\Ti[;ii-l '.'■•. I'.'l' 



^jjB^m&'■'^M^!&!^^OTroOTBB^^!a^^^!B«reTO^5OT 



r'^ 



Interesting Traffic Developments 



The Chaitanooga Log Rate Case 



l>fS|iito |>n>(iictioii!i tu tlif i'i>iitiiii\ tlx' liitcrHtati' I'uiiiiiu'rof Coin- 

 mission riik><l that iti< furiiier fiii(lin);s in tlio Chut tiinooKii lo); riito 

 i-aw .shuxM Ih> moilifieil. St'vtTiil iiii|>iii'tniit roiluc'tions in ruto were 

 iinlfroil iiuil n ohan^i' niiiili- in tin- inininiiini ciirluiid weijjlit. Tlic 

 oriijinnl east' wii« n-oponi'il for lit-iirin^ Miiv 2.S, 1914. Tho riitt's 

 oslalilislu'.t :it ttiiit tiiiir wore rontinneil in i-fTiH't pending tlip rr- 

 licnnnt;. 



Till' 0|iuiMiii M.i> writtpn by (.Minirniiin MoClioiil. In part lie say.i: 



rriilcstnnts ninki' ilii'si' nlli'KiillniiK In tiK'ir |ic'iltli>n fur ii ri'lii'iirlni: : 



1. That till- oimmilsslnn I'rri'd In slallni; lliiil tlii' Hllumliin iil I'liiitiii 

 nonK» »ii« illlTi'rcntlnti'd from thiil iit Miniplils iis dlsi'loscd In Miiy Itnis. 

 V. Y. & M. V, R. K. romiinny. '.'i; I. C. C. :!2:;. Iiy tin- fml Unit lln' 

 AInlmnm Crrnt Soutliprn Imndlcs no ontl'ound Hliliiini'nts iif InniWrr mnili' 

 from loss hnuled by It to ChnttnncH>)::i. 



■J. Thiit the rates proscribed Inrrense (lls|ir(>|i(irlliiniilely as tbe distance 

 Incr'^nm^, contrary to the Renernl rule tlint rules slionid IncrenKi' less 

 rapidly ns tlie distance Increases. 



:>. That no consideration shmild have lieen jt'ven li> the fael that 

 re.si>ondenf8 rates include dellveiy t" polnls .in tlii> I'hnltannoga ISelt 

 nallwa.v. 



4. That the commission erred in lindlnK that the trnOic "must lienr 

 the return of the equipment empty" and that "an iiverage trip for a cal- 

 ls ten dnyn." 



.". That Impairment of the value of prolestanis' Investments in timlier 

 and eipiipment should have lieen Riven greater consideration and welsht. 



i;. That the comparative statement of rales on logs and other eom- 

 inodltles embodied in our orisinul report was incorrect and without evi- 

 ■dentlary value. 



7. That the commission erred in statlnc that the "proposed" rates 

 ■.?om|mred favorably with rates of other mads servins ChattannoKn and 

 with rales to other points where tralfle eondltiims appi'ari>(l to lii> siniil:ii-. 



Tiio eonimissioners dispose of each of the ' allegations acconliii}; 

 to the opinion of the commission and reach these conclusions: 



1. Tlieri- is nothing of record to disprove respondent's assertion that 

 It In no way shares in the lumber tnilhe revenue of the Cincinnati. New 

 Orleans .t Texas Paclflc and Southern. 



i:. Kvid'nee indicates a constantly ineicasluK length of haul and that 

 protestant-i are chiefly interested In rates for distances of 200 miles and 

 over. The reasonableness of the present rates will be further consldi'red 

 hereinafter. 



.".. The record does not disclose to what exti'nt Hell Hallway delivery is 

 requiretl and we do not attach much Importance to this contention. Ii 

 Is a universal rule for carriers to accord free delivery on their own 

 terminals of traffic upon which they receive a line haul, and while thi> 

 fact that this rule Is observed by the Alabama (Jieat Southern was referred 

 ti> in our ••rislnal reimrt it appears to be without special signilieanee. 



4. I'rotestants filed exhibits showing an average of approximately four 

 days from the date of the bill of lading to the date of unloading of 407 

 cars of logs shipped from points over :;00 miles distant from Chattanooga. 

 These exhibits are Inconclusive of the average time per trip of cars used 

 in the long t raffle, as tliey cover only the loaded car movement, do not 

 show detention at the loading point prior to the issuance of a bill of 

 lading, or Include the date of unloading. One of respondent's exhibits 

 contains a record of 220 cars received .'it Chattanooga during the months 

 of May and .Tune, ini3, and May, ini4. from which it appears that the 

 average lime per trip was 0.7 days. This exiilbit covers cars moving 

 fnmi near-by as well as from long distance points but only a small pro- 

 l>ortion of all log shipments handled. The time cars were placed in 

 motion to till the .shipper's order and the time of release were used to 

 ascertain the time per trip. TJpon all of the facts of record It .seems 

 probable that the average time per trip is not less than seven days. 



5. It w-.is shown that shipments of logs to Chattanooga have materially 

 decreased since the new rates became effective, that certain mills have 

 closed, and that others are not running on full lime, it appears, how-iver. 

 that throughout the South the lumber industry has suffered severely as a 

 result of the European war and from other causes, and that the depres- 

 sion at Chattanooga Is perhaps no greater than at Memphis and other 

 lumber manufacturing centers. I'rotestants' conti'ntions in this regard 

 were strongly emphasized at the original hearing and have received full 

 consideration. However reluctant I be coinmisslon may feel to sanction 

 changes in rates which tend to impair or destroy the value of Investments 

 made in expectation of their continuance, it can not on that ground deny 

 to carriers the right to' charge rates which are just and reasonable. 



0. Protestants' exhibit seems to afford a better comparison of tlie 

 earnings p.r car on logs with the earnlns:s per car on other commodities 

 than the statement embodied in the lirst nporl or the revised exhibit filed 

 t>y respondent, both of which are ba.sed on carload minimum weights. 



7. It appears that competition of local -mills and the location of 

 •Chattanooga with reference to the principal Inniber markets exert a potent 



—28— 



liilliieiii-e. l,<iKH Hr<' niovid norlbutird toward the iiltlinat'' di-ntlnnilon of 

 the prmluci Instead of to Clint taimogu. 



Our coneliiKlon upon tin- whob- record is that reKponib'iil should not be 

 required to re-establish the rales In effect prior to .May 2'J. I'.il I. which 

 averaged low-i-r than the net rates t.t .Meinpliis. Nasbvllle. and Olilo rlvi-r 

 croHslngs of the lines servliiK tliose polntn. but that the present rates for 

 certain dlHlances siiould be redtn-ed. I'lider the present scale a rate of 

 4'/j centH applies for distances of til to 7ii inlb'S, ."Vj cents 71 to I in 

 miles, (Ii/j cents 141 to 170 miles, 7 cents 171 lo ISO inlleH, H ivntn INI ti. 

 100 miles, and S>;^ cents 101 to 'J7,*i tiillcN. The abrupt tnerenw^s from 

 4<ij to '>Vj cents and from tlVj lo K<4 cents are lncuni>lHti<nt with Ihi- 

 reinninder of the scale, and the record Kiiggests no reiiHon for blanketing 

 tile ,'1 Vj-ci'iit and the .si,j-»-ent rales over siicli long diHtniiceK. The pro- 

 posed rates named In the following table would seem to afford a more 

 eonsisient and eqnltnhb- adjustment : 



I'resenl Pi-r ton I'roposecl Per ton 



rales. mile. rates. mile. 



Cents. .MIIN. c.'uls. Mills, 



(i.'i miles and over (iO miles 4 '^ l.i..'<t 4 Vj I-'t.^-t 



70 miles ami over li.-. mlh'S 4 '/j 12. S.-. 4Vj 12 K.-i 



75 inlb-s and over 711 miles .'.t.. 14.IM; 4Yi 12.00 



SO miles and over 7r, mllcA ,-i V. l.'t.7."i ."> 12..'>ii 



sr, miles anil over so miles r,>/. 12.!I4 .". 11.70 



!I0 miles and over s.". miles .TZ 12,22 .''. 11.11 



!•.'> miles and over lio miles .'i y. ll.Til !>% 11.57 



100 miles and over '.C, miles ,-iV. 1100 Uy, 11. on 



110 miles and over 100 mills .•% lO.OfI ."iii ">oii 



120 miles and over 110 miles (I 10.00 ti In.lH) 



l.'io miles and over 12ii miles (i 9.2:i (! 0.2:! 



140 miles and over 1.10 miles (I HXtl tl S..'i7 



mo miles and over 140 miles n% S.6<t «y. S.OIt 



100 miles and over I.IO miles CV. 8.12 «% s.12 



170 miles and over ICO miles OVO 7-64 «% 7.04 



ISO miles and over 17o miles 7 7.77 7 7.77 



100 miles and over ISO miles « .S.42 7 7.:i7 



200 miles and over I'.iii miles 8«/j 8.50 7 7.00 



210 miles and over 201P miles SVj 8.00 7V. 7.14 



220 miles and over 210. miles I*V^ 7.72 TVj O.S'i 



2:10 niibs and over 22ci miles Xi^ 7.39 7^! 8-f>- 



240 miles and over 2:U) miles SV. 7.ns 8 «.«<; 



2.'iO miles and over 240 miles 8'/- 0.80 s 0.4O 



200 miles and over 2.'.o miles SVj <1.54 HV- ''•■'<* 



270 miles and over -JiiO miles 8V. <'>.:to A\i, 0..'!ii 



27.'. miles and over 270 miles 8Vi O.IK SMi 018 



We therefore tlnd that the present rates per 100 pounds for distances of 



71 to 00 miles, inclusive, and ISl to 2.'j0 miles. Inclusive, are unrea- 

 sonable and for the future should not exceed the proposed rates shown In 

 the above table. 



Our ordi'r in the original proccediUK prescribed a carload minimum of 

 40.000 pounds for distances up to and including 140 miles and SO.iioii 

 pounds for distances greater than 140 miles. The record shows that tin- 

 average weight per car of all logs shipped to Chattanooga over respondent's 

 line during 1913 was 52, .509 pounds. Witnesses for protestants teatilied 

 that the average per car of their shipments ranged- from 54.000 to 58,000 

 pounds. It is our conclusion that a minimum carload weight of 4O.111111 

 pounds for the distances herein involved w-oiild be rea-sonable. 



In tlie matter of lumber rates from Wilson, Ark., anil other points 

 to (,'incinnati and other points the commission ruled that the ]>ro- 

 jioseil withdrawal of through rates on lumber from points of origin 

 in Arkansas to Louisville, Cincinnati ami Evansville are justified. 

 The suspension order that had been issued in this ease was ordered 

 vacated. 



The commission reviewed its findings as follows: 



Victoria and Armorel. .\rk.. on the Lake City & Kastern. are the only 

 points of origin involved at which sawmills are in operation. One protest- 

 ant, the Three .States Lumber Company, operates a mill at Iturdette, .\rk., 

 a local station on the Blythevilie. Burdette & Mississippi Ulver Hallway, 

 west of Burdette .Tunction, and is interested in tlie rates from Burdette 

 .lunctlon to the extent that they constitute factors in combination rates 

 from Burdette to the destinations involved. As the rates from the points 

 of origin hear a fixed relationship to each other and the evidence Is directed 

 chiefly to the rates from Victoria, tliat point may be taken as representa- 

 tive of ail the points of origin involved. .VII rates are stated in cents |>er 

 100 pounds. 



Victoria is 1 mile from Wilson. Ark., a junction of the Lake City & 

 l-;aslerii with the Frisco. The present rates from Victoria are, 13 cents 

 to Kvansvllie, .■?49 miles: 14 cents to Louisville, 430 miles; 17 cents to 

 Cincinnati, 560 miles. These rates were first established July 14, 1910, 

 when the Wilson Northern Uallway, since leased by the Lake City & 

 Kastern, owned and operated the line reaching Victoria. They were can- 

 celled May 1, 1912, following our decision in The Tap Line cage, 2.'! 

 I. C. ,C., 549. 



Protestant, Lee Wilson & Co.. operates a mill at Victoria, approximately 

 one-half mile from the Mississippi river. Prior to May 28, 1912, this 

 protestant had rails from its mill to the river and was barging lumber 

 to the destinations Involved. On May 28, 1912, the present rates weii- 

 re-cstabllshed after negotiations, but with the understanding that Ij<-e 

 Wilson & Co. would discontinue the use of barges and would ship lumlier 

 from Victoria destined to Evansville. Louisville, and Cincinnati over 



