B-143481, SEP. 15, 1960

B-143481: Sep 15, 1960

Additional Materials:

Contact:

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

 

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

TO FRISCO TRANSPORTATION COMPANY: REFERENCE IS MADE TO YOUR LETTER OF JULY 5. THIS BILL WAS FOR ADDITIONAL FREIGHT CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF A JET PROPULSION TYPE INTERNAL COMBUSTION ENGINE. FOR THIS SERVICE YOU BILLED AND WERE PAID $186.75 ON VOUCHER NO. 113068 IN THE OCTOBER 1958 ACCOUNTS OF LIEUTENANT COLONEL GEORGE M. IN YOUR REQUEST FOR REVIEW YOU CONTEND THAT THE APPLICABLE RATE IS A COLUMN-100 COMMODITY RATE OF $4.88 PER 100 POUNDS. INDICATES THAT THE RELEASED VALUATION PROVISIONS IN THE NATIONAL MOTOR FREIGHT CLASSIFICATION WILL NOT APPLY ON THE ARTICLES NAMED IN THE ITEM (SEE NOTE D OF ITEM). IN YOUR REQUEST FOR REVIEW YOU STATE THAT "BY VIRTUE OF THIS PROVISION IN THE ITEM THE RATINGS IN THE CLASSIFICATION SUBJECT TO BOTH RELEASED AND UNRELEASED VALUATIONS HAVE BEEN REMOVED THEREFROM AND.

B-143481, SEP. 15, 1960

TO FRISCO TRANSPORTATION COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF JULY 5, 1960, IN WHICH YOU REQUEST A REVIEW OF OUR SETTLEMENT (TK-686083) DATED APRIL 12, 1960, WHICH DISALLOWED YOUR CLAIM PER SUPPLEMENTAL BILL NO. DT-5073-A, IN THE AMOUNT OF $32.85. THIS BILL WAS FOR ADDITIONAL FREIGHT CHARGES ALLEGED TO BE DUE FOR THE TRANSPORTATION OF A JET PROPULSION TYPE INTERNAL COMBUSTION ENGINE, WEIGHING 4,500 POUNDS, FROM TYNDALL AIR FORCE BASE, FLORIDA, TO TINKER AIR FORCE BASE, OKLAHOMA, UNDER GOVERNMENT BILL OF LADING NO. AF- 8558463.

FOR THIS SERVICE YOU BILLED AND WERE PAID $186.75 ON VOUCHER NO. 113068 IN THE OCTOBER 1958 ACCOUNTS OF LIEUTENANT COLONEL GEORGE M. SECKINGER, BASED ON A CLASS-85 RATE OF $4.15 PER 100 POUNDS NAMED IN SOUTHERN MOTOR CARRIERS RATE CONFERENCE TARIFF NO. 505-A, MF-I.C.C. NO. 843. IN YOUR REQUEST FOR REVIEW YOU CONTEND THAT THE APPLICABLE RATE IS A COLUMN-100 COMMODITY RATE OF $4.88 PER 100 POUNDS, PURSUANT TO THE PROVISIONS OF ITEM 61243 OF SOUTHERN MOTOR CARRIERS RATE CONFERENCE TARIFF NO. 515-C, MF- I.C.C. NO. 960. THIS ITEM NAMES A COLUMN-100 COMMODITY RATING ON RADIAL CYLINDER OR JET PROPULSION TYPE INTERNAL COMBUSTION ENGINES, AND INDICATES THAT THE RELEASED VALUATION PROVISIONS IN THE NATIONAL MOTOR FREIGHT CLASSIFICATION WILL NOT APPLY ON THE ARTICLES NAMED IN THE ITEM (SEE NOTE D OF ITEM).

IN YOUR REQUEST FOR REVIEW YOU STATE THAT "BY VIRTUE OF THIS PROVISION IN THE ITEM THE RATINGS IN THE CLASSIFICATION SUBJECT TO BOTH RELEASED AND UNRELEASED VALUATIONS HAVE BEEN REMOVED THEREFROM AND, CONSEQUENTLY, THE PROVISIONS OF ITEM 61243 OF SOUTHERN MOTOR CARRIERS RATE CONFERENCE TARIFF 515-C IS INAPPLICABLE.'

NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-4 NAMES THREE RATINGS ON INTERNAL COMBUSTION ENGINES. TWO OF THE RATINGS ARE NAMED IN ITEM NO. 61244, USED IN OUR AUDIT, AND ARE BASED ON RELEASED VALUATIONS; THE OTHER IS PROVIDED IN ITEM NO. 61247 AND IS BASED ON UNRELEASED VALUATIONS. UNDER SOMEWHAT SIMILAR CIRCUMSTANCES THE INTERSTATE COMMERCE COMMISSION HAS HELD THAT A RATING BASED ON RELEASED VALUATIONS IS SEPARATE AND DISTINCT FROM A RATING BASED ON UNRELEASED VALUATIONS, AND THEREFORE THAT AN EXCEPTIONS RATING OR COMMODITY RATE BASED ON UNRELEASED VALUATIONS REMOVES FROM THE CLASSIFICATION ONLY THE CLASSIFICATION RATING BASED ON UNRELEASED VALUATIONS, LEAVING THE CLASSIFICATION RATING ON RELEASED VALUATIONS UNAFFECTED. SEE DOW CHEMICAL CO. V. CHESAPEAKE AND OHIO R.CO., 306 I.C.C. 403; UPJOHN COMPANY V. PENNSYLVANIA R.CO., 306 I.C.C. 325; AND AMERICAN HOME FOODS, INC. V. DELAWARE, L. AND W.R.CO., 303 I.C.C. 655.

IN THIS CONNECTION, THE ASSISTANT DIRECTOR, BUREAU OF TRAFFIC, INTERSTATE COMMERCE COMMISSION, ALSO CONSIDERED THE SIGNIFICANCE OF THE IDENTICAL 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. IT 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.'

CONDITION NO. 5, ON THE REVERSE OF BOTH THE BILL OF LADING AND THE SHIPPING ORDER, PROVIDES THAT THE SHIPMENT COVERED BY THE BILL OF LADING IS MADE AT THE RESTRICTED OR LIMITED VALUATION SPECIFIED IN THE TARIFF OR CLASSIFICATION AT OR UNDER WHICH THE LOWEST RATE IS AVAILABLE, UNLESS OTHERWISE INSTRUCTED ON THE FACE OF THE BILL OF LADING. THE NOTATION ON THE FACE OF THE SUBJECT BILL OF LADING PROVIDES AS FOLLOWS:

"SHIPMENT RELEASED AT THE LOWEST VALUE LAW CONDITION 5 OF GBL.'

IT APPEARS, THEREFORE, THAT THE SUBJECT SHIPMENT WAS MADE AT THE RELEASED VALUATION RATING IN THE CLASSIFICATION AND THAT THE CLASS-85 RATING USED IN OUR AUDIT WAS CORRECT.

SINCE OUR SETTLEMENT OF APRIL 12, 1960, DISALLOWING YOUR CLAIM FOR ADDITIONAL CHARGES, IS CONSISTENT WITH THE MENTIONED RULINGS OF THE COMMISSION IT IS SUSTAINED.