B-134565, JUL. 17, 1958

B-134565: Jul 17, 1958

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TO CHICAGO AND NORTH WESTERN RAILWAY COMPANY: REFERENCE IS MADE TO YOUR LETTER OF JUNE 23. YOU ARE ADVISED THAT THE AUDIT BASIS UPON WHICH THE PREVIOUS ADJUSTMENT WAS MADE HAS BEEN RE-EXAMINED. THIS IS CONSISTENT WITH THE SETTLEMENTS MADE IN SEVERAL CHICAGO AND NORTH WESTERN RAILWAY COMPANY CASES IN THE UNITED STATES COURT OF CLAIMS AND WITH THE PRINCIPLE OF CHICAGO.

B-134565, JUL. 17, 1958

TO CHICAGO AND NORTH WESTERN RAILWAY COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF JUNE 23, 1958, FILE FA-70750-B, REQUESTING INFORMATION REGARDING THE STATUS OF YOUR SUPPLEMENTAL BILL NO. 70750-B FOR REFUND OF AN AMOUNT ADMINISTRATIVELY DEDUCTED BY REASON OF OUR AUDIT ACTION.

YOU ARE ADVISED THAT THE AUDIT BASIS UPON WHICH THE PREVIOUS ADJUSTMENT WAS MADE HAS BEEN RE-EXAMINED, AND OUR SETTLEMENT OF JULY 3, 1958, IN CLAIM NO. TK-563499, REFLECTS AN APPROPRIATE ADJUSTMENT OF THIS CLAIM BY CONSIDERING 8.9 PERCENT OF THE SHIPMENTS OF SCRAP STEEL AS BEING MILITARY PROPERTY SUBJECT TO LAND-GRANT DEDUCTIONS. THIS IS CONSISTENT WITH THE SETTLEMENTS MADE IN SEVERAL CHICAGO AND NORTH WESTERN RAILWAY COMPANY CASES IN THE UNITED STATES COURT OF CLAIMS AND WITH THE PRINCIPLE OF CHICAGO, ROCK ISLAND AND PACIFIC RAILROAD COMPANY V. UNITED STATES, 151 F.SUPP. 734. ..END :