B-128318, OCT. 10, 1956

B-128318: Oct 10, 1956

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TO MISSOURI PACIFIC RAILROAD COMPANY: REFERENCE IS MADE TO YOUR LETTER DATED JUNE 15. WHICH WAS ORIGINALLY CONSIGNED TO BENICIA ARSENAL. WAS SUBSEQUENTLY RESHIPPED TO SAN FRANCISCO. FOR THE TRANSPORTATION SERVICES INVOLVED YOU ORIGINALLY CLAIMED AND WERE PAID AT A NET RATE OF $3.31623 PER 100 POUNDS FOR THE INBOUND MOVEMENT INTO AVONDALE. THIS ACTION WAS PREDICATED ON THE FACT THAT THE MOVEMENT TO ROPER. IT WAS FOUND THAT THE TERMS OF THE SECTION 22 QUOTATION AUTHORIZING TRANSIT WERE INAPPLICABLE. THE AMOUNT OF $676.61 WAS DEDUCTED FROM YOUR BILL NO. 71177. IT IS NOTED THAT THE SOUTHERN PACIFIC COMPANY ALLOWED 66.207 CENTS PER 100 POUNDS. FROM THE FOREGOING IT WOULD APPEAR THAT THERE WAS NO THROUGH SHIPMENT SUBJECT TO TRANSMIT UNDER THE TARIFF OR SECTION 22 QUOTATION.

B-128318, OCT. 10, 1956

TO MISSOURI PACIFIC RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR LETTER DATED JUNE 15, 1956, REQUESTING REVIEW OF SETTLEMENT CERTIFICATE IN CLAIM TK 531894, DATED MAY 10, 1956, WHICH DISALLOWED YOUR CLAIM FOR $676.61, PER BILL NO. S 24189-A, AS AN ADDITIONAL ALLOWANCE FOR A SHIPMENT MOVING UNDER BILL OF LADING WT- 8183510, DATED SEPTEMBER 18, 1943, WHICH WAS ORIGINALLY CONSIGNED TO BENICIA ARSENAL, ARMY POINT, CALIFORNIA, AND SUBSEQUENTLY DIVERTED AT ROPER, UTAH, TO AVONDALE, COLORADO, FOR TRANSIT.

THE RECORD SHOWS THAT THE ENTIRE TONNAGE (62,376 POUNDS), INVOLVED IN THE SUBJECT SHIPMENT INTO AVONDALE, COLORADO, WAS SUBSEQUENTLY RESHIPPED TO SAN FRANCISCO, CALIFORNIA, ON GOVERNMENT BILL OF LADING WV-4276952, DATED MAY 26, 1944, FOR OVERSEAS MOVEMENT.

FOR THE TRANSPORTATION SERVICES INVOLVED YOU ORIGINALLY CLAIMED AND WERE PAID AT A NET RATE OF $3.31623 PER 100 POUNDS FOR THE INBOUND MOVEMENT INTO AVONDALE, COLORADO. IN THE AUDIT OF THE PAYMENT VOUCHER COVERING THE INBOUND MOVEMENT TO AVONDALE, ON BILL OF LADING WT 8183510, OUR OFFICE ISSUED A NOTICE OF OVERPAYMENT FORM 1003 AGAINST YOU AS DESTINATION CARRIER FOR $676.61, ON THE BASIS OF A COMBINATION OF LOCAL RATES TO THE POINT OF DIVERSION AT ROPER, UTAH, AND BACK TO AVONDALE, COLORADO. THIS ACTION WAS PREDICATED ON THE FACT THAT THE MOVEMENT TO ROPER, UTAH, AND BACK TO AVONDALE, CONSTITUTED A BACK-HAUL SERVICE WHICH CANCELLED THE GOVERNMENT'S PRIVILEGE TO APPLY THIS TONNAGE AGAINST AN OUTBOUND SHIPMENT, AND BECAUSE OF THIS DIVERSION AND BACK-HAUL, IT WAS FOUND THAT THE TERMS OF THE SECTION 22 QUOTATION AUTHORIZING TRANSIT WERE INAPPLICABLE. DECEMBER 1953, THE AMOUNT OF $676.61 WAS DEDUCTED FROM YOUR BILL NO. 71177. IT IS NOTED THAT THE SOUTHERN PACIFIC COMPANY ALLOWED 66.207 CENTS PER 100 POUNDS, NOT $3.31623, AS YOU STATE IN YOUR LETTER, AS A CREDIT AGAINST THE CHARGES BILLED ON BILL OF LADING WV-4276952.

FROM THE FOREGOING IT WOULD APPEAR THAT THERE WAS NO THROUGH SHIPMENT SUBJECT TO TRANSMIT UNDER THE TARIFF OR SECTION 22 QUOTATION, SO THAT AS FAR AS YOU ARE CONCERNED THE TRANSPORTATION SERVICE WAS TERMINATED AT AVONDALE, COLORADO. CONSEQUENTLY, THE APPLICABLE BASIS TO BE ASSESSED FOR ENTIRE TRANSPORTATION TO THE WEST COAST WAS A COMBINATION OF RATES TO AND BEYOND AVONDALE, LESS DEDUCTIONS FOR LAND GRANT, FOR WHICH THE SETTLEMENT OF CHARGES NECESSARILY MUST BE MADE WITH EACH DESTINATION CARRIER ON THE TWO SEPARATE MOVEMENTS.

ACCORDINGLY, SINCE YOU RECEIVED CHARGES IN EXCESS OF THE APPLICABLE RATES TO AVONDALE, AND THE EXCESS HAS BEEN COLLECTED BY DEDUCTION FROM YOUR BILL NO. 71177, THE SETTLEMENT, WHICH IS CONSISTENT WITH THE FOREGOING AND IS NOT SHOWN TO HAVE BEEN IN ERROR OTHERWISE, IS SUSTAINED.