B-126838, OCT. 12, 1956

B-126838: Oct 12, 1956

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ILLINOIS CENTRAL RAILROAD: REFERENCE IS MADE TO YOUR REQUEST. 097 POUNDS BEING NON-TRANSIT TONNAGE WHICH WAS ADDED AT NASHVILLE. THE SETTLEMENT OF THIS TRANSPORTATION WAS BASED ON THE TARIFF RATE OF 87 CENTS PER 100 POUNDS. DEDUCTIONS FOR LAND GRANT WERE APPLIED VIA AN EQUALIZATION ROUTE THROUGH MERIDIAN. IN REQUESTING REVIEW OF THE MATTER YOU URGE THAT THE LAND-GRANT ROUTES EMPLOYED IN OUR COMPUTATION OF CHARGES MAY NOT BE USED BECAUSE THE COMMERCIAL TARIFF GRANTING THE TRANSIT PRIVILEGE DOES NOT NAME A POINT ON THE LAND-GRANT ROUTES FOR WHICH A TRANSIT PRIVILEGE IS AVAILABLE AND. IT WAS HELD THAT THERE IS NOTHING IN YOUR EQUALIZATION AGREEMENT THAT REQUIRES THAT A SHIPMENT GIVEN TRANSIT EN ROUTE UNDER APPROPRIATE TARIFF AUTHORITY SHOULD BE ACCORDED A DIFFERENT BASIS OF COMPUTING NET LAND-GRANT RATES THAN A THROUGH SHIPMENT WHICH HAS NOT BEEN ACCORDED A TRANSIT PRIVILEGE AND THAT THE HOLDING OUT UNDER THE AGREEMENT IS TO APPLY THE LOWEST NET RATES LAWFULLY AVAILABLE FROM ORIGIN TO DESTINATION.

B-126838, OCT. 12, 1956

ILLINOIS CENTRAL RAILROAD:

REFERENCE IS MADE TO YOUR REQUEST, PER FILE WQ-75047-B-WAG-R, FOR REVIEW OF THE ACTION TAKEN IN CONNECTION WITH YOUR CLAIM FOR AN ADDITIONAL ALLOWANCE OF $37.26 FOR THE TRANSPORTATION OF 44,436 POUNDS OF FROZEN POULTRY FROM NASHVILLE, TENNESSEE, TO NEW ORLEANS, LOUISIANA, UNDER BILL OF LADING NO. WW-992373, DATED MAY 15, 1945. THIS OUTBOUND SHIPMENT CONSISTED OF 32,194 POUNDS WHICH ORIGINATED AT ATLANTA, GEORGIA, AND 7,145 POUNDS WHICH ORIGINATED AT CHATTANOOGA, TENNESSEE, THE BALANCE OF 5,097 POUNDS BEING NON-TRANSIT TONNAGE WHICH WAS ADDED AT NASHVILLE.

THE SETTLEMENT OF THIS TRANSPORTATION WAS BASED ON THE TARIFF RATE OF 87 CENTS PER 100 POUNDS. DEDUCTIONS FOR LAND GRANT WERE APPLIED VIA AN EQUALIZATION ROUTE THROUGH MERIDIAN, MISSISSIPPI, AND MOBILE, ALABAMA, ON THE TONNAGE ORIGINATING AT CHATTANOOGA; THROUGH AKRON, ALABAMA, MERIDIAN, MISSISSIPPI, AND JACKSON, MISSISSIPPI, ON THE ATLANTA TONNAGE; AND VIA THE LOUISVILLE AND NASHVILLE RAILROAD DIRECT FOR THE NON-TRANSIT TONNAGE.

IN REQUESTING REVIEW OF THE MATTER YOU URGE THAT THE LAND-GRANT ROUTES EMPLOYED IN OUR COMPUTATION OF CHARGES MAY NOT BE USED BECAUSE THE COMMERCIAL TARIFF GRANTING THE TRANSIT PRIVILEGE DOES NOT NAME A POINT ON THE LAND-GRANT ROUTES FOR WHICH A TRANSIT PRIVILEGE IS AVAILABLE AND, ACCORDINGLY, THOSE ROUTES MAY NOT BE USED UNDER THE TERMS OF YOUR EQUALIZATION AGREEMENT FOR THE PURPOSE OF CONSTRUCTING A NET LAND-GRANT RATE ON SHIPMENTS TRANSMITTED AT NASHVILLE, TENNESSEE.

AS INDICATED IN OUR DECISION OF JULY 27, 1954, B-118118, CONCERNING YOUR FILE WQ-27365-WAG-R, ON A QUESTION SIMILAR TO THAT INVOLVED HERE, IT WAS HELD THAT THERE IS NOTHING IN YOUR EQUALIZATION AGREEMENT THAT REQUIRES THAT A SHIPMENT GIVEN TRANSIT EN ROUTE UNDER APPROPRIATE TARIFF AUTHORITY SHOULD BE ACCORDED A DIFFERENT BASIS OF COMPUTING NET LAND-GRANT RATES THAN A THROUGH SHIPMENT WHICH HAS NOT BEEN ACCORDED A TRANSIT PRIVILEGE AND THAT THE HOLDING OUT UNDER THE AGREEMENT IS TO APPLY THE LOWEST NET RATES LAWFULLY AVAILABLE FROM ORIGIN TO DESTINATION.

ACCORDINGLY, THE DISPOSITION OF THIS MATTER IN ACCORDANCE WITH THIS PRINCIPLE WAS PROPER AND THE ACTION TAKEN IS SUSTAINED.