here considered. This increase in the movement by motortrucks is due principally to the fact that the motor carriers that formerly handled gasoline and kerosene have now found it more profitable to handle fuel oil.

It is proposed to establish rates on fuel oil from the Virginia ports to destinations in North Carolina, from the south Atlantic ports to points in North Carolina and South Carolina, and from Charleston to Augusta and Statesboro, as hereinafter described, generally on the basis of the distance scale of rates applicable on gasoline and kerosene from south Atlantic ports, among others, to destinations in southern territory, in connection with which rates fourth-section relief was authorized in Gasoline and Kerosene from Southern Ports, 222 I. C. C. 17. Some deviation from the strict application of the scale is necessary to preserve the relation of certain ports as described in that proceeding. In other instances the proposed rates will deviate from the scale, due to the fact that such rates are made the same as the existing truck-competitive rates on gasoline, which likewise reflect similar variations. For example, applicants propose to establish a rate of 10 cents on fuel oil from Norfolk to Roanoke Rapids, N. C., whereas the scale rate would be 9 cents. The proposed rates to points in Virginia will apply only from Hopewell, Norfolk, and Richmond, and are the same as the truck-competitive rates on gasoline. They are slightly higher than rates constructed on the basis of the scale and are said to represent approximately the actual trucking costs. Rates from Newport News are the same as from Norfolk, but are proposed only to destinations in North Carolina located more than 150 miles from Norfolk. The rates from Port Wentworth are the same as from Savannah.

It is proposed to establish rates only to destinations having tank facilities for bandling petroleum products and at which there is a known consumption of fuel oil in tank-car quantities, but applicants desire similar relief to permit the establishment of rates to additional destinations having such facilities at which similar quantities may be consumed in the future. Generally speaking, the proposed rates will apply over the same routes as the present rates.

Departures will occur at intermediate points of origin, from which the normal rates prescribed in Petroleum and Its Products, 171 I. C. C. 286, 176 I. C. C. 637, and 179 I. C. C. 19, will apply, as it is not desired to establish truck-competitive rates therefrom, since there is no movement of fuel oil in tank cars from such intermediate points. Departures will also occur at intermediate points of destination not having facilities for handling petroleum products in tank

See appendix.

cars, as well as at certain points having facilities at which there is no consumption of fuel oil in tank-car quantities, to which the higher normal rates will also apply.

The following examples illustrate departures that will result from the proposed adjustment. From Charleston to Dunn, N. C., 208 miles over the direct route, the proposed rate is 23 cents. This rate will also be applied over the route of the Seaboard Air Line Railway Company (L. R. Powell, Jr., and Henry W. Anderson, receivers) to Apex, N. C., and the Durham and Southern Railway Company beyond, 288 miles, or 38.5 percent circuitous. To Sanford, N. C., a representative higher-rated intermediate point on the latter route, 224 miles from Charleston, the proposed rate is 24 cents. The rate to Dunn will yield 16 mills per ton-mile and 53.2 cents per car-mile. From Norfolk to Wilson, N. C., 131 miles over the direct route, the proposed rate is 14 cents. That rate will also be applied over the route of the Norfolk Southern Railroad Company (Morris S. Hawkins and L. H. Windholz, receivers), 183 miles, or 39.7 percent circuitous, and will yield 15.3 mills per ton-mile and 50.6 cents per car-mile. To Farmville and Stantonsburg, S. C., higher-rated intermediate points, 160 and 174 miles respectively, the proposed rate is 15 cents.

In Gasoline and Kerosene from Southern Ports, supra, the applicants were granted relief over routes over which they have relief in connection with class rates concurrently in effect from and to the points considered therein. As in that proceeding and in the southern class-rate revision, the rates herein are based on a distance scale, and the fourth-section departures in such rates occur on the same routes, are of the same character, and are due to the same conditions as those authorized in the class rates and in the rates authorized in Gasoline and Kerosene from Southern Ports, supra. We are of the opinion, therefore, that relief herein should be subject to the same restrictions as the relief in those cases. Subject to the conditions and limitations hereinafter prescribed, we find that the proposed rates will be reasonably compensatory and that the relief prayed is justified. Since the proposed rates are based on distance scales and will conform substantially to the equidistant provision of section 4, and because the relief sought is to establish a depressed basis of rates required to meet motortruck competition, the equidistant provision of section 4 need not be imposed in connection therewith.

Subject to the conditions hereinafter provided, applicants will be authorized to establish and maintain over existing routes, on the traffic described, from and to the points of origin and destination here considered, the lowest rates that may be constructed over any line or route from and to the same points, on the basis of the dis

Car-mile earnings are based on an average loading of 66,600 pounds per car.

tance scale of rates applicable on gasoline and kerosene as set forth in the appendix hereto, except as modified for the purpose of maintaining port relations or to meet varying truck-competitive rates, as described herein and set forth in exhibit A of application No. 16842, and to maintain higher rates from and to intermediate points; provided that the rates (a) from higher-rated intermediate points from which the above-described products are shipped in tank cars, or (b) to any higher-rated intermediate point in the territory in which rates are established on the scale described, to which the said products are shipped in tank cars, shall not exceed rates constructed on the basis of that scale; provided further, that rates at other higherrated intermediate points shall not be increased except as may hereafter be authorized by this Commission; provided further, that the rates at higher-rated intermediate points shall in no instance exceed the lowest combination of rates subject to the Interstate Commerce Act; and provided further, that the relief herein shall not apply to rates over any route over which applicants have not been granted relief with respect to class rates concurrently in effect from and to the same points. All other and further relief will be denied. An appropriate order will be entered.

FOURTH SECTION APPLICATION No. 17121

SOAP AND SOAP POWDERS IN THE SOUTHWEST

Submitted October 16, 1937. Decided May 24, 1938

Authority granted, on conditions, to establish and maintain rates on soap, soap powders, and related articles, in carloads, between points in southwestern and Kansas-Missouri territories, and also between points in those territories, on the one hand, and certain points in Illinois, Kentucky, Louisiana, Missouri, and Tennessee, on the other, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. F. A. Leland for applicants.

REPORT OF THE COMMISSION

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

By this application, carriers parties to Agent J. R. Peel's tariffs I. C. C. No. 2719 and No. 2888 apply for authority to establish and maintain rates on soap, soap powders, and related articles,1 in carloads, between points in southwestern and Kansas-Missouri territories, and between points in those territories, on the one hand, and certain points in Illinois, Kentucky, Louisiana, Missouri, and Tennessee, on the other, without observing the long-and-short-haul provision of section 4 of the Interstate Commerce Act. Relief was authorized temporarily by fourth-section order No. 12968. Rates will be stated in amounts per 100 pounds.

2

The proposed rates are equivalent to 24.5 percent of the first-class rates prescribed or approved in the southwestern revision and are to be applied between points where the class rates are based on distances not exceeding 220 miles. Between other points where the class rates are based on distances in excess of 220 miles, the present rates, 27.5 percent of first class, will be maintained. The rates are arrived at by use of the shortest distance by way of junctions at which track connections exist. Under the proposed adjustment departures will occur at both origins and destinations.

1 Soap, soap powders; cleaning, scouring, or washing compounds, n. o. i. b. n.; lye, concentrated, n. o. i. b. n.; laundry sour, concentrated, n. o. i. b. n.; potash, caustic; salts, bleaching (chloride of lime); hypochlorite solution of sodium; and drain-pipe solvent, minimum weight, 36,000 pounds.

* As described in item 35-B, supplement 52 to Agent Peel's tariff I. C. C. No. 2888.

Prior to March 20, 1937, the rates on these commodities were on the basis of 24.5 percent of the first-class rates between the same points. The normal basis of rates on this traffic in southwestern territory is 35 percent of first class. The reduced basis was established to meet truck competition and resulted in returning a substantial portion of this traffic to the rail lines. On March 20, 1937, these rates were increased to 27.5 percent of first class, but it developed that the same necessity existed for truck-compelled rates for distances up to and including 220 miles, the normal truck-competitive distance, as existed when that basis was originally established. Applicants therefore concluded to restore the 24.5-percent basis for class-rate distances of 220 miles or less, but to continue the 27.5percent basis for distances beyond 220 miles.

Since the proposed rates are based on a percentage of the firstclass rates, the fourth-section departures will be similar to those in the class rates based on short-line distances of 220 miles or less. Where the rates at intermediate points are based on short-line distances of more than 220 miles, the departures will be greater than in the class rates, due to the fact that for the longer distances the present basis of 27.5 percent of first class will be maintained.

Typical departures resulting under the proposed adjustment may be illustrated as follows. From Oklahoma City, Okla., to Celeste, Tex., 221 miles, the proposed rate is 27 cents, based on 24.5 percent of the first-class rate for the rate-making distance of 198 miles over the lines of the Atchison, Topeka and Santa Fe Railway Company to Ardmore, Okla., St. Louis-San Francisco Railway Company to Denison, Tex., and the Missouri-Kansas-Texas Railroad Company beyond. It is proposed to apply that rate from Oklahoma City to Celeste over the indirect route of the Atchison, Topeka & Santa Fe, 338 miles, or 53 percent circuitous. The 27-cent rate would yield earnings over the indirect route of 15.9 mills per ton-mile and 28.7 cents per car-mile, based on a minimum weight of 36,000 pounds. To Joshua and Garland, Tex., intermediate points on the indirect route, the respective rates are 32 and 33 cents, based on 27.5 percent of first class for the rate-making distances of 226 and 236 miles respectively.

From Ashdown, Ark., to Poteau, Okla., over the direct route of the Kansas City Southern Railway Company, the distance is 142 miles and the proposed rate is 24 cents, based on 24.5 percent of the corresponding first-class rate. Applicants propose to apply that rate over the indirect route of the St. Louis-San Francisco from Ashdown to Poteau, 203 miles, or 43 percent circuitous. Over the latter route this rate would yield earnings of 23.6 mills per ton-mile and 42.5 cents per car-mile, based on 36,000 pounds. To Talihina and Comp