American Bus Lines, Inc., Common Carrier Application, 18 M. C. C. 755, 758.

No. MC-59468 (Sub-No. 4).—The further hearing in this proceeding was held on April 1, 1941. The joint board found that English, as successor to Robison, is entitled to a "grandfather" certificate authorizing operation as a common carrier by motor vehicle, of general commodities, with certain exceptions, between only Shreveport and the Louisiana-Texas State line and that the application should in all other respects be denied.

In support of the position that Robison was in bona fide operation over the segment between the city limits of Atlanta and the LouisianaTexas State line, English introduced evidence to the effect that the Texas commission has jurisdiction over for-hire motor-carrier operations only when the operations are between two or more cities, towns, or villages. On the route between the city limits of Atlanta and the Louisiana-Texas State line, there are no cities, towns, or villages. English contends therefore that the operation of Robison, at least to this extent, was not conducted in defiance of Texas laws and hence was bona fide. The operation by Robinson, however, was one over the entire route between Texarkana and Shreveport, serving all intermediate points. Among the points served were Texarkana, Oil City, and Atlanta located on the Texas portion of the route. Robison did not perform two operations, one between Texarkana and Atlanta and another between the city limits of Atlanta and Shreveport. Of necessity, he was operating between two or more cities, towns, or villages in Texas. The State commission assumed jurisdiction over this entire route in Texas prior to the acquisition of the segment by English and denied to Robison authority to operate over the whole route in that State. English cannot now contend that his segment was not subject to the Texas commission's jurisdiction. Further, as indicated above, we have concluded that the entire operation of Robison in Texas for almost 2 years prior to the transfer to English was not bona fide under the "grandfather" clause of section 206 (a) of the Interstate Commerce Act.

English submitted evidence showing that Robison had transported general commodities, with exceptions, over the portion of the route between Shreveport and the Louisiana-Texas State line, serving all intermediate points, continuously since prior to June 1, 1935, up to the time of the acquisition by English and that the latter has so operated continuously subsequent thereto. To this extent, authority will be granted. In connection with this service, there is no evidence that articles of unusual value, dangerous explosives, commodities in bulk, commodities requiring special equipment, and household goods as defined in Practices of Motor Common Carriers of Household

Goods, 17 M. C. C. 467, have been transported. These commodities will therefore be named as exceptions to the general-commodity authority granted.

In view of our decision herein, it is unnecessary to discuss the extent of the operation conducted by Robison, Rountree, and English over the considered route in Texas on and subsequent to June 1, 1935.

FINDINGS

Upon further hearing, we find, in No. MC-59468 (Sub-No. 4), that applicant's predecessor in interest on June 1, 1935, was, and that applicant and his predecessor continuously since have been, in bona fide operation, in interstate or foreign commerce, as common carriers by motor vehicle, of general commodities, except articles of unusual value, dangerous explosives, commodities in bulk, commodities requiring special equipment, and household goods as defined in Practices of Motor Common Carriers of Household Goods, 17 M. C. C. 467, between Shreveport, La., and the Louisiana-Texas State line, over Louisiana Highway 8, with service at all intermediate points; that applicant is entitled to a certificate authorizing continuance of such operation; and that the application in all other respects should be denied.

Upon further hearing, we further find, in No. MC-72988 (Sub-No. 1), that applicant and his successor-predecessor in interest have failed to establish the right to a certificate under the "grandfather" clause of section 206 (a) of the act and that the application should be denied.

Upon compliance by applicant in No. MC-59468 (Sub-No. 4) with the requirements of sections 215 and 217 of the act, and our rules and regulations thereunder, an appropriate certificate will be issued. An order will be entered denying the application except to the extent indicated.

42 M. C. C.

INVESTIGATION AND SUSPENSION DOCKET No. M-14581 FARM SEEDS FROM NORTH DAKOTA TO INDIANA, NEW YORK, OHIO, AND PENNSYLVANIA

Submitted October 17, 1941. Decided July 30, 1943

1. In I. and S. Docket No. M-1458, proposed commodity rates on certain seeds, minimum 10,000 pounds, from Fargo and Grand Forks, N. Dak., to Buffalo, N. Y., Pittsburgh, Pa., and 37 points in Indiana and Ohio, found not shown to be just and reasonable, and ordered canceled. Proposed rates, minimum 18,000 pounds, on the same traffic found just and reasonable.

2. In No. MC-C-259, commodity rates on certain seeds, minima 10,000 and 15,000 pounds, from Fargo and Grand Forks to Minneapolis, Minn., and certain points of destination grouped therewith, and commodity rates on certain seeds, minimum 18,000 pounds, from Minneapolis and certain points of origin grouped therewith to Buffalo, Pittsburgh, and 37 points in Indiana and Ohio, found just and reasonable. Proceedings discontinued. Harry M. Slater, P. M. Greenberg, and Maurice Andren for respondents.

Thomas H. Maguire, T. J. Slattery, Conrad Olson, D. R. Frost, J. E. Flansburg, M. E. Perrine, H. C. Lindstrom, and C. C. Plummer for rail carriers.

Neal E. Williams for Chamber of Commerce of Fargo, N. Dak.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS MAHAFFIE, SPLAWN, AND ALLDREDGE BY DIVISION 2:

These proceedings present related issues, were heard together, and will be embraced in a single report. Exceptions were filed by the rail carriers to the proposed report of the examiner. Our conclusions differ somewhat from those he recommended.

In Investigation and Suspension Docket No. M-1458, by schedules filed to become effective February 8, 1941, common carriers by motor vehicle, parties to tariff MF-I. C. C. No. 46 of the Central States Motor Freight Bureau, Inc., agent, hereinafter called the bureau, proposed commodity rates, minima 10,000 and 18,000 pounds, on certain farm seeds, from Fargo and Grand Forks, N. Dak., to Buffalo, N. Y.,

1 This report also embraces No. MC-C-259, Farm Seeds from North Dakota to Minnesota, and from Minnesota to Indiana, New York, Ohio, and Pennsylvania.

2

and Pittsburgh, Pa., and 37 destinations in Indiana and Ohio. Upon protest of the western trunk-line rail carriers, the operation of the schedules was suspended until September 8, 1941, and subsequently, the respondents voluntarily postponed their operation indefinitely. To the destinations just named, these carriers maintain commodity rates on seeds from certain points in Minnesota, described in the next paragraph, and herein termed the Twin Cities. Likewise, some of these same carriers, and certain other motor carriers, maintain commodity rates on seeds from Fargo and Grand Forks to the Twin Cities. The level of the reduced one-factor rates proposed in the title proceeding was arrived at by aggregating these rates to and from the Twin Cities. To enable us to prescribe harmonizing changes in these intermediate rates in the event the proposed rates were found unlawful, we instituted the investigation referred to in the next paragraph.

No. MC-C-259 is an investigation, instituted on March 19, 1941, into and concerning the lawfulness of the rates and charges, and the rules, regulations, and practices relating therto, applicable to the transportation by motor vehicle, in interstate or foreign commerce, of seeds, as described in item 750 of tariff MF-I. C. C. No. 188 of Lou Hosking, agent, from Fargo and Grand Forks to Columbia Heights, Fort Snelling, Hopkins, Minneapolis, Newport, North St. Paul, Robbinsdale, St. Louis Park, St. Paul, South St. Paul, State Fair Grounds, and West St. Paul, Minn., and of seeds, as described in item 1340 of tariff MF-I. C. C. No. 46 of the bureau, from Columbia Heights, Hopkins, Minneapolis, Minnesota Transfer, Newport, North St. Paul, Robbinsdale, St. Louis Park, St. Paul, and South St. Paul, Minn., to Buffalo and Pittsburgh and points in Indiana and Ohio shown in footnote 2. The motor common carriers which are parties to the respective tariffs are respondents therein.

At the heåring, respondents abandoned support of the proposed rates, minimum 10,000 pounds, and we will not consider them further. The Chamber of Commerce of Fargo supported, and certain rail carriers opposed, the schedules. No shipper appeared in support of the proposed or the present commodity rates. As used herein, present rates are those in effect at the time of the hearing in May 1941, and do not include the general increases established early in 1942. Rates are stated in amounts per 100 pounds.

Through rates.-The present rates of the respondents on through shipments of seeds, minimum 20,000 pounds, from Fargo and Grand Forks to Buffalo, Pittsburgh, and the other eastern destinations are one-factor class rates equaling 50 percent of the first-class rates. The

'Akron, Ashtabula, Cambridge, Canton, Chillicothe, Cincinnati, Cleveland, Columbus, Dayton, Defiance, Fostoria, Gallipolis, Lima, Logan, Mansfield, Marion, Mineral, Newark, Painesville, Plymouth, Portsmouth, Sandusky, Sardinia, Springfield, Toledo, Uhrichsville, and Youngstown, Ohio, and Crawfordsville, Fort Wayne, Indianapolis, La Fayette, Logansport, Peru, Richmond, South Bend, Valparaiso, and Warsaw, Ind.

proposed one-factor commodity rates on seeds,3 minimum 18,000 pounds, range from 29 to 42 percent of first class. These proposed rates, except on certain seeds to two destinations, are higher than the corresponding rail carload rates. The latter rates are either 32.5 or 27.5 percent of first class, minimum 30,000 or 40,000 pounds, depending on the kind of seed in the shipment. Likewise, the proposed rates are higher than the rail carriers' rates on seeds in the reverse direction.

In appendix A, the proposed rates from Fargo to certain destinations are compared with the corresponding east-bound rail rates. Highway distances and truck-mile revenues are also shown therein. Through movements by the respondents from Fargo and Grand Forks to these eastern destinations require interchange between two, three, or more

carriers.

The proposed reduced rates equal the aggregate of the present intermediate commodity rates of respondents. For example, the rate of 19 cents, minimum 15,000 pounds, from Fargo to the Twin Cities, plus the 61-cent rate, minimum 18,000 pounds, from the Twin Cities to Akron, equals the proposed rate of 80 cents, minimum 18,000 pounds, from Fargo to Akron. This fact, as well as the fact that the proposed rates in general are higher than the rail rates, is the principal evidence in justification of the proposed schedules. The cost of transporting a through shipment is less than that incurred in handling corresponding local shipments to and from an intermediate point. One reason is that, in interchanging a through truckload shipment at an intermediate point, the connecting carriers make truck-to-truck transfers, and incur neither pick-up and delivery nor certain other terminal costs which are incidental to local shipments originating at or destined to that point. Certain other expenses, such as solicitation, are also less on a through shipment than on two corresponding local shipments to and from the intermediate point. The remaining evidence of respondents is primarily in defense of the intermediate rate factors, hereinafter discussed, under investigation in No. MC-C-259.

Eastern rate factors.-From the Twin Cities to Buffalo, Pittsburgh, and the 37 destinations in Indiana and Ohio, respondents' commodity rates apply on the same list of seeds shown in footnote 3. These rates, minimum 18,000 pounds, are either the same as or higher than the corresponding rail rates, minimum 30,000 pounds. Related rates of respondents from and to these points, minimum 10,000 pounds, were voluntarily canceled by respondents prior to the hearing, and will not be considered further. In appendix B, respondents' and the rail carriers' rates from Minneapolis to representative points are shown, together with truck-mile earnings yielded by respondents' rates.

'Alfalfa ; broomcorn; canary; clover, crotalaria; grass seed, N. O. I.; hemp; Hungarian ; lespedeza: mustard, other than wild; rape; timothy; or vetch; in bags, barrels, or boxes.