A-61356, DECEMBER 30, 1935, 15 COMP. GEN. 568

A-61356: Dec 30, 1935

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

1935: REFERENCE IS MADE TO LETTER DATED NOVEMBER 8. WAS PAID $774.90 BY MAJ. * * * WERE PUBLISHED IN ERROR AND WERE TO BE CANCELLED RETRO EFFECTIVE TO THE EFFECTIVE DATE OF SUPPLEMENT NUMBER 42. IN ITEM NO. 1597-A (1579-A) ON PAGE 7 OF SUPPLEMENT OF NO. 42 ARE HEREBY CANCELED. * * * RETRO-EFFECTIVE APRIL 28. DISALLOWED THE CLAIM FOR $155.48 BECAUSE THE PAYMENT OF $774.90 WAS COMPUTED IN ACCORDANCE WITH "PUBLISHED DIVISIONS IN EFFECT AT TIME OF MOVEMENT. THE CARRIER REQUESTED REVIEW ASSERTING THAT IT WAS "WITHOUT AUTHORITY TO ACCEPT SUCH A RULING. " THAT "SUCH A DIVISION SHEET WITH A RETROEFFECT IS ACCEPTED BY ALL CARRIERS. " AND THAT IT WAS "NOT UNDERSTOOD WHY THE SAME BASIS SHOULD NOT BE USED BY" THIS OFFICE.

A-61356, DECEMBER 30, 1935, 15 COMP. GEN. 568

TRANSPORTATION - GOVERNMENT SHIPMENT INVOLVING EQUALIZATION AGREEMENTS AND COMMERCIAL DIVISIONS - RATE CANCELLATION EFFECT PAYMENT FOR A GOVERNMENT SHIPMENT OVER A ROUTE OTHER THAN LAND-GRANT AIDED BECAUSE OF CARRIER'S EQUALIZATION AGREEMENT AND THE PUBLISHED COMMERCIAL DIVISION IN EFFECT OVER THE LAND-GRANT-AIDED ROUTE THROUGH A PARTICULAR POINT MAY NOT BE MADE ON A BASIS ALLEGED TO BE APPLICABLE BECAUSE OF THE CANCELLATION RETROACTIVELY PRIOR TO THE DATE OF SHIPMENT, OF THE FORMER DIVISION BASIS NOR BECAUSE OF THE ALLEGED NONEXISTENCE OF SAID DIVISION BASIS AT THE TIME OF SHIPMENT DUE TO A PRIOR CANCELLATION, NOTICE OF THE ALLEGED CANCELLATION NOT HAVING BEEN FURNISHED, PARTICULARLY WHERE THE ALLEGED CANCELLATION PRIOR TO DATE OF SHIPMENT DOES NOT APPEAR TO EFFECT THE CANCELLATION CLAIMED.

COMPTROLLER GENERAL MCCARL TO THE AUDITOR OF REVENUES, SEABOARD AIR LINE RAILWAY, DECEMBER 30, 1935:

REFERENCE IS MADE TO LETTER DATED NOVEMBER 8, 1935, YOUR FILE RD-71 AD-34 -4, PERTAINING TO THE SHIPMENT AUGUST 15, 1933, FROM NORWOOD, OHIO, TO SAVANNAH, GA., UNDER BILL OF LADING A-188723, DATED JULY 11, 1933.

THE SEABOARD AIR LINE RAILWAY CLAIMED (BILL AD-34-4-A) $930.38 FOR THE TRANSPORTATION SERVICE COMPUTED BY APPLYING A NET RATE OF $1.40532 PER 100 POUNDS, THE BASIS THEREFOR NOT BEING INDICATED, AND WAS PAID $774.90 BY MAJ. W. O. RAWLS, ARMY DISBURSING OFFICER, ON VOUCHER 5357, MARCH 9, 1934, COMPUTED BY APPLYING THE COMMERCIAL RATE OF $1.64 PER 100 POUNDS AS OVER A LAND-GRANT-AIDED ROUTE THROUGH CINCINNATI, OHIO, CHATTANOOGA, TENN., BIRMINGHAM, ALA., AND RIVER JUNCTION, FLA., AND DIVIDING IT IN ACCORDANCE WITH PROVISIONS OF SOUTHERN RAILWAY PERCENTAGE ISSUE NO. 8970 AND PERCENTAGE DIVISION NO. 2-A AND LOUISVILLE AND NASHVILLE RAILROAD PERCENTAGE SHEET NO. 29-A.THE CARRIER CLAIMED (BILL AD-34-4-A-S) THE DIFFERENCE OF $155.48 ASSERTING THE PROVISIONS OF PERCENTAGE SHEET NO. 29- A FOR A DIVISION OVER RIVER JUNCTION, FLA., OF REVENUE ACCRUING BETWEEN BIRMINGHAM AND SAVANNAH--

* * * WERE PUBLISHED IN ERROR AND WERE TO BE CANCELLED RETRO EFFECTIVE TO THE EFFECTIVE DATE OF SUPPLEMENT NUMBER 42.

ITEM 1579 ON PAGE 46 OF PERCENTAGE SHEET NO. 29-A NAMED PERCENTAGES FOR DIVIDING TO AND BEYOND RIVER JUNCTION REVENUE ACCRUING BETWEEN BIRMINGHAM AND SAVANNAH, BUT SUPPLEMENT 44 TO THIS PUBLICATION ISSUED MARCH 19, 1934, 7 MONTHS AFTER DATE OF SHIPMENT, PROVIDED---

PERCENTAGES PUBLISHED FROM BIRMINGHAM, ALA., TO SAVANNAH, GA., IN ITEM NO. 1597-A (1579-A) ON PAGE 7 OF SUPPLEMENT OF NO. 42 ARE HEREBY CANCELED.

* * * RETRO-EFFECTIVE APRIL 28, 1933.

SETTLEMENT T-92426 1/2, DATED AUGUST 16, 1934, DISALLOWED THE CLAIM FOR $155.48 BECAUSE THE PAYMENT OF $774.90 WAS COMPUTED IN ACCORDANCE WITH "PUBLISHED DIVISIONS IN EFFECT AT TIME OF MOVEMENT," AND "THE RETROEFFECT OF SUPPLEMENT 44 * * * CANNOT BE RECOGNIZED.' THE CARRIER REQUESTED REVIEW ASSERTING THAT IT WAS "WITHOUT AUTHORITY TO ACCEPT SUCH A RULING; " THAT "SUCH A DIVISION SHEET WITH A RETROEFFECT IS ACCEPTED BY ALL CARRIERS; " AND THAT IT WAS "NOT UNDERSTOOD WHY THE SAME BASIS SHOULD NOT BE USED BY" THIS OFFICE. IN DECISION OF APRIL 12, 1935, IT WAS POINTED OUT THAT PERCENTAGE SHEET NO. 29-A WAS ISSUED MORE THAN 7 YEARS PRIOR TO THE DATE OF THE SHIPMENT AND FILED IN THIS OFFICE AS SHOWING THE BASIS TO BE APPLIED IN COMPUTING NET RATES OVER THE RIVER JUNCTION ROUTE FROM BIRMINGHAM TO SAVANNAH; THAT SUPPLEMENTS TO PERCENTAGE SHEET NO. 29-A AS THEREAFTER FILED IN THIS OFFICE SHOWED THAT ON SEVERAL OCCASIONS THIS BASIS HAD BEEN THE SUBJECT OF CONSIDERATION ON THE PART OF THE CARRIERS AND OF AT LEAST ONE CORRECTION BUT CLEARLY INDICATED THAT THE ORIGINAL PERCENTAGES WERE IN EFFECT BOTH ON AND SUBSEQUENT TO THE DATE OF THIS SHIPMENT; THAT THIS DIVISION BASIS WAS NOT QUESTIONED UNTIL AFTER THE TRAFFIC WAS SECURED; AND THAT IT WAS NOT UNTIL 7 MONTHS AFTER THE DATE OF SHIPMENT THAT THE SAME GENERAL FREIGHT AGENT OF THE LOUISVILLE AND NASHVILLE RAILROAD CO., WHO ISSUED THE ORIGINAL PUBLICATION, ISSUED (NEARLY 9 YEARS LATER) A SUPPLEMENT THERETO PURPORTING TO CANCEL, AS OF ALMOST A YEAR PRIOR TO THE ISSUANCE OF THE LATER PUBLICATION, THE DIVISION BASIS WHICH HAD BEEN HELD OUT AS BEING APPLICABLE TO COMPUTE THE REDUCED RATE TO WHICH THE UNITED STATES WAS ENTITLED UNDER THE CONDITIONS OF THE LAND-GRANT STATUTES. THE DECISION SET FORTH, ALSO, THE RULE APPLIED BY THIS OFFICE, AND AT CONSIDERABLE LENGTH THE REASONS FOR ITS APPLICATION IN THE SETTLEMENT OF CLAIMS INVOLVING THIS LAST SITUATION AND IN ACCORDANCE WITH A BASIS SET FORTH IN DETAIL CONCLUDED THAT THE CARRIER WAS OVERPAID $9.33.

THE CARRIER REQUESTED RECONSIDERATION, ASSERTING THE SETTLEMENT "APPLIED L. AND N. PERCENTAGE ISSUE 27-A" AND,"BY REFERRING TO PAGE 105 OF THAT ISSUE, NOTE 3, PARAGRAPH "E" YOU WILL FIND THAT IT PROVIDES THAT THE BREAK MUST BE MADE OVER MONTGOMERY, ALA. THERE ARE NO PERCENTS PUBLISHED FROM MONTGOMERY, ALA., TO DESTINATION VIA RIVER JUNCTION.' IN DECISION OF JUNE 11, 1935, IT WAS SET FORTH---

* * * THE CARRIER'S CLAIM FOR THE DIFFERENCE OF $155.48 WAS DISALLOWED IN SETTLEMENT T-92426 1/2, DATED AUGUST 16, 1934, THE REASON SET FORTH THEREIN FOR THIS ACTION NOT BEING DEPENDENT UPON ANY PROVISION OF "L. AND N. PERCENTAGE ISSUE 27-A.' IN OTHER WORDS, IT DOES NOT APPEAR FROM THE RECORD THAT THE PROVISIONS OF THIS LATTER PUBLICATION WERE APPLIED IN ANY PART IN COMPUTING THE AMOUNT PAID OR TO SUPPORT THE SUBSEQUENT DISALLOWANCE AND, ACCORDINGLY, THE BASIS FOR THE PRESENT REFERENCE THERETO IS NOT APPARENT.

THE CARRIER HAS REQUESTED STILL FURTHER CONSIDERATION OF THE MATTER SETTING FORTH IN ITS LATEST SUBMISSION---

FURTHER INVESTIGATION DEVELOPS THAT SHIPMENTS IN QUESTION MOVED IN AUGUST 1933. SUPPLEMENT NO. 39 TO L. AND N. PERCENTAGE ISSUE 29-A CANCELS PERCENTS AS OF APRIL 28, 1933. SUPPLEMENT 42 TO THIS ISSUE RESTORED THESE FACILITIES AS OF NOVEMBER 1, 1933, THEREFORE, SHIPMENTS IN QUESTION ACTUALLY MOVED DURING THE TIME THERE WERE NO PERCENTAGES PUBLISHED FROM BIRMINGHAM, ALA., TO SAVANNAH, GA., VIA RIVER JUNCTION.

SUPPLEMENT 39, PURPORTEDLY ISSUED APRIL 28, 1933, WAS NOT THEN OR THEREAFTER FILED IN THIS OFFICE, AND IN RESPONSE TO REQUEST FOR A COPY THEREOF THE ISSUING CARRIER ADVISED THAT IT HAD BEEN CANCELED AND COPY COULD NOT BE FURNISHED. NOR DID THE CLAIMANT HERE FURNISH A COPY OF THE SUPPLEMENT UNTIL SEPTEMBER 27, 1935. IN SHORT, THE SITUATION IS THAT THE TWO CARRIERS IN THE LAND-GRANT-AIDED ROUTE THROUGH RIVER JUNCTION FILED IN THIS OFFICE ONLY SUCH SUPPLEMENTS TO PERCENTAGE SHEET NO. 29-A AS SHOWED AN AGREED BASIS FOR DIVIDING REVENUE AS TO AND BEYOND THIS JUNCTION POINT AND WHICH ON THE DATE OF THIS SHIPMENT SPECIFICALLY INDICATED (SEE SUPPLEMENT 42) THAT THIS BASIS WAS THEN IN EFFECT AND THUS AVAILABLE IN COMPUTING NET RATES FOR THE TRANSPORTATION OF UNITED STATES PROPERTY. WAS IN THIS SITUATION THAT THIS SHIPMENT WAS ROUTED BY THE SHIPPING OFFICER SO AS TO SECURE TO THE SEABOARD AIR LINE RAILWAY A LONG HAUL OVER A ROUTE OTHER THAN THE LAND-GRANT-AIDED ROUTE BECAUSE OF THE CARRIER'S AGREEMENT AS SET FORTH IN PARAGRAPH 27 (A) OF CIRCULAR NO. 3, APRIL 26, 1932 (OFFICE OF THE QUARTERMASTER GENERAL, WAR DEPARTMENT) TO---

* * * EQUALIZE * * * THE LOWEST NET RATE * * * DERIVED THROUGH DEDUCTION ACCOUNT OF LAND-GRANT DISTANCES ON RAILROADS SOUTH OF THE OHIO AND POTOMAC RIVERS AND EAST OF THE MISSISSIPPI RIVER * *

AND BECAUSE PERCENTAGE SHEET NO. 29-A, AND SUPPLEMENTS THERETO AS FILED ON THE DATE OF SHIPMENT, HELD OUT THAT "COMMERCIAL" DIVISIONS WERE IN EFFECT OVER THE LAND-GRANT-AIDED ROUTE THROUGH RIVER JUNCTION, THUS MEETING THE REQUIREMENT FOR EQUALIZATION AS SET FORTH IN PARAGRAPH 27 (C) OF CIRCULAR NO. 3. THE AVAILABILITY OF THE DIVISION BASIS SO FILED WAS NOT QUESTIONED UNTIL AFTER THE TRAFFIC WAS SECURED AND THEN (AND NOW) ONLY FOR THE REASON THAT THE PUBLICATION WAS "IN ERROR" AND WAS "TO BE CANCELED RETROEFFECTIVE TO" A DATE PRECEDING THE SHIPPING DATE. NOR, APPARENTLY, UNTIL APPROXIMATELY 15 MONTHS AFTER THE PAYMENT BY THE DISBURSING OFFICER WAS ANYTHING FOUND BY THE CARRIER (IN THIS INSTANCE SUPPLEMENT 39 PUBLISHED PRIOR TO THE SHIPPING DATE) THAT MIGHT SHOW COLOR OF SUPPORT FOR THE CONTENTION THAT THE BASIS FILED IN THIS OFFICE WAS NOT STILL IN EFFECT ON THAT DATE IN CONNECTION WITH COMMERCIAL TRAFFIC. CONCERNING THE PROVISIONS OF SUPPLEMENT 39, HOWEVER, IT MUST BE EMPHASIZED IN ANY EVENT THAT A COPY OF THIS SUPPLEMENT WAS NOT FILED UNTIL APPROXIMATELY 29 MONTHS AFTER ISSUANCE AND THAT DURING THE PERIOD MAY 24, 1926--- MARCH 19, 1934, THAT IS, BEGINNING WITH THE ISSUANCE OF PERCENTAGE SHEET NO. 29 A AND CONTINUING TO THE EFFECTIVE DATE OF SUPPLEMENT 44 THERETO, NOTHING WAS FILED IN THIS OFFICE TO INDICATE THAT NET RATES IN CONNECTION WITH TRAFFIC OVER THE SEABOARD AIR LINE RAILWAY WERE NOT FOR COMPUTATION AS OVER THE RIVER JUNCTION ROUTE.

FURTHERMORE, APART FROM ALL ELSE SET FORTH HEREIN, IT IS BY NO MEANS CLEAR THAT SUPPLEMENT 39 WOULD OPERATE IN FAVOR OF THE CARRIER'S CLAIM. ITEM 1579 ON PAGE 46 OF PERCENTAGE SHEET NO. 29-A NAMED PERCENTAGES TO BE APPLIED IN DIVIDING REVENUE OR RATES FROM BIRMINGHAM TO SAVANNAH VIA THE L. AND N.R.R. TO RIVER JUNCTION, THENCE "A.C.L.R.R. OR S.A.L.RY.' PERCENTAGE SHEET SUPPLEMENT 3, EFFECTIVE AS OF NOVEMBER 10, 1926, EMBODIED AN ITEM 1579-A--- "CANCELS ITEM NO. 1579, PAGE 46, OF P.S., " BUT NAMING THE SAME PERCENTAGES FROM BIRMINGHAM TO SAVANNAH VIA L. AND N.R.R. TO RIVER JUNCTION THENCE "A.C.L. OR S.A.L.RY.' PERCENTAGE SHEET SUPPLEMENT 4, ISSUED FEBRUARY 1, 27,"EFFECTIVE FEBRUARY 1, 1937" (1927?), REPUBLISHED ITEM 1579-A WITHOUT CHANGE. PERCENTAGE SHEET SUPPLEMENTS 7, 14, 19, 27, 28 WERE ISSUED DURING THE PERIOD JANUARY 11, 1928--- FEBRUARY 19, 1931, AND FORWARDED TO THIS OFFICE, ALL SETTING FORTH THAT SUPPLEMENT 4 WAS STILL IN EFFECT WITHOUT CHANGE IN THE ITEM 1579-A PERCENTAGES. NO FURTHER SUPPLEMENT WAS FILED IN THIS OFFICE UNTIL APRIL 3, 1934, WHEN SUPPLEMENT 42, ISSUED AND EFFECTIVE AS OF NOVEMBER 1, 1933 "/EXCEPT AS NOTED)" WAS RECEIVED SETTING FORTH THAT IT CONTAINED "ALL CHANGES FROM THE ORIGINAL PERCENTAGE SHEET.' ON PAGE 2 OF SUPPLEMENT 42 IT WAS PROVIDED---

PERCENTAGES PUBLISHED FROM BIRMINGHAM, ALA., TO SAVANNAH, GA., VIA RIVER JUNCTION, FLA. IN CONNECTION WITH THE S.A.L.RY., ONLY, PUBLISHED IN ITEM NO. 1579 ON PAGE 46 OF THE P.S., ARE HEREBY CANCELED. L. AND N. 004-65 (2 -27-33).

BUT ON PAGE 7 OF SUPPLEMENT 42 IN ITEM NO. 1579-A "CANCELS 1579" SPECIFIC PERCENTAGES WERE NAMED FROM BIRMINGHAM TO SAVANNAH IN CONNECTION WITH THE L. AND N.R.R. TO RIVER JUNCTION THENCE ,A.C.L. OR S.A.L.' THUS SUPPLEMENTS 3 AND 4 IN ITEM 1579-A SHOW THE CANCELLATION IN WHOLE, AS OF NOVEMBER 26, 1926, OF ITEM 1579 ON PAGE 46 OF PERCENTAGE SHEET NO. 29-A BY ITEM 1579-A BUT IN THE LATTER ITEM ARE STATED THE SAME PERCENTAGES OVER THE RIVER JUNCTION ROUTE IN CONNECTION WITH EITHER THE A.C.L.R.R. OR S.A.L.RY. AS WERE STATED IN THE CANCELED ITEM, WHILE SUPPLEMENT 42 LIKEWISE SETTING FORTH THAT IT CANCELED ITEM 1579 BUT ONLY INSOFAR AS RELATED TO THE S.A.L.RY. AT THE SAME TIME PUBLISHED (PAGE 7) AN ITEM NUMBERED 1579-A (AS IN SUPPLEMENTS 3 AND 4) AS CANCELING ITEM 1579 AND SPECIFICALLY STATING PERCENTAGES AS IN CONNECTION WITH THE S.A.L.RY. THIS SITUATION CONTINUED UNTIL MARCH 19, 1934, WHEN PERCENTAGE SHEET SUPPLEMENT 44 WAS ISSUED PROVIDING---

PERCENTAGES PUBLISHED FROM BIRMINGHAM, ALA. TO SAVANNAH, GA. IN ITEM 1597 -A (1579-A?) ON PAGE 7 OF SUPPLEMENT NO. 42 ARE HEREBY CANCELED.

* * * RETRO-EFFECTIVE APRIL 28, 1933.

IN OTHER WORDS, PERCENTAGES SPECIFICALLY PUBLISHED IN SUPPLEMENT 42 ISSUED NOVEMBER 1, 1933, WERE CANCELED BY A SUBSEQUENT SUPPLEMENT ISSUED APPROXIMATELY 5 MONTHS LATER WHICH PURPORTED TO EFFECT THE CANCELLATION OF SUCH PERCENTAGES AS OF A DATE APPROXIMATELY 6 MONTHS PRIOR TO THEIR PUBLICATION.

IT IS TO BE NOTED, HOWEVER, IN ANY EVENT THAT NONE OF THE LATER SUPPLEMENTS FORWARDED TO THIS OFFICE FOLLOWING SUPPLEMENT 4 MAKE ANY REFERENCE TO THE PROVISIONS OF ITEM 1579-A AS PUBLISHED THEREIN AND CONCERNING THIS ITEM THE GENERAL FREIGHT AGENT OF THE LOUISVILLE AND NASHVILLE RAILROAD CO. REPORTED BY LETTER DATED NOVEMBER 1, 1935 (FILE FED.-004-65/---

* * * THE PERCENTAGES IN ITEM 1579-A, AS OUTLINED IN SUPPLEMENT NO. 4, WERE BROUGHT FORWARD IN SUPPLEMENT NO. 33, EFFECTIVE SEPTEMBER 8, 1931, WHICH SUPPLEMENT IN TURN WAS CANCELED BY SUPPLEMENT NO. 42. I WILL BE UNABLE TO FURNISH YOU WITH COPY OF SUPPLEMENT NO. 33 AS OUR SUPPLY OF SAME IS EXHAUSTED, HOWEVER, I CAN SEE NO NECESSITY FOR YOU HAVING A COPY OF THIS SHEET AS ALL THE PERCENTAGES IN THAT SUPPLEMENT ARE EITHER CANCELED OR BROUGHT FORWARD.

* * * THE PERCENTAGES AS OUTLINED IN ITEM 1579-A, WERE IN EFFECT DURING THE PERIOD UP TO APRIL 28, 1933, ON WHICH DATE THEY WERE CANCELLED AS PER SUPPLEMENT NO. 44, EFFECTIVE MARCH 19, 1934, WITH A PROVISO THAT THE CANCELLATION IS RETRO-EFFECTIVE APRIL 28, 1933.

SUPPLEMENT 39, UPON WHICH THE CARRIER'S PRESENT SUBMISSION IS BASED, SETS FORTH THAT SUPPLEMENT 33 WAS IN EFFECT AS OF APRIL 28, 1933, BUT DOES NOT MAKE ANY CHANGE IN THE PROVISIONS OF ITEM 1579-A REPORTED BY THE ISSUING CARRIER AS BEING CARRIED FORWARD IN SUPPLEMENT 33 FROM SUPPLEMENT 4. AS SUPPLEMENT 42 SETS FORTH THAT SUPPLEMENT 33 WAS NOT CANCELED UNTIL NOVEMBER 1, 1933, AND THE ISSUING CARRIER'S REPORT IS THAT THE ITEM 1579-A PERCENTAGES WERE CANCELED BY SUPPLEMENT 44, IT WOULD SEEM THAT PUBLICATION OF THE PERCENTAGES IN QUESTION DID NOT LAPSE APRIL 28, 1933, TO BE "RESTORED AS OF NOVEMBER 1, 1933," AS THE CLAIMANT HERE NOW ASSERTS, BUT ON THE CONTRARY WAS CARRIED FORWARD IN SUPPLEMENTS 33 AND 42, THAT IS, CONTINUOUSLY DURING THE PERIOD FEBRUARY 1, 1927--- MARCH 19, 1934. THE RETROEFFECTIVE APPLICATION PROVISION OF SUPPLEMENT 44 ISSUED ON THIS LATTER DATE AND THE EFFECT TO BE GIVEN IT IN CONNECTION WITH GOVERNMENT SHIPMENTS WERE CONSIDERED AT LENGTH IN THE DECISION OF APRIL 12, 1935, AND NOTHING APPEARS IN THE PRESENT MATTER TO WARRANT MODIFICATION OF THE RULE THERE SET FORTH. UPON FURTHER CONSIDERATION OF THIS CASE IT DOES NOT APPEAR THAT THIS OFFICE WOULD BE JUSTIFIED IN REACHING A DIFFERENT CONCLUSION THAN HERETOFORE, AND ACCORDINGLY THE CARRIER SHOULD REMIT $9.33 WITHIN 30 DAYS FROM THE DATE HEREOF. OTHERWISE AN EQUIVALENT DEDUCTION WILL BE MADE IN SETTLEMENT OF AN OPEN ACCOUNT.