B-146414, FEB. 19, 1962

B-146414, FEB. 19, 1962

TO THE ATCHISON, TOPEKA AND SANTA FE RAILWAY COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 20 AND NOVEMBER 20, 1961, FILE G 634690, REQUESTING REVIEW OF THE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR $102.80 AS A PART OF THE CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF A SHIPMENT OF TRAILERS FROM HAMMONG, INDIANA, TO OAKLAND, CALIFORNIA, WITH A STOP AT NEBO, CALIFORNIA, FOR TRANSIT UNDER EXECUTIVE COMMITTEE-WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION NO. 38.

THE RECORD WITH RESPECT TO THIS SHIPMENT SHOWS THAT THE SHIPMENT FROM HAMMOND, INDIANA, TO NEBO, CALIFORNIA, CONSISTED OF TWO TRAILERS, EXCEEDING 44 INCHES LOW BED, WEIGHING 31,000 POUNDS, WHICH WERE TRANSPORTED ON BILL OF LADING WY-3376957, DATED JANUARY 5, 1954. FURTHER, THAT THE CHARGES CLAIMED AND PAID INBOUND WERE COMPUTED ON THE BASIS OF A RATE OF $2.98 PER 100 POUNDS, PLUS 15 PERCENT, ON A MINIMUM WEIGHT OF 34,000 POUNDS. THE OUTBOUND SHIPMENT FROM NEBO TO OAKLAND, CALIFORNIA, UNDER TRANSIT BILL OF LADING NO. M-T 06270, DATED JUNE 22, 1955, WEIGHED 15,500 POUNDS, ALL OF WHICH REPRESENTED TRANSIT TONNAGE. YOU CLAIMED AND WERE PAID $247.88, PER BILL 634690, ADDITIONAL FOR THE THROUGH TRANSPORTATION. THE AMOUNT SO PAID WAS COMPUTED ON THE BASIS OF A THROUGH RATE OF $3.49 PER 100 POUNDS, PLUS 15 PERCENT, AND A MINIMUM WEIGHT OF 19,000 POUNDS, OR A CHARGE OF $762.57 FROM HAMMONG, INDIANA, TO OAKLAND, CALIFORNIA, LESS PAID IN CREDIT OF $531.19, PLUS A TRANSIT CHARGE OF $21.30, LESS A PORT ALLOWANCE OF $4.80. IN THE ORIGINAL AUDIT OF THIS PAYMENT IT WAS DETERMINED THAT YOU HAD BEEN OVERPAID $238.17. THE THROUGH CHARGES ON THIS SHIPMENT WERE COMPUTED ON THE BASIS OF THE RATE OF $3.22 PER 100 POUNDS, AND A MINIMUM WEIGHT OF 25,000 POUNDS, PER ITEM 1860 OF TRANS CONTINENTAL FREIGHT BUREAU FREIGHT TARIFF NO. 29-J, ON THE TRANSIT WEIGHT OF 15,500 POUNDS (PLUS 15 PERCENT), AND A TRANSIT CHARGE OF 9 3/4 CENTS PER 100 POUNDS (PLUS 15 PERCENT), LESS 3 CENTS PER 100 POUNDS PORT ALLOWANCE. THE CHARGES FOR THE DEFICIT, 9,500 POUNDS (THROUGH MINIMUM 25,000 POUNDS LESS TRANSIT WEIGHT 15,500 POUNDS), WERE COMPUTED AT THE LOCAL RATE OF 60 CENTS PER 100 POUNDS FROM THE TRANSIT POINT, AS PUBLISHED IN PACIFIC SOUTH COAST FREIGHT BUREAU SECTION 22 QUOTATION NO. 154-E. THE AUTHORITY FOR THE TRANSIT PRIVILEGE IS EXECUTIVE COMMITTEE-WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION 38, AND THE AUTHORITY FOR THE USE OF THE EXPORT RATE AND THE PORT ALLOWANCE IS A.A.R. SECTION 22QUOTATION NO. 265- A.

IN YOUR LETTER OF JUNE 20, 1961, YOU STATE, IN PART, THAT:

"THE QUESTION INVOLVED IS WHAT INBOUND TONNAGE IS APPLICABLE FOR TRANSIT CREDIT ON OUTBOUND BILL OF LADING MT-06270 UNDER EC-WTA SECTION 22 QUOTATION (TRANSIT) 38.'

THE QUESTION RAISED, ALTHOUGH INVOLVING A DIFFERENT SECTION 22 QUOTATION, IS THUS SIMILAR TO THAT RAISED IN YOUR LETTERS OF FEBRUARY 14, 1961, FILE G-632616, AND MAY 19, 1961, FILE G-631487. OUR DECISIONS OF OCTOBER 4, 1961, B-145860, AND DECEMBER 14, 1961, B 145925, APPEAR EQUALLY APPLICABLE IN THIS CASE. IN THOSE DECISIONS WE EXPRESSED OUR VIEW THAT A PROPER AND EQUITABLE CONSTRUCTION OF THE TRANSIT QUOTATION REQUIRES THAT CREDIT FOR THE INBOUND CHARGES SHOULD BE BASED ON THE RELATIONSHIP OF THE TRANSIT TONNAGE TO THE CHARGES PAID ON THE ACTUAL INBOUND WEIGHT. THAT VIEW REQUIRES THE APPLICATION OF A FORMULA WHICH GIVES EFFECT TO THE ACTUAL RATE BASIS USED TO DETERMINE THE CREDIT AGAINST THE THROUGH CHARGES. THE ALLOWABLE CHARGES WILL BE RECOMPUTED CONSISTENT WITH THE FORMULA UPHELD IN THOSE DECISIONS, AND AN APPROPRIATE SETTLEMENT CERTIFICATE WILL BE ISSUED.