B-135767, APR. 29, 1958

B-135767, APR. 29, 1958

TO CENTRAL OF GEORGIA RAILWAY COMPANY:

CONSIDERATION HAS BEEN GIVEN YOUR LETTER DATED DECEMBER 31, 1957, FILE N- 33452-G-A, REQUESTING REVIEW OF OUR SETTLEMENT OF FEBRUARY 3, 1953, WHICH DISALLOWED YOUR CLAIM FOR ADDITIONAL FREIGHT CHARGES OF $280.79 STATED ON SUPPLEMENTAL BILL NO. 33452-A-G-R-548-4.

THIS CLAIM ARISES FROM GOVERNMENT BILLS OF LADING ISSUED BY THE UNITED STATES TREASURY DEPARTMENT, PROCUREMENT DIVISION, FOR SHIPMENTS OF STEEL SLABS, WHICH WERE MOVED IN OCTOBER 1944, TO SAVANNAH, GEORGIA, FOR EXPORT TO GREAT BRITAIN UNDER THE LEND-LEASE ACT OF MARCH 11, 1941, 55 STAT. 31. BILL OF LADING NO. DA-TPS-837397 REFERS TO LEND LEASE REQUISITION NO. BSC/19806/DA/T9; BILLS OF LADING NOS. DA-TPS 837316 AND DA-TPS-837314 REFER TO REQUISITION NO. BSC/20925/DA/531. THE REQUISITION NUMBERS WERE ASSIGNED TO REQUISITIONS FOR DEFENSE ARTICLES UNDER WHICH THE STEEL SLABS WERE PROCURED BY THE BRITISH MINISTRY OF SUPPLY MISSION. IT IS STATED IN MASTER REQUISITIONS BSX 19086 AND BSC-20925, IN ITEMS 5F AND 5C THEREOF, THAT IT "IS IMPOSSIBLE TO SPECIFY PRECISELY THE PURPOSES FOR WHICH ARTICLES TO BE MANUFACTURED FROM THIS STEEL WILL BE USED, EXCEPT TO STATE THAT THESE ARTICLES WILL BE USED IN THE UNITED KINGDOM FOR PURPOSES ABSOLUTELY ESSENTIAL TO MAINTAIN THE MAXIMUM WAR EFFORT.' SUB-REQUISITION NO. BSC/19806/DA/T9 INDICATES THAT THE REQUISITIONED MATERIAL WAS REQUIRED FOR THE PRODUCTION OF AIRCRAFT, TANKS, AND MILITARY VEHICLES AND SUB REQUISITION NO. BSC/20925/DA/T31 INDICATES THAT THE REQUISITIONED MATERIAL WAS INTENDED FOR THE USE OF THE "ARMY, NAVY, AIR AND OTHER GOV-T AGENCIES.'

YOU CONTEND THAT ONLY 50 PERCENT OF THE WEIGHT OF EACH SHIPMENT WAS "MILITARY OR NAVAL PROPERTY OF THE UNITED STATES MOVING FOR MILITARY OR NAVAL AND NOT FOR CIVIL USE," ON THE TRANSPORTATION OF WHICH, UNDER SECTION 321 (A) OF THE TRANSPORTATION ACT OF 1940, 54 STAT. 898, 954, LAND -GRANT RATES ARE APPLICABLE. OUR SETTLEMENT WAS BASED ON THE DETERMINATION THAT THE ENTIRE WEIGHT OF EACH BILL OF LADING WAS MILITARY PROPERTY MOVING FOR MILITARY USE.

THE RECITATIONS IN THESE MASTER REQUISITIONS AND SUB-REQUISITIONS CLEARLY REFLECT SUPPORT FOR A MILITARY CHARACTERIZATION OF THE SHIPMENTS HERE INVOLVED. WE CONSIDERED A SIMILAR SITUATION IN OUR DECISION OF DECEMBER 2, 1957 (B-132866, B-132772), CONCERNING YOUR FILES N-31004-G-A, N-31105-G -A, N-31107-A, AND N-31119-G-A. IN THAT DECISION WE CONCLUDED THAT THE PROPERTY INVOLVED WAS ENTITLED TO A 100 PERCENT MILITARY CHARACTERIZATION FOR LAND-GRANT PURPOSES.

CONCERNING A CONFERENCE HELD HERE ON DECEMBER 10 AND 11, 1952, WITH REPRESENTATIVES OF THE CENTRAL OF GEORGIA RAILWAY COMPANY AND THE DEPARTMENT OF JUSTICE ON THE ITEMS INVOLVED IN THE CASE OF CENTRAL OF GEORGIA RAILWAY CO. V. UNITED STATES, C.CLS. NO. 316-57, IT MAY BE NOTED THAT THE SAID ITEMS ARE COVERED BY REQUISITION SERIES NO. 19807, NOT NO. 20925/DA/531, AND THAT ANY UNDERSTANDING REACHED IN THAT MATTER WAS DESIGNED TO FACILITATE THE DISPOSITION OF PENDING LITIGATION.

ACCORDINGLY, OUR SETTLEMENT OF FEBRUARY 3, 1953, WAS PROPER, AND THE DISALLOWANCE IS SUSTAINED.