Appendix — City of Chicago v. United States

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APPENDIX A

Interstate Commerce Act. Title 49, United States Code:

Section 13a(1).

A carrier or carriers subject to this part, if their rights

with respect to the discontinuance or change, in whole

or in part, of the operation or service of any train

or ferry operating from a point in one State to a point in

any other State or in the District of Columbia, or from a

point in the District of Columbia to a point in any State,

are subject to any provision of the constitution or statutes

of any State or any regulation or order of (or are the

subject of any proceeding pending before) any court or

an administrative or regulatory agency of any State, may,

but shall not be required to, file with the Commission, and

upon such filing shall mail to the Governor of each State

in which such train or ferry is operated, and post in every

station, depot or other facility served thereby, notice at

least thirty days in advance of any such proposed discon-

tinuance or change. The carrier or carriers filing such notice

may discontinue or change any such operation or service

pursuant to such notice except as otherwise ordered by the

Commission pursuant to this paragraph, the laws or consti-

tution of any State, or the decision or order of, or the

pendency of any proceeding before, any court or State

authority to the contrary notwithstanding. Upon the filing

of such notice the Commission shall have authority during

said thirty days’ notice period, either upon complaint or

upon its own initiative without complaint, to enter upon

an investigation of the proposed discontinuance or change.

Upon the institution of such investigation, the Commission,

by order served upon the carrier or carriers affected thereby

at least ten days prior to the day on which such discontinu-

ance or change would otherwise become effective, may re-

quire such train or ferry to be continued in operation or

service, in whole or in part, pending hearing and decision in

such investigation, but not for a longer period than four

1 Eb Se KM we late CPSEE te IIS CARA TA per ya iN SUSI PAS IA RA Nas Bieler mL NS mea SS IWERED

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months beyond the date when such discontinuance or change

would otherwise have become effective. If, after hearing in

such investigation, whether concluded before or after such

discontinuance or change has become effective, the Commis-

sion finds that the operation or service of such train or ferry

is required by public convenience and necessity and will not

unduly burden interstate or foreign commerce, the Commis.

sion may by order require the continuance or restoration

of operation or service of such train or ferry, in whole or in

part, for a period not to exceed one ye. ¢ from the date of

such order. The provisions of this paragraph shall not

supersede the laws of any State or the orders or regulations

of any administrative or regulatory body of any State

applicable to such discontinuance or change unless notice

as in this paragraph provided is filed with the Commission.

On the expiration of an order by the Commission after such

investigation requiring the continuance or restoration of

operation or service, the jurisdiction of any State as to

such discontinuance or change shall no longer be super-

seded unless the procedure provided by this paragraph

shall again be invoked by the carrier or carriers.

Judicial Code, Title 28, United States Code:

Section 1336(a).

Except as otherwise provided by Act of Congress, the

district courts shall have jurisdiction of any civil action

to enforce, enjoin, set aside, annul or suspend, in whole

or in part, any order of the Interstate Commerce Com-

mission.

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APPENDIX B

UNITED STATES DISTRICT COURT FOR THE

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

No. 68 C 956

City or Cuicaco, THE MeTRoPoLiTaN GOVERNMENT OF NASH-

VILLE AND Davipson Cour TENNESSEE, VILLAGE OF

MiuForD, Ciry or WatseKa, City or Hoopeston, City

oF DANVILLE, Crry or TERRE Haute, City oF VINCENNES

and Maurice F. Raprizzi, Plaintiffs,

Vv.

Unirep States oF America, INTERSTATE CoMMERCE Com-

MISSION and CHICAGO AND EasTERN ILLINoIs RatLRoaD

Company, Defendants.

Memorandum and Order

Before Knoch, Senior Circuit Judge, and Robson and

Perry, District Judges.

Robson, District Judge:

This is a suit to review certain findings and conclusions

of the Interstate Commerce Commission. The defendant

railroad has moved to dismiss. This court is of the opinion

that the motion should be granted.

On August 31, 1967, the Chicago & Ea’ ern Illinois Rail-

road Company (‘‘Eastern’’) gave notice under 49 U.S.C.

§ 13a(1) that, effective October 1, 1967, its trains numbered

93 and 54 between Chicago, Illinois, and Evansville, Indi-

ana, would be discontinued. On September 18, 1967, the

Interstate Commerce Commission (‘‘Commission’’) en-

tered an order requiring Eastern to continue operating

trains 93 and 54 pending an investigation by the Commis-

sion. After hearings and briefs, Division 3 of the Com-

mission on January 25, 1968 (served January 31, 1968),

—_———— PAPI DELLE EDINA BLE LAG AI REE ELMS ON sa 5 Sapte Tie, bd Ca een

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decided to terminate its investigation, and filed a report

outlining its reasons. A petition for reconsideration was

denied on May 8, 1968. This suit was filed shortly there.

after. A three-judge court was convened and a joint hear.

ing (with Tennessee Public Service Comm. v. United States,

68 C 1666) was held on November 4, 1968.

The statute under which Eastern posted its notices to

discontinuance is a unique statute passed in 1958 to deal

with serious financial problems faced by this nation’s rail.

roads. It allows the railroads to discontinue certain inter-

state trains without seeking prior approval of the Inter-

state Commerce Commission or any state commissions. If

$ the Commission does nothing to stop the railroad, the dis-

continuance follows automatically by statute, with no need

whatsoever for a Commission order to authorize the dis-

continuance. 49 U.S.C. §13a(1). The Commission has

a short period (30 days) in which to decide whether an

investigation is necessary, and, after an investigation (if,

of course, the Commission determines it is necessary), the

Commission may order the continuance of part or all of

the trains involved. This period of continuance is restricted

to only one year, after which time the railroad may post

further notices and go through the entire process again.

It has been conceded by both sides that when the Com.

mission decides not to enter into an investigation, there is

no judicial review, even though there may be cities and

4 states which might be ‘‘aggrieved’’ by the discontinuances,

4 State of New Jersey v. United States, 168 F.Supp. 324 (D.

‘

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j N.J. 1958), affirmed per curiam 359 U.S. 27 (1959) ; Sludden

; v. United States, 211 F. Supp. 150 (M.D.Pa. 1962). In

the New Jersey case, supra, at 329, the court said that the

‘ Commission’s order foreclosing an investigation was

4 ‘nothing other than an announcement that the Com-

4 mission intended to take no action with respect to the

; railroad’s notice of intention to discontinue the ferries.

Section 13a(1) clearly leaves to the absolute discretion

H of the Commission the determination of whether or not

— es Sta kan oY bass ras Meee aegis

SOLIS LRT AIS! LABELS IEA STASI NOTE! IEA LIAL TAIT LOBES hd os ts

—_

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it... shall make any investigation of the matter or

avail itself of its temporary veto power by way of sus-

pension within the limitations of the Act.’’

The instant case, contend the plaintiffs, has a crucially dif-

ferent element: The Commission here entered into an in-

vestigation, held hearings, made findings, and issued an

order terminating the investigation. Even though the

plaintiffs concede, as they must, that the statute [§ 13a(1)]

was the source for the authority to discontinue, and not

any order or action of the Commission, they argue that

judicial review exists as to the order terminating the in-

vestigation under 28 U.S.C. § 1336, which provides for re-

view of Commission ‘‘orders’’. The question whether such

a Commission order does fall under § 1336 has been dis-

cussed at length in several prior decisions.

In State of Minnesota v. United States, 238 F.Supp. 107,

112 (D.Minn. 1965), the Court determined that the report

and findings filed after the investigation was terminated

were both ‘‘gratuitous’’ acts. The reasoning behind the

Commission’s decision to terminate, the court continued,

even though it showed that the Commission ‘‘decided”’ that

the discontinuances were proper, is part of the power to

terminate and within the ‘‘sole discretion’? of the Com-

mission, and not subject to judicial review. The court rea-

soned that the primary purpose of an investigation and the

hearings was to give the Commission enough information

so that it would be able to reach a sound judgment as to

whether it should interfere with the proposed cutbacks in

rail service. Two situations were posed: (1) Where the

Commission knows enough about the situation, as in the

New Jersey case, supra, at 328, it will hold no investiga-

tion, and the discontinuance will occur automatically; and

(2) Where the Commission does not know enough about the

problem, it will investigate, hold hearings, determine (as in

this case) that the discontinuance does not warrant its

interference, terminate the investigation, and the discon-

tinuance will still occur automatically. There is, said the

—— POLE ORE SE PSEA AE ES IG AEE BARTHES Rt mt aia GO Re a aca RO RARE

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court, no logical difference between the two situations,

Where the Commission decided to take action, the order

requiring continuance for one year would be reviewable;

however, the ‘‘mere decision of the Commission to take

no action is not’’. Minnesota, supra, at 112. To provide

review of decisions to terminate investigations, concluded

the court, would not only be contrary to the clear meaning

of § 13a(1), but would be poor policy, ‘since it might even

encourage the Commission not to investigate doubtful

eases.’’ 7/d., at 113.

The court in State of New Hampshire vy. Boston and

Maine Corp., 251 F.Supp. 421 (D.N.H. 1965), recognized

that there might be some unfairness here. However, it

said that Congress, in meeting what was almost a crisis

situation, could provide review for one side (the reail-

th BRE ae a a care cs

4

f

is

3

5

“Mo Rea RR peti

roads), especially where the other side would be secking

review of Commission ‘‘non-action’’, if there were cogent

% policy considerations to call for such a result. /d., at 425.

A It is entirely within the spirit of the legislation to have

3 given the railroads rapid relief without lengthy review. In

4 fact, it was the delay inherent in the proceedings before

HI the state commissions that called forth the passage of Sec-

¢ tion 18a(1). See the discussion of the legislative history

: in, e.g., State of Vermont v. Boston and Maine Corp., 269

: F.Supp. 80, 84 (D. Vt. 1967).

These considerations sufficiently meet, in this court’s

opinion, the contention by two later courts that Congress

did not intend to deny judicial review in the present cir-

cumstances, Vermont, supra; City of Williamsport v.

United States, 273 F.Supp. 899, 902-903 (M.D.Pa. 1967).*

* The same underlying facts were the substance of the case of

City of Williamsport v. United States, 282 F. Supp. 46 (M.D. Pa.

1968), affirmed per curiam 392 U.S. 642 (1968). This case decided

that the Commission has the power to order a partial continuance

of operations, but did not discuss the jurisdictional question at all.

There was also no discussion of the jurisdictional issue in People of

the State of California v. United States, 258 F. Supp. 950 (N.D.

Cal. 1966).

EOE MELE SYBASE ATS BRE MEG BI NON ALG GRO S IYE AIIE 7 *

—

Further supporting this conclusion is the

tion 13a(2), which deals

Commission approval

railroad can discontinue

7a

Commission ‘‘orders”’ are

view in cases falling unde

in Section 13a(1), the

parable “‘order’’ of the (

the statute in its entire

ty, it seems appa

gress intended to deny ju

dicial review in the

remove any doubt, Vermont, supra, at 83-84, n. 2.

This court, in view of its o

issues, does not pass on the

It is therefore ordered that the defe

Eastern Ilinois’ motion to

granted and the cause ig hereby dismissed.

Win G. Krocn

Circuit Judge

J. Sam Perry

District Judge

Epwrn A. Rogsox

District Judge

January 8, 1969,

a PEERED SLA LRP GRA AA iB nt ee

fact that in See-

with wholly intrastate operations,

is expressly necessary before

any service, 49 U.S.C. § 13a(2).

The provisions, therefore, in 28 U.S.C. § 1336

reviewable, call for

r Section 13a(2). But where, as

statute is self-impleme

Jommission is iny

» that only

judicial re-

nting, no eom-

olved. Taking

rent that Con.

instant case,**

position that review is proper under

quested an amendment to the Act to

pinion on the jurisdictional

other questions presented.

ndant € thicago &

dismiss be, and it is hereby

a

Sa

APPENDIX C

Served January 31, 1968

9449

INTERSTATE COMMERCE COMMISSION

Finanen Dockwr No, 24725

Citeago & Masrenn Lininon Rainoan Co. -Discontinuanee

of Trains Nos. 93 and 54 Between Chieago, Hh, and

Kvanaville, Ind.

Decided January 25, 1968,

Upon investigation, found that operation by the Chicago

& Kastern Ilinois Railroad Company of passenger trains

Nos, 98 and 54 between Chicago, IL, and Evansville, Ind.,

is not required by publie convenience and necessity, and

that the continued operation thereof will unduly burden

interstate commerce. Investigation discontinued.

James H. Durkin and Edwin Richardson for rail carrier.

J. Fred Parker for Georgia Public Service Commission,

protestant.

William H. Wilson for Public Service Commission of

Indiana, protestant.

Mary Louise Wolford for the publie of the State of

Indiana, protestant.

Edward G. Finnegan, Leon J. Heidgen and James A.

Parker for Minois Commerce Commission, protestant,

Harold Cowen and Bernard Rane for city of Chicago, IL,

protestant.

Robert 8. Matthews and Ronald Warrum for city of

Evansville, Ind., protestant.

Keith E. Roberts for village of Milford, Tll., and city of

Watseka, protestants,

William E. Nelson for city of Hoopeston, II. protestant.

Marion E. Wright for city of Danville, Ill, protestant.

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Robert I’. Doolittle, Jr. for city of Vincennes, Ind., prot-

estant.

Irederick 1. Bauer for city of Terre Haute, Ind., prot-

estant.

Raymond J. Kearns for Sisters of Providence, St. Mary

of the Woods, Ind., protestant.

William VP’. Byroad, Gordon KE. Cox, B. L. Dreshach,

Thomas J. Duggan, George B. Lee, J. Thomas McNeal,

William KE. Nelson, Karl G. Quinn, Keith b. Roberts, J. M1.

Smith, and George P. Sheahan for various railway labor

organizations.

Report of the Commission

Division 3, Commissioners Tuggle, Bush, and Stafford

Tusate, Commissioner:

Pursuant to the provisions of section 13a(1) of the Inter-

state Commerce Act as amended, the Chicago & Eastern

Mlinois Railroad Company (C&EI1), a common carrier by

railroad subject to the provisions of part I of the aet,

on August 31, 1967, filed notices and supporting statements

in which it proposed to discontinue, effective October 1,

1967, service by its interstate passenger trains Nos. 93 and

54 between Chicago, IL, and Evansville, Ind., a distance

of 287 miles. Copies of the notices were duly served and

posted in the manner required by section 13a(1) and our

rules and regulations thereunder.

By petition filed concurrently in Finance Docket No.

24726, C&EI secks authority under section 13a(2) to dis-

continue service by its intrastate passenger trains Nos. 3

and 4 between Chicago and Danville, Ill. That proceeding

is the subject of a report and recommended order’ of the

1 By petition filed December 14, 1967, C&ET sought omission of

the examiner’s report and recommended order in Finance Docket

No. 24726 and consolidation of that matter with this proceeding.

Replies thereto were filed by certain protestants, and by order

entered January 8, 1968 the petition was denied.

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hearing examiner served separately. C&EI’s application

filed with the Illinois Commerce Commission for authority

to discontinue trains Nos. 3 and 4 was denied by that

body on September 20, 1967. Appropriate notice of the

petition filed here in Finance Docket No. 24726 was served

on the Governor of the State of Illinois.

Protests to C&EI’s proposal in the titled proceeding

were filed by communities along the line and State, civic,

business, and railway labor interests, as well as users

of the trains. By order of September 18, 1967, we insti-

tuted an investigation and required continued operation

of trains Nos. 93 and 54 pending a hearing and decision

(up to the statutory maximum of 4 months). Because of

the statutory limitation on the time available for investi-

gation and decision, our order provided for omission in

the titled proceeding of a report and recommended order

by the examiner as part of the decisional process and for

certification of the record to us for initial decision.

Public hearings were held in Chicago, Momence, Watseka,

Hoopeston and Danville, Tll., and Evansville, Vincennes,

and Terre Haute, Ind., on a consolidated record with the

section 13a(2) proceeding in Finance Docket No. 24726.

Briefs were filed by C&EI, the Illinois Commerce Com.

mission, and jointly by the village of Milford, the cities

of Watseka, Danville and Hoopeston, Ill., and the Brother.

hood of Railroad Trainmen.

At the hearing protestants moved for dismissal of the

proceedings on several grounds, principally that since

Missouri Pacific Railroad Company (MoPac) controls

C&EI, use of financial data relating only to C&EI and

excluding MoPac is grossly misleading and contrary to

the provisions of the act. Other relief sought included

suspension or termination of the proceedings and oral

argument on the motion. C&EI replied in opposition, and

the motion was taken under advisement. The protestants

pursue the argument on brief.

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The motion is denied. Oral argument is not warranted.

By contending MoPac is a necessary party to these pro-

ceedings, protestants ignore the plain language of section

13a of the act, which confers upon this Commission juris-

diction over proposed passenger train discontinuances by

“a carrier or carriers subject to this chapter.’’ Clearly,

C&ET falls within the term “a earrier’’ subject to part

I of the act. Whether or not the statutory standards for

ordering a continuance of service are met is a matter

which, in this case, does not depend (as will later be made

clear) upon the corporate relationship of MoPac and

C&EI. Piercing the corporate veil may be warranted in

some situations, as for example, where false and misleading

representations are made or where some unlawfulness may

be involved, and perhaps in other circumstances, but here

no such question is raised and no substantial reason is

advanced to pursue that course, The record indicates that

C&EI is the proper party in interest and that it has fully

cooperated in presenting the data required for our action.

Trains Nos. 93 and 54 operate on the following schedules:

Train No. 93

Train No. 54

daily Miles Stations daily

P.M. AM

3:45 0.0 Ly. Chicago, Ill. ........... Ar 10 :35

3:59 6.6 Chicago (63rd 5 10:21

A4 :30 28.8 Saeed goa vc, : E 9:44

ike 77.5 og G 8:49

6:10 123.2 oe 7:55

7:15 177.5 Terre Haute, Ind. ...._. 6:40

B7 :45 203.7 ie papas pe G 6:11

8:18 234.7 _ a 5:40

D8 :50 259.0 ei 5:05

9 :55 287.2 Ar. Evansville ...........__ Ly. 4:30

A—Stops to receive passengers.

B—Stops to discharge revenue passengers from Chicago and

Steger.

D—Stops to discharge or receive revenue passengers.

E—Stops to discharge passengers.

G—Stops to receive revenue passengers for Chicago.

ee NORE RAR Senger cote ce mee tng LIES PRG LAO IG is A ON I ly tae DLE SS

12a

Their operation is in conjunction with trains of the Louis.

ville & Nashville Railroad (L&N) similarly designated,

which operate between Evansville and Atlanta, Ga., and

Montgomery, Ala. The interchange is at Evansville. The

L&N splits its southbound No. 93 at Nashville, Tenn., with

one section terminating at Atlanta and the other at Mont.

gomery. L&N originates one section of its northbound

train No. 54 at Atlanta and the other at Montgomery, and

consolidates the two at Nashville.

The trains, designated ‘‘The Georgia—Hummingbird,”

carry passengers and baggage. They are powered with

three diesel locomotives, and have a consist of 10 regularly

assigned cars daily with 11 cars on Friday, Saturday and

Sunday. Train No. 93 leaves Chicago with a baggage-mail

car, a dormitory, diner, lounge, sleeper and two coaches

destined to Atlanta daily; a coach destined to Evansville

on Friday, Saturday and Sunday; two coaches destined

to Montgomery daily; and a sleeper destined to Mobile

daily. Train No. 54 has a baggage-mail car, a dormitory,

diner, lounge, sleeper and two coaches orignating at Atlanta

daily ; a coach originating at Evansville on Friday, Satur-

day and Sunday; two coaches originating at Montgomery

daily; and a sleeper originating at Mobile daily; all cars

having destination to Chicago. The passenger-carrying

equipment is air-conditioned.

Due toa restructuring of mail service by the U. S. Post

Office Department, the mail cars were discontinued as of

June 10, 1967, except for one storage-mail car from Chicago

to Birmingham, Ala., and in October 1967, the Post Office

Department removed that ear. The mail handled in the

baggage-mail car is minimal. Train No, 93 stil] carries

express traffic for the account of Railway Express Agency,

Ine., destined to Chattanooga. These trains do not handle

the express to or from C&ET points south of Chicago.

Alternate passenger transportation service to and from

the communities served by C&EI between Chicago and

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Evansville, and south thereof served by L&N is available

by bus and by air at most points. There are four flights

daily southbound and three northbound between Chicago

and Danville; two flights daily southbound and three north-

bound between Chicago and Terre Haute; and four flights

daily southbound and five northbound between Chicago

and Evansville. Numerous flights are scheduled between

Chicago, on the one hand, and, on the other, Atlanta,

Chattanooga, Birmingham, Nashville, Montgomery, and

Mobile, and between Evansville and Atlanta. Watseka and

Hoopeston, Ill., Sullivan, Vincennes and Princeton, Ind.,

have no air service.

A major bus line operates three southbound and four

northbound buses daily between Chicago and Evansville,

with stops at all intermediate points served by the sub-

ject trains. Rail transportation is available, though

limited, (a) by C&EI trains Nos. 3 and 4 between Chicago

and Danville (but those are the trains involved in Finance

Docket No. 24726, the discontinuance proceeding referred

to above) and (b) by Illinois Central Railroad (IC) be-

tween Chicago and Carbondale, IIl., and points south there-

of (four trains daily in each direction). Highway dis-

tances between communities served by C&EI and thos:

served by IC in Illinois vary from 12 to 35 miles. Bus

fares are lower than rail fares between Chicago and all

points served by the subject trains, except Sullivan, Ind.

Air fares are higher than rail or bus.

C&EI maintains that it has lost patronage to the private

passenger automobile ‘as a mode of intercity transporta-

tion), and, as evidence thereof, introduced statistics show-

ing the increase in the number of registered automobiles

in the counties of Illinois and Indiana traversed by the

subject trains. Considering the five Illinois counties (Cook.

Will, Kankakee, Iroquois, and Vermillion) and the six

Indiana counties (Park, Vigo, Sullivan, Knox, Gibson, and

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Vanderburg) it was shown that in 1960 the Illinois counties

had 1,653,520 registrations while the Indiana counties had

132,253, and that by 1966, there was an increase of about

20 percent—to 1,994,751 in the Illinois counties and 158,186

the Indiana counties.

For the benefit of automobile users, Illinois Highway 1

between Chicago and Danville and U. S. Highway 41 be-

tween Danville and Evansville are adjacent to and paralle!

the line of C&EI. Also U.S. Highway 41 continues north-

ward in Indiana east of Illinois Highway 1 to Chicago.

Both are first class highways and U. 8. Highway 41 has

substantial segments with four lanes. A number of wit-

nesses testified to the effect that driving on the highways

is dangerous. South of Chicago and its suburbs the roads

traverse sparsely populated areas, are generally straight

and the terrain is flat.

The population? at the points served by the subject trains

was shown as follows: Chicago 3,550,404, Chicago Heights

41,000, Watseka 5,219, Hoopeston 6,606, Danville 41,856,

Terre Haute 72,500, Sullivan 4,979, Vincennes 18,046,

Princeton 7,906, and Evansville 141,543.

A number of those points have commercial or service

areas extending beyond their corporate limits and the

population reflected by such areas is larger than for the

point involved.

During the periods 1965, 1966 and first 6 months of 1967.

train No. 93 carried 84,259, 82,213 and 31,913 passengers,

respectively, of which 53,344, 56,230, and 20,952 were de-

livered to L&N at Evansville. The daily average numbers

of revenue passengers transported by that train for the

same periods were 230,225, and 176, respectively, of which

? Based on the census taken in 1960. Since that time, some of the

areas served have had popglation increases.

en

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84, 71, and 60, respectively, were local passengers (traveling

between C&EI stations). During the same periods, train

No. 54 carried 76,854, 75,271, and 28,186 revenue passen-

gers, respectively, of which 57,983, 60,063 and 21,682, were

received from L&N at Evansville. The daily average

numbers of revenue passengers transported by that train

for the same periods were 210, 205, and 153, of which

51, 40, and 33, respectively, were local. The foregoing data

were determined from analysis of records of tickets col-

lected by conductors, cash fares received, and tickets

honored but not collected, apportioned to the subject trains

according to the number of miles traveled thereon.

The supporting studies also show the numbers of pas-

sengers boarding and deboarding at each station. Con-

sidering the last 6 months of 1967 as representing the

present level of patronage, of the 176 passengers ou train

No. 93, an average of 156 boarded at Chicago, 12 at Steger,

5 at Danville, 2 at Terre Haute and 1 at Vincennes, and 17

left the train at Danville, 20 at Terre Haute, 1 at Sullivan,

7 at Vincennes, 2 at Princeton, 13 at Evansville, and 116

continued on the L&N. Of the 153 passengers on train

No. 54 an average of 120 were through passengers from

the L&N, 12 boarded at Evansville, 2 at Princeton, 6 at

Vincennes, 1 at Sullivan, 11 at Terre Haute, 4 at Danville,

and 1 at Watseka, and 3 left the train at Terre Haute,

3 at Danville, 8 at Steger and 139 at Chicago. Thus, the

record shows that the C&EI points south of Chicago have

had few passengers boarding or leaving the trains.

C&EI’s balance sheet statement as of July 31, 1967,

shows assets aggregating $119,182,901, including current

assets of $10,220,039, special funds $484,841, investments

$10,941,671, total properties less depreciation and amortiza-

tion $96,182,478, and other assets and deferred charges

$1,353,872. Liabilities were: current liabilities of $9,631,-

117, long-term debt of $53,494,944 (including $3,103,470

l6a

due within 1 year), reserves $659,983, other liabilities and

deferred credits $619,844, capital stock $29,837,372, capital

surplus $112,522, and retained income $24,827,119. Its in-

come statements for 1965, 1966 and first 7 months of 1967,

show railway operating revenues of $40,578,936, $41,780,952,

and $23,604,275 ; net railway operating income of $3,486,070,

$4,091,786, and a deficit of $1,005,900; and net income after

fixed charges and other deductions of $1,736,086, $2,853,372,

and a net deficit of $1,757,265, respectively.

C&EI has incurred annual net railway operating deficits

in its passenger service in amounts in excess of $1 million

for the years 1962 through 1966, inclusive. More than 20

percent of freight net income has been required to sub-

sidize these rail passenger deficits in each of the years

1957 through 1966, except 1959 when the percent of freight

net income so required exceeded 12 percent. C&EI esti-

mates that the national award of September 16, 1967 to

the shoperaft employees, retroactive to January 1, 1967,

will increase its labor costs by $210,000 in 1967 and by

$321,000 in 1968. Further, a recent agreement with the

Brotherhood of Locomotive Engineers will result in pay-

ment of $100,000 to C&EI locomotive engineers in backpay.

None of those additional expenses were included in de-

termining the cost of operating the subject trains during

the first 6 months of 1967, or in projections made.

C&EI shows data respecting the financial results of the

operation of the trains for the years 1965, 1966, and the

first 6 months of 1967. In 1965, train No. 93 had revenues

(passenger, diner, express and mail) of $1,096,607 and out-

of-pocket expenses of $1,001,950 for a net income of $94,657.

For the same year, train No. 54 had similar revenues of

$811,156, and out-of-pocket expenses of $862,270 for a

net out-of-pocket loss of $51,114. In 1966, the correspond-

ing figures for train No. 93 were $1,083,494 revenues,

$1,125,287 costs, and $41,793 deficit; for train No. 54 they

17a

were $816,863 revenues, $1,022,127 costs, and $205,264 defi-

cit; the combined net loss for both trains was $247,037. In

the first 6 months of 1967, the corresponding figures for

train No. 93 were $420,167 revenues, $522,421 costs, and

$102,254 deficit, and for train No. 54, $311,281 revenues,

$477,387 costs, and $166,106 deficit; the combined net out-

of-pocket loss was $268,360. Details of the revenues and

expenses for those periods indicated as computed by the

carrier are shown in the attached appendix A.

As indicated, actual revenues from these trains, includ-

ing carbire revenue are reflected in the data presented.

The following actual expenses were also employed: Train

engineman expense, traincrew expense, sleeping car ex-

pense, insurance, expenses incurred in clearing wrecks,

baggage loss and damage claims, injuries to persons and

dining car and buffet car service. Other expenses and

savings data were computed using methods approved by

the Commission in prior proceedings. Increases in ex-

penses for 1966 over those of 1965 occurred in four ac-

counts (a) passenger train cars—repairs, (b) equipment

depreciation—passenger cars, (c) train supplies and ex-

penses, and (d) joint facility accounts. These were the

subject of detailed inquiry. On (a) an accident to train

No. 93 at Hoopeston in April 1966, were required exten-

sive repairs to passenger cars ($59,506). Expenses charged

to that account in 1965 were abnormally low. On (b)

C&EI did not, until 1967, retire its head-end equipment

used on other trains in 1965 and 1966, having made such

equipment available to the U. S. Post Office Department

for use in trains Nos. 93 and 54. Retirements of head-end

equipment in 1967, when mail was removed from all C&EI

passenger trains amounted to $365,549, but this increase

in expense was not reflected in the financial results dis-

cussed above. In projecting revenues and expenses in-

volved in operating the subject trains without the mail

— PPLE TET aE AR LEE ee Ri

ae ee ee ee eee

18a

revenue equipment, depreciation on only those cars which

would be required to operate the subject trains without

any head-end business was considered. On (c) the total

passenger portion of the account actually decreased in

1966, but spreading the expense over fewer trains than in

1965, resulted in an increased allocation to the remaining

trains. On (d) the increase in joint facility expenses jn

1966 was due to the discontinuance of passenger trains by

other railroads using such facilities, which added pro-

portionally to the expense burden on the remaining trains.

Trains Nos. 93 and 54 use joint facilities at Chicago with

four other railroads, and with one other at Terre Haute,

Vincennes, and Evansville. During the first 6 months of

1967, no C&EI passenger trains, other than the subject

trains used the Terre Haute, Vincennes and Evansville

facilities, and as a result, all of the amounts paid for use

of those facilities ($25,356, $18,136, and $104,328, respec-

tively) are savable. Joint facility costs were computed in

accordance with those methods and standards approved in

Chicago, R. I. & P. Co., Discontinuance of Trains, 328

L.C.C. 278.

The foregoing data reflect revenues received by C&EI

for transportation of mail. Projected annual revenues and

out-of-pocket expenses, exclusive of mail traffic, using 1966

revenue data, show that C&EI would incur an annual loss

of $242,850 in the operation of train No. 93 and $191,780

in the operation of train No. 54. In projecting equipment

depreciation and other expense items only the equipment

that actually would be used was considered. The projected

annual revenues and out-of-pocket expenses, exclusive of

mail traffic, were shown as follows:

19a

Train No.93 Train No. 54

Revenues :

cLiin ccadeutewee sd evewey ie $532,953 $468,549

ECT CU ET CRT TET 87,680 113,593

103-108 Baggage and other’ .......... 2,270 1,153

vo dchensee oni seer onexne 587 34,909

13i Dining and bullet® ........00000% 47,844 47,844

i PG i cones eveseetats 671,334 666,048

605-538 Car-hire, net® ............0.. 4,785 4,785

Revenue and income ................... 676,119 670,833

TE MED. stun evévevenenteune 918,969 862,563

NE ss Juke alin ecicmae kicdeme (242,850) (191,730)

Expenses :

Maintenance of equipment—

311 Repairs, diesel locomotives* ....... 53,406 53,390

317 Passenger train car repairs® ...... 141,817 141,817

331 Equipment depreciation—locomo-

CR Pe ys Sen tae 8,760 8,760

331 Equipment depreciation—cars’ .... 30,103 30,103

835 Employee health and welfare

EE ibd wae Seve sar we tt.e ws 2,502 2,502

Traffic :

351-360 Passenger traffict ............ 21,996 16,036

Transportation :

373 Station employees* .............. 15,650 14,568

376 Station supplies and expense* ..... 3,062 2,768

878 Yard conductor and brakeman® ... 5,532 5,532

392 Train enginemen™ ............... 50,193 52,987

ere eee 30,400 30,400

397 Water for train locomotion™ ...... 1,781 1,781

398 Lubrication for train locomotion!'. . 3,709 3,709

399 Other supplies for train locomotion™ 168 168

400 Enginehouse expense—train™ .... 8,108 8,108

> SS a 67,844 67,134

402 Train supplies and expenses’? ..... 88,308 88,308

403 Operating sleeping cars* ......... 49,060 37,392

409 Employee health and welfare

CE: ss die ivemae eee’ «ed 5090 5,163 5,222

ES ok akan tke nha w'e a0 16,405 16,405

419 Loss and damage—baggage™ ..... 550 480

420 Injuries to persons'* ............. 41,044 2,754

441 Dining and buffet service* ....... 71,188 71,188

Yin

Train

No. on

Revenies

Ueneral.

409 Clorka, meoennt inert "tae Aaa

400 Binplovee health and welfare

honetitat ne ; no no4

AML joint Paeitity meoonntat® 170,790 170,790

BAY Railway tas neonatal! , Y1,008 YA fay

Total exponang OTA One HOD Ha

T1088 wetial The number preceding eneh Hem ie the neoount

Wimber fy the Comnieaion a Unitorn Ayatem of Avoounta,

*Projeetod baad on enrrent toate.

*Peajoetod baad on oar meaignmnenta

*Prajeetod hagod on feat G monthe (07 PR PeHians

*Prajeetod baad on vatimated oar miles (a) feat O months 1907

ovat per ear mile,

* Hae on tive anit aeatenmont

* Raeed on care required,

* Hased on enrmont GMA. rates applied to labor only.

* Reset on enrtont masignment.

* Tased on 19g6 PAY Mente plug wage inerenged

Based on 9 unit Assirriment @D frat month 1007 coat per unit

milo

Based on estimated oar mile @ firat O month 1967 cost per

mile plus crews’ lodiing and moale at current coats

* Rased on current premiums.

Based on 20 year average

* Rased on estimated oar assign monte,

Rased on current rates applied to labor only.

It is thus apparent that C&HT has incurred substantial

losses in the operation of the trains Nos, 93 and 54 and

that the losses will substantially inerease as a result of

the Post Office Department's removal of mail from those

trains and the consequent discontinuance of passenger

trains of other railroads using the Chicago terminal facil

ity, although the latter factor was not considered in making

the above projections,

Right communities on the line served by the subject

trains intervened in opposition: Chicago, Watseka, Mil-

Yin

ford, Hoopeston, and Danville, 1, and Terre Haute, Vin

vonnea, and Kvanaville, lod. ‘The trains do not serve

Milford, Although some Minis residents who ride C&IGI

train No. 4 northbound return on train No. 04 southbound,

the witnesses testifying at communities in IMlinoia were

primarily interested in th continued operation of trains

Nos, Hand 4. ‘The latter are the eubject of the section

14n(Z) proceeding in Finance Docket No, JATZ6 and, under

the provisions of that section, are being dealt with in the

report of the hearing examiner, Indiana inferveners ane

witnesses foatifying at Indiana points were concerned with

continued operntion of the subject trains.

Of the 144 public witnesses who testified on the con

solidated record, 90 directed their testimony in whole or

in part to the subject trains. Not all use the services of

the trains, Thirty one testified on behalf of State, county,

city government or municipal organizations, civic or trade

organizations, and colleges or universities, and one pre

sented the views of a Congressman, A number were con-

corned with rail passenger service generally, thongh they

themselves did not nse the services provided by the enh

ject trains. With few exceptions the public witnesses

desire the trains continued in what would be a standhy

services for use as convenience in bad weather, at holiday

periods and for shopping trips. No public witnesses tes

tifled at Chicago.

At Watseka, the mayor and representatives of the

chamber of commerce and the County Farm Bareag in

dicated that, although they do not use the subject trains.

there ix need for rail passenger service in indncing industry

to locate in the aren. A surgeon testified to using the

trains 20-24 times a year to and from Chicago where, he

indicates, an increasing number of his patienta require

medical service. He owns an automobile, but does not

use it on long trips.

29n

At Hoopeston, the mayor and the president of the

chamber of commerce expreased concern over rail je

eenger eervies, Testimony waa given by a department

afore Diver and a beautician, Two personnel Managers

Of large corporations indicated that prospective employees

Inquire vbout franaportation faeilities to and from (hiengo,

One could expreaa no opinion as to whether diseontinnanes

of the enhjoet trains would have a detrimental effooet on

reerniting employees in Hoopeston; the other tees other

trains of C&BT and wae more concerned with their po

fention. ‘The president of the Hoopeston Industrial Cor

poration pointe ont that every prospective industry men

finns (raneportation, A representative of a eorn festival

held annually each September in Hoopeston urges eon

linnation of the eervies, hut of the 100,000 persone af

fonding the Inet ovension, he knew of only four whe eame

hy rail, The foregoing witnesses themaelyes rarely patron

iae the aubject traine. Another witness rides train No, 92

(uring unnsnally heavy enowatorma when other moana of

travel are not available,

At Danville, municipal, commercial and other organi.

ational spokesmen were concerned with rnil passenger

service generally and specifeally C&HL traina other than

those here involved. Several other witnesses proved to

be only occasional patrons of traina Nos, 9% and f4- a

bookkeeper, a number of railroad employees (who rated

their on-time performance as poor), a housewife (who

finds them erowded and often late), another housewife

whose children sometimes use the trains going fo and from

colleges (particularly in bad weather), and an architect

who expressed the view that the discontinunanee would

hamper Danville's development. Another witness who neces

C&ET trains about once a month, oceasionally drives his

automobile to Chicago, but would not go by bus because

he considers the bus routes cirenitous and the service time

consuming. Support for continued operation was voiced

by a junior chamber of commerce spokesman for 110 mem-

wa

2Aan

bers who testified that he used the trains only onee, but

that the majority of the membership use all C&BT trains;

and by the chamber of commerce (representing 116 mann

facturing firme) as part of its program to promote im-

provernent in transportation. Several manufacturing or-

ganizations indicated that some of their employees occasion

ally use the trains. Spokesmen for three civie organiza

lions use the trains several times a year, particularly

during inclement weather, but aleo have used alternate

transportation, including private automobile. A number

of the witnesses testified that the northbound train is fre-

quently late and dirty, that this was reported to the rail

road and that there was little effective response.

At fivaneville, the mayor and a State senator opined that

discontinuance of the trains would be detrimental to the

growth of industry and commerce in the community. The

mayor ses nir service on many occasions and nses rail

service about once every 6 months. The senator does not

have ocension to use C&EI's service. The chamber of

commerce spokesman urged that the discontinnance be

deferred until L&N acquires the eastern side of C&BI’s

line, although the transportation division which he repre

sents voted six to three against opposing discontinuance.

An nide to a member of Congress from Indiana presented

the Congressman’s views that rail passenger transporta

ion service is vital to the economic growth of the com

munity, and that all modes of transportation must be kept

available. Other witnesses testified to a preference for

rail over alternate modes for the occasional trips they

take, though some of them found the rail cars crowded,

dirty and sometimes unheated. Among then was the

representative of a religions community having 0 none

stationed at Evansville. She indicated that her order’s

recent transportation requirements were accomplished

throngh use of charter bus service, and that the sisters

have sufficient automobiles at their disposal.

Aa

At Vincennes, the mayor opposed the discontinuance

but, in so doing, was not supported by the city council,

The chamber of commerce mailed 475 questionnaires to

area residents regarding the proposed discontinuance; 82

were returned showing a 3 to 1 preference for keeping the

trains on. A survey at Vincennes University revealed that

22 of the 2,243 students use the trains. Members of the

faculty use them twice a year. Seven students said they

hope to use them more frequently, particularly during bad

weather. A number of other witnesses—all of them only

occasional users—complained about the condition of the

trains and the station at Vincennes, about a poor on-time

record, crowded and dirty equipment. All of the above

witnesses urge continuation of the service with improve-

ment of quality.

At Terre Haute, the mayor pressed the view that pas-

senger train service is needed in the development of in-

dustry and commerce. On his six trips to Chicago in

the past year he used train service once when his air

flight was grounded on account of bad weather. The cham-

ber of commerce cited statistics showing growth in popu-

lation, commerce, enrollment in the universities and retail

sales as yardsticks of a demand for improved service.

Aware that loss of mail revenues has precipitated dis-

continuance of passenger rail service, it argued that the

railroad should consider providing complete service, freight

and passenger, and should look to the passenger market

as any other business man looks at a new market. Further,

that a successful company expects to absorb departmental

losses within its gross earnings in order to provide a

complete service. Professors and students of a local uni-

versity, opposing the discontinuance, testified to their use

of the trains variously from regular weekend use to once

or twice a year during inclement weather. Student owner.

ship of automobiles by upper classmen is permitted and

some of the students use the trains only when they cannot

25a

obtain automobile transportation. Student use of the

trains is primarily on holidays and at the beginning and

end of summer vacation. While enrollment at the local

university has more than doubled in the past 6 or 7 years,

use of the trains at Terre Haute has continued to decline.

A religious order with national headquarters at nearby

St. Mary of the Woods has 350 members who ride the

trains to Chicago twice annually for connections east and

west thereof. The order has a number of automobiles at

its disposal and has used them and bus service for Chicago

trips. In advertising for its college the order would like

to be in a position to advise prospective students that

easy access is available via rail among other modes. It

has had some difficulty with on-time performance of the

trains, particularly in making connections. The college

has about 400 students, a number of whom are from the

Chicago area.

Some evidence was presented to show the carrier’s car-

cleaning program and the problems involved. Sometimes

delay in arrival at Chicago requires quick turnaround,

and cleaning of the cars leaves much to be desired. The

record indicates that C&EI has made some effort to over-

come the problem but must deal with C&WI which main-

tains the Chicago terminal facility.

Discussion and conclusions.—Numerous factors are con-

sidered in determining whether to order the continuance

of service under section 13a(1) of the act. Among them

are public use of the service, population of the area, effect

of a train discontinuance upon the communities served,

available alternate transportation, financial results of the

operation, prospects for the future, and the carrier’s finan-

cial condition. The weight to be given each factor depends

on the circumstances in a particular case. No one factor

is necessarily controlling. The intent of Congress in

enacting section 13a was to enable carriers to discontinue

train services that no longer pay their way, and for which

26a

there is no longer sufficient public need to justify the finap.

cial loss involved. See Southern Ry. Co. v. North Caroling.

376 U.S. 93.

At one time the passenger train was the pride of the

transportation system, This was especially so in the

United States where there was vast wilderness to be tamed,

rich deposits of natural resources to be tapped, and large,

widely-separated cities to be connected. The railroad and

its passenger trains provided the strands for tying the

far-flung areas together, and the channels for rapid, effi.

cient communication and transport. Time and inventive

genius created more efficient means for performing a num.

ber of the functions for which we formerly relied on the

rails. Electronics provide instant communication, and

airplanes cut transport time tremendously for people, mail

and express. The automobile and the supper highway—

The evidence now before us shows that the subject trains

no longer are used by express shippers (except for some

movements between Chicago and Chattanooga), or by the

Post Office Department for mail (once a highly remunera-

tive source of traffic and a primary source of sustenance

for passenger trains), Passenger traffic has been dwin-

dling. In the meantime, costs continue upward inexorably.

The general rise in costs throughout the economy are re-

flected in the railroad’s expenses for employees, equipment,

fuel, supplies, facilities and services. With the loss of

mail revenues making a dramatice change in the financial

results of the operation, C&ET would have to absorb an

out-of-pocket deficit well over $400,000 per year in order

to continue trains Nos. 93 and 54. It is likely that the

deficit would go beyond a half million dollars.

Financially, this carrier is at best marginal. It has a

history of deficit operation and is beset with numerous

27a

problems flowing therefrom regarding rehabilitation of

its line and recovery of traffic. See Missouri Pac. R. Co.

—Control—Chicago & E. 1. R. Co., 327 LC.C. 279 (1965).

The slender profit shown on this record for 1965 and 1966

occurred at the height of a record breaking period of

national prosperity. The relatively slight slowdown in

the national economy during 1967 had an immediate and

telling effect on C&EI’s operation, creating a net deficit

of nearly $2 million in the first 7 months of the year.

C&EI is an important link in the national rail system and

from the point of service in its own area and as an integral

part of the national system, its viability is a thing much

to be desired. Continuance of the subject trains would

militate against that objective. There is no reasonable

prospect for relief from the financial burdens imposed

by those trains. To the contrary, all indications are that

the burdens would mount. And this, in turn, would soon

intensify the railroad’s malaise, all to the detriment of

the public.

The people who have been using the trains for travel

have done so largely on an occasional or standby basis.

Their primary means of conveyance are the automobile

and other nonrail modes. The testimony of the govern-

mental leaders, business representatives, students and

housewives is clear proof of that. The witnesses them-

selves appear to prefer air and automobile travel. Many

gave opinions about a need for rail passenger service in

the interest of community and commercial growth, but few

hard, realistic facts were advanced by them in support.

The passenger-use statistics stand as stark proof that,

regardless of what is felt and said, the people along the

C&EI’s Evansville-Chicago line are not using the trains.

Their patronage is minimal.

For those who must depend upon public transportation,

bus service is far more plentiful than the train service—

at all points on the line. Use of the buses will require

——

28a

an adjustment, but whatever inconvenience might be ex.

perienced does not outweigh, on the scale of the public

interest, the tremendous burden continued operation of

the trains would involve. We conclude that discontinuance

by C&EI of trains Nos. 93 and 54 is consistent with the

purpose of section 13a(1) of the act, and the objectives

of the national transportation policy.

Certain railway employees seek imposition of the Bur-

lington or similar conditions in the event the discontinu.

ance is authorized. Similar requests have been considered

in prior proceedings of this nature, and the Commission

has uniformly held that we do not possess authority to

impose conditions for the protection of railway employees

who may be adversely affected as a result of the dis-

continuance of passenger service under section 13a(1).

See Great Northern Ry. Co. Discontinuance of Service,

307 1.C.C. 59. However, the probable effect of such dis-

continuance on employees is a matter to be considered in

determining whether the public convenience and necessity

require the continuance of such service. We have con-

sidered that factor, and, in our opinion, the probable

adverse effect upon employees does not afford sufficient

grounds to order continuance of the service.

Contentions of the parties as to fact or law not spe-

cifically discussed herein have nevertheless been considered

and found to be without merit or material significance.

We find that the operation by the Chicago & Eastern

Illinois Railroad Company of passenger trains Nos. 93

and 54 between Chica , Tll., and Evansville, Ind., is not

required by the public convenience and necessity and that

continued operation thereof would unduly burden inter-

state or foreign commerce.

An appropriate order will be entered discontinuing the

investigation herein.

29a

Statement of revemmes and expenses for trains Bos. #3 and 54 in 1965, 1066 and ¢ months of 1967

1965 1966 ‘ix 1967

hie eee rein OS rain

$ 516,762 $ 2. 19 $ 532,953 $ 466,549 $ 235,099 $ 197,355

90,032 122) 097 87,680 113; ”3 33,431 45,172

othex (1) 1,606 "93 2,270 13153 2,970 1,315

81,043 62,304 82,643 gery 12,483 12,483

106 305,137 50,854 305,621 9, ul 110,356 37,510

wi Santee = zh An 45,875 ay’ ben aries a4 18910

is & buffet (1) 16,910

905-538 Car hire, net (1) 51,842 — yee 21,328 2/008 L280) £3,900)

feral =. ‘See below) 1,001,950 __862,270 1,125,287 _ 1,022,127 522° 421 477)387

PROFIT OR ( SWEET TESTI) ART) TMS) «= —TIOTITSE) TTBS TOD)

Meintenance of Equ

Dil Repairs, diese! lecom-

tives (3 54,497 54,897 70,299 70,959 26, 695

7 ex tw cars-

a 89, 300 72,511 174,853 163,022 70,864

331 Equip .Deprn xf sires 2 12,996 12, ° 12,996 6,498

2 ete Se sens b>) Wi (6) %,051 35,799 539,211 $8,431 27,882

2,354 2,175 2,916 2/841 1, 250

51-360 Passenger Traffic (8) 17,896 13,539 19,959 146,914 10,998 8,018

373 Station loyees (9) 67,445 26,764 64,723 29,276 24,154 11,641

376 Sta. oant * & exp. (10) 2,568 a 2,568 2,568 1,531 64

378 Yard ¥* - (il) 3,436 3,436 1,661 1°661 1,832 15832

2 Trein enginemen (1) 48, 669 51,395 47,603 50,369 23,674 26,517

394 Trein Fuel @) 58,187 58,614 46,150 46,583 18,407 18,401

39) Weter for Loco. £3 1,306 1,527 486 2,510 1,078 15078

398 Lubs. for trein Loco. 2,76 2,766 3,127 3,156 2,265 2,245

399 Other lies for trein

5 %3) 649 656 377 380 101 101

‘00 pe. eupanee trein (3) 14,820 14,929 12,395 12,511 4,909 4,908

401 Treinen (1) 61,163 61,861 64,651 63,937 29,278 29,201

402 Train supplies & . a OR 64,778 $7, ,105 84,673 47,025 44,627

43 rE | shoegies @ 44,199 49,385 41,171 31,361 246,530 18,696

its ay 7,727 6 394 2,49 2,468

a) 12,172 12,172 12,178 12,178 8,766 8,766

415 Clearing wrecks (1) --- oo 4,987 ose on ene

2 | AX, A ted 230 20 2 #2 abe oo-

Se ee 76,3350 2,375 22,782 2,593 11,000 1,647

at diling & et arly Xy 69,16) 69,161 76,839 76,639 35,594 35,596

452 Clerks, accounting ( 13,566 13,464 10,972 10, 292 4,571 4,129

456 = est od as Ay ‘Gs 580 576 429 604 180 162

“.o<s 72a 380__ osise ees, 38'Sat Moise? __‘ 10.822

ax eccrwals 10

ets:

Actual.

Revemwe plus cer hire

3) Passenger portion of eccount divided by passenge: unit-miles times unit-siles per trein

Passenger portion of ogog chs a by pessenger car-miles exclusive of sleeping car-miles

times ectual car-miles per

-C. rates @istribuced oF trains on basis of units assigned.

At 1.C.C. retes tributed to treins on basis of ectuel car-miles

C.M.A. retes ied to labor portion of sccounts Nos. 31] and na 317

Dis on is of reveme pro rete.

Includes mail handlers, elso C4ZI stetion employees.

Trains Nos. 93 and $4°s portion of Danville depot expense

1 eee oa herder - actual.

1 Passenger ‘tion of eccount divided by passenger camamiles —— mat car—eiles.

1 S.M.A. retes rel eo to labor portion of sccownts Mos. 373, 576, 392 and 40

14) Revenue pro rete —.

1 C.M.A. Fetes applied to nee peas account

16 — arc of joint fecil ‘worl tf at Cnicage, Te te, Vincennes and Evansville.

retes en M.. a, ted to lebor a oth on tos Sil, 37, 351 through Seo,

end U.I.

ais" 78, 392, 1 end

Order

At a Sewsion of the Drrmurarn Commencon Comm tastion,

Division , held at ite offies in Washington, 1 (5, on the

ghth day of January 1H,

Minanees Docket No, 2472h

Carcago & Wanrinn Titdsoim Mattnoan (Co, Dincortiat

anon oF Tnatwe Now, 04 amp 64 Vierwsmn Citcago, WA,

anv vaAnevindds, Dev,

Investigation of the matters and things involved in thin

rocooding having been made pursuant to the order of

said division, dated Meptember 14, 1967, n hearing having

hoon held and the anid division on the date hereof having

made and fled a report containing its findings of fret andl

conclusions thereon, which report is hereby referred to and

mule a part hereof;

It ia ordered, That this investigation be, and it ia hereby

discontinued, and that this order shall be effective 25 days

from the date hereof,

By the Commission, division 4.

Hf. New, Ganson,

(Smat) Neoretary.

32a

APPENDIX D

Service Date

May 15, 1968

Order

At a Session of the Interstate Commerce Com Mission,

Division 3, acting as an Appellate Division, held at its

office in Washington, D. C., on the 8th day of May, 1968,

Finance Docket No. 24725

Cricaco & Kasrern Inutnois Rarmroap (Co. Discontinu-

ANcE or Trains Nos. 93 anv 54 Between Cutcaco, Int,

AND Evansvinir, Inp.

Upon consideration of the record in the above-titled

proceedings, including the petition filed by the Cities of

Chieago, Danville, Hoopeston, Terre Haute, Vincennes,

and Watseka and the Village of Milford, on March 1,

1968, for reconsideration of the order of the Commission,

Division 3, dated Jannary 25, 1968, authorizing the above-

titled discontinuance ; applicant’s reply thereto ; petitioners’

motion to strike certain matter appearing in the reply;

and applicant’s reply to the motion; and

It appearing, That the matters appearing in the reply

to the petition objected to in the motion to strike are not

of record in this proceeding and therefore not properly

before this Commission as evidence and that no objection

is made to the motion to strike;

It further appearing, That in order to invoke the juris-

diction of this Commission under section 13a(1) of the

Interstate Commerce Act a carrier must comply with cer-

tain requirements, including the posting of notice ‘in each

station, depot, or other facility involved’ (49 CFR 43.5

(j)), which notice must contain a ‘‘complete description

of the present service of the train . . . involved and of

the discontinuance or change of operation or service pro-

33a

posed’? (49 CFR 43.5(c)); and that the purpose of re-

quiring such notice is to give the travelling public affected

the opportunity to protest the proposed discontinuance ;

and

It further appearing, That applicant in the above-titled

proceeding failed to give the proper notice required, as

described above, in that no notice was posted in those

facilities along the through route of trains Nos. 93 and

54 south of Evansville, Ind., and the notice as posted con-

tained no mention of the through-route nature of the trains

south of Evansville; and that applicant therefore has

not effectively invoked the jurisdiction of this Commission

in the above-titled proceeding:

It is ordered, That the motion to strike certain matters

appearing in applicant’s reply to the petition for recon-

sideration be, and it is hereby, granted;

It is further ordered, That the petition, insofar as it

seeks dismissal of the above-entitled proceeding for failure

to invoke this Commission’s jurisdiction under section

13a(1), be, and it is hereby, granted, and in all other

respects is denied.

By the Commission, Division 3, acting as an Appellate

Division.

H. New Garson,

Secretary.

(Sea)

APPENDIX E

Service Date

May 15, 1968

Corrected Order

At a Session of the Inrerstare Commerce Com Mission,

Division 3, acting as an Appellate Division, held at its

office in Washington, D. C., on the 8th day of May, 1968,

Finance Docket No. 24725

Cuicaco & Kastern Iutinows Ramroap Co. Discontinv-

ANCE OF Trains Nos. 93 ann Berween Cnicaco, I,

AND Evansvitir, Inv.

Upon consideration of the record in the above-titled

proceedings, including the petition filed by the Cities of

Chicago, Danville, Hoopeston, Terre Haute, Vincennes,

and Watseka and the Village of Milford, on March 1, 1968,

for reconsideration of the order of the Commission, Divi-

sion 3, dated January 25, 1968, authorizing the above-titled

discontinuance; applicant’s reply thereto; petitioners’ mo-

tion to strike certain matter appearing in the reply; and

applicant’s reply to the motion; and

It appearing, That the order of the Commission, Divi-

sion 3, acting as an Appellate Division, dated May 8, 1968,

and served earlier on May 15, 1968, erroneously indicated

that the Commission had granted the petition insofar as

it sought dismissal of the above-titled proceeding for fail-

ure to properly invoke this Commission’s jurisdiction under

section 13a(1) ;

It further appearing, That the matters appearing in the

reply to the petition objected to in the motion to strike

are not of record in this proceeding and therefore not

properly before this Commission as evidence and that no

objection is made to the motion to strike ;

35a

It further appearing, That in order to invoke the juris-

diction of this Commission under section 13a(1) of the

Interstate Commerce Act a carrier must comply with cer-

tain requirements, including the posting of notice ‘‘in each

station, depot, or other facility involved’ (49 CFR 43.5

(j)), which notice must contain a ‘‘complete description of

the present service of the train... involved and of the

discontinuance or change of operation or service pro-

posed’? (49 CFR 43.5(c)); and that the purpose of re-

quiring such notice is to give the travelling public affected

the opportunity to protest the proposed discontinuance ;

It further appearing, That applicant in the above-titled

proceeding gave the proper notice required, as described

above; and

It further appearing, That no other new issues are raised

or evidence of substance offered to support the request

for reconsideration, and good cause has not been shown

for granting the relief requested;

lt is ordered, That the motion to strike certain matters

appearing in applicant’s reply to the petition for recon-

sideration be, and it is hereby, granted;

It is further ordered, That the petition for reconsidera-

tion be, and it is hereby, denied in all respects.

By the Commission, Division 3, acting as an Appellate

Division.

H. Net Garson,

Secretary.

(Sea)