A-24987, JANUARY 8, 1929, 8 COMP. GEN. 345

A-24987, JANUARY 8, 1929, 8 COMP. GEN. 345

TRANSPORTATION - FREIGHT RATES - SECTION 4 OF INTERSTATE COMMERCE ACT SECTION 4 OF THE INTERSTATE COMMERCE ACT OF FEBRUARY 4, 1887, 24 STAT. 379, AS AMENDED BY THE ACT OF JUNE 18, 1920, 41, STAT. 480, PROHIBITS CHARGES FOR THROUGH SERVICE IN EXCESS OF THE AGGREGATE OF INTERMEDIATE RATES, AND THE CONSOLIDATED FREIGHT CLASSIFICATION PROHIBITS A CHARGE FOR A LESS THAN CARLOAD SHIPMENT IN EXCESS OF CHARGES FOR A MINIMUM CARLOAD. IN ARRIVING AT A CHARGE FOR A THROUGH MOVEMENT OF LESS THAN CARLOAD FREIGHT THE UNITED STATES IS ENTITLED TO THE LOWEST COMBINATION OF INTERMEDIATE RATES WHEN SUCH COMBINATION IS LESS THAN THE THROUGH RATE ON MINIMUM CARLOAD SHIPMENTS. 8 COMP. GEN. 221 MODIFIED.

DECISION BY COMPTROLLER GENERAL MCCARL, JANUARY 8, 1929:

THE CENTRAL OF GEORGIA RAILWAY CO. REQUESTED, AUGUST 1, 1928, ITS FILE N- 11267-G-1, REVIEW OF SETTLEMENT NO. T-55875-W, DATED FEBRUARY 14, 1928, OF THIS OFFICE, WHEREIN WAS DISALLOWED $39.24 OF ITS CLAIM ON BILL 11267-B FOR $173.01 FOR THE TRANSPORTATION OF 7,900 POUNDS OF HOUSEHOLD GOODS FOR THE ARMY FROM PITTSBURGH, PA., TO COLUMBUS, GA., VIA PENNSYLVANIA RAILROAD TO CINCINNATI, OHIO, LOUISVILLE AND NASHVILLE RAILROAD FROM CINCINNATI TO BIRMINGHAM, ALA., AND THE CENTRAL OF GEORGIA RAILROAD TO DESTINATION AND HAS SUPPLEMENTED THIS REQUEST BY A LETTER DATED NOVEMBER 20, 1928. DECISION DATED NOVEMBER 1, 1928, IT WAS HELD THAT THE CARRIER WAS ENTITLED TO $19.23 ADDITIONAL, AND BY LETTER DATED NOVEMBER 20, 1928, CLAIMANT THERE HAS REQUESTED A RECONSIDERATION OF THE CONCLUSION REACHED IN SAID DECISION.

THE CLAIM OF THE CARRIER FOR $173.01 WAS BASED ON THE PUBLISHED LESS-THAN -CARLOAD THROUGH RATE OF $2.19 PER HUNDRED POUNDS FROM PITTSBURGH TO COLUMBUS, WHILE THE ALLOWANCE OF $133.77 IN THE SETTLEMENT OF FEBRUARY 14, 1928, WAS ON THE BASIS OF A COMBINATION OF THE LESS-THAN-CARLOAD RATE OF ?835 PER HUNDRED POUNDS ON THE ACTUAL WEIGHT FROM PITTSBURGH TO CINCINNATI, AND THE CARLOAD COMMODITY RATE OF ?565 PER HUNDRED POUNDS, MINIMUM 12,000 POUNDS, FROM CINCINNATI TO DESTINATION, WHILE IN THE DECISION OF NOVEMBER 1, 1928, 8 COMP. GEN. 221, THE CARRIER WAS ALLOWED THE PUBLISHED CARLOAD RATE OF 71 CENTS FROM PITTSBURGH TO CINCINNATI AND THE PUBLISHED CARLOAD RATE OF ?565 FROM CINCINNATI TO COLUMBUS, OR A THROUGH RATE OF $1.275 BASED ON A MINIMUM CARLOAD OF 12,000 POUNDS, OR A TOTAL CHARGE OF $153 FOR THE SHIPMENT.

HOUSEHOLD GOODS ARE RATED AS FIRST CLASS IN LESS-THAN-CARLOAD LOTS IN BOTH OFFICIAL CLASSIFICATION (PITTSBURGH-CINCINNATI) AND SOUTHERN CLASSIFICATION (CINCINNATI TO COLUMBUS), AND WHEN IN CARLOADS AT SECOND CLASS WITH A MINIMUM WEIGHT OF 12,000 POUNDS IN OFFICIAL CLASSIFICATION, AND AT THIRD CLASS WITH A MINIMUM WEIGHT OF 12,000 POUNDS IN SOUTHERN CLASSIFICATION.

ITEM 308-A, PAGE 7, SUPPLEMENT 34 OF AGENT JONES' BUFFALO-PITTSBURGH TARIFF 92-D, I.C.C. 1672, STATES THAT:

CARRIERS HAVE ENDEAVORED TO PUBLISH IN THIS TARIFF, AS AMENDED, THROUGH RATES WHICH DO NOT EXCEED THE AGGREGATE OF THE INTERMEDIATE RATES BETWEEN POINTS BETWEEN WHICH THERE IS AN ACTUAL MOVEMENT OF TRAFFIC, BUT IF THERE SHOULD BE IN THIS TARIFF * * * ANY THROUGH RATE WHICH IS IN EXCESS OF THE AGGREGATE OF INTERMEDIATES, * * * IN VIOLATION OF THE * * * FOURTH SECTION OF THE ACT, CARRIERS WILL REDUCE SUCH THROUGH RATES TO THE BASIS OF A COMBINATION OF INTERMEDIATE RATES ON ONE DAY'S NOTICE. * * *

AND CONSOLIDATED FREIGHT CLASSIFICATION PROVIDES THAT---

THE CHARGE FOR A LESS-THAN-CARLOAD SHIPMENT MUST NOT EXCEED THE CHARGE FOR A MINIMUM CARLOAD. * * *

SECTION 4 OF THE INTERSTATE COMMERCE ACT OF FEBRUARY 4, 1887, 24 STAT. 379, AS AMENDED BY THE ACT OF JUNE 18, 1910, 36 STAT. 539, AND THE TRANSPORTATION ACT OF 1920, 41 STAT. 456-480, PROVIDED---

THAT IT SHALL BE UNLAWFUL FOR ANY COMMON CARRIER SUBJECT TO THE PROVISIONS OF THIS ACT * * * TO CHARGE ANY GREATER COMPENSATION AS A THROUGH RATE THAN THE AGGREGATE OF THE INTERMEDIATE RATES. * * *

THAT IS TO SAY, SECTION 4 OF THE INTERSTATE COMMERCE ACT PROTECTS THE SHIPPER FROM BEING CHARGED BY THE CARRIER MORE FOR THE THROUGH SERVICE THAN THE AGGREGATE OF THE CHARGES DETERMINED BY THE APPLICATION OF INTERMEDIATE RATES, AND THE ABOVE-QUOTED EXTRACT FROM CONSOLIDATED FREIGHT CLASSIFICATION PROTECTS THE SHIPPER FROM THE PAYMENT OF ANY CHARGE FOR LESS-THAN-CARLOAD SHIPMENTS WHICH IS IN EXCESS OF THE CHARGE FOR A MINIMUM CARLOAD SHIPMENT; AND WHILE IN THE DECISION OF NOVEMBER 1, 1928, EFFECT WAS GIVEN TO SECTION 4 OF THE INTERSTATE COMMERCE ACT REFUSING TO PAY ANY GREATER COMPENSATION AS A THROUGH RATE OF $2.19 PER HUNDRED POUNDS IN EXCESS OF THE AGGREGATE OF THE INTERMEDIATE RATES OF $1.275 PER HUNDRED POUNDS ON CARLOAD SHIPMENTS, MINIMUM 12,000 POUNDS, NO EFFECT WAS GIVEN TO THE PROVISION IN THE CONSOLIDATED FREIGHT CLASSIFICATION THAT THE CHARGE FOR A LESS-THAN CARLOAD SHIPMENT MUST NOT EXCEED THE CHARGE FOR A MINIMUM- CARLOAD SHIPMENT, AS WILL APPEAR FROM THE FOLLOWING:

THE PUBLISHED JOINT THROUGH RATES FROM PITTSBURGH TO COLUMBUS ARE:

CARLOAD, MINIMUM WEIGHT 12,000 POUNDS, $1.64; LESS CARLOAD, $2.19.

THE AGGREGATE OF INTERMEDIATES THROUGH CINCINNATI ARE: CHART

CARLOAD, MINIMUM

WEIGHT, 12,000 POUNDS LESS CARLOAD TO CINCINNATI- - - - - - - - - $0.71 - - - - - - - - - -$0.83 1/2

COLUMBUS - - - - - - - - - - .56 1/2 - - - - - - - - - - 1.64 1/2

1.27 1/2 2.48 1/2

THE COMBINATION OF LESS CARLOAD TO CINCINNATI AND CARLOAD BEYOND TO COLUMBUS IS:

TO CINCINNATI- - - - - - - - - - - - - -$0.83 1/2

.56 1/2

1.40

THE CHARGE OF THE CARRIER FOR $173.01 AT THE LESS-CARLOAD RATE OF $2.19 PER HUNDRED POUNDS FOR THE TRANSPORTATION OF 7,900 POUNDS OF HOUSEHOLD GOODS FROM PITTSBURGH TO COLUMBUS IS IN EXCESS OF WHAT WOULD BE THE CHARGE OF $153 FOR A CARLOAD, MINIMUM 12,000 POUNDS, AT THE COMBINATION CARLOAD RATE OF $1.275 MADE OVER THE ROUTE OF MOVEMENT, RESULTING IN AN OVERCHARGE OF $20.01. HOWEVER, THE CHARGE BASED ON THE LESS-THAN-CARLOAD RATE OF $0.835 FROM PITTSBURGH TO CINCINNATI ON THIS SHIPMENT OF 7,900 POUNDS OF HOUSEHOLD GOODS IS LESS THAN THE MINIMUM CARLOAD OF 12,000 POUNDS AT THE RATE OF 71 CENTS FROM PITTSBURGH TO CINCINNATI, THE BREAKING POINT, AND THE CONSOLIDATED FREIGHT CLASSIFICATION PROVIDES THAT THE CHARGE FOR A LESS-THAN CARLOAD SHIPMENT MUST NOT EXCEED THE CHARGE FOR MINIMUM CARLOAD. THEREFORE, IN ARRIVING AT THE TOTAL CHARGE ON THIS SHIPMENT FROM PITTSBURGH TO COLUMBUS THE GOVERNMENT IS ENTITLED TO COMBINE CHARGES TO DETERMINE WHETHER THE THROUGH CHARGE IS IN EXCESS OF THE AGGREGATE OF INTERMEDIATE CHARGES, WHICH IS PROHIBITED BY SECTION 4 OF THE INTERSTATE COMMERCE ACT, AND IN ARRIVING AT THE ACTUAL CHARGE TO COMPARE THE LESS- THAN-CARLOAD CHARGE ON THE SHIPMENT WITH THE MINIMUM CARLOAD CHARGE TO ANY BREAKING POINT, WHICH HAPPENED IN THIS CASE TO BE CINCINNATI.

THE SETTLEMENT AS MADE ON THIS BASIS WAS CORRECT AND THE DECISION OF NOVEMBER 1, 1928, IS MODIFIED ACCORDINGLY.