B-116848, NOV. 18, 1955

B-116848: Nov 18, 1955

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TO ASSOCIATION OF AMERICAN RAILROADS: REFERENCE IS MADE TO YOUR FILE 215-17. OUR OFFICE PREVIOUSLY WAS OF THE VIEW THAT THE SUBJECT SHIPMENT APPARENTLY WAS ONE OVER WHICH THE ARMY EXERCISED CONTROL PURSUANT TO PREVIOUS ARRANGEMENTS AND THAT. THE SHIPMENT WAS ENTITLED TO A MILITARY CHARACTERIZATION FOR LAND-GRANT PURPOSES. OUR TRANSPORTATION DIVISION IS BEING INSTRUCTED TO REEXAMINE THE SETTLEMENT AND TO REAUDIT THE TRANSACTION ON THE BASIS OF COMMERCIAL RATES WITHOUT LAND GRANT DEDUCTIONS. SUCH ADDITIONAL ALLOWANCE WILL BE MADE TO THE CARRIER AS MAY BE FOUND DUE UPON APPLICATION OF THAT BASIS.

B-116848, NOV. 18, 1955

TO ASSOCIATION OF AMERICAN RAILROADS:

REFERENCE IS MADE TO YOUR FILE 215-17, REQUESTING RECONSIDERATION OF THE DECISION OF MAY 28, 1954, WHICH SUSTAINED THE SETTLEMENT DISALLOWING THE CLAIM OF THE SOUTH BROOKLYN RAILWAY COMPANY FOR $382.91, REPRESENTING DEDUCTIONS ON ACCOUNT OF LAND GRANT FROM THE CHARGES FOR THE TRANSPORTATION OF A CARLOAD OF KNIT YARN, MOVING FROM PORTLAND, OREGON, TO BROOKLYN, NEW YORK, UNDER BILL OF LADING NO. DA TPS-828611, DURING OCTOBER, 1944.

OUR OFFICE PREVIOUSLY WAS OF THE VIEW THAT THE SUBJECT SHIPMENT APPARENTLY WAS ONE OVER WHICH THE ARMY EXERCISED CONTROL PURSUANT TO PREVIOUS ARRANGEMENTS AND THAT, IN THAT CIRCUMSTANCE, THE SHIPMENT WAS ENTITLED TO A MILITARY CHARACTERIZATION FOR LAND-GRANT PURPOSES.

FURTHER CONSIDERATION OF THE FACTS PERTAINING TO THE PARTICULAR TRANSACTION SUGGESTS THAT THE MILITARY CHARACTERIZATION OF THE SHIPMENT CANNOT BE SUSTAINED. FOR THAT REASON, OUR TRANSPORTATION DIVISION IS BEING INSTRUCTED TO REEXAMINE THE SETTLEMENT AND TO REAUDIT THE TRANSACTION ON THE BASIS OF COMMERCIAL RATES WITHOUT LAND GRANT DEDUCTIONS. SUCH ADDITIONAL ALLOWANCE WILL BE MADE TO THE CARRIER AS MAY BE FOUND DUE UPON APPLICATION OF THAT BASIS.