B-130339, AUG. 6, 1957

B-130339, AUG. 6, 1957

TO ILLINOIS CENTRAL RAILROAD:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 10, 1957, FILE G-AFR 21585-B- WAG, REQUESTING REVIEW OF OUR ASSIGNMENT CERTIFICATE DATED DECEMBER 19, 1955, WHICH DISALLOWED YOUR CLAIM FOR $51.53 ADDITIONAL FREIGHT CHARGES ALLEGED TO BE DUE FOR THE MOVEMENT OF A SHIPMENT DESCRIBED AS "SOAP OT LIQUID" WEIGHING 35,730 POUNDS, AND 315 POUNDS OF CEMENT AND PAINT FROM MEMPHIS, TENNESSEE, TO NEW ORLEANS, LOUISIANA, UNDER GOVERNMENT BILL OF LADING AF-T-24316, DURING MARCH 1952.

THE RECORD SHOWS THAT A SHIPMENT OF "SOAP NOIBN G/T LIQUID" WEIGHING 66,465 POUNDS, ORIGINATED AT COLUMBUS, OHIO, ON DECEMBER 20, 1951, AND MOVED TO MEMPHIS, TENNESSEE, ON GOVERNMENT BILL OF LADING WK 8212732. GOVERNMENT BILL OF LADING AF-T-24316, COVERING OTHER THAN LIQUID SOAP FROM MEMPHIS TO NEW ORLEANS SHOWS THAT INBOUND TONNAGE OF 35,730 POUNDS FROM BILL OF LADING NO. WX-821273 (WX-8212732) WAS APPLIED AGAINST THE OUTBOUND MOVEMENT UNDER THE PROVISIONS OF ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION NO. 16-F. YOU ORIGINALLY CLAIMED AND WERE PAID THE SUM OF $133.15 ON YOUR BILL NO. AFR21585, COMPUTED ON THE BASIS OF THE THROUGH RATE FROM COLUMBUS TO NEW ORLEANS, LESS FREIGHT CHARGES PAID ON 35,730 POUNDS INTO THE TRANSIT POINT, PLUS TRANSIT CHARGE AND THE LOCAL RATE ON THE NON TRANSIT TONNAGE, PLUS 6 PERCENT OF THE CHARGES.

THEREAFTER, YOU SUBMITTED A SUPPLEMENTAL BILL FOR $154.03 ADDITIONAL CHARGES ON BILL OF LADING NO. AF-T-24316, COMPUTED ON THE BASIS OF THE LOCAL RATE FROM THE TRANSIT POINT. THIS CLAIM WAS SUPPORTED BY WESTERN WEIGHING AND INSPECTION BUREAU DISTRICT NO. 436 CORRECTION SHEET, FORM GS- 47, WHICH INDICATES THAT THE INBOUND SHIPMENT CONSISTED OF ONE POUND CAKE SOAP WHILE THE INVOLVED COMMODITY ON THE OUTBOUND SHIPMENT CONSISTED OF FIVE POUND CARTONS OF CHIPPED LAUNDRY SOAP. BY OUR CERTIFICATE OF SETTLEMENT NO. T-632568 DATED AUGUST 8, 1955, YOU WERE ALLOWED THE AMOUNT OF $102.50 ON THE SUBJECT SHIPMENT, COMPUTED ON THE BASIS OF THE THROUGH RATE ON 26,200 POUNDS, PLUS TRANSIT CHARGE AND THE LOCAL RATE ON THE BALANCE OF THE WEIGHT, PLUS 6 PERCENT OF THE CHARGES. YOU THEN SUBMITTED ANOTHER SUPPLEMENTAL BILL FOR $51.53 ADDITIONAL FREIGHT CHARGES ON THIS SHIPMENT, AND YOUR CLAIM WAS DISALLOWED BY OUR SETTLEMENT OF DECEMBER 19, 1955.

THE SUBSTANCE OF YOUR REQUEST FOR REVIEW IS THAT THE CHARGES FROM MEMPHIS, TENNESSEE TO NEW ORLEANS, LOUISIANA, SHOULD BE COMPUTED ON THE BASIS OF THE LOCAL RATE FROM MEMPHIS, IT BEING YOUR CONTENTION THAT THE TRANSIT PRIVILEGE AT MEMPHIS IS NOT APPLICABLE ON THIS SHIPMENT. SUPPORT OF YOUR POSITION YOU SUBMIT A COPY OF A LETTER DATED OCTOBER 22, 1956, FROM THE WESTERN WEIGHING AND INSPECTION BUREAU, REGARDING A SIMILAR SHIPMENT OF SOAP IN CAKE FORM AND SOAP POWDER. THE SAID LETTER IS TO THE EFFECT THAT THE TRANSIT APPLICATION SHOULD BE ELIMINATED BECAUSE "AAR SECTION 22 QUOTATION 16F AMENDMENT 26 WHICH WAS IN EFFECT AT THE TIME OF MOVEMENT PROVIDED IN ITEM NO. 14, THAT OUTBOUND SHIPMENT FROM TRANSIT POINT MUST CONSIST OF THE SAME COMMODITY AS INBOUND SHIPMENT.'

THE ONLY SHIPMENT REQUIREMENT OF ITEM 14 (AS AMENDED) OF ASSOCIATION OF AMERICAN RAILROADS SECTION 2 QUOTATION NO. 16-F, AS TO INBOUND AND OUTBOUND SHIPMENTS, IS THAT THE OUTBOUND SHIPMENT MUST CONSIST OF THE "SAME COMMODITY" AS THE INBOUND SHIPMENT FOR WHICH BILLING IS SURRENDERED. IT SHOULD BE NOTED THAT THE RESTRICTION DOES NOT REQUIRE THAT THE INBOUND BILLING BE THE SAME COMMODITY IN PRECISELY THE SAME PHYSICAL FORM OR IN IDENTICAL PACKAGES. THE INSTANT SHIPMENT CONSISTED OF CAKE SOAP INTO THE TRANSIT POINT AND CHIPPED LAUNDRY SOAP OUT. BOTH ITEMS WERE SOAP OTHER THAN LIQUID AS DESCRIBED ON THE BILLS OF LADING INVOLVED. NO REASON APPEARS, THEREFORE, WHY THE OUTBOUND SHIPMENT FROM MEMPHIS TO NEW ORLEANS SHOULD NOT BE VIEWED AS THE "SAME COMMODITY," WITHIN THE MEANING OF THE APPLICABLE QUOTATION, AS WAS HANDLED ON THE INBOUND MOVEMENT FROM COLUMBUS TO MEMPHIS. ACCORDINGLY, THE SETTLEMENT IS SUSTAINED.