B-140005, JUN. 2, 1960

B-140005, JUN. 2, 1960

WATSON BROS, TRANSPORTATION CO., INC.:

FURTHER REFERENCE IS MADE TO YOUR REQUEST FOR A REVIEW OF OUR SETTLEMENT (TX-667768), DATED JUNE 3, 1959, WHICH DISALLOWED YOUR CLAIM, BILL NO. 1469-A, FOR $27.18 ADDITIONAL FREIGHT CHARGES ALLEGEDLY DUE FOR THE TRANSPORTATION OF 9,200 POUNDS OF MISCELLANEOUS GOVERNMENT PROPERTY CONSIGNED FROM CHANCE VOUGHT AIRCRAFT, INC., GRAND PRAIRIE, TEXAS, TO NORTH ISLAND, CALIFORNIA, IN DECEMBER 1957, UNDER BILL OF LADING N- 30850213. THE SHIPMENT WAS TENDERED AT ORIGIN TO SUNSET MOTOR LINES AND THE BILL OF LADING BORE REFERENCE TO ITEM 5440 OF ROCKY MOUNTAIN TARIFF BUREAU SECTION 22 QUOTATION NO. 43-D, INDICATING THAT THE RATE PROVIDED THEREIN WAS TO BE PROTECTED ON THAT PART OF THE SHIPMENT CONSISTING OF 2,559 POUNDS OF AIRPLANE PARTS, NOI, OTHER THAN CLOTH AND WOOD OR METAL COMBINED.

INCLUDED IN THE SHIPMENT WERE 6,392 POUNDS OF BARROW, TRUCK OR WAGON PARTS, NOI, HAND, AND 2,559 POUNDS OF THE REFERRED-TO AIRPLANE PARTS. YOU ORIGINALLY BILLED AND WERE PAID FOR THE BARROW, TRACK OR WAGON PARTS AT A BASE RATE (EXCLUSIVE OF THE NORTH ISLAND ARBITRARY) OF 633 CENTS PER 100 POUNDS AND YOU PROTESTED, ON THE AIRPLANE PARTS, THE BASE RATE OF 706 CENTS PER 100 POUNDS PROVIDED IN ITEM 5440 OF THE QUOTATION. IN YOUR SUPPLEMENTAL BILL FOR $27.18 ADDITIONAL FREIGHT CHARGES, YOU REDUCED THE CHARGES FOR THE BARROW, TRUCK OR WAGON PARTS TO THE BASIS OF A COLUMN 70 BASE RATE OF 519 CENTS PER 100 POUNDS AND YOU INCREASED THE CHARGES FOR THE AIRPLANE PARTS TO THE BASIS OF A COLUMN 150 BASE RATE OF 1111 CENTS PER 100 POUNDS. THE LATTER ADJUSTMENT WAS EFFECTED ON THE GROUND THAT ITEM 5440 OF THE QUOTATION DID NOT PROVIDE A ROUTE VIA EITHER SUNSET MOTOR LINES OR WATSON BROS. TRANSPORTATION COMPANY, OVER WHICH THE RATE NAMED THEREIN COULD APPLY, AND THAT, IN CONSEQUENCE, THE QUOTATION RATE COULD NOT BE PROTECTED.

OUR SETTLEMENT DISALLOWED YOUR CLAIM AND A NOTICE OF OVERPAYMENT, FORM 1003, WAS ISSUED FOR $79.76, PRINCIPALLY REPRESENTING THE DIFFERENCES BETWEEN CHARGES AT THE RATE INITIALLY BILLED AND CHARGES AT THE RATE PROPERLY APPLICABLE ON THE BARROW, TRUCK OR WAGON PARTS. IN THIS NOTICE, AS TO THE AIRPLANE PARTS, IT WAS INDICATED THAT THE QUOTATION RATE WAS APPLICABLE VIA ROUTE 23, SPECIFIED IN ITEM 5440, IN WHICH SUNSET MOTOR LINES IS NAMED AS AN ORIGIN CARRIER OF WESTBOUND TRAFFIC. IN YOUR REQUEST FOR REVIEW OF THE SETTLEMENT, YOU ADVISED THAT ITEM 5440 DOES NOT PROVIDE A RATE FROM GRAND PRAIRIE TO NORTH ISLAND VIA ROUTE 23 AND THAT THE ONLY RATE IN THE ITEM APPLICABLE FROM GRAND PRAIRIE TO NORTH ISLAND IS ONE APPLYING OVER ROUTE 154, IN WHICH ROUTE, SUNSET MOTOR LINES, THE ORIGINATING CARRIER, DOES NOT PARTICIPATE.

YOUR ATTENTION IS INVITED TO 9TH REVISED PAGE 364A OF THE QUOTATION, EFFECTIVE NOVEMBER 11, 1957, WHEREIN A BASE RATE OF 706 CENTS PER 100 POUNDS IS PROVIDED, APPLICABLE FROM ALL GOVERNMENT INSTALLATIONS IN TEXAS SERVED BY CARRIER NO. S515 (IDENTIFIED IN OTHER PARTS OF THE QUOTATION AS SUNSET MOTOR LINES) TO ALL GOVERNMENT INSTALLATIONS IN CALIFORNIA SERVICED BY CARRIERS PARTICIPATING IN ROUTES 22 THROUGH 29. THE CHANCE VOUGHT INSTALLATION IS SPECIFICALLY IDENTIFIED AS ONE OF THE STATIONS FROM WHICH THE RATE APPLIES. AT LEAST ONE OF THE DELIVERING CARRIERS IN ROUTES 22 THROUGH 29, I.E., CONSTRUCTORS TRANSPORT COMPANY, NAMED IN ROUTE 23, SERVES NORTH ISLAND. IT IS CLEAR, THEREFORE, THAT THERE WAS AT LEAST ONE ROUTE, AND PROBABLY OTHERS, IN WHICH SUNSET MOTOR LINES PARTICIPATED AS AN ORIGINATING CARRIER, AND OVER WHICH THE QUOTATION RATE WAS APPLICABLE FROM GRAND PRAIRIE TO NORTH ISLAND.

THE REFERENCE IN THE BILL OF LADING TO ITEM 5440 OF THE QUOTATION SHOWS CLEARLY THAT THIS PROPERTY WAS TENDERED TO SUNSET MOTOR LINES WITH THE EXPRESS UNDERSTANDING THAT THE RATE SPECIFIED IN THE ITEM WOULD BE PROTECTED. CONSEQUENTLY, SUNSET MOTOR LINES WAS AUTHORIZED TO TRANSFER SUCH PROPERTY EN ROUTE TO ONLY SUCH CARRIER OR CARRIERS AS WERE WILLING TO PROTECT THE RATE. YOUR INITIAL BILLING OF THE CHARGES AT THE QUOTATION RATE IS INDICATIVE OF AT LEAST TACIT CONSENT TO THE ARRANGEMENT. IN ANY EVENT, THE ONLY SERVICE AUTHORIZED BY THE GOVERNMENT WAS THAT COVERED BY THE QUOTATION RATE AND THAT RATE CONTROLS THE AMOUNT OF THE CHARGES LAWFULLY DUE FOR THE SERVICE UNDER SECTIONS 22 AND 217 (B) OF THE INTERSTATE COMMERCE ACT, AS AMENDED, 49 U.S.C. 22, 317 (B).

IN OUR REVIEW OF THIS ACCOUNT, WE FIND THAT THE BASE RATE OF 706 CENTS PER 100 POUNDS SPECIFIED IN ITEM 5440 WAS SUBJECT TO THE INCREASE PROVIDED IN SUPPLEMENT 7 TO THE QUOTATION. THIS INCREASES THE RATE TO 753 CENTS PER 100 POUNDS AND RESULTS IN AN OVERPAYMENT OF $67.74 INSTEAD OF $79.76 AS REPORTED IN OUR NOTICE TO YOU. OUR TRANSPORTATION DIVISION HAS BEEN INSTRUCTED TO ISSUE AN AMENDED NOTICE OF OVERPAYMENT, FORM 1003, WHICH SHOULD REACH YOU IN DUE COURSE. AS THUS MODIFIED THE SETTLEMENT HERE DISALLOWING YOUR CLAIM APPEARS TO HAVE BEEN CORRECT AND IS SUSTAINED.