B-152164, JAN. 28, 1964

B-152164: Jan 28, 1964

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TO ILLINOIS CENTRAL RAILROAD: REFERENCE IS MADE TO YOUR LETTERS OF JULY 26. IN URGING PAYMENT OF YOUR CLAIM YOU CONTEND THAT THESE SHIPMENTS WERE KNOCKED-DOWN STEEL BARGES AND THAT THE RATES ON BARGES SHOULD BE APPLIED IN THE COMPUTATION OF THE FREIGHT CHARGES. SHOW THAT THREE OR MORE CARS WERE REQUIRED FOR THE TRANSPORTATION OF A COMPLETE BARGE AND THAT NO SINGLE CARLOAD SHIPMENT CONTAINED ALL OR SUBSTANTIALLY ALL OF THE PARTS AND PIECES FOR A COMPLETE BARGE. THE INTERSTATE COMMERCE COMMISSION HAS CONSISTENTLY HELD THAT THE SHIPPER HAS THE RIGHT TO SEPARATE A COMPLETE ARTICLE INTO ITS CONSTITUENT PARTS AND TO HAVE THE FREIGHT CHARGES COMPUTED AT THE RATES APPLICABLE TO THE COMPONENT PARTS CONTAINED IN EACH SHIPMENT.

B-152164, JAN. 28, 1964

TO ILLINOIS CENTRAL RAILROAD:

REFERENCE IS MADE TO YOUR LETTERS OF JULY 26, 1963, AND JANUARY 21, 1964, FILE G-WQ-45563-BC, IN WHICH YOU REQUEST REVIEW OF THE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR $8,436.87 ADDITIONAL TRANSPORTATION CHARGES ON 21 SHIPMENTS OF BARGE PARTS WHICH MOVED FROM GUILDERLAND CENTER, NEW YORK, TO NEW ORLEANS, LOUISIANA.

IN URGING PAYMENT OF YOUR CLAIM YOU CONTEND THAT THESE SHIPMENTS WERE KNOCKED-DOWN STEEL BARGES AND THAT THE RATES ON BARGES SHOULD BE APPLIED IN THE COMPUTATION OF THE FREIGHT CHARGES. THE RECORDS HERE, HOWEVER, SHOW THAT THREE OR MORE CARS WERE REQUIRED FOR THE TRANSPORTATION OF A COMPLETE BARGE AND THAT NO SINGLE CARLOAD SHIPMENT CONTAINED ALL OR SUBSTANTIALLY ALL OF THE PARTS AND PIECES FOR A COMPLETE BARGE. SEVERAL OF THESE SHIPMENTS CONTAINED ONLY FABRICATED STEEL PLATES, ANGLES AND PANELS.

THE INTERSTATE COMMERCE COMMISSION HAS CONSISTENTLY HELD THAT THE SHIPPER HAS THE RIGHT TO SEPARATE A COMPLETE ARTICLE INTO ITS CONSTITUENT PARTS AND TO HAVE THE FREIGHT CHARGES COMPUTED AT THE RATES APPLICABLE TO THE COMPONENT PARTS CONTAINED IN EACH SHIPMENT. SEE WESTERN CLASSIFICATION CASE, 25 I.C.C. 442; INTERNATIONAL DERRICK AND EQUIPMENT CO. V. PENNSYLVANIA R.R. CO., 283 I.C.C. 793. SEE, ALSO, OKLAHOMA CORPORATION COMMISSION V. MIDLAND VALLEY R.R. CO., 259 I.C.C. 401, AFFIRMED 263 I.C.C. 783, WHEREIN THE INTERSTATE COMMERCE COMMISSION FOUND THAT THE RATES ON IRON AND STEEL STRUCTURAL MATERIALS AND NOT THE RATES ON FABRICATED KNOCKED-DOWN PORTABLE BUILDINGS APPLIED ON CARLOAD SHIPMENTS CONTAINING ONLY 30 TO 50 PERCENT OF THE PARTS NECESSARY TO CONSTRUCT A BUILDING. THE SAME PRINCIPLE SEEMS TO APPLY TO THE SHIPMENTS INVOLVED IN YOUR CLAIMS, SINCE NO SINGLE CARLOAD SHIPMENT CONTAINED THE NECESSARY PARTS FOR A COMPLETE BARGE.

WE ALSO NOTE THAT THE SEVERAL RAILROAD CLASSIFICATION COMMITTEES, AFTER CAREFUL RECONSIDERATION OF THE RATING OF KNOCKED-DOWN STEEL BARGE SECTIONS, CONCLUDED THAT SUCH ITEMS SHOULD BE CLASSIFIED AS IRON OR STEEL FORMS, NOIBN, STRUCTURAL, FABRICATED FROM MATERIAL 3/16 INCH OR THICKER. THIS RULING RELATED TO THE PROPER FREIGHT CLASSIFICATION OF THESE SECTIONS, AND MERELY CORRECTED THE PREVIOUS MISCLASSIFICATION OF THESE ARTICLES AS BARGES. THE FINDING SEEMS TO BE APPLICABLE REGARDLESS OF THE DATE THE SHIP SECTIONS MOVED IN TRANSPORTATION AND TO HAVE APPLICATION IN THE COMPUTATION OF THE CHARGES ON THE IRON OR STEEL BARGE SECTIONS WHICH COMPRISED THE GREATEST PART OF THE WEIGHT OF THESE SHIPMENTS.

ALTHOUGH IT IS OUR VIEW THAT THE IRON AND STEEL RATING APPLIES ON THE IRON AND STEEL ARTICLES IN THESE SHIPMENTS, OUR FURTHER INVESTIGATION REVEALS THAT SEVERAL OF THE SHIPMENTS DID CONTAIN CONTRABAND ARTICLES AND THAT THE WEIGHT OF THESE CONTRABAND ARTICLES CANNOT NOW BE ASCERTAINED. WE ARE, THEREFORE, INSTRUCTING OUR TRANSPORTATION DIVISION TO RECONSIDER THE PRIOR SETTLEMENT OF YOUR CLAIM AND TO ISSUE A REVISED SETTLEMENT IF REQUIRED, WHICH SHOULD REACH YOU IN DUE COURSE.