B-126404, SEP. 13, 1956

B-126404, SEP. 13, 1956

TO ILLINOIS CENTRAL RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR REQUEST, PER FILE G-WQ-19493-WAG-R, FOR REVIEW OF SETTLEMENT CERTIFICATE DATED NOVEMBER 14, 1955, WHICH DISALLOWED YOUR CLAIM ON BILL NO. WT-19493-A, FOR $47.07, ADDITIONAL FOR THE TRANSPORTATION OF ONE CARLOAD OF CANNED GOODS WEIGHING 70,668 POUNDS, FROM FORT WORTH, TEXAS, TO NEW ORLEANS, LOUISIANA, FOR EXPORT, UNDER BILL OF LADING NO. WT-6880553, DATED JULY 6, 1945. THE SUBJECT SHIPMENT CONSISTED OF TRANSIT TONNAGE, ON WHICH INBOUND BILLING WAS SURRENDERED ON A SHIPMENT WHICH ORIGINATED AT WALLA WALLA, WASHINGTON, IN APRIL 1945, AND WAS SHIPPED TO FORT WORTH, TEXAS, UNDER BILL OF LADING NO. WW-2387413, MARKED FOR: TRANSIT.'

FOR THE TRANSPORTATION SERVICE FROM FORT WORTH, TEXAS, TO NEW ORLEANS, YOU SURRENDERED BILL OF LADING NO. WT-6880553, SHOWING AS A CREDIT THE AMOUNT OF $131.02 INDICATED AS HAVING BEEN OVERPAID IN CONNECTION WITH THE THROUGH MOVEMENT. IN OUR AUDIT OF THE TRANSIT TRANSACTION IT WAS DETERMINED THAT THE APPLICABLE CHARGES WERE FOR COMPUTATION UPON THE BASIS OF A THROUGH EXPORT COMMODITY RATE OF 77 CENTS PER 100 POUNDS, REDUCED BY DEDUCTIONS FOR LAND-GRANT TO A NET RATE OF 42.745 CENTS PER 100 POUNDS, PLUS A TRANSIT CHARGE OF 3 1/2 CENTS PER 100 POUNDS ON THE TRANSIT TONNAGE. ON THAT BASIS THE TOTAL ALLOWABLE CHARGES AMOUNTED TO $326.80, THERE BEING AN UNCOLLECTED OVERPAYMENT OF $164.06, WHICH WAS DEDUCTED FROM YOUR BILL NO. APR 26372.

YOUR CLAIM FOR $47.07 PER BILL NO. WT-19493-A, DISALLOWED IN OUR SETTLEMENT, WAS BASED UPON A THROUGH RATE OF 88 CENTS PER 100 POUNDS (49.405 CENTS AFTER LAND-GRANT DEDUCTIONS) ON THE TRANSIT TONNAGE, AND IN YOUR REQUEST FOR REVIEW YOU MAKE FURTHER CLAIM FOR $47.07, URGING, IN SUBSTANCE, THAT UNDER THE PROVISIONS OF THE TRANSIT TARIFF, SOUTHWESTERN LINES' NO. 174-SERIES, IT WAS REQUIRED, WITH RESPECT TO TRANSIT SHIPMENTS, THAT IN NO CASE SHOULD THE AGGREGATE CHARGES BE LESS THAN THE LAWFUL RATE FROM POINT OF ORIGIN TO THE TRANSIT POINT, PLUS THE TRANSIT CHARGE. APPEARS, THEREFORE, THAT IT IS YOUR VIEW THAT THE RATE OF 88 CENTS PER 100 POUNDS FROM POINT OF ORIGIN TO THE TRANSIT POINT, BEING HIGHER THAN THE THROUGH EXPORT RATE OF 77 CENTS PER 100 POUNDS FROM ORIGIN TO FINAL DESTINATION, MUST BE APPLIED.

IT IS SIGNIFICANT, IN THIS CONNECTION, THAT RULE 38 (A) OF THE CONSOLIDATED FREIGHT CLASSIFICATION PROVIDES AS FOLLOWS:

"UNLESS OTHERWISE PROVIDED IN THE GOVERNING TARIFFS, IF THERE IS AN EFFECTIVE COMMODITY RATE ON A GIVEN SHIPMENT THAT RATE AND NOT THE CLASS RATE MUST BE APPLIED, EXCEPT THAT RATES (EITHER CLASS OR COMMODITY) SPECIFICALLY DESIGNATED AS APPLICABLE ONLY ON IMPORT, EXPORT, COASTWISE OR INTER-COASTAL SHIPMENTS MUST BE APPLIED ON SUCH SHIPMENTS TO THE EXCLUSION OF ALL OTHER RATES NOT SO DESIGNATED.'

THIS PROVISION OF THE CLASSIFICATION CLEARLY REQUIRES APPLICATION OF AN EXPORT COMMODITY RATE, AS AVAILABLE IN THIS INSTANCE IN TRANS CONTINENTAL FREIGHT BUREAU TARIFF NO. 2-N, SUPPLEMENT 14, TO THE EXCLUSION OF "ALL OTHER RATES NOT SO DESIGNATED.'

ITEM 6035-C OF TARIFF NO. 2-N NAMED A RATE OF 77 CENTS PER 100 POUNDS FOR APPLICATION ON SHIPMENTS OF CANNED GOODS, ETC., FORWARDED FROM POINTS IN WASHINGTON TO NEW ORLEANS, LOUISIANA, FOR EXPORT, AND NOTE 12 OF THAT ITEM PROVIDED THAT SHIPMENTS FROM WASHINGTON MOVING UNDER THAT RATE WERE ENTITLED TO STORAGE IN TRANSIT AND LABELING IN TRANSIT PRIVILEGES "AS AUTHORIZED" IN VARIOUS TARIFFS, INCLUDING SOUTHWESTERN LINES' NO. 174- SERIES "SUBJECT TO THE * * * CONDITIONS" SET FORTH IN ITEM 6035-C OF TARIFF NO. 2-N. TARIFF NO. 174-SERIES AUTHORIZED STORAGE IN TRANSIT OF FOODSTUFFS, ETC., AT FORT WORTH, TEXAS. HOWEVER, IN NONE OF THE SEVERAL CONDITIONS SPECIFIED IN ITEM 6035-C OF TRANS-CONTINENTAL TARIFF NO. 2-N, UNDER WHICH SHIPMENTS MOVING FROM WASHINGTON UNDER THE 77-CENT RATE WERE ENTITLED TO STORAGE IN TRANSIT, WAS IT REQUIRED THAT ANY THROUGH RATE OTHER THAN THE 77-CENT RATE SHOULD BE APPLIED WHEN A SHIPMENT WAS STORED IN TRANSIT AND SUBSEQUENTLY FORWARDED TO ULTIMATE DESTINATION WITHIN, AS HERE, THE TIME LIMIT SPECIFIED IN THOSE CONDITIONS. MOREOVER, IT MAY BE NOTED THAT TARIFF NO. 2-N SHOWS THE MISSOURI- KANSAS-TEXAS RAILROAD COMPANY OF TEXAS AND THE ILLINOIS CENTRAL RAILROAD COMPANY AS PARTIES THERETO AND, THEREFORE, PARTIES TO THE PROVISIONS AND CONDITIONS SPECIFIED IN ITEM 6035 OF THAT TARIFF, WHICH WAS NOT SO RESTRICTED AS TO REQUIRE APPLICATION OF THE BASIS THAT YOU ASSERT IS CORRECT.

UPON THIS RECORD IT IS NOT APPARENT WHY THE 77-CENT RATE CONTAINED IN ITEM 6035-C OF TRANS-CONTINENTAL TARIFF NO. 2-N SHOULD NOT BE CONSIDERED APPLICABLE ON THE TRANSIT TONNAGE HERE INVOLVED AND, ACCORDINGLY, THE SETTLEMENT, BEING CONSISTENT WITH THIS CONCLUSION AND NOT SHOWN TO BE IN ERROR OTHERWISE, IS SUSTAINED.