B-155629, MAR. 4, 1965

B-155629: Mar 4, 1965

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THIS QUOTATION IS THE PREDECESSOR OF TRAFFIC EXECUTIVE ASSOCIATION. A SIMILAR ISSUE WAS CONSIDERED AND DECIDED IN TWO RECENT DECISIONS TO YOUR COMPANY: B-151913. COPIES OF THESE DECISIONS ARE ENCLOSED. THE PROVISIONS OF ITEM 14 (F) IN AMENDMENT NO. 26 TO QUOTATION NO. 16-F ARE SUBSTANTIALLY THE SAME. WE BELIEVE THE GOVERNMENT IS ENTITLED TO AN ADJUSTMENT BASED ON THE CHARGES ACTUALLY PAID INBOUND ON THE MINIMUM WEIGHT TO THE TRANSIT POINT. UNLESS SUCH AN ADJUSTMENT IS MADE. CHARGES IN EXCESS OF THOSE COMPUTED AT THE LOWEST THROUGH RATE ARE BEING ASSESSED ON THE THROUGH TRANSIT MOVEMENT. IN WHICH YOUR CLAIM FOR $730.52 WAS DISALLOWED. IS SUSTAINED.

B-155629, MAR. 4, 1965

TO ILLINOIS CENTRAL RAILROAD:

WE AGAIN REFER TO YOUR LETTER OF NOVEMBER 13, 1964, FILE G-AFR 30764-3- BG, IN WHICH YOU REQUEST REVIEW OF OUR SETTLEMENT CERTIFICATE DATED MAY 27, 1960 (OUR CLAIM NO. TK-667161). THE SETTLEMENT DISALLOWED YOUR CLAIM FOR $730.52, FOR THE BALANCE OF FREIGHT CHARGES ALLEGEDLY DUE ON SEVEN SHIPMENTS OF FREIGHT TRAILERS ORIGINATING AT QUINCY, ILLINOIS, DURING JUNE AND JULY 1952, STORED IN TRANSIT AT BATON ROUGE, LOUISIANA, AND SUBSEQUENTLY RESHIPPED TO NEW ORLEANS, LOUISIANA, DURING MARCH 1954, FOR EXPORT. IN A LETTER DATED AUGUST 10, 1964, TO YOU, OUR TRANSPORTATION DIVISION SUSTAINED ITS ACTION IN DISALLOWING THE CLAIM.

THE ISSUE PRESENTED BY YOUR LETTER CONCERNS THE PROVISIONS OF ITEM 14 (F) IN AMENDMENT NO. 26 TO ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION NO. 16-F, IN EFFECT ON THE DATE THE SHIPMENTS ORIGINATED. THIS QUOTATION IS THE PREDECESSOR OF TRAFFIC EXECUTIVE ASSOCIATION--- EASTERN RAILROADS SECTION 22 QUOTATION NO. A-757, REFERRED TO IN YOUR LETTER. QUESTION ARISES AS TO WHETHER CREDIT FOR FREIGHT CHARGES PAID ON THE INBOUND SHIPMENTS TO THE TRANSIT POINT (BATON ROUGE) SHOULD BE BASED ON THE APPLICABLE INBOUND CHARGES (IN THIS CASE, THE PAID-IN RATE AT THE INBOUND MINIMUM WEIGHT OF 34,080 POUNDS), THE CHARGE BASIS USED IN THE SETTLEMENT, OR ON THE PAID-IN RATE ON 28,400 POUNDS, THE MINIMUM WEIGHT APPLICABLE TO THE THROUGH RATE.

A SIMILAR ISSUE WAS CONSIDERED AND DECIDED IN TWO RECENT DECISIONS TO YOUR COMPANY: B-151913, OCTOBER 3, 1963, AND B-151982, OCTOBER 11, 1963, AFFIRMED FEBRUARY 5, 1964. COPIES OF THESE DECISIONS ARE ENCLOSED. WHILE THEY INVOLVE TRAFFIC EXECUTIVE ASSOCIATION--- EASTERN RAILROADS SECTION 22 QUOTATION NO. A-757 AND SOUTHERN FREIGHT ASSOCIATION SECTION 22 QUOTATION NO. A-610-A, THE PROVISIONS OF ITEM 14 (F) IN AMENDMENT NO. 26 TO QUOTATION NO. 16-F ARE SUBSTANTIALLY THE SAME. CONSISTENT WITH THE CITED DECISIONS, WE BELIEVE THE GOVERNMENT IS ENTITLED TO AN ADJUSTMENT BASED ON THE CHARGES ACTUALLY PAID INBOUND ON THE MINIMUM WEIGHT TO THE TRANSIT POINT. UNLESS SUCH AN ADJUSTMENT IS MADE, CHARGES IN EXCESS OF THOSE COMPUTED AT THE LOWEST THROUGH RATE ARE BEING ASSESSED ON THE THROUGH TRANSIT MOVEMENT.

IN THESE CIRCUMSTANCES, AND FOR THE REASONS STATED IN THOSE DECISIONS, THE SETTLEMENT OF MAY 27, 1960, IN WHICH YOUR CLAIM FOR $730.52 WAS DISALLOWED, IS SUSTAINED.