A-88795, SEPTEMBER 7, 1937, 17 COMP. GEN. 222

A-88795: Sep 7, 1937

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- SETTLEMENT PROCEDURE WHERE TWO BASES OF RATE DIVISIONS ARE PUBLISHED FOR SHIPMENTS VIA PORTLAND. THE INTERESTED CARRIERS ARE IN DISAGREEMENT AS TO THE BASIS CONTROLLING. THE RULE OF THE ACCOUNTING OFFICERS IN SITUATIONS OF SUCH CONFLICT OF APPLYING THE BASIS AFFORDING THE GOVERNMENT THE LOWEST NET RATE OR CHARGE IS FOR APPLICATION. THE ALLOWANCE IS EXPLAINED IN THE CERTIFICATE OF SETTLEMENT: B/L 949219 BILL F.N. 3017. THE REQUEST FOR REVIEW URGES: FORMULA USED IN COMPUTING CHARGES ALLOWED WAS MADE BY USE OF DIVISIONS CARRIED IN SOUTHERN PACIFIC DIVISION SHEET 101-E. THIS ISSUE WAS CANCELED BY SOUTHERN PACIFIC DIVISION SHEET 101-F. FORMULA BASED ON DIVISIONS CARRIED IN DIVISION SHEET 101-F IS PROPERLY APPLICABLE.

A-88795, SEPTEMBER 7, 1937, 17 COMP. GEN. 222

TRANSPORTATION--- RATE DIVISIONS--- CARRIERS' CONFLICTING CLAIMS--- SETTLEMENT PROCEDURE WHERE TWO BASES OF RATE DIVISIONS ARE PUBLISHED FOR SHIPMENTS VIA PORTLAND, OREGON, AND THE INTERESTED CARRIERS ARE IN DISAGREEMENT AS TO THE BASIS CONTROLLING, THE RULE OF THE ACCOUNTING OFFICERS IN SITUATIONS OF SUCH CONFLICT OF APPLYING THE BASIS AFFORDING THE GOVERNMENT THE LOWEST NET RATE OR CHARGE IS FOR APPLICATION.

DECISION BY ACTING COMPTROLLER GENERAL ELLIOTT, SEPTEMBER 7, 1937:

THE NORTHWESTERN PACIFIC RAILROAD CO. HAS APPLIED FOR REVIEW OF SETTLEMENT T-98842, MAY 27, 1935, DISALLOWING $23.07 AND $281.55 ON ITS CLAIM PER BILLS F.N. 3016 AND 3017 FOR THE TRANSPORTATION OF SHIPMENT FROM DAYTON, OHIO, TO SAN RAFAEL, CALIF., UNDER BILL OF LADING WQ 921411, NOVEMBER 3, 1934, ROUTED "B/4-C-AND-NW-UP-SP-NWP" , AND SHIPMENT FROM MIDDLETOWN, PA., TO HAMILTON FIELD, CALIF., UNDER BILL OF LADING WQ- 942219, NOVEMBER 14, 1934, ROUTED ,PRR-C-AND-NW-UP-SP AND NWP" , RESPECTIVELY.

THE CARRIER CLAIMED $82.45 FOR THE TRANSPORTATION UNDER BILL OF LADING WQ -921411 AND $1,090.97 FOR THE TRANSPORTATION OF THE SHIPMENT UNDER BILL OF LADING WQ-949219, AND THE SETTLEMENT ALLOWED $59.38 AND $809.42, RESPECTIVELY; THE ALLOWANCE IS EXPLAINED IN THE CERTIFICATE OF SETTLEMENT:

B/L 949219 BILL F.N. 3017. ELEC. BULBS 317 LB. X 8.33 CWT. LESS 30.154 PERCENT. FLOODLIGHTS 5350 LB. X 4.12-1/2 CWT. LESS 30.154 PERCENT. BALANCE 41071 LB. X 2.22 CWT. LESS 30.154 PERCENT CLAIMED $1,090.97 ALLOWED $809.42, T.C. F.B. 39-C.-AND-T.C.F.B. 1-O. ITEM 796. T.C. D/S 62- A, 65-A AND S.P. D/S 101-E.DISALLOWED $281.55 BIL 921411 BILL F.N. 3016. 470 LB. X 5.25 CWT. LESS 34.488 PERCENT 258 LB. X 3.45 CWT. LESS 34.488 PERCENT. 1,736 LB. X 2.76 CWT. LESS 34.488 PERCENT. 201 LB. X 4.55 CWT. LESS 34.488 PERCENT. T.C.F.B. 39 C AND 1-O. T.C. D/S 62-A, 65-A AND S.P. 101-E. DISALLOWED $23.07. THE REQUEST FOR REVIEW URGES:

FORMULA USED IN COMPUTING CHARGES ALLOWED WAS MADE BY USE OF DIVISIONS CARRIED IN SOUTHERN PACIFIC DIVISION SHEET 101-E. THIS ISSUE WAS CANCELED BY SOUTHERN PACIFIC DIVISION SHEET 101-F, EFFECTIVE JULY 12, 1934, ON GOVERNMENT TRAFFIC. AS SHIPMENTS COVERED BY BILLS INVOLVED HEREIN BOTH MOVED SUBSEQUENT TO JULY 12, 1934, FORMULA BASED ON DIVISIONS CARRIED IN DIVISION SHEET 101-F IS PROPERLY APPLICABLE.

THE RECORDS SHOW, HOWEVER, THAT BY LETTER DATED JULY 6, 1935, ADDRESSED TO "ALL FREIGHT TRAFFIC OFFICERS IN CHARGE OF DISTRIBUTION OF DIVISION SHEETS" , THE TRAFFIC MANAGERS OF THE NORTHERN PACIFIC RAILWAY CO. AND THE GREAT NORTHERN RAILWAY CO. DENIED CONCURRENCE IN SOUTHERN PACIFIC CO.'S DIVISION SHEET NO. 101-F, AS FOLLOWS:

SOUTHERN PACIFIC DIVISION SHEET NO. 101-F NAMES BASIS FOR DIVISIONS ON TRAFFIC BETWEEN SOUTHERN PACIFIC COMPANY AND CONNECTIONS IN CALIFORNIA AND OREGON AND TWIN CITIES WHEN MOVING IN CONNECTION WITH THE GREAT NORTHERN RAILWAY, NORTHERN PACIFIC RAILWAY, AND SPOKANE, PORTLAND AND SEATTLE RAILWAY VIA PORTLAND, OREGON, HAS BEEN DISTRIBUTED THRU REGULAR CHANNELS TO VARIOUS RAILROADS THROUGHOUT THE UNITED STATES AND CANADA. THIS DIVISION SHEET WAS ISSUED JULY 12, 1934, AND SHOWS EFFECTIVE DATE OF NOVEMBER 2, 1931.

OWING TO THE FACT THAT THE UNDERSIGNED LINES HAVE NOT AGREED TO APPLY THE BASIS OF DIVISIONS SHOWN IN ABOVE DESCRIBED DIVISION SHEET UNTIL CERTAIN OTHER UNSETTLED MATTERS HAVE BEEN SATISFACTORILY DISPOSED OF,WE ARE HEREBY SERVING NOTICE ON OUR VARIOUS CONNECTIONS THAT SOUTHERN PACIFIC DIVISION SHEET NO. 101-F HAS NOT BEEN APPROVED BY OUR LINES AND SAME SHOULD NOT BE USED IN THE ALLOCATION OF FREIGHT REVENUE. UNTIL YOU ARE FURTHER ADVISED IN THE MATTER, INTERLINE SETTLEMENTS SHOULD BE MADE IN CONFORMITY WITH SOUTHERN PACIFIC DIVISION SHEET NO. 101-E AND EFFECTIVE SUPPLEMENTS THERETO; AND IN THE EVENT THAT THIS ISSUE DOES NOT PROVIDE FOR SUBDIVISION OF REVENUE IN CONNECTION WITH THE THRU RATES NOW IN EFFECT, THE "INTERIM" BASIS OF DIVISION AS OUTLINED IN MR. R. H. AISHTON-S, CHAIRMAN OF EXECUTIVE COMMITTEE, LETTER OF MAY 24, 1934, TO MR. E. R. WOODSON, CHAIRMAN OF JOINT COMMITTEE OF TRAFFIC AND ACCOUNTING OFFICERS, SHOULD BE APPLIED.

THUS, THE SITUATION IS THAT ONE BASIS OF DIVISIONS OVER PORTLAND IS PUBLISHED IN DIVISION SHEET NO. 101-E AND ANOTHER IN NO. 101-F, WITH ONE OF THE INTERESTED CARRIERS INSISTING THAT DIVISION SHEET NO. 101-F IS CONTROLLING AND THE OTHER EQUALLY AS INSISTENT THAT THE AUTHORIZED BASIS IS THAT PUBLISHED IN DIVISION SHEET NO. 101-E. IN SITUATIONS OF SUCH CONFLICT THE RULE FOLLOWED BY THE ACCOUNTING OFFICERS HAS BEEN TO APPLY THE BASIS AFFORDING TO THE GOVERNMENT THE LOWEST NET RATE OR CHARGE. THAT BASIS WAS APPLIED IN THE SETTLEMENT HERE CONCERNED, AND NO SUFFICIENT REASON APPEARS WHY THE ACTION SO TAKEN SHOULD BE MODIFIED.