of Household Goods, supra, and of uncrated furniture between New York, N. Y., on the one hand, and points in Connecticut, New Jersey, Massachusetts, and that part of Pennsylvania on and east of U. S. Highway 15, on the other, over irregular routes. On exceptions, applicant contends that it also is entitled to "grandfather" authority for the transportation of household goods and of uncrated furniture between New York, N. Y., on the one hand, and points in New York, on the other. Shipments of household goods and new and used furniture, since prior to June 1, 1935, are shown by the oral and documentary evidence to have been transported between New York City and points in New Jersey, Connecticut, Pennsylvania, and Massachusetts. The transportation, occurring over a period of years, is in small volume and at irregular intervals, and with regard to many of the points there is a lapse of several years between shipments, or shipments are not repeated to or from the point. However, the transportation of household goods is an irregular-route service, and operation to or from a particular point is likely to be repeated only at infrequent intervals, if at all. It is clear from the evidence that the transportation by applicant of new and used furniture is similar to that of household goods, with respect to the irregularity of service. In our opinion, applicant should be authorized to continue the transportation of uncrated new and used furniture, and of household goods, between New York City, on the one hand, and all points in New Jersey, Connecticut, Massachusetts, and Pennsylvania, on the other. There is no evidence of the transportation by applicant of any shipments on and since the statutory date, to or from points in New Hampshire, Delaware, Maryland, Rhode Island, and the District of Columbia. The evidence as to operations to and from points in Vermont and Maine shows a few shipments in 1936 and 1937, and none occurring prior to June 1, 1935. On this showing, applicant is not entitled to authority to or from points in these States. No evidence, oral or documentary, has been submitted to show operation at any time by applicant, in interstate or foreign commerce, between New York City, on the one hand, and points in New York, on the other, and authority therefor may not be granted. We find that applicant was on June 1, 1935, and continuously since has been, in bona fide operation, in interstate or foreign commerce, as a common carrier by motor vehicle, of uncrated new and used furniture, and of household goods as defined in Practices of Motor Common Carriers of Household Goods, 17 M. C. C. 467, between New York, N. Y., on the one hand, and points in New Jersey, Connecticut, Massachusetts, and Pennsylvania, on the other, over irregular routes, through Rhode Island when necessary; that applicant is entitled to a certificate of public convenience and necessity authorizing continuance of such operations; and that in all other respects the application should be denied. Upon compliance by applicant 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 granted herein. INVESTIGATION AND SUSPENSION DOCKET No. M-1943 JUICES AND FLAVORING COMPOUNDS FROM COLUMBUS, GA., TO THE SOUTHWEST Submitted November 2, 1942. Decided March 29, 1943 Proposed less-than-truckload commodity rates on unfermented fruit juices and bottler's artificial or natural flavoring compounds, from Columbus, Ga., to certain southwestern destinations, found just and reasonable. Proceeding discontinued. C. E. Walker for respondents. G. A. Ryser, Robert Thompson, C. C. Hines, H. H. Larimore, C. S. Burg, H. C. Barron, M. G. Roberts, G. H. Muckley, B. F. Batts, Harry E. Boe, and Wm. E. Davis for protestants. REPORT OF THE COMMISSION DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND ALLDREDGE BY DIVISION 2: One of the respondents, Dixie Freight Lines, Inc., filed exceptions to the order recommended by the examiner. Our conclusions differ from those recommended. By schedules filed to become effective February 14, 1942, and later, North Alabama Motor Express, Inc., Dixie Freight Lines, Inc., and their western connections forming through motor common carrier routes between Columbus, Ga., and the Southwest proposed to establish reduced less-than-truckload commodity rates on unfermented fruit juices, and bottler's artificial or natural flavoring compounds, from Columbus, Ga., to 16 destinations in Arkansas, 8 in Louisiana, 3 in Missouri, 15 in Oklahoma, and 38 in Texas. Upon protest of the rail carriers in southwestern territory, operation of the proposed schedules was suspended until September 14, 1942, and the respondents have voluntarily postponed the effective date indefinitely. Unfermented fruit juices and bottler's artificial or natural flavoring compounds are rated third class (70 percent of first class) in the governing rail and motor-carrier classifications. The rail carriers maintain exceptions ratings of 57 percent of first class on the flavoring compounds, and 42 percent of first class on flavoring sirup, in less than carloads, from and to these points. To five points embraced in one of the suspended items, three in Missouri and one each in Arkansas and Louisiana, no change would result from the proposal, as the respondents already maintain commodity rates to these points on the proposed basis. To Muskogee, Okla., and to nine destinations in Arkansas, seven in Louisiana, and two in Missouri, the respondents also maintain less-than-truckload commodity rates on the flavoring compounds and fruit juices, which range from 1 to 37 percent higher than the proposed rates and average 22 percent higher, equivalent to approximately 51 percent of first class. To other southwestern destinations the percent less-than-truckload rates on the fruit juices and flavoring compounds from Columbus are on the basis of 57 percent of first class. The rail exceptions ratings of 57 and 42 percent of first class are designated as having been established to meet "motortruck competition." A motor exceptions rating of 37 percent of first class on flavoring compounds, not otherwise indexed by name in the national motor freight classification, is published to apply from and to certain points in southern territory for distances averaging about 350 miles. An exceptions rating of 53 percent of first class also applies on these commodities and on flavoring sirup between certain points in the South and certain points in central territory. The respondents now propose to establish rates which generally are 42 percent of first class on both the fruit juices and flavoring compounds in less than truckloads, from Columbus to these destinations in southwestern territory. The reduced rates were also proposed by the respondents at the same time for application on flavoring sirup from Columbus to the same destinations. That proposal was not protested, and the rates became effective on the flavoring sirup. The respondents' principal purpose in proposing the reduced rates was to afford the shippers the same basis of rates to this territory on both flavoring compounds and flavoring sirup. As indicated, commodity rates on the basis proposed are now maintained from Columbus to these destinations on flavoring sirup by both the rail and motor common carriers. The flavoring compound is a liquid, shipped in gallon glass jars in fiberboard cases, packed four to a case. Both the compound and the sirup are used in somewhat the same fashion as bases for soft drinks sold at soda fountains, although the compound is perhaps more concentrated than the sirup. The value of the compound, from $15 to $25 a case, is about half that of the sirup, which is shipped mostly in wooden or metal barrels. The respondents contend that the proposal to apply the same rate to southwestern territory on the flavoring compounds and fruit juices as is maintained by both rail and motor common carriers on the flavoring sirup is reasonable, because the same basis of rates is maintained on all these commodities between points in southern territory, from the South to certain points in central territory, and between Columbus and certain points in central territory. Protestant rail carriers oppose the proposed rates because of a fear that they will impel similar reductions by motor common carriers between points in the Southwest, where generally rail and motor common carriers now maintain the same bases of rates. Since rates on the basis of 42 percent of first class on flavoring sirup in less than truckloads from Columbus to these same southwestern destinations became effective, the rates of the motor common carriers on all these commodities from and to these points are on the same bases as the rail rates, and this parity would be disrupted if the proposed basis became effective. The protestants also contend that the respondents have failed to meet the burden of showing that rates on the basis proposed would yield reasonably compensatory revenues. They refer to the average cost of operation of the North Alabama Motor Express, Inc., for 1941, 37.74 cents a truck-mile, as shown in a statement filed with the Commission. However, that cost figure reflects an average haul for that carrier of 81.6 miles and is obviously quite high. There is no warrant for applying it to the hauls here considered which are about 10 times as long. From Columbus to Dallas, Tex., the proposed rate of $1.05 per 100 pounds, for the distance of 760 miles, would yield revenue exceeding 2.76 cents a ton-mile. It is clear that the transportation characteristics of artificial or natural flavoring compounds are at least as favorable as those of flavoring sirup. Respondents, in the exercise of their business judgment, have concluded that the rates on these two commodities should be the same, and there is nothing in this record to support the conclusion that their judgment in this respect is wrong or that the resulting rates would be unlawful. We find that the proposed rates are just and reasonable. An order will be entered discontinuing the proceeding. 42 M. C. C. INVESTIGATION AND SUSPENSION DOCKET No. M-16691 BOOTS AND SHOES FROM BOSTON, HARTFORD, AND NEW YORK TO THE PACIFIC COAST Submitted September 15, 1942. Decided March 25, 1943 1. In I. and S. No. M-1669, reduced less-than-truckload motor common carrier commodity rates on boots and shoes from Boston, Mass., Hartford, Conn., and New York, N. Y., to Portland, Oreg., and certain points in California and Washington found just and reasonable. 2. In No. MC-C-282, less-than-truckload motor common carrier commodity rates on the same commodities from the same origin points, and from Philadelphia, Pa., and Baltimore, Md., to points in California, Oregon, and Washington, found not unreasonable or otherwise unlawful. 3. Proceedings discontinued. Sylvester C. Horn and Fred C. Leibold for respondents. J. A. Gallaher for others. REPORT OF THE COMMISSION DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND ALLDREDGE BY DIVISION 2: The protestants in the title proceeding filed exceptions to the order recommended by the examiner. In the title proceeding, by schedules filed to become effective June 17, 1941, motor common carriers parties to tariff MF-I. C. C. No. 11 of Rocky Mountain Motor Tariff Bureau, Inc., agent, hereinafter termed the bureau carriers, proposed to establish reduced less-thantruckload commodity rates on boots and shoes, not otherwise specified, in boxes or in locked salesmen's trunks, from Boston, Mass., Hartford, Conn., and New York, N. Y., to Portland, Oreg., Seattle, Spokane, Tacoma, and Yakima, Wash., and San Francisco, Alameda, Berkeley, Oakland, and Richmond, Calif. Upon protest of the New England rail carriers, operation of the proposed schedules was suspended until January 17, 1942. Thereupon, the operation of the schedules was voluntarily postponed by the respondents until April 5, 1942, when they were canceled, and rates 6 percent higher than the suspended rates, in accordance with the general increases of March 1942, were established. 1 This report also embraces No. MC-C-282, Shoes and Boots from Eastern and New England Points to the Pacific Coast. * Including numerous points grouped therewith. |