rates from Kansas City, the business of that company has declined materially. Its traffic manager stated that if the suspended schedules were permitted to become effective, his company would receive for storage from Texas from 200,000 to 400,000 pounds of nut meats annually. The warehouse company has not stored chestnuts or peanuts but has handled only nut meats. A manufacturer of nut meats and peanut butter, and a packer of raw nut meats, consisting principally of pecans, English walnuts, black walnuts, and almonds, having plants within the Kansas City area, testified also in support of the suspended schedules. They did not show the quantity of nut meats, chestnuts, and peanuts shipped annually from Kansas City to these destinations, or that would be shipped if the suspended schedules became effective. They have competitors in the larger cities throughout this territory.

Respondent, Watson Brothers Transportation Company, Inc., formerly transported nut meats in volume from Kansas City to Minneapolis, Sioux Falls, and the Iowa and Nebraska points, but during the 6 months preceding the hearing the volume of this traffic declined materially. The suspended schedules were proposed in an effort to encourage the movement of nut meats and to regain lost traffic. The proposed schedules are compared with the present motor common carrier rates of column 57, 57 percent of first class, on confectionery and other related articles, including edible shelled nuts, not otherwise indexed by name, in sirup or liquor, packed in glass or metal cans, in barrels or boxes and in bulk in barrels. Edible nuts in sirup or liquor have a somewhat greater weight than nut meats, but they are not such desirable traffic because the glass containers are subject to breakage. Respondents have in effect from Kansas City, under a general exception to the classification, a rating of fourth class, 55 percent of first class, "on food preparations, less than truckload, cooked, flaked, or shredded, not compressed, in flakes or in forms not flat." These commodities, when packed for shipment, have a density of approximately 2.1 pounds a cubic foot. Respondents also apply from Kansas City, under a general exception to the classification, a rating of 42 percent of first class on flavoring sirup.

The Motor Bureau compared the proposed rates with the present rates by computing the truck-mile earnings that would be produced by the proposed so-called less-than-truckload rates, based upon a loading of 4,000 pounds, and by the proposed rates, minimum 5,000 pounds, based upon a loading of the minimum. Such computations are of little, if any, assistance in determining the proper level of less-than-truckload rates; they only show the earnings that would

be derived from a partial truckload. Moreover, the question here is not the reasonableness of the fourth-class and column 50 rates per se, but whether nut meats, chestnuts, and peanuts should be removed from the motor classification and accorded commodity rates. The witness asserted that if the proposed rates were permitted to become effective, the motor carriers would have to make similar rate reductions between other points in western trunk-line territory. Nut meats are shipped from Chicago, Ill., Denver, Colo., Des Moines, St. Paul, and other points in the territory. The protestant rail carriers presented similar evidence.

Display refrigerators.-The motor and rail classifications in western trunk-line territory accord store display refrigerators with glazed fronts or tops and without cooling or freezing apparatus, and counters or show cases, a classification rating of first class. Thus the present rates on these commodities in less-than-truckload and lessthan-carload quantities from Kansas City to Minneapolis, St. Paul, Sioux Falls, and the destinations in Illinois, Iowa, and Nebraska named in footnote 2 are the applicable first-class rates. Specific commodity rates on these articles are proposed which equal approximately the respective second-class rates, 85 percent of first class, from Kansas City to the respective destinations. The proposed rates from Kansas City range from 81 cents to Omaha to $1.30 to Minneapolis, and are from 14 cents to 23 cents lower than the corresponding first-class rates.

A display refrigerator or counter, when crated for shipment, weighs 1,150 pounds and is 41 inches wide, 56 inches high, and 103 inches long. The evidence is conflicting as to whether two, three, or six crates can be loaded on the floor of a vehicle. The value of a refrigerator is not shown, but it is stated that there has been a reduction of from 35 to 40 percent in the value since refrigerators were accorded the classification rating of first class. Cooling-boxes are somewhat similar to display counters, with the exception that they do not have a portion of a side made of glass. Cooling-boxes have a classification rating of second class. The display counters are made and packed so that there is little danger of breaking the glass, and the claims resulting from damage in transit have been negligible. A large manufacturer of these articles has a plant at Kansas City. Its representative stated that its competitors at St. Louis, Chicago, and points in the East and Southeast were accorded relatively lower rates to their respective markets than his company had from Kansas City to the destinations considered herein. He was of the opinion that the alleged discrimination would be removed if the proposed rates became effective.

These commodities are rated second class from St. Louis to points in the southeast and within southern territory. A commodity rate is in effect from Kansas City to Chicago which is equivalent to the second-class rate. A manufacturer of display refrigerators and counters has a plant at Des Moines. It ships these articles from Des Moines to points on and east of the Mississippi River at commodity rates which equal the respective third-class rates. The Universal Carloading & Distributing Company and certain motor carriers publish first-class rates from Chicago and St. Louis to the destinations here involved which are from 2 to 23 cents lower than the corresponding rail class rates prescribed by the Commission. The difference, in most instances, is 3 cents. These rates are compared with the proposed rates, and respondent Watson Brothers Transportation Company, Inc., contends that the ton-mile earnings that would be produced by the respective rates demonstrate that the proposed rates are reasonable.

The Motor Bureau and the rail carriers take the position that the classification rating of first class is proper, and that the record contains no reason that would warrant the establishment of commodity rates from Kansas City to the designated destination points on these articles.

Conclusions.-Nut meats, chestnuts, peanuts, and display refrigerators and counters move in less-than-truckload quantities from Kansas City to the respective destinations named above. Commodity rates on less-than-truckload traffic should be established only on a clear showing of compelling reasons. The record does not contain such reasons, and therefore does not warrant the approval of the proposed specific commodity rates. Moreover, division 5, in Ex Parte No. MC-23, Midwestern Motor Carrier Rates, 27 M. C. C. 297, prescribed, on less-than-truckload quantities, minimum class rates from Kansas City to a majority of the destinations herein, as follows: On display refrigerators and counters, first class; on nut meats, second class; on chestnuts, third class; and on peanuts, column 57. We are of the opinion that these ratings should apply also on these commodities, shipped in less-than-truckload quantities, from Kansas City to the other destinations herein involved not included in Ex Parte No. MC-23, Midwestern Motor Carrier Rates, supra.

We find that the suspended schedules would be unreasonably low and therefore unlawful. An order will be entered requiring their cancelation and discontinuing this proceeding.

To points here involved except Grand Island, Hastings, and McCook, Nebr., Sioux Falls, S. Dak., and Minneapolis and St. Paul, Minn.

INVESTIGATION AND SUSPENSION DOCKET No. M-1092 BERRIES FROM BURLINGTON COUNTY, N. J., TO PHILADELPHIA AND NEW YORK CITY

Submitted July 22, 1940. Decided March 8, 1941

Proposed initial commodity rates on berries other than wild berries, any quantity, and on cranberries, in truckloads and less than truckloads, from points in Burlington County, N. J., to New York, N. Y., and Philadelphia, Pa., found to be unreasonably low and therefore unlawful. Suspended schedules ordered canceled without prejudice to the establishment of rates on the level indicated herein. Proceeding discontinued.

William A. F. Smith for respondent.

William H. Schramm and William F. Zearfaus for protestants.

REPORT OF THE COMMISSION

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

By schedules filed to become effective June 12, 1940, the respondent, F. Ward Gsell, an individual, doing business as Dennis Express, of Mount Holly, N. J., proposes to establish initial any-quantity commodity rates on berries other than wild berries and cranberries, hereinafter referred to as blueberries, and initial commodity rates on cranberries, in truckloads and less than truckloads, from points in Burlington County, N. J., to New York, N. Y., and Philadelphia, Pa. Upon protest of rail carriers in trunk-line territory and R. J. Lippincott, an individual doing business as Lippincott's Express, a motor common carrier, that the proposed rates would be unreasonably low, operation of the schedules was suspended until December 9, 1940, and their effective date has been voluntarily deferred until March 9, 1941.

The respondent expects to operate solely for the Blueberry Cooperative Association, of New Lisbon, N. J., hereinafter called the association, transporting blueberries and cranberries. At the hearing, he stated that he desired to establish the rates on blueberries only from New Lisbon to New York and Philadelphia, and would be satisfied to have the Commission find the rates on blueberries from other points in Burlington County not justified.

The season for the transportation of blueberries extends approximately from July 1 to August 31, and for the transportation of

cranberries for short periods prior to Thanksgiving and Christmas, The blueberries are transported principally in 8-quart and 16-pint crates, and must be carried expeditiously because of their perishable nature. The record does not disclose any essential difference between the movement of the blueberries and the cranberries, except that the latter need not be moved as expeditiously. The respondent has no substantial volume of traffic in the reverse direction which can be transported in the equipment used for the movements under consideration.

The blueberries are taken by the growers to designated points in Burlington County where they are picked up by carriers and transported to the fumigator of the association at New Lisbon. In most instances these truckloads are there wholly or partially unloaded in order to permit fumigation, sorting, or transfer of shipments to other vehicles. Some shipments, however, move from the pick-up points to New York City and Philadelphia without being unloaded, and, with respect to all movements, it appears that each grower's shipments at all stages of the movement may be identified by markings on the containers, and there is an intention by the shipper from the inception of the movement to ship to markets beyond the State of New Jersey. The respondent contends that the transportation to the fumigator is entirely separate from the movement beyond and is therefore intrastate in character and not within. the jurisdiction of the Commission. It is his intention to make an additional charge for this pick-up service, and it is because of this that he withdrew the proposed schedule of rates from points other than New Lisbon. Upon this record it is clear that all the shipments would be interstate in character, and rates covering the entire movement must therefore be established.

The distances from New Lisbon to New York and Philadelphia are 93 and 28 miles, respectively. The proposed rates on blueberries are stated in amounts per container as follows: To New York, on 32-quart crates, 15 cents; on 16-quart crates, 10 cents; and on 8-quart and 16-pint crates and 12-pint trays, 5 cents; and to Philadelphia, the rates for these containers are 10, 6, 4, 4, and 3 cents, respectively. The containers weigh approximately 60, 35, 20, 20, and 15 pounds, respectively, and converted to approximate weights per 100 pounds, the proposed rates to New York are 25, 29, 25, 25, and 33 cents, respectively; and to Philadelphia are 17 cents on the 32-quart and 16-quart sizes, and 20 cents on the others. On cranberries the proposed rates are on so-called quarter-barrel boxes containing a maximum weight of 30 pounds each, with rates based on the number of containers shipped. The following table shows these proposed rates and the equivalent rates per 100 pounds: