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B-197184 1 (1980-03-26)

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GAO
United $tatet Gen;eral Accounting Office
Y/ashington, DC 20548


Office of
General Counsel


In Reply
Refer o;


B-197184


Iarch 26, 1980


Yellow Preivht  System,
P0o. Bux  7270
10990 Roe Avenue
Shawnee MissLon,  Kansas3

     Attention;   JamesI


Inc.


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66207


D. Hestand


Overcharge  Claims Adjuster


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Gentlemen;

     We  refer again to your  letterof  December  11, 1979,
requesting  review of action  taken by the General  Services
Administration  (GSA), in collecting  by deduction,  $475.36 from
Yellow Freight  SytiteN, Inc, (Yellow), for overch&rges  that
were collected  by Draawell Motor  Freight Lines,  Inc., for the
transportation  of a shipment  of propellant nitrogen  tetroxide
from Vicksburg,  Mississippi,  to Van N1tys, California, under
Government  bill of lading  (GBL) K-5405056.

     The  GBL was issued on November  15, 1976,  and fraswell
filed a  petition for an arrangement  under the Federal  Bank-
ruptcy Act  on Decembur 2,  1976.  Their Notice of  Overcharge
was bent  by GSA to Yellow pn  the theory that Yellow  was
managing  Braswell's operations.

     GSA's  report indicates  that the Administration  now agrees
that since  the shipmen'rt was transported prior to the filing
date of  the petition, Yellow  is not liable for  the overcharge,
and  the deduction from monies  due Yellow was improper.   There-
fore,  it would appear that  if the claim is otherwise  proper,
the amount  claimed will be  allowed.  For these reasons  your
request  for review by the Comptroller  General Is  dismissed as
moot.

                                   Sincerely yours,


L. Mitchell  Dick
Assistant  General Counsel


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