When individual motor-carrier rates are proved to be reasonably compensatory, as in these proceedings, only the most compelling reasons, such as the preservation of an existing motor-carrier rate structure, should impel us to condemn them.

No question has been raised as to the compensatory character of the assailed rates. The class rates maintained by the rail carriers and the motor common carriers generally in this territory were prescribed as maximum reasonable rail class rates. Before we could find that the maintenance, by these defendants of the Harrisburg key rates instead of the Reading key rates to and from Lancaster, has the tendency to destroy the existing motor-carrier class-rate adjustment, we would necessarily have to find that such adjustment constituted a reasonable minimum basis for the motor carriers. Compare United States v. Chicago, M. St. P. & P. R. Co., 294 U. S. 499. The record before us does not warrant such a finding.

We find that the rates assailed have not been shown to be unreasonable or otherwise unlawful. An order will be entered dismissing the complaint.

1 This rate applies from Louisville, Ky., to Lancaster, Pa. Defendants' rate in the reverse direction

is 75 cents.

APPENDIX B

Number of industries in certain class-rate groups, except as noted

1 Annville, Cleona, Columbia, Elizabethtown, Florin, Hellam, Hershey, Highspire, Hummelstown, Landisville, Lebanon, Lititz, Manheim, Marietta, Middletown, Mount Joy, Mountville, Palmyra, Rutherford, and Wrightsville, Pa.

42 M. C. C.

INVESTIGATION AND SUSPENSION DOCKET NO. M-2138 BICYCLES FROM WESTFIELD, MASS., TO NEW ENGLAND AND EAST

Submitted May 6, 1943. Decided July 22, 1943

Proposed increased rates on bicycles from Westfield, Mass., to Baltimore, Md.,
Wilmington, Del., Washington, D. C., and certain points in New Jersey
and Pennsylvania, found just and reasonable. Proceeding discontinued.
T. C. Crouch and C. M. Carter for respondents.

Dewey C. Wayne, William M. Carney, W. C. Parks, and R. M. Jones for protestant.

Kendal A. Love for an interested shipper.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS MILLER, PATTERSON, AND JOHNSON BY DIVISION 3:

Protestant filed exceptions to the order recommended by the examiner, respondents replied thereto, and the parties were heard in oral argument.

By schedules filed to become effective November 25, 1942, motor common carriers parties to tariff MF-I. C. C. No. A-49 of the Middle Atlantic States Motor Carrier Conference, Inc., agent, proposed to establish increased any-quantity rates on bicycles, not otherwise indexed in the national motor freight classification, in boxes, crates, or solid fiber cartons, hereinafter termed bicycles, from Westfield, Mass., to Baltimore, Md., Wilmington, Del., Washington, D. C., and certain points in New Jersey and Pennsylvania. Upon protest of the Price Administrator, in his behalf and in behalf of the Director of Economic Stabilization, operation of the schedules was suspended until June 23, 1943, and the effective date thereof subsequently was postponed indefinitely by respondents. Rates will be stated in amounts per 100 pounds, and include the general increases which became effective in March 1942.

The orders suspending the operation of the proposed rates also suspended the operation of a number of schedules filed to become effective November 23, 1942, and later, by certain other motor carriers, proposing rates on bicycles from Westfield to certain destina

1 Asbury Park, Camden, and Trenton, N. J., and Allentown, Ardmore, Chester, Hanover, Harrisburg, Lancaster, Lebanon, Littlestown, Philadelphia, Reading, and York, Pa.

tions other than those here considered. The latter schedules have since been canceled, and it is therefore unnecessary to describe them or make further reference thereto.

Prior to the outbreak of war, there were 12 manufacturers of bicycles in the United States. By orders of the War Production Board, only 2 of these manufacturers, one at Westfield and the other at Dayton, Ohio, are permitted to continue the production of bicycles. Production for civilian use is limited as to quantity and restricted to so-called war models which are somewhat lighter and have fewer accessories than the prewar models.

The respondents now maintain any-quantity commodity rates on this traffic from Westfield to the particular destinations hereinbefore mentioned. These commodity rates, which have been in effect at least since December 1941, represent no uniform basis. They range from the equivalent of first class to slightly less than 12 times first class. Respondents propose to cancel these commodity rates, which would result in the application of class rates based on an exceptions rating of 11⁄2 times first class, any quantity. This proposed rating is higher than the classification basis. In both the motor and rail classifications, bicycles are rated first class, in less than truckloads or less than carloads, and third class, minimum 15,000 pounds. The appendix hereto contains comparisons of the present and proposed rates of respondents to representative destinations and other data.

The exceptions rating, which would become applicable by reason of the proposed cancelation, has been in effect from Westfield to destinations in trunk-line territory, other than those here considered, since January 1937. A similar rating is maintained by respondents within trunk-line territory, which includes Little Falls, N. Y., at which point bicycles formerly were manufactured. Respondents rely upon these similar provisions as indicating the reasonableness of the proposed basis of rates. To refute this evidence, protestant relies on the fact that the lower classification bases are applied by respondents between other points. Between all points in New England other than Westfield, on the one hand, and all points in trunk-line territory, on the other, respondents maintain class rates on bicycles which, except for slight variations in the truckload minimum weight, are based on the classification ratings. There is no evidence, however, of movements of this traffic from points other than Westfield.

Respondents contend that the present commodity rates are not compensatory for the transportation of bicycles, the density of which is so low that something less than 5,000 pounds constitutes a load for an ordinary motor vehicle of 1,000 cubic feet capacity. Their position is that cancelation of these depressed rates will ease the undue burden