B-151318, B-143568, JAN. 2, 1964

B-151318, B-143568, JAN. 2, 1964

TO UNION PACIFIC RAILROAD COMPANY:

IN YOUR LETTERS OF AUGUST 1 AND APRIL 15, 1963, FILE GW 171704, YOU REQUEST REVIEW OF OUR SETTLEMENT CERTIFICATE DATED FEBRUARY 28, 1963 (OUR CLAIM NO. TK-745834). THE SETTLEMENT DISALLOWED YOUR CLAIM FOR $116.39, AS ADDITIONAL FREIGHT CHARGES ALLEGEDLY DUE ON A CARLOAD SHIPMENT OF DETONATING FUZES ORIGINATING AT JACKSONVILLE, ARKANSAS, ON DECEMBER 27, 1944. THE SHIPMENT WAS STORED IN TRANSIT AT HERLONG, CALIFORNIA, AND AT RIALTO, CALIFORNIA, AND ON MAY 21, 1945, WAS RESHIPPED TO LONG BEACH, CALIFORNIA, FOR EXPORT.

AT ISSUE IN THIS CASE IS THE APPLICATION OF THE PROVISIONS OF ASSOCIATION OF AMERICAN RAILROADS SECTION 22 QUOTATIONS NO. 14-A, ENTITLED "AMMUNITION, EXPLOSIVES, ORDNANCE, ETC.; " NO. 31-C, ENTITLED "TRANSIT ARRANGEMENTS ON AMMUNITION, EXPLOSIVES AND OTHER ORDNANCE; " AND NO. 40-B, ENTITLED "STORAGE IN TRANSIT OF AMMUNITION, EXPLOSIVES, AND OTHER ORDNANCE AT BACK-UP DEPOTS.'

YOU CONTEND THAT UNDER THESE QUOTATIONS THE APPLICABLE RATE IS 65 PERCENT OF THE SINGLE FACTOR THROUGH FIRST-CLASS RATE FROM JACKSONVILLE, ARKANSAS, TO LONG BEACH, CALIFORNIA, PUBLISHED IN TRANSCONTINENTAL FREIGHT BUREAU SOUTH COAST CLASS TARIFF NO. 39-G. OUR SETTLEMENT ACTION IS BASED ON THE THEORY THAT THE APPLICABLE RATE ON THIS SHIPMENT IS 65 PERCENT OF A COMBINATION THROUGH FIRST-CLASS RATE, CONSTRUCTED OVER RENO, NEVADA. THE FACTORS USED ARE A FIRST-CLASS RATE FROM JACKSONVILLE, ARKANSAS, TO RENO, NEVADA, NAMED IN TARIFF NO. 39-G, AND A FIRST-CLASS RATE FROM RENO, NEVADA, TO SAN FRANCISCO,CALIFORNIA, NAMED IN PACIFIC FREIGHT TARIFF BUREAU TARIFF NO. 258. THIS AGGREGATE OF THE INTERMEDIATE RATES IS AUTHORIZED BY SECTION 3 OF TARIFF NO. 39-G TO DISPLACE THE SINGLE FACTOR FIRST-CLASS RATE FROM JACKSONVILLE TO SAN FRANCISCO, WHICH WE BELIEVE IS MADE APPLICABLE TO THE LONG BEACH DESTINATION OF THIS SHIPMENT BY SECTION 1 OF ITEM 111 OF TARIFF NO. 39-G.

THE APPLICATION OF ITEM 111 OF TARIFF NO. 39-G IN CIRCUMSTANCES SUBSTANTIALLY SIMILAR TO THOSE PRESENT IN THIS CASE IS AN ISSUE NOW PENDING IN UNION PACIFIC RAILROAD COMPANY V. UNITED STATES, COURT OF CLAIMS NO. 289-60, ON SHIPMENTS IDENTIFIED IN THE SCHEDULES FILED IN THAT SUIT AS BEING INCLUDED IN ITEM NOS. 141, 145, 183, 275 AND 291. LITIGATION ON THOSE ITEMS APPARENTLY WAS GENERATED BY OUR ADJUSTMENTS WHICH GAVE EFFECT TO THE ABOVE COMBINATION RATE CHARGE BASIS.

IN THE CIRCUMSTANCES WE WILL NOT TAKE DISPOSITIVE ACTION ON THE SUBJECT CLAIM AT THIS TIME. WHEN A FINAL JUDICIAL DETERMINATION OF THE ISSUE HAS BEEN MADE, YOU MAY REQUEST FURTHER CONSIDERATION OF THIS CLAIM IF THE SITUATION IS FOUND TO WARRANT SUCH ACTION.