B-127844, AUG. 6, 1956

B-127844, AUG. 6, 1956

TO ILLINOIS CENTRAL RAILROAD:

REFERENCE IS MADE TO YOUR REQUEST, PER FILE G-WQ-951-BG, FOR REVIEW OF SETTLEMENT CERTIFICATE NO. T-592460, DATED NOVEMBER 27, 1953, WHICH DISALLOWED $281.41 OF YOUR CLAIM, PER SUPPLEMENTAL BILL NO. WQ-951-A, FOR ADDITIONAL FREIGHT CHARGES OF $867.91 ALLEGED TO BE DUE FOR THE TRANSPORTATION OF SEVERAL SHIPMENTS OF ARMY TRACTOR TANKS FROM TOLEDO, OHIO, TO FORT KNOX, KENTUCKY, ROUTED "NYC-IC," IN 1942.

YOU CLAIMED ON YOUR SUPPLEMENTAL BILL NO. WQ-951-A FREIGHT CHARGES BASED UPON THE JOINT RATE NAMED IN CENTRAL FREIGHT ASSOCIATION TARIFF 450-F, I.C.C. 3636, AND YOU WERE ALLOWED IN THE ABOVE SETTLEMENT CERTIFICATE FREIGHT CHARGES BASED ON THAT RATE, LESS LAND-GRANT DEDUCTIONS COMPUTED VIA A ROUTE FROM TOLEDO, OHIO, THROUGH CHICAGO, ILLINOIS, AND CAIRO, ILLINOIS, TO DESTINATION. BY SUPPLEMENTAL BILL NO. WQ-951-B, YOU NOW CLAIM THE ADDITIONAL AMOUNT OF $260.45, BEING THE DIFFERENCE BETWEEN THE CHARGES COMPUTED AT THE NET LAND-GRANT RATE AND THE GROSS COMMERCIAL RATE, YOU CONTENTION BEING THAT THE ROUTE THROUGH CHICAGO AND CAIRO IS NOT USED COMMERCIALLY BECAUSE OF ITS EXTREME CIRCUITY AND THAT IT IS NOT, THEREFORE, A ROUTE PROPERLY AVAILABLE FOR THE COMPUTATION OF THE LOWEST NET LAND-GRANT RATE UNDER THE CARRIER'S EQUALIZATION AGREEMENT.

BY THE LAND-GRANT EQUALIZATION AGREEMENT REFERRED TO, THE CARRIERS AGREED TO ACCEPT GOVERNMENT PROPERTY FOR TRANSPORTATION AT THE LOWEST NET RATES LAWFULLY AVAILABLE, AS DERIVED THROUGH DEDUCTIONS ACCOUNT OF LAND-GRANT DISTANCE FROM LAWFUL RATES FILED WITH THE INTERSTATE COMMERCE COMMISSION APPLYING FROM THE POINT OF ORIGIN TO THE DESTINATION AT THE TIME OF MOVEMENT.

THE TARIFF NAMING THE JOINT THROUGH RATE APPLICABLE TO THESE SHIPMENTS PROVIDED IN ITEM 2400, UNDER ROUTING INSTRUCTIONS, THAT THE RATES NAMED APPLIED VIA ALL ROUTES MADE BY THE USE OF THE LINES OF ANY OF THE CARRIERS PARTIES TO THE TARIFF, WITH THE EXCEPTION OF ROUTING TO AND FROM CAIRO, ILLINOIS. THE MAXIMUM CIRCUITY ROUTING RESTRICTIONS PROVIDED IN THE TARIFF ARE SPECIFICALLY SHOWN TO BE NOT APPLICABLE ON SHIPMENTS TO OR FROM POINTS IN KENTUCKY. FOR ROUTING TO OR FROM CAIRO, ILLINOIS, ITEM 2405 OF TARIFF NO. 450-F REFERRED TO CENTRAL FREIGHT ASSOCIATION TARIFF 560, I.C.C. NO. 3393, WHICH SPECIFIED A ROUTE VIA THE NEW YORK CENTRAL RAILROAD TO CHICAGO, ILLINOIS, THENCE THE ILLINOIS CENTRAL RAILROAD TO CAIRO, ILLINOIS, AND BEYOND, SHOWN AS ROUTE NO. 793. THEREFORE, ROUTING VIA THE LAND-GRANT ROUTE OVER CHICAGO AND CAIRO WAS SPECIFICALLY AUTHORIZED FOR GENERAL COMMERCIAL USE OF SHIPMENTS FROM TOLEDO, OHIO, TO FORT KNOX, KENTUCKY, AT THE JOINT THROUGH RATE, WITHOUT REGARD TO THE CIRCUITY OR REASONABLENESS OF THE ROUTE. SEE SAMUEL P. MANDELL CO. V. PENNSYLVANIA RAILROAD, 289 I.C.C. 244; TIDEWATER ASSOCIATED OIL CO. V. ALTON AND S.R., 289 I.C.C. 42; PURE OIL CO. V. ALTON AND S.R., 284 I.C.C. 461; AND WERTHEIMER CATTLE CO. V. ABILENE AND S.R., 268 I.C.C. 253.

IN SOUTHERN RY. CO. V. UNITED STATES, 322 U.S. 72, THE UNITED STATES SUPREME COURT HELD THAT UNDER THE TERMS OF THEIR EQUALIZATION AGREEMENT THE CARRIERS ARE BOUND TO EQUALIZE THE LOWEST NET LAND-GRANT RATE DETERMINED VIA ANY AVAILABLE ROUTE WITHOUT REGARD TO THE INCONVENIENCE OR IMPRACTICABILITY OF SUCH ROUTE.

SINCE THE LAND-GRANT ROUTE EMPLOYED IN DETERMINING THE CHARGES PAID IN THE SETTLEMENT IS AVAILABLE FOR COMMERCIAL SHIPMENTS BETWEEN TOLEDO, OHIO, AND FORT KNOX, KENTUCKY, THAT ROUTE IS ALSO AVAILABLE UNDER THE EQUALIZATION AGREEMENT FOR THE COMPUTATION OF THE LOWEST NET RATE ON GOVERNMENT SHIPMENTS BETWEEN THE SAME POINTS, WHETHER OR NOT THE ROUTE IS IN FACT USED COMMERCIALLY, OR IS INCONVENIENT OR IMPRACTICAL.

ACCORDINGLY, THE SETTLEMENT IS SUSTAINED, AND THE DISALLOWANCE OF YOUR SUBSEQUENT CLAIM FOR $260.45 WAS PROPER.