For historical note, see vol. 11, p. 8954.

Volume 11-p. 8954

5. In general.—

Competition; effect upon rates: Competition often is the process by which the public obtains reasonable rates.New Automobiles in Interstate Commerce, 259 I.C.C. 475(532).*

If costs of one transport agency are so high as to prevent profitable operation at rates which permit the competing agency to perform satisfactory service to the public and to earn a good profit, the high-cost agency in meeting rates of the low-cost agency is attempting to compete on a non-profit basis. To direct the low-cost agency to increase its rates would be regulation in interest of the high-cost agency rather than in the public interest.-Id., p. 536. Within reasonable limits the public is entitled to the reduced rates brought by competition.-Id., p. 539.

State statute providing that motor contract carriers competing with common carriers and rendering substantially similar service may not charge less than such common carriers was not for the benefit of contract carriers, but to protect common carriers from indiscriminate competition. General Mills, Inc. v. Steele, 154 Fed. (2d) 367(374-5).

Carriers subject to regulation must be protected against competition of those who would seek to escape regulation by means of equipment leases, contracts, or other devices.-Transportation Activities of Wartena, 44 M. C. C. 131(140).

The commission's minimum-rate power where destructive competitive practices tend to affect motor-carrier transportation adversely, should be invoked 10861

Volume 12-p. 10109

if the national transportation policy is to be observed.-Motor Salt Co. v. Alton R. Co., 264 I. C. C. 71(89).*

Ex-barge traffic cannot be averaged with ex-rail transportation and accorded the same out-bound proportionals if inherent advantages of each are to be preserved.-Grain Proportionals, Ex-Barge to Official Territory, 262 I. C. C. 7(31).*

Costs: Costs on the fully distributed basis are lower for common-carrier trucks carrying four automobiles than rail costs for distances up to 330 miles, where costs for both are the same, while for greater distances trucking costs become progressively higher than rail costs. New Automobiles in Interstate Commerce, 259 I. C. C. 475(528).*

In practically all instances costs for tow-bar service are lower than out-ofpockets costs for any other agency, but the service cannot be considered as entirely comparable with that of other transport agencies.-Id., p. 529.

The truck-away carrier is the fitter agency up to 125 miles, the rail carrier beyond 175 miles; between these distances it is a matter of indifference from a cost standpoint, as to which agency transports the traffic.-Id., p. 529.

Costs in rate territories compared, §1(5)(a), n. 261.

Empty cars in nonrevenue service: Applicant's desire to move empty cars in nonrevenue service between points for which it has no authority to transport loaded freight cars, is in the interest of efficient and economical operation. Empty cars in possession of a carferry operator under per diem arrange

ments with connecting railroads open up no new routes for transportation of revenue freight.—Foss Launch & Tug Co. Extension, 260 I.C.C. 525 (544)*.

Exemptions: Finding of the commission that exercise of its jurisdiction over transportation between Government buildings on the Virginia side and the District of Columbia is necessary to carry out the national transportation policy, sustained.-United States v. Capital Transit Co., 325 U.S. 357 (361)*.

biles in Interstate Commerce, 259 I.C.C. 475(539)*.

See also Costs, above.

Even though there is adequate service by rail and highway, it may be questioned whether that fact alone would warrant denial of the water-carrier application. That there are certain inherent advantages in transportation by water was observed by the commission in 260 I.C.C. 589.-Commercial Barge Lines, Inc., Extension, 260 I.C.C. 701 (709).

Interchange: Seatrain and the national transportation policy, see United States v. Pennsylvania R. Co., 323 U.S. 612 (616-617)*.

Ry. Co. Exemption, 44 M.C.C. 789 (793)*.

The policy reflected in the exemption in §203 (b6) is in accord with the general policy to favor and promote the interests of agriculture.-Monark Egg Corp., 44 M.C.C. 15 (18)*.

Exempt and non-exempt commodities, in chartering operations, §309 (f), n. 35. Inherent advantages preserved: See also §15a (2), n.10; §216(i), n. 3.

If rates on ex-barge traffic are adjusted "in view of its particular circumstances and under the provisions of the act designed with reference thereto," barge-rail traffic will have a fair opportunity to move in competition with lake-rail and all-rail traffic, thus preserving the inherent advantages of barge transportation.-Grain Proportionals, Ex-Barge to Official Territory, 262 I.C.C. 7(29)*.

Varied, spasmodic, water contract carrier operation, 326 U. S., p. 199..

Freezing rail and motor-carrier rates on a common level would allocate additional traffic to the motor carriers, because of their door-to-door service and other advantages.-New Automo

Policy of Congress: The main purpose which Congress had in mind in enacting the national transportation policy was to bring about a greater degree of equalization, harmony, and uniform

rial rate structures of the countryClass Rate Investigation, 1939, 262 I.C.C. 447 (692)*.

In construing the declaration of the national transportation policy of Congress and the Ramspeck Resolution, or §5(b), the commission did not act upon the assumption that the 1940 changes altered the basic principles governing its action. Sustained.-State of New York et al v. United States, 65 Fed. Supp. 856*.

Congress, in enacting legislation for regulation of interstate motor carriers did not attempt to give common carriers any preference over conract or private carriers; contention that Congress intended that the nation's transportation system should be fostered, developed, and built around a commoncarrier system, not sustained-Williams Bros. Corp., 44 M.C.C.557(564)*.

The reenactment of §213 as a part of §5 and the restatement of the national transportation policy without any change suggesting any dissatisfaction with the commission's established administrative construction thereof must be taken as a definite approval thereof, which speaks strongly against any sig

nificant departure therefrom in the future.-Rock Island Motor Transit Co. -Purchase-White Line, 40 M.C.C. 457

(468)*.

Private-common carrier: Dual private-public operation within a single territory, with a mixture of services and of traffic, would make it possible for applicant to aid or support one business with the other and to use the profits of one to competitive advantage in the other. Such proposal is not in harmony with the public interest or purposes underlying the national transportation policy-Shoemaker, 44 M.C.C. 765 (768),

Restriction, commodity: Operation on railroads should not be limited by the commission to the carriage of particular commodities.-Wheeling & L.E. Ry. Co. Operation, 261 I.C.C. 453(456)* [citing Northeast Oklahoma R. Co. Construction, 252 I.C.C. 273 (285).] ...

Rule of rate making: The rule of rate making under the 1940 act means that no carrier should be required to maintain rates which would be unreasonable, judged by other standards, for the purpose of protecting the traffic of a competitor.-New Automobiles in Interstate Commerce, 259 I.C.C. 475 (536)*.

As Congress enacted separately stated rate-making rules for each transport agency, it intended that rates of each such agency should be determined by the commission in each case according to facts and circumstances attending movement of the traffic by that agency. Id., p. 538.

A reasonably compensatory rate is one which is remunerative, i.e., covers the out-of-pocket costs of handling the particular traffic, including a proper return on investment. And, a rate structure which is to be preserved must be one which is just and reasonable. Id., p.538.

Congress did not establish any dif ferent rule of rate making for freight forwarders than that applicable to common carriers, other than to make sure the commission would give due' consideration, among other factors, to the inherent nature of freight forwarding.

-Forwarder Rates Conditioned upon Aggregates of Tonnage, 264 I.C.C. 225 (231).

There is no justification for applying a special rate based upon the aggregate amount of freight forwarded by a patron during a given period of time.Id., p. 233.

Shippers' interest: In the endeavor recommended, i.e., that carriers make no further reductions in automobile rates that are close to a noncompensatory level and eliminate depressed areas in their rate structure, they should have cooperation of the shippers, to whose interest it is that the transportation agencies be maintained in a healthy condition.-New Automobiles in Interstate Commerce, 259 I.C.C. 475(556)*. Through routes, §15(4), n. 27.

Temporary needs: The commission cannot discharge its duty to promote safe, adequate, economical, efficient service and foster sound economic conditions in transportation and among the several carriers if it issues permanent operating authority to cover temporary needs. Foss Launch & Tug Co. Extension, 260 I. C. C. 525(543)*.

10. Coordinated service.

or

Economy: By coordination of railtruck, 'truck-rail, rail-truck-rail truck-rail-truck service, the railroad parent of applicant has saved 231 cars per day, and 750,000 car-miles per month. Santa Fe Trail Transp. Co.Purchase-Lebeck, 39 M.C.C. 771(785). "For each freight car removed from 1.c.l. service, necessity for switching that car is eliminated, with its attendant expense, including per diem rental of freight cars of other carriers; the practice is highly desirable from the shippers' point of view.-Green Bay & W. R. Co., 44 M.C.C. 401 (404).

Existing motor carriers: In considering the railroad's applications, joint boards and the commission should have admitted evidence of the flow of traffic by truck from points covered in one application to points covered by the railroad's other applications, of the effect of the motor traffic, developed or pros

pective, on all the railroad's routes for which applications are pending or already granted, on over-the-road motor carriers, with other material evidence as to the economic effect on non-rail motor carriers. American Trucking

Assns., Inc. v. United States, 326 U. S. 77(85)*.

Where existing rail service may be improved by a unified and limited railtruck operation which is not unduly prejudicial to motor carrier operations, the commission may authorize the certificate, even though existing carriers might arrange to furnish successfully the projected service.-Interstate Commerce Commission v. Parker, 326 U.S. 60 (70)*.

Under the 1940 act it was recognized that motor vehicles legitimately and properly could be used as a subordinate instrumentality for the improvement of non-motor-carrier transportation.-Rock Island Motor Transit Co.-PurchaseWhite Line, 40 M.C.C. 457(461).

When the application is for authority

to perform a substituted motor-for-rail service as an aid to the railroad rather than a new all-motor service in direct competition with existing motor carriers, the commission may in its discretion, authorize applicant to perform the substituted service even though some of the existing motor carriers might be able to perform it successfully. -Columbia Motor Transport Co., 46 M.C.C. 69 (87).

Consideration must be given to the fact that the railroads originate the station-to-station service, have facilities for storage and delivery, have been engaged in transporting l.c.l. shipments between their stations for years.Green Bay & W. R. Co., 44 M.C.C. 401 (408-9).

Benefits from proposed coordinated truck-rail service could not be effectively achieved and the public would not be as well served if the railroad were re

quired to use services of motor carriers already in the territory in lieu of those of applicant, an independent carrier which devotes itself primarily to service

of the railroad.-Alto Trucking Co., Inc. Extension, 44 M.C.C. 755 (760).

Express matter: Authority to transport general commodities in service auxiliary to, and supplemental of, rail service will permit transportation of express matter for the railroad.-Alto Trucking Co., Inc., Extension, 44 M.C.C. 755(763).

Identical operation, (a) independent supplying a rail-coordinated truck servcontractor; (b) connecting carrier: One ice as a common carrier by motor vehicle must operate in all respects as such and must comply strictly with every applicable requirement of the act, whereas one who, as an independent contractor, supplies a rail-coordinated truck service for a railroad which railroad itself assumes the status of a common carrier by motor vehicle, has no such obligations.-Willett Co. Extension, 46 M.C.C. 35(42).

And, in such circumstances any seem

ing inconsistency between a grant of "grandfather" rights to the railroad based on past operations of the motor carrier for it, and a grant of authority under §207 to the same motor carrier authorizing it as a common carrier in its own right, to continue comparable operations in aid of another railroad in rail-coordinated truck service, disappears.-Id., p. 42.

In its future operations which are coordinated with the rail carrier which does not itself assume the status of a motor carrier, status of applicant will be virtually that of a connecting carrier. As such it will have to become a party to the rail carrier's substituted freightservice directory and thereby become a participant in the joint rates with the rail carrier which will apply on traffic transported by it.-Id., p. 43.

Irregular routes: The commission is reluctant to authorize a coordinated operation over irregular routes.-Alto Trucking Co., Inc., Extension, 44 M.C.C. 755(761).

See also Pacific Motor Trucking Co., below.