A-59848, APRIL 8, 1935, 14 COMP. GEN. 741

A-59848: Apr 8, 1935

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TRANSPORTATION - FREIGHT LAND GRANT EQUALIZATION AGREEMENTS - LOWEST NET RATES - ROUTES WHERE CARRIERS' AGREEMENTS DO NOT LIMIT THE ACCEPTABLE "LOWEST NET RATES" TO THOSE ESTABLISHED VIA LAND-GRANT-AIDED ROUTES OVER WHICH THERE ARE AGREED. IN SUCH A SITUATION FOR PURPOSES OF SETTLEMENT THE RATE OVER THE GIVEN ROUTE WILL BE DIVIDED ON A MILEAGE PRORATE BASIS AND THE PROPORTIONS THUS DETERMINED SUBJECTED TO THE APPLICABLE DEDUCTIONS FOR LAND-GRANT. LOWEST NET RATES" TO BE ALLOWED FOR SERVICES BETWEEN POINTS IN THE SOUTHEAST OVER LINES OF CARRIERS WHO HAVE FILED WITH THE QUARTERMASTER GENERAL. THREE QUESTIONS ARE INVOLVED. SHALL THE "LOWEST NET RATES" BE COMPUTED AS OVER ONLY SUCH LAND GRANT- AIDED ROUTES AS THOSE FOR WHICH THE CARRIERS WHOSE LINES COMPOSE SUCH ROUTES HAVE PUBLISHED OR AGREED UPON BASES FOR DIVIDING RATES? 2.

A-59848, APRIL 8, 1935, 14 COMP. GEN. 741

TRANSPORTATION - FREIGHT LAND GRANT EQUALIZATION AGREEMENTS - LOWEST NET RATES - ROUTES WHERE CARRIERS' AGREEMENTS DO NOT LIMIT THE ACCEPTABLE "LOWEST NET RATES" TO THOSE ESTABLISHED VIA LAND-GRANT-AIDED ROUTES OVER WHICH THERE ARE AGREED, AUTHORIZED, OR PUBLISHED BASES OF DIVISIONS FOR RATES ON COMMERCIAL TRAFFIC, THE LACK OF SUCH DIVISIONS OVER A GIVEN AIDED ROUTE DOES NOT PRECLUDE ITS CONSIDERATION IN COMPUTING THE NET CHARGE TO BE ALLOWED FOR SERVICES OVER THE ,EQUALIZING" ROUTE. IN SUCH A SITUATION FOR PURPOSES OF SETTLEMENT THE RATE OVER THE GIVEN ROUTE WILL BE DIVIDED ON A MILEAGE PRORATE BASIS AND THE PROPORTIONS THUS DETERMINED SUBJECTED TO THE APPLICABLE DEDUCTIONS FOR LAND-GRANT.

DECISION BY COMPTROLLER GENERAL MCCARL, APRIL 8, 1935:

THIS MATTER BRINGS BEFORE THIS OFFICE FOR DECISION THE BASIS TO BE APPLIED TO COMPUTE THE ,LOWEST NET RATES" TO BE ALLOWED FOR SERVICES BETWEEN POINTS IN THE SOUTHEAST OVER LINES OF CARRIERS WHO HAVE FILED WITH THE QUARTERMASTER GENERAL, WAR DEPARTMENT, FREIGHT LAND-GRANT EQUALIZATION AGREEMENTS.

THREE QUESTIONS ARE INVOLVED, NAMELY:

1. SHALL THE "LOWEST NET RATES" BE COMPUTED AS OVER ONLY SUCH LAND GRANT- AIDED ROUTES AS THOSE FOR WHICH THE CARRIERS WHOSE LINES COMPOSE SUCH ROUTES HAVE PUBLISHED OR AGREED UPON BASES FOR DIVIDING RATES?

2. WHERE THE CARRIERS WHOSE LINES COMPOSE GIVEN LAND-GRANT-AIDED ROUTES HAVE NO PUBLISHED OR AGREED UPON BASES FOR DIVIDING RATES ON COMMERCIAL TRAFFIC OVER SUCH ROUTES SHALL SUCH ROUTES BE TAKEN INTO CONSIDERATION IN COMPUTING THE "LOWEST NET RATES" TO BE ALLOWED UNDER THE TERMS OF THE "EQUALIZATION" AGREEMENT AND IF SO SHALL A MILEAGE PRORATE BASIS BE APPLIED ARBITRARILY BY THIS OFFICE TO DIVIDE THE RATES?

3. SHALL THE BASIS NAMED IN MOBILE AND OHIO DIVISION SHEET NO. A 341 (LINES EAST DIVISION BASIS H-2395), SOUTHERN RAILWAY (LINES WEST DIVISION BASIS 3267-A) BE APPLIED TO DIVIDE RATES OVER GIVEN LAND GRANT-AIDED ROUTES COMPOSED OF THE LINES OF THE MOBILE AND OHIO RAILROAD CO. AND THE SOUTHERN RAILWAY SYSTEM?

IT HAS BEEN SUGGESTED IN CONNECTION WITH THE MATTER THAT---

THE STATEMENT IN DECISION A-57519, SEPTEMBER 5, 1934,"THERE IS NO REQUIREMENT IN THE LAND-GRANT EQUALIZATION AGREEMENTS OF THE INTERESTED CARRIERS TO THE EFFECT THAT DIVISIONS MUST BE AUTHORIZED AND PUBLISHED BY THE CARRIERS BEFORE THE NET CHARGES APPLICABLE OVER THE LAND-GRANT ROUTE WILL BE ACCEPTED" IS CAUSING CONSIDERABLE CONFUSION AND DELAY IN SETTLING ACCOUNTS OF CARRIERS OPERATING IN THE SOUTHEAST.

A-57519 RELATED TO A SHIPMENT FROM TEMPLE, TEX., TO SCHURZ, NEV., OVER THE LINES OF CARRIERS WHO HAD ON FILE WITH THE WAR DEPARTMENT AN AGREEMENT

* * * TO ACCEPT * * * THE LOWEST NET RATES LAWFULLY AVAILABLE, AS DERIVED THROUGH DEDUCTIONS ACCOUNT OF LAND GRANT DISTANCE FROM LAWFUL RATES * * * APPLYING FROM * * * ORIGIN TO DESTINATION AT TIME OF MOVEMENT.

THE CHARGE CLAIMED FOR THE SERVICE WAS AT FLAT COMMERCIAL RATE. THE SETTLEMENT ALLOWED THE NET CHARGE COMPUTED BY DEDUCTING FOR LAND-GRANT FROM THE COMMERCIAL RATE APPLIED AS OVER A DIFFERENT AND LAND-GRANT AIDED ROUTE. THEREAFTER, THE CARRIER CLAIMED THE AMOUNT DEDUCTED FOR LAND-GRANT URGING "THE ONLY WAY, WHICH LAND-GRANT RATES TO BE USED VIA EQUALIZED ROUTES MAY BE MADE, IS BY THE USE OF DIVISIONS AUTHORIZED AND PUBLISHED BY THE CARRIERS OVER WHICH THE SHIPMENT WOULD HAVE MOVED IF THE LAND-GRANT ROUTE HAD BEEN USED.' NORMALLY, THIS OFFICE COMPUTES THE NET RATE OVER A GIVEN LAND-GRANT-AIDED ROUTE IN ACCORDANCE WITH THE BASIS SO URGED, IT BEING THE PRACTICE TO RECOGNIZE THE BASIS AGREED UPON BY INTERESTED CARRIERS FOR THE DIVISION OF REVENUE FROM COMMERCIAL TRAFFIC. IN THIS INSTANCE, HOWEVER, IT APPEARED THAT THE CARRIERS COMPOSING THE LAND-GRANT- AIDED ROUTE FROM TEMPLE TO SCHURZ HAD NOT THERETOFORE AGREED UPON SUCH A BASIS AND THIS OFFICE COULD NOT OBTAIN AN AGREED BASIS FROM SUCH CARRIERS. ACCORDINGLY, IN THE ABSENCE OF ANY INFORMATION TO INDICATE THAT A DIFFERENT BASIS WOULD BE APPLIED BY THE INTERESTED CARRIERS IN CONNECTION WITH A SHIPMENT ACTUALLY MOVED OVER THE AIDED ROUTE, THE LAND- GRANT DEDUCTION WAS COMPUTED BY DIVIDING THE RATE ON A MILEAGE PRORATE BASIS, THIS BEING THE PRACTICE CUSTOMARILY FOLLOWED BY THIS OFFICE IN SUCH A SITUATION. IN EFFECT, THEREFORE, THE CLAIMANT CARRIER'S CONTENTION WAS THAT THE AGREEMENT, SUPRA, REQUIRED THAT SUCH CARRIER ACCEPT ONLY SUCH NET RATE AS COULD BE COMPUTED OVER A ROUTE FOR WHICH AN AGREED BASIS HAD BEEN ESTABLISHED FOR THE DIVISION OF COMMERCIAL RATES THERE OVER. THE AGREEMENT ITSELF, HOWEVER, DID NOT SO LIMIT ITS APPLICATION AND IT IS APPARENT THAT IF JOINT RATES ARE NAMED BETWEEN GIVEN POINTS AND ARE APPLICABLE VIA GIVEN ROUTES THE "LOWEST NET RATES LAWFULLY AVAILABLE, AS DERIVED THROUGH DEDUCTIONS ACCOUNT OF LAND-GRANT DISTANCE," CANNOT BE DETERMINED UNLESS THERE IS SOME BASIS FOR COMPUTING WHAT PART OF SUCH RATES ACCRUES TO EACH LAND-GRANT-AIDED CARRIER WHOSE LINE COMPOSES A PART OF ANY SUCH ROUTE. THE PROPORTION OF A RATE WHICH IS TO BE RECEIVED BY EACH CARRIER OVER A GIVEN ROUTE IS USUALLY A MATTER OF AGREEMENT BETWEEN THE INTERESTED CARRIERS, AND WHEN SUCH AGREEMENT IS MADE KNOWN TO THIS OFFICE IT IS APPLIED NORMALLY AS THE BASIS FOR COMPUTING THE NET CHARGE TO BE ALLOWED FOR SERVICE OVER EITHER THAT ROUTE, OR OVER OTHER ROUTES, BETWEEN THE SAME POINTS COMPOSED OF CARRIERS WHICH HAVE FILED ,EQUALIZATION" AGREEMENTS. HOWEVER, WHERE THE CARRIERS COMPOSING THE AIDED ROUTE HAVE NOT REACHED AN AGREEMENT AS TO A BASIS OF DIVISIONS, ANOTHER PROCEDURE MUST BE ADOPTED.

IF A SHIPMENT OF PUBLIC PROPERTY "LAWFULLY ENTITLED TO REDUCED RATES OVER LAND-GRANT ROADS" BE ACTUALLY SHIPPED OVER A JOINT ROUTE OF SUCH ROADS, THE FAILURE OF THE INTERESTED CARRIERS TO HAVE AN AGREED-UPON BASIS FOR DIVIDING THEIR JOINT RATES OVER SUCH ROUTE CANNOT OPERATE TO DEPRIVE THE UNITED STATES OF ITS RIGHT TO REDUCED RATES UPON SHIPMENTS OF ITS PROPERTY. IN SUCH A SITUATION IT IS NECESSARY THAT THIS OFFICE ADOPT SOME BASIS OF DIVISION--- THE USUAL PRACTICE--- WHERE THERE IS NO INDICATION THAT THE CARRIERS THEMSELVES WOULD DO OTHERWISE, BEING TO DIVIDE THE JOINT RATE ON THE BASIS OF A MILEAGE PRORATE TO ANY BEYOND JUNCTIONS IN THE ROUTE OF MOVEMENT AND DEDUCT THE APPLICABLE LAND-GRANT PERCENTAGES FROM THE PROPORTIONS THUS APPEARING. NET RATES SO COMPUTED HAVE BEEN APPLIED LIKEWISE AS THE MEASURE OF THE NET RATES WHICH THE EQUALIZING CARRIERS HAVE AGREED TO ACCEPT FOR SERVICE OVER THEIR ROUTES BETWEEN THE SAME POINTS UNLESS THE PERTINENT EQUALIZATION AGREEMENTS SPECIFICALLY STIPULATE TO THE CONTRARY. THE PRINCIPLE IS NOT NEW, HAVING BEEN APPLIED IN DECISION OF AUGUST 23, 1923 (REVIEW NO. 4918), WHERE THE SAME CLAIMANT CARRIER AS IN A-57519 REPORTED---

THE RATES DO APPLY BETWEEN POINTS NAMED VIA ROUTE STATED, BUT IT IS BECAUSE OF A GENERAL BLANKETING PROPOSITION WITHOUT HAVING IN CONTEMPLATION SUCH A MOVEMENT AS DESCRIBED, HENCE BEING AN UNUSED ROUTE, THERE ARE NO DIVISIONS AGREED UPON. (THERE HAS BEEN NO OCCASION FOR DETERMINING DIVISIONS BETWEEN CARRIERS.)

AND URGED ERROR IN THAT SETTLEMENT BECAUSE OF LACK OF AUTHORITY FOR THE DETERMINATION OF THE ALLOWANCE BY THE ROUTE OF GREATEST LAND GRANT. THE DECISION IN THAT CASE STATED THE PRINCIPLE AS FOLLOWS:

THE ALLOWANCE FOR THE SERVICE WAS BASED ON AN AUTHORIZED THROUGH RATE AND ROUTE AND THE CHARGES WERE DIVIDED ON DIVISIONS CONSTRUCTED FROM THE BEST AVAILABLE DATA, TO WHICH THIS OFFICE WAS OBLIGED TO RESORT IN THE ABSENCE OF AN AUTHORIZED DIVISION, AS IT BECOME NECESSARY TO DETERMINE THE LAND- GRANT DEDUCTION AND CONSEQUENT NET RATE TO WHICH THE GOVERNMENT WOULD HAVE BEEN ENTITLED HAD SHIPMENT BEEN MADE BY THE LONGEST LAND-GRANT ROUTE AND TO WHICH THE GOVERNMENT IS ENTITLED UNDER THE EQUALIZATION AGREEMENT.

THE GOVERNMENT MIGHT HAVE USED THE LONGEST LAND-GRANT ROUTE HAD NOT THE CLAIMANT UNDER ITS EQUALIZATION AGREEMENT OBLIGATED ITSELF TO ACCEPT THE SAME RATE. HAVING SECURED THE BUSINESS UNDER ITS AGREEMENT IT IS NOT TO BE ALLOWED TO DENY THE GOVERNMENT THE BENEFIT OF THE REDUCTION BY THE LONGEST LAND-GRANT ROUTE BY NOT PROVIDING DIVISIONS BY SAID ROUTE.

IT DOES NOT APPEAR THAT THE SITUATION IN THE SOUTHEAST IS MATERIALLY DIFFERENT FROM THE SITUATIONS CONSIDERED IN REVIEW NO. 4918 AND IN A 57519. IN OTHER WORDS IT SEEMS THAT THE RATES IN THE SOUTHEAST "IN THE MAJORITY OF INSTANCES * * * ARE APPLICABLE VIA ALMOST ANY ROUTE THE INDIVIDUAL RATE EXAMINER MIGHT SELECT" AND "FEW RATES * * * ARE PUBLISHED FOR APPLICATION OVER DEFINED ROUTES.' IT SEEMS FURTHER THAT IN CONNECTION WITH SUCH RATES THE INTERESTED CARRIERS HAVE NOT FURNISHED THIS OFFICE WITH ANY PUBLISHED BASIS TO BE APPLIED IN THE DIVISION OF THE RATES OVER VARIOUS GIVEN ROUTES AND AS TO MANY ROUTES HAVE NOT AGREED UPON A BASIS OF DIVISION FOR THE RATES WHICH APPARENTLY ARE APPLICABLE OVER SUCH ROUTES.

WAR DEPARTMENT CIRCULAR NO. 3, APRIL 26, 1932 (OFFICE OF THE QUARTERMASTER GENERAL), SHOWS THAT THE AGREEMENT OF THE SOUTHEASTERN CARRIERS IN GENERAL, AS THEN AND PRIOR THERETO IN EFFECT, PROVIDED AS FOLLOWS:

THE CARRIERS * * * AGREE, SUBJECT TO THE CONDITIONS AND EXCEPTIONS STATED BELOW, TO ACCEPT * * * THE LOWEST NET RATES LAWFULLY AVAILABLE, AS DERIVED THROUGH DEDUCTIONS ACCOUNT OF LAND-GRANT DISTANCE FROM THE LAWFUL RATES FILED WITH THE INTERSTATE COMMERCE COMMISSION APPLYING FROM * * * ORIGIN TO DESTINATION AT TIME OF MOVEMENT.

CONDITIONS---

(B) ON TRAFFIC DESTINED TO AND/OR RECEIVED FROM POINTS ON LINES OF OTHER CARRIERS THIS AGREEMENT IS SUBJECT ALSO TO THE EXCEPTIONS IN AGREEMENTS OF EACH INDIVIDUAL CARRIER FORMING PART OF THE THROUGH ROUTE OF MOVEMENT, ON FILE WITH THE QUARTERMASTER GENERAL * * *.

EXCEPTIONS

27. * * *.

(C) * * * WILL NOT EQUALIZE NET RATES ESTABLISHED VIA ROUTES OVER WHICH NO COMMERCIAL RATES AND DIVISIONS ARE IN EFFECT.

WAR DEPARTMENT CIRCULAR NO. 3, FEBRUARY 6, 1935 (OFFICE OF THE QUARTERMASTER GENERAL), SHOWS, HOWEVER, THAT DURING THE LATTER PART OF 1933 AND THE EARLY PART OF 1934, THE MAJORITY OF THE SOUTHEASTERN CARRIERS ENTERED INTO A NEW AGREEMENT IN WHICH THERE APPEARS NO SUCH LIMITATION AS IN EXCEPTION 27 (C), SUPRA.

IT WOULD APPEAR, THEREFORE, THAT WHERE THE ROUTE OF MOVEMENT IS OVER ONLY THE LINES OF CARRIERS WHO HAVE ENTERED INTO THE NEW AGREEMENT, THERE IS NO SPECIFIC REQUIREMENT THAT THE "LOWEST NET RATES" WHICH SUCH CARRIERS HAVE AGREED TO ACCEPT FOR THEIR SERVICES BE ESTABLISHED AS OVER ONLY SUCH LAND- GRANT-AIDED ROUTES AS THOSE FOR WHICH DIVISIONS HAVE BEEN PUBLISHED OR AGREED UPON IN CONNECTION WITH COMMERCIAL TRAFFIC; AND THE FACT THAT THE CARRIERS WHO HAVE ENTERED INTO THIS NEW AGREEMENT DID SO WITHOUT THE RESERVATION THERETOFORE EXPRESSED IN "EXCEPTION" 27 (C) IN THE EARLIER AGREEMENT INDICATES THE INTENTION OF SUCH CARRIERS THAT ROUTES FOR WHICH DIVISIONS WERE NOT PUBLISHED OR AGREED UPON ARE NOT FOR THAT REASON TO BE PRECLUDED FROM CONSIDERATION IN COMPUTING THE "LOWEST NET RATES" CONTEMPLATED UNDER THE EQUALIZATION AGREEMENT. IN OTHER WORDS, THE SITUATION INSOFAR AS RELATES TO THE AGREEMENT OF THIS GROUP OF CARRIERS IS SIMILAR TO THE SITUATIONS CONSIDERED IN REVIEW NO. 4918 AND A-57519.

ACCORDINGLY, THERE APPEARS TO BE NO GOOD REASON WHY THE "LOWEST NET RATES" TO BE APPLIED IN SETTLEMENTS WITH SUCH CARRIERS IN THE SOUTHEAST SHOULD BE COMPUTED OTHERWISE THAN IN ACCORDANCE WITH THE PRINCIPLE APPLIED IN SETTLEMENTS WITH CARRIERS IN OTHER SECTIONS OF THE UNITED STATES. FOLLOWS THAT WHEN THE ACTUAL MOVEMENT OF A GIVEN SHIPMENT IS OVER ONLY THE LINES OF SUCH SOUTHEASTERN CARRIERS AS HAVE ENTERED INTO THE NEW AGREEMENT THE "LOWEST NET RATES" TO BE ALLOWED--- IF LOWER THAN THE RATES OVER THE ACTUAL ROUTE--- ARE THOSE "DERIVED THROUGH DEDUCTIONS ACCOUNT OF LAND- GRANT DISTANCE FROM THE LAWFUL RATES FILED WITH THE INTERSTATE COMMERCE COMMISSION APPLYING FROM * * * ORIGIN TO DESTINATION AT TIME OF MOVEMENT" OVER THAT LAND-GRANT-AIDED ROUTE WHICH INCLUDES SUCH PROPORTION OF LAND- GRANT MILEAGE THAT THE DEDUCTION THEREFOR TO WHICH THE UNITED STATES IS ENTITLED WILL RESULT IN FACT IN THE "LOWEST NET RATES.' WHERE THE CARRIERS WHOSE LINES COMPOSE THIS LAND-GRANT-AIDED ROUTE HAVE PUBLISHED BASES FOR DIVIDING COMMERCIAL RATES THERE OVER, OR, IN THE ABSENCE OF SUCH PUBLICATION, HAVE MADE KNOWN OTHERWISE TO THIS OFFICE THE MANNER IN WHICH EACH CARRIER'S PROPORTION OF THE RATE WOULD BE DETERMINED IN CONNECTION WITH A COMMERCIAL SHIPMENT, THE LAND-GRANT DEDUCTION SHOULD BE COMPUTED ACCORDINGLY. WHERE, HOWEVER, SUCH INFORMATION IS NOT AT HAND AND UPON REQUEST THEREFOR THE CARRIERS FAIL TO FURNISH THE INFORMATION, THE CUSTOMARY BASIS TO COMPUTE LAND-GRANT DEDUCTION IN SUCH SITUATIONS SHOULD BE APPLIED; NAMELY, BY DIVIDING THE COMMERCIAL RATES AS ON A MILEAGE- PRORATE BASIS AND BY DEDUCTING THE APPLICABLE LAND-GRANT PERCENTAGE FROM THE PROPORTIONS THUS DETERMINED.

IN ACCORDANCE WITH THE FOREGOING IT FOLLOWS THAT WHERE THE ACTUAL MOVEMENT OF A GIVEN SHIPMENT IS OVER ONLY THE LINES OF CARRIERS WHO HAVE ENTERED INTO THE NEW AGREEMENT, THE ANSWER TO THE FIRST QUESTION IS IN THE NEGATIVE, AND SUBJECT TO THE PROVISO THAT NO OTHER BASIS FOR DIVIDING THE RATES HAS BEEN, OR UPON INQUIRY IS, SHOWN TO BE THE BASIS WHICH THE CARRIERS THEMSELVES WOULD APPLY, THE ANSWER TO THE SECOND QUESTION IS IN THE AFFIRMATIVE.

CONCERNING THE USE OF DIVISION SHEET NO. A-341 IT IS NOTED THAT THIS PUBLICATION WAS ISSUED BY THE TRAFFIC DEPARTMENT OF THE PARTICIPATING CARRIERS TO BE EFFECTIVE AS OF MAY 1, 1925, AND PROVIDES--- BASIS FOR DIVIDING RATES

* * * * * * * ON---

(1) TRAFFIC ON WHICH NO DIVISIONS HAVE BEEN ESTABLISHED.

(2) MISROUTED TRAFFIC APPLICABLE ON---

(A) TRAFFIC FROM OR VIA MOBILE AND OHIO RAILROAD TO DESTINATION ON OR VIA SOUTHERN RAILWAY SYSTEM.

(B) TRAFFIC FROM OR VIA SOUTHERN RAILWAY SYSTEM TO DESTINATION ON OR VIA MOBILE AND OHIO RAILROAD.

WHEN SHIPMENTS ARE MADE ON RATES OF WHICH THERE ARE NO ESTABLISHED DIVISIONS, OR WHEN SHIPMENTS ARE MISROUTED THROUGH JUNCTION POINTS VIA WHICH THERE IS NO ESTABLISHED BASIS FOR DIVISIONS BUT VIA WHICH THE THROUGH RATES ARE LEGALLY APPLICABLE, APPLY FOLLOWING BASIS:

USE PERCENTAGES BASED UPON CORRESPONDING CLASS RATES APPLICABLE TO AND FROM THE JUNCTION POINT AS FACTORS, UNLESS COMMODITY RATES ARE IN EFFECT TO AND FROM THE JUNCTION POINT, IN WHICH EVENT USE THE COMMODITY RATES AS FACTORS IN ARRIVING AT PERCENTAGES.

A COMMODITY RATE AND A CLASS RATE MUST NOT BE USED AS FACTORS IN MAKING PERCENTAGES.

THIS DIVISION BASIS IS NOT FOR GENERAL DISTRIBUTION, BUT IS FOR USE ONLY IN THE AUDIT AND CLAIM DEPARTMENTS, IN SETTLEMENT OF REVENUE OF SHIPMENTS WHICH HAVE MOVED, BUT ON WHICH THERE ARE NO ESTABLISHED DIVISIONS.

THE PROVISIONS OF THIS PUBLICATION APPEAR TO BE CLEAR IN THEIR EFFECT, NAMELY, THAT INSOFAR AS CONCERNS REVENUE WHICH HAS ACCRUED TO THE SOUTHERN RAILWAY SYSTEM AND THE MOBILE AND OHIO RAILROAD JOINTLY UNDER RATES FOR WHICH NO OTHER BASIS OF DIVISIONS HAS BEEN ESTABLISHED OR FROM TRAFFIC INTERCHANGED BETWEEN THESE CARRIERS AT POINTS OTHER THAN THOSE NAMED IN THE CARRIERS' INSTRUCTIONS TO THEIR AGENTS AND TO AND FROM WHICH POINTS SO NAMED A BASIS OF DIVISIONS HAS BEEN ESTABLISHED, SUCH REVENUE IS TO BE DIVIDED ON THE BASIS OF A RATE PRORATE. IT WOULD SEEM THAT DIVISION SHEET NO. A-341 INDICATES LIKEWISE THE BASIS THAT THE CARRIERS WOULD APPLY IN THE DIVISION OF REVENUE WHICH WOULD ACCRUE ON A SHIPMENT SPECIFICALLY ROUTED BY A SHIPPER FOR INTERCHANGE AT A POINT THROUGH WHICH UNDER THE PROVISIONS OF THE GOVERNING TARIFF THE THROUGH RATE APPLIED BUT OVER WHICH THERE WAS NO ESTABLISHED DIVISION BASIS. THIS APPARENT BASIS IS NOT MILEAGE PRORATE BUT RATE PRORATE AND IN THIS SITUATION, APPLYING THE RULE THAT CARRIERS' AGREED BASES ON COMMERCIAL TRAFFIC WILL BE RECOGNIZED IN DIVIDING REVENUE FROM GOVERNMENT SHIPMENTS FOR THE PURPOSE OF COMPUTING LAND-GRANT DEDUCTIONS, IT WOULD SEEM THAT UNLESS IT BE DEVELOPED THAT THE CARRIERS APPLY ANOTHER AND DIFFERENT BASIS ON COMMERCIAL TRAFFIC SPECIFICALLY ROUTED BY SHIPPERS, THE RATE PRORATE BASIS, AS INDICATED IN DIVISION SHEET NO. A-341 SHOULD BE APPLIED IN PREFERENCE TO A MILEAGE PRORATE BASIS IN COMPUTING THE NET RATES ON GOVERNMENT SHIPMENTS.