B-158103, FEB. 8, 1966

B-158103: Feb 8, 1966

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FOR THIS OUTBOUND MOVEMENT YOU ORIGINALLY CLAIMED AND WERE PAID $26.78 APPLYING A THROUGH RATE OF 88 CENTS PER 100 POUNDS FROM THE POINT OF ORIGIN. THIS ASSERTED OVERCHARGE IN THE AMOUNT OF $84.15 WAS RECOVERED BY DEDUCTION ON DECEMBER 6. WE HAVE SOME DOUBT THAT THE USE OF THE WORD "DIRECT" IN THAT PROVISION NECESSARILY HAS THE EFFECT WHICH YOU CONTEND. WILL BE SUBJECT AND ENTITLED TO THE LOWEST THROUGH ALL-RAIL CARLOAD RATE (JOINT OR COMBINATION) THEREON.

B-158103, FEB. 8, 1966

TO THE GULF, MOBILE AND OHIO RAILROAD COMPANY:

IN YOUR LETTER OF NOVEMBER 24, 1965, YOU REQUEST REVIEW OF THE PARTIAL DISALLOWANCE OF YOUR CLAIM, PER BILL NO. 79791-CL25, FOR ADDITIONAL CHARGES ALLEGED TO BE DUE FOR THE MOVEMENT OF CANNED SALMON FROM STORAGE- IN-TRANSIT AT KANSAS CITY, MISSOURI, TO MOBILE, ALABAMA, FOR EXPORT, UNDER GOVERNMENT BILL OF LADING A-342367 DATED MARCH 22, 1944.

FOR THIS OUTBOUND MOVEMENT YOU ORIGINALLY CLAIMED AND WERE PAID $26.78 APPLYING A THROUGH RATE OF 88 CENTS PER 100 POUNDS FROM THE POINT OF ORIGIN, SEATTLE, WASHINGTON, PER ITEM 1610 OF TRANS CONTINENTAL TARIFF BUREAU TARIFF NO. 2-L, I.C.C. 1480, LESS A CREDIT OF 88 CENTS PER 100 POUNDS PAID INBOUND TO THE TRANSIT STATION, PLUS A TRANSIT CHARGE OF 3 1/2 CENTS PER 100 POUNDS. ON AUDIT OF THE PAYMENT VOUCHER, OUR OFFICE CONSIDERED THAT AN OVERCHARGE HAD BEEN MADE, COMPUTING THE APPLICABLE CHARGES ON THE BASIS OF A THROUGH RATE OF 77 CENTS PER 100 POUNDS AS PROVIDED BY ITEMS 6020-H AND 63-B OF TCFB 2-L. THIS ASSERTED OVERCHARGE IN THE AMOUNT OF $84.15 WAS RECOVERED BY DEDUCTION ON DECEMBER 6, 1961. RESPONSE TO YOUR RE-CLAIM BY LETTER OF JANUARY 29, 1965, WE MADE A PARTIAL ALLOWANCE OF $38.25 BASED ON THROUGH RATE OF 77 CENTS PER 100 POUNDS INCREASED PER TARIFF OF INCREASED RATES AND CHARGES X-148 TO 82 CENTS PER 100 POUNDS AND DISALLOWED THE DIFFERENCE OF $45.90.

YOU CONTEND THAT THE 82 CENTS RATE DOES NOT APPLY BECAUSE ITEM 63-B OF TCFB 2-L, WHICH EXTENDS THE APPLICATION OF THE NEW ORLEANS, LOUISIANA, RATE TO MOBILE, ALABAMA, PROVIDES THAT THE SHIPMENTS MUST BE "CONSIGNED DIRECT FROM POINTS OF ORIGIN TO DESTINATIONS IN MEXICO, WEST INDIES ISLANDS, PANAMA, CENTRAL AMERICA, OR SOUTH AMERICA," AND DOES NOT PERMIT STORAGE IN TRANSIT.

WE HAVE SOME DOUBT THAT THE USE OF THE WORD "DIRECT" IN THAT PROVISION NECESSARILY HAS THE EFFECT WHICH YOU CONTEND. BUT IN ANY CASE, THE SHIPMENT MOVED UNDER A TRANSIT PRIVILEGE GRANTED TO THE GOVERNMENT BY THE TERMS OF ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATION 41-B. THAT QUOTATION PROVIDES, IN ITEM 5 (B):

"* * * EACH SHIPMENT MADE FROM ITS ORIGINAL POINT OF ORIGIN UNDER THE TERMS OF THIS QUOTATION ON AND 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 ITS PORT OF TRANSSHIPMENT OR RAIL HEAD, IN EFFECT ON MAY 14, 1943, AS SHOWN IN TARIFFS THEN ON FILE WITH THE INTERSTATE COMMERCE COMMISSION OR ANY STATE REGULATORY AUTHORITY.'

THE 82 CENTS RATE APPEARS TO BE THE LOWEST RATE IN EFFECT FROM THE POINT OF ORIGIN, SEATTLE TO MOBILE, MAKING IT APPLICABLE UNDER THE TERMS OF THE QUOTATION GRANTING THE TRANSIT PRIVILEGE.