B-148259, JUL. 20, 1962

B-148259: Jul 20, 1962

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TO UNION PACIFIC RAILROAD COMPANY: REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 19. YOU CONTEND THAT THERE IS NO THROUGH RATE NAMED IN TRANS-CONTINENTAL FREIGHT BUREAU TARIFF 29-G. "WILL BE SUBJECT AND ENTITLED TO THE LOWEST THROUGH ALL-RAIL CARLOAD RATE (JOINT OR COMBINATION) THEREON. WHERE BACK-HAUL OR OUT-OF-LINE-HAUL CHARGES IS INVOLVED. APPLICABLE VIA THE POINT OR POINTS FROM AND TO WHICH THE BACK-HAUL OR OUT-OF-LINE- HAUL CHARGE UNDER ITEM NO. 7 IS DETERMINED. WILL APPLY ALSO ON SHIPMENTS MOVING VIA THE BAMBERGER RAILROAD WHICH ARE ACCORDED THE TRANSIT PRIVILEGES AT ARSENAL. THIS CHARGE OF FIVE AND ONE HALF (5 1/2 CENTS PER 100 POUNDS IN SUCH SHIPMENTS WILL BE IN ADDITION TO THE TRANSIT CHARGE PROVIDED IN ITEM NO. 8 AND TO ALL OTHER CHARGES ACCRUING UNDER THE TERMS OF THIS QUOTATION.'.

B-148259, JUL. 20, 1962

TO UNION PACIFIC RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 19, 1962, FILE FGW 144585, ACKNOWLEDGED MARCH 1, 1962, REQUESTING REVIEW OF THE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR ADDITIONAL CHARGES OF $924.46. THE PAYMENT RECORDS SHOW THAT YOUR CLAIM PERTAINS TO THE OUTBOUND SHIPMENT OF 60,030 POUNDS OF MACHINE GUNS FROM OGDEN ARSENAL, UTAH, TO SEATTLE, WASHINGTON, UNDER BILL OF LADING WT-4797103, DATED SEPTEMBER 29, 1944, WHICH ORIGINATED AT FLINT, MICHIGAN, AND MOVED INTO TRANSIT STORAGE AT ARSENAL, UTAH, UNDER BILL OF LADING WT-5875550, DATED JUNE 14, 1944.

ALTHOUGH YOU AGREE THAT PARAGRAPH (D) OF ITEM 6, ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION 16-E PROVIDES FOR TRANSIT AT ARSENAL, UTAH, YOU CONTEND THAT THERE IS NO THROUGH RATE NAMED IN TRANS-CONTINENTAL FREIGHT BUREAU TARIFF 29-G, I.C.C. 1500, SINCE ITEM 515 OF THAT TARIFF LIMITS THE APPLICATION OF THE RATES THEREIN, WHEN SHIPPED VIA THE BAMBERGER RAILROAD, TO SHIPMENTS WHICH ORIGINATE ON THE LINES OF THAT CARRIER.

PARAGRAPH (B), OF ITEM 6 OF QUOTATION 16-E (AMENDMENT NO. 5) PROVIDES THAT SHIPMENTS MOVING AFTER MAY 15, 1943,

"WILL BE SUBJECT AND ENTITLED TO THE LOWEST THROUGH ALL-RAIL CARLOAD RATE (JOINT OR COMBINATION) THEREON, FROM SUCH POINT OF ORIGIN TO THE PORT OF TRANSSHIPMENT OR RAIL HEAD, IN EFFECT BY TARIFF OR PROVIDED IN ANY APPLICABLE SECTION 22 QUOTATION ON THE DATE OF SUCH SHIPMENT,

(I) APPLICABLE OVER THE ROUTE OF MOVEMENT VIA THE TRANSIT POINT, OR

(II) EXCEPT AS OTHERWISE PROVIDED IN THE OTHER SUBPARAGRAPHS OF THIS ITEM, WHERE BACK-HAUL OR OUT-OF-LINE-HAUL CHARGES IS INVOLVED, APPLICABLE VIA THE POINT OR POINTS FROM AND TO WHICH THE BACK-HAUL OR OUT-OF-LINE- HAUL CHARGE UNDER ITEM NO. 7 IS DETERMINED,"

PARAGRAPH (D), OF ITEM 6 OF THAT QUOTATION, PROVIDES

"THE THROUGH RATE, AS PROVIDED IN (B) OF THIS ITEM, APPLICABLE VIA OGDEN OR SALT LAKE CITY, UTAH, PLUS A CHARGE OF FIVE AND ONE-HALF (5 1/2 CENTS) CENTS PER 100 POUNDS, WILL APPLY ALSO ON SHIPMENTS MOVING VIA THE BAMBERGER RAILROAD WHICH ARE ACCORDED THE TRANSIT PRIVILEGES AT ARSENAL, UTAH, OR HILL FIELD, UTAH. THIS CHARGE OF FIVE AND ONE HALF (5 1/2 CENTS PER 100 POUNDS IN SUCH SHIPMENTS WILL BE IN ADDITION TO THE TRANSIT CHARGE PROVIDED IN ITEM NO. 8 AND TO ALL OTHER CHARGES ACCRUING UNDER THE TERMS OF THIS QUOTATION.'

THE WORDS IN PARAGRAPH (D) "AS PROVIDED IN (B) OF THIS ITEM" DESCRIBING THE WORDS "THE THROUGH RATE" APPEAR TO REFER TO THE "ALL RAIL CARLOAD RATE (JOINT OR COMBINATION) THEREON" AS SET OUT IN PARAGRAPH (B). THUS QUOTATION 16-E SPECIFICALLY PROVIDES THAT THE LOWEST THROUGH RATE VIA OGDEN OR SALT LAKE CITY, UTAH, PLUS AN ADDITIONAL CHARGE OF FIVE AND ONE- HALF CENTS (5 1/2 CENTS) PER HUNDRED POUNDS, WILL APPLY ON SHIPMENTS MOVING VIA THE BAMBERGER RAILROAD ACCORDED TRANSIT PRIVILEGES AT ARSENAL OR HILL FIELD, UTAH. SINCE UNDER THE QUOTATION PROVISION THE RATES APPLICABLE VIA SALT LAKE CITY AND OGDEN, UTAH, ALSO APPLY ON SHIPMENTS TRANSITED AT ARSENAL, UTAH, THE PROVISIONS OF ITEM 515 OF TARIFF 29-G ARE NOT APPLICABLE TO THE SHIPMENT.

ACCORDINGLY, IT IS OUR VIEW THAT THE RATES IN TRANS-CONTINENTAL FREIGHT BUREAU TARIFF 29-G WHICH ARE APPLICABLE VIA SALT LAKE CITY AND OGDEN, UTAH, ARE APPLICABLE IN CONSTUCTING A RATE UNDER THE QUOTATION, AND THE DISALLOWANCE OF YOUR CLAIM BASED THEREON WAS PROPER AND IS SUSTAINED.