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I. C. C. FOURTH SECTION ORDERS

General No. 6.

FOURTH SECTION ORDER No. 144

INTERSTATE COMMERCE COMMISSION.

ORDER.
At a General Session of the INTERSTATE COMMERCE COMMISSION, held at its office in Washington, D. C.,

on the 20th day of June, A. D. 1911.
IN THE MATTER OF CHANGES IN CLASSIFICATION OF ARTICLES WHICH RESULT

IN INCREASE OF DISCRIMINATION.

Changes in Classification of Articles. It has been brought to the attention of the Commission by many carriers whose class rates are now in conflict with the Long and Short Haul clause of the Fourth Section of the act to regulate commerce, which rates are now protected by applications filed with the Commission on or before February 17, 1911, that any change in the classification of an article may often result in an increase in discrimination with respect to certain intermediate points and a decrease in discrimination with respect to other intermediate points. It appears that a great deal of time and labor has been devoted to preparing uniform descriptions, carload minimum, etc., working toward a uniform classification. Under the present conditions the carriers are not in a position to incorporate in the various classifications the work which has been completed. The Commission is of the opinion that carriers should be allowed to continue to make changes in the classification of articles which are necessary in the ordinary course of business and changes which tend toward a uniform classification.

It is therefore ordered, That until the Commission passes upon the applications filed on or before February 17, 1911, affecting class rates now at variance with the Long and Short Haul clause of the Fourth Section of the act to regulate commerce, as amended June 18, 1910, carriers on whose behalf such applications were filed may be, and they are hereby, authorized to make changes in classification ratings, rules and regulations, occuring in the ordinary course of business, including changes made necessary by incorporating in the various classifications the recommendations of the committee known to the carriers as the committee on uniform classification. The Commission does not hereby approve any changes in the classification ratings, rules, or regulations that may be filed under this permission, all such ratings, rules and regulations being subject to complaint, investigation and correction if they conflict with any other provisions of the act.

By the Commission:

JUDSON C. CLEMENTS,

Chairman.

General No. 6.

FOURTH SECTION ORDER No. 340

INTERSTATE COMMERCE COMMISSION.

ORDER. At a General Session of the INTERSTATE COMMERCE COMMISSION, held at its office in Washington, D. C.,

on the 10th day of October, A. D. 1911. IN THE MATTER OF APPLICATION FOR RELIEF FROM THE PROVISIONS OF THE FOURTH SECTION

OF THE ACT TO REGULATE COMMERCE, AS AMENDED JUNE 18, 1910, RESPECTING THE DISPOSITION OF FRACTIONS OF A CENT IN A THROUGH FARE OR RATE MADE UP OF THE AGGREGATE OF THE INTERMEDIATE FARES OR RATES.

Upon consideration of the question of what disposition shall be made of fractions of a cent in a through fare or rate made up of the aggregate of the intermediate fares or rates,

It is ordered, That applying the rule de minimis, all carriers be, and they are hereby, authorized, in the making up of through fares or rates on the aggregate of the intermediate fares or rates, to disregard fractions of a cent less than .5, retaining the half cent in the rate when it is even .5, and making the rate in even cents when the fraction is more than .5.

It is further ordered, That tariffs need contain no reference to this order.

The Commission does not hereby approve any fares or rates that may be filed under this authority, all such fares and rates being subject to complaint, investigation and correction if in conflict with any other provisions of the Act.

By the Commission:

JUDSON C. CLEMENTS,

Chairman.

I. C. C. FOURTH SECTION ORDERS

FOURTH SECTION ORDER No. 3700

And Supplement No. 1 Cancels Fourth Section Orders Nos. 100, 485, 839 and 2200.

General No. 13 and Supplement No. 1 Cancels General Nos. 2, 9, 11 and 12.

INTERSTATE COMMERCE COMMISSION.

ORDER.

At a General Session of the INTERSTATE COMMERCE COMMISSION, held in its office in Washington, D. C.,

on the 3rd day of February, A. D. 1914, and 3rd day of June, A. D. 1920. EDGAR E. CLARK,

CHARLES C. McCHORD,

Commissioners. JUDSON C. CLEMENTS, Commissioners.

BALTHASAR H. MEYER, JAMES S. HARLAN,

IN THE MATTER OF PERMITTING ORDINARY CHANGES IN RATES PENDING ACTION UPON APPLI

CATIONS FOR RELIEF FROM THE PROVISIONS OF THE FOURTH SECTION OF THE ACT TO REGULATE COMMERCE AS AMENDED.

The Commission being of the opinion that the convenience of the carriers, the public and the Commission will be better served by assembling in one general Fourth Section order, divided into numbered sections for convenient tariff reference, the general Fourth Section orders known as Fourth Section Order No. 100, General No. 2; Fourth Section Order No. 485, General No. 9; Fourth Section Order No. 839, General No. 11, and Fourth Section Order No. 2200, General No. 12, and experience having suggested certain modifications in the description of condition under which relief has been afforded by these orders, and certain additional situations as to which carriers may be relieved from the operation of said section, therefore,

It is ordered, That Fourth Section Order No. 100, General No. 2; Fourth Section Order No. 485, General No. 9; Fourth Section Order No. 839, General No. 11, and Fourth Section Order No. 2200, General No. 12, be, and the same are hereby, vacated and set aside as of March 15, 1914.

It is further ordered, That, effective March 15, 1914, as to and confined in all cases to rates and fares which are included in and covered by applications for relief from the provisions of the Fourth Section of the Act to regulate commerce that were filed with the Commission on or before February 17, 1911, and until the applications including and covering such rates or fares have been passed on by the Commission, carriers may file with the Commission, in the manner and form prescribed by law and by the Commission's regulations, such changes in rates and fares as occur in the ordinary course of their business, continuing higher rates or fares at intermediate points, and through rates or fares higher than the combinations of intermediate rates or fares, provided that in so doing the discrimination against intermediate points is not thereby increased.

It is further ordered, That as to confined in all cases to rates which are included in and covered by applications as above described, carriers may file with the Commission, in the manner and form prescribed by law and by the Commission's regulations, changes in rates under the following conditions, although the discrimination against intermediate points is thereby increased:

Sec. 1. A through rate which is in excess of the aggregate of the intermediate rates lawfully published and filed with the Commission may be reduced to equal the sum of the intermediate rates.

SEC. 2. Where a through rate has been, or is hereafter, reduced under the authority of Section 1 of this order, carriers maintaining through rates via other routes between the same points may meet the rate made by the route initiating the reduction.

SEC. 3. Where a reduction is made in the rate between two points under the authority of Section 1 of this order, such reduction may be extended to all points in the group which takes the same rates as does the point from or to which the rate has been reduced.

Sec. 4. Where through rates are in effect which exceed the lowest combination of rates lawfully published and filed with the Commission, carriers may correct said through rates by reducing the same to equal such lower combination.

Sec. 5. A longer line or route may reduce the rates in effect between the same points or groups of points to meet the rates of the shorter line or route under the following circumstances:

(a) Where the longer line is meeting a reduction in rates initiated by the shorter line.
(b) Where the longer line has not at any time heretofore met the rates of the shorter line.
SEC. 6. Cancelled.

I. C. C. FOURTH SECTION ORDERS

Sec. 7. Carriers whose rates between certain points do not conform to the Fourth Section of the act, which rates have been made lower than rates at intermediate points to meet the competition of water or rail-and-water carriers between the same points, may make such further reduction in rates as may be required to continue to effectively meet the competition of rail-and-water and all-water lines.

Sec. 8. Where rates are in effect from or to a point that are lower than rates effective from or to intermediate points, carriers may extend the application of such rates to, or establish rates made with relation thereto, at points on the same line adjacent or in close proximity thereto, provided that no higher rates are maintained from and to points intermediate to the former point and the new point to which the application of the same or relative rates has been extended.

Sec. 9. Where there is a rate on a commodity from or to one or more points in an established group of points from and to which rates are ordinarily the same, but the rate on the said commodity does not apply at all points in the said group, such rates may be made applicable to or from all of such other points.

Sec. 10. Where there is a definite and fixed relation between the rates from and to adjacent or contiguous groups of points, and the rates to or from one of said groups are changed, corresponding changes may be made in the rates of the other groups to preserve such relation.

Sec. 11. In cases where no through rates are in effect via the various rates or gateways between two points, and the combination of lawfully published and filed rates via one gateway make less than the combinations via the other gateways, a through rate may be established on the basis of the combination via the gateway over which the lowest combination can be made, applicable via all gateways.

SEC. 12. In cases where through rates are in effect between two points, via one or more routes or gateways, which are higher than the combination of lawfully published and filed rates via one of these gateways, different carload minima being used on opposite sides of the gateway, a through rate may be established equal to the lowest combination of lawfully published and filed rates, using the higher of the carload minima, but continuing the present higher through rate if based upon a lower carload minimum.

The Commission does not hereby approve any rates that may be filed under this authority, all such rates being subject to complaint, investigation and correction, if in conflict with any provision of the act

And it is further ordered, That when the Commission passes upon any application for relief from the provisions of the Fourth Section with respect to the rates referred to herein, the order issued with relation thereto will automatically cancel the authority herein granted as to the rates covered and affected by such order. By the Commission:

GEORGE B. McGINTY,

Secretary

General No. 21.
Superseding General No. 7.

FOURTH SECTION ORDER No. 8900

INTERSTATE COMMERCE COMMISSION.

ORDER.

At a General Session of the INTERSTATE COMMERCE COMMISSION, held at its office in Washington, D. C.,

on the 4th day of March, A. D. 1924.

INFORMATION TO BE FURNISHED IN APPLICATIONS FOR RELIEF FROM THE PROVISIONS OF THE

FOURTH SECTION OF THE INTERSTATE COMMERCE ACT.

(Superseding Fourth Section Order No. 383, as Amended, and Fourth Section Circular No. 5.)

The Fourth Section of the Interstate Commerce Act provides in part that upon application to the Commission, common carriers may, in special cases, after investigation, be authorized by the Commission to charge less for longer than for shorter distances for the transportation of passengers or property, but that the Commission shall not permit the establishment of any charge to or from the more distant point that is not reasonably compensatory for the service performed; and if a circuitous rail line or route is, because of such circuity, granted authority to meet the charges of a more direct line or route, to or from competitive points and to maintain higher charges to or from intermediate points on its line, the authority shall not include intermediate points as to which the haul of the petitioning line or route is not longer than that of the direct line or route between the competitive points; and no such authorization shall be granted on account of merely potential water competition not actually in existence.

I. C. C. FOURTH SECTION ORDERS

The burden is upon the applicants to demonstrate that relief should be granted from the provisions of this section. In applications and at hearings carriers have frequently failed to show fully the particular routes and points as to which relief is sought, that the lower rates for longer than for shorter hauls are reasonably compensatory, that the higher rates at intermediate points are not unreasonable, and in general other essential information.

In order to facilitate the consideration and determination of Fourth Section applications, and in accordance with the authority contained in Section 17 of the Interstate Commerce Act,

It is ordered, That the following general rules shall henceforth and until further order govern as to the form and content, the manner of presentation, and the method of justification of Fourth Section applications:

I. Separate applications shall be made for relief as to freight rates and passenger fares.

II. Separate applications shall be made for relief under the long-and-short-haul provision and for relief from the aggregate-of-intermediate provisions of the Fourth Section.

III. Each application must be over the personal signature of an executive officer, a responsible traffic officer, or a duly authorized attorney or agent, specifying his title, and sworn to before a notary public or other officer authorized by law to certify written instruments.

IV. All applications shall show the names of the carriers for or on whose behalf they are made, or, if made on behalf of all carriers parties to a particular tariff, may refer by I. C. C. number to the said tariff.

V. In referring to rates, fares, or charges the I. C. C. numbers of the tariffs in which said rates, fares, or charges are published shall be shown.

VI. All applications shall show

1. The rates, fares, or charges proposed to be established, and articles or classes upon which they are to apply, the points of origin and destination, and the routes between the said points over which the said rates, fares, or charges will be applicable. Where relief is desired from “related” points or "group" points the points or groups should be defined and indicated on the map hereinafter required to be furnished with applications for Fourth Section relief.

2. The intermediate points at which it is proposed to maintain rates, fares, or charges higher than those proposed between more distant points and rates, fares, or charges at such points.

3. A complete and accurate statement of the grounds relied upon in justification of the relief prayed.

VII. Applications for relief from the long-and-short-haul provision of the Fourth Section should be prepared to show at hearings in support of their applications the information outlined below. If a hearing is not desired, this information must be included in the application. It is not to be understood that where such information is included, hearings will not be held in all cases. It is the uniform practice of the Commission to hold hearings upon the request of any interested party.

1. That the rates which it is desired to establish or maintain are compelled rates and lower than reasonable rates for application via the petitioning line or route and not within its control.

2. That the lower rates for longer than for shorter hauls over the same line or route are reasonably compensatory.

NOTE.-In Transcontinental Cases of 1922, 74 I. C. C., 48 (71), it was held that in the administration of the Fourth Section the words "reasonably compensatory” imply that a rate properly so described must (1) cover and more than cover the extra or additional expenses incurred in handling the traffic to which it applies; (2) be no lower than necessary to meet existing competition; (3) not be so low as to threaten the extinction of legitimate competition by other carriers; and (4) not impose an undue burden on other traffic or jeopardize the appropriate return on the value of carrier property generally, as contemplated in Section 15-A of the act. It was also held that where carriers apply for relief from the long-and-short-haul clause of the Fourth Section and propose the application of rates which they designate as "reasonably compensatory” they should affirmatively show that the rates proposed conform to the criteria indicated. It goes without saying that carriers should not propose rates or rate structures for approval in a Fourth Section application which create infractions of other provisions of the Interstate Commerce Act.

The following information is considered pertinent in a showing as to the reasonably compensatory nature of rates: (a) Statement of ton-mile, car-mile, and per car earnings under the competitive rates.

NOTE.—Where a general adjustment is involved covering rates between numerous competitive points and applicable or to be applied via numerous routes, it will be sufficient, ordinarily, to give representative examples of rates throughout the territory yielding the lowest earnings for the longest and shortest hauls involved.

(b) Average revenue per ton-mile, car-mile, and per car on revenue freight traffic hauled over petitioning lines and average haul of revenue freight.

(c) Approximate average cost per ton-mile, car-mile, and per car of hauling revenue freight over petitioning lines.

(d) Approximate average cost per ton-mile, car-mile, and per car of hauling added traffic over petitioning lines.

I. C. C. FOURTH SECTION ORDERS

(e) Traffic density.

3. A statement of rates at representative intermediate points at which rates exceed or would exceed the rates at competitive points, including rates at the highest and lowest rated intermediate points and the distances to and from all of the said intermediate points, together with a statement of ton-mile, car-mile, and per car earnings under the rates to and from such representative intermediate points.

4. That the higher rates for the shorter than for the longer hauls over the same line or route are reasonable. (The usual facts tending to show the reasonableness of rates should be presented.)

5. Whether there is a complaint pending as to the reasonableness of the rates at the intermediate points on the petitioning line or route.

VIII. In addition to the matters required in Section VII hereof to be shown, the following should also be shown where applications are based upon the grounds indicated:

1. Applications based on circuity:

(a) That the transportation of the competitive traffic via the petitioning route and the diversion of such traffic from the rate-making and other routes would not constitute wasteful transportation, considering the degree of circuity and the respective financial conditions of the competing carriers. The following are considered pertinent facts:

(1) The financial condition of the petitioning line as compared with that of the competing lines.
(2) Traffic density on the petitioning line as compared with the competing lines.
(3) The number of routes in operation between the competitive points.

(b) The distances over the petitioning and rate-making lines or routes and the percentages of circuity. (Where the petitioning route is a water-and-rail route, the prorating mileage of the water carrier or the rail mileage to which water haul is equivelent should be given.)

NOTE.—Where a general adjustment is involved covering rates between numerous competitive points over numerous routes, examples should be given of the degree of circuity of the petitioning lines or routes at representative points throughout the territory involved, including the minimum and maximum degree of circuity, both in percentage and number of miles. (c) Whether the rates over the direct or rate-making line conform to the Fourth Section.

A difference of but a few miles in distance is not of itself considered as placing a carrier at such a disadvantage as to warrant relief from the Fourth Section to charge higher rates at intermediate points, but the line or route requesting relief must be shown to be circutious to a marked degree, usually not less than 15 per cent. longer than the short line.

In some instances carriers have, on the ground of circuity, applied for authority to maintain higher rates at intermediate points as to which the haul of the circutious line or route was not longer than that of the direct line or route between competitive points. The Commission is expressly prohibited by the Fourth Section from authorizing higher rates at such intermediate points. The Commission also usually denies relief where the carriers are extremely circuitous, in the absence of special circumstances, believing that from an economical standpoint the carriers are not justified in meeting rail competition over unreasonably circuitous routes.

2. Applications based on water competition:

(a) The names of the water lines and the number of steamers or vessels actually plying between the water points and their tonnage capacity or capacities.

(b) The service over the water lines as compared with that over the petitioning rail lines, and whether the commodities as to which relief is sought are adapted to transportation by water.

(c) The volume of the traffic involved moving over the water lines and also over the rail lines between the same points.

(d) The charges over the water lines, including marine insurance, wharfage, handling, and other incidental charges.

3. Applications based on market competition:
(a) The names of the competitive producing points.

(b) The distances over the direct lines or routes from the various producing points to the common market and the names of the lines or routes over which such distances are made.

(c) Whether the rates from the other producing points conform to the provisions of the Fourth Section. (d) The volume of traffic involved.' (e) Whether similar competition is to be met at intermediate markets. 4. Applications based upon the weak financial condition or high operating costs of the petitioning line: (a) Financial statistics and operating conditions. (b) Same information as required in applications based on circuity. IX. Miscellaneous provisions:

1. In addition to the above-indicated information, any other circumstances which are relied upon as constituting a special case within the meaning of the law warranting Fourth Section relief should be shown.

2. Five copies of a map should be submitted showing the relative location of the various lines or routes, the competitive points, and representative intermediate points at which higher rates are to be charged; also two copies of exhibits.

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