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high, reasonable rates were fixed on basis of scale previously prescribed as mini-
mum in same territory, increased 20 percent for distances up to 170 miles. Pe-
troleum Products Between Ark., Kans., Mo., and Okla., 261 (267).

Increased rates on shoes in New England and to and from eastern N. Y. and
N. J., found unreasonable when they were improperly related to distance and ex-
isting rates were as high as or higher than proposed rates to Boston. Latter
rates would be reasonable if confined to less than truckloads. Boots, Shoes, and
Paints in New England, 627 (635).
INITIATION OF RATES. Initiation of rate increases to improve their
financial condition is within carriers' managerial discretion, and unless their
action would jeopardize sound economic conditions. Commission should not
prevent management from adopting new bases of rates. The question is not
whether the proposal is a wise exercise of managerial discretion, but whether the
rates are reasonable and otherwise lawful. Increased Com. Car. Truck Rates
in New England, 13 (21).
INSURANCE. INSURANCE COMPANIES: Imposition of a minimum financial
standard for companies filing motor-carrier insurance would not indirectly subject
them to Federal regulation. Commission's duty under sec. 215 to prescribe
reasonable regulations for filing and approval of insurance cannot be discharged
without authority to prescribe such reasonable standards of eligibility for insur-
ance companies as will provide adequate protection for the public, and prescription
of such standards does not constitute supervision. Motor Carrier Insurance for
Protection of Public, 355 (359).

To require stock companies to maintain a minimum policyholders' surplus of
$200,000, not less than $150,000 to be paid-in capital, would be reasonable, as
State laws provide less control over free surplus exceeding capital than over
minimum capital, and only when such surplus disappears and capital is impaired
do most States require a company to cease operating. Minimum capital larger
than surplus would better protect policyholders and claimants, and anv reduction
in proposed requirement would diminish that protection below a desirable mini-
mum. Id. (363);

- When 67 percent of the companies which had failed after filing insurance
certificates with Commission were nonstock institutions issuing assessable policies,
and collection of a substantial percentage of assessments against policyholders
was exceptional, requirement that such companies maintain a minimum surplus
of $150,000 would not discriminate unfairly against them as compared with stock
companies. Id (361);

-That nearly all the companies which had failed had never been able to
comply with such a standard, and had a poor record in settlement of damage
claims, indicated that it was necessary in the public interest, as it would have
averted substantial loss to carriers and public. Id. (366).

Requirement that insurance companies be licensed by each State covered by
the policy protected the public to a greater degree than prescribed minimum
financial standard alone, and its elimination would justify prescription of a higher
financial standard, which would narrow the insurance market by eliminating
some companies meeting that approved. Id. (364).
INTERCHANGE. See also TRANSPORTATION.

IN GENERAL: “Interchange" connotes reciprocation, and means an under-
taking by two or more carriers to transport a shipment from origin to destination,
each carrier's service being specifically authorized. A radial carrier may inter-
change with other carriers at any point in its authorized territory, provided its
service begins or ends at an authorized base point; but it may not, under fiction

of interchange with itself at the base point, perform nonauthorized service between
two radial points. G. & M. Motor Transfer Co., Inc., Com. Car. Applic., 497
(501); Gay's Exp., Inc., o. Haigis and Nichols, 277 (280).

CONNECTING CARRIERS: Certificate authorizing service to Missoula, Mont.,
as intermediate point between Idaho and Butte, Mont., permitted interchange at
Missoula of freight from Pacific Northwest to Butte, and did not restrict carrier
to traffic from Idaho. - Daniels v. Rose, 726 (727).
INTERMEDIATE POINTS. See also CONVENIENCE AND NECESSITY (Exten-
sion of Operation); ROUTES (Substitution or Change); TRANSPORTATION. When
applicant who lacked intermediate-point authority for Rutland, Vt., furnished
more expeditious service on shipments from N. Y. and N. J. than carrier serving
Rutland, although they had to be back-hauled from Burlington, Vt., by con-
necting lines, extension authority was granted for all intermediate points between
Burlington and N. Y. State line, and for Vt. points within 25 miles of Rutland.
Marcell Ext.-Rutland-Burlington, Vt., 283 (287).
INTERMEDIATE RULE. Tariff circular provides no intermediate rule for
irregular-route carriers, as a rule definitely indicating whether particular points
are intermediate to named points is difficult to devise. Although rule proposed
by such a carrier conformed to that authorized for regular-route carriers, it was
not justified when rates to the unnamed points would vary with routes used, and
similar existing rules should be canceled. Rules of Mich. and Nebr. Transit
Co., 269 (271, 276).
INTERRUPTION OF SERVICE. See SAVING CLAUSES.
INTERSTATE COMMERCE ACT. PART II Construed: Sec. 203 (a) (13):
437 (441); Sec. 203 (a) (17): 451 (455); Sec. 208 (6) (6): 787 (789); Sec. 208 (a):
421 (423); 495 (500); Sec. 209 (6): 755 (758); Sec. 212 (a): 707 (711, 712); Sec. 216:
355 (360); Sec. 216 (a): 51 (54); Sec. 216 (6): 189 (198).

PART IV Construed: Sec. 402 (c): 527 (535); Sec.408: 527 (530, 534, 535).
INTERTERRITORIAL RATES See RATE COMPARISONS.
INTERVENTIONS. See also APPEARANCES.

INTEREST OF INTERVENER: All passenger carriers in territory in which bus line
sought authority conceivably had a direct interest in its application and were
entitled to intervene, under sec. 204 (c). Greenfield Com. Car. Applic. 555 (556);

-Bus line which did not operate directly between proposed termini was entitled
to intervene when it participated in through service by interchange. Id. (556);

-Railroad association was a proper intervener when two of its members
furnished competing service. Id. (556).
INTRASTATE COMMERCE. INTRASTATE RATES AS BASIS FOR INTERSTATE
CHARGES: Since sec. 216 (e) prohibits regulation of intrastate motor rates by
Commission for any purpose, reasonable minimum charges on interstate ship-
ments may not be conditioned on level of intrastate charges, even if latter dis-
criminate against interstate traffic. Minimum Charges in Central Territory,
145 (154).
INVESTIGATION AND SUSPENSION. BURDEN OF PROOF: Carriers should
be prepared to prove that a proposed general rate increase is required to im-
prove their financial condition, or that increases in individual rates thought to
be too low will be just and reasonable. Minimum Rate Restrictions to, from,
within Southwest. 161 (170);

-That increases would not adversely affect shippers did not relieve carriers
of that burden. Wallboard to and from New England, 763 (766).

DISCONTINUANCE OF PROCEEDING: Although Supreme Court's condemnation
of Commission's announcement of policy as to volume minima in 34 M. C. C. 641,
on ground that that record afforded insufficient basis, required reopening of that

AND

proceeding, in which suspended rates on 30,000-pound minimum were found
unlawful, it was discontinued at carriers' request. Because of changed condi-
tions affecting transportation costs, they no longer sought approval of rates found
unlawful, and further efforts to obtain the kind of record contemplated by the
Supreme Court would be futile. Rugs and Matting from East to W. T. L. Terri-
tory, 540.
JOINT OPERATION. See CONVENIENCE NECESSITY (Certificates);

OPERATING Rights; OPERATION.
JOINT RATES AND FARES. See also CLASS RATES (Minimum-Rate

Restriction); INCREASED RATES (Justification); PASSENGERS (Through Routes);
THROUGH ROUTES.

CANCELATION: Restriction of joint rates on printing paper not to apply over
respondent's line, found not justified when such routes were more direct than
others over which joint rates applied, and no showing was made that resulting
increases would be reasonable. Printing Paper over Dixie Frt. Lines, Inc., 352.

REASONABLENESS: Operating cost of one participating carrier affords no meas-
ure of reasonableness of a through rate. Leather, Sault Ste. Marie to Chicago
and Milwaukee, 131 (134);

- Nor comparison of average truck-mile expense with revenues yielded by
divisions. Printing Paper over Dixie Frt. Lines, Inc., 352 (354).
JURISDICTION. See DAMAGES, and other pertinent subjects.
KEY POINTS. See ASSEMBLING AND DISTRIBUTION Rates; RAIL AND MOTOR.
LESS THAN TRUCKLOAD. See also CLASSIFICATION (Property); CLASS

RATES (Minimum-Rate Restriction); COMMODITY Rates; Cost OF SERVICE
(Apportionment); INCREASED RATES (Justification).

MINIMUM CHARGE FOR SINGLE SHIPMENT: Although minimum charges on single
shipments in central territory and between that and trunk-line and New England
territories were too low, in view of carriers' increased costs, proposed basis was
not justified by defective cost studies on small shipments. Minimum Charges
in Central Territory, 145 (157).

Provision in minimum-charge rule for application of different specific charges,
depending on whether corresponding first-class rate was over or under 46 cents,
referred to conditions as of time of acceptance of particular shipment. As first-
class rate between considered points exceeded 46 cents after general increase
became effective, the higher minimum charge, similarly increased, became
applicable. Bendix Aviation Corp. v. Giaras, 685 (687);

—That resulting charge represented a 60-percent increase did not per se estab-
lish that it was unreasonable. Id. (688).
LEVEL OF RATES. See PROFIT.
LIABILITY OF CARRIERS. See ASSEMBLING AND DISTRIBUTION RATES;

REMEDIES.
LICENSES. See BROKERS; INSURANCE.
LIKE CONDITIONS. See AssEMBLING AND DISTRIBUTION Rates.
LIMITATION OF ACTIONS. Since part II does not provide a limitation
period for bringing suits to recover damages for exaction of unlawful charges,
the statute for the jurisdiction in which suit is brought must govern. Bell
Potato Chip Co. v. Aberdeen Truck Line, 337 (343).
LINE HAUL. See TERMINAL AREAS.
LOADING. See TRANSIT (Stoppage).
LOCAL OPERATION. See OPERATION (Bona Fide); ROUTES (Scope of
Operation).

LOSS AND DAMAGE. See ASSEMBLING AND DISTRIBUTION RATES; REASON-

ABLENESS, ETC.
MANAGERIAL DISCRETION. See INITIATION OF RATES.
MAXIMUM RATES. See TARIFF CIRCULARS.
MINIMUM CHARGES. See INTRASTATE COMMERCE; LESS THAN TRUCKLOAD.
MINIMUM RATES. See also Class RATES; CONTRACT CARRIERS.

IN GENERAL: When rates are assailed as lower than a reasonable minimum,
predominant question is whether they are reasonably compensatory. Minn.-N.
Dak. Motor Carrier Rates, 289 (304).

Rates of certain common and contract carriers on groceries from Twin Cities
to Fargo and Grand Forks, N. Dak., found unreasonably low, and reasonable
minimum rates determined for minimum weight of 20,000 pounds without
predjuice to a higher minimum weight, capable of loading in a single vehicle,
for a rate șielding not less than 14 cents a truck-mile for round-trip distance.
In view of limited scope of such findings, and general finding of undue prejudice,
no order was entered, but carriers should establish approved basis within 60
days. Id. (305).
MINIMUM WEIGHTS. See also MINIMUM RATES.

INABILITY TO LOAD MINIMUM: Class-rate minimum of 20,000 pounds on glass-
ware was unreasonable when complainant could not always load that amount
on defendant's largest vehicle. Reasonable minimum was 18,000 pounds pre-
scribed for commodity rates, on shipments prior to prescribed reduction to
15,000 pounds, and latter minimum thereafter. Federal Glass Co. v. Cleveland,
C. & C. Highway, Inc., 721 (722. 723, 725).

RATE FACTORS WITH DIFFERENT MINIMA: Rule that when different minimum
weights were provided by east and west ratings governing two-factor class rates
between Ill. and w. t. I. territories. the higher would apply to the through rate,
approved, as it would not result in unreasonable charges since amounts tendered
usually met that minimum. Minimum Rate Restrictions to, from, within
Southwest, 161 (166).
MIXED TRUCKLOADS. See COMMODITIES (Description).
MOOT CASES. See DAMAGES; INVESTIGATION AND SUSPENSION.
MUNICIPALITIES. See also TERMINAL AREAS. Motor carriers may law-
fully maintain different rates to different zones or areas in the same municipality.
Sherwin-Williams Co. 0. Advance Transp. Co. of Wis., 186 (188).
NATIONAL WAR LABOR BOARD. See SALARIES AND WAGES.
OFFICE OF DEFENSE TRANSPORTATION. See RAIL AND MOTOR.
OFF-ROUTE POINTS. See TRANSPORTATION (Adequate Service).
OIL-FIELD EQUIPMENT. See SPECIAL SERVICES.
OPERATING RATIOS. See INCREASED RATES.
OPERATING RIGHTS. See Also BROKERS; BURDEN OF PROOF; COMMON

CARRIERS (Qualifications); CONTRACT CARRIERS (Permits); CONVENIENCE
AND NECESSITY; HEARING; OPERATION; PASSENGERS; PURCHASE; ROUTES
(Radial vs. Nonradial); SAVING CLAUSES.

MULTIPLE AUTHORITY PROHIBITED:
Applicants engaged in ostensibly separate operations, but having common
wners and actually conducting only one business are entitled to but one
operating authority. Bekins Van & Stor. Co. Com. Car. Applic., 401 (408, 413).

State: While possession of intrastate authority over a proposed route does
not alone justify grant of interstate authority, it is an element to be considered,
particularly when no other carrier provides similar interstate service in the
affected territory. Public Serv. Interstate Transp. Co.-Bergen Turnpike,
599 (610, 623).

OPERATION. See also COMMODITIES; CONVENIENCE AND NECESSITY; DUAL

OPERATION; ROUTEB; SAVING CLAUSES; and particular kinds of service or
carriers.

Bona Fide: It is fundamental that carrier status requires not only a holding
out with ability and willingness to transport, but also some actual transportation
consistent therewith. Aero Mayflower Transit Co. 0. William Schafer & Son.
Inc., 657 (659);

- And a bona fide local operation should be marked by greater consistency of
movement than a long-haul service. Id. (659);

-To publish rates and hold out to the public as a carrier to the extent possible
with available equipment does not constitute compliance with certificate, in
absence of actual operation amounting to bona fide continuous and adequate
service. R. D. Fowler Motor Lines. Inc., 0. Colonial Motor Frt. Lines, Inc.,
781 (784).

Compliance affidavit failed to establish bona fide resumption of operations when
assertion that interstate authority from destination States had been arranged for
was offset by failure to show that carrier's one truck had been licensed in any such
State or that licensing was unnecessary; reference to "my truck" negatived avail-
ability for long-haul service of any equipment not fully engaged locally; and
affiant's assertion as to solicitation was offset by failure to show any advertisement
such as would be expected in a bona fide attempt to perform service of scope
authorized. Aero Mayflower Transit Co. 0. William Schafer & Son, Inc., 657
(659);

-That nature of household-goods traffic might make it difficult for carrier to
develop any substantial volume, or even traffic to all authorized States, in 2
months after service of recommended report and compliance order, did not ex-
plain failure to show any long-haul service; and transportation of only three
local shipments in 1 week and none in the following 6 raised doubt as to bona
fide resumption of any operations. Id. (659).

Joint: When separate legal entities conducting a joint operation had identical
stockholders, whose percentage of interest in each company was about the same
Commission was warranted in looking through the corporate structures to
determine that the persons back of them, and the beneficiaries of their single
operating right, were the real parties in interest. Lincoln Tunnel Applics., 707
(711).

TEMPORARY: See also BURDEN OF PROOF. When no need for permanent
extension of authority as a household-goods carrier was shown, but abnormal
demands for service between eastern Wash and adjacent States resulted from
Government construction projects and establishment of war facilities, Commis-
sion, on own motion considered issuance of temporary authority for that territory.
Bogovich Ext.-Household Goods. 745 (746, 748).

Holder of temporary wartime permit need not defer application for permanent
authority until termination of the war appears imminent, as application may be
filed at any time. Major Contr. Car. Applic., 795 (799).

UNAUTHORIZED: See also RAIL AND Motor; Routes (Radial vs. Nonradial)
(Substitution or Change); THROUGH ROUTEs. Operation under color of a claimed
"grandfather" right was not unlawful although showing of past service was in-
sufficient to prove that right. Carolina Frt. Carriers Corp. Com. Car. Applic.
221 (236).
ORDERS. See TARIFF CIRCULARS.
OVERCHARGES. See SCHEDULES (Applicability and Interpretation).
PARCEL SERVICE. See COMMON CARRIERS (Definition, etc.); SERVICE.
PARTIES. See also BURDEN OF PROOF; INTERVENTIONS; PURCHASE.

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