B-144848, JUL. 19, 1961

B-144848: Jul 19, 1961

Additional Materials:

Contact:

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

 

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

INC.: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 13. YOU CONTEND THAT THESE CHARGES ARE DUE FOR THE TRANSPORTATION OF "1 CAN N5430128 ENGINES. FOR THE SERVICES PERFORMED YOU CLAIMED AND WERE PAID $196.56 COMPUTED ON THE BASIS OF THE FIRST-CLASS RATE OF $7.28 PER 100 POUNDS ON THE ACTUAL WEIGHT OF 2. WAS COMPUTED TO BE $152.66 AND THE SUM OF $43.90 WAS REFUNDED. AN ALLOWANCE OF $23.65 WAS MADE ON YOUR SUPPLEMENTAL BILL NO. 6466-A FOR $43.90. WERE THOSE COMPUTED ON THE BASIS OF THE SECOND-CLASS RATE OF $6.53 PER 100 POUNDS ON THE ACTUAL WEIGHT OF 2. 61247 AND 61249 SERIES IN THE CURRENT CLASSIFICATION WILL NOT APPLY IN CONNECTION WITH THE RATINGS SHOWN IN THE ITEM. TWO OF THE RATINGS ARE NAMED IN ITEM NO. 61244.

B-144848, JUL. 19, 1961

TO TEXAS-ARIZONA MOTOR FREIGHT, INC.:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 13, 1961, ENCLOSING YOUR BILL 6466-B, ACKNOWLEDGED JANUARY 25, IN WHICH YOU IN EFFECT REQUEST A REVIEW OF OUR DISALLOWANCE OF ADDITIONAL FREIGHT CHARGES OF $20.25 ON YOUR BILL 6466-A. YOU CONTEND THAT THESE CHARGES ARE DUE FOR THE TRANSPORTATION OF "1 CAN N5430128 ENGINES, INTERNAL COMBUSTION NOI (RADIAL CYLINDER TYPE FOR ACFT) * * * RELEASED AT THE MAXIMUM VALUE APPLICABLE TO THE LOWEST PUBLISHED RATE," WEIGHING 2,700 POUNDS, FROM SAN ANTONIO, TEXAS, TO PARKS AIR FORCE BASE, CALIFORNIA, UNDER GOVERNMENT BILL OF LADING AF-7001952, DATED APRIL 12, 1957.

FOR THE SERVICES PERFORMED YOU CLAIMED AND WERE PAID $196.56 COMPUTED ON THE BASIS OF THE FIRST-CLASS RATE OF $7.28 PER 100 POUNDS ON THE ACTUAL WEIGHT OF 2,700 POUNDS. IN THE AUDIT THE PROPER CHARGE, BASED ON AN AGGREGATE OF INTERMEDIATE RATES OVER OAKLAND, CALIFORNIA, WAS COMPUTED TO BE $152.66 AND THE SUM OF $43.90 WAS REFUNDED. BY OUR SETTLEMENT CERTIFICATE DATED DECEMBER 6, 1960, AN ALLOWANCE OF $23.65 WAS MADE ON YOUR SUPPLEMENTAL BILL NO. 6466-A FOR $43.90, THE AMOUNT REFUNDED, ON THE BASIS THAT THE PROPER CHARGES FOR ENGINES, INTERNAL COMBUSTION, NOI, RELEASED TO A VALUE NOT EXCEEDING $2.50 PER POUND, WERE THOSE COMPUTED ON THE BASIS OF THE SECOND-CLASS RATE OF $6.53 PER 100 POUNDS ON THE ACTUAL WEIGHT OF 2,700 POUNDS AS PROVIDED IN ITEM 61244-A OF NATIONAL MOTOR FREIGHT CLASSIFICATION NO. 13, MF-I.C.C. NO. 7 AND SECTION 10 OF ROCKY MOUNTAIN MOTOR TARIFF BUREAU INC., AGENT TRANSCONTINENTAL CLASS TARIFF NO. 21, MF-I.C.C. NO. 86.

YOU NOW URGE, IN EFFECT, THAT ITEM 370 OF ROCKY MOUNTAIN MOTOR TARIFF BUREAU INC., AGENT TRANSCONTINENTAL CLASS TARIFF NO. 21 PROVIDES THAT THE RELEASED VALUATION PROVISIONS SHOWN IN ITEMS 61244, 61245, 61246, 61247 AND 61249 SERIES IN THE CURRENT CLASSIFICATION WILL NOT APPLY IN CONNECTION WITH THE RATINGS SHOWN IN THE ITEM.

NATIONAL MOTOR FREIGHT CLASSIFICATION NO. 13 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 WAS 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 RY., 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.

FURTHERMORE, THE ASSISTANT DIRECTOR, BUREAU OF TRAFFIC, INTERSTATE COMMERCE COMMISSION, CONSIDERED THE SIGNIFICANCE OF A SIMILAR ITEM (ITEM 61243, SOUTHERN MOTOR CARRIERS RATE CONFERENCE TARIFF NO. 515-C, MF-I.C.C. NO. 960), IN A LETTER DATED DECEMBER 16, 1959, UNDER FILE 500-536392, ADDRESSED TO THE M.R. AND R. TRUCKING COMPANY OF CRESTVIEW, FLORIDA, IN WHICH IT WAS STATED:

"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.'

NOTE 2 TO ITEM NO. 370 IN THE EXCEPTIONS TO THE CLASSIFICATION WHICH IS SIMILAR TO NOTE D, ABOVE, PROVIDES THAT THE RELEASED VALUATION PROVISIONS SHOWN IN ITEMS NO. 61244 AND 61247 WILL NOT APPLY IN CONNECTION WITH THE EXCEPTIONS RATINGS. WHILE THE LANGUAGE USED IN SUCH NOTE IS AMBIGUOUS AND ITS INTENT IS NOT FREE FROM DOUBT, IT APPEARS TO MAKE THE EXCEPTIONS RATINGS FOR APPLICATION ONLY IN CONNECTION WITH SHIPMENTS OF UNRELEASED VALUATION ARTICLES AND, THEREFORE, ITEM NO. 370 DID NOT REMOVE FROM THE CLASSIFICATION THE RELEASED VALUATION RATINGS ON INTERNAL COMBUSTION ENGINES. AT LEAST THE WORDING OF NOTE 2 IS SO AMBIGUOUS IN THIS REGARD THAT ANY DOUBT IN THE MATTER IS REQUIRED TO BE RESOLVED AGAINST THE CARRIER AND IN FAVOR OF THE SHIPPER.

CONDITION NO. 5, ON THE REVERSE SIDE 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 INDICATED ON THE FACE OF THE BILL OF LADING. THE ANNOTATION ON THE FACE OF THE SUBJECT BILL OF LADING PROVIDES:

"RELEASED AT THE MAXIMUM VALUE APPLICABLE TO THE LOWEST PUBLISHED RATE"

IT APPEARS, THEREFORE, THAT THE SHIPMENT WAS MADE AT THE RELEASED VALUATION RATING PROVIDED IN ITEM 61244-A OF THE CLASSIFICATION, RATHER THAN THE UNRELEASED COMMODITY RATING CLAIMED BY YOU. ACCORDINGLY, THE DISALLOWANCE OF YOUR CLAIM FOR $20.25 APPEARS TO BE CORRECT AND IS SUSTAINED.

Sep 27, 2016

Sep 22, 2016

Sep 21, 2016

Sep 20, 2016

Looking for more? Browse all our products here