B-148546, JUL. 24, 1962

B-148546, JUL. 24, 1962

TO THE CENTRAL RAILROAD COMPANY OF NEW JERSEY:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 25 AND 28, 1962, WITH ENCLOSURES, ACKNOWLEDGED APRIL 9, 1962, REQUESTING A REVIEW OF THE SETTLEMENTS WHICH PARTIALLY DISALLOWED YOUR CLAIMS FOR ADDITIONAL CHARGES ON YOUR SUPPLEMENTAL BILLS LISTED BELOW:

TABLE

CARRIER'S YOUR OUR

BILL FILE FILE CLAIMED DISALLOWED 1. 222240-42-A 170291-AFL TK-716691 $123.04 $29.00 2. 222229-42-A 171539-AFL TK-716802

123.04 29.00 3. 222113-42-A 170290-AFL TK-716804 123.04 29.00 4. 222230- 42-A 171563-AFL TK-716805 123.04 29.00 5. 222227-42-A 174952-AFL TK- 717260 123.04 28.99 6. 201042-42-A 174968-AFL TK-717269

123.04 29.00 7. 222593-42-A 170478-AFL TK-716807 157.49 37.12 8. 201149- 42-A 171566-AFL TK-716819 157.49 37.129. 2996-43-A 1997-AFL TK-716756 133.66 44.56 10. 21489-43-A 244883-AFL TK-719067

66.93 38.28

THE SUPPLEMENTAL BILLS STATE CLAIMS FOR ADDITIONAL FREIGHT CHARGES ALLEGEDLY DUE FOR THE TRANSPORTATION OF COMMODITY CREDIT CORPORATION SHIPMENTS OF FOODSTUFFS AND AGRICULTURAL PRODUCTS CONSIGNED TO FOREIGN GOVERNMENTS UNDER THE LEND-LEASE PROGRAM DURING WORLD WAR II.

THE CARRIER'S BILLS NUMBERED 1 THROUGH 6 IN THE FOREGOING LIST COVERED SIX CARLOAD SHIPMENTS OF EVAPORATED MILK, EACH SHIPMENT CONTAINING 1,250 CASES AND WEIGHING 72,500 POUNDS, WHICH WERE TRANSPORTED FROM PORT NEWARK, NEW JERSEY, TO NEW YORK LIGHTERAGE, NEW JERSEY, FOR RESHIPMENT TO THE UNITED KINGDOM. THE SHIPMENTS ORIGINATED AT MOUNT VERNON, WASHINGTON, AND MOVED TO PORT NEWARK, NEW JERSEY, FOR STORAGE IN TRANSIT PRIOR TO RESHIPMENT. IN AN AUDIT OF THE THROUGH CHARGES NOTICES OF OVERCHARGE, FORMS 1003, WERE ISSUED FOR $296.03 FOR EACH SHIPMENT, BASED ON THE THEORY THAT THE SHIPMENTS WERE 100 PERCENT FOR MILITARY USE. HOWEVER, BY A 1959 AGREEMENT REACHED WITH MEMBER CARRIERS OF THE ASSOCIATION OF AMERICAN RAILROADS THE SHIPMENTS WERE TO BE COMPUTED ON A 50 PERCENT MILITARY BASIS.

THE CHARGES ON A 50 PERCENT MILITARY BASIS WERE COMPUTED BY USING A THROUGH CIVIL RATE OF 93 CENTS, PLUS $7.35 TRANSIT CHARGE, AND A THROUGH MILITARY RATE OF $1.01, LESS DEDUCTIONS FOR LAND GRANT, PRODUCING A NET THROUGH RATE OF 67.058 CENTS, PLUS $7.35 TRANSIT CHARGE. THE DIFFERENCE OF $188.08 (72,500 POUNDS AT 93 CENTS PLUS $7.35, $681.61, LESS 72,500 POUNDS AT 67.058 CENTS PLUS $7.35, $493.54) WAS PROPORTIONED ON A 50 PERCENT BASIS, ALLOWING THE CARRIER $94.04, AND DISALLOWING $29.00 ON EACH BILL, WITH THE EXCEPTION OF BILL NUMBERED 5 ABOVE, ON WHICH $94.05 WAS ALLOWED AND $28.99 DISALLOWED.

YOU URGE THAT THE THROUGH RATE ON A CIVIL BASIS SHOULD BE 101 CENTS PLUS A TRANSIT CHARGE OF $7.35, RATHER THAN A 93-CENT RATE PLUS A TRANSIT CHARGE OF $7.35. THE DIRECT-LINE RATE FROM MOUNT VERNON, WASHINGTON, TO NEW YORK LIGHTERAGE, NEW JERSEY, IS 93 CENTS PER 100 POUNDS, PUBLISHED IN ITEM 6020 OF TRANS-CONTINENTAL FREIGHT BUREAU EAST-BOUND TARIFF NO. 2-K, I.C.C.NO. 1464, NAMING LOCAL, JOINT, EXPORT, IMPORT AND PROPORTIONAL COMMODITY RATES. THIS RATE WAS APPLICABLE CONSIDERING THE MOVEMENT AS A CIVIL SHIPMENT. ON THE OTHER HAND--- CONSIDERING THE SHIPMENT AS A MILITARY SHIPMENT--- UNDER THE TERMS OF THE FREIGHT LAND-GRANT EQUALIZATION AGREEMENT WITH THE WAR DEPARTMENT, TO WHICH THE PERTINENT CARRIERS IN THE ACTUAL ROUTE OF MOVEMENT OF THE SHIPMENTS WERE PARTIES, THE LOWEST NET RATE LAWFULLY AVAILABLE OVER LAND-GRANT ROUTES WAS A COMBINATION RATE APPLICABLE VIA THE LAND-GRANT ROUTE OF THE NORTHERN PACIFIC RAILROAD FROM SEATTLE, WASHINGTON, TO SUPERIOR, WISCONSIN, THENCE VIA CONNECTING LINES TO DESTINATION, LESS APPLICABLE DEDUCTIONS FOR LAND GRANT. SEE SOUTHERN RAILWAY COMPANY V. UNITED STATES, 322 U.S. 72. THE COMBINATION RATE OF 101 CENTS WAS COMPOSED OF A RATE OF 8 CENTS FROM MOUNT VERNON, WASHINGTON, TO SEATTLE, WASHINGTON, PUBLISHED IN ITEM 1210 OF NORTH PACIFIC COAST FREIGHT BUREAU TARIFF I-L, I.C.C.NO. 620, AND A RATE OF 93 CENTS FROM SEATTLE TO NEW YORK LIGHTERAGE, NEW JERSEY, PUBLISHED IN TRANS CONTINENTAL FREIGHT BUREAU EAST-BOUND TARIFF NO. 2-K, I.C.C.NO. 1464.

WHILE ONLY THE 101-CENT RATE, APPLICABLE OVER THE LAND-GRANT ROUTE, WAS NECESSARY IN COMPUTING THE CHARGES ON A MILITARY SHIPMENT, THE DIRECT-LINE RATE OF 93 CENTS WAS EQUALLY NECESSARY IN COMPUTING THE CHARGES ON A CIVIL SHIPMENT. IN THE PRESENT CASE WE HAVE SHIPMENTS WHICH ARE PARTIALLY CIVIL SHIPMENTS AND PARTIALLY MILITARY SHIPMENTS. UNDER THE "CCC AGREEMENT, REQ -N.NO. UK 12095," TO WHICH REFERENCE IS MADE IN THE SETTLEMENT CERTIFICATES HERE INVOLVED, ALL OF THE SHIPMENTS, EXCEPT THE LAST IN THE FOREGOING LIST, CONSISTED OF PROPERTY OF WHICH 50 PERCENT WAS A CIVIL SHIPMENT AND 50 PERCENT WAS A MILITARY SHIPMENT. THUS, IN COMPUTING CHARGES ON SHIPMENTS WHICH WERE PART CIVIL AND PART MILITARY, BOTH THE DIRECT-LINE RATE OF 93 CENTS, APPLICABLE ON CIVIL SHIPMENTS, AND THE RATE OF 101 CENTS, APPLICABLE OVER THE LAND-GRANT ROUTE ON MILITARY SHIPMENTS, WERE NECESSARY IN MAKING THE COMPUTATION.

THE BILLS NUMBERED 7 AND 8 IN THE FOREGOING LIST ARE IDENTICAL WITH THOSE NUMBERED 1 THROUGH 6, EXCEPT THAT UNDER NUMBERS 7 AND 8 EACH SHIPMENT WEIGHED 92,800 POUNDS RATHER THAN 72,500 POUNDS. THE THROUGH RATE APPLICABLE FOR THE SHIPMENTS UNDER NUMBERS 7 AND 8 IS THE SAME AS THAT FOR THE SHIPMENTS UNDER NUMBERS 1 THROUGH 6, EXPLAINED ABOVE.

AS FOR THE CARRIER'S BILL NUMBERED 9 IN THE ABOVE LIST, THE LOWEST NET RATE LAWFULLY AVAILABLE OVER THE LAND-GRANT ROUTE WAS CONSTRUCTED VIA THE ROUTE OF THE NORTHERN PACIFIC RAILROAD FROM GARFIELD AND TEKOA, WASHINGTON, POINTS OF ORIGIN, RATHER THAN MOUNT VERNON, WASHINGTON.

CARRIER'S BILL NUMBERED 10 IN THE ABOVE LIST DIFFERS FROM THE OTHER SHIPMENTS, SINCE IT WAS A LEND-LEASE SHIPMENT FOR RUSSIA. THE PROPORTIONMENT FOR THE RUSSIAN LEND-LEASE SHIPMENT IS 75 PERCENT MILITARY AND 25 PERCENT CIVIL, RATHER THAN 50 PERCENT MILITARY AND 50 PERCENT CIVIL. THE ORIGIN POINT FOR THIS SHIPMENT WAS ELBERTON, WASHINGTON. THE THROUGH CIVIL RATE WAS 98 CENTS AND THE THROUGH MILITARY RATE WAS 117 CENTS. THE COMBINATION RATE WAS COMPOSED OF A 9 1/2 CENT RATE TO COLFAX, WASHINGTON, PLUS 9 1/2 CENT RATE TO GARFIELD, WASHINGTON, PLUS 98 CENT RATE TO DESTINATION, LESS LAND-GRANT DEDUCTIONS, OR A NET RATE OF 83.783 CENTS FROM ELBERTON, WASHINGTON, TO FINAL DESTINATION, NEW YORK LIGHTERAGE, NEW JERSEY.

THE METHOD USED IN THESE INSTANCES IN COMPUTING THE CHARGES UNDER THE 50 PERCENT MILITARY AND 50 PERCENT CIVIL DESIGNATION, OR THE 75 PERCENT MILITARY AND 25 PERCENT CIVIL DESIGNATION, IS THAT REGULARLY USED BY OUR TRANSPORTATION DIVISION IN THE SETTLEMENT OF SIMILAR CASES IN THE PAST AND DETAILS WERE OUTLINED IN EACH OF THE SETTLEMENT CERTIFICATES INVOLVED IN THIS CASE.

ACCORDINGLY, ON THE BASIS OF THE RECORD, THE DISALLOWANCES OF YOUR BILLS, AS STATED IN THE SETTLEMENT CERTIFICATES ISSUED FOR THE LISTED NUMBERED BILLS, ARE PROPER AND ARE SUSTAINED.