B-127844, OCT. 12, 1956
Highlights
ACCOUNTING DEPARTMENT: REFERENCE IS MADE TO YOUR LETTER. IT IS YOUR CONTENTION THAT THE LAND-GRANT ROUTE USED BY THE GOVERNMENT FOR THE COMPUTATION OF THE NET LAND-GRANT RATE CANNOT BE RECOGNIZED AS A VALID CONSTRUCTION OF YOUR TARIFF FOR THE REASON THAT THE PERCENTAGE OF CIRCUITY EXCEEDS THE 50 PERCENT STANDARD PERCENTAGE OF CIRCUITY ADOPTED BY THE INTERSTATE COMMERCE COMMISSION WHERE THE SHORT ROUTE IS MORE THAN 170 MILES BUT NOT OVER 1. IT IS YOUR CONTENTION THAT THESE RULINGS HAVE NO APPLICATION TO TARIFFS. THE ROUTES WILL APPLY STRICTLY AS THUS PROVIDED IN THE TARIFF WITHOUT REGARD TO CIRCUITY. THIS PRINCIPLE IS BASED UPON THE RULE THAT TARIFFS ARE CONSTRUED STRICTLY AGAINST THE CARRIERS WHICH COMPOSED THEM SINCE SHIPPERS ARE BOUND BY LAW TO RELY UPON THE TARIFFS AS WRITTEN.
B-127844, OCT. 12, 1956
TO ILLINOIS CENTRAL RAILROAD, ACCOUNTING DEPARTMENT:
REFERENCE IS MADE TO YOUR LETTER, DATED AUGUST 24, 1956, REQUESTING RECONSIDERATION OF OUR DECISION, B-127844, DATED AUGUST 6, 1956, WHICH DISALLOWED YOUR CLAIM, PER FILE G-WQ-951-BG, FOR ADDITIONAL FREIGHT CHARGES IN THE AMOUNT OF $260.45, BEING THE DIFFERENCE BETWEEN THE CHARGES COMPUTED AT THE NET LAND-GRANT RATE AND THE GROSS COMMERCIAL RATE.
IT IS YOUR CONTENTION THAT THE LAND-GRANT ROUTE USED BY THE GOVERNMENT FOR THE COMPUTATION OF THE NET LAND-GRANT RATE CANNOT BE RECOGNIZED AS A VALID CONSTRUCTION OF YOUR TARIFF FOR THE REASON THAT THE PERCENTAGE OF CIRCUITY EXCEEDS THE 50 PERCENT STANDARD PERCENTAGE OF CIRCUITY ADOPTED BY THE INTERSTATE COMMERCE COMMISSION WHERE THE SHORT ROUTE IS MORE THAN 170 MILES BUT NOT OVER 1,000 MILES. YOU FURTHER STATE THAT THE SEVERAL COMMISSION RULINGS CITED IN OUR PREVIOUS DECISION, MENTIONED ABOVE, DID NOT INVOLVE TARIFFS PROVIDING SPECIFIC RESTRICTED ROUTING. APPARENTLY, IT IS YOUR CONTENTION THAT THESE RULINGS HAVE NO APPLICATION TO TARIFFS, SUCH AS THE ONE INVOLVED HERE, WHICH PROVIDE DETAILED RESTRICTED ROUTING.
THE CASES CITED IN OUR PREVIOUS DECISION STAND FOR THE PRINCIPLE THAT IF THE CARRIER UNDERTAKES TO PROVIDE ROUTING IN THE TARIFF, AS DISTINGUISHED FROM AN OPEN ROUTED TARIFF, THE ROUTES WILL APPLY STRICTLY AS THUS PROVIDED IN THE TARIFF WITHOUT REGARD TO CIRCUITY, OR REASONABLENESS. THIS PRINCIPLE IS BASED UPON THE RULE THAT TARIFFS ARE CONSTRUED STRICTLY AGAINST THE CARRIERS WHICH COMPOSED THEM SINCE SHIPPERS ARE BOUND BY LAW TO RELY UPON THE TARIFFS AS WRITTEN. SEE SAMUEL P. MANDELL CO. V. PENNSYLVANIA R. CO., 289 I.C.C. 244, 247 ET SEQ. ALTHOUGH THE CASES CITED IN THE PREVIOUS DECISION INVOLVED TARIFFS WHICH PROVIDED FOR THE APPLICATION OF RATES VIA ALL ROUTES MADE BY THE USE OF LINES OF ANY CARRIERS PARTY TO THE TARIFF, THE RULE ANNOUNCED HAS EQUAL APPLICATION TO TARIFFS PROVIDING SPECIFIC RESTRICTED ROUTING. SEE COLORADO INTERSTATE GAS CO. V. ATCHISON, T. AND S.F.RY. CO., 298 I.C.C. 350.
ALL RESTRICTIONS PROVIDED BY THE TARIFF GOVERNING THESE SHIPMENTS WERE COMPLIED WITH BY THE GOVERNMENT IN USING A ROUTE VIA CHICAGO AND CAIRO, ILLINOIS, FOR THE COMPUTATION OF LAND-GRANT DEDUCTIONS PURSUANT TO THE CARRIERS LAND-GRANT EQUALIZATION AGREEMENT.
THE STANDARD PERCENTAGES OF CIRCUITY, MENTIONED IN YOUR LETTER, APPEAR TO HAVE BEEN ADOPTED BY THE INTERSTATE COMMERCE COMMISSION AS LIMITATIONS ON THE COMMISSION'S APPROVAL OF APPLICATIONS BY CARRIERS FOR DEVIATIONS FROM APPLICATION OF SECTION 4 OF THE INTERSTATE COMMERCE ACT IN ORDER TO COMPLY WITH THE PROVISION OF SECTION 4 WHICH PROHIBITS APPROVAL OF DEVIATIONS WHICH ARE NOT REASONABLY COMPENSATORY FOR THE SERVICE PERFORMED. INDICATED BY DECISION IN PURE OIL CO. V. ALTON AND S.R., 284 I.C.C. 461, IN WHICH THE COMMISSION APPROVED THE USE OF A ROUTE 155 PERCENT CIRCUITOUS, THESE STANDARDS OF CIRCUITY DO NOT LIMIT THE USE BY A SHIPPER OF A CIRCUITOUS ROUTE ALREADY PROVIDED BY THE PLAIN TERMS OF THE TARIFF.
SINCE NO ADEQUATE REASON HAS BEEN GIVEN FOR AMENDING OUR PREVIOUS DECISION, IT IS, ACCORDINGLY, SUSTAINED.