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$410(e)

APA, 5 USC

TERMS AND CONDITIONS; TERRITORIES; RESTRICTIONS 323
ADMINISTRATIVE PROCEDURE ACT

324

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The Advance Bulletin supplements the Commission's bound volumes of Interstate Commerce Acts Annotated. This issue is number 7 of volume 1. A number of Bulletins will constitute a volume; and the pages will be numbered consecutively within each volume rather than within individual Bulletins. facilitate the location of subject headings, the Table of Contents of each Bulletin may ultimately be removed to form a cumulative table for the volume. The Bulletin is published bimonthly.

Members of the public, attorneys and practitioners, the I.C.C. staff ray consult the consolidated file from which the Bulletin is compiled in Room 1205 of the I.C.C. Building. For cases which appear in the Bulletin only as reconsidered or appealed, prior citations and annotations may be obtained by consulting the consolidated file or by calling Mr. John F. McMorrow or Mr. Robert A. Emery, (202) 343-3267.

Material in this volume of the Bulletin will appear in Volume 22 of

the Interstate Commerce Acts Annotated.

Where a Bulletin case is marked with

an asterisk (*), its history may be found in the Table of Cases at the back

of the Bulletin.

Volume 21 of the Interstate Commerce Acts Annotated is now available from the U.S. Government Printing Office (Stock No. 2600-00970) and may be ordered from the Superintendent of Documents, Government Printing Office, Washington, D.C. 20402, at $18.65 per copy, payable by check or money order to the Superintendent of Documents.

The Advance Bulletin is prepared in the Annotations Unit under the direction of Mr. Jack R. Long, Chief, Reference Services Branch, Section of Case Control and Information, Office of Proceedings, Interstate Commerce Commission, Washington, D.C. 20423. Comments and suggestions regarding improvement of the format of the Bulletin will be welcomed, and may be made in writing. or by calling (202) 343-3766.

$1(3)(a). DEFINITIONS

Vol. 1 No. 7

PART I

Historical Note

Public Law 93-627, 88 Stat. 2136, states that a deepwater port and storage facilities serviced directly by such deepwater port shall be subject to regulation as a common carrier in accordance with the Interstate Commerce Act, as amended; and whenever the Secretary [of Transportation] has reason to believe that a licensee is not operating a deepwater port, any storage facility or component thereof, in compliance with its obligatio as a common carrier, the Secretary shall commence an appropriate proceeding before the Interstate Commerce Commission or he shall request the Attorney General to take appropriate steps to enforce such obligation, and where appropriate, to secure the imposition of appropriate sanctions.

§1(5). JUST AND REASONABLE CHARGES

286.

Competition

How far competition considered in determining reasonableness by Commission.--Although proposed reduced rail-motor rates are justified as a means to prevent diversion of traffic considered herein by equalization of respondent's rates with protestant rail carrier's rates on such traffic, the proposed rates, with few exceptions, are not compensatory and thus are not shown to be just and reasonable.--Motor Vehicles, Kansas City, Mo., to Southwest, 335 I.C.C. 253 (286)*.

Rates Based on Quantity of Traffic

518. Trainload rates.--Rent-a-train rates are a form of annual volume discount rates approved or found not shown to be unlawful in 311 ICC 355 and 323 ICC 75. In latter case tariffs providing unit train rates were found not to create contract rates such as were condemned in 315 ICC 311, and a like finding is warranted herein.--Grain By Rent-A-Train, IFA Territory to Gulf Ports, 335 I.C.C. 111 (125).

§1(6).

CLASSIFICATION OF PROPERTY FOR TRANSPORTATION; REGULATIONS AND
PRACTICES

Manner of Assessing Charges

538. Rates and regulations applicable.--Under railroad's tariff permitting lumber (boards and sheets) to be stopped in transit for "facing or finishing with decorative or protective covering" and, later, "manufacturing," the only privileges granted defendant shipper were to "vinyl laminat and then "manufacture" boards and sheets; thus, shipper exceeded transit priv ilege of "manufacturing" by including metallic resting glides, plastic edging and printed assembly instructions in individually packaged cartons containing

all the component parts of various articles of furniture, since those items were not part of its manufacturing process. Therefore, though shipper described the shipments in bills of lading as "boards and sheets," commodities shipped in each instance were "furniture, knocked down flat" and the tariff rate on furniture, rather than lower "boards and sheets" rate, applied. Railroad is entitled to recover from shipper freight charges on considered shipments at the higher furniture rate applicable.--Norfolk & W. Ry. Co. v. Permaneer, Inc., 320 F. Supp. 749 (753-4)*.

Terminal Services and Facilities

680. Switching, absorptions.--Defendants' practice of absorbing a greater portion of switching charges for shippers and consignees of freight on certain lines than is absorbed for those located on complainant Belt Railroad is unjust and unreasonable. Failure to absorb switching charges for some carriers has been found unreasonable because of prevailing practice to absorb similar charges for other carriers and the consequent discrimination for some shippers.--Public Belt P. Comm. v. Aberdeen & R. R. Co., 335 I.C.C. 152 (168-72).

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50.

Practices Generally

Prohibited devices and concessions, generally.--See Grain

by Rent-A-Train, IFA Territory to Gulf Ports, at §3(1), n. 37.

Freight

72. Switching charges, absorption.--Defendant railroads' tariff provisions limiting absorption of switching charge of complainant Belt Railroad to an amount less than amounts absorbed for switching performed by other carriers at New Orleans, La., are in violation of $2 inasmuch as shippers and consignees served by complainant are thus assessed a greater charge than those served by other switching lines at New Orleans for contemporaneous services in transportation of like kind of traffic under similar circumstances and conditions.--Public Belt R. Comm. v. Aberdeen & R. R. Co., 335 I.C.C. 162 (172-5).

$3(1). UNDUE PREFERENCES OR PREJUDICES PROHIBITED

Character of Preferences Prohibited

37. Competitive relationship between preferred and prejudiced.-Train-rental rates, assailed herein as preferential of very large shipper, are to enable east-central Illinois area to compete in corn export market. Small shipper in this area does not have volume of corn to use train-rental service, but neither is it competing in the export market. If large shipper's corn is exported, small shippers have more of the domestic market available. The traffic is not being handled by any carrier. Protestants have not shown

they would be injured by this service and a finding of undue preference and prejudice is not justified.--Grain by Rent-A-Train, IFA Territory to Gulf Ports, 335 I.C.C. 111 (120).

Determination of Undue Prejudice

90. Competition with water and/or truck carriers.-Upon remand from district court, Commission held that higher all-rail rates on crude sodium sulphate from a point in Canada are not unduly prejudiced by lower all-rail rates mainly from origins in California to the same destinations in Oregon and Washington, because water competition exists from the California origins and not from Canada. Water route offers lower rail-water rates than the corresponding all-rail rates from California to Oregon and Washington, compelling reductions in all-rail rates. This competitive situation is not present from the complaining Canadian origin.--Saskatchewan Minerals v. Chicago, M. St. P. & P. R. Co., 335 I.C.C. 8 (17-18)*.

Regulations, Practices, Services, and Facilities

136. Absorption of charges.--Defendants' tariff provision limiting absorption of switching charges to less than that absorbed by other switching carriers at New Orleans is violative of §3 (1) inasmuch as complainant railroad's consignors and consignees thus pay more for substantially similar services. Also, port of New Orleans is disadvantaged to export-import traffic when line-haul carriers absorb all switching charges at other Gulf ports. See 329 I.C.C. 669.--Public Belt R. Comm. v. Aberdeen & R. R. Co., 335 I.C.C. 162 (175-80).

140. Car service.--Following its decision in 322 I.C.C. 541, Commission held that a shipper who guarantees to use cars all year is in a different position from one who uses cars only during harvest season. It is not unlawful for a carrier to provide dedicated service at special rates to shippers who desire the service and will pay for it. Since the rent-atrain service offered herein is available to all, the assailed provisions are not unlawful per se. Furthermore, rent-a-train shipper may only use a limited number of cars and his corn shipments must be spread over the entire year, permitting more cars to be available during the harvest season to other shippers.--Grain by Rent-A-Train, IFA Territory to Gulf Ports, 335 I.C.C. 111 (118-19).

$3(2). PAYMENT OF FREIGHT AS PREREQUISITE TO DELIVERY

Liability for Freight Charges of Parties to Shipment

22. Consignee's liability.--See Southern Pac. Transp. Co. v.

Campbell Soup Co., 96(7), n. 222.

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