B-90913, JANUARY 25, 1950, 29 COMP. GEN. 308

B-90913: Jan 25, 1950

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TRANSPORTATION - RATES - SUPPLEMENTAL DIVISION BASES - RETROACTIVE EFFECT A SUPPLEMENT TO A DIVISION SHEET ISSUED ON BEHALF OF A CARRIER AFTER THE GOVERNMENT SHIPMENT WAS COMPLETED. - AND SAID BILL WAS PAID ACCORDINGLY IN THE MARCH 1943 ACCOUNTS OF MAJOR M. IN THE AUDIT OF THE PAYMENT VOUCHER IT WAS DETERMINED THAT AN OVERPAYMENT OF $603.99 EXISTED. IT IS REPORTED THAT THE INDICATED OVERPAYMENT OF $603.99 WAS REFUNDED. FOR ADDITIONAL CHARGES OF $71.78 WAS DISALLOWED IN THE SUBJECT SETTLEMENT. IN YOUR REQUEST FOR REVIEW YOU MAKE FURTHER CLAIM FOR THE AMOUNT OF $71.78 URGING THAT THE APPLICABLE NET RATE WAS $1.04222 PER 100 POUNDS DERIVED FROM THE $1.63 RATE BY DIVIDING IT IN PART ON THE BASIS OF ALLOWING 22 PERCENT TO THE ILLINOIS CENTRAL RAILROAD FROM ORDILL TO CAIRO.

B-90913, JANUARY 25, 1950, 29 COMP. GEN. 308

TRANSPORTATION - RATES - SUPPLEMENTAL DIVISION BASES - RETROACTIVE EFFECT A SUPPLEMENT TO A DIVISION SHEET ISSUED ON BEHALF OF A CARRIER AFTER THE GOVERNMENT SHIPMENT WAS COMPLETED, WHICH SHOWS A BASIS FOR DIVISION OF RATES RESULTING IN A HIGHER NET CHARGE, MAY NOT BE APPLIED RETROACTIVELY TO INCREASE THE COST OF THE SHIPMENT TO THE GOVERNMENT OVER AND ABOVE THE LOWEST AMOUNT APPLICABLE UNDER PUBLISHED DIVISION BASES IN EFFECT ON THE DATE OF SERVICE.

ASSISTANT COMPTROLLER GENERAL YATES TO THE ST. LOUIS SOUTHWESTERN RAILWAY COMPANY OF TEXAS, JANUARY 25, 1950:

CONSIDERATION HAS BEEN GIVEN YOUR REQUEST FOR REVIEW OF SETTLEMENT CERTIFICATE NO. 348206 1/2, DATED FEBRUARY 2, 1948, WHICH DISALLOWED YOUR CLAIM, PER BILL NO. 244-A FEB. 1943, FOR $71.78, AS A PART OF THE CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF EXPLOSIVE PROJECTILES FROM ORDILL, ILLINOIS, TO DEFENSE, TEXAS, IN JANUARY AND FEBRUARY 1943.

YOU CLAIMED ORIGINALLY FOR THIS SERVICE, PER BILL NO. 244 FEB. 1943, CHARGES OF $19,229.69 ON THE BASIS OF A RATE OF $1.63 PER 100 POUNDS--- REDUCED TO A NET RATE OF $1.07166 BY DEDUCTIONS FOR LAND GRANT--- AND SAID BILL WAS PAID ACCORDINGLY IN THE MARCH 1943 ACCOUNTS OF MAJOR M. B. HALE, ARMY DISBURSING OFFICER. IN THE AUDIT OF THE PAYMENT VOUCHER IT WAS DETERMINED THAT AN OVERPAYMENT OF $603.99 EXISTED, ON THE BASIS OF THE GROSS RATE OF $1.63 REDUCED TO A NET RATE OF $1.038 PER 100 POUNDS COMPUTED IN PART BY USING DIVISIONS OF 26 PERCENT TO AND 74 PERCENT BEYOND CAIRO, ILLINOIS, AS PROVIDED IN ITEM 145 OF SOUTHWESTERN LINES' DIVISION SHEET NO. 42. IT IS REPORTED THAT THE INDICATED OVERPAYMENT OF $603.99 WAS REFUNDED, AND YOUR CLAIM, PER BILL NO. 244-A FEB. 1943, FOR ADDITIONAL CHARGES OF $71.78 WAS DISALLOWED IN THE SUBJECT SETTLEMENT. IN YOUR REQUEST FOR REVIEW YOU MAKE FURTHER CLAIM FOR THE AMOUNT OF $71.78 URGING THAT THE APPLICABLE NET RATE WAS $1.04222 PER 100 POUNDS DERIVED FROM THE $1.63 RATE BY DIVIDING IT IN PART ON THE BASIS OF ALLOWING 22 PERCENT TO THE ILLINOIS CENTRAL RAILROAD FROM ORDILL TO CAIRO, SOUTHWESTERN LINES' DIVISION SHEET NO. 100 BEING REFERRED TO IN THIS CONNECTION.

SOUTHWESTERN LINES' DIVISION SHEET NO. 42, ITEM 145, PROVIDED IN SUBSTANCE THAT THE ILLINOIS CENTRAL RAILROAD PROPORTION FROM ORDILL TO CAIRO WAS 26 PERCENT AND THE RECORDS OF THIS OFFICE DO NOT SHOW THAT ANY PERTINENT DIVISION BASIS WAS PUBLISHED OTHERWISE PRIOR TO SEPTEMBER 20, 1946, WHEN--- MORE THAN THREE YEARS AFTER THE SHIPMENTS HERE INVOLVED WERE MADE--- SUPPLEMENT NO. 55 TO DIVISION SHEET NO. 100 WAS ISSUED. THIS SUPPLEMENT SHOWED, FOR THE FIRST TIME SO FAR AS DIVISION SHEET NO. 100 WAS CONCERNED, A BASIS FOR DIVISION OF RATES FROM ORDILL, ILLINOIS, ON THE ILLINOIS CENTRAL RAILROAD AND PROVIDED THAT THIS BASIS WAS TO BE EFFECTIVE WITH SEPTEMBER 1946 ACCOUNTS. IT IS THE WELL ESTABLISHED RULE OF THE ACCOUNTING OFFICERS OF THE UNITED STATES THAT DIVISION BASES WILL NOT BE APPLIED RETROACTIVELY WHEN THE RESULT WOULD BE TO INCREASE THE CHARGES TO THE UNITED STATES OVER AND ABOVE THOSE APPLICABLE THROUGH THE USE OF PUBLISHED BASES INDICATED ON THE DATE OF SERVICE TO BE THEN IN EFFECT. COMP. GEN. 568; 19 ID. 81. SETTLEMENT 348206 1/2 WAS CONSISTENT WITH THIS RULE AND, ACCORDINGLY, IS SUSTAINED.