Opinion ID: 1483125
Heading Depth: 1
Heading Rank: 1

Heading: Freight Rate Books.

Text: In the early part of this opinion we enumerated certain practices charged in the complaint as methods employed for making the multiple basing point price system effective, oftentimes referred to by the Commission as acts of implementation. These methods and acts, as found by the Commission, were employed by groups of respondents, some by one group and some another. None, so far as we are aware, was used by all. They are what are known in the law of conspiracy as overt acts and their materiality depends upon the establishment of the conspiracy alleged. Inasmuch as we conclude that the Commission has failed to establish the unlawful conspiracy charged, it appears unnecessary to enter into any detailed discussion of the methods asserted to have been used for the purpose of making the system effective. Typical of such methods and the one perhaps of greatest importance from the standpoint of the Commission was the publication by the Institute and the use by some of the respondents of freight rate books which contained the railroad freight rates from many points of shipment to those of destination. Finding 8(g) states: The Institute rate books have regularly been used for pricing purposes, either directly or indirectly, by most of the corporate respondents located in territory covered by the rate books   . It will be noted that this finding is indefinite as to which of the respondents used these rate books. The fact is that it was never used by many of the respondents, including all those located on the Pacific Coast. The finding concludes: The use of Institute freight rate books was not limited to members of the Institute; nonmembers were permitted to, and some did, purchase rate books from the Institute. The record also discloses that the rate books were not only available to members of the industry but to any member of the public who cared to purchase the same, also that freight rate books had long been in use by the industry prior to the beginning of the alleged conspiracy now relied upon. In fact, it was one of the important matters considered in the old Cement case. It is also material to note that the basing points from which the freight rates were calculated were not selected by the Institute, and each member of the Institute was free to use or not use this freight rate service. The chief criticism directed at these books is that they failed to show the actual freight rate. This is explained, however, from the fact that the freight rate on cement as established and furnished by the railroads was so much per hundred pounds. Cement is handled and sold largely by the barrel, so in the preparation of these books either the Institute or persons acting under its direction converted this rate per hundred pounds to a rate per barrel. In doing so, the fractions of a cent were ordinarily dropped, so in some instances the rate shown would be a fraction of a cent more and in other instances a fraction of a cent less than the actual rate. The court in the old Cement case, concerning the use of such rate books, stated (268 U.S. at page 597, 45 S.Ct. at page 589, 69 L.Ed. 1104): The basing points from which freight rates were calculated were not selected by the association, but were the same as those appearing in prior books published by individuals before the publication of the association freight rate book.    The rates published are the actual rates omitting fractions of cents between the basing points and actual points of delivery. The court continues (268 U.S. at page 598, 45 S.Ct. at page 589, 69 L.Ed. 1104): In order, however, to determine the delivered price, there must be added to the factory price of a given manufacturer, the cost of transportation to the point of delivery. Prompt quotation of a delivered price therefore involves the ability to carry out promptly the mechanical process of adding to the mill price, the cost of transportation to the point of delivery. Lists of freight rates, in convenient and readily available form, are therefore necessary adjuncts to the quotation of delivery prices for cement.