on sago flour, and they will not be further considered. Rates are stated in cents per 100 pounds. The proposed rates are reductions under those now in effect. Respondent contends that they are reasonable and are necessary to attract some of the traffic to its lines. No shippers appeared in support of the protested schedules. The position of protestants, in general, is that the proposed rates would be unduly low; that there is no compelling competition to warrant them; and that if they became effective the other motor carriers and the rail carriers operating between the same points would be forced to make like reductions in their rates. Wrapping paper-Rates of 32 cents, on quantities less than 5,000 pounds, and 26 cents, on quantities between 5,000 and 20,000 pounds, are proposed on wrapping paper from West Conshohocken and Manayunk to New York City and related points, and in the reverse direction. The type of wrapping paper transported by respondent is an unfinished glazed wrapping paper which must be further processed before it can be used. It is used by manufacturers of bakery supplies, paper bags, and aluminum foil. The present less-than-truckload rates of the respondent and the conference lines on wrapping paper are column 55 rates of 35 cents between West Conshohocken and New York City and 34 cents between Manayunk and New York City. Respondent contends that the proposed rates are necessary to enable the shippers at West Conshohocken to meet the competition of manufacturers located in northern New Jersey near New York City. The competing points, however, are not of record. Wrapping paper, as a general rule, moves in truckload and carload quantities. The purpose of the proposed less-than-truckload rate of 32 cents is to enable respondent to transport small shipments of wrapping paper as fillers with large consignments of printing paper. The proposed rates range from 40 to 52 percent of the corresponding first-class rates. The prevailing less-than-truckload rating in trunk-line territory is 55 percent of first class. In Trunk Line Territory Motor Carrier Rates, 24 M. C. C. 501, in which minimum reasonable motor-carrier class and commodity rates were prescribed in trunk-line territory, division 5 approved less-than-truckload commodity rates, which are 60 percent of the prescribed first-class rates from and to certain points. The proposed rates on wrapping paper appear to be unreasonably low. Waste wax. On waste wax it is proposed to establish an anyquantity commodity rate of 28 cents from West Conshohocken to New York City and Elizabeth, Jersey City, and Newark, N. J., and in the reverse direction. This wax is a petroleum product with a paraffin base and is used to oil or wax paper. After being used for this purpose it becomes a discolored refuse which is used to waterproof cordage. No commodity rates now apply on this wax refuse. The motor and rail classification ratings in official territory on wax not otherwise indexed are third class in less than truckloads or less than carloads and fifth class in truckloads or carloads. The present third-class and fifth-class rates over respondent's route and those of the conference lines are 45 cents and 22 cents, respectively. The only justification for the proposed rate on waste wax is that it is as high as the shipper will pay. The respondent admitted that no assurance was given by the shipper of a movement at the proposed rate. A representative of one of the protesting rail carriers, serving the paper mill at West Conshohocken, which uses wax, stated that it takes 3 or 4 months to accumulate as much as 200 pounds of the refuse, and that it now moves to a cordage manufacturer in Philadelphia. Respondent submitted no information relative to the volume of movement or earnings thereon. The proposed rate is 44 percent of first class, which is an extremely low basis for less-thantruckload freight of any kind. No evidence has been submitted to warrant a departure from the classification basis on this commodity. Disinfectants.-On "wettable sulphur," "lime sulphur," "sulphuric disinfectants," and "pine tar tincture," respondent proposes an anyquantity commodity rate of 30 cents between New York and Philadelphia, 92 miles. The nature of these commodities and their use are not clear. Respondent's witness was of the view that they are chemical disinfectants. No commodity rates are now in effect on these commodities over the routes of the respondent and protestants herein, nor are they specifically rated in the motor or rail classifications. In the National Motor Freight Classification sulphur is rated fourth class in less than truckloads and sixth class, minimum 40,000 pounds; disinfectants, other than medicinal, not otherwise indexed, third class or 70 percent of first class, less than truckloads, and fifth class or 35 percent of first class, minimum 30,000 pounds; and an insecticide, called lime and sulphur solution, class F or 55 percent of first class, less than truckloads, and column 30, minimum 30,000 pounds. The present ratings in the exceptions to the classification over the routes of respondent and the conference lines are, on chemicals and disinfectants other than medicinal, third class, less than truckloads, and column 40 and fifth class, respectively, minimum 20,000 pounds; and on lime and sulphur solution are sixth class or 27.5 percent of first class, minimum 30,000 pounds. The third-class, class F, fourth-class, column 40, fifth-class, and sixthclass rates between Philadelphia and New York are 43, 34, 31, 25, 22, and 17 cents, respectively. 407283m-41-vol. 28- -12 In justification of the proposed any-quantity rate of 30 cents, respondent's witness stated that it was filed for the purpose of meeting the competition of a contract carrier, W. Hunter Atkinson. A check of our tariff files indicates that W. Hunter Atkinson has no minimum rates on these commodities on file with this Commission. It was also contended that the proposed rate compares favorably with those resulting from exceptions ratings applicable over the conference lines on soda and related articles. The ratings on soda range from column 75, in less than truckloads, to fifth and sixth class, minimum 30,000 pounds. The proposed rate of 30 cents is 48.5 percent of first class. In Trunk Line Territory Motor Carrier Rates, supra, division 5 did not approve any less-than-truckload or any-quantity commodity rates except those maintained for the purpose of meeting actual competition where such rates appeared to be reasonably compensatory. Upon the record before us, the proposed any-quantity commodity rate appears to be unreasonably low. Findings. We find that the proposed rates would be unreasonably low and hence unlawful. An order will be entered requiring the cancelation of the suspended schedules and discontinuing this proceeding. COMMISSIONER ALLDREDGE Concurs in the results. 28 M. C. C. INVESTIGATION AND SUSPENSION DOCKET No. M-1099 COMMODITIES FROM KANSAS CITY TO MIDWESTERN STATES Submitted August 14, 1940. Decided March 6, 1941 Commodity less-than-truckload rates on nut meats, peanuts, chestnuts, and display refrigerators, counters, and show cases, from Kansas City, Mo., to points in Illinois, Iowa, Nebraska, Minnesota, and South Dakota, found unlawful. Suspended schedules ordered canceled, and proceeding discontinued. E. F. Powell and Donald R. Wigton for respondents. R. L. Hafer and B. C. Brile for protestants. REPORT OF THE COMMISSION DIVISION 3, COMMISSIONERS MAHAFFIE, ALLDREDGE, AND JOHNSON BY DIVISION 3: By schedules filed to become effective June 15, 1940, motor common carriers, parties to a tariff published by Western Trunk Line Motor Common Carriers Bureau, agent, proposed to establish new commodity less-than-truckload rates on nut meats, peanuts, and chestnuts from Kansas City, Mo., to Minneapolis, Minn., Sioux Falls, S. Dak., and certain points in Iowa and Nebraska,1 and store display refrigerators without cooling or freezing apparatus and with glazed fronts or tops, and counters or show cases, in boxes or crates not exceeding 8 feet in length, from Kansas City to Minneapolis and St. Paul, Minn., Sioux Falls, and certain points in Illinois, Iowa, and Nebraska.2 Upon protest of western trunk-line rail carriers and Western Trunk Line Motor Common Carriers Bureau, hereinafter called the Motor Bureau, the operation of the schedules was suspended until December 12, 1940, and further voluntarily postponed by respondents until March 12, 1941. Rates will be stated in amounts per 100 pounds. The Watson Brothers Transportation Company, Inc., directed the Motor Bureau to publish the proposed schedules for its account. The schedules contain no restrictions and would apply over the lines 1 Ames, Cedar Rapids, Council Bluffs. Davenport. Des Moines, Marshalltown, Sioux City, and Waterloo, Iowa, and Beatrice, Fairbury, Fremont, Grand Island, Hastings, Lincoln, McCook, Nebraska City, Norfolk, and Omaha, Nebr. 'Moline and Rock Island, Ill.; Cedar Rapids, Council Bluffs, Davenport, Des Moines, and Sioux City, Iowa; and Columbus, Grand Island, Hastings, Lincoln, and Omaha, Nebr. of all motor common carriers parties to the tariff and members of the Motor Bureau. Watson Brothers Transportation Company, Inc., was the only respondent that appeared in support of the proposed rates. As stated, the Motor Bureau, although representing its other members, also respondents herein, appeared in opposition to the schedules filed by it as agent. Nut meats. Prior to 1939 shelled dry nut meats not otherwise indexed by name, including salted or sweetened nut meats, hereinafter called nut meats, and dried chestnuts and salted or unsalted peanuts, were included in the grocery list and transported in lessthan-truckload quantities by certain motor common carriers from Kansas City to Minneapolis, Sioux Falls, and the Iowa and Nebraska destinations, and were accorded a rating of fourth class, 55 percent of first class. During 1939 the motor common carriers in this territory accorded to less-than-truckload shipments of these commodities the following classification ratings: On nut meats, second class, 85 percent of first class; on chestnuts, third class, 70 percent of first class; and on peanuts, column 57, 57 percent of first class. Those ratings apply also on these commodities when shipped by rail from Kansas City to these destinations. The suspended schedules contain specific commodity rates on these commodities applicable to so-called less-than-truckload quantities and to shipments having a 5,000-pound minimum. The proposed less-than-truckload rates equal approximately the present respective fourth-class rates, 55 percent of first class, from Kansas City to the respective destinations, and the proposed rates, minimum 5,000 pounds, equal, approximately, the present respective column 50 rates from Kansas City to those points. The first-mentioned proposed rates vary from 47 cents to Nebraska City, Nebr., 162 miles, to $1.07 to McCook, Nebr., 408 miles, and the proposed rates, minimum 5,000 pounds, range from 43 cents to 98 cents to these destinations, respectively. Nut meats, when packed for shipment, have a density of from 20 to 27 pounds per cubic foot, and a truckload consists of 18,000 pounds or more, depending upon the size of the equipment. A shipment of only 5,000 pounds of nut meats constitutes a less-than-truckload shipment. Formerly nut meats were shipped in truckloads from San Antonio, Tyler, and other Texas points to Kansas City, were there warehoused, and were subsequently reshipped in less-than-truckload quantities to the destinations here involved. During 1939 a Kansas City warehouse company handled in this manner 149,000 pounds of nut meats for a Texas shipper. Since the removal of nut meats from the grocery list, with the corresponding increase in motor and rail |