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TO ILLINOIS CENTRAL RAILROAD: REFERENCE IS MADE TO YOUR LETTER FILE G-WQ-27365-WAG. WERE STORED IN TRANSIT AT LOUISVILLE. THEN WERE RESHIPPED TO ORDILL. IN OUR AUDIT THE THROUGH RATE APPLICABLE VIA THAT ROUTE WAS REDUCED BY LAND-GRANT DEDUCTIONS AVAILABLE VIA THE ROUTE THROUGH BIRMINGHAM. THERE ARE APPARENTLY NO AUTHORIZED TRANSIT POINTS VIA THIS ROUTE. IN WHICH THE STATEMENT WAS MADE THAT VIA THE ROUTE USED FOR EQUALIZATION PURPOSES "THE USE OF SEVERAL POINTS FOR TRANSIT PURPOSES IS AUTHORIZED BY CHICAGO. REVEALS THAT THE BASIS FOR SUSTAINING THE SETTLEMENT OF CHARGES FOR THE TRANSIT SHIPMENTS THERE INVOLVED DID NOT REST UPON THE FACT THAT IN THOSE PARTICULAR INSTANCES THERE WERE AUTHORIZED TRANSIT STATIONS ON THE LAND-GRANT ROUTE.

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B-118118, APR. 12, 1956

TO ILLINOIS CENTRAL RAILROAD:

REFERENCE IS MADE TO YOUR LETTER FILE G-WQ-27365-WAG, REQUESTING RECONSIDERATION OF OUR DECISION B-118118 OF JULY 27, 1954, WHICH SUSTAINED THE SETTLEMENT DISALLOWING YOUR CLAIM, PER SUPPLEMENTAL BILL NO. WQ-27365- B, FOR ADDITIONAL CHARGES ALLEGED TO BE DUE IN CONNECTION WITH THE TRANSPORTATION OF SEVERAL CARLOAD SHIPMENTS OF EMPTY PROJECTILES WHICH ORIGINATED AT BOYLES, ALABAMA, WERE STORED IN TRANSIT AT LOUISVILLE, KENTUCKY, AND THEN WERE RESHIPPED TO ORDILL, ILLINOIS, DURING THE YEAR 1943.

AS STATED ABOVE, THE SHIPMENTS MOVED VIA A ROUTE THROUGH LOUISVILLE, KENTUCKY. IN OUR AUDIT THE THROUGH RATE APPLICABLE VIA THAT ROUTE WAS REDUCED BY LAND-GRANT DEDUCTIONS AVAILABLE VIA THE ROUTE THROUGH BIRMINGHAM, ALABAMA, DECATUR, ALABAMA, CORINTH, MISSISSIPPI, AND BEYOND. THERE ARE APPARENTLY NO AUTHORIZED TRANSIT POINTS VIA THIS ROUTE, AND YOU URGE THAT FOR THIS REASON, THE ROUTE CANNOT BE UTILIZED FOR PURPOSES OF DETERMINING THE LOWEST AVAILABLE NET LAND-GRANT RATE FROM BOYLES, ALABAMA, TO ORDILL, ILLINOIS. YOU CITE IN THIS CONNECTION OUR DECISION TO THE NASHVILLE, CHATTANOOGA AND ST. LOUIS RAILWAY (B-50554, WHICH YOU REFER TO AS B-50551) DATED DECEMBER 20, 1945, IN WHICH THE STATEMENT WAS MADE THAT VIA THE ROUTE USED FOR EQUALIZATION PURPOSES "THE USE OF SEVERAL POINTS FOR TRANSIT PURPOSES IS AUTHORIZED BY CHICAGO, BURLINGTON AND QUINCY RAILROAD COMPANY'S FREIGHT TARIFF, G. F. O. 19903-B, I.C.C. NO. 19578.'

AN EXAMINATION OF THAT DECISION, HOWEVER, REVEALS THAT THE BASIS FOR SUSTAINING THE SETTLEMENT OF CHARGES FOR THE TRANSIT SHIPMENTS THERE INVOLVED DID NOT REST UPON THE FACT THAT IN THOSE PARTICULAR INSTANCES THERE WERE AUTHORIZED TRANSIT STATIONS ON THE LAND-GRANT ROUTE. THE DECISION IN THAT CASE IS PRIMARILY BASED UPON THE BROADER PRINCIPLE THAT THE CARRIERS NAMED IN THE BILL OF LADING ON THE TRANSITED SHIPMENTS, FOR WHICH A THROUGH RATE FROM ORIGINAL POINT OF ORIGIN TO FINAL DESTINATION WAS APPLICABLE, AGREED TO EQUALIZE THE LOWEST AVAILABLE NET LAND-GRANT RATE APPLICABLE FROM SUCH ORIGINAL POINT OF ORIGIN TO FINAL DESTINATION. THIS IS MADE CLEAR ON PAGE 3 OF THE DECISION OF DECEMBER 20, 1945, WHERE IT WAS STATED:

"THE ACCEPTANCE OF A TRANSIT PRIVILEGE, AUTHORIZED BY A CARRIER UNDER APPROPRIATE TARIFF PUBLICATION, DOES NOT RENDER INAPPLICABLE THE PROVISIONS OF THE EQUALIZATION AGREEMENT, INASMUCH AS THE TRANSIT SERVICE IS PREDICATED ON THE THEORY THAT THE TRANSPORTATION CONTRACT HAS NOT BEEN COMPLETED AND THAT THE ENTIRE SHIPMENT FROM POINT OF ORIGIN TO DESTINATION IS THE SAME IN PRINCIPLE AS IF THE SHIPMENT HAS MOVED THROUGH WITHOUT TRANSIT. CHICAGO BOARD OF TRADE V. ANN ARBOR RAILROAD COMPANY, 39 I.C.C. 643, 651; LARABEE FLOUR MILL COMPANY V. CHICAGO, BURLINGTON AND QUINCY RAILROAD COMPANY, 223 I.C.C. 55, 64. THUS THERE WAS IN LEGAL CONTEMPLATION A THROUGH SERVICE VIA THE GREAT NORTHERN RAILWAY, THE MINNEAPOLIS, ST. PAUL AND SAULT STE. MARIE RAILWAY, THE MINNEAPOLIS, ST. PAUL AND SAULT STE. MARIE RAILWAY, THE CHICAGO, BURLINGTON AND QUINCY RAILROAD, AND THE NASHVILLE, CHATTANOOGA AND ST. LOUIS RAILWAY FROM THE ORIGIN POINTS IN NORTH DAKOTA AND MINNESOTA TO JACKSON, TENNESSEE, AND ALL OF SAID CARRIERS HAD AGREED TO ACCEPT FOR THE TRANSPORTATION OF PROPERTY OF THE KIND HERE IN QUESTION THE LOWEST NET RATE LAWFULLY AVAILABLE THROUGH DEDUCTIONS FOR LAND GRANT FROM LAWFUL RATES APPLYING FROM ORIGIN TO DESTINATION AT THE TIME OF MOVEMENT. * * *"

THE ABOVE STATEMENT IS CONSISTENT WITH OUR VIEWS AS SET FORTH IN THE DECISION DATED JULY 27, 1954, B-118118, SUSTAINING THE DISALLOWANCE OF YOUR CLAIM, AND ACCORDINGLY, THE CONCLUSION REACHED IN THAT DECISION IS AFFIRMED.

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