FOURTH SECTION APPLICATION No. 22170 CLASS RATES IN ILLINOIS Submitted May 19, 1949. Decided July 28, 1949 Authority to establish and maintain interstate class rates for application on less-than-carload or any-quantity traffic between East St. Louis, Ill., and points on the Chicago and Eastern Illinois Railroad in Illinois, when such traffic moves through St. Louis, Mo., without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act, denied. Thomas N. Cook, M. A. Smith, and H. R. Johnson for applicant. REPORT OF THE COMMISSION DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND ALLDREDGE BY DIVISION 2: Exceptions were filed by applicant to the report proposed by the examiner. By this application, as amended, the Chicago and Eastern Illinois Railroad Company applies for authority to establish and maintain interstate class rates for application on certain less-than-carload or any-quantity traffic between East St. Louis, Ill., and specified points on its lines in Illinois, as named in the application, as amended, when such traffic moves through St. Louis, Mo., without observing the long-andshort-haul provision of section 4 of the Interstate Commerce Act. A hearing was held. There was no opposition. Effective September 1, 1946, applicant discontinued the use of its freight station at 500 South Front Street, East St. Louis, which prior to that date was a joint facility of applicant and the Gulf, Mobile and Ohio Railroad Company. The handling of less-than-carload and anyquantity freight, picked up or delivered in East St. Louis, was transferred from that station to a station in St. Louis, at Broadway and Biddle Street, owned by the Rock Island Frisco Terminal Railway Company, applicant being a joint tenant. In order to continue this method of handling the traffic described, which it is asserted is a matter of operating convenience and necessity, and to meet intrastate carrier competition between the points involved, applicant proposes to establish and maintain between East St. Louis and the specified stations on its lines in Illinois, over interstate routes through St. Louis, rates the same as the Illinois single-line intrastate class rates concurrently in effect on like traffic between the same points, and to continue the higher interstate class rates on like traffic from and to St. Louis. Trap cars containing less-than-carload or any-quantity merchandise freight originating at or destined to East St. Louis will not be handled at applicant's St. Louis freight station but will be reworked at a point north of East St. Louis. Applicant still maintains an agent and freight house for the receipt and delivery of less-than-carload and any-quantity freight in East St. Louis at 700 East Broadway, and a shipper or receiver handling freight to or from this station would receive an allowance of 5 cents.1 Prior to the general increases authorized by this Commission in 1946, the class rates from East St. Louis and St. Louis to destinations in Illinois were generally the same. In certain instances, however, due to grouping, the rates from and to St. Louis were higher than the intrastate rates from and to East St. Louis because the latter rates were computed on the short single-line distance. An exhibit filed by applicant shows that the proposed first-class rates by way of St. Louis are from 1 to 3 cents 1 lower than the first-class rates between St. Louis and the specified Illinois points here considered. These differences were increased in 1946 when the interstate class rates within official territory were increased 25 percent, but similar increases in the intrastate class rates have been permitted by the Illinois Commerce Commission. Other than instances where applicant proposes to meet rates of shorter intrastate lines, it would appear that departures would occur only at St. Louis. Pick-up and delivery and Mississippi River crossing services are performed for applicant by the Columbia Terminal Company. The costs to applicant for these services are 12 cents1 for either pick-up or delivery, and 2.5 cents1 for the river crossing, making a total of 14.5 cents1 for handling this traffic to or from the St. Louis freight house. If a shipper or receiver at East St. Louis hauls this traffic to or from the St. Louis station an allowance of 7 cents 1 would be made therefor. Applicant takes the position that the proposed adjustment will not adversely affect any shippers or carriers, and, as previously indicated, that it is simply a matter of operating convenience and necessity which will enable it to use its St. Louis facilities and compete with the direct intrastate lines out of East St. Louis. But the evidence presented at the hearing fails to show in what manner the operating 1 Per 100 pounds. convenience of applicant will be served by handling this traffic through its St. Louis freight station, or that such alleged operating convenience justifies the relief prayed. It does not appear that any economy would be effected. Neither is there any evidence of compelling necessity for the use of the interstate routes through St. Louis. Upon this record we find that applicant has failed to establish a special case for relief from the long-and-short-haul provision of section 4 of the Interstate Commerce Act. The application will, therefore, be denied. An appropriate order will be entered. 274 I. C. C. No. 30177 RAILROAD RATES ON EXPRESS MATTER Submitted May 6, 1949. Decided July 29, 1949 1. Request of the Postmaster General that the Commission undertake to ascertain and report to him rates received by railroads from the Railway Express Agency for carriage of express matter not granted, upon the grounds that it cannot be complied with, that no rates are published or maintained by railroads for the service, that the compensation received is derived from the variable net earnings of the Express Agency under operating agreements by which such earnings are distributed to the railroads under pooling arrangements, and that the provisions of the statute relied upon do not require the Commission to make the investigation requested. 2. Procedure will be initiated to require the agency to prepare and report to us certain information described in the report. Frank J. Delany and Arne C. Wiprud for the Postmaster General. Guernsey Orcutt for certain railroads. BY THE COMMISSION: REPORT OF THE COMMISSION This proceeding arose upon a petition and supporting brief filed by the Postmaster General, based upon provisions in 39 U. S. C. 557, requesting us to furnish him with information as to the revenue received by the railroads from express companies for transportation of express matter, and to ascertain and report to him rates paid the railroads by those companies stated in units of service common to the carriage of express and of non-first-class mail matter, with necessary adjustments to reflect differences in services performed. The purpose of the information is to enable the Postmaster General, in his discretion, to arrange for transportation of the mail matter at such rates. In addition, the Postmaster General requests us to issue an order directing the railroads and the Railway Express Agency, the only company providing express service on the railroads, to report to us, and to maintain currently, all information and data essential to compliance with the section; and for such further action, by order or otherwise, as may be necessary to enable him and the Commission to comply therewith. Upon reply to the petition by certain railroads, 10 in number, we set the request for oral argument which has been had. |