more than twice, a day. This result does not necessarily follow. A particular district may be equipped with separate facilities to load several different products, but one, such as gasoline for example, may largely predominate. It may well be that it would be necessary to service several times a day the tracks upon which gasoline is loaded, although the average daily loading of all products in those districts might be less than the total capacity of the loading tracks therein, which, on its face, would indicate that only one service a day was necessary for the district as a whole.

In the regular course of business, material shipped by the industry on any day is to fill orders which were received before noon of the preceding day. In other words, it is known in advance how many cars will be needed from each respondent. The orders are placed in the afternoon, and the necessary equipment is assembled and spotted at the various loading districts during the night for loading the next day. When the loading has been completed, the cars are removed and switched to the interchanges with the respective respondents. In those instances where the loading tracks for a particular product cannot accommodate all the cars ordered for a particular day, this operation is repeated as often as may be necessary. In-bound loads, of which there are relatively few, are placed for unloading, and the empties removed, at convenient times during the day.

These are the services for which the industry contends that it has paid in the line-haul rates, and that respondents should perform without additional charge. However, as above shown, many of the districts are local to either the Yazoo & Mississippi Valley or the Louisiana & Arkansas. The traffic witness for the Yazoo & Mississippi Valley testified that, on carload traffic, the line-haul rates include the placement of the empty car on the public team tracks, or private industrial tracks connecting directly with the Illinois Central system tracks, for loading and the switching of the loaded car therefrom. A similar view was expressed by the traffic witness for the Louisiana & Arkansas. The New Orleans, Texas & Mexico apparently does not reach any spotting locations within the plant. Under its contract with the Yazoo & Mississippi Valley, the latter is obligated to deliver cars on its interchange tracks on which cars are received from and delivered to the industry. Since the Yazoo & Mississippi Valley performs the service between the ferry terminal of the New Orleans, Texas & Mexico and the interchange tracks, it should be done under tariff rates and not under a contract. We will expect the carriers to take prompt action to bring this about. In addition, the industry performs certain intraplant switching, including the movement of so-called compartment cars from one district, where they have been partially loaded, to another district where the

loading is completed. There is no contention that compensation for such intraplant movements, which average not in excess of three a day, is included in the line-haul rates.

At present, the industry owns four saddle-tank oil-burning locomotives and performs all switching at the plant with five switch crews working an aggregate of 40 hours a day. It appears that no more than two switch engines are ever in operation at the same time. The details of how this considerable amount of switching service is utilized are not disclosed. In switching between the plant district and the interchange points, it is necessary, in certain instances, for the industry's locomotives to operate for short distances over respondents' tracks. Formerly, conditions in the plant required that switch crews include an extra man in addition to the normal complement. This is no longer necessary.

The industry's tracks are now of sufficient weight and are so constructed and maintained as to permit operation without difficulty over them of the heavier types of switch engines used by respondents in the Baton Rouge area. This has been demonstrated by actual tests conducted by railroad employees. It was stated for the industry that, if respondents should undertake to switch the plant, and it should appear that, in actual practice, there remained any interference, physical or otherwise, with their operations, it would be eliminated promptly.

Because of the nature of the industry's business, it is necessary, as a safety measure, that coal-burning locomotives operating in the plant be equipped with spark arresters. Switch engines of the Yazoo & Mississippi Valley are coal burners, but all of them have spark arresters as regular equipment, and no additional installation would be necessary in order for them to operate in the industry's plant. The switch engines of the Louisiana & Arkansas burn oil. It was stated for the industry that, if respondents should perform the switching service, they would not be asked to assume any greater degree of liability for damage to the plant than is covered by the usual provisions of carriers' sidetrack agreements.

Respondents undertook a study of comparative costs of switching at the plant of the industry, and at all other plants in the Baton Rouge terminal area, including respondents' freight houses and team tracks. The basic data for this study covered a 7-day period during which employees rode on the switch engines and kept records of their movements. All of the switching except in the industry's plant, and at one other plant which, by preference, performs its own switching, was done by respondent's locomotives without charge in addition to the line-haul rates. As respondents do not operate within the industry's plant, the figures representing their costs for switch

ing therein were determined by using their unit costs in connection with data reflecting the actual movements of the industry's locomotives in performing the service. In view of our findings herein, it is not necessary to show the results obtained by respondents or to analyze the study.

Respondents have not previously switched the plant of the industry, and, in view of the uncertainties of the situation, they have not attempted to work out any detailed plan for performing the service. They express confidence, however, that, if the necessity arises, they can devise a practical cooperative plan by which they can switch the plant and avoid any interference with each other. Witness for the Yazoo & Mississippi Valley in response to the question "If the Yazoo and Mississippi Valley were obligated to switch that plant, how would you do it?" replied "Well, there is one of three ways it could be done. We could work it down on a percentage basis of the tonnage between the Yazoo and Mississippi Valley and the Louisiana & Arkansas and allocate it by months, alternate months, and it could be switched by the Yazoo and Mississippi Valley doing the switching on the Louisiana & Arkansas side, and the Louisiana & Arkansas doing the switching on the Yazoo and Mississippi Valley side, and pass our stuff from one road to another through the tracks back in the plant, and then, it could be let out by agreement, if it is decided to let the Standard Oil do it, and we reimburse them." In this connection, it should be noted, however, that there are many spotting locations reached by spur tracks leading off the Louisiana & Arkansas on the east side of the plant, and similarly, there are numerous spotting locations reached by spur tracks connecting with the Yazoo & Mississippi Valley on the west side of the plant. There appears to be no practical way in which the Yazoo & Mississippi Valley could serve the parts of the plant reached over the tracks of the Louisiana & Arkansas, or vice versa. Some of these spotting locations are on spur tracks which are reached only over other tracks on which there are spotting locations, and in order to place cars on some of these tracks a reverse movement would be

necessary.

Giving due consideration to all of the evidence of record with respect to this matter, we are not convinced that a sufficient basis has been provided for any change in the conclusions reached in the prior report herein. On further hearing, we affirm the prior findings.

No order is necessary.

256 I. C. C.

FOURTH SECTION APPLICATION NO. 19884

POTASH FROM NEW MEXICO TO PACIFIC COAST

Submitted October 9, 1942. Decided July 15, 1943

Authority granted, on conditions, to establish and maintain rates on potash, in carloads, from Carlsbad and Loving, N. Mex., and intermediate points, to destinations in north Pacific coast territory without observing the long-andshort-haul provision of section 4 of the Interstate Commerce Act.

J. P. Plunkett, O. M: Anderson, and A. J. Stilling for applicants. REPORT OF THE COMMISSION

DIVISION 2, COMMISSIONERS AITCHISON, SPLAWN, AND ALLDREDGE BY DIVISION 2:

Carriers parties to Agent L. E. Kipp's tariff I. C. C. No. 1473, apply for authority to establish and maintain rates on potash,1 in carloads, from Carlsbad and Loving, N. Mex., and intermediate origins, to north Pacific coast territory, without observing the long-and-shorthaul provision of section 4 of the Interstate Commerce Act. A hearing was held, and no opposition was offered to the relief prayed. Rates will be stated in amounts per 100 pounds, and do not include increases authorized March 2, 1942.

Applicants propose to establish over the routes of The Atchison, Topeka and Santa Fe Railway Company and Affiliated Companies to Denver or Pueblo, Colo., and connecting carriers beyond, rates the same as those currently in effect over the route of the Atchison, Topeka & Santa Fe to Stockton, Calif., The Western Pacific Railroad Company to Bieber, Calif., and the Great Northern Railway Company beyond, as set forth in the application, and to maintain higher rates to intermediate points.

In order to meet the competition of a shipper at Trona, Calif., in the sale of potash in north Pacific coast territory, in 1932 the shipper at Carlsbad requested the carriers to establish a rate of 55 cents, minimum 80,000 pounds, on this commodity from Carlsbad and Loving

1 Potassium (potash), viz, alkali salts, crude; muriate of; sulphate of; manure salts; double manure salts; kainit; hartsalts; and sylvinit, in bags or in bulk, in straight or mixed carloads.

Empty bags or containers for reconditioning purposes in transit, not to exceed 1 percent of the total weight of shipment may be included with carload shipments of potash. The rate to be applied to the weight of such empty bags or containers is the highest carload rate applicable on any of the articles in the car for the movement from point of shipment to final destination of the car, but the weight of such empty bags or containers shall not be used to make up the minimum carload weight.

to points in this territory. The rates from Trona to Portland, Oreg., and Seattle and Spokane, Wash., were 50, 55, and 61 cents, respectively, which were established to meet competition by rail and water. The carriers established a rate of 70 cents, minimum 80,000 pounds, from Carlsbad and Loving to certain points, which resulted in rates to Portland and Seattle 20 and 15 cents, respectively, higher than the rates from Trona. As the result of a reduction of the rate from Trona to Seattle to 50 cents, on January 24, 1937, the rate from Carlsbad and Loving was reduced to 65 cents, and the 65-cent rate was published to all points taking rate bases 1, 2, and 3, which include the principal points in north Pacific coast territory. This rate was increased to 72 cents under general authority granted in 1937-38.

Because of a further reduction in the rates from Trona to points in this territory, in 1941 the shipper at Carlsbad requested a reduction in the rate from that point. The rates in effect at that time from Trona were 55, 54, and 44 cents, minima 40,000, 60,000, and 80,000 pounds, respectively, to Portland; 57, 54, and 44 cents, respectively, to Seattle; 57 and 54 cents, minima 40,000 and 60,000 pounds, respectively, to Wenatchee, Wash.; 55 cents, minimum 80,000 pounds, to Spokane; 49 cents, minimum 80,000 pounds, to Everett, Wash.; and 54 and 49 cents, minima 60,000 and 80,000 pounds, to Bellingham, Wash. On April 15, 1941, the carriers established from Carlsbad and Loving a rate of 70 cents, minimum 40,000 pounds, to Portland, Seattle, and Tacoma, Wash., and rates of 60 cents, minimum 80,000 pounds, to Portland, Seattle, and Tacoma, 65 cents to Everett and Bellingham, and 72 cents to Spokane, Wenatchee, and other points over the route through Stockton and Bieber. The rates to Portland, Seattle, Everett, and Bellingham are about 16 cents higher than the rates from Trona and substantially restore the relation of the rates. from Carlsbad and Loving with those from Trona. The rates over this route conform to the requirements of the long-and-short-haul provision of section 4.

The total cost for transportation by rail and water from Trona to Portland and Tacoma in 1941 was 51.25 cents, minimum 80,000 pounds, and 48.75 cents, minimum 100,000 pounds, which is composed of rates of 15 and 17.5 cents, minima 100,000 and 80,000 pounds, respectively, by rail from Trona to Los Angeles, Calif., 31 cents by water from Los Angeles to Portland and Tacoma, 15 cents per net ton for wharfage at Los Angeles, and 40 cents per net ton for unloading at destinations. The rate by water from Los Angeles to Seattle was 36 cents, and the total cost for transportation by rail and water to Seattle was 53.75 cents, minimum 100,000 pounds, and 56.25 cents, minimum 80,000 pounds.