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The Owosso Argus-Press Jan. 3, 1938

“Hamilton Bartlett, Ann Arbor railroad conductor who has served the road in Various capacities for the past 39 years, closed his long period of service to the railroad today with his official retirement. He made his last run for the Ann Arbor on December 16 when he brought a freight train from Toledo to Owosso. He is 65 years of age.

On January 12, 1899, Mr. Bartlett first began work for the railroad in the roundhouse at Frankfort, the northern terminal of the Ann Arbor. For several years while living in Frankfort, he worked in the roundhouse and later on the track repair crew.

On October 16, 1905, he was made a brakeman and made his first run from Frankfort to Cadillac.

Some years after he was made a brakeman, Mr. Bartlett came to Owosso to make his home, and during most of the time he has lived here he has served the road in the capacity of conductor.

Made All Runs

“the Ann Arbor hasn't a run that I haven't gone over as conductor,” he says. Nevertheless, he describes his long experience on both freight and passenger trains as uneventful except for the winters when huge drifts of snow and sleet storms presented heavy obstacles to the passage of trains.

For the last 15 years the snow hasn't been so bad, he states, but the winter months of 1916 and 1922 gave the train crews plenty to worry about.

After a bad snow storm early in the winter of 1916, Mr. Bartlett recalls, he took out a snow plow crew consisting of 35 men, the plow and two large engines. The crew left Owosso and was 16 hours getting through to Cadillac. On the way it dug out two passenger trains and a freight train from six-foot banks of snow.

Leaving Thompsonville on March 2, the crew cleared the line to Cadillac after working continuously for 22 hours. There had not been a train over the line for three days, and the plow was powered by engines instead of two and the clearing was a long, slow process.

Bucks Snow Drifts

Much of the track was covered with such a depth of snow that the only way the plow could get through was by hitting the drifts at 35 miles per hour. The plow generally went about two engine lengths before it became stuck and the men shoveled it loose from the snow. The the plowing equipment would back up, get a flying start and ram into the banks again, clearing the track for another two lengths.

One trip, Mr. Bartlett recalls, which was fraught with danger was a trip made to Frankfort after a sleet storm in February, 1922. Telegraph wires were broken by the weight of the sleet and it was impossible for the dispatcher to get messages up the line. Bartlett sent his train slowly over the track and had to stop at intervals to flag down approaching train. “There was no other way to stop them,” he said.

During that ice storm, he said, it was estimated that there were six pounds of ice on every foot of telegraph wire. Wires and poles alike were snapped off by the terrific weight. Ahead of them during the entire trip lurked the danger of derailment and the possibility of being struck by another train.

“but except for those snow and ice storms,” Mr. Bartlett states, “my work has been very routine.”

The Owosso Argus-Press Jan. 3, 1938

Little Change in Work at Car Shops

The amount of employment in the car shops and in the locomotive department of the Ann Arbor Railroad during January will be approximately the same as it was in December, it was stated this morning at the office of the master mechanic.

The appropriation for the first month of 1938 about equals that for the last month of 1937 and the shops will continue to work on the necessary running repairs as it did during December, it was stated.

Employment in both the car shops and in the heavy repair department has dropped off during the past few months due to the general business recession which has affected all of the country's railroads, and which forced the Ann Arbor to discontinue a large program of improvement which it embarked upon during the early months of 1937.

In the matter of the application of the State Highway Department for authority to cross with Trunkline Highway M-20 as relocated by means of a separation of grades, the tracks and right-of-way of the Ann Arbor Railroad Company, located in Sections fifteen (15) and twenty-two (22), Union Township, Isabella County, Michigan. File No. 7077-648. January 5, 1938.

Application having been filed December 27th, 1937 by L. W. Millard, Bridge Engineer for the State Highway Department, for authority, in accordance with the requirements of Act 3:35, Public Acts of 1931, to separate the grades at the proposed relocation. of State Trunkline High way M-20 and the Ann Arbor Railroad Company, situated in Sections fifteen (15) and twenty-two (22), Union Township, Isabella County, Michigan, by carrying the railroad over the highway. , Attached to said application is a copy of the plans and agreement for such grade separation, entered into on the 23rd day of December, A. D. 1937, by and be. tween the Michigan State Highway Department by Murray D. Van Wagoner, State Highway Commissioner of the State of Michigan, and The Ann Arbor Railroad Company and Norman B. Pitcairn and Frank C. Nicodemus, Jr., Receivers of The Ann Arbor Railroad Company by Norman B. Pitcairn, one of the receivers.

The Commission is advised in said agreement in part as follows:

“WHEREAs, the separation of railroad and highway grades at that location by means of an underpass, as a matter of public safety and convenience, has been approved by the Federal Bureau of Public Roads as a project for construction through the use of funds provided by the United States Government for the elimination of hazards to life and property at railroad grade crossings, to be expended under the provisions of Sections 1, 7 and 8 of the Act of Congress approved June 16, 1936 (45 Stat. 1519), in the manner required by Section 21 of the Federal Highway Act of November 9, 1921, as amended and supplemented;

WHEREAs, the parties hereto have reached an understanding with each other respecting such construction, including the preparation and approval of plans and specifications; the temporary work necessary to provide for the operation of trains of the Railroad during the construction period; the construction of the permanent grade separation structure; the incidental work made necessary by such grade separation construction; and the payment of the cost thereof.”

The Commission, after due consideration of said application, together with the plans and agreement dated December 23rd, 1937 for said pro posed grade separation of State Trunkline Highway M-20 as relocated, by means of an underpass, has determined that such separation of grades is necessary for the welfare, safety and convenience of the public, and such application should be granted, and the plans and agreement ap proved;

THEREFORE, IT IS HEREBY ORDERED, By the Michigan Public Utilities Commission, in accordance with the authority vested therein by Act 335, Public Acts of 1931, that Murray D. Van Wagoner, State Highway Commissioner of the State of Michigan be, and he is hereby authorized and empowered, for the welfare, safety and convenience of the traveling public, to cross with State Trunkline Highway M-20, as relocated, by means of an underpass structure, the tracks of The Ann Arbor Railroad Company located in Sections fifteen (15) and twenty-two (22), Union Township, Isabella County, Michigan, PRovided: that such separation of grades be according to the plans and terms of the agreement entered into on the 23rd day ofDecember, A. D. 1937 by and between the Michi gan State Highway Department and The Ann Arbor Railroad Company, which plans and agreement are hereby approved, and copy of same at tached hereto and made a part hereof

IT IS FURTHER ORDERED, That this Commission reserves unto itself jurisdiction of this matter, and the right to issue any further order or orders in this matter which, in its judgment, may be deemed necessary for the welfare, safety and protection of the traveling public.

MICHIGAN PUBLIC UTILITIES COMMISSION.

In the matter of the application of The Ann Arbor Railroad Company for authority to install flashing light signals in lieu of the crossing watch man now maintained at the West South Street crossing of The Ann Arbor Railroad Company in the Village of Ithaca, Michigan. File No. 7077-650. February 8, 1938

Formal application having been filed on February 7th, A. D. 1938 by V. Parvin, General Superintendent of The Ann Arbor Railroad Company, for authority to install flashing light signals at the West South Street crossing of its tracks in the Village of Ithaca, in lieu of the crossing watchman as now maintained.

In said application the Commission is advised that the Village Council of Ithaca passed a resolution granting the Ann Arbor Railroad Company permission to install flashing light signals as requested, and with out expense to said Village of Ithaca.

This Commission, after due consideration of said application, and being advised that the Village of Ithaca has no objection to the eliminating of the crossing watchman's services upon installation of flashing light signals at said West South Street crossing of the Ann Arbor Railroad Company, is of the opinion that such installation is in the best interests of public safety, and said application should be granted,

THEREFORE, IT IS HEREBY ORDERED by the Michigan Public Utilities Commission that The Ann Arbor Railroad Company, within ninety days from date hereof, cause to be installed and thereafter effectively maintained, a side-of-the-street flashing light signal system, in lieu of the crossing watchman as now maintained, at the West South Street crossing of its tracks in the Village of Ithaca, to warn highway traffic in advance of the approach of engines and trains, PROVIDED :

  1. Said flashing light signals are installed in accordance with the requirements of Act 336, Public Acts of 1931, and specifications of the Michigan Public Utilities Commission for flashing light signals, a copy of which is hereto attached and made a part hereof;

  2. The cost of installation and future maintenance of said flashing light signals shall be borne solely by The Ann Arbor Railroad Company;

  3. In case said flashing light signals become inoperative The Ann Arbor Railroad Company shall immediately cause a watchman to be stationed at said crossing to warn highway traffic in advance of the approach of engines and trains until such signals have been restored to working order.

IT IS FURTHER ORDERED that this Commission reserves unto itself jurisdiction of this matter, and the right to make any further order or orders in the matter which, in its opinion, may be deemed necessary for the interests of the traveling public.

MICHIGAN PUBLIC UTILITIES COMMISSION.

Northern Hemlock and Hardwood Association, Maple Flooring Manufacturers Association, Robbins Flooring Company, Grand Rapids Association of Commerce, Complainants, vs. Ann Arbor Railroad Company (Norman B. Pitcairn and Frank C. Nicodemus, Receivers, et al.,) Defendants. Suspension of lumber rates. D-3139. March 24, 1938.

Upon protests filed March 21, 1938 by J. W. Goodman, counsel for Northern Hemlock and Hardwood Association, Maple Flooring Manufacturers Association and Robbins Flooring Company, and on March 25, 1938, by C. E. Elerick, Traffic Commissioner, Grand Rapids Association of Commerce, it is alleged, among other things, that the following carriers have filed with the Michigan Public Utilities Commission tariffs and supplements to tariffs as listed below effective March 25, 1938 and later dates: Upon protests filed March 21, 1938 by J. W. Goodman, counsel for Northern Hemlock and Hardwood Association, Maple Flooring Manufacturers Association and Robbins Flooring Company, and on March 25, 1938, by C. E. Elerick, Traffic Commissioner, Grand Rapids Association of Commerce, it is alleged, among other things, that the following carriers have filed with the Michigan Public Utilities Commission tariffs and supplements to tariffs as listed below effective March 25, 1938 and later dates:

Agent L. E. Kipp's M.P.U.C. No. 256

Supplement No. 1 to Agent L. E. Kipp's M.P.U.C. No. 256

Supplements Nos. 19 and 20 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1688

Supplements Nos. 13 and 14 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1791.

Supplements Nos. 41 and 42 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1574.

Supplements Nos. 34 and 35 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1531

Supplements Nos. 32 and 33 to Minneapolis, St. Paul and Sault Ste

Marie Railway Company M.P.U.C. No. 1483.

Supplements Nos. 9 and 10 to Manistique and Lake Superior Rail-

road Company M.P.U.C. No. 166.

Supplement No. 3 to Lake Shore and Ishpeming Railroad Company

.P.U.C. No. 169.

Supplements Nos. 16 and 17 to Ann Arbor Railroad Company (Nor

man B. Pitcairn and Frank C. Nicodemus, Receivers) M.P.U.C. No. A-826.

Supplements Nos. 33 and 34 to Ann Arbor Railroad Company (Nor

man B. Pitcairn and Frank C. Nicodemus, Receivers) M.P.U.C. No. A-726.

It is further alleged that the supplements above referred to cancel out specific commodity rates on lumber and forest products and establish in lieu thereof Column 25 Class Rates as referred to in Agent L. E. Kipp's Tariff M.P.U.C. No. 256 and that the cancellation of said supplements and the application of said Agent Kipp's Tariff increases the rates for the transportation of lumber between points in the State of Michigan and further that said Agent Kipp's tariff increases the minimum weight to thirty-six thousand (36,000) pounds; and

It is further alleged that said Agent Kipp's tariff provides for a change in commodity descriptions which will eliminate a number of commodity rates now applicable on Michigan intrastate traffic;

It is further alleged that if the Class 25 rates are allowed to become effective in Michigan the result would be unjust and unreasonable, un justly discriminatory and unduly prejudicial against producers and con sumers in the State of Michigan in violation of Act 300 of the Public Acts of 1909 and Acts amendatory thereof and supplementary thereto;

And it is the request of complainants that the effective date of such proposed cancellations and effective date of Agent Kipp's Tariff M.P.U.C. No. 256 be postponed in order that complainants may appear before the Commission and present evidence in support of their protest; and after due consideration to this matter And it is the request of complainants that the effective date of such proposed cancellations and effective date of Agent Kipp's Tariff M.P.U.C. No. 256 be postponed in order that complainants may appear before the Commission and present evidence in support of their protest; and after due consideration to this matter

Now THEREFORE, IT IS HEREBY ORDERED, that the effective dates of the supplements and tariffs listed below be and they are hereby postponed for a period of 45 days (which is 45 days after the effective date of Agent Kipp's tariff M.P.U.C. No. 256) or until May 9, 1938, unless otherwise ordered by this Commission: Now THEREFORE, IT IS HEREBY ORDERED, that the effective dates of the supplements and tariffs listed below be and they are hereby postponed for a period of 45 days (which is 45 days after the effective date of Agent Kipp's tariff M.P.U.C. No. 256) or until May 9, 1938, unless otherwise ordered by this Commission: Now THEREFORE, IT IS HEREBY ORDERED, that the effective dates of the supplements and tariffs listed below be and they are hereby postponed for a period of 45 days (which is 45 days after the effective date of Agent Kipp's tariff M.P.U.C. No. 256) or until May 9, 1938, unless otherwise ordered by this Commission: Now THEREFORE, IT IS HEREBY ORDERED, that the effective dates of the supplements and tariffs listed below be and they are hereby postponed for a period of 45 days (which is 45 days after the effective date of Agent Kipp's tariff M.P.U.C. No. 256) or until May 9, 1938, unless otherwise ordered by this Commission:

Agent L. E. Kipp's M.P.U.C. No. 256

Supplement No. 1 to Agent L. E. Kipp's M.P.U.C. No. 256

Supplements Nos. 19 and 20 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1688

Supplements Nos. 13 and 14 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1791.

Supplements Nos. 41 and 42 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1574.

Supplements Nos. 34 and 35 to Duluth, South Shore and Atlantic

Railway Company (Edward A. Whitman and James L. Homire, Trustees) M.P.U.C. No. 1531

Supplements Nos. 32 and 33 to Minneapolis, St. Paul and Sault Ste

Marie Railway Company M.P.U.C. No. 1483.

Supplements Nos. 9 and 10 to Manistique and Lake Superior Rail-

road Company M.P.U.C. No. 166.

Supplement No. 3 to Lake Shore and Ishpeming Railroad Company

.P.U.C. No. 169.

Supplements Nos. 16 and 17 to Ann Arbor Railroad Company (Nor

man B. Pitcairn and Frank C. Nicodemus, Receivers) M.P.U.C. No. A-826.

Supplements Nos. 33 and 34 to Ann Arbor Railroad Company (Nor

man B. Pitcairn and Frank C. Nicodemus, Receivers) M.P.U.C. No. A-726.

IT IS FURTHER ORDERED that this matter be brought on for hearing, consideration and determination by said Commission at its offices in Lansing April 22, 1938 at 10 o'clock A. M. at which time all interested parties are hereby requested to attend and present such evidence as they deem necessary in the premises. MICHIGAN PUBLIC UTILITIES COMMISSION. IT IS FURTHER ORDERED that this matter be brought on for hearing, consideration and determination by said Commission at its offices in Lansing April 22, 1938 at 10 o'clock A. M. at which time all interested parties are hereby requested to attend and present such evidence as they deem necessary in the premises.

MICHIGAN PUBLIC UTILITIES COMMISSION.

Grand Rapids Association of Commerce, Complainant, vs. Ann Arbor Railroad Company (Norman B. Pitcairn and Frank C. Nicodemus, Receivers) et al., Defendants. Postponement cancellation of lumber rates. Supplemental order. D-3134. March 30, 1938.

This Commission having received complaints from the Northern Hemlock and Hardwood Association, Maple Flooring Manufacturers Association, Robbins Flooring Company and Grand Rapids Association of Commerce requesting the Commission to suspend the increased rates on lumber, forest products and articles taking same rates between points in the Upper Peninsula of Michigan and between points in the Upper Peninsula of Michigan and points in the Lower Peninsula of Michigan and the Commission having postponed until May 9, 1938 the effective dates of the supplements and tariffs named in complaints,

It appearing to the Commission that the hearing to be held in Docket D-3134 should be consolidated with the hearing to be held in the above matter which has been assigned Docket No. D-3139;

It further appearing that the defendants in Docket D-3134 have agreed to voluntarily further postpone until May 9, 1938 the tariffs and supplements that were postponed until April 17;

Now, THEREFORE, IT IS HEREBY ORDERED, that the effective date of the tariffs and supplements listed below be and they are hereby further postponed until May 9, 1938, unless otherwise ordered by this Com mission:

Supplement No. 22 to Ann Arbor Railroad Company (Norman B. Pitcairn and Frank C. Nicodemus, Receivers) M.P.U.C. No. A-763.

Supplement No. 29 to Detroit and Mackinac Railway Company M.P.U.C. No. 674.

Supplement No. 49 to Grand Trunk Railway System (Lines west of the Detroit and St. Clair Rivers) G.T.L.W. M.P.U.C. No. 949.

Supplement No. 50 to The Michigan Central Railroad Company (The New York Central Railroad Company Lessee) M.P.U.C. No. 1920.

Supplements Nos. 108 and 110 to The Pennsylvania Railroad Company (Lines Pittsburgh, Pa., Oil City, Pa., Erie, Pa., and west) M.P.U.C. F-121.

Supplement No. 48 to Pere Marquette Railway Company M.P.U.C. No. 2780.

It is FURTHER ordered that the hearing date set for April 5, 1938, be postponed until April 22, 1938 at 10:00 o'clock A. M. at which time all interested parties are hereby requested to attend and present such evidence as they deem necessary in the premises.

MICHIGAN PUBLIC UTILITIES COMMISSION

Grand Rapids Association of Commerce, Protestant, vs. Ann Arbor Rail road Company (Normal B. Pitcairn and Frank C. Nicodemus, Receivers) et al., Respondents. D-3134. August 30, 1938.

Northern Hemlock and Hardwood Association, Maple Flooring Manufacturers Association, Robbins Flooring Company, Grand Rapids Association of Commerce, Greater Muskegon Chamber of Commerce, Protest ants, vs. Ann Arbor Railroad Company (Norman B. Pitcairn and Frank C. Nicodemus, Receivers, et al., Respondents. D-3139. August 30, 1938.

By schedules filed to become effective March 3, 1938 and later dates, carriers in the Lower Peninsula of Michigan propose to cancel all intra state commodity rates applicable on lumber and related articles (except on a few designated commodities) and in lieu thereof to apply Class 25 rates, 25% of the First Class Rate. It is also proposed to increase the carload minimum weights to 36,000 pounds except on tan bark and on box and crate material.

By schedules filed to become effective March 25, 1938 and later dates, carriers in the Upper Peninsula of Michigan propose to apply class 25 rates, 25% of first class, applicable from Menominee, Michigan, as mini mum rates on lumber and related articles from all points in the Upper Peninsula to all points in the Lower Peninsula of Michigan, subject to minimum weights as stated in the next preceding paragraph.

Upon protests by the Grand Rapids Association of Commerce, Northern Hemlock and Hardwood Association, Maple Flooring Manufacturers Association and Robbins Flooring Company, hereafter referred to as Protestants, the schedules were postponed for a period of 45 days and later voluntarily postponed by carriers, hereafter referred to as respondents, until September 6, 1938.

The Greater Muskegon Chamber of Commerce, by A. W. Dahlstrom, its Traffic Manager, was permitted to intervene at the time of hearing.

There were three separate protests which were received by the Com mission on different dates: the first filed on December 9, 1937 by the Grand Rapids Association of Commerce (D-3134) involving the rates on lumber and related articles between points in the Lower Peninsula; the second, on March 21, 1938 by Northern Hemlock and Hardwood Association, Maple Flooring Manufacturers Association and Robbins Flooring Company (D-3139); the third, on March 25, 1938 by the Grand Rapids Association of Commerce (ID-3139) involving the rates on lumber and related articles from points in the Upper Peninsula to points in the Lower Peninsula of Michigan. All three protests alleged that, if the schedules under attack become effective, the result would be unjust, unreasonable, unjustly discriminatory and unduly prejudicial against the protestants and the consumers in the State of Michigan, all in violation of Act 300 of Public Acts of 1909 and Acts amendatory thereof and supplementary thereto.

The three protests being so similar, involving the same commodities, the Commission consolidated both dockets and heard both cases upon one record.

The Interstate Commerce Commission in I & S Docket No. 4035 in “Lumber Between Points in Official Territory, 214-ICC-493” authorized Column 25 rates with a minimum of 36,000 pounds on lumber moving be tween points in Official Territory. As a result of the Interstate Com merce Commission's authorization, schedules were filed establishing Column 25 rates generally through the Lower Peninsula of Michigan on intrastate lumber traffic and a Column 25 rate applicable from Menominee, Michigan as minima from points in the Upper Peninsula to points in the Lower Peninsula of Michigan. The rates so authorized by the Inter state Commerce Commission were found to be a reasonable maximum for interstate commerce

This case was decided by Division 2, but a reargument was had before the entire Commission (219–ICC-427) resulting in the Commission's adopting the former report with certain modifications. In this proceeding, the Interstate Commerce Commission stated that their findings there in must not be construed as approving Column 25 or 25% of First Class on lumber in any territory other than Official Territory or from other territories into Official Territory or that lumber rates generally should bear any fixed relation to first class or any other rate.

It is quite evident that the Interstate Commerce Commission did not intend that the carriers would establish the Column 25 rates as specific rates destroying all of the present competitive relations. The Interstate Commerce Commission stated in 214-ICC-493:

“The carriers have made it clear that they desire to put lumber rates upon a mileage scale, notwithstanding the fact that a majority of shippers oppose such a basis. Many competitive relations will be destroyed if the rates here in issue are placed upon a mileage basis, but such changes are inherent in any general revision. In many cases we have found that groupings of origins and destinations were not unreasonable or unduly prejudicial, but where the carriers have indicated that they desire to put the rates on a strict distance basis, we have seldom prevented them from doing so. The rates which we will prescribe will be reasonable maxima only. No doubt many unduly prejudicial situations and fourth-section violations will be created as between rates from the border points and rates from other territories. These situations must be dealt with individually. Reasonable groupings may be retained.”

It is this Commission's view that the present commodity rate in Michigan should be maintained until such time as the rates from other territories adjoining Michigan are adjusted on an equal or uniform basis.

Protestants state that on March 3, 1938, following decision of the Inter state Commerce Commission in I & S Docket No. 40:35, 219-ICC-427, “Lumber Between Points in Official Territory”, respondents published a uniform basis of lumber rates within Official Territory of 25% of first class rate, minimum weight 36,000 pounds. In order that rates on lumber from points outside Official Territory into destinations in that territory would be in no instance lower than rates wholly within said territory, respondents also published a tariff of minimum rates on lumber from border points (Kipps No. 373, MPUC No. 256) taking effect March 3 on interstate traffic and scheduled to become effective March 25, 1938 on Michigan intrastate traffic. The effect in a large number of cases of this minimum rate tariff was to indirectly raise rates from points in the Upper Peninsula of Michigan to points in the Lower Peninsula of Michi gan. Lumber from the Upper Peninsula (also Wisconsin) to Lower Michigan can and does move by the gateways of Mackinaw City, Manis tique, Menominee, Michigan, Kewaunee, Manitowoc, Milwaukee, Wiscon sin and Chicago, Illinois. The minimum tariff, however, does not specify minimum charges via the gateway through which the lumber moves, or via which the rates are made, but merely sets up a one minimum figure i.e., the Column 25 rate from Menominee as governing all gateways. The tariff does not state that these are the rates from Menominee, but the testimony in this proceeding definitely establishes this as a fact. In its suspension petition, protestants aver that this arbitrary method of pre scribing minimum rates is illogical, unfair and discriminatory as for illustration: a destination in Lower Michigan adjacent to a gateway such as Mackinaw City, through which the traffic actually moves, is penalized by this tariff publication artifice of observing the Column 25 rate appli cable from Menominee rather than the Column 25 rates from Mackinaw City.

The protestants located in the Upper Peninsula of Michigan maintained the following position with reference to these proceedings:

  1. That irrespective of the findings of the Interstate Commerce Commission in Docket 4035 lumber should not be linked with class rates, particularly as affects important producing areas as exist within the State of Michigan.

  2. That the establishment of Column 25 rates from Menominee to destinations in Lower Michigan applied from all gateways is improper and should not be permitted.

  3. That the increase in minimum weights in the minimum rate tariff from 30,000 and 34,000 pounds to 36,000 pounds is un warranted, particularly on such articles as flooring and cedar products.

Comparison of Column 25 rates from Mackinaw City and from Menominee, effective March 27, 1938 are shown in the following table :

To

From Mackinaw City

From Menominee

To

From Mackinaw City

From Menominee

Adrain

24

25

Charlotte

22

23

Alpena

15

23

Cheboygan

9

22

Battle Creek

23

23

Chesterfield

23

25

Bay City

19

22

Detroit

23

25

Benton Harbor

18

19

Tawas City

18

23

Big Rapids

18

19

East Tawas

18

23

Cadillac

17

18

Frederic

14

20

Carsonville

22

23

Grand Rapids

21

21

Caseville

22

23

Harbor Beach

23

25

Cassopolis

23

23

Indian River

11

22

Ionia

21

22

Pinconning

18

22

Jackson

23

23

Port Huron

22

24

Kalamazoo

22

22

Prescott

19

23

Lansing

22

22

Reed City

18

18

Manistee

19

17

Richmond

23

25

Muskegon

21

20

South Haven

23

23

Omer

19

22

Standish

18

22

Owendale

19

22

Tecumseh

23

23

Pentwater

22

22

Tower

12

23

Petoskey

11

20

Traverse City

16

17

It will be observed that of the 40 points shown the Column 25 rates to 27 points are higher from Menominee than from Mackinaw City, 11 points are the same and but two points are lower from Menominee than from Mackinaw City. Where the Mackinaw City rate is lower the maxi mum difference is but two cents, while the higher rates from Menominee from 1 to 13 cents, or an average difference of 4 cents

The record indicates that the Column 25 rates from Menominee as a minimum for traffic destined to points outside Michigan would not be as burdensome as the rates within Michigan on relatively short hauls.

Protestants claim that some of their best market areas are located in the Northern half of the Lower Peninsula which is about the only market for hemlock lumber. The importance of Michigan as a market for Michi gan lumber is shown in exhibits filed by protestants which show that more than 65% of all lumber shipped from points in Michigan is destined to points in Michigan.

The Michigan Commission under its power to regulate intrastate rates and to prevent discrimination has heretofore held and still maintains that it may properly protect its own rate structure and the Michigan shipping public against discrimination and prejudice from interstate rates.

Comparing the rates from Newberry to Bay City with the Column 25 rate from Menominee and Mackinaw City, not considering the 5% in crease authorized by the Interstate Commerce Commission in ExParte 123, including the proposed minimum weight of 36,000 pounds:

Newberry to Bay City, 20 cents, minimum weight, 34,000 pounds Mackinaw City to Bay City, 19 cents, minimum weight, 36,000 pounds Menominee to Bay City, 22 cents, minimum weight, 36,000 pounds,

it develops that for a minimum carload respondents would receive from Newberry to Bay City, $68.00, from Mackinaw City to Bay City, $68.40, from Menominee to Bay City, $79.20. Using the rate from Menominee as a minimum, there would be an increase of $11.20 for a shipment moving through the Mackinaw City gateway. it develops that for a minimum carload respondents would receive from Newberry to Bay City, $68.00, from Mackinaw City to Bay City, $68.40, from Menominee to Bay City, $79.20. Using the rate from Menominee as a minimum, there would be an increase of $11.20 for a shipment moving through the Mackinaw City gateway.

Protestants concede that the rates from the Upper Peninsula to the Lower Peninsula should not be lower than the rates from the point of entry into the Lower Peninsula but contend that the Column 25 rate is too high for the transportation of lumber and that the total disregard of the Column 25 rate from the Gateway through which traffic moves and that the setting up of the Menominee minimum rate provision is un reasonable and discriminatory.

Under decisions of the Interstate Commerce Commission in Western Trunk Line Class Rates 164-ICC-1 and Lumber Between Points in Official Territory, 214-ICC-493, 217-ICC-427, establishment of Column 25 on lumber between points in Official Territory would have also required the establishment of a Column 25 rates from points in extended zone “C” in Wisconsin. Defendants recognizing that lumber mills in extended zone “C” territory are in competition with other mills in Wisconsin, Upper Peninsula of Michigan and Minnesota petitioned the Interstate Commerce Commission to modify its findings in Western Trunk Line Class Rates, Supra., to permit the continuance of the commodity group rates on lumber from points in extended zone “C” in Wisconsin to points in Official Territory, including the Lower Peninsula of Michigan. This petition was signed for account of both Eastern and Western Carriers, respondents in these proceedings, and was granted by the Interstate Commerce Commission. So that today these carriers are maintaining the old group commodity rates from points in the Upper Peninsula and from points in extended zone “C” territory in Wisconsin to points in Michigan and at the same time are asking this Commission for its approval of the higher Column 25 rates from zone “C” points in Michigan, in violation of the Michigan law which prohibits discrimination in rates and charges Under decisions of the Interstate Commerce Commission in Western Trunk Line Class Rates 164-ICC-1 and Lumber Between Points in Official Territory, 214-ICC-493, 217-ICC-427, establishment of Column 25 on lumber between points in Official Territory would have also required the establishment of a Column 25 rates from points in extended zone “C” in Wisconsin. Defendants recognizing that lumber mills in extended zone “C” territory are in competition with other mills in Wisconsin, Upper Peninsula of Michigan and Minnesota petitioned the Interstate Commerce Commission to modify its findings in Western Trunk Line Class Rates, Supra., to permit the continuance of the commodity group rates on lumber from points in extended zone “C” in Wisconsin to points in Official Territory, including the Lower Peninsula of Michigan. This petition was signed for account of both Eastern and Western Carriers, respondents in these proceedings, and was granted by the Interstate Commerce Commission. So that today these carriers are maintaining the old group commodity rates from points in the Upper Peninsula and from points in extended zone “C” territory in Wisconsin to points in Michigan and at the same time are asking this Commission for its approval of the higher Column 25 rates from zone “C” points in Michigan, in violation of the Michigan law which prohibits discrimination in rates and charges Under decisions of the Interstate Commerce Commission in Western Trunk Line Class Rates 164-ICC-1 and Lumber Between Points in Official Territory, 214-ICC-493, 217-ICC-427, establishment of Column 25 on lumber between points in Official Territory would have also required the establishment of a Column 25 rates from points in extended zone “C” in Wisconsin. Defendants recognizing that lumber mills in extended zone “C” territory are in competition with other mills in Wisconsin, Upper Peninsula of Michigan and Minnesota petitioned the Interstate Commerce Commission to modify its findings in Western Trunk Line Class Rates, Supra., to permit the continuance of the commodity group rates on lumber from points in extended zone “C” in Wisconsin to points in Official Territory, including the Lower Peninsula of Michigan. This petition was signed for account of both Eastern and Western Carriers, respondents in these proceedings, and was granted by the Interstate Commerce Commission. So that today these carriers are maintaining the old group commodity rates from points in the Upper Peninsula and from points in extended zone “C” territory in Wisconsin to points in Michigan and at the same time are asking this Commission for its approval of the higher Column 25 rates from zone “C” points in Michigan, in violation of the Michigan law which prohibits discrimination in rates and charges.

Aside from the quotation of certain excerpts from the report in the Interstate Case, respondents' evidence consists of two exhibits and testimony in connection there with, showing the 1937 movement of lumber originating on the Pennsylvania Railroad in the Lower Peninsula of Michigan. Exhibit 1 shows the movement to points in Michigan, and Exhibit 2, the interstate movement to points in Official Territory. These exhibits, analyzed are as follows and confirm the showing made in protestants' exhibits that the proposed rates, if permitted to become effective, would result in an enormous burden being placed on the manufacturers and users of Lower Peninsula lumber :

Defendants' Exhibits 1 and 2 Analyzed to Show the Effect of the Changes in Rates herein proposed.

NOTE: In this analysis the amount of the differences between the present and proposed rates are applied to an average loading of 54,300 pounds per car, which is stated by defendants' witness (14) to have been the average carloading of lumber, lath and shingles in the Eastern District for the year, 1936

EXHIBIT NO. 1

PROPOSED CHANGES


Rates

FREIGHT CHARGES

Number of Shipments

Reductions (cents)

Increases (cents)

Reductions ($)

Increases ($)

6





14

0.5


$38.01


58


0.5


157.47

47


1


255.21

58


1.5


462.41

545


2


5918.7

6


2.5


81.45

10


3


162.9

Totals

744



38.01

7038.13

Increase in excess of Reductions

7000.12



EXHIBIT NO. 2

PORPOSED CHANGES



RATES

FREIGHT CHARGES

Number of Shipments

Reductions (cents)

Increases (cents)

Reductions ($)

Increases ($)

10

0.5




31



94.17


11


0.5


29.87

37


1


200.91

4

1.5


32.58


4


2


43.44

8

2


84.04


21


2.5


285.08

1

2.5


13.58


26


3


424.54

4

3.5


76.02


4

4


86.88


4

5.5


119.46


15


5.5


447.98

Totals

180



509.73

1431.82

Increase in excess of Reductions

912.09


Exhibits Nos. 1 and 2, Increases in Excess of Reductions: 7,912.21


This Commission as well as the Interstate Commerce Commission have found in many cases that a safe way to measure the reasonableness of a rate is to make a comparison with other rates in effect on like commodities moving in the same territory

“It is seldom, if ever, that a rate can be found unreasonable without comparison with rates to other points. One of the best tests of reasonableness of a rate is by comparison with rates on like traffic in the same territory.” Sioux City Chamber of Commerce vs. B & O R. R. 120-ICC.7

“The most helpful evidence in determining reasonableness of rates are comparisons of rates, on like traffic moving under like circumstances and in same territory.” McLeod vs. T. & P., 120-ICC-550.

“We have long adhered to the principle that the best test of the reasonableness of a rate is a comparison of the assailed rate with other rates in effect on like traffic moving in the same general territory.” Panhandle Lumber Company et al vs. Fort Worth & Denver City Railway Company et al. 210-ICC-353.

This is the test used by protestants to show that the present lumber rates between points in the lower peninsula of Michigan are on a higher level than the rates from the Upper Peninsula to the Lower Peninsula. The proposed increase in the Lower Peninsula rates would still further narrow the spread between the two rate levels. Protestants have also shown that the present level of rates between points in the Lower Peninsula of Michigan is higher than the level of rates maintained between points in the Upper Peninsula of Michigan, and from points in Wisconsin and Minnesota to points in the Lower Peninsula; and also a great deal higher than the level of rates maintained from points in the Upper Peninsula of Michigan, Wisconsin, Minnesota to points in Wisconsin, Illinois and Western Trunk Line Territory, generally.

The Interstate Commerce Commission in many cases has stated that the rates that have been maintained for a long time are to be considered as reasonable and compensatory.

“The Commission must be largely influenced in many instances in passing upon the reasonableness of a given rate by the adjustment which has grown up in the particular locality under consideration.” In re Advances in Rates for the Transportation of Fresh Meats. 23. ICC-652.

“When rates have been in effect for a number of years, and there is no evidence that they were not compensatory, either by comparison with other rates or by any other facts, an attempt to increase such rates is not reasonable.” New Orleans Board of Trade vs. Louisville & N. R. Co. 17-ICC-231.

The present rates are not in issue, and the only question before this Commission is whether the proposed tariffs contain schedules of intrastate rates which are unreasonable or discriminatory within the means of Sections 11038 and 11033 of the Compiled Laws of Michigan, 1929.

Protestants submitted exhibits to show that the proposed rates would develop the following changes to points in the Lower Peninsula Protestants submitted exhibits to show that the proposed rates would develop the following changes to points in the Lower Peninsula :


From

Reductions

Increases

Antrim

24

168

Bay City

12

34

Petoskey

3

48

Pellston

2

48

Traverse City

2

51

Cadillac

9

42

Reed City

12

32

making a total number of changes from the principal producing points, reductions 64, increases 423 and the total amount of changes in cents, reductions 45.5, increases 569

Reference is made to Witness Elerick's Exhibit 12 showing low rates in effect from Upper Michigan and Wisconsin to Chicago, stating that the relationship therewith of rates from the Lower Peninsula to Chicago is obviously an interstate relationship over which only the Interstate Commerce Commission has jurisdiction. This Commission, of course, has no jurisdiction whatsoever over interstate rates, but has maintained in several instances that comparison of interstate rates with intrastate rates is pertinent to the issue. The Interstate Commerce Commission states in Spriggs vs. Baltimore & Ohio R. Co. 8-ICC-443: Reference is made to Witness Elerick's Exhibit 12 showing low rates in effect from Upper Michigan and Wisconsin to Chicago, stating that the relationship therewith of rates from the Lower Peninsula to Chicago is obviously an interstate relationship over which only the Interstate Commerce Commission has jurisdiction. This Commission, of course, has no jurisdiction whatsoever over interstate rates, but has maintained in several instances that comparison of interstate rates with intrastate rates is pertinent to the issue. The Interstate Commerce Commission states in Spriggs vs. Baltimore & Ohio R. Co. 8-ICC-443:

“The fact that lower rates have been previously recorded whether for longer or shorter time is pertinent and entitled to full consideration.”

Respondents make a plea for uniformity in rates relying upon the Interstate Commerce Commission's decision in I & S 4035. This Com mission favors a uniform rate structure but not one that results in discrimination against or causes serious injury to Michigan shippers.

Respondents further argue that considering the size of the record upon which the Commission made its findings it would seem impossible for the Michigan Public Utilities Commission to reach a different conclusion in the instant case. So far as the respondents are concerned they rely heavily on the conclusions reached in the Interstate Commerce Com mission decision and see no reason to duplicate such a record in respect of the Michigan situation inasmuch as it was fully considered by the Interstate Commerce Commission. It is urged that the only basis for finding that the proposed rates are not justified is to find that the carriers have departed from the basis authorized by the Interstate Commerce Commission in Docket 4035. It is stated that no departure from the authority granted by the Interstate Commerce Commission has occurred. It is further argued by respondents that the record in the instant proceedings afford no basis for finding that undue prejudice or advantage will result from the proposed rates.

This Commission does not agree with respondents. The evidence of record submitted to the Interstate Commerce Commission in the proceeding before that Commission is not in evidence in the instant case and therefore not a part of this proceeding nor can it be considered.

Protestants do not seem to have offered much objection to the present minimum weight of 34,000 pounds except on certain articles such as cedar poles, posts and ties and from evidence submitted it appears that a minimum weight of 30,000 pounds is sufficient and reasonable for such articles. cedar poles, posts and ties and from evidence submitted it appears that a minimum weight of 30,000 pounds is sufficient and reasonable for such articles.

With respect to the list of articles taking lumber rates, the only real objection to the proposed new list was the omitting of door and window frames. This Commission can see no reason why door and window frames should not be included in the so-called lumber list.

From the evidence submitted in this proceeding this Commission finds that a large part of the lumber and related articles produced in Michigan is consumed locally in this State and that it is the duty of this Com mission to protect the shipping public from discrimination resulting from preferential rates.

The Interstate Commerce Commission in its conclusions M I & S 4035, 214-ICC-493, Lumber Between Points in Official Territory, admits that the rates authorized would no doubt produce many unduly prejudicial situations and long and short haul violations would be created as be tween rates from border points and rates from other territories offering as a remedy that these situations be dealt with individually.

There is no doubt that the proposed increase in rates if permitted to become effective will aggravate existing prejudicial conditions. This Commission believes that should a general revision of all lumber rates be made that such revision include rates from Wisconsin and Minne sota to points in Michigan in order to remove prejudice and preference. We find that respondents have not justified the postponed schedules which will be ordered cancelled, thereby permitting the present rates at the present minimum weights to continue in effect as a reasonable maximum for the transportation of lumber and related articles between points in the State of Michigan.

Now, THEREFORE, IT IS HEREBY ORDERED :

  1. That the schedules now under suspension by order of this Commission in these proceedings are hereby required to be canceled;

  2. That if there are any other schedules now effective naming in creased rates on lumber and related articles applicable on Michigan intra state traffic issued pursuant to the Interstate Commerce Commission's order in I & S 4035 not mentioned in this Commission's suspension orders in these proceedings, such schedules are hereby required to be canceled;;

  3. That respondent carriers issue and file supplements to their individual or agency tariffs on or before September 6, 1938, upon not less than one day's notice to this Commission and the public, in the manner required by law canceling the schedules under suspension thereby permitting the continuation of the present rates and minimum weights applicable thereto;

  4. That the supplements issued pursuant to this order shall show on the title page thereof: “Issued upon one day's notice under authority of the Michigan Public Utilities Commission in Dockets D-3134 and D-3139, dated . . . . . . . . . . . . . . , 1938;

  5. That this Commission hereby specifically reserves unto itself jurisdiction in this matter and the right to enter any other or further order herein which in its judgment should be hereafter made.

    MICHIGAN PUBLIC UTILITIES COMMISSION

The Owosso Argus-Press Sept. 7, 1938

Engineer Jacob Walters, 60, of Durand, was killed and Fireman Dennis Bufford of Owosso, had an almost miraculous escape when the locomotive and baggage car of Ann Arbor passenger train No. 51 was derailed by a washout near Farwell, Friday afternoon. Engineer Walters was killed when the engine tipped over. His widow and a daughter, Mrs. Seth Beers of Durand, survive him.

In the matter of the application of The Ann Arbor Railroad Company for additional protection at the Barnard Street crossing of its tracks in the City of Howell, Michigan. File No. 7077-665. December 7, 1938.

Application having been filed by V. Parvin, General Superintendent of The Ann Arbor Railroad Company, under date of October 11th, 1938, for authority to install flashing light signals at the Barnard Street cross ing of its tracks in the City of Howell, Michigan, in lieu of the crossing watchman now being maintained at said crossing.

In said application the Commission is advised in part as follows:

“We wish to install a flashing light signal, replacing the crossing watchman who has been protecting this crossing for several years, which protection is covered by an order of the Commission.

I have handled the matter with the city officials of Howell and have a letter signed by Mr. Hiram R. Smith, City Attorney, to the effect that the arrangement is satisfactory to the city and that we may proceed with the installation of the signal system.

*** the Ann Arbor Railroad will install the signal at its own expense.”

The matter was taken up by correspondence with Hiram R. Smith, City Attorney, Howell, Michigan, under date of November 15th, 1938, and the Commission is in receipt of a reply under date of November 28th, 1938, advising in part as follows:

“I have conferred with the Mayor and the City Clerk and they state that inasmuch as the installation is to be done and maintained at the sole expense of the Ann Arbor Railroad Company, there is no objection on the part of the City to such installation. You are, therefore, advised that the arrangement suggested in your letter is satisfactory to the City of Howell”

The Commission, after due consideration of said application, together with said letter, has determined that inasmuch as the installation of flashing light signals at said Barnard Street crossing is agreeable to all parties concerned, that an order shall be issued requiring such installation,

THEREFORE, IT IS HEREBY ORDERED by the Michigan Public Utilities Commission that The Ann Arbor Railroad Company, within ninety (90) days from date hereof, shall cause to be installed and thereafter effectively maintained and operated track circuit flashing light signals of the side-of-the-street type at the Barnard Street crossing of its tracks in the City of Howell, Michigan, to warn highway traffic in advance of the approach of engines or trains, Provided::

  1. Said flashing light signal system shall be installed in accordance with the requirements of Act 336, Public Acts of 1931, and specifications of the Michigan Public Utilities Commission for flashing light signals, a copy of which is attached hereto and made a part hereof;

  2. The cost of installing and thereafter maintaining said flashing light signal system shall be borne solely by The Ann Arbor Railroad Company, in accordance with the understanding of the parties in interest ;

  3. The cost of installing and thereafter maintaining said flashing light signal system shall be borne solely by The Ann Arbor Railroad Company, in accordance with the understanding of the parties in interest ;

  4. In case of any switch movements over said crossing, The Ann Arbor Railroad Company shall require one of the train crew to protect same, warning highway traffic in advance of such movements.

    IT IS FURTHER ORDERED that after said flashing light signal system has been placed in service the present protection now afforded at said crossing, namely, crossing watchman, shall be eliminated.

    ITIS FURTHER ORDERED that this Commission reserves unto itself jurisdiction of this matter, and the right to issue such further order or orders in the premises which, in its judgment, may be deemed necessary.

    MICHIGAN PUBLIC UTILITIES COMMISSION.