state rates with other common carriers. The present record does not afford a basis for stating the maximum amounts which may properly be paid, but the compensation must not be excessive. The record indicates that the divisions accorded in the past have been liberal. A specific and complete statement of any basis agreed upon must be filed with us immediately upon its adoption. No order is necessary. 58 I. C. C. VALLEY RAILROAD COMPANY. SECOND INDUSTRIAL RAILWAYS CASE. IN THE MATTER OF ALLOWANCES TO SHORT LINES INVESTIGATION AND SUSPENSION DOCKET No. 414. CANCELLATION OF RATES IN CONNECTION WITH SMALL LINES BY CARRIERS IN OFFICIAL CLASSIFIICATION TERRITORY. Submitted June 23, 1919. Decided August 5, 1920. Valley Railroad Company found to be a common carrier subject to the interstate commerce act, which may lawfully participate in joint rates with other common carriers and have its charges on interstate shipments absorbed under appropriate tariff provision by the roads having the line haul. Its compensation must not be more than is reasonable, and a complete and specific statement of the present arrangement or any other basis agreed upon must be filed with the Commission. Arthur B. Hayes and F. D. Gallup for Valley Railroad Company. Frederic L. Ballard for Pennsylvania Railroad Company. REPORT OF THE COMMISSION. DIVISION 3, COMMISSIONERS CLARK, HALL, AND EASTMAN. BY DIVISION 3: The portion of this proceeding now before us presents the question whether the Valley Railroad Company, hereinafter termed the Valley, is a common carrier which may lawfully participate in joint rates with other common carriers or have its charges on interstate shipments absorbed under appropriate tariff provision by the carriers having the line haul. In response to a questionnaire addressed to the Valley on May 29, 1919, we were advised that there had been no material change in its status since January 1, 1914. The Valley was incorporated April 25, 1901, with an authorized capital stock of $15,000, shares of which aggregating $14,400 in par value were issued for cash. It is controlled by E. L. Day, the principal owner of the Day Chemical Company, through ownership of a majority of the shares of capital stock. The Valley extends from Westline, Pa., where it connects with the Pennsylvania Rail road, to Kushequa, Pa., where it connects with the Mount Jewett, Kinzua & Riterville Railroad. It operates 11.41 miles of "single or first track." Of these it owns 3.50 miles and leases 7.91 miles from the Kinzua Hemlock Railroad Company for $1 per annum. It was testified that the cost of constructing the latter road was approximately $100,000. The Valley's annual report for the year ended June 30, 1905, shows that the interests that control the Valley purchased the entire capital stock of the Kinzua Hemlock Railroad Company for $20,000 and at the same time leased its property, consisting of roadbed and right of way only, to the Valley. The condition of the tracks would warrant operation by trunk line power. The equipment consists of 2 locomotives, 2 combination passenger cars, and 37 freight cars, all of which the Valley owns. Its witness testified that its freight cars are not interchanged with other roads or connecting carriers "as a regular thing," but that it had equipment which it exchanged with connections, and an exhibit introduced by it showed interchange of cars with trunk lines. Its annual reports for the years 1905 to 1918, inclusive, disclose no income from hire of equipment. The book value of the property is shown as $43,222.59. Accrued depreciation for equipment is given. as $12,658. The income account for the year 1918 shows the following: The Day Chemical Company, at Westline, one-half mile from the Pennsylvania Railroad connection, manufactures charcoal and other products. The bulk of the Valley's traffic is furnished by this company, which has its own tracks and motive power, and no plant switching is performed by the Valley. Five independent industries were named as served by the Valley at team tracks. Approximately 500 persons along its line are served by the Valley, which also participates in a small amount of traffic as an intermediate carrier. It has six stations on its line, operates regular trains in freight and passenger service, and carries United States mail. It issues bills of lading and files with us annual reports and tariffs, 1 Deficit, the latter covering both carload and less-than-carload freight. It does not issue through waybills, all freight being waybilled to and from junctions with the trunk lines. The Pennsylvania Railroad formerly absorbed the Valley's switching charge of $6 per car when its own revenue was 75 cents or more per ton. Joint through rates with the Mount Jewett, Kinzua & Riterville and its connections were divided on agreed percentages. The record does not show the present divisions. The Valley is not a member of the American Railroad Association. It pays per diem on cars of other lines, with an allowance of five days' free time, and collects demurrage, but receives no reclaims. As was pointed out in Northampton & Bath R. R. Co. Case, 41 I. C. C., 68, 74, the payment of switching reclaims to industrial lines may result in preferences and advantages to proprietary industries. Undue preference of the shipper who happens to own an industrial road can not be sanctioned in any guise. The arrangements between industrial roads and connecting trunk lines respecting demurrage, car detention, car interchange and reclaims are of fundamental importance, and, in so far as they are involved in this case, they are reserved for further consideration. We find that the Valley is a common carrier subject to the interstate commerce act, which may lawfully participate in joint rates with other common carriers or have its charges on interstate shipments absorbed under appropriate tariff provision by the roads having the line haul. The present record does not afford a basis for determining the maximum amounts which it may properly receive; but the divisions or absorptions must not be more than is reasonable; and a specific and complete statement of the present arrangement or any other basis agreed upon must be filed with us. No order is necessary. 58 I. C. C. BAY TERMINAL RAILROAD COMPANY. SECOND INDUSTRIAL RAILWAYS CASE. IN THE MATTER OF ALLOWANCES TO SHORT LINES OF INVESTIGATION AND SUSPENSION DOCKET No. 414. CANCELLATION OF RATES IN CONNECTION WITH SMALL LINES BY CARRIERS IN OFFICIAL CLASSIFICATION TERRITORY. Submitted August 28, 1919. Decided August 5, 1920. The Bay Terminal Railroad Company found to be a common carrier of property subject to the interstate commerce act which may participate in joint rates with and lawfully receive divisions or absorptions from its trunk line connections. Its compensation must not be more than is reasonable, and a complete and specific statement of any basis agreed upon must be filed with the Commission immediately upon its adoption. E. R. Effler for Bay Terminal Railroad Company. REPORT OF THE COMMISSION. DIVISION 3, COMMISSIONERS CLARK, HALL, AND EASTMAN. BY DIVISION 3: The question presented in this portion of the record is whether or not the Bay Terminal Railroad Company, hereinafter called the Bay Terminal, the respondent herein, is a common carrier which may lawfully receive compensation in the form of divisions of joint rates or switching absorptions out of through rates on interstate shipments to and from points on its lines. In view of changed conditions since the case was submitted, a letter was forwarded on May 29, 1919, to the Bay Terminal, inclosing a questionnaire, designed to procure information as to any changes in its physical properties, manner of operation, or other pertinent matters since that time. With the consent of the Bay Terminal and its trunk line connections the response to the questionnaire was made a part of the record. |