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sought. There is no support for the alleged violation of section 4, and it need not be further considered.

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Except for rates applicable under an aggregate rule, hereinafter explained, the assailed rates are the column 32.5 rates (32.5 percent of first-class rates) applicable to "houses or buildings, portable or fabricated, noibn, wooden or wood, and iron or steel combined, k. d. or in flat sections, or wall roof or floor sections, *. loose or in packages," minimum 24,000 pounds, subject to rule 34. Column 32.5 is the rating on these articles in the three major classifications. In the complaint as filed the complainants sought rates on the same basis as in effect on lumber, but at the hearing and on brief they modified the prayer for relief by asking for rates made on the same basis as approved in Texas Pre-Fabricated H. and T. Co. v. A., T. & S. F. Ry Co., 272 I. C. C. 61. In that proceeding division 2 found the rates on prefabricated or portable wooden houses from Dallas and Houston, Tex., and Tulsa, Okla., to designated points in Tennessee, Wisconsin, Colorado, Wyoming, and New Mexico, unreasonable in the past and for the future, to the extent they exceeded 25 percent and 20.5 percent, respectively, of first-class rates in effect prior to August 22, 1947, subject to the general increases authorized on lumber and building wood-work and millwork. Reasonable minima fixed were 24,000 pounds for cars 40 feet, 7 inches or less in length, and 30,000 pounds for larger cars. In a suspension proceeding embraced in the report, the division approved as reasonable, rates on the described basis from points in Texas and Louisiana on the Texas and New Orleans Railroad to the South and to Jeffersonville and New Albany, Ind. On November 10, 1948, rates as described were made effective, Rates on the same basis were also published for application throughout southwestern territory. Complainants' proposal is to apply the same percentages to the first-class rates from and to the points here considered in effect prior to August 22, 1947, subject to the same minima and general increases.

Articles manufactured by Lumber Fabricators, Inc., one of the complainants, located at Fort Payne, include nearly all articles of wood (except inside doors and trim materials) necessary for a complete house, viz: wall panels, windows (glazed); outside doors, (windows and doors being enclosed, in wall panels); floor joists, wall studdings

2 August 22, 1947, was the effective date of a general revision of class rates, subject to classification ratings, within and between official, southern, and western territories. Rates within official territory were increased 10 percent, and the rates within the other territories and between those territories and official territory were reduced 10 percent, and as thus changed all of the rates were subject to an increase of 22.5 percent. Rates subject to exceptions ratings were not included in these changes.

and rafters. Shipments also include as authorized by tariffs, necessary hardware for construction of the house, such as nails, screens, door hinges, knobs, and locks; also building paper, and oak flooring, in random lengths, in bundles. The flooring is processed and ready for laying. The panels are planed and given a priming coat of paint. Other articles of wood not a part of the panels are cut to length. The panels and bundles of material cut to length are marked so as to show where they are to be used. Door hinges are attached, locks are installed, and windows are fitted with springs to facilitate raising and lowering. Nails not used for making of the panels are shipped in kegs or bags. The shipments do not include roof shingles, or plumbing, heating, or electrical equipment. Sometimes prefabricated material for garages is shipped along with the house material. An inspection made by defendants of 44 carloads which moved from Fort Payne to Grand Rapids and Traverse City disclosed that numerous shipments also included window shutters, window boxes and gable trim. The average weights and proportions of the component parts of four houses of different sizes, with garage, made by the complainant named are as follows:

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The shipments are generally made in 40-foot cars. larger type of house, with garage, requires the use of 50-foot cars. Loss and damage claims are small.

Within southern territory, by exceptions to the classification, the railroads maintain a column 20 rating (20 percent of first-class rates that are subject to the exceptions) on "building frames or panels," minimum 30,000 pounds. Prior to August 22, 1947, rates so made from the origins named in the complaint to Ohio River crossings, plus the rates beyond, which are on the column 32.5 basis, produced rates less than the joint through rates assailed, except to Minneapolis. The same is true as of the present in respect of the rates from Mendenhall to Columbus. On the date named, in conformity with the general revision of class rates described in footnote 2, the interterritorial through rates were reduced 10 percent and the column 32.5 rates applicable

within official territory were increased 10 percent, while the column 20 rates in effect within southern territory remained unchanged. As a consequence, except from and to the points last named, the joint through rates were and are no longer higher than the combinations. The tariffs contained an aggregate rule which provided for displacement of the one-factor joint rates by the combinations when the latter produced lower charges. The commodity description to which the column 20 rates apply within southern territory does not include lumber cut to length, in bundles, or window shutters, window boxes, or gable trim. The column 20 rating was established, effective June 25, 1940, in order to enable shippers at distant points to meet the competition of portable mills at or near construction sites.

The following statement shows the averages of the assailed column 32.5 rates to the eight destinations named in the complaint, and averages of the rates sought by complainants:

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The averages of the assailed column 32.5 rates and distances are compared in the following table with the rates on prefabricated houses for the same distances (1) within southern territory, (2) within official territory, and (3) within southwestern territory, zone III, the latter rates having been prescribed, as stated, in Texas PreFabricated H. and T. Co. v. A., T. & S. F. Ry. Co., supra.

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1 Average of rates as shown in complianants' exhibits. Defendants in official territory on brief show that these rates average 76, 89, and 91 cents, respectively.

Complainants further show that the assailed column 32.5 rates exceed the corresponding rates on lumber; from Fort Payne by 50.5 percent, from Meridian by 67.5 percent, and from Mendenhall by 73

percent. The averages of the assailed column 32.5 rates, the rates sought by complainants and the rates on lumber from and to the same points are shown below:

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It is defendants' position that the differences between the levels of the rates on prefabricated houses and on lumber are justified by the differences in loading and value. The loading of the prefabricated material is much less than that of lumber. In 1947 the average loading of the former throughout the country was 38,160 pounds, and of the latter, 66,100 pounds. The average value at points of manufacture of prefabricated houses in official territory is shown by defendants to be $214.52 per ton, as compared with an average value of $51.62 per ton for lumber. The average value per ton at Fort Payne of the prefabricated houses of complainant Lumber Fabricators, Inc., is $170.08. Its houses are prefabricated to a lesser extent than those of other manufacturers. The complete finished house in which prefabricated parts are used is of about the same quality as houses built according to conventional methods, but the former has commanded somewhat higher prices owing to the lesser time required for construction.

Defendants compare the ton-mile and car-mile yields from rates on prefabricated material and on lumber, as follows:

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The following table is illustrative of comparisons submitted by defendants between the rates and yields per mile on prefabricated house material and those on other articles of wood:

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Defendants rely also upon comparisons between the assailed rates and rates on various articles of wood which have been approved or prescribed by the Commission. The following statement is illustrative of these comparisons:

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Ichabod T. Williams & Sons v. Atlantic Coast Line R. Co., 160 I. C. C. 631.
Southwestern Rates, 173 I. C. C. 662.

4 Wooden Handles and Handle Material, 185 I. C. C. 543.

Building Material in the South and Southwest, 192 I. C. C. 267.

Jefferson Woodworking Co., Inc. v. Akron, C. & Y. Ry. Co., 156 I. C. C. 701.

1 Maryland Distillery, Inc. v. Baltimore & Ó. R. Co., 232 I. C. C. 179.

8 Baskets and Hampers in Southern Territory, 211 I. C. C. 139.

The following table, compiled from exhibits submitted by defendants, compares the averages of the rates and yields per car and per car-mile from rates on prefabricated houses from Mendenhall to points in Michigan, Ohio, and Minnesota, with those on other commodities to or from points in the States named from or to points in Mississippi.

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