B-2416, AUGUST 29, 1939, 19 COMP. GEN. 304

B-2416: Aug 29, 1939

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WERE DISALLOWED: CHART SETTLEMENT DATE BILL CLAIMED 124566 1/2 . YOU STATE: WILL YOU PLEASE REFER TO CONSOLIDATED FREIGHT CLASSIFICATION NO. 11. THE MINIMUM CHARGE FOR HANDLING A LESS-THAN-CARLOAD SHIPMENT IS FIFTY CENTS. FURTHER WE CONTEND OUR CLAIM IS IN STRICT CONFORMITY WITH FORM B OF EQUALIZATION AGREEMENT. NO ARTICLE IS RATED HIGHER THAN ST CLASS. OR IF ANY ONE OF THE ARTICLES IS RATED HIGHER THAN ST CLASS. WHETHER SUCH SEPARATELY ESTABLISHED RATES ARE GOVERNED BY SAME OR DIFFERENT CLASSIFICATIONS PUBLISHED HEREIN. THE MINIMUM CHARGE OF 50 CENTS WILL APPLY TO THE CONTINUOUS THROUGH MOVEMENT AND NOT TO EACH OF THE SEPARATELY ESTABLISHED FACTORS. FOR THE TRANSPORTATION OF PROPERTY OR TROOPS OF THE UNITED STATES OVER ANY RAILROAD WHICH UNDER LAND-GRANT ACTS WAS AIDED IN ITS CONSTRUCTION BY A GRANT OF LAND ON CONDITION THAT SAID RAILROAD SHALL BE AND REMAIN A PUBLIC HIGHWAY FOR THE USE OF THE UNITED STATES.

B-2416, AUGUST 29, 1939, 19 COMP. GEN. 304

TRANSPORTATION - LAND-GRANT DEDUCTIONS - MINIMUM-CHARGE TARIFF PROVISIONS THE FACT THAT THE APPLICABLE TARIFF, OR CLASSIFICATION RULE, PRESCRIBES A MINIMUM BELOW WHICH THE CHARGE COLLECTIBLE FROM THE PUBLIC AT LARGE, FOR A GIVEN TRANSPORTATION SERVICE, MAY NOT DESCEND, DOES NOT PROHIBIT THE REDUCTION OF THE CHARGE FOR SUCH TRANSPORTATION BELOW SAID MINIMUM IN CONNECTION WITH A SHIPMENT OF PROPERTY OF THE UNITED STATES OVER A LAND GRANT AIDED LINE.

ASSISTANT COMPTROLLER GENERAL ELLIOTT TO THE CHICAGO GREAT WESTERN RAILROAD COMPANY, AUGUST 29, 1939:

THERE HAS BEEN CONSIDERED YOUR REQUEST FOR REVIEW OF THE SETTLEMENTS LISTED BELOW IN WHICH THE AMOUNTS SHOWN BELOW, CLAIMED AS BEING DUE ON THE BASIS OF A MINIMUM CHARGE FOR LESS THAN CARLOAD SHIPMENTS, WERE DISALLOWED:

CHART

SETTLEMENT DATE BILL CLAIMED 124566 1/2 -- -------------- 6/21/38

F-716 $0.22 124142 1/2 ----------------- 5/28/38 F-722 1.25 126146 1/2 -- --------------- 7/16/38 F-731 .40 130048 --------------------- 8/16/38 F- 772

1.50 126488 1/2 ----------------- 8/19/38 F-784 .21 124364 1/2 ---------- ------- 6/15/38 F-799 .50 124982 1/2 ----------------- 7/9/38 F-803

.16 134380 --------------------- 9/26/38 F-1118

.25

4.49

IN THE REQUEST FOR REVIEW OF THE SETTLEMENTS, YOU STATE:

WILL YOU PLEASE REFER TO CONSOLIDATED FREIGHT CLASSIFICATION NO. 11, RULE 13, SECTION 1, PARAGRAPH (D), WHICH PROVIDES AS FOLLOWS: "IN NO CASE SHALL THE CHARGE ON A SINGLE SHIPMENT BE LESS THAN FIFTY CENTS.'

THEREFORE, UNDER THE PROVISIONS OF THIS RULE, THE MINIMUM CHARGE FOR HANDLING A LESS-THAN-CARLOAD SHIPMENT IS FIFTY CENTS, AND THIS APPLIES TO SHIPMENTS MOVING UNDER COMMERCIAL OR GOVERNMENT BILLS OF LADING, AND FURTHER WE CONTEND OUR CLAIM IS IN STRICT CONFORMITY WITH FORM B OF EQUALIZATION AGREEMENT.

SECTION 1, RULE 13, CONSOLIDATED FREIGHT CLASSIFICATION NO. 11, RELATING TO THE MINIMUM CHARGE ON LESS-THAN-CARLOAD SHIPMENTS PROVIDES:

SECTION 1. THE MINIMUM CHARGE FOR A SINGLE L.C.L. SHIPMENT FROM ONE CONSIGNOR TO ONE CONSIGNEE ON ONE BILL OF LADING SHALL BE:

(A) IF CLASSIFIED ST CLASS OR LOWER, FOR 100 LBS. AT THE CLASS OR COMMODITY RATE APPLICABLE THERETO; OR

(B) IF CLASSIFIED HIGHER THAN ST CLASS, FOR 100 LBS. AT THE ST CLASS RATE; OR

(C) IF SHIPMENT CONTAINS DIFFERENT ARTICLES, AND NO ARTICLE IS RATED HIGHER THAN ST CLASS, FOR 100 LBS. AT THE CLASS OR COMMODITY RATE APPLICABLE TO THE ARTICLE TAKING HIGHEST RATE; OR IF ANY ONE OF THE ARTICLES IS RATED HIGHER THAN ST CLASS, FOR 100 LBS. AT THE ST CLASS RATE; BUT

(D) IN NO CASE SHALL THE CHARGE ON A SINGLE SHIPMENT BE LESS THAN 40 CENTS. WHEN A L.C.L. SHIPMENT MOVES UNDER A RATE MADE BY A COMBINATION OF SEPARATELY ESTABLISHED RATES IN THE ABSENCE OF JOINT THROUGH RATE, WHETHER SUCH SEPARATELY ESTABLISHED RATES ARE GOVERNED BY SAME OR DIFFERENT CLASSIFICATIONS PUBLISHED HEREIN, THE MINIMUM CHARGE OF 50 CENTS WILL APPLY TO THE CONTINUOUS THROUGH MOVEMENT AND NOT TO EACH OF THE SEPARATELY ESTABLISHED FACTORS.

IT APPEARS TO BE YOUR CONTENTION THAT UNDER THE PROVISIONS OF PARAGRAPH (D) OF THE ABOVE RULE THE MINIMUM CHARGE TO BE COLLECTED BY THE CARRIER FOR TRANSPORTATION OF A GOVERNMENT SHIPMENT, AS WELL AS FOR TRANSPORTATION OF A COMMERCIAL SHIPMENT, CANNOT BE LESS THAN 50 CENTS. THIS VIEW, HOWEVER, OVERLOOKS THE FACT THAT THE ACT OF JUNE 7, 1924, 43 STAT. 477, 486, PROVIDED:

THAT HEREAFTER PAYMENT * * * SHALL NOT EXCEED 50 PERCENTUM OF THE FULL AMOUNT OF COMPENSATION, COMPUTED ON THE BASIS OF THE TARIFF OR LOWER SPECIAL RATES FOR LIKE TRANSPORTATION PERFORMED FOR THE PUBLIC AT LARGE, FOR THE TRANSPORTATION OF PROPERTY OR TROOPS OF THE UNITED STATES OVER ANY RAILROAD WHICH UNDER LAND-GRANT ACTS WAS AIDED IN ITS CONSTRUCTION BY A GRANT OF LAND ON CONDITION THAT SAID RAILROAD SHALL BE AND REMAIN A PUBLIC HIGHWAY FOR THE USE OF THE UNITED STATES, AND FOR WHICH ADJUSTMENT OF COMPENSATION IS REQUIRED IN ACCORDANCE WITH DECISIONS OF THE SUPREME COURT CONSTRUING SUCH LAND-GRANT ACTS, OR OVER ANY RAILROAD WHICH WAS AIDED IN ITS CONSTRUCTION BY A GRANT OF LAND ON CONDITION THAT SUCH RAILROAD SHOULD BE A POST ROUTE AND MILITARY ROAD, SUBJECT TO SUCH REGULATIONS AS CONGRESS MAY IMPOSE RESTRICTING THE CHARGE FOR SUCH GOVERNMENT TRANSPORTATION, AND SUCH PAYMENT SHALL BE ACCEPTED AS IN FULL FOR ALL DEMANDS FOR SUCH SERVICE.

THE FACT, THEREFORE, THAT THE TARIFF, OR CLASSIFICATION RULE, MAY PRESCRIBE A MINIMUM BELOW WHICH THE CHARGE COLLECTIBLE FROM THE PUBLIC AT LARGE, FOR A GIVEN TRANSPORTATION SERVICE, MAY NOT DESCEND, DOES NOT REMOVE THE RESTRICTION IMPOSED BY THE ABOVE STATUTORY PROVISION AGAINST PAYMENT OF MORE, FOR TRANSPORTATION OF PROPERTY AND TROOPS OF THE UNITED STATES OVER LAND-GRANT RAILROADS, THAN 50 PERCENTUM "OF THE FULL AMOUNT OF COMPENSATION" FOR LIKE TRANSPORTATION PERFORMED FOR THE PUBLIC AT LARGE OVER SAID RAILROADS. IN OTHER WORDS WHERE THE MINIMUM CHARGE OF 50 CENTS FOR A GIVEN SHIPMENT WOULD BE PROPERLY COLLECTIBLE FROM THE PUBLIC AT LARGE, SAID CHARGE MUST BE REDUCED WITH RESPECT TO THE TRANSPORTATION FOR THE GOVERNMENT OF A LIKE SHIPMENT OF PROPERTY OF THE UNITED STATES IF THE SERVICE IS RENDERED OVER A LINE SUBJECT, BY REASON OF LAND GRANT, TO THE CONDITIONS SPECIFIED.

THERE IS ALSO FOR CONSIDERATION THE FACT THAT THE DIFFERENCE BETWEEN THE COMMERCIAL MINIMUM CHARGE AND THE AMOUNT PAYABLE FROM APPROPRIATED FUNDS UNDER THE ABOVE RESTRICTION MAY BE SAID TO HAVE BEEN PAID IN THE FORM OF THE LAND GRANTED BY THE GOVERNMENT TO AID IN THE CONSTRUCTION OF THE LINE OF RAILROAD. THUS IN LOUISVILLE AND NASHVILLE RAILROAD CO. V. UNITED STATES, 267 U.S. 395, IT WAS SAID:

THE CARRIER'S OBLIGATION TO HAUL PROPERTY OF THE UNITED STATES AT REDUCED RATES WAS A PART OF THE CONSIDERATION FOR WHICH THE LAND GRANT WAS MADE. PART OF APPELLANT'S COMPENSATION FOR HAULING THE COAL WAS PAID IN LAND, AND THE BALANCE WAS PAID IN MONEY. IT CANNOT BE SAID THAT THE TOTAL WAS LESS THAN A DOLLAR PER TON.

LIKEWISE IN THE PRESENT MATTER IT MAY BE SAID THAT A PART OF THE MINIMUM CHARGE WAS PAID IN LAND AND THE BALANCE IN MONEY. THE TOTAL WOULD EQUAL THE MINIMUM CHARGE COLLECTIBLE FROM THE PUBLIC FOR LIKE SERVICE.

ACCORDINGLY A DEDUCTION FOR LAND GRANT FROM THE MINIMUM CHARGE HERE CONCERNED APPEARS TO HAVE BEEN AUTHORIZED BY LAW AND THE SETTLEMENTS MAY NOT BE MODIFIED AS URGED.