B-154936, JUN. 30, 1965

B-154936, JUN. 30, 1965

TO ILLINOIS CENTRAL RAILROAD:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF APRIL 5, 1965, FILE R 31-X-GT G-AR-67005-BG, REQUESTING THAT WE RECONSIDER THE CONCLUSIONS REACHED IN OUR LETTER OF JANUARY 22, 1965, B-154936, WHEREIN WE SUSTAINED THE SETTLEMENT ACTION WHICH DISALLOWED YOUR CLAIM FOR $27.84 IN ADDITIONAL FREIGHT CHARGES ON THE SHIPMENT MADE UNDER BILL OF LADING AT-438866.

ALTHOUGH YOU AGREE THAT THE PROVISIONS OF SOUTHERN FREIGHT ASSOCIATION SECTION 22 QUOTATION ADVICE A-2582 PERMITS THE LOADING OF ARTICLES NOT RELATED TO THE TRANSITED COMMODITY WITH THE OUTBOUND TRANSIT SHIPMENT, AND THAT THE TRANSIT QUOTATION AUTHORIZES THE USE OF THE CARLOAD RATES ON THE ACTUAL WEIGHT OF THE NONTRANSIT ARTICLES, YOU CONTEND NEVERTHELESS THAT THE MINIMUM WEIGHTS ORDINARILY ASSOCIATED WITH THOSE RATES MUST BE PROTECTED IF THEY ARE TO BE USED AND THAT AS THE LESS-THAN-CARLOAD RATES APPLIED TO THE NONTRANSITED TONNAGE PRODUCE LOWER CHARGES, SUCH CHARGES AS TO THE NONTRANSITED TONNAGE SHOULD BE ALLOWED. IN SUPPORT OF YOUR POSITION, YOU INVITE ATTENTION TO THE PROVISIONS OF RULE 10 OF THE FREIGHT CLASSIFICATION AND URGE THAT THE AUTHORIZATION FOR THE MIXING OF DIFFERENT ARTICLES IN A SHIPMENT IS DERIVED FROM THAT RULE.

IN ADDITION TO THE WORDS AUTHORIZING THE USE OF THE CARLOAD RATE ON THE ACTUAL WEIGHT, ITEM 16 (H) OF QUOTATION A-2582, SET FORTH IN OUR DECISION OF JANUARY 22, 1965, FURTHER PROVIDES, IN THE LAST SENTENCE, THAT THE WEIGHT OF THESE NONTRANSITED ARTICLES CAN NOT BE USED IN MAKING UP THE CARLOAD MINIMUM WEIGHT. THIS PROVISION, SPECIFICALLY EXCLUDING THE USE OF THE WEIGHT OF NONTRANSITED ARTICLES PERMITTED TO BE INCLUDED IN THE OUTBOUND SHIPMENT IN MAKING UP THE CARLOAD MINIMUM WEIGHT, SEEMS CLEARLY TO DISTINGUISH THE TRANSIT PRIVILEGE GRANTED FROM THE RULE 10 MIXING PROVISION AND THE MIXING PROVISION OF RULE 10APPEARS TO HAVE NO APPLICATION IN THE MATTER. MOREOVER, TO PERMIT PAYMENT FOR THE NONTRANSITED WEIGHT INCLUDED IN THE OUTBOUND SHIPMENT AT LESS-CARLOAD- RATES AS BILLED WOULD CLEARLY CONTRAVENE THE PROVISIONS OF ITEM 16 (H) OF THE QUOTATION WHICH SPECIFICALLY AUTHORIZES SHIPMENT OF SUCH NONTRANSIT TONNAGE IN THE OUTBOUND TRANSIT SHIPMENT AT THE APPLICABLE CARLOAD RATE AND AT THE ACTUAL WEIGHT THEREOF AND MAKE THE LANGUAGE USED MEANINGLESS.

SINCE THE USE OF THE CARLOAD RATES ON THE ACTUAL WEIGHT OF THE NONTRANSIT ARTICLES IS A PROVISION OF THE TRANSIT QUOTATION AND IS AVAILABLE ONLY WHEN THE NONTRANSIT WEIGHT IS SHIPPED WITH A CARLOAD SHIPMENT UPON WHICH TRANSIT HAS BEEN GIVEN, IT COMPRISES A PART OF THE TRANSIT PRIVILEGE AND IS GOVERNED BY THE RULES AND REGULATIONS CONTAINED IN THE QUOTATION. FORT WORTH GRAIN AND COTTON EXCHANGE V. MISSOURI-KANSAS-TEXAS R.CO., 201 I.C.C. 135, 138.

THE SHIPPING RECORD SHOWS THAT THE NONTRANSIT ARTICLES WERE LOADED WITH THE OUTBOUND TRANSIT MOVEMENT BY THE GOVERNMENT AND THAT THE CAR MOVED TO DESTINATION UNDER SEAL. THE CARRIERS WERE THUS RELIEVED AS TO THE NONTRANSITED TONNAGE OF TERMINAL AND TRANSFER SERVICES AND THE OTHER ORDINARY INCIDENTS OF LESS-THAN-CARLOAD TRANSPORTATION. FOR THE SERVICES RENDERED, YOUR COMPANY HAS BEEN ALLOWED CHARGES BASED ON A MINIMUM WEIGHT OF 20,000 POUNDS COMPUTED AT A THROUGH RATE OF $1.33 PER HUNDRED POUNDS (APPLIED TO THE 14,929 POUNDS OF COTTON WORK CLOTHING COMPRISING THE TRANSIT SHIPMENT), PLUS $19 IN TRANSIT CHARGES AND $64.89 FOR THE NONTRANSIT ARTICLES. SINCE THIS SETTLEMENT BASIS SEEMS CONSONANT WITH THE PROVISIONS OF THE TRANSIT QUOTATION, OUR PREVIOUS LETTER SUSTAINING THE SETTLEMENT ACTION IS AFFIRMED.