B-136179, DECEMBER 16, 1958, 38 COMP. GEN. 431

B-136179: Dec 16, 1958

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TRANSPORTATION - TRANSIT PRIVILEGES - TITLE PASSAGE EXPORT SHIPMENTS WHICH MOVE UNDER PREPAID COMMERCIAL BILLS OF LADING TO A TRANSIT POINT FOR STORAGE WHERE THEY ARE RECORDED FOR TRANSIT IN STRICT ACCORDANCE WITH SECTION 22 QUOTATION NO. 38. ARE CHARGEABLE AT THE THROUGH ALL-RAIL CARLOAD RATE FROM INITIAL POINT OF ORIGIN TO PORT OF TRANS-SHIPMENT UNDER THE QUOTATION. NOTWITHSTANDING THAT OWNERSHIP WAS TRANSFERRED TO GOVERNMENT AT THE TRANSIT POINT. 1958: REFERENCE IS MADE TO YOUR LETTER OF MAY 13. WERE SHIPPED ON PREPAID COMMERCIAL BILLS OF LADING TO AUBURN. THAT THE STORAGE IN TRANSIT AT AUBURN WAS IN ACCORDANCE WITH EXECUTIVE COMMITTEE-1WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION NO. 38.

B-136179, DECEMBER 16, 1958, 38 COMP. GEN. 431

TRANSPORTATION - TRANSIT PRIVILEGES - TITLE PASSAGE EXPORT SHIPMENTS WHICH MOVE UNDER PREPAID COMMERCIAL BILLS OF LADING TO A TRANSIT POINT FOR STORAGE WHERE THEY ARE RECORDED FOR TRANSIT IN STRICT ACCORDANCE WITH SECTION 22 QUOTATION NO. 38, WITH OWNERSHIP TRANSFERRED TO AND FREIGHT CHARGES ASSUMED BY THE GOVERNMENT AT THE TRANSIT POINT, ARE CHARGEABLE AT THE THROUGH ALL-RAIL CARLOAD RATE FROM INITIAL POINT OF ORIGIN TO PORT OF TRANS-SHIPMENT UNDER THE QUOTATION, NOTWITHSTANDING THAT OWNERSHIP WAS TRANSFERRED TO GOVERNMENT AT THE TRANSIT POINT.

TO THE UNION PACIFIC RAILROAD COMPANY, DECEMBER 16, 1958:

REFERENCE IS MADE TO YOUR LETTER OF MAY 13, 1958, FILE GW-263904, REQUESTING REVIEW OF THE DISALLOWANCE (TK-640500) OF YOUR CLAIM FOR $215.87 AS A PART OF THE CHARGES ALLEGED TO BE DUE FOR TRANSPORTING TWO SHIPMENTS OF SMOKED HAM FROM AUBURN TO SEATTLE, WASHINGTON, ON TRANSIT BILLS OF LADING NOS. WZ-T-207965 AND WZ-T-207953, JUNE 18, 1953. THESE BILLS OF LADING BEAR THE NOTATION " FOR EXPORT STORAGE IN TRANSIT.' THEY SHOW THAT THE SHIPMENTS ORIGINATED AT BALTIMORE, MARYLAND, AND WERE SHIPPED ON PREPAID COMMERCIAL BILLS OF LADING TO AUBURN, WASHINGTON, AND THAT THE STORAGE IN TRANSIT AT AUBURN WAS IN ACCORDANCE WITH EXECUTIVE COMMITTEE-1WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION NO. 38. THE FREIGHT BILLS PREPARED BY THE UNION PACIFIC RAILROAD COMPANY AGENT AT AUBURN, WASHINGTON, SHOW THAT THE SHIPMENTS WERE ORIGINALLY CONSIGNED TO SEATTLE QUARTERMASTER MARKET CENTER, SEATTLE, WASHINGTON, IN CARE OF THE AUBURN QUARTERMASTER COLD STORAGE DEPOT, AUBURN, WASHINGTON.

FOR THE TRANSPORTATION OF THESE SHIPMENTS FROM AUBURN TO SEATTLE, WASHINGTON, YOU CLAIMED ORIGINALLY AND WERE PAID ONLY THOSE CHARGES WHICH ACCRUED FOR TRANSIT, ICE, SALT, SWITCHING, ETC., THUS INDICATING THAT THE CHARGES PREPAID AT THE POINT OF ORIGIN WERE SUFFICIENT TO COVER THE TRANSPORTATION CHARGE FROM THE ORIGINAL POINT OF ORIGIN TO THE FINAL DESTINATION. THEREAFTER, YOU CLAIMED $215.87 ADDITIONAL COMPUTED ON THE BASIS OF THE LOCAL RATE OF 27 CENTS PER 100 POUNDS, PLUS 15 PERCENT, FROM AUBURN TO SEATTLE, WASHINGTON, LESS THE AMOUNT PREVIOUSLY CLAIMED AND PAID FOR THE TRANSIT PRIVILEGE.

THIS CLAIM WAS DISALLOWED FOR THE REASON THAT THE RECORD SHOWED THAT THESE SHIPMENTS WERE PROPERLY RECORDED FOR TRANSIT, AND THAT THEY WERE THE PROPERTY OF AND THE CHARGES THEREON WERE ASSUMED BY THE UNITED STATES. WITH YOUR PRESENT SUBMISSION THERE WERE SUBMITTED PHOTOSTATIC COPIES OF THE ORIGINAL PREPAID FREIGHT BILLS PREPARED AT BALTIMORE, MARYLAND, WHICH YOU ALLEGE SHOW THAT THE FREIGHT CHARGES WERE PAID BY THE SHIPPER, THEREFORE THAT SECTION 22 QUOTATION NO. 38 WAS NOT APPLICABLE TO THIS CASE. YOU REQUEST THE ALLOWANCE OF $215.87.

EXECUTIVE COMMITTEE-1WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION NO. 38 PROVIDES IN ITEM NO. 1 ( TRAFFIC COVERED) THAT---

THE TRAFFIC COVERED IS THAT ON WHICH ALL BENEFITS OF TRANSIT HEREINAFTER ENUMERATED WILL ACCRUE ONLY TO THE DEPARTMENT OF THE ARMY, * * * HEREINAFTER REFERRED TO AS "THE GOVERNMENT," * * * WHEN ORIGINATING AT POINTS OR PORTS IN CONTINENTAL UNITED STATES, HERETOFORE OR HEREAFTER MOVING INTO THE TRANSIT POINT * * * ON PREPAID COMMERCIAL BILLS OF LADING WHEN SUCH PREPAID COMMERCIAL BILLS OF LADING OR THE PREPAID FREIGHT BILL ISSUED AT THE TRANSIT POINT BEARS AN ENDORSEMENT, " THIS SHIPMENT IS THE PROPERTY OF, AND THE FREIGHT CHARGES ARE ASSUMED BY THE UNITED STATES GOVERNMENT.' THE TRAFFIC ABOVE REFERRED TO MUST MOVE ALL-RAIL, IN CARLOADS (SEE NOTE), CONSIGNED TO AND COMPLETELY UNLOADED AT:

(A) A TRANSIT POINT; OR (B) A PORT OF TRANSSHIPMENT OR RAILHEAD IN THE FIRST INSTANCE BUT WHICH IS STOPPED EN ROUTE AT A TRANSIT POINT; AND SUBSEQUENTLY RESHIPPED BY THE GOVERNMENT ALL RAIL, IN CARLOADS, TO A PORT IN THE CONTINENTAL UNITED STATES AND FROM THERE TRANSSHIPPED BY WATER TO A FOREIGN COUNTRY, TO ALASKA, OR TO INSULAR POSSESSIONS OF THE UNITED STATES.

ITEM NO. 3 ( TRANSIT POINTS) PROVIDES THAT THE TERM "TRANSIT POINT" MEANS " A GOVERNMENT INSTALLATION OR WAREHOUSE AT POINTS AS FOLLOWS.' AUBURN, WASHINGTON, IS NAMED AS ONE OF SUCH ,TRANSIT POINTS.'

CONCERNING THE RATE TO BE APPLIED TO THE TRANSIT POINT, ITEM NO. 6 PROVIDES THAT THE RATE ON THE INBOUND MOVEMENT "TO THE TRANSIT POINT SHALL BE THE APPLICABLE ALL-RAIL CARLOAD RATE ON THE SHIPMENT FROM ITS INITIAL POINT OF ORIGIN * * * APPLICABLE ON FREIGHT HAVING ITS DESTINATION AT SUCH (TRANSIT) POINT.' WITH RESPECT TO THE THROUGH RATE, FROM THE ORIGINAL POINT OF ORIGIN TO THE PORT OF EXPORTATION THIS ITEM PROVIDES THAT THE SHIPMENT SHALL BE ENTITLED TO THE ALL-RAIL CARLOAD RATE APPLICABLE ON THE COMMODITY FROM SUCH INITIAL POINT OF ORIGIN TO THE PORT OF TRANSSHIPMENT.

ITEM NO. 13, AS AMENDED IN THE AMENDMENT NO. 2, PROVIDES:

EXCEPT AS OTHERWISE PROVIDED IN THIS ITEM, ALL CHARGES, WITHOUT LIMITATION, INCLUDING DIVERSION, RECONSIGNMENT AND/OR SWITCHING CHARGES, IF ANY, TO THE TRANSIT POINT SHALL BE PAID BY THE GOVERNMENT PROMPTLY AFTER ARRIVAL OF THE FREIGHT AT SUCH POINT.

AS TO SHIPMENTS MOVING ON PREPAID COMMERCIAL BILLS OF LADING, AS PROVIDED IN ITEM NO. 1, THE PROVISIONS OF THIS ITEM SHALL APPLY AS TO ALL CHARGES, WITHOUT LIMITATION, OTHER THAN LINE-HAUL CHARGES TO THE TRANSIT POINT, AS PROVIDED IN ITEM 6.

UNDER THIS ITEM THE CERTIFICATION OF THE OFFICER AT AUBURN, WASHINGTON, ONLY EXTENDED TO CHARGES "OTHER THAN LINE-HAUL CHARGES TO THE TRANSIT POINT.'

THE PERTINENT PROVISIONS OF ITEM NO. 16 ARE AS FOLLOWS:

ON SHIPMENTS, MOVING ON COMMERCIAL PREPAID BILLS OF LADING, THE TRANSIT- GRANTING CARRIER'S AGENT WILL FURNISH THE GOVERNMENT SUFFICIENT DUPLICATE COPIES OF THE INBOUND PREPAID FREIGHT BILLS FOR RECORDING. SUCH FREIGHT BILLS SHALL BE ENDORSED BY A REPRESENTATIVE OF THE GOVERNMENT:

" RECORDED FOR TRANSIT.'

THE RECORD WITH RESPECT TO THESE SHIPMENTS SHOWS THAT THEY WERE PROCURED FROM THE DUKELAND PACKING COMPANY, BALTIMORE, MARYLAND, UNDER CONTRACTS WHICH PROVIDED FOR DELIVERY " F.O.B.' TO THE , PROPERTY OFFICER, P.O. BOX 3225, PIER 91, QM MARKET CENTER, SEATTLE, WASHINGTON" WITH " DEL. TO: AUBURN COLD STORAGE, AUBURN WASHINGTON.' THUS, THE SHIPMENT BECAME THE PROPERTY OF THE UNITED STATES UPON DELIVERY AT AUBURN, WASHINGTON.

CONCERNING THE CHANGE OF OWNERSHIP AT AUBURN, WASHINGTON, THE RIGHT TO TRANSIT IS NOT AFFECTED BY THE TRANSFER OF OWNERSHIP AT THE TRANSIT POINT. SEE INTERSTATE COMMERCE COMMISSION V. DELAWARE, LACKAWANNA AND WESTERN RAILROAD, 220 U.S. 235 AND 18 COMP. GEN. 354. THE INTERSTATE COMMERCE COMMISSION HAS HELD THAT THE ELECTION TO TAKE THE TRANSIT PRIVILEGE BELONGS SOLELY TO THE PARTY PAYING THE CHARGES FROM THE TRANSIT POINT. GREAT LAKES STEEL CORP. V. BALTIMORE AND OHIO RAILROAD CO., 264 I.C.C. 779. THE RECORD INDICATES THAT THE CARRIER'S AGENT AT AUBURN, WASHINGTON, FURNISHED THE GOVERNMENT OFFICER COPIES OF ITS PREPAID BILLS NOS. 894 AND 928 DATED APRIL 23 AND 24, 1953, FOR USE IN REGISTERING THE SHIPMENTS FOR TRANSIT UNDER THE PROVISIONS OF SECTION 22 QUOTATION NO. 38. THE PHOTOSTATIC COPIES OF SUCH FREIGHT BILLS IN OUR RECORD SHOW THE FOLLOWING LEGEND:

RECORDED FOR TRANSIT. THIS SHIPMENT IS THE PROPERTY OF, AND THE FREIGHT CHARGES ARE ASSUMED BY, THE UNITED STATES GOVERNMENT.

WILLIAM C. LANSFORD

CAPTAIN QMC

TRANSPORTATION OFFICER

SMC SEATTLE, WASHINGTON

PREPAID FREIGHT BILL NO. 928, DATED APRIL 24, 1953, BEARS THIS LEGEND:

RECORDED FOR TRANSIT PRIVILEGE

BUREAU NO. 1205

DATE RECORDED MAY 11 1953

G. J. DOUGHERTY, AGENT

PER BWS

THE RECORD OF TRANSIT FREIGHT BILLS AND TONNAGE CREDITS, DEPARTMENT OF DEFENSE FORMS DD-575, CERTIFICATE NOS. D/A TH 328 AND D/A TH 319, DATED JUNE 29, 1953, SHOW REFERENCE TO TRANSIT NOS. QMMC 1205 AND QMMC 1201, WITH EXPIRATION DATES OF APRIL 15, 1955 AND APRIL 14, 1955, RESPECTIVELY, TOGETHER WITH THE OTHER INFORMATION REQUIRED FOR TRANSIT. EXPORT CERTIFICATES NOS. 476 AND 477, DATED JUNE 29, 1953, ADDRESSED TO YOUR LOCAL FREIGHT AGENT, SEATTLE, WASHINGTON, SHOW THAT THESE SHIPMENTS WERE LOADED ABOARD VESSEL FOR SHIPMENT TO A POINT " WEST OF 170TH MERIDIAN," IN JUNE 1953. THESE CERTIFICATES WERE CERTIFIED BY BERNARD H. DUFFY, TRANSPORTATION AGENT, QUARTERMASTER MARKET CENTER, SEATTLE, WASHINGTON, AS FOLLOWS:

SHIPPED FOR ACCOUNT OF AND FREIGHT CHARGES ASSUMED BY THE UNITED STATES GOVERNMENT. THIS WILL CERTIFY THAT THE ABOVE TONNAGE WAS LOADED FOR SHIPMENT TO THE OVERSEAS DESTINATION AS INDICATED ABOVE.

ACCORDINGLY, THESE SHIPMENTS WERE HANDLED STRICTLY IN ACCORDANCE WITH THOSE PROVISIONS OF SECTION 22 QUOTATION NO. 38, RELATING TO SHIPMENTS TRANSPORTED INTO THE TRANSIT POINT ON PREPAID COMMERCIAL BILLS OF LADING.

HOWEVER, OUR TRANSPORTATION DIVISION WILL RECOMPUTE THE THROUGH CHARGES IN THE LIGHT OF THE AMOUNTS PREPAID LESS REFUNDS TO THE STORAGE POINT, AND THE AMOUNTS, IF ANY, FOUND TO BE DUE WILL BE ALLOWED TO YOU, IF OTHERWISE PROPER.