B-136507, JUL. 17, 1959

B-136507, JUL. 17, 1959

TO THE UNIVERSAL CARLOADING AND DISTRIBUTING CO., INC.:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF APRIL 16, 1959, REQUESTING REVIEW OF THE SETTLEMENT (IN CLAIM NO. TK 622620), DATED MARCH 17, 1959, WHICH DISALLOWED YOUR CLAIM FOR REFUND OF $1,898.53, REPRESENTING AN AMOUNT ADMINISTRATIVELY DEDUCTED TO REIMBURSE THE GOVERNMENT FOR THE DAMAGE SUFFERED BY A SHIPMENT OF 100 SHEET STEEL CLOTHES CHECKING LOCKERS, S.U., WHILE IN TRANSIT FROM THE PLANT OF FEDERAL PRISON INDUSTRIES, INC., LEWISBURG, PENNSYLVANIA, TO THE FEDERAL SUPPLY CENTER, GENERAL SERVICES ADMINISTRATION WAREHOUSE, LOS ANGELES, CALIFORNIA, UNDER GOVERNMENT BILL OF LADING NO. GS-73629, DATED FEBRUARY 12, 1953.

THE AMOUNT OF YOUR CLAIM REPRESENTS THE TRANSPORTATION CHARGES OF $803.53 APPLICABLE TO THE SAID SHIPMENT, PLUS THE CONTRACT VALUE OF THE LOCKERS, AMOUNTING TO $1,595, MINUS THE AMOUNT OF $500 RECEIVED BY YOU IN SALVAGING THE ITEMS AFTER THEIR DELIVERY TO, AND REJECTION BY, THE CONSIGNEE--- THE GENERAL SERVICES ADMINISTRATION.

OUR RECORDS SHOW THAT THE LOCKERS WERE PICKED UP AT ORIGIN BY YOUR AGENT, HALL'S MOTOR TRANSIT COMPANY, ON FEBRUARY 12, 1953, AND THAT THE CONSIGNMENT ARRIVED AT DESTINATION ON FEBRUARY 27 AND MARCH 3, 1953. UPON INSPECTION OF 71 OF THE UNITS, CONDUCTED ON MARCH 5, 1953, IT WAS FOUND THAT EACH OF THE UNITS WAS SEVERELY DAMAGED, THE DAMAGE CONSISTING PRINCIPALLY OF "PAINT RUBS," DENTED AND GOUGED PANELS, ETC., WHEREUPON THE ENTIRE SHIPMENT WAS REJECTED BY THE CONSIGNEE, AND THEN TURNED OVER TO THE CARRIER FOR SALVAGE.

BASICALLY, IT IS YOUR CONTENTION THAT THE LOCKERS WERE NOT PACKED IN ACCORDANCE WITH CLASSIFICATION REQUIREMENTS. YOUR REQUEST FOR REFUND IS APPARENTLY PREDICATED ON THE GROUND THAT FAILURE TO PACK IN COMPLIANCE WITH THE REQUIREMENTS OF THE RAILROAD FREIGHT CLASSIFICATION CONSTITUTES A FAULT OF THE SHIPPER, AND RELIEVES THE CARRIER FROM LIABILITY FOR DAMAGE.

IT IS NOTED THAT YOUR BILL NO. G-210661 WAS FOR FREIGHT CHARGES OF $803.53, APPARENTLY BASED ON A FIRST CLASS RATE OF $8.83 PER 100 POUNDS. BY A REQUEST FOR REFUND FROM NO. 1003, DATED OCTOBER 31, 1956, YOU WERE ADVISED THAT THE PROPER FREIGHT CHARGES WERE DETERMINED TO BE $631.04, BASED ON A RATE OF $6.03 PER 100 POUNDS, PLUS THE EX PARTE NO. 175 INCREASE OF 15 PERCENT. THE $6.03 RATE IS NAMED IN ITEM 5580 OF TRANS- CONTINENTAL FREIGHT BUREAU FREIGHT TARIFF NO. 1-B, I.C.C. NO. 1551. THE USE OF ALL-RAIL FREIGHT RATES OR CHARGES, WHEN LOWER THAN FREIGHT FORWARDER PUBLISHED RATES, IS AUTHORIZED BY YOUR FREIGHT FORWARDER FREIGHT -RATE EQUALIZATION AGREEMENT DATED MARCH 28, 1949, FILED WITH THE BUREAU OF FEDERAL SUPPLY, U.S. TREASURY DEPARTMENT.

ITEM 5580 NAMES A LESS CARLOAD COMMODITY RATE ON--- AMONG OTHER ARTICLES- -- "LOCKERS, PARCEL OR CLOTHES CHECKING, SHEET STEEL OR WIRE MESH, SEPARATE OR COMBINED, IN CRATES OR K.D. FLAT IN BUNDLES.' IN THIS CONNECTION, IT MAY BE STATED THAT WHILE THE BILL OF LADING DESCRIPTION SHOWS BOTH: "LOCKERS, CLOTHES, CHECKING, SHEET STEEL," AND "STEEL STORAGE OR WARDROBE LOCKERS, S.U., " IT HAS BEEN ASCERTAINED FROM THE GENERAL SERVICES ADMINISTRATION FREIGHT CLASSIFICATION GUIDE DATED JANUARY 1953, THAT THE ARTICLES HERE SHIPPED ACTUALLY WERE SHEET STEEL CLOTHES CHECKING LOCKERS.

WHILE THE COMMODITY DESCRIPTION IN ITEM 5580 INDICATES A PACKING REQUIREMENT FOR SHIPMENT "IN CRATES," THE RECORD INDICATES THAT THESE CLOTHES LOCKERS WERE PACKED IN A CORRUGATED FIBERBOARD CONTAINER. EXAMINATION OF THE RECORD BEFORE US SUPPORTS THE CONCLUSION THAT THE LOCKERS WERE PACKED IN A FIBERBOARD CONTAINER COMPLYING WITH THE REQUIREMENTS OF RULE 41 OF THE CONSOLIDATED FREIGHT CLASSIFICATION. ITEM 800, ON PAGE 181 OF THE TRANS-CONTINENTAL FREIGHT BUREAU TARIFF NO. 1-B, PROVIDES RULES FOR APPLYING THE PACKING REQUIREMENTS SET FORTH IN THE SEVERAL COMMODITY RATE ITEMS IN THE TARIFF. IT IS SHOWN, IN SUBSTANCE, THAT FIBERBOARD BOXES ARE FIRST CLASS PACKAGES; AND THAT CRATES ARE SECOND CLASS PACKAGES. PARAGRAPH (F) OF ITEM 800 PROVIDES THAT:

"RATES PROVIDED FOR ARTICLES IN ANY PACKAGE OF THE SECOND CLASS ALSO APPLY UPON THE SAME ARTICLES IN ANY PACKAGE OF THE FIRST OR IN ANY OTHER PACKAGE OF THE SECOND CLASS.'

THUS, SINCE THE COMMODITY RATE NAMED IN ITEM 5580 APPLIES ON SHIPMENTS IN CRATES, IT IS ALSO APPLICABLE ON SHIPMENTS OF THE SAME ARTICLES IN FIBERBOARD BOXES. IT SHOULD BE NOTED ALSO THAT THE ITEM 800 REFERRED TO ABOVE STATES THAT "THE VARIOUS KINDS OF PACKAGES NAMED IN THE COMMODITY ITEMS MUST MEET THE REQUIREMENTS SPECIFIED BELOW," AND NO REFERENCE IS MADE TO THE PACKING REQUIREMENTS IN THE CONSOLIDATED FREIGHT CLASSIFICATION.

IT IS ACCORDINGLY CONCLUDED THAT THE PACKING OF THE SHEET STEEL CLOTHES CHECKING LOCKERS COMPLIED WITH THE REQUIREMENTS IN CONNECTION WITH THE COMMODITY RATE FOUND TO BE PROPERLY APPLICABLE TO THIS SHIPMENT. MOREOVER, THE PROPER DESCRIPTION OF THE LOCKERS HERE SHIPPED IS CONTAINED IN ITEM 26695 OF CONSOLIDATED FREIGHT CLASSIFICATION NO. 20, NAMING A RATING ON:

"LOCKERS, PARCEL OR CLOTHES CHECKING, SHEET STEEL OR WIRE MESH, SEPARATE OR COMBINED, LCL IN BOXES OR CRATES, OR WALLS (SIDES) PROTECTED BY FIBERBOARD TESTING NOT LESS THAN 200 LBS; CL, LOOSE OR IN PACKAGES.'

THE COPIES OF CORRESPONDENCE SUBMITTED BY YOU WITH REFERENCE TO THE APPLICABILITY OF PACKAGE 16-F, AS DESCRIBED IN THE CLASSIFICATION, SHOW THAT CONSIDERATION WAS GIVEN ONLY TO THE ARTICLES DESCRIBED IN ITEMS 19845 AND 19855 OF CLASSIFICATION NO. 20, AS "CABINETS OR LOCKERS, STORAGE, WARDROBE OR KITCHEN, NOIBN * * * STEEL WITHOUT GLASS.'

BILL NO. 953-CL-40 FURNISHED YOU BY GENERAL SERVICES ADMINISTRATION ON MARCH 23, 1953, SHOWS THAT THE LOCKER IN QUESTION WAS LISTED AS STOCK ITEM NO. 26-L-2229-100 IN THE FEDERAL SUPPLY CATALOG, AND, AS STATED ABOVE, THE GENERAL SERVICES ADMINISTRATION FREIGHT CLASSIFICATION GUIDE DATED JANUARY 1953, SHOWS THAT THIS ITEM IS PROPERLY DESCRIBED AS SHEET STEEL CLOTHES CHECKING LOCKERS, NAMED IN ITEM 26695 OF CONSOLIDATED FREIGHT CLASSIFICATION NO. 20, AND FURTHER SPECIFICALLY DESCRIBED FOR SHIPMENT IN CRATES IN ITEM 5580 OF THE TRANS-CONTINENTAL FREIGHT TARIFF NO. 1-B.

ACCORDINGLY, FOR THE REASONS STATED, THE SETTLEMENT DISALLOWING YOUR CLAIM IS SUSTAINED.