When well-qualified cost experts have made painstaking efforts to arrive at just and reasonable results, their figures are not to be disregarded because they may not be correct in every detail and are based in part on estimates.-Commonwealth of Kentucky v. Illinois Central R. Co., 259 I. C. C. 259 (266)*.

Lorenz formula for determining territorial variations in cost does not purport to be exact; evidence considered subject to infirmities and deficiencies therein.-Iron and Steel to Iowa, Minn., Mich., and Wis., 263 I. C. C. 361(382)*.

93. Practical utility.-The reality of costs in rendition of transportation service is indisputable. The problem, from the standpoint of rate making and rate regulation, is to convert such costs into practicable and usable terms.Class Rate Investigation, 1939, 262 I. C. C. 447(692)*.

The nature of rail costs is such that they could seldom be used as the sole measure of a line-haul rate.-Alden Coal Co. v. Central R. Co. of N. J., 263 I. C. C. 639(654)*.

94. Localization of items to particular service costs.-Direct costs include operating and other expenses attributable to a particular service and therefore can be directly assigned to that service, or "are susceptible of logically being correlated with physical operations."Blytheville Chamber of Commerce v. Aberdeen & R. R. Co., 259 I. C. C. 201 (212 footnote)*.

Indirect costs include passenger and 1.c.l. deficits and those portions of the overhead expenses, rents, taxes, and return on investment, which cannot be directly assigned to a particular service. -Id., p. 213, footnote.

For transit as between flat and compressed cotton, apportionment of the same amount per-weight unit to each minimum based on assumption that each density, and the shipper thereof, shares equally in the transit benefits, is on a sounder basis than apportionment of different amounts based on average gathering service performed in connection with each minimum.-Id., p. 213.

Such costs have occasionally been given some weight where the nature of the particular commodity and the circumstances surrounding its movement are fairly typical of the average traffic. -Id., p. 697. [Citing 22 I. C. C. 640.]

Through rates cannot be predicated upon divisions, and this is particularly true where the division is not shown to be in any sense reflective of the cost of handling a heavy-loading, low-grade commodity like coal.-Commonwealth of Kentucky v. Illinois Central R. Co., 259 I. C. C. 259 (267)*.

Distance as Measure of Cost

105. Distance important, but not controlling. The general factors of cost are inevitably covered in any consideration of distance and operating conditions since these are inescapable and important determinants of cost variations. To what exent cost studies are helpful depends on the particular circumstances of a case. The commission may give such weight to cost factors as in its judgment as a skilled body those factors are entitled to have.Baltimore & O. R. Co. v. United States, 65 Fed. Supp. 962*.

Volume of Traffic

108. As a cost factor.-The cost of practically every unit of service varies with the volume of traffic.-Alden Coal Co. v. Central R. Co. of N. J., 263 I. C. C. 639 (653)*.

From 50 to 70 percent of the value of property used in freight transportation is affected by traffic volume.-New Automobiles in Interstate Commerce, 259 I. C. C. 475(528)*.

Increase in freight traffic volume since 1939 has reduced unit costs of transportation in the South and West

in proportionately greater degree than in the East, because a larger proportion of c.l. freight revenue needs in those areas consists of constant or fixed costs than in the East, and these expenses do not increase with added freight traffic.-Class Rate Investigation, 1939, 262 I. C. C. 447(586)*.

110. Less than carloads.-Less-thancarload traffic as a whole, is carried at a deficit in all territories, except possibly in the South.-Class Rate Investigation, 1939, 262 I. C. C. 447(591)*.

Cost of Particular Services

118. Loading.-With the 50,000 pound minimum on cotton, consideration should be given to the higher average loading in relation to the minimum, less use of larger cars, more even flow of the traffic, saving of carriers' facilities and empty mileage. The weight-unit method of apportionment of indirect costs is preferable to the dollar method.Blytheville Chamber of Commerce v. Aberdeen & R. R. Co., 259 I. C. C. 200 (214)*.

Wheat loads more heavily than coarse grains, and grain loads much more heavily than flour and other grain products. Therefore, cost of hauling grain products is considerably greater than cost of hauling grain, and cost of hauling coarse grains is greater than cost of hauling wheat.-Grain to, from, and within Southern Territory, 259 I. C. C. 629 (732)*.

119. Return loading.-Open cars move empty in one direction to a much greater extent than boxcars; that, in time of war empty movement of all equipment is grealy reduced by available loading at many points, considered.-Forrestal v. Abilene & S. Ry. Co., 263 L. C. C. 457 (465)*.

120. Special equipment required. That heavy plates require special equipment and often only a few can be loaded in or on the car, and require special precautions for clearance to avoid striking station platforms, entailing extra switching, congestion, delays, interference with other traffic, considered.

Forrestal v. Abilene & S. Ry. Co., 263 I. C. C. 457(465)*.

123. Terminal services. Part II, §216(b), n. 101**.

Concentrated movement from a large terminal does not necessarily reduce costs, particularly in an area as congested as the Chicago switching district. -Grain Proportionals, Ex-Barge to Official Territory, 262 I. C. C. 7(14)*.

Terminal costs vary widely at different points, are relatively much more of a factor in the short-haul than in the long-haul costs.-New Automobiles in Interstate Commerce, 259 I. C. C. 475 (511)*.

It is principally the low terminal costs in the South that account for its relatively low total costs.-Class Rate Investigation, 1939, 262 I. C. C. 447 (609)*.

Little weight can be given cost study in which respondents assume that terminal service in delivery of coal to the two steel companies is substantially the same as that on all-traffic of those companies, in-bound and out-bound, coal constituting only about 22 percent of the shipments (other than ore) into and out of the plants.-Bituminous Coal to Youngstown District, 263 I. C. C. 683 (696)*.

130. Susceptibility to loss or damage. -Part II, §216(b), n. 110, volumes 10, 13.

Loss and damage claim payments reduce the carriers' revenues and this may justify relatively high rates on a particular commodity. This is a feature of transportation which may not be ignored.-Darling & Co. v. Ann Arbor R. Co., 263 I. C. C. 419(445)*.

Carbon dioxide is nonexplosive, noninflammable. No personal injury or property damage has resulted from transportation of controlled low-temperature, low-pressure liquid carbon dioxide.-Cardox Corp. v. Ahnapee & W. Ry. Co., 264 I. C. C. 173 (178).

Handling of liquefied petroleum gas is somewhat less hazardous than that of gasoline, and no more hazardous than that of fuel oil; no claims for loss and

damage have resulted.-Liquefied Petroleum Gas in the South and Southwest, 259 I. C. C. 55 (60)*.

Even with greatly increased volume, there were no claims for loss and damage in connection with rail movement of gas while there have been substantial claims in connection with rail movement of gasoline.-Id., 263 I. C. C. 353 (359)*.

Loss and damage, iron and steel articles, averaged in 1938, 26 cents a car, less than on other commodities except coal, coke, other mine products, petroleum, lumber, forest products, cotton; in 1941, average on iron and steel articles, 14 cents a car.-Iron and Steel to Iowa, Minn., Mich., and Wis., 263 I. C. C. 361 (376) *.

Clothing, dry goods, and notions are susceptible to pilferage. Claims are relatively high.-Clothing in Bales in Official Territory, 259 I. C. C. 389 (396).

Armor plate is not subject to loss or damage in transit; so far as any effect on rate levels is concerned, is not materially different from other steel and c.l. freight generally, except for a relatively few commodities on which claims for loss and damage are heavy.-Forrestal v. Abiline & S. Ry. Co., 263, I. C. C. 457 (464) *.

Claims, frost, freezing, n. 593, infra, and §1 (6), n. 622.

Value of the Service

145. In general.-Value of transportation service on liquefied petroleum gas is affected not only by its origin value and competition with other sources of energy, but by the distributors' narrow margin of profit, truck competition for short hauls, and potential barge competition for longer hauls.-Liquefied Petroleum Gas in the South and Southwest, 259 I. C. C. 55(61)*; Id., 263 I. C. C. 353 (358)*.

147. "What the traffic will bear" as rate-making principle.-As the railroads have lost much of their former traffic

of many kinds to other agencies of transportation, there is more justi

fication now than formerly for making maximum rail rates with particular regard to what the traffic can reasonably bear. New Automobiles in Interstate Commerce, 259 I. C. C. 475 (547) *.

The rate an article can bear in transactions of commerce, or value of the service to the article, is of great importance in determining the relative level of rates; when marketability and movement of an article is dependent on comparatively low rates, that is an important factor qualifying the weight to be given to value.-Patterson Foundry & Mch. Co. v. Chicago, B. & Q. R. Co., 262 I. C. C. 339 (347)

Any basis of rates which discourages traffic in a salable commodity and results ultimately in loss of a large part of it is at least subject to serious question. Clay or Shale Cinders in the Southwest, 262 I. C. C. 413 (416).

Apparent willingness of the southern public to have its traffic bear a relatively high share of the general transportation burden within that territory cannot justify unreasonable through rates from other territories.-Grain to, from, and within Southern Territory, 259 I. C. C. 629 (730)*.

The method of distribution of the rate budren between types of traffic now observed in southern, southwestern, and w.t.l. territories has resulted in rates so high that they have prevented free movement of traffic at the rates in issue.-Class Rate Investigation, 1939, 262 I. C. C. 447 (696)*.

Coal, in general, can bear its full share of the total transportation burden.-Coal to Beloit, Wis., and Northern Illinois, 263 I. C. C. 179 (210).

148. Continuance of movement not controlling.-Defendants would not be justified in charging excessive and unreasonable rates on midwestern meats, even if the traffic were moving freely; that the traffic is not moving freely is due to the high level of assailed rates. -Geo. A. Hormel & Co. v. Atchison, T. & S. F. Ry. Co., 263 I C. C. 9(34),

terest demands that all shippers be se corded relatively equal opportunities to reach all reasonably available markets-Beacon Milling Co. Inc. v. Akron, C. & Y. Ry. Co., 23 L. C. C. 148(147),

While no specific instance was proved where an industry was not established in the South because of the class-rate level, this fact would be difficult to prove because of the many factors entering into the location of an industry. -Class Rate Investigation, 1939, 262 I. C. C. 447(622)*.

150. Shipper's needs as a basis.-The commission would not be justified in at-❘ tempting to neutralize disadvantages of geographical location by requiring wasteful or additional service without adequate compensation, although the shipper may be in dire need.-Beacon Milling Co., Inc. v. Akron, C. & Y. Ry. Co., 263 I. C. C. 143(147).

Application of proportional rates on ex-barge traffic would enable shippers to realize better prices. The commission's experience in grain rate cases furnishes little support for the proposition that a reduction in transportation charges can affect adversely the prices received by the country producers.Grain to, from, and within Southern Territory, 259 I. C. C. 629 (674)*.

154. Element of profit to shipper considered. Regulation of the selling price of a commodity is not a matter within the commission's province.-Iron and Steel to Iowa, Minn., Mich., and Wis., 263 I. C. C. 361 (402)*.

Reasonableness of a rate does not necessarily depend upon ability of shippers profitably to market their products under it.-Wisconsin Coal Bureau, Inc. v. Chicago, M., St. P. & P. R. Co., 263 I. C. C. 99(103).

155. Equalization of opportunities, fortunes, and abilities.-The public in

Each rival packing house is entitled to a reasonable rate upon live animals from various points of production, also

these rates should be fairly adjusted with reference to one another. Any locality which remains at a disadvantage after this has been done must sustain that burden, which is due to its location.-Geo. A. Hormel & Co. v. Atchison, T. & S. F. Ry. Co., 263 I. C. C. 9(36).

156. Market equalization.-Transpor tation is no less an indispensable factor in the marketing of bituminous coal, and of all other commodities requiring wide distribution, than it is in the marketing of anthracite.-Alden Coal Co. v. Central R. Co. of N. J., 263 I. C. C. 639 (650)*.

157. Relation of cost of production.---If reduced wages in southern Illinois have resulted in production costs that are lower in that region than in western

Kentucky, the disadvantage accruing to western Kentucky is economic in nature, and one which the commission cannot lawfully offset by an equalization of rates.-Commonwealth of Kentucky v. Illinois Central R. Co., 259 I. C. C. 259 (272)*.

160. Commercial and economic condi tions affecting industry considered.— The commission is not charged with responsibility for managerial direction of the anthracite industry but its economic status, present and prospective, is a matter that can and should be taken into consideration in fixation of its transportation charges.-Alden Coal Co. v. Central R. Co. of N. J., 263 I. C. C. 639(655)*.

While both the anthracite industry and the railroads largely dependent upon it are enjoying a substantial but probably transient prosperity, in the time to look ahead to the prospect of

damage have resulted.-Liquefied F troleum Gas in the South and South west, 259 I. C. C. 55 (60)*. .

Even with greatly increased volume, there were no claims for loss and damage in connection with rail movement of gas while there have been substantial claims in connection with rail movement of gasoline.-Id., 263 I. C. C. 353 (359)*.

Loss and damage, iron and steel articles, averaged in 1938, 26 cents a car, less than on other commodities except coal, coke, other mine products, petroleum, lumber, forest products, cotton; in 1941, average on iron and steel articles, 14 cents a car.-Iron and Steel to Iowa, Minn., Mich., and Wis., 263 I. C. C. 361 (376)*.

Clothing, dry goods, and notions are susceptible to pilferage. Claims are relatively high.-Clothing in Bales in Official Territory, 259 I. C. C. 389 (396).

Armor plate is not subject to loss or damage in transit; so far as any effect on rate levels is concerned, is not materially different from other steel and c.l. freight generally, except for a relatively few commodities on which claims for loss and damage are heavy.-Forrestal v. Abiline & S. Ry. Co., 263, I. C. C. 457 (464) *.

Claims, frost, freezing, n. 593, infra, and §1 (6), n. 622.

Value of the Service

145. In general.-Value of transportation service on liquefied petroleum gas is affected not only by its origin value and competition with other sources of energy, but by the distributors' narrow margin of profit, truck competition for short hauls, and potential barge competition for longer hauls.-Liquefied Petroleum Gas in the South and Southwest, 259 I. C. C. 55 (61)*; Id., 263 I. C. C. 353 (358)*.

147. "What the traffic will bear" as a rate-making principle.-As the railroads ave lost much of their former traffic

many kinds to other agencies transportation, there is more justi