B-141304, JUN. 30, 1960

B-141304: Jun 30, 1960

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TO THE TEXAS AND NEW ORLEANS RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR REQUEST FOR REVIEW OF OUR SETTLEMENT CERTIFICATE DATED NOVEMBER 5. 450 POUNDS WAS APPLIED AGAINST A SHIPMENT OF LIKE WEIGHT MOVING UNDER BILL OF LADING AF-T-77362 FOR EXPORT THROUGH THE PORT OF NEW ORLEANS. 300 POUNDS WAS APPLIED TO COVER PART OF A SHIPMENT MOVING UNDER BILL OF LADING AF-T-87490 (COVERED BY YOUR BILL NO. ITEM 15 (G) OF EC-WTA SECTION 22 QUOTATION NO. 38 PROVIDES: "WHEN THE ACTUAL TRANSIT WEIGHT OF THE INBOUND AND OUTBOUND SHIPMENT IS LESS THAN THE MINIMUM WEIGHT GOVERNING THE THROUGH RATE. THE ACTUAL TRANSIT WEIGHT OF THE OUTBOUND SHIPMENT IS THE SAME AS OR LESS THAN THE ACTUAL TRANSIT WEIGHT OF THE INBOUND SHIPMENT.

B-141304, JUN. 30, 1960

TO THE TEXAS AND NEW ORLEANS RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR REQUEST FOR REVIEW OF OUR SETTLEMENT CERTIFICATE DATED NOVEMBER 5, 1959, WHICH DISALLOWED YOUR CLAIM FOR $332.82 ADDITIONAL FREIGHT CHARGES, PER YOUR SUPPLEMENTAL BILL WW-639 1/2- 4-A, OUR CLAIM NO. TK-670627. THE SERVICE IN QUESTION CONSISTED OF THE TRANSPORTATION OF 33,750 POUNDS OF INTERNAL COMBUSTION ENGINES, UNDER BILL OF LADING AF-213750, FROM LOS ANGELES, CALIFORNIA, TO HILL AIR FORCE BASE, UTAH, FOR STORAGE IN TRANSIT, THENCE TO KELLY AIR FORCE BASE, TEXAS, UNDER BILL OF LADING AF-T 33498, FOR AN ADDITIONAL STORAGE IN TRANSIT. OF THE INBOUND WEIGHT OF 33,750 POUNDS RECORDED FOR TRANSIT AT KELLY FIELD, A TOTAL OF 26,450 POUNDS WAS APPLIED AGAINST A SHIPMENT OF LIKE WEIGHT MOVING UNDER BILL OF LADING AF-T-77362 FOR EXPORT THROUGH THE PORT OF NEW ORLEANS, LOUISIANA, AND THE BALANCE OF 7,300 POUNDS WAS APPLIED TO COVER PART OF A SHIPMENT MOVING UNDER BILL OF LADING AF-T-87490 (COVERED BY YOUR BILL NO. WW-8397-4), ALSO TO NEW ORLEANS FOR EXPORT.

ITEM 15 (G) OF EC-WTA SECTION 22 QUOTATION NO. 38 PROVIDES:

"WHEN THE ACTUAL TRANSIT WEIGHT OF THE INBOUND AND OUTBOUND SHIPMENT IS LESS THAN THE MINIMUM WEIGHT GOVERNING THE THROUGH RATE, AND THE ACTUAL TRANSIT WEIGHT OF THE OUTBOUND SHIPMENT IS THE SAME AS OR LESS THAN THE ACTUAL TRANSIT WEIGHT OF THE INBOUND SHIPMENT, THE DIFFERENCE BETWEEN THE ACTUAL AND MINIMUM WEIGHT, INBOUND AND OUTBOUND, WILL BE CONSIDERED TRANSIT TONNAGE. A TRANSIT TONNAGE CREDIT WILL NOT BE ALLOWED FOR ANY INBOUND WEIGHT NOT INCLUDED IN THE OUTBOUND SHIPMENT.'

THE MINIMUM WEIGHT GOVERNING THE THROUGH RATE APPLICABLE ON CARLOADSHIPMENTS OF INTERNAL COMBUSTION ENGINES FROM LOS ANGELES TO NEW ORLEANS, FOR EXPORT, IS 36,000 POUNDS, PER ITEM 7590, TRANS CONTINENTAL FREIGHT BUREAU TARIFF NO. 2-S, I.C.C. NO. 1552. THE ACTUAL TRANSIT WEIGHT (33,750 POUNDS) OF THE INBOUND SHIPMENT UNDER BILL OF LADING AF-T-33498 WAS LESS THAN THIS GOVERNING MINIMUM WEIGHT AND THE ACTUAL TRANSIT WEIGHT (26,450 POUNDS) OF THE OUTBOUND SHIPMENT UNDER BILL OF LADING AF-T-77362 WAS ALSO LESS THAN THIS GOVERNING MINIMUM WEIGHT. IN ADDITION, THE ACTUAL TRANSIT WEIGHT OF THE OUTBOUND SHIPMENT WAS LESS THAN THE ACTUAL TRANSIT WEIGHT OF THE INBOUND SHIPMENT. IN THESE CIRCUMSTANCES, THE BILLING COVERING THE BALANCE OF 7,300 POUNDS REMAINING AT KELLY FIELD, TEXAS, WAS NOT AVAILABLE FOR APPLICATION AGAINST ANOTHER OUTBOUND SHIPMENT, BECAUSE SUCH APPLICATION IS PROHIBITED BY THE PROVISION FOUND IN THE LAST SENTENCE OF ITEM 15 (G) OF THE QUOTATION.

IN THIS SITUATION, SETTLEMENT OF THE THROUGH CHARGES ON THE SHIPMENT COVERED OUTBOUND TO NEW ORLEANS BY BILL OF LADING AF-T-77362 WOULD PROPERLY BE ON THE BASIS OF THE THROUGH RATES AND MINIMUM WEIGHT OF 36,000 POUNDS, LESS THE FULL AMOUNT PAID IN ON THE INBOUND SHIPMENTS TO THE TRANSIT POINTS. THE SETTLEMENT HERE WAS CONSISTENT WITH THIS BASIS.

IN YOUR COMPUTATION OF CHARGES UNDER YOUR SUPPLEMENTAL BILL NO. WW 6339 1/2-4-A, YOU ARE EMPLOYING A THROUGH BASE RATE OF $3.12 PER 100 POUNDS, WHICH IS APPARENTLY THE DOMESTIC RATE NAMED IN TRANS CONTINENTAL FREIGHT BUREAU TARIFF NO. 2'S AND WHICH IS GOVERNED BY A MINIMUM WEIGHT OF 30,000 POUNDS. THUS, IF THAT WERE THE APPLICABLE THROUGH RATE, THE WEIGHT OF THE INBOUND SHIPMENT IN QUESTION WOULD BE GREATER THAN THE MINIMUM WEIGHT GOVERNING THE THROUGH RATE. IN THAT SITUATION THE PROVISIONS OF ITEM 15 (G) WOULD NOT APPLY AND ITEM 15 (F) OF THE QUOTATION WOULD BE APPLICABLE. HOWEVER, SINCE THE SHIPMENT IN QUESTION WAS AN EXPORT SHIPMENT, THE APPLICABLE THROUGH RATE APPARENTLY WAS THE EXPORT RATE NAMED IN ITEM 7590 OF THE TARIFF, WHICH TAKES PRECEDENCE OVER OTHER RATES IN THE TARIFF AND IS GOVERNED BY A MINIMUM WEIGHT OF 36,000 POUNDS. ACCORDINGLY, IN THE INSTANT MATTER, THE ACTUAL TRANSIT WEIGHTS OF BOTH THE INBOUND AND THE OUTBOUND SHIPMENTS WERE LESS THAN THE MINIMUM WEIGHT GOVERNING THE THROUGH RATE, THE PROVISIONS OF ITEM 15 (G) CONTROL, AND THE PROVISIONS OF ITEM 15 (F) ARE THUS EXCLUDED.

SINCE THE SETTLEMENT HERE WAS CONSISTENT WITH THE PROVISIONS OF ITEM 15 (G), AND SINCE THE SETTLEMENT IS NOT SHOWN TO BE OTHERWISE IN ERROR, IT IS SUSTAINED AND YOU ARE REQUESTED TO REFUND PROMPTLY THE OVERPAYMENT OF $257.88 NOW OUTSTANDING, AS SET FORTH IN OUR NOTICE OF OVERPAYMENT, FORM 1003, DATED NOVEMBER 6, 1959. IN SUSTAINING THIS SETTLEMENT UNDER THE APPLICATION OF ITEM 15 (G), WE REALIZE THAT THE GOVERNMENT IS NOT ENTITLED TO APPLICATION OF A CREDIT SLIP OF 7,300 POUNDS AGAINST THE SHIPMENT COVERED BY YOUR BILL NO. WW-8397-4, AS YOU INDICATE IN THE LAST PARAGRAPH OF YOUR LETTER OF NOVEMBER 18, 1959. WE ARE CONSIDERING THAT LETTER, THEREFORE, AS A CLAIM FOR ADDITIONAL FREIGHT CHARGES FOR THE TRANSPORTATION COVERED BY YOUR BILL NO. WW 8397-4 AND WE WILL REAUDIT THAT ACCOUNT, AND CERTIFY FOR PAYMENT SUCH AMOUNT AS IS FOUND DUE. THE SETTLEMENT SHOULD REACH YOU IN DUE COURSE.