Pierce Butler

“ On the whole, the financial condition of the western trunk lines is not as good as that of the southwestern lines.
'The divisions here in issue are dealt with of record on a group basis. They are, in other words, the divisions 'in the aggregate' north and south of the gateways named, and no question is raised with respect to the divisions of individual carriers. In our opinion the divisions in issue are not just, reasonable, and equitable. Many of them are unjust to complainants, and some of them are unjust to defendants. ”

“ When considering divisions of numerous joint rates applicable to traffic passing through gateways between different territories, the Commission may make the required determinations and establish the bases for divisions between groups of carriers in the respective territories upon evidence which it reasonably may deem typical and to have sufficient probative weight to justify the necessary findings and the order in respect of each rate. ”

“ Its report defines western trunk line territory to include Iowa, Minnesota, Wisconsin, the Upper Peninsula of Michigan, Illinois, North Dakota, South Dakota, and that part of Missouri on and north of the main line of the Missouri Pacific between Kansas City and St. Louis; it defines the southwestern territory to include Texas, Arkansas, Oklahoma, that part of Louisiana west of the Mississippi river, and so much of Missouri as is south of the above-mentioned line of the Missouri Pacific. ”

“ They show by the record that in each group there are carriers that earn little or no return, others that earn substantial amounts, and some that make relatively high returns. They strongly emphasize that the prescribed divisions will operate in some instances to transfer substantial sums from very weak carriers in southwestern territory to prosperous ones in western territory, and insist that mere comparison of returns demonstrates that divisions on a group basis will be unjust and arbitrary. ”

“ Appellants assert that the order is based solely upon a comparison of average conditions of widely dissimilar carriers comprising each group, and that its enforcement will bring about divisions so unjust and arbitrary as to be beyond the Commission's power. ”

“ Southwestern respondents: Gulf Coast Lines. 6.85 8.52 9.68 9.79 The Beaumont, Sour Lake & West. Ry. Co. New Orleans, Tex. & Mexico Ry. Co. St. Louis, Brownsville & Mex. Ry. Co. Ft. Worth & Denver City Ry. Co. ”