B-133959, MAY 22, 1958

B-133959, MAY 22, 1958

TO CHICAGO, BURLINGTON AND QUINCY RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR FILE GOV-T BILL 276552, REQUESTING REVIEW OF OUR SETTLEMENT CERTIFICATE DATED SEPTEMBER 4, 1957, CLAIM TK 224860, WHICH DISALLOWED YOUR REQUEST FOR ADDITIONAL FREIGHT CHARGES OF $380.33, PER YOUR SUPPLEMENTAL BILL 276552-B. THE SHIPMENT INVOLVED CONSISTED OF AMMUNITION FOR CANNON, TRANSPORTED FROM BELLE CHASSE, LOUISIANA, TO PROVO, SOUTH DAKOTA, UNDER BILL OF LADING WV 6990751, IN AUGUST 1945. THE ROUTING SHOWN IN THE BILL OF LADING REQUESTED SWITCHING BY THE NEW ORLEANS AND LOWER COAST RAILROAD COMPANY AND FURTHER CARRIAGE BY THE MISSOURI PACIFIC RAILROAD AND THE CHICAGO, BURLINGTON AND QUINCY RAILROAD COMPANY.

THE FREIGHT CHARGES OF $1,563.51 ALLOWED ON YOUR BILL NO. 276552-A FOR THESE SERVICES WERE COMPUTED AT A CLASS 75 THROUGH RATE PUBLISHED IN WESTERN TRUNK LINES FREIGHT TARIFF NO. 385, AGENT L. E. KIPP'S I.C.C. NO. A-3020, REDUCED BY APPROPRIATE LAND-GRANT DEDUCTIONS TO A NET OF $2.1328 PER 100 POUNDS. BY APPROPRIATE TARIFF PROVISIONS, THE SWITCHING CHARGE OF THE NEW ORLEANS AND LOWER COAST RAILROAD COMPANY FOR THE MOVEMENT FROM BELLE CHASSE, TO ITS CONNECTION WITH THE LINE HAUL CARRIER IN NEW ORLEANS, LOUISIANA, WAS ABSORBED BY THE LINE-HAUL CARRIER. IN THE AUDIT HERE, IT WAS DETERMINED THAT THE APPLICABLE CHARGES WERE THOSE COMPUTED AT AN AGGREGATE OF THE INTERMEDIATE RATES BETWEEN BELLE CHASSE, LOUISIANA, AND PROVO, SOUTH DAKOTA, CONSISTING OF A SWITCHING CHARGE OF $46.93 PER CAR, PUBLISHED IN NEW ORLEANS AND LOWER COAST RAILROAD COMPANY FREIGHT TARIFF NO. 3-4, I.C.C. NO. 50, APPLICABLE FROM BELLE CHASSE TO NEW ORLEANS, PLUS A RATE OF 146 1/2 CENTS PER 100 POUNDS, PUBLISHED IN WESTERN TRUNK LINES FREIGHT TARIFF NO. 124-L, AGENT L. E. KIPP'S I.C.C. NO. A-3570, APPLICABLE FROM NEW ORLEANS TO ALLIANCE, NEBRASKA (INTERMEDIATE TO OGDEN, UTAH), PLUS A CLASS 75 RATE OF 73 CENTS PER 100 POUNDS, PUBLISHED IN WESTERN TRUNK LINES FREIGHT TARIFF NO. 231-A, AGENT L. E. KIPP'S I.C.C. NO. A-2593, APPLICABLE FROM ALLIANCE TO PROVO. BY VIRTUE OF THE RULE PROVIDED IN ITEM 65 OF TARIFF NO. 385, THIS AGGREGATE OF INTERMEDIATE RATES, BEING LOWER THAN THE THROUGH RATE PUBLISHED IN TARIFF NO. 385, BECAME THE APPLICABLE THROUGH RATE.

IN YOUR REQUEST FOR REVIEW, YOU OBJECT TO THE USE OF THE RATE OF 146 1/2 CENTS PER 100 POUNDS AS A FACTOR IN THE AGGREGATE OF INTERMEDIATE RATES ON THE BASIS THAT THIS RATE DOES NOT APPLY FROM STATIONS IN LOUISIANA WEST OF THE MISSISSIPPI RIVER AND THUS WILL NOT APPLY FROM BELLE CHASSE. CONSTRUCTING THE AFORESAID AGGREGATE OF INTERMEDIATE RATES, WE HAVE NOT APPLIED THE RATE OF 146 1/2 CENTS PER 100 POUNDS FROM BELLE CHASSE. HAVE APPLIED THAT RATE TO THE PART OF THE HAUL FROM NEW ORLEANS, LOUISIANA, TO ALLIANCE, NEBRASKA, AND HAVE ADDED THERETO THE SWITCHING CHARGE OF $46.93 FOR THE MOVEMENT BY THE NEW ORLEANS AND LOWER COAST RAILROAD COMPANY TO ITS CROSS-RIVER CONNECTION. IT IS ONLY BECAUSE OF THE RESTRICTION WHICH YOU MENTION THAT THE SWITCHING CHARGE IS APPLICABLE; IN THE ABSENCE OF THE WEST BANK RESTRICTION IN TARIFF NO. 124-L, THE NEW ORLEANS AND LOWER COAST RAILROAD COMPANY'S SWITCHING CHARGE WOULD BE ABSORBED AND THE 146 1/2 CENT RATE WOULD BE APPLICABLE FROM BELLE CHASSE, AS THAT STATION IS WITHIN THE NEW ORLEANS SWITCHING DISTRICT.

WE NOTE, HOWEVER, THAT IN APPORTIONING THE REVENUE IN OUR LAND-GRANT FORMULA VIA THE CARRIERS IN THE EQUALIZED LAND-GRANT ROUTE, ONLY $29 OF THE $46.93 SWITCHING CHARGE WAS ALLOWED YOU, APPARENTLY BECAUSE WHERE THE THROUGH JOINT RATE IS APPLICABLE FROM BELLE CHASSE, LOUISIANA, THE LINE- HAUL CARRIER ABSORBS $17.93 OF THE CHARGE. BUT, SINCE THE RATE OF 146 1/2 CENTS PER 100 POUNDS IS NOT APPLICABLE FROM BELLE CHASSE, LOUISIANA, NONE OF THE CHARGE OF $46.93 IS TO BE ABSORBED. A REVISED SETTLEMENT, ALLOWING YOUR COMPANY THE AMOUNT OF $17.93, WILL BE ISSUED AND SHOULD REACH YOU IN DUE COURSE. THE SETTLEMENT IS ACCORDINGLY MODIFIED TO THAT EXTENT.