B-132014, OCT. 28, 1957

B-132014: Oct 28, 1957

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TO UNION PACIFIC RAILROAD COMPANY: REFERENCE IS MADE TO YOUR LETTER. RECLAIMING THE SUM OF $304.92 WHICH WAS DEDUCTED IN MAKING PAYMENT OF YOUR BILL NO. 279633. THE SUM DEDUCTED REPRESENTS OVERPAYMENTS FOUND TO HAVE BEEN MADE IN MAKING PAYMENT OF YOUR BILL W-263994 FOR THE TRANSPORTATION OF FIVE SHIPMENTS OF "AMMUNITION FOR CANNON. ALL OF THE BILLS OF LADING WERE ANNOTATED IN THE CONSIGNEE'S CERTIFICATE OF DELIVERY. YOU CLAIMED AND WERE PAID CHARGES COMPUTED ON THE BASIS OF A CLASS-65 RATE OF $2.98 PER 100 POUNDS. IN THE SUBSEQUENT AUDIT OF THIS PAYMENT A NOTICE OF OVERPAYMENT WAS ISSUED IN THE AMOUNT OF $304.92. WHEREIN THE CHARGES WERE COMPUTED ON THE BASIS OF AN AGGREGATE OF INTERMEDIATE RATES OVER TEXARKANA.

B-132014, OCT. 28, 1957

TO UNION PACIFIC RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR LETTER, FILE GM-263004, RECLAIMING THE SUM OF $304.92 WHICH WAS DEDUCTED IN MAKING PAYMENT OF YOUR BILL NO. 279633. THE SUM DEDUCTED REPRESENTS OVERPAYMENTS FOUND TO HAVE BEEN MADE IN MAKING PAYMENT OF YOUR BILL W-263994 FOR THE TRANSPORTATION OF FIVE SHIPMENTS OF "AMMUNITION FOR CANNON, WITH EXPLOSIVE PROJECTILE (AMMUNITION FIXED, N.O.I.B.N. FOR CANNON)" FROM DEFENSE, TEXAS, TO PANHANDLE, NEBRASKA, ON BILLS OF LADING NOS. WY-1471154, WY-14771180, WY-14771184, WY-1471185, AND WY-1471188, DURING MAY 1953. ALL OF THE BILLS OF LADING WERE ANNOTATED IN THE CONSIGNEE'S CERTIFICATE OF DELIVERY, AS HAVING BEEN "RECORDED FOR TRANSIT," THUS INDICATING COMPLIANCE WITH THE PROVISIONS OF EXECUTIVE COMMITTEE-WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION NO. 29-A, AUTHORIZING TRANSIT AT PANHANDLE, NEBRASKA.

FOR THIS TRANSPORTATION, YOU CLAIMED AND WERE PAID CHARGES COMPUTED ON THE BASIS OF A CLASS-65 RATE OF $2.98 PER 100 POUNDS, PLUS 15 PERCENT, APPARENTLY AUTHORIZED BY ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION NO. 14 AND SOUTHWESTERN LINES TARIFF NO. NO. 251, AS INDICATED ON SUPPLEMENTAL BILL NO. W-263004-A. IN THE SUBSEQUENT AUDIT OF THIS PAYMENT A NOTICE OF OVERPAYMENT WAS ISSUED IN THE AMOUNT OF $304.92,WHEREIN THE CHARGES WERE COMPUTED ON THE BASIS OF AN AGGREGATE OF INTERMEDIATE RATES OVER TEXARKANA, TEXAS-ARKANSAS. THEREAFTER, YOU PROTESTED AGAINST THE USE OF THIS AGGREGATE OF INTERMEDIATE RATES BUT MADE NO MENTION OF THE FACT THAT THESE SHIPMENTS HAD BEEN FORWARDED UNDER THE TRANSIT PRIVILEGE TO A PACIFIC PORT FOR EXPORT. BY LETTER DATED AUGUST 9, 1956, YOU WERE INFORMED OF THE AUTHORITY FOR THE RATES FOUND TO BE APPLICABLE TO THESE SHIPMENTS AND YOU WERE REQUESTED TO MAKE REFUND OF THE OVERPAYMENT. UPON YOUR FAILURE TO RESPOND, THE AMOUNT OF $304.92 WAS DEDUCTED IN MAKING PAYMENT OF AMOUNTS OTHERWISE DUE THE UNION PACIFIC RAILROAD COMPANY, ON ITS BILL F-47288. YOU URGE THAT IN ACCORDANCE WITH ASSOCIATION OF AMERICAN RAILROADS LETTER OF DECEMBER 1, 1949, FILE 215-17, FORMS 1003 ISSUED AGAINST THE INBOUND CARRIER ON SUCH SHIPMENTS AS IN THE INSTANT CASE SHOULD BE WITHDRAWN, AND YOUR REQUEST THE ALLOWANCE OF $304.92.

THE ASSOCIATION OF AMERICAN RAILROADS CIRCULAR OF DECEMBER 1, 1949, FILE 215-17, SIGNED BY E. H. BUNNELL, VICE PRESIDENT, TO WHICH YOU REFER, IS DIRECTED TO RAILROAD CHIEF AND FREIGHT ACCOUNTING OFFICERS. PARAGRAPH 3 OF THAT LETTER IS AS FOLLOWS:

"SHOULD THE GENERAL ACCOUNTING OFFICE, IN ACCORDANCE WITH THE RECORDS OF THAT OFFICE, RENDER A FORM 1003 ON AN INBOUND MOVEMENT TO A TRANSIT STATION AND THE CARRIER'S RECORDS DISCLOSE THAT THE SHIPMENT ACTUALLY WENT FORWARD FROM THE TRANSIT STATION UNDER TRANSIT ARRANGEMENTS, THE FORM 1003 SHOULD BE RETURNED PROMPTLY TO THE GENERAL ACCOUNTING OFFICE DECLINED, GIVING THE SYMBOL AND NUMBER OF THE GOVERNMENT BILL OF LADING FOR THE OUTBOUND MOVEMENT. THE GENERAL ACCOUNTING OFFICE THEN WILL WITHDRAW THE FORM 1003 AND PROCEED IN ACCORDANCE WITH PARAGRAPHS 1 AND 2 ABOVE.'

PARAGRAPH 2 (A) OF THE LETTER PROVIDES:

"THE GENERAL ACCOUNTING OFFICE GENERALLY, WILL MAKE ALL ADJUSTMENTS WITH THE DESTINATION CARRIER EITHER THROUGH A FORM 1003 NOTICE OF OVERPAYMENT TO SUCH CARRIER OR SETTLEMENT OF SUPPLEMENTAL BILL PRESENTED BY SUCH CARRIER REGARDLESS OF THE CONSTRUCTION OF THE THROUGH RATES. THERE WILL BE EXCEPTIONS, HOWEVER, TO THIS GENERAL PROCEDURE, SUCH AS WHERE SOME PORTIONS OF A MOVEMENT, ORIGIN TO FINAL DESTINATION, ARE NOT SUBJECT TO TRANSIT ARRANGEMENTS. ANY ADJUSTMENTS OF CHARGES IN CONNECTION WITH SUCH PORTIONS, WILL BE MADE WITH THE INDIVIDUAL CARRIERS INVOLVED.'

HAD YOU FURNISHED THE INFORMATION REQUIRED BY PARAGRAPH 3 OF THE CIRCULAR LETTER AT THE TIME OF YOUR PROTEST OF THE OVERPAYMENT ACTION, IT IS PROBABLE THAT THE OVERPAYMENT NOTICE WOULD HAVE BEEN WITHDRAWN AND ANY NECESSARY ADJUSTMENTS MADE IN THE AUDIT OF THE CHANGE PAID TO THE SOUTHERN PACIFIC RAILROAD FOR THE THROUGH TRANSIT MOVEMENT. HOWEVER, SINCE THE AMOUNT NOW CLAIMED REPRESENTS REVENUE THAT MAY BE DUE YOU AS THE INBOUND CARRIER ON A TRANSITED SHIPMENT, WE WOULD NOT BE JUSTIFIED IN PAYING YOU AND THEREBY PREJUDICING RIGHTS ACCRUING EITHER TO THE GOVERNMENT OR TO THE FINAL DESTINATION CARRIER IN THE SETTLEMENT OF THE CHARGES ON THE THROUGH TRANSIT MOVEMENT. ANY ADJUSTMENT OF REVENUES THAT NOW MAY BE MADE ON THIS SHIPMENT FALLS WITHIN THE PROVISIONS OF PARAGRAPH 2 (A) OF THE CIRCULAR LETTER. WE NOTE, PARENTHETICALLY, THAT THE EXCEPTION IN PARAGRAPH 2 (A) APPARENTLY CONTEMPLATES SITUATIONS WHERE, IN THE AUDIT OF A THROUGH TRANSIT MOVEMENT, IT IS DETERMINED THAT A PORTION OF THE MOVEMENT WAS NOT SUBJECTED TO TRANSIT ARRANGEMENTS.

IN THE CIRCUMSTANCES, IT IS SUGGESTED THAT YOU SEEK THIS ADJUSTMENT OF THE CHARGES THROUGH THE SOUTHERN PACIFIC RAILROAD COMPANY, AS THE FINAL DESTINATION CARRIER, SINCE PARAGRAPH 2 (A) OF THE CITED CIRCULAR LETTER OF DECEMBER 1, 1949, SEEMS TO CONTEMPLATE THE ADJUSTMENT OF THROUGH TRANSIT CHARGES IN A SITUATION SUCH AS THIS BEING MADE BETWEEN THE GOVERNMENT AND THE FINAL DESTINATION CARRIER, EITHER THROUGH A FORM 1003 OR A SUPPLEMENTAL BILL, AND ANY ADDITIONAL ADJUSTMENT OF THE ..END :