# Record P718773 — King v. United States

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Record P718773
- **Published:** January 1, 1953
- **Citation:** 344 U.S. 254

## Text

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-

4

719
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

a:
j

minimum charges in effeet during the 1948-49 seasoh and

: - Boies :

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

_

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-

—

722

- :

- 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 -

K 723 |
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-

‘

724
-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,

“
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

*

4 |

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

~

€-:

*

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
~

47—444

NO) is:slightly over 20 miles, while the hauls of ,
the Missouri: Pacific range from 2 miles to 39 miles. The

hades

-

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.

—— ——-—» — ——-—+———
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 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

- 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
-

+

(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 ( 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

.

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 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

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.

'&
|

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386407_0185%3A11. Public record. Not legal advice.
