the shipper supporting the proposal now has agreements at rates that are somewhat lower than those proposed.

The truckload rates prescribed on tomato pulp, in 5-gallon or 10gallon cans, are 32 cents from Bowling Green and 29 cents from Fremont. They are about 35 percent of first class. The rates generally applicable on canned goods, prior to our order of October 21, 1939, in the seventh supplemental report herein, were the column 32 rates provided by exceptions to the classifications of both respondents and rail carriers. On catchup, table sauces, and tomato juice, prescribed rates are 29 cents from Bowling Green and 27 cents from Fremont. These rates are slightly higher than 32 percent of first class. From Bowling Green, the truck-mile earnings on the lastmentioned articles are 26.4 cents to Ambridge and 24.9 cents to Pittsburgh, and from Fremont to the same points they are 28.4 cents and 26.6 cents, respectively.

The rates proposed are 28.9 percent of first class. From Bowling Green to Ambridge and Pittsburgh these rates would yield truckmile earnings of 23.6 and 22.3 cents, respectively, while from Fremont to the same points the truck-mile earnings would be 25.6 and 23.6 cents, respectively. These earnings appear to be reasonably compensatory, and the proposal is approved.

It is proposed to reduce the rate on canned or preserved foodstuffs from Muscatine, Iowa, to Chicago, approximately 200 miles, from 25 cents, minimum 20,000 pounds, previously prescribed, to 22 cents, minimum 20,000 pounds, to meet a rate of the same amount, minimum 36,000 pounds, maintained by the rail carriers. The general basis prescribed as a minimum on the commodities approximates the column 32 rates. Proponent represents that no traffic can be obtained for respondents at a rate in excess of that maintained by the rail carriers. The proposed rate, which would return earnings of 22 cents a truck-mile at the minimum weight, appears to be reasonably compensatory and is approved.

A rate of 39 cents, minimum 5,000 pounds, is proposed on certain automobile parts from Toledo to Detroit. On these articles we prescribed rates ranging from 27 cents to 48 cents, or from 52 percent to 95 percent of the first-class rate. The rate proposed is the same as that prescribed on like articles from Detroit to Toledo. There is a considerable movement of the articles on which the rate is proposed from Toledo to Detroit, and there appears to be no reason why the same rate should not apply in both directions. The proposal is appproved.

A rate of 20 cents, minimum 20,000 pounds, is sought on roughrolled glass and on polished, plate, or laminated glass, other than bent glass, and including duplex shatter-proof and triplicate plate

glass, from Ottawa, Ill., to Janesville, Wis., 116 miles. The prescribed rate is 33 cents, minimum 16,000 pounds. The rail carriers maintain on the traffic a rate of 25.5 cents, minimum 30,000 pounds. The proposed rate is 30.3 percent, the present minimum rate is 50 percent, and the rail carload rate is 40 percent of the motor and rail first-class rate of 66 cents.

The proponent of the proposed rate, Scherer Brothers Transfer & Storage Company, of Ottawa, stated that the rate is desired in order to compete with a contract carrier which maintains a rate of 19.5 cents. At the time of the hearing on instant petition, the contract carrier was not operating from Ottawa to Janesville. The proposed rate would result in a reduction of approximately 40 percent below the prescribed rate. It is not required to meet any competitive situation with which respondents are now faced. The proponent, however, believes that it would attract to its lines traffic now transported by rail.

The rate proposed appears to be below a reasonable minimum basis on the commodities. While the truck-mile earnings reflected by the proposed rate are somewhat above the average of all traffic, the distance is less than half the average haul, and the commodities to be transported are of high value and susceptible to damage in transit. The proposed rate is much lower than the rates generally maintained on common window glass. Approval of the proposed rate would undoubtedly result in requests for rates on a similar basis from and to other points in the territory, and, if such requests should be granted, the ultimate effect would be an unwarranted shrinkage of the carriers' revenues. The proposal will be denied, but authority will be granted to reduce the prescribed rate to the rail basis, except on rough-rolled glass which now moves at a lower fifth-class rate under the classification. Respondents will also be permitted to maintain the 25.5-cent rate on automobile glass, cut to shape, as is done by the rail carriers.

On canned and preserved vegetables and cold-packed fresh and green vegetables from Central Lake, East Jordan, Glen Haven, Northport, and Traverse City, Mich., to Chicago, commodity rates are proposed which are approximately 27 percent of first class, minimum 20,000 pounds, and 35 percent of first class, minimum 10,000 pounds. The distances from the Michigan points to Chicago range from 324 to 366 miles.

An exceptions rating of 30 percent of first class, minimum 20,000 pounds, was prescribed on canned or preserved vegetables; and on cold-packed fresh or green vegetables, otherwise termed frosted or frozen foods, the classification ratings of second class in less than truckloads, and fourth class, minimum 16,000 pounds, were prescribed.

On fresh or green vegetables, minimum 10,000 pounds, we prescribed 90 percent of second class, the reduction from second class to be not more than 5 cents.

The rates proposed would reduce the present truckload rates on cold-packed fresh or green vegetables 22 to 25 cents, and the lessthan-truckload rates, minimum 10,000 pounds, 44 to 49 cents. On canned and preserved vegetables, the commodity rates proposed represent reductions from 4 to 9 cents for a minimum of 20,000 pounds, and from 19 to 22 cents on 10,000 pounds. It has not been shown that they are required to meet the rates of any competitive transportation agency. The record does not warrant approval of these rates, and the petition will be denied.

To meet rail competition, a commodity rate of 41 cents, minimum 20,000 pounds, is proposed from St. Louis to North Chicago, Ill., on drugs, medicines, toilet preparations, and toilet powder in straight or mixed shipments, also on candy, confectionery, cocoa butter, chocolate, chocolate coating, cocoa, chocolate flavoring sirup, and advertising matter in mixed shipments with the foregoing. The proposed rate is approximately 42 percent of first class. We prescribed, in the original report herein, the fourth-class rate of 49 cents, minimum 15,000 pounds, on these commodities from St. Louis to North Chicago and later prescribed the rate now proposed on the same commodities from North Chicago to St. Louis. There is a considerable movement of the commodities, especially drugs and medicines, from St. Louis, which is one of the largest drug-producing points in the country. Shippers from that point have requested establishment of the proposed rate, and it is believed that a considerable tonnage will be transported thereon. Earnings of 25 cents a truck-mile accruing from the proposed rate would be reasonably compensatory. The proposal is approved.

On household drying, ironing, and laundry machines and on washing machines, in straight or mixed truckloads, minimum 10,000 pounds, it is proposed to maintain, as an exception to the classification, ratings of columns 55, 60, 65, and 70, depending upon the length of the haul as measured by the amount of the first-class rates.

Drying machines are normally rated class F or 55 percent of first class; ironing machines, in cabinets, fourth class or 50 percent of first class; and ironing machines, other than in cabinets, without tables or legs, or with legs removed, column 40 in truckloads, minimum 16,000 pounds. Various commodity rates are now maintained, some of which are lower and others higher than would result from the bases proposed. These commodity rates are subject to minima of 5,000, 9,000, 10,000, and 15,000 pounds. Between many points, no commodity rates are provided, and the commodities, in truckloads,

are subject to the class rates. The proposal concemplates the cancelation of the commodity rates previously prescribed. Where, however, 5,000 pounds or more but less than 10.000 pounds of the commodities are offered for shipment, there would still be the usual break-down of the first- or second-class rates as at present, unless the charge on 10,000 pounds under the bases proposed would be less.

The articles are light and bulky. A test conducted by the Bureau at the plant of a large manufacturer indicated that they cannot be loaded to 16,000 pounds in a vehicle having an inside length of 20 feet. It is generally impossible to load over 10,000 pounds in a truck, such as that generally used by motor common carriers, having a loading capacity ranging from 950 to 1000 cubic feet. Under the rates previously prescribed, shippers pay charges at 16,000 pounds although only 10.000 pounds can be loaded in the trucks in which the shipments are loaded. The rail carriers, by exception to their classification, maintain column 55 rates subject to varying minima of 16,000, 22,000, and 32,000 pounds depending upon the dimensions of the cars used. Petitioner proposes that the competitive rates of the rail carriers be met only for distances of 260 miles or less. Beyond this distance respondents' rates would be materially higher than the rail rates. The bases proposed, which are favored by respondents generally, appear to result in reasonably compensatory rates. They are desired by manufacturers for the purpose of removing existing disparities and placing all shippers upon an equality. The proposal will be approved by our order herein.

Rates of 23 cents from St. Louis to Davenport and Muscatine, Iowa, and 21 cents from Muscatine to St. Louis are proposed on various canned and preserved foodstuffs, minimum 20,000 pounds. These rates are desired for the purpose of meeting the rates of competing rail carriers, minimum 36,000 pounds.

We prescribed on these commodities, minimum 20,000 pounds, 28 cents from St. Louis to Davenport and 29 cents between St. Louis and Muscatine. The prescribed rates are 32 percent of first class, which, prior to October 21, 1939, was the general basis prescribed in central territory on canned goods in truckloads. The proposed rates range from 23.3 to 26.7 percent of first class. Proponents assert that they cannot hope to participate in the traffic with rates which are from 5 to 8 cents higher than those maintained by competing rail carriers. The earnings under the rates proposed would range from 19.3 to 22.4 cents a truck-mile for 205 and 238 miles. The proposed rates appear to be reasonably compensatory and are approved.

In the seventh supplemental report herein, we authorized respondents to cancel any prescribed commodity rates which are higher than the prescribed class rates and to apply the lower class rates. The ques

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tion has been presented whether the authority granted would also permit cancelation of rates arrived at through exceptions to the classification and the application in lieu thereof of the classification basis. This question arises most frequently where an exceptions rating the same as the normal classification rating has been prescribed, but lower charges result from use of the classification rating and application of the so-called "break-down" rule permitting stated reductions from the less-than-truckload rates on amounts of 5,000 pounds or over, which is not generally applicable in connection with exceptions ratings. The question also arises when classification ratings are reduced below the prescribed exceptions ratings.

The break-down rule is itself in the nature of an exception to the classification ratings, and, since there would appear to be no sound reason why one exception should be preferred over another, it is not apparent why the lower classification rating or charge should not be applied under these circumstances. We are of the opinion, also, that an exceptions rating higher than the normal classification rating has, generally, no more justification than a commodity rate which is higher than the prescribed class rate. Respondents are accordingly authorized to cancel exceptions ratings which would result in higher charges than result from application of the classification ratings.

Upon further hearing, we are of the opinion and find that our previous findings should be modified to prescribe as reasonable minimum rates, charges, classification exceptions, rules, and regulations those set forth in the order which we shall enter herein.

An order will be entered giving effect to the foregoing findings and denying the proposed modifications except to the extent before indicated.

28 M. C. C.