Stanley Forman Reed

“ Thus the decision implies a formula or rule to the effect that a land-grant deduction once found applicable to charges for transportation over a route made up of aided and unaided mileage between two points is to be applied to all subsequent government shipments between those points, even if the route actually used includes no aided mileage. There is nothing in this contract or in any of the railroad land-grant Acts, either as written or as hitherto construed, to warrant that construction. ”

“ In the list of administrative rulings, cited by the government, this is the first one that involves construction of a land-grant Act. Land-aid differs essentially from bond-aid. Contracts in respect of the latter require government transportation over aided mileage at 'fair and reasonable rates' and that the compensation earned be applied on the bond debt. No diminution of charges for government transportation is exacted. The railroad receives credit instead of cash for the charges calculated at full rates. But the land-grant Acts require service either free or at half rates forever. ”

“ The most prevalent condition was that 'the said railroad shall be and remain a public highway for the use of the Government of the United States, free from toll or other charge upon the transportation of any property or troops of the United States.' This was construed to require the railroad to furnish only free use of the rails and permanent structures. ”

“ This shows the land-grant mileage in the United States at the date of issue. In order to obtain a share of government traffic, non-land-grant roads have entered widely into freight land-grant equalization agreements by which they agree to carry freight, routed over their lines at 'the lowest net rates lawfully available, as derived through deductions account of land grant distance. ”

“ On government shipments between Cairo and Texarkana by that route, 99.247 per cent was land-aided. Because of a change in the bed of the river, it was necessary to haul the shipments in question via Thebes and Illmo. The land-grant deduction applicable to that route was 81.234 per cent. The railroad insisted that, having been forced to give up the old route, it should not be required to make deduction for the non-aided mileage between Cairo and Dexter via Thebes. ”

“ As the amounts due to the carrier were applied to retirement of the bonds in aid, this ruling preserved the charges for this purpose. This ruling has been followed in roads aided by land grants. [10] The long continued administrative interpretation has decided weight in reaching a conclusion upon the construction of this contract, [11] particularly when the Congress after such interpretation gives up a right for free transportation between the terminals. Any doubt must be resolved in favor of the Government. ”

“ An older route between the same points was via White River Branch Connection, Cairo Branch Connection, Carondolet Branch Connection, Pacific, and Kansas City. The ratio applicable in computing land-grant deduction for shipments hauled that way is 17.933 per cent. The Warden at Leavenworth paid the company for the service in question over the unaided line, without any land-grant deduction. However, the Comptroller held the carrier subject to the same percentage of deduction as applied to the aided route. ”

“ Act of July 3, 1866, 14 Stat. 78 (N.Y. Cent. R.R.; Mich. Cent. R.R.) ; Act of July 4, 1866, 14 Stat. 87 (Chicago, M. & St. P. Ry.) ; Act of July 25, 1866, 14 Stat. 239 (Southern Pac. Co.) ; Act of July 26, 1866, 14 Stat. ”