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B-148014, JUN. 3, 1963

B-148014 Jun 03, 1963
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MOBILE AND OHIO RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 20. WHICH IN EFFECT STATES THAT RATES IN THE TARIFF TO GROUP H POINTS WILL NOT APPLY THROUGH POINTS IN GROUP D TO WHICH THE RATE APPLICABLE TO A LIKE SHIPMENT IS HIGHER THAN THE RATE TO POINT OF DESTINATION. THE SHIPMENT OF HOUSEHOLD GOODS WAS ROUTED VIA CHICAGO. SINCE THIS IS HIGHER THAN $3.54 (PLUS INCREASES). THE RESTRICTION IN THE THIRD COLUMN OF ITEM 9815-A OF TARIFF 2-X IS MADE INEFFECTIVE BY EXCEPTION 10 APPLIED AGAINST THE D-1 (NEW ORLEANS) RATE GROUP. IS TO GIVE EFFECT TO THE APPLICATION OF GROUP H RATES ON EXPORT TRAFFIC. IT IS UNDERSTANDABLE THAT THE GROUP H RATE TO NEW ORLEANS WOULD BE LOWER THAN THE GROUP D RATE TO CHICAGO SINCE.

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B-148014, JUN. 3, 1963

TO GULF, MOBILE AND OHIO RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 20, 1962, FILE W- 66177-CL27, IN WHICH YOU REQUEST RECONSIDERATION OF OUR DECISION OF MAY 8, 1962, B-148014. THE DECISION SUSTAINED THE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR $60.25, THE ADDITIONAL FREIGHT CHARGES ALLEGEDLY DUE ON A SHIPMENT OF HOUSEHOLD GOODS TRANSPORTED FROM GREAT FALLS, MONTANA, TO NEW ORLEANS, LOUISIANA, ON GOVERNMENT BILL OF LADING NO. AF-8332686, DURING OCTOBER 1958. WE HELD IN THE DECISION THAT EXCEPTION 10 IN ITEM 9815-A OF AGENT PRUETER'S TRANS-CONTINENTAL FREIGHT BUREAU FREIGHT TARIFF 2-X, I.C.C. 1590, EFFECTIVELY INVALIDATED ANY OF THE ROUTING INSTRUCTIONS IN THE ITEM AND THEREBY ALLOWED THE USE OF GROUP H RATES ON SHIPMENTS MOVING FROM NORTH COAST POINTS (CIRCLE REFERENCE 31) TO NEW ORLEANS FOR EXPORT THROUGH LOUISIANA POINTS (C-2 POINTS) ON THE ROUTE OF THE GULF, MOBILE AND OHIO RAILROAD, WEST OF THE MISSISSIPPI RIVER, FROM CHICAGO TO NEW ORLEANS.

IN YOUR REQUEST FOR RECONSIDERATION YOU URGE THAT GROUP H RATES WOULD NOT APPLY BECAUSE OF A RESTRICTION IN THE THIRD COLUMN OF ITEM 9815-A OF TARIFF 2-X (SUPPLEMENT 16), WHICH IN EFFECT STATES THAT RATES IN THE TARIFF TO GROUP H POINTS WILL NOT APPLY THROUGH POINTS IN GROUP D TO WHICH THE RATE APPLICABLE TO A LIKE SHIPMENT IS HIGHER THAN THE RATE TO POINT OF DESTINATION. THE SHIPMENT OF HOUSEHOLD GOODS WAS ROUTED VIA CHICAGO, ILLINOIS, A GROUP D POINT, AND YOU SAY THAT ON A LIKE SHIPMENT THE GROUP D RATE TO CHICAGO WOULD BE $3.81 (PLUS INCREASES). SINCE THIS IS HIGHER THAN $3.54 (PLUS INCREASES), THE GROUP H RATE TO NEW ORLEANS, YOU CONTEND THAT THE RESTRICTION PREVENTS APPLICATION OF THE GROUP H RATE ON THE SHIPMENT.

IN OUR OPINION, THE RESTRICTION IN THE THIRD COLUMN OF ITEM 9815-A OF TARIFF 2-X IS MADE INEFFECTIVE BY EXCEPTION 10 APPLIED AGAINST THE D-1 (NEW ORLEANS) RATE GROUP. AS STATED IN OUR DECISION, EXCEPTION 10 EFFECTIVELY INVALIDATES ANY OF THE ROUTING INSTRUCTIONS SHOWN IN ITEM 9815 -A. FURTHER, THE CLEAR INTENT OF EXCEPTION 10, AS PLACED IN RELATIONSHIP TO THE GROUP D-1 LOCATION IN THE ITEM, IS TO GIVE EFFECT TO THE APPLICATION OF GROUP H RATES ON EXPORT TRAFFIC; THUS, IT IS UNDERSTANDABLE THAT THE GROUP H RATE TO NEW ORLEANS WOULD BE LOWER THAN THE GROUP D RATE TO CHICAGO SINCE, AS A GROUP, EXPORT RATES TO THE PORTS GENERALLY ARE LOWER THAN DOMESTIC RATES ON LIKE SHIPMENTS TO INTERIOR POINTS WHICH LIE IN THE GENERAL DIRECTION OF THE PORTS. IT SHOULD BE NOTED THAT A RATE ON A "LIKE SHIPMENT" TO GROUP D (CHICAGO) IS NOT AVAILABLE, AS REQUIRED BY THE HEADING OF THE THIRD COLUMN OF ITEM 9815, SINCE NO EXPORT RATES TO CHICAGO, ILLINOIS, ARE NAMED IN THE TARIFF.

THE FACT THAT IN ITEM 9815-A OF TARIFF 2, A REISSUE OF TARIFF 2-X, THE THE GROUP II POINT WAS AMENDED BY THE ADDITION OF EXCEPTION 20, ON MAY 15, 1961, CANNOT AFFECT THE APPLICABILITY OF THE RATES AND ROUTES IN TARIFF 2- X. IF ANYTHING, THE AMENDMENT CLARIFIES THE INTENT OF THE TARIFF COMPILERS THAT THE GROUP II RATES ON EXPORT TRAFFIC ARE TO APPLY VIA THE SAME ROUTES OVER WHICH THE GROUP D-1 RATES APPLY. AND THE USE OF THE REDUCTION SYMBOL IN ITEM 9815-A OF TARIFF 2 HAS NO EFFECT ON THE APPLICABILITY OR INAPPLICABILITY OF THE GROUP II RATES IN THE TARIFF. MOREOVER, THIS WOULD BE CONSISTENT WITH THE PLAN OF THE EXPORT COMMODITY RATES NAMED IN SECTION 3 OF THE TARIFF, ALL OF WHICH RATES APPLY VIA ALL LINES PARTIES TO THE TARIFF EAST OF THE WESTERN GATEWAYS.

IN YOUR LETTER YOU CALL ATTENTION TO THE FACT THAT THE GROUP H RATE OF $3.54 IS RAISED BY INCREASE TARIFFS TO $4.04, RATHER THAN $3.94, THE RATE USED IN OUR SETTLEMENT OF SEPTEMBER 6, 1961. WE HAVE INSTRUCTED OUR TRANSPORTATION DIVISION TO REOPEN THE SETTLEMENT AND TO RECOMPUTE THE CHARGES ON THE BASIS OF THE $4.04 RATE AND YOU SHOULD RECEIVE NOTICE OF THE REVISION IN DUE COURSE.

OUR DECISION OF MAY 8, 1962, B-148014, IS NOT SHOWN TO HAVE BEEN IN ERROR OTHERWISE, AND, ACCORDINGLY, IT IS AFFIRMED.

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