B-128853, NOV. 16, 1956

B-128853: Nov 16, 1956

Additional Materials:

Contact:

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

 

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

TO THE KANSAS CITY SOUTHERN RAILWAY COMPANY: REFERENCE IS MADE TO YOUR LETTER FILE RG-35-7/45. THESE SHIPMENTS WERE CONSIGNED BY THE CHESTER TANK DEPOT TO THE TRANSPORTATION OFFICER. WERE RECONSIGNED THROUGH THE DETROIT OFFICE OF THE CHIEF OF ORDNANCE TO CAMP POLK ON MAY 24. FOR THE SERVICES INVOLVED YOU ORIGINALLY CLAIMED AND WERE PAID $7. SINCE THE ADMINISTRATIVE OFFICE ALSO REPORTED THAT COLUMBUS WAS THE DIVERSION POINT. SINCE PLACEMENT WAS MADE AT SAND HILL AT 1:00 P.M. WAS SHOWN ON ALL THE RECORDS AS THE DIVERSION POINT IS BECAUSE AT MOST LARGE GOVERNMENT INSTALLATIONS ALL ACCOUNTING AND EXCHANGE OF ORDERS COVERING RECONSIGNMENT ARE WORKED OUT WITH THE CARRIER'S REPRESENTATIVE AT THE RAILHEAD SERVING THE INSTALLATION.

B-128853, NOV. 16, 1956

TO THE KANSAS CITY SOUTHERN RAILWAY COMPANY:

REFERENCE IS MADE TO YOUR LETTER FILE RG-35-7/45, REQUESTING A REVIEW OF THE DISALLOWANCE OF YOUR SUPPLEMENTAL BILL NO. 5-G-466-A, FOR $2,468.27 ADDITIONAL CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF EIGHT CARLOAD SHIPMENTS OF ARMY TRACTOR TANKS MOVING UNDER GOVERNMENT BILLS OF LADING FROM CHESTER, PENNSYLVANIA, TO CAMP POLK, LOUISIANA. THESE SHIPMENTS WERE CONSIGNED BY THE CHESTER TANK DEPOT TO THE TRANSPORTATION OFFICER, FORT BENNING, SAND HILL, GEORGIA, ON MAY 19, 1945, AND WERE RECONSIGNED THROUGH THE DETROIT OFFICE OF THE CHIEF OF ORDNANCE TO CAMP POLK ON MAY 24, 1945.

FOR THE SERVICES INVOLVED YOU ORIGINALLY CLAIMED AND WERE PAID $7,249.75, COMPUTED ON THE BASIS OF A THROUGH RATE FROM CHESTER TO CAMP POLK, PLUS A RECONSIGNMENT CHARGE OF $6.93 ASSESSED ON EACH OF THE EIGHT CARS. THEREAFTER, WE RECEIVED YOUR SUPPLEMENTAL BILL FOR ADDITIONAL CHARGES COMPUTED ON THE BASIS OF A COMBINATION OF RATES OVER SAND HILL, GEORGIA. SINCE ALL OF THE INVOLVED BILLS OF LADING AND COPIES OF THE ORIGINAL FREIGHT WAYBILLS FURNISHED BY YOU CONTAINED NOTATIONS TO THE EFFECT THAT DIVERSION TOOK PLACE AT COLUMBUS,GEORGIA, AND SINCE THE ADMINISTRATIVE OFFICE ALSO REPORTED THAT COLUMBUS WAS THE DIVERSION POINT, OUR TRANSPORTATION DIVISION DISALLOWED YOUR CLAIM. IN YOUR REQUEST FOR REVIEW YOU ASSERT THAT CHARGES SHOULD BE COMPUTED ON A COMBINATION OF RATES OVER SAND HILL, SINCE PLACEMENT WAS MADE AT SAND HILL AT 1:00 P.M., ON MAY 23, 1945, PRIOR TO RECEIPT OF ORDERS REQUESTING DIVERSION OF THE CARS TO CAMP POLK. TO SUBSTANTIATE THIS CONTENTION YOU NOW SUBMIT A PHOTOSTATIC COPY OF A SOUTHEASTERN DEMURRAGE AND STORAGE BUREAU FROM 410 1/2 (REVISED) COVERING THE DISPOSITION OF THE INVOLVED CARS TO SAND HILL DURING THE PERIOD INVOLVED. YOU EXPLAIN THAT THE REASON THAT COLUMBUS, GEORGIA, WAS SHOWN ON ALL THE RECORDS AS THE DIVERSION POINT IS BECAUSE AT MOST LARGE GOVERNMENT INSTALLATIONS ALL ACCOUNTING AND EXCHANGE OF ORDERS COVERING RECONSIGNMENT ARE WORKED OUT WITH THE CARRIER'S REPRESENTATIVE AT THE RAILHEAD SERVING THE INSTALLATION, WHICH IN THIS CASE WAS COLUMBUS, GEORGIA.

RULE 10 OF CENTRAL OF GEORGIA RAILWAY COMPANY DIVERSION RECONSIGNMENT TARIFF G.F.O. SPECIAL NO. 8-A, I.C.C. NO. 3138, PROVIDES THAT IF A CAR IS DIVERTED OR RECONSIGNED ON ORDERS PLACED WITH THE LOCAL FREIGHT AGENT AFTER ARRIVAL OF THE CAR AT BILLED DESTINATION BEFORE PLACEMENT FOR UNLOADING, THE THROUGH RATE WILL BE APPLIED AND A CHARGE OF $6.93 PER CAR WILL BE MADE FOR SUCH SERVICE. RULE 12 PROVIDES THAT A COMBINATION OF RATES WILL BE APPLIED WHEN A CAR HAS BEEN PLACED FOR UNLOADING AT ORIGINAL BILLED DESTINATION AND IS SUBSEQUENTLY FORWARDED WITHOUT BEING UNLOADED TO A POINT OUTSIDE THE SWITCHING LIMITS. THEREFORE, THE APPLICABILITY OF THE HIGHER CHARGES COMPUTED ON A COMBINATION OF RATES TURNS UPON THE FACTUAL QUESTION OF WHETHER OR NOT THE INVOLVED CARS WERE ACTUALLY PLACED FOR UNLOADING AT THE ORIGINALLY BILLED DESTINATION, SAND HILL, GEORGIA.

FORM 410 1/2 (REVISED) PURPORTS TO BE A COMPLETE RECORD OF CARS SUBJECT TO DEMURRAGE RULES FROM ARRIVAL TO RELEASE, INCLUSIVE. THE DATE "5/24" APPEARS IN LINE WITH THE SUBJECT CAR NUMBERS IN THE COLUMNS MARKED "NOTIFIED" AND "ORDERED.' ALTHOUGH A COLUMN IS PROVIDED FOR THE HOUR NOTIFIED AND ORDERED, NO HOUR IS SHOWN. THE "LOCATION" IS SHOWN AS "S.H.' (SAND HILL). THE INTERPRETATION OF THE FIGURES FOUND IN THE COLUMN MARKED "ACTUALLY PLACED," REPRESENTING THE DATE AND HOUR, IS NOT CLEAR. ALTHOUGH YOU STATE THAT THIS READS MAY 24, 1:00 P.M., IT APPEARS TO HAVE BEEN CHANGED FROM MAY 23, 5:00 P.M. APPARENTLY ONE DATE HAS BEEN WRITTEN OVER THE OTHER AND THE NUMERAL REPRESENTING THE HOUR IS ILLEGIBLE. IT IS ALSO NOT CLEAR THAT THE TERM "ACTUALLY PLACED" MEANS ACTUALLY PLACED FOR UNLOADING AT ORIGINAL BILLED DESIGNATION. YOUR ASSERTION THAT PLACEMENT WAS MADE AT DESTINATION BEFORE RECEIPT OF DIVERSION ORDERS IS NOT SUPPORTED BY ANY CONVINCING EVIDENCE, AND IN VIEW OF THE DOUBT WHICH EXISTS AS TO THE LIABILITY OF THE GOVERNMENT, WE WOULD NOT BE JUSTIFIED, ON THE BASIS OF THE PRESENT RECORD, TO CERTIFY YOUR CLAIM FOR PAYMENT.

ACCORDINGLY, THE SETTLEMENT ACTION OF OUR TRANSPORTATION DIVISION IS SUSTAINED.