B-154577, MAR. 23, 1965

B-154577: Mar 23, 1965

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TO UNION PACIFIC RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JUNE 23. THE RECORD SHOWS THAT FOR THE TRANSPORTATION SERVICES PERFORMED YOU ORIGINALLY CLAIMED AND WERE PAID THE LOCAL RATE OF $2.40 PER 100 POUNDS. WAS ISSUED IN THE AMOUNT OF $168.82 AGAINST BILL OF LADING WT-8735227 ONLY. 736.86 AGAINST THE THREE BILLS OF LADING WERE ISSUED IN A NOTICE OF OVERCHARGE DATED DECEMBER 19. SUCH ADDITIONAL STATEMENTS OF OVERCHARGE WERE BASED ON RATING THE SHIPMENTS AS LOCAL MOVEMENTS WITHOUT REGARD TO ANY TRANSIT TONNAGE BEYOND WARNER. THE RATE WAS DECREASED TO A NET RATE OF $1.57321 PER 100 POUNDS. OUR RECORDS AT THE TIME OF AUDIT GAVE NO INDICATION THAT THESE SHIPMENTS WERE INVOLVED IN OUTBOUND TRANSIT MOVEMENTS TO A PORT.

B-154577, MAR. 23, 1965

TO UNION PACIFIC RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JUNE 23, 1964, FILE GW 118251, IN WHICH YOU REQUEST REVIEW OF OUR SETTLEMENT CERTIFICATE OF MARCH 16, 1964, (TK-760714), DISALLOWING YOUR SUPPLEMENTAL BILL TW 118251-A FOR $1,349.32, ADDITIONAL CHARGES FOR THE TRANSPORTATION OF THREE SHIPMENTS OF ,AMMUNITION FOR CANNON WITH EXPLOSIVE PROJECTILES," FROM KANSAS ORDNANCE PLANT, PARSONS, KANSAS, TO TOOELE ORDNANCE DEPOT, WARNER, UTAH, UNDER GOVERNMENT BILLS OF LADING WT-8735227, WT-8735466, AND WT-8735470, DATED MARCH 25, APRIL 2 AND APRIL 2, 1944, RESPECTIVELY.

THE RECORD SHOWS THAT FOR THE TRANSPORTATION SERVICES PERFORMED YOU ORIGINALLY CLAIMED AND WERE PAID THE LOCAL RATE OF $2.40 PER 100 POUNDS, FROM PARSONS, KANSAS, TO WARNER, UTAH. IN OUR AUDIT A NOTICE OF OVERCHARGE, FORM 1003, DATED JUNE 5, 1946, WAS ISSUED IN THE AMOUNT OF $168.82 AGAINST BILL OF LADING WT-8735227 ONLY, BASED ON A NET RATE OF $2.22986 PER 100 POUNDS. SUBSEQUENTLY, ADDITIONAL STATEMENTS OF OVERCHARGES FOR $1,736.86 AGAINST THE THREE BILLS OF LADING WERE ISSUED IN A NOTICE OF OVERCHARGE DATED DECEMBER 19, 1961. SUCH ADDITIONAL STATEMENTS OF OVERCHARGE WERE BASED ON RATING THE SHIPMENTS AS LOCAL MOVEMENTS WITHOUT REGARD TO ANY TRANSIT TONNAGE BEYOND WARNER, UTAH, AND THE RATE WAS DECREASED TO A NET RATE OF $1.57321 PER 100 POUNDS. OUR RECORDS AT THE TIME OF AUDIT GAVE NO INDICATION THAT THESE SHIPMENTS WERE INVOLVED IN OUTBOUND TRANSIT MOVEMENTS TO A PORT. YOU WERE REQUESTED TO REFUND THE OVERCHARGES WHICH WERE RECOVERED BY DEDUCTION FROM AMOUNTS OTHERWISE PAYABLE BECAUSE OF YOUR FAILURE TO REMIT THE SAME.

ON YOUR SUPPLEMENTAL BILL NO. TW-118251-A DATED APRIL 17, 1963, FOR $1,349.32, YOU INDICATE THAT YOUR RECORDS SHOW SOME TONNAGE OF EACH SHIPMENT MOVED OUTBOUND AND THE CHARGES FOR THE INBOUND PORTION OF THE SHIPMENTS SHOULD NOT HAVE BEEN DISTURBED. THIS CLAIM WAS DISALLOWED IN THE SETTLEMENT CERTIFICATE OF MARCH 16, 1964, ON THE BASIS OF PARAGRAPH 20 OF THE ASSOCIATION OF AMERICAN RAILROAD'S LETTER, FILE 215-17, DATED DECEMBER 1, 1949, WHICH GENERALLY PROVIDES THAT ANY ADJUSTMENT IN THE CHARGES PAID ON TRANSIT SHIPMENTS SHOULD BE WITH THE OUTBOUND CARRIER. HOWEVER, SINCE THE TEN-YEAR STATUTE OF LIMITATIONS (31 U.S.C. 71A) WOULD APPEAR TO PRECLUDE ADJUSTMENTS WITH SUCH CARRIER, WE AGREE THAT IT WOULD BE PROPER TO MAKE ADJUSTMENTS WITH YOUR COMPANY AS THE INBOUND CARRIER WHOSE REVENUES WERE AFFECTED BY THE DEDUCTIONS MADE IN CONNECTION WITH THE STATEMENTS OF OVERCHARGES AND WHOSE RIGHTS, AS TO THE DEDUCTIONS MADE IN 1962, ARE NOT AFFECTED BY THE TEN-YEAR STATUTE. HOWEVER, AN EXAMINATION OF THE AVAILABLE RECORDS HERE SHOW THAT ONLY A PORTION OF THE INBOUND TONNAGE WAS RESHIPPED BEYOND THORNE, NEVADA, TO A PORT, WHERE OUTBOUND CHARGES WERE ADJUSTED, ALLOWING FOR AMOUNTS PAID TO TRANSIT POINTS, WARNER, UTAH, AND THORNE, NEVADA.

YOUR CLAIM OF $220.35 ON BILL OF LADING WT-8735470 APPEARS PROPERLY FOR ALLOWANCE.

ON BILL OF LADING WT-8735227, YOU CLAIM $314.09. WE FIND ONLY $179.60 IS ALLOWABLE SINCE OUR RECORDS INDICATE THAT OF THE TOTAL INBOUND SHIPMENT OF 99,225 POUNDS, INCLUDING 665 POUNDS OF DUNNAGE, 78,080 POUNDS MOVED TO THORNE, NEVADA, ON BILL OF LADING WV-55221233 AND WAS RESHIPPED ON BILL OF LADING N-7894375 TO PORT CHICAGO, WHERE SETTLEMENT WAS ON A BALANCE OF THE THROUGH RATE PLUS TRANSIT CHARGE BASIS. OUR RECORDS SHOW THAT THE REMAINING 20,489 POUNDS MOVED FROM WARNER TO THORNE ON BILL OF LADING WV- 5221232 AND THAT THE CHARGES FROM WARNER TO THORNE WERE BASED ON A LOCAL RATE OF $1.72 PER 100 POUNDS. THERE IS NO EVIDENCE TO SHOW THAT ANY OF THE 20,480 POUNDS LEFT THORNE FOR RESHIPMENT. WE COMPUTE THE CHARGES FOR THE SHIPMENT ON BILL OF LADING WT-8735227 AS FOLLOWS:

TABLE RESHIPPED TO PORT CHICAGO 78,080 POUNDS AT NET RATE

$2.22986 CWT. $1,741.07 LOCALIZED 20,480 POUNDS AT NET RATE

$1.57321 CWT. 322.19 NONDEDUCTIBLE DUNNAGE 665 POUNDS AT NET RATE

$1,57321 CWT. 10.46

TOTAL CHARGES $2,073.72

LESS AMOUNT PAID 1,894.12

DUE CARRIER $ 179.60

CONCERNING YOUR CLAIM OF $814.88 FOR THE SHIPMENT FROM PARSONS TO WARNER UNDER BILL OF LADING WT-8735466, OUR RECORDS SHOW THAT THE ENTIRE WEIGHT OF 98,560 POUNDS MOVED OUTBOUND FROM WARNER TO THORNE UNDER BILL OF LADING WV-5062435 AND THERE IS NO EVIDENCE OF RESHIPMENT BEYOND THORNE. YOU CONTEND THAT THE ENTIRE SHIPMENT MOVED TO THORNE, WHERE SETTLEMENT OF THE CHARGES WAS ON A THROUGH TRANSIT BASIS. THE RECORDS HERE, HOWEVER, SHOW THAT THE CHARGES BETWEEN WARNER AND THORNE WERE COMPUTED ON THE BASIS OF A LOCAL RATE OF $1.72 PER 100 POUNDS. YOUR CLAIM FOR 4818.48 THEREFORE APPEARS FOR DISALLOWANCE SINCE YOU HAVE NOT FURNISHED EVIDENCE TO ESTABLISH TRANSIT APPLICATION BEYOND THORNE, NEVADA.

WE HAVE TODAY AUTHORIZED OUR TRANSPORTATION DIVISION, IF OTHERWISE PROPER, TO MAKE SETTLEMENT IN ACCORDANCE WITH THE ABOVE AND A NOTICE OF SETTLEMENT SHOULD BE RECEIVED BY YOU IN DUE COURSE.