A-95182, MAY 26, 1938, 17 COMP. GEN. 1006

A-95182: May 26, 1938

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TRANSPORTATION - LAND GRANT - DEDUCTIONS - SHIPMENTS RECEIVED BY CAMAS PRAIRIE RAILROAD FROM NORTHERN PACIFIC RAILWAY AS THE CAMAS PRAIRIE RAILROAD APPARENTLY IS THE NORTHERN PACIFIC RAILWAY WHEN THERE IS INVOLVED TRAFFIC NOT STRICTLY LOCAL BETWEEN STATIONS ON THE LINES OPERATED BY THE FORMER BUT RECEIVED BY THE FORMER FROM THE LATTER AND ORIGINATING BEYOND THE LINES OPERATED BY THE FORMER. ARE SUBJECT TO PERCENTAGE OF LAND-GRANT DEDUCTION COMPUTED ON THE BASIS OF THE RATIO OF AVAILABLE LAND-GRANT MILEAGE TO THE APPLICABLE THROUGH MILEAGE FROM PORTLAND TO HEADQUARTERS. - THE RATE FACTOR WHICH IS ADDED TO COMPUTE THE THROUGH CHARGE NOT BEING A "LOCAL. THE CARRIER'S BILL F-1268 CLAIMED $406.08 FOR THE SERVICE AND PAYMENT WAS MADE ACCORDINGLY BY MAJ.

A-95182, MAY 26, 1938, 17 COMP. GEN. 1006

TRANSPORTATION - LAND GRANT - DEDUCTIONS - SHIPMENTS RECEIVED BY CAMAS PRAIRIE RAILROAD FROM NORTHERN PACIFIC RAILWAY AS THE CAMAS PRAIRIE RAILROAD APPARENTLY IS THE NORTHERN PACIFIC RAILWAY WHEN THERE IS INVOLVED TRAFFIC NOT STRICTLY LOCAL BETWEEN STATIONS ON THE LINES OPERATED BY THE FORMER BUT RECEIVED BY THE FORMER FROM THE LATTER AND ORIGINATING BEYOND THE LINES OPERATED BY THE FORMER, EARNINGS ON IMPEDIMENTA FROM PORTLAND, OREG., VIA NORTHERN PACIFIC RAILWAY TO HEADQUARTERS, IDAHO, ARE SUBJECT TO PERCENTAGE OF LAND-GRANT DEDUCTION COMPUTED ON THE BASIS OF THE RATIO OF AVAILABLE LAND-GRANT MILEAGE TO THE APPLICABLE THROUGH MILEAGE FROM PORTLAND TO HEADQUARTERS--- THE RATE FACTOR WHICH IS ADDED TO COMPUTE THE THROUGH CHARGE NOT BEING A "LOCAL," SEPARATE, OR INDEPENDENT RATE BUT A ,PROPORTIONAL" RATE APPLYING "ONLY ON TRAFFIC ORIGINATING AT OR DESTINED * * * BEYOND OROFINO, IDAHO.' A-19224, JULY 18 AND DECEMBER 8, 1927, AND FEBRUARY 4, 1928, DISTINGUISHED.

DECISION BY ACTING COMPTROLLER GENERAL ELLIOTT, MAY 26, 1938:

THE NORTHERN PACIFIC RAILWAY CO. HAS REQUESTED REVIEW OF SETTLEMENT T- 103929, MAY 1, 1936, OF BILL F-9086 DISALLOWING $75.77 FOR THE TRANSPORTATION OF IMPEDIMENTA, 20,000 POUNDS, FROM CLAIRMONT, CALIF., TO HEADQUARTERS, IDAHO, UNDER BILL OF LADING WQ-654572 MAY 1, 1934.

THE CARRIER'S BILL F-1268 CLAIMED $406.08 FOR THE SERVICE AND PAYMENT WAS MADE ACCORDINGLY BY MAJ. E. C. MORTON, ARMY DISBURSING OFFICER, ON VOUCHER NO. 1535, AUGUST 3, 1934, BUT IN THE EXAMINATION OF THIS ACCOUNT IT APPEARED THAT THE NET CHARGES SHOULD BE $330.31 COMPUTED FROM CLAIRMONT, CALIF., TO LOS ANGELES, CALIF., ON MINIMUM WEIGHT 24,000 POUNDS AT THIRD- CLASS RATE 21.5 CENTS PER HUNDRED POUNDS, OR $51.60 (ATCHISON, TOPEKA AND SANTA FE RY. TARIFF I.C.C. 10682); FROM LOS ANGELES TO PORTLAND, OREG., ON MINIMUM WEIGHT 24,000 POUNDS AT THIRD-CLASS RATE $1.02 PER HUNDRED POUNDS LESS 40.342 PERCENT LAND GRANT OR $146.04 (AGENT F. W. GOMPH'S TARIFF I.C.C. 1155); FROM PORTLAND TO HEADQUARTERS, IDAHO, ON ACTUAL WEIGHT 20,000 POUNDS AT "FREIGHT, ALL KINDS" COMMODITY RATES 75 CENTS PER HUNDRED POUNDS (LEWISTON, IDAHO, RATE) PLUS ON MINIMUM WEIGHT 24,000 POUNDS AT THIRD-CLASS PROPORTIONAL RATE 25 CENTS PER HUNDRED POUNDS (AGENT S. J. HENRY'S I.C.C. NO. 361) LESS THROUGH LAND-GRANT DEDUCTION 36.823 PERCENT OR $132.67, TOTAL NET CHARGES $330.31. REFUND WAS REQUESTED, AND THE CARRIER AGREEING TO THE CORRECTNESS OF THE GROSS CHARGES AND THE LAND- GRANT DEDUCTIONS, EXCEPT THE THROUGH LAND-GRANT DEDUCTION FROM THE PORTLAND TO HEADQUARTERS GROSS CHARGES, OFFERED REFUND OF $58.18. ACCORDINGLY, ADJUSTMENT WAS EFFECTED BY DEBITING $75.77 AGAINST THE AMOUNT FOUND DUE THE CARRIER IN SETTLEMENT T-103929, MAY 1, 1936, UPON CLAIM PER BILL NUMBERED F-9086.

THE REQUEST FOR REVIEW URGES:

* * * IN APPLYING LAND GRANT DEDUCTION YOU USE THE THROUGH DEDUCTION AS FROM PORTLAND TO HEADQUARTERS WHICH DOES NOT APPEAR TO BE CONSISTENT WITH THE DECISION OF THE COMPTROLLER GENERAL OF THE UNITED STATES A-19224- RECONSIDERATION, WHEREIN IT WAS HELD "THAT WHERE THE RATES DO NOT APPLY THROUGH, BUT THE CHARGES ARE ARRIVED AT BY USE OF TWO SEPARATELY ESTABLISHED RATES FROM AND TO THE RATE MAKING POINT, THE LAND GRANT DEDUCTION SHOULD BE DETERMINED FROM THE LONGEST LAND GRANT MILEAGE EMBRACED IN THE ROUTE OVER WHICH EACH SEPARATE RATE OR PROPORTION APPLIES TO OR FROM THE GATEWAY OR RATE MAKING POINT.'

IT THUS APPEARS THAT THE CARRIER OBJECTS SOLELY TO THE APPLICATION OF THE THROUGH LAND-GRANT PERCENTAGE OF DEDUCTION TO THE AGGREGATE OF THE CHARGES FROM PORTLAND, OREG., TO HEADQUARTERS, IDAHO.

HEADQUARTERS AND LEWISTON, IDAHO, ARE NAMED IN THE CARRIER'S TARIFFS AS STATIONS ON THE CAMAS PRAIRIE RAILROAD, WHICH RAILROAD COMPANY (SEE CONSTRUCTION AND OPERATION BY LINE BY NORTHERN PACIFIC RY. (DOCKET NO. 5216), 117 I.C.C. 553) "WAS CREATED AS AN OPERATING COMPANY AND ITS STOCK IS HELD" BY THE NORTHERN PACIFIC RAILWAY CO. AND THE OREGON WASHINGTON RAILROAD AND NAVIGATION CO. IT OPERATED "FOR THEIR COMMON BENEFIT A LINE OF THE OREGON-WASHINGTON FROM RIPARIA, WASH., TO LEWISTON, IDAHO, AND A LINE OF THE NORTHERN PACIFIC FROM LEWISTON VIA JOSEPH TO GRANGEVILLE, IDAHO, THE JOINT POSSESSION AND USE OF WHICH LINES ARE NOW ENJOYED EQUALLY BY THE PARENT OMPANIES" (SEE ALSO UNION PACIFIC RAILROAD CO. ET AL. (VALUATION REPORTS), 224, 248/9); AND "THE OPERATION OF THE CAMAS" INCLUDED "THE LINE EXTENDING EASTWARD FROM JOSEPH THROUGH OROFINO TO STITES, WHICH IS OWNED AND OPERATED BY THE NORTHERN PACIFIC," AND ALSO "THE LINE * * * FROM OROFINO TO HEADQUARTERS.'

BY THE TERMS OF CERTAIN CONTRACTS ENTERED INTO BETWEEN THE RESPECTIVE COMPANIES "THE CAMAS IS TO MAINTAIN AND OPERATE THE LINES AND IS TO RECEIVE THE EARNINGS ON ALL BUSINESS STRICTLY LOCAL BETWEEN STATIONS ON THE LINES OPERATED BY IT AND THE EARNINGS ON ALL MAIL CARRIED BY ITS TRAINS. EARNINGS ON ALL OTHER BUSINESS DELIVERED TO OR RECEIVED FROM THE CAMAS BY EITHER THE NORTHERN PACIFIC OR THE OREGON WASHINGTON, OR TO OR FROM LINES OF RAILWAY REGARDED AS THE LINES OF EITHER, ARE TO ACCRUE TO AND BE RETAINED BY THE COMPANY TO WHICH OR FROM WHICH THE CAMAS DELIVERS OR RECEIVES SUCH BUSINESS * * *.' OTHER PROVISIONS OF THE CONTRACT AS EMBODIED IN FINANCE DOCKET NO. 5216 SHOW FURTHER THAT THE CAMAS PRAIRIE RAILROAD IS THE NORTHERN PACIFIC RAILWAY WHEN THERE IS INVOLVED TRAFFIC NOT "STRICTLY LOCAL BETWEEN STATIONS ON THE LINES OPERATED BY" THE FORMER, BUT RECEIVED BY THE FORMER FROM THE LATTER AND ORIGINATING BEYOND THE LINES OPERATED BY THE FORMER. FOR THE PRESENT PURPOSE THE TRAFFIC HERE CONCERNED IS FOR CONSIDERATION AS TRAFFIC CARRIED BY THE NORTHERN PACIFIC RAILWAY TO HEADQUARTERS, THE EARNINGS FROM WHICH "ARE TO ACCRUE TO AND BE RETAINED BY THE" NORTHERN PACIFIC RAILWAY.

THE RATE FACTOR 25 CENTS (MINIMUM WEIGHT 24,000 POUNDS) WHICH IS ADDED TO THE RATE FACTOR 75 CENTS (ACTUAL WEIGHT 20,000 POUNDS) TO COMPUTE THE THROUGH CHARGE FROM PORTLAND TO HEADQUARTERS IS NOT A "LOCAL" RATE FROM LEWISTON TO HEADQUARTERS, BUT IS A "PROPORTIONAL" RATE APPLYING "ONLY ON TRAFFIC ORIGINATING AT OR DESTINED TO POINTS BEYOND OROFINO, IDAHO.' SEE REFERENCE MARK, CIRCLE 18, AT FOOT OF PAGE 17, SUPPLEMENT 20, AGENT S. J. HENRY'S TARIFF I.C.C. NO. 361. THE RATE WOULD NOT BE INDEPENDENTLY APPLICABLE TO THAT PORTION OF THE CARRIER'S RAILROAD EAST OF LEWISTON AND COULD NOT BE USED IN ANY MANNER OR FOR ANY PURPOSE OTHER THAN AS PROVIDED IN THE TARIFF AND ITS ADDITION TO THE PORTLAND-LEWISTON RATE DOES NOT REPRESENT THE ADDITION OF A SEPARATE AND INDEPENDENT RATE WHICH COULD HAVE STOOD ALONE.

THE DECISIONS OF JULY 18, 1927, DECEMBER 8, 1927, FEBRUARY 4, 1928, IN CASE A-19224 RELATE TO A SITUATION WHERE THE RATE BETWEEN TWO POINTS WAS CONSTRUCTED BY THE COMBINATION OF TWO SEPARATE AND INDEPENDENT RATES TO AND BEYOND AN INTERMEDIATE POINT, NEITHER OF WHICH RELATED TO THE OTHER AND EITHER OF WHICH COULD HAVE BEEN PROPERLY USED WITHOUT CONSIDERING THE OTHER. FURTHERMORE, THE COMBINATION THROUGH RATE CONSIDERED IN CASE A- 19224 WAS SUBJECT TO AN ADJUSTMENT BASED ON A DEDUCTION FROM EACH FACTOR PLUS AN ADDITION TO THE SUM OF THE REMAINDERS AND A SPECIFIC DIVISION SHEET TO BE USED ONLY IN CONNECTION WITH RATES SO CONSTRUCTED WAS PUBLISHED TO SHOW THE BASIS ON WHICH THE ADJUSTED THROUGH RATE WAS TO BE DIVIDED TO AND BEYOND THE RATE MAKING POINT. THE SITUATION IN THE PRESENT CASE IS DISTINGUISHABLE AND NOT SUBJECT TO THE SAME RULE FOR MAKING LAND- GRANT DEDUCTIONS.

ACCORDINGLY, UPON THIS RECORD NO REASON APPEARS WHY THE PERCENTAGES OF LAND-GRANT DEDUCTION SHOULD NOT BE COMPUTED ON THE BASIS OF THE RATIO OF AVAILABLE LAND-GRANT MILEAGE TO THE APPLICABLE THROUGH MILEAGE FROM PORTLAND TO HEADQUARTERS. THE PRINCIPLE UPON WHICH THE ALLOWANCE IN THE INSTANT CASE WAS DETERMINED APPEARS TO HAVE BEEN CORRECTLY APPLIED.