A-3254, SEPTEMBER 5, 1924, 4 COMP. GEN. 264

A-3254: Sep 5, 1924

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TRANSPORTATION RATES - INTERSTATE AND INTRASTATE THE FACT THAT A SHIPMENT CONSIGNED TO AN OVERSEAS PORT ORIGINATED AND WAS TRANSPORTED BY A CARRIER BETWEEN POINTS WITHIN A STATE TO A SEAPORT WITHIN SAID STATE DOES NOT ENTITLE THE CARRIER TO THE INTRASTATE RATES OF THE STATE. THE CARRIER IS ONLY ENTITLED TO THE INTERSTATE RATES AS PROMULGATED BY THE INTERSTATE COMMERCE COMMISSION. THERE ARE NO THROUGH JOINT RATES IN CONNECTION WITH SHIPMENTS OVER THE WHARTON AND NORTHERN RAILROAD. THE LOCAL RATES OF WHICH ARE ADDED TO RATES TO OR FROM JUNCTION POINTS TO MAKE THROUGH RATES. THE CARRIER'S CLAIM WAS BASED ON A SPECIAL COMMODITY RATE OF 22CENTS PER 100 POUNDS FROM PICATINNY TO LAKE JUNCTION. THE ALLOWANCE BY THE SETTLEMENT WAS BASED ON THE FIRST-CLASS RATE OF 12.5 CENTS FROM PICATINNY TO LAKE JUNCTION.

A-3254, SEPTEMBER 5, 1924, 4 COMP. GEN. 264

TRANSPORTATION RATES - INTERSTATE AND INTRASTATE THE FACT THAT A SHIPMENT CONSIGNED TO AN OVERSEAS PORT ORIGINATED AND WAS TRANSPORTED BY A CARRIER BETWEEN POINTS WITHIN A STATE TO A SEAPORT WITHIN SAID STATE DOES NOT ENTITLE THE CARRIER TO THE INTRASTATE RATES OF THE STATE, BUT BEING A SHIPMENT OF AN INTERSTATE CHARACTER, THE CARRIER IS ONLY ENTITLED TO THE INTERSTATE RATES AS PROMULGATED BY THE INTERSTATE COMMERCE COMMISSION.

DECISION BY COMPTROLLER GENERAL MCCARL, SEPTEMBER 5, 1924:

THE LEHIGH VALLEY RAILROAD CO. APPLIED, PER LETTER OF JUNE 25, 1924, FOR REVIEW OF SETTLEMENT T-74659-W, MAY 9, 1924, OF BILL F-3141, IN DISALLOWING $527.98 ON ITS CLAIM FOR $3,112.26 FOR TRANSPORTATION OF 5 CARLOADS OF EXPLOSIVE PROJECTILES RATED AS HIGH EXPLOSIVES FROM PICATINNY, N.J., TO MIXON, M.H., EN ROUTE OVERSEAS TO HONOLULU, HAWAII, AND MANILA, P.I., AS STATED ON BILLS OF LADING WQ-A-147740, 41, 42, 43, AND 46, MARCH 20, 21, 24, 1924.

THE SHIPMENTS MOVED ABOUT 4 MILES OVER THE WHARTON AND NORTHERN RAILROAD FROM PICATINNY TO LAKE JUNCTION, AND THENCE ABOUT 100 MILES OVER THE CENTRAL RAILROAD OF NEW JERSEY AND LEHIGH VALLEY RAILROAD TO NIXON. THERE ARE NO THROUGH JOINT RATES IN CONNECTION WITH SHIPMENTS OVER THE WHARTON AND NORTHERN RAILROAD, THE LOCAL RATES OF WHICH ARE ADDED TO RATES TO OR FROM JUNCTION POINTS TO MAKE THROUGH RATES.

THE CARRIER'S CLAIM WAS BASED ON A SPECIAL COMMODITY RATE OF 22CENTS PER 100 POUNDS FROM PICATINNY TO LAKE JUNCTION, OVER THE WHARTON AND NORTHERN RAILROAD, AND 34 CENTS PER 100 POUNDS THENCE TO NIXON, AND THE ALLOWANCE BY THE SETTLEMENT WAS BASED ON THE FIRST-CLASS RATE OF 12.5 CENTS FROM PICATINNY TO LAKE JUNCTION, AND 34 CENTS, THE RATE CLAIMED BY THE CARRIER, THENCE TO NIXON. THE DISALLOWANCE, THEREFORE, WAS ON ACCOUNT OF THE CHARGES FOR THAT PORTION OF THE SERVICE WHICH WAS OVER THE WHARTON AND NORTHERN RAILROAD FROM PICATINNY TO LAKE JUNCTION.

THE FIRST-CLASS RATE OF 12.5 CENTS PER 100 POUNDS AS ALLOWED IN SETTLEMENT WAS NAMED IN SUPPLEMENT NO. 2 TO I.C.C. NO. 72, EFFECTIVE OCTOBER 28, 1923, AND THE RATE OF 22 CENTS PER 100 POUNDS, AS CLAIMED WAS NAMED IN "SPECIAL TARIFF NO. 2," EFFECTIVE OCTOBER 28, 1923, PUBLISHING ,SPECIAL COMMODITY FREIGHT RATES FOR ACCOUNT OF U.S. GOVERNMENT.'

THE CARRIER IN ITS APPLICATION FOR REVIEW CONTENDS THAT THE CLASS RATE DOES NOT APPLY WHEN THERE IS A SPECIFIC COMMODITY RATE IN EFFECT.

THE WHARTON AND NORTHERN RAILROAD CO. HAD PUBLISHED THE FOLLOWING CLASS RATES BETWEEN PICATINNY AND LAKE JUNCTION:

CHART

1 2 3 4 TARIFF I.C.C. 32, EFFECTIVE MAY 11, 1918 -- 8 7 6 4.5

DO. DO. 33, DO. JUNE 25, 1918 -- 25 21.5 17.5 12.5

DO. DO. 49, DO. SEPT. 1, 1920 -- 25 30 24 17.5

DO. DO. 72, DO. DO. 29, 1922 -- 31.5 27 21.5 16

IN THIS CONNECTION IT IS NOTED THAT THE PERCENTAGE INCREASE OF RATES AUTHORIZED SINCE JUNE 24, 1918, IN THIS TERRITORY, WAS 25 PERCENT ON JUNE 25, 1918, 40 PERCENT ON AUGUST 26, 1920, AND A REDUCTION OF 10 PERCENT ON JULY 1, 1922, WHILE THE RATES PUBLISHED BY THE WHARTON AND NORTHERN RAILROAD SHOW INCREASES OVER THE RATES WHICH WERE IN EFFECT ON JUNE 24, 1918, FOR EXAMPLE, ON THE FIRST-CLASS:

ON JUNE 25, 1918, OF 212.5 PERCENT.

SEPTEMBER 1, 1920, OF 337.5 PERCENT.

SEPTEMBER 29, 1922, OF 293.75 PERCENT.

THE TARIFFS PUBLISHING THESE RATES WERE FILED WITH THE INTERSTATE COMMERCE COMMISSION AND SEEM TO HAVE BEEN INTENDED TO APPLY IN BOTH INTERSTATE AND INTRASTATE SHIPMENTS.

THE WHARTON AND NORTHERN RAILROAD CO. ISSUED TARIFFS INTRASTATE N.J. NO. 31, EFFECTIVE JANUARY 29, 1923, AND INTRASTATE N.J. NO. 32, EFFECTIVE FEBRUARY 16, 1923, AS PROPORTIONAL RATES APPLICABLE ON ITS LINE FOR CARLOAD SHIPMENTS FOR THE UNITED STATES GOVERNMENT DESTINED TO OR ORIGINATING AT RARITAN ARSENAL AT METUCHEN-NIXON, N.J., THE FIRST NAMING A RATE OF 27 CENTS PER 100 POUNDS AND THE SECOND 22 CENTS PER 100 POUNDS ON LOADED PROJECTILES AND FIXED AMMUNITION, MINIMUM CARLOAD 20,000 POUNDS. THE TARIFF SPECIFICALLY EXCLUDED APPLICATION FOR INTERSTATE TRAFFIC.

INTRASTATE N.J. TARIFF NO. 32 WAS CANCELED BY SPECIAL TARIFF NO. 1, EFFECTIVE FEBRUARY 27, 1923, NAMING "SPECIAL COMMODITY FREIGHT RATES FOR ACCOUNT OF U.S. GOVERNMENT" APPLICABLE TO EITHER NEW JERSEY INTRASTATE OR INTERSTATE TRAFFIC, HOWEVER, WITH STATEMENT THAT SAID TARIFF IS NOT FILED WITH INTERSTATE COMMERCE COMMISSION UNDER RULING OF COMMISSION RELIEVING CARRIERS FROM FILING SPECIAL RATES FOR EXCLUSIVE GOVERNMENT SHIPMENTS. THIS TARIFF NAMED FIRST-CLASS RATE OF 22 CENTS PER 100 POUNDS AND CARLOAD RATE ON HIGH EXPLOSIVES OF 22 CENTS PER 100 POUNDS AND BY ITS TERMS WAS APPLICABLE TO CARLOAD SHIPMENTS MADE BY UNITED STATES GOVERNMENT ON GOVERNMENT BILLS OF LADING. IT, HOWEVER, PROVIDED THAT LESS THAN CARLOAD SHIPMENTS WILL BE HANDLED ON PUBLISHED CLASS RATES ON FILE WITH INTERSTATE COMMERCE COMMISSION. THE RATES THUS NAMED WERE LESS THAN REGULAR TARIFF RATES AS PUBLISHED AT THAT TIME IN I.C.C. 72, THE COMMODITY RATE ON EXPLOSIVES BEING 31 1/2 CENTS PER 100 POUNDS, THE SAME AS THE FIRST CLASS RATE. THIS CONFORMED TO THE RULING OF THE INTERSTATE COMMERCE COMMISSION THAT THE RATES ON HIGH EXPLOSIVES IN CARLOADS SHOULD NOT EXCEED THE RATES ON ARTICLES TAKING THE FIRST-CLASS RATING, WHILE LESS THAN CARLOADS SHOULD NOT EXCEED DOUBLE FIRST-CLASS RATES. 25 I.C.C. 19; 33 ID. 288; 35 ID. 77; 44 ID. 531; 51 ID. 553; 52 ID. 26; 55 ID. 177, 350, AND 533; AND 68 ID. 264.

THE NAVY AND WAR DEPARTMENTS INSTITUTED PROCEEDINGS WITH THE INTERSTATE COMMERCE COMMISSION, CLAIMING REPARATION ON ACCOUNT OF EXCESSIVE CHARGES ON INTERSTATE SHIPMENTS FROM OR TO LAKE DENMARK AND PICATINNY, N.J., ON THE WHARTON AND NORTHERN RAILROAD AND POINTS ON OTHER LINES.

THE INTERSTATE COMMERCE COMMISSION IN THE SAID CASE, NO. 12497, DECIDED MAY 8, 1923, 80 I.C.C. 143, FOUND THAT PICATINNY AND LAKE DENMARK ARE ABOUT 4 AND 6 MILES, RESPECTIVELY, FROM WHARTON, AND THE SAME DISTANCE FROM LAKE JUNCTION ON A LARGE FEDERAL RESERVATION, AND THE ONLY TRAFFIC IS THAT TO OR FROM THE ARSENAL OR AMMUNITION DEPOTS, AND MOST OF IT MOVES VIA CHESTER JUNCTION OR LAKE JUNCTION, AND THAT THE SERVICE PERFORMED BY THE WHARTON AND NORTHERN RAILROAD CONSISTS OF MOVING LOADED AND EMPTY CARS OF OTHER CARRIERS BETWEEN POINTS OF INTERCHANGE WITH SUCH CARRIERS AND THE INTERCHANGE TRACKS AND MAINTAINED BY THE COMPANY THROUGH THE WAR DEPARTMENT IN CONNECTION WITH THE ARSENAL AND LOCATED ADJACENT TO THE COMPANY'S RIGHT OF WAY AT PICATINNY. THE WHARTON AND NORTHERN RAILROAD CO. IN THE HEARING BEFORE THE COMMISSION, EMPHASIZED THE FACT THAT EXPLOSIVES, WHICH COMPRISED A LARGE PART OF THE GOVERNMENT SHIPMENTS, MUST BE HANDLED WITH CARE AND ADVANCED THIS AS ONE OF THE REASONS WHY THE CHARGES WHICH IT HAD ASSESSED ON THE SHIPMENTS UNDER CONSIDERATION WERE CORRECT, AND REPARATION NOT DUE.

THE COMMISSION, AFTER A THOROUGH INVESTIGATION OF THE REASONABLENESS OF THE RATES AND CHARGES ON SHIPMENTS OF EXPLOSIVES UPON WHICH THE WHARTON AND NORTHERN RAILROAD CO. HAD ASSESSED CHARGES BASED ON ITS PUBLISHED RATES, HELD THAT:

* * * THE COMBINATION CLASS RATES WERE UNREASONABLE TO THE EXTENT THAT THE COMPONENTS THEREOF APPLICABLE OVER THE WHARTON AND NORTHERN EXCEEDED THE FOLLOWING BASES: PRIOR TO AUGUST 31, 1920, 125 PERCENT OF THE LOCAL RATES OF THE WHARTON AND NORTHERN IN EFFECT ON JUNE 24, 1918; BETWEEN SEPTEMBER 1, 1920, AND JUNE 30, 1922, BOTH INCLUSIVE, 140 PERCENT OF THE BASIS HEREIN FOUND REASONABLE PRIOR TO AUGUST 31, 1920; AND ON AND AFTER JULY 1, 1922, 90 PERCENT OF THE BASIS HEREIN FOUND REASONABLE BETWEEN SEPTEMBER 1, 1920, AND JUNE 30, 1922.

WE FURTHER FIND THAT COMPLAINANT MADE INTERSTATE SHIPMENTS UNDER THE COMBINATION CLASS RATES HEREIN FOUND UNREASONABLE AND PAID AND BORE THE CHARGES THEREON; THAT IT HAS BEEN DAMAGED IN THE AMOUNT OF THE DIFFERENCE BETWEEN THE CHARGES PAID AND THOSE THAT WOULD HAVE ACCRUED AT THE RATES HEREIN FOUND REASONABLE; THAT IT IS ENTITLED TO REPARATION FROM THE WHARTON AND NORTHERN * * *.

AN ORDER WILL BE ENTERED REQUIRING THE WHARTON AND NORTHERN TO ESTABLISH FOR THE FUTURE THE BASIS OF RATES FOUND REASONABLE FOR THE PERIOD SUBSEQUENT TO JUNE 30, 1922.

THE WHARTON AND NORTHERN RAILROAD CO. PUBLISHED AS ITS AUTHORITY FOR THE RATES IN ITS TARIFF I.C.C. 49, SUPRA, THE ORDER OF THE INTERSTATE COMMERCE COMMISSION IN DOCKET NO. 74 (EX PARTE), DATED JULY 29, 1920.

THE INTERSTATE COMMERCE COMMISSION, IN CASE NO. 12497, SUPRA, REGARDING THESE RATES HELD THAT:

OUR ORDER OF JULY 29, 1920, IN INCREASED RATES, 1920, 58 I.C.C., 220, IS REFERRED TO IN THE TARIFF OF THE WHARTON AS AUTHORITY FOR THE INCREASES OF SEPTEMBER 1, 1920. NO SUCH AUTHORITY WAS GRANTED BY THAT REPORT OR ANY OTHER BASED THEREON. ON PAGE 254 OF OUR REPORT IN THAT CASE WE SAID:

"WE FIND ON THE RECORD NO EXPLANATION OF THE UNDERLYING BASIS OF THE MINIMUM CLASS SCALES AND NO JUSTIFICATION FOR INCREASING THEM.'

THE COMMISSION'S ORDER REQUIRED THE WHARTON AND NORTHERN RAILROAD CO. TO CEASE AND DESIST FROM PUBLISHING RATES IN EXCESS OF THOSE FOUND REASONABLE AND REQUIRING IT TO PUBLISH, ON OR BEFORE JULY 28, 1923, BY NOT LESS THAN FIVE DAYS' NOTICE, RATES FROM PICATINNY TO LAKE JUNCTION OF:

CHART CLASS --------------------------------- 1 2 3 4 IN CENTS ---------- -------------------- 12.5 11.5 9.5 7

THE WHARTON AND NORTHERN RAILROAD CO. DID NOT COMPLY WITH THE ORDER OF THE COMMISSION UNTIL NEARLY SIX MONTHS AFTER THE CASE WAS DECIDED, WHEN BY SUPPLEMENT NO. 2 TO ITS TARIFF I.C.C. NO. 72 EFFECTIVE OCTOBER 28, 1923, IT PUBLISHED THE REASONABLE RATES AS REQUIRED, BUT AT THE SAME TIME PUBLISHED ANOTHER TARIFF, WHICH IT DID NOT FILE WITH THE COMMISSION, WITH STATEMENT ON ITS FACE THAT IT WAS PUBLISHED UNDER THE AUTHORITY OF I.C.C. CONFERENCE RULING NO. 36 AND NOT FILED WITH THE INTERSTATE COMMERCE COMMISSION; THIS TARIFF WAS DESIGNATED "SPECIAL TARIFF NO. 2, EFFECTIVE OCTOBER 28, 1923," TO APPLY AS FOLLOWS:

SPECIAL COMMODITY FREIGHT RATES FOR ACCOUNT U.S. GOVERNMENT, BETWEEN PICATINNY, N.J., * * * AND * * * LAKE JUNCTION, N.J., * * *. THIS TARIFF IS APPLICABLE TO CARLOAD SHIPMENTS MADE DIRECTLY BY THE U.S. FEDERAL GOVERNMENT THAT ARE HANDLED ON U.S. GOVERNMENT BILLS OF LADING. LESS CARLOAD SHIPMENTS WILL BE HANDLED ON PUBLISHED RATES ON FILE WITH THE INTERSTATE COMMERCE COMMISSION.

THIS TARIFF IS APPLICABLE TO EITHER NEW JERSEY, INTRASTATE TRAFFIC OR TO INTERSTATE TRAFFIC.

HIGH EXPLOSIVES. * * *

CARLOAD MINIMUM WEIGHT 20,000 LBS., 22 CENTS PER 100 LBS.

THE AUTHORITY CLAIMED FOR ISSUING "SPECIAL TARIFF NO. 2," I.C.C. CONFERENCE RULING NO. 36, WHICH HOLDS THAT TARIFFS PROVIDING RATES APPLICABLE ON SHIPMENTS MADE DIRECTLY BY THE GOVERNMENT NEED NOT BE FILED WITH THE COMMISSION, MUST BE CONSIDERED IN CONNECTION WITH THE OTHER RULINGS WHICH ARE REFERRED TO BY IT--- THAT IS, NOS. 33, 244, AND 452--- AS RELATING TO THE RATES AUTHORIZED BY SECTION 22 OF THE TRANSPORTATION ACT, WHICH PROVIDES THAT FREE OR REDUCED RATES MAY BE GRANTED ON SHIPMENTS OF PROPERTY OF THE UNITED STATES, ETC., AND NOT AS AUTHORITY TO EXACT RATES ON GOVERNMENT SHIPMENTS THAT ARE IN EXCESS OF REASONABLE RATES ACCORDED TO SHIPMENTS FOR THE GENERAL PUBLIC.

THE ISSUANCE OF THIS SPECIAL TARIFF AT THE SAME TIME THAT THE TARIFF PROVIDING FOR THE REASONABLE RATES PRESCRIBED BY THE COMMISSION WAS ISSUED APPEARS TO BE AN ATTEMPT TO CHARGE THE GOVERNMENT RATES THAT ARE IN EXCESS OF THOSE FOUND JUST AND REASONABLE BY THE INTERSTATE COMMERCE COMMISSION AFTER ITS FULL AND EXTENDED INVESTIGATION OF THE MATTER AND WHERE THE COMMISSION ORDERED REPARATION ON ACCOUNT OF EXCESSIVE PAYMENTS ON SUCH SHIPMENTS.

IN ACCORDANCE WITH THE RULING OF THE INTERSTATE COMMERCE COMMISSION, SHIPMENTS OF EXPLOSIVES FROM PICATINNY TO LAKE JUNCTION WOULD TAKE THE FIRST-CLASS RATING OR 12.5 CENTS PER 100 POUNDS IN CARLOAD QUANTITIES, AND DOUBLE THE FIRST-CLASS RATE, OR 25 CENTS PER 100 POUNDS, IN LESS CARLOADS, AND AS GOVERNMENT SHIPMENTS ARE PRACTICALLY ALL IN CARLOAD QUANTITIES THE WHARTON AND NORTHERN RAILROAD, BY THIS SPECIAL TARIFF NO. 2, SEEKS TO CHARGE THE FEDERAL GOVERNMENT 22 CENTS PER 100 POUNDS ON THESE CARLOAD SHIPMENTS, THOUGH ADMITTING A RATE OF 25 CENTS PER 100 POUNDS ON LESS CARLOAD SHIPMENTS.

THE FEDERAL GOVERNMENT IS ENTITLED TO RATES WHICH ARE JUST AND REASONABLE AND WHICH ARE NOT DISCRIMINATORY, AND THE INTERSTATE COMMERCE COMMISSION HAS DECIDED THE QUESTION AS TO THESE SHIPMENTS.

ALL OF THESE SHIPMENTS IN FACT AND AS SHOWN ON THE FACE OF THE BILLS OF LADING WERE DESTINED TO POINTS OUTSIDE THE STATE OF NEW JERSEY, THE CONSIGNMENT TO NIXON, N.J., IN CARE OF RARITAN ARSENAL, BEING MERELY INTERMEDIATE TO ULTIMATE DESTINATIONS OUTSIDE OF THE STATE OF NEW JERSEY, FIXED AT TIME OF AND AT POINT OF ORIGIN OF SHIPMENT. SHIPMENTS WERE FOR CONTINUOUS CARRIAGE AND FORWARDING TO FINAL DESTINATION BY THE AGENT OF THE GOVERNMENT CHARGED WITH THIS DUTY AND IN WHOSE CARE THE PROPERTY WAS SHIPPED.

A STATEMENT OF THE RULE APPLICABLE TO SUCH A CASE AS IS HERE PRESENTED HAS BEEN ANNOUNCED BY THE SUPREME COURT OF THE UNITED STATES IN THE CASE OF BINDERUP V. PATHE EXCHANGE, IN WHICH BY DECISION OF NOVEMBER 19, 1923, IT WAS HELD THAT: THE GENERAL RULE IS THAT WHERE TRANSPORTATION HAS ACQUIRED AN INTERSTATE CHARACTER "IT CONTINUES AT LEAST UNTIL THE LOAD REACHES THE POINT WHERE THE PARTIES ORIGINALLY INTENDED THAT THE MOVEMENT SHOULD FINALLY END.' ILLINOIS C.R.C. V. DE FUENTES, 236 U.S. 157, 163 * * *. AND SEE WESTERN U.TELEG. CO. V. FOSTER, 247 U.S. 105, 113; * * * WESTERN OIL REF.CO. V. LIPSCOMB, 244 U.S. 346, 349, * * *.

IN THE CASE OF BALTIMORE AND OHIO SOUTHWESTERN RAILROAD CO. V. SEATTLE ET AL., THE SUPREME COURT HELD, NOVEMBER 13, 1922, QUOTING SYLLABI, 260 U.S. 166, THAT:

1. WHETHER A SHIPMENT OF GOODS IS INTERSTATE AND IS THEREFORE SUBJECT TO THE RATES PROVIDED BY THE CARRIER'S INTERSTATE TARIFF, DEPENDS UPON THE ESSENTIAL CHARACTER OF THE MOVEMENT AND THIS CHARACTER IS NOT NECESSARILY DETERMINED, BY THE CONTRACT BETWEEN SHIPPER AND CARRIER. P. 169.

2. NEITHER THROUGH BILLING, UNINTERRUPTED MOVEMENT, CONTINUOUS POSSESSION BY THE CARRIER, NOR UNBROKEN BULK IS AN ESSENTIAL OF INTERSTATE SHIPMENT, THOUGH THESE ARE COMMON INCIDENTS OF THROUGH SHIPMENT, AND THEIR PRESENCE OR ABSENCE MAY BE IMPORTANT EVIDENCE OF THE INTENTION WITH WHICH A SHIPMENT WAS MADE, WHEN THAT QUESTION IS AN ISSUE. P. 171.

IN THE CASE OF BALTIMORE AND OHIO SOUTHWESTERN RAILROAD CO. V. SEATTLE ET AL., 260 U.S. 166, THE SUPREME COURT HELD:

THE QUESTION IS PRESENTED WHETHER, IN VIEW OF THE UNDISPUTED FACTS, THE ORIGINAL AND CONTINUING INTENTION SO TO RESHIP MADE THE RESHIPMENT, AS MATTER OF LAW, PART OF A THROUGH INTERSTATE MOVEMENT. * * *

WHETHER THE INTERSTATE OR THE INTRASTATE TARIFF IS APPLICABLE DEPENDS UPON THE ESSENTIAL CHARACTER OF THE MOVEMENT. THAT THE CONTRACT BETWEEN SHIPPER AND CARRIER DOES NOT NECESSARILY DETERMINE THE CHARACTER WAS SETTLED BY A SERIES OF CASES IN WHICH THE SUBJECT RECEIVED MUCH CONSIDERATION. SOUTHERN PACIFIC TERMINAL CO. V. INTERSTATE COMMERCE COMMISSION, 219 U.S. 498; OHIO RAILROAD COMMISSION V. WORTHINGTON, 225 U.S. 101; TEXAS AND NEW ORLEANS R.R.CO. V. SABINE TRAM CO., 227 U.S. 111; RAILROAD COMMISSION OF LOUISIANA V. TEXAS AND PACIFIC RY.CO., 229 U.S. 336.

SEE DISCUSSION OF THIS QUESTION IN DECISION OF THIS OFFICE DATED MARCH 12, 1924, 3 COMP. GEN. 619.

THE SHIPMENTS UNDER CONSIDERATION, BY THE TERMS OF THE INTERSTATE COMMERCE ACT, ARE CLEARLY WITHIN THE JURISDICTION OF THE INTERSTATE COMMERCE COMMISSION AS TO THE CHARGES FOR THE RAIL TRANSPORTATION WITHIN THE UNITED STATES, BEING TRANSPORTATION OF PROPERTY FROM A PLACE IN THE UNITED STATES TO A FOREIGN COUNTRY WITHIN THE MEANING OF THE ACT.

THE INTERSTATE COMMERCE COMMISSION, IN DECISION OF APRIL 14, 1919 (52 I.C.C. 671), SAID, ON PAGE 727:

THE TRANSPORTATION OF TRAFFIC FROM AN INLAND POINT TO A PORT OF EXPORT, FOR EXPORT, IS SUBJECT TO ALL THE PROVISIONS OF SECTION 1 OF THE ACT. THIS IS TRUE EVEN WHEN THE TRANSPORTATION TO THE PORT IS PERFORMED WHOLLY WITHIN THE CONFINES OF THE STATE IN WHICH IT ORIGINATES AND WHETHER THE TRAFFIC BE CARRIED ON LOCAL OR ON THROUGH BILLS OF LADING. RED RIVER OIL CO. V. T. AND P.RY.CO., 23 I.C.C. 438; TEXAS AND PAC.RY.CO. V. RAILROAD COM-N. OF LOUISIANA, 183 FED. 1005; SO.PAC. TERMINAL CO. V. INT.COMM.COMM., 219 U.S. 498.

SEE ALSO DECISION OF INTERSTATE COMMERCE COMMISSION OF NOVEMBER 24, 1922 (74 I.C.C. 613), AND OF JULY 10, 1924 (91 I.C.C. 315).

THE SETTLEMENT HAVING BEEN MADE IN ACCORDANCE WITH THE RATES PRESCRIBED BY THE INTERSTATE COMMERCE COMMISSION IS AFFIRMED.