In the matter of the application of the New York Central Railroad Company for approval of Michigan Central Railroad Signal Department Plan Z-259, showing in red and yellow proposed signal and derail changes at the crossing of the main track of the Ann Arbor Railroad Company with the main track of the New York Central Railroad Company (Ypsilanti Branch) at Pittsfield Junction, Pittsfield, Michigan. File No. 943-115. February 7, 1944.
Application was filed on February 2, 1944, by the New York Central Railroad Company, through its General Counsel, J. J. Danhof, for approval of Michigan Central Railroad Company Signal Department Plan Z-259, as approved by R. E. Green, Assistant Signal-Electrical Engineer for the New York Central Railroad Company and by G. A. Rodger, Signal Engineer for the Ann Arbor Railroad Company, showing in red and yellow proposed signal and derail changes at the crossing of the main track of the Ann Arbor Railroad Company with the main track of the New York Central Railroad Company (Ypsilanti Branch) at Pitts field Junction, Pittsfield, Michigan.
The Commission after due consideration of said application and plans, FINDS AND HOLDS, that said proposed signal and derail changes are in the interest of public welfare and safety and, therefore, said application should be granted and said plan approved.
THEREFORE, IT IS HEREBY ORDERED by the Michigan Public Service Com mission, that the application of the New York Central Railroad Company for permission to make certain signal and derail changes at the crossing of the main track of the Ann Arbor Railroad Company with the main track of the New York Central Railroad Company (Ypsilanti Branch) at Pittsfield Junction, Pittsfield, Michigan, shall be and the same is hereby granted.
IT IS FURTHER ORDED that Michigan Central Railroad Signal Department Plan Z-259, dated March 12, 1941, revised May 23, 1941, and approved by R. E. Green, Assistant Signal-Electrical Engineer for the New York Central Railroad Company and by G. A. Rodger, Signal Engineer for the Ann Arbor Railroad Company, showing in red and yellow proposed signal and derail changes, shall be and the same is hereby approved and a copy of same placed in the files of the Michigan Public Service Commission as File No. 943-115.
MICHIGAN PUBLIC SERVICE COMMISSION.
In the matter of the petition of the Ann Arbor Railroad Company and of Norman B. Pitcairn and Frank C. Nicodemus, Jr., as Receivers of said Company, for permission to discontinue passenger service and to abandon depots and depot buildings, and parts thereof, insofar as they are used for the accommodation of passengers, for the sale of tickets for the transportation of passengers, and for checking the baggage of passengers, at all points on the line of the railroad of said Ann Arbor Railroad Company. File D-3351. February 28, 1944.
An order was issued by the Commission on the third day of March, A. D. 1943, at the verbal request of the attorneys of the Ann Arbor Rail road Company, for a continuance of the above-entitled case for a period of one year, which request was granted and the case continued to the second day of March, 1944
Under date of February 23, 1944, the Commission received from the Ann Arbor Railroad Company, through its attorneys, the following letter :
“In re: D-3351; petition of Ann Arbor Railroad Company for per mission to discontinue passenger service.
“In view of the exigencies of the present war, we feel that the above petition, and any further hearing or decision thereon, should be postponed until after the conclusion of the war, and six months thereafter.”
“On behalf of the Ann Arbor Railroad Company and of the Receivers of said Company, though said Receivers have now been discharged from the active operation of the railroad, we therefore pray an order for a continuance of any further proceeding in the above case for the period above indicated.”
The Commission after due consideration of said request, being of the opinion that the railroad company’s request is in the interest of the public, FINDS AND HOLDS, that said request should be granted.
THEREFORE, IT IS HEREBY ORDERED by the Michigan Public Service Com mission that all proceedings under the petition of the Ann Arbor Rail road Company, first above described, be and the same are hereby continued for a period not to exceed six months after the official termination of the present War in which the United States of America is engaged.
All other portions of the Commission's order, File No. D-3351, of March 3, 1943, will still be continued in full force and effect
The Commission reserves unto itself jurisdiction in the matter and the right to issue any further order or orders in said matter which in its judgment may be deemed necessary.
MICHIGAN PUBLIC SERVICE COMMISSION.
Robbins Flooring Company, et al, Complainants, vs. The Ann Arbor Railroad Company (Norman B. Pitcairn and Frank C. Nicodemus, Jr., Receivers), et al, Defendants. Docket D-3374. June 12, 1944.
By complaint filed August 3, 1942, the Robbins Flooring Company, Bay de Noguet Company, Birds Eye Veneer Company, E. L. Bruce Company, Horner Flooring Company, Kerry & Hanson Flooring Company, Northwestern Veneer & Plywood Corporation and Von Platen-Fox Company, which are corporations engaged in manufacturing lumber and other forest products and the shipping of such commodities between points in the Upper Peninsula of Michigan and points in the Lower Peninsula of Michigan via intrastate routes, allege among other things: By complaint filed August 3, 1942, the Robbins Flooring Company, Bay de Noguet Company, Birds Eye Veneer Company, E. L. Bruce Company, Horner Flooring Company, Kerry & Hanson Flooring Company, Northwestern Veneer & Plywood Corporation and Von Platen-Fox Com pany, which are corporations engaged in manufacturing lumber and other forest products and the shipping of such commodities between points in the Upper Peninsula of Michigan and points in the Lower Peninsula of Michigan via intrastate routes, allege among other things: By complaint filed August 3, 1942, the Robbins Flooring Company, Bay de Noguet Company, Birds Eye Veneer Company, E. L. Bruce Company, Horner Flooring Company, Kerry & Hanson Flooring Company, Northwestern Veneer & Plywood Corporation and Von Platen-Fox Company, which are corporations engaged in manufacturing lumber and other forest products and the shipping of such commodities between points in the Upper Peninsula of Michigan and points in the Lower Peninsula of Michigan via intrastate routes, allege among other things:
That the rates on these products, in carloads, from points in the Upper Peninsula of Michigan to destinations in the Lower Peninsula of Michigan were and are unreasonable, unjust, as well as unduly prejudicial of complainants and unduly preferential of competing mills located through out the United States shipping into the Lower Peninsula of Michigan in competition with complainants, all in violation of Act 300 of the Public Acts of Michigan 1909, as amended. We are asked to prescribe reasonable and lawful rates for the future and award reparation.
Copeland Lumber Company, Northern Hemlock & Hardwood Manufacturers Association, The Greater Muskegon Chamber of Commerce, and Connor Lumber & Land Company intervened in support of complainants.
There was pending before the Interstate Commerce Commission its docket No. 28856 involving similar issues and, upon request of complainants, our decision in this matter was held in abeyance pending the report and final disposition of the Interstate Commerce Commission.
All evidence and briefs submitted in the Interstate Commerce Commission case are accepted as applying to the Michigan case insofar as pertinent, as stipulated by the parties.
Rates will be stated in cents per 100 pounds and are those for shipments in carload quantities. Defendants will be referred to as defendants; complainants and interveners will be referred to as complainants.
The points of origin are all located in the Upper Peninsula of Michigan, which is in Western Trunk Line Territory, and the destinations are in the Lower Peninsula of Michigan, which is in Official Territory.
There are approximately twenty-eight and one-half billion feet (feet herein referred to are board measure) of standing timber remaining within the state of which only five billion feet, or about eighteen per cent of the total stand, is in the Lower Peninsula. In Wisconsin, there is approximately sixteen and one-half billion feet of standing timber, which indicates that the Upper Peninsula is the greater producing area. The total in the two states approximates fourteen billion feet of soft wood, such as pine, spruce, balsam-fir, and hemlock, and thirty-one bil lion feet of hardwood, such as maple, birch, elm, beech and oak. This volume of standing timber is sufficient for many years of lumber pro duction. In 1936, seventy-two per cent of the total output of soft wood and hard wood respectively produced in Michigan was shipped to points in Official Territory; in 1940, the portions of the total were 66.53 and 69.75 respectively. In those years, approximately 65.37 per cent of the lumber produced in Michigan was consumed in Michigan
Saw mills in Michigan, during 1940 and 1941, produced 422,624,000 and 550,002,000 feet respectively, 85 per cent of which was in the Upper Peninsula. In 1941, as compared with 1940, the production in Michigan increased over 30 per cent.
Complainants market their products throughout the United States. They compete at points in Michigan with lumber shipped from points in the Pacific Coast, southern, southwestern, and certain portions of West ern Trunk-line and Official Territories. The rates on lumber from those territories, other than Western Trunk-line to points in Official Territory and within Western Trunk-line Territory, have been reduced in recent years. Similar reductions to points in that territory have not been made in the rates on lumber from the complaining origin territory. Complainants seek reductions in the rates assailed to the extent of 8 per cent, subject to a maximum reduction of 4 cents, and would not object to an increase to 36,000 pounds from the present carload minimum of 34,000 pounds. Complainants’ products are sold f.o.b. destination, The consignee pays the freight charges, and the amount thereof is deducted from the invoice price. Complainants market their products throughout the United States. They compete at points in Michigan with lumber shipped from points in the Pacific Coast, southern, southwestern, and certain portions of West ern Trunk-line and Official Territories. The rates on lumber from those territories, other than Western Trunk-line to points in Official Territory and within Western Trunk-line Territory, have been reduced in recent years. Similar reductions to points in that territory have not been made in the rates on lumber from the complaining origin territory. Complainants seek reductions in the rates assailed to the extent of 8 per cent, subject to a maximum reduction of 4 cents, and would not object to an increase to 36,000 pounds from the present carload minimum of 34,000 pounds. Complainants’ products are sold f.o.b. destination, The consignee pays the freight charges, and the amount thereof is deducted from the invoice price.
A large portion of complainants’ products consists of hardwood flooring, made principally from maple. Other flooring is manufactured by them from birch, beech and oak. In marketing maple flooring, complainants compete at points in Official Territory with sawmills in the Upper and Lower Peninsulas of Michigan, eastern Wisconsin, the southern Appalachian District (comprising parts of Virginia, West Virginia and the Carolinas), northern New York, and Vermont. There is little competition between maple flooring and oak flooring. The former is used largely in the construction of industrial, commercial and educational institutions, whereas oak is used largely in residential and apartment house construction. In certain types of projects, either maple or oak flooring can be used. Oak flooring, used in Trunk-line and New England territories, is obtained principally from producers in the southern Appalachian District.
For any particular grade of flooring, the prices of the product manufactured in the complaining territory range closely with prices for similar flooring manufactured in other sections of the country. Generally, a small difference in price, such as 25 cents per 1,000 feet, controls a sale. The price of maple flooring ranges from $8.00 to $12.00 per 1,000 feet over the price of oak flooring.
Certain complainants market their hard wood principally in Michigan, Wisconsin and northern Illinois. Exclusive of Michigan, their shipments to points in eastern states would not exceed 5 per cent of their total production. In past years, their shipments to these states were substantially larger. Complainants sold hemlock in Detroit, Michigan, Cleveland, Ohio, and Rochester and Syracuse, New York, in the past but, except for certain temporary sales incident to the national emergency, their shipments now are confined to that part of the Lower Peninsula of Michigan north of Grand Rapids. Points, such as Detroit, Grand Rapids and Flint, Michigan, no longer buy complainants' hemlock. Complainants' hard wood comes into competition in central territory with hard wood from the Alabama, Mississippi, Missouri and Tennessee, and in Trunk-line and New England territories with hard wood from the Appalachian region. As to soft wood, complainants' principal competition in central territory is with yellow pine from the South, and in Trunk-line and New England territories with soft wood lumber from the West Coast. Hemlock produced by complainants is not as good a grade of lumber as West Coast pine, but at equal prices such hemlock will displace southern yellow pine in central territory.
One of the complainants, Robbins Flooring Company, is the largest manufacturer of maple flooring in the United States. It ships approximately 70 per cent of its products to points in Official Territory east of the Illinois-Indiana state line. Of these shipments, 85 per cent are to points in Trunk-line and New England territories and 15 per cent to points in Central territory. For the past five years, its production of lumber has remained constant. It maintains large warehouse stocks of flooring at points in the East in order to meet more effectively competition from mills in the South. The stocks of flooring in dealers' yards are not sufficiently diversified or large to permit quick deliveries in substantial quantities. This company normally ships approximately 700 carloads of flooring annually to points east of the Illinois-Indiana state line. Shipments in 1942 exceeded that amount by approximately 150 Cars.
The Bay de Noquet mill at Nahma, Michigan, ships about 70 per cent of its soft wood and about 40 per cent of its hard wood to points in the Lower Peninsula of Michigan.
Prior to February 15, 1909, the rates on lumber from the points of origin embraced by the complaint to destinations in central territory were composed of separately maintained factors to and from the natural gateways and rate-breaking points. On that date, joint commodity rates, based upon the lowest combination of locals by way of the most direct gateway, were established. The joint rates were equalized generally through the principal gateways. Those joint rates have been continued without material change except for the subsequently authorized general increases and reductions. The Interstate Commerce Commission in Northern Hemlock & Hardwood Mfrs. Association vs. Ann Arbor Rail road Co., 168 I.C.C. 218, division 5, found the rates on lumber from origins in Wisconsin and the Upper Peninsula of Michigan to destinations in central territory not unreasonable.
The Interstate Commerce Commission in Lumber Between Points in Official Territory, 214 I.C.C. 493, division 2, found not justified the proposal of respondents therein to establish rates on lumber and related articles between points in Official Territory on the basis of sixth class, 27.5 per cent of first class, and prescribed as a reasonable maximum basis, 25 per cent of first class, minimum weight, 36,000 pounds. Those rates were increased 5 per cent on March 28, 1938. That basis remained in effect until August 20, 1940, when it was voluntarily reduced by the rail carriers to column. 22.5, that is, 22.5 per cent of first class. This case was decided by division 2, but a re-argument was heard before the entire Commission (219 I.C.C. 427) resulting in the Commission adopting the former report with certain modifications. In this proceeding, the Interstate Commerce Commission stated that their findings therein must not be construed as approving column 25 or 25 per cent of first class on lumber in any territory other than Official Territory or from other territories into Official Territory or that lumber rates generally should bear any fixed relation to the first class or any other rate.
The rates from the origins in Michigan and Wisconsin bear no definite relations to class rates. They apply from and to large origin and destination groups which have been maintained for many years and have proven satisfactory. The rates on lumber from southern, southwestern, and Pacific Coast territories to destinations in Official Territory are on an origin-and-destination group basis. Within Official Territory, how ever, the rates on lumber are practically on a point-to-point basis. Complainants oppose any modification of the existing groups in respect of the rates assailed, or any fixed relation to class rates.
The table below contains distances via intrastate routes through Mackinaw City and rates on lumber from points in the origin territory to important destinations in the Lower Peninsula of Michigan.
Table is not shown
Complainants compare their rates with relatively lower rates on lumber for distances from certain points in the South and Southwest to destinations in Official Territory. These points are grouped with other points. The point-to-point distances given do not approximate the aver age distances from and to the established groups. The comparisons, therefore, are not true representations of relative rate levels. The levels of the rates from representative points in the southern and southwestern groups exceed the levels of the rates from complainants' shipping points. The table, above referred to, shows that the present rates on lumber are comparatively lower than the column 25 or column 22.5 rates applicable between the points of origin and destination shown in such table as representative points of origin and destination. The rates sought by complainants would, in most instances, be lower than the rates prescribed by the Interstate Commerce Commission between points within Official Territory, in Lumber Between Points in Official Territory, supra. In certain instances, the rates sought would be as low as, or lower than, the rates for like distances voluntarily established by rail carriers within Official Territory.
Complainants' inability to market forest products successfully at points in the destination territory in competition with forest products from the Pacific Coast, the South and Southwest cannot be attributed to rate differences. Where complainants’ rates exceed rates for like distances within Official Territory, the excess averages approximately 5 cents, which is equal to approximately $1.00 per 1,000 feet of lumber, but it is not shown that this disadvantage is undue. There is no showing that transportation conditions or other relevant considerations war rant the prescription of rates for forest products from the complaining origins that are upon a level no higher than that of the rates within Official Territory.
This Commission, of course, has no jurisdiction whatsoever over interstate rates but, as mentioned in several instances, comparison of interstate rates with intrastate rates is pertinent. The Interstate Commerce Commission, in its report in docket No. 28856, hereinbefore referred to, decided August 5, 1943, found that the rates assailed were not unreasonable. This Commission finds that the rates complained of are not shown to have been or to be unreasonable or otherwise unlawful.
Now, THEREFORE, IT IS HEREBY ORDERED that the complaint in this proceeding be, and it is, hereby dismissed.
MICHIGAN PUBLIC SERVICE COMMISSION.
The Kroger Grocery & Baking Company, Complainant, vs. Ann Arbor Railroad Company, Pere Marquette Railway Company, Defendants. Informal Docket No. 605. September 28, 1944,
This matter is before the Commission upon application of the above named defendants requesting that we authorize the payment of twenty nine dollars seventy-six cents ($29.76) to the above named complainant as reparation in connection with the movement of one carload of potatoes from Pomona, Michigan, to Grand Rapids, Michigan, shipment having been delivered during the month of January, 1943.
At the time shipment moved, the rate legally applicable on potatoes from Pomona, Michigan, to Grand Rapids, Michigan, was 19 cents per 100 pounds (18 cents plus Ex Parte 148 increase) as published by Agent B. T. Jones in his Class Rate Tariff 488-A MPSC No. 602, this being the Class 25-K, as named in Item 8280 of Agent B. T. Jones' Tariff of Exceptions 130-B MPSC No. 639. Route of movement was via the Ann Arbor Railroad, Thompsonville, Michigan, and Pere Marquette Railway. Prior to the date of movement, there was published in Item 266-A of Supplement 26 of Ann Arbor Railroad Tariff MPSC No. A-1022 a rate of 12 cents per 100 pounds, minimum weight 36,000 pounds, applicable from Frankfort, Michigan, to Grand Rapids, Michigan, via several different routes, which included the route of movement of the car in question. Rates named in this item expired December 31, 1942, and through an oversight the rates named in this item were allowed to expire. How ever, subsequent to the movement of the car in question, the rate of 12 cents per 100 pounds was re-established in Supplement No. 33, Ann Arbor Railroad Tariff MPSC No. A-1022, effective February 26, 1943, in Item 266-B via the same routes as applicable in Item 266-A and is the basis upon which reparation is sought. The defendant carriers admit that the rates legally applicable at the time and over the route shipment moved were, under all circumstances and conditions then existing, irregular and exorbitant.
We find, after due consideration of all the facts submitted in the pleadings and record, that the charges assessed were irregular and exorbitant to the extent that they exceeded the charges based upon the subsequently established rate of 12 cents per 100 pounds on the commodity herein at issue moving from Pomona, Michigan, to Grand Rapids, Michigan; that complainant paid and bore the charges upon the shipment in question; that complainant has been damaged to the extent of the difference between the charges paid and those that should have accrued at the rate herein found reasonable; that it is entitled to reparation in the sum of twenty-nine dollars seventy-six cents ($29.76) without interest.
Now, THEREFORE, IT IS HEREBY ORDERED that the Ann Arbor Railroad Company and the Pere Marquette Railway Company, as they participated in the traffic, be and they are hereby authorized and directed to pay to the above named complainant, The Kroger Grocery & Baking Company, of Cincinnati, Ohio, on or before November 1, 1944, the sum of twenty nine dollars seventy-six cents ($29.76) without interest as reparation on account of the irregular and exorbitant charges collected on the above involved shipments.
MICHIGAN PUBLIC SERVICE COMMISSION.
In the matter of the application of the Ann Arbor Railroad Company for permission and authority to discontinue Boon, Boon Township, Wexford County, Michigan, as an agency station. File D-3427. October 25, 1944.
Application was filed on June 27, 1944, by the Ann Arbor Railroad Company, through its Superintendent, D. J. Gareau, for permission and authority to discontinue their Boon Station, in Boon Township, Wexford County, Michigan, as an agency station and establish it as a prepay station only.
After due notice to all parties in interest, this matter was brought on for a hearing before the Commission at the County Court House, city of Cadillac, Michigan, on the 10th day of October, 1944, and, after due consideration of the testimony offered in said matter, the Commission FINDS AND HOLDS: That the amount of business done at Boon Station does not warrant the continuation of the station as an agency station and, there fore, said application should be granted.
THEREFORE, IT IS HEREBY ORDERED by the Michigan Public Service Commission that permission shall be and authority is hereby granted to the Ann Arbor Railroad Company to discontinue Boon Station, in Boon Township, Wexford County, Michigan, as an agency station, and establish same as a prepay station.
The Commission reserves unto itself jurisdiction in the matter and the right to issue any further order or orders in this matter which, in its judgment, may be deemed necessary.
MICHIGAN PUBLIC SERVICE COMMISSION.
In the matter of the application of the Pennsylvania Railroad for approval of Pennsylvania Railroad Telegraph and Signal Department plan, dated May 9, 1930, as revised January 1, 1942, showing in red and yellow proposed signal change at the crossing of its tracks and the tracks of the Ann Arbor Railroad at Cadillac, Michigan. File No. 943-54, November 10, 1944,
Application was filed on November 6, 1944, by the Pennsylvania Rail road, through its Superintendent of Telegraph and Signals, R. F. Raughley, for approval of Pennsylvania Railroad Telegraph and Signal Department plan, dated May 9, 1930, as revised January 1, 1942, and approved by R. F. Raughley, Superintendent of Telegraph and Signals for the Pennsylvania Railroad, and G. A. Rodger, Signal Engineer for the Ann Arbor Railroad, showing in red and yellow proposed relocation of Ann Arbor Railroad eastward home signal in order to eliminate the hand-operated switch from the interlocking at the crossing of its tracks and the tracks of the Ann Arbor Railroad at Cadillac, Michigan
The Commission, after due consideration of said application and plan, FINDS AND HOLDS: That the proposed relocation of the eastward home signal of the Ann Arbor Railroad at said crossing is in the interest of the safety of the traveling public and trainmen and, therefore, said application should be granted and said plan approved.
THEREFORE, IT IS HEREBY ORDERED that permission shall be and the same is hereby granted to the Pennsylvania Railroad and the Ann Arbor Railroad to relocate Ann Arbor Railroad eastward home signal at the crossing of their tracks at Cadillac, Michigan, as shown in red and yellow on Pennsylvania Railroad Telegraph and Signal Department plan, dated May 9, 1930, as revised January 1, 1942, and approved by R. F. Raughley, Superintendent of Telegraph and Signals for the Pennsylvania Railroad, and G. A. Rodger, Signal Engineer for the Ann Arbor Railroad, which plan is hereby approved and made a part hereof by reference and a copy of same placed in the files of the Michigan Public Service Commission as File No. 943-54. -
MICHIGAN PUBLIC SERVICE COMMISSION.
