B-142540, JUL. 18, 1960

B-142540, JUL. 18, 1960

TO THE CENTRAL OF GEORGIA RAILWAY COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTERS OF APRIL 6, 1960, FILE NOS. N- 64385-G-A, AND N-64555-G-A, IN WHICH YOU REQUEST A REVIEW OF OUR SETTLEMENT CERTIFICATES OF NOVEMBER 2 AND 5, 1960 (CLAIM NOS. TK 668138 AND TK-668137), DISALLOWING YOUR CLAIMS FOR ADDITIONAL CHARGES ALLEGEDLY DUE UNDER SUPPLEMENTAL BILL NOS. N-64385-B-G-R-1946 AND N 64555-A-G-R- 1945.

THE RECORD SHOWS THAT SHIPMENTS OF "PROJECTILE PARTS, NOIBN, METAL O/T IRON OR STEEL" WERE MOVED UNDER GOVERNMENT BILLS OF LADING FROM NEW TORONTO, ONTARIO, CANADA, TO SYLACAUGA, ALABAMA, DURING NOVEMBER AND DECEMBER 1953. THE RECORD SHOWS ALSO THAT YOU ORIGINALLY CLAIMED AND WERE PAID FREIGHT CHARGES FOR EACH SHIPMENT ON THE BASIS OF A RATE OF $2.48 PER 100 POUNDS, PLUS A 15 PERCENT INCREASE (X-175). THE $2.48 RATE WAS BASED ON A COMBINATION OF CLASS 55 RATE OF 77 CENTS TO PORT HURON, MICHIGAN, AND A $1.71 RATE FROM PORT HURON, MICHIGAN, TO DESTINATION, IN ACCORDANCE WITH CENTRAL FREIGHT ASSOCIATION TARIFF BUREAU TARIFF NOS. 260-D, I.C.C.NO. 3814, AND 450-F, I.C.C.NO. 3636. IN OUR AUDIT OF THE PAYMENT VOUCHERS, COVERING THE BILLS OF LADING HERE INVOLVED, IT WAS DETERMINED THAT THE APPLICABLE CHARGES SHOULD BE COMPUTED ON THE BASIS OF THE CLASS 55 RATE OF 77 CENTS TO PORT HURON, MICHIGAN (THE SAME RATE TO THAT POINT AS CLAIMED) PLUS THE RATE OF $1.33 PER 100 POUNDS TO DESTINATION AS AUTHORIZED UNDER SOUTHERN FREIGHT ASSOCIATION SECTION 22 QUOTATION NO. A-524 AND THE 15 PERCENT INCREASE (X-175). THE APPLICATION OF THE FOREGOING RATE BASES RESULTED IN AN OVERPAYMENT OF $1,764.70 FOR WHICH NOTICES OF OVERPAYMENT (USGAO FORMS 1003) WERE ISSUED AND UPON YOUR FAILURE TO REFUND THE OVERPAYMENTS, THEY WERE COLLECTED BY ADMINISTRATIVE DEDUCTION.

YOU NOW CONTEND THAT THE SOUTHERN FREIGHT ASSOCIATION SECTION 22 QUOTATION A-524, APPLIES TO TRAFFIC NAMED IN THE QUOTATION; IS SPECIFIC IN APPLICATION TO THE TERRITORIES NAMED THEREIN; AND GIVES NO RIGHT TO THE CARRIER OR THE SHIPPER TO ADD OR DETRACT FROM ITS RIGID APPLICATION. SUPPORT OF YOUR CONTENTION YOU CITE OUR DECISION OF OCTOBER 9, 1951, B- 98076, WHICH HELD THAT THE CERTAIN SECTION 22 QUOTATIONS THERE INVOLVED WERE INAPPLICABLE IN THE CONSTRUCTION OF COMBINATION THROUGH RATES TO DEFEAT A THROUGH TARIFF RATE APPLYING FROM THE POINT OF ORIGIN TO THE POINT OF DESTINATION BECAUSE THE PARTICULAR QUOTATIONS NAMED "SPECIFIC RATES FOR APPLICATION ON DESCRIBED TRAFFIC FROM DEFINITELY NAMED POINTS TO DEFINITELY NAMED POINTS, THE ROUTE OR DISTANCE BETWEEN WHICH CONSTITUTES ONLY A PART OF THE THROUGH ROUTES OR DISTANCES TRAVERSED BY THE SHIPMENTS INVOLVED.'

ITEM 1 OF QUOTATION A-524 PROVIDES, IN SUBSTANCE, THAT THE PARTICIPATING CARRIERS OFFER TO HAUL, AT THE REDUCED RATES SPECIFIED THEREIN, CERTAIN GOVERNMENT PROPERTY, ALL-RAIL, BETWEEN STATIONS IN TRUNK LINE, NEW ENGLAND, CENTRAL AND ILLINOIS FREIGHT ASSOCIATION TERRITORIES, ON THE ONE HAND, AND STATIONS IN SOUTHERN FREIGHT ASSOCIATION TERRITORY, ON THE OTHER, BETWEEN WHICH CLASS AND/OR COMMODITY RATES ARE PUBLISHED IN CENTRAL TERRITORY RAILROADS TARIFF BUREAU FREIGHT TARIFF NO. 450-F. THUS SECTION 22 QUOTATION A-524 PROVIDES FOR THE APPLICATION OF THE REDUCED RATES ONCERTAIN SPECIFIED COMMODITIES BETWEEN STATIONS IN NAMED TERRITORIES FOR WHICH CLASS AND/OR COMMODITY RATES ARE PUBLISHED. MOREOVER, THERE IS NO PROVISION IN THE QUOTATION WHICH EXPRESSLY OR IMPLIEDLY PRECLUDES ITS APPLICATION IN THE CONSTRUCTION OF THROUGH RATES FOR SHIPMENTS ORIGINATING IN CANADA. AS YOU KNOW, THERE IS NO ESTABLISHED JOINT THROUGH RATE BETWEEN NEW TORONTO, ONTARIO, CANADA, AND SYLACAUGA, ALABAMA. THEREFORE, A THROUGH RATE, UTILIZING TWO FACTORS, MUST BE ESTABLISHED BY USING A COMBINATION OF LOCAL RATES OVER PORT HURON, MICHIGAN. THE RATE OF 77 CENTS FROM POINT OF ORIGIN TO PORT HURON IS CORRECT AND IS PUBLISHED IN CENTRAL FREIGHT ASSOCIATION TARIFF NO. 260 D. IT SEEMS THAT THERE SHOULD BE NO VALID OBJECTION TO THE USE OF THE QUOTATION RATE AS THE SECOND FACTOR OF THE COMBINATION, SINCE THE STATIONS BETWEEN WHICH SUCH RATE WAS USED ARE LOCATED WITHIN THE TERRITORIES NAMED IN THE QUOTATION AND A CLASS RATE IS PUBLISHED IN CENTRAL FREIGHT ASSOCIATION TARIFF NO. 450-F.

ACCORDINGLY, THE SETTLEMENTS OF NOVEMBER 2 AND 5, 1960, APPEAR PROPER AND ARE SUSTAINED.