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BETPORE THE 
 
 i|[nterslal^ ^ommerc^ j(|^0mtnissian* 
 
 Milk PKODtrcBKs' Pkotectivb Association, Complainant, 
 
 The Delaware, Lackawanna & Westekn Railkoad Company; New 
 YoBK, Ontario & Western Railway Company; New York, Lake 
 Erie & Western Railroad Company, and J. G-. McCullough and E. 
 B. Thomas, the Receivers thereof; New York, Susquehanna & West- 
 ern Railroad Company; Pennsylvania, Poughkeepsie & Boston 
 Railroad Company, and Henry H. Kingston, the Receiver thereof; 
 Lehigh Valley Railroad Company; New York, New Haven & 
 Hartford Railroad Company; Lehigh & Hudson River Railway 
 Company; The President, Managers and Company of The Delaware 
 & Hudson Canal Company; Albany & Susquehanna Railroad Com- 
 pany; Philadelphia, Reading & Hew England Railroad Company, 
 and J. K. O. Sherwood, Receiver thereof; New York Central & 
 Hudson Ritbr Railroad Company; West Shore Railroad Com- 
 pany; Wallkill Valley Railroad Company; Ulster & Delaware 
 Railroad Company; Elmira, Cortland & Northern Railroad 
 Company; Lehigh & New England Railroad Company; and The 
 Erie Railroad Company, Defendants. 
 
 Deeded March 13, 1897. 
 
 a. The complaining Milk Producers' Association, whether representing its own 
 members, or specially authorized to represent other shippers, or assuming 
 in addition to represent shippers engaged in the same industry on some of 
 the defendant lines, was entitled to bring and maintain this proceeding, 
 affecting rates on milk supplied for a common market, against all the de- 
 fendants engaged in carrying for that market. A defendant carrier is not 
 entitled to have a complaint dismissed as to it " because of the absence of 
 direct damage to the complainant," and it is the duty of the Commission, 
 under express direction in the Act, to "execute and enforce " the provisions 
 of the statute. 
 
2 INTEESTATE COMMERCE COMMISSION. 
 
 3. The defendant, the New York, Susquehanna & Western Railroad Company, 
 engaged in the transportation of milk and cream from points in the State 
 of New York through the State of New Jersey to the City of New York, 
 is subject to regulation under the Act to Regulate Commerce in respect of 
 such transportation. 
 
 3. Charging the same aggregate rates on like traffic for longer and shorter 
 distances over the same line, in the same direction, does not contravene the 
 provisions of section 4 of the Act to Regulate Commerce. 
 
 4. The free transportation of shippers or dealers between State or interstate 
 points on account of interstate freight traffic furnished to the carrier is un- 
 lawful. 
 
 5. Whether an agreement entered into by a carrier mainly for the purpose of 
 developing its milk traffic, and under which compensation is afforded to 
 the other contracting party equal to a considerable share of the gross re- 
 ceipts from such traffic, involves extravagant expenditure of revenue and 
 is disadvantageous to the carrier, is matter for it to determine; but extra- 
 ordinary or unnecessary cost of operation or management cannot be per- 
 mitted to excuse unreasonable or unjust rates, discriminations, preferences, 
 or prejudices. 
 
 6. Charging the same rate per quart on milk in 40-quart cans and in bottles, 
 usually of one quart capacity, and packed in cases, found to constitute dis- 
 crimination in favor of the bottle method of shipment, but for reasons 
 stated, — Held, that the proper relation of rates as between can and bottle 
 milk from all points of shipment need not now be determined. 
 
 7. A uniform or blanket rate on milk and also on cream from all stations on 
 the defendant lines to Weehawken, Hoboken, and Jersey City, N..J., or 
 through Jersey City to New York, N. Y., namely, 33 cents on milk and 50 
 cents on cream per can of 40 quarts, regardless of distance or difference in 
 amount of service rendered, — Held, to be unreasonable, unjust, and unduly 
 prejudicial and disadvantageous to producers and shippers nearer the points 
 of delivery, and in violation of sections 1 and 3 of the Act to Regulate 
 Commerce. 
 
 8. Upon all the facts and circumstances, including the peculiarities of defend- 
 ants' milk and cream transportation service, Held : — 
 
 That instead of the present method of charging uniform rates per 40- 
 quart can of 33 cents on milk and 50 cents on cream from all interstate 
 shipping stations on the defendant lines west of the Hudson River to the 
 respective points of delivery in Weehawken, Hoboken and Jersey City, 
 N. J., there should be at least four divisions or grougs of stations, the first 
 group extending 40 miles from the terminal in New Jersey; the second, 
 covering a distance of 60 miles and ending about 100 miles from such 
 terminal ; the third, embracing stations within the next 90 miles and 
 extending about 190 miles from the terminal ; and the fourth, comprising 
 stations beyond 190 miles from the point of delivery. 
 
 That the rates charged on milk in 40-quart cans should not exceed 23 
 cents from the first or 40-mile group of stations, 36 cents from the second 
 
MILK PEODUOEES' PROTECTIVE ASSO. V. DELAWARE, L. & W. R. CO. 3 
 
 or 60-inUe group, nor 29 cents from the third or 90-mile group, and that the 
 present rate of 32 cents ; from stations more distant than 190 miles is not 
 unreasonable ; that a rate on cream in cans which is 18 cents higher than 
 the rate on milk in 40-quart cans, the present difference, is not unreason- 
 able or unjust ; that such group distances and rates should apply on the 
 branches as well as on the main lines, and that the resulting relations of 
 rates should be maintained ; that any reduction that may be made in the 
 present rate per quart on milk or cream in bottles should be followed by a 
 corresponding change in the rate for each group on milk or cream in 40- 
 quart cans. 
 
 That the distance on the Ulster & Delaware road covered by the third 
 group should be limited to 30 miles, and stations on that road more 
 than 130 miles from Weehawken via the West Shore road should con- 
 ' stitute its fourth group ; that by short-line distances all points on the 
 
 Wallkill Valley and Lehigh & Hudson River roads are within the second 
 group, and rates from such stations should not exceed those applicable for 
 the second group; that the Erie Eailroad Company should charge third 
 group rates from points on its Carbondale branch which can be reached 
 over distances less than 190 miles ma the Scranton branch of the Ontario 
 & Western, and such relief from the operation of the 4th section is granted 
 to the Erie Company as may be necessary to enable it to lawfully make 
 such charges effective; that the defendant, the New York, Susquehanna 
 & Western Railroad Company, is entitled on shipments of milk and cream 
 from New York points which it carries through New Jersey and delivers 
 in New York City to charge such an addition to its rate to Jersey City, 
 N. J., as is reasonably warranted by the greater cost of delivery in New 
 York City. 
 
 • 
 Eoarts, Ohoate cfe Beamcm, for complainant. 
 
 John J. Beattie, for Lehigh & Hudson R. Ey. Co. 
 
 Rogers, Locke dh Milhit/rn, for D. L. & W. R. E. Co. 
 
 John B. Kerr, for N. Y. O. & W. Ey. Co. 
 
 F. I. Gowen and F. H. Jcmmer, for L. Y. E. E. Co. 
 
 Ashlel Green, for N. Y. C. & H. E. E. E. Co.; W. S. E. E. 
 Co. and the Wallkill Y. E. E. Co. 
 
 Hewry F. Taft, for JnJ. Y. N. H. & H. E. E. Co. 
 
 Stetson, Tracy, Jennings c& Russell, for N. Y. L. E. & W. E. 
 E. Co. and Eeeeivers, and Erie E. E. Co. 
 
 Amos Van Etten, for Ulster & Delaware E. E. Co. 
 
 Leopold Wallach and Alfred A. Cook, for JS". Y. S. & W. E. 
 E. Co. 
 
 David Willcox and Lewis E. Carr, for the D. & H. C. Co., 
 and Alb. & Sus. E. E. Co; 
 
 F. R. Gilbert and George W. Ra/y, for Producers of Milk at 
 Longer-Distance Points. 
 
INTERSTATE COMMERCE COMMISSION. 
 
 report and opinion of the commission. 
 
 By The Commission : 
 
 The complaint in this case is directed against defendants' prac- 
 tice of charging for the transportation of either milk, buttermilk 
 or cream to their terminals at "Weehawken, Jersey City or Hobo- 
 ken, N. J., or New York, IS". Y., a group or blanket rate from all 
 shipping stations on their respective lines, regardless of distance. 
 Upon this basis of complaint the petitioner alleges as follows : 
 
 1. That the petitioner is a voluntary association of farmers and 
 milk producers and other persons interested in milk production, 
 having its principal office and place of business at Chester, N. Y.; 
 that it makes this complaint, not only on behalf and in the interest 
 of itself and its members, but also on behalf of all other farmers, 
 producers and shippers of cream, milk and buttermilk from all ship- 
 ping points for such traffic on defendants' roads to the cities of Ho- 
 boken, "Weehawken, Jersey City and New York ; and that its mem- 
 bers and those whom it represents ship and transport over the 
 defendant lines every day of each year large quantities of milk, 
 cream and buttermilk, aggregating many carloads daily, from 
 various shipping points on such lines in the States of New York, 
 Pennsylvania, Massachusetts and Connecticut to said places of 
 destination. 
 
 2. That the defendants, engaged as common carriers by rail- 
 road in the transportation of property by continuous carriage or 
 shipment between points in New York, Pennsylvania, Massachu- 
 setts and Connecticut, and points in New Jersey and New York 
 are subject to the provisions of the Act to Kegulate Commerce 
 and Acts amendatory thereof or supplementary thereto. 
 
 3. That the rates charged by the defendants are 50 cents per 
 can for cream and 32 cents per can for milk and buttermilk from 
 all shipping points in the States of New York and Pennsylvania 
 to Jersey City, Hoboken, and "Weehawken, in the State of New 
 Jersey, and 45 cents and 60 cents per can for cream, and 25 cents 
 and 32 cents per can for milk and buttermilk, as the case may be, 
 depending upon the route, from all shipping points in the States 
 of Massachusetts and Connecticut to the city of New York in the 
 State of New York, and to Weehawken, in the State of New 
 Jersey, including the return carriage of said cans when empty to 
 
MILK PEODUOEEa PROTECTIVE ASSO. V. DELAWARE, L. & W. E. CO. 5 
 
 said shipping points ; that said cans when filled weigh 100 pounds, 
 or thereabouts, and when empty about 20 pounds ; that the same 
 rates are maintained and charged on said commodities for all dis- 
 tances, however short or long, from said Jersey City, Hoboken, 
 and Weehawken, and said city of New York, respectively, such 
 distances in some eases exceeding 300 miles ; that the rates 
 charged by said defendants are a very large percentage of the 
 entire value of the cream, milk, and buttermilk carried, are purely 
 arbitrary, are not at all graduated upon the distance of the termi- 
 nal from the shipping points, nor based to any extent upon the 
 value of the product carried, or upon the cost of carriage to the 
 defendants, or upon any special service rendered ; that other 
 similar classes of freight and farm produce, of equal value, such, 
 for example, as butter and cheese, composed of the same elements 
 as milk and cream, together with fresh fruits and vegetables of 
 a perishable nature, designed for the supply of a like special 
 market, and requiring a like special train service, are transported 
 by said defendants upon the same trains carrying said milk and 
 cream, as well as upon other trains, from the shipping points 
 aforesaid to said Jersey City, Hoboken and Weehawken, and said 
 city of New York, for a very much less rate, although the char- 
 acter of the transportation, risk and service are in all respects the 
 same as to such other articles ; that for these and many other rea- 
 sons said rates and charges on cream, milk, and buttermilk, made 
 and exacted by said defendants, are not reasonable and just within 
 the meaning of said Act to Regulate Commerce, but are now, 
 and for a great many years have been, unjust and unreasonable, 
 both in themselves and relatively, as compared with the rates 
 charged by the defendants for, and with the defendants' classifi- 
 cation of, other similar merchandise and like kinds of traffic be- 
 tween the same points ; and that all of said rates are in violation 
 of the provisions of said Act to Regulate Commerce as amended. 
 4. That for the same reasons such rates and charges constitute 
 unjust discriminations in the rates which are demanded, collected 
 and received by said defendants respectively from the milk pro- 
 ducers represented by complainant, in view of the fact that said 
 defendants respectively demand, collect and receive from other 
 persons, for a like and contemporaneous service in the transpor- 
 tation of like kinds of traffic as aforesaid, under not only sub- 
 
C, INTEESTATB COMMEKCE COMMISSION. 
 
 stantially similar but identical circumstances and conditions, a 
 much less rate of compensation, and that the rates and charges of 
 said defendants as aforesaid are, therefore, in violation of said Act 
 to Regulate Commerce as amended. 
 
 That the defendant, the Lehigh Valley Eailroad Company, 
 especially, has thus violated said Act to Eegulate Commerce, and 
 has, by special agreement or otherwise, made a special rate for, 
 and furnished special facilities to, the association known as the 
 Farmers' Dairy Despatch, by which said Despatch is enabled to 
 control the transportation of substantially all of the cream, milk 
 and buttermilk transported over that railroad, for the special and 
 sole advantage and benefit of said defendant and said Farmers' 
 Dairy Despatch. That the defendant, the Delaware, Lackawanna 
 & Western Eailroad Company, has also, in like manner, es- 
 pecially violated said Act to Eegulate Commerce by its special 
 contract or arrangement with an association known as the Pro- 
 duce Despatch. 
 
 5. That the rates charged by the defendants for so transport- 
 ing over their various lines or routes the cream, milk and butter- 
 milk of said producers and shippers, are no less for shorter than 
 for longer distances, are not graduated on account of distance or 
 mileage, and constitute an undue and unreasonable preference 
 and advantage extended by said defendants to particular persons 
 and localities, and subject said milk producers in the States of 
 New York and Connecticut, who are nearer the terminals at Jer- 
 sey City, Hoboken and Weehawken and at the City of New 
 York, as to their particular description of traffic, to undue, im just 
 and unreasonable prejudice and disadvantage, in favor of other 
 persons in other localities, farther removed from the said termi- 
 nals, and in favor of other persons whose traffic is a like kind of 
 traffic, carried under identical circumstances and conditions, and 
 that the rates and charges of said defendants as aforesaid are, in 
 this respect, also in violation of the terms of said Act to Eegulate 
 Commerce, as amended. 
 
 6. That said rates do, in almost every instance constitute a 
 further violation of said Act to Eegulate Commerce, as amended, 
 in that such rates and charges result in greater compensation for 
 the transportation of like kinds of property, under substantially 
 similar circumstances and conditions, for a shorter than for a 
 
MILK PRODUOEES' PEOTEOTIVE ASSO. V. DELAWARE, L. & W. K. CO. 7 
 
 longer distance over the same line or lines of connected roads in 
 the same direction, the shorter distance being included within the 
 longer distance. 
 
 7. That petitioner refers to and makes a part of its petition 
 the classifications and various schedules, rates and charges adopted 
 and used by the defendants and on file in the office of this Com- 
 mission for the transportation of cream, milk, buttermilk, butter, 
 cheese, fresh fruits, fresh vegetables, dressed meats, horned cat- 
 tle, wheat, corn, oats, flour, and other similar products. 
 
 The petitioner prays for an order commanding the defendants, 
 and each of them, to wholly cease and desist from the aforesaid 
 violations of the provisions of said Act to Kegulate Commerce, 
 as amended, and for such other and further orders as the Com- 
 mission may deem necessary in the premises. 
 
 The Lehigh & New England Kailroad Company having suc- 
 ceeded to the control of the railroad of the defendant, the Penn- 
 sylvania, Poughkeepsie & Boston Eailroad Company, was duly 
 made a party defendant to the proceeding by order entered on 
 June 21, 1895. 
 
 Answers were filed by all the defendants except the Lehigh & 
 New England Kailroad Company and the Philadelphia, Keading 
 <fe New England Railroad Company and its receiver. All of 
 the defendants answering deny the violations of law alleged in 
 the complaint, and, while admitting that the rates are substan- 
 tially as set forth in the petition, claim that the rates are justified 
 b}'^ the special nature of the traffic and character of the service 
 rendered. 
 
 The answer of the New York, Lake Erie & Western Railroad 
 Company and its Receivers admits that they are common carriers 
 as alleged in the complaint ; avers on information and belief that 
 petitioner is an association of farmers and milk producers and 
 other persons interested in milk production located, so'far as their 
 lines are concerned, within a distance of 90 miles of New York 
 City ; admits that the members of the petitioning association, or 
 some of them, ship and transport over their roads considerable 
 quantities of cream, milk and buttermilk from points on said 
 roads within 90 miles of New York ; denies that the petitioner 
 represents all shippers of milk, cream and buttermilk over said 
 lines, and avers that petitioner is acting in hostility to and not in 
 
8 INTERSTATE COMMEECE OOMMISSIOX. 
 
 behalf of the greater number of such shippers, and that the main 
 purpose and object of the petition is to create a monopoly of the 
 milk business in favor of a limited class of shippers by securing 
 lower rates to them than are granted to more distant shippers, the 
 practical effect of which will be to drive the latter out of busi- 
 ness and thus enable the petitioner and those it represents to se- 
 cure higher prices from consumers ; that ever since the establish- 
 ment of the business of transporting milk from remote points to 
 New York and Brooklyn (upwards of forty-five years ago), it has 
 been the custom of all the common carriers engaged in that business 
 to charge a uniform fixed rate per quart or gallon for the milk 
 so transported, irrespective altogether of the length of the haul, 
 and that the same custom now prevails ; that such custom owes 
 its origin and long continuance to the fact, among others, that 
 milk is sold to all consumers in the cities aforesaid at a uniform 
 price for the quantity sold ; and it was, therefore, deemed better 
 and more satisfactory for all parties interested to have one uni- 
 form charge for transporting milk, irrespective of distance, instead 
 of pro-rating for the same according to the length of haul ; that 
 this practice has given general and almost universal satisfaction^ 
 and that there is not now any legal or just ground for complaint 
 against the same ; that it is of the greatest importance to the citi- 
 zens of E^ew York and Brooklyn, as well as to other consumers 
 of milk, to have the area for the production thereof enlarged as 
 much as possible, instead of having the same narrowed and cir- 
 cumscribed, which would be the effect of granting the prayer of 
 the petitioner, as it would result in a monopoly in the milk busi- 
 ness by preventing the establishment of dairy farms and cream- 
 eries at a greater distance than 50 miles from E"ew York City, 
 which, as these defendants believe, is the sole purpose of the pe- 
 tition ; that the business of producing milk is a peculiar one, con- 
 ' fined to few localities in comparison with the raising of other 
 farm products, and therefore requires all lawful and reasonable 
 encouragement for the establishment and successful working of 
 dairy farms and creameries ; that, as these defendants are informed 
 and believe, a large number of persons, relying upon the above- 
 mentioned custom of making the same charge for the transporta- 
 tion of milk, irrespective of the length of the haul, have estab-. 
 lished dairy farms and creameries along the lines of their roads at 
 
MILK PEODITCEES' PROTECTIVE ASSO. V. DELAWAEE, 1. & W. E. 00. 9 
 
 various points beyond any point at which the persons represented 
 by the petitioner are located ; and that any change in the rates 
 heretofore charged for the transportation of milk would cause 
 great loss and damage to the parties located at such more distant 
 points. 
 
 The foregoing answer illustrates the general line of defense set 
 up in this case. 
 
 As to the alleged special rates and facilities granted to the Pro- 
 duce Despatch by the Delaware, Lackawanna & Western, and to 
 the Farmers' Despatch by the Lehigh Yalley, each of these defend- 
 ants, upon information and belief, denies that it has violated the 
 Act to Regulate Commerje by any special contract or arrange- 
 ment with any such association or Despatch. Each of these de- 
 fendants also specifically denies that by any such arrangement it 
 has agreed to carry or does carry for such Despatch all milk, 
 cream and buttermilk transported for its market for a less com- 
 pensation than it charges, collects, demands or receives from any 
 other person or persons for doing for them alike or similar ser- 
 vice under substantially the same circumstances and conditions, 
 or that any arrangement has been entered into by it for the pur- 
 pose of giving to such Despatch the control of the transportation 
 of all such products over its railroad, for the special and sole ad- 
 vantage and benefit of said defendant and of said Despatch or 
 otherwise. 
 
 The Lehigh Valley Railroad Company, while admitting that its 
 rates are as charged in the complaint from points in New York 
 and Pennsylvania to Jersey City, !N. J., says they are lower to 
 that point from shipping stations in New Jersey, and therefore 
 denies that its rates on milk, cream and buttermilk are not at all 
 graduated or fixed upon the distance of the terminal from the 
 points of shipment. 
 
 The amended answer of the l!^ew York, New Haven & Hart- 
 ford Railroad Company, after denying the alleged violations of 
 law, avers that its rates are as set forth in its tariffs 52-D and No. 
 3391, both effective April 1, 1893. This company further states 
 in its answer that it makes no distinction in its rates for the trans- 
 portation of milk, cream and buttermilk, the rates named in its 
 tariffs applying to all three of these commodities alike ; and that 
 such rates, though not graduated according to distance, are fixed 
 
10 INTERSTATE COMMERCE COMMISSION. 
 
 at the minimum at which the service required for such transporta- 
 tion can be furnished for any distance ; that for such service it 
 furnishes at great cost special trains and other facilities of a dif- 
 ferent character than are required for the transportation of other 
 merchandise. 
 
 Some of the defendants aver in their answers that they are not 
 subject to the Act to Regulate Commerce in respect to the trans- 
 portation involved in this case, and this averment is based upon 
 various grounds: The Elmira, Cortland & Northern Kailroad 
 Company, because, operating a road wholly within the State of 
 Kew York, it delivers milk to the Delaware, Lackawanna & 
 Western road, and for its service charges its local rates to the 
 junction point ; the Delaware & Hudson Canal Company (cover- 
 ing the Albany & Susquehanna road), because, while it has joint 
 rates on milk, it does not itself transport the traffic outside of 
 the State of 'New York. The New York, Susquehanna & 
 Western raises the question of jurisdiction as to most of 
 its milk traffic, and says that while its road runs through the 
 States of New York, Pennsylvania and New Jersey, the greater 
 portion of all the cream, milk and buttermilk received by it in 
 the State of New York for delivery from producers and shippers 
 is daily transported by it and delivered in the City of New York, 
 in said State, on through bills of lading ; that all shipments of 
 milk, cream and buttermilk received by it in the State of New 
 Jersey for transportation during the period complained of in said 
 petition were daily received and delivered by it at points in the 
 State of New Jersey, and that it ships no milk, cream or butter- 
 milk from the State of Pennsylvania to the State of New Jersey 
 or to the State of New York. 
 
 On stipulation signed by counsel for petitioner and the defend- 
 ants, the New York, Lake Erie & Western Railroad Company 
 and its Receivers, and the Erie Railroad Company, filed July 11, 
 1896, the Erie Railroad Company, then and now operating the 
 railroad formerly known as the New York, Lake Erie & 
 Western Railroad, was made a party defendant herein with the 
 same effect as if it had been an original defendant and duly 
 served as such with all necessary notices in the proceedings 
 theretofore had in this case. 
 
 Hearings were had in New York City, November 18 to 23, and 
 
MILK PEODUCEES' PEOTEOTIVE ASSO. V. DELAWAEE, L. & W. E. CO. 11 
 
 December 17 to 19, 1895. The case was argued orally by counsel 
 on January 30, 1896, and briefs were filed during the period be- 
 tween February 10 and April 3, 1896. At the second hearing, 
 on motion of counsel appearing, milk producers at or near stations 
 on the Erie Railroad west of Orange County, 'N. Y., and the more 
 distant stations on the New York, Ontario & Western and Dela- 
 ware, Lackawanna & Western roads, were allowed to intervene 
 in opposition to the petition. 
 
 In the case of If. W. Howell and other Orange County milk 
 producers against the New York, Lake Erie & Western, the New 
 York, Ontario & Western, the New York, Susquehanna & West- 
 ern, and the Lehigh & Hudson Kiver roads, decided by the Com- 
 mission in 1888 [2 I. C. C. Rep. 272, 2 Inters. Com. Rep. 162], 
 a uniform rate on milk as then charged by those companies from 
 points reached by their regular milk trains was, upon the evidence 
 there presented, held to be lawful. In that proceeding the 
 Commission failed to find any resulting injury to the complaining 
 producers, and in connection with a commendation of the uni- 
 form milk rate as then applied by these four carriers, it was 
 said : " Until some actual injury to them (Orange County 
 farmers) arises, the -Commission does not feel justified in holding 
 that the grouping of the milk rate upon the route carried 
 daily by a separate milk train, operated as a unit, works undue or 
 unreasonable prejudice to the complainants." It appeared in that 
 case that milk was carried considerable distances over the Erie 
 and Ontario & Western from points beyond those reached by 
 their regular daily milk trains, and that no additional charge was 
 made therefor. As to this the Commission said : " A charge for 
 such service somewhat higher than the charge made upon the 
 route of the daily regular milk train proper would seem to be 
 just, and perhaps to be necessary, in order to fairly equalize the 
 proportionate privileges afforded, in view of the material increase 
 of cost required to send cars out to points beyond the terminus of 
 the daily trip, and to bring them back loaded, at an hour con- 
 venient for making up the train. Nevertheless it does not appear 
 but that the present rates to those more distant points are already 
 sufficiently high. No increase in those rates can be recommended 
 or would be proper, in view of the facts above stated, upon the 
 point of the reasonableness of the present tariff. It is presumed 
 
12 INTERSTATE COMMERCE COMMISSION. 
 
 that the rates to all points can be adjusted by the carriers them- 
 selves in conformity with the views herein intimated and without 
 any further consideration of details by the Commission. In case 
 that the subject of a reduction of the rates in general shall be 
 brought again before the Commission, the question of grouping,, 
 to the extent last above indicated, will be regarded as still open." 
 Since that decision was rendered the Erie and Ontario & "West- 
 ern have greatly extended their milk territory, as will more fully 
 appear in the findings of fact herein, and other lines, parties to 
 this case, but which were not defendants in that proceeding, have 
 engaged very extensively in the transportation of milk from far- 
 distant localities. Moreover, the uniform rate now charged 
 throughout such extended area is less than that complained of in 
 the Howell Case. The question of the reasonableness of the rate 
 complained of in the Howell Case was retained by the Commis- 
 sion to enable the complainants to produce additional evidence^ 
 and in view of all- the' changes in conditions respecting the ship- 
 ment and transportation of milk under a uniform rate, together 
 with the failure of the Erie and Ontario & Western to carry out 
 the- recommendation of the Commission for an additional charge 
 for service beyond the points reached by their regular milk trains 
 at that time, the entire question of the legality of the uniform or 
 blanket milk rate should be and is regarded as properly reopened 
 in this proceeding. 
 
 Facts. 
 
 1. The petitioner, the Milk Producers' Protective Association, 
 is an unincorporated body having a membership of about 627 
 milk producers and shippers, farmers, merchants, dealers and 
 others ; and of this number about 600 are directly or indirectly 
 interested in the production of milk, buttermilk and cream in the 
 counties of Orange, Ulster and Sullivan, New York, and Sussex, 
 New Jersey, and the shipment thereof by rail for sale and con- 
 sumption in the City of New York and cities adjoining. The 
 section of country north and westerly of New York City, com- 
 prising Sussex and other counties in northern New Jersey, Orange 
 County, N. Y., and contiguous portions of Ulster and Sullivan 
 counties in New York, constitute a large part of a near-by pro- 
 ducing region from which a considerable portion of the milk and 
 
MILK PEODUCEES' PEOTECTIVE ASSO. T. DBLAWAEE, L. & W. E. 00, 13 
 
 cream consumed in New York and adjoining cities is supplied. 
 Other portions of this near-by region are Long Island, N. Y., 
 the southeasterly section of New York State east of the Hudson 
 River, and some adjoining parts of western Connecticut and 
 Massachusetts. Milk and cream are also forwarded in large quan- 
 tities for consumption in New York, Brooklyn and Jersey City, 
 from relatively "far-oflE" localities in the States of New York, 
 Pennsylvania and Massachusetts. 
 
 2. The roads which deliver milk and cream at Jersey City, 
 "Weehawken and Hoboken, N. J., are those of the defendants, 
 the New York, Lake Erie & "Western (now Erie and hereinafter 
 BO called) at Jersey City, N. J. ; the Delaware, Lackawanna & 
 "Western (hereinafter called the " Lackawanna ") at Hoboken ; the 
 Lehigh Yalley at Jersey City; the New York, Susquehanna & 
 "Western (hereinafter called the " Susquehanna ") at Jersey City ; 
 the New York, Ontario & "Western (hereinafter called the " On- 
 tario & Western ") at Weehawken ; and the "West Shore at Wee- 
 hawken. The defendant, the New York, New Haven & Hart- 
 ford Railroad Company (hereinafter called the " New Haven ") 
 •operates lines through Massachusetts and Connecticut to New 
 York City. The Lehigh & Hudson Eiver connects with and de- 
 livers milk and cream for Jersey City to the Erie at Greycourt on 
 the main line. The Delaware & Hudson Canal Company (oper- 
 ating the Albany & Susquehanna Railroad), and the Elmira, 
 ■Cortland & Northern Railroad Company, deliver milk shipped 
 over their respective roads to the Lackawanna. The Elmira, 
 Cortland & Northern has become part of the Lehigh Yalley sys- 
 tem since this proceeding was commenced, but such milk delivery 
 to the Lackawanna has not been discontinued. The Lehigh & 
 New England (formerly Pennsylvania, Poughkeepsie & Boston) 
 appears to be operated as follows : That portion between Slating- 
 ton. Pa., and Hainesburg Junction, N. J., by the Lehigh Yalley, 
 and the remainder. Pine Island Junction, N. Y., to Hainesburg 
 Junction; N. J., by the Susquehanna. The Philadelphia, Read- 
 ing & New England road connects with the Lehigh & Hudson 
 River at Maybrook, N. Y., and with the Ontario & "Western and 
 Erie at Campbell Hall, N. Y. Milk is dehvered by it to the On- 
 tario & "Western and carried by the latter to Weehawken. The 
 "Wallkill Yalley and Ulster & Delaware roads deliver their milk 
 traffic to the "West Shore at Kingston, N. Y. 
 
14 INTEESTATK COMMEECE COMMISSION. 
 
 3. The milk shipping territories served by the defendant hnes 
 are described as follows : 
 
 Erie : The milk shipping station most distant from the milk 
 terminal at Jersey City is Hornellsville, J^[. Y., 331 miles, and the 
 milk station in New York State nearest to the terminal is Tur- 
 ner's, N. Y., 46 miles. The distance between such stations, both 
 situated on the main line, is 285 miles. 
 
 On the Lehigh & Hudson Eiver road, which delivers its milk 
 to the Erie at Greycourt, JST. Y., the milk station most distant 
 from the terminal at Jersey City is Belvidere, N. J., 116 miles, 
 and the shipping station on such connecting road nearest to the 
 terminal is Sugar Loaf, JST. Y., 57 miles. 
 
 The milk shipping stations in New Jersey located on the Erie 
 line which are nearest to and farthest from the terminal are 
 Langdon, 20 miles, and Mahwah, 29 miles. Milk originating on 
 the Erie main line and branches is also transported from New 
 York and Pennsylvania points to Jersey City, N. J. Shipments 
 over the Lehigh & Hudson Eiver connection originate both in 
 New Jersey and New York, and are carried through New York 
 and then through New Jersey to the terminal. 
 
 Susquehanna: The milk shipping station most distant from 
 the terminal at Jersey City is Middletown, N. Y., 88 miles, and 
 the milk shipping station in New York nearest to the ter. 
 minal is Unionville, N. Y., 74 miles, the distance between such 
 stations being 14 miles. This road also operates the portion of 
 what is now known as the Lehigh & New England Eailroad (for- 
 merly Pennsylvania, Poughkeepsie & Boston) between Haines- 
 burg Junction, N. J., and Pine Island Junction, N. Y. The lat- 
 ter point is by this line about 79 miles from the terminal, and the 
 station in New York State on such branch nearest to the terminal 
 is Liberty Corner, about 75 miles. It does not appear that the 
 Susquehanna receives any milk from New York stations on the 
 Lehigh & New England branch. 
 
 The milk shipping stations in New Jersey which are nearest to 
 and farthest from the terminal are Campgaw, 29 miles and 
 Hainesburg, 89 miles. The route of this line is through New 
 York and New Jersey. 
 
 Ontario c& Western: The milk shipping station most distant 
 from the terminal at "Weehawken, N. J., is Kenwood, N. Y. 264 
 
DELAWARE, L. & W. E. CO. 15 
 
 miles, and the milk station nearest to the terminal is Cornwall, N. 
 Y., 52 miles. The distance between such stations is 212 miles. 
 Kenwood is on the main line. Milk is also shipped from branch 
 line points in JSTew York and Pennsylvania. The Pennsylvania 
 branch extends from Hancock Junction, N^. Y., to Scranton, Pa. 
 
 Milk is also received from two connecting roads, the Philadel- 
 phia, Heading & JSTew England, and the Port Jervis, Monticello 
 & New York. The shipping stations on these roads are not 
 given. The point of connection with the Philadelphia, Reading 
 & New England is at Campbell Hall, N. Y., 68 miles from the 
 Weehawken terminal. This connecting road runs from Campbell 
 Hall, crossing the Hudson Eiver via the Poughkeepsie bridge, to 
 Hartford, Conn. The distance from Campbell Hall to Highland 
 on the Hudson Hi ver is about 28 miles. The other connection, 
 the Port Jervis, Monticello & New York road, joins the Ontario 
 & "Western at Summitville, N. Y. The Ontario & Western has 
 trackage rights over the West Shore from Cornwall, N. Y., to 
 Weehawken, N. J., and does not carry any milk shipped from 
 south of Cornwall. 
 
 Lacka/wanna : The milk shipping station most distant from 
 the terminal at Hoboken, JST. J., is South Columbia, N. Y., 310 
 miles, on the Eichfield Springs branch of the Utica division, and 
 the milk shipping station in Pennsylvania nearest to the terminal 
 is Moscow, Pa., 136 miles. The distance between such stations is 
 174 miles. In 1894 some milk was carried by that road from 
 Leicester, JST. Y., to Hoboken, about 354 miles, but this was the 
 only milk station west of Elmira, 264 miles from Hoboken. The 
 testimony is that South Columbia is the most distant station for 
 regular shipments. 
 
 On the Delaware & Hudson Canal Company's road, which con- 
 nects with the Lackawanna at Binghamton, the milk shipping station 
 most distant from the Hoboken terminal, is at or near Cobleskill, 
 E". Y., 305 miles, and the milk station on such connecting road near- 
 est to the terminal is Osborne Hollow, E". Y., 217 miles. Bing- 
 hamton, the point of connection, is about 206 miles from the 
 terminal. Milk is also shipped from two or three stations in New 
 York located on the Wilkesbarre, Pa., branch of the Delaware & 
 Hudson road. Some milk originates at Phoenixrille and Coopers- 
 town, N. Y., on the Cooperstown & Charlotte Valley road, which 
 
16 INTEESTATE COMMEKCE COMMISSION. 
 
 is delivered to the Delaware & Hudson at C. & C. V. Junction, 
 and by it in turn delivered to the Lackawanna at Binghamton. 
 
 On the Elmira, Cortland & Northern Railroad, which also de- 
 livers milk to the Lackawanna, it appears that the milk station 
 most distant from the terminal is Shed's Corners, N. Y., 275 miles, 
 and that the milk station on such connecting road nearest to the 
 terminal is McLean, N. Y., 256 miles. The nearest point of con- 
 nection with the Lackawanna for shipments from these stations is 
 Cortland, N. Y. 
 
 The milk shipping station on the Lackawanna in I^ew Jersey 
 nearest to the terminal is Whitehall, N. J., 26 miles, and the far- 
 thest ISTew Jersey milk points from the terminal are "Washington, 
 E". J., 71 miles, or Delaware, N. J., 80 miles, on the main line, 
 and Franklin, N. J., 76 miles on the Sussex branch. 
 
 West Shore : This line, of which the New York Central & 
 Hudson Eiver is lessee, receives practically all its milk traffic at 
 Kingston, E". Y., 87 miles from its terminal at Weehawken, de- 
 livery being made at Kingston by its connections, the Wallkill 
 Valley and the Ulster & Delaware Railroads. The West Shore 
 gets about 12 cans a day at West Park, 78 miles from Weehaw- 
 ken on the main line. The milk station on the Wallkill Yalley 
 most distant from the terminal is Campbell Hall, N. Y., 126 miles 
 by this route, and the Wallkill Yalley milk station nearest to the 
 terminal is New Paltz, N. Y., 103 miles. The milk station on 
 the Ulster & Delaware most distant from the Weehawken term- 
 inal appears to be Bloomville, N. Y., 176 miles, and the milk 
 point on such connecting road nearest to the terminal is, from 
 distance stated in testimony, Fleischmanns, N. Y., 132 miles. 
 
 The West Shore routes are through New York and New Jer- 
 sey. 
 
 Lehigh Valley ; The most distant milk shipping station from 
 the terminal at Jersey City is about 340 miles. Romulus, N. Y., 
 is a milk station on this line, 335 miles from Jersey City. The 
 milk shipping station in Pennsylvania nearest to the terminal is 
 Catasauqua, Pa., 94 miles. The distance between such stations 
 is 246 miles. The first shipping station west of Catasauqua is 
 La Grange, Pa., 195 miles from Jersey City. Milk shipped from 
 a few points on the Montrose Railway in Pennsylvania is carried 
 
MILK PEODUCEES' PEOTEOTIVE ASSO. V. DELAWAEE, L. & W. E. CO. 17 
 
 by this road. The names of 'New Jersey stations at which milk 
 shipments are received by this line are not shown. 
 
 Jfew Haven : The milk shipping station most distant from 
 the milk terminal of this road at Harlem River, JSTew York City, 
 is about 163 miles, and the milk point nearest to the terminal is 
 about T2 miles. Practically all the milk traffic for this line orig- 
 inates on lateral roads. The ISTew Haven milk lines run through 
 western Massachusetts and western Connecticut to New York. 
 
 Intersecting Points: Campbell Hall, IST. Y., is served by the 
 Ontario & Western, Erie and Wallkill Valley (West Shore). 
 Middletown, ]^. Y., is reached by the Erie, Ontario & Western 
 and Susquehanna. Sidney, J^. Y., on the Ontario & Western, is 
 also reached by the Delaware & Hudson-Lackawanna line. Ox- 
 ford, !N. Y., is a crossing point of the Lackawanna (Utica divi- 
 sion) and the Ontario & Western main line. Branches of the 
 Erie, and Ontario & Western reach Uniondale, Pa., and other 
 stations in the vicinity of Carbondale, Pa. The Lackawanna, 
 Lehigh Yalley and Erie lines each intersect with one or both 
 of the others at Waverly, Elmira and other points in central New 
 York". The Susquehanna crosses the Lehigh & Hudson Eiver 
 at Franklin Junction, N. J., and Sparta Junction, N. J., and 
 reaches a branch line of the Erie at Pine Island Junction, N. Y. 
 The Lackawanna also connects with the Lehigh & Hudson River 
 at Franklin, N. J., and at Andover Junction, IST. J. 
 
 During the season of navigation on the Hudson River, milk, 
 principally from Orange County, is transported by a steamboat 
 line from Newburgh and other river landings at a rate stated to 
 be as low as 10 cents a can, and this competition diverts consider- 
 able quantities of milk from the defendant lines having stations 
 within convenient teaming distance to the river. An electric car 
 line operated between Walden and Newburgh, in Orange County, 
 , may be utilized for the transportation of milk to the Hudson 
 River at ISTewburgh. 
 
 Excluding transportation wholly in New Jersey, the distances 
 
 from the terminal of the nearest and farthest milk shipping 
 
 stations on each line, and the distances between such stations, 
 
 based on the foregoing description of milk routes, are as follows : 
 
 "9 
 
18 
 
 INTEESTATE COMMERCE COMMISSION. 
 
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MILK PEODUCKES,' PEOTECTIVE ASSO. V. DELAWAEE, L. & W. E. CO. 19 
 
 All of the milk via the Susquehanna is short distance traffic. 
 Although the most distant point on the Lehigh & Hudson River 
 road is 116 miles from Jersey City, such distance is over that road 
 and the Erie from Greycourt, and a much shorter route from 
 Belvidere, N. J., the 116-mile point, is found in practicable lines 
 to Jersey City via the Lehigh & Hudson River to Sparta Junc- 
 tion, N. J., and thence over the Susquehanna, a distance of about 
 93 miles ; or by the Lehigh & Hudson River to Andover Junc- 
 tion, !N. J., and from that point over the Lackawanna to Hoboken, 
 81 miles. From most stations on the Lehigh & Hudson River 
 these lines would be wholly in New Jersey. Sparta and Andover 
 Junctions, on the Lehigh & Hudson River, are located, respect- 
 ively, 33 and 39 miles from Greycourt, and 29 and 23 miles from 
 Belvidere. Campbell Hall, N. Y., the most distant milk point 
 on the Wallkill Valley — West Shore route, is 126 miles from 
 Weehawken by that line, and New Paltz, N. Y., the nearest milk 
 station to Weehawken, is 103 miles ; but Campbell Hall is reached 
 by the Ontario & Western from Weehawken over a distance of 
 abont 68 milgs, and by the Erie from Jersey City the distance to 
 Campbell Hall is only 64 miles. Traffic from New Paltz via 
 Campbell Hall and these shorter connections would be carried to 
 the terminal stations over distances not exceeding 87 or 91 miles. 
 On the other hand, practically all of the milk of the Ulster & 
 Delaware, and the Lackawanna and Lehigh Valley outside of New 
 Jersej', is, relatively considered, long-distance traffic. The milk 
 traffic of the Erie; and Ontario & Western is carried over both 
 short and long distances. The New Haven gets no milk nearer 
 than 72 miles from New York, and its most distant milk point as 
 before stated is 163 miles. 
 
 4. From the testimony and documents in evidence, it appears 
 that the extreme distances over which milk has been carried by 
 the Erie, Ontario & Western, Susquehanna, Lehigh & Hudson 
 River, Lehigh Valley and Lackawanna, at different periods, were 
 as follows : 
 
20 
 
 INTEESTATE COMMBEOE COMMISSION, 
 
 Erie: 
 
 Ontario & Western : 
 
 1875-1884, 
 1884-1886, 
 1886-1887, 
 1888-1892, 
 1893-1895, 
 Prior to 1881, 
 
 ( ( (I i* 
 
 1881 lo 1887, 
 
 Susquehanna : 
 
 Lehigh & Hudson River: 
 
 Lehigh Valley: 
 
 Lackawanna : 
 
 1888-1893, 
 1893-1895, 
 1879-1895, 
 1879-1882, 
 1882-1895, 
 Carried none 
 
 1885, 
 1890-1891, 
 
 1894, 
 Confined to 
 
 1886, 
 
 1889, 
 1890-1893, 
 1894-1895,- 
 
 Port Jervis, N. Y. 87 miles 
 
 Callicoon, N. Y., 135 " 
 
 Summit, N. Y., 183 
 
 Blmira, N. Y., 273 
 
 Hornellsville, N. Y., 331 
 Summitville, N. Y., 92 
 
 Hurley, N. Y., 110 
 
 Liberty, N, Y., 118 
 
 Livingston Manor, 128 " 
 
 Walton, N. Y., 179 
 
 Demi, N. Y., 196 
 
 Sidney, N. Y., 203 
 
 Eandallsville, N. Y., 244 
 
 Kenwood, N. Y, , 264 
 Middletown, N. Y., 88 
 McAfee, N. J., 74 
 
 Belvidere, N. J.. 116 
 up to 1885. 
 
 Three Bridges, N. J., 49 
 Began to extend the traffic. 
 
 Romulus, 335 
 New Jersey traffic up to about 1886. 
 Began to extend the traffic. 
 Vicinity of Binghamton, 206 miles 
 Extensions continued. 
 South Columbia, 310 " 
 
 Since the Howell Milk Case was instituted before the Com- 
 mission in 1887, the Erie has extended its most distant milk 
 point 148 miles,' and in point of distance from the terminal the 
 extension on the Ontario & Western has been 62 miles. This 
 takes no account of extended branch line service within such to- 
 tal distance. As stated above, and shown in a table hereinafter 
 set forth, nearly all the Lackawanna and Lehigh Valley traffic 
 has been acquired since 1887. 
 
 5. Rates for the transportation of milk (including buttermilk) 
 and cream to Jersey City, Hoboken or "Weehawken are, per 100 
 pounds or can of 40 quarts, 32 cents for milk and 50 cents for 
 cream from all milk shipping stations on each of the defendant 
 lines having terminals in those cities. These rates are charged 
 regardless of the distance carried or the greater or less service 
 rendered, the single exception being that the rates over the Le- 
 high Yalley Railroad from points in New Jersey to Jersey City 
 are 28 cents per can of milk and 40 cents per can of cream. Pot 
 cheese in 40-quart cans is carried by the defendant lines at the 32- 
 cent rate. 
 
 Shipments of milk or cream are also made in bottles packed in 
 cases of 12 bottles and upwards. The bottle generally used con- 
 tains one quart. Yery few of the pint size are used. The rates 
 
MILK PRODUCEES' PEOTEOTIVE ASSO. V. DELAWARE, L. & W. E. CO. 21 
 
 on bottled milk and cream on the lines to Jersey City, Hobokeii 
 or Weehawken are the same per quart as those charged on ship- 
 ments in cans, that is to say, the rate of 32 cents per can of 40 
 quarts of milk being equal to ^ of a cent per quart, the transpor- 
 tation charge on a 12-quart case of bottled milk is also ^ of a cent 
 a quart, or 9.6 cents for the case. The charge on a 15-quart case 
 is 12 cents. Cream in bottles is carried at the can rate of 1^ 
 cents per quart, amounting to 15 cents per 12-quart case, and 18f 
 cents for a 15-quart case. The "standard" case is 12 quarts. 
 The bottled milk traffic began 8 or 9 years ago, and large quanti- 
 ties of milk and cream are now shipped by that method. The 
 transportation charge on a can of milk is 32 cents, whether the 
 can contains 40 quarts or a less quantity, and 50 cents is also the 
 minimum rate on cream in cans. The can generally used for 
 the shipment of milk and cream over the defendant lines is of 
 metallic construction, contains 40 quarts, and weighs when full 
 about 100 pounds. The weight of the empty can is about 20 
 pounds. The case for bottled milk, constructed of wood, is about 
 24 inches long, 12 inches wide and 12 inches high, partitioned in- 
 side so as to provide a protected space for each bottle. There is 
 room at the top to cover the bottles with ice. The bottled milk 
 is iced except during the cold season. Some of the cases have 
 lids. These cases become water soaked from the use of the ice, 
 and this adds to the weight. The car iloor is injured materially 
 by the drippings from ice used for the box milk. The 12-quart 
 case weighs from 70 to 75 pounds when full and' iced, and 30 to 
 40 pounds empty. The 15-quart case weighs 100 pounds filled 
 and, approximately, 50 pounds empty. According to these 
 weights, the lines delivering at Jersey City and other New Jersey 
 terminals in transporting 40 quarts of milk carry 100 pounds' 
 weight when the shipment is in cans and from 233 to 266 pounds' 
 weight when the milk is bottled. For the same price they render 
 from 2^ to 2f times the weight carrying service in hauling bottled 
 milk that they do m transporting milk in cans. The box or case 
 milk may be piled up in the car, while but little more than the 
 floor space of the car can be utilized for can milk. Thus, on the 
 Erie,- one of the milk cars in use will carry about 430 standard 12- 
 quart cases of bottled milk, while the maximum load of can milk 
 is 260, and the floor capacity is about 240 cans. Such additional 
 
22 INTERSTATE COMMERCE COMMISSION. 
 
 loading as to number of packages in favor of bottled milk is, 
 however, much more than overcome by the greatly increased non- 
 revenue paying weight which must be hauled. The weight of 
 the full carload of box milk is about 3 tons heavier than the car- 
 load made up of 240 cans. The carload of can milk contains 9,600 
 quarts as compared with 5,160 quarts in the carload of bottle 
 milk, and the total railway charge at the present rate would be 
 $76.80 for the car of milk in cans as against $41.28 for the bot- 
 tled article. In other words, 86 per cent more revenue paying 
 load and the same amount of additional revenue is furnished by 
 the carload of 240 cans. The average carload of milk on the Erie 
 in 1894 was 155 cans, and on the Lackawanna it was 160. A car 
 of 160 cans of 40 quarts furnishes a car revenue of $51.20, or 
 $9.92 in excess of an Erie carload of box milk, and the weight 
 carried would be about 15 tons of boxed milk as against 8 tons of 
 can milk. The car revenue on 240 cans of cream would be 
 $55.50 more than the revenue from a maximum carload of 4-30 
 12-quart cases of cream, and 160 cans of cream would still bring 
 the carrier a greater return by $15.50 than the full carload of 
 boxed cream. The great bulk of the milk traffic is in cans. 
 Milk and cream in cans and bottles are picked up in less than car- 
 loads at the great majority of shipping stations ; there are few, if 
 any, carload shipments. 
 
 The rates charged on this traffic from all points on the New 
 Haven road to Harlem Eiver station, Ifew York City, are 25 cents 
 per 40-quart can, 22| cents per 30-quart can, and 20 cents per 20- 
 quart can, of either milk or cream, and the charge made by that 
 carrier for bottled milk or cream is 1 cent per quart. Provision 
 is made, however, for a minimum charge of 30 cents. These 
 rates are not exceeded on shipments to intermediate points. 
 Three or four years ago the 40-quart can rate was 30 cents. 
 
 The rates charged over the defendant lines to New Jersey 
 terminals for carrying milk and cream are, and for a number of 
 years have been, fixed by agreement between representatives of 
 the different lines engaged in the transportation, and changes 
 made in the rates on any of the lines have been contemporane- 
 ously put in effect on the others. 
 
 6. The rates thus uniformly in effect from July 1, 187Y, to this 
 
MILK PKODUOERS' PEOTEOTIVE ASSO. V. DELAWARE, L. & W. E. CO. 23 
 
 date on " lines west of the Hudson Eiver," as contained in an 
 exhibit prepared by the defense, are set forth below : 
 
 Milk. Cream. 
 
 Time. 40-qt. cans. 40 qt. cans. 
 
 July 1, 1877, to April 30, 1879 55 60 
 
 May 1, 1879, to March 31, 1881 40 60 
 
 April 1, 1881, to December 81, 1883 40 45 
 
 January 1 , 1884, to January 26, 1885 37i 45 
 
 January 26, 1885, to January 31, 1886 32 45 
 
 February 1, 1886, to January 14, 1890 35 45 
 
 January 14, 1890, to April 1, 1892 .'.._ 32 42 
 
 April 1, 1892, to date 33 50 
 
 Up to 1887 or 1888, the Ontario & Western charged higher 
 milk rates from points north of Bloomingbiirgh, 87 miles from 
 Weehawken, than from stations south of that place. The differ- 
 ence was 5 cents a can from July, 1879, to January 28, 1885, and 
 3 cents after the last-mentioned date. The rates charged on 
 what is known as the Harlem Railroad, part of the JSTew York 
 Central system, and lying wholly in the State of New York, are 
 30 cents on milk and 40 cents on cream or condensed milk per 
 40-quart can, and the bottled milk rates are 12 cents per 12-quart 
 case and 20 cents per 20-quart case. On the Central Eailroad of 
 New Jersey, the rates from New Jersey points to Jersey City are 
 28 cents on milk and 40 cents on cream per 40-quart can or less, 
 and 10 cents per 12-quart case or less of bottled milk. The milk 
 rate on the Long Island road is f of a cent per quart on milk in 
 cans or bottles from all of its stations to Brooklyn or New York 
 City. The rate of 27-| cents per can, mentioned in the above 
 table as in effect over lines west of the Hudson Eiver in 1884, is 
 stated in a decision of the New York Kailroad Commission in a 
 case entitled Stevens against the New YorTe, Lake Erie c& Western 
 JR. B. Co., July 29, 1884, as having been put in by the Erie to 
 meet the reduction from 45 to 30 cents per can recommended by 
 that Board in the milk rate on the Harlem road in 1883, and 
 complied with by that carrier. 
 
 7. The rates charged on milk and cream cover the return of 
 cans and cases of bottles to shipping points on all the defendant 
 lines. On the return trip, cans as well as cases may be piled or 
 tiered, but this must be done so that those for each station will 
 be in place convenient for unloading. One or more trains, are 
 
24r INTERSTATE COMMERCE COMMISSION. 
 
 regularly run by each of the lines delivering at I^ew Jersey 
 terminals, and the cars composing each train must, as a rule, all 
 be sent back the next day to shipping points. With the same 
 number of cars going each day for new loading and carrying 
 empty cans and cases conveniently placed in the cars for distri- 
 bution, it is not apparent that material saving in transportation 
 cost can result from loading the empties in the smallest number 
 of cars. The retni-n of empty cans and cases to shippers on the 
 defendant lines is a necessary part of the service in milk trans- 
 portation, and is rendered by the carrier vi^ithout additional com- 
 pensation. This return of eases and cans by the carrier includes 
 carriage and handling at both the delivering and shipping points, 
 and the regular milk trains to New Jersey terminals go back 
 usually without other loading than the returned packages. 
 
 8. Following is a table showing the annual and total quantity 
 of milk, cream and condensed milk, reduced to units of 40-quart 
 cans, received in the ]S"ew York market during the 10 years, 1886 
 to 1895, inclusive, the amount carried by each line, and the in- 
 creased or decreased percentage of each ; also the average daily 
 receipts, with the yearly and ten-year per cent of increase : 
 
milk peoducees' peotective asso. v. delawabe, l. & w. e. co. 25 
 Fkom the "Milk Rkpoptbr." 
 
 . Railroads. 
 
 1886. 
 
 1887. 
 
 1888. 
 
 1889. 
 
 1890. 
 
 1891. 
 
 Brie 
 
 Harlem. -_. 
 
 Ontario 
 
 Susqufehanna ... 
 
 Northern 
 
 West Shore 
 
 New Haven... . 
 
 D., L. & W 
 
 Long Island 
 
 New Jersey Cent. 
 *Bamsdell Trans- 
 portation Co. . . 
 fLehigh Valley.. 
 Other sources... 
 
 1 451,523 
 922,151 
 527,169 
 476,987 
 461.484 
 281,954 
 435,234 
 140,300 
 159,332 
 167,658 
 
 435,830 
 
 1,513,373 
 955,985 
 537,381 
 530,873 
 487,087 
 371,160 
 449,735 
 168,750 
 148,530 
 190,330 
 
 185,343 
 
 277,320 
 
 1,536,703 
 972,453 
 592,348 
 557,777 
 454,937 
 408,538 
 354,074 
 265,650 
 144,855 
 183,315 
 
 ,350,645 
 
 300,900 
 
 1,594,1-29 
 1,041,593 
 631,410 
 548,703 
 439,194 
 425,794 
 323,910 
 338,981 
 141,045 
 187,070 
 
 315,905 
 
 289.350 
 
 1,694,153 
 959,238 
 760,804 
 543,287 
 434,288 
 474,203 
 289,954 
 485,310 
 133,657 
 157,325 
 
 374,025 
 
 383,975 
 
 1,751,319 
 851,042 
 888,375 
 551,874 
 413,853 
 564,989 
 217,265 
 949,578 
 113,043 
 136,651 
 
 343,919 
 
 9,331 
 
 252,750 
 
 Total 
 
 5,449,612 
 
 5,814,864 
 
 6,021,185 
 
 6,276,084 
 
 7,480,119 
 
 6,933,788 
 
 Per cent of yearly 
 
 increase 
 
 Daily average. _. 
 
 14,930 
 
 06.7 
 15,931 
 
 03.55 
 16,451 
 
 04.23 
 17,195 
 
 03.25 
 
 17,754 
 
 06.98 
 18,994 
 
 Railroads. 
 
 1893. 
 
 1893. 
 
 1894. 
 
 1895. 
 
 Total cans 
 Carried 
 During 
 10 years. 
 
 Per Cent. 
 Increase 
 
 or 
 Decrease. 
 
 Erie 
 
 Harlem 
 
 Ontario 
 
 Susquehanna __. 
 Northern ....... 
 
 West Shore 
 
 New Haven 
 
 D., L. &W 
 
 Long Island 
 
 New Jersey Cent. 
 *Ramsdell Trans- 
 portation Co... 
 fLehigh Valley-. 
 Other sources... 
 
 1,778,508 
 798,009 
 
 1,050,924 
 534,287 
 376,203 
 567,435 
 153,539 
 
 1,394,250 
 
 187,150 
 
 83,623 
 
 267,175 
 
 58,954 
 
 217,950 
 
 1,663,058 
 830,027 
 
 1,095,484 
 643,492 
 355,330 
 479,916 
 355,784 
 
 1,525,067 
 71,989 
 75,879 
 
 268,963 
 
 73,774 
 
 316,650 
 
 1,613,309 
 845,017 
 
 1,167,809 
 658,297 
 279,837 
 486,667 
 284,833 
 
 1,649,773 
 57,317 
 75,998 
 
 • 380,908 
 123,938 
 215,250 
 
 1,534,866 
 880,635 
 
 1,270,987 
 685,309 
 233,670 
 472,598 
 286,491 
 
 1,897,135 
 50,380 
 85,079 
 
 250,864 
 173,726 
 317,450 
 
 16,128,940 
 9,056,150 
 8,532,641 
 5,730,785 
 3,934,763 
 4,533,844 
 3,039,799 
 8,814,794 
 1,197,197 
 1,331,828 
 
 3,336,746 
 
 437,633 
 
 3,707,335 
 
 05.7 inc 
 
 04.7 dec 
 
 141.0 inc 
 
 43.6 inc 
 
 51.7 dec 
 67.6 inc 
 33.6 dec 
 
 1353.0 inc 
 68.3 dec 
 49.3 dec 
 
 35.3 inc 
 
 193.0 inc 
 
 50.0 dec 
 
 Total 
 
 7,467,987 
 
 7,553,913 
 
 7,738,843 
 
 8,037,040 
 
 67,761,435 
 
 47.3 ihc 
 
 Per cent of yearly 
 
 increase 
 
 Daily average . . . 
 
 07.72 
 20,404 
 
 01.14 
 20,693 
 
 03.46 
 21,303 
 
 03.72 
 31,993 
 
 
 
 ♦Hudson Klver Boat Line. „ . ,,,...„ . , 
 
 tPercentage of increase figured from 1892, as our report for 1891 included but 3 monttis. 
 
 The table covers the supply oi plain condensed milk as well as 
 fluid milk and cream. 
 
26 INTEESTATE COMMEEOE COMMISSION. 
 
 It appears by these figures that the supply of milk and cream 
 for the New York market (and this is understood to include 
 adjoining cities) increased from less than 5^ million cans in 1886 
 to over 8 million cans, or, exactly, 321,081,600 quarts in 1895. 
 Such increase was 47.3 per cent, or about 2^ million cans, and the 
 daily average in 1895 was about 7,000 cans in excess of that for 
 1886. The total population of New York, Brooklyn, Jersey City 
 and Hoboken in 1885, 1890 and 1895, testified to as stated in 
 Census Reports or shown in estimates based thereon, was 2,226,513. 
 in 1885, 2,530,995 in 1890, and 3,113,189 in 1895. The increase 
 in the population of these cities has therefore been nearly 
 900,000 in 10 years. On a population basis of 2^ millions in 
 1886 and 3,113,189 in 1895, the delivered milk supply per capita 
 was about 96.88 quarts for 1886 and 103.13 quarts in 1895, an 
 increase of 6^ quarts for each person. 
 
 According to the above table, the defendant lines carried very 
 nearly 78f per cent of the entire New York milk supply in 1895. 
 This amounted to 6,319,962 cans of 40 quarts, and of this quan- 
 tity the Erie, Lackawanna, Susquehanna and Ontario & Western 
 transported 5,388,147 cans, or more than 85 per cent. These 
 four delivering companies with their connections carried in that 
 year over 67 per cent of the total supply. The volume of this 
 traffic on both the Erie and West Shore has been decreasing since 
 1892. The quantity carried by the Erie was 243,642 cans less in 
 1895 than in 1892, and the West Shore milk traffic in 1895 was 
 94,827 cans less than in 1892. The quantity annually carried by 
 the New Haven road decreased nearly two thirds between 1886 
 and 1892, but it has increased since, so that it showed in 1895 a 
 decrease as compared with 1886 of only about one third. There 
 were slight decreases between 1888 and 1892 on the Susquehanna, 
 which have been more than recovered since the latter year. The 
 Lackawanna and Ontario & Western milk traffic has continued 
 to increase yearly since 1886. As the table shows, the Ontario & 
 Western increase in 10 years was 141 per cent, and that of the 
 Lackawanna was from 140,300 cans in 1886 to 1,897,135 cans in 
 1895, or 1252 per cent. About three fourths of the Lackawanna 
 milk and cream business in 1895 was acquired subsequent to 
 1890. 
 
 The "Milk Reporter" shows that 7,729,064 cans of milk. 
 
MILK PKODUOEJBS'- PEOTBOTIVE ASSO. V. DELAWARE, L. & W. E. 00. 27 
 
 •222,157 cans of cream, and 75,819 cans of condensed milk were 
 brought to the New York market in 1895, the figures being on the 
 basis of 40 quarts to the can. For 1894, the figures so pubhshed 
 were 7,479,273 cans of milk, 210,269 cans of cream, and 67,302 
 oans of condensed milk. 
 
 9. The average yearly prices per quart paid by receivers of 
 milk in New York from 1870 to 1895, inclusive, are given below 
 in connection with the freight rate in force from 1877 : 
 
 Years. 
 
 Price. 
 
 Freiffht Hate. 
 
 Tears. 
 
 Price. 
 
 Freight Rate. 
 
 
 Cents per Qt. 
 
 Cents per Can. 
 
 Cents per Qt. 
 
 Cents per Can. 
 
 1870 
 
 4.58 
 
 
 1883 
 
 3.15 
 
 40 
 
 1871 
 
 3.83 
 
 
 ,1884 
 
 3.06 
 
 27.50 
 
 1872 
 
 3.67 
 
 
 1885 
 
 2.77 
 
 33 
 
 1873 
 
 3.75 
 
 
 1886 
 
 '2.80 
 
 35 
 
 1874 
 
 3.65 
 
 
 1887 
 
 2.81 
 
 35 
 
 1875 
 
 3.54 
 
 
 1888 
 
 2.83 
 
 35 
 
 1876 
 
 3.38 
 
 
 1889 
 
 2.59 
 
 35 
 
 ■ 1877 
 
 3.15 
 
 55 
 
 1890 
 
 2.63 
 
 32 
 
 1878 
 
 2.63 
 
 55 
 
 1891 
 
 3.67 
 
 33 
 
 1879 
 
 2.33 
 
 40 
 
 1892 
 
 '2.68 
 
 33 
 
 • 1880 ■ 
 
 2.85 
 
 40 
 
 1893 
 
 2.79 
 
 33 
 
 1881 
 
 2.98 
 
 40 
 
 1894 
 
 2.63 
 
 33 
 
 1883 
 
 3.35 
 
 40 
 
 1895 
 
 3.52 
 
 32 
 
 These prices do not include freight charges. For example, tlie 
 ■" exchange price " in January, 1894, was 3 cents per quart, equal 
 to $1.20 per can of 40 quarts, while the " platform price " on the 
 Erie platform at Jersey City was generally $1.52 per can in that 
 month, or the freight rate of 32 cents higher than thp " exchange 
 price." The platform price is liable to vary according to the 
 •day's supply and demand. The freight rate of 32 cents per 40- 
 quart can is at least 25 per cent of the price paid to producers. 
 The price of milk to New York City consumers is not uniform. 
 The price generally charged for delivering to families is about 8 
 <3ents a quart ; to boarding houses, 6 or t cents. A 40-quart can 
 of milk sells for from 4 to 5 cents a quart, the price being lower 
 in summer and higher in winter. When the market is over sup- 
 plied, milk on that day is sold very cheap. The bottle milk 
 brings usually from a quarter to half a cent more per quart. 
 One witness (Baldwin, a wholesale dealer) testified that more 
 milk is retailed in New York City at 5 cents a quart than above 
 it. Ten years ago the price to families was about 10 cents. 
 Thirty years ago it was as high as 14 cents a quart. In deter- 
 
28 INTERSTATE COMMEECE COMMISSION. 
 
 mining the value in New York City, it has been the custom to 
 add to the freight rate and market price 5 cents a can for ferry 
 and trucking from Jersey City to New York. Thus a can of 40 
 quarts selling on the Erie platform in Jersey City for $1.32 
 would be rated at $1.37 in New York. Thete is testimony to the 
 effect that this 5 cents was sometimes deducted from the market 
 price before settlement between consignee and producer, but such 
 deduction is not shown to have been the rule. 
 
 In 1877 and 1878, while the freight rate was 55 cents the aver- 
 age price per quart to producers fell from 3.15 cents to 2.63 cents. 
 In 1879, with the rate at 40 cents, the price fell to 2^ cents a 
 quart. From 1879 to 1883 the rate remained at 40 cents, and the 
 price per quart rose steadily each year from 2^ cents in 1879 to 
 3i cents in 1882; but in 1883 it fell to 3.15, and for the year 
 1884, while the rate was as low as 27^ cents, the price declined 
 to 3.06 cents. In 1885 with the rate raised to 32 cents the price 
 declined to 2.77 cents, rising to 2.80 cents per quart in 1886, when 
 the rate went to 35 cents, and remaining about 2.80 per quart 
 until 1889, when with the same rate it fell to 3.59. Since 1889, 
 with the rate at 32 cents, the quart price has fluctuated from 2.52 
 to 2.79, the lower figure being the average price for 1895. The 
 price generally paid by dealers to producers in the "far-off" 
 region ranges from i to J cent less than the market price. For a. 
 number of years and up to the early part of 1895 the price paid 
 to producers was fixed by the " New York Milk Exchange," but 
 this was discontinued upon a decision in the State court that the 
 Exchange was an illegal combination. The evidence tends to 
 show that the prices paid different producers since that Exchange 
 was discontinued are less uniform. Numerous conditions sur- 
 round the production, supply and demand for milk, many of 
 which are varied by the season and the character of the season, as 
 well as by added sources of supply and changes in the course of 
 handling or dealing, and the effect of increases or reductions in 
 the uniform freight rate upon prices paid to producers is not 
 shown through comparison of the freight rate and prices so paid 
 during each year. But the general tendency of both such price 
 and rate has been downward. The price to farmers in 1876 was 
 3.38 cents ; in 1882, 3.25 cents; in 1888, 2.83 cents; in 1893, 2.79 
 cents ; and the price for any of those years has not been equalled 
 
MILK PEODUOEES' PEOTECTIVE ASSO. V. DELAWARE, L. & W. E. CO. 29 
 
 since. In 1876 the freight rate was 55 cents or more; in 1882, 
 40 cents; in 1888, 35 cents; in 1893, 32 cents ; and this rate, 
 which is still in effect, is lower than at any former time except 
 during the year 1884. The wholesale and retail prices of milk are 
 also lower than in former years. The transportation chargiB on 
 milk, whether paid by consignee or shipper, whether included in 
 or deducted from milk prices paid to producers, is part of the cost 
 of marketing, and such cost is therefore reduced by a decrease in 
 the freight rate. 
 
 10. The following table shows for the years 1885 to 1895, in- 
 clusive, the number of quarts of milk at average price for the 
 year necessary to equal the average price for that year of a pound 
 of butter in the New York market : 
 
 YEAES. 
 
 QITAETS. 
 
 TEAES. 
 
 QUAETS, 
 
 1885 
 
 9.75 
 
 1891 
 
 9.70 
 
 1886 
 
 9.50 
 
 1892 
 
 9.70 
 
 1887 
 
 9.55 
 
 1893 
 
 9.60 
 
 1888 
 
 9.60 
 
 1894 
 
 8.80 
 
 1889 
 
 9.20 
 
 1895 
 
 8.50 
 
 1890 
 
 8.90 
 
 
 
 The average price of butter in 1894 and 1895 was considerably 
 lower than in 1893, and the shipment of milk for the New York 
 trade, as compared with butter for that market, was more profit- 
 able in 1895 than in 1893, by at least the producing value of one 
 quart of milk to the pound of butter. 
 
 11. Transportation rates on milk and cream are not the same 
 from all points of shipment to Philadelphia, Baltimore, Boston 
 or Chicago. The rates are graded on the basis of distance or are 
 the same from stations in short distance groups. The service for 
 each city is widely different from that to New York terminals, 
 much of it being performed in connection with general freight 
 or passenger service and- prepaid by the purchase of milk tickets 
 prior to shipment. It does not appear that milk is transported 
 to these cities over such considerable distances as is the case with 
 milk for New York. 
 
 From tariffs of various roads in evidence, it appears that milk 
 rates to Chicago are established by each with little reference to 
 rates of the other carriers to that city. The rates on 8 and 10 
 gallon cans on the Erie (Chicago & Erie) are 12 and 15 cents up 
 
30 INTERSTATE COMMEECE COMMISSION. 
 
 to 24 miles ; 15 and 25 cents for from 25 to 44 miles ; 20 and 30 
 cents for 45 miles and over. On the Chicago & Northwestern 
 (Galena Division, Air Line) for 8 and 10 gallon cans the rates 
 are graded upward from 15 and 19 cents, respectively, with some 
 short distance groups, the first being for stations 30 miles or 
 under from Chicago, two following of 15 miles each, then with 
 increases for succeeding stations until a distance out of 80 miles 
 is reached at Ashton, 111., from which point and all stations west, 
 including Clinton, la., 138 miles, the rates are 22 and 26 cents. 
 These are the highest can rates on this road lo Chicago. Rates 
 on bottled milk begin with 10 cents for the 12-quart case and 16 
 cents for the 18-quart case for the first 15 miles, increasing grad- 
 ually to 17 and 25 cents for the Ashton-Clinton group. From 
 that group this company charges within 1 cent as much for 18 
 quarts in bottles as it does for 40 quarts in cans. On the Chi- 
 cago, Milwaukee & St. Paul Railway the rates also commence with 
 15 and 19 cents for 8 or 10 gallon cans, respectively, and, graded 
 both by short distance groups and station to station increases, 
 reach 28 and 32 cents, respectively, at Kittridge, 111., on the 
 Council Bluffs line, 117 miles from Chicago, and 25 and 29 cents 
 on the " Northern Division " at Fond du Lac, "Wis., 161 miles 
 from Chicago. The Chicago & Alton rates range from 13J cents 
 per can at Summit, 12 miles out of Chicago, increasing 1 cent or 
 ^ cent with each station. The highest rate, 26 cents, is from 
 McLean, 111., 141 miles from Chicago. The Illinois Central rates 
 for 8 and 10 gallon cans grade from 15 and 19 cents up to 22 
 and 26 cents, and those of the Chicago, Burlington & Quincy 
 from 15 to 25 cents per 8-gallon can. On all these roads the 
 freight is prepaid, the shipper being required to purchase milk 
 tickets and attach a ticket to each can before delivery for trans- 
 portation. 
 
 Erie Line. 
 12. The total amount of milk and cream brought by the Erie 
 to Jersey City in 1894 was 1,297,505 cans and 729,280 boxes of 
 milk, 77,509 cans and 2,164 boxes of cream, on which the total 
 freight revenue was $523,484.10. The Erie share of this total 
 was $484,093.24. From a statement in evidence of milk traffic 
 on the Lehigh & Hudson River it appears that the receipts of 
 that road from this milk traffic for 1894 amounted to $45 773.68 
 
MII-K PEODUCBRS" PROTECTIVE ASSO. V. DELAWARE, L. & W. R. 00. 31 
 
 and that rates are divided between it and the Erie on the basis 
 of 40 per cent to the Lehigh & Hudson River and 60 per cent 
 to the Erie. This deducted from the above stated total milk re- 
 venue would make the Erie receipts $4YY,710.42. The 1894 
 revenue of the Erie from milk traffic on its Delaware Division, 
 running west from Port Jervis to Susquehanna, was $79,387.34; 
 from the Susquehanna Division, Susquehanna to Hornellsville, it 
 was $30,208.95, and from points on the Jefferson or Carbondale 
 branch, it was $6,233.70, making a total west of Port Jervis of 
 $116,829.99. The remainder of the total milk revenue for 1894, 
 $407,654.11, was derived from shipments east of Port Jervis. 
 On the basis of milk business frora points on the Lehigh & Hud- 
 son Kiver amounting to $114,434.20, as indicated by the state- 
 ment filed for that company, the traffic originating on the Erie 
 main line and branches east of Port Jervis amounted to $293,- 
 219.91. Of this, $116,990.83 was main line business, leaving 
 $176,229.08 for traffic from branches of the eastern division. 
 The foregoing distribution of the Erie milk revenue for 1894 is 
 based upon totals given in testimony. Analysis of the statement 
 of traffic by stations, filed for the Erie, four stations not located, 
 shows totals somewhat less for the eastern branches and the lines 
 west of Port Jervis, and a little more revenue from the main 
 line traffic east of Port Jervis. Included in the figures above 
 given are earnings on milk carried to Newark, Passaic and Pater- 
 son, N. J., in 1894, to the amount of about $11,190.76. The 
 rates of 32 cents on milk and 50 cents on cream are charged 
 whether the freight is consigned to Jersey City or carried be- 
 tween local stations. 
 
 The "Wells Fargo Express Company, which conducts the ex- 
 press business on the Erie lines, charges, according to agreement 
 with the railroad company, double the railroad rates for carrying 
 milk, cream and garden products within the milk-train limits; 
 thus, the' express rates on milk and cream are 64 cents and $1, 
 respectively, the delivery being to consignees' places of business 
 in l^ew York City. The express charges on merchandise traffic, 
 the highest class of express business (money excepted) are about 
 double the railroad freight rates. Potatoes, onions, apples and 
 other agricultural products usually have considerably lower 
 special express rates. The express company carries about 5 cans 
 of milk and cream daily. 
 
32 
 
 INTEESTATE COMMERCE COMMISSION. 
 
 The branch lines east of Port Jervis are :• Two to Newburgh, > 
 one from Turner's, 15 miles, and another from Greyeourt, 19 
 miles ; the Pine Island and Montgomery branches, 12 and 10 
 miles in length, respectively, connecting with the main line at 
 Goshen ; and the Middletown & Crawford branch, 13 miles, lead- 
 ing from Middletown to Pine Bush. Except three stations in 
 ISTew Jersey, all the main line milk trafiBc in 1894 east of Port 
 Jervis originated at Turner's and stations between that point and 
 Port Jervis. The distance between Turner's and Port Jervis is 
 41 miles. These main and branch line distances are all in Orange 
 County, New York. Nearly 80 per cent of the total milk traffic 
 of the Erie in 1894 originated east of Port Jervis on the main 
 line and branches and the Lehigh & Hudson Eiver connection, 
 and over 55 per cent was from main and branch lines in Orange 
 County. Prior to the construction of these branch roads butter 
 was the principal agricultural product of that county. The 
 branches were built with a view of penetrating this dairy region, 
 and with the facilities thus furnished for milk traffic, the making 
 of butter was largely discontinued. The Kamsdell Transporta- 
 tion Company's boat line on the Hudson Kiver, touching at New- 
 burgh, Cornwall, and other landings, has carried, at times, as 
 much as 1,000 cans a day from Newburgh alone. This river 
 competition affects traffic at stations 15 or more miles from the 
 river, but it has not resulted in causing the reduction of railroad 
 rates on milk from the localities affected. The Erie bought out 
 a large creamery at Washington ville. Orange County, mainly to 
 prevent the milk business at that point from going by the river. 
 
 The following statement shows the amount and increase of 
 milk and cream from points west of Port Jervis from September 
 30, 1891. to 1895 : 
 
 rear 
 
 Cans, 40 qts. 
 
 Gallons boxed. 
 
 Total reduced to cans 
 of 40 qts. 
 
 Yearly increase or 
 decrease. 
 
 1891 
 1892 
 1893 
 1894 
 
 1895 
 
 199,360 
 229,677 
 252,864 
 283,211 
 
 268,897 
 
 585,139 
 712,994 
 735,956 
 676,767 
 
 652,225 
 
 257,874 
 300,976 
 326,460 
 350,888 
 
 334,120 
 
 Increase. 
 43,102 
 25,484 
 24,428 
 Decrease 
 16,768 
 
 Increase 
 
 in 1895 
 
 over 1891. 
 
 69,537 
 
 67,086 
 
 76,246 
 
 
MILK PEODUCEES' PEOTECTIVE ASSO. V. DELAWARE, L. & W. E. CO. 33 
 
 The increase on the Lehigh & Hudson River connection in 
 1894 over 1891 was 1,021 cans. The total milk,- cream and con- 
 densed milk traiHc of the Erie in 1894, reduced to cans, was 
 1,613,309 cans, and in 1892 it was 1,778,508 cans, a loss in two 
 years on the whole traffic of 165,199 cans. The total of the west 
 of Port Jervis and Lehigh & Hudson Eiver milk traffic was 
 713,565 cans in 1894 and 660,325 cans in 1892. These figures 
 leave for the Erie main line "and branches east of Port Jervis 
 599,744 cans in 1894 and 1,118,188 cans in 1892, showing a loss 
 in two years in traffic originating on the Erie east of Port Jervis 
 •of 218,439 cans, over 19^ per cent of the shipments so originating 
 in 1892. 
 
 This result may be increased or decreased somewhat by the 
 fact that the figures used for west of Port Jervis traffic are for 
 years ending September 30, those for the calendar year not hav- 
 ing been given, and that a few thousand cans of condensed milk 
 are included in the totals used for 1894 and 1892. The total 
 milk traffic of the Erie in 1895 was less than in 1894 by 78,443 
 cans, and the decrease in west of Port Jervis milk for the year 
 ■ending September 30, 1895, compared with the year preceding, 
 was 16,768 cans. This indicates a further loss on the Erie lines 
 ■east of Port Jervis in 1895 of about 61,675 cans, and a total loss 
 since 1892 of about 280,114 cans, unless the loss as compared 
 with 1894 was made up by increase in shipments on the Lehigh 
 ■& Hudson Eiver. The annual supply from Lehigh & Hudson 
 Eiver points was about equal during the four years prior to 1895. 
 Such decrease since 1892 is not to be ascribed to the competition 
 •of the Hudson Eiver Boat Line, the number of cans carried by 
 the boats in 1895 having been about equal to the quantity carried 
 by them in 1891 and 1892, and 30,000 cans less than in 1894. 
 
 Milk, buttermilk and cream are brought by the Erie to Jersey 
 ■City in two daily milk trains usually composed of 13 milk cars 
 and one combination car which will seat 35 or 40 persons in one 
 •of the compartments, the other compartment being used for cler- 
 ical work pertaining to the milk business. The train employees 
 are carried in this car. Some passengers are transported west- 
 bound between local stations on one of the trains, and east-bound 
 on Simday only by both trains. No other traffic is carried on 
 these trains. One train, No. 18, starts from Port Jervis at 6:50 
 3 
 
34 INTEESTATE COMMEECE COMMISSION. 
 
 P. M. and arrives at Jersey City at 11:15 p. m., making the dis- 
 tance of 87 miles in 4 hours and 25 minutes, or about 20 miles an 
 hour, including numerous stops above Turner's. No. 20, the 
 other train, starts from Pine Island Junction on the Pine Island 
 Branch at 6:55 p. m. and reaches Jersey City at 11:00, covering 
 the 70 miles in about 4 hours at the rate of 17^ miles per hour, in- 
 cluding stops. Milk originating on the Lehigh & Hudson River 
 road and the branches other than the Pine Island is brought to 
 the main line junctions and hauled from thence to the terminal 
 in these trains. Considering the greater number of stops, these 
 trains run at about passenger train speed and usually arrive jn 
 Jersey City " on time." In the operation of the road they have 
 the same rights as passenger trains. 
 
 Seven cars of milk are brought down to Port Jervis daily : 
 Two from the Susquehanna Division, Hornellsville to Susque- 
 hanna ; four from the Delaware Division, Susquehanna to Port 
 Jervis ; one from the JeflEerson or Carbondale branch. This west 
 of Port Jervis milk is carried to Jersey City in milk train No. IS, 
 leaving Port Jervis at 6:50 p. m. The service west of Port Jervis 
 is by passenger train. The ice used is, as a rule, furnished by 
 shippers. The total expense to the company for this item in 1894 
 was only $79.46. It does, however, haul ice for shippers from 
 ponds to their ice houses and creameries at low rates. The com- 
 pany heats the cars in winter when necessary. The icing of can 
 milk shipped from the near-by stations is not permitted by the 
 carrier. 
 
 There are employed in the conduct of the two regular milk 
 trains, the one from Port Jervis and the other from Pine Island 
 Junction, four engineers, four firemen, four conductors, four flag- 
 men, and thirty brakemen ; fourteen brakemen to one train and 
 sixteen for the other, and the engineers, firemen, conductors and 
 flagmen are two to each train. One crew composed of one con- 
 ductor, one engineer, one fireman, one flagman, and seven or eight 
 brakemen, according to the train, makes a round trip and lays off,, 
 another like crew making the next trip. The engineers and fire- 
 men are paid the same as passenger engine men. This is in some 
 cases more than the pay of freight engine men. The conductors 
 on milk trains get $13.00 per month more than freight train con- 
 ductors, and the brakemen are paid the same as brakemen on 
 
MILK producers' PROTECTIVE ASSO. V. DELAWARE, L. & W. R. CO. 35 
 
 freight trains. The milk trains remain at Jersey City until 5 and 
 6 o'clock A. M., when, having been loaded with cans, they return 
 to Port Jervis and Pine Island Junction, making the same stops 
 going back to unload the empties. The returning trains are 
 numbered 17 and 19. The milk train locomotives are heavy and 
 similar to those used on through passenger trains, but while the 
 milk trains require the use of four engines the same four are not 
 exclusively devoted to that business. The cost of the milk car 
 used is about $1,500 ; that of an ordinary box car is about $450. 
 The life of the milk car is about ten years, while that of the box 
 car is stated to average fifteen years. The Erie has 26 milk cars 
 in constant use, but it keeps 11 others on hand at varous sidings 
 to be ready in case of accident or extra demand. 
 
 The company has erected separate stations and platforms exclus- 
 ively for the milk business at a considerable number of points and 
 put in sidings for that traffic at some of the larger stations. There 
 are two large milk platforms at Jersey City, and a third is also 
 used for that business in connection with general traffic. 
 
 13. The estimated cost of transporting the milk and cream busi- 
 ness of the Erie in 1894 is stated to be $108,603.72 of which $26,- 
 971.72 are assigned to the business west of Port Jervis and the 
 remainder, $81,632 to the service east of that point. It does not 
 affirmatively appear that this stated total cost includes all the 
 branch line service east of Port Jervis. Comparison of this cost 
 with estimated cost of doing the business by ordinary freight 
 trains is presented in a statement filed for the Erie in reply to in. 
 terrogatories propounded by complainant. Train mileage and 
 some car mileage were used in the computation. The result 
 reached through such comparison and claimed in the Erie state- 
 ment is that east of Port Jervis the milk traffic could be carried 
 in the ordinary freight service for $18,940.16, as compared with 
 $81,632, the stated actual cost of the present service, and another 
 calculation based on such figures is that the milk traffic as con- 
 ducted costs the carrier 12^ cents per carload per mile, while as 
 ordinary freight such carload would only cost it at the rate of 2.9 
 cents per mile ; in other words, that the transportation cost of the 
 milk traffic east of Port Jervis is about 4J times what it would be 
 if carried as ordinary freight. Besides the stated cost of trans- 
 porting the milk, there is an additional expense of handling at the 
 
36 INTEESTATE COMMERCE COMMISSION. 
 
 terminal which is stated at $11,388 and a milk agent is employed 
 at $3,000 per year. These various items foot up a total transpor- 
 tation cost of $122,990.72, leaving an income over cost of trans- 
 portation and terminal handling of about $361,102.52. The share 
 borne by this traffic of general expenses and maintenance of way, 
 structures and equipment is also to be deducted to arrive at net 
 income from operation. In making up an estimate of total cost 
 of the milk traffic to the road the operating expenses and fixed 
 charges applicable to milk traffic are determined by complainant 
 according to the proportion of the milk tonnage to total tons car- 
 ried, while for the same purpose the carrier adds some claimed 
 terminal expenses to stated cost of transportation and uses the 
 train mileage basis for the remaining operating expenses and fixed 
 charges, resulting in a profit or net income of something less than 
 300 per cent on complainant's theory and about 10 per cent by 
 the carrier's method of computation. 
 
 The expense of running an all-night ferry boat to accommodate 
 milk dealers, claimed by the carrier as an additional item of cost, 
 represents no part of the Erie expense in transporting milk for 
 which rates to Jersey City are charged ; such ferry boat expense 
 relates to a distinct service for which the company is entitled to 
 and does make a separate charge. 
 
 For the lines east of Salamanca fixed charges were apportioned 
 for the year ending June 30, 1894, to the amount of $7,493,307, 
 including interest on funded debt and interest-bearing current lia- 
 bilities, rents for lease of road, taxes, and $9,643 "other deduc- 
 tions." This added to the total operating expenses on all busi- 
 ness amounted to $20,774,610, and exceeded the total gross earn- 
 ings from operation by $692,633. The estimate of cost submitted 
 by counsel for the Erie Company shows, after making deductions 
 for all claimed expenses and for fixed charges, a net profit from 
 milk of $49,726.31. The Erie's estimate of $26,971.72, cost west 
 of Port Jervis, applies to the carriage of about 20 per cent of its 
 milk traffic, and $81,632, stated cost of the milk train service east 
 of that point, applies to the carriage of all the milk business by 
 such trains to Jersey City. Upon this basis the cost of handling 
 a can of milk west of Port Jervis by mixed train service is greater 
 than the cost of transporting a can of milk by regular milk trains 
 east of that point. 
 
MILK PEODUOKES' PEOTEOTIVE A8S0. V. DELAWAEE, L. & W. E. 00. 37 
 
 The foregoing figures pertaining to cost of the milk service are 
 for the calendar year 1894. As the amount of milk business on 
 the Erie for 1893 was a few thousand cans greater than in the 
 succeeding year, and there was no substantial difference in the 
 service rendered, the earnings for the calendar year 1894 were 
 not- greater, and the expense of the milk service was not mate- 
 rially different, than for the year ending June 30, 1894, the fiscal 
 year for which annual reports covering the Erie system are filed 
 with the Commission. 
 
 The total operating expenses for the year ending June 30, 1894, 
 on the Erie lines east of Salamanca, IS". Y. (82 miles west of 
 Hornellsville), were $13,281,303.00, covering general expenses, 
 conducting transportation, maintenance of equipment and main- 
 tenance of way and structures ; and the gross earnings of such 
 lines from passenger, freight and miscellaneous service, including 
 V stockyards and elevators, "^vere, for the same period, $20,08 1 ,977.00, 
 leaving a net operating income of $6,800,674. These operating 
 expenses were 66.14 per cent of the gross earnings. The Erie 
 earnings from milk of $484,093.24 were about 2.41 per cent of 
 the above stated total gross earnings, and such percentage of total 
 operating expenses is $326,079.40. This leaves a net income from 
 operation of the milk traffic of $158,013. 84, on the basis of cost 
 according to the proportion of milk earnings to gross revenue. 
 The use of either train mileage, tonnage or earnings as a basis for 
 estimating cost excludes the other two important items from the 
 calculation. "While the true cost of conducting transportation 
 only by the separate milk trains may be stated with some degree 
 of accuracy, it is impossible to arrive at the actual expense in- 
 volved in the carriage of that commodity from all points of ship- 
 ment, or to determine the share properly borne by milk in total 
 operating expenses or in any statement of fixed charges, and this 
 is true as to any particular kind of traffic. 
 
 Following is a comparison of average rates per ton, rates per 
 ton per mile, car and locomotive earnings, empty car mileage, 
 average number of loaded cars to the train and average load per 
 car for milk and freight traffic generally : 
 
 A. According to the number of cans and cases of milk and 
 cream carried by the Erie in 1894, and the estimated weights of 
 100 lbs. per can of 40 quarts and 70 lbs. per case of 12 quarts, the 
 
38 INTKESTATE OOMMBKOE COMMISSION. 
 
 total Erie milk tonnage was a little less than 95,000 tons, and this 
 divided into the milk receipts of that company for the year gives 
 an average revenue per ton of about $5.10, more than five times 
 the average of 97.767 cents per ton received for the year ending 
 June 30, 1894, on all freight. 
 
 B. The average revenue per ton per mile reported for all 
 freight carried over the Erie line east of Salamanca for the year 
 to June 30, 1894, was 6.30 mills. On the basis of the Port Jer- 
 vis distance of 87 miles, which exceeds the distance haul of the 
 bulk of milk carried by this line, the rate per ton per mile re- 
 ceived for milk at 32 cents per 100 pounds is over 7.35 cents, and 
 doubling the distance on account of service in returning the cans, 
 the rate still yields 3.68 cents per ton per mile, more than 5^ times 
 the average for all freight traffic east of Salamanca. The rate 
 per ton per mile from Hornellsville to Jersey City, 331 miles, is 
 1.93 cents, and applying the rate to the service down and back, 
 the rate per ton per mile for the 662 miles is .966 cents, a little 
 over one and a half times the average received on all freight 
 traffic. 
 
 C. A milk car on the Erie, with an average load, as testified, of 
 156 cans of milk, earns. daily with the engine hauling it $49.60, 
 or $18,104.00 per year, and with such average loading the earn- 
 ings of the 26 milk cars and engines employed were $1289.60 
 daily, equal on that basis to $470,704.00 per year. The actual 
 receipts of the Erie alone, stated at $484,093.24, gives average 
 Erie earnings per car for the year of $18,618.97, and on the basis 
 of the total number of milk cars owned (37 in number), such earn- 
 ings per car in 1894 were $13,083.60. The number of freight 
 cars reported in service for the Erie lines east of Salamanca for 
 the year to June 30, 1894, was 28,431. The balance of car mile- 
 age due and receivable from other companies was in favor of the 
 Erie to the extent of $16,200.60, so that not all of this number 
 of cars may have been in service on these lines. The total freight 
 revenue was $14,963,855.22, and if only half the number of 
 freight cars owned were used on this portion of the system the 
 earnings per car were $1,052.60. 
 
 D. If the return trip of the milk trains is regarded as empty 
 car mileage, such empty car mileage is 50 per cent of the total 
 milk mileage. The proportion of empty freight car mileage to 
 
TklILK PEODUOEES' PEOTEOTIVE ASSO. V. DELAWAEE, L. <fc W. E. CO. 39 
 
 the total freight ear mileage east of Salamanca for the year to 
 June 30, 1894, was 31.70 per cent, and 81.33 per cent of the 
 •empty mileage was west-bound. 
 
 E. The separate milk trains on the Erie, consisting of 13 milk 
 cars each, average Yf tons per car on the basis of 155 cans per car. 
 The average number of loaded cars in a freight train on the Erie 
 ■east of Salamanca in the fiscal year 1894 was 19.29, and the aver- 
 age load per car was 13.44 tons. But these figures do not show 
 i\\e frequency of movement with such loading and number of cars 
 to the train. Each of tlie two milk trains and each of the 26 
 •cars with 7f tons burden moves every day in the year, while the 
 averages given for the freight business generally are made lip 
 from the record of all trains, through and local, fast and slow, 
 regular and special, heavy and light. This, with the amount of 
 rate charged, accounts for the greater yearly earnings per car 
 from milk than from freight traffic generally. 
 
 The revenue from passengers carried on the Erie milk trains 
 in 1894 was $2,868. The amount paid by this company in 1894 
 for loss and damage accruing through its milk service was $21.80. 
 
 Lehigh & Hudson Eivee Kaileoad. 
 
 14. As above stated, the total milk and cream traffic annually 
 ■carried by this road varied but little in amount from 1891 to 1894, 
 inclusive; it increased from 284,465 cans in 1885 to 361,656 cans 
 in 1891, decreased to 359,349 cans in 1892, and the amount in 
 1894 was 362,677 cans. All milk and cream on this road destined 
 for the New York market goes via Greycourt, E". Y., and the 
 irie. The Lehigh & Hudson Eiver milk receipts in 1894 
 jmiounted to $45,773.68. The train which collects milk at the 
 •different stations, carries it to Greycourt, and returning distributes 
 the empty cans at the several stations, also carries dressed meat, 
 butter, and other commodities, passengers, mail and express. As 
 apportioned by the road, its revenue for this train from these 
 additional items amounted in 1894 to $10,609.15. The most dis- 
 tant point from which milk was brought in that year was Great 
 Meadows, N. J., about 51 miles from Greycourt. There are 
 -three or four stations on the Orange County Kailroad branch 
 east of Greycourt. Over half of the 1894 milk revenue of 
 this road was derived from traffic shipped from points in 
 
40 INTEESTATE COMMEKCE COMMISSION. 
 
 New York State, the most distant of which, New Milford, is- 
 13 miles from Greycourt. No attempt to approximate the cost 
 of doing the milk business other than by train mileage average 
 has been made. The president of the company testified to th& 
 effect that milk is among the most profitable articles carried by 
 his road. The average revenue per ton received by this company 
 on all freight for the year ending June 30, 1894, was 43.042. 
 cents, and the average received per ton for all milk, computed 
 from total cans carried, is about five times the amount received 
 per ton on all freight. 
 
 In the year to June 30, 1894, the proportion of empty freight 
 car mileage to total loaded and empty freight car mileage was 
 over 39.27 per cent, and over 95 per cent of this empty car mile- 
 age was west-bound. The average number of loaded cars in a train 
 was 12, and the average load per car was 15 tons. This road, like 
 the Erie branches in Orange County, was built from Greycourt 
 with main reference to the milk business. It extended first to- 
 Warwick, N. Y., and was known as the "Warwick Valley R. R. 
 In 1879 the road ran to McAfee, IST. J., and in 1882 to Belvidere. 
 the present western terminus. Milk is still one of its principaf 
 articles of traffic, yielding in the year to June 30, 1894, over 10' 
 per cent of the total freight I'evenue, though milk and cream con- 
 stituted but 2.18 per cent of the tonnage. About $14 was paid 
 for spilled milk or other loss through milk transportation by this 
 company in 1894. 
 
 Susquehanna Line. 
 
 15. For the year 1894 the total milk revenue of this road waS 
 $208,403.19, of which about $81,314.51 arose from traffic shipped 
 at stations in New York State. These stations are all on the 
 short branch to Middletown, N. Y., which is 88 miles from Jer- 
 sey City by this line. About 65 per cent of the milk shipped 
 from New York points and carried by this line through New 
 Jersey is delivered in New York City. The other 35 per 
 cent is delivered at Jersey City. Some other traffic, small 
 in amount, is carried by the milk trains, but what kind or 
 the revenue derived therefrom is not shown ; 2,160 passengers, 
 paying $420.60, were carried on milk trains during the year end- 
 ing June 30, 1895. No statement of the cost of operating the 
 
MILK PEODUCEKS' PEOTEOTIVE ASSO. V. DELAWARE, L. & W. E. CO. il 
 
 milk train is given, except an estimate based on stated percentages 
 of operating expenses as applicable to all freight transportation 
 and to milk alone, and the addition of one third thereto for extra 
 expense in running this milk train. The road had no extra ex- 
 pense for ferry boat service to accommodate receivers of milk. 
 The company paid for loss and damage claims to shippers and 
 consignees of milk and cream in 1894 about $2,921.58. All the 
 milk cars are iced when necessary at Two Bridges, !N. J., and the 
 company paid $600 for milk car icing in 1894. The milk car 
 costs from $1,200 to $1,700 and the ordinary box car about $450 
 or $500. About $150 per car was expended for milk ear repairs 
 in 1894. The company built no creameries in New York in that 
 year, but did erect two in New Jersey ; 43.10 per cent of the 
 total car mileage was empty, and 95 per cent of the empty mile- 
 age was west-bound. The average number of loaded cars in a 
 freight train was 30, and the average load per car was 18 tons. 
 The average receipts per ton from freight generally in that year 
 were 77.241 cents. The milk and cream carried, a large portion 
 of which was bottled, is computed at a little less than 45,000 tons, 
 and with such tonnage the average milk revenue per ton for the 
 year 1894 was $4.63, or about six times the revenue per ton on all 
 freight. The milk rate to Jersey City also applies on shipments to 
 intermediate stations. 
 
 Ontaeio ife Westben. 
 
 16. This company carried to Weekawken in 1894, as reported 
 by it for this case, 1,164,848J cans of 40 quarts of milk, cream 
 and pot cheese. The latter item amounted to 2,918 cans, on 
 which its revenue was $933.76. There were 1,110,037 cans of 
 milk and 51,893|^ cans of cream. This includes 145,590 cases of 
 bottled milk, equivalent to 45,664J- cans, or 3.92. per cent of the 
 whole amount carried. The total revenue for carrying was 
 $381,186.55. The gross revenue on the traffic shipped from 
 Ontario & "Western stations was $365,489.58. The remainder 
 was for shipments received from the Philadelphia & Keading and 
 New England at Campbell Hall, amounting to $12,382.40 ; and 
 from the Port Jervis, Monticello & New York road at Summit- 
 ville, amounting to $3,314.79. The 32-cent milk rate is divided 
 as follows : Ontario & Western 15 cents; Philadelphia, Eeading 
 
42 INTEESTATB COMMERCE COMMISSION. 
 
 & New England 17 cents ; Ontario & Western 18| cents; Port 
 Jervis, Monticello & New York 13 1 cents. 
 
 The Ontario & Western milk traffic south of, and including 
 Bloomingburgh, 88 miles from Weehawken, and that received 
 from the Philadelphia, Reading & E'ew England connection at 
 Campbell Hall, consisted in 1894 of 175,119f cans, and the 
 revenue from this was $56,562.35. The cans received south of 
 Middletown, 78 miles from Weehawken, are stated in evidence 
 to be about 200 cans a day. Cornwall, the station nearest to 
 Weehawken, is 52 miles from that terminal, and the distance be- 
 tween Cornwall and Middletown is 26 miles. The company's 
 detailed statement of the milk traffic and revenue shows that 
 such revenue from stations south of Middletown and covered by 
 this' 26 miles was about $42,128.90, and that the number of cans 
 received at said stations was 130,659^, equal to about 358 cans 
 per day. Exclusive of milk received from the Philadelphia, 
 Reading &. New England connection, the number of cans shipped 
 from such stations was about 253 per day. 
 
 The total milk receipts from main line stations, Cornwall to 
 Kenwood, the distance between being 212 miles, were $253,841.62, 
 leaving $127,344.93, or about 33-|- per cent for the businfess from 
 branches and connections. All of the branch line milk is long 
 distance traffic : 
 
 Scranton branch, Como, 173 miles, to Belmont, 178 miles $ 9,390.89 
 
 Delhi branch, Colchester, 183 miles, to Delhi, 196 miles 38,039.08 
 
 New Berlin branch. Pine Grove, 207 miles, to Edmeston, 233 miles 56,968.95 
 Utica division, Hamilton, 246 miles, to Deanville, 267 miles 6,315.28 
 
 Total from branch lines _ $110,714.20 
 
 This added to the main line business north of Bloomingburgh, 
 and the traffic received from the Port Jervis, Monticello & New 
 York connection at Summitville, 93 miles from Weehawken, 
 gives a total revenue on milk business from points north of 
 Bloomingburgh— exceeding 88 miles and up to 264 miles distant — 
 of $323,690.44, nearly 85 per cent of the total milk revenue. 
 
 The Ontario & Western has two milk trains, composed of 12 
 or 13 cars each, until Cornwall is reached, at which points the 
 trains are consolidated. The milk is delivered at Weehawken at 
 about 11 p. M. One train starts from Oneida, 267 miles from 
 
illLK PRODUCEES' PEOTEOTIVB A8S0. V. DELAWARE, L. & W. E. 00. 43 
 
 Weehawken, and picks up milk on the main line stations, includ- 
 ing;, that from the Utica division at Randallsville, down ag far as 
 "Walton. The other train starts from New Berlin or Edmeston 
 on the JSTew Berlin branch. Traffic from the other branches' is 
 brought to the main line by loCal mixed trains. North of Mid- 
 dletown the grades are heavy, ranging from 65 to 80 feet to the 
 mile, and for the heaviest a second engine is required. Prior to 
 March 1, 1894, no separate account was kept of the earnings from 
 commodities other than milk, cream and pot cheese carried on 
 milk trains. For the succeeding ten months such earnings were 
 $3,368.13, and for the year to March 1, 1895, they were $4,060.30. 
 The amount of these earnings for the calendar year 1894 was not 
 far from $4,000. The pas^senger receipts are estimated at about 
 $6,363. These items added to $373,236.11, the Ontario & West- 
 ern milk earnings exclusive of payments to connections, amount 
 to $383,599.11, but this includes some mixed train milk service 
 on branch lines. The company reports the total Ontario & 
 Western earnings of the milk trains proper at $377,194.00, cover- 
 ing passenger, express and all freight carried on such trains. The 
 cost of tliese trains is estimated by dividing the number of all 
 train miles run into total operating expenses for the year ending 
 June 30, 1894, multiplying the total milk train miles run by the 
 average expense per mile for all trains, and adding thereto .0829 
 cents per milk train mile, equal to $25,532.62, as extra expense 
 of milk train crews, ice, milk collectors' force, heating cars and 
 milk agents' salary. This estimate amounts to $313,844.87, or 
 83.20 per cent of the stated milk train earnings, and leaves a net 
 income from operation of $63,349.13. The total operating ex- 
 penses used by the company included taxes, but in the reports of 
 railroads to this Commission that item is placed under the head 
 of fixed charges. The gross earnings of this company from oper- 
 ation in the fiscal year 1894 were $3,842,119.63. The total oper- 
 ating expenses, including general expenses, niiaintenance of way, 
 structures and equipment and conducting transportation were 
 $2,624,426.09, The percentage of the stated milk train earnings, 
 $377,194.00, to such gross earnings was about 9.81 per cent; such 
 percentage of total operating expenses leaves, on this basis, a net 
 operating income frona its milk trains of $119,737.80. The extra 
 expense item of $25,532.62 above mentioned includes $7,152.59 
 
ii INTERSTATE COMMEEOE COMMISSION. 
 
 for ice and heating of milk cars, the milk being iced from all sta- 
 tions. Icing points are Oneida, Utica, Hamilton, Norwich, Ed- 
 meston, New Berlin, Living "Waters, Delhi, Belmont (long-dis- 
 tance points), and Fallsburgh and Middletown. The amount 
 used in each car is about 3,000 lbs. Another expense included 
 in the stated extra cost is tha't for " milk collectors' force," the 
 meaning of which is not explained in testimony. This is given 
 at .0278 per milk train mile, equal to $8,562.20. 
 
 The company has built 16 creameries at a cost of $32,498.46r 
 and 16 ice houses costing $10,187. There are about 75 creameries 
 on the line. The loss and damage account in 1894 on milk 
 amounted to only $6.58, but $177.96 was paid to a can collector 
 for his services in looking up missing cans. The company 
 reported 39 milk cars in service in the year to June 80, 1894, and 
 the testimony is that the number in 1 895 was 44. Besides those 
 used daily in milk trains, a number are kept ready at convenient 
 points for extra demand, but during the season of lighter traifie 
 10 or 12 of the cars and one engine assigned to the service are laid 
 up. The company's cost for milk car repairs in 1894 was $9,513- 
 .48, or $250.34 for each of 38 cars. The car and engines are sim- 
 ilar in kind and size to those used on the Erie. The receipts per 
 car in 1894 were somewhat less than the milk car receipts of the 
 Erie, but the daily average for each car in use was far in excess 
 of the average daily earnings of the ordinary freight car in the 
 company's service. The company has 6,047 freight cars. For 
 the fiscal year 1894 the balance of car mileage was against it to 
 the amount of $51,756.39. The total freight revenue was 
 $2,997,011.22, and if only half the number of cars owned were 
 used in freight service on the road, the annual earnings per car 
 were not quite $1,000, while the Ontario & Western milk train 
 earnings in 1894 divided by a total of 44 milk cars owned gave a 
 revenue per car for the year of- $8,572.59, and with 13 cars for 
 each of the 2 milk trains, the earnings per car for 1894 were 
 $14,507.46. The average freight revenue per ton per mile was a 
 little over 9 mills (9.12), while the milk rate per ton per mile from 
 Kenwood, the longest distance point, is over 2.42 cents. Doub- 
 ling the distance for return can service it would still be 1.21 cents. 
 The average rate per ton per mile actually received from milk 
 business based on the tonnage and actual distance hauled was 
 
MILK PEODUOEES' PEOTECTIVE ASSO. V. DELAWAEE, L. & W,. E. CO. 45 
 
 much greater. The empty freight car mileage on the Ontario & 
 Western during the year ending June 30, 1894, was 44 per cent 
 of the total freight car mileage, and about 45.45 per cent of the 
 empty mileage was west-bound. The average number of cars in 
 -a train was 10.09, and the average load per car was 17.6Y tons. 
 As above stated, the two milk trains average 12 or 13 cars each, 
 and these trains are consolidated at Cornwall, 52 miles from Wee- 
 hawken. The milk tonnage in 1894 was about 60,000 tons, and 
 this divided into the Ontario & Western receipts gives $6.22 rev- 
 •enue per ton. This is about five times $1.24649, the average 
 revenue per ton received on all freight in the year ending June 
 30, 1894. Less than 4 per cent of the trafiic was shipped by the 
 heavier bottle or case method. The company furnishes free 
 transportation to dairymen. In 1895 the Ontario & Western milk 
 traffic was only about 264,000 cans less than was carried by the 
 Erie, but the cost of doing the business on the Ontario & Western 
 is greater than on the Erie, mainly because of the much greater 
 distance traveled by the Ontario & Western daily milk train, the 
 great bulk of this company's milk being shipped from long dis- 
 tance points, while that of the Erie comes from the near-by region 
 and its more distant milk is brought to Port Jervis by mixed serv- 
 ice. The Ontario & Western daily milk trains run over distances 
 three times greater than milk train distances on the Erie, and the 
 same rate is charged on both roads. 
 
 Lackawanna Line. 
 17. The milk and cream brought by this line is mostly deliv- 
 ered at Hoboken. A comparatively small amount consigned to 
 N^ewark, N. J., is first transported to Hoboken. Three regular 
 milk trains run daily from Binghamton, N. Y., and another 
 starts from Scranton, Pa. Binghamton is 206 miles and Scranton 
 144 miles from Hoboken. These trains average about eight cars to 
 the train. The loading for the three trains on leaving Binghamton 
 is milk brought to that point from the TJtica & Syracuse divisions 
 and by milk cars attached to passenger trains. The Delaware & 
 Hudson milk is brought by that road to Binghamton. Four or 
 five trains carry milk to Binghamton, and the milk cars are there 
 drilled into the three trains mentioned. These milk trains run at a 
 speed of about 35 miles per hour, including stops. The line runs- 
 
46 INTEE8TATE COMMERCE COMMISSION. 
 
 through a mountainous region east of Scranton to Delaware Water 
 Gap, and an extra engine is used to surmount the heavy grade on 
 that portion of the line. Thie deliyery service at Hoboken is sim- 
 ilar to that performed by the Erie. 
 
 In 1894 the total milk traffic of the Lackawanna was about the 
 same in amount as that on the Erie, yet all the Erie milk and 
 cream bnsiness was hauled to Jersey City in two milk trains, while 
 four daily trains were employed in taking the Lackawanna milk 
 and cream to Hoboken. 
 
 The total amount of milk and cream carried by the Lackawanna 
 in 1894, expressed in cans, is put at 1,649,'733 cans by the " Milk 
 Reporter " (6th finding). Analysis of the statement filed for the 
 company setting forth this traffic by stations and months for that 
 year shows the following : 
 
 1,238,180 cans of milk at 32fS... _ _ $396,217.60 
 
 330,418 cans of milk (9,316,709 bottles shipped in cases) at 33(«... 73,733.67 
 30,863 cans of cream at 50ii ' 15,431.00 
 
 1,499,460 cans. Total, $485,382.27 
 
 To this is to be added a small quantity of bottled cream and 
 earnings from miscellaneous cans and cases of various sizes 
 amounting in all to about $1,691.67, making a total milk revenue 
 $487,073.94. The butter and cheese revenue from carriage in 
 milk trains amounted to about $3,299.59, thus increasing the total 
 milk train revenue to $490,373.53. This is only $742.16 greater 
 than the total milk earnings given in evidence and stated in 
 briefs of counsel to be $489,631.37. Passengers are carried on 
 some of the milk trains, but the revenue for this service is not 
 given. The difference between the total milk revenue of the 
 Erie and that of the Lackawanna for 1894, about $34,000, is ac- 
 counted for to some extent by apparently somewhat less volume 
 of traffic, and slightly lower rates on a small amount of milk to 
 !N"ewark from New Jersey points, but principally by the much 
 greater quantity of cream carried by the Erie in that year. 
 
 18. From the Lackawanna statement filed it appears that in 
 1894 about 7 per cent of the total Lackawanna milk revenue 
 arose from shipments at points in New Jersey and 80 miles or less 
 from Hoboken. All the remainder came from shipments at 
 places 136 miles up to 310 miles from Hoboken, and a little at 
 
MILK PEODUOEES' PEOTEOTIVE ASSO. V. DELAWAEB, L. & W. E. 00. 47 
 
 Leicester, N. Y., 354 miles. About 10 per cent of the total reve- 
 nue was from shipments in Pennsylvania, and, approximately, 83 
 per cent was collected on traffic originating beyond Binghamton, 
 ]Sr. Y., 206 miles from Hoboken. A little less than 2 per cent 
 came from the Elmira, Cortland & JSTorthern connection, and ' 
 about 13^ per cent from the Delaware & Hudson, including the 
 Cooperstown & Charlotte Yalley traffic, which is first delivered 
 to the Delaware & Hudson. The remainder arose from ship- 
 ments mostly upon the Syracuse & Utica Division, including the 
 Kichfield Springs Branch. The rates are divided with connec- 
 tions as follows : Elmira, Cortland & Northern, 10 cents a can, 
 whether milk or cream ; Delaware & Hudson, 42 per cent. A 
 can of milk from the Elmira, Cortland & Northern is carried by 
 the Lackawanna for 22 cents from Cortland, N.> Y., 259 miles, and 
 if the can comes from the Delaware & Hudson at Binghamton, 
 the Lackawanna receives 18.56 cents for carriage from Bing- 
 hamton. 
 
 19. Under a contract now in force between the Lackawanna 
 Company and Bobert E. Westcott, of New York City, "Westcott 
 has charge of the milk and cream business on the Lackawanna 
 line, and by the terms of the agreement he receives 20 per cent of 
 the gross receipts. This contract, bearing date July 9, 1886, pro- 
 vides that it shall continue in force ten years, subject to revision 
 after three years, and at the end of any one year thereafter, on three 
 months' notice. Mr. Westcott sent the following request to the 
 company on November 25, 1887 : " I have established 12 cream- 
 eries up to this date on different points of the road, and propose 
 still further materially increasing the number, but before doing 
 so must ask whether section 12 of my contract with your com- 
 pany may be modified, striking out the option of revision after 3 
 years and substituting '5 years from this date' instead, as the 
 construction of buildings, likely to be 35 to 50 additional and 3 
 large ice houses, will not admit of my being subject to the revi- 
 sion as now contained in the contract." It was thereupon agreed 
 in writing by the parties on November 28, 1887, that the revi- 
 sion clause should not take effect until 5 years from this date in- 
 stead of the 3 years in section 12 of the contract, "it being under- 
 stood the number is increased to at least 20." On September 30, 
 1892, about 5 years later, the parties agreed in writing that the 
 
48 INTERSTATE COMMERCE COMMISSION. 
 
 duration of the contract should be extended until July 9, 1901. 
 On April 1, 1872, Robert F. Westcott, father of Robert E., en- 
 tered into a contract with the Lackawanna to " increase, facili- 
 tate, build up and develop the transportation of milk over the 
 Morris & Essex Railroad " (a division of the Lackawanna in New 
 Jersey). It was provided in that contract that the. milk rates 
 charged shall be from time to time " fixed by said Robert F. 
 Westcott subject to the approval of the president of the railroad 
 company," but not to exceed 55 cents per can of 40 quarts, and 
 "Westcott's compensation under that contract was also 20 per cent 
 of the transportation charge. This contract ran 5 years, was 
 extended for 5 years longer, and then extended to April 25, 
 1884, " so as to expire with a similar contract of Sussex Rail- 
 road," another portion of the Lackawanna system in New Jer- 
 sey. In March, 1884, two new contracts were made by the elder 
 Westcott, one with the Sussex Railroad Company and another 
 with the Lackawanna, each to run 5 years from February 1, 
 1884. Under this contract with the Lackawanna, Westcott was 
 to develop and handle milk traffic on the Morris & Essex and on 
 the Lackawanna from Stroudsburg, Pa., fix the rates subject to 
 approval by the president, and receive 20 per cent of the charges. 
 Afterwards, in July, 1886, the present contract with the younger 
 Westcott was made whereby he agrees " to use his best efforts 
 and efficiently do and cause to be done all within his ability to 
 build up, develop, increase, facilitate and conduct the business of 
 transportation of milk over all the lines of the party of the sec- 
 ond part, whether owned, controlled or leased by it," and to 
 '' charge for the transportation of such milk rates not in excess 
 of those charged by competitive railroads for similar service." 
 Westcott under this agreement is responsible for loss and damage 
 ■claims connected with the milk business, excepting such loss and 
 •claims as may arise through accidents or casualties to the train or 
 negligence of the company or its employees. He collects the 
 freight charges and pays 80 per cent thereof to the company, re- 
 taining the remainder as full compensation for all his services, 
 and renders a monthly account. He also undertakes to save the 
 company harmless from all liability for loss of life or injury 
 to "any of the persons doing business over the lines of the 
 party of the second part (company) for or on account of the 
 
MILK PEODtJCEEs' PROTECTIVE ASSO. V. DELA.WAEE, L. & W. E. 00. 49 
 
 party of the first part" (Westeott). The railroad company 
 undertakes that it will not do or permit to be done by its agents 
 or servants any act which will prevent or interfere with West- 
 eott in developing, building up and conducting said business, and 
 grants him " the exclusive privilege of transporting milk over its 
 said lines " so far as it is permitted so to do by law. It agrees 
 to receive, load and transport from all its said stations all the 
 milk furnished at said stations upon a train or trains leaving the 
 same severally at such time or times as may be best calculated to 
 promote the business ; to run an extra train upon application to 
 and at the option of its president and general manager ; to re- 
 ceive milk at stations not served by milk trains and transport the 
 same on passenger trains, have its agents at such stations collect 
 the charges,' waybill the milk, and ship it in the baggage car of 
 such trains, the baggage master to take the same on the car and 
 put it off therefrom ; to furnish depot accommodations at stations 
 where milk trains run for the convenient conduct of the business; 
 to render such assistance to the "messengers" of Westeott upon 
 the milk trains by its train hands as may be necessary for the 
 prompt loading and unloading of milk from the trains ; to 
 promptly retransport and return empty milk cars to the several 
 stations ; to accept 80 per cent of the charges as full compensa- 
 tion for all claims against Westeott for service rendered by it, 
 including the free transportation of Westcott's agents and mes- 
 sengers engaged in the milk business. Arbitration is provided 
 for in case of differences arising between the parties as to matters 
 connected with the contract or the business therein referred to. 
 The contract only refers to milk, but it appears that Westeott 
 also handles cream, butter and cheese. He also gets 20 per cent 
 from the revenue of the Lackawanna connections. . His compen- 
 sation for 1894 out of $489,631.37, the total earnings; amounted 
 to $97,926.27. His expenses during that year were about $78,000, 
 but what portion of this was spent in the erection of creameries 
 and otherwise " developing " the business and what expenses in- 
 cident to handling, transportation and delivery of milk were 
 actually incurred by him are not definitely shown. Westeott has 
 built about 100 creameries on the line. This creamery cost in 
 1894 is stated at about $35,000, but the creameries are mostly 
 sold to dealers and other outside parties, and they yield some re- 
 4 
 
50 INTERSTATE COMMEECE COMMISSION. 
 
 turn. The remaining $43,000 of expenses includes some loss on 
 ice furnished to shippers, traveling expenses of milkmen whom 
 he induced to go out into Lackawanna territory, and other items 
 which do not pertain directly to transportation. His salary ac- 
 count for superintendents, messengers on trains and employees at 
 the terminal was about $30,000. The item of damages paid for 
 spilled milk, lost through delays or accidents and similar causes, 
 is trifling in any year. "Westcott obtains and furnishes free passes 
 to milkmen entitling them to transportation over the Lackawanna 
 and connections to points in the milk territory. The passes are 
 countersigned by him and not good otherwise. The Lackawanna 
 receives and transports the milk, pays all train expenses, cleans 
 the cars, and its agents do the billing, waybills being sent to 
 Westcott. Westcott ices the milk cars when the season requires. 
 His duties in reference to transportation appear to be refrigerat- 
 ing the cars, furnishing one or more messengers on each train, 
 doing all the terminal milk business, including handling and de- 
 livery, looking after empty cans and securing their prompt re- 
 turn, collecting the freight, keeping an account thereof, paying 
 over 80 per cent to the company, and paying loss and damage 
 claims not chargeable to the company under the contract. Under 
 the figures above given, the cost to Westcott was apparently little 
 if anything in excess of $40,000 in 1894, leaving about $58,000 for 
 "developing" the business and his profit. 
 
 Westcott operates individually under the title of " Produce 
 Despatch," but that is a name merely. It is not an express com- 
 pany, nor is the business done by Westcott analogous to that of 
 such a company. All of the duties performed by him in connec- 
 tion with this special fast freight business are done by the other 
 defendant lines (except the Lehigh Yalley) for themselves. He 
 neither gathers the milk at the farms nor delivers it to dealers' 
 places of business in New York. The railroad company, on ac- 
 count of the volume of the traffic, furnishes trains for a business 
 which when small in amount is usually done by other carriers in bag- 
 gage or other cars in passenger trains. Concerning the transporta- 
 tion and delivery at the railroad terminal, he is an agent of the rail- 
 road company,and for this and for developing the Lackawanna milk 
 traffic he receives the compensation stated. Westcott is author- 
 ized by the company in the present milk contrast to fix the rate 
 
MILK PEODUOEKS' PEOTECTIVE ASSO. V. DELAWAKE, L. & W. E. 00. 51 
 
 from all stations tinder the sole limitation that such rates shall not 
 be greater than "those charged by competitive railroads for 
 similar service." It was Westcott who at a meeting of agents in 
 relation to the milk rate insisted upon the reduction from 35 to 
 32 cents, and his action was finally assented to by the other lines, 
 but notwithstanding his contract authority Westcott did not make 
 this reduction on the Lackawanna until it had received the ap- 
 proval of the president of that company. 
 
 20. After deducting Mr. Westcott's 20per cent, there remained of 
 total earnings in 1894 on milk carried on the Lackawanna line about 
 1391,705.10. On the basis of train mileage the assistant auditor 
 of the company testified that the share of total operating expenses, 
 including taxes, chargeable against the milk business, for the cal- 
 endar year 1894 was 3.13 per cent, amounting to $478,754.28. 
 This is within $10,877.09 of the sum given as total milk earnings. 
 Counsel for the company in their brief also use the train-mileage 
 basis and compute cost of transportation and maintenance at 
 $327,147.54, leaving out of this item Westcott's 20 per cent, 
 and such operating expenses as the milk trafiic share of gen- 
 eral expenses and of station expenses outside of Hoboken. The 
 difference between such cost and the Lackawanna milk earnings 
 is $162,483.83, and deducting therefrom the amount paid to Mr. 
 Westcott leaves a balance of $64,557.56 for the omitted expenses ' 
 and the company's profit from operation. 
 
 The average Lackawanna receipts per ton from freight in the 
 year ending June 30, 1894, were $1.3031. It is testified that the 
 average load for each milk car to Hoboken was 8 tons, and that 
 8 was the average number of milk cars to the train, making a 
 train load of 64 tons and 256 tons for the 4 daily trains to Ho- 
 boken, or 93,440 tons for the year. Dividing such estimate of 
 total tonnage into gross receipts results in a milk revenue per ton 
 of about $5.24, four times the average receipts per ton for all 
 freight. For the fiscal 3'ear to June 30, 1894, the average num- 
 ber of tons in each loaded freight car on the Lackawanna was 16; 
 the average number of tons to the train was 575; the average 
 number of freight cars in a train was 30; the average number of 
 loaded cars in a train was 25, and the average for empties was 22. 
 About 43 per cent of the total car mileage was empty. 
 
52 interstate commerce commission. 
 
 Lehigh Yallet Line. 
 
 21. From a detailed statement prepared by officers of the com- 
 pany for this case, it appears that in 1891 the Lehigh Valley car- 
 ried to Jersey City from points west of the New Jersey State 
 line, — namely, stations in Pennsylvania and New York, — about 
 75,717 cans of milk, 1,639 cans of cream and 311,752 bottles of 
 milk, equal to about 7,794 cans, amounting in all to 85,150 cans, 
 on which the total freight revenue was $27,574.49. The amount 
 of milk traffic from stations in ISTew Jersey to Jersey City is not 
 given. The number of cans shipped from points outside of IsTew 
 Jersey is about 69 per cent of the amount published in the "Milk 
 Reporter" (6th finding) as the total cans carried for the New 
 York market by this company in that year. Of the freight rev- 
 enue above mentioned, f 21,282.35 was earned on shipments from 
 main line points in Pennsylvania, 195 miles or more from Jersey 
 City (except about $347 from one station 94 miles out), and about 
 $591.86 arose from shipments on the Montrose Railway in Penn- 
 sylvania, which connects with the main line at Tunkhannock, 206 
 miles from Jersey City. The remainder, $5,700.28, was paid on 
 shipments from points in New York State. As shown in the 6th 
 finding, the number of cans carried by this line in 1895 was 
 
 . greater than in the year preceding by nearly 49,000. This com- 
 pany's aggregate milk revenue in 1894 on shipments to all desti- 
 nations and from all points on its line was $134,248.74. This is 
 understood to include milk carried to Philadelphia and between 
 local stations. The other freight traffic carried in milk trains 
 consisted chiefly of butter and eggs, which were charged 35 
 cents in 1894 as against the regular rate of 30 cents for ordinary 
 service. The butter and cheese rate on milk trains is now 38 
 cents. About 17,024 pounds of butter and eggs were carried to 
 Jersey City in 1894, yielding a revenue at the 35 cent rate of 
 about $5,958.40. The passenger business on the milk train is 
 not stated. 
 
 22. In 1890 the Lehigh Yalley entered into a contract or agree- 
 ment with Andrew P. Bedford and Arthur J. Stone, doing busi- 
 ness as the Farmers' Dairy Despatch, for the development or 
 building up by them of the milk traffic over its line. This was 
 superseded by another conti-act in 1892 entered into by the fol- 
 
MILK PEODUCEES' PEOTECTIVE ASSO. V. DELAWAEE, L. & W. E. CO. 53 
 
 lowing parties : The Farmers' Dairy Despatch, which had be- 
 come a corporation and had succeeded to the rights of Bedford & 
 Stone under the first agreement ; the Easton & Amboy Eailroad 
 Company, part of the Lehigh 'Valley system ; tl]e Lehigh Yalley 
 Railroad Company ; and the Philadelphia & Eeading Railroad 
 Company, at that time lessee of the Lehigh Yalley. By its terms 
 this contract is to run until May 1, 1906. Daily milk 
 trains are provided for between the various shipping sta- 
 tions and Jersey City and Philadelphia. The compen- 
 sation of the Despatch is fixed at 20 per cent of the rate 
 of 45 cents per can of milk charged to Philadelphia, 
 and 25 per cent of the rate charged on shipments of milk and 
 cream to points in New Jersey, making, as figured in the con- 
 tract, 9 cents per can of milk to Philadelphia and 8 cents out of 
 the 32-cent rate to Jersey City. After May 1, 1897, the percent- 
 age of the Despatch Company is to be 20 per cent of the freight 
 charge to Jersey City as well as to Philadelphia. A percentage 
 similar to that allowed on Jersey City shipments is provided for 
 on milk between local stations, subject to revision by the parties 
 or in case of disagreement by arbitration. The shipment of but- 
 ter, cheese, eggs and other dairy products besides milk and cream 
 is permitted in refrigerator cars, the Despatch Company paying 
 the regular published rates therefor. All shipments of milk 
 and cream are to be carried in refrigerator cars furnished by 
 the railroad company and specially fitted for the purpose. The 
 Despatch Company acts merely as a contractor to solicit 
 and to procure the transportation of milk, and is not to own 
 or purchase any part 'of the milk carried, or pay transportation 
 charges thereon, or have any interest in the traffic whatever. 
 The Despatch agreed to erect milk depots, creameries and ice 
 houses at its own expense, furnish ice needed for the cars, and 
 provide the milk cans and fixtures necessary to carry on the busi- 
 ness ; but the railroad company contracts to furnish ground for 
 the erection of milk depots, creameries and ice houses at a nominal 
 rent, as well as suitable and convenient terminal facilities. It is 
 also provided in the contract that the Despatch shall be entitled 
 to have from each of the railroad companies a reasonable supply 
 of trip passes for milk dealers to visit the creameries located on 
 the line, but " that such passes shall' only be good for use between 
 
54 INTERSTATE COMMEECE COMMISSION. 
 
 points within the same State." The lease to the Philadelphia & 
 Reading has been terminated, and the line is now again operated 
 by the Lehigh Yalley Company. Up to the time of hearing 
 about 40 creameries had been erected by the Despatcli. The 
 secretary of the Despatch testiiied that under the arrangement 
 the Despatch takes and develops the milk business of the Lehigh 
 "Valley, builds all the creameries and ice houses, tills the ice 
 liouses, cleans all the cars, and is at all the expense except tlie 
 proper railroad business ; that the cars are of the refrigerator 
 class, and are owned by " the Dairy Car Company," some of the 
 officers of which are officers of the Despatch, and the cars are 
 leased to the Lehigh Valley. These cars cost about $2,600 each. 
 The road runs the train, furnishes the crew, loads and unloads 
 the milk. The milk rates are not to be higher than those on 
 other railroads engaged in the traffic. Up to the hearing the milk 
 rate to Philadelphia was still 45 cents a can, the Jersey City rate 
 from the same points being 32 cents. 
 
 The total mileage of all milk trains on the Lehigh Yalley in 
 1894, carrying to all destinations, was 324,696, and the earnings 
 per train mile were about 41.3 cents. This includes the higher 
 earnings to Philadelphia. The earnings per train mile on general 
 business were about $1.30 for the year ending June 30, 1895. 
 The Lehigh Yalley did not begin to extend its milk business until 
 1890, and its general freight agent testified that it had " proved a 
 big loss up to 1894." The increase in the milk carried by this 
 line to Jersey City in 1895, over that so carried in 1893, did not 
 exceed, as appears by the 6th finding, 100,000 cans. Another 
 witness in the company's employ testified that the cost of moving 
 a milk train is not less than 35 cents per train mile. The cost of mov- 
 ing the milk traffic on the Lehigh Yalley in 1894 was estimated by 
 the same witness at $107,823. 00. Deducting 20 per cent of the 
 1894 milk revenue for the Dairy Despatch (it gets 25 per cent on 
 business to Jersey City) leaves the carrier $107,398.99 for its ex- 
 pense, not merely of moving the train, but also for maintenance 
 of way, structures and equipment and general expenses. To this 
 should be added the miscellaneous milk train revenue derived 
 from transporting eggs, butter, cheese, vegetables and passengers. 
 The company's average receipts per ton on all freight in that year 
 were $1.0522. The average' receipts per ton from the milk car- 
 
MILK PEODnCEEs' PEOTEOTITE ASSO. V. EELAWAEE, L. & W. E. CO. 55 
 
 ried from Pennsylvania and New York stations to Jersey City 
 Avere about six times the average ton revenue for all freight, but 
 compared to that of the other defendant roads delivering milk at 
 New Jersey terminals the Lehigh Valley milk tonnage to Jersey 
 City was very small, amounting, on the basis of 85,150 cans, to 
 only about 4,258 tons. 
 
 "West Shore Line. 
 
 23. Of the milk traffic carried by the West Shore to Weehaw- 
 ken practically all is delivered to it at Kingston, I:^. Y., by the 
 Ulster & Delaware and by the Wallkill Yalley, a road operated 
 in close affiliation with the "West Shore. A special milk train is run 
 from Kingston, 88 miles, to Weehawken. The "West Shore and 
 Ulster & Delaware each furnishes one half the car equipment 
 for their route. The train leaves Kingston about 9 o'clock in the 
 evening and arrives in Weehawken at 11 p. m. The milk service 
 on this line is similar to that of the Erie and Ontario & Western. 
 It is claimed for the West Shore that a ferry boat is run during the 
 night at a daily loss of about $25, which would be unnecessary if 
 the boat were not needed for the accommodation of New York 
 milkmen. This ferry carries the Ontario & Western as well ,as 
 the West Shore milk. The ferry service is distinct from the 
 transportation by rail, and a separate charge is made for such 
 service. A carload of butter per day for JSTew York City has at 
 times been received from the Ulster & Delaware and hauled in 
 the milk train from Kingston to Weehawken. It appears that 
 this butter traffic is now handled by another train. The 32-cent 
 rate is divided with the two connections on the basis of 50 per 
 cent to the Ulster & Delaware and 40 per cent to the Wallkill 
 Yalley. The West Shore has 18 or 20 milk cars in service, costing 
 each ijetween 1 1,700 and $2,000. 
 
 The Ulster & Delaware runs 87 miles from Kingston over the 
 Catskill Mountains and through the counties of Ulster'and Dela- 
 ware, iN. Y., to Bloomville, its farthest milk point. The grades 
 are heavy. All the milk is gathered in Delaware County on the 
 other side of the mountain and within 45 miles of Bloomville. 
 The traffic amounts to 1,000 or 1,200 cans a day, and there was 
 in 1895 a demand for about 50 per cent more. Prior to the de- 
 velopment of this milk traffic thejfarmers of Delaware County 
 
56 INTERSTATE COMMERCE COMMISSION. 
 
 were very largely engaged in butter-making. Creameries liave 
 been built along the line, and now the farmers' principal source 
 of revenue is milk. The Ulster & Delaware has about 15 milk 
 cars, each costing about $1,800. About one half of the milk 
 shipped over the road is in bottles. 
 
 The Wallkill Valley extends from Kingston, 38 miles, to 
 Campbell Hall. All the milk brought to the West Shore at 
 Kingston by this road is collected at stations within a distance of 
 13 miles from Campbell Hall. There is no statement in the 
 record of the output from the various riiilk stations on the "Wall- 
 kill Valley and Ulster & DelaM'^are, but under the testimony of 
 about 1,000 cans shipped daily over the Ulster & Delaware and 
 the statement in the 6th finding of the total cans carried by the 
 West Shore, about three fourths of the West Shore milk appears 
 to originate on the Ulster & Delaware road. 
 
 While nearly all the milk traffic of the West Shore is shown to 
 have been derived from its Wallkill Valley and Ulster & Dela- 
 ware connections, Kingston, N. T., being the point of junction 
 with both of these roadsj the uniform milk rate has been in force 
 over the West Shore as far as and including Utica, N. Y., 232 
 miles from Weehawken, N. J., under Special Interstate Tariff 
 No. 544, effective January 17, 1890. Since this cage was heard 
 and submitted the West Shore has by Special Tariff 1648, 1. C. C. 
 No. 173, in effect November 16, 1896, extended the apj)lication 
 of the milk and cream rates of 32 and 50 cents per 40-quart can, 
 respectively, to all stations up to and including Bowmansville, 
 N. T., a point just east of Buffalo, and about 417 miles from 
 Weehawken. The rates on bottled milk and cream are f of a 
 cent and IJ cents per quart, respectively. By supplements to 
 this tariff in force November 30, and December 5, 1896, ship- 
 ments of milk and cream in cans of less than 40 quarts are charged 
 f of a cent per quart on milk and IJ cents on cream for the full 
 capacity of the can. Cases of bottled milk are also charged for 
 at the capacity of the ease. What amount of milk and cream 
 is carried over this line under the uniform rates as thus ex- 
 tended, or what additional facilities have been provided by the 
 West Shore to induce the shipment of long distance milk, or how, 
 generally,*Jts milk service and milk traffic may have been altered, 
 thereby changing facts hereinabove set forth as to such service 
 
MILK PEODUOEES' PROTECTIVE ASSO. T. DELAWAEE, L. <fc W. E. CO. 5Y 
 
 and traffic, does not appear. It is shown, however, by the tariff 
 and supplements mentioned that a shipper at Bowmansville, N.Y., 
 can ship milk and cream over the West Shore to Weehawken, 41T 
 miles, at the same rates that are charged by it from West Park, 
 N. Y., 78 miles, the nearest point from which milk is shown to 
 be actually shipped to Weehawken, and at the rates that are in 
 force under such tariff from Tappan, IT. T., 19 miles from 
 Weehawken. 
 
 New Haven Line. 
 
 24. This road hauls 6 or 7 cars of milk daily. There is no 
 showing of facts peculiar to the traffic on this road which is not 
 included in prior findings. 
 
 25. There is no delay of equipment at the terminals of the re- 
 spective delivering lines. The traffic is all removed by consignees 
 within a few hours after its arrival, and the cans, usually returned 
 by the wagons which take milk from the platform at the deliver- 
 ing station, are sent back on the next returning train. In the case 
 of ordinary freight, warehouses or sidings are necessary. Light- 
 erage of cars to New York City on freight consigned to that 
 point over lines running through New Jersey is required, and 
 consignees are allowed by the carriers from 24 to 48 hours for re- 
 moval of freight from warehouses or cars. Lighterage costs the 
 carriers about 3 cents per 100 pounds. It is claimed for the car- 
 riers and not disputed that milk could not be delivered in New 
 York City as early, or with any such certainty as to time, as is ac- 
 complished under the present method of delivery to consignees' 
 trucks or drays on the New Jersey side and transportation across 
 the river by ferry ; and, moreover, that delivery of this kind of 
 traffic in New York instead of on the New Jersey shore would, 
 for various reasons, involve much greater expense than is repre- 
 sented in the cost of lighterage. The facilities provided by the 
 carriers both for transportation and delivery of milk are generally 
 satisfactory to shippers, consignees and dealers. The losses oc- 
 curring through spilling of milk or accident to trains are gen- 
 erally insignificant. 
 
 26. Condensed milk is of two kinds, plain and preserved. The 
 plain has no sugar in it, is similar in value to cream, and, like 
 cream, it is shipped in cans at the rate of 50 cents per 40 quarts. 
 
58 INTERSTATE COMMEEOE COMMISSION. 
 
 Condensed milk is " preserved " by the addition of sugar. The 
 preserved milk is put up in small sealed cans holding about a 
 pint, packed in cases, and shipped by ordinary freight. This 
 milk is also sometimes shipped in kegs or barrels. In the manu- 
 facture of a case of preserved milk which sells for about $5, about 
 li cans of raw milk are required. A case worth $10 weighs 
 about 100 pounds, and a 100-pound or 40-quart can of cream is 
 worth about $6. There are several condensaries in the nearby 
 region, and some have been established in the more distant dis- 
 tricts. These factories have been located on most of the defend- 
 ant lines. One company, operating 6 or 7 condensaries, ships 
 over the Susquehanna, Ontario & Western, Lackawanna, "Wallkill 
 Yalley, West Shore and Harlem roads. Its most distant con. 
 densing plant is about 240 miles out on the Ontario & Western. 
 This condensing company is also largely engaged in sending raw 
 milk to the New York market. It has established bottling plants 
 at a number of points, and practically all of its shipments of raw 
 milk are in bottles. The condensary takes milk from the farmers 
 under contracts which forbid them from feeding brewers' grains 
 and some other foods deemed objectionable for condensing pur- 
 poses, and it pays more than the average price received by farm- 
 ers in the same locality on shipments of milk for the New York 
 market ; but the condensing company gets its milk for a less price 
 in the more distant regions than it pays to farmers in nearby lo- 
 calities, about J cent less per quart the year through. The secre- 
 tary of the condensing company above referred to testified that 
 rates per 100 pounds paid by his company on preserved milk to 
 New York City were, in 1895, 10 cents on the Wallkill Yalley- 
 West Shore line, 10 cents on the Harlem and 12 cents on the 
 Ontario & Western. The tariffs of the Lackawanna road show 
 rates of 25 and 23 cents (3d class) on less than carloads and 17 and 
 18 cents (4th class) carloads. On the Erie condensed milk rates 
 are named in tariffs filed only to Jersey City. These are 50 cents 
 per can on plain condensed milk from all points, and for the pre- 
 served article they range from 16 cents less than carloads and 11 
 cents carloads at Port Jervis, N. Y., down to 12 and 8 cents at 
 Turner's, 10 and 7 cents at Suffern, E". Y., and 5 cents for any 
 quantity at Eutherford, N. J., 12 miles from Jersey City. 
 
 27. From Chicago, 111., rates on cattle, feed and hay are higher 
 
MILK PEODUCEES' PEOTEOTIVE ASSO. V. DELAWARE, L. & W. E. CO. 59 
 
 on the Erie to Port Jervis and stations east of that point than to 
 the more distant milk shipping stations on that line. As between 
 Hornellsville and Greycourt, the differences in those rates are 5 
 cents on cattle, 3^ cents on feed and 4^ cents on hay. On the 
 Lackawanna these rates from Chicago are about 1 cent less to 
 South Columbia than to Delaware, N. J., 310 miles and 80 miles, 
 respectively, from Hoboken; and they are from 2 to 3 cents 
 lower from Chicago to Kenwood than to Summitville, N. Y., 264 
 and 93 miles, respectively, from Weehawken on the Ontario & 
 Western. Some of the Ontario & Western branch lines north of 
 Summitville take higher rates than points on the main line. The 
 difference in these rates on the Lehigh Valley as between the 
 nearer and far-distant milk stations is about the same as it is on 
 the Lackawanna. Cattle, feed and hay rates to points on the 
 Delaware & Hudson (Albany to Binghamton), Lehigh & Hudson 
 River and Wallkill Yalley roads are the same from Chicago to 
 all stations. 
 
 28. Following are less than carload rates in cents per 100 
 pounds on potatoes, apples, onions butter, eggs, cheese, dressed 
 meats, green fruit and milk from various points on the defendant 
 lines to their respective New Jersey terminals : 
 
60 
 
 INTEESTATE COMMERCE COMMISSION. 
 
 
 
 
 
 
 
 
 
 
 a. 
 
 ^ 
 
 
 
 
 
 
 
 
 
 
 
 S 
 
 
 
 Line. 
 
 Places. 
 
 
 S 
 
 
 
 
 
 
 T3 
 
 fe 
 
 
 
 
 1 
 
 o 
 
 4.S 
 
 CO 
 
 3. 
 
 CO 
 
 a 
 
 
 CO 
 
 
 » 
 
 a 
 
 M 
 
 
 
 
 o 
 
 0. 
 
 'a 
 
 3 
 
 be 
 
 Si 
 
 
 ^ 
 
 
 
 
 S 
 
 Ol 
 
 ■< 
 
 O 
 
 03 
 
 S 
 
 O 
 
 Q 
 
 O 
 
 S 
 
 
 Hornellsville 
 
 to 
 Binghamton, 
 
 331 
 
 
 
 
 
 
 
 
 
 
 Erie. 
 
 314 
 
 18 
 
 35 
 
 18 
 
 30 
 
 30 
 
 25 
 
 35 
 
 35 
 
 32 
 
 
 Susquehanna, 
 
 191 
 
 18 
 
 34 
 
 18 
 
 39 
 
 39 
 
 34 
 
 34 
 
 84 
 
 32 
 
 
 Port Jervis, 
 
 87 
 
 11 
 
 16 
 
 11 
 
 30 
 
 30 
 
 16 
 
 
 
 33 
 
 
 Greycourt, 
 
 58 
 
 9 
 
 13 
 
 9 
 
 15 
 
 15 
 
 13 
 
 18 
 
 18 
 
 33 
 
 Lehigh & Hudson River. 
 
 Belvidere, . 
 Andover, 
 to 
 
 116 
 102 
 
 16 
 
 18 
 
 16 
 
 23 
 
 38 
 
 18 
 
 28 
 
 38 
 
 83 
 
 
 Warwick, 
 
 73 
 
 10 
 
 15 
 
 10 
 
 17 
 
 17 
 
 15 
 
 30 
 
 20 
 
 33 
 
 
 Maybrook, 
 
 63 
 
 9 
 
 13 
 
 9 
 
 15 
 
 15 
 
 13 
 
 18 
 
 18 
 
 33 
 
 
 Oneida 
 
 267 
 
 
 
 
 
 
 
 
 
 
 
 to 
 
 
 
 
 
 
 
 
 
 
 
 Ontakio & Western. 
 
 Sidney, 
 
 300 
 
 18 
 
 35 
 
 18 
 
 30 
 
 30 
 
 35 
 
 35 
 
 35 
 
 83 
 
 
 Summitville, 
 
 93 
 
 11 
 
 16 
 
 11 
 
 30 
 
 30 
 
 16 
 
 23 
 
 28 
 
 33 
 
 
 Middletown, 
 
 78 
 
 10 
 
 15 
 
 10 
 
 17 
 
 17 
 
 15 
 
 30 
 
 20 
 
 83 
 
 
 Campbell Hall, 
 
 68 
 
 9 
 
 18 
 
 9 
 
 15 
 
 15 
 
 18 
 
 18 
 
 18 
 
 33 
 
 
 West Cornwall, 
 
 55 
 
 9 
 
 11 
 
 9 
 
 13 
 
 13 
 
 11 
 
 15 
 
 15 
 
 83 
 
 
 South Columbia 
 
 to 
 Binghamton, 
 
 310 
 
 
 
 
 
 
 
 
 
 
 Lackawanna. 
 
 206 
 
 18 
 
 25 
 
 18 
 
 30 
 
 30 
 
 35 
 
 85 
 
 85 
 
 33 
 
 
 Wayland 
 
 to 
 Owego, 
 
 335 
 
 
 
 
 
 
 
 
 
 
 
 337 
 
 18 
 
 35 
 
 18 
 
 30 
 
 30 
 
 35 
 
 85 
 
 35 
 
 32 
 
 
 Alford 
 
 179 
 
 
 
 
 
 
 
 
 
 
 
 to 
 
 
 
 
 
 
 
 
 
 
 
 
 Scranton, 
 
 144 
 
 17 
 
 33 
 
 17 
 
 30 
 
 80 
 
 33 
 
 85 
 
 35 
 
 32 
 
 
 Delaware, 
 
 79 
 
 14 
 
 19 
 
 14 
 
 23 
 
 38 
 
 19 
 
 36 
 
 26 
 
 32 
 
 
 Cobleskill 
 
 303 
 
 
 
 
 
 
 
 
 
 
 
 to 
 
 
 
 
 
 
 
 
 
 
 
 Delaware & Hudson. 
 
 Sanitaria Springs, 
 
 New Paltz 
 to 
 
 315 
 103 
 
 18 
 
 35 
 
 18 
 
 30 
 
 80 
 
 35 
 
 85 
 
 35 
 
 32 
 
 West Shoeb (Walllsill Valley). 
 
 Campbell Hall, 
 
 Points on Auburn 
 & Cayuga Div. 
 and main line, In- 
 cluding 
 
 136 
 
 18 
 
 30 
 
 18 
 
 25 
 
 35 
 
 20 
 
 30 
 
 30 
 
 32 
 
 Lehish Valley. 
 
 Romulus, 
 Tunkhannock 
 
 to 
 White Haven, 
 
 335 
 306 
 
 18 
 
 35 
 
 18 
 
 30 
 
 80 
 
 35 
 
 35 
 
 35 
 
 82 
 
 ' 
 
 145 
 
 17 
 
 38 
 
 17 
 
 30 
 
 80 
 
 33 
 
 35 
 
 35 
 
 33 
 
 
 Catasauqua, 
 
 96 
 
 13 
 
 17 
 
 13 
 
 31 
 
 31 
 
 17 
 
 35 
 
 35 
 
 
 
 Phillipsburgh, 
 
 75 
 
 13 
 
 15 
 
 13 
 
 17 
 
 17 
 
 15 
 
 20 
 
 30 
 
 
MILK PEODUCEES' PEOTECTIVB ASSO. V. DEL AW ABE, L. & W. E. CO. 61. 
 
 29. Fifteen or twenty years ago the bulk of milk for the jN'ew 
 York market was shipped direct by farmers to the dealers. Since 
 then many additional " creameries " have been erected at points 
 •on the various defendant lines. Some are controlled by associa- 
 tions of farmers. A considerable number are owned or operated 
 by ISTew York dealers. The amount shipped by the creameries 
 is often regulated by daily advices from New York consignees. 
 The surplus milk at the creamery is made into butter and cheese. 
 The creamery cools the milk, and keeps it in that condition until 
 loaded into the cars. The creamery men buy milk of the farm- 
 ers, paying from 10 to 20 cents a can under the market price, and 
 any loss resulting from surplus of milk necessarily made into but- 
 ter and cheese is borne by the creamery. A continuance of de. 
 creased demand upon the creamery by its New York consignees 
 must, however, unless it occurs at a time when there is greater 
 profit in the manufacture of butter and cheese than in the ship- 
 ment of milk, tend to affect the price paid to or the quantity of 
 milk taken from farmers by the creamery. 
 
 Some New York dealers who formerly bought milk in Orange 
 County, N. Y., and other portions of the nearby district, have 
 gone out into the more distant fields of production. Among the 
 causes for this action on the part of such New York dealers are 
 (1), the acceptance of a less price per quart by farmers in the far- 
 off region ; (2), a constantly growing demand in New York and 
 adjacent cities which could not have been met by Orange County, 
 N. Y., Sussex County, N. J., and localities in counties adjoining, 
 if all the milk they were capable of producing had been snpplied ; 
 (3), the more or less constant friction and at times serious differ- 
 ences between the nearby farmers and dealers over prices arbi- 
 trarily fixed by the Milk Exchange; (4), a practice followed by 
 some nearby producers of feeding brewers' grains to their cows 
 in such condition or quantity as to result in a poorer quality of 
 milk. These circumstances tend, when they exist, to increase the 
 development of the more distant milk region whether the milk 
 is carried from all sources under a uniform rate or not. But the 
 development of the far-off milk region has been carried far beyond 
 this natilral demand, and a total supply made possible (largely 
 regulated by changes in orders for shipment) which is much 
 greater than the current requirements of the cities; and this has 
 
62 INTERSTATE COMMEBCE COMMISSION. 
 
 been accomplished through extension of the uniform rate for con- 
 siderable distances from time to time, through the free icing of 
 milli in transportation by most of the carriers, through solicita- 
 tions by railway agents, and through facilities and other material 
 aid to dealers and others in the erection of creameries in the more 
 distant localities or the occupation of those already built. This 
 extension of the total milk traffic under a uniform rate charged 
 by all the defendant lines has been without regard to greater cost 
 of transportation from the more distant regions or to any differ- 
 ence in cost of service on the several lines from their respective 
 fields of supply. While this extraordinary development of distant 
 milk production has been going on, changes in conditions affect- 
 ing milk traffic from the nearby producing region have also taken 
 place. An efficient system of milk inspection has been established 
 in 'New York City. Milk adulteration subjects the offender to 
 rigorous prosecution, and the quality of the milk sold in that city 
 must, on chemical analysis, come up to the prescribed standard 
 of purity. A dairy bureau or commissionership has been estab- 
 ished by the State ; the keeping of diseased cattle on milk farms 
 has been practically done away with under the operation of State 
 law ; and the fixing of prices to producers by a combination of 
 dealers known as the " Milk. Exchange " has been judicially pro- 
 hibited. The milk produced in the nearby section and shipped 
 for the New York market has, for several years, at least, been of 
 good quality and fully up to the prescribed standard of purit3^ 
 The dealers rely upon the nearby section for a convenient source 
 of fresh milk supply. Notwithstanding these changes, the opera- 
 tion of the uniform rate, together with the efforts of the several 
 roads and their agents to increase the more distant milk business 
 and the acquired interest of some of the New York milkmen in 
 distant creameries, have resulted in a large decrease of Orange 
 County milk shipments over the Erie, the principal carrier from 
 that section, and in comparatively little increase, in the face of 
 the constantly growing demand, on the Lehigh & Hudson River 
 and the Susquehanna. The West Shore traffic has also dimin- 
 ished. The demand as now apportioned is considerably less in 
 the nearby section than its farms, particularly in Orange 'County,, 
 are able to supply. This county could and would, it is testified, 
 have produced more milk than it has if the uniform rate had not 
 
MILK PEODUCEKS' PEOTECTIVE ASSO. V. DELAWAKE, L. & W. E. CO. 63 
 
 been extended for such considerable distances over the various 
 roads, and the possible additional amount is estimated in testi. 
 mony at from 30 to 50 per cent. Much of the country quite 
 near to New York City has been converted into a suburban resi- 
 dence section during the past 15 years. Thus, milk on the Long 
 Island road has become a comparatively small item, and many 
 localities served by the New Jersey Central and other roads in 
 New Jersey have been similarly affected. Orange County, N. Y., 
 also contains many suburban residences, and the acreage in that 
 county which could under sufficient demand be devoted to milk 
 production is apparently somewhat less that it would have been 
 several years ago. The value of farming land in this county and 
 in most of the less distant milk producing localities is greater 
 than that of such land in the far-off region, and to that extent, 
 and any difference in the prices of feed which may exist, it costs 
 more to produce milk in the nearby region than in the much 
 more distant districts. 
 
 30. On the Erie, class rates to Jersey City, Hornellsville, 831 
 miles, to Great Bend, 200 miles, inclusive, are on classes 1 to 6, — 
 35, 30, 25, 18, 15 and 13 cents, respectively. The same rates also 
 apply from points on the Jefferson or Carbondale branch, 218 
 miles from Jersey City. These class rates decrease station by 
 station or by short groups, so that from Port Jervis, 87 miles from 
 Jersey City, they are 23, 20, 16, 11, 9|- and 8-J- cents, and from 
 Turner's, 46 miles, they are 17, 14, 12, 8, 6^ and 5^ cents. 
 Somewhat higher rates are charged from branch lines east of Port 
 Jervis. On the Lehigh & Hudson Eiver connection the first class 
 rate from Belvidere, 116 miles from Jersey City, is 28 cents, but 
 Great Meadows, 105 miles, to Stone Bridge, 62 miles, take first 
 class, 20 cents, and Maybrook, on the Orange County branch, 
 has a first-class rate of 18 cents to Jersey City. 
 
 All Susquehanna stations in New York 74 to 88 miles from 
 Jersey City take the same class rates (first class 22 cents). From 
 all stations on the Wallkill Yalley to Weehawken the class rates 
 are the same, 30 cents first class. On the West Shore class rates 
 are on a basis of 39 cents first class from Bowmansville, 417 miles 
 from Weehawken, 35 cents from Oakfield, 395 miles, 34 cents 
 from Manlius Centre, 270 miles, and are graded downwards from 
 shorter distance stations or groups. The Ontario & Western first- 
 
64 INTERSTATE COMMERCE COMMISSION. 
 
 class rate to Weehawken is 35 cents, Kenwood, 26i miles, to "Wal- 
 ton, 179 miles, and also on the Scranton Branch and Utica Divis- 
 ion. Class rates on the Delhi and New Berlin branch are somewhat 
 higher. From Walton they decrease in short groups, at Bloom- 
 ingburgh, 88 miles, the first-class rate is 23 cents, at Middletown, 
 78 miles, 20 cents, and Campbell Hall, 68 miles, 18 cents. 
 
 The Lackawanna class rates from South Columbia, N. Y., 310 
 miles from Hoboken, are on the basis of 35 cents first class, and 
 so are practically all other milk stations on its main line and 
 branches in JS'ew York and on the Delaware ^ Hudson connec- 
 tion, and also stations on the Lackawanna in Pennsylvania to 
 Factoryville, Pa., 160 miles from Hoboken, with slight variation 
 in the third-class rate. From Delaware, N. J., on or near the 
 State line, and about 80 miles from Hoboken, the first-class rate 
 is 23 cents. The class rates of the Lehigh Yalley are similarly 
 arranged, the 35 cent rate applying at its New York milk stations 
 and ending with La Grange, Pa., 195 miles from Jersey City. 
 
 Class rates on the New Haven road to New York City are 20 
 cents first class from Pittsfield, Mass., 163 miles, and 17 cents 
 from Newtown, Conn., 72 miles, its farthest and nearest milk 
 stations. 
 
 31. As the transportation service is conducted, milk is a very 
 desirable kind of trafiic to the defendant roads. As prior find- 
 ings show, the Erie is among those on which, from the method 
 of transportation, the cost of service is least, while on the Lack- 
 awanna and Lehigh Yalley the cost of service is relatively much 
 greater. Economically conducted, milk transportation on all the 
 lines is highly profitable. 
 
 32. The return of empty cans is, as before found, part of the 
 transportation service rendered by defendants, for which they 
 charge a total rate of 32 cents on milk. Empty milk cans are 1^ 
 times first class in the "Official Classification" in force over the 
 defendant roads. The empty milk can weighs about 20 pounds, 
 and the weight of an average carload of about 160 cans (on the 
 Lackawanna, Ontario, and substantially so on the Erie) is 3,200 
 
 _ pounds, 1| tons. The practical limit of the short distance traffic 
 on the Erie, Lackawanna, Ontario & Western and Lehigh Yalley 
 is from 80 to 100 miles, to Port Jervis, Delaware, Bloomingburgh 
 or Summitville, and Catasauqua, on their respective lines, and the 
 
MILK PEODUCEES' PEOTEOTIVE ASSO. V. DELAWAEE, L. & W. E. CO. 65 
 
 iirst-class rates between New Jersey terminals and these points 
 range from 23 to 25 cents. Empty milk cans in any quantity, 
 ■carloads or less, may be shipped to those points at IJ times the first- 
 -lass rate independently of their having been used to bring milk 
 for the New York market, and the charge per can of 20 pounds 
 for such shipment would be 7 or 7J cents in 100 pound lots. 
 On this basis, 7^ cents out of the 32-cent rate is applicable 
 to the service rendered in returning empty cans for such short- 
 distance traffic. This excludes the consideration that such cans 
 are. returned by the fast milk service, but, on the other hand, it 
 takes no account of the fact that the same or like cars and crews 
 required to carry milk down must, to do the business, be ready 
 .at the shipping points for the next day's supply, whether there 
 is any return load or not. In the decision of the Howell Case, 
 the Commission found that " taking into account the return of 
 «mpty cans, the rate per 100 pounds charged upon milk ship- 
 ments is about 29|- cents." The uniform milk rate was then 35 
 •cents, making an allowance of 5|- cents for the return of the can. 
 This was determined on the basis of 200 cans to the car, making 
 10 tons down and 2 tons of empties back. An average load down 
 ■of 160 cans of milk and back of the like number of empties gives 
 8 tons down and 1-| tons back, and apportioning the rate of 32 
 •cents to such tonnage results in 26f cents for the milk business 
 down and 5^ cents for the haul of empties back regardless of the 
 distance carried. Seven and one-half cents for the return of 
 •empties, therefore, represents more than the tonnage share due 
 to the empty cans on the basis of the rate fixed by defendants 
 themselves for the entire service from the most distant milk 
 ■stations, and is substantially equal to defendants' established rate 
 for the independent shipment of milk cans in any quantity for 
 ■distances of 80 to 100 miles from the terminal. 
 
 33. Practically all of the Lehigh Valley and Lackawanna milk 
 ^oes over long distances except that which is transported wholly 
 in New Jersey. An estimate of the shipments of milk in 1895 
 from nearby localities in New York, New Jersey and Oonnecti- 
 ■cut transported through different States is arrived at from prior 
 findings on the basis of 80 per cent of the Erie traffic (including 
 a.11 Lehigh & Hudson River shipments), 15 per cent of Ontario & 
 "Western shipments, 40 per cent of the Susquehanna business, 25 
 5 
 
66 INTERSTATE COMMEEOE COMMISSION, 
 
 per ceut of the West Shore and 50 per cent of the New Haven 
 shipments. According to these proportions such nearby milk 
 shipments amounted in 1895, on the basis of total cans carried as 
 stated in the 6th finding, to less than 2,000,000 cans, and less 
 than 25 per cent of the total milk, cream and condensed milk 
 carried by the defendant and all lines to the terminals in tliat 
 year. An increase of 30 per cent of this output carried through 
 different States from the nearby milk region only amounts to an 
 addition of 600,000 cans, — about double the estimated amount of 
 traffic lost from the Erie main line and branches in Orange 
 County between 1892 and 1895. Such loss in Erie traffic, tiie 
 decrease on the West Shore, and the only slight increases on other 
 nearby roads, may be partially due to the diversion of milk to 
 condensaries in that section, but the testimony is that condensing 
 companies have also been establishing plants in more distant di:?- 
 tricts. . The total of about 8,000,000 cans carried to New Yoi-k 
 by all lines in 1895 was an increase in 10 years of over 47 per 
 cent of the amount transported in 1886. An average yearly 
 increase of 4 per cent in the New York demand is reasonably 
 certain, and such percentage is likely to be more than 4 per cent 
 on account of the greater additions to the city population in 
 each succeeding year. Such additional yearly demand, the lim- 
 ited capacity of the nearby field and the tendency in a consid- 
 erable portion of that region toward a decrease of acreage- 
 applicable to milk production, the apparently somewhat less cost 
 of production to farmers in the distant districts, the less price 
 which has been accepted by such producers, the milk transporta- 
 tion facilities afforded by all the long distance roads, and the 
 large number of creameries in operation on such roads, — are all 
 conditions which operate directly to increase shipments from the 
 more distant regions, and which together must necessarily pre- 
 vent any very great or permanent diminution of such shipments 
 resulting from somewhat lower transportation rates for the l.esser 
 service from the shorter distance localities. 
 
MILK PEODUCEES' PEOTECTIVE ASSO. V. DELAWAEB, L. & W. E. CO. 67 
 
 CONCLUSIONS. 
 
 The roads of the Elmira, Cortland & Northern Eailroad Co. 
 and the Delaware & Hudson Canal Co. wholly in New York are 
 employed in connection with the Lackawanna, under a " common 
 arrangement" for continuous carriage or shipment, in the trans- 
 portation of milk and cream from points in New York to Hobo- 
 ken, N. J., and the provisions of the Act to Eegulate Commerce 
 apply to such transportation and the carriers engaged therein. 
 The transportation of milk or cream by any of the defendants to 
 Hoboken, Jersey City or "Weehawken, which is performed wholly 
 within the State of New Jersey, is not subject to regulation under 
 that Act. 
 
 A further question of jurisdiction is raised by the Susquehanna 
 as to 65 per cent of the milk transported by it from points in the 
 State of New York. It claims that such portion of its milk 
 from New York points, though carried through New Jersey, is 
 delivered by it in New York City, and that transportation so 
 conducted between points in the same State is not subject to the 
 Federal statute. The decision of the United States Supreme 
 Court in LehighYalley R. Co. v. Pennsyl/vania, 145 U." S.'194, 
 36 L. ed. 6Y3, 4 Inters. Com. E.ep. 87, is relied upon by counsel 
 for the Susquehanna as authority for a ruling that traflBc shipped 
 between points in the same State, but passing through another 
 State in the course of transportation, is not within the provisions 
 of that statute ; and in their brief counsel call attention by cita- 
 tion to the fact that this Commission regarded the Lehigh Yalley 
 Case as such authority in Chamber of Commerce of MvnneapoUs 
 V. Chioago, M. c& St. P. R. Co. 5 I. C. C. Eep. 571. We did 
 not have occasion to decide the question in the MimmeapoUs Case, 
 and our reference there to the Supreme Court decision was that 
 it seemed to have the effect of excluding commerce between 
 points in the same State which passes through another State from 
 regulation by the Federal government. The question is now dis- 
 tinctly raised as to the greater part of the milk traflic shipped 
 over the Susquehanna from New York State points, and we have 
 carefully examined and considered the Lehigh Valley decision 
 with a view of determining whether it is actually controlling, as 
 claimed by counsel. That case involved the right of the State of 
 Pennsylvania to tax the receipts of the Lehigli Valley Company 
 
6S INTEESTATE COMMEEOE COMMISSION. 
 
 from traffic shipped between points in that State, but passing 
 through New Jersey in course of transportation, so far as such re- 
 ceipts arose from service over the LehighYalley mileage within the 
 State of Pemnsylva/nia. There was no dispute as to the amount 
 of the tax, and the only question raised was whether the State 
 could lay a tax upon the business at all. The Supreme Court 
 upheld the validity of the tax involved. Whatever other or 
 broader application may be given to language used or principles 
 considered by the court in that case, the decision was coniined to 
 the question of taxation on what was done or earned within the 
 State. TheLohigh Valley carried the property from a point in 
 Pennsylvania to the New Jersey line and just across it to Phil- 
 lipsburg, N. J., and from thence the continuous carriage was by 
 arrangement conducted by the Pennsylvania Kailroad Company to 
 Philadelphia, Pa. If the State of Pennsylvania had attempted to 
 regulate the aggregate charge or charges made for the entire 
 transportation through different States, we think the court would 
 have had an entirely different case to consider. In this milk case, 
 the Susquehanna, in carrying from Middletown, N. Y., to Jersey 
 City, N. J., is admittedly engaged in interstate transportation, and 
 the carriage from Jersey City, JST. J., to New York City, N. Y., 
 across the Hudson Eiver, whether performed by ferry or lighter, 
 is also transportation between different States. Yet its contention 
 is that by combining these two interstate transportations the ser- 
 vice becomes intrastate, and the commerce internal to the State 
 of New York. A State and an interstate transportation may be 
 combined and made continuous so as as to emtend the interstate 
 service over the whole distance ; but we are unable to understand 
 how two distinctly interstate carriages can, on being connected 
 and made continuous, be cont/racted into purely state transporta- 
 tion because the beginning and ending points happen to be in the 
 same State, so as to give that State jurisdiction of the whole 
 transportation. The Lackawanna receives freight at New York 
 City, takes it across the river to New Jersey, and through that 
 State and the State of Pennsylvania to Binghamton, N. Y. ; and 
 out of the total distance of about 208 miles less than 15 are 
 within the State of New York. Granting that New York may 
 impose a tax on the gross receipts of the Lackawanna, represented 
 by its mileage in New York, on traffic between points, in that 
 
MILK PEODUCEES' PEOTECTIVE ASSO. V. DELAWARE, L. & W. E. CO. 69 
 
 State, does it follow that ]S"ew York can also regulate the freight 
 charges and passenger fares of the Lackawanna for the whole 
 distance between New York City and Bingham ton, IST. Y. ? We 
 think not. If neither of the States through which the transporta- 
 tion is conducted has power to regulate the entire transportation 
 or the compensation exacted therefor, it does follow, we think, 
 that such power is vested in the general government. This Com- 
 mission held, in 1888, in JVew Orleans Cotton Exchange v. Cin- 
 Ginriati, N. 0. cfe T. P. R. Co. 2 I. C. C. Eep. 375, 2 Inters. 
 Com. Eep. 289, that: 
 
 '^All commerce is subject to regulation ; that wholly within a 
 State and subject to its sovereign power by the State ; that among 
 the States and with foreign nations and not wholly within the 
 sovereign power of any one State by the United States, for the 
 reason that to be effectual, regulation must be uniform, at least 
 not conflicting. Commerce between Shreveport and New Orleans, 
 while crossing on the ferry between Delta, La., and Vicksburg, 
 Miss., is not subject to regulation by the State of Louisiana. The 
 business of transferring freight by the ferry between the two 
 States is interstate commerce. Gloucester Ferry Company \. 
 Pennsylvania, 114 U. S. 196, 29 L. ed. 158, 1 Inters. Com. Rep. 
 382. 
 
 " While passing through Mississippi, after passing from Louisi- 
 ana, this commerce is interstate, and subject alone to interstate 
 regulation. It is not subject at any place between Shreveport and 
 New Orleans to regulation by both the State and the Congress. 
 It passes by continuous carriage from Louisiana to, and through, 
 the State of Mississippi. It is not transportation ' wholly within 
 one State.' It is subject to regulation by the provision of the Act 
 to Eegulate Commerce, and the Commission has jurisdiction to 
 revise the rates when the parties interested in them are before it." 
 
 The Lehigh Yalley decision is not necessarily in conflict' with 
 this view. The Supreme Court called attention in that decision 
 to the fact that the case was one of taxation, and not one o^ direct 
 regulation, 'citing Pacific, Coast 8. 8. Go. v. Board of R. Comrs. 
 9 Sawy. 253, as indicating the distinction. In the case so cited, 
 the Cahfornia Commission sought to regulate commerce between 
 ports of that State when carried by a line of vessels navigating the 
 Paciflc Ocean more than a marine league from the shore. Mr. 
 Justice Field, sitting as circuit justice and writing the opinion, 
 said : " To bring the transportation within the control of the 
 State, as part of its domestic, commerce, the sulject trarisported 
 
70 INTERSTATE COMMEECE COMMISSION. 
 
 )iiust he within the entire voyage v/nder the excTmsive jurisdiction 
 of the State." That decision seems to rest entirely upon the com- 
 merce clause in the Constitution of the United States. If the 
 steamship or vessel plying between California ports was, while on 
 the ocean, engaged in commerce with foreign nations, as was ob- 
 served in the Lehigh Valley decision in discussing Lord v. Oood- 
 all, N. cfe P. S. S. Co. 102 LT. S. 541, 26 L. ed. 224, then a rail- 
 road company in carrying between points in the same State, by a 
 route which passes through another State, is as clearly engaged in 
 commerce among the States while operating in the second State. 
 The effect in either case is to deny the jurisdiction of the State 
 wherein the shipment commences and terminates to regulate 
 transportation over tlie entire distance when the route passes be- 
 yond its borders. 
 
 In Covington ds C. Bridge Co. v. Kentucky, 154 U. S. 204, 38 
 L. ed. 962, 4 Inters. Com. E,ep. 649, decided since the Lehigh 
 Valley Case, the power of a State to tax, and its power to pre- 
 scribe a scale of charges for the use of, instrumentalities of inter- 
 state commerce are carefully distinguished. The Supreme Court 
 held that the action of Kentucky in prescribing tolls to be charged 
 over a bridge between Covington, Ky., and Cincinnati, O., was a 
 regulation of interstate commerce. " It is obvious that the bridge 
 could not have been built without the consent of Ohio, since the 
 north end of the bridge and its abutments rest upon Ohio soil • 
 and without authority from that State to exercise the right of emi- 
 nent domain, no land could have been acquired for that purpose- 
 It follows that, if the State of Kentucky has the right to regulate 
 the travel upon such bridge and fix the tolls, the State of Ohio 
 has the same right, and so long as their action is harmonious there 
 may be no room for friction between the States ; but it would 
 scarcely be consonant with good sense to say that separate regula- 
 tions and separate tariffs may be adopted by each State (if the sub- 
 ject be one for State regulation), and made applicable to that 
 portion of the bridge within its own territory." After showing 
 how, through a conflict of State interests, different, tolls might be 
 established by each State, the Supreme Court held : " Congress, 
 and Congress alone, possesses the requisite power to harmonize 
 such differences, and to enact a uniform scale of charges which 
 will be operative in both directions." A practicable transporta- 
 
:vnLK PEODUCEES' PEOTECTIVE ASSO. V. DBLAWAEE, L. & W. E. CO. Tl 
 
 tion route exists from Covington, Ky., to Louisville, Ky., over the 
 bridge to Cincinnati, through Ohio and Indiana to Jeffersonville, 
 and across a bridge to Louisville. Kentucky cannot prescribe the 
 tolls over either bridge, nor the transportation charges between 
 ■Cincinnati, O., and Jeffersonville, Ind., nor can it authorize the 
 ■construction of such a line or control its operation, and it follows 
 that it could not regulate the aggregate charges over that route 
 between Covington and Louisville. For the same reasons, Il^ew 
 York is without power to authorize the construction of a route 
 like the Susquehanna from Middletown, N. Y., through New 
 Jersey to New York City, or to control the operation of such a 
 route, or to regulate charges made thereover between Middletown 
 and New York City. 
 
 In Texas db P. R. Co. v. Interstate Com'merGe Com-mission 
 {The Import Bate Case), 162 0. S. 197, 40 L. ed. 940, 5 Inters. 
 •Com. Rep. 405, the Supreme Court was called upon to determine 
 what commerce was subject to the provisions of the Act to Eegu- 
 Jate Commerce. The court said : "It would be difficult to use 
 language more unmistakably signifying that Congress had in 
 view the whole field of commerce {excepting commerce wholly 
 within the State), as well that between the States and Territories 
 as that going to or coming from foreign countries." 
 
 We hold in this case that the Susquehanna Company is as much 
 subject to regulation under the Act to Regulate Commerce in 
 respect of the portion of its milk business from New York points 
 which it carries through New Jersey and claims to deliver in 
 New York City as it is in regard to other interstate transportation 
 in which it is engaged. 
 
 A further question as to the right of the complaining associa- 
 tion to maintain the proceeding as against several of the defend- 
 ants was raised chiefly in argument^ but based upon denials on 
 information and belief in the answers of such defendants that 
 members of the complainant or those whom it represents are 
 •engaged in shipping milk over their lines to their respective 
 terminals. Complainant alleged in its petition that it complained 
 not only on behalf and in the interest of itself and its members, 
 but also on behalf of all other farmers, producers or shippers of 
 •(iream, milk and buttermilk from all shipping points on the de- 
 fendant roads to Hoboken, Weehawken, Jersey City and New 
 
72 INTERSTATE COMMERCE COMMISSION. 
 
 York. The complaint is against the same uniform or blanket 
 milk rate and cream rate for all distances on each line as fixed by 
 agreement or consent of all the lines. The complainant, whether 
 representing its own members, or specially authorized to represent 
 other shippers, or assuming in addition to represent shippers- 
 engaged in the same industry on some of the lines, was entitled 
 to bring and maintain this proceeding — afEecting rates on milk 
 supplied for a common and necessarily limited market — against 
 all the defendants engaged in carrying for that market ; and th& 
 milk rates charged on all of these lines from the various points of 
 shipment are properly involved in the controversy. Moreover,, 
 a defendant is not entitled to have a complaint dismissed as to it 
 " because of the absence of direct damage to the complainant," 
 and it is the duty of this Commission, under express direction in 
 the Act, to "execute and enforce" the provisions of that statute. 
 
 The complaint alleges that defendants' milk rates for longer 
 and shorter distances over the same line, in the same direction, 
 are in violation of the fourth section of the statute. We find noth- 
 ing in the facts to sustain this allegation, and the point was not 
 pressed in argument. Charging the same aggregate rates for 
 longer and shorter distances does not contravene the, provisions of 
 section 4, though such charges may constitute violations of Other 
 provisions in the statute. James dc M. Buggy Go. v. Cincinnati^. 
 N. 0. c& T. P. R. Co. 4 I. C. C. Eep. 744, 3 Inters. Com. Kep. 
 682. 
 
 The findings show that on some of the lines passes entitling the- 
 holder to free transportation as a passenger are issued to shippers 
 or dealers on account of the interstate milk trafiic of the road^ 
 The issuance of such passes for interstate transportation is an 
 offense against the law, as affording transportation for an inter- 
 state journey at less than established fares or charges ; and 
 whether the pass issued entitles the holder to interstate passage 
 or not, if granted on account of the interstate transportation of 
 freight, it results in a "rebate" or "device" whereby the pasfr 
 holder obtains such freight transportation not only at something 
 less than tariff rates, but for a less net price than is exacted from 
 persons not so favored who are shippers of like traffic transported 
 under similar conditions between the same points. The giving of 
 free or reduced transportation to shippers of or dealers in milk 
 carried by a road to interstate destinations is unlawful. 
 
MILX PEODUOEES' PEOTEOTITE ASSO. V. DELAWAEE, L. & W. E. CO. 73 
 
 The Lackawanna and Lehigh Valley are parties to agreements 
 entered into mainly for the purpose of developing their milk 
 traffic, and under which compensation is afforded to the other 
 contracting parties equal to a considerable share of the gross re- 
 ceipts from the transportation. Such compensation, as the busi- 
 ness has been increased or " developed " on the Lackawanna, or 
 may become greater on the Lehigh Yalley, seems extravagant, 
 but whether either agreement is disadvantageous to the carrier or 
 otherwise is matter for it to determine. " Improvident manage- 
 ment of the road is primarily a matter of internal or corporate 
 concern, to be dealt with by the corporation and its creditors among 
 themselves." Shamberg v. Delawa/re, L. & W. R. Co. i I. C. C- 
 Rep. 660, 3 Inters. Com. Eep. 502. But extraordinary or unnec- 
 essary cost of operation or management cannot be permitted to 
 cause unreasonable or unjust rates, discriminations, preferences or 
 prejudices. Shamberg v. Delaware, L. c& W. B. Co. supra. 
 
 The main subject for decision is whether defendants' uniform 
 rate on milk and uniform rate on cream from all stations to their 
 respective delivering terminals in New Jersey or in New York 
 City are unlawful, and, if so, to what extent. 
 
 Counsel on both sides have cited decisions of the Commission in 
 support of their respective views as to the application of the un- 
 due preference clause of the law to this tase. The Commission 
 held in Howell v. New York, L. E. c& W. B. Co. {The Howell 
 Milk Case), 2 I. C. C. Eep. 272, 2 Inters. Com. Eep. 162, and also 
 in Imperial Coal Co. v. PUisburg <& L. E. B. Co. 2 I. C. C. Rep. 
 618, 2 Inters. Com. Rep. 436, cases relied upon by the defense, 
 that proof of tangible injury must be shown to make the prefer- 
 ence or prejudice arising from a group rate unreasonable or undue. 
 But it was also said in the prevailing opinion in the Imperial Coal 
 Case that " if the effect of disregarding distance is to impose bur- 
 dens for the benefit of others on those who have the natural 
 advantage of location, it is unjust and cannot be sanctioned ; " and 
 in the Howell Milk Case it was determined on the facts by a 
 majority of the Commission that " it is not shown that the addi- 
 tion of new territory at any time has operated to the prejudice of 
 the old," this Commission held in the later cases of Eau Claire, 
 5 I. C. C. Rep. 265, Mi/nneapolis, 5 I. C. C. Rep. 571, and James 
 <& Abbott, 5 I. C. C. Rep. 613, that each community is entitled to 
 
7i INTERSTATE COMMERCE COMMISSION. 
 
 the benefits arising from its location and natural conditions. 
 Fixing rates with a view of equalizing commercial conditions was 
 also condemned in the Eau Claire Case. In the case of Newland 
 V. JVorthern P. R. Co. 6 I. C. C. Eep. 131, the same grain rate from 
 grouped stations 200 or more miles apart was held to deny to the 
 producer nearer the market the advantages of his location. We 
 said further in that case that " the practice of making one rate on 
 the same product over a very large district, and thus equalizing 
 the burdens of transportation to the same market, is only justifi- 
 able under special and exceptional circumstances." The complaint 
 also presents the further question as to the reasonableness and 
 justice of the uniform rate as applied to this traffic from the various 
 shipping points on the several lines. 
 
 Unlike most cases in which the legality of group or uniform 
 rating has been questioned, the traffic which is the subject of pres- 
 ent consideration constitutes the great bulk of an important daily 
 food supply for New York and adjacent cities which, because of 
 its extra perishability, can be drawn only from sources accessible 
 by daily rail communication from the market of consumption and 
 sale ; and, on the other hand, the sale or demand in such market 
 is necessarily limited to the quantity required for daily consump- 
 tion. While the available milk supply should at all times be 
 sufficient to meet the needs of consumers in such a market, a sur- 
 plus of this commodity cannot, because of its perishability, be 
 kept over or reshipped for sale in other cities. Under such cir- 
 cumstances, the shipments are practically limited' to the amount 
 of daily consumption, and this fact emphasizes the duty of the 
 carriers to establish rates which will not deprive producers more 
 favorably situated with reference to and dependent upon that 
 market of part of their trade in a limited tra,ffic, or prevent them 
 from supplying their share of the greater demand due to increase 
 in the city population or in consumption per capita. Furnishing 
 an. extra perishable article like milk in no greater quantities than 
 is required for daily use in a given city is a business which falls 
 naturally to those producers nearest to the city who are able to 
 provide the needed supply. As was said by the Commission in 
 the Howell Case : " Prudence would influence railroad managers 
 to confine the collection of milk within the territory in which it 
 can be most cheaply handled, and to extend the milk system no 
 further than the increasing growth of the demand should require." 
 
MILK producers' PROTECTIVE ASSO. V. DELAWARE, L. & W. E. CO. 75 
 
 • 
 
 This milk which is carried under a single rate charged by 
 agreement or concurrent action of all the lines for all shipping 
 distances on each, line, must be regarded as one mass of traffic 
 destined for consumption only in New York and adjacent cities. 
 It has been largely varied in amount for each line, and the pro- 
 ducing localities served by it, according as greater inducements 
 have been afforded in the way of creamery leases or sales, cheap 
 ice, labor, and other local advantages, refrigeration in transporta- 
 tion, quick service, convenient delivery and like facilities, and by 
 the lower price at which milk of good quality may be sold in locali- 
 ties reached by the line. There has been uniformity in charge 
 and absence of uniformity as to service and traffic inducements 
 on the lines west of the Hudson Kiver. Natural disadvantages 
 of more distant producers have been thereby overcome, and pro- 
 ducers nearer the market have been denied recognition of their 
 more favorable location. Under the present system, the amount 
 of the uniform transportation charge is made the subject of agree- 
 ment between the principal carriers west of the Hudson Kiver, 
 and the cost to dealers in the city market of milk brought over 
 both long and short distances is thereby practically or nearly 
 equalized. This situation facilitates agreements among the 
 dealers as to the price paid to producers, and it does not operate 
 to prevent them from fixing a standard scale of charges to the 
 different classes of consumers. Benefits which may accrue to 
 JSTew York City consumers under the uniform milk rate, would 
 apparently be enhanced rather than diminished under transporta- 
 tion rates properly graded or grouped, and no higher than rea- 
 sonable from the more distant sources of supply. 
 
 The findings demonstrate what was found not to be the fact 
 in the Howell Case, " that the addition of new territory," in con 
 nection with methods adopted for developing the business, " has 
 operated to the prejudice of the old." The nearby section, com- 
 prised within a radius of 100 miles of New York by direct lines, 
 has participated but little in the more than 47 per cent increase 
 in the New York supply during the ten years including 1895. 
 While this is partly due to diversion of land in that section to 
 other than dairy uses, much of it is directly ascribable to the 
 transfer of the patronage of many New York dealers to the dis- 
 tant producers resulting from inducements offered by the long 
 
76 INTERSTATE COMMEECE COMMISSION. 
 
 « 
 
 distance roads. It is probable that in course of time the milk 
 demand in the New York market will equal the producing capacity 
 of all the various localities included within the present uniform 
 rate territory, and this is considered in the findings ; but it is also 
 probable that the carriers will be able, through improved trans- 
 portation methods, to bring milk daily over much greater dis- 
 tances than they do now, and deliver it at their New York City 
 terminals in good condition and at a suitable hour. The course 
 of the West Shore in recently extending the uniform milk rate to 
 a point near BuflEalo, so as to cover a total distance of 417 miles 
 from its Weehawken terminal, illustrates this view. Tiie inter- 
 ests of all milk producers, whether located within 50 or 250 miles 
 of New York City on any of the lines, in retaining the share of 
 this traffic to which their nearer location would naturally entitle 
 them, are "plainly imperilled under a uniform rate for the trans- 
 portation service. This milk territory when the Howell Case was 
 decided was much less extensive than it is now, and what has since 
 been done by carriers under the uniform rate system to add to the 
 volume of their traffic, with little regard to its origin or the cost of 
 service, would doubtless be continued in greater or less degree, if 
 that system should be retained. As the service is now performed, 
 the single rate for all distances is fair neither as between the car- 
 riers nor as between the differently situated producers. 
 
 Bat whether the area of supply has been unnecessarily in- 
 creased or not under the uniform rate and the practices of the 
 carriers, the right of producers nearer the market to a rate which 
 is reasonable in itself for the service rendered, and relatively rea- 
 sonable as compared with the rate charged for the service to other 
 producers of milk, must be upheld. Considering the character 
 and constancy of the traffic, a transportation charge, which is 
 about 25 per cent of the value of the milk, applied on distances 
 as short as 50, 75 or 90 miles seems clearly excessive; and when 
 the same rate is applied by the same carrier over distances of 
 from 264 to 335 or more miles, so that much greater service is 
 rendered for a charge no higher than is imposed on any of the 
 shorter-distance milk, disparity in treatment as to a highly desira- 
 ble and easily handled traffic is shown to a degree that has not 
 been justified in this case. While the service is special, particu- 
 larly in the matters of speed, safe carriage and prompt delivery,. 
 
:M1LK PEODUOEEs' PEOTEOTIVE ASSO. Y. X)ELAWAEE, L. & W. E. CO. 77 
 
 and refrigeration when necessary, the traffic is regular for each day, 
 and specified equipment and crews can be constantly employed in 
 the service, with all the economy resulting from such conditions. 
 While the service costs more, it yields more, and the findings show 
 that per ton moved the revenue from mi]k is four or five times 
 the revenue derived from freight generally. Under economical 
 operation the 32-cent rate on milk and 50-cent rate on cream must 
 afford a reasonable profit to the carriers for the service rendered 
 by them over the extreme distances of 264 to 335 miles shown in 
 this case. Whatever service beyond ordinary freight service ina,j 
 be necessary to provide transportation for the shorter-distance 
 milk is also required for milk from the longer-distance points, 
 and, to some extent, more of such extra serviee is needed by the 
 latter. That the carriers may find it necessary to provide special 
 train service on account of the volume of their business in a par- 
 ticular line of traffic, like milk, is no reason for greatly dispropor^ 
 tionate rates on less distant milk, some of which, as on the Erie 
 east of Port Jervis, or on the Ontario &. Western south of Bloom- 
 ingburgh, requires comparatively little or no icing, and much less 
 fast service, than is necessary to bring the long-distance milk to 
 the terminal at a suitable hour for delivery. It costs the carriers 
 more to transport milk from the longer-distance points of ship- 
 ment ; it costs something more to transport a car of milk for every 
 additional mile it is hauled, both in fuel and wear on track and 
 equipment, and sometimes something for additional labor. 
 
 The present system of a uniform or blanket rate on milk and 
 also on cream from all stations on the various defendant lines 
 west of the Hudson River must be held unlawful under both 
 sections 1 and 3 of the Act to Eegulate Commerce, and the 
 resulting unreasonableness, injustice and wrongful prejudices and 
 preferences should be corrected. 
 
 Charging 33 cents on a 40-quart can of milk weighing 100 
 pounds, and no more than 12 cents on a 15-quart case of bottled 
 milk also weighing, about 100 pounds, nor more than 9.6 cents on 
 a 12-quart case of about 70 pounds, being the same per quart, | of 
 a cent, on each, or carrying for 32 cents 2^ times the weight when 
 the shipment is in bottles or cases instead of in cans, is a disparity 
 in rate for like weight carried, or in service for like rate, for 
 which there has been little attempt at justification in this case. 
 
78 INTERSTATE COMMERCE COMMISSION. 
 
 Several witnesses in the employ of defendant carriers considered 
 the bottle or case rate too low as compared with the rate on cans. 
 One witness endeavored to justify the difference by the fact that 
 more of the filled cases and many more empty cases can be car- 
 ried in a car than is possible or practicable with the shipment in 
 cans ; but this results in no advantage, since it appears, as shown 
 in the findings, that under the same rate on case and can milk the 
 car loaded with cans yields about 86 per cent greater revenue 
 than the car loaded with cases. It is suggested in one of the 
 briefs as a reason why the same rate should be charged that the 
 bottle method has come in vogue because it largely enables 
 the consumer to obtain clean and pure milk. It is true that by 
 shipping in the smaller package, the bottle, the identity of milk 
 sent from a given point or by a particular shipper may be pre- 
 served, but we are unable to see how that or any other safeguard 
 as to quality constitutes a reason for equal rather than higher 
 rates on a grade better than that which is handled in large 
 cans, especially when the quality of the can milk generally sent 
 to and used in the New York market is conceded to be quite up 
 to the standard prescribed by law. On the other hand, it is plain 
 that the producer shipping in cans from a point where bottling 
 is also done by a condensary, a creamery, or by another shipper, 
 pays much more per hundred pounds, including the can, than the 
 shipper in bottles, including the bottles and case, for transporta- 
 tion to the same point. Besides, the bottle milk sells usually at 
 a slight advance per quart over milk delivered from the can. 
 The drippings from ice placed in the box containing bottle milk, 
 during a portion of the year at least, resulting in damage to the 
 car, is also an item to be considered in connection with the greater 
 weight carried by defendants in transporting milk shipped in that 
 way. The facts indicate that the rates on milk in ca,ns should be 
 lower than those on bottle milk from all stations by at least \ of 
 a cent a quart, and if we were only dealing with the question of 
 discrimination in favor of the bottle method, we should have 
 little difficulty in ordering that difference to be made effective. 
 But independently of what should be the just relation of rates on 
 can and bottle milk, the case requires determination of what are 
 reasonable and otherwise lawful rates on milk in cans from 
 stations on the various Hnes. This constitutes the main branch 
 
MILK PKODUCEKS' PROTECTIVE ASSO. V. DELAWARE, L. & W. R. CO. 79 
 
 of the investigation, and in view of the substantial reductions to 
 be ordered in can milk rates from the nearer stations, we think it 
 advisable, under all the circumstances, to refrain for the present 
 from disturbing the rate on milk when shipped in bottles. That 
 rate, ^ of a cent per quart, is no more than reasonable compensa- 
 tion to the carriers for service rendered in carrying shipments in 
 bottles from the less -distant points where the reductions in can 
 milk rates will be made effective, and the carriers will be enjoined 
 from diminishing the differences so resulting in can and bottle 
 milk rates from such stations. On the contrary, we believe that 
 the rate per quart on bottle milk could well be made ■!• of a cent 
 per quart higher from all milk shipping stations than is charged 
 on shipments in cans, and that the carriers would only be serving 
 their just interests by so doing. The proportion of bottle milk 
 and cream ranges, as computed from statements filed for 1894, 
 from less than 4 per cent of the total milk and cream on the 
 Ontario & Western to between 13^ and 16 per cent on the Erie 
 and Lackawanna, and such percentages of total traffic, in view of 
 the constantly increasing New York demand, are not regarded as 
 having operated to greatly diminish the general custom of 
 shipping milk in cans. The foregoing considerations, in connec- 
 tion with the further peculiar condition that ordering a uniform 
 difference of ^ of a cent a quart in favor of can milk would 
 operate to either reduce the can rate from the far-off points as 
 low as 24 cents or to raise the bottle milk rate 8 cents per 40 
 quarts from those points, indicate that the general adjustment of 
 rates on can and bottle milk should, for the present, be left for 
 the carriers to arrange. 
 
 Upon consideration of all the facts and circumstances, and 
 taking into account the peculiarities of this milk and cream 
 service, we conclude as follows : 
 
 That there should be, instead of the present common group 
 with uniform rates per 40-quart can of 32 cents on milk and 50 
 cents on cream, at least four divisions of stations, each division or 
 group taking different rates as hereinafter indicated. The first 
 group should extend 40 miles from the terminal in New Jersey. 
 This distance is still within New Jersey except a few miles over 
 the Erie and "West Shore (the Ontario & "Western running over 
 the West Shore tracks from Cornwall, JST. Y., to Weehawken, 
 
80 INTERSTATE COMMEEOE COMMISSION. 
 
 N. J., 52 miles, and not carrying traffic from points below Corn- 
 wall), and there are few if any interstate shipments of milk from 
 points in this group. The second group should cover a distance 
 of 60 miles, ending at points about 100 miles from the terminal. 
 The third group will embrace stations within the next 90 miles 
 and extend about 190 miles from the terminal. The fourth 
 division will comprise stations beyond 190 miles. 
 
 Ordinarily, the branch line traffic should pay more, but most of 
 the branch lines in the nearby section are short, all of them have 
 heretofore been given main line rates on this traffic, and some of 
 them pass through main line stations of other roads or lead to or 
 near the Hudson River where the traffic is affected by the com- 
 petition of a line of steamers. Again, with an additional charge 
 over main line rates from nearby branch line points, applying the 
 same rate on main and branch lines in the distant region, which 
 the long-distance carriers will doubtless deem necessary, would 
 hardly be consistent. In view of these facts, we think that the 
 group distances and rates for this traffic should be made to apply 
 on branch as well as on main lines. 
 
 The rates charged on milk in 40-quart cans should not exceed 
 23 cents from the first or iO-mile group of stations, 26 cents from 
 the second or 60-mile group, nor 29 cents from the third or 90- 
 mile group. A rate of 32 cents per iO-quart can of milk from 
 stations more distant than 190 miles is not unreasonable. Oream 
 is four or five times more valuable than milk, and we see no reason 
 for disturbing the present difference of 18 cents in the rates on 
 these commodities. 
 
 On the basis of the present rates per iO-quart can of 32 cents on 
 milk and 50 cents on cream from stations more than 190 miles 
 from the point of delivery, the rates on shipments in cans from 
 the various groups will be as follows : 
 
 Group 1. — ■ 40 miles from terminal. 
 
 41 cents. 
 
 44 cents. ' 
 
 47 cents. 
 Group 4. — Beyond 190 miles from terminal. 
 Can Milk, 32 cents. Can Oream, 50 cents. 
 
 Can Milk, 
 
 23 cents. 
 
 Can Cream, 
 
 
 Group 2. - 
 
 — Next 60 miles. 
 
 Can Milk, 
 
 26 cents. 
 
 Can Cream, 
 
 
 Group 3. - 
 
 - JS'ext 90 miles. 
 
 Can Milk, 
 
 29 cents. 
 
 Can Cream, 
 
MILK PEODUCEES' PKOTECTIVB A8S0. V. DELAWAEE, L. & W. E. CO. 81 
 
 These relations should be maintained, and any necessary grad- 
 ing at the end of one and the beginning of another group should 
 apply over the shortest possible distance. It will be noted that 
 the 3-eent lower rate on can milk from each less distant group is 
 substantially 10 per cent less than the rate from stations in the 
 preceding more distant group ; and that for each division of 
 stations tiie cream rate in cans is 18 cents higher than the can 
 milk rate from such station. Any reduction which may hereafter 
 be made in the present rate of ^ of a cent a quart on bottle milk 
 should be followed by corresponding change in the rate from each 
 group on can milk, and any lowering of the rate on cream in bot- 
 tles should also result in like change in can cream rates. Nothing 
 here said is intended to preclude the carriers from increasing their 
 rates on bottle milk and cream without changing the rate on the 
 same article when shipped in 40-quart cans. 
 
 The foregoing group distances are not applicable to the Ulster 
 & Delaware road. This line passes by difficult grades over the 
 Catskill Mountains, and all its milk is gathered beyond the moun- 
 tains between Bloomville, N. Y., its terminus, 175 miles from 
 Weehawken, and a point on its line at or near Fleischmann's, N. 
 Y;, 133 miles from "Weehawken. The present rates on milk and 
 cream over this line from the territory mentioned do not appear 
 to be unreasonable or otherwise unlawful, under the circum- 
 stances. This road connects with the West Shore at Kingston, 
 which is about 88 miles from Weehawken. The second or 60- 
 mile group runs out 100 mUes from that terminal, and for the 
 Ulster & Delaware, we think the third group from the terminal 
 should end at about 130 miles on that road from Weehawken, 
 and the remainder of its mileage, about 50 miles, should constitute 
 its fourth group, from which 32 and 50-cent rates on can milk 
 and cream are not deemed unreasonable. Any shipments made 
 from points on this road in the second group out from Weehawken 
 or from the third group of 30 miles above mentioned, should not 
 be charged higher than the maximum rates herein determined 
 for the second and third groups on other lines ; and what is above 
 required in case of reduction in the rate on bottle milk or cream 
 is also to be observed. 
 
 Using the short-line distance, all points on the Wallkill Valley 
 come within the second or 60-mile group. A few points on the 
 6 
 
82 
 
 INTERSTATE COMMERCE COMMISSION. 
 
 Lehigh & Hudson Eiver via the Erie, are in the third group, but 
 those points may be reached by other connections over distances 
 which come within the second group. The rates from all points 
 on the Wallkill Yalley and Lehigh & Hudson Eiver should not 
 exceed those applicable from the second or 60-mile group. 
 
 Points on the Jefferson division or Carbondale branch of the 
 Erie are in group 4 by the Erie distance, but some of them are in 
 group 3" by a shorter distance route via the Scranton branch of 
 the Ontario & Western. The Erie should charge group 3 rates 
 from points on its Carbondale branch which can be reached over 
 distances less than 190 miles by using the Scranton branch of the 
 Ontario & Western, and it is hereby granted such relief from the 
 operation of the ith section as may be necessary to enable it to 
 lawfully effect that purpose. 
 
 The Susquehanna is entitled, on shipments of milk and cream 
 from ISfew York points which it carries through JSTew Jersey and 
 delivers in New York City, to charge such an addition to its rate 
 to Jersey City as is reasonably warranted by the greater cost of 
 delivering in New York. 
 
 The New Haven road runs through entirely different territory 
 from that which is penetrated by the other defendant lines. It 
 gets no milk within 72 miles of New York and none beyond 163 
 miles from that city, making a milk territory of about 91 miles, 
 and its rates are now upon a much lower scale than is charged by 
 other carriers or than is herein found lawful for such carriers over 
 like distances from the terminal. Rates of 25 cents per 40-quart 
 can of milk or cream, 22^ cents per 30-quart can and 20 cents per 
 20-quart can, for the group distances above mentioned having 
 been heretofore maintained and being now in effect will have no 
 greater influence upon the traffic of the other carriers or the in- 
 terests of producers along other lines under the changes in rates 
 to be made on such other lines. The New Haven, while charging 
 only 25 cents per 40-quart can, also charges 1 cent per quart on 
 bottled milk or cream. That it makes no lower charge on milk 
 than on cream may be open to some criticism, but its rate on milk 
 is already reasonably low, and we do not feel inclined to disturb 
 its schedule on that account. No order will now be entered as 
 against that company. 
 
 Although we find little reference in the record to the custom 
 
MILK PEODUOEES' PEOTECTIVE ASSO. V. DELAWAEE, L. & W. E. OO. 83 
 
 of some of the carriers to charge 32 cents per can, whether hold- 
 ing 40 quarts or less quantity, and the practice on most of the 
 lines is to ship milk in 40-quart cans, we note that the New Haven 
 road charges less for 30-quart and for 20-quart cans of milk and 
 that the recent tariff of the West Shore provides for charging the 
 per quart rate on cans holding less than 40 quarts. "We think 
 provision should be made by all the defendants for a reasonably 
 less rate per can when the can capacity is less than 40 quarts, but 
 a somewhat higher charge per quart on cans of less than 40-quart 
 capacity would be proper. 
 
 The groups or divisions herein defined appear to include sta- 
 tions on the various lines as follows : 
 
 Main Lines. 
 
 Geottp 1 40 miles from terminal. 23-cent rate. 
 
 West Shore ...Tappan, N. Y., 19 miles, to Jones Point, N. Y., 39 miles. 
 
 Erie _8uflfern, N. Y., 31 miles, to Tuxedo, N. Y., 37 miles. 
 
 GrEOUE 2 Next 60 miles. 26-cent rate. 
 
 West Shore lona Island, 41 miles, to Saugerties, 99 miles. 
 
 Erie ...Southfield, 41 miles, to Pond Eddy, 99 miles. 
 
 Ontario & Western. Cornwall, 52 miles, to Summitville, 98 miles. 
 
 Susquehanna -.Unionville, 74 miles, to Middletown, S8 miles. 
 
 Lackawanna Portland, Pa., 82 miles, to Spragueville, about 98 miles. 
 
 Lehigh Valley Easton, Pa., 76 miles, to Whitehall, 99 miles. 
 
 Gkoup 3 Next 90 miles. 29-cent rate. 
 
 West Shore Catskill, 110 miles, to Canajoharie, 190 miles. 
 
 Erie, _ _ Parker's Glen, 102 miles, to Susquehanna, 191 miles. 
 
 Ontario & Western. Mountalndale, 101 miles, to Franklin, 190 miles. 
 
 Lackawanna-- Henryville, about 101 miles, to New Milford, about 188 
 
 miles. 
 Lehigh Valley Laury's, 101 miles, to Bansom, 189 miles. 
 
 Gboup 4 -Beyond 190 miles. Present rate 32 cents. 
 
 Stations on defendant lines located more than 190 miles 
 from terminal. 
 
 Beanches and Connections. 
 
 West Shore 
 
 Wallkill Valley - Group 2. All stations. 
 
 Ulster & Dela-ware Group 2. Stony Hollow, 94 miles, to 
 
 Olive Branch, 98 miles. 
 Group 3. (30 miles.) Brown's station, 
 101 miles, to Pine Hill, 
 126 miles. 
 (Stations beyond are in fourth 
 division.) 
 
84 
 
 INTERSTATE COMMERCE COMMISSION. 
 
 Erie 
 
 Newburgh branch from Turner's. - -Group 3. All stations. 
 
 Newburgh branch from Greycourt. " " 
 
 Pine Island branch " " 
 
 Montgomery branch " " 
 
 Middletown & Crawford branch... " " 
 
 Jefferson or Carbondale branch Group 3. Stations from which short 
 
 line distance ma Scran ton 
 branch of O. & W. is 190 
 miles or less. 
 Group 4. All other stations. 
 
 Lehigh & Hudson River Group2. All stations. 
 
 Ontario & Western ' 
 
 Philadelphia, R. & N. B Group 2. All stations to Hudson 
 
 River. 
 
 EUenville branch Group 2. All stations. 
 
 Scranton branch Group 3. All stations to Forest City, 
 
 190 miles. 
 Group 4. All stations beyond 190 
 miles. 
 
 Delhi branch -- - _ Group 3. Stations to DeLancey, 190 
 
 miles. 
 Group 4. Delhi, 196 miles. 
 
 Port Jervis, Mont. & N. Y .Group 3. All stations. 
 
 Other branches and connections Group 4. All stations. 
 
 Branclies and connections of other lines are all beyond the 1.90- 
 mile distance reached by Group 3. 
 
 The defendants affected by this decision should proceed im- 
 mediately to readjust their rates in accordance with the foregoing 
 conclusions, and publish and file the new rate schedules on or 
 before April 15 next. 
 
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