A-25178, DECEMBER 26, 1928, 8 COMP. GEN. 314

A-25178: Dec 26, 1928

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TRANSPORTATION OF HOUSEHOLD GOODS OF ARMY OFFICER IN TWO SHIPMENTS - COMPUTATION OF EXCESS COSTS UNDER ARMY REGULATIONS THE EXCESS COST OCCASIONED THE GOVERNMENT BY REASON OF FAILURE OF AN OFFICER OF THE ARMY TO RELEASE FOR SHIPMENT AT ONE TIME HIS ENTIRE AUTHORIZED CHANGE OF STATION BAGGAGE ALLOWANCE WILL BE BORNE BY THE OFFICER. THE METHOD FOR DETERMINING THE AMOUNT OF EXCESS COST TO THE GOVERNMENT FOR TRANSPORTING IN TWO SHIPMENTS THE HOUSEHOLD GOODS AND PERSONAL EFFECTS OF AN OFFICER OF THE ARMY ON CHANGE OF STATION IS THE APPLICATION OF THE PER HUNDRED COST ACTUALLY INCURRED FOR SHIPPING THE FIRST SHIPMENT RELEASED. 1928: THERE IS FOR CONSIDERATION THE METHOD FOR DETERMINING THE AMOUNT OF EXCESS COST OF TRANSPORTING IN TWO SHIPMENTS.

A-25178, DECEMBER 26, 1928, 8 COMP. GEN. 314

TRANSPORTATION OF HOUSEHOLD GOODS OF ARMY OFFICER IN TWO SHIPMENTS - COMPUTATION OF EXCESS COSTS UNDER ARMY REGULATIONS THE EXCESS COST OCCASIONED THE GOVERNMENT BY REASON OF FAILURE OF AN OFFICER OF THE ARMY TO RELEASE FOR SHIPMENT AT ONE TIME HIS ENTIRE AUTHORIZED CHANGE OF STATION BAGGAGE ALLOWANCE WILL BE BORNE BY THE OFFICER. THE METHOD FOR DETERMINING THE AMOUNT OF EXCESS COST TO THE GOVERNMENT FOR TRANSPORTING IN TWO SHIPMENTS THE HOUSEHOLD GOODS AND PERSONAL EFFECTS OF AN OFFICER OF THE ARMY ON CHANGE OF STATION IS THE APPLICATION OF THE PER HUNDRED COST ACTUALLY INCURRED FOR SHIPPING THE FIRST SHIPMENT RELEASED.

DECISION BY COMPTROLLER GENERAL MCCARL, DECEMBER 26, 1928:

THERE IS FOR CONSIDERATION THE METHOD FOR DETERMINING THE AMOUNT OF EXCESS COST OF TRANSPORTING IN TWO SHIPMENTS, THE HOUSEHOLD GOODS AND PERSONAL EFFECTS OF MAJ. E. S. HUGHES, ORDNANCE DEPARTMENT, UNITED STATES ARMY, FROM FORT LEAVENWORTH, KANS., TO ROSSLYN, VA., IN JULY, 1927, AND APRIL, 1928.

PARAGRAPH 5, SPECIAL ORDERS, NO. 51, WAR DEPARTMENT, DATED MARCH 3, 1927, RELIEVED MAJOR HUGHES FROM ASSIGNMENT AND DUTY WITH THE COMMAND AND GENERAL STAFF SCHOOL, FORT LEAVENWORTH, KANS., EFFECTIVE AT SUCH TIME AS TO PERMIT HIM TO REPORT IN PERSON BETWEEN AUGUST 15 AND 20, 1927, TO THE COMMANDANT OF THE ARMY WAR COLLEGE FOR DUTY AS STUDENT, 1927-28 COURSE. IT APPEARS THAT PURSUANT TO THESE ORDERS, HE TURNED OVER TO THE QUARTERMASTER AT FORT LEAVENWORTH FOR PACKING AND CRATING, HIS AUTHORIZED CHANGE OF STATION BAGGAGE ALLOWANCE CONSISTING OF 7,765 POUNDS OF HOUSEHOLD GOODS AND 840 POUNDS OF PROFESSIONAL BOOKS. THERE WERE RELEASED FOR SHIPMENT TO ROSSLYN, VA., 445 POUNDS OF SUCH BAGGAGE ALLOWANCE AND THE BALANCE THEREOF WAS REQUESTED TO BE PLACED IN STORAGE AT FORT LEAVENWORTH. THAT PART OF HIS CHANGE OF STATION ALLOWANCE WHICH WAS THUS RELEASED FOR SHIPMENT WAS CONSOLIDATED WITH THE PERSONAL EFFECTS OF FOUR OTHER OFFICERS, IN A CARLOAD OF 17,390 POUNDS AND SHIPPED TO ROSSLYN, VA., ON BILL OF LADING WQA-1504739, DATED JULY 13, 1927, AT A COST TO THE GOVERNMENT AT $294.29. BY SPECIAL ORDERS, NO. 284, WAR DEPARTMENT, DATED NOVEMBER 30, 1927, PARAGRAPH 7, THE OFFICER WAS RELIEVED FROM ASSIGNMENT AND DUTY AS A STUDENT AT THE ARMY WAR COLLEGE, WASHINGTON, D.C., AND DETAILED AS A MEMBER OF THE GENERAL STAFF CORPS, AND WAS ASSIGNED TO DUTY WITH THE WAR DEPARTMENT GENERAL STAFF, EFFECTIVE JULY 1, 1928. THE 7,320 POUNDS OF HOUSEHOLD GOODS AND 840 POUNDS OF PROFESSIONAL BOOKS PREVIOUSLY PLACED IN STORAGE WERE SHIPPED TO ROSSLYN, VA., ON BILL OF LADING WQA- 1588792, DATED APRIL 18, 1928, AT A COST TO THE GOVERNMENT OF $188.01.

IT WOULD APPEAR THAT THE OFFICER, UNDER THE PROVISIONS OF PARAGRAPH 10, ARMY REGULATIONS 30-960, DATED SEPTEMBER 20, 1927, ELECTED TO STORE A PART OF HIS PERSONAL EFFECTS AT HIS OLD STATION, BUT WHEN SPECIAL ORDERS, NO. 284, WERE RECEIVED ASSIGNING HIM TO OTHER DUTIES AT HIS THEN PERMANENT STATION, HE ARRANGED FOR THE SHIPMENT OF THE PERSONAL EFFECTS THUS PLACED IN STORAGE. SO LONG AS THE OFFICER REMAINED IN WASHINGTON, HE WAS ENTITLED TO HAVE SHIPPED AT GOVERNMENT EXPENSE HIS AUTHORIZED CHANGE OF STATION ALLOWANCE SUBJECT, HOWEVER, TO THE CONDITIONS SPECIFIED IN PARAGRAPH 15 OF THE ARMY REGULATIONS CITED, READING AS FOLLOWS:

IN ORDER TO ENABLE THE QUARTERMASTER CORPS TO CONSOLIDATE SHIPMENTS AND SECURE THE APPLICATION OF THE LOWEST POSSIBLE RATE (SUCH AS CARLOAD OR EMIGRANT MOVABLES), EACH PERSON ENUMERATED IN PARAGRAPH 10 WILL, ON CHANGE OF STATION, TURN OVER TO THE QUARTERMASTER CORPS AT ONE TIME (EXCEPT WHEN OTHERWISE AUTHORIZED UNDER PARS. 3 AND 10) HIS ENTIRE SHIPMENT OF BAGGAGE WITHIN HIS AUTHORIZED CHANGE OF STATION ALLOWANCE, INCLUDING PROFESSIONAL BOOKS AND PAPERS, AND IN ADDITION THERETO, ANY AUTHORIZED PRIVATE MOUNTS, FOR MOVEMENTS AS A CONSOLIDATED SHIPMENT. THESE INSTRUCTIONS MAY BE DEVIATED FROM ONLY WHEN ANY EXCESS COST RESULTING THEREFROM IS BORNE BY THE OWNER.

THE PROVISION OF THIS REGULATION IS THAT ANY EXCESS COST TO THE GOVERNMENT BY REASON OF FAILURE TO RELEASE FOR SHIPMENT AT ONE TIME HIS ENTIRE AUTHORIZED CHANGE OF STATION ALLOWANCE SHALL BE BORNE BY THE OFFICER.

BY PARAGRAPH 24 OF THE REGULATIONS CITED, THE FINANCE OFFICER IS CHARGED WITH DETERMINING THE EXCESS AMOUNT TO BE COLLECTED, AND IN THIS CASE HIS COMPUTATION IS AS FOLLOWS:

TABLE B/L 1588792-4/18/28, FT. LEAVENWORTH, KANS., TO ROSSLYN, VA. TO MISS. RIVER: 8160 LBS. AS 20,000 LBS. AT

.275 PER CWT -------------------------------------- $55.00

EAST: 8160 LBS. AT 1.63 PER CWT --------- 133.01

188.01 B/L 1504739-7/13/27, FT. LEAVENW., KANS., TO ROSSLYN, VA. TO CHICAGO: 17,390 LBS. AS 20,000 LBS. AT

.415 PER CWT ---------------------------- $83.00

EAST: 17,390 LBS. AT 1.215 PER CWT 211.29

294.29

445 OWNERS PERCENT OF H.H. GOODS EQUALS ---------------

17390 OF $294.29 ----------------------------------------- 7.53

195.54 $195.54

MAXIMUM GOVERNMENT PROPORTION BASED ON COST IF SHIPPED IN ONE LOT TOTAL AUTHORIZED WEIGHT 8605

------- OF $294.29--------------$145.62 OVER TOTAL WEIGHT SHIPPED 17390 - -------- AMOUNT PAYABLE FOR EXCESS ------------------------------------ 49.92

ON THE BASIS OF INFORMATION OBTAINED FROM THE QUARTERMASTER AT FORT LEAVENWORTH, KANS., THAT HAD THIS OFFICER RELEASED HIS ENTIRE SHIPMENT AT ONCE, A LARGER CAR WOULD HAVE BEEN ORDERED AND SHIPMENT WOULD HAVE BEEN AS A CARLOAD LOT, THE FINANCE OFFICER WAS ADVISED BY THE CLAIMS DIVISION, OCTOBER 1, 1928, THAT THE COMPUTATION SHOULD BE ON THE BASIS OF THE USE OF A 50-FOOT CAR INSTEAD OF ON THE BASIS OF A 40-FOOT CAR, THUS PRORATING THE COST OF TRANSPORTING MAJOR HUGHES' EFFECTS ON THE THEORETICAL CARLOAD WEIGHT OF 25,550 POUNDS, AS FOLLOWS:

32400 LBS. MIN. 50-FT. CAR AT 41 1/2 CENTS TO CHICAGO OR $134.46; TO ROSSLYN, VA., ACTUAL WT. 25,550 LBS. AT 2D CLASS $1.21 1/2 CWT., OR $310.43; TOTAL, $444.89.

THE TOTAL WEIGHT SHIPPED, 8605 LBS. FOR MAJ. HUGHES EQUALS 33.679 PERCENT OF THE TOTAL WEIGHT OF 25,550 LBS, WHICH PERCENT OF THE COST OF $444.89 YIELDS $149.83.

THE ACTUAL COST TO THE GOVERNMENT OF TRANSPORTING MAJ. HUGHES' PROPERTY IS $195.54, OR AN EXCESS COST TO THE UNITED STATES OF $45.71, WHICH AMOUNT SHOULD BE COLLECTED FROM THE OFFICER, DEPOSITED, AND THIS OFFICE ADVISED IN THE USUAL WAY.

IT APPEARS THAT THE COMPUTATION BY THE FINANCE OFFICER IS IN HARMONY WITH THE PRINCIPLE PREVIOUSLY USED BY THAT OFFICER AND ACCEPTED BY THE TRANSPORTATION SECTION, AND THE MATTER IS NOW SUBMITTED BY THE FINANCE OFFICE FOR THE ADOPTION OF A UNIFORM RULE WHICH WILL RECEIVE THE CONCURRENCE OF THIS OFFICE IN COMPUTING THE EXCESS CHARGES IN THIS AND SIMILAR FUTURE CASES.

THE DIFFERENCE IN THE AMOUNTS INDICATED FOR REIMBURSEMENT, $49.92, AND $45.71, RESPECTIVELY, IS NOT DUE TO A DIFFERENCE OF RATES APPLIED, BUT IS DUE TO THE USE OF A DIFFERENT COMMON DENOMINATOR ON WHICH TO PRORATE THE 8,605 POUNDS OF PERSONAL EFFECTS SHIPPED BY MAJOR HUGHES IN TWO LOTS INSTEAD OF ONE.

THE COMPUTATION BY THE FINANCE OFFICE USES AS THE COMMON DENOMINATOR 17,390 POUNDS, THE WEIGHT ACTUALLY CONTAINED IN THE CAR WHICH WAS SHIPPED, WHILE THE COMPUTATION USED BY THE TRANSPORTATION SECTION OF THIS OFFICE WAS BASED ON THE THEORY THAT A LARGER CAR WOULD HAVE BEEN ORDERED, AS STATED BY THE QUARTERMASTER AT FORT LEAVENWORTH, AND ADDED TO THE 17,390 POUNDS ACTUALLY INCLUDED IN THE CAR SHIPPED THE 8,160 POUNDS INCLUDED IN MAJOR HUGHES' SECOND SHIPMENT, THUS PRODUCING 25,550 POUNDS WHICH WAS USED AS THE COMMON DENOMINATOR ON WHICH TO PRORATE THE COST TO THE GOVERNMENT OF SHIPPING THE 8,605 POUNDS BELONGING TO MAJOR HUGHES HAD IT BEEN TENDERED FOR SHIPMENT WITH HIS FIRST LOT.

THE METHOD USED BY THE WAR DEPARTMENT IS THE APPLICATION OF THE PER HUNDRED COST ACTUALLY INCURRED FOR SHIPPING THE 445 POUNDS SHIPMENT FIRST RELEASED BY MAJOR HUGHES AS OBVIOUSLY THE BALANCE OF HIS CHANGE OF STATION ALLOWANCE COULD HAVE BEEN MOVED AT THE SAME RATE ON SUCH BASIS, THERE BEING NO QUESTION OF WHETHER ALL OF THE EFFECTS THEN FOR SHIPMENT COULD HAVE BEEN INCLUDED IN THE SAME CAR, NOR ANY THEORETICAL ASSUMPTION OF WHAT THE QUARTERMASTER MIGHT HAVE DONE IF HE HAD HAD THE ENTIRE 25,550 POUNDS FOR SHIPMENT.

COMPUTATION MUST NECESSARILY BE BASED ON FACTS AS THEY ACTUALLY EXIST. THE FIRST METHOD GIVES APPLICATION TO SUCH A PRINCIPLE. THE SECOND METHOD IS ON THE BASIS OF A THEORETICAL CARLOAD WEIGHT, AND THERE IS NO PRACTICABLE METHOD OF DETERMINING WHETHER SHIPMENT COULD IN A GIVEN CASE ACTUALLY HAVE BEEN SO MADE. THE RULE APPLIED BY THE WAR DEPARTMENT IN ITS COMPUTATION, BEING THAT CONTEMPLATED BY THE REGULATION WILL BE ADOPTED IN THE SETTLEMENT OF ACCOUNTS.