ence under general accounts, for maintenance of way and structures, maintenance of equipment, and transportation, nor any portion of traffic and general expenses. While the Douglas-Cochise branch is used to some extent for the handling of bridge traffic between the south and north main lines, the exact amount of that traffic is not shown. Such traffic is not considered important by the applicants, for the reason that it can be handled by way of Benson or Mescal, and the branch line is not essential to its continued movement. The applicants, however, have segregated traffic for the years 1929 to 1931, for which the branch would have been the short route whether it moved by that route or not. The estimated cost of handling this traffic via Mescal is $15,081 for 1929, $11,254 for 1930, and $9,936 for 1931, which amounts are deducted by the applicants from the savings appearing in the above statement in order to arrive at the net saving resulting from abandonment. The protestants contend that these estimates are too low. On the basis of the average maintenance of way and structures for the years 1926 to 1931, the average maintenance of equipment, transportation expenses, and taxes for the years 1929 to 1931, less the average cost of handling bridge traffic via Mescal and the wage reduction which became effective during the early part of 1932, an average net annual saving of $33,560 is shown. This amount is reached by deducting from the average gross saving the average system revenue from branch-line traffic for the years 1929 to 1931. The applicants show that on the basis of all traffic which could have been handled over the branch in bridge movement during the years 1929 to 1931, whether it was so handled or not, the increase in freight charges for the movement via Mescal would average but $1,634.50 a year.

The protestants attack the additional cost of moving the through traffic via Mescal, on the ground that the traffic must be moved over heavy grades requiring helper service while the cost figures shown do not contemplate the use of such service. They also question the prorating of revenue to the branch on a mileage basis. While the use of this method cannot be accepted as an accurate means of determining the value of a branch line as a transportation facility, it is not material in the present case inasmuch as the losses in operating the branch are shown to exceed substantially the system revenue accruing from traffic handled on the branch.

The carload traffic handled on the branch lines, excluding the bridge traffic for the years 1926-1931, ranged from a high of 500 cars in 1928 to a low of 312 in 1931.

The less-than-carload traffic handled ranged from a high of 742 tons in 1926 to a low of 150 tons in 1931.

The two principal classes of traffic handled on the branch lines are products of mines and livestock. The principal products of the mines along the branch are ores containing copper, silver, and gold, with copper predominating. The mining industry generally is seriously depressed and many mines in Arizona are closed. The testimony concerning the potential traffic from mines on the branch lines is conflicting. An expert who testified on behalf of the applicants states that, at present prices of the metals, copper and silver cannot be mined profitably in any considerable quantity. It is pointed out that in 1929 and prior thereto, when metal prices were good, only a small volume of ore was shipped. On behalf of the protestants it is shown that there are large bodies of ore available; that most of the work in the mines up to the present time has been for development purposes; and that when prices again justify it extensive shipments will be made over the branch lines. Another reason for failure to ship ore during the high price of copper in 1929 was the inability to effect a contract with the smelter at Douglas. The applicants' expert contends that even though it be conceded that large volumes of ore are present, much of it is of the character that can not be mined and smelted profitably until some new method of smelting is discovered. He further states that he expects no substantial increase in the price of metals in the near future. The Commonwealth mine near Pearce furnishes the water supply for that town and in the event of abandonment of the line it is feared that the mine will close down, leaving the town without water. The grammar and high schools for the general area are located at Pearce.

The grazing area in the Sulphur Springs Valley has been fully utilized for 40 years and promises no increase of business. A list of ranches owning 10 or more head of stock taken from the 1931 tax rolls shows 136 ranches with an aggregate of 14,456 head of stock. The average distance from the ranches to stock pens on the branch is shown as 13.2 miles, while the average distance to main-line stations is shown as 24.3 miles. This latter distance is based upon section lines and it is admitted that stock could not be so driven. The actual distance by highways would be somewhat greater. The stock is shipped chiefly from Kelton, but some shipments are made from McNeal. The principal market is Los Angeles. The testimony on behalf of the protestants shows that at the present time the shipments consist principally of calves; that it is the practice to drive the cows with the calves to the railroad and after loading the calves to return the cows to the ranch; that it is not practicable to drive mixed herds more than 10 or 12 miles per day and under present conditions the drive can be made in one day, but if the lines are abandoned as proposed herein it will be necessary to drive this stock for distances up

to 35 miles, requiring three days. Furthermore, it will be necessary to drive most of the distance over highways, as the greater part of the area is fenced. In addition to the difficulty of such driving the cattle would suffer heavy shrinkage. Inasmuch as the stock is sold by the pound the shrinkage would seriously affect the price received. A truck owner at Douglas testified that he could make four round trips a day between that city and the ranches, but is not equipped to handle large multiple-car shipments. It is conceded that if trucks were available they would be more satisfactory for the handling of calves, as those animals could be loaded at the ranches, thus obviating the necessity of driving the cows.

About 4,000 acres of land are under cultivation in Sulphur Springs Valley and recently most of the abandoned farms have been reoccupied. Dry farming is not practicable in the flats, but there are possibilities of production by that method along the higher slopes of the mountains. There are some 20,000 to 25,000 acres susceptible of irrigation. Some of the land is irrigated by pumping, the engines being operated by the use of tops of fuel oil received in tank cars, principally from Los Angeles. The production thus far has not been great enough to justify shipments by rail, and practically all farm products shipped have moved by truck. It is contended that the valley cannot be developed agriculturally without a railroad. The applicants insist that the agricultural products can be handled by trucks successfully and that the fuel-oil tops can and will be delivered to points in the valley by tank trucks from Douglas.

There are three small general stores located on the branch line at El Frida, McNeal, and Pearce, respectively. These stores receive fuel-oil tops, grain, salt, lumber, etc., in carloads, but haul their general merchandise in trucks from Douglas.

The Phelps-Dodge Corporation, which owns smelters at Douglas, contends that if the branch line is abandoned existing rates, which are based upon the branch as the short-line mileage, should be maintained. Probably the most important single item of traffic in which this company is interested is sulphuric acid moving from Douglas to Miami, Ariz. This commodity furnishes most of the bridge traffic over the branch, and as it moves under a point-to-point rate, no change in the rate is anticipated.

A representative of the brotherhood of organized trainmen opposing the proposed abandonment stated that the negotiations between the railroad executives and the brotherhoods leading up to an agreement for a 10 percent wage reduction which became effective during the early part of 1932, show that the agreement was intended primarily to stabilize employment and that the proposal of the applicants to abandon the lines here in question constitutes a violation of

the existing agreement between the parties. It is not within our province to pass upon or determine this question.

The Arizona commission shows that it has undertaken to aid the applicants by permitting the closing of certain stations and the suspension of regular train service on the secondary branches. That commission argues that it would be more reasonable for the Southern Pacific to abandon its Hachita-Lordsburg branch than the lines here involved. That matter, however, is not properly before us in the present proceeding and cannot be considered in connection therewith. The Arizona commission also objects to the manner in which traffic statistics have been presented by the applicants, alleging that all the cars moving to and from points on the branch have not been shown correctly. The applicants explain the discrepancy mentioned with the statement that the cars in question are included in the statement for the following year, as shown by the records of the accounting department. In view of the fact that the number of cars involved is small the effect either way is not substantial.

It is apparent from the record that there is not now and will not be in the future sufficient traffic available to the Douglas-Cochise branch to justify its continued operation. Most of the mines have had railroad service since 1903 and all have had it since 1909, yet the reason assigned for failure to ship any substantial volume of traffic is that development work is in progress. Just when the mines will reach the quantity production stage is problematical, inasmuch as the basis of such production is the price of the metals and there is nothing of record to indicate when an increase in price sufficient to justify large-scale production may be expected. During the years 1926 to 1929 an average of 249 cars of ores and concentrates were handled annually over the branch lines. The movement fell off to 115 carloads in 1930 and 90 carloads in 1931. Service on the branch lines is afforded by mixed train three times a week, or 156 round trips a year. Each round trip requires two days. On that basis the movement of ore and concentrates averaged 1.6 carloads per round trip for the years 1926 to 1929, and less than one carload per round trip for the other two years.

The shippers of livestock will suffer greater inconvenience by reason of abandonment than any other class of shippers on the branch lines. It appears clear from the record that the driving of young stock for long distances for shipment is not practicable, and as the facilities in this area for trucking this traffic are limited a readjustment of shipping methods will be necessary. The fact is, however, that important as the branch lines are to the stock raisers, the volume of traffic offered to the carriers is not large. For the years 1926 to 1931 an average of 154.3 carloads a year were shipped,

or approximately one carload per round trip. The average for all traffic, inbound and outbound, for the same period was approximately 423 carloads a year, or 2.71 carloads a round trip of at least 120 miles. The record holds out no prospect of any substantial increase in livestock traffic in the future and the possibility of developing a considerable traffic in agricultural products is too speculative to justify serious consideration. It is obvious, therefore, that the continued operation of the branch lines would impose an undue burden upon interstate commerce.

We find that the present and future public convenience and necessity permit abandonment by the Arizona Eastern Railroad Company and the El Paso & Southwestern Railroad Company, and abandonment of operation by the Southern Pacific Company, lessee, of the lines of railroad in Cochise County, Ariz., described in the application. An appropriate certificate will be issued. Such certificate will become effective 30 days from its date and will contain suitable provision for the cancellation of tariffs.

193 I.C.C.