B-145277, NOV. 9, 1961

B-145277: Nov 9, 1961

Additional Materials:

Contact:

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

 

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

DEPARTMENT OF JUSTICE: FURTHER REFERENCE IS MADE TO YOUR LETTER OF MARCH 7. YOU ASK OUR VIEWS AS TO WHETHER YOUR DEPARTMENT IS ENTITLED TO LOWER RATES WHICH YOU INDICATE ARE AVAILABLE TO THE DEPARTMENT OF THE DEFENSE. IS A SPECIFIC COMMODITY RATE APPLICABLE TO SHIPMENTS OF "MILITARY STORES/IMPEDIMENTA" MOVING BETWEEN NEW YORK CITY AND LONDON. IS PUBLISHED IN LOCAL AND JOINT MILITARY AIR CARGO TARIFF NO. WE HAVE NO INFORMATION AS TO SIMILAR RATES BEING OFFERED TO AND REJECTED BY THE CIVILIAN AGENCIES OF THE GOVERNMENT. WE HAVE NO INFORMATION AS TO WHY SUCH RATES. WERE NOT CONSIDERED ADVANTAGEOUS BY SUCH AGENCIES. IT IS OBSERVED. PRODUCE CHARGES THAT WERE NOT LOWER THAN THOSE PUBLISHED IN REGULARLY ESTABLISHED TARIFFS.

B-145277, NOV. 9, 1961

TO HONORABLE S. A. ANDRETTA, ADMINISTRATIVE ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF JUSTICE:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF MARCH 7, 1961, IN WHICH YOU FORWARDED A REQUEST FROM E. L. BARTEET, A CERTIFYING OFFICER OF YOUR DEPARTMENT, FOR A DETERMINATION AS TO WHETHER THE CHARGES SHOWN ON CERTAIN AIR FREIGHT BILLS FROM THE SEABOARD AND WESTERN AIRLINES, INC., MAY PROPERLY BE CERTIFIED FOR PAYMENT. YOU ASK OUR VIEWS AS TO WHETHER YOUR DEPARTMENT IS ENTITLED TO LOWER RATES WHICH YOU INDICATE ARE AVAILABLE TO THE DEPARTMENT OF THE DEFENSE.

THE RATE OF 43 CENTS PER POUND REFERRED TO IN MR. BARTEET'S MEMORANDUM OF FEBRUARY 21, 1961, IS A SPECIFIC COMMODITY RATE APPLICABLE TO SHIPMENTS OF "MILITARY STORES/IMPEDIMENTA" MOVING BETWEEN NEW YORK CITY AND LONDON, ENGLAND, AIRPORT TO AIRPORT ONLY, AND IS PUBLISHED IN LOCAL AND JOINT MILITARY AIR CARGO TARIFF NO. C-NS 1, AGENT, W. D. BARRINGTON'S C.A.B. NO. 82. SINCE RULE NO. 1 OF THIS TARIFF LIMITS ITS APPLICATION TO SHIPMENTS MOVING ON UNITED STATES GOVERNMENT BILLS OF LADING ONLY FOR THE DEPARTMENT OF DEFENSE, IT WOULD NOT BE APPLICABLE TO SHIPMENTS MADE BY YOUR DEPARTMENT. WE HAVE NO INFORMATION AS TO SIMILAR RATES BEING OFFERED TO AND REJECTED BY THE CIVILIAN AGENCIES OF THE GOVERNMENT, AS INDICATED BY MR. BARTEET, AND OUR FILES DO NOT CONTAIN ANY TARIFFS FOR REDUCED RATES FOR AIR CARGO SERVICES FOR CIVILIAN AGENCIES BETWEEN THE POINTS INVOLVED IN THE SUBMITTED BILLS, OR BETWEEN THE POINTS LISTED IN TARIFF NO. C-MS- 1.

WE HAVE NO INFORMATION AS TO WHY SUCH RATES, IF IN FACT OFFERED TO AND REJECTED BY CIVILIAN AGENCIES, WERE NOT CONSIDERED ADVANTAGEOUS BY SUCH AGENCIES. IT IS OBSERVED, HOWEVER, THAT THE SPECIAL RATES NAMED IN JOINT MILITARY AIR CARGO TARIFF NO. C-MS-1 APPLY FROM AIRPORT TO AIRPORT ONLY, AND ONLY NEW YORK AND BOSTON AIRPORTS WOULD BE AVAILABLE FOR CIVILIAN MOVEMENTS. IT MAY BE THAT UNABSORBED TERMINAL EXPENSE, PLUS TRANSPORTATION COSTS FROM OTHER ORIGINS TO THE AIRPORTS NAMED, WHEN ADDED TO THE RATES NAMED THEREIN, AS WELL AS LACK OF FACILITIES FOR HANDLING AT THE AIRPORTS WOULD, IN THE FINAL ANALYSIS, PRODUCE CHARGES THAT WERE NOT LOWER THAN THOSE PUBLISHED IN REGULARLY ESTABLISHED TARIFFS. IT MAY BE NOTED ALSO THAT IN THE PRESENT INSTANCE THE BILLING INDICATES THAT THE SHIPMENTS WERE FLOWN BETWEEN WASHINGTON, D.C., AND LONDON, ENGLAND, AND THE RATES IN THE ABOVE-CITED MILITARY TARIFF WOULD HAVE NO APPLICATION TO MOVEMENTS OF THIS KIND, WHETHER MILITARY OR CIVIL.

GOVERNMENT BILL OF LADING NO. A-00126606 COVERS A SHIPMENT OF CINEMATIC FILM, WEIGHING 6 POUNDS, WHICH WAS TRANSPORTED FROM WASHINGTON, D.C., TO LONDON, ENGLAND, DURING JULY 1960. FOR THIS SERVICE, THE SEABOARD AND WESTERN AIRLINES, INC., CLAIMED ORIGINALLY AND WAS PAID $13.40 ON ITS BILL NO. 60-742, COMPUTED AT THE MINIMUM CHARGE OF $12, PLUS $1.40 EXPENSES INCURRED BY THE CARRIER IN CLEARING THE CARGO THROUGH CUSTOMS IN LONDON. THESE RATES ARE PROVIDED BY OFFICIAL AIR FREIGHT RATE TARIFF NO. 2, AGENT B. H. SMITH'S A.T.B. NO. 7, C.A.B. NO. 8, AND INTERNATIONAL CARGO RULES TARIFF NO. ICR-2, AGENT W. D. BARRINGTON'S A.T.B. NO. 2, C.A.B. NO. 19. SUPPLEMENTAL BILL NO. 60-742-A IS FOR $1.50 ADDITIONAL TRUCKING CHARGES TO DELIVER THE SHIPMENT FROM THE FEDERAL PRISON INDUSTRIES, INC., OFFICE IN WASHINGTON, D.C., TO THE WASHINGTON NATIONAL AIRPORT, AND IS SUPPORTED BY THE POLLARD DELIVERY SERVICE, INC., INVOICE IN THAT AMOUNT. WE FIND THAT $15.90, AS BILLED IN TOTAL BY THE CARRIER, IS THE APPLICABLE CHARGE FOR THIS SERVICE AND, ACCORDINGLY, YOU MAY CERTIFY FOR PAYMENT THE SUPPLEMENTAL BILL FOR $1.50.

BILL OF LADING NO. A-0012604 COVERS A SHIPMENT OF EXHIBIT MATERIAL, WEIGHING 644 CUBIC POUNDS, WHICH WAS TRANSPORTED FROM WASHINGTON, D.C., TO LONDON, ENGLAND, DURING JULY 1960. FOR THIS SERVICE, THE CARRIER CLAIMED $665.90 IN ITS BILL NO. 1160-778, COMPUTED AT $96 PER 100 POUNDS, IN THE AMOUNT OF $618.24, INLAND FREIGHT CHARGES OF $37.43, AND LONDON CLEARANCE CHARGES OF $10.31. THE LOWEST RATES AVAILABLE FOR THE GOVERNMENT BASED ON TARIFFS EFFECTIVE AT THE DATE OF SERVICE FOR THE FLIGHT SERVICES SPECIFIED ON THE BILL OF LADING ARE $650.04, COMPUTED ON THE BASIS OF ?06 PER KILOGRAM ARBITRARY TO NEW YORK CITY, PLUS $2.11 PER KILOGRAM TO LONDON, TOTAL $2.19 PER KILOGRAM ON 292.112 KILOGRAMS (644 POUNDS), IN THE AMOUNT OF $639.73, PLUS $10.31 LONDON CLEARANCE CHARGES, AS PROVIDED BY INTERNATIONAL CARGO RATES TARIFF NO. C-15, AGENT W. D. BARRINGTON'S A.T.B. NO. 25, C.A.B. NO/47. ACCORDINGLY, CORRECTED CHARGES OF $650.04 WOULD BE PROPERLY PAYABLE.

BILL OF LADING NO. A-0012605 COVERS A SHIPMENT OF EXHIBIT MATERIAL, WEIGHING 278.5 KILOGRAMS (APPROXIMATELY 615 POUNDS) WHICH WAS TRANSPORTED FROM LONDON, ENGLAND, TO ALEXANDRIA, VIRGINIA, DURING JULY 1960. FOR THIS SERVICE, THE CARRIER CLAIMED AND WAS PAID ORIGINALLY $268.86, COMPUTED AT 43 CENTS PER POUND ON 615 POUNDS,IN THE AMOUNT OF $264.45, PLUS $4.41 ACCESSORIAL CHARGES (?91DEPARTURE AND $3.50 DESTINATION CHARGES). THE CARRIER'S AIRWAY BILL CORRECTION ADVICE ISSUED NOVEMBER 29, 1960, INDICATES THAT THE SUBJECT SHIPMENT TERMINATED AT NEW YORK CITY AND SHOWS THE CORRECTED CHARGES IN THE SUM OF $592.05, COMPUTED AT THE RATE OF $2.11 PER KILOGRAM ON 278.5 KILOGRAMS, IN THE AMOUNT OF $587.64, PLUS ?91 DEPARTURE AND $3.50 DESTINATION CHARGES. HOWEVER, SUPPLEMENTAL BILL NO. 60-705A IS STATED IN THE AMOUNT OF $327.38 BASED ON CHARGES PROPERLY PAYABLE ON THE SAID SHIPMENT IN THE AMOUNT OF $596.24, COMPUTED AT THE RATE OF $2.11 PER KILOGRAM ON 278.5 KILOGRAMS, IN THE AMOUNT OF $587.64, PLUS DEPARTURE AND DESTINATION ACCESSORIAL CHARGES IN THE AMOUNT OF$8.60 (WHICH INCLUDES AN ADDITIONAL DESTINATION CHARGE OF $4.19) PROVIDED BY INTERNATIONAL CARGO RATES TARIFF NO. C-15, AGENT W. D. BARRINGTON'S A.T.B. NO. 25, C.A.B. NO. 47. SINCE $268.86 WAS PAID ORIGINALLY, THE SUPPLEMENTAL BILL MAY BE CERTIFIED IN THE ADJUSTED AMOUNT OF $327.38.

IN OUR AUDIT OF THESE AND SIMILAR BILLS MINOR CHARGES FOR SERVICES NOT INCLUDED IN PUBLISHED RATES AND CHARGES ARE NOT EXCEPTED TO WHERE REASONABLY ITEMIZED AND TO THE EXTENT NORMALLY PERFORMED AND BILLED. TARIFFS WHICH GOVERN THE FLIGHT CHARGES ON THE SUBJECT SHIPMENTS PROVIDE FOR PAYMENT BY THE SHIPPER OF ACCESSORIAL CHARGES SUCH AS (1) PICKUP AND DELIVERY SERVICE TO AND FROM THE AIRPORTS FROM WHICH THE CARRIER OPERATES, (2) EXPENSES INCURRED BY THE CARRIER IN CLEARING THE CARGO THROUGH CUSTOMS, OR INCURRED BY ANY OTHER PERSON WHETHER ACTING AS AGENT FOR THE SHIPPER, THE CONSIGNEE, THE OWNER OF THE CARGO, OR CARRIER, AND (3) ANY OTHER SIMILAR SERVICES.