A-42113, JUNE 3, 1932, 11 COMP. GEN. 461

A-42113: Jun 3, 1932

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THE CONTRACTOR IS ENTITLED TO REIMBURSEMENT OF ONLY SUCH FREIGHT CHARGES AS THE GOVERNMENT WOULD HAVE BEEN REQUIRED TO PAY IF DELIVERY HAD BEEN MADE IN ACCORDANCE WITH THE TERMS OF THE CONTRACT AND SAID SHIPMENT TRANSPORTED ON A GOVERNMENT BILL OF LADING FROM STIPULATED SHIPPING POINT TO DESTINATION. BY WHICH WAS DISALLOWED THE SUM OF $57.66 OF ITS TOTAL CLAIM FOR $149.92 AS REIMBURSEMENT OF THE PREPAID FREIGHT CHARGES ON ONE CARLOAD OF GASOLINE FURNISHED THE UNITED STATES ARMY ENGINEER OFFICE. CONTRACTOR APPEARS TO HAVE COMPLETED ITS CONTRACT BY DELIVERY ON JUNE 27. PAYMENT THEREFOR WAS MADE. OF WHICH $92.26 WAS ALLOWED BY SAID SETTLEMENT OF MARCH 26. REPRESENTS A PART OF THE $163.55 RAILROAD FREIGHT CHARGES WHICH WERE PREPAID BY THE CONTRACTOR ON THE SAID TANK CAR GASOLINE SHIPMENT FROM HENDERSON.

A-42113, JUNE 3, 1932, 11 COMP. GEN. 461

CONTRACTS - DELIVERY - FREIGHT CHARGES WHERE A CONTRACT FOR A TANK CAR OF GASOLINE REQUIRES DELIVERY F.O.B. A DESIGNATED SHIPPING POINT, FOR TRANSPORTATION ON GOVERNMENT BILL OF LADING TO DESTINATION, AND THE CONTRACTOR DELIVERS SAID SHIPMENT F.O.B. DESTINATION, FREIGHT PREPAID, THE CONTRACTOR IS ENTITLED TO REIMBURSEMENT OF ONLY SUCH FREIGHT CHARGES AS THE GOVERNMENT WOULD HAVE BEEN REQUIRED TO PAY IF DELIVERY HAD BEEN MADE IN ACCORDANCE WITH THE TERMS OF THE CONTRACT AND SAID SHIPMENT TRANSPORTED ON A GOVERNMENT BILL OF LADING FROM STIPULATED SHIPPING POINT TO DESTINATION.

DECISION BY COMPTROLLER GENERAL MCCARL, JUNE 3, 1932:

THE COOPER PETROLEUM CO. APPLIED APRIL 8, 1932, FOR REVIEW OF SETTLEMENT NO. 0274237 DATED MARCH 26, 1932, BY WHICH WAS DISALLOWED THE SUM OF $57.66 OF ITS TOTAL CLAIM FOR $149.92 AS REIMBURSEMENT OF THE PREPAID FREIGHT CHARGES ON ONE CARLOAD OF GASOLINE FURNISHED THE UNITED STATES ARMY ENGINEER OFFICE, MEMPHIS, TENN., UNDER WAR DEPARTMENT CONTRACT (WITHOUT NUMBER) DATED JUNE 13, 1931.

UNDER THE PROVISIONS OF THE CONTRACT THE CONTRACTOR AGREED, FOR AND IN CONSIDERATION OF THE PAYMENT OF $0.0275 PER GALLON, TO DELIVER F.O.B. CARS EL DORADO, ARK., ONE TANK CAR OF GASOLINE (APPROXIMATELY 8,000 GALLONS), FOR SHIPMENT ON GOVERNMENT BILL OF LADING TO BRIDGE JUNCTION, ARK.

CONTRACTOR APPEARS TO HAVE COMPLETED ITS CONTRACT BY DELIVERY ON JUNE 27, 1931, OF ONE TANK CAR OF GASOLINE, CONTAINING 8,111 NET GALLONS, AND PAYMENT THEREFOR WAS MADE, JULY 21, 1931, ON VOUCHER NO. 892, IN THE SUM OF $220.82, THAT BEING THE FULL CONTRACT PRICE FOR THE QUANTITY OF GASOLINE DELIVERED, LESS 1 PERCENT DISCOUNT FOR PROMPT DELIVERY AMOUNTING TO $2.23.

THE CLAIM OF $149.92, OF WHICH $92.26 WAS ALLOWED BY SAID SETTLEMENT OF MARCH 26, 1932, REPRESENTS A PART OF THE $163.55 RAILROAD FREIGHT CHARGES WHICH WERE PREPAID BY THE CONTRACTOR ON THE SAID TANK CAR GASOLINE SHIPMENT FROM HENDERSON, TEX., TO BRIDGE JUNCTION, ARK.

THE FACTS RELATIVE TO THE CLAIM WERE REPORTED TO THIS OFFICE ON NOVEMBER 7, 1931, BY THE ARMY DISTRICT ENGINEER LOCATED AT MEMPHIS, TENN. (MAJ. BREHAN SOMERVELL, CORPS OF ENGINEERS, U.S.A.), TO BE AS FOLLOWS:

2. THE FACTS IN THE CASE ARE AS FOLLOWS:

A. THE CONTRACT PROVIDED FOR ONE TANK CAR OF GASOLINE, F.O.B. CAR AT POINT OF ORIGIN, FOR SHIPMENT ON A GOVERNMENT BILL OF LADING, TO BRIDGE JUNCTION, ARK.

B. THE CONTRACTOR WAS FURNISHED GOVERNMENT BILL OF LADING WE-41017, DATED JUNE 8, 1931, ON WHICH SHIPMENT WAS MADE OVER THE MISSOURI PACIFIC RAILROAD FROM EL DORADO, ARK., TO BRIDGE JUNCTION, ARK.

C. UPON RECEIPT OF THE GASOLINE, A REPRESENTATIVE SAMPLE WAS TAKEN FROM THE CAR AND TESTED IN ACCORDANCE WITH PARAGRAPHS 6 AND 7 OF THE SPECIFICATIONS READING AS FOLLOWS:

"6. GASOLINE PURCHASED UNDER THIS SPECIFICATION IS DESCRIBED AS "U.S. GOVERNMENT MOTOR GASOLINE" IN TECHNICAL PAPER 323 B OF THE BUREAU OF MINES, AND SHALL CONFORM TO THE CURRENT SPECIFICATIONS OF THE FEDERAL SPECIFICATIONS BOARD.

"7. UPON RECEIPT OF THE TANK CAR OF GASOLINE BY THE UNITED STATES, A REPRESENTATIVE SAMPLE WILL BE TAKEN FROM THE TANK CAR AND TESTED. GASOLINE NOT CONFORMING TO THE ABOVE SPECIFICATIONS WILL BE REJECTED.'

D. AS THE TEST REVEALED THAT THE GASOLINE WAS UNDER THE SPECIFICATIONS, THE CAR WAS REJECTED AND THE CONTRACTOR ADVISED TO MAKE IMMEDIATE SHIPMENT OF ANOTHER CAR OF GASOLINE BY PREPAID FREIGHT TO REPLACE THE REJECTED CAR, WHICH HE DID, AS EVIDENCED BY THE RECEIPTED FREIGHT BILL WHICH IS ATTACHED IN SUPPORT OF HIS CLAIM. IN THIS CONNECTION, IT WILL BE NOTED THAT THE SHIPMENT ORIGINATED AT HENDERSON, TEX., INSTEAD OF EL DORADO, ARK., AS STATED IN THE CONTRACT, THE FORMER BEING LOCATED AT A GREATER DISTANCE FROM BRIDGE JUNCTION, ARK., THAN THE LATTER PLACE. IT WILL ALSO BE NOTED THAT THE AMOUNT OF FREIGHT PAID, NAMELY $163.55, IS IN EXCESS OF THE CONTRACTOR'S CLAIM OF $149.92, WHICH WAS UNDERSTOOD TO BE THE COMMERCIAL FREIGHT RATE ON THE CAR FROM EL DORADO, ARK., TO BRIDGE JUNCTION, ARK.

E. THE REJECTED CAR OF GASOLINE WAS DIVERTED BY THE SHIPPER TO ANOTHER POINT FORM BRIDGE JUNCTION, ARK., AND IN ORDER TO AVOID THE PAYMENT OF A LOCAL TARIFF FROM BRIDGE JUNCTION, ARK., TO ITS FINAL DESTINATION, THE CONTRACTOR ALSO ASSUMED THE PAYMENT OF FREIGHT CHARGES ON THE CAR OVER THAT PORTION OF THE ROUTE ON WHICH IT MOVED UNDER A GOVERNMENT BILL OF LADING.

F. THE CARRIER, MISSOURI-PACIFIC RAILROAD CO., HAS WAIVED CLAIM FOR FREIGHT CHARGES ON GOVERNMENT BILL OF LADING WE-41017, AS INDICATED BY A STATEMENT TO THIS EFFECT ON THE FACE OF THE RELATED SHIPPING ORDER WHICH IS INCLOSED HEREWITH. THE ORIGINAL BILL OF LADING, ALTHOUGH TENDERED TO THE CARRIER, WAS NEVER ACCEPTED, AND IT WAS, THEREFORE, CANCELLED ON SEPT. 28. 1931.

THE COMMERCIAL FREIGHT RATE ON GASOLINE, AS AUTHORIZED BY THE SOUTHWESTERN LINES TARIFF 35-T, PAGE 283, FROM EL DORADO TO BRIDGE JUNCTION, ARK., IS $0.275 PER 100 POUNDS, APPLICABLE OVER THE MISSOURI PACIFIC RAILROAD TO LITTLE ROCK, AND THE CHICAGO, ROCK ISLAND AND PACIFIC RAILWAY FROM LITTLE ROCK TO BRIDGE JUNCTION. AS BOTH OF SAID RAILROADS WERE CONSTRUCTED WITH LAND-GRANT AIDS FROM THE GOVERNMENT, ALL GOVERNMENT SHIPMENTS OVER SAID RAILROADS ARE ENTITLED TO A LAND GRANT DEDUCTION OF 38.458 PERCENT FROM THE COMMERCIAL FREIGHT RATES.

THE GASOLINE FURNISHED UNDER THE CONTRACT WAS SHIPPED FROM HENDERSON, TEX., TO BRIDGE JUNCTION, ARK., AND CONTRACTOR PREPAID THE FREIGHT CHARGES THEREON, AMOUNTING TO $163.55. UNDER THE TERMS OF THE CONTRACT, THE SAID GASOLINE SHIPMENT SHOULD HAVE BEEN DELIVERED TO THE GOVERNMENT, F.O.B. CARS, EL DORADO, ARK., FOR TRANSPORTATION ON GOVERNMENT BILL OF LADING TO BRIDGE JUNCTION, ARK. HAD THIS BEEN DONE, THE AMOUNT OF FREIGHT CHARGES WHICH THE GOVERNMENT WOULD HAVE BEEN REQUIRED TO PAY ON SAID TANK CAR SHIPMENT FROM EL DORADO, TO BRIDGE JUNCTION, ARK., WOULD BE $0.275 PER 100 POUNDS, LESS THAN THE LAND GRANT DEDUCTION OF 38.458 PERCENT, AMOUNTING TO $0.10576, OR $0.16924 PER 100 POUNDS. THE GROSS WEIGHT OF SAID SHIPMENT IS SHOWN BY THE BILL OF LADING TO BE 54,516 POUNDS. THE AMOUNT OF FREIGHT FOR WHICH THE GOVERNMENT WOULD BE LIABLE, HAD SAID GASOLINE BEEN SHIPPED BY GOVERNMENT BILL OF LADING FROM EL DORADO TO BRIDGE JUNCTION, ARK., WOULD BE $92.26.

IN VIEW OF THE FACTS AND CIRCUMSTANCES, AND THE TERMS OF THE CONTRACT, AS HEREINABOVE SHOWN, THERE IS NO AUTHORITY TO PAY TO THE CONTRACTOR ANY SUM IN EXCESS OF THE $92.26 PAID TO IT UNDER SAID SETTLEMENT OF MARCH 26, 1932, AS REIMBURSEMENT OF THE FREIGHT CHARGES IT WAS REQUIRED TO PAY ON THE INVOLVED GASOLINE SHIPMENT.

ACCORDINGLY, UPON REVIEW, THE SETTLEMENT OF MARCH 26, 1932, MUST BE AND IS SUSTAINED.