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INDEX DIGEST

ABANDONMENT OF SERVICE. See BURDEN OF PROOF; CONVENIENCE

AND NECESSITY (Revocation of Certificates); OPERATION (Bona Fide); ROUTES;

TRANSPORTATION.
ACCOUNTS. See also AMORTIZATION; REPORTS. When accounting system of
parcel-delivery carriers who had been temporarily exempted from accounting re
quirements had many classifications conforming to prescribed uniform system,
coordination with the latter should not be difficult. Permanent relief denied.
United Parcel Service of Pa., Inc., Filing of Contracts, 689 (698).
AFFIDAVITS. See OPERATION (Bona Fide).
AFFILIATION. See COMMON CONTROL, ETC.; DUAL OPERATION; OPERATION

(Joint).
AGENTS. See BROKERS (Licenses); and Definition, under COMMON and PRI-

VATE CARRIERS.
AGRICULTURAL COMMODITIES. Transportation of raw milk in tank
trucks or trailers used exclusively for that purpose was withip exemption of sec.
203 (b) (6), even though tractors were used in hauling other commodities in other
trailers. Derr Contr. Car. Applic., 437 (441);

- But fresh-frozen fruits and vegetables, which are processed, frozen, and
packaged at a freezing plant, and which must thereafter be kept in subfreezing
temperature until used and cannot be transported under ordinary refrigeration,
are manufactured products of agriculture not within the exemption. Newton
Ext. - Frozen Foods, 787 (789).
AMORTIZATION. Amortization is a charge to income to cover past premiums
paid for purchase of operating rights, and may not, under sec. 216 (h), be con-
sidered an element of value in determining reasonableness of rates. Minn.-N.
Dak. Motor Carrier Rates, 289 (303).
APPEARANCES. See also BURDEN OF PROOF; CONVENIENCE AND NECESSITY
(Proof). When railroad association customarily assigned proceedings under the
act to particular members, appearance on its behalf as intervener by a member of
Commission's bar was presumed, in absence of contrary evidence, to be duly
authorized. By so appearing it did not engage in the practice of law. Greenfield
Com. Car. Applic., 555 (556).
APPLICANTS. See Common CARRIERS (Qualifications); CONVENIENCE AND

NECESSITY (In General); PARTIES.
APPLICATIONS. See OPERATION (Temporary); SAVING CLAUSES; and

specific subjects.
ASSEMBLING AND DISTRIBUTION RATES. Congress authorized assem-
bling and distribution rates on forwarder traffic, lower than normal common-
carrier rates, because, owing to special conditions under which their services are
used, carriers' costs for solicitation, clerical work, handling loss-and-damage
claims, and separate delivery are eliminated or substantially reduced, short-line
carriers receive long-haul tonnage not otherwise available, and forwarder traffic
moves in established channels in predictable volume. Definition of Frt. Consol-
idators, 527 (530);

-In enacting sec. 408, Congress took cognizance of 310 U. S. 344, and intended to permit assembling rates to be used by other shippers under same conditions as by forwarders. Id. (534).

Assembling rates on I. t. I. shipments from eastern points to Chicago for consolidation, approximating 85 percent of class rates, were justified by difference in conditions incident to handling such traffic, and were not unreasonable when they exceeded carrier's divisions out of joint rates with forwarders. Id. (533. 537).

Publication of assembling rates from points that were also concentration points was not unlawful. Key points may be concentration points as to some shipments but gathering points as to others. Id. (534).

That application of assembling rates might result in advantage to certain classes of persons was not necessarily unlawful. No undue prejudice appeared when they were open to any person offering 1. t. 1. freight for ransportation between points and for the purpose specified in tariff. Id. (535).

Provision for application of assembling rates to traffic of freight consolidators, meaning either individual shippers or a group or association of shippers, did not violate sec. 408 or 216. Id. (536, 537);

- Application to traffic of shipper association was not precluded by sec. 402 (c), which was intended merely to exempt from regulation as a forwarder the operations of individual shippers or groups consolidating or distributing their freight on a nonprofit basis. Id. (535);

-Special handling of 1. t. 1. freight from origins to Chicago was performed under like conditions for forwarders and the association. Id. (535);

—Issuance of through bills of lading, publication of rates for entire service, and filing of insurance by forwarders primarily concern their relations with customers, not their manner of using services of common carriers, and are not the "like conditions” referred to in sec. 408, under which shippers may use assembling rates. Id. (535);

-That the association, unlike forwarders, did not assume responsibility for loss or damage to freight was immaterial, since such assumption would not lessen responsibility of underlying carrier, and association handled such claims similarly to forwarders. Id. (535). ASSOCIATIONS. See APPEARANCES; ASSEMBLING AND DISTRIBUTION RATES. BACK HAULS. See INTERMEDIATE POINTS. BANKRUPTCY. See INSURANCE; Saving CLAUSES (Interruption of Service). BONA FIDE OPERATION. See CONVENIENCE AND NECESSITY (Certificates);

OPERATION; VING CLAUSES.
BROKERS. See also COMMON CARRIERS (Qualifications).

DEFINITION AND TESTS OF STATUS: Applicant who neither sold nor offered for sale any transportation subject to the act, but merely turned over shippers' requests, withou compensation, to carriers using his parking terminal, was not a broker. But when he would charge carriers a percentage of freight charges for turning business over to them, broker authority would be required. Galvin Broker Applic., 458 (460).

Service as a clearing house of information for carriers seeking to rent trucks, with no concern as to type of agreements or use of equipment leased, was not brokerage. But performance of transportation, as result of applicant's efforts under any arrangement other than a bona fide equipment lease, might bring such service within the brokerage provision. Id. (460).

FEES: While a broker may lawfully collect reasonable compensation from carriers for shipments turned over to them, provided his services benefit the carrier or are part of the transportation covered by its rates, to permit him at the same

time gratuitously to render shippers valuable services not part of transportation
undertaken by carriers would contribute to undesirable control of traffic by the
broker, making carriers dependent on him and defeating freedom of negotiation
between them. Friedman Broker Applic., 1 (4);

-And when applicant controlled a large shipper, to permit him, as such shipper,
to collect commissions from carriers without performing any service of real value
to them, would be inconsistent with public interest. Merriman Broker Applic.,
372 (373).

LICENSES: Brokerage applications of persons controlling traffic of large shippers
should be denied when carriers receive no services of value. Services for shippers
or others do not justify license. Merriman Broker Applic., 372 (374);

-License denied applicant who performed valuable nontransportation services
for shippers in routing shipments, checking and handling payment of freight
charges. adjusting claims, etc., but performed no consequential service for carriers
beyond solicitation. Friedman Broker Applic., 1 (4).

License as broker of household-goods transportation at Kansas City granted,
subject to future restriction, to applicant who also operated as a common carrier
of such goods and as booking agent for another carrier, when there was no other
licensed broker of such transportation at Kansas City and applicant's operation
would promote expedition of a specialized and important service. Lincoln Stor.
& Moving Co. Broker Applic., 432.

Denial: Friedman Broker Applic., 1; Merriman Broker Applic., 372; Moore
Com. Car. Applic., 91.

Grant: Galvin Broker Applic., 458; Lincoln Stor. & Moving Co. Broker Applic.,
432.

PROOF REQUISITE FOR LICENSE: Burden is on applicant to prove affirmatively,
by competent evidence, that his brokerage operations will be consistent with
public interest. That application is unopposed is not controlling. Merriman
Broker Applic., 372 (373).
BULKY ARTICLES. See also DENSITY. Rules for computation of charges on
light and bulky shipments on constructive weights per cubic foot, which super-
seded classification basis on all but smallest shipments of articles of lighter density.
and put all commodities below a fixed density in the same class regardless of vari-
ances, were unreasonable and unduly prejudicial and should be canceled. Bell
Potato Chip Co. v. Aberdeen Truck Line, 337 (346);

- Application of constructive weight of 10 pounds tended to force shippers of
commodities of substantially lighter density to keep shipments below 50 cubic
feet to avoid higher charges, and did not result in economical transportation, as
division of one shipment to one consignee into several separately billed shipments
subjected shipper and carriers to additional clerical work. Id. (346);

-Specific ratings should be provided for commodities such as potato chips,
which had always weighed less than the constructive weights, and whose trans-
portation characteristics were constant and well-known. Id. (346);

-Rating of first class on potato chips, 1. t. I., would be less than reasonable, but
rating 142 times first class, which would avert excessive charges under light-and-
bulky rules while insuring compensatory revenues, was justified. Id. (347, 348);

-Although evidence dealt mostly with potato chips, rules were equally objec-
tionable for any other low-density commodity. As all parties to the rules in
Pacific Northwest were before Commission. rules were found unreasonably pref-
erential of commodities not within their purview. Id. (347).
BURDEN OF PROOF. See also BROKERS (Proof, etc.); CONVENIENCE AND
NECESSITY (Proof); DIVISIONS OF RATES (Evidence); HOUSEHOLD GOODS;
INVESTIGATION AND SUSPENSION; PASSENGERS (Through Routes). Burden of

proving alleged abandonment of operation was on complainant, and it was not relieved of that burden by defendant's failure to appear at hearing. Joint Northeastern Motor Car. Assn., Inc., o. Rose Transp. Co., 487 (488).

Section 210a (a) specifically provides that grant of temporary authority creates no presumption as to subsequent grant of permanent authority and does not relieve the temporary operator of burden of proving need for operation beyond the emergency period. Major Contr. Car. Applic., 795 (799). BURDEN OF TRANSPORTATION. See DENSITY; INCREASED RATES (Justi

fication). CANCELATION. See CLASSIFICATION (PROPERTY); COMMODITY RATES; JOINT

RATES AND FARES; TRANSIT. CARRIER STATUS. See Bona Fide under OPERATION and SAYING CLAUSES. CERTIFICATES. See CONVENIENCE AND NECESSITY; EXEMPTIONS; OPER

ATING RIGHTS; RAIL AND MOTOR. CHANGE IN RATES. See INVESTIGATION AND SUSPENSION. CHARTER OPERATIONS. See PASSENGERS. CIRCUITY. See ROUTES (Circuitous). CLASSIFICATION OF CARRIERS. See ROUTES (Radial Vs. Nonradial)

(Regular vs. Irregular); TRANSPORTATION; and Definition under COMMON,

CONTRACT, and PRIVATE CARRIERS. CLASSIFICATION (PROPERTY). See also Class RATES (Minimum-Rate

Restriction); DENSITY REASONABLENESS, ETC.

EXCEPTIONS: There is no reason for maintenance of a rating lower than classification basis on l. t. I. shipments of articles which do not move in an area. Capcelation of any-quantity exceptions rating on cotton bags, approved when no actual movement was known. Minimum Rate Restrictions to, from, within Southwest, 161 (170).

Items in tariffs or exceptions, coordinate with those in the classification, remove the corresponding items from the classification, even though the latter are more specific. Line Material Co. v. Hinchcliff, 323 (326, 327);

-Listing of transformer parts under “Electrical Appliances” in exceptions removed application of higher classification rating on transformer cases under like heading. Classification listing signified carriers' recognition of cases as electrical appliances for rate-making purposes, and if they wished to exclude them from exceptions rating on parts, which include cases, they should have done so by definite restriction. Id. (327);

- When defendant was a party to classification listing venetian blinds under window shades, he should have employed clear and explicit language to esclude them from lower rating provided by his exception on “Window Shades." Hill v. Pennsylvania Truck Lines, Inc., 319 (320).

When rating on potato chips, 1. t. 1., was too low, but chips handled in Pacific Northwest did not differ materially, from a transportation standpoint, from those transported throughout western classification territory, increase should be accomplished by changing the general classification rather than by publishing exceptions. However, as proposed exceptions rating was reasonable and would afford shippers relief from light-and-bulky rule while the classification change was being arranged, no immediate change in the classification proper was required. Bell Potato Chip Co. v. Aberdeen Truck Line, 337 (348). CLASS RATES. See also ASSEMBLING AND DISTRIBUTION RATEB; COMMODITY RATES.

MINIMUM-RATE RESTRICTION: Proposed increase to third class of minimum joint class rate on traffic interchanged with a certain carrier, found not justified in absence of showing of volume of traffic interchanged, cost to the participating carrier, and cost of interchange. Joint Minimum Rates over Gladden Trucking Co., 139.

Class rates proposed as general minimum basis on class-rate traffic in w. t. I. and Ill. territories, found not justified when they would narrow spreads between t. I. and I. t. I. rates, disrupt rate relations between commodities, and in some cases be equivalent to all-commodity rates. Minimum Rate Restrictions to, from, within Southwest, 161 (166, 168);

-If the class rates in those territories, initially established on rail rate basis, were less than reasonably compensatory on lower-rated traffic, especially for longer hauls, the classifications and class rates should be revised instead of superimposing on the rail basis a system of minimum rates which would disrupt the motor class-rate structure. Id. (163, 166).

As truckloads. under motor class-rate structure, are usually rated fourth class (50 percent of first class) or lower, and less than truckloads third class (70 percent of first class) or higher maintenance of third-class rates as minimum basis on class-rate traffic results in application of l. t. 1. rates to truckloads, and a minimum 50 percent of first class results in the same rate on all commodities rated fourth class or lower, thus disregarding transportation characteristics and nullifying the classification bases required under sec. 216 (b). Transamerican Frt. Lines, Classes in Central Territory, 189 (198);

-However, use of class-rate stops might be countenanced during the war emergency, to insure that all motor traffic would return cost plus some profit. Id. (199);

- But proposed increased stops in central territory and between that and eastern and w. t. I. territories could not be approved even as a temporary measure when they bore no consistent relation to first class, varied greatly for similar distances without justification in transportation conditions, were limited to a portion of carriers' traffic although increased costs of service were incurred in all, and would result in a maladjusted rate structure. Id. (195, 198).

REASONABLENESS: Class rates intended to be applied on paper between New England points, on cancelation of obsolete commodity rates, conformed to standards of reasonableness long regarded as valid, when they had been approved in New England rate revision and were generally applied by competing carriers. Paper Between Boston, Mass., and Points in Mass. and R. I., 661 (663). COMMODITIES. DESCRIPTION: Manufacturer's description of a commodity for sales purposes also fixes its identity for transportation purposes. Federal Glass Co. o. Cleveland, C. & C. Highway, Inc., 721 (724).

A "tumbler" ordinarily means a drinking glass without a stem, and such articles could not be shipped in mixed truckloads at commodity rate on glassware, n. o. i. in classification, when tumblers were separately classified. Class rate applied on such mixtures unless lower charges would result from treating the tumblers as an 1. t. I. shipment. Id. (724).

Exceptions rating on “Stoves, Coal and Wood,” subsequently changed to "Coal or Wood," applied on stoves burning only coal or only wood. "And” and “or” are frequently used interchangeably and may be substituted for each other as the sense requires, and interpretation limiting that description to stoves burning both coal and wood was strained and unreasonable. L. V. Brandt Corp. o. Hayes Frt. Lines, Inc., 778 (779).

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