B-129849, MAR. 20, 1957

B-129849: Mar 20, 1957

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BURLINGTON AND QUINCY RAILROAD COMPANY: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 9. POINT OUT THAT THE TRAFFIC THERE CONSIDERED WAS DESTINED TO ST. IT IS YOUR CONTENTION THAT. LOUIS IS IN CONNECTION ONLY WITH TRAFFIC DESTINED TO ST. LOUIS IS IN LEGAL AND PRACTICAL EFFECT AN EXTENSION OF THE ILLINOIS CENTRAL RAILROAD INTO ST. LOUIS IS AN UNLAWFUL COMBINATION CONTRARY TO THE ANTI-TRUST ACT OF JULY 2. WHEN IT AND THE VARIOUS BRIDGE AND TERMINAL COMPANIES COMPOSING IT ARE OPERATED AS RAILROAD TRANSPORTATION COMPANIES. "AN ELECTION HAVING BEEN MADE TO CONTINUE THE COMBINATION FOR TERMINAL PURPOSES THE DEFENDANTS ARE THEREFORE PERPETUALLY ENJOINED FROM IN ANY WISE MANAGING OR CONDUCTING THE SAID TERMINAL RAILROAD ASSOCIATION OR ANY OF ITS CONSTITUENT COMPANIES AND FROM OPERATING ANY OF THE PROPERTIES BELONGING TO IT OR ITS CONSTITUENTS OTHERWISE THAN AS TERMINAL FACILITIES FOR THE RAILROAD COMPANIES USING THE SAME.

B-129849, MAR. 20, 1957

TO AUDITOR OF FREIGHT ACCOUNTS, CHICAGO, BURLINGTON AND QUINCY RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 9, 1956, FILE GOVT. BILL. 228454-A, WRITTEN IN CONNECTION WITH YOUR SUPPLEMENTAL BILL NO. 228454-A, IN WHICH YOU CLAIM ADDITIONAL CHARGES IN THE AMOUNT OF $219.80.

YOU STATE THAT YOU AGREE WITH OUR FINDINGS IN THE DECISION OF OCTOBER 14, 1948, B-73382, BUT POINT OUT THAT THE TRAFFIC THERE CONSIDERED WAS DESTINED TO ST. LOUIS, MISSOURI, WHEREAS THE TRAFFIC INVOLVED IN YOUR PRESENT CLAIM ORIGINATED AT ST. LOUIS. IT IS YOUR CONTENTION THAT, ACCORDING TO INFORMATION FURNISHED YOU BY THE ILLINOIS CENTRAL RAILROAD, THE ILLINOIS CENTRAL CONTRACT WITH THE TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS IS IN CONNECTION ONLY WITH TRAFFIC DESTINED TO ST. LOUIS AND CONSEQUENTLY HAS NO APPLICATION TO TRAFFIC ORIGINATING THERE.

CONTRARY TO YOUR ASSERTIONS, TARIFFS ON RECORD HERE PUBLISHING RATES BOTH TO AND FROM ST. LOUIS SHOW THAT CITY AS A POINT ON THE ILLINOIS CENTRAL RAILROAD. SEE ALSO OFFICIAL LIST OF OPEN AND PREPAY STATIONS AND THE SPECIFIC DIVISION SHEETS CITED IN THE SUBJECT SETTLEMENT, WHICH LIKEWISE INDICATE THAT THE ILLINOIS CENTRAL RAILROAD OPERATES BOTH TO AND FROM ST. LOUIS. FURTHERMORE, THE CASES PREVIOUSLY CITED TO YOU INDICATE THAT THE USE BY THE ILLINOIS CENTRAL RAILROAD OF THE FACILITIES OF THE TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS IS IN LEGAL AND PRACTICAL EFFECT AN EXTENSION OF THE ILLINOIS CENTRAL RAILROAD INTO ST. LOUIS AND INCLUDES ALL BUSINESS CROSSING THE RIVER IN EITHER DIRECTION.

FOLLOWING THE MANDATE OF THE SUPREME COURT OF THE UNITED STATES IN THE CASE OF UNITED STATES V. TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS, 224 U.S. 383, THE DISTRICT COURT OF THE UNITED STATES FOR THE EASTERN DISTRICT OF MISSOURI, ENTERED A DECREE IN PERTINENT PART AS FOLLOWS:

"1. THE TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS IS AN UNLAWFUL COMBINATION CONTRARY TO THE ANTI-TRUST ACT OF JULY 2, 1890 (26 STAT. 209), WHEN IT AND THE VARIOUS BRIDGE AND TERMINAL COMPANIES COMPOSING IT ARE OPERATED AS RAILROAD TRANSPORTATION COMPANIES. THE COMBINATION MAY, HOWEVER, EXIST AND CONTINUE AS A LAWFUL UNIFICATION OF TERMINAL FACILITIES UPON ABANDONING ALL OPERATING METHODS AND CHARGES AS AND FOR RAILROAD TRANSPORTATION AND CONFINING ITSELF TO THE TRANSACTION OF A TERMINAL BUSINESS SUCH AS SUPPLYING AND OPERATING FACILITIES FOR THE INTERCHANGE OF TRAFFIC BETWEEN RAILROADS AND TO ASSIST IN THE COLLECTING AND DISTRIBUTING OF TRAFFIC FOR THE CARRIER COMPANIES, SWITCHING, STORAGE AND THE LIKE, AND MODIFYING ITS CONTRACTS AS HEREIN SPECIFIED.

"AN ELECTION HAVING BEEN MADE TO CONTINUE THE COMBINATION FOR TERMINAL PURPOSES THE DEFENDANTS ARE THEREFORE PERPETUALLY ENJOINED FROM IN ANY WISE MANAGING OR CONDUCTING THE SAID TERMINAL RAILROAD ASSOCIATION OR ANY OF ITS CONSTITUENT COMPANIES AND FROM OPERATING ANY OF THE PROPERTIES BELONGING TO IT OR ITS CONSTITUENTS OTHERWISE THAN AS TERMINAL FACILITIES FOR THE RAILROAD COMPANIES USING THE SAME, AND FROM MAKING CHARGES OTHERWISE THAN FOR AND ACCORDING TO THE NATURE OF THE SERVICES SO LAWFULLY AUTHORIZED TO BE RENDERED.'

THIS DECREE WAS ORDERED MODIFIED SO AS TO RECOGNIZE THE RIGHT OF THE TERMINAL COMPANY AS ACCESSORY TO ITS STRICTLY TERMINAL BUSINESS TO CARRY ON TRANSPORTATION AS TO BUSINESS EXCLUSIVELY ORIGINATING ON ITS LINES, EXCLUSIVELY MOVING THEREON AND EXCLUSIVELY INTENDED FOR DELIVERY THEREON. UNITED STATES V. TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS, 236 U.S. 194, 210.

AS WILL BE SEEN FROM THE DECREE QUOTED ABOVE, THE TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS, EXCEPT FOR TRAFFIC ORIGINATING, MOVING OVER, AND TERMINATING ON ITS OWN LINES, IS PROHIBITED FROM PERFORMING TRANSPORTATION SERVICES EXCEPT AS TERMINAL OPERATOR FOR ITS PROPRIETARY OR MEMBER RAILROADS. IT FOLLOWS, THEREFORE, THAT AS TO A SHIPMENT ORIGINATING ON THE FACILITIES OF THE TERMINAL RAILROAD ASSOCIATION OF ST. LOUIS, DESTINED FOR MOVEMENT BEYOND ST. LOUIS BY THE ILLINOIS CENTRAL, THE ONLY SERVICE PERFORMED BY THE TERMINAL RAILROAD ASSOCIATION IS THAT AS TERMINAL AGENT FOR THE ILLINOIS CENTRAL. WHILE THE PERFORMANCE OF SUCH SERVICE MAY CREATE A RIGHT IN THE TERMINAL RAILROAD ASSOCIATION TO COMPENSATION FROM THE ILLINOIS CENTRAL FOR THE SERVICE SO PERFORMED, THE REVENUE EARNED FROM THE SHIPPER UNDER THE TRANSPORTATION CONTRACT ACCRUES TO THE ILLINOIS CENTRAL AND ITS CONNECTIONS ACTUALLY PERFORMING THE TRANSPORTATION SERVICE, TO BE DIVIDED AMONG SUCH LINES ACCORDING TO ESTABLISHED DIVISIONS.

THE SETTLEMENT HERE WAS CONSISTENT WITH THE VIEWS EXPRESSED ABOVE AND, ACCORDINGLY, PAYMENT OF YOUR SUPPLEMENTAL BILL IS DECLINED.