B-135209, AUGUST 14, 1958, 38 COMP. GEN. 123

B-135209: Aug 14, 1958

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TRANSPORTATION - TRANSIT PRIVILEGES - FAILURE TO UNLOAD AND RECORD FOR TRANSIT - DIVERTED SHIPMENT RAIL SHIPMENTS OF AMMUNITION WHICH WERE REFORWARDED FROM THE TRANSIT POINT WITHOUT UNLOADING OR RECORDING FOR TRANSIT ARE. THE TRANSPORTATION CHARGES FOR THESE SHIPMENTS ARE FOR COMPUTATION ON THE THROUGH RATE. 1958: FURTHER REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 4. THE CARS WERE FORWARDED TO CAMP STANLEY. A PART OF THE BILLING ON THESE SHIPMENTS WAS SURRENDERED FOR TRANSIT CREDIT IN CONNECTION WITH SHIPMENTS OF EXPLOSIVE PROJECTILES. IN YOUR REQUEST FOR REVIEW YOU STATE "THAT A TRANSIT PRIVILEGE WAS NOT ACCORDED THESE SHIPMENTS AT DEFENSE. WAS PLACED FOR UNLOADING AND THEN DIVERTED.

B-135209, AUGUST 14, 1958, 38 COMP. GEN. 123

TRANSPORTATION - TRANSIT PRIVILEGES - FAILURE TO UNLOAD AND RECORD FOR TRANSIT - DIVERTED SHIPMENT RAIL SHIPMENTS OF AMMUNITION WHICH WERE REFORWARDED FROM THE TRANSIT POINT WITHOUT UNLOADING OR RECORDING FOR TRANSIT ARE, NEVERTHELESS, ENTITLED TO THE TRANSIT PRIVILEGE UNDER ASSOCIATION OF AMERICAN RAILROADS SECTION 22, QUOTATION NO. 31-D SERIES, WHICH PROVIDES A TRANSIT PRIVILEGE FOR FREIGHT ACTUALLY OR CONSTRUCTIVELY PLACED FOR DELIVERY AT THE TRANSIT POINT; THEREFORE, THE TRANSPORTATION CHARGES FOR THESE SHIPMENTS ARE FOR COMPUTATION ON THE THROUGH RATE, THE PROPER OUT-OF-LINE OR BACK-HAUL CHARGES AND THE TRANSIT CHARGES.

TO THE TEXAS AND NEW ORLEANS RAILROAD COMPANY, AUGUST 14, 1958:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 4, 1958, FILE WV- 4207-6-RG, REQUESTING REVIEW OF THE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR $4,061.43 ADDITIONAL, ALLEGED TO BE DUE FOR THE TRANSPORTATION OF CERTAIN SHIPMENTS OF AMMUNITION FOR CANNON WITH EXPLOSIVE PROJECTILE, SHELL HE-155MM, MADE FROM ARMY POINT, CALIFORNIA, ON BILLS OF LADING WV- 5020697, WV-5020698, WV-5020699, WV-5020722, AND WV-5020723, IN MAY 1944, TO DEFENSE, TEXAS. AFTER PLACEMENT FOR UNLOADING, THE CARS WERE FORWARDED TO CAMP STANLEY, TEXAS, FOR STORAGE IN TRANSIT UNDER THE PROVISIONS OF ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION NO. 31 SERIES. THEREAFTER, IN SEPTEMBER 1944, A PART OF THE BILLING ON THESE SHIPMENTS WAS SURRENDERED FOR TRANSIT CREDIT IN CONNECTION WITH SHIPMENTS OF EXPLOSIVE PROJECTILES, SHELL, SMOKE PHOSPHORUS, FROM CAMP STANLEY, TEXAS, TO BRAITHWAITE, TEXAS, ON BILLS OF LADING WV-4438686, WV-4438687, AND WV- 4438688, IN SEPTEMBER 1944.

IN YOUR REQUEST FOR REVIEW YOU STATE "THAT A TRANSIT PRIVILEGE WAS NOT ACCORDED THESE SHIPMENTS AT DEFENSE, TEXAS, BUT WAS PLACED FOR UNLOADING AND THEN DIVERTED, WHICH UNDER THE TERMS OF THE RECONSIGNING TARIFF WOULD PROHIBIT THE APPLICATION OF A THROUGH RATE.'

THESE SHIPMENTS WERE TRANSPORTED UNDER THE PROVISIONS OF ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION 31 SERIES. ITEM NO. 19, ENTITLED " FREIGHT RESHIPPED FROM TRANSIT POINT WITHOUT BEING UNLOADED," OF SECTION 22 QUOTATION NO. 31-D PROVIDES THAT:

FREIGHT IN A CAR WHICH IS CONSIGNED TO A TRANSIT POINT AND THERE ACTUALLY OR CONSTRUCTIVELY PLACED FOR DELIVERY, AND SUBSEQUENTLY RESHIPPED THEREFROM AS PROVIDED IN ITEM NO. 1 WITHOUT BEING UNLOADED ALSO IS SUBJECT AND ENTITLED TO THE TRANSIT PRIVILEGE. ON SUCH SHIPMENTS, AT THE OPTION OF THE GOVERNMENT, THE PROVISIONS OF ITEMS NOS. 13, 16 AND 18 WILL NOT APPLY, AND ALL CHARGES ACCRUING TO, FROM, AND AT THE TRANSIT POINT UNDER THIS QUOTATION MAY BE ALLOWED TO FOLLOW THE CAR FOR COLLECTION AT PORT OF TRANSSHIPMENT OR RAIL HEAD. ( ITALICS SUPPLIED.)

UNDER THIS ITEM THE PLACEMENT OF THESE SHIPMENTS FOR UNLOADING AT DEFENSE, TEXAS, AND THEIR REFORWARDING WITHOUT UNLOADING OR RECORDING FOR TRANSIT IS TO BE TAKEN AS A TRANSIT PRIVILEGE. THEREFORE, THE THROUGH RATE, AND THE PROPER OUT-OF-LINE OR BACK-HAUL CHARGES, TRANSIT CHARGES, TC., ARE PROPERLY APPLICABLE ON THESE SHIPMENTS. ACCORDINGLY, THE SETTLEMENT OF YOUR CLAIM PREMISED ON THE AVAILABILITY OF TRANSIT AT DEFENSE, TEXAS, IS PROPER AND IS SUSTAINED.