B-154702, FEB. 16, 1965

B-154702: Feb 16, 1965

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MOBILE AND OHIO RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTERS OF JULY 7. IT IS YOUR VIEW THAT THESE SHIPMENTS MOVED TO A REGULARLY ESTABLISHED SUPPLY DEPOT AT BROOKLEY AND THAT THE TRANSIT PRIVILEGE THUS WAS INAPPLICABLE BECAUSE OF THE PROVISIONS OF ITEM NO. 16 OF THE QUOTATION. ITEM NO. 16 PROVIDES: "THIS QUOTATION IS NOT APPLICABLE IN CONNECTION WITH TRAFFIC MOVING TO OR FROM REGULAR UNITED STATES ARMY. EXCEPT THAT SAME WILL APPLY ON TRAFFIC CONSIGNED TO AND/OR SHIPPED FROM POINTS OFFICIALLY DESIGNATED AS TRANSIT POINTS LISTED IN ITEM NO. 3.'. APART FROM THE FACT THAT THE QUOTATION WAS NEVER AMENDED TO EXTEND THE RESTRICTION IN ITEM NO. 16 TO TRAFFIC MOVING TO OR FROM REGULARLY ESTABLISHED UNITED STATES AIR FORCE SUPPLY DEPOTS (AS OPPOSED TO THOSE OF THE ARMY.

B-154702, FEB. 16, 1965

TO GULF, MOBILE AND OHIO RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTERS OF JULY 7, 1964, FILES G 44328 AND G-47590, IN WHICH YOU REQUESTED REVIEW OF THE SETTLEMENTS WHICH DISALLOWED YOUR CLAIMS FOR $217.98 AND $1,438.60, RESPECTIVELY, YOUR BILLS G-44328-A AND G-47590, OUR CLAIM REFERENCES TK-646165-REV. AND TK-678831. THE SHIPMENTS IN QUESTION CONSISTED OF PROPERTY STORED IN TRANSIT AT HILL FIELD, UTAH, AND MCCLELLAN AIR FORCE BASE, PLANEHAVEN, CALIFORNIA, UNDER THE PROVISIONS OF A.A.R. SECTION 22 QUOTATION NO. 674, AND ULTIMATELY RESHIPPED, IN JUNE 1953 AND JANUARY 1954, TO BROOKLEY AIR FORCE BASE, BROOKLEY, ALABAMA. IT IS YOUR VIEW THAT THESE SHIPMENTS MOVED TO A REGULARLY ESTABLISHED SUPPLY DEPOT AT BROOKLEY AND THAT THE TRANSIT PRIVILEGE THUS WAS INAPPLICABLE BECAUSE OF THE PROVISIONS OF ITEM NO. 16 OF THE QUOTATION.

ITEM NO. 16 PROVIDES:

"THIS QUOTATION IS NOT APPLICABLE IN CONNECTION WITH TRAFFIC MOVING TO OR FROM REGULAR UNITED STATES ARMY, NAVY OR MARINE CORPS DEPOTS, ARSENALS, AMMUNITION DEPOTS OR SIMILAR REGULARLY ESTABLISHED SUPPLY DEPOTS, EXCEPT THAT SAME WILL APPLY ON TRAFFIC CONSIGNED TO AND/OR SHIPPED FROM POINTS OFFICIALLY DESIGNATED AS TRANSIT POINTS LISTED IN ITEM NO. 3.'

APART FROM THE FACT THAT THE QUOTATION WAS NEVER AMENDED TO EXTEND THE RESTRICTION IN ITEM NO. 16 TO TRAFFIC MOVING TO OR FROM REGULARLY ESTABLISHED UNITED STATES AIR FORCE SUPPLY DEPOTS (AS OPPOSED TO THOSE OF THE ARMY, NAVY AND MARINE CORPS), IT IS CLEAR THAT THE PROPERTY IN QUESTION WAS SHIPPED TO AND FROM POINTS (HILL FIELD AND MCCLELLAN AIR FORCE BASE) OFFICIALLY DESIGNATED AS TRANSIT POINTS IN ITEM NO. 3 OF THE QUOTATION. THE TRAFFIC WAS THEREFORE WITHIN THAT CLASS OF TRAFFIC EXCEPTED FROM THE GENERAL APPLICATION OF ITEM NO. 16 AND, AS SUCH, WAS ENTITLED TO THE PRIVILEGE SPECIFIED IN THE QUOTATION.

THE OBVIOUS PURPOSE OF ITEM NO. 16 WAS TO MAKE CLEAR THAT THE TRANSIT PRIVILEGE AUTHORIZED BY THE QUOTATION WAS LIMITED TO STORAGE ONLY AT THOSE POINTS OFFICIALLY DESIGNATED AS TRANSIT POINTS IN ITEM NO. 3, AND NO OTHERS. THE SHIPMENTS IN QUESTION WERE STORED AT HILL FIELD, UTAH, AND PLANEHAVEN, CALIFORNIA, POINTS OFFICIALLY DESIGNATED IN ITEM NO. 3 AS TRANSIT POINTS, AND WE CONCLUDE THAT THE TRANSIT PRIVILEGE WAS APPLICABLE. THE SETTLEMENTS IN QUESTION WERE CONSISTENT WITH THIS VIEW AND THEY ARE ACCORDINGLY SUSTAINED.