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In 27 of those instances, the trip-lease load originated in Chicago and the study shows no assumed dead head mileage savings. In 15 other instances, the assumed mileage savings would have been under 30 miles per reloading. In the other instances shown in the study, the deadhead mileage savings would have been substantial. In sum, the study purports to show that if System Transport had had authority to reload its own westbound shipments in Chicago on these shipments, it could have avoided 4,790 of the 14,263 dead head miles actually incurred in securing its backhaul shipments. Of course, the same potential savings could have been achieved if System Transport had secured its backhauls by trip leasing from Chicago in all instances.

As of April 30, 1974, System Transport's balance sheet showed total assets of $275,872, including current assets of $115,530 ($95,228 of which was accounts receivable), with a net worth shown as $67,346. It should be noted that the assets include a franchise value of $66,926, the consist of which was not explored at the hearing. Its operating income for the first 4 months of 1974 totaled $500,467. Amounts paid to owner-operators totaled approximately $400,000. Other expenses were about $75,000, leaving a pretax net income of about $25,000.

System Transport has several other applications pending in various stages of processing before the ICC, subnumbered 17, 18, 20, 24, 25, 26, 27, 28, and 29. The following is a general summary of the types of services proposed by System Transport in these proceedings:

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Requested service areas

Iron and steel arti- From Chicago to points in 12 Western States.

Iron and steel arti- (1) Between 5 named points in Illinois and
one point in Missouri, on the one hand, and,

on the other, points in 12 Western States; (2)
from St. Louis, Mo., and Cleveland, Ohio, to
points in 8 States.

Iron and steel arti- From points in California to points in Wash-
ington, Oregon, Idaho, and Montana.
Buildings and building From Milwaukee, Wis., to the Pacific North-
Plywood and various
related wood pro-



From a named plantsite at Chicago to points in 8 Western States.

Coal tar pitch pro- From a named plantsite at Granite City, Ill.,
to points in 11 Western States.
Fertilizer ingredients From

two named cities in Illinois to west coast.


Sub-No. 28

Sub-No. 29


Buildings and related From Galesburg, Ill., Kansas City, Mo.,

and Visalia, Calif., to points in Idaho,
Oregon, Washington, and Nevada.
From Mason City, Iowa, to points in 8
Western States.

Metal doors, steel sash,
and related products.

The Ohio Steel Tube Company of Shelby, Ohio, manufactures seamless and welded steel tubing varying in specifications from 3/4-inch outside dimension to 7 1/2-inch, and in length up to 40 feet, as required by its customers. The normal mill run of such tubing ranges between 17 feet and 24 feet in length. The tubing weighs between several pounds per foot on the smaller diameter tubing to about 100 pounds per foot

on the larger diameters. For transportation the tubing is bundled for overhead crane loading.

This shipper makes regular shipments of this tubing to Western States, averaging about four carloads weekly, ranging in weight between 70,000 and 100,000 pounds per car. As pertinent here, most of that traffic moves to California, Oregon, and Washington, with lesser amounts to Idaho and Utah. It ships predominately by rail, but also makes some use of motor carrier service. It prefers truck service for those customers who need "speedy" delivery and for those who are not located on rail sidings. Some of its rail shipments are mixed carloads destined for several different customers at different locations, and at times it may take up to 3 weeks from arrival of that car on the west coast to complete all the deliveries. As far as this shipper's use of existing motor carrier service to the west coast is concerned, its representative at the hearing observed “*** I don't have too much I can offer to the west coast by truck but when I have it I will offer it to anybody I can find." If the applicant were granted the authority sought here, this shipper would expect to use applicant on shipments to the west coast, estimating that the traffic would amount to about four truckloads per week.

Ohio Steel had not been solicited for this traffic by Hilt Freight Lines, and it was not aware of the scope of the Hilt operations. It would however have no objection to using the services of that carrier if offered. It has used the services of Ringsby-United, but not beyond Colorado. Only rarely has it requested Ringsby-United service to the west coast, because it did not seem that Ringsby-United usually had equipment available to handle the shipments when requested. About 2 weeks before the hearing it made such a request of Ringsby-United on a shipment moving to Los Angeles, but the carrier was unable to furnish the equipment needed. It makes extensive use of Ace Doran in the East and Midwest but not to the west coast. Shipper has been told by that carrier that the required interline rates to the west coast on this traffic would be too high to move it. It has used the services of Sammons to Western States as a part of a connecting carrier service, but Sammons at times has not had equipment available when requested. When the Sammons-connecting carrier service has been used, it has been satisfactory. Shipper had not attempted to use the services of Sammons in the 10week period immediately preceding the hearing.

Docummun Metals and Supply Company of Vernon, Los Angeles County, Calif., supports the application. As pertinent here it purchases stainless sheet steel and stainless sheet coil from the McLouth Steel Corporation of Detroit and has it shipped to its locations at Los Angeles, San Diego, and Berkeley, Calif., and Kent, Wash. At the present time all of this traffic is shipped by rail. The railcars will average 150,000 pounds per car, with between four and six cars being shipped monthly. About 80 percent of this traffic is shipped to the Los Angeles plant. The commodities are aggregated in 5,000-pound lots for shipment on skids. Transit time by rail ranges from about 8 days to 2 weeks on its shipments from Detroit.

Shipper has not recently used the services of the protestants from the Detroit area, because it was unaware that relevant truck service was available to the Los Angeles area. Its witness at the hearing had made no investigation of what existing motor carrier service was available from Detroit to its west coast plants. It does experience damage to its commodities in transit by rail and it also incurs delays in shipments. At times it takes up to 2 weeks to accumulate, at the Detroit mill, the quantity necessary for a rail carload shipment. At the time of the hearing its effective rail carload rate was $3.40 per hundredweight, and it would use the proposed motor carrier service in substitution for the existing rail service if the motor carrier rate were "awfully close." or about $4 per hundredweight.

McLouth Steel Corporation is a manufacturer of primary steel which, as pertinent here, sells and ships its carbon steel and stainless steel to customers on the west coast from its mills in the Detroit area. Ordinarily these commodities are aggregated into 5,000-pound lots for shipment on skids. During 1973, it moved approximately 5,000 tons of these commodities to west coast destinations from the Detroit mills, primarily to points in California and Washington. For 1974, that volume was expected to increase to 10,000 tons, with projected increases of about 15 percent for succeeding years. It has been using rail service exclusively on this traffic, but three of its customers have recently been making requests for truck deliveries. Generally, the factors behind these requests are that rail shipments cause damage to the lading; that truck service would be faster; and that trucking service would allow aggregation of smaller amounts before shipment. It has been using motor carrier service extensively on shipments to other market areas. It is unable to estimate what volume of traffic it would tender applicant if the authority sought were granted, since its customers are the ones who specify whether or not motor service will be used and its customers have given it no information on this point. It has not been solicited for the west coast traffic by the protestants. If the protestants would provide the kind of service applicant proposes at reasonably competitive rates it would have no objection to using them.

At its plants in Los Angeles and Oakland, Calif., Portland, Oreg., and Seattle, Wash., the Kilsby Tubing Supply Company, a distributor of aluminum, stainless carbon and alloy steel tubing and pipe, receives shipments of these commodities from steel mills at Cleveland, Shelby, and Lorain, Ohio. During 1973, it received about 30 carloads from the Cleveland and Shelby mills, a pace being sustained in 1974. These carloads were shipped at carload minimum weights ranging between 70,000 and 110,000 pounds. Some shipments are carloads destined for a single west coast plant, but others involve multiple deliveries at several points along the coast. Its current allocation from the Lorain mill approximates 20,000 pounds a quarter, which is being shipped by motor carrier.

It would like to have the kind of motor carrier service proposed by applicant 10 achieve faster transit times than those now available by rail. Normal rail transit time to the first destination on the west coast is about 10 days, and to the third destination it could be as much as 30 days or 6 weeks. It has used the services of protestant Sammons to the Seattle area from the Lorain mill and has found that service satisfactory. That service involved use of Hennis Freight Lines as the originating carrier with the interline taking place with Sammons at Chicago. Shipper would use applicant's services for approximately four or five truckload shipments monthly. It has made virtually no investigation of available existing motor carrier service to handle its trucking requirements from the steel mills to its west coast plants.

Joseph T. Ryerson & Son, Inc., operates steel “service centers" at some 25 locations across the country at which it receives various types of iron and steel commodities in carload and truckload quantities and then distributes them in less-than-truckload (LTL) quantities. As pertinent here it ships a full line of basic iron and steel, aluminum products in various shapes and sizes, as well as basic mill shapes, forms, et cetera, of plastic products, from its Chicago facilities to west coast service centers at Los Angeles and Emeryville, Calif., and Seattle and Spokane, Wash. During 1973, it shipped about 10.4 million pounds to California centers and 11.2 million pounds to Washington centers. Volume in the first quarter of 1974 was up about 20 percent.

In a large proportion of instances its shipments consist of mixed shipments of plastic and aluminum items together with the iron and steel items which are its predominant commodities. In 1973, it used Plan IV TOFC service exclusively to its California centers, whereas shipments to Spokane were about two-thirds motor carrier and one-third TOFC, and to Seattle, about one-third motor carrier and two-thirds TOFC. To its Washington centers it has used the services of Ringsby-United, Sammons, and International Transport.

Its problems with rail service are basically two: (a) it feels that the rail carriers are phasing out open-top flat-bed trailers it requires for its Plan IV TOFC and (b) it incurs some damage in TOFC service for which the railroads decline accountability. The trucking service it has used has involved no problems in terms of these factors.

In general it has detected a growing pattern of instances where motor carriers have not been able to furnish open-top flat-bed trailers, but the testimony on this point is vague and nonspecific. The service it has received from Sammons, which it has used primarily to Spokane, has been satisfactory. In the first quarter of 1974 it used truck service for 23 shipments and TOFC service for 59 shipments. It used International Transport for all of these motor carrier shipments in the first quarter, but it was also using Ringsby-United in the second quarter of 1974 on this traffic. It has not made any recent detailed investigation of available trucking service from Chicago to the west coas, since it seems to have found the carriers who can generally provide the type of service it requires, to its satisfaction.

The Van Huffel Tube Corporation, a division of Youngstown Sheet & Tube Company, makes shipments of steel pipe or tubing, steel channels, and related products from Warren, Ohio, to numerous points in California, Portland, and Eugene, Oreg, and Seattle and Yakima, Wash. About 90 percent of its west coast tonnage moves by rail, and the rest by motor carrier. During 1973, this traffic totaled about 2 million pounds. It averages about six carloads a week to the west coast and receives average transit times of approximately 14 days on these shipments. On motor service to these destinations it uses Ringsby-United, Yellow Transit, Lee Way Motor Freight, and receives an average transit time of about 4 or 5 days on these operations.

The Youngstown Sheet and Tube Company of Youngstown ships various types of pipe, bars, sheets, coils, et cetera, from its Youngstown area mills to a wide range of customers throughout the destination States here involved. In 1973, its shipments to California destinations totaled 47.4 million pounds (about 1 million by truck and the rest by rail); Idaho, 1.5 million pounds (about equally divided between truck and rail); Montana, 4.2 million pounds (1.8 million by rail and 2.4 million by truck); and Washington, 10.3 million pounds (about equally divided between truck and rail).

It avers that it needs more trucking service than now is available, due largely to changing needs of its customers: primarily, they want the smaller inventories that trucking service makes possible. It has used services of protestants Ringsby-United, Sammons, and Ace Doran and finds no particular fault with the quality of this service except that they often seem unable to furnish equipment when requested. Shipper also uses a number of other carriers who serve the Youngstown area. Shipper requires 40foot fat beds. If a carrier can furnish such equipment for loading within a day after the request for service, shipper regards that aspect of the service as satisfactory. It is not satisfactory for shipper if the carrier cannot furnish the equipment for 3 or more days. Often these shipments go directly to the customers' jobsites, where delays in delivery of these products can cause serious problems-for both the customers and the shipper.

At the hearing the witness for Youngstown described several instances in which he called a number of carriers, including protestants Sammons and Ringsby-United, but was unable to secure equipment for loading. In these instances shipper, therefore, had to change its plans and ship by rail. These instances occurred in June and December

1973 and January and February 1974. Shipper believes that it has more than enough traffic for existing carriers, but at the hearing it could not give any estimate of the volume of traffic that it could tender to applicant if the application were granted. Should applicant be authorized to provide this service, it would, in a sense, “join the pool" of available carriers on whom Youngstown would call in some form of random rotation, to secure service when needed.

A. M. Castle & Company makes shipments of various sizes, shapes, and forms of iron and steel, aluminum, nickel alloy, copper, and brass commodities from its plant at Franklin Park, III., primarily to its own plant facilities at Los Angeles and San Francisco though also occasionally to those at Sacramento and Fresno, Calif., and, more rarely, directly to individual customers in California. The volume of these shipments ranges beļween 160,000 pounds and 200,000 pounds a month. These shipments are made predominantly in TOFC service, but there are occasions when shipper would prefer to have truck service available. The TOFC rate structure, for example, "penalizes” shipper for tonnage in excess of 40,000 pounds, and TOFC load limitations preclude shipment of materials 40 feet or more long, or 8 feet or more wide. Also, some shipments of finished steel materials bear a high risk of weather damage in TOFC service, and the railroads insist on their release of liability from such damage. All in all, it would expect to use applicant's services for about 10 or 12 loads a year. Shipper had not made any investigation of otherwise available trucking service from the Chicago area in the 18 months or so preceding the hearing.

The Allied Tube and Conduit Corporation of Harvey, II., manufactures and distributes electrical conduit pipe, plastic conduit pipe, steel pipe and tubing, and coated pipe and tubing in a national market. Its major products are electrical conduit pipe and tubing used in the construction industry and galvanized steel pipe used in the fencing industry. Its midwestern production facilities are located in Harvey and it has storage nearby at Blue Island, III., from which it makes its distribution to the destination States involved in this proceeding. The electrical conduit manufactured by Allied is 10 feet long and ranges in size from one-half inch to 6 inches in outside diameter. Each length of conduit is packaged in a primary bundle of up to 10 lengths and each primary bundle is then packaged into a master shipping “lift” weighing approximately 3,000 pounds. The individual 10-foot lengths of pipe range in weight from 3 pounds to 177 pounds. Fence pipe and tubing is manufactured and cut to length from 5 feet ranging up to 22 feet and from 1 inch to 4 inches in outside diameter. Ii is customary to package both fence tubing and electrical conduit in the master shipping lifts for loading and stacking purposes. However, it is quite common for its customers to break open the shipping lifts at the time of delivery on all products and manually unload. Other customers will mechanically unload master shipping lifts for ease and convenience in handling.

During 1973 Allied shipped a total of approximately 10.1 million pounds of its products to points in California; 1.3 million pounds to points in Idaho; 238,000 pounds to points in Montana; 1 million pounds to points in Oregon; and 254,000 pounds to points in Washington. It was anticipating a substantial increase in this business for 1974.

Allied has been in business only a relatively short time, having been founded in 1960, but it has grown enormously. Its gross sales for 1974 are expected to reach $100 million. Initially it marketed all of its products through its own private motor carriage, directly controlling the nature of the service and guaranteeing delivery times. It later acquired the services of Cresco Lines, a specialized contract carrier whose equipment includes cranes mounted on the rear of its trailers to effect speedy onsite deliveries. It

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