B-130227, MAR. 26, 1957

B-130227: Mar 26, 1957

Additional Materials:

Contact:

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

 

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

TO THE VIRGINIAN RAILWAY COMPANY: REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 28. OUR OVERCHARGE CLAIM FOR $87.61 IS PREDICATED UPON THE USE OF THE "STREAMLINED RULE 10" PROVISIONS IN ITEM NO. 412-G OF CENTRAL TERRITORY RAILROADS TARIFF BUREAU FREIGHT TARIFF NO. 130-C. IN YOUR REQUEST FOR RECONSIDERATION YOU CONTEND THAT EXCEPTIONS TO RULE 10 OF OFFICIAL CLASSIFICATION NO. 64 ARE NOT APPLICABLE IN CONNECTION WITH SECTION 22 QUOTATION RATES. SHIPMENTS MADE HEREUNDER ARE SUBJECT TO ALL CHARGES AND ALL ALLOWANCES FOR OR IN RESPECT OF DIVERSION. WHEN A NUMBER OF ARTICLES FOR WHICH THE SAME OR DIFFERENT RATINGS OR RATES ARE PROVIDED WHEN IN STRAIGHT CARLOADS ARE SHIPPED AT ONE TIME BY ONE CONSIGNOR TO ONE CONSIGNEE AND DESTINATION.

B-130227, MAR. 26, 1957

TO THE VIRGINIAN RAILWAY COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF DECEMBER 28, 1956, FILE 6055 1T, DECLINING PAYMENT OF OUR CLAIM (TK 62571) FOR $87.61 AND REQUESTING RECONSIDERATION OF THE DISALLOWANCE OF YOUR SUPPLEMENTAL BILL NO. 32606 A FOR $87.91, REPRESENTING ADDITIONAL CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF A MIXED CARLOAD SHIPMENT OF CARTRIDGE SHELLS AND ROPE FROM THE NAVAL AMMUNITION DEPOT, CRANE, INDIANA, TO THE NAVAL AMMUNITION DEPOT, ST. JULIENS CREEK, PORTSMOUTH, VIRGINIA, UNDER GOVERNMENT BILL OF LADING N-T 134447 DURING APRIL 1953.

OUR OVERCHARGE CLAIM FOR $87.61 IS PREDICATED UPON THE USE OF THE "STREAMLINED RULE 10" PROVISIONS IN ITEM NO. 412-G OF CENTRAL TERRITORY RAILROADS TARIFF BUREAU FREIGHT TARIFF NO. 130-C, I.C.C. NO. 3926, IN CONJUNCTION WITH THE OFFER MADE TO THE GOVERNMENT IN SECTION 22 QUOTATION NO. A-711A, ISSUED BY TRAFFIC EXECUTIVE ASSOCIATION-EASTERN RAILROADS, TO TRANSPORT CARTRIDGE SHELLS IN 40,000 POUND MINIMUM CARLOAD LOTS AT A CLASS -40 RATING. IN YOUR REQUEST FOR RECONSIDERATION YOU CONTEND THAT EXCEPTIONS TO RULE 10 OF OFFICIAL CLASSIFICATION NO. 64 ARE NOT APPLICABLE IN CONNECTION WITH SECTION 22 QUOTATION RATES.

ITEM NO. 3 OF THE INVOLVED QUOTATION, CAPTIONED "CHARGES AND ALLOWANCES," PROVIDES THAT:

"IN THE ABSENCE OF SPECIFIC PROVISIONS TO THE CONTRARY IN THIS QUOTATION, SHIPMENTS MADE HEREUNDER ARE SUBJECT TO ALL CHARGES AND ALL ALLOWANCES FOR OR IN RESPECT OF DIVERSION, RECONSIGNMENT, DEMURRAGE, SWITCHING, AND TO ALL OTHER PRIVILEGES, CHARGES AND RULES WHICH IN ANY WAY INCREASE OR DECREASE THE AMOUNT TO BE PAID ON ANY SHIPMENT, OR WHICH INCREASE OR DECREASE THE VALUE OF THE SERVICE AS PROVIDED IN APPLICABLE TARIFFS ON FILE WITH THE INTERSTATE COMMERCE COMMISSION, OR BY SECTION 22 QUOTATION.'

ITEM 412-G OF CENTRAL TERRITORY RAILROADS TARIFF 130-C, UNDER THE CAPTION "EXCEPTION TO RULE 10 OF OFFICIAL CLASSIFICATION, MIXED CARLOADS," PROVIDES AS FOLLOWS:

"EXCEPT AS OTHERWISE PROVIDED, WHEN A NUMBER OF ARTICLES FOR WHICH THE SAME OR DIFFERENT RATINGS OR RATES ARE PROVIDED WHEN IN STRAIGHT CARLOADS ARE SHIPPED AT ONE TIME BY ONE CONSIGNOR TO ONE CONSIGNEE AND DESTINATION, IN A CARLOAD * * *, THEY WILL BE CHARGED AT THE ACTUAL OR AUTHORIZED ESTIMATED WEIGHT AND AT THE STRAIGHT CARLOAD CLASS OR COMMODITY RATE * * * APPLICABLE TO EACH ARTICLE, * * *. THE CARLOAD MINIMUM WEIGHT WILL BE THE HIGHEST PROVIDED FOR ANY ARTICLE IN THE MIXED CARLOAD, AND ANY DEFICIT IN THE MINIMUM WEIGHT WILL BE CHARGED FOR AT THE HIGHEST CARLOAD RATING OR RATE APPLICABLE TO ANY ARTICLE IN THE MIXED CARLOAD.'

THIS TARIFF ITEM, PROVIDING A BASIS FOR THE COMPUTATION OF TRANSPORTATION CHARGES ON A MIXED CARLOAD SHIPMENT, SEEMS CLEARLY TO GRANT A PRIVILEGE--- OR AUTHORIZES THE APPLICATION OF A RULE--- WHICH DECREASES THE AMOUNT WHICH OTHERWISE WOULD BE PAYABLE ON THE SHIPMENT INVOLVED AND, THEREFORE, TO BE ONE OF THE PRIVILEGES OR RULES CONTEMPLATED BY ITEM NO. 3 OF SECTION 22 QUOTATION NO. A-711A. SINCE NO SPECIFIC PROVISIONS TO THE CONTRARY HAVE BEEN FOUND IN THE QUOTATION, IT IS REASONABLE TO ASSUME THAT THE USE OF THE MIXED CARLOAD RULE IS FULLY AUTHORIZED BY SECTION 22 QUOTATION NO. A-711A.

ACCORDINGLY, THE SETTLEMENT OF OUR TRANSPORTATION DIVISION WAS BASED UPON THE USE OF THE RULE 10 PROVISIONS NAMED IN ITEM NO. 412-G, APPLYING A CLASS-40 RATE OF $1.16 PER 100 POUNDS TO THE 34,800 POUNDS OF CARTRIDGE SHELLS AND THE CLASS-35 RATE (MINIMUM WEIGHT 30,000 POUNDS, PER ITEM 4170 OF CENTRAL TERRITORY RAILROADS TARIFF NO. 130-C) OF $1.01 PER 100 POUNDS TO THE 836 POUNDS OF ROPE. THE MINIMUM WEIGHT OF 40,000 POUNDS PROVIDED FOR BY QUOTATION A-711A WAS PROTECTED BY THE PAYMENT ON 4,364 POUNDS OF DEFICIT WEIGHT AT THE RATE OF $1.16 PER 100 POUNDS, THE RATE APPLICABLE ON THE HIGHEST RATED ARTICLE IN THE SHIPMENT.

IN VIEW OF THE FOREGOING, THE DISALLOWANCE OF YOUR CLAIM BY OUR TRANSPORTATION DIVISION WAS PROPER, AND IT IS SUSTAINED. REFUND OF THE AMOUNT OVERPAID, $87.61, SHOULD BE MADE PROMPTLY IN ORDER TO OBVIATE COLLECTION BY SETOFF OR OTHER MEANS.