ant is not shown to have just cause for complaint in this proceeding, there being no showing that the established rates subject complainant to prejudice that is undue.

The evidence establishes that complainant's rates to destinations within 120 miles of its plant are reasonably related to those of its competitors. Complainant's operations in the years 1941 through 1945 were profitable. Furthermore, in 1945 complainant produced more tonnage at its one plant at Riverton than the Neal Gravel Company produced at its three plants at Attica, Kern, and Cayuga. This company markets 96 percent of its total commercial rail shipments in the Illinois territory herein. The complainant, to support its position that present rates do not reflect present conditions, is relying on changes, particularly the institution of the shortened procedure plan, abandonment of producing points, and the addition of new points. The record is clear that complainant benefited as much from the shortened procedure plan as did other producers, and the principal producing points are still the same as they were many years ago. It is true that complainant does not have commodity rates to some destinations, but that is true of all producing points. On this record complainant has not shown that it is entitled to additional commodity rates. Bearing in mind the production area, the large market area, and the network of railroads in Illinois, a rate adjustment based upon a rigid distance scale would not be satisfactory, from a competitive standpoint, to producers, consumers, or carriers. The evidence of record does not warrant disturbing the present adjustment.

We find that the assailed rates are not shown to have been or to be unreasonable or unduly prejudicial. The complaints will be dismissed.

COMMISSIONER PATTERSON, being necessarily absent, did not participate in the disposition of these proceedings.

274 I. C. C.

No. 26712

RAIL AND BARGE JOINT RATES

Decided June 13, 1949

Upon further consideration, finding in prior report, 270 I. C. C. 591, with respect to prescribed rail-barge commodity rates from New Orleans, La., modified. Order entered requiring establishment of prescribed through routes and joint rail-and-barge rates.

SUPPLEMENTAL REPORT OF THE COMMISSION

MILLER, Commissioner:

In our original report, 270 I. C. C. 591, we found the establishment of through routes and joint rates for barge-and-rail transportation of property in connection with certain water carriers on the Mississippi and Warrior Rivers, their navigable tributatries, and connecting waterways to be necessary and desirable in the public interest and prescribed differentials which we found to be justified between allrail rates and the joint rates in connection with the water carriers. Entry of an order was deferred in order that the respondent carriers might have an opportunity to consider whether they would voluntarily establish routes and rates in substantial compliance with our findings. They have since advised us that they are unwilling to do so. A petition for modification of our findings has been filed by certain commercial organizations at Galveston and Houston, Tex. This petition relates to finding No. 2 (p. 619) involving commodity rates, which contained a proviso that it—

shall not require the establishment of barge-and-rail commodity rate from New Orleans to any destination which shall be lower than the rate on the same commodity from Houston or Galveston to such destination, where the short-line rail distance to such destination from Houston or Galveston is not greater than the short-line rail distance to the same destination from the port of interchange in the barge-and-rail route from New Orleans.

The petitioners ask that this proviso be modified so as to make it applicable also to rates to New Orleans as a destination. This criticism is sound, and the finding will be modified accordingly. Petitioners further urge that the finding be further modified so as to exclude rates between New Orleans and inland points where the shortline rail distance between such inland point and Houston is not greater than the constructive distance between New Orleans and the same

point determined by adding to the short-line rail distance between such point and the port of interchange the "rail equivalent" of the barge service between that port and New Orleans. It is suggested that this equivalent be expressed in constructive rail-miles which would be equated water-miles. There is no evidence in the record upon which such an equation could be accurately determined, and we do not regard the proposed restriction as feasible or desirable. Nor do we see any necessity for including class rates in the proviso, as petitioners ask. Finding 2 is therefore amended to read as follows:

2. We find that joint commodity rates (not including commodities in bulk) from and to points referred to in appendix A and appendix B over lines of the aforesaid respondents should be established in amounts which would bear the same ratio to the all-rail commodity rates from and to the same points as that between the first-class all-rail rate and the first-class barge-and-rail rate from and to the same points, and that the differences between the all-rail and barge-and-rail commodity rates so established would be justified as differentials; provided, however, that this finding shall not affect the present bargeand-rail rates on sugar, in carloads, and shall not require the establishment of barge-and-rail commodity rates between New Orleans and an interior point which shall be lower than the rate on the same commodity between Houston or Galveston and the same interior point where the short-line rail distance between such point and Houston or Galveston is not greater than the short-line rail distance between the same point and the port of interchange in the barge-and-rail route to or from New Orleans.

In appendix A to our report setting forth the prescribed differentials there were a few inadvertent omissions. Our findings are therefore corrected to include the following differentials in addition to those shown:

Between Greenville, Miss., and Grand Rapids, Mich., via Peoria, Ill., 30 cents; via St. Louis, Mo., or Cairo, Ill., 27 cents.

Between Cairo, Ill., and Corpus Christi, Tex., via New Orleans or Baton Rouge, La., 30 cents.

Between Mobile, Ala., and Mason City, Iowa, via St. Louis or Cairo, 27 cents.

Between Vicksburg, Miss., and South Bend, Ind., via Peoria, 34 cents. An order in conformity with our findings will be entered.

COMMISSIONERS SPLAWN, PATTERSON, JOHNSON, AND CROSS did not participate in the disposition of this proceeding.

274 I. C. C.

No. 30008

ALGOMA PLYWOOD & VENEER COMPANY v. ABERDEEN & ROCKFISH RAILROAD COMPANY ET AL.

Submitted March 23, 1949. Decided May 18, 1949

Applicable ratings on plywood boat shapes, unfinished, nested, prior to August 7, 1947, determined. Less-than-carload rating on and since August 7, 1947, found unreasonable. Reasonable rating prescribed. Allegations in other respects not sustained, and reparation denied.

F. N. Trowbridge for complainant.

P.F. Gault and H. H. Johnson for defendants.

REPORT OF THE COMMISSION

DIVISION 3, COMMISSIONERS MILLER, PATTERSON, AND CROSS BY DIVISION 3:

Exceptions were filed by defendants to the report proposed by the examiner, and complainant replied. Our conclusions differ somewhat from those recommended by the examiner. Exceptions and requested findings not discussed in this report nor reflected in our findings or conclusions have been given consideration and found not justified.

Complainant, a corporation, manufactures at Algoma, Wis., plywood, flat or molded in any form or shape in which it is commercially practicable, including forms or shapes for use in the construction of various types of boats. By complaint filed April 20, 1948, it alleges that on shipments prior to August 7, 1947, of unfinished plywood molded boat shapes, nested, in crates, defendants' refusal to apply ratings provided in item 45785 of the Consolidated Freight Classification, and their insistence upon ratings provided in item 4600 thereof, results in prejudice to complainant; and that on shipments on and after August 7, 1947, ratings in item 4607 of the classification were and are unjust, unreasonable, and discriminatory in violation of sections 1 and 2 of the Interstate Commerce Act. We are asked to prescribe a just and reasonable rate basis, and to award reparation.

Defendants were not represented at the hearing. Upon agreement by complainant and permission duly granted, they submitted a verified statement of facts, which has been made a part of the record.

Complainant has been manufacturing plywood molded boat shapes of the type under consideration since 1941. They are made of several

layers of plywood veneer, each layer applied diagonally in narrow strips over a form in the shape of a boat turned upside down, with dry insoluble glue, in sheet form, placed between each layer of veneer. When subjected to air pressure and heat, the several layers of veneer become firmly cemented together, thus forming the bow, sides, and bottom of a shell or boat shape, without transom or stern board, which is used in the construction of boats. The shapes range in length from 9 to 18 feet and are sold by complainant to boat builders. Current prices range from $77 to $136, dependent upon the length. They are shipped in the rough, as taken from the form over which they are built, without sizing, priming, or finishing on interior or outside surfaces, several shapes of varying lengths being nested in one crate. Photographic exhibits of record show crates ready for shipment, which contain from 8 to 10 shapes of different lengths. Less than 1 percent of the shipments have been in carloads.

The dimensions of the crates, the aggregate weight, the weight per cubic foot, and the value per pound of three typical shipments are shown as follows:

Prior to August 7, 1947, the classification contained the following descriptions and ratings: