B-145860, MAR. 15, 1963
Highlights
TOPEKA AND SANTA FE RAILWAY COMPANY: REFERENCE IS MADE TO YOUR LETTERS OF OCTOBER 4. WE NOTE THAT YOU ALSO HAVE FILED SUPPLEMENTAL CLAIMS UNDER BILLS 619589-B AND 651029-B FOR $147.74 AND $142.50. THE WORD RATE MEANS THE CHARGE AS FINALLY COMPUTED ON THE BASIS OF DOLLARS AND CENTS PER 100 POUNDS AND THE MINIMUM WEIGHT WHICH IS A PART OF THE RATE. THE INBOUND CHARGES WERE ASSESSED ON DEFICIT WEIGHT BASED UPON THE HIGHER INBOUND MINIMUM WEIGHT. IN THE ADJUSTMENT OF THE FREIGHT CHARGES THE CARRIERS ARE ENTITLED TO THE RATE AND MINIMUM WEIGHT APPLICABLE TO THE THROUGH MOVEMENT OF THE TRANSITED COMMODITY. IT IS OUR VIEW THAT THE CHARGES PAID ON THE DEFICIT WEIGHT INBOUND ARE FOR CONSIDERATION.
B-145860, MAR. 15, 1963
TO THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY:
REFERENCE IS MADE TO YOUR LETTERS OF OCTOBER 4, OCTOBER 10, AND NOVEMBER 6, 1962, YOUR FILE REFERENCES G-632616, G-619589 AND G-651029, REQUESTING FURTHER CONSIDERATION OF THE BASES USED IN THE SETTLEMENT OF THE CHARGES ON THREE SHIPMENTS STORED IN TRANSIT UNDER EXECUTIVE COMMITTEE--- WESTERN TRAFFIC ASSOCIATION QUOTATIONS 60 AND 38, AND TRANS-CONTINENTAL FREIGHT BUREAU QUOTATION 263-B. WE NOTE THAT YOU ALSO HAVE FILED SUPPLEMENTAL CLAIMS UNDER BILLS 619589-B AND 651029-B FOR $147.74 AND $142.50, RESPECTIVELY.
IN REQUESTING FURTHER CONSIDERATION OF THE BASES USED IN THE SETTLEMENTS OF YOUR CLAIMS, YOU AGREE WITH THE THROUGH RATE AND MINIMUM WEIGHT USED, BUT DISAGREE WITH THE METHOD USED IN THE COMPUTATION OF THE CREDIT TAKEN ON ACCOUNT OF THE CHARGES PAID ON THE INBOUND MOVEMENT. YOU INVITE ATTENTION TO THE PROVISION THAT THE CARLOAD RATE APPLIES TO THE TRANSIT POINT, TO THE PROVISION THAT THE CARLOAD RATE APPLIES ON THE THROUGH MOVEMENT, AND TO THE PROVISION THAT THE GOVERNMENT SHALL PAY THE THROUGH RATE LESS THE LINE-HAUL RATE TO THE TRANSIT POINT. THUS IT SEEMS TO BE YOUR CONTENTION THAT THE WORD RATE SHOULD BE CONSTRUED AS MEANING THE MONETARY AMOUNT PER HUNDRED POUNDS AS PUBLISHED IN A TARIFF OR QUOTATION.
AS STATED IN YOUR LETTERS, HOWEVER, EACH OF THESE QUOTATIONS PROVIDES THAT THE THROUGH CARLOAD RATE SHALL APPLY ON THE TRANSITED WEIGHT FROM THE POINT OF ORIGIN TO FINAL DESTINATION. AS USED IN THE INTERSTATE COMMERCE ACT, THE WORD RATE MEANS THE CHARGE AS FINALLY COMPUTED ON THE BASIS OF DOLLARS AND CENTS PER 100 POUNDS AND THE MINIMUM WEIGHT WHICH IS A PART OF THE RATE. BENNETT COMMISSION CO. V. NORTHERN P.RY.CO., 271 N.W. 468, 471. SEE ALSO, CLARK V. SOUTHERN RY.CO., 119 N.E. 539, 542; GREAT NORTHERN RY.CO. V. ARMOUR AND CO., 26 F.SUPP. 964, 967; AND UNITED STATES V. CHICAGO AND A.RY.CO., 148 F. 646, 647. THUS THE WORDS "THROUGH RATE" IN THESE QUOTATIONS SEEM TO MEAN THROUGH CHARGES.
ON THE SHIPMENTS UNDER CONSIDERATION, THE MINIMUM WEIGHT TO THE TRANSIT POINT EXCEEDED THE MINIMUM WEIGHT PROVIDED IN CONNECTION WITH THE THROUGH RATE, AND THE INBOUND CHARGES WERE ASSESSED ON DEFICIT WEIGHT BASED UPON THE HIGHER INBOUND MINIMUM WEIGHT. HOWEVER, UNDER THE TRANSIT ARRANGEMENT, THE PRINCIPLES APPLICABLE TO THE THROUGH SHIPMENT GOVERN THE TRANSPORTATION MOVEMENT, AND IN THE ADJUSTMENT OF THE FREIGHT CHARGES THE CARRIERS ARE ENTITLED TO THE RATE AND MINIMUM WEIGHT APPLICABLE TO THE THROUGH MOVEMENT OF THE TRANSITED COMMODITY. DUCK RIVER GRAIN CO. V. NASHVILLE, C. AND ST.L.RY., 160 I.C.C. 28, 29 30.
THEREFORE, IT IS OUR VIEW THAT THE CHARGES PAID ON THE DEFICIT WEIGHT INBOUND ARE FOR CONSIDERATION, AND THAT THE METHOD USED IN THE COMPUTATION OF THE SETTLEMENTS REFLECTS THE PROPER CREDIT TO BE APPLIED ON THE THROUGH TRANSPORTATION CHARGES. ACCORDINGLY, OUR DECISION OF OCTOBER 4, 1961, B- 145860, IS AFFIRMED AND NO FURTHER ACTION WILL BE TAKEN ON YOUR SUPPLEMENTAL BILLING ON THESE SHIPMENTS. SEE IN THIS CONNECTION OUR DECISION OF DECEMBER 20, 1962, B-145946, TO YOU, INVOLVING SUBSTANTIALLY THE SAME POINT HERE INVOLVED THOUGH ARISING UNDER A DIFFERENT SECTION 22 QUOTATION.