Record P718773 — King v. United States

ete A A 8

[fol. 1052]. Page three shows that, of the 18,900 cars loaded

to less than the minimum weight, 113320, averaging 36,769

- pornds, moved during the first period’ when the minimum

weight was 40,000-pounds and 7,580, loaded to an average of

40,194 pounds, moved during the second period_ when the

minimum weight was 44,000 pounds. — /

- Aceording to page 1, the total tonnage transported during

the entire season was 1, 811,711,000 pounds, of which, accord-

ing to page three, 720,900,100 pounids, or 39.79 percent was

.moved in cars that did not quite come up to the carload ©

minimum weight. In this connection, sight should not be.

lost.of the fact that the reason for.39 and a fraction percent

of the tonnage having been loaded to slightly less than the

minimum weight was the direct result of the loading opera-

tion being performed by labor saving.and expense saving

mechanical devices as contrasted with hand labor, by the ©

~ use of which, there would haye been no difficulty about

getting well in excess of the published minimum weight i in

all of the cars.

[fol. 1053] It may séem, offhand, ‘that the failure to at

‘18,900 cars in one season quite as heavily as the carload

‘minimum, weights would. penalize the shipper rather seri-

ously. To determine whether or. not this was the case, I

have prepared and now offer as my Exhibit No. -39(J) a

statement of three pages analyzing -the 1948-49 season’s

movement from the standpoint of the rate penalty payablé .

for the use of mechanical equipment and thus loading a -

fraction over 39. percent of the tonnage in cars that carried

soméwhat less than the minimum weight. The first page of- .

this statement shows the number. of cars loaded to somewhat

less than the minimum weight that moved during the first

period, i. e., October 26, 1948, to January 31, 1949, inclusive.

It also shows the actual weight transported i in these cars in

comparison with the ecarload minimum weight and, in the

last column, the deficit in weight below the minimum. Page

two makes a similar showing as to the miovement during the.

second period, i. ¢.; February 1st to March 22, 1949, inclusive.

In the upper half of page three I. show, in the first colfimn,

the total number of cars on-pages. one and two, that is, for —

both the first and second periods'of the entire season, loaded —

to less than the- minimum weight. In column two have been

shown the totals of the weight deficits for the first and sec-

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ond periods shown in the last columins on pages one and two.

Because all rates are Stated in cents per net ton, column:

' three converts the figures i in column two into units of net

tons. The raté to Clewiston at time of movement is shown,

in ¢olumn four and in. the next column'-are shown. the

penalties. in dollars for failure to. load to the minimum,

[ fol. 1054] divided among each of the origins. The total for

the season, it will be noted, was $14,740.26 From the last

column it will be observed that, stated in cents per car, this

was an average penalty of 78 cents for the movement as a

whole, or rather for only that part of the movement that

was loaded to less than the minimum weight. The penalties

so applicable on the cane from the respective shipping points

‘ranged from zero‘at Shawnee and an average of 34 cents

per car at Ritta to 99 cents per car at Runyon. Please bear

in mind that these average penalties per car were not pred-

icated upon the entire movement of 42,907.cars, but only

upon the 18,900 cars that were loaded to less thafi the mini-

“mum weight. Had‘all of the cars in the movement been di-.

_ vided into the penalty charge it follows’ that the average

per car penalties would have heen Jess than half of the.

figures shown. cae,

The bottom half of page three is seniine to the. top half

except that, whereas the top-half shows the fotal and aver-

age penalty payments actually due on basis of the rates and

* mMimum weights in effect during the 1948-49 season, which

ates as previously explained do not inelude inereases under

either Ex Parte 148, Ex Parte-162 or Ex Parte 166, the hot-

tom half shows what the penalties would have been on tte

same movement had the rates proposed by the railroads,-

i. e., the rates in the upper half of the page, increased 15

percént under Ex Parte 162 and, further inerensed: 25 per-

-eent under -Ex Parte 166, been in effect. It will be observed.

- that on this basis the total penalty per car on the ears loaded

_[fol. 1055] to less than the minimum w efght would have heen

only $1.13.

I think the. information contained i in’ Exhibits 36(G) to

39(.), inclusive, should enable the Commission to detérmine

whether.or-not the present earload minimam weights are too’

high, but 1 Think that these and* ‘other exhibits which T have .

filed, or will file, should also erable the Commission to de-

/ termine whether, in the event it should be decided that some

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minimum charges in effeet during the 1948-49 seasoh and

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reduction in the carload minimum w einht 1 is in order, there

ought ta be a compensating increase in the rates...In my out- ¥

line dealing with the historical background of these rates I -

have shown that on nwinerous occasions when the Sugar

Company besought the railroads to reduce the minimum

weight the railroads indicated a willir gness to do this pro-

vided the Sugar Corporation would agree to a compensat-

ing rate increase, thus preserving the per-car revenue'which _

has always been considered by the railroads as being on an °

extremely depressed basis. 7

[fol. 1056] In order that a better idea may. be had-as ‘to

just what carload minimum revenné is applicable: and has

been applieable on this traffic in the eight harvest seasons ©

since publication of the tariff of net transit rates filed with

the Fl@rida Commission, I offer as my Exhibit No. 40(K)

a statement of one page showing in chronological order the

carton minimum charges applicable to Clewiston from all &

“of the origins from w hich cane was shipped to Clewiston

during the 1948-49 season.

My Exhibit No. 33(D) is a chronological statement’ of

the rates and my Exhibif No. 35(F) is a chronological state-

ment of the carload minimum weights. Exhibit No! 40(K)

is the product of the two, the changes ‘ini carload minimum

charges having resulted in some cases from a change in the

rates and in others from.a change in the minimum weights.

An examination of the exhibit will disclose that the carload

still in effect range between the absurdly low figures of $6.00

-and $12.10 per ear.” They are actually lower, bdécause the

rates are the same but the ecarload ge pea weights are

lower, than made effective for the 1941-42 seaton as result of

the compromise made with the President of the Sugar Cor-

poration at the November 17, 1941, conference,

The-figures at the foot of the page show what the carload

minimum charges would he: if the present rates were in-

creased under Ex Parte 162 and Ex Parte 166 as proposed

bv the railroads. Even on this basis railroads would earn

[ fol. 1057] during the first period of the season amounts

ranging from only $8.80 to $15.80 per minimum car of 40,000 | i

,pounds and,! during: the second period, amounts ranging .

from only $9.68 to $17.38 per minimum ear of 44,000 pounds.

Even the e: arload minimum charge published in Rule 13 of

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721

Consolidated. Classification, Agent R. FE. Boyle’s IC No.

106, is $25.00 per-ear, including Ex Parte 162 and 156 in-

creases, and it is subject to the Ex Parte 168 interim inerease

of 6 percent. That minimums ¢harge, however, does not

‘apply on sugar cane.

[fol. 1058] Having shown in my Exhibit No. 40(K) the

minimum per car charges. in effect during .the 1948-1949

harvest season in comparison with the minimum per éar_

charges proposed for application in future harvest seasons,

‘T think it would now be well! to show the freight. revenue

on the actual movement ‘during the 1948-49 harvest season

‘on basis of the rates then‘and now in‘effect compared with |

what the revenue would have been had those rates heen re-

vised to-inchide-the Ex-Parte 162 and Ex Parte 166 in- |

_ creases, i. e., the rates we are now proposing. This infor-

mation is set forth in the statement.of one page now offered

as my Exhibit No: 41(X). It shows the actual movemegpt for

the 1948-49 season divided according to origins. The ton-

nage shown in the first column, oppovite each origin, rep-

resents the total weight of cane in all of the ears shipped

except that if in any case the actual loadirig was less than

the carload minimum weight. then the carioad minimum

weight for that carload rather than its: actual weight has -

been. included in the total.

The statement shows the present rates from each of the

origins fo Clewiston and the revenue arrived at by applying

those rates to the tonnage. In the last ‘block have been

shown the proposed rates, that is, the present rates plus

Ex Parte 162 and Ex Parte 166 -increases, and revenue

‘resulting from application.of such rates to the tonnage.

It will be.noted that the applicable revenue on last séa-.

son’s movement of 938,565 tons was $412,646.82, an average

‘transportation charge. of just under 44 cents per ton. Had —

the rates tn effect last season included the Ex Parte 162

and Ex Parte 166 increases the applicable revenue would

have been $595,713.18, an average of just under 631% cents

per ton. In other-words, on:this movement of 938,565 tons

the, Atlantic Coast Line Railroad and Florida East Coast.

Railway were deprived of $183,066.36 by. reason of the,

Florida Commission, denying authority to dhe cs these Ex :

Parte increases.

{fol. 1059] - I now offer as my Exhibit N 0. 42(L), al state-

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722

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- ment showing the mileage seiles of rates on sugar cane pre-.

scribed by thé Florida Railroad Commission many years

ago and now published in the intrastate local tariffs of the

‘Atlantic Coast Line Railroad and Florida East Coast Rail-

way. These are the rates that would apply in the absence of. -

the net transit rates:on sugar cane under consideration in

these proceedings. The scales shown’in Exhibit No. 42(L)

would apply, however, only on traffic from Atlantic Coast

Line Railroad stations. On traffic from Florida East Coast

Railway stations the rates would be predicated on full com-

binations of these scales for the respective distances of the

Florida East Coast Railway to Lake Harbor and of .the

. Atlantic Coast Line beyond. I should also like to remind

you that even these rates, although. considerably higher than

our net transit rates, have not yet been inereased under Ex

Parte 148, Ex Parte 162 or Ex-Parte-166, but are the same.

rates as were in effect back in 1938,

[ fol. 1060] Since aecurate comparisons with the ‘netoul

rates to Clewiston, atiout half of which are for joint hauls,

cannot be made by reference to single line scales as shown -

in Exhibit No. 42(L), I now offer as my Exhibit No. 43(M)

a statement showing what the actual rates from the Flevida

shipping points to Clewiston would be on basis of Be ale

age. scale shown in- Exhibit No.-42(L) from Coast Line

-stations and on basis of combinations thereof from Florida.

Fast Coast Railway, stations. -These rates also do not in-

clude and are not subject to-any of the increases made under

Ex Parte 148, Ex Parte 162 or Ex Parte 166. However, it

will be seen that from all Coast Line stations the rate pre- —

scribed by the Florida Commission, which. w ould be ap-

‘ plicable in the absence of the net transit rates here under

study, would be 71 cents per ton as cempared with present

rate of 30 cents and proposed rate of 44 cents from tlfe

nearby Coast Line stations and present rate of 40 cents and ©

proposed rate of 58 cents from the most distant Coast Line

_ stations. From the nearer Florida East Coast stations, the °

rate prescribed by the Florida Commission is 128 cents per.

ton as compared with present rate of 35 cents and proposed

rate of 50 cents, while fromi Canal Point the Florida Com-

. mission’s prescribed rate is 13814 6 cents as ‘compared with

' present rate of 55 cents and proposed rate of 79 cents. Bear

— tn mind that, as shown by the note on Exhibit 42(1.), the -

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rates so Axed by the Florida Commission are vot Jocal rates

in the ordinary sense, but are themselves in the nature of

transit rates and applicable only when. the product of the

cane is shipped from Clewiston via Atlantic Coast Line Rail-

road. If the sugar produced from the inbound cane is not

shipped out via ACL the rates just named are doubled, rarig-

ing from 142 cents per ton from Coast Line stations to 277% -

cents per ton from Canal Point on the Florida Fast Coast

Railway. —

[fol. 1061] I think, aousdienatl the best. standard Me

‘. which to judge the reasonableness of the ‘rates and per-—

car revenues on sugar cane from South Florida points to

- Glewiston is to compare them with the rates and revénues

on sugar cane which moves from producing points to sugar

‘mills in the long established cane sugar producing State of

‘Louisiana. For many years there has been a heavy move-

ment of cane from Lonisiana fields to mills. The Louisiana

Public Service Commission has prescribed maximum scales

of rates on this: movement; .one ‘seale for application only

when the entire product of the eane is reshipped via roads

handling the cane to the mill and another for application

when the entire product of the cane is not reshipped via

roads. handling the eane to the mill. The latter is exaetly

double the former. These are single line seales, the Louisi-

ana Commission having required that on joint haul move-

ments full combinations of the scales for the distances’ to

and beyond the junction points be applied without the. usual

10 pereent deduction from the separate factors. The scales

SO prescribed are subject to carload minimum’ weight of

30,000 poundr , ;

' Several years ago, the cane originating ae in Louisi-

ana. vohintarily established for distances of 20 miles and.

less a iower scale. of rates but subject to carload mininum

weight of 50,000 pounds. This scale. was-atso applicable

only in the event of \reshipment of the entire product of .

the cane’ via the road liauling cane into the mill. In keep-

ing with the Louisiana Commission’s prescribed basis, the

‘Louisiana roads also.jpublished a corresponding mileage

seale, made 200 percent of ‘that just mentioned, for applica-

[fol. 1062] tion ~vhen the entire product of the cane was

not shipped via roads jhandling.cane into the mill. These

voluntarily reduc "ed rates, subject to the 50,000-pound mini-

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-Inum, were considered extremely. low and the Louisiana

“roads ‘were not willing to make them effective unless. sub-

ject to expiration date. They were continued in effect for

the same carload minimum weights as those in Lonisiana,

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5

several years, but bécause they were.so low the Louisiana

roads determined last season. that they coufd-not afford to

extehd the expiration date and, therefore, the rates were

allowed to:expire with Mareh : 31, 1949, 85

My Exhibit: Noi 44(N) is a comparison of the presefit

séale ‘of rates, °earload minimum weight 30,000 pounds,

rates for distances of.20 miles and dpgs, carload minimum

weight 50,000.péunds, which expired last,March. IT call’ °

your. attention to the fact that even the rates, subject to

minimum weight of 30,000 pounds, preseribed by the Louisi-

ana Commission were considered so.low, and the railroads

were.so dissatisfied therewith, that they were published

under protest and snbject to the reservation quoted in

Note ‘‘A’’ of the exhibit. The Louisiana rates. preséribed

by the Commission, and also. those formerly maintained by

the railroads was a temporary measure, included Ex Parte

prescribed by 78 Louisiana, Commission for distances of.

100 miles and less with the formerly ‘a pplicable scale of

162 and Ex Parte 166 ine reases: as authorized by.the Louisi--

ana Commission. - ¥

[fol. 1068]. Because the mileage sate applicahle on sugar

cane moving to Clewiston applies for both single line move-

ments from ‘Atlantic.Coast Line Railroad origins and joint

line movements from Flarida East Coast Railway origins,

while the Louisiana mileage scales shown on Exhibit No.

44(N) apply or applied for single line movements only,

combination being applicable’ for” ‘joint line movements, I

have shown on Exhibit No. 45(O) the actual rates from

the Florida: producing points to (tewisten in comparison

with what the rates would be if predicated first; on the basis

prescribed by the Louisiana Commission and second, on

the, basis formerly maintained temporarily by the Louisi-

ana roads. The first page shows” the presenieget transit 4

1e second.

rates from Florida points to Clewiston, while |

page shows the proposed net transit rates, iie., the present

rates as increased in‘line with proposals made by the rail-

roads under. Ex Parte 162 and Ex Parte 166.

For the reason that the Florida rates are not subject ‘to

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bel ¢

even this confparison of rates, in cents per ton, does not ac-

eurately reflect the differences between the two bases.

“Therefore, in addition to showing tlie rates therhselves,

_the exhibit compares the minimum per-car revenues re-

sulting from the’ present and propesed rates in Florida

with, what the minimum per-car revenues would be if the

bases of rates and*miyimum weights applicable ain Louisi-

ana prior to March 31, 1949, were nude-effective in Florida.

Ini other words, for the purpose of this comparison, we are

giving the shippers the benefit of the alternation of the

former’ temporary. Louisiana ‘basis, minimum weight 90,-—

[fol. 1064] 000 pounds, with the present Louisiana Com-_

mission. prescribed, basis, ahinimum weight 30,000 pounds.

- Since the carload minimum weight in Florida is 40,000

pounds during the first part of the seasornand 44,000 pounds

during the latter part and since the ‘Sugar Corporation

seeks minimum weights of 36,000 pounds and 38,000 pounds

in lieu thereof, the exhibit compares for the first half of

the season the freight charges under the Florida basis: and

under the Louisiana hasis on a car of 40,000 pounds and

- also on a‘ ear of 36,000 pounds. For the second half of the

‘season it compares the Florida and Louisiana charges on

a car of 44,000 pounds and on a ear of 38,000 pounds. Since —

the Florida minima are 40,000 pounds .and ‘44,000 pounds,

respectively, the revenue shewn on the exhibit for a 36,000-

pound car is based on minimum weight of 40,000 pounds.

and the revenue for’a 38,000-pound ear is based on mini-

mum weight of 44,000 pounds. The revenues resulting from

the Louisfana basis are in some cases’ the same for a care i

af 36,000: pounds as for a car of 40,000.pounds, while iw \

other cases, due to the alternation of the former rates sub-:,~

ject to minimum of 50,000 pounds, with the rates subject.”

to 30,000 pounds, there are slight differences. gil 4

It will be noted the charge for transporting a car of

either 36,000, 38,000; 40,000 or 44,000 pounds from the first

three stations on the exhibit. to Clewiston would be $26.25

- if the. basis formerly in effect in Louisiana were made ap-

plicable in Florida. In comparison, on the present basis

of rates in Florida, the shippers actually pay during the

first half of the season only $7.00 on shipments from Miami

Locks No. 1 and Miami-Locks No. 2 and only $8.00 on ship-

-[fol. 1065] ments from South Shore. During the second

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726

half of the season they pay only $7.79 on shipments from the

first two origins and $8.80 on shipments from. the third

origin as compared ‘with $26.25 on the Louisiana basis.

Even if the rates now. proposed by the Florida Railroads

should be used, the comparison, as show at the top of page

two of the exhibit, would be Florida charges ranging from

$10.00 to $12.76 per car-as compared with $26.25 per car on

the Louisiana basis. The exhibit speaks for itself and I

think it is urmecessary to comment further upon the com-

parisons,

[fol. 1066] However, having show n what the comparisons

‘would be on basis of the rates formerly in effect in Louisi-

ana, but which have now expired by limitation, Ithink the

Commission should know what the «comparisons would be

if Florida rates should be" thade on basis of the mileage

seale applicable in Louisiana? since expiration of the rates

formerly maintained by the Louisiana roads on a voluntary

* and temporary basis. Such comparisons, set up in the same

form, are contained i in. Exhibit No. 46 (P), tlie present rates

‘and minimum per-car charges being shown on page cne

and the proposed Florida rates and minimum per-car

charges on page two. Qf course, the comparisons in this

exhibit are.even more fa¥orable to the present and-proposed

Florida bases than those in. Exhibit 45(O) predicated on the

lower basis that was formerly applicable in Louisiana. °

In order that the Commission may better appreciate and

evaluate the significance of the foregoing. comparisons, it.

would be well to explain at this point that the transporta-

tion characteristics of the Louisiana cane are not greatly

. different in most respects from those of Florida cane.” In -.

“ certain respects, the incidents of. transportation of the.

«Florida cane are somewhat more favorable, while in others

the incidents of transportation of the Louisiana cane are

more favorable, so it is probable that substantially a balance

can be struck, ‘thus rendering the comparisons extremely

significant.

In the first place, the Louisiana care probably dase not

“move in quite as great volume, certainly to any one mill,

[fol. 1067] as the Florida cane but. the Louisiana movement

nevertheless is quite substantial. ..For example, in the |

1948-49 season the Southern Pacific alone transported more

than 5, 000: cars of cane to mill points on its line.

Be pe aor 727.

The Louisiana movement is entirély in railroad cars,

while the Florida movement is in cars owned by the industry.

However, inasmuch as the railroads pay the United States

Sugar Corporation an agreed inileage aliowance for the

use’of its cars there is, as a practical matter, no substantial

difference between the Florida and the Louisiana situations

inthis respect. .. . ; nae

‘The averageténeth of haul in Louisiana is substantially

same as in/#*lorida. The average haul of the Southern

Pacifie (T

Florida hauls range from 2 miles to.29 miles.

The-average loading in Louisiana is greater than in

Florida. The 1948-1949 season’s movement of the Southern

Pacific, which is the most important of the Louisiana cane

hauling roads, averaged 48,200 pounds per car. In the

previous season it was 51,600 pounds. Ss

In Louisiana, as in Florida, the loading of the wagons or

trucks in the fields is performed in practically all instances

by mechanical devises. Generally the device is a mechanical

‘grabber’? which is simply a tractor-bourne field derrick

operating something like a. dragline. The cane is then

hauled to A-frame loader derricks which transfer it from

the wagons into the cars. Field trucks are loaded by hand

only on the very small plantations and the proportion of the

Louisiana cane movement originating on these farms is

negligible. eee tees :

@Most of the sugar factories in Louisiana receiving cane

by rail have their own power and switch the cars between

. [fol..1068] the interchange track of the railroad on the one

hand, and the points of unloading in the mill property, on

_the’ other hand. In such cases, the railroads perform no

‘special switching service, but merely “place the trains of

cars laaded with éane on the interchange track from which

they are taken by the mill engines. Likewise, the mill

engines place the empty cars on the same or, in some cases,

a different interchange track where the railroad engines are

coupled to them for movement to loading ‘stations. - Among

the mills so performing their own switehing service are the

Raceland Mill of Godchaux Sugers, Inc., at Godehaux, the

Sterling Mill of Sterling Sugars, Inc., Franklin, La., the

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47—444

NO) is:slightly over 20 miles, while the hauls of ,

the Missouri: Pacific range from 2 miles to 39 miles. The

hades

<j

Billeand Mitof the Billeaud Sugar Factory ‘at Billeaud,

La., the Erath Mill of Erath Sugar Company, Limited,

Krath, La., and the Cypremort Mill of Cypremort Sugar

C ompany, Iniec., at Burguieres,. La. Thére are others oper-

ating in the samé manner and these aré merely examples.

Cane cars for the Sterling Sugar Refinery moving via

Missouri Pacific Railroad are placed by that road on the

interchange track at Sterling Junetion and subsequent move-

ment from that location is by privately-owned locomotives

of the factory,.the empties being returned jn the same

manner. At both the Alma Mills at Lakeland, La., and the

Westover Mill at Westover or Anchoragé, the Missouri

Pacific engine places the loaded ears on a long track known

as the cane track. One of these mills handles the cars with

tractors from the interchange track to°point of unloading,

while the other handles them with its locomotive. Some

of the mills served by the: Southern Pacific and Texas and

Pacifie do their switching with steam locomotives and others

with gasoline engines, :

At a number of the Louisiana Mills the cars are weighed

by the industry on scales belonging to*the industry and,

as in.the case of the Clewiston moyement, the weights SO

{fol. 1069] ‘ascertained are observed in assessing freight

charges. Among the mills performing their! weighing

services are the Valentine Mill of Valentine Sugars, Ine.,

‘at Jay, La. Incidentally, it also performs its own switching

service, althouglr I failed to name it a while ago. ‘In addi-

tion, there are the Billeaud, Krath and$'ypremort Mills and

others. :

[fol. 1070] One of the most important factors in the sugar

producing industry is the sucrose aaa or sugar pro-

ducing capacity of the cane, Some cane produces more

sugar than other cane and since the volume or tonnage of .

cane handled is an important element contributing to the

cost of mill operation, this feature is, watched very closely

by all of the mills and ‘aecurate records are maintained.

Obviously, other things being equal, the production of a

ton of stigar would cost more if it eT g twelve tons in-

stead of only ten tons of cane to produce it. Freight and-

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other handling charges on two tons of cane would be saved

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729

and there wold be Sate lees tons of raw paatecea to be

handled through the mill rollers.

The Agricultural Department of the State of Keaton

end the Louisiana State University and.Agricultural Ex-

periment Station have maturally been very much interested .

in this situation and have conducted a great deal of re-

search with respect to this and-other phases of the sugar —

cane industry. Certain of their findings are set forth in

Louisiana Bulletin No. 418, issued jointly during June,

1947, by the Louisiana State University and Agricultural

Experiment Station, Louisiana Agricultural and’ Mechan\

ical College. Exhibit No. 47 (R) shows, for the representa-

tive years 1942 and 1945, information taken from Table IX -

of this bulletin concerning the costs to Louisiana sugar

mills of procuring the amount of cane necessary to produce.

100 pounds of raw sugar. The table separates these costs

‘as between cane of different values, i.e., different sugar

producing capacities or sucrose content. According to page -

‘[fol. 1071} 20 of this bulletin, one of the most important

factors causing differences in unit costs, returns and net

profits from. raw sugar mill ‘operation is the number of

pounds of sugar manufactured per ton of cane ground. One

major factor causing variations in the yield of sugar per

ton of cane ground is the percentage of sucrose in the cane.

Differences in sucrose content of cane compe nsated, at least

partially, by corresponding differences in the price paid for

cane by the. mill under the usual cane-purchase contract.

Exhjbit No. 47 (R) shows that in 1942 it cost $3.21 to

procure enough Louisiana.cane to produce 100 pounds of

raw sugar when the cane was,of such quality as to prgduce -

less than 150 pounds of sugar per ton of cane. As the su-

crose content of the cane increased the cost of procuring

enough cane to produce 100 pounds of raw sugar grew pro-

gressively less until the cost was only $2.60 fer cane of

such quality as to produce 180 or more pounds of sugar

per ton of cane. Likewise, the study covering | the year

(1945 showed that the cost of procuring sufficient cane to

produce 100 ‘pounds of raw sugar in that year progressive ly

diminished in direct proportion: to the increase in sucrose

content of the cane. .

[fol. 1072] “Also the United States tepeitilegs of pares

730 2 ; ;

ture keeps close chéck on the sugar cane situation in Louisi-

_ ana and from time to time issues bulletins called Sugar Mill

Letters, somewhat similar to its bulletins in regard to other

farm’ products. For example in a table attached to its Sugar

Mill Letter No. 10, dated June 3, 1949, the U. S. Depart-

ment of Agriculture shows, by seasons for the 1937-1938

season through the 1948-1949 season, the average number of |

pounds of 96 degree raw sugar produced per ton of Lotiisi-

ana cane ground. At the same-time, similar information

for the Florida cane ground at the Clewiston mill is shown

for each season in the nnnual reports of ithe United States.

Sugar Corporation.’ Taking these records as a basis, I have

shown on Exhibit No. 48 (Q), one page, a comparison of the

average number of pounds of 96 degrée sugar produced

per ton of cane ground in Florida, Column (D), with the

average number. of pounds of 96 degree sugar produced

per ton of cane ground in Louisiana, Column (E). The

Florida figure for the 1948-1949 season is not included he-

cause the 1949 Annual Report of the U. S. Sugar Corpora-

tion has not yet come out. In every one of the eleven sea-

sons for which comparisons are shown the average ton of

Florida cane has produced from 14.66 to 48.02 pounds more

sugar than the average ton of Louisiana cane, and in only.

two of the eleven seasons has the advantage of the Florida

cane been less than 22 pounds. ;

In the Iast column, I have shown for each season the

percentage by which the sugar content of the Florida. cane

has exceeded that of Touisiana cane. The excess, Florida

. over Louisiana, has ranged from 8.55 percent in the 1942-_

45 season to 29.65 percent in the 1940-41 season. The ex-*

_tent'to which the sugar producing capacity of Florida cane

has exceeded that of Louisiana cane over the entire period

of eleven seasons has averaged 18.31 percent. i :

ffol. 1073] I now offer as my Exhibit No. 49 (S), four

pages, a comparison of present and proposed rates and—

-.Minimum per-car charges on sugar cane from Florida ship-

ping points to Clewiston with what the rates and charges

would be if predicated on the basis of rates now applicable

in Louisiana. It also compares the values, of the respective

services to the shippers. Pages one gind two imake the

comparisons on. basis of the present Florida rates, while

, * 731

pages three and four show comparisons on basis of the rates

which the railroads are seeking to make effective.in Flerida,

namely,.the presént rates as increased under Ex Parte 162

and .Ex Parte 166. Because the Florida earload thinimum

weight is 40,000 pounds from the beginning of the season

through January: 31st and 44,000 pounds from Febrnary

Ist through the end of the season, pages one and three show

minimum per-car. charges on weight of 40,000 pounds in

effect during the first half of the season and pages two and

four show charges on minimum weight of 44,000- ‘pounds i in

effect during the second half of the season.

Perhaps a. word of explanation is necessary. Looking

at the first’page of the exhibit, it will be seen that the first

column shows what the rates ‘from the Florida origins to

Clewiston would be if predicated on the basis of rates now

‘in effect in Louisiana as shown in Exhibit No. 44 (N). The

second column shows the. present rates from. these.origins .

to Clewiston. ; :

The third column shows «what ‘the ‘carload minimum

charges would be if the Louisiana basis of rates and mini-

mum weights should be substituted for those now applicable,

in Florida. On a minimum car of 30,000 pounds the charges

[fol. 1074] per car w ould be $25.80 on cane moving from

Florida East Coast stations and $12:90 on cane from At-

lantie Coast Line stations. The fourth column shows the

' present charges on a minimum car of 40,000. pounds from

the Flor ida origins to Clewiston. In other words, looking at

the first two lines we see that from Miami Locks-No. 1 and

Miami Locks No. 2, the Sugar Carporation now pays $7.00

for moving a car «tf 40,000 pounds to Clewiston, whereas’

if the present Louisiana rates and minimum weights were

in effect the Sugar Corporation would be paying $25.80

fur moving a car of only 30,000 pounds to Clewiston.

The fifth column shows the percentages that the prese nt

Florida charges shown in the fourth column are of the

Louisiana charges shown in the third column: In other

words, the charge for hauling 40,000 pounds of vane from

these Coast Line and: Florida East Coast stations to Clewis-

ton ranges from 271% percent to 62 percent of the charges

that would be paid for hauling only 30,000 pounds to -

732

Clewiston: if the Louisiana basis were made applicable in

} Florida. .

The purpose of the last ‘two columns is ve show percent:

agewise the value that the service on basis of the present

Florida rates and minimum weights is of the service on

basis of the Louisiana rates and minimum Weights applied

on a car of 36,769 pounds, As shown by page 3 of my

Exhibit No. 38 (I) that was the average loading of. those

cars of cane moving from Atlantic Coast Line Railroad

and Florida East Coast Railway stations-to Clewiston dur-

ing- the first half. of the 1948-1949 season that were loaded

to less than*the carload minimum weight of 40,000 pounds.

The sixth column of figures in Exhibit 49 (S) shows that

[fol. 1075] the 36,769 pounds, transportation of whiclr is

— for the charges shown in the fourth column is

22.8 percent of the weight of 30,000 pounds, transportation

5° which would be obtained by payment of the Louisiana -

basis of eharges shown in the third column. In other words,

taking Canal Point, the sixth origin shown on the exhibit,

as illustrative, by paying only 42.6 percent of the charge

that would be required on the Louisiana basis of rates, the -

Florida shippers obtain transportation of 122.8 percent as

much tonnage as would be obtained on the Louisiana rate,

However, this mere comparison of tonnage does not tell

the whole story. As just demonstrated by my Exhibit No.

48 (Q), the sucrose content of the Florida cane, consequently-

the value of the Florida cane from the standpoint of sugar

- producing capacity, has averaged over a long period of

yearsA8.31 percent or eater than the Louisiana cane. Ac-

tually, therefore, the transportation of each hundred pounds

of F lorida cane is worth‘as much as the transportation of

118.31 pounds of Louisiana cane. Therefore, when we con-

sider not. only that for $11.00 the Sugar Corporation

obtains transportation of an average of 36,769 pounds: (even

when cars.are loaded to less than the tariff minimum

weight) as against only 30,000° pounds in Louisiana for a

charge of $25.80, but that each 100 pounds of Florida eane

is equivalent on the average to more than’ 118 pounds of

Louisiana cane, we find that the value of the Florida serv-

ice is actually 145.3 pereent of the value of the Louisiana

service. This means that, for, charges ranging from only

> -

733

[fol. 1076] 27 percent to 62 percent of the Louisians

charges, the Florida shippers obtain 145 percent of the

value of transportation service that the Louisiana shippers

obtain and adds to the significance of comparisons. of

- Florida with Louisiane cane rates.* ; mon.

_ It is unnecessary to deal at length with the comparisons

shown on the other three pages. of the exhibit but I should

mention that, arriving at the results.in the same way, we

find from page 2 that for the last half of the season, the

Florida ‘shippers-obtain 158.5 percent as much value of

transportation service as the Louisiana shippers although’

the charges they ‘pay range from only 29.8 percent to 68.2

percent of the Louisiana charges. Bear in mind that this is

based on the average weight of only those cars that were

loaded to less than the minimum weight of 44,000 pounds

in the second half of the 1948-49 season, as shown on page

3 of Exhibit No. 38 (1). ) ne

Pages 3 and 4 of Exhibit 49 (S) show that; even on basis

of the proposed Florida rates, including Ex-Parte 162 and

Ex Parte 166 increases, the Florida charges during the

first part of the season wonid range from only 38.8 percent

to 89.9 percent of the Louisiana charges and that during the

second part of the season they range from only 42.6 percent

to 99 percent of the Louisiana charges for services that are

worth 145.3 percent and 158.5 percent, respectively, of the

Louisiana services. - is TL IST

[fol.-1077] As stated, the comparisons made in Exhibit

No. 49 (S) are with what rates and charges would be if

predicated on. thé present basis of rates in Louisiana. In |

order that the picture may be complete, I show on the

statement of one page, identified. as ‘Exhibit No. 50 (T), a

comparison of the present and proposed Florida rates with

what the rates would be if predicated on the. temporary -

rates that were formerly in effect in “Louisiana, but which

expired Mareh ‘31, 1949. I have shown -revenue at the

-Louisiana basis of rates on tte average weight of 48,200. ,

pounds, to which all cars moving over the Southern Pacific -

to Louisiana mills were loaded during the 1948-1949 season

~ but, inasmuch as the rates were subject to minimum weight

of 50,000 pounds, that weiglit has been used in computing

the per car charges. In ¢omparison the Florida charges are:

734

| at the average loading of 43,817. pounds obtained during

the second part-of the 1948-49 season when the minimum

weight was 44,000 pounds. Per ear revenues on the 43,817

-pounds are computed at the minimum weight of 44,000

pounds.- The exhibit. shows: that .from Canal Point the

Sugar’Corporation now pays $12.10 for moving the average

ear of 43,817 pounds to Clewiston, but that if the basis of

rates and minimum weights fOherly in effect in Louisiana |

were ‘observed in Florida it would pay. $36.25 for moying

ss ‘

an average car of 48,200 pounds. In other words, a

.by the first column ‘under the last block of figures, _the

33.4 percent of what the- Louisiana charge would be on

48,200 pounds. As shown by the last column, even the

proposed Florida charge for 43,817 pounds is only 47.9.

percent of the former Louisiana charge for 48,200 pounds.

[fol. 1078] | As illustrated by Exhibit No. 48 (Q), the

average sugar producing value of .Florida ¢ane is 118.31

‘present Florida charge on a ear of 43,817 potinds is only.

percent of Louisiana cane. Therefore, as shown just under .

_ the rate and revenué tables in Exhibit No. 50 (T), 48,817

pounds of Florida cane is equivalent in sugar producing

value to 51,840 pounds.of Louisiana cane. Actually, there-

fore, the sugar content of the average car of 48,200 pounds

of Louisiana cane is 7.6 percent less than the sugar content:

of the average care of 43,817 pounds of Florida cane. Con-

- Sequently, the percentages that the Florida charges, shown

- in last two columns, are-of‘charges on the Louisiana basis,

f eos; : ° ‘ ‘ : eis

although; reflecting transportation of 3,232 more pounds -— -

of cane, actually reflect transportation of about.71% percent —

less sugar in the form of cane than do the Florida charges.

[fol. 1079] Very few commodities have value and other: -

transportation characteristics ‘sufficiéntly* similar to the

sugar cane moving to Clewiston for rate and revenue com-

parisons thereon to afford,a fair index of the reasonable-

ness of the rates on sugarcane. Howéver, since a great

deal of sugar is. produced from sugar beets in several of dur

. western. states, I think it is appropriate that we see how -

the Florida sugar. cane rates and revenues compare with |

the rates and revenues on the sugar beets.

On the first page of niyOdxhibit No. 51 (U), two pages,

are shown the present and proposed scale of rates on sugar

4

.

nee phere EO paras 8 ~ 735

cane from Florida’ points to Clewiston, This seale has

single line applieation from Coast Line stations and. joint

line application from Florida Kast Coast stations. In com-

parison are shown \the single-line scales of rates on Sugar

beets in the nitie most important beet sugar producing

states in the couritry. The present rates on sugar cane

do not include any of the Ex Parte increases, while the

proposed rates are the ‘present rates, plus 15 per cent under

-“Ex Parte 162 and 25 percent under Ex Parte 166. The

rates on sugar beets shown in the-exhibit include such

- increases under Ex Parte 162 >and Ex Parte 166 as have been

permitted by the respective state commissions.

The nine states in which rates on sugar beets are shown

have been arranged in the exhibit in the order of their

importance from the standpoint of production of beet

sugar. In the year 1942 there were nine factories in

California: producing 2,332,000 tons, in Colorado theré were

sixteen factories producing 2 178,000 tons, in Michigan there

-[fol. 1080] were ten factories producing 1,098,000 tons, in ——

-Idaho eight factories producing 1,076,006 tons, in Nebraska

seven factories producing 916,000 tons, in Montana’ five

factories producing 915,000 tons, in Ohio seven factories

producing 895,000 tons, in Utah seven factories producing,

572,000 toris and in Wyoming nine factories producing 447,-

000 tons. There is some movement of surar beets in a few

other western states, but comparatively the movement is

light and does not warrant inclusion of. those states. in the:

exhibit. rf

Largely because of the ease with which they may be,

loaded sugar beets previde quite attractive tonnage for the

motor trucks and the railroad rates applicable thereon in

the western states shown in the exhibit are generally very

much lower’ than they would be were it not for drastic

reductions. that have been made in an effort to meet motor

truck competition. For example, the .rates applicable in

Michigan and on interstate traffic between Ohio points,

Interstate C ommerce Commission during 1924 in IC€ Docket

No. 14881 (91 ICC 677) on intrastate traffic in Ohio and

Michigan and.on intérstate traffic between Ohio points,

on the one hand, and Michigan points, .on the other hand,

but for distances of 45 miles -and less are from 2 22 to 25 cents

?

.

OB! Re ee

and for distances from 45 miles to 75 miles are in-some cases

31 cents and in others 32 cents per ton less than the rates

so fixed by the Interstate Commerce Commission: The rates

‘in several other states also have been: held -down by motor

truck competifion. In addition, because of efforts on the

part of the railroads serving the beet sugar mills to assist

[fol. 1081] those mills in meeting competition with cane

sugar, some of the rates on sugar beets are lower than they

would otherwise be. For example, the California Seale was’

cut back during 1922 by dropping entirely the Ex Parte 174

increase of 25 percent made Augast 26, 1920, the purpose

being an effort to assist the beet sugar operators who were

in distress due to cane sugar competition. Incidentally, the_

- California scale is not published in the tariffs as a mileage

scale but is an unpublished seale in cents per 100 pounds

observed in the establishment of such single line ‘point-to-

point Commodity rates as have been established. ‘Similar

, conditions during 1930 caused the California roads to drop

the 25,percent increase that had been made effective June

25, 1918, for: hauls in excess of 150 miles. Therefore, in

comparing sugar cane rates, with the rates on sugar beets,

it may fairly, be said that we are comparing them with

‘rates that have been held'to a subnormal basis’ by rfason

of motor truck competition and competitive conditions in

the industry. a A rie :

Also I think it should be made clear that a comparison

_ of the rates on sugar cane and sugar beets is not entirely

fair to the railroads handling.cane for the reason that sugar.

beets load’so much gnore heavily than cane, For example,

the average loading of California sugar beets moving via

‘Southern Pacific, which serves eight of the nine beet sugar

mills in, that state, approximates 75,000 pounds per ear,

the beets generally moving in blocks, of 20 to 25-ears.- 'Phe

average loading of the 15,924 ears which. the Northern

Pacific. Railway moved to the mills at Sidney, Billings, and

Missoula, Mont., East Grand Forks, Minn., and Toppenish,

[fol. 1082} Wash., in 1946, was (100,000 pounds. The aver-

age loading of the 6,922 cars handied by the Union Pacific

Railroad intrastate in-‘Utah during the 1946-47 season was

91,440 pounds. Sugar beets are generally moved in stand-

ard gondola cars, some of which are equipped with tempo-

Ou

737.

rary racks to heighten the cars and increase their bulk

loading capacity. Sorby

I think the rates théniselves, or most of them shown on

the first page of my Exhibit’No o. 51 (U), te me 4o illustrate

quite forcibly the. reasonableness of not only’ the present

but the proposed rates on sugar cane from Florida points

to Clewiston. However, from what I- have just said it can

- be readily appreciated that a true comparison of the charges

on sugar cane and sugar beets cannot be obtained’ from a

simple comparison of the rates. . : ;

Therefore, the second page of the exhibit: compares the

present and proposed minimum ‘per-car revenue on sugar |

cane from Plorida points to. Clewiston. with the present

minimum per-car earnings ‘on ‘sugar beets in the ‘states.

—named-on the first page and shown in the same order. In

Nebraska, Montana and Utab, the earload minimum weight.

governing the rates shown on Page one of the exhibit is

‘marked capacity of ecar.’’ In such eases, I have very

‘conservatively used weight of 90 000 pounds to state the

minimum per-car earnings on page two. It is quite certain

that- the marked eapacity of the average ear would be at

least that great since, as already stated, the av erage loading

in Utah is 91,440 pounds. and in Montana it is 100,000

pounds. In. Wyonting the published minimum weight is

80,000 pounds and in California it is 60,000 pounds. In

[fol. 1083} Colorado, Michigan and Ohio it is 40,000 pounds

and in Idaho only 24,000 pounds. However, the pubjished

‘minimum weight of 24,000 pounds is of little significance,

“certainly for the short hauls, since the ie ag are speci-’

-ficially subject to minimum of $20.00 per ca In Colorado,

where the published minimum weight is 40,000 pounds, the

_eharges are subject to minimum of $24.00 per car and in

Michigan and Ohio where the published minimum weight js

40,000 pounds, the charges are subject. to: minimum of

. $20.55 per car. The rates on sugarscane to Clewiston are

‘not subject t to any minimum fer ear charge and where. the”

‘rate is 30-cents-per ton and the published minimum weight

is 40,00 pounds the resuiting charge of $6.00 is all we get

for hauling the car from origin to Clewiston. I think that —

with the foregoing explanation the comparisons on the

lower half of this exhibit speak for themselves.

[fol. 1084] As is well known, ther¢ are two kinds of transit _

arrangements. Qne is the:through rate plan of transit and

the other is transit under a system of net transit rates.

Under the through rate plan of transit, the raw material

is moved from ‘origin into the point at which it is stored, -

milled, mixed, fabricated, cleaned ‘or put through some

other manufacturing process and ordinarily the local rate

is applied on the inbound movement just as it would be

applied on.any other movement not accorded transit ar-

rangement, but as‘to which the originally billed. destination

_ ds the final destination. Upon reshipment of. the- finished

_ product from the transit point, charges are readjusted to

basis’of the through rate on the finished product from the

origin. of the raw material through the transit point’ to -

the ultimate destination; plus a-specified charge known as.

_ a transit charge. The purpose of the transit charge is to

compensate the railroads for keeping the records and per-

forming other services incidert to the operation of. tlie

‘ transit arrangement. - ie |

The other kind of transit arrangement‘is the net transit

rate plan.. Rates known as net transit rates, and generally

a good deal lower than rates applicable on ordinary local

* movements where the inbound-haul is not tied in with-the

outbound haut of the finished product; are’establisled fron».

origins of the raw material to: the transit point. When the

raw material moves into the transit point the local rate, —

not the. net transit: rate,“fs asséssed but wilieii the prodnét ~~

_ of the raw material is shipped from the transit point the -

charge paid on the inbound mevement of raw material at’:

the local rate is’ readjusted and cut back to the lower net

transit rate. In this kind of transit arrangement there is

no transit charge such as is paid under the through rate

plan of transit. es oe ;

[fol. 1085] In some casés, the transit user prefers to pay

‘the net transit rate, rather than the regular loeal rate, on the

inbound raw material in the initial instance and then have

the inbound charge readjusted upwardly to basis of the

higher local rate in the event the product of the inbound |

raw ‘material is not shipped by rail as required by the

tariff. When this is desired by the transit operator, the

privilege is usually granted by the railroad but, because of

‘exhibit.

[fol 16864. By. reference to my Exhibit No. 40. (K), it wil

..be recalled that under the present net transit rates on suga

739

credit requirements in the law, it is necessary in such cases,

and is so required by the Interstate Commerce Commission’s

rules, that provision be made in the tariff containing the

net transit rates that in order to pay on basis of such net

transit, or proportional, rates in the initial instance a surety

bond be filed by the transit operator with the railroad

guar anteeing payment of “the higher inbound local rate

in the event the terms of the transit rangement should not

be complied with and the preduct of the inbound raw

material should net’ be reshipped,. by the railroad -that

rash in the raw material.

—— ——-—» — ——-—+———<

No. 52 (¥), 1 hav e shows It “det ails of a large tarakey of repre-

senttive transit arrangements authorizing. storage, mill-

ing, fabrication, completion of loading, partial unloading,

mixing, grinding, repacking, and other transit privileges

under the through rate. plan of transit. This includes various

transit arrangenients on raw materials originating in Florida _

atid accorded transit arrangements at transit points both

in Florida and in states north thereof. The statement shows

in the third to the last column the transit ¢harges in cents

per 100 pounds and-in the next to last column what. the

resulting transit charges are on minimum carloads of the -

commodities involved. .These transit charges, it will be

-——_ =

noted, range from $10.00 ta: $57.50 per car, being, i as low as

$10,00 in only. one of the. many, ‘instances shown in the

.

cane to Clewiston the shippers pay the railroads on a car

of 40,000. pounds amounts ranging from only $6.00 for the

shorter single line hauls to only $11.00 for joint line hauls

' of as much ° as 29 miles. Under the proposed rates the

charges w ould range from only $8.80 to $15.80 for trans-

porting a carload of 40,000 pounds anywhere from 2 miles

to 29 miles’ During the second half of the season when the

minimum weight is 44,000 pounds, the present charges

range from $6.60 to $12.10 per car and the proposed charges

from $9.68 to $17.38. per car. It would seem when these

meager returns for the line haul transportation service in

~ connection with loads of 40,000 to 44,000 pounds .of cane

740° Fane Bhs Hees

A : “ . . ~ e .

are compared with transit charges under the through rate

plan of transit, ranging around $22.50, $27.00, $34.00, $41.40,

$46.00 and $57.50 per’ car, that both our present and pro-

posed charges under the net transit rates on cane to Clewis-

ton are far and away less than reasonable* inaximum

charges, |

°

6

[ fol. 1087 | | Protestant’s Exnunir $53

. : Docket No. 30140

Direet examination—Fred “Pettijohn:

(J. Give your. name, occupation and address.

_ A. Fred Pettijohn, Director Commerce. Department,

- Florida Railroad and Public Utilities Commission, Talla-

hassee, Florida. aye a3

Q. How long have you been with the Florida Railroad

and Publie Utilities Commission? : :

A. Since June 10, 1925, FS, Ree

Q. What was your experience prior to that time?

_A.From about 1920 to the time that I entered the serv-

ice of the Florida Commission 1 was: engaged in private

practice in Chicago: specializing in eases before the Fed.

_ eral Commission and State Commissions and also deter-

. . mined for the Secretary of War the cost of steel rails com-

mandeered by him for the railroads during World War I.

For about two years prior to 1920 I was Chief Cost

Accountant for the United States’ Railroad Administra-

tion and for about eleven years prior to that IT was con-

nected. with the Mutual. Audit Compaaiy of Louisville, Ken-

tucky, which company: specialized in preparing, introdue-

ing and defending analytical and statistical cost studies

- before the Federal and State regulatory Commissions, -

For about seven years prior to that time I was employed

by railroads in the Disbursements, General Auditing and

[fol. 1088] Statistical Departments in the general offices

and also as Accountant in the divisional offices. :

QQ. Are-yow familiar with the issues invelyed inthis

proceeding? atk

*" A. kam. This proceeding arose out of the Florida Rail-

beeen Lis ae - 741

road and Public Utilities Commission’s failure and refusal

to-make the same percentage increase on intrastate traffic

as was prescribed by the Interstate Commerce’ Commis-

sion in Dockets Nos. Ex Parte 162 and 166. 3 :

~*Q. Have you preparéd any exhibits for. introduction in

this proceeding? : |

cA, I have. ‘° ee . :

2. ‘To what facts and, ninditions did you give considera-

~ tion beforeMletermining what evidence you would prepare

for, introduction in this proceeding?

7 In the Ex-Parte 162 and 166 cases the evidence in-

trdduced before thé Interstate Commerce Commission per-

tained to the four majordistricts and to the United States

ds a unit. No evidence was introduced pertaining to the

operations within any Sfate in the Southern Region. . The

“percentage increases authorized. for the. Southern Region

must, therefore, have heen predicated on the assumption |

that the agricultural and industrial products and traffic

conditions are similar ‘throughout the Southern Region.

[fol. 1089] Unless this assumption is a fact there is and

ean be no justification in my opinion for treating Florida

the same as the balance-of the South. In fact, the Inter-

‘state Commerce Commission ‘recognized a difference in

agricultural, industrial and traffic conditions when it pre-

seribed a 25% increase from, to and within Zone [ of -

‘Western Trunk Line Territory but assigned only a 20%

increase within Western territory othe1 ‘than Zone I .of

Western Trunk Line Territory... (270 1. C.-C. 98-98).

We in Florida know that industrial and: agricultural pro-'

_ duction and traffie. conditions are not similar to those ‘of-

-the Southern Region and this is especially true when con-

- sideration is given to the fact that certain rates to, from

and within the State of Florida are superimposed with the

so-called Florida arbitrary, this arbitrary’ having been

first gs geil in the Southern Class Rate Investigation (100

I. €. C. 518). decided July 7, 1925. The Interstate Com-

merece C ommission stated that less traffic density per mile

of -road and less tonnage per train mile obtaining in Penin-

«war Florida than in Southern territory warranted a

higher rate on traffic from and to the State of Florida.

Subsequently, in’ Growers and Shippers League of

e F

_ North from a point about fourteen miles Southeast of!

742° oe : th

‘Florida vs. Aberdeen and Rockfish Railroad Company,

et-al., Docket 25071,-200 TI. C. C. 273, evidence was intro-

duced showing that based upon information introduced”

by the carriers in Docket 17936, Refrigeration Charges

on Fruits, Vegetables, Berries and Melons from the South,

(fol. 1090] during the years 1927 and 1928 the weighted

average traffic density and weighted average train load-

ing from points of origin in Florida to Eastern territory

destinations. were greater than those obtaining on the Mt-

_ lantie Coast Line Railroad as a whole or on ‘that railroad .

exclusive of the operatfons in the State of Florida. ‘In ad-

dition, since these arbitraries were imposed, that portion

of\the Key West extension of the Florida East Coast Rail-

_ way from the mainland to Key West:has been abandoned,

as has*been that portion of the Florida East Coast Railway

from Maytown to a point about fourteen miles below Okee- -

chobee, ‘and the Florida East Coast has connected up that

portion of the road originally operated from Lake Harbor

Okeechobee to Fort Pierce so as to enable it- to operate

-more economically and efficiently.

These facts, together with the phenomenal increase in the

production of citrus frtits and vegetables in Florida, the

o

inauguration and: phenomenal growth of the use. of oy

transportation and the competition which has been de

_ veloped by-reason of auto transportatiof; have changed the

entire transportation picture and. problem within the State

of Florida. When consideration is also given to’ the fact

that the tons of coal originated in the Southern District

represent 32% of the total tonnage originated ‘and the

tons handled represent: 27.59 of the total tons handled,

whereas coal tonnage is négligible in Florida; it seems ob-

vious that the circumstances ‘and conditions pertaining

[fol. 1091] to ‘agriculturab and industrial jRoduction and ;

transportation and traffic conditions in Flarida are en-

—tirely dissimilar’ to those obtaining in the Southern Ré

gion. For this, reason’ we determined ‘to show as far as

we are uble some'of these differences,

(). What its your, first exhibit? =

A. My first Exhibit, No. 54, is a statement showing the

tons of revenue freight originate within- the Southern

&

st

743

Region and on the system and within the State of Florida

by the Atlantic Coast; Line Railroad Company, Florida

East Coast ‘Railway Company and Seaboard Air Line

4

~ ’

Railroad Company for the period 1928 to 1948 inclusive.

The sourees from which. this information was secured are

reflected on the exhibit.

Q. Why did you go back to 1928 to hart your exhibit?

A. In order to currently estimate whaf, proportion ¢ of

the freight and passenger revenues are accounted for in

each quarter of the year I decided that due to changes in

rates, fares and charges the weighted average revenues for

each quarter would have to be for a period of not less than

twenty years in order to produce reliable percentages, and

having made my estimates of the yearly revenues to. be

prodneed in each quarter on a twenty year average J de-

cided to show. all other data for the same period.

[fol.. 1092] Q. Why did you‘confine your comparisons to

the. Atlantie Coast Line Railroad Company, the Florida:

East Coast Railway Company and the Seaboard Air Line

Railroad Company and not include all carriers operating

to, from and within the State of Florida?

A. Back in 1931 or 1932 I made a comparison of the reve-

- nues earned within the State of Florida and ascertained

that of the total revenues earned in the State about 85%

‘was earned by these three. railroads. I then made an

analysis of the total revenues earned by all railroads op-

erating ‘to, from and within the State of Florida and found

that these three Florida roads earned 89.621 % and 90.563 %

in 1946 and 1947 respectively of the total operating reve-

nues earned by all’ railroads in Florida. I also found that

these three Florida roads earned 90.096% in 1946 and

90.189% in 1947 of. the total intrastate revenues earned

within the State.of Florida. :

’ These three railroads, handling that proportion of the

revenues within the State of Florida, obviously represent ©

a reliable cross section of Florida opgrations.

Q. What specific comment do you desjre to make with

respect to this exhibit? — ;

A. This exhibit shows ‘that for the Southetn Region the

tons originated in 1947 were but 23.5784% “greater than

t

48—444 eters

744

in 1928; that for the three roads the increase was 72.2239%

whereas, the increase in Florida was 106.8747%. (€ ompar-

ing 1947 to 1939 shows that for the Southern Region the

[folf: 1093] increase was 86. 96% for the three. Florida

lines 125.91%, and for the State of Florida 141.62%. This

shows that ‘the Southern Region has not kept pace with

either the three Florida lines or the operations within the

State of Florida.

Q. What is the next exhibit you have prepares to offer I in

evidence in this proceeding?

A. My next Exhibit, No. 55, is a comparison of the

tons of freight originated, terminated and handled for the

three Florida roads and in Florida for the years 1928 ‘to

1948, inchisive. This exhibit shows that the tons of freight

originated, terminated and handled within the State of

Florida increased in a greater percentage than did those

for the systerfi as a whole, |

Q. What is the next exhibit which you have to offer?

A. My next Exhibit, No. 56, compares the revenne ton

miles and the freight revenue for the Southern Region

with the three Florida lines and with the operations of the

three Florida: lines in Florida. The top half of this exhibit

shows that While the revenue ton miles of the Southern

Region iriereased- but 51 .2526% the inerease for the three

Kr lorida lines was 141.1013%, and for the three Florida lines

in Florida 136.9706% , the increase in Florida being slightly

less than that for the system. A comparison of the percent-

- age relationship under Column 4 and Column 6 shows that

’ the inerease in Florida tonnage has been at all times less

[fol. 1094] than the increase on the system. This is due

primarily to Florida traffic having. greater water compe-

tition, both coastwisg and inland, and greater truck: com- —

petition than for the’ system generally. Mahe

The lower half of the exhibit shows that the freight reve- .

nue in the Southern Region increased hut 76.1485%, where-

as, for the three Florida lines it increased 124.1473% and.

the Florida operations increased 132.6647 %. Kitankion is

directed to the fact that while the revenue ton miles in-

creased in a greater percentage for the thrée sy stems-than ~

they did in the State of Florida, the reverse’ is true with

respect to freight revenue, and the difference would be still

i

wii fe

greater had the Atlantic Coast Line Railroad assigned the

revenue innring from the Florida arbitrary direct to Florida .

operations instead of prorating it on a mileage basis.

Q. What is.your next exhibit?

A, -My next t Bxhibit, No. 57, is a comparison of the reve-

nue“‘ton miles, freight*revenue and revenue per ton mile for

the three Florida yailroads.as.a whole and for their opera-

tions within the State of Florida and also & comparison of

the revenue per ton mile obtained in Florida with that ob-

tained in the Southern Region. r

Q. What comments, if any, have you to make with respect

tothisexhibit? ’

[fol. 1095]. A. A comparison of the revenue per ton mile

earnings under Columns 7 and 8 shows that with the excep-

tion of the years 1928 and 1930 the revenue per ton mile in

Florida was greater than the revenue for the system as a

whole. . Again, had the Atlatitie Coast Line Railroad as-

signed its freight revenue derived from the Florida arbi-

trary direct to the State of Florida the difference in reve-

nue ton mile earnings would have been greater than re-

flected under Colufnns 7 and 8.

Likewise, a comparison of the ton’ mile earhings under

Columns 8.and.10 and the percentage under Column. 11

shows that-the ton mile earnings in Florida have ranged

from t627% to 64.92% greater than the ton mile earnings

in the Southern Region.

Q. What is the next exhibit which you shave to offer?

A. My next exhibit, No. 58, is a comparison of the reve- -

nue passenger miles and passenger revenue of the South-

ern Region with the system-and Florida operations of the

_ three Florida lines and.reflects the percentage relationship

of each year to 1928.

Q. What comments, if any, have you to make with re- .

spect: to this exhibit?

"_A.’ A compartsor of the eaia Giaahine by vears to 1928

under Columns 2, 4 and 6 shows that the revenue passenger

. miles mereased in the Southern Region slightly over 45%,

compared to-an increase of 124.5% in Florida and 158.5%

for the three roads as avwhole; that with respect to pas-

[fol. 1096] senger revenue the Southern Region ‘increased

but 6%, whereas, Flotida operations increased: 50.9%

: : /

746 Pee

‘and the three ‘roads as a whole increased 70.5%, again

showing that there is no real relationship between the

Southern Region, the three Florida lines and the operations

of the three Florida lines in, Florida.

Q. What is thé next exhibit you have to offer?

A. My next ‘Pixhihit, No. 59, reflects a comparison be-

tween the system and the Florida operations'of the three

roads of the passenger miles, passenger revenue and reve-

nue per passenger mile, and also.compares the revenue

per passenger fnile in Florida with that for the Southern

Region. vey

Q. What comments, if. any, have you to- make with re-

spect to this exhibit?

A. This exhibit shows in Column 3, comparing 1948 to

1928, that the percentage of revenue passenger miles iti

Florida to the System has declined from 38.14%, to 33.19%

and that the passenger rev@hue, Column 6, has declined

from 38.56% to 34.12%, or that the passenger revenue

has, not declined as*much as have the revenue passenger

miles. A comparison of the revenue per passenger mile,

Columns 8 and 10, shows that for 1947 the revenue per

passenger ‘mile in. Florida was 8.75% greater than for

the Southern Region. A comparison of Columns 7 and 8

shows that with the exception of the year 1941 the revenue

per passenger mile was greater in Florida than for the

‘[fol. 1097] system as a whole.

Q. To what do you attribute the percentage decline in

revenue passenger miles and passenger revenue Florida -

compared to the system?

A. In the first place the railroads, Florida being a ter-

minal State, -fix their schedules for the benefit of the

through passengers and not for the bén@fit of the. local

passengers. In other words, the passenger train sehed-_

ules are not fixed so that they can be utilized in a manner

desired hy the traveling public. In the second place, those

local scheduies are so slow and the equipment so antiquated

that they are.not attractive to the traveling public. -In

the third place, the earriers have intense competition with

the buses between all Of the major pointsin Florida. Tn

the fourth place, the citizens of Florida utilize their own.

pasvate care extensively, and, in the fifth place, where

q

v

speed is desired air transportation is utilized. In fact, the

branch line* passenger traffic and local passenger. traffic

within ‘the State of Florida appears to be doomed undér .

present conditions and.unless-.the carriers inaugurate a

faster |service with’ more desirable..sehedules they will,

in my opinions continue to jose the intrastate passenger

trafic in Florida, .

Q. What is your ong exhibit?

A. My next Exhibit, N ‘0. 60, is a comparison of the train

miles, locomotive miles, ear miles and revenue ton miles

[fol. 1098] in the Seuthern Region with similar data for

the system and for the State éf Florida for the same three

2. lorida roads.» ;

Q. What comments, if any, have you to make with Te-

spect .to this exhibit?

A. This exhibit shows that the revenue tons | per train

mile, per locomotive mile and per car mile were less for

the three roads and within the State of Florida than for

the Southern Region, but it also shows that the operations

in Florida were more favorable than for the system: of —.

these three roads. The bottom half of the exhibit shows

information with respect:to passenger serViee, and. the

operations of the threé roads and within the State of

Florida are more favorable than in the Southern Region.

(). What is’ the next “exhibit which you have prepared

to offer? | 7 Pee pels

A. My next Exhibit, No. -61, shows for the three Florida

roads the system and Florida train miles, locomotive miles

and ear miles operated in both freight and passenger serv-

ice with the percentages that the paeeeneer serviee bears to

the total of both services. :

«QW hat comments, if any, have you to make with re-°

spect to, this exhibit? 3 eh

A. This exhibit shows that in each instance, with the

exception of the train miles in 1938 and the. locomotive

miles in 1946, the passenger percentage of the tetal freight

[fol. 1099] and passenger. miles is greater in Florida

than for: the system as a whole. 2

Q. What does this indicate to your mind?

A. Te thaieaten to my mid that the Florida roads aré

operating moré passenger train miles, locomotive, miles

rs i

Wx ee a ea

: .

and car miles within the State of Florida than ard w war-

ranted, and this is especially true in view of the fact that

the passenger business is being operated at’a loss.

“

(). What is. your next exhibit?

A. My next Exhibit, No. 62, shows the freight revenue —

and the passenger revenue for ‘the system, for -the State of

Flerida and intrastate within Florida.

Q. What comments have ‘you to make with respect to:

this exhibit?

“A. It shows that whereas the system freight revenue

has: increased 100%,- the increase within the State of

Florida has been 106.98%, but the intrastate revenue has

only inereased 15.90%. — ! :

Q). What conclusion, if any, do you draw from this small

intrastate increase?

A. The small increase in intrastate traffic and revenue

has in my opinion been due entirély te the diversion of >

traffic from the rail carriers‘to motor common carriers,

contract carriers and private carriers. The State High-

way Department maintains nine and one half thousand

miles of paved highway within the State over which traf-

[fol. 1100] fie of practically all kinds moves by truck; in

fact, trucks are now handling intrastate citrus fruits, vege-

tables, petroleum products, lumber, fertilizer, logs and

many other commodities in volume that: formerly moved

by rail. Truek transportation, in fact, ts not only more

expeditious, but in most. cases cheaper and espetially* so

when consideration is. given to the fact that a truck. haul

is necessary from the point of origin to the rail head and

from the destination termina! to its final destination, Ob-

_ viously, any increase in the presently effective intrastate

rates will only result in further. diversions: from the rail

carriers.

Q. ‘What have you to say with respect to the lower half

of this exhibit which deals with passenger. traffic?

A.. The lower half of the exhibit shows that while the

system revenue of the three roads increased 78% and the

revenues within the State of Florida: increased 58%, ‘the

intrastate passenger revenue declined: 39. 2%.

(). What conclusion do you draw from this showing?

A. This showing indicates to me very clearly that the

%

s)

. 749

reduction in passenger revenue has been dte to increased é

rates, fares and charges and to diversions of passengers.

to cammon carrier buses, automobiles, airplanes and to

private cars. It further indicates to me that the intrastate .

travelers prefer other modes of fansportation to that of

the rail carriers and under present conditions it would ap-

pear that the carriers’ program’ of building better road

[ fol. 1107]. beds, instaJling heavier steel, operating faster

‘and more luxurious trains is ngt warranted by the volume,

of intrastate passengers which they can hope to attrac

‘to utilize rail service because, despite the improvements

in rail transportation since 1928 there has heen a marked

‘decline in the revenues from intrastate as beta) In my

opinion the carriers should concentrate on safety, depend- |

ability and comfort rather than upon the luxuriousness of

the cars and the speed with which they are operated he-

cause under aio conditions where speed is a factor can the

rail lines hope to compete with airplanes. In fact, they

cannot hope in Florida to compete with private ears be-

tween almost all important centers. :

Q. What is your next exhibit? ©

A: My next Exhibit, No. 63, is a statement comparing

thecombined net railway operating income of the Atlantic

Coast Line, Seabvard. Air Line and Florida East Coast

’ Railway, system and State of Florida, with the Southern

Regien, for :the years indicated and separating this net

railway Aperating income between freight service, pas-

‘senger 4ervicp ayll unassigned services. I was not able

to abtain this mformation for the Southern Region for.the

vear 1948. ae . Bs

This exhibit shows, that for the years “1944. and: 1945

the Southern ‘Region, the three Florida lines and the op-

erations in Florida all showed a net railway operating

-ineome from passenger service; that subsequent to that

period only the three. Flortda lines system operations

ffol. 1102] showed a net railway @perating, income; that

for 1947 and 1948 the system and Florida passenger deficits

were both in excess of 50% of the.credit from freight op-

orations® A comparison‘of the net railway operating in-

come 1947 to 1944. shoas that while the: Southern Region

freight net railway operating income increased 39.40%, the

a

750 eee oe |

operations’ of the three railroads increased 32.41%; baie:

as, the operations within the State of: Florida increased

This exhibit tends to show that no increases are Bees:

sary for the three railroads operating within, the State

of Florida either for the system-as a whole or for Florida

operations if passenger business is placed on a paying .

basis; and that the loss from passenger revenue is the

. real reason the carriers are seeking additional increases

in freight revenue.

Q. What is your next xhibittik

A. My next Exhibit, ‘No. 64, shows for the years 1936

to 1947 inclusive, and for the three roads and for the

Southern Region the net railway operating income sepa-

- rated between freight, passenger and unassigned services.

Q. Why did you start _ the } year 1936 in this state-

ment? . !

A.. pecanse that -is as far back as-our annual reports |

show a separation of net railway operating i ingome between

freight service and passenger service.

This exhibit shows that the freight net railway operat-

ing income for the ealendar year 1948. was the seeond

[fol. 1103] highest earned during the entire period and

that with the exception of. the War years 1942, 1943 and

- 1944 it was greater than the combined freight and pas-

senger income for any of.the other years: Thisg statement

further shows that if it were rot for the CD losses |

the railroads would : not be in \ need of any additional reve-

nue whatever.

Q. What is your next exhibit?

A. My next Exhibit, No. 65, is a statement comparing

the actual freight revenue, passenger. revenue, total reve- .

nue, operating expenses, net railway operating revenue

and net railway operating income with the amounts which

would be produced ‘by expanding the revenues for the:

‘three months ended March 31st, six months. ended June

80th and nine. months ended September 30th, 1948, on the

ratios which each of those quarters bore to the year based.

upon the weighted average for the twenty years ended

1947. ‘ ; ;

“

751

Q. What do you mean by the term ‘‘expanded .to yearly

- basis combined’’?

A. That means that I have simply taken the three rail-

‘roads and treated them as a unit and expanded their op-

erations on the theory that they were a combined railroad.

Q. What do. you mean “expanded on a P yearly basis. in-

dividual’’? :

A. That means that I have expanded the operations of

each railroad separately and combined the separate re-

-[fol. 1104] sults. : Rete

€ Q. What do the results of your expansions show?

fire’ * They show that with respect to the\freight revenue

my estimate on the three months basi wfis aliout $3,000,-

000.00 short; on a six months basis was/practieally in ac-

cord with the actual; and on-a nine thonths basis was a

little over $2,000,000.00 in excess of the actual.

With respect to the passenger revenue the estimate based

_ upon the first three months ratio was about $2,500;000.00

y. in excess, of the year’s actual figures ; whereas, for the six:

months ‘and nine months periods the estimates were less

than’ $200,000.00. difference. With respect to. the total

revenues the estimates for the first three months and first

six months were very close to the ¢ ete al refenues for the

year, but the estimate on the nine ménths basis was about,

$2,700,000.00 in excess of the actual. :

' With respect to operating expenses my estimates. in

eaéh ease exceeded the actual expenditures by from #2,-

500,000.00 to $4,500, 000.00.

My estimates. for net railway operating revenues were

from £1,900,000.00 to $4,300, 000.00 less than actual net rail-) ”

way operating revenues, while onthe other hand. my net

railway operating income Was, from $2,100,000.00 to $3-

700,000.00-in excess of the” actaal. ‘In this. connection I

ight say that on the first three months basis I over-

¥ we iated the Atlantie Coast Line’s net railway operating

income $4,507,616; that I over-estimated the Florida East

. [fol. 1105] Coast Company’s net railway operating in-

-eome $715,032; but that I under- ostimated the Seaboard —

‘Air Line’s $1, 492,097. ‘I also over-estimated the Atlantic : .

Coast Line and the Florida E ast Coast for the six months

ended June 30, 1948, but again snare es Sea-

board by about $300,000.00.‘ - ; = 7

. What is the next exhibit you Have ieewatea for in-

troduction in this proceeding?

A. My next Exhibit, No. 66, is one show ing the invest-

merit, net railway operating income and rate of return of.

the Florida East Coast Railway Soe for the calen-

dar -year 1947.

Q. From what source did you secure the investment in

railway property used :in tr ansportation service?

“A. That was secured from the annual report of “the

Florida East Coast Railway Company for the calendar

year 1947. It appears on Page 212 under Schedule 211N.

Q. From what source did you secure the depreciation

and amortizatian reserve?

A. That was taken from the annual report of the com-

pany ‘for the calendar year 1947, : ;

(). The investment in transportation property less re-

corded .depreciation and amortizatéon is arrived at by

deducting the depreciation and amortization from the in:

-vestment, is it not?

[fol. 1106] . A. It is.

Q. How did you get the apportionment between freight

‘service and passenger, service?

A. I took the total maintenance of way and structure

expenses and the total maintenance of equipment expenses

exclusive of depreciation and amortization for the calendar

year 1947. and found that of these expenses 57.246 was

freight and the balanecé passenger. , .

(). Why did you use only maintenance expenses in pro-

rating the investment in property?

A. Because in.my opinion the maintenance expenses. ap-

plicable to freight ‘and passenger seryice more clearly re-

lect the investment of the property applicable to each of the

services than do total expenses or any other single factor

Q. Please explain your next ite apital. .

A.. The working capital represents 9.606% % “of the opér-

ating expenses for the calendar year 1947. ;

Q. From what source did you secure this 9.606% ?

“A. Carriers’ Exhibit No. 1, Page No. 2 2, ¢ ‘olumn 9, in Ex

Parte 166 shows the total expenses for 1946 to Have been

753

$6, 357, 415, 175. In 269 ICC 33-47 the working capital in-.

‘eluding material and supplies i is stated to be $610, 712,400. 00,

“which amount is 9.606% of the total operating expenses. _

[fol. 1107] I-therefore used this same percentage in making

an allowance for working capital for the Florida East Coast.

Railway Conipany and applied this percentage to the total

operating expenses, to the freight expenses and to the

passenger expenses respectively. ;

Q. Your rate base consists, does it not; of the investment

‘in transportation property less recorded depreciation and

amortization plus working capital?

A. It does.

Q. \ ‘here did you secure the net railway operating in-

come ?.

A. That is taken. from the annual report of the: raitw ay.

company.

Q. The rate of return is a a computed figure, I is it not?

A. Et: ie.

(). It shows that on. ireight business in 1947 the Florida

East Coast had a return of a little over 8%, does it not? -

A. It does. rae :

Q. Explain vedere figure, net railway operating in...

come revised to reflect $1,400, 000.00 excess profit tax refund

gg gare to prior period.

This $1,400,000.00 excess -profit réfand is simply de-

Poet from the recorded net railway operating “income

[fol. 1108] because it is applicable to periods prior to 1947.

Q. Why did you prepare an exhibit showing the rate of

return of the F lorida East Coast Railw ay. only?

A. Primarily beeause the Atlantic Coast Line and Sea-

board Air Line do not make investment returns and depre-

ciation allowaaiges applicable to Florida operations. Aniy

attempt to apportion the investment to Florida operations

would necessitate rather lengthy investigation and a de-

termination of proper factors, for which we have neither the

force nor the time available. In addition, it is well known

by this Commission and others that. the operations of the

Florida East Coast Railway are less favorable in Florida .

than are those of-the Atlantic Coast Line or the Seaboard

Air Line. "eae ‘es Foor

754.

Q. What is the next ‘exhibit which you have prepared ;

to offer?

A. My next Exhibit, No. 67, is identical with Exhibit

No. 66, except that it is for the calendar year 1948. —

Q. Was it prepared in the same manner as the previous .

‘exhibit? - :

‘A. It. was. :

Q.And what does it show with respect to the freight rate |

of return? :

A. It shows that the freight service produced a return

of 12.35%.

Q. Do you think that thie Florida Railroad and Publi¢

Utilities Commission would he entitled to authorize a return

on intrastate operations of over 129%? |

[fol. 1109] A. No, sir, J do not.

Q. Has the Florida Legislature to your knowledge ever

passed an ‘Act similar to the - National Transportation

Policy?’

A. It has not to my knowledge. :

Q. Do you know what the law is in Florida. with respect

to imtrastate rafes?

fi. be. oee Supreme Court of Florida in 62 Florida

315 held that ‘‘w here the same property, labor and manage- *

ment are used at the same time by a common carrier in

interstate and intrastate commerce the value of the prop-

erty and labor and management used should be properly

apportioned in determining the reasonableness of the coni-

pensation for service tendered by the carrier in the intra-

state business taken separately and as an entirety, or in

comnection with the interstate business currently done. ,

Q. Do you know of any Florida: law which would justify

the Florida Railroad and Public Utilties Commission plae- es

ing upon the shippers of freight excessive rates in order to

compensate for the loss in passenger revenue?

A. I do not.- On the contrary, the Supreme Court’ of

Florida held (Vol. 63, Page 288) that the remedy of the

carriers for insufficient compensation for the rendition of

passenger service is an application for an allowance of more

remunerative rates.

Q. Did the evidence introduced ts the carriers in the

proceeding before the Florida Railroad and Public U til-

: (985

[fol. 1110] ties Coudhisaion i in Hosket. 1574, which decision

is now under attack, ‘introduce any evidenée whatever

showing what the intrastate’ inyestnent, operating revenues,

operating expenses, taxes, joint facility rents and equip-

_ment rentals were?. i

A. They did not. | .

Q. W ould the evidence filed by ‘the carriers’ in Docket

1574 permit the Flofida Railroad and Public Utilities Com-

mission to perform its. duties undér the conditions laid

down by the ‘Florida Supreme Court? ?

A. It would not. eee ;

Q. What is the next exhibit you have to offer? -

A. My next Exhibit, No. 68, is one comparing the net

railway operating income for the three months ended

March 31, 1947, and March 31, 1948,-with the percentage

increases or decreases by ‘districts or Pegions with similar

infortiation prepared for the Atlantic Coast Line Railroad

Company, Florida Kast Coast Railway ‘Company arid Sea-

board Air Line Railroad Company for the system and for '

their operations within the State of Florida.

Q. Is this exhibit identical with Exhibit No. 59 which

you introduced in Docket, al before the Florida 3)

mission? . .

A. It is.

Q.’ What does this exhibit show? .

ffol. 1111] A. It -shows that except for the Southern.

Region which showed an increase of 84%, the 1948 net

railway operating income was from 3.5% to 76.8% less than

ia the preceding year and. that for the United States as a

’ whole it was 19.1% ; whereas, the three railroads operating

to, from and within F lorida show an increase of 25.9% for

the system and 26.6% for the Florida operation.

Q. What is your next exhibit? 2

A. My next Exhibit, No. 69, is similar to Exhibit No. 68,

except that it is for the six months ended June 30, 1947 and

es.

~ Q. What doés this exhibit es ;

A. It shows that ail of the regions or districts eae’ the

Pocahontas Region and the Northwestern Region of the

Western District had a percentage increase in net railWay

operating income for the first six months ended June 30,

¥

\

736

1948; that thé average inerease for the U nied States was :

9.94% +for-the Southern Region was 22 676) : for the three

Florida roads as a system was 51% and that the Florida

. operations were 59,97, a higher increase than obtained for

any district or region. .

(. What is your next exhibit? - :

A: My next Exhibit, No. 70, is.similar io E <hibit ‘No. 68,

except that it covers the uine months engled September

30, 1947 and 1948. :

(fol. 1112] Q. What does this. exhibit show?

A. This exhibit’shows that the net railway operating

income for thie nine months ended September 30, ]948, was

from 8.7% in the Pocahontas Region to 86,5 higher in the

‘New England Region than for the similar period of 1947.

It shows that the Southern Region incre ‘ase was 44¢° com-

pared fo an increase of 103.267 for the three Florida roads

as a system and compared to 167.4% for the operations in

. Florida. tie PARK

QQ. What is your next:exhibit? . ° > oe

A. My next Exhibit, No. 71, shows the same information

‘as the previous exhibit except tliat it is for the twelve

months ended December: 31, 1947 and 1948.

(). What does this exhibit show? :

ry It shows that each of the regions ai ad’ distriets and the

United States show a. percentage ineréase in net railway

operating income in 1948 over 1947 from<7.30¢ in the: Po “a

hontas Region to 89.2% in-the New Engtarid Region; that

the Southern Region increase was 33.0%", W hereas, ‘the in-

>

- crease for the three. Florida roads was 50.7% and for the

three Florida roads Florida operations 60.4%

(. Do these last four exhibits introduc “ed: by you further

confirm your opinion that the agricultural, industrial ane

traffic comditions in the Southern Region are ot typical of

~ those’tn the State of Plorida ?

A. They most certainly do. -

a8

: : 3 | is 757

ffol. 1113! : oa : os

ae PROTESTANT'S eSuuner No. 54 .

TCC. Docket No. 30140 int

= “Statement Showing ‘Tons of Revenue Freight Originated Within Southern Region; and

“on System: and Within State of Florida, by the Atlantye Coast Line Railroad, Florida

Kast Coust.Railway, and and Seaboard Airline Ruilroad’ Company.

| Witness: Pettijobn

Percent A.C.L., Percent - ACLS Percent

Relation- F.E.C.,. Relation- F.E.C., - Relation-

' Southern: ship to S.ALL. shipto SAL, ship to” -

Region 1928. . System, © 1928 Florida 1928

Shs MS (2) (4) ie ae Te ae

1928..... AST .305.858. 100.0000 26.985.160 100°0000) 13,150,724 100.0000 .

(19290.....-.. 179,729,462 95 9556 ,24,880.664 93 5885 12,905,042 98.1318

°1930........ 157,319,360 = 83.9911. 23,289,927 87.605Q 12,560,232 95 5098 —

1931. ...... 124,176,361 66.2964 18,304,150 68.8134 9,491,671 72.1760

1932......-. 88,943,080 47.4857 11,942,651 44.9222 6,959,816 © 52.9234

1933)... 92:221.363 49.2560 (12,877,502 48 4387 7.618.670 57 9335

1934... . 99.246.665 52. 9867 “14,595,039 — 54 8002 8,699,206 66. 1507

1935. 5...... TOTAL. 724. 55 6001 150635117 ° 56.6599 8,901,288 67.6867

1936.......° 126,275.44). ° G7 4171 17,509,749" 65 8829) 9,790,042 74. 4449

1937....... (44,218,957 71.6580" 20,350,519 °76 5484 100859, 731 82.47

1938 ...... 113.368,927 60 5264 18,782,888. 70 6516 10,464,585 79.5742

1939... ... 1245272. 480. 66.3477 20,267,605 76 2365 11,259,742 85.6207

1940... 140.073, 146°) 74.7885 24.228 .470 91 1354 13,355.749 101 5590

1041.‘ .... 175,478,359 93 6860 -30,743,502 115.6476 16,088,141 121.9563

1942... 217.083.555 115 SFIS 39,531,366 148.6971 20,624,125 156. 8288

1943... .... 218,830,979 HIG 8314 43,730,555 164 4924 26,445,454 201. 0950

1044. ° |... 24.244.655° 114.3820 37,203-700 139.9416 21,517 671 163 6234

1945 “* 919 196.949 112 2218 36.535.720 137.4290 20,635,886 156 9152

1946... .. 201.316.3902 FIZ. 8163 44.458 321 167 2110 24:838,155 188.8729

1947 - 931 468.396 123 5784 45,785,988 172.2239 27,205,524 206. 8747

See na na 47,492,654 178°6435 29,281,298 222 6592

- na Not avatable. . | 4

Source: Column | from Ex Parte 168, Exhibit 3, Page-21, Celumy 4.. Columns 3 and 5

from annual reports to Florida Railroad and Publie Utilities Commussion.

(fol. 1115]

(2) ‘The Combined Operations

(

ns ane

Statement Showing t

t

ve

L.C.C. Docket No. 30140

Protestant’s Exurpir No. 56—Witness: Pettijohn

he Revenue Ton Miles and Freight Revenue of:

(1) The Southern Region;

of the Atlantic Coast Line Railréad Company, Florida oe

759

East Coast Kailway Company, and the Seaboard Air Line Railroad Company;

(3) The Combined Operations. Within the State of Flerida of the Atlantic Coast. Line

: Railroad Company, Florida East Coast Railway Company, and the

Seaboard Air Line Railroad Company

A.C.L., - 4 A.C.L., °

Percent F.E.C., Percent F.E.C. ° Percent

Southern Rela- and S.A.L. Rela- and S8.A.L. Rela-—

Region tionship System tionshfp Florida tionship

to 1928 (Thousands) to1928. (Thousands) to 1928

(1) (2) (3) (4) hee _ (4)

$57.,784, 149,746

_ Revenue Ton Miles

100.0000 $6,940,895 100.0000 $2,194,600 100.0000

1929 57 089,152,045 98.7973 6,935,742 99.9258 2,128,251 96.9767

1930 48 720,761,387 84.3151 6,205,842 89.4098 1,987,952 90.5838

1931 39,031,788,504 67.5476. 5,325,589 76-7277 1,570,996 71.5846

1932 29,165,157,902 .50.4726 3,678,932 53.0037 1,135,773 51.7531

33 30 ,942:035,404 53.5476 3,919,344 56.4674 1,205,608 54.9352

34 32,900,841,227 56.9375 4,183,691 60.2760 1,367,993 62.3345

1935 35,204,471,052 60.9241 4,213,464 60.7049 1,321,971 60.2374

1936 42 449,828,000 73.4628 5,034,206 72.5296 1,523,500 69.4204

1937 45,319,926,000 78.4297 5,891,191 ° 84.8765 1,742,510 79.3999

1938 39,219,611,793 67.8726 5,328,008 76.7625 1,623,539 73.9788

1939 43 800,066,464 75.7994 5,973,684 86.0650 1,769,468 80.6283

1940 48 671,563,000 84.2300 6,895,132 99.3407 2,032,019 92.5931

1941 62,728 951,000 108.5574 9,505,131 136.9439 2,540,936 115.7813

1942 _ 89,457,212,000 154.8127 15,427,226 222.2657 4,245,784 193.4651

1943 101 469,131,000 175.6003 19,107,270 275.2854 5,935,f01.. 270.4639

1944 100 678,673,000 174.2323 18,563,075 267.4450 65,121,613 233.2734

1945 91 855,860,000 158.9638 16,888,882 243.3243 4,608,151 209 9768

1946 -— 84,184,932,000 145.6886 16,897,408 243.4471 5,033,708 229.3679

1947 89 082,924,000 154.1650 16,823,051 242.3758 . 5,257,490 239.5648

1948 87 400,000,000 151.2526 16,734,589 241.1013 5,200,556 236.9706

Re vats | Freight Revenue :

1928 $ 621,343,474 100. 00008103 598,324 100.0000 $32,315'783 100.0000

29 620,009,929 99.7854 105,423,366 101.7617 32,876,095 101.7339

930 526,150,541 84.6795° 92,193,900 88.8917 29,153,051 90.2130

1931 * 429,600,486 69.1406 81,054,728 78.2394 6,124,468 80.8412

1932 317,763,287 51.1413 57,865,198 55.8553 19,083,162 59.0521°

1933 331,674,892 33.1675 60,169,000 58.0791 19,615,228 60.6986

1934 342 662,035. 55.1486 61,490,101 59,3543 20,453,215 63.2920

1935 ° 361,243;784 58.1391 60,044,884 57.9593 18,972,868 58.7108

1936 424,563,211 68.3299 67,000,202 64.6731 21,124,931 65.3703

1937 433 583,679 69.7816 73,479,493 70.9273 22,323,982 &9°0807

1938 397,147,802 63.9176 69,531,352 67.1163 22,783,300 70.5021

1939 437 562,442 -- 70.4220 75,066,180 72.4589 24,352,614 75.3583

1940 464 363,485 74.7354 80,005,034 77.2262 25,969,788 80.3626

1941 593,484,607 95.5163 104,788,596 101.1489 30°893,307 95.5982

1942 848,579,287 136.5717 170,696,931 164.7680 50,798,781 157.1950

. 1943 960,441,101 154.5749 207,998,817 200.7743 67,793,358 209.7840

1944 * 981,927,558 158.0330 205,487,893 198.3506 61,424,856 190 0770

* 1945 ' 909,170,388 146.3233 185,411,420 178.9714 54,821;924 169.6444

1946 840,171,010 135.2184 188,810,190 182.2522 60,608,999 187.5523

1947 974,182,930 :.156.7865 207,272,552 200.0733° 66,887,480 206.9808

1948 1,094,487,014 176.1485 232,212,859 224.1473 75,187,419 232.6647

Source: Column (1) from Ex Parte 168, Exhibit 34, Page 21, Column 9, and Page 5,

Column 4. ara R . ye ory

Columns (3) and (5) from Annual Reports to Florida Railroad and Public Utilities

Commission. © : (

: : y

os 7

¢

‘ 760

4

-

<%

.

ay

>

+

(Here follows 1 Paster, side folio 1116)

J

\ des OE |

> tne aes ten ne i ~

- [fo]. 1114] Pea ee Prorestant’s Exurpir No. 55 2; : os ae ox

1.€.C. Docket No. 30140 = 3 Recap ee air aaee Ne : + Witness: Pettijohn

Statement Showing for the Atlantie Coast Line Railroad Olena: Florida Fak Coast. Railway Company. and Seaboard Airline :

“Railroad Company, Tons of Revenue Fréight Origin ated, Terminated\and Handle d on the Systems’ and

| W ithin the State of Florida \

, " | Originated , Terminated ” . | Total Freight Handled

; Percent 5 ‘ Percent _ ea

. ~ System Florida Florida to System . Florida — \ Florida to’. | System ’ Florida,

. ' tem fe ere: es stem :

, Gri (1) ated Niet |. Sake (4) . (5) (6) : (7) - » (8)

1 RAISE Seopa $26,585,160 $13,150,7 49.466 $24,507,799 $12, 149,220 2. 573 $38,227,225 $16,908,771

BEES roe | 24,880,664 12,905, O12 51.868 22" 094,495 11,524,939 52 N62 35,821,722 16,613,315 °

SOO ran fen Pre Reags 23,289,927 ~° 12,560,232 53.930 21 ,218.240 10, 973,190 51.716 33,304,612 . 15,664,651

oe copeepemeni FF 9,491 671 51.884 16,617 ,729 8,126,720 48.90% 27,444,206 12,288,895

Maia ae SS Uk a 11,942,651 6,959,816 58.277 11,216,060 6,193,414 55. 219» 17,991,394 ~ 8,850,632

ROSS. i... ccdees 39,877,502 7,618,670. 59.1638 12,189,361 6,662,359 54.657 \; 19,676,177 9,711,724

os PRUERS Coe eee 14,595 ,0389 8,699,296 59.604 14,327 ,378 8,049,042 56. 179 22 337,281 9-11, 145,3:

SRR See 15, 063, 117-8, 901,288 59.093 14,714,854 8,366,603 56.858 23,017,634 11,284,660

oo RSS eee pes 17,509,749 9,790,042 55.912 17,284,148 9,354,095: 54.120->> 2%,226,394 12,739°136

1937.......2........ 20,350,519 10,859,731 © 53.363 19,741,885 9,924,726 50.272 ° 31 N65, 315 14,085,043

1938................ 18,782,888 10,464,585 .55.714_ = 18,055,499 9 522,665 52.741 28 ,.656,871° 13,710,756

DEP is-s bw ke ete ;... 20,267,603 11,259,742 55.555 19,690 052° 10,170,903 51.655 31,583,674 14,841,774

DOs Cv Sass ket 24,228,479 13,355,749: , 55.124 25,124,243 13,033,241 51.875° 38,556; Las 17,991 855:

| PERSE ears .. 80,743,502, 16,038,141 52.168 | 32,333,574 15,405,879. 47,647 50,300, “21,794,055

Ae A Wing Fae (<9 39,531,366 20,624,125 52.172 42,680,162 18,889,034 44.257 . 69,295, 388 30,801 529°

NS boas ky hae aN 43,730, DOD, 26,445,454 60.474 44,848,566: 22,361,621 49.860 . 77,811, 317 \. 39,844,709

BASSE i Pare .. $7,203,700 21,517,671 57.837 — 39,127,936 17,570,438": 44.905 70,929 669 \33,169,795

SU aig 6s Vi ve Xow ao . 36,535,720 © 20,635,486 56.480 37,758,758 17,382,433 46.035 67,260,235 380,827 7644

1946....... SS :. 44,453,321 24.838.155 55.875" 43,414,079 -21,881,822 50.403. 72,779,531: 36,218,041

SPER See 45,785,988 27,205,524 © 59.419 | 46,333,661 23,852,387 . 51.480 75,170,566 - 38,272,816 —

DS ot ae os oa he eae 47 492,654 29,281,298 61.654 47,814,140 24,822,452 51.914. 77,640,172 40,283,802

1947 Percent to 1928. 172.2239 eas “189.0568 * 196.3285 Se 196.6414 — 226.3489

1947 Percent to. i939. 225.9073 SY RR Seperate 235.3151 234.5159 rise phe 238 .0045 257.8722

Source: Annual ‘inact to Florida Railroad and Public Utilities Commission.

760A ok :

(fol. 1116) ; | “ ; : 3 : eg

cae PROTESTANT’S EXHIBIT No. 57 :

RCC. Docket No. 30140 : fs

Miles, Freight Revenue, and vias Per Ton Mile for Atlantic Coast.Line Railroad Contpany, Florida East Co: ast Railw: ay Company,

rfine Railroad Company, for the System and in the State of Florida; also Revenué Per Ton 3 li: for the Southern Region

» Witness: Pettijohn —

‘ dtatement Showi ing Revenve T

and Seaboard /

\

Siceuss Ton Miles’ (Thousands) beard tase Freight Revenue ~ Revenue per Ton Mile

ae he aa gta trs -Peredah =o cre Percent . Percent es, Percent

at - System Florida Florida to- *System Florida Fierida to System ° , Florida Florida to = Southern Florida to

\" _ System | ; System © System - Region ‘So. Regicn

(1) 4 A x _ (3) (4). (5) (6) (7) ics” (9) (70) (11)

ey oaks ee es 6,940,895 $2,194,600 31.63 $103,598 324 $32 315.783 31.19 ($.01493. » $.01473- 98. 68 $ 01078 136 64

oP Ce Gy hides 6 935 ,742 2, 128 , 251 20.69 105 ,423 , 366 32,876,095 31.18: OL520 OLAS 101.64 -OLOS8 142.00

1930. « 6,205,842 . 1,987,952 32.93 92,193 , 900 29,153,051 31.62 01486, ° O46. 98 65 01082 135.49

POE h ae aay erp en neers 5,325,589 1 570.996 29.50 81,054,728 26,124,468 32.23 . O1522 01663 109. 26 O1104 150.63

UM ope 5 eee aa Ciera aaa 3,678,942 1,135,773 80.87 57,865, i198 19,083 , 162 32.98 O1S7S “O1680 106.80 OLOSD 154.27 '

ps, IR aed eden ORC eer Tren 3,919 344 1,205, oad 30.76. 60,169,000 . 19,615,228 32.60 01535 01627 195.99 O1072 151.77

SEIN od Waste Vive Grd nines vee 4,183,691 1,367 ,§ 32.70 61,490, 105 20,453 ,315- 33.26. 01470 * O195 101.70 O14, 14.3

MMREN Gael aia vie Se-cvle elaca eth er 4,213,464 % 321, 9 + 3L.37 60 044,884 18,972,868 31.60 ” 01425 - 01697 119.09 01029 164.92

OSES dat PS Sek inion aber tz ea 5,034,206» i "523.500 30.267 67 ,000 , 202 21,124,931 31.53 ° 01331 OL38T 104,21 61002 138.42

BRS es rahe tees ee 5,891,191 1,742,510 20 58 73,479,493 .. 22,323,982 40.38 OLA7 OLE > 102.73 00959 133.58

Pre ert 5,328 .008 1,625 539 30.47 69,531,352 22 783,300 32.77 O1305 01403 107 Al OLOLS 138. 50

et oreo ners 5,973 684 1,769,468 20.62 75,066, 180 24,852,614 | 32.44 01257 * O1876 109.47 D1001 ' 137.46

BR hae way Scarce eg mee eee 6,895,132 2,032,049 ‘29.47 80,005,054 - 25 969,788. 32,46 01160 O1278 110.17 OO95A 33.06

NR som Oe arta ee tae ge 9,505 131 - 2,540,936 20.73 104,788,596 30,893, 307 29.48 OLLO2 O216 - 110.54 ., OOIAG 128 54

SE nas rab beet eae 15, 427 ,226 4, 245,84 27.52 170 ,696 ,931 50,798,781 29.76 00106 _O1196 108.14 * 00049 126.03

1943. ° 19, 107,270 5,935 , 601 31.06 207 ,998 ,817 67 ,793 358 $2.59 » .OLOS9 OLI42 104.87 OOU4S 120.46

DE Fo oe ho 8 aD eee eS 18.,563 075 7 121 613 27 59 205 487 , 893 61,424,856 209.89 OLLO7 01199 “TOS 31 — 00976 122.85

1045. .¥... Pree re 1,888 882. + 4,608,151 27.29 185,411,420 | 54,821,924 29.57 . 01098 OLL90 108 38 00993, 119 84

BS ee ON eg 16,897 ,408 5,033,708 29.79. 188,810,190 60,608,999 32.10 OWI7 01204 107 .7$ * 01000 120 40

1947. . a eS CURR 16,823,051 5,257 , 490 31.250 207 ,272 552 66 , 887 480 32.27. 01252 01272 103.25 O1094 o 116.27

1948. . ' 16934 589 5,200,556 “Sl we. = 212,859 75, 187,419 32.38 O1388 01446 104. 13 / Dp, na

. ® ’ e . . . L .

sn Kot available.

Source: Columns 1, 2, 4, and Pile Sa: Reports to Fiorida Railroad and Public’ Ut tilities Commission. «

Columns 3, 6-9, 11—Computed. ; oa

_ Column 10—Exhibit 3, Page 22, paced 4, Ex Parte 168. : i.

S| ag

e -

{fol. 1117]. 5 : zs

Se (ord ee ProTesTant’s Exnipit No. 58 :

I.-C. C..Bocket No. 30 — - ae, : ae - Witness: Pettijohn

Statement Showing Kevenue Passenger Milés and Passenger Revenue for the Bontherh Region, and for the System and State of Florida,

, for the Atlantic-Coast Line Railroad, Florida East Coast Railway, and Seaboard Airline ‘Railroad ;

~ Percent. A.C.L., F.E.C., , Percent A.C.L., F.E.C., Percent

Be Southern Region. Relationship © and §8.A.L. Relationship . and 8.A.L. Relationship .

: ' to 1928 System . — to 1928 ¢ Florida to 1928 —

¢ Ci eae (2) =e ee en sy aa (6)

2 ; a _. Revenue Passenger Miles : yrasch Ne ra ee

oa |. ee Sore Gigi wig ap ee» $ 3,716,867 ;146 100.0000 - § 725,121,832 * 100.0000 $ 276,609,874 100.0000

TRUER aioe So eA Ws ed ek 3,484,067.452 . 93.7367 _ 666,924,478 91.9741 244,543,973, 88.4075

SAAS Aer een & 46 can 2, 834,414,494. 76.2582 569 , 846 ,522 78.5863 . 207,617,146 “75.0877

Ue Sout RoR ea elk a yaeeeesten > 57.2208 426,790 .799 58.8578 155,531,372 56.2277

| BERR SRE Re - 1,705,849,809 ' 45.8948 341;618 066 . 2.2158. , 119,332 ,986 43.1413

BASES A Bete py eae 1,908 ,069 , 873 51.3354 390 ,052 , 741 53.7913 * 137,810,717 © 49.8213

Spee ee aes Oe ae 2,327 ,025 ,853 62.6072 545 ,598 , 398 75 . 2423 ~ 198,155,005 71.6370

SR rere eS 2 ; 408 , 800 , 233 64.8073 596 , 404 , 873 82.2489 219,105,376 79.2110

SSAA MENS er Rete _ 2,872,584, 446 © 77.2851 740,841,182 ° 102.1678 . 272,630,060 ' 98.5612

RE ee rea Gre 2 * 3,529,714,748 — 84.2036. 851,456,560 - 117.4226 >. 311,827,986: . 112.7321

ee ee Siamitele sc Gere Rae 2,450 , 534,566 65.9301 670 ,568 ,297 92.4766 ~ 242,441,745 87.6475

Sot NY 6-6 o 0.0 6:8 ‘Stee ere - 2,752,293 ,323 74.0487 827,605,775 >. 114.1333: 296,978,508 107.3637. —

er aa es 3,174,123,856:. «85.3978 1,082 ,578 ,325 149.2961 ~ - 390,574,138 141.2004

| er eee ee Le. 4,436,307 ,370 119.3561 1,547,716, 861 213.4425 479 , 941,974 173.5086

2? Sere ieee ees 9 ,059 , 343 , 329 243.7360 3,151,887 ,467 434 6701 952 ,052 ,659 344. 1861

ete Ges eels nn hs 14,676 ,003 ,548 394.8488 | 4,869, 186 , 667 671.4991 © rie gp ertae 567 . 5884

| SAA re are 15,275,642,597 . 410.9817. 5, 143,608 ,790- 709.3441 1,543 ,974,163 . 558.1775-

a SOE Cer .eeee 13,731,916, 159 369.4487 4,699,113 ,305 648.0447. © 1,475,136,344 533.2913

Sa ee Caen s bees) pee eat ae 236.8055 2,858 ,662 ,940 394.2321 $62,165,966 . 314.6902

Aiea heuseeese nie 6 ,099 , 292 ,374 164.0977 2,081,481 ,827 287 .0527 680 , 502,770 246.0154

Soe aie wea w ono a eee 5, 400 ,000 , 000 145. 2836 * 1,871,288, 757 258 .0654 - 621,121,487 224.5478

- | en . F ts ‘

°

192

I.-C.

‘

C. Docket No, 30 .

PROTESTANT’S Exuisit No. 58—Continued

Witness! Pettijohn

‘Statement Showing Revenue Passenger Miles and Passenger Revenue for the Southern Region, and for the System and State of F —_—

or the Atlantic Coast Line Railroad, Florida East Coast Railway, and Seaboard Airline Railroad

abince: Column (1) from Ex Parte

Sk Rk ee we ee eee

6228 CY DY £6 4. 8's E ES OBC

ee ee |

5 66 170 6-4-e8°¢ O88. © oY mete

Pe 6 6 66s Oe ewe 8 ee ee

ea 6 ee. 6 ee S BAS Oe BOS

Cu CBG « @€ 6 0-62 4-4. €' a ed '4' S O

ae ee eo ee oe te ee a oe

ee a Oe A oe i

eee © aw oo GG et ee ae

Ce ot 6 6 6 6.9 6 6 84 ee eS

a0. 987s 6 ©. 6.0 6 F Gwe U6 eS

Oe Se ee ee ee ee ee ae re

oH 60 £0 8.0 Vlas we Ce és

ec eve ee se teen @ te &'6 Oa

PS 20s ee ee COS a Ww Oe) 8,

eoveoeoe eC vaveee oe 0 0% @

Southern Region

(1)

118,296,618

108 , 739 ,548

85,651,470

60 , 193 ,973

38 , 908 ,933

35,403 , 693

40,186, 144

41,764,061

49 524,722

54,984, 192

48 , 432,816

48 437 , 267

53,639 , 106

76,110,045

174,201,818

291,716,260

, 804,141,192

271,849,358

176 ,674.572

127 ,774,672

125.404, 694

Percent ‘AC.L., F.E.C.,

~ Relationship “and 8.A.L.

to 1928 ‘System

(2) (3)

Passenger Revenue

100.0000 $ 25,382,711

. 91.9211 23,408 , 608

. 72.4040 © 19,741 ,067

50. 8839 14,173,711

32.8910 8,916,253

29.9279 7,989 , 205

33.9707 10,207 ,644

35.3045 11,123,212

41.8649 13, 624,297

46.4799 | ~ 16,038,205.

40.9418 14,335 ,561°.

40 9456 15,227 668

45.3429 - 18,483,983

64.3383: 26 , 557,104

147.2585 60, 135,396

246..6973 94,961 ,989.

257 . 1005 100 , 861,592

229. 8032 91,358, 423

149.3488. ~ 57,873,131

~ 108.0121 45,197 ,956

106. 0087 43 ,281 ,659

168, Exhibit 34, rare 21, "Columb 14, and Page 5

fp Columns (3) and (5) from annual reports to Florida Railrgad and Publie Utilitie s iC ‘ommission.

Percent .

Relationship

to 1928

{4

100 .0000

92. 2226

77.7737

55.8400

- 35.1273

31,4750

40.2149

43. $220

53.6755

63.1855

56.4777

59.9923

72.8212

- 104.6267

236.9148

374. 1208

397 . 3634

359.9238

228 0022

178.0659

170. 5163

. Colanin 5.

(Here follows 1 Paster, side folio 1118)

AOls, FEC:

- and $.A.L.

Florida —

(5)

9,787 ,738

8,727 ,958

7 ; 302, 440

5,201,480 ©

8

5, 247 ,456

5,531,755

6,707 ,133

8 ;212,639

13,292 ,058

. 30, 836, 044

30,925,771 —

29 . 394 , 585

18,003,819

15,484,541

14,769, 112

Percent

Relationship

to 1928

(6)

100.0000

89.1724

74.6080

53. 7428

32.9592

29.4881

38.4155

42.0088

51.5081

60 : 2294

53.6126

56.5172

68.5259

83.9074

186.8875

315.0477

315.9644

300.3205

183.9426

158.2035

150.8940

i

GOL

{fol. 1118)

L.C.C. Docket No. 30140

.

<

ee

762A- F

PROTESTANT’S Exutsit No. 59

Statement Showing Revenue Passenger Miles, Passenger Revenue, and ee mue per pe er Mile for Atlantic Coast Line Ballzoed Company, Florida E ast Cox ast,

assenger Mile for.

Railway C pompany cand Seaboard Airline Railroad Company. for the System and in t

‘ Southern Region

>

PEI ec ee te ewe eee eee see e ee eoeseereneos

na—Not available.

Revenue Passenger Miles

e State of Florida;

fm BO Base Gt ei GO et te

System

(1) ,

725,121,832

666,924,478

569 , 846 522

426,790,799 |

341,618 066

390, 052, 741

545,598 398

596 , 404,873

740,841,132

S51 , 456 , 560

. 670,568 ,297

827 605,775

082,578 325

eet 716.861

, 151,887 467°

, 869, 186 , 667

143,608,790

,699, 113,305

8, 662,940

1,481,827

1,288,757

OF

‘85

08

87

)

' 155,

Florida

(2)

276 609 S74.

244 543,973

207 .617 146

531 372

119,332 986

137 810,717

198, 155,005

219,105 376

272,630,060

311.827 986

242,441,745

296 978 , 508

390 , 574, 138

479,941,974

952 ,0%2 659

570,905,508

543,974, 163.

/475;, 136,344

862,165,966

680,502,770

621,121,487

Percent

Florida to

System

(3)

38.14

36.67

36.43

36.44

34.93

35.33

36.32,

' 36.74

36.80. °

- 36.62

36.15

35.88

36.08

“31.01

31.39

30.16

32.69

33. 19--

Passeftger Revenue

System

(4)

$ 25.382.711

23,408 , 608

19,741,067

A4.173,741

8.916, 253

7.989 , 205

10.207 , 644

11,123,212 °

13,624,297

16,038,205 -

14.335 .561

15,227 668

18, 483..983

26.557, [04

- 60,135,396

94,961 .989

0.861.792

91,358,423

57,873,131

45,197 956

, 8,281,650

Source: Columns 1, 2, 4,°5—Annual wepeets to Florida Railroad and Public Utilities Commission.

; Columns 3. 6, 7, 8, 9, 11—Computed.

Column 10—Exhibit 3, Page 22, Ex Parte 168.

ww

Florida

30, R36,

30 , 925,

- 29 394:

18,003 ,:

15,484.

14,769,

Percent

Florida to

System

(6) (7)

, 38.56 $.03500

37.29 > OB8510

36 99 O3404

36.70 03321.

36 18> 02610

36.13 02048 |

36.84 OISTI

36. 97° OIS65

37.00 O1839

36.76 OLSS4

36.60 02138

36.33 OLS40

36 29 OLTO7

30.92 O17 16

30.41 01908

$2.47 C1950

30: 66 01961

* 32.18 Olof

at.if 02024

34.26 02171

34.12 02313

%

&

.

ae

Also Re venue pera

2

en

System

, Florida

(8) -

-$ 03538

03569

03517

? 03344

02703

* (2004

‘

OLS9S .

OIS77

O1849

01890

O2154

O1S65

NTT

OLE.

O1921

O19?

02003

01993

02088

02275

02378

Percent

Florida to

System

(9)

10)

* 101

1p

100

103° 56

102 .

104

100

100:

100. ;

101 3

101

100

yo

“100.

“100.

102

102

103

104

* 102

09 oo

6S

53

69

Re venur per Passe nger Mile

a4

Ww itness: Pettijohn

Pe ‘roent

Southern Flortda to’

»Région So. Region

{10) (L})

& OFIS5S 1}1 Of

O3125 Tl4 21

03029 116.11

» O2ZS845 117.62

02277 1t8 71

OISSI '33.13°°

OW25 110. 03

01726 «108 75

O1716 107 75

OLAS 108 12

01970 109 S85

OL745 106 7H~

OTT 102 S81

O1L706 1M) .29

OLDIS 1000 165

01900 OS 64

01992 100 55

OL9S2 1) 35

~ 02003 104 35

02002 10S 75

na ie

t

ah

fol. 1119]

L.O.C. Docket No. 30140

__ Profestant’s Exurerr No. 60

Witness: Pettijohn-

" Statement Showing for Selected Items Comparative Operations of the Atlantic Coast Line Railroad Company, Florida, East Coast

~ Railway Company and Seaboard Air Line Railroad Ci mmpany for the System and in the State of Florida and for the Southern Region —

Calendar Year. 1947.

Pak

3 Freight Service

1. Train Miles... ...

A.C.L. Railroad, S.A.L. Railroad, and _

F.C. Railway Combined

ee te gate ee ee eset meni thn so

(A)

' Florida’

$ 7,469,161

‘e

(B)

System

&

$ 23,228,857

(C)

Southern Region

$ 105,659°738-

°2. Locomotive Miles—-Road. ... 7,633, 456 ‘24,483, 777. 113,098 , 649

- - 3. Lecomotive Miles—Switching . 1,019,647 ~ 2,314,693 7,645,027

Oa MR oe 2 ee 285 , 750,539 974,660 5434 4,583, 482,000.

5."Revenue Ton- Miles (Thousands) 5,257 , 490 16,828,051 89 , O82 , 923

6. Revenue Tons per Train Mile : — 703.89 : - 724.23 843.11

7 Revenue Tons per Locomotive. Mile--Road. . 688 74 687.11 787 66

8. Revenue Tons pér CarsMile. .. . 18.40 17.26 i9 44

Passenger Sérvice . : Re a

9. Train Miles;.......-... F 6 , 236,680 18, 183,834 - 61,008, [88

10. Locomotive -Miles— Road 6, 363 , 266 18,401,312 58, 182,372

11. Locomotive Miles—Switching. . 6,861 11,076 . ¥38,818

12. Motor Car Miles. a snese aig ST, G00: 7,302,730

13..Car Miles. ....... ent SG 118 ‘ 65,978;001 195, 154 02% 568,494,685

‘4. Revenue Passenger Miles vans 680,502,770 : _ 2,08f ,4A8t 827 6,099,292, 374

_ 15. Revenue Passengers per Train Mite. vi iets i ee 112.98 = {t4.47) 99. 97

16. Revenue Passengers per Locomotive Mile— Road 106.94 113.12 ae 104.83

17. Revenue Passengers per Car Mile... . 10.31

10.67 10.73

Source; Column (A) Items 1-5 and 9-14 from Annual Reports to Florida Railroad & Public: Utilities Commission.

Columns (B).and (C)—I. C. C: Comparative Statement Railway Operating Statisties dated September, 1948—Statement No.

48200, caiendar year 947. - , nee

[tem 14, Column (C), Exhibit 3, Page 21, Column 14, Ex Parte 168.

Items 6-8 and 15-17—Computed. 3

292

{fol 1120) a | ee Prorestant’s Exuipit No. 61

.C.C. Docket No. 30140 es ‘Witness: Pettijohn

Revenue Miles Statistics —

‘Atlantic Coast Line, Florida East Coast, and Seaboard Airline

FOL

System Florida >

Percent Percent

Total Freight Passenger Passenger-- Total Freight Passenger Passenger

to Total - _to- Total

: Train. Miles Poets 5

1936. . 28 , 797 , 383 13,514,924 15,282,459 53.069 ~ 10,180,947 4,673,118 5,507,829 54.099

ES 30 , 203 , 005 ‘14,477,115 15,725,890. 52.067 — 10,535,116 4,908,770 5,626,346 53.406

1938... 28,194,213 13,473,797 ° 14,720,416 - 52.211 : 9,909,77 4,857 , 886 5,051,884 © 50.979

1939. . 29 , 547 , 060 14,800,762 14,746,298 ~- 49.908 10,503 , 377 5,225 ,056 5, 278, 321 50.254

wee... .% 31,741,842 15,659,012 16,082,830 50.668 11,343,925 -° 5,297,755 6,046,170 53.209

| Rae ek aire 35,285,204 18,688,665 16,596,530 47.035 11,909,794. 6,080, 104 5.829.690 48.949

1942. baa 42,382,011 23,547,675 18,834,336 44.439 14,048 ,525- 7,466,176 6,582,349 46.854

Bon ars 46, 163,648 25,348,953 20,814,690 (45.089 15,746,795 8,416,524 7,330,271 46.551

ERC singh aed 46 , 345, 321 25,276,520 21,068,792 45 460 15,243,407 8,042,490 7,200,917 47.240

1945. 43 ,979 ,692 23,989,949 19,989,743 45.452 14,428 ,§ 7 652,953, 6,776,037 46.961 .

S008 3... 42,272,991 24,328,225 17,944,766 42.450 13,712, 839 7,833,350 5,879,489 42.876

Ee 41,412,685 23 , 228 , 851 IS,183,834 °43.909 13.705, 841 7,469, 161 6,236,680 45.504

1948 ...... * 39,840,026 22 . 406 , 608 7,433,418 43.759 13, 268 , 690° 7,229,892 -6,038,798 15.512

1947 to 1936. 143.807 / 171.876 LIS.985 134.622 159. 832 113.233 es

> Locomotive Miles

Rs tka< as 34,055,394 18,851,289 15,204,105 44.645 12,161,532 6,509 ,073 5,652,459 46.478

BOBe . arc cc. 36,129°.950 - 20 , 455 , 006 15,674,854 43.385 12,657,145 5,884,440 5,772,705 45.608

UE or es oa 33,694,472 19,042,633 14,651,839 43.484 12,017,610 6, 742,587 5,275,023. 43.894

1939 . 35,753 , 347 20 , 722, 226 15,081,121 42 041 12,981,414 i , 268,645 5,712,769 44.007

SL in Ss pve wars 38 , 763,969 22,076, 47 16,687, 492 43.049 «14,028,027 7,501, 518 6,526, 509 46.525

|: iE 48,710,968 26,59 58 22,112,010 45.394 16,293,980 3’ 618,569 7,675,411 47.106

, - Ae 60.799, 373 ¢ 44 2i8 19,776,676 9,091,398 45.970

26,884, 026

10, O85, 27 ] 8

{fol. 1120] ve PROTESTANT’s Exuipir No. 61

1.C.C. Docket No. 30140 4

: _ Revenue Miles Statistics Ui

Atlantic Coast. Line, Florida: East Coast, and Seaboard Airline ~

Witness: Pettijohn

System — Florida

- : Percent ‘ - Percent

Total Freight Passenger Passenger Total Freight Passenger Passenger

to Total ’ to Total

“8 aie Locomotive Miles 9

i | See at 66,184,118 * 36,862,312 29,321,806 44.803 22 ,095 , 827 12,175,343 9,920,484 44.898

3064 oo. eee 58,354, 139 35,655,563 22,698,576 38.898 19,482,961 11,647,620 7,835,341 40.216

RED » ater eu se ee 65,355,645 | 34,054,337 21,301,308. 38.48] 18,516,928 11,213,493 7,303,435 39.442

5906 5255s: > 63,918,050 35, 166,099 i8,751,%1 34.779 17,979,549 11,738,051 6,241,498 34.714

ye + RE ae rir ga 52,981,988 34,036,012 18, 945, 976 35.759 17,873,280 11,282,535 6,590,745 36.875

SOO tind cs cee 51,340,930 33,215,070 18,125,860 35.305 17,471,728 11,100,778 6,370,950 = 36. 464

1947 to 1936..... 155.576 _ 180.550 124.611 ee gies 146.966 173.336 116.600 ae

Car Miles

SOMO oc ev eas ak 620,216,411 497,573,530 122,642,881 ©°19.774 192,182,508 147,896,470 44,286,088 23.044

SOE ke pee ' 694,179,569 561,957,622 132,221,947 19.047 210,910,408 163,598,190 47,312,218 22.432

BIE a 6: p cases wae 664 , 403 , 562 541,595,214 122,808,348 18.484 209,897,511 166,749,437 43,148,074 20.557

SOE ota tay 704 , 280, 755 574,685,919 129,594,836 18.401 219,541,499 173,372,789 46. 168,710 21.030

TO, bs fale. 751,203,882. 609,115,883 142,087,999 18.915 ° 237,442,801 185,270,916 52,171,885 21.972

SUGR. c a ne Maree 892,554,798 736,740,718 155,814,085 17.457 260,498,979 206,389,009 54,109,970 20.772

Rey eae 1, 169,989,828 973,352,188 196,637,640 16.807 336,878,545 270,182,019 = 66 696,526 19.798

IONE ei Wede 1,320,683,531 1,088,879,641 231,803,890 17.552 392,704,147 312,759,446 | 79,944,701 20.357

| | RUNS ~ 2... °1,846,125,178 1,100,815,270 245,309,908 18.223 395,831,262 314,022,057 81 "809,205 20.668

Ses rig ee eal 1,270,367,711 1,036,892,549 233,475,162 18.379 370,394,097 293,481,368 76,912,729 20.765

MR a Sas we ate 1,223,479,950 1,022,743,133 200,736,817 16.407 367,097,569 302 , 060/944 65,036,625 17.716

b PORT ore FUN ie 1,175, 185,587 979,400,138 195,785,449 16.660 354,285,665 288,151,398 — 66,134,267 18.667

TONE: ei ae Se 1,169,016,271 976 (272,445 192,746,826 16-488 353,226,763 287,653,829 65,572,934, 18.564

1947 to 1936..... 189.480 196.835 ‘16-688 Sy AL. CL. 104, BS. sO BS .

ere 184.349 194.833. 149.334

P ae

[fol. 1121] ;

I. C. C. Docket No, 30140

PrROTESTANT’s Exursir No. 62

= Witness: Pettijohn

Operating Revenues

Atlantic Coast Line, Florida East Coast, Seaboard Air Line

? s

Freight Revenue Account No. 101

992

Percent Percent. Percent

System . Florida Florida Intrastate -of

: _ System System Florida

Behe ee kek Leathe rae enes $103,598, 324 $32,315,783 . 31.19 $13,762,010 13.28 42.59

Oo BO OORT E NE eee Bn 105, 423, 366 32,876,095 31.18 12,319,969 11.69 37.47

a EE RS ee ra — 92,193,900 29,153,051 31.62 11,263,913 12.22 38.64

BERETA ST mmr Ge Cate 81,054,728 26, 124,468 32.23 8, 932,946 11.02 34.19

Ses Oe ade Sa Pe * 57,865, 198 19,083, 162 32.98 . 6,580, 151 11.37 34.48

BRIER en ree See 60, 169,060 — 19,615,228 32.60 " §,906,235 | 9.82 30.11

Sg MARES EL NSN a sip EE 61,490,101 — 20,453,315 33. 26 6,705,810 10.91 32.79

cp 0 SED he eer Ste : 60,044, 884 18,972,868 31.60 6,128,039 10.21 32.30

| SOLEIL SEN 5 ed aie fOr ein 67,000, 202 21,124,931 31.53 6,265,400 9.35 29.66

BU Cer racks ks De db ee ho. 73,479, 493 22 , 323 , 982 30.38 5,922,328 8.06 26.53

a POE EE CaS NC ene Ore a cs 69, 531,352 22,783,300 32.77 6,101,144 8.77 26.78

| , SRI: SERS apr t aeee R 75,066 -180 24,352,614 32.41 6,643 , 263 8.85 27 .28

BPO isles ee he een a ea ee 80,005 ,034 * 25,969,788 32.46 8,154,738 8.15 31.40

Be cake wie ae ka a ee ae 104,788,596 30 , 893, 307 29.48 °9, 708, 205 9.26 31.42

Og ER NARS oe PO ee Oe 170,696,931 50,798,781 29.76 14,252,583 8:35 28.06

tg APU rcrn Gomes Sia) cr wpe, ily arn 207 , 998, 817 67,793,358 32.59 18,203,828 8.75 26.85

RR GS Roary bein aie reg tars nett 205 , 487 ,893 61,424,856 | 29.89 13,618,233 6.62 22.17

BOO a6 Se ee a Lee es 185,411,420 54,821,924 29.57 12,036,539 6.49 21.96

LD SUAS ep OP eae oe Gee ey 188,810,190 60, 608 , 999 32.10 ~ 14,598,358 7.73 24.09

SOG So ee ea eee Fe ee eon 207 , 272,552 66,887 , 480 32.27 15,950, 328 7.70 23.85

1948, eee Lee ak 232,212,859 75,187,419 32.38 17,432,305 7.51 23.19

Percent of 1947 to 1928.....:....... 200 . 0732 206 .9S0S = ose 115.9011

ln See

SR Aste haere su ee ek

| SRSA

PNG. ces enevR uses

Race IER ea EAS

S¢. 86 ers 6.8 6.8

oe ee wee eee

ce -s 6.6 06 8300.2

Ge «© oe 6 ©’ woe 8 @

Pere ent of 1947 to 1928..

iceices:

3

ener we T's ss

i. oe oh

.

ce

:

“19° 741.067

Passenger Revenue Account No. 102

System

23,408 , 608

14, 173,711

8,916,253

7.989, 205

10,207 , 644 .

11,123,212:

13,624,297

16,038 , 205

14,335, 501

15,227, 668

18, 483,983

26,557, 104 :

60, 135,396

94,961,989

100, $61, 592 °°

M1, 358 , 423

57, 873, 131

45, 197,956

43,281,659

178.0659

25,382, 7119

da tges

$ 9, 787, 738 |

8, 727,958 «

7, 302,440.

5,201 ‘480

8,225,956

2,886,217.

3,760,011

4,111,714

5,041, 482

5,895, 100

5,247,456

5,531,755

6,707, 133

8,212,639

- 18,292,058

30,836,044

ri

30,925,771 -

~~

a

29 394,585

18,003,819

15,484,541

14,769, 112

"158.2034

Aneual reports to Florida Railroad aid Public Utilities C ommission.

Percent

Florida

System

“88.56

37.29

36 99

36.7

36.

36.43

36.84

36.97

37.00

' 36.76

36.60

36.33

< -36.29

30.2

32.47

30.66

Intrastate

s 3, 195,27

2,502, §24

. 1,881,276

1/24 767

‘264

744,772

997,503

1,052,310

1,191,195

1,256,563

1,020, 367

$76,556 .

1,172,656

1,305,001

2,753,488 —

4,604,022

4,031,706 -

5,383,994

* 3,069,641

2,166,366

1,752,784

67.7991

Percent

System

12.59

10.69

53

8.77

Percent

“ of “

Florida *-

32.65

191.

768

(Here Sok vs 1 paster, side folio: 1122

ifol. 1122).

20: Dadet Ma 0140

‘

Statement C omparing the Combined Net R: ail: ay fice rating Income of the: Ath: antie Coast Li ine Railroad, Seabo: ard Airline Railroad, e»d Florida

I vast Coast Railway to the Couthern eee for the Years Indicated

_ ee 1 re

‘Line Code * Year ae on :

Revenues Ihxpenses

1 1944 $1,000.589.000 $647,178 .000

a): 2 1044 208 431,572 133,202,811

3 1944 62,595,701 39,496,975

: f 1945 928,503,000 | 739,973,000

5 2°. 1945 188,208 423. ° 174,414,471

6 3: 1945 56,050,117. 50,071,242

et ee 860,258,000 687,180,000

vat 2 1046 192,173,862 156.338.0099

9 3 1046 62,358,178" 48,889,244

10 1 1947 —-1,005,476,000 "727,469,000 ”

dW 2 1947 211.882.489 | 160.065.731

2.3 1a47 69,629,886 52.471 .374

is l 1948 na na

14 2 1048 236,828,399 | 169.717.0976

15 3 948% = 77,698,923 © 54,503,808

D— Deficit.

*Code:

Lines 1, 4. 7, 10—-

Lines 2. 3,

Source:

5, 6. &,

(1) Southern Region.

' . (2) Three Roads—

(3) Three Roads—

System.

Florida,

_ Fre ight. Service

768A

PROTESTANT’S Exutpit No. 63

Passenger Service

ea

Net Revenues

S353 414 000

45, 228. ona

23,098 , 72

ISS.

135793 952

5,978,875

173.078 000

35°R35 763

135468 8354

278 007,000

51,766,758

17, 158,512

- ha

67,110,425

23,195 115

Carriers’ Exhibit 34, Page 26, Ex Parte 168.

9, Il,

‘ .

530.000.

Y

Oper-

ating «-

Ratio

Ot

63

63.

68

91

10

70

67

35

Net Railwi ay

0 rating

neome

_ $115,631 ,000

233.016» 161

7,249,412

74.095 000

24412978

ops aa

99 038 000

23 059,339

8,679,453

161, 195.000

30,476,427

10,511,889

“na

41 332,943

13,913,181

12, M4, 15-—Carriers’ Annual Reports'to Florida Railroad and Public

6

Revenues

$370 597 000

120,433,905

38,547 279

336,541,000

110 269.703

36 842.037

171,000

STS 181

‘740.078

¥, 288 , 000

62,792,723

403 , 405

na

856 899

498 965

ae ae

fe 8 9

. : Oper-

Expenses. Net Revenues ating

Ratio

$217 340,000 $153,257 ,000 58.65

68,626,722 - 51,807,183 5698

22,505,872 ° 16,041,507 58.38

239,887,000 , 96,654,000 71.28

80,671,396 © 29,598,307 73.16)

25,922,950 10,919,087 70.36

220,154,000 10,017,000 95.65

70,819,254 2058 927 O7 17

22 8333 299 ° 906,779 96.18

221,943,000 32,655.000D 117.25

72,846,442 . 10,053,719) 116.01

25,281,538 .° 2,878,133D 112785

Na “e na 2 ia

76,791,474 = 15,934.575D 126.18

26 530 960 5,031,995D 423 41

Utilities Commission.

i0

Net. Railwa +

Operating

ncome

$52,002,000

18,908, ne

6,866,025

542,000

533,042

6 236,432 °

5,861 .000D

207 815

219,

000D

703D

S#4iD

57, 4235,

17,092,

6455,

na

21.163 ,.295D

7,318, 970D

50D"

Witness: Péttijohin,

’ Unassignable

MW

Reve-

rues

” $17,000

4.000

6,000 -,

: 12

Iix-

penises

‘$20,000 .

4,000

5, O00

hu

o

Total

eee $ 8,214,133

| aaa 10 ,029,,340

| Aa 4,869 , 730

aS Rs 8,119,942

| ES SRO 9,146,786

| Fes ee 22,768,444

ree 63 015,497

Sees. thy? 54,582,342

ge 4] 924,451

2 See 20 974,320

SR os 6 23 , 357 , 154

SOG cx ce 13,383 ,694

te ee 20, 169,648

1936........ $ 80,925,000

1 7 OAS 74,873,000

1938.:...... 60,518,000

eee 80,514,000

+, Oe 81,956,000

1941. ...... 140,666,000

1662... cc. Se aa. ae

1943........ 201,979,000

1944. ...... °167,630,000—

1945........ 120,637;000:

:) Sears 95 178,000

O47.:....:. 106:773.000

1043 .....: tate na

D— Deficit.

fol. 1123}

Unassigned for the ¢

Atlantic Coast Line

. Airline Railroad, and for the Southern Region.

-PROTESTANT’S Exuisit No.. 64

I. C. C. Docket No. 30140

Net Railway Operating Income Separated Between. Freight,

na—Not available.

~

s

Railroad,

Freight

$ 15,151,862

— Witness: Pettijohn.

Passenger

Three Roads Combined

$ 7,030,276D

16,154,177 6,124,837D

. 18,001,072 8,131,342D _..

16.210,612 —_8,090,670D

17 ,037 , 262 7 ,890,476D

25 , 236 315 2,467 .871D

45,535,694 .17,479,803

32,979,889 21,602,453

23,016,161 18,908 , 290

2,441,278 - 18,533,042.

23 ,059 339 - 207 815

30,496,427 | 17,092,733D

41,332,943" © 21,163,295D

* Southern Region

$111,057,000 $31,463;:000D

101,544,000 2’ 726 ,.000D

93 ,86.1 ,000 Piss 000D

114,168,000 659 ,00OD.

117,402 ,000 35,448 ,000D

161.063 ,000 20.395 ,Q00D

190,777 ,000 30 591.000

143,721,000 58,258,000

115,631,000 52,002 ,000

75,095,000 - 45,542,000

"99 038 .000 5,861 ,000D

161,195,000 | . 57,425,001

na na

769

.Passenger, and

‘alendar Years Shown for the Combined Operations of the

Florida East Coast Railway and’ Seabo: ard

‘Unassigned

$ shemnid

ecovewsnses

a w.64 @ e e.2,0 6

i @ oe"S 2 6 se

$1,331,000

~ 1,055 ,000

12,000

5,000

4,000.

se

i1,000D ©

ue

z §

“Source: Annual reports to Florida Railroad and Public Utilities ay pean

<>

771

(fol. 1125} e 1.C.C. Docket No. 30140

"| Prorestant’s Exnvsrr No. 66

: Witness: Pettijohn j

Investment, Net Railway Operating Income and Rate of Return of Florida’

. East Coast R: uilw ay Company—Calendar Year—1947

ES Total . Freight - Passenger

Investment in Railway Propert v used

‘Im tramspn sevice... .. 2.0.6. cee. OS Ot ROE na vy Caen oe Lee Ee

‘Depreciation & Amortization Reserve .13,848,064 .......... eues riers

Investment in Transportation Prop- Sues

erty less recorded depreciation «& Mes

eit in tiie ee oe rt ‘73,825,998 42,193,330 31,632,668

Working Capital—9.606%.......... 2,275,016 1,222,481 1,052,535

BRUNS MU i ha cine oie oe - 76,101,014 43,415,811 32,685,203

Net Railway Operating os Pas 1,544,281 3,572,614 2,028,333R.

ee @ aaa eee 2.0292 6.2008 vies. Sey

Net Railway Operating Income Re--

vised to reflect $1,400,000 excess .

profit tax. refund. applicable to . : |

prior vears—per Ex. S14......... 144,281 2,172,614 2,028,333R

Ee ee rye i Soe i. fever ene a

R denotes red figure.

{fol. 1126] 1.C.C. Docket No. 30140

Prorestant’s Exuipit No. 67

Witness: Pettijohn

Investment, Net Railway Operating Income and” Rate of Return of’ Florida

East Coast Railw: ay Company--Calendar Year—1948

Total Freight ’ Passenger

Investment in Railway Property used ae

-. ju transpn service.........5...5. Re 10 Se © (ee PS CARS ae a

Acy. Adj., Donations, Grants, De- ;

preciation & Amortization. ....... SATs Coke a ae howe

Investment in Railway Property used Ray

‘in transpn service less recorded ~—— --

Gent: & wt. 2 es ek Se tk 73,300,260 36,746,666 36,553,594

Working Capital—9.606 of Operating :

NU as ee ee ce . / 2,295,624 (1,177,855 1,117,769

Bate BONG. 655 chunk oa .... 75,595 ,884-—37,034 521 . 37,671,363 2

Net Operating Income............. 1,855,052 4,685,134 2,830,082R--

ee. eS a Ses oe : 2.4539 WERNER. noir vs hae

R denotes red figure. 3 /

/

772

(fot ti27} 1.C.C. Docket No. 30140

. PRoTESTANT’s Exuipit No. 68

Witness: Pettijohn

Net Railway Operating Income

Three Months Iknded March 31

' 7 Percentage

District or Region 1948 1947 Increase

New England Region.....:......... $ | 503,210 $ 2,172,953 76.8"

Great Lakes Region.........:...... 15,293. 511 20,015,399 23. 6*

Central Eastern Region... .... ade wa 16,975,926 18,961,599 10.5%

Eastern District... ... ele eg rele .. $ 82,772,647 $ 41,149,951 20.4*

Pocahontas Region................. $ 16,106,356 $ 25,215,973 . 36.1" _

a epee irr Meese 33,892,793 31, 253, 038 O8&.4

_ Southerf District............ ac aes $ 49,999,149 § 56, 467, orl 11.5*

Northwestern Region............... $ 3,835, 879d 9, 284, 093 rae

» Central Western Region. ........... 42,185,134 47,039,678 10.3*

Southwestern Region............... 21,525,529 22,303,202 3.6

Western District.......... sess... $ 50,874,784 $ 78,626,973 2. 8*

United Staten... <>. PA Seeks $ 142,646,580 $176,243,935 “19. i*

Atlantic Coast Line RR

Co., Florida East Coast

Ry, Co., Seaboard Air _

sane RR Co.

fe ree eo ra = eee $ 9,271,924 $ 7,363,977 25.9

PURER S ont ee os Pat ee 3,478 , 857 2,747 ,827 26

d—deficit.

* — decrease.

* Authorities: :

L.C.C. Statement No. -M-100 for three months ended March 31, 1948, for,

Dusit Rees: OS SS FO ee

~ March 1948 Mo. Rept Ser. ‘No. 463 of Association of American Rafiror ids,

Bureau of Railway Economies.

Monthly reports of revenues and expenses to Florida Railroad and Public

U tilitie S Commission, :

yi

{fol. 1124] |

TAC. C. Docket No. 30140

- Actual Calendar. Vier 1948 Revenues, Expenses ane Net Railway Operating Income Compared with Similar Data for Three Months,

éxpanded by Factors Representing a Twenty Year Average.

Florida Kast Coast Railway Company, and Seaboard Air Line Railroad Company.

Six Months, and Nine Months,

s

Three months ended March 31, 1948. ....

ES GE PORE ee Ge eet oe ee

Expanded to yearly basis—Combined. ....

Expanded to yéarly basis—Individual.

Six months e nded June 30, 1948 :.....

_Ratio of year.

Expanded to yearly basis—( foeabined:.

Expanded to yearly basis- —Individual.

Nine months ended September 30, 1948...

Ratio of year.

Expanded to yearly basis—

- Expanded to yearly basis—

-Individual .

Actual —1948..

1947 Net Railway Operating Income ad-

come x Refund to F. ky C. aad

$1,030,000 occasioned by A.C. L. change

in accounting for Foreign Line tickets |.

Source:

Combined. . - ;

juste 2! xclude $1,400,000 Federal In-*

PROTESTANT'S Exnrpit No. 65

_ Freight

Revenue

$ 62,162,035

27.1377

229 061, 545

299172" 723°

124,455,235

53.6163

232,122,013

232 , 269, 993

175,181,701

.* 44.7192

234,453, 394

23 ¥,51 1,784

232,212,859

207 , 272,552

Passenger,

Revenue

$14,498,993

31.6333

45,834,589

45,683, 177

24,055,759

55.3691

43, 446, 180

43,357,468

33, 458, 131

rye 1213

43,383,775

43, 352,856

43,281,659

45,197,956 —

Total

Revenue

$ 83,304,684

28.1290

296 , 152,313

256, 441,980

160 , 237 ,220

. 53.8155

297 , 752,915

298 021, 580

225,328,097

75.0372

300,288,519

300,355, 9°

297 , 685,298 |

274,625,212

Utilities Commission.

Operating Operating:

Expense Revenue

$ 63,472,029 $19,832,655

EE.) RRO it att ee

249,202,119 46,950,194

249,058,101 47,383,879.

125,808,326 34,428,894

BEC MRR ACen

250,919,096 46,833,819

.25tk, 8bi, 482. 47,160,098

183, 593, 282, 41,734,815

73. 1051 Cs pete ae nae

. 251,136,079 49, 52,440 —

251,117,264 49,238,704

246, 509, 450

232,912,173

Association of American Railroads, Buresu of Railway Economies, Monthly Report Series.

Annual reports/to Florida Railroad and Public

ce : ‘e

Witness: Pettijobn

. Net Railway

"51,175,848 -

41,713,039

Net Railway

Operating |

_ income —

3 9,271,924

39.0454

23,746,521

23,898 , 967

15,291,203

64.9655

23,537,421

23, 766 , 987

16,881,889

79.4559

Atlantic. Coast Line Railroad. Company, _

22,373,186»

22/936. 473

20, 169.648

13,383,694

$10,953,694

Vv

OLL

Warts 773

(fol. 1128} 1.C.C. Doeket No. 30140

ProTestTaNnt’s Exuipir No. 69

. Witness: Pettijoha

Net Railway Operating Income

Six Months Ended June 30

Bie ie: Percentage

District or Region 1948 1947 Increase

New England Region..............- $ 10,635.003 $ 6,870,054 54.80

Great Lakes Region..-..... et ENS 66,141,212 50,374,104 11.45

Central Eastern Region............. 63, 174, 639 - 53,195,167 18 76

Sauter Wattles cs. ee $129,950,854 $110,439, 325 ‘17.67 |

Pocahontas Region.............. .. $ 42,554, 729 $ 47,478,267 “10. a7°

Southern Region. SELES he eT Te 69,828,951 56,921, 937 22 67

Southern District Ria Pod Pian Bet ee $112,383 ,680. $104, 400, 204 7 65

Northwestern Region.............. $ 28, 529, 409 $ 34,202,192 16 59°

Central Western Region............ 90,994,784 81,608,181 11.50

Southwestern Region. ............. 49,080,193 43, 121, 164 13.82

Western District... ele Gee eae $168, 604, 386. $158, 931. 537 6. 08

United States.............-. Eg tao 3110/38, 926 $373, 774, 066 9 OL

Atlantic Coast Line RR Poet RES

Co,, Florida East Coast ey fey

Ry. Co., Seaboard Air .

Line RR Co. “

PN rere i ees Pe eee $ 15, 291,203 $ 10,126,803 51 0

Peis. oS Soe a biears 5,402 , 403 3, 379 ,639 59.9

” indicates decrease.

Authorities:

LC:C, Statement No. M-100, for six months ended June 30, 1948 for Dis-

tri@ts and Regions.

Mo. Rept. Ser. No. 466, Association of American Railroads, Bare “aul of

Economics for three principal Florida railroad system returns.

« Monthly reports of revenues & expenses tp Florida Railroad ,and Public

. Utilities Commission.

'&

|