after deducting 5 cents from each rate as an allowance for the lack of pick-up service. The proposed 85-cent rate was made by adding 16 cents to the 69-cent rate. Between the Massachusetts points, except Boston and Worcester, and Manhattan (from the Battery to Fifty-ninth Street), the proposed commodity rates, which would apply on shipments weighing under 12,000 pounds, are the same as the present rates in nearly all instances. The shoe manufacturers generally bear the transportation charges from the New England producing points to Boston, and the jobbers and consignees bear the charges from Boston to New York City. There are 48 shoe factories in Maine which had an aggregate output in 1942 of 29,125,722 pairs of shoes, or 18 percent of the total production in all of New England during that year. From January to August 1943, the Maine factories manufactured 17,444,238 pairs of shoes. The protestants estimated that the proposed rates would increase the freight charges $90,000 a year on shipments of shoes from Maine to Boston, of which amount $10,288 would be borne by the factories at Auburn and in that vicinity. One Auburn manufacturer sells its shoes f. o. b. its factory. It urges, however, that the proposed increased rates would affect the volume of its sales adversely because the transportation cost is an important part of the total cost of shoes to the consignee. The average selling price of that manufacturer's shoes, prior to the war, was $1.285 a pair, and its profit ranged from 0.625 to 1 cent a pair. Its present wholesale price is not of record, but the present retail price ranges from $2 to $3 a pair. It will avail itself of the rail less-than-carload rate of 45 cents from Auburn to Boston, including pick-up and delivery, if the proposed motor rate of 54 cents becomes effective. One protestant estimated that the profit to the manufacturer on a pair of shoes, selling at an average of $1.80, is 5 cents, and that the proposed increase in rates would average about 1 cent a pair, or 20 percent of the producer's profit. Other protestants estimated that the proposed increase in rates would range from 0.18 to 0.33 cent a pair of shoes. There are no underlying data of record to support these estimates. Although the Maine and New Hampshire shoe interests contend that the proposed adjustment in the rates would place them at an unfair disadvantage in competition with shoe manufacturers in other States, they presented no evidence to sustain this contention. The shippers opposing the proposed rates further contend that amounts as little as 1 cent a pair influence buyers in the purchase of shoes; that because of Federal maximum sales prices, the manufacturers would have to bear any increase in the rates; that their profits are small and the increased transportation costs would be a hardship; and that no increase should be approved as the respondents generally were recently permitted to increase all their rates by approximately 4 percent. The Director of Economic Stabilization and the Price Administrator, although recognizing that maladjustments exist in the present rates, contend that, from the standpoint of Federal price regulation, the present maladjusted rates should be continued during the war emergency. They urge that if any increase in the rates is warranted, it should be effected by a uniform percentage increase in the present rates. The rates proposed would be improperly adjusted with respect to distance, and the reason for such disparities is not apparent. Typical examples, as shown in appendix A, are as follows: From Portland, Maine, to Brockton, Mass., 128 miles, 58 cents; Freeport, Maine, to Boston, 135 miles, 54 cents; Auburn to Brockton, 164 miles, 68 cents; Augusta, Maine, to Boston, 166 miles, 58 cents; Belfast, Maine, to Boston, 211 miles, 62 cents; Bridgewater, Mass., to lower Manhattan, 211 miles, 80 cents; Boston (terminal) to Manhattan, 225 miles, 69 cents; Bangor, Maine, to Boston, 232 miles, 66 cents, including pick-up and delivery; Nashua to lower Manhattan, 235 miles, $1.02; and Old Town to Boston, 245 miles, 68 cents. From some of the Maine and New Hampshire points to New York City, the proposed rates would exceed the third-class, column B, rates while between some of the New England points they would be as low as 80 percent of the third-class, column D, rates. To illustrate, to lower Manhattan the proposed rates and the third-class, column B, rates, respectively, are $1.02 and $1.01 from Nashua; $1.09 and $1.07 from Suncook, N. H.; $1.15 and $1.10 from Pittsfield, N. H.; and $1.16 and $1.14 from Springvale, Maine. To Boston, examples of the proposed rates which are equivalent to 80 percent of the thirdclass, column D, rates, are 58 cents from Wilton, Maine; 60 cents from Skowhegan, Maine; 62 cents from Belfast and Pittsfield, Maine; 66 cents from Bangor; and 68 cents from Old Town. As noted, the proposed rates from Maine and New Hampshire points to New York City are on the basis of the proposed pick-up-anddelivery rates to Boston plus the proposed rates from the carriers' terminals in Boston. The respondents contend that this basis is proper because they generally transport this traffic to Boston where it is consolidated into truckload quantities for transportation to New York City. For similar reasons, the respondents propose a higher basis of rates from Brockton, and points in the vicinity of Brockton, to New York City than they proposed from points in Maine, New Hampshire, and Vermont to Boston. The fact that the respondents transport traffic over circuitous routes for their own convenience does not justify rates based on distances other than those over the most direct routes. The proposed commodity rates from New Hampshire and Maine origins are the same to lower Manhattan (from the Battery to Fiftyninth Street) as to northwestern Brooklyn. From Massachusetts points, except Boston and Worcester, however, the proposed commodity rates would apply to lower Manhattan, but the higher class rates would apply to northwestern Brooklyn. No justification has been shown for this difference in treatment. From Boston and Worcester to lower Manhattan, the suspended commodity rates would apply only from the carriers' terminals; that is, the rates include delivery but not pick-up service. It is proposed to apply the higher class rates when both pick-up and delivery service is rendered. A comparison of the proposed rates including delivery only, with those including pick-up and delivery is made in the following table: It will be observed that from Boston to Manhattan, on shipments weighing under 6,000 pounds, the proposed rates including pick-up and delivery exceed the rates including only delivery by 26 cents to the area from the Battery to Twenty-third Street, and by 10 cents to the area from Twenty-third to Fifty-ninth Streets; on shipments weighing from 6,000 to 11,999 pounds, the pick-up and delivery rate to the area from the Battery to Twenty-third Street exceeds the delivery-only rate by 17 cents, but to the area from Twenty-third to Fifty-ninth Streets the pick-up and delivery rate exceeds the deliveryonly rate by 1 cent; and on shipments weighing 12,000 pounds and over the pick-up and delivery rate to the area from the Battery to Twenty-third Street exceeds the delivery-only rate by 6 cents, but to the area from Twenty-third to Fifty-ninth Streets no lower rate is proposed for shipments accorded delivery service only than is proposed on shipments accorded pick-up and delivery. From Worcester to Manhattan, similar disparities are present in the rates proposed for delivery only and for pick-up and delivery. On shipments weighing from 6,000 to 11,999 pounds and destined to the area from Twenty-third to Fiftyninth Streets, the respondents propose a rate 4 cents lower when pick-up and delivery service is rendered than when delivery service only is rendered. On similar articles from common points of origin, the differentials between pick-up and delivery rates and rates including delivery only ordinarily should be uniform. When the rates generally include pickup and delivery and the carriers propose rates excluding pick-ups but including delivery, the differential under the rates which include the complete service should not exceed the carriers' cost of performing the pick-up service, or what is a reasonable allowance to the shipper for delivering the shipments to the carriers' terminals. The evidence does not permit a determination of the respondents' costs for performing pick-up service at Boston and Worcester. In the light of their operating costs, the respondents view the proposed rates as depressed, but deem it inadvisable at this time to establish a higher level. In their attempt to avoid too drastic increases in rates, especially from the producing points to Boston, they have proposed an adjustment of rates which, on this record, we are unable to find would be just and reasonable. We find no warrant for increasing rates to points other than Boston, which are already as high as or higher than those proposed to Boston. We believe, however, that the rates proposed to Boston would be just and reasonable if confined to less than truckloads. Where there is a sustained truckload movement a lower basis would seem appropriate. Little information was presented respecting the proposed minimum charges per shipment which, in many instances, are the same as the minimum charges maintained by the respondents in connection with their class rates. Boot-and-shoe-factory supplies.-Between 22 points in eastern Massachusetts and 35 points in Maine the respondents maintain commodity rates on boot-and-shoe-factory supplies. Some of these commodity rates apply on any-quantity shipments and others apply on shipments weighing under 12,000 pounds, from 12,000 to 19,999 pounds, or 20,000 pounds and over. The commodity descriptions applicable between some of the points embrace a small number of articles such as shoe counters; rubber heels; and rubber heels, soles, soling, and taps; but between other points, the commodity descriptions include an extensive list of articles, which is divided into 2 groups designated groups A and B. Approximately 45 articles are embraced in group A, including shoe cement, heels, heel pads, leather, shoe shanks, soles, 43 M. C. C. taps, and uppers; and about 10 articles are embraced in group B, including shoe counters, shoelaces, and box toes. The present commodity rates apply on straight or mixed shipments of the articles in group A, and on mixed shipments of group A and group B articles, provided the weight of the group B articles does not exceed 20 percent of the weight of group A articles. The suspended schedules would cancel the commodity rates, resulting in the application of fifth class, provided by exceptions to the classification on the groupings of commodities above described. On straight shipments of shoe counters, the classification basis of third class would apply. Commodity rates on straight shipments of shoe counters are maintained from Amesbury and Newburyport, Mass., to Auburn, Augusta, and 30 other Maine points, in less than truckloads and in truckloads; and from Kennebunk, Maine, to Boston, Lynn, and Peabody, Mass., in any-quantity lots. There is some indication that the movement from Amesbury and Newburyport has ceased. The commodity rates on the shoe counters from Amesbury and Newburyport are in some instances less than one-half of the present class rates. For example, from Amesbury to Bangor, the present commodity rates range from 40 cents on truckloads, minimum 20,000 pounds, to 48 cents on shipments weighing under 6,000 pounds; and the third-class rates range from 87 cents to $1.04 on the same quantities, respectively. In relation to the class rates, the present less-than-truckload and truckload commodity rates on shoe counters from Amesbury and Newburyport appear to be unduly low. The present any-quantity commodity rates on shoe counters from Kennebunk are 49 cents to Boston and 47 cents to Lynn and Peabody, and the third-class rates to each of these three destination points are 60 cents on shipments weighing under 6,000 pounds, 53 cents on shipments weighing from 6,000 to 11,999 pounds, and 47 cents, minimum 12,000 pounds. On truckloads the proposed class rates from Kennebunk are either the same as or slightly lower than the present commodity rates. We conclude that the respondents should be permitted to cancel the commodity rates on shoe counters. The respondents' present and proposed rates on boot-and-shoefactory supplies between representative points in Massachusetts and Maine are set forth in appendix B. On shipments weighing under 6,000 pounds and from 6,000 to 11,999 pounds, the present rates generally are lower than the proposed fifth-class rates, except that from South Middleton, Mass., to the Maine points, commodity rates lower than the class rates are maintained only on shipments weighing under 6,000 pounds. Generally speaking, on shipments weighing 12,000 pounds and over the present commodity rates are the same as the fifth-class rates. In a few instances the class rates are lower than |