B-155530, MAY 4, 1965

B-155530, MAY 4, 1965

TO SOUTHERN PACIFIC COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF OCTOBER 26, 1964, IN WHICH YOU REQUEST A REVIEW OF THE SETTLEMENT CERTIFICATE (CLAIM NO. TK-750466), DATED MAY 24, 1963, DISALLOWING YOUR CLAIM FOR $405.02 AS ADDITIONAL CHARGES FOR TRANSPORTATION SERVICES FURNISHED UNDER GOVERNMENT BILL OF LADING AF-T-24916, ISSUED AUGUST 21, 1952.

THIS SHIPMENT, CONSISTING OF FREIGHT TRAILERS, NOIBN, WEIGHING 17,070 POUNDS, MOVED ON A TRANSIT BILL OF LADING FROM STORAGE IN TRANSIT AT PRAIRIE, MISSISSIPPI, TO OAKLAND, CALIFORNIA, WHERE IT WAS DELIVERED ON OR BEFORE SEPTEMBER 25, 1952. YOUR COMPANY ORIGINALLY ASSESSED AND WAS PAID CHARGES ON THE BASIS OF A LOCAL MOVEMENT BETWEEN THE POINTS. IN THE AUDIT OF YOUR BILL OUR TRANSPORTATION DIVISION COMPUTED CHARGES ON A THROUGH TRANSIT BASIS FROM THE INITIAL POINT OF ORIGIN, MILWAUKEE, WISCONSIN, TO OAKLAND, VIA THE TRANSIT POINT, AND ISSUED A NOTICE OF OVERPAYMENT IN THE AMOUNT OF $298.66, WHICH YOU REFUNDED IN DECEMBER 1955. YOUR CLAIM IN THE AMOUNT OF $405.02 WAS RECEIVED HERE ON NOVEMBER 9, 1962, MORE THAN TEN YEARS AFTER THE DATE OF DELIVERY OF THE SHIPMENT IN SEPTEMBER 1952. THEREFORE, AS STATED IN THE SETTLEMENT CERTIFICATE, CLAIM FOR ANY AMOUNT IN EXCESS OF THE $298.66 REFUNDED IN DECEMBER 1955 IS BARRED BY THE PROVISIONS OF 31 U.S.C. 71A, IN ANY EVENT.

THE COMPUTATION OF CHARGES SHOWN ON YOUR SUPPLEMENTAL BILL IS BASED ON A THROUGH RATE OF 322 CENTS PER 100 POUNDS FROM MILWAUKEE, WISCONSIN, TO OAKLAND, CALIFORNIA, PLUS AN OUT-OF-LINE-HAUL CHARGE OF 14 CENTS PER 100 POUNDS, PLUS AN APPLICABLE 6 PERCENT INCREASE, LESS PAID-IN CHARGES AND LESS 3 CENTS PER 100 POUNDS PORT ALLOWANCE, APPLIED ON A CARLOAD MINIMUM WEIGHT FACTOR OF 30,000 POUNDS. OUR AUDIT ACTION WAS BASED ON A THROUGH RATE OF 316 CENTS AND A CARLOAD MINIMUM WEIGHT OF 20,000 POUNDS, LESS THE PORT ALLOWANCE. UPON REVIEW, WE AGREE THAT THE APPLICABLE THROUGH RATE IS 322 CENTS, AND YOU ARE ENTITLED TO CHARGES COMPUTED AT THAT RATE. HOWEVER, YOUR USE OF THE 30,000 POUND MINIMUM WEIGHT FACTOR APPARENTLY IS PREDICATED ON THE BELIEF, AS REFLECTED IN THE NOTATION TO THAT EFFECT ON YOUR SUPPLEMENTAL BILL, THAT A CAR 46 FEET, 9 INCHES IN LENGTH WAS ORDERED FOR THE INBOUND MOVEMENT. ACTUALLY, AS SHOWN ON THE INBOUND BILL OF LADING, COPY ENCLOSED, A 41 FOOT, 6 INCH CAR WAS ORDERED AND THE CAR OF THE LARGER SIZE WAS FURNISHED FOR THE CARRIER'S CONVENIENCE. ACCORDINGLY, CONSISTENT WITH THE TERMS OF SECTION 22 QUOTATION NO. 16 F, THE THROUGH CHARGES ARE PROPERLY COMPUTABLE AT A CARLOAD MINIMUM WEIGHT OF 20,000 POUNDS, APPLICABLE IN CONNECTION WITH THE SIZE OF CAR ORDERED FOR THE MOVEMENT FROM MILWAUKEE, WISCONSIN, TO PRAIRIE, MISSISSIPPI.

YOUR CLAIM ALSO INCLUDES A RATE OF 14 CENTS PER 100 POUNDS (PLUS 6 PERCENT) AS AN OUT-OF-LINE-HAUL CHARGE. IN THIS CONNECTION, WE FIND NOTHING IN QUOTATION 16-F, TFB WEST-BOUND EXPORT TARIFF NO. 29-I, OR ELSEWHERE, THAT RESTRICTS MOVEMENT OF THE SHIPMENT OVER THE ROUTE CMSTP GM AND O TO TRANSIT POINT, THENCE GM AND O-SP TO DESTINATION. IN THE ABSENCE OF THE ANY SUCH RESTRICTION ON THE APPLICATION OF THE THROUGH RATE VIA THE TRANSIT POINT, IT DOES NOT APPEAR THAT THE OUT-OF-LINE HAUL CHARGE IS PROPERLY ASSESSABLE.

ON THE BASIS OF THE FOREGOING IT APPEARS THAT YOU ARE ENTITLED TO PAYMENT AT A THROUGH RATE OF 322 CENTS PER 100 POUNDS APPLIED TO A CARLOAD MINIMUM WEIGHT OF 20,000 POUNDS, PLUS 6 PERCENT. SUCH BASIS ENTITLES YOU TO AN ADDITIONAL AMOUNT OF $13.37. THE SETTLEMENT OF MAY 24, 1963, IS REVISED TO THAT EXTENT. OUR TRANSPORTATION DIVISION WILL ISSUE A REVISED SETTLEMENT CERTIFICATE, AND YOU WILL RECEIVE PAYMENT OF THE ADDITIONAL AMOUNT IN DUE COURSE.