B-124656, OCT. 11, 1956

B-124656: Oct 11, 1956

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MOBILE AND OHIO RAILROAD COMPANY: REFERENCE IS MADE TO YOUR REQUEST. WERE PAID ON YOUR BILL NO. 52180. IN THE AUDIT OF THE PAYMENT VOUCHER OUR TRANSPORTATION DIVISION FOUND THAT THE ALLOWABLE CHARGES SHOULD HAVE BEEN $52.08. IS IN FACT A GYRO-STATIC COMPASS. THE BILL OF LADING INDICATES THAT THE SHIPMENT IS A MARK XIV. BY WHICH THE TRUE NORTH READING IS GYROSCOPICALLY DISCOVERED AND MAINTAINED. IT IS ALSO STATED IN THE INSTRUCTION BOOK THAT "THE COMPASS GYRO WHEEL IS DRIVEN BY A 3-PHASE INDUCTION MOTOR. ROTOR OF THE INDUCTION MOTOR IS A PART OF THE GYRO WHEEL. WHILE THE STATOR IS ATTACHED TO THE GYRO CASE. " AND THAT "THIS MOTOR IS ENERGIZED BY A 3-PHASE. IS APPARENT FROM THE ABOVE INFORMATION THAT THE MARK XIV CYRO-COMPASS IS COMPOSED OF NUMEROUS PARTS WHICH MUST BE OPERATED BY AN ELECTRIC CURRENT.

B-124656, OCT. 11, 1956

TO GULF, MOBILE AND OHIO RAILROAD COMPANY:

REFERENCE IS MADE TO YOUR REQUEST, UNDER FILE GOVT. 52180-CL 26, FOR REVIEW OF OUR SETTLEMENT CERTIFICATE DATED AUGUST 16, 1954, WHICH DISALLOWED YOUR CLAIM PER BILL NO. 52180-A FOR $51.90, ALLEGED TO BE THE BALANCE DUE ON YOUR BILL NO. 52180 IN CONNECTION WITH BILL OF LADING NO. N 850649. THAT BILL OF LADING COVERED A SHIPMENT DESCRIBED THEREON AS "12 BOXES ELECTRICAL SCIENTIFIC INSTRUMENTS, N.O.I.B.N., GYRO COMPASS AND PARTS," WEIGHING 2,646 POUNDS, TRANSPORTED FROM DETROIT, MICHIGAN, TO SLIDELL, LOUISIANA, ON MARCH 11, 1943.

FOR THIS SERVICE YOU CLAIMED ORIGINALLY, AND WERE PAID ON YOUR BILL NO. 52180, THE AMOUNT OF $103.98, COMPUTED ON THE BASIS OF A WEIGHT OF 2,646 POUNDS AT A DOUBLE FIRST-CLASS RATE OF $5.51 PER HUNDRED POUNDS, REDUCED TO $3.92968 BY DEDUCTIONS FOR LAND GRANT. IN THE AUDIT OF THE PAYMENT VOUCHER OUR TRANSPORTATION DIVISION FOUND THAT THE ALLOWABLE CHARGES SHOULD HAVE BEEN $52.08, COMPUTED ON THE BASIS OF A LESS-THAN CARLOAD FIRST-CLASS RATING NAMED IN ITEM 15895 OF CONSOLIDATED FREIGHT CLASSIFICATION NO. 15 FOR "ELECTRICAL APPLIANCES OR INSTRUMENTS, NOIBN.'

IN REQUESTING REVIEW OF THE MATTER YOU TAKE THE POSITION THAT THE SHIPMENT SHOULD BE RATED AS SCIENTIFIC INSTRUMENTS AND NOT AS ELECTRICAL INSTRUMENTS. YOU STATE THAT THE "GYRO COMPASS, IS IN FACT A GYRO-STATIC COMPASS," AND "IN NO SENSE CAN THIS ARTICLE BE CONSTRUED MERELY AS AN ELECTRICAL INSTRUMENT.'

THE BILL OF LADING INDICATES THAT THE SHIPMENT IS A MARK XIV, MOD. 1, GYRO-COMPASS EQUIPMENT FOR XN 91. THE INSTRUCTION BOOK FOR THIS PARTICULAR TYPE OF GYRO-COMPASS, PREPARED BY THE SPERRY GYROSCOPE COMPANY, INDICATES THAT IT CONSISTS OF THE FOLLOWING GROUPS OF UNITS: (A) MASTER COMPASS, BY WHICH THE TRUE NORTH READING IS GYROSCOPICALLY DISCOVERED AND MAINTAINED; (B) REPEATER COMPASSES, WHICH RECEIVE AND INDICATE THE TRUE HEADING TRANSMITTED ELECTRICALLY FROM THE MASTER COMPASS; (C) COURSE RECORDER, WHICH ALSO RECEIVES THE TRUE HEADING ELECTRICALLY FROM THE MASTER COMPASS, AND MAKES A CONTINUOUS RECORD OF THE HEADING ON A MOVING STRIP OF PAPER; (D) CONTROL PANEL, FOR GOVERNING THE ELECTRICAL OPERATION OF THE SYSTEM AND FOR ASCERTAINING THE RUNNING CONDITION BY MEANS OF A SUITABLE METER; (E) VOLTAGE REGULATOR, TO MAINTAIN CONSTANT THE SHIP'S SUPPLY TO THE MOTOR GENERATOR; (F) ALARM UNIT, FOR INDICATING FAILURE OF THE SHIP'S SUPPLY; (G) AMPLIFIER PANEL, FOR CONTROLLING THE FOLLOW-UP SYSTEM; AND (H) MOTOR-GENERATOR, WHICH CONVERTS THE SHIP'S D-C SUPPLY TO A -C FOR ENERGIZING THE COMPASS EQUIPMENT. IT IS ALSO STATED IN THE INSTRUCTION BOOK THAT "THE COMPASS GYRO WHEEL IS DRIVEN BY A 3-PHASE INDUCTION MOTOR; " THAT THE ,ROTOR OF THE INDUCTION MOTOR IS A PART OF THE GYRO WHEEL, WHILE THE STATOR IS ATTACHED TO THE GYRO CASE; " AND THAT "THIS MOTOR IS ENERGIZED BY A 3-PHASE, 210 CYCLE, 50 VOLT A-C SUPPLY.' IS APPARENT FROM THE ABOVE INFORMATION THAT THE MARK XIV CYRO-COMPASS IS COMPOSED OF NUMEROUS PARTS WHICH MUST BE OPERATED BY AN ELECTRIC CURRENT.

THE NAVY DEPARTMENT ADVISED OUR OFFICE IN AUGUST 1950, THAT ITS TRANSPORTATION DIVISION, BUREAU OF SUPPLIES AND ACCOUNTS, DETERMINED THAT THE PROPER CLASSIFICATION DESCRIPTION FOR GYRO-COMPASS WAS ELECTRICAL INSTRUMENTS NOIBN, AS DESCRIBED IN ITEM 15895 OF THE CONSOLIDATED FREIGHT CLASSIFICATION. THE DEPARTMENT REPORTED LATER TO AN INTERESTED CARRIER THAT A SPERRY GYRO-COMPASS IS ENERGIZED BY ELECTRICITY AND WITHOUT THIS FORCE WOULD BE INERT AND USELESS. IN THAT REPORT IT WAS STATED THAT THE ATCHISON, TOPEKA AND SANTA FE RAILWAY REQUESTED THE NAVY DEPARTMENT TO SETTLE THEIR ACCOUNT INVOLVING SHIPMENTS OF GYRO-COMPASSES, ON THE BASIS OF "ELECTRICAL INSTRUMENTS, I," AND THAT "THE SOUTHERN WEIGHING AND INSPECTION BUREAU TAKES THE POSITION THAT THIS SHIPMENT SHOULD BE RATED AS ELECTRICAL INSTRUMENTS, NOI, AS DESCRIBED IN ITEM NUMBER 15895 OF CONSOLIDATED FREIGHT CLASSIFICATION.'

IT IS FUNDAMENTAL THAT ARTICLES SHIPPED ARE TO BE CLASSIFIED ACCORDING TO THEIR ESSENTIAL CHARACTER AT THE TIME OF SHIPMENT. THE QUESTION OF THE ESSENTIAL CHARACTER OF THE PROPERTY SHIPPED IS ONE OF FACT PECULIARLY WITHIN THE KNOWLEDGE OF THE ADMINISTRATIVE OFFICE CONCERNED, WHOSE DETERMINATION IS CONTROLLING IN THE ABSENCE, AS HERE, OF COMPETENT EVIDENCE TO REFUTE THE CORRECTNESS OF THAT DETERMINATION, AS SUPPORTED BY THE POSITION OF THE SOUTHERN WEIGHING AND INSPECTION BUREAU. SEE 16 COMP. GEN. 325. SINCE THE CLASSIFICATION BASIS APPLIED IN THIS INSTANCE WAS CONSISTENT WITH THIS PRINCIPLE, IT IS SUSTAINED.

OUR TRANSPORTATION DIVISION HAS NOW DETERMINED THAT A LESS-THAN CARLOAD CLASS-70 RATING, NAMED IN ITEM 6970 OF CENTRAL FREIGHT ASSOCIATION TARIFF NO. 604, AGENT B. T. JONES' I.C.S. NO. 3635, PUBLISHING EXCEPTIONS TO THE SOUTHERN CLASSIFICATION, FOR "ELECTRICAL APPLIANCES OR INSTRUMENTS, NOIBN," PROVIDES THE PROPER BASIS FOR THE ALLOWABLE CHARGES. THE APPLICABLE RATE ON THIS BASIS IS $1.93 PER HUNDRED POUNDS, REDUCED BY LAND -GRANT DEDUCTIONS TO $1.37646 PER HUNDRED POUNDS, MAKING THE FREIGHT CHARGES ON THIS SHIPMENT $36.42. THIS RESULTS IN AN ADDITIONAL OVERPAYMENT OF $15.66, WHICH SHOULD BE REFUNDED WITHIN A REASONABLE TIME TO PRECLUDE ADJUSTMENT BY SETOFF IN THE ..END :