A-24222, JUL. 27, 1959

A-24222, JUL. 27, 1959

TO THE HONORABLE SUMNER G. WHITTIER, ADMINISTRATOR, VETERANS ADMINISTRATION:

IN LETTER DATED DECEMBER 18, 1958, FILE 134D3, FROM THE DIRECTOR, SUPPLY SERVICE OF YOUR DEPARTMENT OF MEDICINE AND SURGERY, TO THE DIRECTOR OF OUR TRANSPORTATION DIVISION, AUTHORITY IS REQUESTED TO USE ON GOVERNMENT BILLS OF LADING IN DESCRIBING VARIOUS ARTICLES SHIPPED FROM YOUR WAREHOUSES THE GENERAL COMMODITY DESCRIPTION "FREIGHT, ALL KINDS" ("FAK") WHERE TARIFF OR QUOTATION RATES ARE AVAILABLE FOR SHIPMENTS SO CLASSIFIED. PARAGRAPH 6 OF THE ADMINISTRATIVE DIRECTIONS ON THE REVERSE OF THE BILL OF LADING PROVIDES THAT BILLS OF LADING DESIGNATE THE ARTICLES SHIPPED BY THE CARRIER'S CLASSIFICATION OR TARIFF DESCRIPTION, IF POSSIBLE, OTHERWISE THAT A CLEAR NONTECHNICAL DESCRIPTION BE USED TO WHICH MAY BE ADDED THE DEPARTMENTAL NOMENCLATURE, IF DESIRED. IT ALSO REQUIRES THAT THERE BE STATED "SEPARATELY SUCH WEIGHTS, DIMENSIONS, AND MANNER OF PACKING AS MAY BE NECESSARY TO ASCERTAIN CLASSIFICATIONS AND RATES AND TO ENABLE RECOVERY IN CASE OF LOSS OR DAMAGE.'

THE QUESTION OF THE CONSOLIDATION OF ITEMS ORDINARILY STOCKED AND SHIPPED FROM YOUR SUPPLY DEPOTS UNDER THE GENERAL HEADING OF "FOODSTUFFS, CANNED, PRESERVED OR PREPARED" AND OF OTHER ARTICLES UNDER THE GENERAL HEADING OF "FREIGHT, ALL KINDS" ("FAK") WAS CONSIDERED AT A CONFERENCE ON APRIL 24, 1957, ATTENDED BY MR. HOWARD E. PROPST OF THE CENTRAL OFFICE, TRAFFIC SECTION, OF YOUR ADMINISTRATION, AND MEMBERS OF OUR TRANSPORTATION DIVISION. AT THAT TIME, IT APPEARED SHIPMENT OF FOODSTUFFS UNDER A GENERAL HEADING WAS OF PRIMARY INTEREST; HOWEVER, IF THE PROPOSAL TO CONSOLIDATE FOODSTUFFS UNDER A GENERAL HEADING WERE APPROVED AND ITS USE PROVED ADVANTAGEOUS TO YOUR ADMINISTRATION, IT WAS INDICATED CONSIDERATION WOULD BE GIVEN AT A LATER DATE, TO THE CONSOLIDATION OF THE OTHER ITEMS SHIPPED UNDER A SIMILAR GENERAL DESCRIPTION. THAT CONFERENCE WAS FOLLOWED BY A LETTER DATED MAY 2, 1957, FROM THE DIRECTOR, SUPPLY SERVICE, DEPARTMENT OF MEDICINE AND SURGERY-OPERATIONS, TO THE DIRECTOR OF OUR TRANSPORTATION DIVISION, RELATIVE TO THE CONSOLIDATION OF THE DESCRIPTION OF FOODSTUFFS SHIPPED. IN JUSTIFICATION OF SUCH CONSOLIDATION IT WAS STATED:

"IN ALMOST EVERY INSTANCE, MOTOR AS WELL AS RAIL, COMMODITY LISTS ARE PUBLISHED COVERING GROUPS OF SUCH ITEMS AS "FOODSTUFFS, CANNED, PRESERVED, OR PREPARED.' THE APPLICATION OF THESE LISTS IS WIDE SPREAD. OUR PLAN IS TO CONSOLIDATE THE VARIOUS ITEMS WE SHIP IN ACCORDANCE WITH THE COMMODITY LISTS AND SHOW ONE LINE ON THE BILL OF LADING TO COVER THIS CONSOLIDATION. THE DESCRIPTION ON THE BILL OF LADING WOULD APPEAR AS "FOODSTUFFS, CANNED OR PRESERVED AS DESCRIBED IN LIST NO. ------, TARIFF NO. ------, COMMISSION NO. ------.' THOSE ITEMS IN THE SHIPMENT NOT INCLUDED IN THE LIST WILL BE SHOWN SEPARATELY ON THE BILL OF LADING PROPERLY DESCRIBED IN CLASSIFICATION TERMS. USING THE LIST WOULD NOT BE DEVIATING FROM PROPER DESCRIPTIONS IN THAT THE CHARGES WOULD BE BASED ON THE COMMODITY LIST TO WHICH REFERENCE WAS MADE.

"WE ARE NOW USING THE EXACT CLASSIFICATION DESCRIPTION FOR EACH COMMODITY, REQUIRING APPROXIMATELY 100 ENTRIES PER BILL OF LADING. USING THE PROPOSED PROCEDURE, THE SUBSISTENCE PORTION OF THE BILL OF LADING COULD BE REDUCED TO TWENTY-FIVE ENTRIES, RESULTING IN CONSIDERABLE SAVINGS IN TYPING TIME. FURTHER BENEFITS WOULD RESULT WHEN THE BILL OF LADING WAS RATED BY THE VETERANS ADMINISTRATION, THE CARRIER AND GENERAL ACCOUNTING OFFICE. ADDITIONAL SAVINGS WOULD RESULT IN USING LESS CONTINUATION SHEETS AND A LESSER AMOUNT OF FILING SPACE FOR THESE EXTRA SHEETS.

"AT OUR DEPOTS, THERE ARE QUALIFIED TRAFFIC MEN AND THE SYSTEM WOULD BE OPERATED UNDER THEIR CONTROL. THE PROCEDURE WOULD BE POLICED BY CENTRAL OFFICE PERIODICALLY TO INSURE STRICT COMPLIANCE WITH TARIFF PROVISIONS. CHANGES WOULD BE MADE IN OUR LISTS AS TARIFF SUPPLEMENTS OR REISSUES BECAME EFFECTIVE.'

THAT PROCEDURE WAS APPROVED IN A LETTER DATED JUNE 13, 1957, FROM OUR TRANSPORTATION DIVISION, TO THE DIRECTOR, SUPPLY SERVICE, DEPARTMENT OF MEDICINE AND SURGERY, OF YOUR ADMINISTRATION, ON CONDITION THAT "SHOULD THE NEED ARISE TO SUBSEQUENTLY IDENTIFY THE CONSIST OF A PARTICULAR SHIPMENT, E.G., IN CASES OF CLAIMS FOR LOSS AND/OR DAMAGE TO SHIPMENTS, ADEQUATE INFORMATION WOULD BE AVAILABLE TO US FROM THE RELATED VETERANS ADMINISTRATION SHIPPING DOCUMENTS.'

YOUR PRESENT REQUEST IS FOR AN EXTENSION OF THE PERMISSION PREVIOUSLY GIVEN SO AS TO INCLUDE COMMODITIES COMING UNDER THE COMMODITY DESCRIPTIONS "FREIGHT, ALL KINDS" ("FAK"). THE RECORD PRESENTED SHOWS THAT THE SUPPLY DEPOT ON ROYCE, NEW JERSEY, HAS RECEIVED SECTION 22 QUOTATIONS FROM VARIOUS CARRIERS WHICH LIST THE ITEMS SHIPPED BY THAT DEPOT IN TWO CATEGORIES AS FOLLOWS:

"A. FREIGHT, ALL KINDS, EXCEPT COMMODITIES COVERED IN DESCRIPTION B

"B. FOODSTUFFS AS STOCKED BY THE VETERANS ADMINISTRATION; EXCEPT FRESH MEATS AND PERISHABLES.'

THE LETTER DATED MAY 5, 1958, IN THE RECORD, FROM THE MANAGER, OF THE SUPPLY DEPOT, AT ROYCE, NEW JERSEY, INDICATES THAT THOSE ITEMS SHIPPED BY THAT DEPOT WHICH CAN MOVE CHEAPER AT TARIFF RATES, THAN UNDER THE ABOVE DESCRIPTIONS, WILL BE ITEMIZED SEPARATELY WITH PROVISION FOR THE APPLICATION OF THE LOWER RATES.

CONSIDERING THE JUSTIFICATION FOR THE PROPOSAL WHICH IS SUBSTANTIALLY SIMILAR TO THAT PRESENTED IN CONNECTION WITH THE FOODSTUFF LISTS, AND THE ASSURANCE THAT THE PROPOSED PROCEDURE WOULD BE UNDER THE CONTROL OF QUALIFIED TRAFFIC PERSONNEL AT THE DEPOTS AND WOULD BE POLICED PERIODICALLY BY REPRESENTATIVES OF YOUR CENTRAL OFFICE, AND THAT ADEQUATE INFORMATION AS TO THE ACTUAL CONSIST OF A SHIPMENT WILL BE MADE AVAILABLE TO OUR OFFICE IF NEEDED, AS FOR EXAMPLE, IN CASES OF CLAIMS ARISING FROM LOSS AND/OR DAMAGE, YOUR PROPOSAL IS APPROVED.