B-130335, APR. 9, 1957

B-130335: Apr 9, 1957

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THE SHIPMENTS WERE ROUTED VIA THE ALASKA RAILROAD TO NENANA. YOUR CLAIM IS BASED UPON THE COMBINATION OF A RATE OF 59 CENTS PER HUNDRED POUNDS. WHICH YOU ALLEGE IS INAPPLICABLE THOUGH IT REMAINS IN EFFECT. ON THE FACE OF ALL BUT ONE OF THE GOVERNMENT BILLS OF LADING UNDER WHICH THESE SHIPMENTS MOVED IS TYPED THE PROVISION THAT "TARIFF NO. 58 ARR APPLIES.'. WHEN SIGNED BY THE CARRIER THE BILL OF LADING IS THE CONTRACT FOR THE TRANSPORTATION SERVICE. THE PROVISIONS CONTAINED IN THE BILL OF LADING ARE BINDING UPON BOTH THE CARRIER AND THE SHIPPER. IT APPEARS THAT THE JOINT THROUGH RAIL TO RIVER POINT RATES ARE APPLICABLE BY THE EXPRESS TERMS OF THE TRANSPORTATION CONTRACT. IT APPEARS THAT THE AUDIT ACTION OF OUR TRANSPORTATION DIVISION WAS CORRECT.

B-130335, APR. 9, 1957

TO UNITED STATES DEPARTMENT OF THE INTERIOR, THE ALASKA RAILROAD:

CONSIDERATION HAS BEEN GIVEN YOUR REQUEST FOR REVIEW OF OUR CERTIFICATE OF SETTLEMENT NO. T-663518, DATED JUNE 26, 1956, WHICH ALLOWED $539.28 AND DISALLOWED $391.30 OF YOUR CLAIM FOR ADDITIONAL FREIGHT CHARGES ON THE SEVEN SHIPMENTS OF ROAD SCRAPERS TRANSPORTED FROM LADD AIR FORCE BASE, ALASKA, TO GALENA, ALASKA, UNDER GOVERNMENT BILLS OF LADING NOS. AF- 3100679 TO AF-3100685, INCLUSIVE, DATED MAY 19, 1955. THE SHIPMENTS WERE ROUTED VIA THE ALASKA RAILROAD TO NENANA, ALASKA, AND THE YUTANA BARGE LINES TO DESTINATION.

YOUR CLAIM IS BASED UPON THE COMBINATION OF A RATE OF 59 CENTS PER HUNDRED POUNDS, MINIMUM WEIGHT 24,000 POUNDS, TO NENANA, NAMED IN ALASKA RAILROAD TARIFF NO. 16-E, I.C.C. NO. 208, PLUS A CLASS "C" RATE OF $2.20 PER HUNDRED POUNDS AT THE ACTUAL WEIGHT NAMED IN YUTANA BARGE LINES, NC., UNIFORM TENDER OF RATES OR CHARGES NO. 1, A SO-CALLED "SECTION 22" TENDER PUBLISHED AT THE REQUEST OF THE DEPARTMENT OF THE ARMY. IN THE EXAMINATION OF YOUR CLAIM FOR ADDITIONAL FREIGHT CHARGES OUR TRANSPORTATION DIVISION COMPUTED THE APPLICABLE FREIGHT CHARGES ON THE BASIS OF A JOINT THROUGH RATE OF $1.75 PER HUNDRED POUNDS, MINIMUM WEIGHT 24,000 POUNDS, PUBLISHED IN ALASKA RAILROAD TARIFF NO. 58, A.A.R. NO. 12, WHICH YOU ALLEGE IS INAPPLICABLE THOUGH IT REMAINS IN EFFECT.

ON THE FACE OF ALL BUT ONE OF THE GOVERNMENT BILLS OF LADING UNDER WHICH THESE SHIPMENTS MOVED IS TYPED THE PROVISION THAT "TARIFF NO. 58 ARR APPLIES.' WHEN SIGNED BY THE CARRIER THE BILL OF LADING IS THE CONTRACT FOR THE TRANSPORTATION SERVICE, AND THE PROVISIONS CONTAINED IN THE BILL OF LADING ARE BINDING UPON BOTH THE CARRIER AND THE SHIPPER. SEE THE HENRY B. HYDE, 82 FED. 681, 682; SCHWALB V. ERIE R. CO., 293 N.Y.S. 842. AS TO THESE SHIPMENTS, THEREFORE, IT APPEARS THAT THE JOINT THROUGH RAIL TO RIVER POINT RATES ARE APPLICABLE BY THE EXPRESS TERMS OF THE TRANSPORTATION CONTRACT, AS REFLECTED BY THE BILLS OF LADING SIGNED BY YOUR AGENT. ACCORDINGLY, ON THE BASIS OF THE CONTRACTUAL PROVISIONS, IT APPEARS THAT THE AUDIT ACTION OF OUR TRANSPORTATION DIVISION WAS CORRECT.

INASMUCH AS THE TERMS OF THE PERTINENT BILLS OF LADING ARE INCONSISTENT WITH AN INTENTION BY THE PARTIES TO THE TRANSPORTATION CONTRACTS THUS FORMED TO APPLY THE RATES NAMED IN TENDER NO. 1, IT DOES NOT APPEAR THAT WE WOULD BE WARRANTED, ON THIS RECORD, IN AUTHORIZING PAYMENT OF CHARGES IN EXCESS OF THE BASIS AVAILABLE IN TARIFF NO. 58 IN THESE INSTANCES. GENERALLY, HOWEVER, ON THE BASIS OF YOUR REPORT IT SEEMS THAT THE LOWER- THAN-TARIFF RATES IN TENDER NO. 1 WERE TO BE AFFORDED IN PARTICULAR INSTANCES ON THE CONDITION THAT THE HIGHER-THAN-TARIFF RATES (THE NECESSITY FOR THE APPLICATION OF WHICH, PRESUMABLY, WOULD ARISE INFREQUENTLY OR WHICH, IN TERMS OF COSTS, WOULD RELATE TO A MINOR PART OF THE AGGREGATE TONNAGE SHIPPED DURING THE SEASON OF NAVIGATION) WERE TO BE INVOKED IN OTHER PROPER INSTANCES COVERED BY THE TENDER. IN SUM, AN ADVANTAGE APPARENTLY WAS TO ACCRUE TO THE ARMY IN THE FORM OF REDUCED TRANSPORTATION COSTS ON THE TOTAL TRAFFIC MOVING DURING THE SEASON OF NAVIGATION OVER THE LINES OF THE CARRIERS INVOLVED. IN SUCH A SITUATION THE VALIDITY OF THE INDIVIDUAL RATE BASES IN TENDER NO. 1 WOULD NOT BE SUBJECT TO DISPUTE, IF, IN FACT, AN OVERALL SAVING TO THE ARMY RESULTED.

FOR THE REASONS STATED ABOVE THE ACTION OF OUR TRANSPORTATION DIVISION DISALLOWING $391.30 OF YOUR CLAIM FOR ADDITIONAL FREIGHT CHARGES IS SUSTAINED.