report and recommended order thereon. Under the provisions of the section cited, we must give such weight to the conclusions as, in our judgment, is justified by the evidence.

On August 26, 1940, in No. MC-101749-TA, we entered an order granting applicant temporary authority to operate as a common carrier by motor vehicle, over irregular routes, of forest products, between railheads and docks, on the one hand, and lumber mills, on the other, such service being restricted to points within 50 miles of Florence, Oreg., including Florence.

Applicant conducts a milk route in Oregon and uses two of his three trucks in this service. This intrastate operation consumes about 4 hours of each day. He has one truck available for other hauling at all times, and the other two trucks, one of which is a small pick-up truck, can be used when not occupied in the milk haul. Except in regard to the transportation of lumber-mill products, as described below, applicant either failed to present sufficient facts at the hearing indicating the interstate nature of the proposed operations, or admitted the remoteness of possible future traffic necessitating a grant of authority. His application for a certificate for the transportation of general commodities within 40 miles of Florence is based upon the expectant operation of a boat line to and from Florence. There has been no boat-line operation at Florence for several years, and it is not known when, if ever, such a service will be instituted. He was unable to state the points between which heavy machinery might move since the few requests he has had for such a service concerned movements in or about Cushman, Oreg. No demand has been made upon him for the movement of farm products, which were said to consist of potatoes and grain, and he was aware of no available interstate hauls of dairy products.

Applicant also testified to the possibility of hauling one load of beer, consisting of 12,000 pounds, once every 3 months from Marshfield to Florence, and of the transportation of fish from Florence and Cushman to Gardner, Reedsport, Marshfield, and Winchester Bay, Oreg. Admittedly, however, two motor common carriers operating in the described territory are able to handle this traffic whether in interstate or intrastate commerce. In addition to these operations, applicant has been operating for about 2 months between Florence, Glenada, and Cushman, under an undisclosed arrangement with a rail carrier, the Southern Pacific Company. This was described as an intrastate service, and he desires a certificate for operation between the same points because of the possibility of being called upon to haul interstate traffic at some future time. In view of the absence of material facts as to this past and proposed service, no determination can here be made as to the exact nature of this operation. It is noted, however, that

the rail carrier opposes the granting of a certificate to applicant for operation within the 40-mile area around Florence, which includes Glenada and Cushman. Since no testimony was presented at the hearing on behalf of the rail carrier on this service, and in view of its opposition to the granting of that portion of the application, it seems clear that it does not contemplate using applicant for a linehaul interstate service between the three named points.

With respect to the transportation of lumber-mill products, an operator of a shingle mill is interested in the movement of shingles from his mill, located about 8 miles from Florence, to railheads and docks at Florence and Cushman for further movement to California by rail and water lines. Applicant is the only motor carrier available for this service, and there appears to be a need for this operation. About five other shingle mills are located in the same general area and applicant will be called upon to transport lumber-mill products from points within 40 miles of Florence to railheads and docks in the same area. He is able, financially and otherwise, to conduct this service.

We find that the present and future public convenience and necessity require operation by applicant as a common carrier by motor vehicle in interstate or foreign commerce over irregular routes, of lumber-mill products, between points and places within 40 miles of Florence, Oreg., including Florence; that applicant is fit, willing, and able properly to perform such service and to conform to the provisions of the act and our rules and regulations thereunder; that an appropriate certificate should be granted; 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 indicated.

PATTERSON, Commissioner, concurring in part:

Applicant requests authority to transport only three specific lumbermill commodities, lumber, shingles, and shakes. To this I agree. There is no evidence to support the grant of a certificate to transport others.

At present applicant is operating between railheads, docks, and lumber mills within 40 miles of and including Florence, Oreg. His operation should be so limited.

28 M. C. C.

INVESTIGATION AND SUSPENSION DOCKET No. M-1098 PACKING HOUSE PRODUCTS FROM DES MOINES, IOWA, TO ST. LOUIS, MO.

Submitted July 12, 1940. Decided March 6, 1941

Proposed new motor common carrier commodity rate on packing-house products from Des Moines, Iowa, to St. Louis, Mo., found not shown to be unlawful. Order of suspension vacated and proceeding discontinued. Donald R. Wigton and G. E. Bruce for respondents. H. L. Hafer and C. N. Richards for protestants.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, And ALLDREDGE BY DIVISION 2:

By schedules filed to become effective June 15, 1940, respondents, motor common carrier members of the Western Trunk Line Motor Common Carriers Bureau, proposed to establish a new commodity rate on packing-house products, minimum 5,000 pounds, from Des Moines, Iowa, to St. Louis, Mo. The proposed schedules, although published at the request of Bruce Motor Freight, Inc., of Des Moines, are unrestricted and therefore apply over the lines of all parties to the Bureau's tariff who operate between Des Moines and St. Louis. Upon protest of the western trunk-line rail carriers, the operation of the schedules was suspended until December 12, 1940, and subsequently was voluntarily postponed by respondents until March 12, 1941. Rates are stated in amounts per 100 pounds.

The commodities included in the packing-house products list are rated in the rail and truck classifications from first to fourth class in less than carloads and less than truckloads. The applicable class rates from Des Moines to St. Louis on shipments under 5,000 pounds are the same by rail and truck, namely, $1.21 first, $1.03 second, 85 cents third, and 67 cents fourth class. The present rates on shipments of 5,000 pounds and over by truck are 3 cents less than the respective class rates. The proposed commodity rate is 45 cents. The record fails to show the volume of truck movement, if any, of packing-house products from Des Moines to St. Louis. The proposed 45-cent rate is intended to enable certain packing houses at Des Moines to ship their products to St. Louis in competition with

packing houses at other points. The proposed 45-cent rate is expected to develop sufficient business in the St. Louis area to enable Des Moines shippers to make not only less-than-truckload but also truckload shipments to that market. The preponderance of the freight transported by the Bruce Motor Freight, Inc., is from St. Louis to Des Moines, and consequently the proposed rate would supply added traffic for equipment that otherwise would return empty from Des Moines to St. Louis.

Respondents compare the 45-cent rate, minimum 5,000 pounds, with the rail rates from and to the same points of 27 cents, minimum 30,000 pounds, on packing-house products, and 34.5 cents, minimum 30,000 pounds, on salted meats. For the distance of 346 miles the proposed rate would produce ton-mile earnings of 26 mills, and compares favorably with the existing truck commodity rates on packing-house products shown in the following table:

The protestants contend that the proposed rate would be unreasonably low. The rail class rates from Des Moines to St. Louis were prescribed by the Commission; and in this territory it is customary to apply class rates to packing-house products when shipped in small quantities. The respective commodities included in the packing-house products list are rated from first to fourth class but the predominant rating is third class. It was not shown whether packing-house products are shipped by rail in less-than-carload quantities from Des Moines to St. Louis.

Truckloads of packing-house products consist of 18,000 to 24,000 pounds, depending upon the size of the equipment. The proposed rate, notwithstanding the 5,000 pounds minimum, is a less-thantruckload rate. It may be customary for the rail carriers to apply class rates to packing-house products when shipped in small quantities; but the rates set forth in the above table show clearly that in this territory motor carriers frequently establish commodity rates on packing-house products in lots of 5,000 pounds or more. The suspended rate is not unreasonably low in comparison with other commodity rates, minimum 5,000 pounds, on packing-house products in the same territory, particularly with that of 35 cents from Cedar

Rapids, Iowa, a nearby packing point, to St. Louis. The proposed rate is low, but we are not convinced that it is less than a reasonable minimum rate.

We find that the proposed rate has not been shown to be unreasonably low or otherwise unlawful. An order will be entered vacating the order of suspension and discontinuing this proceeding.

COMMISSIONER ALLDREDGE dissents.

INVESTIGATION AND SUSPENSION DOCKET No. M-1176

ATKINSON MOTOR FREIGHT, INC., COMMODITIES BETWEEN NEW JERSEY, NEW YORK, AND PENNSYLVANIA

Submitted August 23, 1940. Decided March 7, 1941

Proposed commodity rates on wrapping paper and waste wax from West Conshohocken and Manayunk, Pa., to New York, N. Y., and points in New Jersey taking the same rates, and in the reverse direction, and on sulphur and related commodities and sago flour between Philadelphia, Pa., and New York, N. Y., and related points, found unlawful. Suspended schedules ordered canceled and proceeding discontinued.

H. O'Donnell for respondent.

T. C. Crouch, George C. Doering, William F. Zearfaus, and Marvin F. Hoagland for protestants.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS MAHAFFIE, ALLDREDGE, AND JOHNSON BY DIVISION 3:

By schedules filed to become effective July 30, 1940, respondent Atkinson Motor Freight Company, Inc., of Conshohocken, Pa., a motor common carrier, proposed to establish commodity rates on wrapping paper and waste wax from West Conshohocken and Manayunk, Pa., to New York, N. Y., and points taking the same rates, and in the reverse direction, and on sulphur and related commodities and sago flour between Philadelphia, Pa., and New York. Upon protest of the rail carriers in trunk-line territory and the Middle Atlantic States Motor Carrier Conference, Inc., herein after referred to as the conference, operation of the schedules was suspended until January 26, 1941, and has been postponed indefinitely by respondent. At the hearing respondent stated that it would withdraw the rates proposed