B-119910, B-122532, SEP. 13, 1957

B-119910, B-122532, SEP. 13, 1957

TO GULF, MOBILE AND OHIO RAILROAD COMPANY:

REFERENCE IS MADE TO CORRESPONDENCE COVERED BY YOUR FILE GOVT. 100819-CL 24 IN WHICH YOU REQUEST RECONSIDERATION OF THE DECISION OF DECEMBER 30, 1954 (B-119910). THIS DECISION SUSTAINED THE DISALLOWANCE

OF YOUR CLAME FOR 061.1), CARLOAD OF CANNED PEACHES TRANSPORTED FROM STOCKTON, CALIFORNIA, IN NOVEMBER 1944, STORED IN TRANSIT AT MEMPHIS, TENNESSEE, AND FORWARDED ON JANUARY 12, 1945, TO NEW ORLEANS, LOUISIANA.

YOUR REQUEST FOR RECONSIDERATION PRESENTS TWO QUESTIONS. THESE ARE THE POSTPONEMENT OF THE APPLICATION OF EX PARTE NO. 148 (INCREASED RAILWAY RATES, FARES AND CHARGES, 1942), 255 I.C.C. 357, TO THE LINE HAUL RATES ON SHIPMENTS ACCORDED STORAGE IN TRANSIT PRIVILEGES, AND THE APPLICATION OF THE THREE-WAY RULE IN ITEM 15 OF SOUTHERN FREIGHT TARIFF BUREAU FREIGHT TARIFF 795, I.C.C. NO. 812, TO THIS SHIPMENT.

CONCERNING THE POSTPONEMENT OF THE INCREASES IN RATES AND CHARGES PROVIDED FOR IN ITEM X-148 OF TRANS-CONTINENTAL FREIGHT BUREAU EASTBOUND TARIFF NO. 3-R, IT SEEMS APPARENT THAT THE EXCEPTIONS TO SUCH POSTPONEMENT PROPERLY ARE APPLICABLE ONLY TO GROUND STORAGE-IN TRANSIT OF CARLOAD REIGHT; GUM SHELLAC, CARLOADS; MANGANESE ORE AND CHROME ORE, CARLOADS; AND WOODPULP, CARLOADS. AN EXAMINATION OF THE RECORDS OF THE EXCEPTIONS TO THE POSTPONEMENT OF THESE INCREASES--- AS PROVIDED FOR IN INCREASED RAILWAY RATES, FARES, AND CHARGES, 1942, 255 I.C.C. 357-395/396--- SHOWS THAT ON APRIL 29, 1943, AND AGAIN ON JULY 3, 1943, THE ASSOCIATION OF AMERICAN RAILROADS REQUESTED THE PERMISSION OF THE INTERSTATE COMMERCE COMMISSION TO CONTINUE THE EX PARTE NO. 148 INCREASES IN THE LINE-HAUL RATES ON CANNED GOODS FROM THE PACIFIC COAST TO TRANS-CONTINENTAL TERRITORY, WHEN ACCORDED A TRANSIT PRIVILEGE. THE RECORD SHOWS, FURTHER, THAT THE COMMITTEE OF COMMISSIONERS INFORMED THE ASSOCIATION UNDER DATE OF JUNE 11, 1943, THAT "THE CONTINUANCE OF THE INCREASES IN THE LINE-HAUL RATES IN QUESTION IS NOT WARRANTED BY THE EXCEPTIONS CONTAINED IN THE COMMISSION'S REPORT AND ORDER ENTERED THEREON ON APRIL 6, 1943. WE EXPECT THE CARRIERS TO REMOVE THOSE INCREASES IMMEDIATELY.' THIS ORDER WAS AFFIRMED BY THE FULL COMMISSION ON JULY 13, 1943. ACCORDINGLY, THERE APPEARS TO BE NO JUSTIFICATION FOR APPLYING THE EX PARTE 148 INCREASE ON THIS SHIPMENT.

ITEM NO. 7525-B OF TRANS-CONTINENTAL FREIGHT BUREAU EASTBOUND TARIFF NO. 3-R CARRIES ITS OWN RULES GOVERNING THE TRANSIT OF SHIPMENTS TRANSPORTED UNDER THE RATES PROVIDED THEREIN. THESE RULES, SUPPLEMENTED BY THE PROVISIONS OF ITEM 621-A OF THAT TARIFF PROVIDE THE EXTENT OF THE TRANSIT SERVICE AND THE CHARGE THEREFOR UNDER THE PUBLISHED RATE. ITEM NO. 621-A (B) PROVIDES, WITH RESPECT TO TRANSIT SHIPMENTS, THAT:

"* * * WHEN AUTHORIZED TRANSIT PRIVILEGES AND SERVICES ARE USED, THE RATE ON THE SHIPMENT FROM POINT OF ORIGIN TO FINAL DESTINATION SHALL NOT BE LESS THAN THE THROUGH RATE IN EFFECT ON DATE OF INITIAL SHIPMENT FROM POINT OF ORIGIN TO FINAL DESTINATION ON THE COMMODITY SHIPPED INTO THE TRANSIT POINT OR ON THE COMMODITY SHIPPED FROM THE TRANSIT POINT, WHICHEVER IS HIGHER; THE MINIMUM CARLOAD WEIGHT SHALL BE THAT APPLICABLE IN CONNECTION WITH THE THROUGH RATE USED * * *.'

PARAGRAPH (C) OF THIS ITEM PROVIDES THAT.

"NO PROVISION CONTAINED IN ANY INDIVIDUAL LINE'S TARIFF, OR ANY OTHER AGENCY TARIFF, SHALL SUPERSEDE ANY SPECIFIC PROVISION CONTAINED IN THIS TARIFF.

THUS, SINCE A TWO-WAY RULE GOVERNING THE TRANSIT AUTHORIZED UNDER THE RATE IN ITEM 7525-B IS PROVIDED IN THIS TARIFF, ITEM 621-A/C) SPECIFICALLY PROHIBITS THE USE OF RULE 15 (THE THREE-WAY RULE) IN SOUTHERN FREIGHT TARIFF BUREAU FREIGHT TARIFF 795.

ACCORDINGLY, THE SETTLEMENT BEING CONSISTENT WITH THE FOREGOING, THE PREVIOUS DECISION IS AFFIRMED.