B-8771, FEBRUARY 28, 1940, 19 COMP. GEN. 765

B-8771: Feb 28, 1940

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

IN WHICH THE CHARGES WERE COMPUTED ON THE BASIS OF DIVISIONS AS INDICATED IN 18 COMP. WHICH INDICATES THAT IT IS TO BE . " TEMPORARY PERCENTAGES" AND YOUR POSITION THAT PENDING A DETERMINATION BY THE INTERSTATE COMMERCE COMMISSION OF A BASIS OF DIVISIONS TO BE APPLIED OR A PERMANENT BASIS OF PERCENTS WERE AGREED UPON BETWEEN THE INTERESTED CARRIERS. YOUR ATTENTION IS THEREFORE DIRECTED TO SUPPLEMENT 18 TO WTL D/S NO. 657-A WHICH ERASES THE WORD " TEMPORARY" FROM THE TITLE PAGE OF THE DIVISION SHEET AND MAKES THE DIVISIONS CONTAINED THEREIN PERMANENT. IT IS REQUESTED THAT YOU FAVOR ME BY AUTHORIZING ADDITIONAL PAYMENT IN THE AMOUNT OF $43.06 TO APPLY ON OUR BILL 12465. WAS $191.53 BASED ON THE SAME RATE AND WEIGHT AS CLAIMED BY YOU BUT DIVIDED BY ALLOWING LINES WEST OF HANNIBAL.

B-8771, FEBRUARY 28, 1940, 19 COMP. GEN. 765

TRANSPORTATION - RATES - DIVISIONS - INTERTERRITORIAL SHIPMENTS A SETTLEMENT MADE FOR TRAFFIC MOVING IN MARCH 1939 UNDER RATES PUBLISHED PURSUANT TO INTERSTATE COMMERCE COMMISSION DOCKET 17000, PART 2, AND IN WHICH THE CHARGES WERE COMPUTED ON THE BASIS OF DIVISIONS AS INDICATED IN 18 COMP. GEN. 418, MAY NOT BE REOPENED BECAUSE OF THE ISSUANCE OF SUPPLEMENT NO. 18 TO WESTERN TRUNK LINE DIVISION SHEET NO. 657-A, WHICH INDICATES THAT IT IS TO BE ,EFFECTIVE WITH WAYBILLS TAKEN INTO OCTOBER 1939 ACCOUNTS.' CORRESPONDENCE RELATIVE TO THE EFFECT OF SAID SUPPLEMENT NO. 18, DISCUSSED.

ASSISTANT COMPTROLLER GENERAL ELLIOTT TO THE ATCHISON, TOPEKA AND SANTA FE RY. CO., FEBRUARY 28, 1940:

YOUR LETTER DATED DECEMBER 27, 1939, FILE Y-12465, REQUESTS REVIEW OF SETTLEMENT T-157123 AND AN ADDITIONAL ALLOWANCE OF $43.06, AS FOLLOWS:

REFERRING TO YOUR LETTER OF AUGUST 2, 1939, CERTIFICATE T-157123, CLAIM NO. 659294 IN WHICH YOU ADVISED THAT $43.06 HAD BEEN DISALLOWED FROM TRANSPORTATION CHARGE AS BILLED ON SHIPMENT OF WATER HEATER FROM SPRINGFIELD, OHIO, TO FT. LYONS, COLO., COVERED BY B/L NO. VA-338530 DATED MARCH 20, 1939.

YOUR ORGANIZATION HAS ALWAYS REFUSED TO ACCEPT WTL D/S NO. 657-A BECAUSE THE TITLE PAGE READ," TEMPORARY PERCENTAGES" AND YOUR POSITION THAT PENDING A DETERMINATION BY THE INTERSTATE COMMERCE COMMISSION OF A BASIS OF DIVISIONS TO BE APPLIED OR A PERMANENT BASIS OF PERCENTS WERE AGREED UPON BETWEEN THE INTERESTED CARRIERS, THE LOCAL RATE WEST OF THE GATEWAY WOULD BE EMPLOYED. THE COMPTROLLER GENERAL BY FORMAL DECISIONS NO. A- 84506 AND A-98987 AUTHORIZED THE CARRIERS TO RECLAIM AMOUNT DISALLOWED EFFECTIVE WITH THE ESTABLISHMENT OF PERMANENT DIVISIONS. YOUR ATTENTION IS THEREFORE DIRECTED TO SUPPLEMENT 18 TO WTL D/S NO. 657-A WHICH ERASES THE WORD " TEMPORARY" FROM THE TITLE PAGE OF THE DIVISION SHEET AND MAKES THE DIVISIONS CONTAINED THEREIN PERMANENT. IT IS REQUESTED THAT YOU FAVOR ME BY AUTHORIZING ADDITIONAL PAYMENT IN THE AMOUNT OF $43.06 TO APPLY ON OUR BILL 12465.

YOUR BILL 12465 CLAIMED $234.59 FOR THE TRANSPORTATION OF ONE FEED WATER HEATER AND PARTS, 12,931 POUNDS, FROM SPRINGFIELD, OHIO, TO FORT LYON, COLORADO, PER BILL OF LADING VA-338530, MARCH 20, 1939, ON THE BASIS OF A MINIMUM WEIGHT OF 24,000 POUNDS AT A THROUGH CLASS A RATE OF $1.33 PER 100 POUNDS, APPARENTLY AS PUBLISHED IN AGENT B. T. JONES' TARIFF 491-C, I.C.C. 3253, LESS 26.506 PERCENT LAND GRANT. THE ALLOWANCE UNDER CERTIFICATE NO. T-157123, AUGUST 2, 1939, WAS $191.53 BASED ON THE SAME RATE AND WEIGHT AS CLAIMED BY YOU BUT DIVIDED BY ALLOWING LINES WEST OF HANNIBAL, MISSOURI, A JOINT RATE OF $1.17 PER 100 POUNDS ( W.T.L. D/S 657), PUBLISHED TO APPLY ON LIKE TRAFFIC FROM HANNIBAL TO FORT LYON, WHICH WAS DIVIDED 28 AND 72 PERCENT TO AND BEYOND ATCHINSON, KANSAS ( W.T.L. D/S 700), LESS LAND-GRANT DEDUCTIONS OF 45.125 PERCENT AND 43.890 PERCENT, RESPECTIVELY; EAST OF HANNIBAL, MO., THE BALANCE OF THE THROUGH RATE (16 CENTS) WAS DIVIDED 75 AND 25 PERCENT TO AND BEYOND CHICAGO, ILL. ( JOINT RATE COMMITTEE CIRCULAR 20 A), AND THE 75 PERCENT PROPORTION BEING FURTHER DIVIDED 76 AND 24 PERCENT TO AND BEYOND KANKAKEE, ILL. ( ILL. CENTRAL. R.R. D/S 12676), LESS 50 PERCENT LAND GRANT FROM THE 24 PERCENT PROPORTION.

WITH RESPECT TO SUPPLEMENT NO. 18 TO WESTERN TRUNK LINE DIVISION SHEET NO. 657-A, TO WHICH YOU INVITE ATTENTION, THERE IS FOR CONSIDERATION THE EXPRESS PROVISION ON PAGE 2 THEREOF WHICH READS:

CHANGE ON TITLE PAGES AMEND PORTION OF TITLE PAGES OF DIVISION SHEET, SUPPLEMENT NO. 1,

SUPPLEMENT NO. 4, AND SUPPLEMENT NO. 15, NOW READING:

TEMPORARY PERCENTAGES

FOR DIVIDING RATES

ON

FREIGHT TRAFFIC

MOVING VIA ALL-RAIL ROUTES (INCLUDING CAR FERRY ROUTES)

TO READ:PERCENTAGES FOR DIVIDING

ALL RAIL (INCLUDING CAR FERRY ROUTE) JOINT CLASS AND COLUMN

RATES ALSO COMMODITY

RATES

AS INDICATED IN ITEM 60 OF DIVISION SHEET, AS AMENDED

ON

LESS-THAN-CARLOAD TRAFFIC AMEND. TITLE PAGES OF DIVISION SHEET, SUPPLEMENT NO. 1, SUPPLEMENT NO. 4, AND SUPPLEMENT NO. 15, BY THE ELIMINATION THEREFROM OR BY THE ADDITION THERETO, AS FOLLOWS: ELIMINATE: EXPIRATION DATE FORMERLY SHOWN. ADD: EFFECTIVE WITH WAYBILLS TAKEN INTO OCTOBER 1939 ACCOUNTS.

IT IS TO BE OBSERVED THAT SUPPLEMENT NO. 18 PURPORTS TO MAKE DIVISION SHEET NO. 657-A, AND AFFECTED SUPPLEMENTS THERETO, APPLICABLE ONLY ON " LESS-THAN-CARLOAD TRAFFIC" AND THAT SAID APPLICATION IS TO BE "EFFECTIVE WITH WAYBILLS TAKEN INTO OCTOBER 1939 ACCOUNTS.' THE BASIS, THEREFORE, ON WHICH THE RETROACTIVE APPLICATION OF SUPPLEMENT 18 MAY BE CONSIDERED AS BEING ESTABLISHED WITH RESPECT TO TRAFFIC MOVING IN MARCH 1939 IS NOT APPARENT. BUT EVEN IF SAID SUPPLEMENT WERE PROPERLY TO BE REGARDED AS HAVING ANY RETROACTIVE APPLICATION, IT EXPRESSLY EXCLUDES THEREFROM CARLOAD TRAFFIC SUCH AS HERE CONCERNED. IT FOLLOWS THAT THE AMOUNT PAID UNDER CERTIFICATE NO. T-157123 FOR TRANSPORTING THE SUBJECT SHIPMENT, IS NOT FOR ADJUSTMENT UNDER THE PROVISIONS OF SUPPLEMENT NO. 18, THE AMOUNT SO PAID BEING IN ACCORDANCE WITH THE PRINCIPLE OF DECISION OF NOVEMBER 4, 1938, 18 COMP. GEN. 418.

CONCERNING THE MATTER OF ADOPTION BY THE CARRIERS OF PERMANENT DIVISIONS IN CONNECTION WITH RATES PUBLISHED PURSUANT TO INTERSTATE COMMERCE COMMISSION DOCKET 17000, PART 2, IT APPEARS FROM INFORMATION FURNISHED THIS OFFICE THAT CHIEF EXAMINER ULYSSES BUTLER OF THE INTERSTATE COMMERCE COMMISSION ADDRESSED A LETTER UNDER DATE OF FEBRUARY 1, 1940, TO MR. A. F. CLEVELAND, VICE PRESIDENT OF THE ASSOCIATION OF AMERICAN RAILROADS, IN WHICH, AFTER REFERRING TO SUPPLEMENT NO. 18, HE REQUESTED INFORMATION AS FOLLOWS:

PLEASE ADVISE WHETHER THE SITUATION IS SUCH THAT IT IS THE PURPOSE OF THE CARRIERS TO WITHDRAW THE PETITION OF DECEMBER 4, 1931.

IN REPLY THERETO UNDER DATE OF FEBRUARY 2, 1940, FILE 1-113-4, MR. CLEVELAND ADVISED THAT:

I AM NOT IN POSITION TO ANSWER YOUR LETTER AS TO THE WITHDRAWAL BUT HOPE TO HAVE THE INFORMATION SHORTLY, AT WHICH TIME I WILL ADVISE YOU FULLY. MIGHT STATE THAT WHILE IT IS TRUE THE EASTERN LINES AND SOME OF THE WESTERN LINES HAVE CONCLUDED PERMANENT DIVISIONS OF THE 17000 PART 2 RATES, THERE ARE OTHER LINES WHO HAVE NOT AS YET BEEN ABLE TO ADJUST THESE DIVISIONS AND SOME OF THE WESTERN LINES HAVE FILED A NEW COMPLAINT WITH YOUR COMMISSION ASKING THAT IT INSTITUTE AN INVESTIGATION AND ESTABLISH THE BASIS. I HOPE TO GIVE YOU IN THE NEAR FUTURE AN ANSWER TO YOUR INQUIRY AS TO WHETHER THE PETITION OF DECEMBER 4, 1931, WILL BE WITHDRAWN.

THE INTERSTATE COMMERCE COMMISSION THEN UNDER DATE OF FEBRUARY 9, 1940, INFORMED THIS OFFICE:

REFERRING TO MY LETTER OF FEBRUARY ST, ADDRESSED TO MR. A. F. CLEVELAND, COPY TO YOU, CONCERNING THE PETITION DATED DECEMBER 4, 1931, FILED BY RAIL CARRIERS OPERATING IN OFFICIAL AND WESTERN TRUNK LINE TERRITORIES FOR INVESTIGATION AND PRESCRIPTION BY THE COMMISSION OF DIVISIONS OF INTERTERRITORIAL JOINT ALL-RAIL CLASS RATES AND RELATED RATES REQUIRED BY THE FINDINGS IN NO. 17000, PART 2, I ENCLOSE COPY OF MR. CLEVELAND'S REPLY.

THE COMPLAINT FILED BY SOME OF THE WESTERN LINES, REFERRED TO BY MR. CLEVELAND, IS OUR DOCKET NO. 28277, JAMES O. LOWDEN ET AL., TRUSTEES OF CHICAGO, ROCK ISLAND AND PACIFIC RAILWAY COMPANY ET AL. V. AHNAPEE AND WESTERN RAILWAY COMPANY ET AL. IN THAT COMPLAINT THE MISSOURI 1KANSAS- 1TEXAS RAILROAD COMPANY, CHICAGO GREAT WESTERN RAILROAD COMPANY, ST. LOUIS -1SAN FRANCISCO RAILWAY COMPANY, KANSAS CITY SOUTHERN RAILWAY COMPANY, MISSOURI PACIFIC RAILROAD COMPANY, AND MISSOURI PACIFIC RAILROAD CORPORATION OF NEBRASKA ARE JOINED AS COMPLAINANTS WITH THE ROCK ISLAND. THAT COMPLAINT ASKS THE COMMISSION TO FIX REASONABLE DIVISIONS OF THE INTERTERRITORIAL JOINT RATES ABOVE REFERRED TO. COMPLAINANTS SAY THEY WILL NOT BE READY FOR HEARING FOR SEVERAL MONTHS.

IT FURTHER APPEARS THAT THE INQUIRY OF CHIEF EXAMINER BUTLER ADDRESSED TO MR. CLEVELAND UNDER DATE OF FEBRUARY 1, 1940, WAS CONSIDERED AT A MEETING OF TRAFFIC AND LEGAL REPRESENTATIVES OF THE OFFICIAL TERRITORY LINES, HELD ON FEBRUARY 8, 1940, IN BUFFALO, NEW YORK, AND THAT PURSUANT THERETO THE CHIEF EXAMINER WAS INFORMED BY MR. M. CARTER HALL, GENERAL SOLICITOR OF THE NEW YORK, CHICAGO AND ST. LOUIS RAILROAD CO., IN LETTER OF FEBRUARY 13, 1940, THAT THE OFFICIAL TERRITORY LINES AND CERTAIN WESTERN TRUNK LINES PARTIES TO THE PETITION OF DECEMBER 4, 1931, HAD AGREED UPON PERMANENT DIVISIONS OF INTERTERRITORIAL RATES PRESCRIBED IN DOCKET 17000, PART 2, AND THAT CERTAIN OTHER WESTERN TRUNK LINES HAD NOT SO AGREED BUT HAD REQUESTED THE COMMISSION IN COMPLAINT NO. 28277, MAY 22, 1939, TO FIX DIVISIONS OF THE RATES IN QUESTION; THAT IT IS THE PURPOSE OF THE OFFICIAL TERRITORY LINES TO ASK "THAT THE COMMISSION INSTITUTE AT THIS TIME THAT PART OF THE INVESTIGATION PRAYED FOR IN SAID PETITION OF DECEMBER 4, 1931, AS TO ALL OF THE WESTERN LINES COMPLAINANTS IN DOCKET 28277" AND CERTAIN ADDITIONAL CARRIERS NAMED IN HIS LETTER WITH WHOM NO AGREEMENT AS TO PERMANENT DIVISIONS HAD BEEN REACHED "AND PROCEED TO FIX JUST, REASONABLE, AND EQUITABLE VISIONS.' IT IS INDICATED ALSO IN SAID LETTER THAT THE OFFICIAL TERRITORY LINES QUESTION THE RIGHT OF THE COMPLAINT IN DOCKET 28277 TO BRING INTO ISSUE THOSE DIVISIONS WHICH ARE SAID TO BE THE SUBJECT OF AGREEMENT BETWEEN THE OTHER CARRIERS CONCERNED, IT APPARENTLY BEING THE VIEW OF THE OFFICIAL TERRITORY LINES THAT SAID COMPLAINT, AS DRAWN, MAY COVER SAID DIVISIONS.

THUS THE RECORD AFFORDS NO SUFFICIENT BASIS FOR MODIFICATION OF THE SETTLEMENT HERE CONCERNED WHICH IS ACCORDINGLY SUSTAINED.