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the rail service is generally satisfactory, one of the rail lines serving Piqua requires from 4 to 5 days to transport shipments from Piqua to New York, and in order to use the faster service of the other rail carrier the shipper is required to truck shipments from its warehouse to a rail siding outside the city. The shipper, therefore, gives applicant whatever shipments he is able to handle, and the rest of the shipments are sent by rail. The shipper has been unable to obtain the required service from other motor carriers. No shipments of frozen eggs have been made by the shipper for 2 years. Fresh eggs are shipped unless special contracts are made with customers to furnish them with frozen eggs. This shipper has found applicant's service entirely satisfactory and dependable and desires to continue using it.

Three wholesale and retail fish dealers at Cincinnati have used applicant's service since about September 1935 in the transportation of fresh, frozen, and dressed fish and shellfish principally from Boston and Gloucester to Cincinnati. A need for the continuation of such service is manifested. The shippers have used the Railway Express Agency, Incorporated, hereinafter referred to as Railway Express, in transporting most of the iced fresh fish and have occasionally used other motor carriers for transportation of frozen and dressed fish from and to the named points. The shippers do not generally require expedited service, but it is essential that even temperatures be maintained with respect to frozen fish. Applicant's service has been very satisfactory in this respect. One of the shippers also requires applicant's services in the transportation of frozen fish and shellfish from New York City to Cincinnati. Applicant has hauled occasional shipments from Provincetown and New Bedford, Mass., to Cincinnati and from Boston to Louisville. However, the evidence fails to establish any need for his services from and to those points.

A sea-food dealer at Springfield, Ohio, expressed a need for applicant's service in the transportation of frozen fish and shellfish from Boston, Gloucester, and New York to Springfield. The shipper has used applicant's services from and to such points for about 4 or 5 years. Applicant has also transported occasional shipments from Provincetown and New Bedford, but the shipper stated that most of his purchases are made at Boston and Gloucester. Shipments of iced fresh fish are handled by express. The shipper has found applicant's services more satisfactory and dependable than those of other motor carriers.

A fish dealer at Xenia, Ohio, has used applicant's service for about 2 years in transporting fish and shellfish from Boston to Xenia and

has found it to be very satisfactory. This dealer supplies a large territory around Xenia, and regular deliveries are made weekly. It is necessary that the shipments arrive at Xenia before a certain time each week in order that the shipper may make deliveries to its customers. The shipper has used the services of other carriers occasionally.

While applicant seeks authority to transport fresh and processed fish and sea foods to Chicago and to certain points in Indiana and Ohio other than those already considered, no shipper witness testified with respect to this request. The record fails to establish any need for applicant's services at such points.

Representatives of the protestant rail and motor carriers testified as to the services rendered by their respective companies. Two rail carriers and the Railway Express Agency operate between New York and the named points in Ohio, and also render a through service from the named points in Massachusetts by means of connecting lines. The rail carriers and the Railway Express Agency furnish refrigerator service, and the latter gives an expedited service between Boston, New York, and the named points in Ohio and re-ices shipments en route whenever necessary.

Representatives of 3 motor carriers testified as to their services between the named points. They operate on approximately 50-hour schedules between Boston and Cincinnati, and make second-morning deliveries on shipments moving between New York and the specified points in Ohio. They operate collectively more than 1,500 pieces of equipment, many of which are of the refrigerator type. Both truckload and less-than-truckload shipments are handled on a scheduled service over regular routes.

As stated, applicant has been serving certain of the shippers involved continuously since prior to October 15, 1935. The continuous use of his services over a long period of time is of itself some indication that a need exists for his services. The protestant motor carriers operate on regular schedules, and though they have adequate equipment, it is evident that their services do not entirely meet the needs of the shippers. There is no showing that the granting of authority to the extent indicated in our finding will materially affect the interests of existing carriers.

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, of the commodities and from and to the points and over the routes described in the appendix hereto; 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; and that an appropriate certificate should be granted.

Upon compliance by applicant with the requirements of sections 215 and 217 of the act and with our rules and regulations thereunder, an appropriate certificate will be issued. An order will be entered denying the application except to the extent granted herein.

APPENDIX

Operations authorized

Dressed poultry and eggs, from Piqua, Ohio, to New York, N. Y., as follows: From Piqua over U. S. Highway 36 to Urbana, Ohio, thence over Ohio Highway 29 to its junction with U. S. Highway 40, thence over U. S. Highway 40 to Jacksontown, Ohio, thence over Ohio Highway 13 to Newark, Ohio, thence over Ohio Highway 16 to Coshocton, Ohio, thence over U. S. Highway 36 to Cadiz, Ohio, and thence over U. S. Highway 22 to New York. Intermediate point: Jersey City, N. J., for delivery only.

Fresh and processed fish and shellfish, from Boston and Gloucester, Mass., and New York to Springfield and Cincinnati, Ohio, and from Boston to Xenia, as follows: From Gloucester over Massachusetts Highway 127 to Salem, Mass., thence over Massachusetts Highway 107 to Boston, thence over U. S. Highway 1 to New York via New Haven, Conn. (also from Boston over U. S. Highway 20 to Springfield, Mass., thence over U. S. Highway 5 to New Haven), thence from New York to Piqua over the highways above described, via West Jefferson, Ohio, and thence to Cincinnati over U. S. Highway 25 (also from West Jefferson to London, Ohio, over Ohio Highway 142, thence over U. S. Highway 42 to Cincinnati). Alternate routes: from Cadiz to Cincinnati over U. S. Highway 22; from Urbana to Xenia over U. S. Highway 68; from Zanesville, Ohio, to Vandalia, Ohio, over U. S. Highway 40; and from Xenia to Dayton, Ohio, over U. S. Highway 35.

28 M. C. C.

EX PARTE No. MC-22

NEW ENGLAND MOTOR CARRIER RATES

Submitted March 18, 1940. Decided February 7, 1941

Petition seeking modification of findings in prior reports to prescribe increased bases of minimum reasonable less-than-truckload class rates of common carriers by motor vehicle (1) between points in New England and (2) between points in New England, on the one hand, and points in eastern New York and northeastern New Jersey, on the other, denied.

Appearances shown in previous reports.

TWENTY-THIRD SUPPLEMENTAL REPORT OF THE COMMISSION

DIVISION 5, COMMISSIONERS EASTMAN, LEE, AND ROGERS

BY DIVISION 5:

Exceptions to the report proposed by the examiner were filed by the New England Motor Rate Bureau, Inc., hereafter called the New England Bureau, the Eastern Motor Freight Conference, Incorporated, hereafter called the Eastern Conference, Russell R. Gore, the Stamford Chamber of Commerce, the Manufacturers Association of Connecticut, Inc., the Boston Chamber of Commerce, and certain other shippers' associations. Our conclusions differ from those proposed by the examiner.

In the original report herein, as subsequently modified,' we prescribed bases of minimum reasonable class and commodity rates, with certain exceptions, for the transportation of property by common carriers by motor vehicle (1) between points in New England, and (2) between points in New England, on the one hand, and points in eastern New York and northeastern New Jersey, on the other. By a petition filed on behalf of the members of the New England Bureau and the Eastern Conference, we are asked to prescribe increased minimum third-class, fourth-class, and fifth-class less-thantruckload rates between points in the treated territory, except between points in Rhode Island east of U. S. Highway 1 and Providence, North Providence, Valley Falls, Central Falls, and Paw

1 Prior reports: 8 M. C. C. 287 and 549; 9 M. C. C. 737; 10 M. C. C. 157, 522, and 581; 11 M. C. C. 325; 12 M. C. C. 417; 16 M. C. C. 499; 18 M. C. C. 79; 19 M. C. C. 471 and 777; 21 M. C. C. 373; 22 M. C. C. 705; 23 M. C. C. 361 and 389; 24 M. C. C. 213, 423, and 723; 26 M. C. C. 195, 623, 689, and 783; and 27 M. C. C. 1.

tucket, R. I., on the one hand, and, on the other hand, points in Massachusetts east of U. S. Highway 1, and except between certain other points in the treated territory. These increases petitioners seek to have accomplished by changes in the rate tables contained in the class-rate tariffs referred to in the findings in the original report. Petitioners state that these changes would effect increases of 10 percent for distances up to 150 miles and 5 percent for distances over 150 miles, observing as maxima the following: The rail thirdclass rates on fifth-class shipments weighing under 6,000 pounds, 55 percent of the rail first-class rates on fifth-class shipments weighing from 6,000 to 19,999 pounds, the rail second-class rates on fourth-class shipments weighing under 20,000 pounds, and the rail first-class rates on third-class shipments weighing under 12,000 pounds. Unless otherwise indicated, the rates referred to herein are stated in amounts per 100 pounds.

A hearing was held on the petition at which little evidence was presented. The appendix hereto shows the present and proposed fifth-class less-than-truckload rates between representative points, the differences between the proposed and present rates, the rail third-class rates, and rail rates 55 percent of the first-class rates.

At the original hearings herein, some of the parties sought the prescription of rates higher than those proposed by the New England Motor Rate Conference. In our original report we commented on these proposals at page 327 as follows:

5. It is urged by some that proposed class and commodity rates should both be increased to correspond to the recent increases in railroad rates, generally 10 percent, but in the case of some of the rates a lesser percentage. As has been seen, the proposed class rates were constructed on a cost-of-service basis and without relation to the railroad class rates. It is clear from the record that they could be increased 10 percent without exceeding limits of maximum reasonableness. On the other hand there is no evidence of increases in costs of service since they were constructed which is sufficient to warrant an addition of 10 percent from the standpoint of minimum reasonableness.

Since the original hearings in 1938, the costs of operation of motor common carriers in the treated territory have increased, the increase being due in a large measure to higher wages paid to labor. For example, in September 1938 the wages for drivers, including compensation-insurance, social-security, and unemployment-insurance payments in the metropolitan area of New York increased over 13 percent. Drivers' wages in Massachusetts, Rhode Island, and Connecticut, effective April 1, 1939, were increased 3.9 percent, and wage agreements running to January 1, 1943, provide for additional wage increases up to 12.4 percent.

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