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B-179620 1 (1973-10-30)

handle is hein.gao/gaobabkiu0001 and id is 1 raw text is: Accoung --o oe released OUtside the general Acco~n~~ Offie te on jNe b~asis of specific apprval 0 by the Of3ce of Congressional ReatEOns, a record of which is kW.y 4ky the Distribution Section, Puibicaion Branch, GAS COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, 0.C. 20548 UNIT B-179620 RELEASED OCT 3 0 1973 The Honorable Clement J. Zablocki &(A House of Representatives Dear Mr. Zablocki: As requested in your August 30, 1973, letter, we looked into the diversion of Department of Agriculture cargo from 4'2- -Grj k soy .nhe~p~ot.oO s This cargo, transported on river barges between Chicago and New Orleans, was handled by a U.S. flag carrier, Lykes Brothers Steamship Company, Incorporated. \ :?,/1 Department officials advised us that the cargo in ques- tion (bagged Sonm1 aJand -orn--soya ,mik)_w.as shipped to Africapts under title II of yublic Law 480 at the request offhe Agency.l fo r. I nt ernat iolnal.l Development (AID). These of- ficials stated that AID's policy is to maximize the use of U.S. flag carriers in moving such cargo. They said that, in recent years, few U.S. carriers have come into the Great Lakes and that, during the last 2 years, all Public Law 480 cargo had moved from the Great Lakes on foreign flag carriers. Agriculture officials emphasized that these barge ship- ments are a pilot project subject to evaluation by both Lykes and the Government. Z3 .2- The director of the Port of Milwaukee raised several questions regarding the shipments. He stated that transpor- tation costs will be increased by about $60,000, and he ques- tioned the legality of the Ly,4, oBfEf under which the shipments were made. He said that the barge-ocean shipments may be considered intermodal and, as such, could be subject to Interstate Commerce Commission jurisdiction. He questioned whether Lykes may be absorbing a portion of the costs of mov- ing the cargo by barge between Chicago and New Orleans. Agriculture officials agreed that the estimated increased cost is substantially correct, but they stated that the pay- ment of higher rates is often required to comply with the Cargo Preference Act. The act requires that at least 50 per- cent of Government-sponsored cargo be transported on U.S. flag, privately owned vessels.

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