B-128615, MAR. 13, 1957

B-128615: Mar 13, 1957

Additional Materials:

Contact:

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

 

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

TO CENTRAL OF GEORGIA RAILWAY COMPANY: REFERENCE IS MADE TO YOUR FILE N-5-27268-A-G-5-A. WITH THE RESULT THAT ADDITIONAL ALLOWANCES IN THE AMOUNT OF $226.47 HAVE BEEN MADE. WAS BASED ON ADVICE FURNISHED BY THE DEPARTMENT OF THE ARMY IN 4TH INDORSEMENT OF OCTOBER 27. PARAGRAPH 1 OF WHICH IS QUOTED ON PAGE 2 OF SETTLEMENT CERTIFICATE NO. 679618. THE CLAIM WAS DISALLOWED BECAUSE THESE SHIPMENTS WERE DETERMINED TO BE MILITARY PROPERTY MOVING FOR MILITARY USE AND SUBJECT TO LAND GRANT DEDUCTIONS. THAT THIS OFFICE DID NOT REVEAL THE METHOD USED IN DETERMINING HOW THE SHIPMENTS INVOLVED WERE FOR MILITARY USE. SINCE NO REFERENCES OR COPIES OF REQUISITIONS WERE FURNISHED TO SUPPORT OUR FINDINGS.

B-128615, MAR. 13, 1957

TO CENTRAL OF GEORGIA RAILWAY COMPANY:

REFERENCE IS MADE TO YOUR FILE N-5-27268-A-G-5-A, UNDER WHICH YOU REQUESTED REVIEW OF OUR SETTLEMENT CERTIFICATE (CLAIM NO. TK-166840) DATED MAY 22, 1956, WHICH DISALLOWED YOUR CLAIM FOR $1,801.60 ADDITIONAL CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF CERTAIN SHIPMENTS OF LEND LEASE DEFENSE AID MATERIALS DURING THE YEAR 1943 FOR THE DEPARTMENT OF THE ARMY, CONSIGNED TO THE WAR SHIPPING ADMINISTRATION (BRITISH MINISTRY OF WAR TRANSPORT), C/O STRACHAN SHIPPING COMPANY, AGENTS, SAVANNA, GEORGIA.

AS EVIDENCED BY CERTIFICATE OF SETTLEMENT NO. 679618, DATED JANUARY 4, 1957, CLAIM NO. TK-166840 HAS BEEN RE-EXAMINED IN THE LIGHT OF THE RECORD AND THE ADDITIONAL INFORMATION FURNISHED BY YOU, WITH THE RESULT THAT ADDITIONAL ALLOWANCES IN THE AMOUNT OF $226.47 HAVE BEEN MADE, CONSISTING OF $147.04 OF THE AMOUNT OF $265.36 CLAIMED ON BILL OF LADING NO. WQ- 18549482, AND $79.43 CLAIMED ON YOUR AMENDED WORK SHEET FOR THE SERVICE COVERED BY BILL OF LADING NO. WQ-1849487, BOTH BILLS OF LADING DATED NOVEMBER 23, 1943. THE DISALLOWANCE OF THE REMAINDER OF YOUR CLAIM, $1,575.13 ($1,801.60 LESS $226.47), INVOLVING THE QUESTION OF THE APPROPRIATENESS OF LAND-GRANT DEDUCTIONS ON DEPARTMENT OF THE ARMY SHIPMENTS OF LEND LEASE MILITARY DEFENSE AID MATERIALS, WAS BASED ON ADVICE FURNISHED BY THE DEPARTMENT OF THE ARMY IN 4TH INDORSEMENT OF OCTOBER 27, 1952, FILE TCTSD CT I 554, CENTRAL OF GEORGIA RAILWAY COMPANY, PARAGRAPH 1 OF WHICH IS QUOTED ON PAGE 2 OF SETTLEMENT CERTIFICATE NO. 679618.

IN OUR SETTLEMENT CERTIFICATE OF MAY 22, 1956, THE CLAIM WAS DISALLOWED BECAUSE THESE SHIPMENTS WERE DETERMINED TO BE MILITARY PROPERTY MOVING FOR MILITARY USE AND SUBJECT TO LAND GRANT DEDUCTIONS, PER AAR CIRCULAR NO. 284, OCTOBER 25, 1950, FILE 215-2-11, ADDRESSED TO THE CHIEF ACCOUNTING OFFICERS. IN YOUR REQUEST FOR REVIEW YOU STATE, IN EFFECT, THAT THIS OFFICE DID NOT REVEAL THE METHOD USED IN DETERMINING HOW THE SHIPMENTS INVOLVED WERE FOR MILITARY USE, SINCE NO REFERENCES OR COPIES OF REQUISITIONS WERE FURNISHED TO SUPPORT OUR FINDINGS.

AAR CIRCULAR NO. 284, PHOTOSTATIC COPY ENCLOSED, WAS DIRECTED TO THE "CHIEF ACCOUNTING FFICERS" OF ALL OF THE CARRIERS MEMBERS OF THE ASSOCIATION OF AMERICAN RAILROADS, AND THE CIRCULAR CONTAINED THE STATEMENT THAT" WITH A FEW EXCEPTIONS, LEND-LEASE TONNAGE OF THE ARMY WAS SUBJECT TO LAND-GRANT AND THAT AS TO THE FEW EXCEPTIONS TO THE GENERAL RULE THE ASSOCIATION WOULD NOTIFY THE INDIVIDUAL CARRIER OR CARRIERS DIRECTLY CONCERNED. IN VIEW OF THE DEPARTMENT OF THE ARMY'S 4TH INDORSEMENT OF OCTOBER 27, 1952, AND THE FACT THAT AAR CIRCULAR 284 CONTAINS THE STATEMENT THAT THE MAJORITY OF LEND-LEASE TONNAGE WAS SUBJECT TO LAND-GRANT, IT APPEARS THAT THIS OFFICE HAS PROPERLY DETERMINED THAT THE SHIPMENTS INVOLVED WERE FOR MILITARY USE.

ACCORDINGLY, IN VIEW OF THE FOREGOING, THIS OFFICE HAS PROPERLY DETERMINED THAT THE INVOLVED SHIPMENTS WERE SUBJECT TO LAND-GRANT DEDUCTIONS AND, THEREFORE, THE SETTLEMENT (CERTIFICATE NO. 679618) DATED JANUARY 4, 1957, IS SUSTAINED.