The record does not disclose the weight density of any of the compared commodities, or the value of hoes or weeders. The value of forks, rakes, and potato or manure hooks defendants concede to be 30 cents per pound, or more than that of the planters, but they suggest that the smaller volume of movement of the planters justifies the higher rating. Other classification considerations being substantially equal, a mere difference in the volume of movement such as shown here does not warrant a difference in classification treatment. Nat'l Asso. Employing Lithographers v. A., T. & S. F. Ry. Co., 136 I. C. C. 201, 208.

Complainant also urges that the less-than-carload ratings are unreasonably high in comparison with the carload ratings, which are fifth class in official, sixth class in southern, and class A in western classifications, minimum 24,000 pounds, subject to rule 34. Nearly all agricultural implements, both hand and horse drawn, are so rated in carloads, with the result that there is no consistent spread between the carload and the less-than-carload ratings; but defendants explain that the less-than-carload ratings are made with reference to the classification characteristics of the individual articles, while for carloads a common basis of ratings, thought to be appropriate for agricultural implements as a whole, are maintained on account of the very extensive movement in mixed carloads.

In Howard Stove & Furnace Co. v. C., B. & Q. R. R. Co., 139 I. C. C. 361, division 4 prescribed a less-than-carload rating of second class for enameled-iron stove parts, other than castings, their value being 22.5 cents per pound and the weight density 29.6 pounds per cubic foot. Second class has also been prescribed as a less-than-carload rating for somewhat lighter articles of about the same value, such as nested paper drinking cups with a weight density of 12.3 pounds per cubic foot and a value of 18 cents per pound. Public Service Cup Co. v. A. C. L. R. R. Co., 118 I. C. C. 697.

We find that the assailed less-than-carload rating in the southern classification is not unreasonable; but that the assailed less-thancarload ratings in the official and western classifications, respectively, are and for the future will be unreasonable to the extent they exceed or may exceed second class. An order for the future will be entered.

No. 21976

SHREDDED WHEAT COMPANY v. NEW YORK CENTRAL RAILROAD COMPANY

Submitted July 10, 1929. Decided September 30, 1929

Carload rates on Shredded Wheat from Niagara Falls, N. Y., to Montreal, P. Q., Canada, for export, found unreasonable. Reparation awarded.

H. E. Wiggin for complainant.

Clyde Brown for defendant.

REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS CAMPBELL, MCMANAMY, AND BRAINERD BY DIVISION 2:

This case was presented under the shortened procedure. No exceptions were filed to the report proposed by the examiner.

Complainant, a corporation manufacturing Shredded Wheat at Niagara Falls, N. Y., alleges by complaint filed February 15, 1929, that the rates charged on 31 carloads of Shredded Wheat from Niagara Falls to Montreal, Province of Quebec, Canada, for export, shipped between April 16 and November 12, 1925, inclusive, were unreasonable and unjustly discriminatory. Reparation is sought. Informal complaint was filed April 6, 1927, and closed August 16, 1928. The evidence is confined to the allegation of unreasonableness. Rates will be stated in amounts per 100 pounds.

The value of Shredded Wheat is not shown. The shipments averaging about 22,678 pounds moved over the New York Central, 455 miles. Charges were collected at the fifth-class rate of 38 cents which was subsequently found to be inapplicable. Undercharges amounting to $421.88 were collected at the applicable fourth-class rate of 44 cents. The date when the undercharges were paid is not shown. Complainant seeks the 38-cent rate. The fourth-class rate and rating are not assailed as such.

The classification rating on Shredded Wheat, not compressed, in official territory was fourth class, minimum 20,000 pounds, subject to rule 34. Defendant's exceptions to the classification named a rating of fifth class, minimum 20,000 pounds, which was applicable generally throughout official territory, but this rating did not apply from Niagara Falls to Montreal. From Niagara Falls to all points in the United States on the line of the New York Central between Niagara

Falls and Montreal fifth-class rating and rates were applicable. On July 1, 1926, fifth-class rating and rates were established on Shredded Wheat to Montreal.

The following table, compiled from exhibits of record, shows the applicable rates to various destinations in official territory as compared with the rate to Montreal:

It is clear that the rate to Montreal was out of line with the compared rates. Defendant introduced no evidence.

Upon this record we find that the rates assailed were unreasonable to the extent they exceeded 38 cents, minimum 20,000 pounds, subject to rule 34; that complainant made shipments as described herein and paid and bore the charges thereon; that it was damaged thereby in the amount of the difference between the charges paid and those which would have accrued at the rate herein found reasonable; and that it is entitled to reparation, with interest. Complainant should comply with Rule V of the Rules of Practice.

BRAINERD, Commissioner, dissenting:

I dissent from this decision for the reasons stated in my separate expression in Cyanamid and Cyanide from Niagara Falls, 155 I. C. C. 488, 502-503.

157 I. C. C.

No. 21182

AMERICAN HIDE & FUR COMPANY ET AL. v. CHICAGO, MILWAUKEE, ST. PAUL & PACIFIC RAILROAD COMPANY ET AL.

Submitted May 16, 1928. Decided October 2, 1929

1. Rates on scrap iron and scrap steel, in carloads, from Sioux Falls, S. Dak., to Duluth and Steelton, Minn., and Superior, Wis., prior to May 1, 1928, found unreasonable but not unduly prejudicial. Reparation awarded. 2. Present rates on like traffic between the same points found not unreasonable or unduly prejudicial.

3. Failure of defendants to establish reworking and sorting-in-transit privilege at Sioux Falls on the same commodity found not unreasonable or unduly prejudicial.

R. D. Springer for complainants.

H. A. Mintz, E. Rigg, O. H. Timm, J. N. Davis, A. B. Enoch, F. D. Adams, R. J. Hagman, E. A. Smith, G. M. Swanstrom, A. H. Lossow, M. L. Countryman, jr., and R. L. Kennedy for defendants.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS AITCHISON, TAYLOR, AND PORTER BY DIVISION 3:

Exceptions were filed by complainants to the report proposed by the examiner. Our conclusions differ somewhat from those recommended by him.

Complainants are corporations and copartnerships dealing in waste materials at Sioux Falls, S. Dak. By complaint originally received April 7, 1928, they allege that the rates charged on scrap iron and scrap steel, herein referred to as scrap iron, in carloads, from Sioux Falls to Duluth and Steelton, Minn., and Superior, Wis., were and are unreasonable and unduly prejudicial. We are asked to award reparation, prescribe a reasonable and nonprejudicial rate for the future, and to require defendants to establish a reworking and sorting-in-transit privilege on scrap iron at Sioux Falls. Rates will be stated in cents per 100 pounds.

Sioux Falls is in the southeastern section of South Dakota. It is served by the Chicago, St. Paul, Minneapolis & Omaha, hereinafter referred to as the Omaha, Chicago, Milwaukee, St. Paul & Pacific, Chicago, Rock Island & Pacific, Great Northern, and Illinois Central. The destination points are grouped and take the same rate.

Complainants compete with dealers at Sioux City and Fort Dodge, Iowa, Omaha, Nebr., St. Paul and Minneapolis, Minn., and at other points. The margin of profit is small due to high transportation and labor costs, the former averaging approximately 50 per cent of the value of the commodity.

Scrap iron moves in open-top equipment and loads heavily. The average loading is not of record, but it is in excess of the minimum. of 50,000 pounds. Scrap iron is a low-grade commodity. No loss and damage claims result from its movement. There are no transportation difficulties incident to this traffic but, on the contrary, complainants contend the transportation conditions are unusually favor able, particularly as the equipment used for the movement of coal from Duluth to Sioux Falls is utilized for the return movement.

The present rate from Sioux Falls to the destination points under consideration is 19.5 cents, minimum 50,000 pounds, and was established on May 1, 1928. Prior thereto it was 23 cents. Subject only to the general rate changes, the latter rate had been in effect for over 17 years. Generally speaking, the rates from Sioux Falls are the same as from Sioux City, except on heavy-loading commodities such as coal and cement. They are the same at the present time on scrap iron. On April 1, 1928, as an aid to the waste-material dealers of Sioux City, the rate from that point to Duluth and other destinations was reduced to 19.5 cents, which through oversight was not established from Sioux Falls, an intermediate point, until May 1, 1928. The carriers have been given authority under our special docket to refund down to the basis of 19.5 cents on shipments which moved during the period April 1 to May 1, 1928.

Complainants state that lump coal is analogous to scrap iron from a transportation standpoint and that the values of these commodities are about the same. They refer to Holmes & Hallowell Co. v. G. N. Ry. Co., 69 I. C. C. 11, in which we prescribed distance rates on bituminous and anthracite coal in the territory under consideration. Under the bituminous scale, the rate from Duluth to St. Paul and Minneapolis is only slightly higher per ton than the contemporaneous rate on scrap iron. That being true, complainants argue, the Holmes & Hallowell scale may properly be the measure of the rate on scrap iron between Sioux Falls and Duluth. From the mere fact that the rates on scrap iron and bituminous coal are the same between two points, however, it does not follow that the rates on the latter commodity should be accepted as a standard by which to determine the reasonableness of the rates on scrap iron between two other points.

In Fargo Commercial Club v. A. & W. Ry. Co., 98 I. C. C. 691, we prescribed a scale of reasonable maximum class rates, hereinafter referred to as the Fargo scale, from the Twin Cities, Duluth, and other points to various destinations in eastern North Dakota and in