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RATE TERRITORIES

CENTRAL
FREIGHT ASSO-
CIATION TERRI-
TORY.

(Con.)

Southern boundary-Gauley, W. Va., to Ashland, Ky., via C. & O. Ry.; Ohio

River west to Mississippi River, including Louisville, Ky.,

and Cairo, Ill.
Western boundary-Mississippi River north, Cairo, Ill., to East Burlington,

Ill., including St. Louis, Mo.; East Burlington, Ill., to
Peoria, Ill., via T., P. & W. Ry.; Peoria, Ill., via Streator
and Joliet, Ill., to Chicago, Ill.; Chicago, Ill., via west bank
Lake Michigan to Kewaunee, Wis., including Marinette,

Wis., and Manistique, Mich.
Northern boundary-Straits of Mackinac; South from Straits of Mackinac

to Port Huron, Mich., via west bank Lake Huron; Port
Huron, Mich., via G. T. Ry., through Sarnia, Ont., Lucan,
Ont., Stratford, Ont., Kitchener, Ont., Guelph, Ont.,
Georgetown, Ont., and Brampton, Ont., to Toronto, Ont.;
West bank of Lake Ontario from Toronto to Niagara-on-
the-Lake and the Niagara River to Buffalo.

WESTERN
TRUNK LINE
COMMITTEE
TERRITORY.

The Western Trunk Line Committee Territory at the present time has no definite boundaries, but, generally speaking, it comprises territory west from Lake Michigan, and the State line of Illinois and Indiana, including all the States of Illinois, Wisconsin, Northern Peninsular of Michigan, Missouri, Iowa, Minnesota, Kansas and Nebraska, Colorado and Utah and portions of Wyoming, North and South Dakotas.

TRANS-CONTINENTAL FREIGHT BUREAU TERRITORY.

The Trans-Continental Freight Bureau Territory comprises territory as follows: Northern boundary-International boundary line east from the Pacific Ocean

to the Montana-North Dakota State line. Eastern boundary-North Dakota-Montana State line, thence Montana-Wyo

ming State line, thence via a direct line to the Idaho-
Oregon State line, thence the Oregon-Idaho State line,
thence the Idaho-Nevada State line, thence via a line
drawn just West of Ogden and Salt Lake City, Utah, Al-
buquerque and Deming, N. Mex., to the New Mexico-

Mexico boundary line.
Southern boundary-Southern boundary line of New Mexico, Arizona and

California.
Western boundary-Pacific Ocean.

TORY.

The Southwestern Freight Bureau Territory covers interstate freight traffic

between interstate points and points in the States of Oklahoma, Arkansas, Texas SOUTHWEST

and Louisiana (west of the Mississippi River), and Mexico; also traffic between ERN FREIGHT BUREAU TERRI- St. Louis, Chicago and Milwaukee rate points and Southeastern Missouri. Does

not include traffic between the States of Oklahoma, Arkansas, Texas and Louisiana, on the one hand, and the States of Arizona and New Mexico, on the other. Traffic from the Atlantic seaboard territory via Gulf ports to Texas points is not included within the Southwestern Freight Bureau Territory, nor is Trans-Continental traffic included therein.

RATE TERRITORIES

The Southeastern Territory comprises the territory directly east of the SouthSOUTHEASTERN eastern Mississippi Valley Territory to the Atlantic Ocean, and south of the Potomac TERRITORY.

River from its delta to the Virginia-West Virginia State line, and a line drawn from the Virginia-West Virginia State line to Middlesboro, Ky., through Bristol, Tenn.

ASSOCIATED
RAILWAYS OF
VIRGINIA AND
THE CAROLINAS
TERRITORY.

The Associated Railways of Virginia and the Carolinas Territory comprises territory as follows:

South of a line extending west from Portsmouth, Va., to Point Rock, N. C., through Pinners Point, Va., Richmond, Va., Lynchburg, Va., and Roanoke, Va.

East of a line extending from Point Rock, N. C., to Atlanta, Ga., through Murphy, N. C.

North of a line extending east from Atlanta, Ga., to Augusta, Ga., via Georgia R. R., thence to Charleston, S. C., via Southern R. R. to the Atlantic Ocean; also includes the line of the A. C. L. R. R., from Charleston, S. C., to Savannah, Ga.

The Southeastern Mississippi Valley Territory comprises territory as follows:

Northern boundary-Ohio River from Cincinnati, O., to Cairo, I.

Western boundary–Mississippi River, south from Cairo, ml., including Helena,

Ark., and Vidalia, La.

Southern boundary-Gulf of Mexico.

SOUTHEAST-
ERN MISSIS-
SIPPI VALLEY
TERRITORY.

Eastern boundary-A line extending from Covington, Ky., to Pensacola, Fla., as

follows: Via L. & N. to Middlesboro, Ky., through Winchester, Ky.; thence through Jellico, Tenn., to Harriman and Harriman Jct., Tenn; thence via C. N. 0. & T. P. to Chattanooga, Tenn.; thence to Attalla and Birmingham, Ala., via the A. G. S. Ry.; thence to Pensacola, Fla., via the L. & N. through Calera and Montgomery, Ala.

RATE BASES

RATE BASES

DEFINITION.

The general factors entering into the construction of freight rates are explained under "Rate Factors" on pages 22 to 26, inclusive.

A Rate Basis is an outline of the specific factors or elements which control the making of a particular rate or rate structure.

A Basic Rate, or “Basing Rate," is a rate used as a foundation, or basis, for other rates. To illustrate: The rates from New York to Chicago, in the Central Freight Association Territory, are the basic rates of the rates from New York to other points in Central Freight Association Territory, as well as from other points in the East (Trunk Line and New England Territories) to Chicago and other points in Central Freight Association Territory. The rates from New York to Chicago are first established and the rates from New York to other points in Central Freight Association Territory are made on a percentage relationship thereto, the rates from other points in the East to Chicago and other points in Central Freight Association Territory being made the same as from New York or on a basis of fixed differentials higher or lower than the rates from New York.

The specific bases upon which the rates on the thousands of different commodities between the thousands of points in the United States were made are not available, and if they were, it would be impossible to include them in this volume. However, a few of the present "Rate Bases" are given below.

The Interstate Commerce Commission in its decision (Ex Parte 74) of July 29, 1920 (58, I. C. C. 220), authorized varying percentage increases in freight rates as shown below:

40% for the Eastern Group,
25% for the Southern Group,
35% for the Western Group,
25% for the Mountain-Pacific Group,
33}% Inter-territorial.

(See Table of Advance Rates, pages 558 to 574.)
The territory embraced in the groups referred to above is as follows:

ADVANCES
AUTHORIZED
BY I. C. C. IN
EX PARTE 74

Eastern Group (See Note 1). The Atlantic seaboard from the Canadian border to Norfolk, Va., to Kenova, W. Va., the main line of the Norfolk & Western Railway from Norfolk, Va., to Kenova, W. Va., the main line of the Chesapeake & Ohio Railway from Kenova, W. Va., to Cincinnati, Ohio, the Ohio River to Cairo, Ill., the Mississippi River to the mouth of the Illinois River at or near Grafton, Ill., the Illinois River from Grafton, Ill., to Pekin, Ill., a line south and east of the Atchison, Topeka & Santa Fe Railway from Pekin, Ill., through Joliet and Streator, Ill., to Chicago, Ill., a line drawn from Chicago, Ill., to include the southern peninsula of Michigan, and thence following the international boundary to the Atlantic seaboard, including that portion of the Virginian Railway extending south of the southern boundary, and excluding those portions of the Southern Railway, Louisville & Nashville Railroad, Mobile & Ohio Railroad, Atlantic Coast Line Railroad and Seaboard Air Line extending north of the southern boundary.

RATE BASES

Southern Group.

The territory commonly known as the Southern Classification Territory, embracing that section of the United States lying west of the Atlantic Ocean, south of the main line of the Norfolk & Western Railway from Norfolk, Va., to Kenova, W. Va., thence south of the Chesapeake & Ohio Railway to Cincinnati and thence south of the Ohio River to Cairo, Ill.; thence east of the Mississippi River to New Orleans, La., and the mouth of the Mississippi River; and north of the Gulf of Mexico from the Mississippi River to the Atlantic Ocean, including also those portions of the Southern Railway, Louisville & Nashville Railroad, Mobile & Ohio Railroad, Atlantic Coast Line Railroad and Seaboard Air Line Railway extending north of the northern boundary, and excluding that portion of the Virginian Railway extending south of the northern boundary.

Western Group (See Note 1). The territory lying west of the western boundaries of the eastern and southern groups as above described, south of Lake Superior and of the international boundary line; north of the Gulf of Mexico and the Rio Grande, and on and east of a north and south line running as follows: Following the boundary line between the State of North Dakota and the State of Montana and the boundary line between the States of South Dakota and Wyoming and Nebraska and Wyoming to the line of the Union Pacific extending east from Cheyenne, Wyo., thence following the line of the Union Pacific westward to Cheyenne, thence via a line from Cheyenne running southward through Denver, Colorado Springs, Pueblo and Trinidad, Colo., then following the line of the Atchison, Topeka & Santa Fe Railway through Raton and Las Vegas, N. M., to Albuquerque, N. M., thence south along the line of the Atchison, Topeka & Santa Fe Railway to El Paso, Texas.

ADVANCES
AUTHORIZED
BY I. C. C. IN
EX PARTE 74

(Con.)

Mountain-Pacific Group.

All that territory lying between the line last described in Western Group and the Pacific Coast, not including Alaska.

NOTE 1.-Points in Illinois territory are to be considered within Eastern group for the purpose of applying the increases on interstate traffic between points within Illinois territory; also on traffic between points in Illinois territory on the one hand and points in Official Classification territory east of the Indiana-Illinois State line on the other, an increase of 40 per cent. is made; points within said Illinois territory should be treated as being in Western group on traffic subject to joint or single-line through rates between points in said territory on the one hand and points lying within the boundaries of the Western group (west or north of Illinois territory) on the other, and an increase of 35 per cent. made in such rates. Illinois territory is defined as follows: All points in the State of Illinois, also points in Wisconsin on and south of the M. St. P. & S. S. M. Ry., Milwaukee to Duplainville via Rugby Junction, thence on and south of the C. M. & St. P. Ry. to Madison, the C. & N. W. Ry., Madison to Dodgeville, and on and east of the Illinois Central, Dodgeville to the Illinois State line; also points on the west bank of the Mississippi River to which joint through rates subject to the Official Classification are now in effect from points in Trunk Line and Central territories; also points in Indiana on nad west of the Danville Division of N. Y. C. R. R., Whiting, Ind., to Danville, Ill.

In applying the increases authorized the following rules were observed:

Where rates were constructed by the use of combinations upon gateways between any two groups, the through rates were increased by applying to each factor its respective percentage.

Rates between points within a group and points on the border line of such group were increased according to the percentage applicable to the group. Where a river constitutes a boundary lines between two groups, points on both banks thereof were considered as border-line points.

RATE BASES

ADVANCES
AUTHORIZED
BY I. C. C. IN
EX PARTE 74

(Con.)

Joint or single-line through rates between points in one group and points in other groups were increased 33%.

In cases where the rates over different routes between the same points would, by a strict application of the varying percentages of increases, be subject to different percentages, the lowest percentage applicable to any of the routes was applied to the rates over all of such routes.

In the construction of rates in accordance with foregoing, it was not intended that the group boundaries hereinbefore designated were to be strictly observed, but the territorial boundaries heretofore recognized were observed.

The Interstate Commerce Commission, in Case No. 13293 (Reduced Rates, 1922, decided May 16, 1922, 68 I. C. C., 676), found that the freight rates and charges then in effect, and which were advanced effective August 26, 1920, in accordance with its decision of July 29, 1920 (Ex-Parte No. 74, 58 I. C. C., 220), would be unjust and unreasonable if they included on and after July 1, 1922, more than the following percentages of increase over the freight rates in effect immediately prior to August 26, 1920:

REDUCTIONS
AUTHORIZED
BY I. C. C. IN
CASE No. 13293,
(REDUCED
RATES, 1922).

In the eastern Group....
Between points in Illinois territory.............

$26 per cent.
Between Illinois territory and the eastern group. .)
In the western group.

2142 per cent.
Between the western group and Illinois territory
In the southern group....

12% per cent.
In the mountain-Pacific group.....
On inter-territorial traffic.........

.20 per cent.
(See Table of reduced Rates, pages 558 to 574.)
These groups are the same as those defined by the Interstate Commerce Com-
mission in Ex-Parte 74, 58 I. C. C., 220.

The above percentages, in excess of the rates in effect immediately prior to
August 26, 1920, were equivalent to a 10 per cent. reduction in the freight rates in
effect on June 30, 1922, and that is the basis the carriers worked on. In other words,
instead of ascertaining the August 25, 1920, freight rates and increasing such rates
to the percentages shown above, they reduced the June 30, 1922, freight rates 10
per cent. The reductions were, in most instances, effected by Special Supplements
(called “connecting-link" supplements) to their individual tariffs, in which reference
was made to the Tariff of Reduced Rates (called "Master" Tariff) issued by the
following Tariff Publishing Agents:
E. B. Boyd,

J. H. Glenn,
J.J. Cottrell,

F. W. Gomph,
R. H. Countiss,

F. Van Ummersen,
W. S. Curlett (Now H. Wilson), S. J. Henry,
W. P. Emerson,

W. J. Kelly,
A. C. Fonda,

F. A. Leland,
A. P. Gilbert,

F. L. Speiden.
(See Appendix, pages 580 to 583, inc., for address, etc., of these Agents.)

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