B-148014, JAN. 14, 1964

B-148014, JAN. 14, 1964

TO GULF, MOBILE AND OHIO RAILROAD COMPANY:

WE HAVE CONSIDERED YOUR LETTER OF JUNE 20, 1963, FILE W-66177-CL 25, REQUESTING RECONSIDERATION OF OUR DECISION OF MAY 8, 1962, WHICH WAS AFFIRMED JUNE 3, 1963. WE FIND NO JUSTIFICATION FOR MODIFICATION OR REVERSAL OF THE CONCLUSION REACHED IN OUR DECISIONS AND IT IS REAFFIRMED.

OUR DECISIONS SUSTAINED THE SETTLEMENT IN CLAIM TK-686783, DATED SEPTEMBER 6, 1961, WHICH DISALLOWED YOUR CLAIM FOR ADDITIONAL CHARGES IN CONNECTION WITH A SHIPMENT OF HOUSEHOLD GOODS WEIGHING 12,286 POUNDS, TRANSPORTED FROM GREAT FALLS, MONTANA, TO NEW ORLEANS, LOUISIANA, FOR EXPORT UNDER GOVERNMENT BILL OF LADING AF-8332686, DURING OCTOBER 1958. AT THE TIME THIS SHIPMENT MOVED, NO SPECIFIC EXPORT RATE WAS PUBLISHED ON HOUSEHOLD GOODS FROM GREAT FALLS TO NEW ORLEANS. IN THIS SITUATION IT WAS NECESSARY TO ASCERTAIN THE RATE PROPERLY APPLICABLE AND OUR DECISION OF MAY 8, 1962, SET FORTH IN DETAIL THE VARIOUS TARIFF AUTHORITIES RELIED UPON IN ARRIVING AT THE CONCLUSION THAT THE GROUP H RATE PUBLISHED IN ITEM 6065-B, SUPPLEMENT 16, TRANS-CONTINENTAL FREIGHT BUREAU FREIGHT TARIFF 2- X, I.C.C. 1590, WAS PROPERLY APPLICABLE. IT IS YOUR CONTENTION THAT THE GROUP D-1 RATE, ALSO PUBLISHED IN ITEM 6065-B, IS THE APPLICABLE RATE, BASED UPON YOUR INTERPRETATION OF NOTE 9, SUPPLEMENT 45, TRANS-CONTINENTAL FREIGHT BUREAU TERRITORIAL DIRECTORY 5-A, I.C.C. NO. 1576, AND THE ROUTING RESTRICTIONS IN ITEM 9815-A, SUPPLEMENT 16, TARIFF 2-X. WE AGAIN ANSWERED THAT CONTENTION IN OUR LETTER OF JUNE 3, 1963.

YOUR PRESENT REQUEST FOR RECONSIDERATION IS SUPPORTED BY A CARBON COPY OF A LETTER FROM YOUR TRAFFIC DEPARTMENT REPORTING ITS VIEWS IN THIS MATTER. THE IMPORT OF THIS LETTER SEEMS TO BE THAT SINCE GROUP H DOMESTIC RATES WERE MADE APPLICABLE TO EXPORT TRAFFIC, NEW ORLEANS, AS TO THEM, BECOMES A GROUP H POINT AND THE GROUP H ROUTING RESTRICTIONS IN ITEM 9815-A AGAINST MOVEMENT THROUGH A POINT IN GROUP C-2 OR A POINT IN GROUP D TO WHICH THE RATE APPLICABLE TO A LIKE SHIPMENT IS HIGHER, PRECLUDE APPLICABILITY OF THE GROUP H RATE TO THIS SHIPMENT, WHICH WAS ROUTED VIA CHICAGO, A GROUP D POINT TO WHICH THE DOMESTIC RATE IS HIGHER THAN THE GROUP H RATE, AND THROUGH GROUP C-2 POINTS IN THE LINES OF THE GULF, MOBILE AND OHIO RAILROAD COMPANY. ALTHOUGH YOUR TRAFFIC DEPARTMENT STATES THAT ITS VIEWS DIFFER FROM THOSE PREVIOUSLY ADVANCED, THEY ARE SUBSTANTIALLY THE SAME AS THOSE ANSWERED IN OUR PREVIOUS DECISIONS.

AS WE PREVIOUSLY INDICATED, PAGES 192 AND 193 OF TERRITORIAL DIRECTORY 5- A SHOW THE RATE BASES TO BE USED IN DETERMINING RATES IN VARIOUS TARIFFS, INCLUDING TARIFF 2-X, APPLICABLE FROM OR TO LOUISIANA POINTS. ON PAGE 193 REFERENCE IS MADE TO NOTE 9 FOR DETERMINATION OF THE RATES APPLICABLE TO OR FROM NEW ORLEANS. NOTE 9, AS AMENDED ON PAGE 6 OF SUPPLEMENT 45, STIPULATES IN PARAGRAPH (A) THAT "EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (C), GROUP E-3 RATES (SUBJECT TO ITEM 340), APPLY FROM OR TO" SOUTHERN TRANSCONTINENTAL POINTS. PARAGRAPH (B) STIPULATES, ALSO ,EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (C)," THAT GROUP D-1 RATES, SUBJECT TO ITEM 340, APPLY FROM OR TO NORTHERN TRANSCONTINENTAL POINTS. PARAGRAPH (C) PROVIDES THAT, IN THE ABSENCE OF SPECIFIC EXPORT OR IMPORT RATES, GROUP H DOMESTIC RATES, SUBJECT TO EXCEPTION 2 AND ITEMS 210 AND 340, APPLY ON TRAFFIC IMPORTED OR EXPORTED THROUGH THE PORTS REFERRING TO NOTE 9. EXCEPTION 2 AND ITEM 210 ARE NOT MATERIAL HERE; ITEM 340-B, PAGE 47, SUPPLEMENT 47, TO DIRECTORY 5-A, SUBJECTS THESE RATE BASE PROVISIONS TO THE ROUTING RESTRICTIONS IN ITEM 9815 OF TARIFF 2-X.

THUS THE EFFECT OF NOTE 9 IS TO MAKE NEW ORLEANS A GROUP E-3 POINT ON SOUTH COAST TRANSCONTINENTAL TRAFFIC AND GROUP D-1 POINT ON NORTH COAST TRAFFIC, SUCH AS WE HAVE HERE, IN BOTH CASES SUBJECT TO THE ROUTING RESTRICTIONS IN ITEM 9815; IN EITHER CASE, GROUP H DOMESTIC RATES ARE SUBSTITUTED FOR GROUP E-3 OR D-1 RATES ONLY ON EXPORT OR IMPORT TRAFFIC WHERE NO SPECIFIC EXPORT OR IMPORT RATES ARE PUBLISHED THROUGH NEW ORLEANS. THE ROUTING INSTRUCTIONS IN ITEM 9815-A, SUPPLEMENT 16, TARIFF 2 -X, WHICH IS ENTITLED "EXCEPTIONS TO GENERAL ROUTING," APPLY TO POINTS IN THE PARTICULAR RATE GROUPS AND SINCE NOTE 9 ESTABLISHED NEW ORLEANS AS A GROUP D-1 POINT ON TRAFFIC FROM THE NORTH COAST, IT IS TO THIS GROUP THAT IT IS NECESSARY TO LOOK FOR ANY ROUTING RESTRICTIONS JUST AS, ON TRAFFIC FROM THE SOUTH COAST, IT WOULD BE NECESSARY TO LOOK TO GROUP E-3. NORTH COAST TRAFFIC, GROUP D-1 IS SUBJECT TO EXCEPTION 10 (AS IS GROUP E-3 ON TRAFFIC FROM SOUTH COAST POINTS). EXCEPTION 10 PROVIDES:

"THE RESTRICTIONS PUBLISHED IN THIS ITEM WILL NOT APPLY TO EXPORT SHIPMENTS MOVED VIA ROUTE OF GM AND O OR IC THROUGH GROUP C-1, C-2 OR C-4 TO THE PORT OF NEW ORLEANS, LA.'

WE THINK IT CLEAR THAT THESE TARIFF PROVISIONS, TAKEN TOGETHER, AUTHORIZE USE OF THE GROUP H DOMESTIC RATE ON A SHIPMENT OF HOUSEHOLD GOODS FOR EXPORT MOVED THROUGH CHICAGO, ILLINOIS, AND THROUGH GROUP C-2 POINTS ON THE GM AND O THROUGH THE PORT OF NEW ORLEANS. TO CONSTRUE THE ROUTING SITUATION IN THE MANNER YOU URGE, WOULD RENDER MEANINGLESS EXCEPTION 10 PLACED AGAINST THE D-1 RATE GROUP, SINCE THE ONLY EXPORT RATES SUBJECT TO ROUTING BEYOND THE WESTERN GATEWAYS ARE THOSE GROUP H RATES MADE APPLICABLE BY THE EXCEPTION IN NOTE 9 OF THE TERRITORIAL DIRECTORY, THE EXPORT RATES NAMED IN SECTION 3 OF TARIFF 2-X BEING APPLICABLE VIA ALL LINES PARTIES TO THE TARIFF BEYOND THE GATEWAYS. THUS, GIVING EFFECT TO ALL THE PROVISIONS OF ITEM 9815-A, THE CONCLUSION IS INESCAPABLE THAT EXCEPTION 10 IS PLACED AGAINST GROUP D-1 (RATHER THAN AGAINST GROUP H) TO MAKE CONSISTENT THE GROUP H APPLICATION OF EXPORT RATES WHERE NORMALLY GROUP D-1 RATES ARE APPLICABLE. IN ANY EVENT, IF DOUBT EXISTS, THEN WE POINT OUT THAT OUR POSITION IS BUTTRESSED BY THE LONG-STANDING RULE THAT ANY DOUBT OR AMBIGUITY IN TARIFFS MUST BE RESOLVED AGAINST THE FREMERS AND IN FAVOR OF THE SHIPPER.

IN THE CIRCUMSTANCES, THE CONCLUSION REACHED IN OUR DECISIONS OF MAY 8, 1962, AND JUNE 3, 1963, B-148014, ARE REAFFIRMED. WE INFORMED YOU IN THE LATER DECISION THAT OUR TRANSPORTATION DIVISION HAD BEEN INSTRUCTED TO REOPEN THE SETTLEMENT AND TO RECOMPUTE THE CHARGES ON THE BASIS OF THE $4.04 RATE AND THAT YOU WOULD BE NOTIFIED OF THE REVISION IN THE SETTLEMENT. THAT RECOMPUTATION WAS BEING PREPARED WHEN WE RECEIVED YOUR LETTER OF JUNE 20; THE REVISED SETTLEMENT WILL NOW BE ISSUED AND YOU WILL RECEIVE NOTICE THEREOF IN DUE COURSE.