B-145925, DEC. 14, 1961

B-145925: Dec 14, 1961

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TOPEKA AND SANTA FE FAILWAY COMPANY: REFERENCE IS MADE TO YOUR LETTERS OF MAY 19. WHICH WERE TRANSPORTED UNDER BILL OF LADING AF-3551600. FOR THE SERVICES RENDERED ON THIS MOVEMENT YOUR COMPANY CLAIMED AND WAS PAID CHARGES OF $1. YOUR COMPANY ASSESSED AND WAS PAID BALANCE CHARGES OF $69.23 BASED ON A THROUGH RATE OF $2.51 PER HUNDRED POUNDS (PLUS 15 PERCENT) AND A TRANSIT CHARGE OF 6 1/2 CENTS PER HUNDREDWEIGHT (PLUS 15 PERCENT) OR $1. THE FREIGHT CHARGES WERE RECOMPUTED TO TAKE CREDIT FOR THE BALANCE OF THE INBOUND CHARGES AFTER ALLOWANCE FOR THE 7. BASED THEREON IT WAS DETERMINED THAT THE THROUGH CHARGES HAD BEEN OVERPAID IN THE AMOUNT OF $52.53. A NOTICE OF OVERPAYMENT WAS ISSUED TO YOUR COMPANY.

B-145925, DEC. 14, 1961

TO THE ATCHISON, TOPEKA AND SANTA FE FAILWAY COMPANY:

REFERENCE IS MADE TO YOUR LETTERS OF MAY 19, SEPTEMBER 6, AND DECEMBER 4, 1961, FILE G-631487, REQUESTING REVIEW OF THE SETTLEMENT WHICH DISALLOWED YOUR SUPPLEMENTAL BILL FOR ADDITIONAL CHARGES OF $52.44 ON THE SHIPMENT OF EIGHT INTERNAL COMBUSTION ENGINES TRANSPORTED FROM WICHITA, KANSAS, TO WINGFOOT, CALIFORNIA, WITH A STOP AT NORTON AIR FORCE BASE, SAN BERNARDINO, CALIFORNIA, FOR TRANSIT UNDER EXECUTIVE COMMITTEE-WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION NO. 60.

THE RECORD HERE SHOWS THAT THE INBOUND SHIPMENT TO SAN BERNADINO, CALIFORNIA, CONSISTED OF ENGINES WEIGHING 42,100 POUNDS PLUS DUNNAGE 250 POUNDS, TOTAL 42,350 POUNDS, WHICH WERE TRANSPORTED UNDER BILL OF LADING AF-3551600. FOR THE SERVICES RENDERED ON THIS MOVEMENT YOUR COMPANY CLAIMED AND WAS PAID CHARGES OF $1,214.40 BASED ON A RATE OF $2.40 PER HUNDRED POUNDS (PLUS 15 PERCENT) APPLIED TO A MINIMUM CARLOAD WEIGHT OF 44,000 POUNDS. ON THE OUTBOUND SHIPMENT UNDER BILL OF LADING AFT-39176, WEIGHING 34,400 POUNDS, YOUR COMPANY ASSESSED AND WAS PAID BALANCE CHARGES OF $69.23 BASED ON A THROUGH RATE OF $2.51 PER HUNDRED POUNDS (PLUS 15 PERCENT) AND A TRANSIT CHARGE OF 6 1/2 CENTS PER HUNDREDWEIGHT (PLUS 15 PERCENT) OR $1,018.67, LESS CREDIT FOR THE AMOUNT PAID INTO THE TRANSIT POINT AT THE $2.40 PER HUNDRED POUNDS (PLUS 15 PERCENT) ON THE 34,400 POUNDS.

IN OUR AUDIT, THE FREIGHT CHARGES WERE RECOMPUTED TO TAKE CREDIT FOR THE BALANCE OF THE INBOUND CHARGES AFTER ALLOWANCE FOR THE 7,700 POUNDS OF INBOUND TONNAGE WHICH REMAINED AT THE TRANSIT POINT. BASED THEREON IT WAS DETERMINED THAT THE THROUGH CHARGES HAD BEEN OVERPAID IN THE AMOUNT OF $52.53, AND A NOTICE OF OVERPAYMENT WAS ISSUED TO YOUR COMPANY. SUCH AMOUNT WAS RECOVERED BY DEDUCTION UPON YOUR FAILURE TO REFUND, AND YOUR SUBSEQUENT RECLAIM FOR THAT AMOUNT WAS DISALLOWED.

UNDER TRANSIT QUOTATION 60, THE GOVERNMENT IS GRANTED AND ENTITLED TO THE LOWEST APPLICABLE THROUGH ALL-RAIL CARLOAD RATE ON THE TRANSITED TONNAGE FROM INITIAL POINT OF ORIGIN TO FINAL DESTINATION MINUS THE LINE-HAUL RATE PAID INBOUND. SEE IN THIS CONNECTION OUR LETTER OF OCTOBER 4, 1961, B- 145860, TO YOU, PAGE 4. OBVIOUSLY, THE LINE-HAUL RATE PAID ON THE TRANSITED TONNAGE TO THE TRANSIT POINT ON THE INBOUND SHIPMENT WAS GREATER THAN AN AMOUNT COMPUTED ON THE APPLIED WEIGHT OF 34,400 POUNDS AT THE $2.40 RATE (PLUS 15 PERCENT) INCREASE IN THE CHARGES. THEREFORE, IT IS OUR VIEW THAT A PROPER AND EQUITABLE CONSTRUCTION OF THE QUOTATION REQUIRES THAT CREDIT FOR THE INBOUND CHARGES SHOULD BE BASED ON THE RELATIONSHIP OF SUCH TRANSIT TONNAGE TO THE CHARGES PAID ON THE ACTUAL INBOUND WEIGHT. OTHERWISE, THE CHARGES PAID ON THE DEFICIT WEIGHT TO THE TRANSIT POINT WOULD IN EFFECT CAUSE GREATER THROUGH CHARGES TO ACCRUE ON THE 34,400 POUNDS OF APPLIED TONNAGE.

ON THE 34,400 POUNDS MOVING OUTBOUND UNDER BILL OF LADING AFT-39176, THE GOVERNMENT ACTUALLY PAID INBOUND CHARGES OF $2.86753 PER HUNDRED POUNDS (34,400/42,350 OF $1,214.40) OR $986.43. A CREDIT OF THAT AMOUNT AGAINST THE THROUGH CHARGES OF $1,018.67 RESULTS IN THE PROPER BALANCE CHARGES ON THE THROUGH TRANSIT SHIPMENT. SINCE SUCH AMOUNT IS IN EXCESS OF THE NET AMOUNT OF $16.70 PAID TO YOUR COMPANY AFTER THE DEDUCTION OF $52.53 ON THE OUTBOUND SHIPMENT, WE ARE INSTRUCTING OUR TRANSPORTATION DIVISION TO ISSUE A REVISED SETTLEMENT FOR THE BALANCE WHICH WILL ..END :