B-140556, OCT. 9, 1959

B-140556: Oct 9, 1959

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LOUIS-SAN FRANCISCO RAILWAY COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 17. YOU ORIGINALLY BILLED AND WERE PAID $345.14. IN OUR AUDIT OF THE PAID VOUCHER IT WAS DETERMINED THAT THE TRANSIT PRIVILEGE WAS NOT AVAILABLE. THE APPLICABLE CHARGES WERE COMPUTED ON THE BASIS OF A LOCAL RATE FROM MEMPHIS. THE RESULTING OVERPAYMENT OF $69.20 WAS REFUNDED BY YOU IN APRIL 1958. WHICH YOU SAY IS NOT FOR A TRANSIT CHARGE BUT A STORAGE CHARGE TO WHICH THE ILLINOIS CENTRAL RAILROAD IS ENTITLED. YOUR ALLEGATION AS TO THESE STORAGE CHARGES IS NOT SUPPORTED BY ANY FACTUAL EVIDENCE. THE SHIPMENT IN QUESTION APPARENTLY WAS HELD AT THE ARMED SERVICE FORCES DEPOT AT MEMPHIS FOR A SHORT TIME AFTER DELIVERY AT THAT POINT.

B-140556, OCT. 9, 1959

TO ST. LOUIS-SAN FRANCISCO RAILWAY COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 17, 1959, CLAIM 20183- B-5, IN EFFECT REQUESTING REVIEW OF OUR SETTLEMENT CERTIFICATE DATED JANUARY 16, 1959, DISALLOWING YOUR CLAIM, PER BILL NO. D-54695 A, IN THE AMOUNT OF $7.19, FOR ALLEGED STORAGE CHARGES ON A SHIPMENT OF CLOTHING ORIGINATING AT ROYCE, NEW JERSEY, CONSIGNED TO MEMPHIS, TENNESSEE, AND SUBSEQUENTLY RESHIPPED TO KANSAS CITY, MISSOURI.

YOUR CLAIM COVERS 20,508 POUNDS OF THE CLOTHING SHIPPED FROM MEMPHIS SUBJECT TO AN INDICATED CHARGE OF 3 1/2 CENTS PER 100 POUNDS SHOWN ON BILL OF LADING WW-668759 AS BEING FOR TRANSIT.

AS DELIVERING CARRIER ON THE MOVEMENT UNDER BILL OF LADING WW 668759, YOU ORIGINALLY BILLED AND WERE PAID $345.14, INCLUDING THE $7.19 FOR TRANSIT, ON VOUCHER NO. 108496 IN THE FEBRUARY 1946 ACCOUNTS OF LIEUTENANT COLONEL M. B. HALE. IN OUR AUDIT OF THE PAID VOUCHER IT WAS DETERMINED THAT THE TRANSIT PRIVILEGE WAS NOT AVAILABLE, SINCE THE SHIPMENT DID NOT MOVE TO A PORT FOR EXPORT UNDER THE PROVISIONS OF SECTION 22 QUOTATION NO. 16-F. THEREFORE, THE APPLICABLE CHARGES WERE COMPUTED ON THE BASIS OF A LOCAL RATE FROM MEMPHIS, TENNESSEE, TO KANSAS CITY, MISSOURI, LESS LAND-GRANT DEDUCTIONS. THE RESULTING OVERPAYMENT OF $69.20 WAS REFUNDED BY YOU IN APRIL 1958.

LATER, YOU SUBMITTED YOUR SUPPLEMENTAL BILL NO. D-54695-A FOR $7.19, WHICH YOU SAY IS NOT FOR A TRANSIT CHARGE BUT A STORAGE CHARGE TO WHICH THE ILLINOIS CENTRAL RAILROAD IS ENTITLED. YOUR ALLEGATION AS TO THESE STORAGE CHARGES IS NOT SUPPORTED BY ANY FACTUAL EVIDENCE. THE SHIPMENT IN QUESTION APPARENTLY WAS HELD AT THE ARMED SERVICE FORCES DEPOT AT MEMPHIS FOR A SHORT TIME AFTER DELIVERY AT THAT POINT; THE FREIGHT CHARGES INBOUND AND OUTBOUND WERE COMPUTED ON THE BASIS OF LOCAL RATES; AND TRANSIT WAS NOT AVAILABLE UNDER QUOTATION NO. 16-F. THE SO-CALLED STORAGE CHARGE CLAIMED BY YOU IS COMPUTED AT 3 1/2 CENTS PER 100 POUNDS WHICH IS THE RATE PAYABLE FOR THE TRANSIT PRIVILEGE AS SET FORTH IN ITEM NO. 8 OF QUOTATION 16-F.

AS INDICATED, YOU HAVE FURNISHED NO RECORD, AND WE HAVE FOUND NONE, OF STORAGE OR ANY SERVICE OTHER THAN TRANSPORTATION FOR WHICH THE UNITED STATES IS LIABLE UNDER THE TERMS OF HANDLING THE SUBJECT SHIPMENT. IN THE CIRCUMSTANCES, THE SETTLEMENT CERTIFICATE DISALLOWING YOUR CLAIM FOR $7.19 APPEARS TO BE CORRECT AND, ACCORDINGLY, IS SUSTAINED.