B-147621, AUG. 9, 1962

B-147621: Aug 9, 1962

Additional Materials:

Contact:

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

 

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

TO UNION PACIFIC RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR REQUEST. THE RECORD HERE SHOWS THAT GOVERNMENT BILL OF LADING WZ-T-311272 WAS ISSUED TO COVER THE MOVEMENT OF VARIOUS COMMODITIES. FOR THIS SERVICE YOU CLAIMED AND WERE PAID OUTBOUND CHARGES IN THE SUM OF $1. WHICH WERE TRANSPORTED IN CAR PRR 65818. FOR THIS SERVICE YOU WERE PAID CHARGES IN THE SUM OF $986.40. IS USED AS A MAXIMUM RATE AS AUTHORIZED BY SOUTHERN FREIGHT TARIFF BUREAU FREIGHT TARIFF 164-D. THE CHARGES WERE COMPUTED ON THE BASIS OF THE THROUGH EXPORT RATE FROM YADKIN. CONTRARY TO THE AUDIT POSITION THAT THE SHIPMENT WAS OVERCHARGED. IT BEING YOUR CONTENTION THAT THE INBOUND SHIPMENT WAS ROUTED VIA ELLSWORTH.

B-147621, AUG. 9, 1962

TO UNION PACIFIC RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR REQUEST, FILE GW-283512 (OUR CLAIM NUMBER TK-681677), FOR REVIEW OF THE SETTLEMENT CERTIFICATE DISALLOWING YOUR SUPPLEMENTAL BILL W-283512-A FOR $528.90 ADDITIONAL FREIGHT CHARGES FOR TRANSPORTATION SERVICES UNDER GOVERNMENT BILL OF LADING WZ-T-311272, DATED FEBRUARY 17, 1958.

THE RECORD HERE SHOWS THAT GOVERNMENT BILL OF LADING WZ-T-311272 WAS ISSUED TO COVER THE MOVEMENT OF VARIOUS COMMODITIES, TOTAL WEIGHT 58,149 POUNDS, INCLUDING 23,856 POUNDS OF DRY GOODS, NOIBN (SHEETS), FROM OGDEN, UTAH, TO SEATTLE WASHINGTON, WHICH TONNAGE ORIGINATED AT YADKIN, NORTH CAROLINA, ON AUGUST 16, 1956. FOR THIS SERVICE YOU CLAIMED AND WERE PAID OUTBOUND CHARGES IN THE SUM OF $1,029.49 COMPUTED AS FOLLOWS:

* * * * * * * * * * * * * * (CHART OMITTED) * * * * * * * * * * * * * *

THE INBOUND MOVEMENT FROM YADKIN, NORTH CAROLINA, TO OGDEN, UTAH, CONSISTED OF 23,856 POUNDS OF COTTON BED SHEETS, WHICH WERE TRANSPORTED IN CAR PRR 65818, UNDER GOVERNMENT BILL OF LADING WY 3120836, DATED AUGUST 16, 1956. FOR THIS SERVICE YOU WERE PAID CHARGES IN THE SUM OF $986.40, COMPUTED ON THE BASIS OF A RATE OF $4.11 PER 100 POUNDS, SUBJECT TO A MINIMUM WEIGHT OF 24,000 POUNDS, AS PUBLISHED IN ITEM 6875-C, SUPPLEMENT 32, TRANS-CONTINENTAL FREIGHT BUREAU WESTBOUND TARIFF 1-E, I.C.C. 1573. THIS RATE APPLIES TO LAGRANDE, OREGON, AND IS USED AS A MAXIMUM RATE AS AUTHORIZED BY SOUTHERN FREIGHT TARIFF BUREAU FREIGHT TARIFF 164-D, I.C.C. 1918.

UPON AUDIT OF THE VOUCHER EVIDENCING PAYMENT FOR THE OUTBOUND MOVEMENT, OUR TRANSPORTATION DIVISION ASSESSED AN OVERCHARGE IN THE AMOUNT OF $249.60 ON THE TRANSIT PORTION, BASED ON THE TRANSIT PRIVILEGE IN EXECUTIVE COMMITTEE, WESTERN TRAFFIC ASSOCIATION SECTION 22 QUOTATION 38- A. THE CHARGES WERE COMPUTED ON THE BASIS OF THE THROUGH EXPORT RATE FROM YADKIN, NORTH CAROLINA, TO SEATTLE, WASHINGTON, OF $3.44 ($2.59 PLUS X-175 -C, X-196-A, AND X-206-A) PER 100 POUNDS, SUBJECT TO A MINIMUM WEIGHT OF 24,000 POUNDS, IN ACCORDANCE WITH ITEM 1806 OF TRANS-CONTINENTAL FREIGHT TARIFF 29-K, I.C.C. 1570, PLUS A TRANSIT CHARGE OF $0.12 ($0.11 PLUS X-196 -A) PER 100 POUNDS AS AUTHORIZED IN QUOTATION EC-WTA-38-A, LESS 3 CENTS PER 100 POUNDS TERMINAL ALLOWANCE AS AUTHORIZED IN ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION 265-A, LESS A CREDIT OF $986.40 AS FREIGHT CHARGES FOR THE INBOUND SHIPMENT FROM ORIGIN TO THE TRANSIT POINT. THE INDICATED OVERCHARGE OF $249.60 REMAINS UNCOLLECTED AT THIS TIME.

CONTRARY TO THE AUDIT POSITION THAT THE SHIPMENT WAS OVERCHARGED, YOU FILED SUPPLEMENTAL BILL NO. W-283512-A FOR AN ADDITIONAL AMOUNT OF $528.90, ON THE BASIS OF THE LOCAL RATE OF $2.68 PER 100 POUNDSON THE ENTIRE WEIGHT OF 58,149 POUNDS SHIPPED OUTBOUND FROM OGDEN, UTAH, TO SEATTLE, WASHINGTON, IT BEING YOUR CONTENTION THAT THE INBOUND SHIPMENT WAS ROUTED VIA ELLSWORTH, KANSAS, AND THE THROUGH EXPORT RATE USED IN THE REQUEST FOR REFUND IS NOT APPLICABLE VIA THAT JUNCTION.

IN THE DISALLOWANCE OF YOUR SUPPLEMENTAL BILL, IT WAS POINTED OUT THAT THE ROUTING VIA ELLSWORTH, KANSAS, WAS AT THE DIRECTION THE ST. LOUIS-SAN FRANCISCO RAILWAY, AND HAD THAT CARRIER OBSERVED ROUTING VIA THE MISSOURI RIVER GATEWAYS NAMED IN THE TRANS-CONTINENTAL TARIFFS, THE THROUGH RATE WOULD HAVE BEEN APPLICABLE. HENCE, IT WAS OUR VIEW THAT THIS IS A CASE OF CARRIER MISROUTING, AND THE THROUGH RATE SHOULD BE PROTECTED.

IN YOUR LETTER REQUESTING REVIEW OF THE SETTLEMENT, YOU URGE THAT SINCE "THE INBOUND CARRIER WAS NOT AWARE THAT THE INSTANT SHIPMENT WOULD BE ACCORDED TRANSIT PRIVILEGE AT OGDEN, UTAH AND LATER RESHIPPED TO SEATTLE, WASH. AND THE RATE VIA ELLSWORTH, KANSAS IS APPLICABLE TO OGDEN, THE CARRIERS SHOULD NOT BE PENALIZED FOR THIS ACTION.'

THE INBOUND SHIPMENT UNDER BILL OF LADING WY-3120856 WAS PAID IN THE AMOUNT OF $986.40 AT A RATE OF $4.11 PER 100 POUNDS. THIS RATE AS PREVIOUSLY STATED, IS THE LAGRANDE, OREGON, TRANS-CONTINENTAL RATE APPLIED AS MAXIMUM IN LIEU OF THE HIGHER POINT TO POINT RATE NAMED IN SOUTHERN FREIGHT TARIFF BUREAU FREIGHT TARIFF NO. 164-D, I.C.C. 1918. ITEM 40 OF TARIFF 164-D IN SUBSTANCE PROVIDES THAT THE SAME ROUTING RESTRICTIONS AS APPLY IN THE TARIFF NAMING THE RATE TO LAGRANDE, OREGON, WILL BE APPLICABLE TO SHIPMENTS WHEN THE LAGRANDE, OREGON, RATE IS APPLIED AS MAXIMUM. TRANS-CONTINENTAL FREIGHT TARIFF BUREAU FREIGHT TARIFF 1-E, I.C.C. NO. 1573, IS SUBJECT TO THE SAME ROUTING RESTRICTIONS AS THE EXPORT RATE NAMED IN TRANSCONTINENTAL FREIGHT TARIFF BUREAU FREIGHT TARIFF 29-K, I.C.C. NO. 1570, APPLIED BY OUR TRANSPORTATION DIVISION FOR THE THROUGH MOVEMENT FROM YADKIN, NORTH CAROLINA, TO SEATTLE, WASHINGTON. BOTH TARIFFS ARE SUBJECT TO THE ROUTING RESTRICTIONS UNDER WHICH THE UNION PACIFIC RAILROAD REQUIRES DELIVERY OF TRANS-CONTINENTAL TRAFFIC TO THEM AT THE MISSOURI RIVER GATEWAYS. IN THIS INSTANCE THE ST. LOUIS-SAN FRANCISCO RAILWAY SHOULD HAVE DELIVERED THE SHIPMENT TO THE UNION PACIFIC RAILROAD AT KANSAS CITY, MISSOURI, INSTEAD OF AT ELLSWORTH, KANSAS.

THE THREE CARRIERS NAMED IN THE INBOUND BILL OF LADING ROUTING "SOU. STLSF-UP" ARE THE SAME CARRIERS PARTICIPATING IN AND CONSTITUTING THE THROUGH ROUTE FROM YADKIN, NORTH CAROLINA, TO SEATTLE, WASHINGTON. OTHER WORDS, NO OTHER CARRIERS ARE INVOLVED IN EITHER OF THE INBOUND OR THE OUTBOUND MOVEMENTS SUCH AS WOULD BE THE SITUATION WHERE A CARRIER MAY PARTICIPATE IN AN INBOUND MOVEMENT, BUT OVER WHOSE LINE THE THROUGH RATE DID NOT APPLY. SEE GLOBE GRAIN AND MILLING COMPANY V. SAN DIEGO AND ARIZONA EASTERN RAILWAY COMPANY, ET AL., 219 I.C.C. 226.

AS INDICATED ABOVE, THE INBOUND MOVEMENT INTO OGDEN WAS ROUTED BY THE GOVERNMENT WITHOUT SPECIFYING JUNCTIONS, THE ELLSWORTH, KANSAS, JUNCTION BEING ADDED BY THE ST. LOUIS-SAN FRANCISCO RAILWAY AT EAST ST. LOUIS. THE BILL OF LADING AND TRANSIT RECORDS WOULD MERELY SHOW THAT THE SOUTHERN RAILWAY, THE ST. LOUIS-SAN FRANCISCO RAILWAY, AND THE UNION PACIFIC RAILROAD ARE THE INBOUND CARRIERS, AND THE DESTINATION CARRIER SOUGHT TO BE USED FOR THE OUTBOUND MOVEMENT WAS THE UNION PACIFIC RAILROAD. THUS, UPON VERIFICATION OF THE FACT THAT THE THROUGH RATE APPLIED VIA THE CARRIERS IN QUESTION, THE TRANSIT SHIPPING OFFICER IS JUSTIFIED IN EXPECTING THAT THE CARRIERS WOULD MOVE THE SHIPMENT VIA JUNCTIONS THROUGH WHICH THE THROUGH RATE APPLIED.

WE CONCLUDE IN THIS CASE THAT UNDER NO CIRCUMSTANCES WAS THE ST. LOUIS SAN FRANCISCO RAILWAY JUSTIFIED IN ROUTING THE SHIPMENT VIA ELLSWORTH, KANSAS, AND NO REASON APPEARS WHY THE GOVERNMENT SHOULD BE FORECLOSED FROM USING THE INBOUND BILLING FOR CREDIT ON THE OUTBOUND MOVEMENT VIA THE UNION PACIFIC RAILROAD.

ACCORDINGLY, THE SETTLEMENT CERTIFICATE DISALLOWING YOUR SUPPLEMENTAL BILL FOR ADDITIONAL CHARGES BASED ON THE COMBINATION OF RATES OVER OGDEN, UTAH, IS SUSTAINED; AND THE RECORD WILL BE EXAMINED FURTHER TO DETERMINE WHETHER THE APPLICABLE CHARGES FOR THE OUTBOUND PORTION OF THIS ..END :