B-154290, NOV. 9, 1964

B-154290: Nov 9, 1964

Additional Materials:

Contact:

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

 

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

TO SOUTHERN PACIFIC COMPANY: REFERENCE IS MADE TO YOUR LETTER OF MAY 21. WHERE IT WAS AGAIN RECORDED FOR TRANSIT UNDER GOVERNMENT BILL OF LADING NO. YOU BILLED ORIGINALLY AND WERE PAID $856.80 ON VOUCHER 47494 IN THE AUGUST 1960 ACCOUNTS OF LIEUTENANT COLONEL GEORGE M. THE $856.80 CHARGES WERE COMPUTED ON THE BASIS OF A CLASS 45 THROUGH RATE OF $4.68 PER 100 POUNDS. F-99605 WAS PAID. THE ADDITIONAL CHARGES WERE BASED UPON A WEIGHT OF 35. WAS BASED UPON A LETTER DATED MAY 19. PARAGRAPH 9/B) REQUIRES THAT THE SUPPLEMENTAL BILL BEAR A STATEMENT THE SHIPMENT IS ON HAND AT THE TRANSIT STATION AND THAT THE AGENT HAS BEEN NOTIFIED TO MAKE THE NECESSARY CORRECTION IN THE TRANSIT RECORDS. EXPIRED AND WAS CANCELLED.

B-154290, NOV. 9, 1964

TO SOUTHERN PACIFIC COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF MAY 21, 1964, FILE YM 85-D 96605-M, WITH ENCLOSURES, ACKNOWLEDGED JUNE 2, 1964, IN WHICH YOU REQUEST REVIEW OF THE DISALLOWANCE OF YOUR SUPPLEMENTAL BILL NO. D 99605-M FOR $320.11 ADDITIONAL FREIGHT CHARGES ALLEGED TO BE DUE ON A SHIPMENT OF ,PULLEY HOISTS WITH GEARS, RATCHETS OR WORMS" WEIGHING 20,966 POUNDS, WHICH MOVED IN TWO CARS FROM STORAGE IN TRANSIT AT BROOKLEY AIR FORCE BASE, ALABAMA, TO PLANEHAVEN, CALIFORNIA, WHERE IT WAS AGAIN RECORDED FOR TRANSIT UNDER GOVERNMENT BILL OF LADING NO. AF T-65684 DATED MAY 3, 1960. THIS SHIPMENT HAD PREVIOUSLY MOVED FROM ORIGIN AT WARNER ROBINS, GEORGIA, TO BROOKLEY AIR FORCE BASE ON SOUTHERN CAR 272193, A 40-FOOT 6-INCH CAR, UNDER GOVERNMENT BILL OF LADING NO. AF-782846 DATED JANUARY 19, 1960.

FOR THE SERVICES PERFORMED ON THE OUTBOUND MOVEMENT FROM BROOKLEY TO PLANEHAVEN, YOU BILLED ORIGINALLY AND WERE PAID $856.80 ON VOUCHER 47494 IN THE AUGUST 1960 ACCOUNTS OF LIEUTENANT COLONEL GEORGE M. SECKINGER. THE $856.80 CHARGES WERE COMPUTED ON THE BASIS OF A CLASS 45 THROUGH RATE OF $4.68 PER 100 POUNDS, SUBJECT TO A MINIMUM WEIGHT OF 24,000 POUNDS, LESS $1.20 PAID INBOUND, OR A NET RATE OF $3.48 PER 100 POUNDS, PLUS A TRANSIT CHARGE OF 9 CENTS PER 100 POUNDS. ON FEBRUARY 10, 1962, APPROXIMATELY 18 MONTHS AFTER YOUR BILL NO. F-99605 WAS PAID, YOU SUBMITTED SUPPLEMENTAL BILL NO. D-99605-M REQUESTING ADDITIONAL FREIGHT CHARGES OF $320.11. THE ADDITIONAL CHARGES WERE BASED UPON A WEIGHT OF 35,718 POUNDS, RATHER THAN THE 24,000 POUNDS ORIGINALLY BILLED, AT A THROUGH RATE OF $4.40 PER 100 POUNDS, LESS $1.20 PAID INBOUND, OR A NET RATE OF $3.20 PLUS A TRANSIT CHARGE OF 9 1/2 CENTS PER 100 POUNDS. THE WEIGHT USED, 35,718 POUNDS, WAS BASED UPON A LETTER DATED MAY 19, 1960, FROM HEADQUARTERS, MOBILE AIR MATERIAL AREA, BROOKLEY AIR FORCE BASE, ALABAMA, ADDRESSED TO THE MANAGER, SOUTHERN WEIGHING AND INSPECTION BUREAU, ATLANTA, GEORGIA, REQUESTING THAT THE TRANSIT RESHIPPING CERTIFICATE BE AMENDED TO SHOW IN THE WEIGHT APPLIED COLUMN "TO MAKE MINIMUM 14,752 LB.' OUR SETTLEMENT CERTIFICATE OF MAY 17, 1962, DISALLOWED YOUR CLAIM BECAUSE OF FAILURE OF YOUR SUPPLEMENTAL BILL TO COMPLY WITH THE PROVISIONS OF PARAGRAPH 9/B) OF THE ASSOCIATION OF AMERICAN RAILROADS FINANCE, ACCOUNTING, TAXATION AND VALUATION DEPARTMENT'S LETTER OF DECEMBER 1, 1949, FILE 215-17. PARAGRAPH 9/B) REQUIRES THAT THE SUPPLEMENTAL BILL BEAR A STATEMENT THE SHIPMENT IS ON HAND AT THE TRANSIT STATION AND THAT THE AGENT HAS BEEN NOTIFIED TO MAKE THE NECESSARY CORRECTION IN THE TRANSIT RECORDS.

YOU REPORT THAT YOUR RECORDS, SUPPORTED BY COPIES OF FORM DD 575,"RECORD OF TRANSIT FREIGHT BILLS AND TONNAGE CREDITS," SHOW THAT THE TONNAGE REPRESENTED IN BILL NO. D-99605-M EXPIRED FOR FURTHER TRANSIT FROM PLANEHAVEN AND NO OUTBOUND BILL FROM THAT POINT COULD BE PRESENTED AND YOU AGAIN REQUEST PAYMENT OF THE ADDITIONAL FREIGHT CHARGES OF $320.11.

WE DO NOT NOW QUESTION THAT THE TRANSIT PRIVILEGE AS TO THE 20,966 POUNDS OF FREIGHT RECORDED FOR TRANSIT AT PLANEHAVEN, CALIFORNIA, EXPIRED AND WAS CANCELLED; HOWEVER, WE ARE NOT IN AGREEMENT WITH YOUR BASIS FOR DETERMINING THE CHARGES DUE FOR THE SERVICES ACTUALLY RENDERED. THE TRANSIT RESHIPPING CERTIFICATE, WHICH IS A PART OF THE OUTBOUND BILL OF LADING NO. AF-T-65684, GIVES THE WEIGHT APPLIED ON THIS SHIPMENT AS 20,966 POUNDS WITH AN ADDED NOTATION "TO MAKE MIN. 14,752.' THE OUTBOUND SHIPMENT FROM BROOKLEY, ALABAMA, WAS CARRIED IN TWO CARS WITH ACTUAL WEIGHTS OF 15,248 POUNDS IN THE LEAD CAR, MILW. 64302, AND 5,718 POUNDS IN THE OVERFLOW CAR, C.G. 11168. IN YOUR COMPUTATION OF THE ADDITIONAL CHARGES, IT SEEMS YOU APPLIED THE THROUGH RATE PUBLISHED IN ITEM 9165 OF THE TRANS-CONTINENTAL FREIGHT BUREAU TARIFF 1-H, I.C.C. 1611, SUBJECT TO A MINIMUM WEIGHT OF 30,000 POUNDS. IT ALSO SEEMS EVIDENT THAT THE 14,752 POUNDS, SURRENDERED TO MAKE THE MINIMUM OF 30,000 POUNDS UPON WHICH CHARGES OF THE LEAD CAR WERE BASED, AND THE OVERFLOW OF 5,718 POUNDS IN THE SECOND CAR WERE MOVED AT THE SAME RATE. WE FIND NO AUTHORITY FOR SUCH BASIS AND IT SEEMS THAT IF THE CHARGES WERE FOR COMPUTATION UNDER ITEM 9165, THE 5,718 POUNDS OVERFLOW SHOULD BE CONSIDERED AS PART OF THE WEIGHT TO MAKE UP THE MINIMUM WEIGHT OF 30,000 POUNDS.

THE TRANSIT AUTHORITY UNDER WHICH THIS SHIPMENT MOVED, HOWEVER, IS SOUTHERN FREIGHT ASSOCIATION SECTION 22 QUOTATION NO. A-1755, DATED FEBRUARY 15, 1957. BROOKLEY, ALABAMA, IS LISTED AS A TRANSIT POINT BY AMENDMENT 16 TO THE QUOTATION EFFECTIVE DECEMBER 2, 1959.

ITEM 15/D) OF SECTION 22 QUOTATION NO. A-1755 ENTITLED "INBOUND AND OUTBOUND SHIPMENTS--- QUANTITY AND CHARACTER--- TONNAGE CREDITS" PROVIDES THAT:

"WHEN A GREATER NUMBER OF CARS ARE USED OUTBOUND THAN WERE USED INBOUND, THE CARLOAD MINIMUM WEIGHT APPLICABLE TO THE INBOUND CAR, OR CARS, INTO THE TRANSIT POINT, WILL GOVERN THE THROUGH MOVEMENT FROM INITIAL POINT OR PORT OF ORIGIN TO FINAL DESTINATION.'

AND PARAGRAPH 15 (F) OF THE SAME QUOTATION, IN PERTINENT PART, READS:

"* * * WHEN THE ACTUAL TRANSIT WEIGHT OF THE OUTBOUND SHIPMENT IS LESS THAN THE MINIMUM WEIGHT GOVERNING THE THROUGH RATE, THE DIFFERENCE (DEFICIT) SHALL BE CHARGED AT THE APPLICABLE CARLOAD RATE FROM THE TRANSIT POINT TO FINAL DESTINATION IN EFFECT ON THE DATE OF RESHIPMENT FROM THE TRANSIT POINT, UNLESS REPRESENTATIVE INBOUND BILLING FROM THE SAME POINT OR PORT OF ORIGIN IS SURRENDERED * * * TO MAKE UP SUCH DEFICIT IN WHICH EVENT THE THROUGH RATE WILL BE APPLIED ON THE MINIMUM WEIGHT. * * *.'

AS INDICATED ABOVE, A 40-FOOT 6-INCH CAR (SOUTHERN 272193) WAS ORDERED AND FURNISHED FOR THE INBOUND MOVEMENT TO BROOKLEY, ALABAMA, FOR WHICH CHARGES WERE PAID ON THE BASIS OF THE CLASS 45 RATE OF $1.16 PER 100 POUNDS, SUBJECT TO A MINIMUM WEIGHT OF 24,000 POUNDS. SINCE A GREATER NUMBER OF CARS (TWO) WERE USED OUTBOUND THAN INBOUND (ONE) THE CARLOAD MINIMUM WEIGHT APPLICABLE TO THE INBOUND CAR, 24,000 POUNDS, GOVERNED THE THROUGH MOVEMENT.

OUR SETTLEMENT OF MAY 17, 1962, HOWEVER, WILL BE MODIFIED TO ALLOW AS ADDITIONAL CHARGES THE DIFFERENCE BETWEEN THE INBOUND CHARGES OF $1.16 PER 100 POUNDS AND THE $1.20 PER 100 POUNDS, PREVIOUSLY CREDITED, SUBJECT TO THE MINIMUM WEIGHT OF 24,000 POUNDS, AND NOTICE OF OUR REVISED SETTLEMENT GIVING IN DETAIL THE MANNER IN WHICH SUCH ALLOWANCE IS COMPUTED AND THE TARIFF AUTHORITIES THEREFOR SHOULD REACH YOU IN DUE COURSE.