B-121755, DEC. 29, 1955

B-121755: Dec 29, 1955

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YOU CLAIMED AND WERE PAID FOR THIS SERVICE $279.54. THE ALLOWABLE CHARGES WERE COMPUTED ON THE BASIS OF A CARLOAD RATE OF $1.66 PER 100 POUNDS. THIS CLAIM WAS DISALLOWED FOR THE REASON THAT THERE WAS NO EVIDENCE SHOWING THAT THIS SHIPMENT. WAS A LESS-THAN CARLOAD SHIPMENT. IN YOUR REQUEST FOR REVIEW YOU AGAIN ALLEGE THAT THIS SHIPMENT WAS TENDERED TO YOU AS A LESS-THAN-CARLOAD AND THAT YOU GAVE THE INTERNATIONAL HAT COMPANY AN ALLOWANCE OF 5 CENTS PER 100 POUNDS FOR MAKING DELIVERY OF THIS SHIPMENT TO YOUR STATION AT ST. IN VIEW OF SUCH ALLOWANCE YOU STATE THAT THERE IS NO AUTHORITY FOR APPLYING A CARLOAD RATE ON THIS SHIPMENT. THIS SHIPMENT WAS MADE ON A GOVERNMENT BILL OF LADING WHICH SHOWED DELIVERY TO THE ILLINOIS CENTRAL RAILROAD FOR TRANSPORTATION FROM POINT OF ORIGIN AND ALSO SHOWED THAT IT HAD BEEN PROCURED UNDER CONTRACT NXS-5749.

B-121755, DEC. 29, 1955

TO ILLINOIS CENTRAL RAILROAD:

CONSIDERATION HAS BEEN GIVEN YOUR REQUEST FOR REVIEW OF SETTLEMENT CERTIFICATE NO. 331128 1/2 WHICH DISALLOWED YOUR CLAIM, PER BILL NO. N 154064-5-A, FOR $53.83 AS A PART OF THE CHARGES ALLEGED TO BE DUE FOR TRANSPORTING A SHIPMENT OF 12,592 POUNDS OF HELMETS, FIBRE, CLOTH COVERED, FROM ST. LOUIS, MISSOURI, TO NEW ORLEANS, LOUISIANA, UNDER BILL OF LADING NO. N-380029.

YOU CLAIMED AND WERE PAID FOR THIS SERVICE $279.54, COMPUTED ON THE BASIS OF A COMMERCIAL RATE OF $2.22 PER 100 POUNDS, WITHOUT LAND-GRANT DEDUCTIONS. IN THE AUDIT OF THE PAYMENT VOUCHER, THE ALLOWABLE CHARGES WERE COMPUTED ON THE BASIS OF A CARLOAD RATE OF $1.66 PER 100 POUNDS, MINIMUM 12,000 POUNDS, AS PUBLISHED IN SOUTHERN FREIGHT ASSOCIATION TARIFF NO. 767-A, ITEM 835, AS APPLICABLE ON SHIPMENTS OF "FREIGHT, ALL KINDS," REDUCED BY LAND-GRANT DEDUCTIONS TO A NET RATE OF $1.26599 PER 100 POUNDS. THEREAFTER, YOU CLAIMED $53.83 ADDITIONAL COMPUTED ON THE BASIS OF THE RATE OF $2.22 LESS LAND GRANT. THIS CLAIM WAS DISALLOWED FOR THE REASON THAT THERE WAS NO EVIDENCE SHOWING THAT THIS SHIPMENT, WEIGHING IN EXCESS OF THE MINIMUM WEIGHT PROVIDED IN ITEM 23888-A OF THE CONSOLIDATED FREIGHT CLASSIFICATION, WAS A LESS-THAN CARLOAD SHIPMENT.

IN YOUR REQUEST FOR REVIEW YOU AGAIN ALLEGE THAT THIS SHIPMENT WAS TENDERED TO YOU AS A LESS-THAN-CARLOAD AND THAT YOU GAVE THE INTERNATIONAL HAT COMPANY AN ALLOWANCE OF 5 CENTS PER 100 POUNDS FOR MAKING DELIVERY OF THIS SHIPMENT TO YOUR STATION AT ST. LOUIS. IN VIEW OF SUCH ALLOWANCE YOU STATE THAT THERE IS NO AUTHORITY FOR APPLYING A CARLOAD RATE ON THIS SHIPMENT.

THIS SHIPMENT WAS MADE ON A GOVERNMENT BILL OF LADING WHICH SHOWED DELIVERY TO THE ILLINOIS CENTRAL RAILROAD FOR TRANSPORTATION FROM POINT OF ORIGIN AND ALSO SHOWED THAT IT HAD BEEN PROCURED UNDER CONTRACT NXS-5749. UNDER THIS CONTRACT THE INTERNATIONAL HAT COMPANY WAS REQUIRED TO DELIVER THE SHIPMENT F.O.B., ST. LOUIS, MISSOURI, INDICATING THAT THE CONTRACTOR AGREED TO DELIVER THE SHIPMENT ON BOARD THE CARS WITHOUT EXPENSE TO THE BUYER AT THAT POINT.

THE SHIPMENT APPARENTLY IS PROPERLY RATED UNDER ITEM 23888-A OF SUPPLEMENT 32 OF CONSOLIDATED FREIGHT CLASSIFICATION NO. 15 AS "HELMET LINERS, HARD FIBRE OR PLASTIC, WATERPROOFED, NOIBN, IN BOXES," THE CARLOAD RATING BEING SUBJECT TO A MINIMUM WEIGHT OF 12,000 POUNDS. RULE 16 OF THE CLASSIFICATION PROVIDES THAT A LESS-THAN-CARLOAD SHIPMENT IS ONE WEIGHING LESS THAN THE MINIMUM WEIGHT PROVIDED FOR CARLOADS. THE SHIPMENT WEIGHING AS IT DID, IN EXCESS OF THE CARLOAD RATE IS NOT PROPERLY APPLICABLE. FOSTER BROS. MFG. CO. V. NEW YORK CENTRAL RAILROAD COMPANY, 273 I.C.C. 582. HERE, NO PICK-UP SERVICE WAS PERFORMED BY THE CARRIER OR ITS AGENT AND THE SMALL ALLOWANCE ALLEGEDLY PAID TO THE GOVERNMENT'S CONTRACTOR FOR DELIVERY TO THE CARRIER'S STATION AT ST. LOUIS DOES NOT AFFORD ADEQUATE JUSTIFICATION FOR THE PAYMENT OF THE SUBSTANTIAL EXCESS OF THE CHARGES HERE CLAIMED OVER THE CARLOAD BASIS. SEE, IN THIS CONNECTION, CRANE CO. V. ALTON RAILROAD CO., 268 I.C.C. 511.