and the rates on products other than butter, in less than truckloads, are 15 cents higher than the base rates to all but a few points, to which rates 18 cents higher than the base rates apply. From a number of origins the minimum on butter to the Twin Cities has been reduced to 1,500 pounds, in lieu of the prevailing minimum of 2,500 pounds. The basic rates now apply on buttermilk, milk, and casein, as well as on butter.

The bureau tariff was protested but allowed to become effective since it was in large part a republication of the going rates. Thereupon the carriers serving Duluth, at the instance of shipping interests at that point, proposed the rates which are under consideration in I. and S. Docket No. M-452. When these rates were suspended, the Duluth interests petitioned for a general investigation of the rates of the bureau members and the other carriers serving the origin territory under consideration. As a result of these circumstances, the title proceeding was instituted.

Investigation and Suspension Docket No. M-452.-The rates in issue in I. and S. Docket No. M-452 apply from some 107 points in northern Minnesota and North Dakota to Duluth. These rates are on the same basis as the rates of the bureau carriers, except that they are 4 cents less to Duluth than the summer rates of the bureau carriers and apply during both the summer and the winter. In other words, they are the winter rates of the bureau carriers to Duluth.

The consumption at Duluth of dairy products originating in the territory under consideration is said to be negligible in comparison with the traffic in these products moving through that point. This movement is very important to companies located there which do considerable buying and processing of these products in their transit to the East. Duluth complains that the bureau's rates tend to overcome Duluth's natural advantage accruing from its location at the head of the lakes. The rates in issue in I. and S. Docket No. M-452 are intended to give Duluth the same advantage over the Twin Cities in motor rates as the Commission found Duluth was entitled to with respect to traffic moving on lake-rail rates. These motor rates are also said to be necessary in order to enable the motor carriers serving Duluth to obtain some traffic, and it is claimed that the rates will add to the prices received by the producers of dairy products. The through rail rates on these products by way of both Duluth and the Twin Cities generally are subject to a minimum of 20,000 pounds. The principal motor rates of the bureau carriers and those in issue in I. and S. Docket No. M-452 on these products, as stated, are those applicable on butter, minimum 2,500 pounds. In order to secure the equivalent of the through rail rate on a 2,500-pound shipment from origin to New York City, someone at the point of concen

tration, such as Duluth, must consolidate this and other small shipments into carloads. At Duluth this traffic is handled principally by the large processors of dairy products at that point or by the lake carriers. Generally the processors of dairy products located at Duluth are buyers and own the dairy products which are reshipped by lake or rail from that point. One concern which engages in consolidating these products at Duluth, the Northwest Dairy Forwarding Company, is also a motor carrier.

The Duluth interests and the motor carriers serving that point, as noted, opposed the increase in the summer rates by the bureau carriers. They also endeavored to work out a compromise adjustment whereby the rates would be the same from points equidistant from the Twin Cities and Duluth, and rates from nonequidistant points would be related to distance. This proposal was declined by the bureau members.

There is very little movement by truck of dairy products from the Twin Cities to Duluth during the summer because the difference in the rail rates from the two points to the East is only 4 cents. The bureau argues that in order for its members to participate in the dairy-products traffic it was necessary to increase the motor rates to Duluth during the summer. As stated, the majority of the bureau members do not serve that point, and it is contended that, under the rates involved in I. and S. Docket No. M-452, these carriers will be forced out of the transportation of dairy products to the Twin Cities during the summer unless they reduce their present rates thereto by 4 cents. There is no contention that the increased summer rates to Duluth are justified because of operating conditions, and they are not based on differences in distance, which generally favor Duluth.

Investigation and Suspension Docket No. M-660.-The schedules under suspension in I. and S. Docket No. M-660 proposed reduced so-called proportional commodity rates on these products in less than truckloads and in volume lots, minima 5,000 and 15,000 pounds, from numerous points in Minnesota to Chicago and Milwaukee applicable from April 30 to November 26 of each year, for the sole account of William Gordon Glendenning, doing business as Glendenning Transfer Service. These rates were proposed in lieu of higher rates which now apply throughout the year for the account of this respondent and numerous other motor common carriers. At the hearing, however, it was stated on behalf of the respondents that all of the suspended proposals would be withdrawn or canceled except a proposed reduction in minimum weight on eggs to Chicago from 15,000 to 2,500 pounds. This change involves no reduction in the amount of the rates. Respondents offered no justification for any of

the other proposals in the suspended schedules, and these other proposals will not be further considered.

Respondents contend that the proposed reduction in the minimum weight on eggs is necessary to meet the competition of motor carriers serving Duluth and the Twin Cities and because of provisions in the tariffs of the rail carriers which permit a shipment of the same quantity under certain circumstances under the carload rate. Although the through rail carload rates on dairy products from this territory to destinations in the East are subject to a minimum of 20,000 pounds, stops in transit to complete loading are permitted without charge, unless the car is set out of the train. In that case, $2.20 is collected for each stop. Generally speaking, an unlimited number of stops are permitted without charge (unless the car is set out of the train) except as to cars originating at certain specified points in North Dakota and Minnesota on the lines of the Great Northern Railway, the Northern Pacific Railway, and the Minnesota & International Railway. Cars originating at these specified origins are limited to four stops without charge, except for setting a car out of a train, provided that not less than 2,500 pounds are loaded at each stop. Where these rail loading-in-transit provisions are utilized by the shippers, charges are collected on the basis of rates applicable from each loading point on the date of the original shipment on the actual weight loaded at such points, plus any stop-off charge and the concentration charge of 3.25 cents. Any deficit in the minimum weight is charged for at the highest carload rate applicable to any of the contents of the car.

All the rates in connection with which the proposed reduced minimum would apply are constructed on the basis previously described, that is, they reflect the difference between the through carload rail rates from origin to ultimate destination in the East and those from either Chicago or Milwaukee. Respondents contend that in effect they are required to meet rail rates subject to a minimum of 2,500 pounds, in view of the rail loading-in-transit arrangements. They point out that the shipper at New York Mills, Minn., for example, under the rail tariff could ship 2,500 pounds to New York, N. Y., at the then applicable carload rate of $1.37, or by truck to Chicago at a rate of 57 cents, plus the 80-cent carload rail rate from Chicago to New York, which aggregates $1.37. Subsequent to the hearing, effective July 1, 1940, the rail carload rate from New York Mills to New York City was reduced to $1.30. Since no joint motor-rail rates are maintained, in order to obtain the rail rate beyond Chicago on shinments moved to that point by motor, it is necessary that the bill of lading designate some agency at Chicago to receive the shipment and forward it. Generally this agency is a forwarding company, and, in

the case of respondent Glendenning, it appears to be a forwarding company owned by that carrier and operating as Glendenning Forwarding Company. Respondents point out that large shippers of dairy products or forwarding companies can consolidate less-thancarload shipments and, by taking advantage of concentration and storage-in-transit arrangements of the rail carriers, arrive at a total cost from origin to destination in the East lower than the through carload rate. This is accompanied by concentrating the less-thancarload shipments at points intermediate to Chicago, shipping the concentrated carload to Chicago and there utilizing the storage-intransit provisions and forwarding the carload shipments on transit balances to final destination. The record does not disclose what charges are made to the small shipper of dairy products when these provisions are utilized.

Investigation and Suspension Docket No. M-987.-The rates in issue in I. and S. Docket No. M-987 were published at the request of the Wilson Storage & Transfer Company, of Sioux Falls, S. Dak., a motor common carrier, hereinafter called the Wilson Company, for the benefit of shippers of dairy products at Madison, who are said to be in competition with producers at Sioux Falls and Sioux City, Iowa, from which points lower rates apply to Chicago. The Wilson Company does not serve Chicago direct, and interchanges traffic with connecting carriers at Sioux City and the Twin Cities. Traffic under the proposed rates would move over routes by way of Sioux City, over which the distances to Chicago are somewhat less than over routes by way of the Twin Cities. The distance from Madison to Sioux City is 133 miles, and the distance from Sioux City to Chicago is 511 miles.

Respondents compare the proposed rates with rates of 37 and 45 cents, minima 16,000 pounds and 10,000 pounds, respectively, from Sioux City to Chicago. They also direct attention to a rate of 48 cents, minimum 18,000 pounds, from Sioux Falls to Chicago, distance 593 miles. The rail rates from Madison, Sioux City, and Sioux Falls to Chicago, minimum 20,000 pounds, are 59, 52, and 54 cents, respectively. The respondents now maintain a rate of 52 cents, minimum 18,000 pounds, and the proposed rate of 53 cents, minimum 16,000 pounds, represents a slight increase over the 52-cent rate. The proposed rates of 53 and 56 cents, based on the respective minima of 16,000 and 10,000 pounds, would yield 13.2 and 9 cents per truck-mile for the highway distance of 644 miles from Madison to Chicago.

In further justification of the rates proposed, respondents show that the rate of 37 cents from Sioux City to Chicago is 25.5 percent of the motor first-class rate of $1.45 from and to these points. They

point out that the proposed rate of 53 cents, which is approximately 30.5 percent of the first-class rate of $1.74 from Madison to Chicago, would still be relatively high compared with the rate from Sioux City. The present rate of 52 cents is 30 percent of first class; and the rate of 48 cents, minimum 18,000 pounds, from Sioux Falls to Chicago, is 30 percent of the first-class rate of $1.61 from and to these points. The evidence relates principally to the proposed rate of 53 cents. There is testimony to the effect that lower minima would benefit some of the small shippers, but this related to the proposed rate of 56 cents. No shippers appeared at the hearing.

The opposition of the bureau to the proposed rates is grounded principally on the fact that its members are parties to higher rates from Madison and other points to Chicago over routes by way of the Twin Cities. The present local rate of the bureau members from Madison to Chicago is 59 cents, minimum 16,000 pounds, which applies on butter, cheese, eggs, and dressed poultry. The same rate applies from Wentworth, Colman, and Flandreau, S. Dak., which are east of Madison. Protestant also refers to rates, subject to the same minimum, of 57 cents from Humboldt, S. Dak., 25 miles south of Madison; 63 cents from Arlington, S. Dak., 24 miles north of Madison, and from Lake Preston, S. Dak., which is about 13 miles west of Arlington. These rates of the bureau carriers are the same as the rail rates from and to the same points, except that from Flandreau the rate to Chicago is 57 cents, and the rail rates are subject to a minimum of 20,000 pounds. It is contended on behalf of the respondents that these local rates do not move the traffic. Reference is made to rates from Madison, Sioux Falls, and Watertown, S. Dak., to the Twin Cities on dairy products other than butter, minimum 5,000 pounds, of 27.5, 21, and 31.5 cents, respectively, and on butter, minimum 2,500 pounds, of 18.5, 12, and 22.5 cents, respectively. These are so-called "winter" rates intended to apply on traffic moving beyond the Twin Cities by rail to the East. Rates of this character are considered hereinafter in connection with No. MC-C-98. Since the hearing, the rates of 27.5, 21, and 31.5 cents have been designated as less-than-truckload rates for application on straight or mixed shipments of butter, buttermilk, flaked or powdered milk, and casein, and the rates of 18.5, 12, and 22.5 cents have been made applicable on straight or mixed shipments of butter and the other commodities just named, minimum 2,500 pounds.

As stated, no shippers support the proposal which, despite the slight increase in the one rate, would appear to result principally in further depletion of truck-mile revenues conceded to be now on a very low level. The present rates are related to rates from Sioux Falls,

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