A-98987, NOVEMBER 4, 1938, 18 COMP. GEN. 418

A-98987: Nov 4, 1938

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FAILS TO INDICATE THAT THE TEMPORARY PERCENTAGES NAMED THEREIN ARE TO BE FINALLY DETERMINATIVE OF THE REVENUE WHICH IS TO ACCRUE TO THE CARRIERS IN EACH TERRITORY AS THEIR PROPORTION OF THE JOINT REVENUE. THERE IS OTHERWISE NO SHOWING OF THE FINALITY OF SUCH PERCENTAGES. THERE IS NO PRESENT WAY OF DETERMINING THE PROPORTIONATE REVENUE FINALLY TO ACCRUE TO A LAND-GRANT-AIDED CARRIER. - AND THEREBY THE DEDUCTION TO WHICH THE UNITED STATES IS ENTITLED. ON THAT BASIS WHICH WILL RESULT IN THE LOWEST NET CHARGES. 1938: THERE HAVE BEEN EXAMINED YOUR CLAIMS. YOU CLAIMED AND YOU WERE PAID THE FOLLOWING AMOUNTS BY TREASURY DEPARTMENT DISBURSING OFFICER G. 1935 YOU HAVE NOW CLAIMED THE FOLLOWING ADDITIONAL AMOUNTS WHICH WERE DISALLOWED IN THE SETTLEMENTS NOTED: CHART BILL OF BILL NO.

A-98987, NOVEMBER 4, 1938, 18 COMP. GEN. 418

TRANSPORTATION - RATES - DIVISIONS - TEMPORARY AGREEMENTS - INTERTERRITORIAL SHIPMENTS - FREIGHT CHARGE SETTLEMENT PROCEDURE WHERE AN AGREEMENT BETWEEN CARRIERS IN WESTERN TRUNK LINE TERRITORY AND CARRIERS IN OFFICIAL CLASSIFICATION TERRITORY AS TO THE BASIS OF DIVISIONS TO BE APPLIED TEMPORARILY DURING THE PERIOD SPECIFIED IN CONNECTION WITH THE RATES PUBLISHED PURSUANT TO FINDINGS AND ORDERS BY THE INTERSTATE COMMERCE COMMISSION IN DOCKET NO. 17000, PART 2, IN LIEU OF THE FORMER ARBITRARY PRACTICE WHEREBY THE DELIVERING CARRIER RETAINED THE RATE FROM THE INTERTERRITORIAL GATEWAY TO DESTINATION, FAILS TO INDICATE THAT THE TEMPORARY PERCENTAGES NAMED THEREIN ARE TO BE FINALLY DETERMINATIVE OF THE REVENUE WHICH IS TO ACCRUE TO THE CARRIERS IN EACH TERRITORY AS THEIR PROPORTION OF THE JOINT REVENUE, AND THERE IS OTHERWISE NO SHOWING OF THE FINALITY OF SUCH PERCENTAGES, THERE IS NO PRESENT WAY OF DETERMINING THE PROPORTIONATE REVENUE FINALLY TO ACCRUE TO A LAND-GRANT-AIDED CARRIER--- AND THEREBY THE DEDUCTION TO WHICH THE UNITED STATES IS ENTITLED--- AND FREIGHT TRANSPORTATION CHARGE SETTLEMENTS IN SUCH CASES MUST BE CONTINUED ON THE BASIS OF THE RULE ENUNCIATED IN DECISIONS 14 COMP. GEN. 775; ID. 863, NAMELY, ON THAT BASIS WHICH WILL RESULT IN THE LOWEST NET CHARGES.

ACTING COMPTROLLER GENERAL ELLIOTT TO THE MISSOURI PACIFIC RAILROAD CO., NOVEMBER 4, 1938:

THERE HAVE BEEN EXAMINED YOUR CLAIMS, TOTAL AMOUNT $7.27, DISALLOWED IN SETTLEMENTS T-106992 1/2, DATED NOVEMBER 13, 1936, AND T-107152 1/2, T- 107154 1/2, DATED NOVEMBER 14, 1936, UPON BILLS 2880, 2423, AND 2454,FOR FREIGHT TRANSPORTATION IN SEPTEMBER, APRIL, AND MAY 1935, FROM LEWISBURG, PA., TO FORT LEAVENWORTH, KANS., ROCKVILLE, CONN., TO LINCOLN, NEBR., AND JAMESTOWN, N.Y., TO TOPEKA, KANS., UNDER BILLS OF LADING J-70062, A- 423972, AND FHA-3534, RESPECTIVELY.

YOU CLAIMED AND YOU WERE PAID THE FOLLOWING AMOUNTS BY TREASURY DEPARTMENT DISBURSING OFFICER G. F. ALLEN ON THE VOUCHERS NOTED:

CHART

BILL OF

BILL NO. LADING NO. CLAIMED PAID VOUCHER NO. DATE 2880 -------- J-70062 $27.68 $26.44 10-29104 JAN. 7, 1936 2423 -------- A-423972 220.45 183.95 283231 AUG. 24, 1935 2454 -------- FHA-3534 19.15 17.7727773 OCT. 12, 1935

YOU HAVE NOW CLAIMED THE FOLLOWING ADDITIONAL AMOUNTS WHICH WERE DISALLOWED IN THE SETTLEMENTS NOTED:

CHART

BILL OF

BILL NO. LADING NO. CLAIMED DISALLOWED SETTLEMENT NO. 2880 --------- J- 70062 $1.24 $1.24 T-106992 1/2 2423 --------- A-423972 4.91 4.91 T-107152 1/2 2454 -- ------ FHA-3534 1.12 1.12 T-107154 1/2

IN EACH INSTANCE IT APPEARS THAT YOU CLAIM NET CHARGES DERIVED FROM GROSS CHARGES APPORTIONED BY USE OF THE BASIS PROVIDED IN WESTERN TRUNK LINES DIVISION SHEET NO. 657-A (WTL D/S 657-A) AND IN EACH INSTANCE THE DISALLOWANCE WAS BECAUSE OF THE APPLICATION OF THE BASIS PROVIDED IN WESTERN TRUNK LINES DIVISION SHEET NO. 657 IN DETERMINING THE PRIMARY DIVISION OF THE GROSS CHARGES.

IT APPEARS THE SETTLEMENTS WERE IN ACCORDANCE WITH THE RULE APPLIED IN 14 COMP. GEN. 775; ID. 863, BUT YOUR CONTENTION IS TO THE EFFECT THAT BEGINNING WITH APRIL 1, 1935, A DIFFERENT RULE SHOULD BE APPLIED, NAMELY, THAT THE DOCKET NO. 17,000, PART 2, RATES SHOULD BE DIVIDED IN ACCORDANCE WITH THE BASIS SET FORTH IN "JOINT DIVISION SHEET" OF THE CENTRAL FREIGHT ASSOCIATION LINES (NO. 285-A), NEW ENGLAND FREIGHT ASSOCIATION (NO. 3-A), TRUNK LINES ASSOCIATION TARIFF BUREAU (NO. 18-A) AND WESTERN TRUNK LINES (NO. 657-A) ISSUED BY B. T. JONES, AGENT. THIS DIVISION SHEET WAS ISSUED APRIL 10, 1935, AND IS DESCRIBED AS NAMING "TEMPORARY PERCENTAGES" FOR DIVIDING RATES ON FREIGHT TRAFFIC "MOVING VIA ALL RAIL ROUTES" BETWEEN POINTS IN WESTERN TRUNK LINE TERRITORY AND POINTS IN CENTRAL FREIGHT, NEW ENGLAND FREIGHT, AND TRUNK LINE ASSOCIATION TERRITORIES, THE PERCENTAGES SO NAMED---

TO BE USED ONLY IN DIVIDING THROUGH CLASS RATES, COLUMN RATES (BASED ON PERCENTAGES OF 1ST CLASS RATES), PERCENTAGES OF CLASS RATES, PUBLISHED PURSUANT TO I.C.C. DOCKET 15679, I.C.C. DOCKET 17000, PART 2,OR I.C.C. DOCKET 25256 AND COMMODITY RATES BASED THEREON OR RELATED THERETO * * *.

AND TO BE EFFECTIVE "WITH WAYBILLS TAKEN INTO APRIL 1935 ACCOUNTS" AND TO EXPIRE "WITH WAYBILLS TAKEN INTO MARCH 1936 ACCOUNTS.'

THE ISSUANCE OF THIS PUBLICATION IS INDICATIVE OF AN AGREEMENT BETWEEN CARRIERS IN WESTERN TRUNK LINE TERRITORY ON THE ONE HAND AND CARRIERS IN OFFICIAL CLASSIFICATION TERRITORY ON THE OTHER HAND AS TO THE BASIS OF DIVISIONS TO BE APPLIED TEMPORARILY DURING THE PERIOD SPECIFIED IN CONNECTION WITH THE RATES PUBLISHED PURSUANT TO FINDINGS AND ORDERS BY THE INTERSTATE COMMERCE COMMISSION IN DOCKET NO. 17000, PART 2, AND THAT DURING SUCH PERIOD THE SEVERAL CARRIERS ARE TO DISCONTINUE THEIR PREVIOUS ARBITRARY PRACTICE WHEREBY THE DELIVERING CARRIER RETAINED THE RATE FROM THE INTERTERRITORIAL GATEWAY TO DESTINATION. THE PUBLICATION DOES NOT INDICATE, HOWEVER, THAT THE TEMPORARY PERCENTAGES NAMED THEREIN AS FOR APPLICATION DURING THE STATED PERIOD ARE TO BE FINALLY DETERMINATIVE OF THE REVENUE WHICH IS TO ACCRUE TO THE CARRIERS IN EACH TERRITORY AS THEIR PROPORTION OF JOINT REVENUE ACCRUING ON INTERTERRITORIAL TRAFFIC DURING THAT PERIOD OR THAT SUCH JOINT REVENUE, ALTHOUGH PRESENTLY SO DIVIDED, IS NOT TO BE SUBJECT TO FUTURE ADJUSTMENT ON THE BASIS OF SUCH DIVISIONS AS THE INTERSTATE COMMERCE COMMISSION MAY PRESCRIBE WITH RETROACTIVE APPLICATION AS REQUESTED IN THE CARRIERS' PETITION FILED DECEMBER 5, 1931. IT IS APPARENT THAT IF THE CARRIERS' JOINT REVENUE ACCRUING FROM THE DOCKET NO. 17000, PART 2, RATES DURING THE APRIL 1935-MARCH 1936 PERIOD ALTHOUGH PRESENTLY DIVIDED IN ACCORDANCE WITH THE PROVISIONS OF THE "JOINT DIVISION SHEET" IS TO BE SUBJECT TO A FURTHER AND DIFFERENT FUTURE ADJUSTMENT ON THE BASIS OF DIVISIONS WHICH THE INTERSTATE COMMERCE COMMISSION MAY PRESCRIBE HEREAFTER BUT FOR RETROACTIVE APPLICATION IN RESPONSE TO THE PETITION FILED DECEMBER 5, 1931, THERE IS NO PRESENT WAY OF DETERMINING THE PROPORTIONATE REVENUE FINALLY TO ACCRUE TO A LAND-GRANT -AIDED CARRIER (AND THEREBY THE DEDUCTION TO WHICH THE UNITED STATES IS ENTITLED) FOR ITS SERVICE IN TRANSPORTING A SHIPMENT OF UNITED STATES PROPERTY OVER A JOINT ROUTE BETWEEN A POINT IN WESTERN TRUNK LINE TERRITORY AND A POINT IN OFFICIAL CLASSIFICATION TERRITORY. THIS OFFICE HAS ENDEAVORED WITHOUT RESULT AS YET TO OBTAIN A REPORT FROM THE CENTRAL FREIGHT ASSOCIATION TARIFF BUREAU AND FROM THE CHAIRMAN, CENTRAL FREIGHT ASSOCIATION---

* * * WHETHER OR NOT REVENUE ADJUSTED AMONG THE SEVERAL CARRIERS IN ACCORDANCE WITH THE PROVISIONS OF THE "JOINT DIVISION SHEET" WILL BE SUBJECT TO FURTHER ADJUSTMENT EITHER OTHERWISE OR UPON THE BASIS OF SUCH DIVISIONS OF THE DOCKET NO. 17000, PART 2, RATES AS MAY BE PRESCRIBED BY THE INTERSTATE COMMERCE COMMISSION IN RESPONSE TO THE PETITION FILED DECEMBER 5, 1931.

THE INTERESTS OF THE UNITED STATES REQUIRE CONTINUING TO APPLY THE RULE SET FORTH IN 14 COMP. GEN. 775; ID. 863, NAMELY, THAT---

WHERE CARRIERS IN A GIVEN LAND-GRANT-AIDED ROUTE APPLY DIFFERENT AND CONFLICTING BASES FOR DIVISION OF COMMERCIAL RATES THERE OVER THE INTERESTS OF THE UNITED STATES DEMAND THAT AS BETWEEN SUCH BASES, THAT BASIS SHOULD BE APPLIED WHICH WILL RESULT IN THE LOWEST NET CHARGES.

THE PAYMENTS, BASED UPON THE FOREGOING, DO NOT APPEAR TO HAVE BEEN IN ERROR AND THE SETTLEMENTS ACCORDINGLY ARE SUSTAINED.