B-144274, APR. 11, 1961

B-144274, APR. 11, 1961

TO UNION PACIFIC RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 14, 1960, IN WHICH YOU REQUEST A REVIEW OF SETTLEMENT CERTIFICATE OF JUNE 1, 1960, WHICH DISALLOWED YOUR CLAIM FOR $595.82 ON BILL NO. TW-101027-A FOR ADDITIONAL CHARGES FOR FREIGHT TRANSPORTATION FURNISHED THE DEPARTMENT OF THE ARMY.

YOUR CLAIM INVOLVES TWO SHIPMENTS OF AIRPLANE LANDING MATS WHICH MOVED UNDER BILLS OF LADING WQ-13979046 AND WQ-13979047, DATED JANUARY 31, 1944, FROM MADISON, ILLINOIS, TO CHEYENNE, WYOMING, WHERE THE SHIPMENTS WERE STORED IN TRANSIT UNDER THE PROVISIONS OF UNION PACIFIC RAILROAD COMPANY SECTION 22 QUOTATION NO. 22. FOR THIS TRANSPORTATION YOU WERE ORIGINALLY PAID CHARGES COMPUTED ON A GROSS RATE OF 86 CENTS PER 100 POUNDS PUBLISHED IN WESTERN TRUNK LINES TARIFF NO. 232-A, I.C.C. NO. A-2594. IN THE AUDIT OF THE PAYMENT VOUCHER COVERING THE SUBJECT BILLS OF LADING, SINCE OUR RECORDS DID NOT SHOW THAT THE SHIPMENTS MOVED BEYOND CHEYENNE, INQUIRY WAS MADE TO YOU AS TO THE OUTBOUND SHIPMENT. YOU ADVISED IN YOUR LETTER OF JULY 7, 1954, FILE FGW 101027, THAT THE ENTIRE INBOUND TONNAGE WAS RESHIPPED TO PALM SPRINGS, CALIFORNIA, UNDER BILLS OF LADING WW-1915166 AND WW-1915167. IT WAS DETERMINED SINCE PALM SPRINGS WAS NEITHER A TRANSIT STATION NOR A PORT OF EXPORTATION THAT THESE WERE LOCAL SHIPMENTS AND A NOTICE OF OVERCHARGE WAS ISSUED FOR $595.82 BASED UPON THE AFOREMENTIONED RATE OF 86 CENTS PER 100 POUNDS LESS APPLICABLE LAND-GRANT DEDUCTIONS.

YOU REFUNDED THIS AMOUNT BUT NOW RECLAIM THE AMOUNT REFUNDED RELYING UPON AN AGREEMENT RELATING TO THE HANDLING OF CLAIMS INVOLVING TRANSIT SHIPMENTS. ASSOCIATION OF AMERICAN RAILROADS CIRCULAR OF DECEMBER 1, 1949, FILE 215-17, SIGNED BY E. H. BUNNELL, VICE PRESIDENT, IS DIRECTED TO RAILROAD CHIEF AND FREIGHT ACCOUNTING OFFICERS AND SETS FORTH PROCEDURE FOR ADJUSTMENTS WITH THE GENERAL ACCOUNTING OFFICE OF TRANSPORTATION CHARGES ON TRANSIT SHIPMENTS ORIGINATING PRIOR TO OCTOBER 1, 1946. THE PROCEDURE SET FORTH IN THIS CIRCULAR REQUIRES GENERALLY THAT ANY ADJUSTMENTS OF CHARGES INVOLVING TRANSIT SHIPMENTS BE MADE WITH THE DESTINATION CARRIER. THE LETTER UPON WHICH YOU BASE YOUR CLAIM IS ASSOCIATION OF AMERICAN RAILROADS CIRCULAR OF NOVEMBER 23, 1959, FILE 10-3 -13, SIGNED BY WAYNE IRWIN, VICE PRESIDENT, DIRECTED TO RAILROAD FREIGHT ACCOUNTING OFFICERS AND PROVIDES IN PERTINENT PART AS TO CERTAIN CASES IN WHICH INTERPRETATION OF APPLICABLE STATUTES OF LIMITATIONS PRECLUDES ADJUSTMENT WITH THE DESTINATION CARRIER THAT:

"THE GENERAL ACCOUNTING OFFICE HAS AGREED THAT IN THE EVENT AN ERRONEOUS DEDUCTION IS MADE IN THE INBOUND CHARGES TO THE TRANSIT POINT AND THE CHARGES REDUCED BELOW THE AMOUNT FOR WHICH THE GOVERNMENT RECEIVED CREDIT ON THE OUTBOUND MOVEMENT, IT WILL GIVE FULL CONSIDERATION TO A SUPPLEMENTAL BILL OF THE INBOUND CARRIER RECLAIMING THE RETURN OF THE CHARGES ERRONEOUSLY UCTED.'

IN THE PRESENT CASE THE SOUTHERN PACIFIC RAILROAD COMPANY, THE DESTINATION CARRIER, PRESENTED SUPPLEMENTAL BILLS ON THE OUTBOUND SHIPMENTS WHICH WERE EXAMINED BY OUR OFFICE AFTER THE INBOUND SHIPMENTS HAD BEEN EXAMINED. WE DISALLOWED THE OUTBOUND CLAIMS OF THE SOUTHERN PACIFIC AND ISSUED NOTICES OF OVERCHARGE ON THE OUTBOUND SHIPMENTS USING IN THE SETTLEMENT THE REDUCED AMOUNTS PAID AS INBOUND CHARGES AND SUCH OVERCHARGES SUBSEQUENTLY WERE COLLECTED. THUS THE DESTINATION CARRIER WAS PAID THE THROUGH CHARGES FROM POINT OF ORIGIN TO DESTINATION PLUS A CHARGE FOR TRANSIT LESS THE ADJUSTED AMOUNTS PAID TO YOU ON THE INBOUND MOVEMENTS TO CHEYENNE. THUS THERE HAS APPARENTLY BEEN NO ERRONEOUS DEDUCTION MADE IN THE INBOUND CHARGES TO THE TRANSIT POINT SINCE THE GOVERNMENT HAS NOT RECEIVED CREDIT ON THE OUTBOUND MOVEMENT FOR ANY GREATER AMOUNTS THAN WERE ACTUALLY PAID ON THE INBOUND MOVEMENT.

ACCORDINGLY, AND SINCE IT WOULD SERVE NO USEFUL PURPOSE TO READJUST THE INBOUND CHARGES AND THEN MAKE A CORRESPONDING ADJUSTMENT ON THE OUTBOUND CHARGES, THE DISALLOWANCE OF YOUR CLAIM APPEARS CORRECT AND IS SUSTAINED.