It should also be observed that the quality of the water was complained against chiefly during the summer of 1914. The record shows that the pipe line to Singer's Gap was put into operation in November, 1913. The new line is practically 5 miles long, and in its construction the joints were treated to a tar preparation which gives the water running through the pipes the odor of oil or tar. It would naturally take some time before all traces of that odor would disappear entirely, and therefore some of the "bad taste and bad odor" present in the water during the summer of 1914, may be ascribed to the condition of the new pipe line from Singer's Gap.

The report of the inspector for the state department of health indicates quite clearly that there is not the proper vigilance exercised by respondent in protecting the stream and approaches of the reservoir at Singer's Gap from pollution. Such a situation as was described by the health officer shows serious neglect of a grave public duty. An order will be issued upon the respondent to take proper steps to remove all sources of contamination from its water supply, and to set forth in its report to the Commission the scope and character of the means employed to accomplish that end.

(4) Is the water pressure adequate to afford proper fire protection? The ordinance under which the company operates requires a pressure that will throw a stream 90 feet high under certain specified conditions at the crossing of Jefferson and Market streets, in Mount Union. Testimony was given by the fire chief of Mount Union, that on August 5, 1914, at a fire which occurred at one of the lowest points in the borough, he was unable to get any pressure; that on November 7, 1914, he made a pressure test, and found that on Market street he could get a stream only 40 feet high. The record shows that the time here mentioned were the days on which the respondent found the valve on the 8-inch main from Singer's Gap closed, thereby cutting off approximately one half of the water supply to the borough.

The fire chief also testified that on September 25, 1914, a fire, known locally as the Walker-Appleby fire, broke out in one of the lower portions of the town, and that he was apparently not able to get more than a 15-foot pressure. His testimony was corroborated by other witnesses. In his testimony upon this partic

ulur fire, the president of the water company said the stream about which the witnesses were testifying at the above fire was weak, and not sufficient for the purpose, but it was wholly due to the extra long line of hose used, which was leaking freely at every joint. There was another stream, the president testified, playing upon the fire from a plug 75 feet away that was strong enough to require three men to hold the nozzle, and by means of which the house next to the one burning, 10 or 15 feet away, was saved.

Since the hearing was held a test was made, at the request of this Commission, by the engineer for the water company and the engineer for the borough of Mount Union, of "the pressure of the water on the lines of the Mount Union Water Company at the corner of Market and Jefferson streets, with the following result: At 3:45 P. M., on a clear day, southwest wind, through a 50 foot, 2-inch rubber hose, and a 1-inch nozzle, a stream was thrown vertically 108.7 feet. The test was satisfactory to the complainant as applying to this season of the year, but as the streams are full in April, the complainant asks that other tests be ordered by the Commission to be made "later in the year when there is the usual dry weather."

From the facts submitted in the testimony, the Commission finds:

(1) That the respondent did not violate the franchise ordinance under which it operates when it increased the rates.

(2) That the rates in the schedule of July 1, 1914, effective August 15, 1914, are not unreasonable and excessive.

(3) That the quantity of water supplied by respondent is adequate and sufficient for domestic consumption.

(4) That the stream and reservoir at Singer's Gap must be properly protected against pollution and contamination from surface drainage off the adjacent public highway, and all other slopes, approaches, and places set forth in the record, and that respondent take proper steps to secure that end.

(5) That respondent report to this Commission not later than July 1, 1915, the scope and character of the means employed at Singer's Gap to safeguard the purity of the water.

(6) That tests of the pressure of the water on the lines of the respondent as specified in the borough ordinance be made by the engineers of the water company and the borough in the months of

July, August, September, and October, 1915, and that the result of each test be reported to the Commission within ten days after the test has been taken.

An order will be issued in accordance with the aforesaid find

ing.

PENNSYLVANIA PUBLIC SERVICE COMMISSION.

WEST VIRGINIA PULP & PAPER COMPANY et al.

v.

PENNSYLVANIA RAILROAD COMPANY et al.

[Complaint Docket No. 300.]

Evidence-Burden of proof – Reasonableness of railroad rates. Under the Pennsylvania statute placing the burden of proving the reasonableness of a proposed increase of rates upon the carrier, it is sufficient if the evidence produced satisfies the minds of the Commission, acting fairly and endeavoring to reach a correct conclusion, that the rates as they are increased are reasonable and just.

Evidence

Burden of proof-Sufficiency of evidence to sustain as to wood-pulp rates.

The burden of proof as to the reasonableness of a proposed advance in wood-pulp rates by the restoration of wood pulp to class D commodities was held sustained upon testimony that such increased rates were not greater than those upon similar commodities with the exception of one commodity of minor importance, and that the railroad companies were passing through a period of decreased net revenue, although there was some evidence that wood-pulp rates were lower in other jurisdictions.

In the absence of testimony showing a similarity of conditions, a length of time sufficient to test the effect of a proposed advance in wood-pulp rates, the compensation produced by them as compared with the outlay, and other important facts, it would be unsafe to rest a decision as to the reasonableness of such rates upon a comparison with the rates upon the same commodity in other jurisdictions.

[May 20, 1915.]

COMPLAINT by the West Virginia Pulp & Paper Company and other companies engaged in the manufacture of paper that the respondent railroad companies had recently published and fixed local and joint tariffs of pulp wood which increased the carload rates to the extent of 10 cents per net ton, and that the

increased rates were excessive, discriminatory, unjust, and unreasonable; dismissed.

Appearances: O. H. Hewitt and Robert D. Jenks for complainant; William I. Schaffer and F. L. Ballard for the respondents.

Pennypacker, Chairman: The complaint sets forth that the complainants are corporations engaged in the manufacture of book and other commercial paper, having mills at Tyrone, Williamsburg, Lock Haven, Roaring Spring, York Haven, and Johnsonburg, in Pennsylvania; that they use a large amount of pulp wood, of which approximately, 150,000 tons per annum are shipped to these mills from various places within the state of Pennsylvania; that the transportation of pulp wood is a desirable business for the railroads, since it can be handled at a low cost, does not require an expedited movement, and can be handled in many different types of cars; that the rates charged for the transportation of pulp wood heretofore were "unjust and unreasonable; that the railroads, respondents, have recently published and filed local and joint freight tariffs on pulp wood in carloads, which increase the carload rate to the extent of 10 cents per net ton;" that the effect will be to increase the rate which they pay on shipments of pulp wood from points in Pennsylvania to their mills "from 10 to 18 per cent;" and that these increased rates are "excessive, discriminatory, unreasonable, and unjust."

The petition then asks that the respondents be commanded to "cease and desist from charging such unjust, unreasonable, and discriminatory rates" and for reparation.

The answer of the respondents admits that the transportation of pulp wood does not require an expedited movement, that it can be handled in different types of cars, and that it is a desirable traffic, but denies that it yields a large revenue or can be handled at a low cost, and denies that the rates "are excessive, discriminatory, unreasonable, unjust, or otherwise in violation of law." From the testimony taken at the hearings, the following facts are found:

Pulp wood is a low-grade commodity procured from lumber operations. After the lumbermen have removed the saw logs, veneer logs, and prop timber, the residuum is sawed into sticks

from 4 to 5 feet in length for pulp wood. If not so used, it would probably be left to rot in the woods. It includes all kinds of timber except oak, ash, hickory, and chestnut. The sticks are 2 inches in diameter and as much larger as they can be secured. It may be described as the refuse of the timber. Box, stock, regular, and gondola cars are used in its transportation. It does not have to be protected from the weather. During the year ending September 30, 1913, the complainants received 5,966 cars, containing 141,061 tons of pulp wood, upon which they paid freight amounting to $111,836. About two thirds of this amount was intrastate traffic. The freight charges represent 41.5 per cent of the cost of pulp wood at the shipping point.

The rates against which the complaint is made increase the percentage at Tyrone, 13; Williamsburg, 13; Roaring Spring, 13.5; York Haven, 7.4; Lock Haven, 3.5, and Johnsonburg, 11.7 per cent.

Upon the real question which is raised between the parties upon this complaint and answer, that is, as to whether or not the increase of 10 cents a ton upon the transportation of pulp wood by the respondents to the plants of the complainants is excessive, unreasonable, discriminatory, or unjust, the evidence is rather meager. It appears that the rates charged by the Pennsylvania Railroad for the transportation of pulp wood are nowhere in the state less than the charges to the complainants.

Under IV. of article V. of the act of July 26, 1913, it is provided that "at any such hearing involving any proposed increase in any rate, the burden of proof to show that such increased rate is just and reasonable shall be upon the public service company."

The respondents made no attempt to prove what was the cost of the transportation of pulp wood, or what was the resulting compensation to them for such transportation. In a general way the general freight agent of the Pennsylvania Railroad Company testified that the rates upon pulp wood were inherently low, and in comparison with other rates had not been remunerative. It is manifest that to ascertain the cost of the transportation of any special commodity with exactness would require an investigation of what would be a reasonable return upon the entire capitalization of the corporation and a valuation of its entire property.