B-125157, MAY 17, 1957

B-125157: May 17, 1957

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PAYMENT FOR THIS SERVICE WAS MADE ON YOUR BILL NO. 22716 ON THE BASIS OF A COMMERCIAL RATE OF 175 CENTS PER 100 POUNDS. 064 POUNDS RECEIVED AT AVONDALE WERE RESHIPPED TO OAKLAND. 772 POUNDS WHICH REMAINED AT AVONDALE AND WAS NOT ACCORDED THE TRANSIT PRIVILEGE. THIS INTERPRETATION IS TO THE EFFECT THAT LAND-GRANT DEDUCTIONS MAY NOT BE APPLIED TO THE PORTION OF THE TONNAGE REMAINING AT A TRANSIT POINT (AVONDALE. IN THIS INSTANCE) UNLESS SUCH TONNAGE IS ITSELF A CARLOAD UNDER THE APPLICABLE MINIMUM CARLOAD WEIGHT REQUIREMENT. THAT CIRCULAR WAS WITHDRAWN AND CANCELLED BY CIRCULAR NO. 25 DATED APRIL 6. ARE ADDRESSED TO THE WAR AND NAVY DEPARTMENTS AND AUTHORIZE THE STORAGE IN TRANSIT AT NAMED POINTS OF PROPERTY (EXCEPT SPECIFIED COMMODITIES) OF THE UNITED STATES WHICH IS SUBSEQUENTLY RESHIPPED BY RAIL TO A PORT FOR TRANSSHIPMENT THEREFROM BY WATER.

B-125157, MAY 17, 1957

TO MISSOURI PACIFIC RAILROAD COMPANY:

CONSIDERATION HAS BEEN GIVEN YOUR REQUEST FOR REVIEW OF SETTLEMENT NO. 341884 1/2, DATED OCTOBER 16, 1947, WHICH DISALLOWED YOUR CLAIM FOR $41.73 AS A PART OF THE CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF 64,164 POUNDS OF .50 CALIBER BALL CARTRIDGES FROM NEW HAVEN, CONNECTICUT, TO AVONDALE, COLORADO, UNDER BILL OF LADING NO. WQ-18046197, DURING AUGUST 1943.

PAYMENT FOR THIS SERVICE WAS MADE ON YOUR BILL NO. 22716 ON THE BASIS OF A COMMERCIAL RATE OF 175 CENTS PER 100 POUNDS, REDUCED BY LAND-GRANT DEDUCTIONS TO A NET RATE OF 142.326 CENTS PER 100 POUNDS. SUBSEQUENTLY, 51,292 POUNDS OF THE 64,064 POUNDS RECEIVED AT AVONDALE WERE RESHIPPED TO OAKLAND, CALIFORNIA, UNDER BILL OF LADING WQ 8712287, DATED OCTOBER 17, 1943, LEAVING A BALANCE OF 12,772 POUNDS WHICH REMAINED AT AVONDALE AND WAS NOT ACCORDED THE TRANSIT PRIVILEGE.

YOUR URGE PAYMENT OF CHARGES ON THE 12,772 POUNDS WHICH REMAINED AT AVONDALE ON THE BASIS OF A COMMERCIAL RATE OF 175 CENTS PER 100 POUNDS WITHOUT DEDUCTIONS FOR LAND GRANT, CITING IN THIS CONNECTION ASSOCIATION OF AMERICAN RAILROADS' TRAFFIC EXECUTIVE CHAIRMAN'S COMMITTEE CIRCULAR NO. 68, INTERPRETING SECTION 22 QUOTATION NO. 16-D. THIS INTERPRETATION IS TO THE EFFECT THAT LAND-GRANT DEDUCTIONS MAY NOT BE APPLIED TO THE PORTION OF THE TONNAGE REMAINING AT A TRANSIT POINT (AVONDALE, IN THIS INSTANCE) UNLESS SUCH TONNAGE IS ITSELF A CARLOAD UNDER THE APPLICABLE MINIMUM CARLOAD WEIGHT REQUIREMENT. ALSO IN SUPPORT OF YOUR CONTENTION YOU REFER TO TRAFFIC EXECUTIVE CHAIRMAN'S COMMITTEE CIRCULAR NO. 20, DATED FEBRUARY 27, 1943, CONCERNING THE USE, AFTER A SHIPMENT HAD MOVED THROUGH TO FINAL DESTINATION ON A STORAGE-IN-TRANSIT BASIS PROVIDED UNDER ASSOCIATION OF AMERICAN RAILROADS' QUOTATION NO. 16-A, OF A COMMERCIAL TRANSIT PRIVILEGE OR A COMBINATION BASIS LESS LAND-GRANT WHEN SUCH BASIS WOULD RESULT IN A LOWER CHARGE. IN THIS CONNECTION, IT APPEARS THAT THE PRESENT INSTANCE DOES NOT INVOLVE THE SUBJECT MATTER OF CIRCULAR NO. 20; FURTHERMORE, THAT CIRCULAR WAS WITHDRAWN AND CANCELLED BY CIRCULAR NO. 25 DATED APRIL 6, 1943.

ASSOCIATION OF AMERICAN RAILROADS' SECTION 22 QUOTATIONS NOS. 16-C DATED MAY 28, 1943, AND 16-D DATED OCTOBER 13, 1943, ARE ADDRESSED TO THE WAR AND NAVY DEPARTMENTS AND AUTHORIZE THE STORAGE IN TRANSIT AT NAMED POINTS OF PROPERTY (EXCEPT SPECIFIED COMMODITIES) OF THE UNITED STATES WHICH IS SUBSEQUENTLY RESHIPPED BY RAIL TO A PORT FOR TRANSSHIPMENT THEREFROM BY WATER. THE QUOTATION PROVIDES, IN PERTINENT PART, THAT THE RATE APPLICABLE FROM THE ORIGINAL POINT OF SHIPMENT TO THE STORAGE POINT SHALL BE THE ALL-RAIL CARLOAD RATE AT SUCH POINT. THE RATE APPLICABLE ON THE TONNAGE RESHIPPED FROM THE TRANSIT STATION IS THE THROUGH RATE FROM THE ORIGINAL POINT OF SHIPMENT TO THE PORT OF TRANSSHIPMENT, APPLICABLE VIA THE TRANSIT STATION, WITHOUT DEDUCTIONS FOR LAND GRANT AND PROVISION IS MADE FOR THE ADJUSTMENT OF THE INBOUND AND OUTBOUND CHARGES ON SUCH RESHIPPED TONNAGE. THE QUOTATION PROVIDES ALSO THAT, IN THE EVENT THE OUTBOUND TONNAGE IS LESS THAN THE INBOUND TONNAGE FOR WHICH A WEIGHT CERTIFICATE IS TENDERED, THE LOCAL CARLOAD RATE TO THE TRANSIT POINT SHALL APPLY ON THE EXCESS INBOUND TONNAGE.

THE SUBJECT SHIPMENT WAS TRANSPORTED FROM NEW HAVEN, CONNECTICUT, TO AVONDALE, COLORADO (THE TRANSIT STATION), AND BILLED ON THE BASIS OF THE RATE PURPORTEDLY APPLICABLE ON FREIGHT HAVING ITS DESTINATION AT SUCH POINT. THE RATE APPLICABLE ON THE TONNAGE RESHIPPED FROM THE TRANSIT STATION IS THE THROUGH RATE FROM THE ORIGINAL POINT OF SHIPMENT TO THE PORT OF TRANSSHIPMENT, APPLICABLE VIA THE TRANSIT STATION, WITHOUT DEDUCTIONS FOR LAND GRANT AND PROVISION IS MADE FOR THE ADJUSTMENT OF THE INBOUND AND OUTBOUND CHARGES ON SUCH RESHIPPED TONNAGE. THE QUOTATION PROVIDES ALSO THAT, IN THE EVENT THE OUTBOUND TONNAGE IS LESS THAN THE INBOUND TONNAGE FOR WHICH A WEIGHT CERTIFICATE IS TENDERED, THE LOCAL CARLOAD RATE TO THE TRANSIT POINT SHALL APPLY ON THE EXCESS INBOUND TONNAGE.

THE SUBJECT SHIPMENT WAS TRANSPORTED FROM NEW HAVEN, CONNECTICUT, TO AVONDALE, COLORADO (THE TRANSIT STATION), AND BILLED ON THE BASIS OF THE RATE PURPORTEDLY APPLICABLE ON FREIGHT HAVING ITS FINAL DESTINATION AT THE LATTER POINT, LESS APPROPRIATE DEDUCTIONS FOR LAND GRANT. THE QUOTATION, UNDER THE TERMS OF WHICH A PORTION OF THE TONNAGE IS SAID TO HAVE BEEN RESHIPPED TO OAKLAND, CALIFORNIA, CONTAINS NOTHING WHICH PROVIDES, EITHER SPECIFICALLY OR BY NECESSARY IMPLICATION, THAT THE RESHIPMENT OF PART OF THE TONNAGE COMPRISING THE INBOUND SHIPMENT OPERATES TO DEPRIVE THE GOVERNMENT OF THE BENEFIT OF THE LAND-GRANT RATE INTO THE TRANSIT STATION ON THAT PORTION OF THE INBOUND TONNAGE WHICH MAY NOT HAVE BEEN OFFERED FOR RESHIPMENT. ESSENTIALLY, THE PRESENT SITUATION IS SIMILAR TO THAT CONSIDERED BY THE INTERSTATE COMMERCE COMMISSION IN THE CASE OF SHARP GRAIN COMPANY V. ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY, 196 I.C.C. 683, IN WHICH THE COMMISSION SAID, IN SUBSTANCE, THAT THE TRANSPORTATION ENDED AND THE CHARGES ACCRUED THEREON UPON DELIVERY OF THE SHIPMENT AT THE TRANSIT STATION, SUBJECT ONLY TO CHANGE AS TO THAT PART OF THE SHIPMENT AS TO WHICH TRANSIT SERVICE SHOULD THEREAFTER BE ORDERED.

WITH RESPECT TO TRAFFIC EXECUTIVE CHAIRMAN'S COMMITTEE CIRCULAR NO. 68, TO WHICH REFERENCE IS MADE IN YOUR REQUESTS FOR REVIEW, ATTENTION IS INVITED TO THE FACT THAT IT IS ADDRESSED TO THE ,CHIEF TRAFFIC OFFICERS" AND THE "CHIEF ACCOUNTING OFFICERS" OF THE CARRIERS AND SHOWS ON ITS FACE THAT IT IS NOTHING MORE THAN AN EX PARTEINTERPRETATION OF ASSOCIATION OF AMERICAN RAILROADS' SECTION 22 QUOTATION NO. 16-D, WHICH HAS BEEN MADE BY THAT COMMITTEE OF THE SAID ASSOCIATION. IN THIS SITUATION, IT IS NOT APPARENT HOW CIRCULAR NO. 68 CAN AFFECT IN ANY MANNER THE APPLICATION OF THE CITED QUOTATION. THIS QUOTATION EMBODIED THE TERMS OF THE ENDER AND WHEN SHIPMENTS WERE MADE THEREUNDER THE QUOTATION BECAME THE INSTRUMENT TO WHICH REFERENCE MUST BE MADE FOR THE PURPOSE OF DETERMINING THE CHARGES AND NO "RULING" OR INTERPRETATION OF THE TRAFFIC EXECUTIVE CHAIRMAN'S COMMITTEE CAN ENLARGE OR RESTRICT THE BASIS THEREIN FIXED.

ACCORDINGLY, THE PORTION OF THE INBOUND SHIPMENT NOT GRANTED RESHIPPING PRIVILEGES APPEARS TO BE ENTITLED TO THE BENEFIT OF THE LAND-GRANT RATE INTO THE TRANSIT STATION. IT IS NOTED, HOWEVER, THAT THE MAXIMUM RATE FROM THE ORIGIN TO THE TRANSIT POINT ON THE COMMODITY SHIPPED IS 143 CENTS PER 100 POUNDS, AS PROVIDED IN ITEM 1607 OF TRANS CONTINENTAL FREIGHT BUREAU WEST-BOUND TARIFF NO. 1-X, AGENT L. E. KIPP'S I.C.C. NO. 1498, RATHER THAN 175 CENTS PER 100 POUNDS AS BILLED. APPROPRIATE LAND-GRANT DEDUCTION REDUCES THIS MAXIMUM RATE TO 107.236 CENTS AND ITS APPLICATION TO THE NON-TRANSIT TONNAGE RESULTS IN AN OVERPAYMENT OF $44.82. APPROPRIATE REQUEST FOR REFUND, FORM 1003, CONTAINING DETAILED COMPUTATIONS AND LAND-GRANT AUTHORITY WILL BE MAILED TO YOU IN DUE COURSE.