B-114472, MAY 22, 1957

B-114472: May 22, 1957

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LTD.: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 7. YOU HAVE RAISED A QUESTION AS TO WHETHER THESE SETOFFS WERE NOT MADE FROM AMOUNTS DUE TO OTHER CARRIERS THAN THOSE RESPONSIBLE FOR THE DAMAGE. " WERE DEDUCTED ADMINISTRATIVELY FEBRUARY 4. " WERE DEDUCTED ADMINISTRATIVELY IN MAKING PAYMENT OF YOUR BILL 526 FOR DEMURRAGE ON CARGO DISCHARGED BY BY "CINGALESE PRINCE" AT NEW YORK. WAS ADMINISTRATIVELY DEDUCTED IN MAKING PAYMENT OF AN UNNUMBERED BILL OF YOUR SAN FRANCISCO OFFICE FOR THE TRANSPORTATION OF A SHIPMENT ABOARD THE . IT DOES NOT APPEAR THAT ANY OF THESE DEDUCTIONS HAVE BEEN MADE FROM CARRIERS OTHER THAN THOSE FROM WHICH THE AMOUNTS WERE DUE. THE HOLDING THERE WAS THAT ITEMS OF DEDUCTION NOT SUED ON BY THE CARRIER WITHIN TWO YEARS WERE BARRED AND SHOULD BE DISMISSED.

B-114472, MAY 22, 1957

TO FURNESS, WITHY AND COMPANY, LTD.:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 7, 1957, REQUESTING FURTHER CONSIDERATION OF OUR DECISION OF SEPTEMBER 24, 1956 (B 114472), SUSTAINING THE COLLECTION BY SETOFF, IN 1952 AND 1954, OF AMOUNTS REPRESENTING DAMAGE TO CERTAIN RUBBER SHIPPED FROM MALAYA TO NEW YORK, NEW YORK. YOU HAVE RAISED A QUESTION AS TO WHETHER THESE SETOFFS WERE NOT MADE FROM AMOUNTS DUE TO OTHER CARRIERS THAN THOSE RESPONSIBLE FOR THE DAMAGE. HOWEVER, YOUR PRESENT SUBMISSION CONCERNS PRINCIPALLY THE DECISIONS OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, IN ADMIRALTY, IN THE CASES OF ISTHMIAN STEAMSHIP COMPANY V. UNITED STATES, 1956 A.M.C. 2327, AND GRACE LINE, INC. V. UNITED STATES, 1956 A.M.C. 2331.

CONCERNING THE QUESTION OF THE DEDUCTIONS BEING MADE FROM AMOUNTS DUE PARTIES OTHER THAN THE PRINCE LINE, THE RECORD HERE SHOWS THAT THE AMOUNTS OF $124, $125, $7.67, AND $716.91 (TOTAL $973.58), REPRESENTING DAMAGE TO SHIPMENTS TRANSPORTED BY THE SHIPS "CINGALESE PRINCE" AND ,EASTERN PRINCE," WERE DEDUCTED ADMINISTRATIVELY FEBRUARY 4, 1954, IN MAKING PAYMENT OF YOUR BILLS AS FOLLOWS: BILL NO. AMOUNT VESSEL 451 $ 3.77 CINGALESE PRINCE

MANILA 1 2130 593.75 EASTERN PRINCESIGN S-17 3031 210.00

" " PEN 15 5099 45.23 CINGALESE PRINCE DJAK 8 UNNUMBERED 52.20 " " SING 23 5098 68.63 " " DJAK 2

$973.58

THE AMOUNTS OF $83.75, $105, $84.38, AND $36 (TOTAL $309.13), CLAIMED BY THE GENERAL SERVICES ADMINISTRATION ON BILLS NOS. 635-53, 636-53, 720-53, AND 3003, RESPECTIVELY, FOR SHIPMENTS ABOARD THE "JAVANESE PRINCE," "CINGALESE PRINCE," AND "EASTERN PRINCE," WERE DEDUCTED ADMINISTRATIVELY IN MAKING PAYMENT OF YOUR BILL 526 FOR DEMURRAGE ON CARGO DISCHARGED BY BY "CINGALESE PRINCE" AT NEW YORK, NEW YORK. THE AMOUNT OF $1,056 CLAIMED BY THE GENERAL SERVICES ADMINISTRATION, PER CLAIM 12398, FOR DAMAGE TO A SHIPMENT, JUNE 28, 1952, ON PORT SWETTENHAM BILL OF LADING NO. 23 OF THE ,JAVANESE PRINCE" OF THE PRINCE LINE, WAS ADMINISTRATIVELY DEDUCTED IN MAKING PAYMENT OF AN UNNUMBERED BILL OF YOUR SAN FRANCISCO OFFICE FOR THE TRANSPORTATION OF A SHIPMENT ABOARD THE ,CINGALESE PRINCE" IN FEBRUARY 1954. ACCORDINGLY, IT DOES NOT APPEAR THAT ANY OF THESE DEDUCTIONS HAVE BEEN MADE FROM CARRIERS OTHER THAN THOSE FROM WHICH THE AMOUNTS WERE DUE.

CONCERNING THE ISTHMIAN STEAMSHIP COMPANY CASE, TO WHICH YOU REFER, THE HOLDING THERE WAS THAT ITEMS OF DEDUCTION NOT SUED ON BY THE CARRIER WITHIN TWO YEARS WERE BARRED AND SHOULD BE DISMISSED, WITH LEAVE BEING GRANTED TO AMEND THE LIBEL TO PLEAD A RUNNING ACCOUNT. THAT CASE, THEREFORE, CANNOT BE VIEWED AS AUTHORITY FOR YOUR POSITION THAT THE GOVERNMENT SETOFFS WERE TIME-BARRED. THE DEPARTMENT OF JUSTICE HAS INFORMALLY ADVISED OUR OFFICE THAT AN APPEAL HAS BEEN TAKEN IN THE GRACE LINE, INC. CASE. THEREFORE, THE DECISIONS IN THE MENTIONED CASES ARE NOT FINAL AND DUE PROTECTION OF THE GOVERNMENT'S INTEREST REQUIRES OUR ADHERENCE TO THE CONCLUSION REACHED IN OUR PREVIOUS DECISIONS IN THIS MATTER, TO THE EFFECT THAT THE DEDUCTIONS MADE FROM FUNDS SUBSEQUENTLY DUE THE CARRIER TO RECOVER FOR DAMAGE TO GOVERNMENT PROPERTY WERE PROPER.

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