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B-148292, JUL. 6, 1962

B-148292 Jul 06, 1962
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TO LEHIGH VALLEY RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 19. INDICATED THAT A REFUND OF AN OVERCHARGE OF $104.03 WAS DUE ON SHIPMENTS OF CRUDE NATURAL RUBBER TRANSPORTED UNDER GOVERNMENT BILLS OF LADING NOS. THE RECORD SHOWS THAT THIS CRUDE RUBBER WAS IMPORTED THROUGH PIER 4. ARE POINTS NAMED IN ASSOCIATION OF AMERICAN RAILROADS' SECTION 22 QUOTATION NO. 102 AND SUPPLEMENTS. THE FORMER IS A TRANSIT POINT AND THE LATTER IS A POINT OF DESTINATION. THIS SHIPMENT WAS COMPOSED OF 26. WERE PAID PRIOR TO AUDIT AT A RATE OF 75 CENTS. WAS ISSUED FOR $62.42. THE CHARGES WERE COMPUTED ON THE SAME THROUGH RATE OF 75 CENTS PER 100 POUNDS AS BILLED BY YOU. WITH THE EXCEPTION THAT CREDIT FOR INBOUND CHARGES WAS BASED ON 40 CENTS PER 100 POUNDS.

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B-148292, JUL. 6, 1962

TO LEHIGH VALLEY RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF FEBRUARY 19, 1962, FILE 601-G -137563, ACKNOWLEDGED MARCH 7, 1962, IN WHICH YOU REQUEST REVIEW OF THE SETTLEMENT CERTIFICATE OF JANUARY 31, 1962, WHICH DISALLOWED YOUR CLAIM FOR $78.03 ADDITIONAL CHARGES ALLEGEDLY DUE, AND INDICATED THAT A REFUND OF AN OVERCHARGE OF $104.03 WAS DUE ON SHIPMENTS OF CRUDE NATURAL RUBBER TRANSPORTED UNDER GOVERNMENT BILLS OF LADING NOS. GS 2328 AND GS-2329 AND ON YOUR WAYBILL 11078; OUR CLAIM TK-679141. THE RECORD SHOWS THAT THIS CRUDE RUBBER WAS IMPORTED THROUGH PIER 4, STATEN ISLAND, NEW YORK, STORED IN TRANSIT AT ALLENTOWN, PENNSYLVANIA, AND SUBSEQUENTLY RESHIPPED TO DESTINATION, BARBERTON, OHIO. ALLENTOWN, PENNSYLVANIA, AND BARBERTON, OHIO, ARE POINTS NAMED IN ASSOCIATION OF AMERICAN RAILROADS' SECTION 22 QUOTATION NO. 102 AND SUPPLEMENTS; THE FORMER IS A TRANSIT POINT AND THE LATTER IS A POINT OF DESTINATION.

THE LEHIGH VALLEY RAILROAD COMPANY'S WAYBILL 11078, DATED JULY 27, 1953, COVERS THE OUTBOUND MOVEMENT OF 104,035 POUNDS OF CRUDE RUBBER FROM ALLENTOWN, PENNSYLVANIA, TO THE SEIBERLING RUBBER COMPANY, BARBERTON, OHIO. THIS SHIPMENT WAS COMPOSED OF 26,681 POUNDS WHICH MOVED INBOUND UNDER GOVERNMENT BILL OF LADING GS-2328, AND 77,354 POUNDS WHICH MOVED INBOUND UNDER GOVERNMENT BILL OF LADING GS-2329. BOTH OF THE INBOUND SHIPMENTS MOVED ON MARCH 2, 1951, FROM THE POINT OF ORIGIN, PIER 4, STATEN ISLAND, NEW YORK, TO ALLENTOWN, PENNSYLVANIA. THE CHARGES FOR THE THROUGH SHIPMENT FROM STATEN ISLAND, NEW YORK, TO BARBERTON, OHIO, WERE PAID PRIOR TO AUDIT AT A RATE OF 75 CENTS, MINUS A PAID-IN RATE OF 34 CENTS PER 100 POUNDS, PLUS A TRANSIT CHARGE OF 10 CENTS, AUTHORIZED IN ITEM 5590E OF TRUNK LINE TERRITORY TARIFF NO. 23-N, I.C.C. NO. A-823, AND ASSOCIATION OF AMERICAN RAILROADS' SECTION 22 QUOTATION NO. 102.

ON MARCH 3, 1959, A NOTICE OF OVERCHARGE, FORM 1003, WAS ISSUED FOR $62.42. THE CHARGES WERE COMPUTED ON THE SAME THROUGH RATE OF 75 CENTS PER 100 POUNDS AS BILLED BY YOU, WITH THE EXCEPTION THAT CREDIT FOR INBOUND CHARGES WAS BASED ON 40 CENTS PER 100 POUNDS, THE ACTUAL RATE PAID INBOUND. A DEDUCTION OF $62.42 WAS MADE FROM BILL NO. 172622 ON AUGUST 26, 1959.

YOUR CLAIM FOR $78.03, BASED ON A THROUGH RATE OF 75 CENTS PER 100 POUNDS, WAS PRESENTED IN SUPPLEMENTAL BILL NO. 137563-A. THIS CLAIM WAS DISALLOWED BY THE CERTIFICATE OF SETTLEMENT DATED JANUARY 31, 1962, AND A FORM 1003 ISSUED REQUESTING A REFUND OF $104.03. THE OVERCHARGE RESULTED FROM THE APPLICATION OF A THROUGH RATE OF 65 CENTS PER 100 POUNDS, PUBLISHED IN ITEM 7160 OF TRUNK LINE TERRITORY TARIFF NO. 23-N, I.C.C. NO. A-823.

YOU URGE THAT THE THROUGH RATE OF 75 CENTS PER 100 POUNDS, UNDER ITEM 5590, RATHER THAN THE 65-CENT RATE UNDER ITEM 7160, IN TL 23-N, I.C.C. A- 823, IS APPLICABLE TO THIS SHIPMENT, SINCE FOOTNOTE "B" IN ITEM 5590E PROVIDES THAT THE 75-CENT RATE WILL APPLY ONLY ON SHIPMENTS ACCORDED A STORAGE-IN-TRANSIT PRIVILEGE, AND FOOTNOTE "B" IN ITEM 7160 PROVIDES THAT THE 65-CENT RATE WILL NOT APPLY ON SHIPMENTS ACCORDED TRANSIT PRIVILEGES EXCEPT AT APPROXIMATELY 25 SPECIFIC POINTS.

THE EVIDENT PURPOSE OF THE ASSOCIATION OF AMERICAN RAILROADS' SECTION 22 QUOTATION NO. 102 WAS TO ACCORD TO SHIPMENTS GRANTED THE TRANSIT PRIVILEGE THEREUNDER THE BENEFIT OF THE LOWEST THROUGH RATES THAT WOULD HAVE APPLIED HAD THE SHIPMENTS NOT BEEN STOPPED FOR STORAGE. THE RESTRICTED RATE UNDOUBTEDLY WAS APPLICABLE ON A THROUGH SHIPMENT FROM THE PORT OF IMPORTATION TO THE FINAL DESTINATION OF THE SHIPMENT CONCERNED, AND WAS, UNDER THE EXPRESS TERM OF THE QUOTATION, THE RATE WHICH THE CARRIER AGREED TO ACCEPT ON THE TRAFFIC ACCORDED THE TRANSIT PRIVILEGE UNDER THE SECTION 22 QUOTATION. THE QUOTATION DID NOT NAME WHICH OF THE THROUGH-LINE-HAUL RATES WAS TO BE APPLIED TO SHIPMENTS GIVEN TRANSIT UNDER THE QUOTATION, AND THE LOWER 65-CENT RATE WAS A THROUGH RATE FROM ORIGINAL PORT OF ENTRY, PIER 4, STATEN ISLAND, NEW YORK, TO FINAL DESTINATION, BARBERTON, OHIO.

WE CONCLUDE THAT UNDER THE PROVISIONS OF THE ASSOCIATION OF AMERICAN RAILROADS' SECTION 22 QUOTATION NO. 102, THE APPLICABLE CHARGES ON THIS SHIPMENT SHOULD BE COMPUTED ON THE THROUGH RATE OF 65 CENTS PER 100 POUNDS AND A CARLOAD MINIMUM WEIGHT OF 70,000 POUNDS UNDER ITEMS 7160 IN SUPPLEMENT NO. 226 OF TRUNK LINE TERRITORY TARIFF NO. 23-N, I.C.C. NO. A- 823, SINCE THE PROVISION IN FOOTNOTE "B" DOES NOT NULLIFY THE PRIVILEGE GRANTED BY THE QUOTATION. ACCORDINGLY, THE SETTLEMENT OF JANUARY 31, 1962, DISALLOWING YOUR CLAIM FOR $78.03, IS SUSTAINED. THE OVERCHARGE OF $104.03 PAID ON YOUR UNNUMBERED BILL DATED SEPTEMBER 28, 1953, SHOULD BE REMITTED PROMPTLY, OTHERWISE THIS AMOUNT WILL BE COLLECTED BY DEDUCTION.

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