A-82869, JANUARY 26, 1937, 16 COMP. GEN. 680

A-82869: Jan 26, 1937

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CONSIGNOR OR CONSIGNEE WHERE THE COST OF PICK-UP AND DELIVERY SERVICE IS INCLUDED. WITH ALLOWANCE TO THE CONSIGNOR OR CONSIGNEE IF SAID SERVICE IS PERFORMED BY THEM. WHERE THE SERVICES ARE PERFORMED BY THE GOVERNMENT. AN ALLOWANCE IS MADE THEREFOR. IT WILL BE NOTED THAT IN COMPUTING THE AMOUNT PAYABLE THE CARRIER DEDUCTS THE PICKUP AND DELIVERY ALLOWANCES FROM THE GROSS CHARGES. OR FROM THE NET CHARGES AFTER LAND GRANT DEDUCTIONS HAVE BEEN MADE FROM THE GROSS CHARGES. YOUR DECISION ON THIS POINT IS REQUESTED. IS FOR CHARGES FOR THE TRANSPORTATION DURING AUGUST 1936 OF VARIOUS LESS-THAN-CARLOAD FREIGHT SHIPMENTS FROM AND TO POINTS IN ALABAMA AND FLORIDA ON THE LOUISVILLE AND NASHVILLE RAILROAD.

A-82869, JANUARY 26, 1937, 16 COMP. GEN. 680

TRANSPORTATION - PICK-UP AND DELIVERY ALLOWANCES - LAND-GRANT DEDUCTIONS - SERVICES PERFORMED BY CARRIER, CONSIGNOR OR CONSIGNEE WHERE THE COST OF PICK-UP AND DELIVERY SERVICE IS INCLUDED, AND NOT SHOWN SEPARATELY, IN THE FREIGHT TRANSPORTATION RATE INVOLVED, WITH ALLOWANCE TO THE CONSIGNOR OR CONSIGNEE IF SAID SERVICE IS PERFORMED BY THEM, THE CHARGE FOR TRANSPORTATION MUST BE TREATED AS AN ENTIRETY WHERE THE CARRIER PERFORMS THE SERVICE AND LAND-GRANT DEDUCTION MADE ON THE BASIS OF THE TARIFF RATE INCLUDING SAID SERVICES, BUT, WHERE THE SERVICES ARE PERFORMED BY THE GOVERNMENT, AND AN ALLOWANCE IS MADE THEREFOR, THE LAND-GRANT DEDUCTION SHOULD BE MADE FROM THE THROUGH CHARGE LESS THE ALLOWANCE.

ACTING COMPTROLLER GENERAL ELLIOTT TO MAJOR E. C. MORTON, UNITED STATES ARMY, JANUARY 26, 1937:

THERE HAS BEEN RECEIVED BY OFFICE CHIEF OF FINANCE REFERENCE DATED JANUARY 5, 1937, YOUR REQUEST OF DECEMBER 29, 1936, AS FOLLOWS:

1. THE ATTACHED BILL OF THE LOUISVILLE AND NASHVILLE R.R. CO., IN AMOUNT OF $8.29 HAS BEEN PRESENTED TO ME, A DISBURSING OFFICER OF THE UNITED STATES, FOR PAYMENT.

2. THIS BILL INCLUDES ALLOWANCES FOR BOTH PICKUP AND DELIVERY SERVICES PERFORMED BY THE GOVERNMENT, AS SHOWN ON THE BILLS OF LADING ATTACHED THERETO.

3. IT WILL BE NOTED THAT IN COMPUTING THE AMOUNT PAYABLE THE CARRIER DEDUCTS THE PICKUP AND DELIVERY ALLOWANCES FROM THE GROSS CHARGES, THEN DEDUCTING THE LAND GRANT FROM THE REMAINDER.

4. I AM IN DOUBT AS TO WHETHER OR NOT ALLOWANCES FOR PICKUP AND DELIVERY SHOULD BE MADE FROM THE GROSS CHARGES PRIOR TO MAKING DEDUCTIONS FOR LAND GRANT, OR FROM THE NET CHARGES AFTER LAND GRANT DEDUCTIONS HAVE BEEN MADE FROM THE GROSS CHARGES, AND YOUR DECISION ON THIS POINT IS REQUESTED.

THE VOUCHER WITH YOUR SUBMISSION, LOUISVILLE AND NASHVILLE RAILROAD CO. BILL 19174-50, IS FOR CHARGES FOR THE TRANSPORTATION DURING AUGUST 1936 OF VARIOUS LESS-THAN-CARLOAD FREIGHT SHIPMENTS FROM AND TO POINTS IN ALABAMA AND FLORIDA ON THE LOUISVILLE AND NASHVILLE RAILROAD, AND IT IS INDICATED FROM THE NOTATIONS APPEARING ON THE BILLS OF LADING ATTACHED TO THE VOUCHER, THAT THE PICK-UP SERVICE AT ORIGIN AND THE DELIVERY SERVICE AT DESTINATION WAS BY THE GOVERNMENT.

THE TARIFF OF THE LOUISVILLE AND NASHVILLE RAILROAD, I.C.C. NO. 5, ISSUED BY C. D. QUINN, AGENT, CONTAINING "RULES, CHARGES, AND ALLOWANCES FOR THE PICK-UP AND/OR DELIVERY OF LESS-THAN-CARLOAD FREIGHT * * * AT STATIONS NAMED * * * ON * * * LOUISVILLE AND NASHVILLE RAILROAD * * * IN THE STATES OF ALABAMA, FLORIDA * * *" AND EFFECTIVE FOR THE PERIOD OF THE SERVICE, PROVIDES THAT THE CARRIER WILL TO THE EXTENT INDICATED PERFORM PICK-UP AND/OR DELIVERY SERVICES AT STATIONS MENTIONED IN THE TARIFF OR MAKE ALLOWANCES TO CONSIGNOR FOR THE DELIVERY OF FREIGHT TO CARRIER'S DEPOT AND TO CONSIGNEE FOR THE ACCEPTANCE OF FREIGHT AT CARRIER'S DEPOT.

THE TARIFF PROVIDES IN PART AS FOLLOWS:

ITEM 70. EXCEPT AS OTHERWISE PROVIDED HEREIN:

(A) PICK-UP SERVICE * * * WILL BE PERFORMED AT STATIONS NAMED * * * WITHOUT ADDITIONAL CHARGE ABOVE THE TARIFF RATE AS PROVIDED IN TARIFFS LAWFULLY ON FILE WITH THE INTERSTATE COMMERCE COMMISSION OR PROPER STATE COMMISSION, OR IN LIEU THEREOF AN ALLOWANCE AS PROVIDED IN ITEM 80 WILL BE MADE TO CONSIGNOR WHO ELECTS TO MAKE HIS OWN ARRANGEMENTS FOR DELIVERY OF SHIPMENT TO CARRIER'S FREIGHT DEPOT.

(B) DELIVERY SERVICE * * * WILL BE PERFORMED AT STATIONS NAMED * * * WITHOUT ADDITIONAL CHARGE ABOVE THE TARIFF RATE AS PROVIDED IN TARIFFS LAWFULLY ON FILE WITH THE INTERSTATE COMMERCE COMMISSION OR PROPER STATE COMMISSION, OR IN LIEU THEREOF AN ALLOWANCE AS PROVIDED IN ITEM 80 WILL BE MADE TO CONSIGNEE WHO ELECTS TO MAKE HIS OWN ARRANGEMENTS FOR DELIVERY.

ITEM 80. WHEN THE CONSIGNOR ELECTS TO MAKE HIS OWN ARRANGEMENTS FOR THE PICK-UP SERVICE AUTHORIZED HEREIN, AN ALLOWANCE OF 5 CENTS PER 100 POUNDS WILL BE MADE TO SUCH CONSIGNOR FOR SUCH SERVICE, * * *.

WHEN THE CONSIGNEE ELECTS TO MAKE HIS OWN ARRANGEMENTS FOR THE DELIVERY SERVICE AUTHORIZED HEREIN, AN ALLOWANCE OF 5 CENTS PER 100 POUNDS WILL BE MADE TO THE CONSIGNEE FOR SUCH SERVICE, * * *.

UNDER THE PROVISIONS OF THE TARIFF, THE COST OF THE SERVICE REFERRED TO AS PICK-UP AND DELIVERY AND WHICH IS DEFINED IN THE TARIFF SUBSTANTIALLY AS COVERING THE TRANSPORTATION OF FREIGHT BETWEEN THE PREMISES OF THE CARRIER'S FREIGHT STATION AND A PLATFORM OR DOORWAY DIRECTLY ACCESSIBLE TO TRUCKS OR DRAYS AT THE CONSIGNOR'S OR THE CONSIGNEE'S LOCATION, IS INCLUDED IN THE RATE WHICH IS CHARGED FOR THE THROUGH TRANSPORTATION OF THE SHIPMENT FROM POINT OF PICK-UP AT ORIGIN TO POINT OF DELIVERY AT DESTINATION. THE CARRIER DOES NOT MAKE ANY SEPARATE CHARGE FOR THE SERVICES AND EXCEPT WHERE THE CONSIGNOR OR CONSIGNEE ELECTS TO PERFORM THE PICK-UP AND/OR DELIVERY SERVICE IN LIEU OF USING THE PICK-UP AND/OR DELIVERY SERVICE OF THE CARRIER AND AN ALLOWANCE IS MADE TO THE CONSIGNOR OR TO THE CONSIGNEE, IN WHICH CASE THE EARNINGS OF THE CARRIER FOR THE TRANSPORTATION SERVICE PERFORMED BY IT APPEAR DEFINITELY AND SEPARATELY FIXED AS IN THE AMOUNT OF THE CHARGE COMPUTED ON THE BASIS OF THE TARIFF RATE LESS THE AMOUNT OF THE ALLOWANCE, THERE IS APPARENTLY NO METHOD BY WHICH THE EARNINGS OF THE CARRIER OR THE COSTS TO THE CARRIER MAY BE APPORTIONED FOR THE PICK UP AND DELIVERY SERVICE.

ACCORDINGLY, WHERE THE CARRIER PERFORMS THE PICK-UP AND/OR DELIVERY SERVICE, THE CHARGE FOR THE TRANSPORTATION MUST BE TREATED AS AN ENTIRETY AND THE COST OF THE PICK-UP AND DELIVERY REGARDED AS AN EXPENSE INCLUDED IN AND A PART OF THE TRANSPORTATION FOR WHICH THE TRANSPORTATION CHARGE IS ALLOWED AND THE LAND-GRANT DEDUCTION IN SUCH CASE SHOULD BE MADE FROM THE TOTAL EARNINGS OF THE CARRIER ON THE BASIS OF THE TARIFF RATE FOR THE TRANSPORTATION INCLUDING THE PICK-UP AND DELIVERY SERVICE. WHERE, HOWEVER, THE SHIPPER OR CONSIGNEE ELECTS TO PICK-UP AND/OR DELIVER IN LIEU OF USING THE PICK-UP AND DELIVERY SERVICE OF THE CARRIER AND AN ALLOWANCE IS MADE TO THE CONSIGNOR OR CONSIGNEE, THE LAND-GRANT DEDUCTION SHOULD BE MADE FROM THE THROUGH CHARGE LESS THE ALLOWANCE. THE VOUCHER RECEIVED WITH YOUR LETTER IS RETURNED.