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Transportation for Government..
Reconsignment privileges and rules.
Demurrage on interstate shipment..
Loading of new cars....
Demurrage on privately owned cars....
Transportation of trucks of cars destroyed on foreign lines.
Substituting tonnage at transit point..
Amendment to Rule 7, Tariff Circular 15-A.
Amendment to Rule 8, Tariff Circular 15-A.
Amendment to Rules 9 and 38, Tariff Circular 15-A.
Amendment to Rule 11, Tariff Circular 15-A..
Amendment to Rule 37, Tariff Circular 15-A.
Amendment to Rule 38, Tariff Circular 15-A
SUPPLEMENT NO. 1 TO TARIFF CIRCULAR 15-A.
ISSUED BY ORDER OF THE COMMISSION-EFFECTIVE AS NOTED IN INDIVIDUAL ITEMS.
[Index to Administrative Rulings, See Post, Page 806.]
1. Transportation for Government (adopted April 18, 1908).-Section 22 of the act authorizes the carriage, storage or handling of property free or at reduced rates for the United States, State, or municipal governments. As has before been decided, such transportation can be granted without the publishing and filing of a tariff therefor only in instances where the arrangement is directly between such government and the carrier; but it is considered permissible for carriers to incorporate in their lawful tariffs special rates for the United States, State, or municipal governments applicable only to traffic consigned to such United States, State, or municipal government by name, in care of a recognized officer thereof.
2. Reconsignment privileges and rules (adopted May 5, 1908).-Usually the combination of local rates is higher than the through rate. Frequently a shipper desires to forward a shipment to a certain point and have the privilege of changing the destination or consignee while shipment is in transit or after it arrives at destination to which originally consigned and to forward it under the through rate from point of origin to final destination. Many carriers grant such privilege and generally make a charge therefor.
The privilege is of value to the shipper, and in order to avoid discrimination it is necessary for carrier that grants such privilege to publish in its tariff that fact, together with the conditions under which it may be used and the charge that will be made therefor. Such rules should be stated in terms that are not open to miscon struction.
Change of destination is a reconsignment, unless otherwise provided in tariff.—Some carriers do not count a change of consignee which does not involve a change of destination as a reconsignment, while others do consider it a reconsignment and charge for it as such. The Commission holds the view that, without specific qualification, the term "reconsignment" includes changes in destination, routing, or consignee. If carrier wishes to distinguish between such changes in its privileges or charges it must so specify in its tariff rules. Reconsignment rules and charges must be reasonable, and a charge that would be reasonable for a diversion or change of destination might be unreasonable when applied to a simple change in consignee which did not involve change in destination or more expensive delivery.
3. Demurrage on interstate shipment (adopted May 12, 1908). The act requires that carriers shall publish, post, and file "all terminal charges which in anywise change, affect, or determine the value of the service rendered to the passenger, shipper, or consignee," and all such charges become a part of the "rates, fares, and charges" which the carriers are required to demand, collect, and retain. Such terminal charges include demurrage charges.
Demurrage on interstate shipments within jurisdiction of Interstate Commerce Commission. On March 16, 1908, the Commission decided that demurrage rules and charges applicable to interstate shipments are governed by the act to regulate commerce, and therefore are within its jurisdiction and not within the jurisdiction of State authorities. Any other view would open a wide door for the use of such rules and charges to effect the discrimination which the act prohibits.
Tariffs must be observed.-Demurrage rules and charges must be observed as strictly as transportation rules and charges. The Commission can not, therefore, recognize as lawful any rule governing demurrage the application of which is dependent upon the judgment or discretion of some person, or which provides for exemp
tion therefrom in certain exigencies in the creation of which the carrier has no part. Interstate tariffs containing such rules must be corrected or canceled.
4. Loading of new cars (adopted May 12, 1908).-The minimum weight upon which carload rate is based is a part of the rate, because the charges on the shipment are determined by such minimum weight. The publication, posting, and filing of the rate and of the minimum weight are therefore equally necessary, and it is also equally necessary that both be observed.
Carriers' mechanical departments have rules against loading to its full capacity a new car on its first trip. This rule is understood to generally provide that such car shall not on its first trip be loaded to more than 75 per cent of its capacity. The Commission is requested to pass upon the question of conflict between the tariff minimum and the mechanical department's rule.
All new cars are now of much greater capacity than those of a few years ago, and carload minima have also been increased. The number of commodities that are shipped in closed cars and that ordinarily are loaded to the full capacity of the car are comparatively few. Except in times of actual car shortage there would seem to be but little difficulty in selecting for such new cars loading that would bring no conflict between the tariff and the mechanical department's rule. The tariff rule is the one which the carrier is by law obligated to observe and maintain. It is not possible to authorize setting aside the tariff requirement without creating or making possible discriminations. There is no objection to incorporating in the tariff a rule that the minimum weight applicable to a new car on its first loading shall be a certain percentage of its capacity or of the minimum fixed in the tariff. We adhere to the view that the rule governing minimum weight shall be contained in a lawful tariff and that it must be applied and observed.
5. Transportation of trucks of cars destroyed on foreign lines (adopted May 12, 1908). If a car of one company is destroyed on the line of another company and the lines of those two companies directly connect with each other, the carrier upon whose lines the car is destroyed may transport free, as its own property, to junction with the line of the carrier owning the car the trucks of the destroyed car, which are understood to be salvage from a wreck, the cost of which must be borne by the carrier on whose lines it occurs. If there is not direct connection between the line of the carrier owning the car and the line upon which it is destroyed the carrier on whose line the car is destroyed may transport the trucks free to a junction with an intermediate carrier, and pay to the intermediate carrier or carriers their full tariff rates for transporting them to a junction with the line of the carrier owner of the car destroyed, and such owner may transport them on its own lines as its own property.
It does not appear to the Commission that opportunity for abuse or discrimination is opened by this practice. It does not appear to transgress the Commission's rule that carriers may not haul freight free for each other; and it is approved with the reservation that if discrimination or unlawful practice is found to grow out of it the plan will be condemned.
6. Demurrage on privately owned cars.-On April 13, 1908, the Commission decided in case No. 933, "In the Matter of Demurrage Charges on Privately Owned Tank Cars," that private cars owned by shippers and hired to carriers upon a mileage basis are subject to demurrage when said cars stand upon the tracks of the carrier either at point of origin or destination of shipment, but are not so subject when upon either the private track of the owner of the car or the private track of the consignee. The carrier must charge demurrage in all cases where such demurrage is imposed by tariff provision upon its own equipment, except when a pri vately owned car is upon a privately owned siding or track and the carrier is paying or is responsible for no rental or other charge upon such car.
On June 2, 1908, the Commission supplemented this as follows:
Private sidetrack defined.—A private sidetrack is one which is not owned by the railroad, is outside the carrier's right of way, yards, or terminals, and to which the railroad has no right of use superior to the right of the shipper. This definition is based, as we think it should be based, upon consideration of the carrier's right to the use of the track rather than the ownership of the land or rails.
Private cars defined.-A private car is a car owned and used by an individual, firm, or corporation for the transportation of the commodities which they produce or in
which they deal. It will include also cars owned and leased to shippers by private corporations.
Includes all private cars paid for on mileage basis.-The rule as to demurrage charges on private tank cars is applicable to all other private cars used by the railroads and paid for on a mileage basis.
It is not the intention of the Commission that this ruling shall be given a retroactive effect. The demurrage question has been in a state of great confusion, and the desire of the Commission is to establish a uniform, fair, and practicable system for the future. Claims for refund of demurrage charges previously collected in accordance with regular tariff rules will not be regarded with favor.
7. Substituting tonnage at transit point (adopted June 25, 1908).-A milling, storage, or cleaning-in-transit privilege is established on the theory that the commodity may be stopped en route for the enjoyment of such privilege, and the commodity or its products be forwarded under the application of the through rate from original point of shipment. It is not expected that the identity of each carload of grain, lumber, salt, etc., can or will be preserved, but in the opinion of the Commission, it is unlawful to substitute at the transit point, or forward under the transit rate, tonnage or commodity that does not move into that point on that same rate, and tariffs which contain any provisions which authorize in terms or by interpretation any such practice must be at once corrected.
Amendment to Rule 7, Tariff Circular 15-A: Rule in classifications and class rate tariffs (adopted June 9, 1908).—The following is added to Rule 7, Tariff Circular 15-A: Classifications and class rate tariffs that are issued or supplemented hereafter shall each contain a rule providing that wherever a commodity rate is estab lished it removes the application of the class rates between the same points on that commodity.
Alternative rates in sectional tariff.-If the alternative use of class or commodity rates is necessary or desired in any instance it may be provided by including in different sections of one and the same tariff the class and commodity rates, and by including in each section the specific rule "If the rates in section of this tariff make a lower charge on any shipment than the rates in section of this tariff,
the rates in section will be applied." No rates may be so included in a tariff for alternative use excepting such as the carrier or agent who issues the tariff is lawfully authorized to publish and change; that is, rates issued by another carrier or agency may not be reproduced for such alternative use.
9. Amendment to Rule 8, Tariff Circular 15-A: Cancellation notice must be by supplement (adopted June 27, 1908).-The third paragraph of Rule 8 is amended so that it will read: If a tariff is canceled with the purpose of canceling entirely the rates named therein, or when, through error or omission, a later issue failed to cancel the previous issue and a tariff is canceled for the purpose of perfecting the records, the cancellation notice must not be given a new I. C. C. number, but must be issued as a supplement to the tariff which it cancels, even though it be a tariff of less than 5 pages, and even though such tariff may at the time have two effective supplements. Cancellation notice shall specify where rates will thereafter be found. When a tariff or a commodity rate is canceled by supplement, the cancellation notice must show where rates or rate will thereafter be found or what rates or rate will thereafter apply. For example: "Rate in—, I. C. C. No. —, will apply," or "Class rates will apply," or "Combination rate will apply," or "No rates in effect."
10. Amendment to Rules 9 and 38, Tariff Circular 15-A: Withdrawal and adoption of tariffs when a road or portion thereof is transferred to another company, or its name is changed (adopted July 1, 1908).-Rules 9 and 38 of Tariff Circular 15-A are amended by adding thereto the following: When a road or a part of a road is transferred from the operating control of one company to that of another, or when its name is changed, the existing tariffs issued by the company that surrenders control must be withdrawn by it and adopted by the company assuming control, as provided in the preceding paragraph.
As to tariffs issued by other carriers or joint agents under concurrences or powers of attorney granted by the old carrier or company, the new carrier or company shall, if it intends to use such tariff publications and rates, issue, file, and post, with I. C. C. number, an adoption notice, substantially as follows:
The [name of carrier] hereby adopts, ratifies, and makes its own, in every respect as if the same had been originally filed and posted by it, all tariffs, rules, notices,