B-8640, MARCH 2, 1940, 19 COMP. GEN. 771

B-8640: Mar 2, 1940

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THE ROUTES USED TO ASCERTAIN THE LOWEST NET LAND-GRANT TRANSPORTATION CHARGES THAT WOULD HAVE BEEN AVAILABLE FOR PARTICULAR SHIPMENTS ARE SPECIFICALLY AUTHORIZED BY THE TARIFFS PUBLISHING THE RATES OVER SUCH ROUTES. ARE NOT APPLICABLE. THE MERE FACT THAT " INTERIM DIVISIONS" ARE PUBLISHED AS APPLYING ONLY IN CONNECTION WITH THE ROUTE BY WHICH A SHIPMENT ACTUALLY MOVES DOES NOT PRECLUDE THEIR USE FOR PURPOSES OF LAND-GRANT EQUALIZATION EVEN THOUGH THE ROUTE ACTUALLY USED IS DIFFERENT THAN THE LAND-GRANT ROUTE. WHICH SUM WAS DISALLOWED UNDER CERTIFICATE NO. 1938 YOU ORIGINALLY CLAIMED AND WERE PAID. THE OVERPAYMENT WHICH OCCASIONED YOUR REMITTANCE OF $162.84 WAS DETERMINED ON THE BASES OF A COMBINATION OF RATES CONSTRUCTED BY USING AS FACTORS THE RATES PUBLISHED TO AND BEYOND LOS ANGELES.

B-8640, MARCH 2, 1940, 19 COMP. GEN. 771

TRANSPORTATION - LAND GRANT - DEDUCTIONS - ROUTES WHERE, IN APPLYING CARRIERS' LAND-GRANT EQUALIZATION AGREEMENTS, THE ROUTES USED TO ASCERTAIN THE LOWEST NET LAND-GRANT TRANSPORTATION CHARGES THAT WOULD HAVE BEEN AVAILABLE FOR PARTICULAR SHIPMENTS ARE SPECIFICALLY AUTHORIZED BY THE TARIFFS PUBLISHING THE RATES OVER SUCH ROUTES, THE MILEAGE LIMITATIONS SPECIFIED IN 18 COMP. GEN. 691, RELATIVE TO THE MAXIMUM ALLOWABLE CIRCUITY FOR CONSTRUCTIVE ROUTES INVOLVING TARIFFS CONTAINING MERE GENERAL ROUTING INSTRUCTIONS, ARE NOT APPLICABLE. THE MERE FACT THAT " INTERIM DIVISIONS" ARE PUBLISHED AS APPLYING ONLY IN CONNECTION WITH THE ROUTE BY WHICH A SHIPMENT ACTUALLY MOVES DOES NOT PRECLUDE THEIR USE FOR PURPOSES OF LAND-GRANT EQUALIZATION EVEN THOUGH THE ROUTE ACTUALLY USED IS DIFFERENT THAN THE LAND-GRANT ROUTE.

ASSISTANT COMPTROLLER GENERAL ELLIOTT TO THE CHICAGO GREAT WESTERN RAILROAD CO., MARCH 2, 1940:

THERE HAS BEEN CONSIDERED YOUR CLAIM (FILE 2476-3-D-BILL F-1116) FOR $162.84, WHICH SUM WAS DISALLOWED UNDER CERTIFICATE NO. T-160526 1/2, OCTOBER 11, 1939, AND REPRESENTS THE AMOUNT REFUNDED BY YOU TO THE FEDERAL SURPLUS COMMODITIES CORPORATION BECAUSE OF AN OVERPAYMENT OF A SIMILAR SUM ON YOUR BILL NO. F-1116, BY G. F. ALLEN, CHIEF DISBURSING OFFICER, UNDER VOUCHER 407707, SEPTEMBER 17, 1938, FOR THE CARLOAD TRANSPORTATION OF BOXED GRAPEFRUIT FROM PHOENIX, ARIZ., TO SEVERAL POINTS IN IOWA AND TO ST. PAUL, MINN., ALL THE SHIPMENTS BEING ROUTED " ATCHISON, TOPEKA AND SANTA FE RAILWAY--- C.G.W.; " UNDER THE FOLLOWING BILLS OF LADING:

CHART

DESTINATION BILL OF LADING DATE DES MOINES, IOWA --------------- FSC- 164843 ---------- MAY 14, 1938 DES MOINES, IOWA --------------- FSC-164844 ---------- MAY 15, 1938 WATERLOO, IOWA ------------------ FSC-164851 ----- ----- MAY 16, 1938 MARSHALLTOWN, IOWA -------------- FSC-164854 ---------- MAY 17, 1938 ST. PAUL, MINN. ---------------- FSC-164865 ---------- MAY 20, 1938 ST. PAUL, MINN. ---------------- FSC-164866 ---------- MAY 17, 1938 ST. PAUL, MINN. ---------------- FSC-164867 ---------- MAY 21, 1938 ST. PAUL, MINN. ---------------- FSC-164868 ---------- MAY 20, 1938

YOU ORIGINALLY CLAIMED AND WERE PAID, FOR TRANSPORTING THE SHIPMENTS HERE CONCERNED, NET CHARGES APPARENTLY COMPUTED OVER LAND-GRANT ROUTES FROM PHOENIX, ARIZ., TO THE SEVERAL DESTINATIONS, VIA KANSAS CITY, MO. THE OVERPAYMENT WHICH OCCASIONED YOUR REMITTANCE OF $162.84 WAS DETERMINED ON THE BASES OF A COMBINATION OF RATES CONSTRUCTED BY USING AS FACTORS THE RATES PUBLISHED TO AND BEYOND LOS ANGELES, CALIF., TO APPLY VIA THE SOUTHERN PACIFIC CO. TO LOS ANGELES, THENCE SOUTHERN PACIFIC CO. TO PORTLAND, OREG., THENCE NORTHERN PACIFIC RAILWAY TO DESTINATION, OR NORTHERN PACIFIC RAILWAY TO ITS EASTERN JUNCTIONS, WHICH INCLUDE SUPERIOR, WIS., THENCE CONNECTING LINES OF THE NORTHERN PACIFIC RAILWAY TO DESTINATION. YOU URGE FOR CONSIDERATION THAT THE ROUTE VIA LOS ANGELES AND PORTLAND EXCEEDS THE MILEAGE LIMITATIONS SPECIFIED IN DECISION OF MARCH 7, 1939 (A-96395), 18 COMP. GEN. 691. YOU FURTHER STATE THAT THE ATCHISON, TOPEKA AND SANTA FE RAILWAY CO. ADVISED YOU THAT ,ON A SHIPMENT FROM PHOENIX, ARIZ., TO WATERLOO, IOWA, VIA LOS ANGELES, PORTLAND, SUPERIOR, LE MARS, ETC., MOVEMENT IS NOT AN ESTABLISHED LAND-GRANT ROUTE, SINCE THERE ARE NO DIVISIONS APPLICABLE BEYOND SUPERIOR EXCEPT TO USE INTERIM DIVISION BASIS, AND THAT INTERIM DIVISIONS ONLY APPLY TO ROUTES OVER WHICH THE TRAFFIC ACTUALLY MOVES.'

RELATIVE TO DECISION 18 COMP. GEN. 691 IT IS TO BE OBSERVED THAT THE MATTER THERE CONSIDERED WAS IN REFERENCE TO A TYPE OF TARIFF WHICH PROVIDED ROUTING INSTRUCTIONS WHICH WERE GENERAL IN EFFECT, THAT IS TO SAY, A TARIFF WHICH EXPRESSLY PROVIDED THAT THE RATES NAMED THEREIN WERE TO APPLY VIA ALL ROUTES COMPRISED OF CARRIERS WHO WERE PARTIES TO THE TARIFF, UNLESS OTHERWISE SPECIFICALLY PROVIDED IN THE TARIFF. IN THIS CONNECTION THE DECISION STATED THAT---

* * * IN GIVING EFFECT TO THE PROPOSED CIRCUITY TABLE, IT DOES NOT APPEAR NECESSARY OR PROPER THAT ROUTES WHICH HAVE BECOME WELL ESTABLISHED IN THE AUDITING PROCEDURE AS PROPER FOR EQUALIZATION, AND WITH WHICH THE RAILROADS AND THE ADMINISTRATIVE OFFICES OF THE GOVERNMENT ARE FAMILIAR, BE EXCLUDED AS NOT WITHIN THE REQUIREMENTS OF EQUALIZATION MERELY BECAUSE THEY MAY EXCEED THE LIMITS OF THE SUGGESTED TABLE, AND IT IS, OF COURSE, FURTHER TO BE UNDERSTOOD, AS SUGGESTED IN YOUR LETTER, THAT SPECIFIC TARIFF PROVISIONS AS TO ROUTING, MAXIMUM CIRCUITY, OR OTHER RESTRICTIVE OR PERMISSIVE RULES AFFECTING THE APPLICATION OF RATES, WILL TAKE PRECEDENCE OVER THE LIMITS YOU MENTION. * * *

WITH RESPECT TO THE SHIPMENTS HERE CONCERNED THE AMOUNTS WHICH YOU HAVE RECEIVED FOR TRANSPORTATION HAVE, IN EACH INSTANCE, BEEN DETERMINED ON THE BASIS OF A COMBINATION OF RATES TO AND BEYOND LOS ANGELES, CALIF. THE GROSS RATES SO CONSTRUCTED ARE APPLICABLE, ACCORDING TO THE PUBLISHED TARIFFS, VIA PORTLAND, OREG., AND ARE HIGHER THAN THE THROUGH RATES FROM PHOENIX TO THE RESPECTIVE DESTINATIONS VIA KANSAS CITY. THE RATES BEING SPECIFICALLY APPLICABLE THERE IS INVOLVED NO QUESTION OF CIRCUITY SUCH AS CONSIDERED IN THE CITED DECISION. THE RATE FROM PHOENIX TO LOS ANGELES IS PUBLISHED BY THE PACIFIC FREIGHT TARIFF BUREAU IN TARIFF NO. 26-S, I.C.C. NO. 1220 (32 CENTS PER 100 POUNDS) AND IS EXPRESSLY APPLICABLE VIA THE SOUTHERN PACIFIC CO.; THE RATES FROM LOS ANGELES TO THE RESPECTIVE DESTINATIONS ARE PUBLISHED IN TRANSCONTINENTAL FREIGHT BUREAU TARIFF 44E, I.C.C. 1403, AS GOVERNED BY SOUTH COAST TERRITORIAL DIRECTORY NO. 41-F, I.C.C. 1402, AND IN ACCORDANCE WITH THE PROVISIONS OF THESE TARIFFS THE RATES FROM LOS ANGELES, AMONG OTHER ROUTES, ARE EXPRESSLY APPLICABLE VIA THE SOUTHERN PACIFIC CO. TO PORTLAND, OREG., THENCE NORTHERN PACIFIC RAILWAY TO DESTINATION OR IN CONNECTION WITH THE NORTHERN PACIFIC RAILWAY TO ITS EASTERN JUNCTION, WHICH INCLUDES SUPERIOR, WIS., WITH OTHER CARRIERS, THENCE VIA ITS CONNECTING LINES TO DESTINATION. THERE APPEAR TO BE NO LIMITATIONS OR QUALIFICATIONS IN ANY OF THE SAID TARIFFS THAT WOULD AFFECT THE SPECIFIC ROUTES AUTHORIZED THEREIN AND OVER WHICH THE NET CHARGES WHICH YOU HAVE RECEIVED FOR THE SERVICES PERFORMED WERE COMPUTED. MOREOVER, IT APPEARS THAT THE SO-CALLED NORTHERN ROUTE HAS BEEN USED AS A BASIS OF SETTLEMENT FOR THE PURPOSE OF MAKING AVAILABLE TO THE UNITED STATES LOWER RATES ON TRANSCONTINENTAL TRAFFIC UNDER THE SEVERAL CARRIERS' EQUALIZATION AGREEMENTS FOR A PERIOD OF YEARS, AND IS A WELL ESTABLISHED ROUTE "WITH WHICH THE RAILROADS AND THE ADMINISTRATIVE OFFICES OF THE GOVERNMENT ARE FAMILIAR.'

IN REFERENCE TO THE CONTENTION THAT " INTERIM DIVISIONS ONLY APPLY TO ROUTES OVER WHICH THE TRAFFIC ACTUALLY MOVES," IT IS TO BE OBSERVED THAT UNDER THE LAND-GRANT EQUALIZATION AGREEMENTS OF THE SEVERAL CARRIERS PERFORMING THE SERVICE, THERE ARE FOR APPLICATION THE DIVISIONS THAT WOULD BE EMPLOYED FOR THE PURPOSE OF DETERMINING THE NET CHARGES THAT WOULD BE APPLICABLE FOR TRANSPORTATION OF THE GIVEN SHIPMENT VIA THE LAND-GRANT ROUTE. IN OTHER WORDS, IF THE INTERIM DIVISION BASIS WOULD BE USED TO DETERMINE THE CHARGES ON A SHIPMENT ACTUALLY TRANSPORTED VIA THE LAND- GRANT ROUTE, NO REASON APPEARS WHY THE CHARGES SO COMPUTED ARE NOT REQUIRED TO BE ACCEPTED BY THE EQUALIZING CARRIERS PERFORMING THE SERVICE. IN THE DETERMINATION OF THE LOWEST LAND-GRANT CHARGE IT IS REQUIRED THAT ONLY RATES AND DIVISIONS APPLICABLE OVER THE ROUTE SELECTED FOR LAND-GRANT EQUALIZATION PURPOSES BE USED.

IT FOLLOWS THAT THE ROUTES USED FOR THE PURPOSE OF ASCERTAINING THE LOWEST NET LAND-GRANT CHARGES WHICH YOU HAVE RECEIVED IN PAYMENT FOR TRANSPORTING THE SHIPMENTS HERE CONCERNED, BEING AUTHORIZED BY THE TARIFFS PUBLISHING THE RATES OVER SUCH ROUTES, THE MILEAGE LIMITATIONS IN DECISION 18 COMP. GEN. 691, ARE WITHOUT EFFECT. ACCORDINGLY, THE SETTLEMENT IS SUSTAINED.