B-139544, SEP. 3, 1959

B-139544, SEP. 3, 1959

TO THE CENTRAL RAILROAD COMPANY OF NEW JERSEY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF MAY 1, 1959, FILE 266969 S, IN WHICH YOU REQUEST A REVIEW OF OUR CERTIFICATE OF SETTLEMENT IN CLAIM TK -663363, WHICH DISALLOWED $1,616.40 OF THE $1,737.60 CLAIMED AS ADDITIONAL FREIGHT CHARGES ON YOUR SUPPLEMENTAL BILL 48004-A-58.

THE SHIPMENTS IN QUESTION MOVED FROM NORFOLK, VIRGINIA, THE PORT OF IMPORTATION, TO CULBERTSON, PENNSYLVANIA, THE TRANSIT POINT, AND WERE LATER RESHIPPED FROM CULBERTSON TO NEW YORK LIGHTERAGE, NEW YORK, FOR EXPORT. THE ORIGINAL SHIPMENTS FROM NORFOLK MOVED VIA THE CHESAPEAKE AND OHIO RAILWAY TO POTOMAC YARDS, BALTIMORE AND OHIO RAILROAD TO WESTPORT, THENCE WESTERN MARYLAND RAILWAY TO CULBERTSON. FROM CULBERSTON THEY MOVED VIA THE WESTERN MARYLAND RAILWAY TO SHIPPENSBURG, PENNSYLVANIA, READING COMPANY TO ALLENTOWN, PENNSYLVANIA, AND THE CENTRAL RAILROAD COMPANY OF NEW JERSEY TO DESTINATION. YOU CONTEND THAT SINCE THERE IS NO PUBLISHED THROUGH RATE VIA THE ROUTE OF MOVEMENT, THE CHARGES SHOULD HAVE BEEN COMPUTED, AS IN YOUR SUPPLEMENTAL BILL, ON THE BASIS OF A COMBINATION OF RATES OVER THE TRANSIT POINT. IN OUR SETTLEMENT OF YOUR SUPPLEMENTAL BILL WE COMPUTED THE TRANSPORTATION CHARGES ON THE BASIS OF A JOINT THROUGH RATE NAMED IN TRUNK LINE TARIFF NO. 72-B, I.C.C. NO. A819, APPLICABLE FROM NORFOLK, VIRGINIA, VIA THE NORFOLK AND WESTERN RAILWAY TO HAGERSTOWN, MARYLAND, THE WESTERN MARYLAND RAILWAY TO SHIPPENSBURG, PENNSYLVANIA, READING COMPANY TO ALLENTOWN, CENTRAL RAILROAD OF PENNSYLVANIA TO STATE LINE JUNCTION, NEW JERSEY, AND CENTRAL RAILROAD COMPANY OF NEW JERSEY TO DESTINATION. THIS ROUTE WAS AUTHORIZED FOR USE WITH THE RATES NAMED IN TRUNK LINE TARIFF NO. 72-B, UNDER ITEMS 810 AND 1135, IN CONJUNCTION WITH THE ROUTES NAMED IN NORFOLK AND WESTERN RAILWAY COMPANY, NORTHBOUND ROUTING GUIDE NO. 3, TARIFF G.F. NO. 604-B, I.C.C. NO. 926).

ITEM 8 (E) OF TRAFFIC EXECUTIVE ASSOCIATION--- EASTERN RAILROADS SECTION 22 QUOTATION NO. A-757-B, PROVIDES:

"/E) EXCEPT AS OTHERWISE PROVIDED HEREIN * * * A TRANSIT POINT WHICH IS INTERMEDIATE BETWEEN INITIAL POINT OR PORT OF ORIGIN AND PORT OF TRANSSHIPMENT OR RAILHEAD VIA ANY AUTHORIZED ROUTE VIA THE TRANSIT POINT, IN TARIFFS, OR AS PROVIDED IN ANY APPLICABLE QUOTATION, APPLYING ON THE SAME COMMODITY OR COMMODITIES ACCORDED THE TRANSIT PRIVILEGE HEREUNDER, WILL BE CONSIDERED INTERMEDIATE BETWEEN SUCH POINT OR PORT OF ORIGIN AND SUCH PORT OF TRANSSHIPMENT OR RAILHEAD VIA ANY OTHER AUTHORIZED ROUTE (OR ROUTES) SERVING SUCH TRANSIT POINT.'

ALTHOUGH THE INTENT OF THIS ITEM IS NOT CLEAR, IT SEEMS THAT THE MANIFEST PURPOSE WAS TO RELIEVE THE GOVERNMENT OF THE REQUIREMENT THAT THE THROUGH RATE BE CONSTRUCTED OVER THE ROUTE OF MOVEMENT. IN OTHER WORDS, WHILE THERE IS NO THROUGH RATE VIA THE ACTUAL ROUTE OF MOVEMENT, THE EFFECT OF ITEM 8 (E) IS TO PERMIT THE USE OF A THROUGH RATE CONSTRUCTED OVER ANY AUTHORIZED ROUTE SERVING THE TRANSIT POINT WHERE THE TRANSIT POINT IS INTERMEDIATE BY SUCH AUTHORIZED ROUTE. ANY OTHER INTERPRETATION APPARENTLY WOULD FAIL TO GIVE ANY EFFECT TO THIS PROVISION. SINCE CULBERTSON, PENNSYLVANIA, THE TRANSIT POINT, IS INTERMEDIATE BETWEEN NORFOLK, VIRGINIA, AND NEW YORK LITHERAGE, VIA THE ROUTING USED BY OUR OFFICE, IT IS OUR VIEW THAT PARAGRAPH 8 (E) PERMITS THE USE OF THE THROUGH RATE VIA THE BILL OF LADING ROUTE.