The navigation district is a corporation organized under the laws of the State of Texas for the purpose of owning and operating port facilities for the interchange of traffic between land carriers and water carriers. The port of Brownsville is approximately 5 miles southeast of the corporate limits of the city of Brownsville. In addition to modern docks, wharves, and transit sheds, the port facilities include approximately 9 miles of railway trackage and some 10,068 acres of land. The port terminal properties are within the Brownsville switching district. There are a number of large industries located in the port area. The Brownsville Chamber of Commerce is an organization of civic, commercial, and industrial interests of the city of Brownsville. The switching to and from the navigation district, as well as the switching within the port area, is performed by the defendant. The tracks in the port area are owned by the navigation district. The defendant uses those tracks under an operating agreement entered into on March 20, 1940. Under the provisions thereof, the defendant agrees to maintain the tracks, supply the rail cars required by the navigation district, and to publish and maintain reasonable rates and charges on the movement of traffic through Brownsville. Brownsville is also an international gateway by rail between the United States and Mexico. Rail traffic moves between the two countries over the international bridge which is owned and operated by the Brownsville and Matamores Bridge Company, hereinafter referred to as the bridge company. Defendant's tracks connect with those of the bridge company a short distance north of the United States approach to the international bridge and the interchange of export and import traffic is effected at this connection. The switching services embraced in this proceeding fall into four general classes and are designated in this report as classes of switching No. 1, No. 2, No. 3, and No. 4. Class 1 movements relate to the switching of carload traffic, other than petroleum or petroleum products in tank cars of private ownership, between defendant's connection with the bridge company and points on the tracks of the navigation district; class 2 concerns the switching of petroleum or petroleum products in tank cars of private ownership between the same points shown for class 1; class 3 relates to the switching of carload freight between defendant's connection with the bridge company and industries, warehouses and team tracks on its line, except those located on the navigation district's tracks; and class 4 relates to the switching of carload traffic between points on Unless otherwise indicated, Brownsville refers to the Brownsville switching district. the navigation district's tracks and industries, warehouses, and team tracks on defendant's line. These classifications do not include certain so-called "low-spot" switch movements which are explained in the second succeeding paragraph herein. A charge of $24 applies on class 1 movements, except when the weight of the load is in excess of 90,000 pounds. In such cases the excess is charged for at the rate of 2.75 cents per 100 pounds. The charge for class 2 switching is $15.71. The charges for class 3 and class 4 switching are, with certain exceptions, $15 and $22.44, respectively. Class 3 movements are also subject to a maximum load restriction of 90,000 pounds but in this instance the rate applicable to the excess weight is 1.75 cents per 100 pounds. Charges for application to the excepted "low-spot" switch movements include a $6.60 charge for a movement between defendant's connection with the bridge company and the United States Department of Agriculture fumigation plant,3 $11.56 charge for switching of cars of livestock between defendant's connection with the bridge company and stock pens located near this interchange point on defendant's tracks; a charge of $8.25 for the movement of cars between Aransas Compress No. 1 (a cotton compress located between the corporate limits of the city of Brownsville and the port properties) and locations at the navigation district; and a charge of $7.50 for intraterminal switching within the navigation district. In addition, charges are also published for the switching of cars to and from defendant's connection with the Texas and New Orleans Railroad Company. The latter charges range from $3.72 to $13.37. On traffic where it obtains a line-haul movement, the switching charges of the defendant are absorbed by the Texas & New Orleans. The above switching charges are in issue only insofar as they are a part of the alleged "lack of uniformity" of the charges that prevail at Brownsville and upon which complainants base their allegation of unjust discrimination under section 2 of the act. Prior to January 1, 1941, the port properties were served by the Port Isabel & Rio Grande Valley Railway Company. In Port Isabel & R. G.V. Ry. Abandonment, 242 I. C. C. 165, decided October 14, 1940, the defendant was authorized to purchase and operate the segment of the Port Isabel & Rio Grande which extended from the connection with the tracks of the navigation district to the city of Brownsville, and to operate over the tracks of the navigation district. Following this Includes movements in both directions. The Texas & New Orleans also serves Brownsville. This carrier does not perform any switching to or from the navigation district and its tracks do not connect with those of the bridge company. Its switching charges are not in issue and are not disclosed. authorization, the defendant published a switching charge of $20 effective January 1, 1941, for the class 1 and class 2 movements. The maximum weight limit of the load was set at 90,000 pounds with a rate of 2.22 cents per 100 pounds for weight in excess of the maximum. Under authorized general increases the charge for both classes of switching became $27.50 on October 13, 1947, and the rate for the excess weight was made approximately 3 cents per 100 pounds. Following conferences with representatives of complainants and other interested parties, this charge was reduced to $22 effective December 1, 1947, but was increased to $24 on January 5, 1948, as a result of further authorized general increases. A reduction was also made in the rate applicable to the weight in excess of the maximum by exempting it from certain authorized increases. This rate became 2.75 cents per 100 pounds on January 5, 1948. On April 6, 1948, the charge for class 2 movements, with no maximum weight restriction, was voluntarily reduced to $15.71. Aside from the above-mentioned excepted movements, the charge for class No. 3 switching was $20 on January 1, 1941, subject to a maximum weight load of 90,000. Under the authorized general increases this charge became $27.50 on October 13, 1947, and the rate applicable to the weight in excess of the maximum was approximately 3 cents per 100 pounds. As a result of the above-mentioned conferences, this charge was reduced to $13.75 on December 1, 1947, and increased to $15 under the further general increases effective January 5, 1948. The basic rate applicable to the weight in excess of the authorized maximum for this class of switching was made 1.11 cents per 100 pounds on February 28, 1948. On class 4 movements, aside from the excepted movements and certain variations made in the interest of uniformity not now important, a charge of $14.96 was in effect on January 1, 1941. No reduction in the charge for this class of switching was made by the defendant and with the subsequently authorized general increases that charge became $22.44 on January 5, 1948. The record does not disclose the exact volume of traffic handled by defendant in switch service at Brownsville. That it is substantial is apparent from the fact that during 1947 some 6,660 loaded cars were moved over the tracks of the navigation district. The greater portion of this traffic moved solely in switch movements. The cost study presented by the defendant, hereinafter discussed, does not include all classes or types of switching performed. It does, however, reflect the traffic volume of the four described classes. During the test period in the study which extended from October 19 to November 1, 1947,5 a Selected because an investigation revealed that October was an average month. total of 438 loaded cars were handled by the defendant. This figure does not include some 31 cars of defendant's materials and fuel oil which are embraced in the cost study. Reasonableness of the assailed charges.-To support their position that the assailed charges are unreasonable, complainants rely principally on a showing of lower charges at competitive points. As a port, Brownsville competes with Houston and Corpus Christi, Tex. For traffic originating at or destined to the Republic of Mexico and moving in all-rail service to or from points in this country, Brownsville competes with other Rio Grande crossings, principally Laredo and Eagle Pass, Tex. Complainants compare the assailed charges of $24, $15.71, and $22.44 for class 1, 2, and 4 movements, respectively, with the charge of $13.36 for what is alleged to be similar switching services to and from the port areas at Houston and Corpus Christi. These same charges, and in addition the $15 charge for class 3 switch movements at Brownsville, are also compared with charges of $11.56 for industry switching and $13.36 for team track switching at Laredo and Eagle Pass. The only instance where the charges for switching at Brownsville are the same as at the competitive points is on the movements to and from the fumigation plants. At all of the Rio Grande crossings, the charge for this switch movement is uniformly $6.60. Complainants do not suggest a proposed reasonable schedule of charges for the services here considered. It is apparently their position that the assailed charges should more nearly approximate, if not equal, the concurrently applicable charges at the compared gateways and ports. They are of the view that these comparisons constitute the best test for determining the reasonableness of the charges at Brownsville, but they have presented little evidence to show a similarity of operating conditions and there is evidence of record that indicates essential differences. Houston is the only one of the compared points served by the defendant. Although no specific figures are presented, the number of cars handled in and through the Houston district, including the port area, is considerably in excess of the number of cars handled at Brownsville. Eight line-haul carriers serve Houston but all of the switching at this terminal is performed by the Houston Belt and Terminal Railroad Company and the Port Terminal Railway Association as agents for the line-haul carriers. This unified terminal service has resulted in a more efficient and economical operation and tends to make the unit cost for each car switched less than if the individual carriers were to perform their own switch Page Transcontinental & Western Air, Inc., v. Civil Aeronautics Board, 336 Transportation of Fruit, 10 I. C. C. 360. 400, 484 Union Iron Works v. New York Central R. Co., 218 I. C. C. 607- 758 361 575 25 524 355 United Railway v. West, 280 U. S. 234. 392 United States v. Baltimore & O. R. Co., 333 U. S. 169..... 577, 693, 759 Utah Shippers Traffic Assn. v. Atchison, T. & S. F. Ry Co., 172 I. C. C. 306. 210 Oregon Short Line R. Co., 147 I. C. C. 581. 210 Utah State Automobile Assn. v. Atchison, T. & S. F. Ry. Co., 92 I. C. C. 376. 581 Van Dusen Harrington Co. v. Northern Pac. Ry. Co., 32 Fed. (2d) 466___ 413 549 810 481 588 182 209 319 654 Western Cement Rates, 48 I. C. C. 201; €9 I. C. C. 644; 213 I. C. C. 611--- 29, 814 Western Horse and Mule Rates, 195 I. C. C. 417. 511 Western Trunk Line Fourth Section Class Rates, 238 I. C. C. 255....... Zenith Dredge Co. v. Northern Pac. Ry. Co., 268 I. C. C. 59...-- 804 361 794 458 497 794 468 817 147 274 I. C. C. |