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B-155218, OCT. 22, 1965

B-155218 Oct 22, 1965
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BURLINGTON AND QUINCY RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 28. 780.52 ALLEGEDLY REPRESENTS OVERPAYMENTS OF LINE-HAUL COMPENSATION RESULTING FROM THE INCLUSION OF DOORWAY ALLOWANCES WHEN A DOORWAY WAS NOT CONSIDERED BY THE DEPARTMENT TO BE NECESSARY. WE HAVE CONCLUDED THAT IN THE CIRCUMSTANCES YOUR COMPANY WAS ENTITLED TO THE DOORWAY ALLOWANCES IN LINE- HAUL COMPENSATION AS ORIGINALLY AUTHORIZED BY THE DEPARTMENT. WE ARE INSTRUCTING OUR CLAIMS DIVISION TO ISSUE SETTLEMENT MAKING AN APPROPRIATE ALLOWANCE WHICH SHOULD REACH YOU IN DUE COURSE. THAT YOUR COMPANY IS NOT ENTITLED TO CREDIT FOR DOORWAY ALLOWANCES IN THE COMPUTATION OF TERMINAL CHARGES. NO PROVISION WAS MADE IN THESE REGULATIONS FOR THE INCLUSION OF A DOORWAY ALLOWANCE IN THE COMPUTATION OF TERMINAL CHARGES AS WAS PERMITTED IN THE COMPUTATION OF LINE-HAUL CHARGES (39 CFR 92.8 (C) (II).

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B-155218, OCT. 22, 1965

TO CHICAGO, BURLINGTON AND QUINCY RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 28, 1964, IN WHICH YOU REQUESTED THAT THE GOVERNMENT REFUND $4,155.59 DEDUCTED FROM YOUR COMPANY'S REVENUES BY THE POST OFFICE DEPARTMENT TO RECOVER CERTAIN DOORWAY ALLOWANCES MADE TO YOUR COMPANY IN THE CARRIAGE OF MAIL.

THE DEPARTMENT REPORTS THAT THE INVOLVED TRANSPORTATION TOOK PLACE BETWEEN CHICAGO AND ST. PAUL ON TRAIN 31 DURING THE PERIOD APRIL 7, 1959, TO FEBRUARY 3, 1961. OF THE $4,155.59, DEDUCTED, $2,780.52 ALLEGEDLY REPRESENTS OVERPAYMENTS OF LINE-HAUL COMPENSATION RESULTING FROM THE INCLUSION OF DOORWAY ALLOWANCES WHEN A DOORWAY WAS NOT CONSIDERED BY THE DEPARTMENT TO BE NECESSARY. THE REMAINING $1,375.07 REPRESENTS THE OVERPAYMENT OF TERMINAL CHARGES DUE TO INCLUSION OF A DOORWAY ALLOWANCE.

AFTER A CAREFUL STUDY OF THE MATTER, WE HAVE CONCLUDED THAT IN THE CIRCUMSTANCES YOUR COMPANY WAS ENTITLED TO THE DOORWAY ALLOWANCES IN LINE- HAUL COMPENSATION AS ORIGINALLY AUTHORIZED BY THE DEPARTMENT. ACCORDINGLY, WE ARE INSTRUCTING OUR CLAIMS DIVISION TO ISSUE SETTLEMENT MAKING AN APPROPRIATE ALLOWANCE WHICH SHOULD REACH YOU IN DUE COURSE.

WE BELIEVE, HOWEVER, THAT YOUR COMPANY IS NOT ENTITLED TO CREDIT FOR DOORWAY ALLOWANCES IN THE COMPUTATION OF TERMINAL CHARGES. DURING THE PERIOD IN QUESTION, DEPARTMENT REGULATIONS GOVERNING COMPENSATION FOR THE CARRIAGE OF MAIL BY RAILROADS AS SET OUT IN APPENDIX C OF RAILWAY MAIL PAY, APPLICATIONS OF SOUTHERN AND WESTERN RAILROADS, 302 I.C.C. 609, 619- 620 (1957), FURTHER AMPLIFIED IN 39 CFR 92.9, 23 F.R. 225-226, JANUARY 11, 1958, AND APPROVED BY THE INTERSTATE COMMERCE COMMISSION EFFECTIVE FEBRUARY 1, 1958, PROVIDED THAT TERMINAL CHARGES FOR WORKING STORAGE CARS WOULD BE PAID ON THE BASIS OF THE VOLUME OR PIECES OF MAIL ACTUALLY LOCATED INTO THE CAR AT THE POINT INVOLVED. NO PROVISION WAS MADE IN THESE REGULATIONS FOR THE INCLUSION OF A DOORWAY ALLOWANCE IN THE COMPUTATION OF TERMINAL CHARGES AS WAS PERMITTED IN THE COMPUTATION OF LINE-HAUL CHARGES (39 CFR 92.8 (C) (II), 23 F.R. 224, JANUARY 11, 1958). THIS SEEMS PROPER SINCE TERMINAL COMPENSATION FOR WORKING STORAGE SERVICE IS DESIGNED TO PAY A RAILROAD FOR THE MAIL'S SHARE OF EXPENSES FOR THE LOADING AND UNLOADING OPERATION, SWITCHING SERVICE AND STATION USE (RAILWAY MAIL PAY, APPLICATION OF EASTERN RAILROADS, 304 I.C.C. 135, 136- 137, 140 (1956), AND RAILWAY MAIL PAY, 279 I.C.C. 633, 635 (1950) (, AND A DOORWAY--- A VACANT SPACE ADJACENT TO A DOOR TO FACILITATE THE LOADING AND UNLOADING OF MAIL--- REASONABLY SHOULD NOT BE REQUIRED TO CONTRIBUTE TOWARD THESE EXPENSES WHEN NO MAIL IS LOADED THEREIN. ACCORDINGLY, WE ARE INSTRUCTING OUR CLAIMS DIVISION TO INCLUDE IN THE SETTLEMENT TO BE ISSUED A PARTIAL DISALLOWANCE COVERING THAT PORTION OF YOUR CLAIM ATTRIBUTABLE TO COMPENSATION FOR TERMINAL SERVICES.

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