B-140079, JANUARY 7, 1960, 39 COMP. GEN. 501

B-140079: Jan 7, 1960

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CLASSIFICATION RATINGS IN THE COMPUTATION OF FREIGHT CHARGES ON A SHIPMENT OF INTERNAL COMBUSTION ENGINES TRANSPORTED BY MOTOR CARRIER UNDER A GOVERNMENT BILL OF LADING WHICH INDICATES THAT THE ENGINES WERE TENDERED AT THE MAXIMUM VALUE APPLICABLE TO THE LOWEST PUBLISHED RATE. THE HIGHER COMMODITY RATE IN A TARIFF WHICH SPECIFIES THAT THE RELEASED VALUATION PROVISIONS IN THE CLASSIFICATION TARIFF ARE NOT FOR APPLICATION DOES NOT SUPERSEDE A RELEASED VALUE CLASSIFICATION RATING. ADDITIONAL CHARGES ON SUCH HIGHER COMMODITY RATING ARE NOT FOR ALLOWANCE FOR A SHIPMENT TENDERED AT A RELEASED VALUE. 1960: FURTHER REFERENCE IS MADE TO YOUR LETTER OF JUNE 24. THE SHIPMENT IS DESCRIBED ON THE BILL OF LADING AS "2 CANS ENGINE.

B-140079, JANUARY 7, 1960, 39 COMP. GEN. 501

TRANSPORTATION - RATES - VALUE - RELEASED V. UNRELEASED - COMMODITY V. CLASSIFICATION RATINGS IN THE COMPUTATION OF FREIGHT CHARGES ON A SHIPMENT OF INTERNAL COMBUSTION ENGINES TRANSPORTED BY MOTOR CARRIER UNDER A GOVERNMENT BILL OF LADING WHICH INDICATES THAT THE ENGINES WERE TENDERED AT THE MAXIMUM VALUE APPLICABLE TO THE LOWEST PUBLISHED RATE, THE HIGHER COMMODITY RATE IN A TARIFF WHICH SPECIFIES THAT THE RELEASED VALUATION PROVISIONS IN THE CLASSIFICATION TARIFF ARE NOT FOR APPLICATION DOES NOT SUPERSEDE A RELEASED VALUE CLASSIFICATION RATING, THE RELEASED AND UNRELEASED CLASSIFICATION RATINGS BEING SEPARATE AND DISTINCT ITEMS FOR TRANSPORTATION PURPOSES, AND A COMMODITY NOT SUBJECT TO A RELEASED VALUE MAY ONLY SUPERSEDE AN UNRELEASED CLASSIFICATION RATING; THEREFORE, ADDITIONAL CHARGES ON SUCH HIGHER COMMODITY RATING ARE NOT FOR ALLOWANCE FOR A SHIPMENT TENDERED AT A RELEASED VALUE.

TO THE RED BALL MOTOR FREIGHT, INC., JANUARY 7, 1960:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF JUNE 24, 1959, REQUESTING A REVIEW OF OUR SETTLEMENT (TK-670864) DATED JUNE 16, 1959, DISALLOWING YOUR SUPPLEMENTAL BILL NO. 25520 FOR $46.05 ADDITIONAL FREIGHT CHARGES ALLEGEDLY DUE FOR THE TRANSPORTATION OF INTERNAL COMBUSTION ENGINES WEIGHING 7,940 POUNDS FROM MONTGOMERY, ALABAMA, TO DALLAS, TEXAS, UNDER GOVERNMENT BILL OF LADING NO. AF-8952660, IN NOVEMBER 1958.

THE SHIPMENT IS DESCRIBED ON THE BILL OF LADING AS "2 CANS ENGINE, INTERNAL COMBUSTION, NOIBN JET PROPULSION TYPE ENG, FOR ACFT," AND IS INDICATED ON THE FACE OF THE BILL OF LADING AS HAVING BEEN RELEASED AT THE MAXIMUM VALUE FOR WHICH THE LOWEST RATE IS APPLICABLE.

FOR THIS SERVICE YOU BILLED AND WERE PAID $263.61 ON VOUCHER NO. 255576 IN THE JANUARY 1959 ACCOUNTS OF LIEUTENANT COLONEL GEORGE M. SECKINGER, BASED ON A CLASS 85 RATE OF $3.32 PER 100 POUNDS NAMED IN SOUTHERN MOTOR CARRIERS RATE CONFERENCE TARIFF NO. 505-A, MF-I.C.C. NO. 843. ITEM 61243 OF NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-4 PROVIDES A CLASS 85 LESS- THAN-TRUCKLOAD RATING ON INTERNAL COMBUSTION ENGINES, NOI, WHEN RELEASED TO A VALUE NOT EXCEEDING $2.50 PER POUND. IN YOUR SUPPLEMENTAL BILL YOU COMPUTED THE CHARGES ON THE BASIS OF A RATE OF $3.90 PER 100 POUNDS NAMED IN ITEM 61243 OF SOUTHERN MOTOR CARRIERS RATE CONFERENCE TARIFF NO. 515-C, MF-I.C.C. NO. 960, CONTAINING JOINT AND LOCAL COMMODITY COLUMN RATES. THIS ITEM NAMES A COLUMN 100 COMMODITY LESS-THAN-TRUCKLOAD RATING ON RADIAL CYLINDER OR JET PROPULSION TYPE INTERNAL COMBUSTION ENGINES. NOTE D UNDER ITEM 61243 PROVIDES THAT THE RELEASED VALUATION PROVISIONS AS SHOWN IN THE NATIONAL MOTOR FREIGHT CLASSIFICATION WILL NOT APPLY ON ARTICLES NAMED IN THE ITEM. IT IS YOUR CONTENTION THAT THE COLUMN 100 COMMODITY RATING SUPERSEDES THE RELEASED VALUE COLUMN 85 RATING NAMED IN THE CLASSIFICATION.

ITEM 61247 OF NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-4 NAMES A CLASS 150 RATING ON LESS-THAN-TRUCKLOAD SHIPMENTS OF INTERNAL COMBUSTION ENGINES, NOI, WHEN THE VALUE OF THE PROPERTY IS NOT DECLARED OR RELEASED. THE RATINGS NAMED IN ITEM 61243 OF TARIFF NO. 515-C ALSO APPLY ONLY WHEN THE VALUE OF THE PROPERTY IS NOT DECLARED OR RELEASED. THUS, THE COMMODITY RATING HAS THE EFFECT OF SUPERSEDING ONLY THE CLASSIFICATION RATING BASIS TO THE EXTENT THAT IT CONCERNS RADIAL CYLINDER OR JET PROPULSION TYPE INTERNAL COMBUSTION ENGINES TENDERED TO THE CARRIERS WITHOUT A DECLARATION OF VALUE. IN OTHER WORDS, THE RELEASED VALUE CLASSIFICATION RATING BASIS IS REQUIRED TO BE APPLIED IN THE PRESENT INSTANCE, AND THE ENGINES WERE TENDERED TO THE ORIGIN CARRIER WITH THE UNDERSTANDING THAT A RELEASED VALUE RATING WOULD BE APPLIED.

THE CASE OF UPJOHN COMPANY V. PENNSYLVANIA RAILROAD COMPANY, 306 I.C.C. 325, INVOLVED A SOMEWHAT SIMILAR SITUATION. IN THAT CASE THE CARRIER ARGUED THAT THE RELEASED VALUE NOTATION ON THE BILL OF LADING WAS MEANINGLESS, AND THAT SUCH RATES HAVE LIMITED APPLICABILITY, AND MAY NOT BE USED ON ANY ARTICLE WHERE THERE IS IN EFFECT A COMMODITY RATE ON THE SAME ARTICLE. HOWEVER, THE COMMISSION FOUND THAT THE RELEASED AND UNRELEASED CLASSIFICATION RATINGS SHOULD BE CONSIDERED FROM A TRANSPORTATION STANDPOINT AS SEPARATE AND DISTINCT ITEMS, AND THAT THE COMMODITY RATE, NOT SUBJECT TO A RELEASED VALUE PROVISION, SUPERSEDED ONLY THE CLASSIFICATION RATING WHICH ALSO WAS NOT SUBJECT TO A RELEASED VALUE PROVISION. SEE ALSO, AMERICAN HOME FOODS, INC. V. DELAWARE, LACKAWANNA AND WESTERN R. CO., 303 I.C.C. 655, AND DOW CHEMICAL CO. V. CHESAPEAKE AND OHIO RY. CO., 306 I.C.C. 403.

IT IS NOTED THAT THE ASSISTANT DIRECTOR, BUREAU OF TRAFFIC, INTERSTATE COMMERCE COMMISSION, ALSO CONSIDERED THE SIGNIFICANCE OF THE IDENTICAL TARIFF PROVISION (ITEM 61243, TARIFF NO. 515-C) INVOLVED IN THE PRESENT INSTANCE IN A LETTER DATED DECEMBER 16, 1959, UNDER FILE 500-536392, ADDRESSED TO THE M.R. AND R. TRUCKING COMPANY OF CRESTVIEW, FLORIDA. WAS STATED IN THAT LETTER:

AS AFORE STATED, IN THE AMERICAN HOME FOODS CASE AND IN THE UPJOHN CASE IT WAS HELD THAT WHILE FROM A COMMERCIAL STANDPOINT THERE WAS NO DIFFERENCE IN THE COMMODITIES WHETHER THEIR VALUE WAS RELEASED OR NOT RELEASED, IT WAS EQUALLY APPARENT THAT THERE WAS A DISTINCT DIFFERENCE FROM A TRANSPORTATION STANDPOINT BY REASON OF THE SHIPPER'S DECLARATION AS TO VALUE. WE THEREFORE ARE STILL OF THE VIEW THAT UNRELEASED ITEM 61243 IN SMCRC 515-C DOES NOT DISPLACE THE RELEASED PROVISIONS IN THE CLASSIFICATION AND WE DO NOT SEE THAT NOTE D THEREIN MAKES ANY MATERIAL CONTRIBUTION IN THIS INSTANCE.

IN VIEW OF THE FOREGOING COMMISSION RULINGS ON THE SUBJECT, WE WOULD NOT BE WARRANTED IN ALLOWING ADDITIONAL CHARGES BASED ON THE APPLICATION OF ITEM 61243 OF TARIFF NO. 515-C IN THE PRESENT INSTANCE. OUR SETTLEMENT OF JUNE 16, 1959, WAS CONSISTENT WITH THE PRECEDENTS IN THIS MATTER AND IT IS ACCORDINGLY SUSTAINED.