B-149417, B-137180, SEP. 25, 1962

B-137180,B-149417: Sep 25, 1962

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

THESE CLAIMS COVER BILLS OF LADING ON WHICH THE COMMODITY SHIPPED GENERALLY IS DESCRIBED AS . THEY WERE DISALLOWED IN THE SETTLEMENT CERTIFICATES BECAUSE IT WAS OUR VIEW THAT THE APPLICABLE RATES WERE THOSE PUBLISHED TO APPLY ON SHIPMENTS OF "RADIO MOBILE COMMUNICATION UNITS" IN TRANS-CONTINENTAL FREIGHT BUREAU SECTION 22 QUOTATION NO. 117 B. WERE INAPPLICABLE AS A CHARGE BASIS ON RADIO MOBILE COMMUNICATION UNITS DIFFERENT IN TYPE AND DESIGN FROM THOSE CONTEMPLATED WHEN THE ADMINISTRATIVE OFFICE REQUESTED THE OFFER OF REDUCED RATES AS REFLECTED BY AMENDMENT NO. 1 TO QUOTATION NO. 117-B. WE TODAY HAVE INSTRUCTED OUR TRANSPORTATION DIVISION TO RE-EXAMINE THESE CLAIMS IN THE LIGHT OF THE COURT'S DECISION AND TO MAKE APPROPRIATE REVISIONS IN THE ALLOWABLE CHARGES GIVING EFFECT TO THE LOWEST AVAILABLE RATE BASES.

B-149417, B-137180, SEP. 25, 1962

TO SOUTHERN PACIFIC COMPANY:

WE REFER AGAIN TO YOUR VARIOUS LETTERS WRITTEN IN JULY 1962, UNDER YOUR FILE YM 85-D, AND CERTAIN SUPPLEMENTAL BILL NUMBERS, REQUESTING REVIEW OF SETTLEMENT CERTIFICATES WHICH DISALLOWED 60 OF YOUR CLAIMS FOR ADDITIONAL TRANSPORTATION CHARGES ON SHIPMENTS OF SO-CALLED RADIO MOBILE COMMUNICATION UNITS. YOU ASKED THAT THE CLAIMS INVOLVED IN THE SETTLEMENTS BE PROCESSED FOR PAYMENT IN VIEW OF THE DECISION ON JUNE 6, 1962, IN WESTERN PACIFIC RAILROAD COMPANY V. UNITED STATES, COURT OF CLAIMS NO. 382-58.

THESE CLAIMS COVER BILLS OF LADING ON WHICH THE COMMODITY SHIPPED GENERALLY IS DESCRIBED AS ,BUILDINGS PORTABLE, NOIBN, WOOD OR WOODEN AND STEEL AND RADIO RECEIVING AND TRANSMITTING SETS COMBINED (SHELTER AND RADIO SETS AN/GRC-26A).' THEY WERE DISALLOWED IN THE SETTLEMENT CERTIFICATES BECAUSE IT WAS OUR VIEW THAT THE APPLICABLE RATES WERE THOSE PUBLISHED TO APPLY ON SHIPMENTS OF "RADIO MOBILE COMMUNICATION UNITS" IN TRANS-CONTINENTAL FREIGHT BUREAU SECTION 22 QUOTATION NO. 117 B, AS AMENDED. HOWEVER, IN THE WESTERN PACIFIC CASE, THE COURT OF CLAIMS HELD THAT THE RATES IN QUOTATION NO. 117-B, AS AMENDED, WERE INAPPLICABLE AS A CHARGE BASIS ON RADIO MOBILE COMMUNICATION UNITS DIFFERENT IN TYPE AND DESIGN FROM THOSE CONTEMPLATED WHEN THE ADMINISTRATIVE OFFICE REQUESTED THE OFFER OF REDUCED RATES AS REFLECTED BY AMENDMENT NO. 1 TO QUOTATION NO. 117-B.

WE TODAY HAVE INSTRUCTED OUR TRANSPORTATION DIVISION TO RE-EXAMINE THESE CLAIMS IN THE LIGHT OF THE COURT'S DECISION AND TO MAKE APPROPRIATE REVISIONS IN THE ALLOWABLE CHARGES GIVING EFFECT TO THE LOWEST AVAILABLE RATE BASES. IN DUE COURSE YOU WILL RECEIVE NOTICE OF ANY REQUIRED ADJUSTMENT IN THE SETTLEMENTS.