No. 20449 WALTER VERHALEN COMPANY ET AL. v. ATCHISON, TOPEKA & SANTA FE RAILWAY COMPANY ET AL. Submitted March 18, 1929. Decided September 3, 1929 Rates on fruit and vegetable baskets and hampers, in carloads, from points in transcontinental Groups E and F to California destinations found unreasonable. Reasonable rates prescribed for the future. J. M. Smith and A. T. Witcher for complainant. J. R. Bell, J.E. Lyons, C. N. Bell, Del W. Harrington, and Norman Hall for defendants. REPORT OF THE COMMISSION DIVISION 5, COMMISSIONERS LEWIS, TAYLOR, AND FARRELL BY DIVISION 5: Exceptions were filed by complainants and defendants to the report proposed by the examiner, and oral argument was had. Our conclusions differ from those recommended by him. Complainants are copartnerships and corporations manufacturing fruit and vegetable baskets and hampers at points in Arkansas and Texas. By complaint filed December 16, 1927, it is alleged that the rates on baskets and hampers, in carloads, from complainants' plants to all points in California are unreasonable. Reasonable rates for the future are prayed. Rates will be stated in amounts per 100 pounds. Complainants' plants are located in the timber region of Arkansas and eastern Texas, at Hope, Ark., and at Conroe, Jacksonville, Rusk, Paris, Mineola, Longview, Marshall, and Pittsburg, Tex. On westbound transcontinental traffic Hope is in rate Group E, and the Texas. points named are in Group F. There is no question here of the relationship of rates from these origin groups, Group E ordinarily taking rates somewhat higher than Group F. Therefore, for the purposes of this report we shall direct our attention to rates from the Texas, or Group F, points of origin. Longview will be considered as representative of all of them because the average distance from the latter point to the California destinations selected by complainants is substantially the same as the average distance from all of the Texas points named to all such California points, viz, about 1,760 miles. It is unnecessary to name the California destinations which complainants desire to reach, as they cover practically the entire State, particularly from Brawley, in the Imperial Valley, in the south, to Newcastle, in the Sacramento Valley, in the north. Nor is it necessary to set forth the present difference in rates on hampers over those on baskets, defendants conceding for the purposes of this case that there should be no difference. Complainants make bushel and half-bushel baskets of the roundbottom and tub, or straight-side, types. These are machine made, of gum veneer, the round-bottom type consisting of radial staves fastened in their center and, having been forced into basket form, secured by hoops, one at the top of the basket and one in the middle. As shipped, these are nested and weigh about 44 pounds to the dozen. Complainants testify that because of the existing rate situation they have been unable to ship their products into the California markets at a profit. They estimate that with a proper basis of rates they will be able to sell 500 carloads in the destination territory concerned during the first year after their establishment. Exhibits filed by complainants of actual shipments during 1927 and 1928 to points in adjacent southwestern States, to which their baskets move freely, show car loading as follows: (1) 16 shipments in 36-foot cars, including one car 33.5 feet long, aggregated 4,347 dozen baskets, or about 272 dozen to the car. At the weight per dozen above stated, this means an average weight per car of 11,968 pounds; (2) 36 shipments in 40-foot cars, aggregated 13,306 dozen baskets, or about 370 dozen to the car; which means an average weight of 16,280 pounds per car; (3) 12 shipments in 50-foot cars, aggregated 7,701 dozen baskets, or about 642 dozen to the car, which means an average weight per car of 28,248 pounds. Defendants show 12 shipments from Trinity, Tex., in Group F, to Guadalupe, Calif., all in 40-foot cars, the average weight of which was 17,645 pounds, or about 1,365 pounds more than was shown by complainants for similar cars. The present commodity rate on baskets of the kind concerned from Group F to California destinations, Brawley to Newcastle, inclusive, is $2.25, minimum, 16,000 pounds, for cars of all sizes, and from Group E points, $2.40. These rates are published under the general heading of "woodenware, fiberware," which embraces about 110 other articles made of wood or fiber, such as ironing boards, lapboards, boxes, dishes, handles, measures, pails, yardsticks, and the like. Based on defendants' showing of the average weight per 40-foot car, and the average distance of 1,760 miles, the present rate from Longview to California points would yield average earnings of $397.01 per car, or less than 22.6 cents per car-mile Baskets and hampers are light and bulky articles. Of equipment owned by the carriers the 40-foot car is perhaps the average and most desirable length. Exhibits of actual shipments show average loadings as above. These exhibits also suggest that the 40-foot car is the type ordinarily available and used for basket shipments. As above pointed out, the present minimum of 16,000 pounds is not subject to rule 34, which varies the minimum with the length of the car. Complainants seek a basis of rates equal to the present lumber rate of 76.5 cents from Longview to southern California, subject to a carload minimum of 30,000 pounds. The record shows but 12 shipments, those loaded in 50-foot cars, which averaged in excess of 28,000 pounds. A 30,000-pound minimum is not justified on this record, and complainants' request must be interpreted to mean that they desire a charge per car not in excess of that resulting from a rate of 76.5 cents applied to 30,000 pounds, or $229.50. However, defendants submit that loadings of lumber average about 52,000 pounds per car, which, at the 76.5-cent rate would result in earnings per car of $397.80. The latter earnings are substantially the same as the average earnings on baskets under the rate in issue. Complainants call attention to numerous of our decisions concerning rates on lumber and lumber products taking the same rates, but fail to take notice of the average weight of shipments of those commodities, as shown in the decisions referred to. Among the cases cited is Lumbermen's Exchange v. S. P. Co., 104 I. C. C. 538, wherein a rate of 51 cents was prescribed from San Pedro, Calif., to Deming, N. Mex., and El Paso, Tex., for distances of 750 miles and 838 miles, respectively. In that case it was shown that the average weight of the lumber shipments there considered was about 52,000 pounds, and, based on the mileage there given of 820 miles from Los Angeles to El Paso, the 51-cent rate yields earnings of $265.20 per car and more than 32 cents per car-mile. There is a rate on baskets of $1.50, minimum 24,000 pounds, from Seattle, Wash., to Longview and intermediate points. This rate, for the extreme haul of 2,500 miles, yields but 14.4 cents per car-mile and, without further showing, is of little value in arriving at a basis of reasonable rates. Defendants also maintain a rate of $1.50, minimum 24.000 pounds, from California points to Longview. This latter rate, for 1,760 miles, yields earnings of $360 per car and 20.5 cents per carmile. The latter rate was established in view of water competition through the Panama Canal and there is no presumption or proof of its reasonableness. In Cummer Mfg. Co. v. Atchison, T. & S. F. Ry. Co., 152 I. C. C. 601, we had under consideration the rates on round-bottom fruit and vegetable baskets from Paris and Mineola, Tex., to nine California destinations, to which rates were prescribed as follows: $1.63 to Thermal, Indio, Coachella, Brawley, Bernice, Blythe, and Calexico, $1.76 to Bakersfield, and $1.93 to Stockton, minimum 16,000 pounds, subject to rule 34 of the consolidated classification. The record in the instant case warrants findings in conformity with those made in the Cummer case. We therefore find that the rates assailed on fruit and vegetable baskets and hampers, in carloads, from the Texas points of origin in westbound transcontinental rate Group F to the California destinations here concerned are, and for the future will be, unreasonable to the extent that they exceed or may exceed the rates hereinafter specified to the following points, as representative: To points in southern California, such as Brawley, Bernice, Blythe, Therinal, Indio, Coachella, and Calexico, $1.63; to Bakersfield and points in the vicinity thereof, $1.76; to Stockton and points adjacent thereto, $1.93; and to points north of Stockton in the Sacramento Valley, including Newcastle, $2; carload minimum 16,000 pounds, subject to rule 34 of the consolidated classification.. We further find that from the Arkansas points of origin here concerned, situated in westbound transcontinental rate Group E, the rates assailed are, and for the future will be, unreasonable to the extent that they exceed, or may exceed, the rates hereinabove found reasonable from points in Group F to the destination territory herein described by more than the differentials at present in effect on the commodities named between these respective origin groups. An appropriate order will be entered. 157 I. C. C. No. 20086 SUMTER PACKING COMPANY v. ATLANTIC COAST Submitted August 14, 1928. Decided September 4, 1929 1. Carload rates on fruits and vegetables, in metal cans in boxes or barrels, from Sumter, Manning, Summerton, and Greeleyville, S. C., to certain destinations in Ohio, Indiana, eastern Illinois, Kentucky, Tennessee, and in Kansas-Missouri territory as described in the Consolidated Southwestern Cases, found not unreasonable in the past, but unreasonable for the future. 2. Carload rates on the same commodities from the same origin points to certain destinations in Iowa, Nebraska, western Illinois, Wisconsin, and to certain Kansas-Missouri destinations outside of the Kansas-Missouri territory described in the Consolidated Southwestern Cases, found not to have been or to be unreasonable. 3. Carload rates on the same commodities from the same origin points to West Plains, Mo., and Winfield, Wichita, and Emporia, Kans., found to have been and to be unreasonable. 4. Less-than-carload rates on the same commodities from the same origin points to these same destinations found not to have been or to be unreasonable except that prior to February 1, 1929, those rates on vegetables, in metal cans in boxes or barrels, within southern territory, found unreasonable to the extent that they exceeded the contemporaneous fourth-class rates on like traffic from and to the same points. 5. Reasonable rates prescribed for the future and reparation awarded on certain past shipments. Complainant not shown to have been damaged by any undue prejudice which may have existed. 8. Fourth-section relief denied. 7. Appropriate orders entered. J. T. Preston for complainant. R. B. Gwathmey and H. W. Schaffer for defendants. REPORT OF THE COMMISSION DIVISION 3, COMMISSIONERS AITCHISON, TAYLOR, AND PORTER BY DIVISION 3: Exceptions were filed by defendants to the report proposed by the examiner. Our conclusions differ somewhat from those recommended by him. Complainant, a corporation with principal office at Sumter, S. C., cans fruits and vegetables. It alleges by complaint filed September 8, 1927, as amended, that the rates on fruits and vegetables, in metal cans, in boxes or barrels, hereinafter referred to as canned goods, in |
