which the transportation of bicycles thereunder now places upon other traffic. Regulations issued by the Price Administrator provide maximum prices, commonly called ceiling prices, at which bicycles may be sold by the wholesaler or distributor, hereinafter called the jobber, and by the retailer as well. The manufacturer's selling price is not similarly regulated, but is the subject of agreement between the manufacturer and the Price Administrator. In marketing its product to jobbers located in the important cities throughout the East, the shipper sells these bicycles f. o. b. Westfield, and consequently the increases here proposed would be borne by those jobbers. Since the jobber cannot pass along any increase in his costs, unless the price ceilings are modified, protestant fears that the jobber will be caught in a price squeeze due to the rate increases resulting from the proposal under consideration. The shipper sells these bicycles at $20.50 each, less 2 percent discount for cash, f. o. b. point of shipment. In a so-called basic area, composed of 25 States in the northeastern portion of the United States, embracing among others the States in New England and trunk-line territories, the ceiling price at which a jobber may sell bicycles to a retailer is $23.75 each, subject to a discount of 2 percent for cash, f. o. b. point of shipment. In turn, a ceiling price at which the retailer may sell is also provided. In setting these ceiling prices, the Price Administrator gave consideration to transportation costs. It is obvious that those costs vary considerably in an area as extensive as this basic area. It fairly may be assumed, therefore, that the ceiling price for the area was set high enough to allow some measure of profit to the jobbers throughout the area, many of whom obviously pay higher freight charges than either the present or proposed rates to these 17 destinations. For example, the highest rate proposed is to Washington, $1.74, whereas on a shipment to Richmond, Va., a point not involved in this proceeding, respondents apply a class rate of $1.94 based on a rating the same as here proposed. Moreover, the rail rates between points in this area, based on the classification ratings, are lower in all instances than the proposed rates. Consequently, it does not appear that the increases here proposed would either necessitate a revision of the ceiling prices, or subject the jobbers at these 17 destinations to a price squeeze. The proposed increases range from 1 to 48 cents, and average 18 cents per 100 pounds. The increases per bicycle are approximately one-half of these amounts. Protestant urges that the proposed increases will be inconsistent with the national effort to avoid inflation. Particular reference is made to the Emergency Price Control Act of 1942, approved January 30, 1942, and the amendment thereto of October 2, 1942, generally referred to as the Stabilization Act. One contention is that the provisions of the Interstate Commerce Act have been modified or amended by those subsequent acts. We do not agree with this view. The policies declared in the Interstate Commerce Act and in the Price Control and Stabilization Acts are not contradictory, but complementary. Increased Railway Rates, Fares, and Charges, 1942, 248 I. C. C. 545 and 255 I. C. C. 357. Protestant further argues that, if these acts are to be treated as complementary, a greater burden of proof rests on the carriers, and that, before they may increase their rates, "they must prove either that the present rates are unreasonably low, or that the increase is necessary to meet the requirements of the transportation policy of the Interstate Commerce Act." It is forcefully urged that the respondents have failed to sustain their burden of proof, in that no cost figures were submitted to prove that the present rates are noncompensatory. Of the two alternatives in the burden of proof here urged, it does not appear that the latter one would impose a more rigid standard than that which we customarily apply in considering the lawfulness of proposed rate changes. In accordance with the transportation policy and other provisions of the act which we administer, the effect upon the interests of the public, and of the transportation agencies as well, has been taken into consideration herein. The other test urged by protestant would place in issue the present, rather than the suspended, rates, and require the respondents to prove that the present rates are lower than reasonable. With this premise we do not agree. This investigation concerns the lawfulness of the proposed rates. The present basis might not be unreasonably low, and the proposed basis not unreasonably high. That there exists a zone of reasonableness in the measure of rates has long been recognized. The question to be determined is whether the proposed rates exceed a maximum reasonable basis. Among the elements to be considered in the determination of lawful classification exceptions ratings are the transportation characteristics of the commodity and the ratings on related commodities. Bicycles ordinarily are shipped set up, except that handle bars and saddles are removed and packed in the same container. They are shipped in packages measuring either 72.5 by 35 by 6.5 inches, or 73 by 37 by 6.5 inches. The prewar models ranged in weight from 55 to 62 pounds and their density from 5.2 to 5.8 pounds a cubic foot. The war models range from 45 to 48 pounds and their density from 4.7 to 5 pounds a cubic foot. The value of the war-model bicycle is approximately 43 cents a pound. 42 M. C. C. A rating of 12 times first class, the same as that here proposed, has been prescribed or approved for application on a number of articles of somewhat comparable density and value. The following table is illustrative: Considering the relatively light density and high value of bicycles and the approval given to the proposed rating when applied on commodities having similar transportation characteristics in the proceedings listed above, it cannot be found that the proposed rating and resulting rates would be other than just and reasonable, and we so conclude. We find that the proposed cancelations and the increased rates resulting therefrom are just and reasonable. An order will be entered discontinuing the proceeding. APPENDIX Present and proposed rates on bicycles, not otherwise indexed, from Westfield, Mass., to representative destinations, and other pertinent data INVESTIGATION AND SUSPENSION DOCKET NO. M-2133 GAS, CYLINDERS, ETC., BETWEEN NORTH BERGEN, N. J., AND NEWBURGH, N. Y. Submitted May 7, 1943. Decided July 24, 1943 1. Proposed motor common carrier rate on gas, in cylinders, and cylinder parts from Newburgh, N. Y., to North Bergen, N. J., and on empty cylinders from North Bergen to Newburgh found unlawful because respondent is without authority to perform such transportation. 2. Proposed motor common carrier rate on gas, in cylinders, and cylinder parts from North Bergen to Newburgh and on empty cylinders from Newburgh to North Bergen found unjust and unreasonable. Order entered requiring cancelation of the proposed schedules, and discontinuing the proceeding without prejudice to the filing of new schedules in conformity with discussion in the report. Samuel Solomon for respondent. John F. Rose and T. C. Crouch for protestant. REPORT OF THE COMMISSION DIVISION 2, COMMISSIONERS MAHAFFIE, SPLAWN, AND ALLDREDGE BY DIVISION 2: Exceptions were filed by the protestant to the recommended order of the examiner, and the respondent replied thereto. By schedules filed to become effective November 15, 1942, Maco Trucking Co., Inc., of Ridgefield, N. J., a motor common carrier, proposed to establish a new commodity rate of 0.1785 cent,1 minimum 7,000 pounds, on gas in cylinders, empty cylinders, and cylinder parts between North Bergen, N. J., and Newburgh, N. Y. Upon protest of the Middle Atlantic States Motor Carrier Conference, Inc., hereinafter called the conference, operation of the schedules was suspended until June 15, 1943, when they became effective. In No. MC-10197 (Sub-No. 3), division 5 authorized the issuance of a certificate to the respondent as a motor common carrier between North Bergen and Newburgh, approximately 61 miles, of gas, in cylinders, and of cylinder parts north-bound and empty gas cylinders south-bound. The proposed rate, therefore, to the extent it would apply on the gas and cylinder parts south-bound and the empty cylinders north-bound would apply on traffic the respondent is not auth 1 Rates are stated in amounts per 100 pounds. orized to transport, and is therefore unlawful and will be ordered canceled. The respondent intended the proposed rate to be 17.85 cents, minimum 7,000 pounds. No evidence was presented in support of the proposed rate or the intended rate of 17.85 cents. The proposed rate of 0.1785 cent is patently unreasonably low, and clearly published in error. It was stated at the hearing on behalf of the respondent that it proposed to establish, in lieu of the suspended rate, a rate of 22.875 cents, minimum 8,000 pounds, hereinafter called the proposed rate, on the gases and cylinder parts from North Bergen to Newburgh and the same rate and minimum weight on the empty cylinders from Newburgh to North Bergen, subject to a round-trip minimum charge of $36.60. The respondent specializes in the transportation of gases in steel cylinders and the return of the empty cylinders, and its vehicles are especially designed for the carriage of these articles. Two kinds of gas, oxygen and acetylene, are shipped from North Bergen to Newburgh. The movement of cylinder parts has been unimportant. It has consisted of the transportation of such articles as new valves weighing about 2 pounds each. Steel cylinders filled with oxygen gas weigh 149 pounds each. The record is not clear as to whether the cylinders filled with acetylene gas weigh 263 or 213 pounds each, but the latter appears to be correct since the respondent stated that 5 cylinders filled with acetylene gas weigh about 1,000 pounds. The empty oxygen and acetylene cylinders weigh about 14 and 13 pounds, respectively, less than when filled. The respondent owns vehicles having a capacity of 150 oxygen cylinders, and smaller vehicles which are said to have a capacity of 50 acetylene or 90 oxygen cylinders. The latter appears to have been overstated, since not over 12,000 pounds of oxygen gas, in cylinders, can be loaded in the smaller vehicles. It appears, therefore, that from 10,000 to 12,000 pounds of the cylinders filled with gases can be loaded in the smaller vehicles which would be used in their transportation from North Bergen to Newburgh. The average weight of shipments of filled cylinders would be 8,000 pounds. The respondent estimated its cost for the round trip between North Bergen and Newburgh, which consumes approximately 5.5 hours, to be $15.87, consisting of the following items: Wages of the driver, $5.50; wages of the driver's helper, $4.81; gasoline and oil, $2.86; tires, 80 cents; insurance, including public liability, property damage, cargo, and workmen's compensation, 80 cents; depreciation of the truck, 90 cents; and repairs, 20 cents. A number of cost items such as garage rent and other garage expenses, expenses for supervision and admin |