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CONFERENCE RULINGS OF THE INTERSTATE COMMERCE

COMMISSION.

Issued May 7, 1908.

[Index to Conference Rulings, See Post, Page 806.]

These rulings have been made by the Commission in conference, on the dates indicated, upon questions raised or submitted in correspondence.

November 4, 1907.

1. Passes to Caretakers.-An employee of a produce company was granted a pass for the purpose of going to a point on the carrier's lines and returning as caretaker of a carload of bananas. He was not able to secure a return shipment. Held, That the carrier must collect the full fare. (See No. 37.)

2. Tariffs distinguishing between shipments handled by steam and electrical power.-Amendment to tariff provided:

"The above rates will only apply on shipments handled by steam power and will not apply when handled by electrical power."

Held, That the limitation of the rates to shipments handled by steam power is unlawful and must be eliminated from the tariff.

3. Collection of undercharges.-The Commission adheres to its previous ruling that carriers must exhaust their legal remedies to collect undercharges from consignees.

November 11, 1907.

4. Rates on new lines.-Rule 44 of Tariff Circular No. 14-A, providing that rates may be established in the first instance on "new lines" without notice, was intended to apply to newly constructed lines only. (See Rule 57, Tariff Circular 15 A.) 5. Free storage creating distributing point for private industry.-Its attention being called to a tariff which, in effect, created a distributing point for a special industry by granting it free storage at that point, either in its own or the carrier's warehouses, and practically without limit as to time, the merchandise when shipped out to go on balance of through rate, the Commission expressed its disapproval.

6. Reconsignment rule will not be given retroactive effect.-A shipment consigned to one point was reconsigned en route to another, the tariff containing no reconsignment privilege. As a consequence local rates to and from the reconsigning point were applied and made higher than the through rate. Held, Under subsequent tariff that did not reduce rates, but incorporated a reconsignment privilege, that the benefit of such privilege could not be applied retroactively to a previous shipment, and can not be accepted as the basis for a refund on special reparation docket.

November 18, 1907.

7. Commissions on import traffic.-The granting by carriers of commissions to persons acting as consignees on import traffic is a practice that can not be sanctioned. 8. Demurrage charges resulting from strikes.-The Commission has no power to relieve carriers from the obligations of tariffs providing for demurrage charges, on the ground that such charges have been occasioned by a strike.

9. Free transportation by carriers for one another. Where stock in one railway company is owned by another railway company, but both maintain separate organizations and report separately to the Commission, they may not lawfully carry freight free for each other.

December 2, 1907.

10. Statute of limitations.-Claims filed with the Commission since August 28, 1907, must have accrued within two years prior to the date when they are filed, otherwise they are barred by the statute. Claims filed on or before August 28, 1907, are not affected by the two years' limitation in the act.

11. Reduction of rate when formal complaint against it is pending.—When after complaint made and before hearing a rate is reduced to the sum demanded by the complainant, the order disposing of the proceeding shall require the maintenance of that rate as a maximum for not less than two years.

12. Tariff that fails to state the date of its effectiveness is unlawful.-A tariff was filed without naming a date on which it was to take effect. Does it ever become effective, and if so, when? Held, That the tariff was unlawful and has never taken effect.

13. Tariffs not concurred in are unlawful.-A properly accredited chairman of a tariff committee published tariffs for certain carriers for which he was the duly constituted attorney-in-fact for that purpose. A carrier declining to concur in his tariffs put a new cover on them and filed them as its own tariffs without securing the concurrences of the other carriers named therein. Held, That the tariffs so adopted were unlawful and could not be used by the carrier.

January 6, 1908.

14. Maintenance of rate reduced after complaint filed.-On December 2 it was decided that when a rate is reduced after answer has been made and before hearing, the report disposing of the proceeding shall carry with it an order directing the defendant to maintain that rate as a maximum for not less than two years. On December 6 it was decided that orders in special reparation cases shall include a clause providing that the new rate or regulation upon the basis of which reparation is granted shall be maintained for a period of at least one year.

It is now agreed that the two years so required in orders upon formal complaints and the one year in orders in special reparation cases shall run from the date of the order and not from the date when the reduced rate or new regulation became effective.

15. Delivering carrier must investigate before paying claims.-A delivering carrier can not accept the authority of a connecting line, and thus shield itself from responsibility in paying claims, but must investigate and ascertain the lawful rates and allow the claims or not upon the basis of its own investigations.

16. Delivering carrier must collect undercharges. Even though an undercharge results from an error in billing by the initial carrier or a connection, the delivering carrier must collect the undercharge. The legal expense attending its efforts to collect undercharges in such cases would seem to be a valid claim against the carrier through whose fault the mistake was made.

17. Feeding and grazing in transit.-In connection with the published privilege of feeding and grazing in transit a carrier may lawfully provide in its tariffs that it will furnish feed at current market prices, and bill the cost thereof, together with an addition of 10 per cent or other reasonable percentage to cover the value of its services, as advance charges.

18. Free transportation of dead body of employee.-When an employee of a car. rier has been killed or has died in service at a distant point, the carrier may, free of charge and as a general incident to the relation between it and its employees, lawfully transport the body to the home of the deceased for burial.

Note. By an amendment to the act, effective April 13, 1908, Congress made it lawful for carrier to give free transportation to remains of persons killed in its employ and also to his family.

19. Expense incurred in preparing cars for shipments can not be paid by carrier in the absence of tariff provisions therefor.-Not having box cars available for the movement of machinery, cattle cars were supplied at the request of the shipper, who lined them with tar paper and felt in order to protect his shipments from weather conditions. Held, That in the absence of tariff authority the carrier can not lawfully reimburse the shipper for the expense so incurred.

20. Special understandings between shippers and carriers, not published in their

tariffs, of no valid effect.-A shipper had an understanding with agents of carriers that when he delivered shipments to them consigned to stations at which there were no agents the carriers would so advise him and hold the shipments for further direction. In a given case a carrier neglected to so advise him and to hold the shipment, but billed it and sent it forward to a nonagency station as a prepaid shipment. Held, That the shipper must pay the charges, and that no understanding of that nature, not incorporated in the published tariffs of the carrier, will operate to relieve the carrier from the duty of collecting the lawful charges.

21. Caretakers of milk.-The provision of law relating to the free transportation of necessary caretakers of live stock, poultry, and fruit can not be construed to include caretakers of shipments of milk.

22. Free carriage of company material.—It is not unlawful for a carrier to return its own property free of charges, to the manufacturers thereof situated on its own line, for exchange or repair.

23. Extension of time on through passenger tickets.-A through rate must be recognized as a unit, and an extension of time granted on a through ticket under a tariff regulation of a carrier whose line is a part of that route is sufficient to cover the transportation over the lines of other carriers in the route. The proper practice is for the carrier so granting the extension to indorse it upon the portion of the ticket to be taken up by the last carrier, and also upon the coupon of each carrier. (This ruling was reversed by the Commission on March 2, 1908. See No. 43.) 24. Canadian rates.-A Canadian carrier having joint through fares from a point in the United States to points on its own line may not depart from those fares by the device of placing an agent at such point in the United States with authority to sell tickets from the first station on its line north of the Canadian boundary to other points on its line in Canada at the rate of 1 cent a mile, to be sold only to such persons as produce a certificate of the immigration agent of the Canadian government." Besides being a device, tickets so limited to particular persons operate as a discrimination. But in the absence of such joint through fares from a point in the United States to points on its own lines this Commission has no jurisdiction over the fares actually charged and collected for the separate transportation between points in Canada.

25. Refund of drayage charges caused by misrouting.-Where a shipment was routed contrary to the express directions of the shipper and the consignee was compelled to move the shipment by dray from the station of delivering carrier to the destination to which it would have been switched if properly routed, the carrier may, under the particular circumstances of the case, be authorized by the Commission to refund to the shipper the reasonable actual cost of the drayage.

26. Use of intrastate commutation ticket in interstate journey. In the absence of a provision in the commutation contract forbidding it, a commutation ticket may be used between the points named on it in connection with an interstate journey on trains that stop at such points.

January 13, 1908.

27. Excursion ticket invalidated through failure of carrier to make connection.— A passenger traveling on a special limited excursion ticket with stop-over privilege, leaves a stop-over point in ample time to make all connections and meet conditions of ticket; but through successive delays to trains misses connections at a certain junction, making the ticket twenty-four hours out of date. Regular fare was collected for the balance of the return trip. Held, That the carriers ought to make the ticket good, it having become invalid through their fault.

28. Tickets for transportation and meals, hotel accommodations, etc.-A carrier publishes a tariff offering certain transportation fares and rates for personally conducted tours with tickets to cover meals, hotel accommodations, etc., and declines to sell the transportation ticket to anyone who does not also purchase the tickets covering meals and hotel accommodations. Held, That the two matters must be kept separate, and carriers may not decline to sell such transportation without tickets for meal and hotel accommodations.

29. Quotations from correspondence of the Commission.-The Commission requests that if extracts from its correspondence are sent out by carriers, such extracts be

made sufficiently full, or that sufficient of the correspondence be presented, to give a complete view and understanding of the meaning of the ruling and of the circumstances discussed, or of the inquiry answered therein.

January 15, 1908.

30. Carriers' monthly reports to be furnished in duplicate.-Beginning as of January 1, 1908, monthly reports of revenues and expenses, as provided for in the order of the Commission, bearing date July 10, 1907, shall be filed in duplicate, and on or before the last day of the month immediately following the month covered by the report shall be deposited in the United States Post-Office, postage prepaid, and plainly addressed to the Division of Statistics and Accounts, Interstate Commerce Commission, Washington, D. C.

31. Demurrage charges on astray shipments. An astray shipment of perishable merchandise was not rebilled to its proper destination, but was sold by the consignee at the point where he found it. The delivering carrier at that point had assessed demurrage charges before the shippers were able to locate the car. That carrier expressed its willingness to waive the demurrage if the Commission permits. Held, That demurrage charges stand in the same light as transportation charges and may be adjusted under Rule 74 of Tariff Circular 15-A.

February 3, 1908.

32. Demurrage charges. The delivering carrier is under obligation to collect demurrage charges assessed by it, although such charges may have accrued as the result of error on the part of another carrier.

The shipper should pay the lawfully published rate via the route over which the shipment moved, pending dispute, and then make claim for refund. The Commission, in the adjustment of misrouting claims, will not ordinarily include demurrage charges. (See Rule 81, Tariff Circular 15-A.)

When the delivering carrier demands more than the lawful rate, the consignee is released from the obligation to pay demurrage charges accruing during the pendency of the dispute as to the lawful rate.

33. Reduced transportation for federal, state and municipal governments.-Under section 22 of the act to regulate commerce, carriers may grant reduced rates for the transportation of property for the United States or for State or municipal governments, under arrangements made directly with such government and in which no contractor or other third person intervenes, without filing or posting the schedule of such rates with the Commission. (See No. 36.)

34. Coal used for steam purposes not entitled to reduced rates.—A tariff providing for reduced rates on coal used for steam purposes, or that the carrier will refund part of the regular tariff charges on presentation of evidence that the coal was so used, is improper and unlawful. That is to say that the carrier has no right to attempt to dictate the uses to which commodities transported by it shall be put in order to enjoy a transportation rate.

35. Use of state passes in interstate journeys unlawful.-Passes granted to state railroad commissioners can not lawfully be used in interstate journeys.

February 4, 1908.

36. Rates on shipments for the federal Government.-If title to property, such as postal cards, passes to the Government at the point of manufacture, the carrier may agree upon a rate to be applied for transporting it for the Government to another point, without filing a tariff with the Commission. But if the manufacturer under his contract is required to deliver to the Government at such other point, the transportation must be under the published tariff rate. In other words, if the shipment is made directly by the Government, this rate may be fixed by the carrier without posting and filing the tariff, but not otherwise. (See No. 33.)

37. Passes to caretakers.-Passes to caretakers must be in the form of trip passes limited to the journey on which the person to whom the pass runs acts as a caretaker. It may also cover the return journey. Annual or time passes to caretakers are unlawful. (See No. 1.)

And

38. Reparation on informal complaints.-The phrase "within a reasonable time," on page 2 of Special Circular No. 1, relating to "Special reparation on informal complaints," is now defined as a period of time not exceeding six months. reparation will not be authorized by the Commission, except in cases involving special circumstances, unless the rate upon the basis of which adjustment is sought has been actually established by published tariffs within six months after the date of the shipment in question, or unless the claim is filed with the Commission within six months after the shipment moved.

March 3, 1908.

39. Accrued demurrage charges. A shipper who had customarily paid his freight charges in checks was called upon, under a general order issued by the carrier, to pay his freight charges in cash during the recent financial disturbances. While the local agent was endeavoring to get authority from the home office of the carrier to continue to accept checks from this shipper demurrage charges accrued. Held, That they could not lawfully be refunded.

40. Printing of briefs.-Rule XIV of the Rules of Practice is amended by the following paragraph, to be inserted between the first and second paragraphs as they now stand:

"Briefs shall be printed in twelve-point type, on antique finish paper, 5% inches wide by 9 inches long, with suitable margins, double-leaded text and single-leaded citations."

41. Division of proceeds of sale of shipment to pay freight charges.-A shipment refused by the consignee and upon which demurrage had accrued was sold by the delivering carrier, but did not realize the amount of the transportation charges and the amount paid for unloading. Upon the request of the carrier the Commission declined to express its views as to the manner in which the proceeds of the sale should be divided among the several carriers participating in the movement, that being a matter to be determined by the interested carriers for themselves.

42. Rates on return movements.-A shipment of mining machinery went to destination over the lines of one carrier and was subsequently returned for repairs over the lines of another carrier. The published tariff, to which all carriers participating in both movements were parties, provided for half rates on such return movements when over the same route as the original out-bound movement. A portion of the route of the return movement was over the line of a carrier which also formed a part of the through route over which the out-bound shipment moved. Held, That, the regular tariff rate was properly applied on the return movement; that the return movement under through billing must be treated as a unit; and that there could be no refund on the basis of the half rates for any portion of such through return movement.

43. Extension of time on through passenger tickets.-The rule heretofore announced under this head to the effect that an extension of time on a through ticket by a carrier whose line is a part of that route is binding on the lines of other carriers in the route, is now withdrawn. (See No. 23.)

44. Limitations of passenger tickets. A passenger travelling on a roundtrip ticket containing the provision that "This ticket will be good for return trip to starting point prior to midnight of date punched by selling agent in column 2. Final limit; did not reach the last connecting carrier before the date punched on the ticket. The passenger was required to pay full fare on the last connecting line. Held, That a refund could not lawfully be made.

45. Passengers on freight trains.-Upon inquiry made by a carrier the Commission holds that it may not confine the right to travel on freight trains to a particular class, such as drummers and commercial agents, but if the privilege is permitted to one class of travelers it must be open to all others on equal terms and conditions.

46. Reparation on informal pleadings, passenger tickets.-The rules of the Commission relating to reparation on informal complaints do not extend to passenger traffic, but are limited to freight traffic only. The Commission will not entertain applications for authority to refund on passenger tickets on the ground that the fare was reduced shortly after the ticket was sold.

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