B-140835, JUL. 22, 1960

B-140835: Jul 22, 1960

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

TO EL PASO-PECOS VALLEY TRUCK LINES: FURTHER REFERENCE IS MADE TO YOUR REQUEST FOR REVIEW OF OUR SETTLEMENT CERTIFICATE (TK-603906) DATED AUGUST 19. YOU INITIALLY BILLED AND WERE PAID TOTAL CHARGES OF $987.80. AN ALLOWANCE OF $390.60 OF THE AMOUNT SO CLAIMED WAS MADE AND THE BALANCE DENIED. THE TOTAL FREIGHT CHARGES THUS PAID WERE $1. THE CHARGES ON YOUR LAST SUPPLEMENTAL BILL WERE APPARENTLY COMPUTED BY USE OF RATES APPLICABLE ON ROCKETS. WHICH IS A PARTICULAR TYPE OF ROCKET MOTOR. ON THAT BASIS IT WAS DETERMINED THAT THE ALLOWABLE CHARGES FOR THIS TRANSPORTATION SHOULD BE $1. AS YOU WERE PAID $1. REQUEST FOR REFUND (OUR FORM NO. 1003) OF $275.20 WAS ISSUED. YOU SUGGEST THAT THE BILL OF LADING DESCRIPTION INDICATES THAT MORE THAN JET THRUST UNITS WERE SHIPPED.

B-140835, JUL. 22, 1960

TO EL PASO-PECOS VALLEY TRUCK LINES:

FURTHER REFERENCE IS MADE TO YOUR REQUEST FOR REVIEW OF OUR SETTLEMENT CERTIFICATE (TK-603906) DATED AUGUST 19, 1959, WHICH DISALLOWED YOUR CLAIM, PER SUPPLEMENTAL BILL NO. 3340-A, FOR $396.70, ADDITIONAL CHARGES ALLEGEDLY DUE FOR THE TRANSPORTATION OF 10,800 POUNDS OF JET THRUST UNITS AND 153 POUNDS OF ELECTRIC IGNITERS, FROM CHAMBERSBURG, PENNSYLVANIA, TO CARRIZOZO, NEW MEXICO, UNDER BILL OF LADING WY-4793407, IN JUNE 1955. FOR THIS SERVICE, YOU INITIALLY BILLED AND WERE PAID TOTAL CHARGES OF $987.80. THEREAFTER, YOU SUBMITTED YOUR SUPPLEMENTAL BILL NO. 3340 FOR $741.30 ADDITIONAL CHARGES, OR A TOTAL CLAIM OF $1,729.10 FOR THE SERVICE. BY CERTIFICATE SETTLEMENT NO. T-654237, DATED MARCH 30, 1956, AN ALLOWANCE OF $390.60 OF THE AMOUNT SO CLAIMED WAS MADE AND THE BALANCE DENIED. THE TOTAL FREIGHT CHARGES THUS PAID WERE $1,378.40. THEREAFTER, YOU FILED STILL ANOTHER SUPPLEMENTAL BILL, NO. 3340-A, FOR AN ADDITIONAL $396.70, CONTENDING THAT YOU SHOULD BE PAID $1,775.10 FOR THE SERVICE PERFORMED.

THE CHARGES ON YOUR LAST SUPPLEMENTAL BILL WERE APPARENTLY COMPUTED BY USE OF RATES APPLICABLE ON ROCKETS, NOI, RATABLE AT CLASS 100 IN TRUCKLOADS, PER ITEM 3830-A OF NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A -2, EFFECTIVE DECEMBER 28, 1954. THE SETTLEMENT OF AUGUST 19, 1959, INFORMED YOU THAT THE COMMODITY SHIPPED CONSISTED OF JET THRUST UNITS, WHICH IS A PARTICULAR TYPE OF ROCKET MOTOR, SUBJECT TO A CLASS 55 TRUCKLOAD RATING, PER ITEM 3870-A OF NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-2, ALSO EFFECTIVE DECEMBER 28, 1954. ON THAT BASIS IT WAS DETERMINED THAT THE ALLOWABLE CHARGES FOR THIS TRANSPORTATION SHOULD BE $1,103.20, AND AS YOU WERE PAID $1,378.40, REQUEST FOR REFUND (OUR FORM NO. 1003) OF $275.20 WAS ISSUED. PAYMENT OF THIS AMOUNT HAS NOT BEEN RECEIVED.

IN YOUR REQUEST FOR REVIEW, YOU SUGGEST THAT THE BILL OF LADING DESCRIPTION INDICATES THAT MORE THAN JET THRUST UNITS WERE SHIPPED, "AS IT MENTIONS AN EXPLOSIVE BOMB AS WELL AS JET THRUST ITS.' YOU ASK FOR COPIES OF THE SHIPPING DOCUMENTS IN ORDER THAT YOU MAY DETERMINE THAT ONLY JET THRUST UNITS WERE INCLUDED IN THIS SHIPMENT.

THE BILL OF LADING DESCRIPTION OF THE COMMODITY IN QUESTION IS: "4 BXS S8BAA JET THRUST UNIT (EXPLOSIVE BOMB) JATO XM5 (NIKE) EA. 4.' THERE SEEMS NO DOUBT THAT SUCH ARTICLES WERE JET THRUST UNITS (JATOS) AND NOTHING MORE. THE WORDS "EXPLOSIVE BOMB" WERE ADDED TO THE DESCRIPTION APPARENTLY BECAUSE PRIOR TO THE ESTABLISHMENT OF THE RATINGS ON ROCKET MOTORS IN THE NATIONAL MOTOR FREIGHT CLASSIFICATION, THE DEPARTMENTS OF THE ARMY AND AIR FORCE FREIGHT CLASSIFICATION GUIDE PERTAINING TO ORDNANCE ITEMS, COMMERCIAL TRAFFIC BULLETIN 16, CHANGE 1, EFFECTIVE NOVEMBER 16, 1954, SHOWED THAT CERTAIN JATOS SHOULD BE DESCRIBED ON BILLS OF LADING AS "JET THRUST UNITS (JATO) CLASS A (EXPLOSIVE BOMBS, BY ANALOGY).' ON APRIL 25, 1955, CHANGE 2 TO COMMERCIAL TRAFFIC BULLETIN 16 REQUIRED THE BILL OF LADING DESCRIPTION ON JATOS TO READ: "JET THRUST UNITS (JATO SHOW WHETHER CLASS A OR B) (ROCKET MOTORS).' IT IS ASSUMED THAT AT THE TIME OF ISSUANCE OF BILL OF LADING WY-4793407 THE ISSUING OFFICER WAS NOT AWARE OF CHANGE 2 TO THE ABOVE-MENTIONED COMMERCIAL TRAFFIC BULLETIN NO. 16, AND THE BILLING WAS IN ACCORDANCE WITH CHANGE 1 TO THE BULLETIN, EFFECTIVE NOVEMBER 16, 1954.

JET THRUST UNIT IS THE SPECIFIC NAME FOR A TYPE OF ROCKET MOTOR WHICH, IN ADDITION TO ITS USE AS A MAIN OR AUXILIARY BOOSTER FOR ROCKETS, CAN BE USED TO ASSIST THE TAKE OFF OF AIRPLANES BY PROVIDING TEMPORARY OR EMERGENCY POWER. ITS CONSTRUCTION AND FUNCTION ARE ESSENTIALLY THE SAME AS OTHER TYPES OF ROCKET MOTORS. THE 153 POUNDS OF ELECTRIC IGNITERS INCLUDED IN THIS SHIPMENT ARE FUZES CONTAINING A SMALL CHARGE OF BLACK POWDER AND ARE DEVICES USED TO IGNITE THE PROPELLANT CHARGE IN A JET THRUST UNIT.

AT THE TIME THIS SHIPMENT MOVED, JET THRUST UNITS AND OTHER TYPES OF ROCKET MOTORS WERE SEPARATELY DESCRIBED IN THE MOTOR CARRIERS' TARIFF PRESCRIBING THE RULES AND REGULATIONS FOR THE TRANSPORTATION OF EXPLOSIVES AND OTHER DANGEROUS ARTICLES, AND WERE CLASSIFIED AS CLASS A EXPLOSIVES OR CLASS B EXPLOSIVES ACCORDING TO THE CHEMICAL CONTENT OF THE PARTICULAR TYPE OF UNIT. NO DISTINCTION OF THIS KIND WAS MADE, HOWEVER, IN THE GOVERNING NATIONAL MOTOR FREIGHT CLASSIFICATION AS JET THRUST UNITS WERE NOT SPECIFICALLY NAMED THEREIN AND THE ROCKET MOTOR DESCRIPTION EFFECTIVE DECEMBER 28, 1954, WAS UNLIMITED AS TO TYPE, CHEMICAL CONTENT, OR CLASSIFICATION WITHIN THE MEANING OF THE EXPLOSIVES TARIFF. IN THESE CIRCUMSTANCES, THE CLASS 55 RATING PROVIDED IN ITEM 3870-A OF THE CLASSIFICATION IN CONNECTION WITH THE ROCKET MOTOR DESCRIPTION WOULD BE APPLICABLE TO ANY KIND OF ROCKET MOTOR AND WOULD THUS BE APPLICABLE TO SHIPMENTS OF JET THRUST UNITS. ITEM 3900 OF CLASSIFICATION NO. A-2 PROVIDES A CLASS 70 VOLUME RATING FOR ALL TYPES OF FUZES EXCEPT BOOSTER AND DETONATING FUZES AND WOULD APPEAR TO INCLUDE FUZES SUCH AS THE ELECTRIC IGNITERS HERE INVOLVED.

THE SETTLEMENT HERE WAS BASED ON A COMBINATION OF CLASS 55 RATES TO AND BEYOND MEMPHIS. THESE RATES PROPERLY APPLIED TO THAT PART OF THE SHIPMENT CONSISTING OF JET THRUST UNITS BUT THE ELECTRIC IGNITERS SHOULD HAVE BEEN CHARGED FOR ON THE BASIS OF THE RATES PROVIDED FOR COMBINATION, PERCUSSION, TIME OR TRACER FUZES. A REVISED NOTICE OF OVERPAYMENT, FORM 1003, WILL BE ISSUED AND SHOULD REACH YOU IN DUE COURSE. AS THUS MODIFIED, THE SETTLEMENT APPEARS TO HAVE BEEN CORRECT AND IS SUSTAINED.

ON MAY 6, 1960, OUR TRANSPORTATION DIVISION INFORMED THE MUNITIONS CARRIERS CONFERENCE THAT THE "ZIMMERMAN CASE," TO WHICH YOU REFER, WOULD BE SETTLED ON THE BASIS OUTLINED ABOVE. THEREFORE, THE AMENDED REQUEST FOR REFUND OF OVERPAYMENT, WHEN RECEIVED, SHOULD BE HONORED PROMPTLY.