LEGAL RATE. See also SCHEDULES (APPLICABILITY AND INTERPRETATION).
Although constructive first-class interterritorial rates computed by combining
scales prescribed for intraterritorial and interterritorial application were not
actually applicable in any instance, they afforded a convenient formula for basing
interterritorial rates on specific commodities, and that they had no legal existence
per se did not vitiate the formula. Mid-Continent Petroleum Corp. v. St. Louis-
S. F. Ry. Co., 108 (110).
LEGISLATIVE INTENT. See TRANSPORTATION ACT, 1920.
LENGTH OF HAUL. See SWITCHING (CHarges).
Carloads Moving at Less-than-Carload Rates: When cars were fully loaded
in a practical sense, although all available space was not used and shipments
weighed substantially less than the carload minimum, and shipments were treated
as carloads by shippers and carriers, that they were assessed less-than-carload
rates under alternative tariff provision, because charges so computed were lower,
did not change their character as carloads. Haberman v. Pennsylvania R. Co.,
475 (476).
Commodity Rates: See Commodity Rates (Less than Carload).
Emergency Rates: See EMERGENCIES (RATES).
Less than Carload Moving at Carload Rates: See TRANSIT (RULES).
LEVEL OF RATES. See RATE COMPARISONS (LEVEL OF RATES)
(TERRITORIES).
LIABILITY OF SHIPPER. See DEMURRAGE (CARS HELD FOR CONSIGNOR
OR CONSIGNEE).
Motion to dismiss complaint assailing rates on transited articles, on ground
that claims were barred because deliveries were made at the transit point more
than 2 years prior to filing of informal complaint, denied. The original ship-
ments were lost in the fiction of transit, and the only claims in issue covered
shipments delivered at final destination within the statutory period.
Vernon Bridge Co. v. Baltimore & O. R. Co., 365 (366).
Services Included in Line-Haul Rates: As it is the general duty of carriers
to furnish suitable cars for line-haul movements, line-haul rates contemplate that
carriers shall furnish grain doors without extra cost to the shipper. Cross-
town movements, however, are treated as extra services or side trips within a
terminal district and do not count as one of the transit stops under the line-haul
rates. They move under switching charges applicable on all commodities.
Carriers have always made separate charge for furnishing, as well as for installing,
the grain doors in connection with such movements. Neither the line-haul
rates nor switching charges contemplated that the carriers should furnish grain
doors without extra cost to the shipper in connection with cross-town movements.
Merchants' Exc. of St. Louis v. Alton R. Co., 5.
Carrier was not legally obligated under its line-haul rates to switch cars between
the loading platform and the interchange tracks, when it could not complete the
service due to plant conditions. Switching Allowance at Fisher, La., 134.
The principle underlying terminal absorptions is that if a line-haul carrier
publishes a rate including delivery it must either make delivery itself or pay
someone else to do it, and it is immaterial whether it includes in such rate a factor
representing the cost of performing the service, and does so itself, or employs
someone else, provided the charge for the terminal service is reasonable. New
Orleans Public Belt R. Switching and Absorptions, 613 (644).
Finding in 232 I. C. C. 31 that carriers were not obligated under line-haul rates
to perform switching to and from loading points within certain industrial plants
or else pay allowances to the industries for performing the service, because condi-
tion of plant tracks prevented use of locomotives normally employed in common-
carrier service, was reversed upon showing that rehabilitation of the tracks had
removed the obstacle to use of ordinary equipment. Switching Allowances at
Malvern and Walco, Ark., 697 (698).
Switching by Line Haul and by Terminal Carriers: See SWITCHING
(CHARGES).
Rates and Charges: Service charges for feeding and watering livestock from
points in mountain-Pacific, western trunk-line, and southwestern territories to
California, when stopped en route at certain stockyards, in addition to charges
for feed, were found applicable and not unreasonable. The Commission does not
have jurisdiction of the amounts charged for feed nor to determine whether such
amounts are great enough to include service charges. Cornelius Bros. v. South-
ern Pac. Co., 606 (608).
Twenty-Eight-Hour Law: See TWENTY-EIGHT-HOUR Law.
LOADING. See also COST OF SERVICE (Loading).
In General: It is unreasonable to charge more for empty than for loaded
space. Transit on Dried Beans in Western Trunk Line and Southwestern Terri-
tories, 207 (210).
Safe loading of unprepared scrap in open-top cars in the West was a practical
problem. Prices paid for country mixed scrap were based on rates subject to
75,000-pound minimum, and as carriers had not enough cars which could con-
veniently be loaded to that minimum, shippers furnished shorter cars stacked
the lading higher than the sides of cars without adequate protection against
shifting. Inspection of loads at all origins was impracticable, as many points
originated only one or two cars a year, and car inspectors were not maintained
at small stations. As tariffs did not authorize billing shippers for readjusting
or transferring shipments, the expense must be borne by the carriers, and send-
ing of improperly loaded cars back to shippers for reconditioning had not relieved
carriers of the necessity of readjusting the loads. Under the circumstances, an
incentive or penalty was essential to induce shippers to load safely and afford
adequate protection for carriers' equipment. Loading Scrap Iron at Western
Trunk Line Points, 543.
Charges: When allegation of unreasonableness in unloading charges assessed
on shipments of sweetpotatoes weighing less than the carload minimum was predi-
cated on alleged lack of tariff authority, such charges were found not unreasonable
when the cars were found to have been fully loaded within classification rule 15,
sec. 1, and unloading charges published for carload shipments were therefore
applicable. Haberman v. Pennsylvania R. Co., 475 (476).
When tariffs of western carriers did not authorize billing of shippers for recon-
ditioning unsafely loaded shipments of scrap, and inspection of cars at country
origins was impracticable; and when lack of sufficient open-top cars in which
unprepared scrap could be loaded to the minimum for rates on which prices were
based caused shippers furnished shorter cars to overload them without adequate
protection against shifting, so that loads must be readjusted at carriers' expense,
an incentive or penalty was essential to induce shippers to load safely and afford
adequate protection for carriers' equipment. Tariffs should be amended to
provide for performance of such service by specific charges for rearranging loads
and for transfer from one car to another. Loading Scrap Iron at Western Trunk
Line Points, 543 (551).
Factor in Reasonableness: During the years that switching charges of belt
line at New Orleans had been in effect, there had been no appreciable increase in
average carload weights such as would justify increased charges. While loading
had increased in the western and southern districts of the United States, traffic
to and from which areas was switched by the belt line, its average carloads were
normally heavier than in those districts, since a large proportion of its traffic was
export and import traffic, and it is common knowledge that carloading of such
traffic is usually heavier than for domestic traffic, which predominated in the
western and southern districts. New Orleans Public Belt R. Switching and
Absorptions, 613 (621-622).
Less than Carload: In classification rule providing for application of less-
than-carload charges as maximum on fully loaded cars, "fully loaded" must be
given a practical meaning. Although shipments of sweetpotatoes were not fully
loaded in the sense of using all available space, baskets were in two tiers covering
the entire floor space, and other commodities could not have been placed in the
cars without interfering with ventilation requirements. Consignors had full
dominion over the cars and were accorded carload services from origin to desti-
nation. The cars should therefore be considered fully loaded, and that shipments
were assessed less-than-carload rates because charges so computed were lower
did not change their character. Finding in 234 I. C. C. 167, reversed. Haber-
man v. Pennsylvania R. Co., 475 (476).
Regulations Governing: Proposed tariff rules governing safe loading of scrap
iron in open-top cars at western origins, found not justified, and proposed appli-
cation on improperly loaded cars of column 22.5 rates approximately 50 and 80
percent higher than alternative rates prescribed in 164 I. C. C. 587, found un-
reasonable. Tariffs should be amended to provide specific charges on suggested
basis for rearranging loads or transferring lading. Loading Scrap Iron at Western
Trunk Line Points, 543.
LOCAL FARES. See PASSENGERS (INTRASTATE FARES AND CHARGES).
See IN-BOUND RATES.
LONG AND SHORT HAUL.
In General: See COMPENSATORY RATES.
Adjacent Foreign Country, Application to: See ADJACENT FOREIGN COUN-
Circuity: See ROUTES (CIRCUITOUS).
Competition Authorizing Relief: See COMPETITION.
Damages: A departure from the long-and-short-haul provision of the fourth
section does not, in itself, form a basis for an award of reparation. Traffic Bureau,
Lynchburg Chamber of Commerce v. Baltimore & O. R. Co., 139 (148).
Equidistant Clause: Imposition of the equidistant clause was not required
when fourth-section relief was based on scale initiated and adopted by the direct
lines for the purpose of meeting motortruck competition. Automobiles to Iowa,
Minnesota, and South Dakota, 21 (23).
When circuity was the only ground for fourth-section relief, imposition of the
equidistant clause was mandatory. Lumber to Reno, Nev., 363 (364).
Imposition of the equidistant clause was not required when fourth-section
relief was granted on grounds other than circuity. Wood Pulp from Brunswick,
Ga., 565 (571).
Fourth-section relief authorized in 232 I. C. C. 445, to establish rates on chrome
ore from Baltimore, Md., and points taking same rates to Buffalo, Niagara Falls,
and Suspension Bridge, N. Y., modified by eliminating the equidistant require-
ment, to enable applicants to meet the water-compelled rates to the more-distant
points without disturbing existing port relations in the rates to intermediate
points. Chrome Ore from Baltimore, Md., 577.
Fourth-section relief granted without imposition of the equidistant clause
when necessary to enable applicants to operate on a rate parity with the direct
routes in meeting other forms of transportation and to preserve existing grouping.
Potatoes and Vegetables from Maine and Canada, 591 (593).
Establishment of rates to intermediate points on basis of same scale as applied
to more distant points was in substantial compliance with the equidistant provi-
sion of sec. 4: Cotton Waste from Augusta, Ga., to the Carolinas, 430 (432);
Methanol from New York and Pennsylvania, 252 (253–254).
In the following cases, fourth-section relief was granted without imposition of
the equidistant clause in order to preserve existing grouping: Brick from Illinois
Territory to the South, 94 (96); Brick from Virginia to Florida, 411 (414); Clay
from the South, 588 (590); Coal to Alabama Points, 385 (389); Coal to St. Louis
and East St. Louis, 83 (84-85).
Intermediate Rule: Rate from Peoria, Ill., was applicable from Godfrey, Ill.,
a point taking the Springfield, Ill., rate, when the Peoria rate applied from Spring-
field under an intermediate rule. The route from Peoria passed through the
Springfield switching district and it was immaterial to show that it passed through
any specific point within that district since shipment did not move from Spring-
field. Swift & Co. v. Akron, C. & Y. Ry. Co., 173 (176).
Under an intermediate rule providing for application of the rate from the next
more-distant point from unnamed intermediate points, the rate from Peoria, Ill.,
applied from every point on the route of the Alton railroad to Springfield, Ill.,
and of the Baltimore & Ohio beyond, from which no specific rate was published.
The rate so made was the rate of the railroad upon whose rails traffic originated,
regardless of whether the origin point was local to the originating carrier or was a
point at which the two carriers connected. Id. (177).
Rate from Peoria, Ill., applied from Springfield, Ill., over the route of move-
ment under an intermediate rule which provided that the rate from the more-
distant point should apply from any intermediate points from which no com-
modity rate on a given article to a given destination "and via a given route"
was named. Although specific rates over other lines were published from Spring-
field, the Peoria rate was just as specific and definite, and since two rates were
available from Springfield, the shipper was entitled to use the lower. Id. (178–179).
Intermediate rules must be construed with respect to facts and circumstances
peculiar to each individual case. Wilbanks & Pierce, Inc., v. Atlanta & W. P. R.
Co., 371 (372).
Shipment of dragline machinery from East Prairie, Mo., to West Point, Ga., via
New Orleans, La., was entitled to lower rate named to Albany, Ga., under inter-
mediate rule, when tariff provided that rates beyond western gateway would
apply over all routes composed of participating carriers and did not restrict
routes to Georgia group points. Had carriers considered route unnatural or
unduly circuitous, or desired to restrict routes in connection with rates to Albany,
they should have done so pursuant to Tariff Circular 20. Id. (374).
Orders: See ORDERS (LONG AND SHORT HAUL).
Presumptions: A departure from the long-and-short-haul provision of the
fourth section does not, in itself, establish unreasonableness of the higher rate
from the less-distant point or form a basis for an award of reparation, but it raises
a presumption that the higher rate is unreasonable, at least to the extent that it
exceeds that to the more-distant point: Miller Waste Mills, Inc., v. Southern Ry.
Co., 679 (681-682); Traffic Bureau, Lynchburg Chamber of Commerce v. Balti-
more & O. R. Co., 139 (148).
Reasonableness of Rate when Clause Violated: See PRESUMPTIONS under
this heading.
Relief, Generally: See also INTRASTATE COMMERCE (FOURTH-SECTION RELIEF TO MEET INTRASTATE RATES).
In the following cases fourth-section relief was granted or modified: Asphalt from El Dorado, Ark., Group, 80; Atchison, Topeka & Santa Fe ExtensionsRates, 351 (356); Automobiles from Tarrytown, N. Y., to Bellows Falls, Vt., 16; Automobiles to Boone and Des Moines, Iowa, 24; Automobiles to Iowa, Minnesota, and South Dakota, 21; Brick from Central Territory to the South, 181; Brick from Illinois Territory to the South, 94; Brick from Virginia to Florida, 411; Butter and Eggs from Missouri River to the South, 77; Canned Pinneapples to Chicago and Milwaukee, 557; Chrome Ore from Baltimore, Md., 577; Citrus Fruit from Texas to New Orleans, 572; Clay from the South, 588; Coal to Alabama Points, 385; Coal to St. Louis and East St. Louis, 83; Coke to Keokuk, Iowa, 59; Corn to Mobile, Ala., 74; Cotton Waste from Augusta, Ga., to the Carolinas, 430; Fruit and Vegetable Containers in South and Southwest, 395; Lumber to Reno, Nev., 363; Malt Liquors from Points in Indiana, 86; Methanol from New York and Pennsylvania, 252; Petroleum Products to Tennessee River Points, 115; Phosphate Rock from Gulf Ports to Quincy, Ill., 204; Potatoes and Vegetables from Maine and Canada, 591; Scrap Iron and Steel to Portsmouth, Ohio, 647; Soda Ash from Lake Charles, La., to Mobile, Ala., 201; Transit on Grain at Enid. Okla., 720 (722); Wood Pulp from Brunswick, Ga., 565.
In the following cases, fourth-section relief was denied: Cigarettes and Tobacco to Boston, Mass., 375; Sand and Gravel to Medford, Mass., 381. LONG HAUL. See THROUGH Routes (Long Haul).
LOW-GRADE COMMODITIES. See REASONABLENESS (RATES, FARES, AND CHARGES (COMMISSION-MADE RATES)).
MANAGEMENT. See also COMMON CARRIERS (INITIATION OF RATES).
While the competitive value of proposed reduced export rates on grain from central territory to north Atlantic ports, in attracting added traffic from all-water and part-water routes to fill available unused train tonnage, might be considered a matter of managerial discretion, it did not outweigh considerations of their adequacy, threat of disruption of the grain-rate structure, and provocation to a widespread rate war, especially when resulting through rates from country origins would still be generally higher than rates over part-water routes, and carriers did not expect much additional tonnage except that requiring expedited service to complete a cargo or provide ocean-liner ballast. Export Grain, C. F. A. Territory to North Atlantic Ports, 655 (672-673).
No railroad, if it is efficiently and economically managed, will deliberately choose a more expensive rather than a less expensive route for its operations between two points, and no railroad is performing its full duty to the public, expecially in times of financial stress, unless and until it has availed itself of all of the means reasonably at its disposal, including wholehearted cooperation with its competitors in enterprises such as produce terminals, to function as economically and efficiently as it can. Competitive Produce Terminals at Denver, Colo., 699 (713).
Insofar as the obligation of railroad officers to their particular railroad is concerned, especially since the Transportation Act, 1920, the paramount consideration is, and should be, the public interest. When officers persisted in feeling that their duty to their particular railroad required them to build two produce terminals when only one was needed, and to expend needlessly railroad funds, public interest in a healthy national transportation system demands that the future be made more secure against such practices. This, however, would require additional legislation. Id. (714).
|