Reconstruction Finance Corp. v. Spokane, P. & S. Ry. Co.

The decisive question left with the District Court after pre-trial and through stipulation of the parties was: Which, if either, of two railway freight rates itemized in the freight tariff schedules filed with the Interstate Commerce Commission was proper to be charged the government (plaintiff) on carloads of alcohol owned and shipped by it from certain points in Louisiana to certain points in the states of Oregon and Washington. *97 1 The court decided, in agreement with the carrier’s claim, that “Item No. 1497 (sec. 2) Alcohol N.O.S. in tank cars” bearing the rate of $1.59 per unit of charge was the proper item to be applied. The initials N.O.S. stand for “Not Otherwise Specified” in the schedule. The government contended that Item No. 1563, “Alcohol, in-bond” bearing the rate of $1.23 per unit of charge was the proper item to be applied. The alcohol was actually shipped under bills of lading designating the commodity “Alcohol Tax Free N.O.I.B.N.” These initials stand for “Not Otherwise Itemized By Name.” There is no specification in the tariff schedule applying to alcohol shipments which are designated “Tax Free,” and “N.O.I.B. N.” is not applied to alcohol shipments in the…