B-137603, DECEMBER 23, 1958, 38 COMP. GEN. 449

B-137603: Dec 23, 1958

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THE AMENDMENT WILL BE REGARDED AS HAVING BEEN SUPPORTED BY VALUABLE CONSIDERATION FOR APPLICATION OF THE RETROACTIVE INCREASE TO SHIPMENTS IN STORAGE AT THE TRANSIT POINT. 37 COMP. 1958: FURTHER REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 26. WHICH IS IN EFFECT A REQUEST FOR REVIEW OF THE DISALLOWANCE OF YOUR CLAIM FOR $390.55 ADDITIONAL FOR THE TRANSPORTATION OF THREE SHIPMENTS OF SMALL ARMS AMMUNITION FROM LAKE CITY. AT THE TIME YOUR CLAIM WAS DISALLOWED THE RECORD DID NOT REFLECT ANY VALID REASON FOR GIVING EFFECT TO THE RETROACTIVE PROVISIONS OF THIS AMENDMENT WHICH CURTAILED RIGHTS WHICH ACCRUED TO THE UNITED STATES ON THIS SHIPMENT PRIOR TO THE ISSUANCE OF THAT AMENDMENT. IT NOW APPEARS THAT THE ISSUANCE OF AMENDMENT NO. 61 TO SECTION 22 QUOTATION NO. 16-F WAS THE RESULT OF CERTAIN NEGOTIATIONS BETWEEN THE INTERESTED CARRIERS AND MILITARY PERSONNEL.

B-137603, DECEMBER 23, 1958, 38 COMP. GEN. 449

TRANSPORTATION - STORAGE-IN-TRANSIT PRIVILEGES - INCREASED FREIGHT RATES - RETROACTIVE AMENDMENT ON THE BASIS OF ADDITIONAL INFORMATION WHICH INDICATES THAT AN AMENDMENT TO A SECTION 22 QUOTATION GAVE THE GOVERNMENT CERTAIN INCREASED RIGHTS AND PRIVILEGES NOT PREVIOUSLY AVAILABLE TO IT, AND WHICH MADE INCREASED FREIGHT RATES ON GOVERNMENT SHIPMENTS RETROACTIVELY EFFECTIVE, THE AMENDMENT WILL BE REGARDED AS HAVING BEEN SUPPORTED BY VALUABLE CONSIDERATION FOR APPLICATION OF THE RETROACTIVE INCREASE TO SHIPMENTS IN STORAGE AT THE TRANSIT POINT. 37 COMP. GEN. 287, MODIFIED.

TO THE ERIE RAILROAD COMPANY, DECEMBER 23, 1958:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 26, 1958, FILE 77- 5220-A-5/53, WHICH IS IN EFFECT A REQUEST FOR REVIEW OF THE DISALLOWANCE OF YOUR CLAIM FOR $390.55 ADDITIONAL FOR THE TRANSPORTATION OF THREE SHIPMENTS OF SMALL ARMS AMMUNITION FROM LAKE CITY, MISSOURI, NOVEMBER 29, 1951, TO FORT ESTELL, KENTUCKY, THERE STORED IN TRANSIT, AND ON APRIL 15, 1953, REFORWARDED TO BROOKLYN, NEW YORK, FOR EXPORT.

THE QUESTION RAISED BY YOU CONCERNS THE RETROACTIVE PROVISIONS OF AMENDMENT NO. 61 TO ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION NO. 16-F. AT THE TIME YOUR CLAIM WAS DISALLOWED THE RECORD DID NOT REFLECT ANY VALID REASON FOR GIVING EFFECT TO THE RETROACTIVE PROVISIONS OF THIS AMENDMENT WHICH CURTAILED RIGHTS WHICH ACCRUED TO THE UNITED STATES ON THIS SHIPMENT PRIOR TO THE ISSUANCE OF THAT AMENDMENT.

IT NOW APPEARS THAT THE ISSUANCE OF AMENDMENT NO. 61 TO SECTION 22 QUOTATION NO. 16-F WAS THE RESULT OF CERTAIN NEGOTIATIONS BETWEEN THE INTERESTED CARRIERS AND MILITARY PERSONNEL, AND THAT UNDER THE TERMS OF THIS AMENDMENT THE GOVERNMENT RECEIVED INCREASED RIGHTS AND PRIVILEGES NOT PREVIOUSLY AVAILABLE TO IT, IN CONSIDERATION FOR CERTAIN INCREASED CHARGES TO THE CARRIERS IN THE MEASURE OF APPLICABLE CHARGES.

ACCORDINGLY, WE ARE INSTRUCTING OUR TRANSPORTATION DIVISION THAT IN THE ABSENCE OF ANY INFORMATION SUPPLEMENTING THE PRESENT RECORD WHICH MIGHT RAISE SOME FURTHER QUESTION CONCERNING THE VALIDITY OF THE CHARGE YOU HAVE CLAIMED IN THIS INSTANCE, YOUR SUPPLEMENTAL BILL SHOULD BE ALLOWED, IF OTHERWISE CORRECT. FOR REASONS SET OUT IN THE PRECEDING PARAGRAPH, 37 COMP. GEN. 287, SO FAR AS IT FAILED TO GIVE EFFECT TO AMENDMENT NO. 61, WILL NO LONGER BE FOLLOWED.