record" and after hearings denied in orders referring to all four trains, that Commission did not consider or deny a proposal to discontinue four "unpaired trains"; issues to be determined by it were made by the separatel filed petition, not consolidation order or the order denying both petitions Moreover, instant record does not show that the Commission felt it was simp modifying a request initially made to the State commission to discontinue four unpaired trains. Nevertheless, Commission order which purportedly per discontinuance of trains Nos. 14 and 17, but leaves Nos. 15 and 16 in opera in reality authorizes discontinuance of Nos. 14 and 15 by initiating a chan of schedule for No. 15 to that of discontinued No. 17; and MoPac renumbered train No. 15 as No. 17 in implementing that order. Therefore, that part of the Commission's report and order authorizing MoPac to discontinue trains N 14 and 17, set aside; defendants are permanently enjoined from discontinuin those trains until, in new proceedings, proper authority therefor is secure in accordance with law.--Id., pp. 756-7.

35. Orders of the Commission.--See Jefferson City v. United Stat n. 2, above.

$15 (7). COMMISSION TO DETERMINE LAWFULNESS OF NEW RATES; SUSPENSION; REFUNDS

Procedure

35. Burden of proof upon the hearing; in general.--On further investigation in this general revenue proceeding, the Commission found that respondent railroads' cost data, although deficient in certain indicated as is sufficient to meet the burden of proving increased rates and charges just and reasonable. The Commission herein also placed railroads on notice that in any future general revenue proceeding a realistic study on the unit costs of performing transportation services will be necessary to sustain their bur of proof.--Increased Freight Rates, 1967, 332 I.C.C. 280 (285-86)*.

Particular Justifications for Changes

68. Rate comparisons.--Proposed reduced rates on sulphur from Canadian origins to Streator, Ill., found unlawful inasmuch as they are substantially comparable to rates on sulphur from the same origins to Chicago which were found lawful in 326 I.C.C. 288. Cost study in that case is based on data collected later than the data used herein and is thus determinative of cost issues herein. Streator, Ill., is 7 miles from Chicago and so is subject to the same competitive influences.--Sulphur, Canadian Origins to Streator, Ill., 332 I.C.C. 130 (132-34)*.

15a (2). RULE OF RATEMAKING

1. Purpose and interpretation.--A discussion of the rail cost evidence of record (appendix B hereto) shows that the proposed proportional rate of 9 cents exceeds the adjusted out-of-pocket costs of 6.6 cents. Thus the evidence clearly establishes that the proposed rate is reasonably compensatory for movements from origins on the New York Central R. Co. to Kanka

Ill. Further reshipping rates beyond Kankakee have been in effect and unchanged for many years. Record shows ton-mile and car-mile revenues under through rates compare favorably with system average revenues and protestants rebut neither this evidence nor the presumption of reasonableness of reshipping rates. Commission finds the combination of rates into and out of Kankakee produce reasonably compensatory through rates.-Corn and Corn Products, Illinois to Official Territory, 332 I.C.C. 485 (487)*.

5. Earnings of carriers; carrier credit.--On further investigation in this general revenue proceeding, Commission found that in considering reasonableness of increased freight rates substantial weight should be accorded to the need for such increases to help recover and supplement a standard credit position on investments of about 4 per cent for respondent railroads, long accepted as a proper rate of return.--Increased Freight Rates, 1967, 332 I.C.C. 280 (289-90)*.

$15a (3). COMPETITIVE RATEMAKING

2. Construction and interpretation.--The undisputed facts of record show that the proposed proportional rate is competitively necessitated. Although protestant barge lines are the low-cost mode, proposed rate exceeds both barge rates and barge fully distributed costs and the effect of the proposed rate upon barge traffic is not shown to be imminently destructive or to go beyond the hard competition sanctioned in 372 U. S. 744. Rail rates here in issue not found to constitute a destructive competitive practice.-Corn and Corn Products, Illinois to Official Territory, 332 I.C.C. 485 (467-88)*.

$20(5). FORMS OF ACCOUNTS, RECORDS, AND MEMORANDA; ACCESS TO RECORDS, ETC., BY COMMISSION OR AGENTS

Historical Note

On August 9, 1973, the Commission submitted a draft bill to Congress to amend $20(5) of the Interstate Commerce Act to clarify the power of the Commission to inspect and copy records of carriers regulated by it, including such items as carriers' financial forecasts. (S. 2459). Annual Report, 1974, p. 83.

20(11). LIABILITY OF INITIAL AND DELIVERING CARRIER FOR LOSS; LIMITATION OF LIABILITY; NOTICE AND FILING OF CLAIMS

Historical Note

On July 10, 1973, the Commission recommended to Congress legislation (S. 2250) which would amend the Interstate Commerce Act and the Harter Act o authorize the Commission to adjudicate unresolved loss and damage claims. Annual Report, 1974, p. 83.

$22 (1). RESTRICTIONS

Historical Note

On July 10, 1973, the Commission submitted to the Congress a draft bill to amend $22 of the Interstate Commerce Act to eliminate free or reduced rates for Government traffic, except in time of war or other national emergency and except in the transportation of commodities exempt from economic regulation under parts II or III of the Act. S. 2251 was introduced to implement the Commission's recommendation, and was included in H. R. 5385 and H. R. 12891 upon which hearings were held in March 1974. Annual Report, 1974, p. 83.

2. Interpretation in general.--Railroad serving the Denver Feder Center (within Denver switching limits) is estopped from recovering additio demurrage charges claimed to be due under its tariffs, when uncontroverted evidence shows that the Government relied to its detriment on oral agreemen with plaintiff's representative for release of empty cars at the Depot, instead of interchange track, on days railroad did not switch cars at the Cen Defendant's reliance is not unjustified, as a carrier need not abide by its published rates when dealing with the Government; government's request for a $22 agreement waiving collection of the demurrage charges had not been approved, but $22 (2) permits retroactive confirmation in writing of a variation from published tariff rate; thus, carrier's arguments that the demurrage charges are not a matter of contract and may not be modified by either party and that, since prerequisites of a valid $22 agreement were not met, claimed tariff charges must be collected, are not persuasive. On facts of record, the defense of estoppel may be invoked; defendant's motion for summary judgment granted.--Chicago, B. & Q. R. Co. v. United States, 439 F. 2d 1224 (1226-8).

5. Governmental bodies; United States.--Complainant United States availed itself of the $22 transit tender and accepted and paid a commodity rate based upon transit at Lathrop, Calif. Such rate quotation under $22 resulted in charges lower than those applicable to the public generally and the Government was bound thereby unless and until relief in the form of lows charges under $1 could be secured through Commission actions.--United States v Central of Georgia R. Co., 332 I.C.C. 33 (36).

PART II

$203(a)(19). "SERVICES" AND "TRANSPORTATION"

2. Transportation defined.--On reconsideration, Commission found that applicant's provisions for winch service, air compressors to inflate flat tires, and repair or replacement of damaged trailer tires as needed, are necessary and incidental to line-haul transportation and are thus transportation services entitled to consideration in deciding if operating authority to transport house trailers, in secondary movements, in truckaway service, should be granted.--Martin Trailer Toters, Inc., Common Carrier Application, 111 M.C.C. 841 (856-7)*.

$203 (b). VEHICLES EXCEPTED FROM OPERATION OF LAW

60. Commercial zones

Construction generally: Petition to combine and expand now separate commercial zones of Seattle and Tacoma, Wash. into a single, enlarged zone with boundaries as indicated is denied. The record demonstrates that Tacoma maintains separate governmental facilities, separate port facilities, and draws its labor force from its present zone and is thus not interdependent on and not economically, politically, or commercially a part of the same unit as Seattle.--Seattle-Tacoma, Wash., Commercial Zone, 111 M.C.C. 718 (721)*.

Expansion and enlargement of limits: Petition to expand the commercial zone of Seattle, Wash., northward and southward, as indicated herein, granted as the areas involved have changed from a basically agricultural character to such a state of industrial expansion and development that they now appear to be economically and commercially a part of Seattle. But the petition to expand the commercial zone of Tacoma, Wash., denied. commercially part of Tacoma are within the present 5-mile commercial zone and land outside this zone is primarily residential and agricultural.--SeattleTacoma, Wash., Commercial Zone, 111 M.C.C. 718 (721-22)*.

Beaumont, Tex.: Petition for redefinition of present zone to include the proposed area, as specified, found warranted as the proposed area is shown to be economically and commercially a part of the present zone because of the integration of geographic, demographic, and governmental factors; common use of public utilities; industrial interdependence; and the sharing of service and consumer industries and a common labor pool.--Commercial Zones and Terminal Areas, 110 M.C.C. 852 (854-58)*.

Memphis, Tenn.: Petition to extend the present commercial zone of Memphis, Tenn., to include the proposed area, specified herein, denied for lack of specific evidence. A significant area between the petitioner's industrial development and the existing zone is industrially undeveloped and appears, from available evidence, to be farmland and not part of the Memphis commercial zone. Thus, the entire area does not warrant inclusion within the Memphis commercial zone.--Commercial Zones and Terminal Areas, 110 M.C.C. 863 (866)*.

St. Louis, Mo.-East St. Louis, Ill.: Petition for redefinition and enlargement of present zone denied. Petitioner railroad sought redefinition in order to utilize services of unregulated carriers operating between proposed area and present zone. Record is so lacking in substance is to geographic, political, economic, and commercial factors as to not warrant consideration.--St. Louis, Mo.-East St. Louis, Ill., Commercial Cone, 111 M.C.C. 415 (417)*.

204(a)(6). ADMINISTRATION

Historical Note

On August 9, 1973, the Commission recommended to Congress leg

islation to amend 12 (1), 204(a)(6), 304(a), and 403 (a) of the Interstate Commerce Act to enable the Commission to exempt certain transportation from regulation upon a finding that the regulation is not necessary in order to effectuate the National Transportation Policy and that regulation would serve no public purvose (S. 2458). Annual Report, 1974, p. 84

$204(c). INVESTIGATION OF COMPLAINTS; ORDERS

27. General-revenue cases.--Respondents' selection of 79 cost study carriers based on their percentage of the aggregate involved tariff revenues was in harmony with our usual order for proofs but anticipated increases in expenses were computed voluntarily by 51 of the 79 carriers representing less than 57 percent of said revenues. Commission may reasonably infer that these 51 carriers restating expenses were those in most need of increased rates and are thus not representative. Additionally, respondents' data as to affiliate transactions, traffic movement, revenue needs, and carrier efficiency were not sufficiently detailed or representative. Increased rates ordered canceled.--General Increase, Middle Atlantic and New England, 332 I.C.C. 820 (834-39).

215. Modified procedure.--See Carl Subler Trucking, Inc.,

Extension, $206(5), n. 22, evidence.

$206(b). APPLICATION FOR CERTIFICATE; FORM AND CONTENTS

16. Amendment of application.

Commodities: Applicant's amendment restricting authority to enumerated commodities is unacceptable as evidence of supporting shipper shows that a grant of general-commodity authority is required. Commission is not, and cannot be, bound by applicant's restrictive amendments which are inconsistent with public interest and inimical to effective regulation. Protestants who withdrew in reliance upon such unacceptable amendments do so at their own peril, and cannot later complain they were denied the opportunity to oppose such applications actively.--Comet Messenger & Deliv. Serv., Inc., Com. Car. Applic., 111 M.C.C. 13 (16-7)*.

18. Burden of proof.--Burden of proving fitness to conduct proposed service continues upon applicant even though its fitness has been challenged as applicant remains the proponent of an order which requires a finding of fitness to be made.--Spector Freight System, Inc., Extension-Whitley, 111 M.C.C. 889 (392).

Substituted: In proceeding wherein authority for substituted motor-for-rail service is sought and public need for such service is dependent upon showing that proposed service will entail economies, efficiencies, and improvements in existing rail service, alternative standards of proof described in 84 M.C.C. 205 and herein cited are of primary importance. Protestant's interest and probable capability is so limited that need for proposed service, except as it interferes with protestant's interest is shown by shippers' evidence.--Erie Lackawanna Ry. Co. Ext.--Substituted Service, 110 M.C.C. 823 (826).