B-154473, DEC. 1, 1964

B-154473, DEC. 1, 1964

TO UNION PACIFIC RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR RECENT LETTER, FILE GW-295599, REQUESTING REVIEW OF OUR SETTLEMENT DATED MARCH 20, 1964, WHICH DISALLOWED YOUR CLAIM FOR $277.44, PER SUPPLEMENTAL BILL W-295599-A, REPRESENTING ADDITIONAL CHARGES FOR THE TRANSPORTATION OF A SHIPMENT OF RUBBER TIRES WHICH MOVED IN TWO CARS FROM DETROIT, MICHIGAN, TO HILL AIR FORCE BASE, UTAH, UNDER GOVERNMENT BILL OF LADING NO. B-2880584, DATED MAY 31, 1962.

FOR THE SERVICES PERFORMED, YOU ORIGINALLY CLAIMED AND WERE PAID TRANSPORTATION CHARGES OF $1,664.64 FOR THE TWO CARS INVOLVED, COMPUTED ON THE CLASS 37 1/2 RATE OF $2.89 PER 100 POUNDS, PROVIDED IN ITEM 84460 OF UNIFORM FREIGHT CLASSIFICATION NO. 6 AND TRANS CONTINENTAL FREIGHT BUREAU AND WESTERN TRUNK LINES' TARIFF NO. 1014, I.C.C. NO. 1578, RESPECTIVELY. ITEM 84460 OF THAT CLASSIFICATION PROVIDES A MINIMUM WEIGHT FOR A CARLOAD SHIPMENT OF RUBBER TIRES OF 24,000 POUNDS, SUBJECT TO A GRADUATED SCALE OF MINIMUM WEIGHTS PROVIDED IN RULE 34 OF THE FREIGHT CLASSIFICATION. FOR THE SHIPMENT IN CAR PRR 604491, A 50-FOOT 6-INCH BOXCAR, THE ACTUAL WEIGHT OF 25,190 POUNDS WAS RAISED TO THE MINIMUM WEIGHT OF 33,600 POUNDS, AS PROVIDED IN RULE 34 OF THE CLASSIFICATION FOR A CAR OF THIS DIMENSION, AND FOR CAR NYC 169324, A 40-FOOT 6-INCH BOXCAR, THE ACTUAL WEIGHT OF 15,200 POUNDS WAS RAISED TO THE REQUIRED MINIMUM OF 24,000 POUNDS.

IN OUR AUDIT OF THE PAYMENT VOUCHER WE COMPUTED THE CHARGES FOR BOTH CARS AT THE CLASS 37 1/2 RATE OF $2.89 PER 100 POUNDS, BUT ON THE MINIMUM WEIGHT OF 24,000 POUNDS FOR EACH CAR, AS THOUGH BOTH WERE 40 FOOT CARS. THE OFFICIAL RAILWAY EQUIPMENT REGISTER IN EFFECT MAY 1962, HOWEVER, SHOWS CAR PRR 604491 TO BE A 50-FOOT 6-INCH CAR. ON THE BASIS OF THE MINIMUM WEIGHT USED BY US, WE DETERMINED THAT AN OVERCHARGE IN THE AMOUNT OF $277.44 EXISTED ON THIS CAR, AND BY FORM 1003, DATED MARCH 26, 1963, YOU WERE REQUESTED TO REMIT THE AMOUNT OF THE OVERCHARGE. UPON YOUR REFUSAL TO REFUND, THE AMOUNT OF THIS OVERCHARGE WAS DEDUCTED FROM AN AMOUNT OTHERWISE DUE YOU FOR UNRELATED SERVICES, PURSUANT TO 49 U.S.C. 66. THEREAFTER, YOU SUBMITTED YOUR SUPPLEMENTAL BILL NO. W-295599-A TO RECLAIM THE AMOUNT OF THE DEDUCTION.

YOUR CLAIM WAS DISALLOWED BY OUR SETTLEMENT DATED MARCH 20, 1964, WITH THE EXPLANATION THAT PARAGRAPH 9/B) OF ASSOCIATION OF AMERICAN RAILROADS' LETTER OF DECEMBER 1, 1949, MUST BE COMPLIED WITH BEFORE THE CLAIM COULD BE CONSIDERED.

IN REQUESTING REVIEW OF THE MATTER, YOU URGE THAT PARAGRAPH 9/B) OF ASSOCIATION OF AMERICAN RAILROADS' LETTER HAS NO APPLICATION TO THIS CASE BECAUSE YOUR SUPPLEMENTAL BILL WAS TO RECLAIM AN AMOUNT WHICH HAD BEEN DEDUCTED BY THE GOVERNMENT, AND WAS NOT ISSUED FOR AN UNDERCHARGE DISCOVERED SUBSEQUENT TO THE RENDITION OF YOUR ORIGINAL BILL.

THE ENTIRE RECORD HAS BEEN REEXAMINED AND WE CONCUR WITH YOUR POSITION AS TO THE PARAGRAPH 9/B) IN QUESTION ON THE ISSUE. WE ALSO AGREE WITH YOUR COMPUTATION OF THE CHARGES ON THE SHIPMENT MOVING IN CAR NYC 169324. HOWEVER, AS TO CAR PRR 604491, WE FIND YOU ARE DUE $235.91 OF THE $277.44 CLAIMED. THE DIFFERENCE OF $41.53 IS OCCASIONED BY OUR USE OF THE ALTERNATIVE APPLICATION OF MAXIMUM COMMODITY RATES AUTHORIZED IN ITEM 350 OF TRANS-CONTINENTAL FREIGHT BUREAU AND WESTERN TRUNK LINES' FREIGHT TARIFF 1014, I.C.C. 1578. ON THIS BASIS WE HAVE USED A COMMODITY RATE OF $3.69 PER 100 POUNDS ON THE ACTUAL WEIGHT OF 25,190 POUNDS, RATHER THAN THE CLASS RATE OF $2.89 PER 100 POUNDS ON THE MINIMUM WEIGHT OF 33,600 POUNDS CLAIMED. THE CHARGES WILL BE RECOMPUTED BY OUR TRANSPORTATION DIVISION AND A SETTLEMENT WILL ISSUE IN YOUR FAVOR ON THIS BASIS IN DUE COURSE, IF CORRECT IN OTHER RESPECTS.