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TO ILLINOIS CENTRAL RAILROAD COMPANY: REFERENCE IS MADE TO YOUR REQUEST FOR REVIEW OF THE SETTLEMENT OF AUGUST 31. IN WHICH HE REQUESTED THE RETURN OF THESE BILLS OF LADING AND STATED THAT IT HAD BEEN FOUND THAT THESE SHIPMENTS SHOULD HAVE MOVED ON PREPAID COMMERCIAL BILLS OF LADING. THAT LAND GRANT WAS NOT PROPERLY DEDUCTIBLE FROM THE COMMERCIAL CHARGES. WAS FORWARDED TO THE BUREAU OF SUPPLIES AND ACCOUNTS. PROVIDE THAT THE TIRES AND TUBES ON THESE ORDERS WILL BE SHIPPED ON GOVERNMENT BILLS OF LADING. THAT THE SUPPLIER WILL ALLOW THE GOVERNMENT "FULL CREDIT FOR COMMERCIAL FREIGHT FROM POINT OF SHIPMENT TO NEW ORLEANS. THE SHIPMENTS WERE MADE ON THAT DATE. THE REPORT ALSO SHOWS THAT "TITLE TO THE SHIPPED MATERIAL WAS ACCEPTED FOR THE GOVERNMENT BY THE RESIDENT OFFICER IN CHARGE AND SHIPPED BY HIM TO NEW ORLEANS FOR EXPORT.'.

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B-122844, SEPT. 19, 1956

TO ILLINOIS CENTRAL RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR REQUEST FOR REVIEW OF THE SETTLEMENT OF AUGUST 31, 1954 (CLAIM NO. TK-297507), WHICH DISALLOWED YOUR CLAIM, PER BILL N- 2712-A, FOR $174.82 AS A PART OF THE CHARGES ALLEGED TO BE DUE FOR TRANSPORTING THREE SHIPMENTS OF RUBBER TIRES AND TUBES FROM THE RESIDENT OFFICER IN CHARGE, U.S. NAVY CONTRACT NOY-3680, AKRON, OHIO, TO THE RESIDENT OFFICER IN CHARGE, CONTRACT NOY-3680, NEW ORLEANS, LOUISIANA, FOR EXPORT, ON BILLS OF LADING NOS. N-877674, N-877675, AND N-877676, DATED JANUARY 19, 1943. THE AMOUNT DISALLOWED REPRESENTS THE LAND GRANT DEDUCTED FROM THE COMMERCIAL CHARGES ON THESE SHIPMENTS.

YOU NOW REQUEST REVIEW OF THIS DISALLOWANCE AND FURNISH A COPY OF A LETTER DATED MAY 3, 1943, FROM LIEUTENANT M. L. JOHNSTON, U.S.N.R., IN WHICH HE REQUESTED THE RETURN OF THESE BILLS OF LADING AND STATED THAT IT HAD BEEN FOUND THAT THESE SHIPMENTS SHOULD HAVE MOVED ON PREPAID COMMERCIAL BILLS OF LADING. YOU TAKE THE POSITION THAT THIS LETTER CONCLUSIVELY SHOWS THAT "TITLE TO THE PROPERTY DID NOT PASS TO THE GOVERNMENT UNTIL ACCEPTED AT NEW ORLEANS, LOUISIANA.' CONSEQUENTLY, THAT LAND GRANT WAS NOT PROPERLY DEDUCTIBLE FROM THE COMMERCIAL CHARGES.

A COPY OF THE LETTER OF MAY 3, 1943, RELIED UPON BY YOU, WAS FORWARDED TO THE BUREAU OF SUPPLIES AND ACCOUNTS, DEPARTMENT OF THE NAVY, FOR A REPORT ON THIS MATTER. IN RESPONSE, THAT BUREAU TRANSMITTED HERE A REPORT FROM THE BUREAU OF YARDS AND DOCKS, DEPARTMENT OF THE NAVY, DATED MAY 10, 1956, TOGETHER WITH COPIES OF THE PURCHASE ORDERS (NOS. B-9273 AND EH-4652) FOR THESE TIRES AND CHANGE ORDERS THERETO; ALSO, THE ACKNOWLEDGMENT COPY OF THE B. F. GOODRICH COMPANY, INTERNATIONAL DIVISION, ORDER NO. 12-7376-A, EXPORT. CHANGE ORDER NO. 3 TO ORDER NO. B-9273, AND CHANGE ORDER NO. 1 TO ORDER NO. EH-4652, BOTH DATED JANUARY 15, 1943, PROVIDE THAT THE TIRES AND TUBES ON THESE ORDERS WILL BE SHIPPED ON GOVERNMENT BILLS OF LADING, AND THAT THE SUPPLIER WILL ALLOW THE GOVERNMENT "FULL CREDIT FOR COMMERCIAL FREIGHT FROM POINT OF SHIPMENT TO NEW ORLEANS, LA.' THE SUPPLIER'S ORDER NO. 12-7376-A, EXPORT, CLEARLY SHOWS THE TERMS OF THE ORDER AS "FOB AKRON," AND THE EXPECTED DATE OF SHIPMENT AS JANUARY 19, 1943. THE SHIPMENTS WERE MADE ON THAT DATE. THE REPORT ALSO SHOWS THAT "TITLE TO THE SHIPPED MATERIAL WAS ACCEPTED FOR THE GOVERNMENT BY THE RESIDENT OFFICER IN CHARGE AND SHIPPED BY HIM TO NEW ORLEANS FOR EXPORT.' THIS STATEMENT IS SUPPORTED BY THE GOVERNMENT BILLS OF LADING WHICH SHOW THE "F.O.B. POINT NAMED IN CONTRACT" TO BE AKRON, OHIO.

ACCORDINGLY, ON THE BASIS OF THE PRESENT RECORD, THE DISALLOWANCE OF YOUR CLAIM IS SUSTAINED.

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