B-137904, OCT. 23, 1961

B-137904: Oct 23, 1961

Additional Materials:

Contact:

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

 

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

I. WHITTEN TRANSFER CO.: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JANUARY 31. STATING THAT DELIVERY WAS ATTEMPTED AT ORIGINAL DESTINATION- - PEPPER. - AND THAT THE DIVERSION WAS MADE AT THAT POINT TO WYSOR. YOU ASSERT THAT THIS WOULD HAVE HAD TO BE THE CASE SINCE YOUR TRUCKS WERE NOT EQUIPPED WITH RADIOS. YOU DID NOT HAVE TERMINAL FACILITIES INTERMEDIATE FROM THE POINT OF INTERCHANGE TO PEPPER. WE HAVE MADE A FURTHER INVESTIGATION WITH THE ADMINISTRATIVE OFFICE CONCERNED AND HAVE RECEIVED A DETAILED REPORT SHOWING THE HANDLING OF THESE SHIPMENTS AT WYSOR. AT WHICH TIME THE TRAILERS WERE SPOTTED AT THE MAGAZINES AND UNLOADING PERFORMED. THERE WOULD HAVE BEEN NO ONE AT PEPPER AT THAT TIME OF THE MORNING WHO WOULD HAVE BEEN IN A POSITION TO INSTRUCT THE DRIVER AS TO WHETHER SHIPMENTS WERE INTENDED FOR PEPPER OR WYSOR.

B-137904, OCT. 23, 1961

TO C. I. WHITTEN TRANSFER CO.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JANUARY 31, 1961, IN EFFECT REQUESTING RECONSIDERATION OF OUR DECISION OF APRIL 13, 1959, B 137904, WHICH SUSTAINED IN PART THE DISALLOWANCE OF YOUR CLAIMS FOR ADDITIONAL FREIGHT CHARGES ON 14 VOLUME SHIPMENTS OF SMOKELESS POWDER MOVED IN 45 TRAILERS, FROM TYNER, TENNESSEE, TO RADFORD ARSENAL, WYSOR, VIRGINIA, DURING FEBRUARY AND MARCH 1956. OUR DECISION OF APRIL 13, 1959, AUTHORIZED THE ISSUANCE OF SETTLEMENTS WHICH ALLOWED YOU A RECONSIGNING CHARGE OF $3.65 ON EACH OF THE 14 SHIPMENTS INVOLVED, BUT HELD THAT THE ALLOWABLE FREIGHT CHARGES SHOULD BE LIMITED TO THOSE APPLICABLE FROM ORIGINAL POINT OF ORIGIN TO WYSOR, VIRGINIA, RATHER THAN PEPPER, VIRGINIA.

IN YOUR PRESENT LETTER YOU STILL CONTEND THAT YOU SHOULD BE ALLOWED PAYMENT ON THE BASIS OF THE FREIGHT RATE APPLICABLE TO PEPPER, VIRGINIA, STATING THAT DELIVERY WAS ATTEMPTED AT ORIGINAL DESTINATION- - PEPPER--- AND THAT THE DIVERSION WAS MADE AT THAT POINT TO WYSOR. YOU ASSERT THAT THIS WOULD HAVE HAD TO BE THE CASE SINCE YOUR TRUCKS WERE NOT EQUIPPED WITH RADIOS, YOU DID NOT HAVE TERMINAL FACILITIES INTERMEDIATE FROM THE POINT OF INTERCHANGE TO PEPPER, AND YOU DID NOT PATROL THE ROAD IN AN ATTEMPT TO DIVERT THE VEHICLES.

WE HAVE MADE A FURTHER INVESTIGATION WITH THE ADMINISTRATIVE OFFICE CONCERNED AND HAVE RECEIVED A DETAILED REPORT SHOWING THE HANDLING OF THESE SHIPMENTS AT WYSOR, VIRGINIA. THIS REPORT STATES THAT THE GATE LOGS AND OTHER GUARD DEPARTMENT RECORDS DO NOT SHOW THAT ANY OF THE VEHICLES INVOLVED HAD EVER ARRIVED AT PEPPER. THE GUARD RECORDS AT WYSOR DO SHOW THAT THE FIRST TRUCKLOAD OF THIS SERIES OF SHIPMENTS, AS WELL AS OTHERS, ARRIVED AT WYSOR DURING THE EARLY MORNING HOURS PRIOR TO 8:00 A.M. THE ADMINISTRATIVE OFFICE STATES THAT:

"* * * THE DRIVERS PARKED THEIR TRAILERS INSIDE THE GATE IN A HOLDING AREA RESERVED FOR TEMPORARY STORAGE OF EXPLOSIVES AND RETURNED SUBSEQUENT TO 8:00 A.M. AT WHICH TIME THE TRAILERS WERE SPOTTED AT THE MAGAZINES AND UNLOADING PERFORMED. HAD THE DRIVERS FIRST DELIVERED SHIPMENTS TO PEPPER, PRIOR TO 8:00 A.M., THERE WOULD HAVE BEEN NO ONE AT PEPPER AT THAT TIME OF THE MORNING WHO WOULD HAVE BEEN IN A POSITION TO INSTRUCT THE DRIVER AS TO WHETHER SHIPMENTS WERE INTENDED FOR PEPPER OR WYSOR. WE CAN ONLY CONCLUDE THAT THE DRIVERS HAD BEEN INSTRUCTED TO DELIVER SHIPMENTS TO WYSOR, EVEN THOUGH THE SHIPPING DOCUMENTS READ PEPPER.'

FROM THE FACTS RECITED IN THIS ADMINISTRATIVE REPORT IT IS REASONABLE TO CONCLUDE THAT THE INVOLVED SHIPMENTS NEVER REACHED PEPPER BUT INSTEAD WERE STOPPED SHORT AT WYSOR. IN THIS CONNECTION, WHILE NOT AFFIRMATIVELY SO ESTABLISHING, THE REPORT SUGGESTS THAT THE CHANGE IN DESTINATION INSTRUCTION MAY HAVE BEEN "HANDLED INFORMALLY WITH THE CARRIER'S DISPATCHER AT LIN.' WHILE WE ARE NOT CERTAIN HOW OR UNDER WHAT CIRCUMSTANCES YOUR COMPANY WAS INFORMED OF THIS CHANGE IN THE BILL OF LADING DESTINATION (RECONSIGNMENT) AS STATED ABOVE, WE FEEL THAT THE RECORD ESTABLISHES THAT THE SHIPMENTS DID NOT REACH PEPPER, VIRGINIA, PRIOR TO DELIVERY AT WYSOR, VIRGINIA.

WE ARE ACCORDINGLY OF THE VIEW THAT THE SETTLEMENTS MADE CONSISTENT WITH OUR DECISION OF APRIL 13, 1959, ARE CORRECT, AND THEY ARE SUSTAINED.