima which vary with the type or size of equipment used.-Roofing from the East to the South, 10 M. C. C. 589 (593). Rates, 1. c. 1., may not be dismissed from consideration in making rate comparisons.-New England Territory Commodity Rates, 12 M. C. C. 521 (524). Rate prescribed will place defendant on an equality with the rails, leaving each free to compete on the basis of the merits of their respective service.— Bamberger Electric R. Co. v. Lang Transp. Corp., 8 M. C. C. 200 (210). Rail rates have not been based on cost of service alone. They have also been freely reduced to meet competition. To base motor carrier rates principally on cost of service cannot produce satisfactory results, so far as earnings are concerned, unless rates of competitors are constructed in a similar manner.— Central Territory Motor Carrier Rates, 8 M. C. C. 233*. Continuance of the practice of maintaining graduated rates at varying minima, approved.-Mid-Western Motor Freight Tariff Bureau, Inc., v. Eichholz, 4 M. C. C. 755 (757); Roofing from the East to the South, 10 M. C. Crates will be reasonably compensatory 589 (593). Motor carriers should be permitted to reduce their rates to meet rates of competing agencies only when reduced truck except possibly when rates of the competing agencies merely return out-ofpocket costs.-Id., 19 M. C. C. 36*. Though respondent contends it must meet rail c. 1. rate to obtain the traffic, its operations are profitable and exten- Service of the steamship companies in sive and ought not to be jeopardized by New England waters has not in general rates that yield much less than its aver- been regarded by the commission as inage cost of operation and would precipi- ferior to rail service, and differentials tate further competitive reductions.-in favor of water service have not been Leather from Middlesboro, Ky., to Chi- common practice in New England.—Id. cago, 18 M. C. C. 265. Reduced rail rates to meet truck competition are experimental; no showing made that they will attract traffic from the highways, or that the higher motor rates will not continue to attract traffic; approved.-Commodities between El Paso, Tex., Colo., N. Mex., 237 I. C. C. 113 (116) *. If the rail rate is unreasonably low, adequate remedy exists under part I. If the rate is reasonable, and because of its existence, the commission allowed respondents to establish rates not at or above a minimum reasonable basis to permit New England shippers to meet competition of shippers using rails, the action would be contrary to sec. 202 (a).-New England Motor Carrier Rates, 11 M. C. C. 325 (341)*. 71. With water rates.-Water and rail competition, sec. 1 (5), n. 302. Reasonable rates over a barge-rail route properly may be somewhat lower than rates in effect over competitive allrail routes, provided the shrinkage is borne by the barge line. To a certain extent motor-water service is inferior to, and of less value than, all-motor service.-Commodities over Tidewater Exp. Lines, Inc., 2 M. C. C. 356 (363). Service in connection with the water carrier is slower than that over the allmotor route. If rates for both types of service are the same, shippers usually choose the all-motor service.-Id., p. 362. Although the commission believes motor carriers should be permitted to establish rates which approach those maintained in connection with water routes, it may be doubted whether an equality of rates is necessary, in view of the disabilities inherent in water transport.-New England Motor Carrier Rates, 8 M. C. C. 287*. Because of the less expeditious service rendered by water lines than by rail or trucks, there may be some reason for lower rates when a part of the service is by boat.-Central Territory Motor Carrier Rates, 8 M. C. C. 233*. Movement of cotton fabrics and cot ton piece goods from southern territory to St. Louis by rail and barge is small. Even if proposed reduced rates become effective and rail lines do not meet them, which would be unlikely, no serious damage would be done to Inland Waterways barge line.-Cotton Fabrics and Cotton Piece Goods, 10 M. C. C. 275 (279). If motor common carriers are to compete for boots and shoes traffic, they must be permitted to establish rates more nearly comparable to those of water carriers, giving due consideration to differences in values of the respective services.-Boots and Shoes, Md., and Mass., Garford Trucking, Inc., 18 M. C. C. 103. Prior to 1932 shipments generally moved from Memphis to the Pacific coast by barge and coastwise steamship lines through Panama Canal. Upon establishment in that year of certain truck commodity rates, the traffic began to move by motor and rail. Traffic under proposed rate would be diverted from the water lines.-Proportional Rate on DrugsMemphis-St. Louis, 12 M. C. C. 447. Fort Pierce canner ships most of his goods by water to Jacksonville, and wholesalers and jobbers haul in their own trucks to points in south Georgia. Water service is unsatisfactory because boat movement is irregular, but is used because of the lower rate.-Coats Extension-Georgia, Florida, 10 M. C. C. 404 (405). Substantial savings expected by sub- The commission would contravene stitution of water for motor carrier the policy of Congress were it to auservice between Portland and The thorize respondents to establish a rate Dalles, following completion of Bonne- admittedly unreasonably low, to meet ville project. [See 234 I. C. C. 609 for competition of a contract carrier.-Id., description of service.]-MacKay Ex- p. 356; Id., 12 M. C. C. 417 (426) *. tension-The Dalles, 11 M. C. C. 254. 72. With rates of other motor carriers, common and contract. See also sec. 216 (g), n. 20; classification comparisons, n. 25. Information as to rates currently maintained by competing motor carriers between the same points is essential to a just determination of the issues of noncompensatory rates and destructive competitive practices.-Interstate Freight Carriers' Conference, Inc., v. Denver-L. A. Trucking Co., 4 M. C. C. 89 (92). That proposed rates are low in comparison with rates of other carriers in the same general territory is no sound reason for finding them unreasonable, unless the commission can at the same time find that the existing rates are just and reasonable, as it has not prescribed any rates in the territory.Fifth Class Rates between Boston and Providence, 2 M. C. C. 530 (547). Minimum charges of contract carriers are not proper criteria by which common-carrier rates may be measured.Id., p. 536. That proposed rates may not be compensatory is indicated by maintenance of a higher basis by competing carriers. Rates over Carpet City Trucking, 4 M. C. C. 589 (593); Commodity Rates from Gulf Ports to Ala., Ga., Tenn., 10 M. C. C. 106 (110); Electrical Supplies, etc. via Shulman & Sons Exp., 10 M. C. C. 399 (403). If the contract carrier's charge is at or above a minimum reasonable basis, the effect of authorization to common carriers to meet it, would be to permit one type of motor carrier to depress its rate below a minimum reasonable basis merely to obtain traffic that can be more economically transported by the other.New England Motor Carrier Rates, 11 M. C. C. 325 (357)*. During 1936 operating cost of a contract carrier engaged in carrying automobiles by truck between points in Texas was 10 cents per truck-mile, that of typical motor common carrier was 13.26. Federal authorities contract on the basis of an operating cost of 5 cents per truck-mile. - Increases in Texas Freight Rates and Charges, 232 I. C. C. 55 (76). That competing motor carriers maintain rates lower than those proposed does not by itself justify the proposed rates and minimum weight, in view of the unduly low revenue which would accrue to respondent, particularly in view of his lack of authority to transport revenue freight to Savannah.Sugar, Savannah and Port Wentworth, Ga., to S. C. Points, 20 M. C. C. 525 (527). Under Georgia law rates of contract motor carriers are the same as those prescribed for common carriers. Canned Goods from Savannah to Ga., 237 I. C. C. 175 (177). 73. With expense of private operators. Some of the many private operations started within the recent past utilize trucks leased from a truck-rental agency. Charges, which include oil, gasoline, repair, are as low as 7 cents per mile on straight trucks and 11 and 12 cents on tractor and semitrailer outfits suitable for hauling 20,000 pound loads. The lessee bears only the driver's wages, State road taxes, cargo-insurance premiums. Freight, All Kinds, between Denver, Colo. and Wyo., 20 M. C. C. 5. As shippers are willing to use respondent's service if trial proves the cost is not greater than present expense of operating their own vehicles, it should be permitted to establish proposed rate in absence of definite showing it would be unlawful.-Peanut Butter from Montgomery to Ga., 22 M. C. C. 375 (377). |