B-145779, SEP. 19, 1961

B-145779: Sep 19, 1961

Additional Materials:

Contact:

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

 

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

H. CHARLES EPHRAIM: REFERENCE IS MADE TO YOUR LETTER OF APRIL 28. THERE IS NO SHOWING WHEN OR BY WHOM THIS CHANGE WAS MADE. THE CARRIER BILLED AND WAS PAID CHARGES OF $424.08. IN OUR AUDIT OF THE PAYMENT VOUCHER IT WAS DETERMINED THAT THE APPLICABLE CHARGES WERE $218.24. THIS TENDER SHOWS THAT IT WAS ISSUED TO CANCEL TENDER NO. 48. RESPECTING THE LONG TRANSPORTATION COMPANY'S ASSERTION THAT TENDER NO. 48 -A WAS ISSUED ONLY FOR THE PURPOSE OF CANCELLING TENDER NO. 48 AND IDENTIFYING THE RATES CANCELLED IN ACCORDANCE WITH ITS PRACTICE IN SUCH MATTERS. YOU ARE ADVISED THAT AN EXAMINATION OF THE PROCEDURE USED FOR ACHIEVING CANCELLATION OF OTHER RATE TENDERS INVOLVING THIS CARRIER WHICH WERE CANCELLED BEFORE AND AFTER TENDER NO. 48-A ISSUED.

B-145779, SEP. 19, 1961

TO MR. H. CHARLES EPHRAIM:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 28, 1961, ACKNOWLEDGED MAY 9, 1961, ON BEHALF OF THE LONG TRANSPORTATION COMPANY, DETROIT, MICHIGAN, REQUESTING REVIEW OF OUR SETTLEMENT DATED APRIL 12, 1961, WHICH DISALLOWED THE CARRIER'S CLAIM PER ITS BILL NO. G-947-A, FOR $205.84ADDITIONAL FREIGHT CHARGES ON A 6,200 POUND SHIPMENT OF BRIEF CASES MOVING FROM HAVERHILL, MASSACHUSETTS, TO SHELBY, OHIO, UNDER GOVERNMENT BILL OF LADING AF-6338583, DATED FEBRUARY 12, 1957.

BILL OF LADING AF-6338583 BEARS THE TYPEWRITTEN NOTATION "SEC. 22 QUOT. NO. 48 APPLICABLE," HOWEVER, A LINE HAS BEEN DRAWN THOUGH THIS NOTATION AND THE FOLLOWING UNSIGNED HAND PRINTED NOTATION PLACED UNDER IT: CANCELLED BY 48-A 3-9-55.' THERE IS NO SHOWING WHEN OR BY WHOM THIS CHANGE WAS MADE.

FOR THE TRANSPORTATION SERVICES PERFORMED, THE CARRIER BILLED AND WAS PAID CHARGES OF $424.08, COMPUTED ON THE BASIS OF THE AGGREGATE OF INTERMEDIATE CLASS 1 1/2 RATES OVER CLEVELAND, OHIO. IN OUR AUDIT OF THE PAYMENT VOUCHER IT WAS DETERMINED THAT THE APPLICABLE CHARGES WERE $218.24, COMPUTED ON THE BASIS OF THE THROUGH FREIGHT OF ALL KINDS RATE OF $3.52 PER 100 POUNDS, APPLICABLE UPON SHIPMENTS OF OVER 5,000 POUNDS BETWEEN SHELBY, OHIO, AND ALL POINTS IN THE STATE OF MASSACHUSETTS, AS QUOTED IN JOINT SECTION 22 TENDER NO. 48-A, EFFECTIVE MARCH 9, 1955, ISSUED BY LONG TRANSPORTATION COMPANY, J. P. WARD TRUCKING COMPANY AND J. E. FALTIN MOTOR TRANSPORTATION, INC. THIS TENDER SHOWS THAT IT WAS ISSUED TO CANCEL TENDER NO. 48, THE ONE ORIGINALLY DESIGNATED ON THE FACE OF THE BILL OF LADING.

RESPECTING THE LONG TRANSPORTATION COMPANY'S ASSERTION THAT TENDER NO. 48 -A WAS ISSUED ONLY FOR THE PURPOSE OF CANCELLING TENDER NO. 48 AND IDENTIFYING THE RATES CANCELLED IN ACCORDANCE WITH ITS PRACTICE IN SUCH MATTERS, YOU ARE ADVISED THAT AN EXAMINATION OF THE PROCEDURE USED FOR ACHIEVING CANCELLATION OF OTHER RATE TENDERS INVOLVING THIS CARRIER WHICH WERE CANCELLED BEFORE AND AFTER TENDER NO. 48-A ISSUED, FAILS TO SUPPORT SUCH ASSERTION. LONG TRANSPORTATION COMPANY - RAYMOND MOTOR TRANSPORTATION, INC. OPERATOR OF MINNESOTA-ILLINOIS TRUCK LINE JOINT TENDER NO. 29, WHICH ISSUED JULY 1, 1955, EFFECTIVE THE SAME DAY, QUOTING AND OFFERING RATES ON SHIPMENTS OF CONTAINERS, WAS CANCELLED BY JOINT TENDER NO. 29, SUPP. 1, ISSUED DECEMBER 10, 1957, EFFECTIVE JANUARY 15, 1958, AND MADE NO REFERENCE TO THE RATES CANCELLED. LONG TRANSPORTATION COMPANY TENDER NO. 30 WHICH ISSUED JUNE 22, 1954, EFFECTIVE JUNE 26, 1954, QUOTING AND OFFERING RATES ON SHIPMENTS OF MACHINERY AND/OR MACHINERY PARTS WAS CANCELLED BY LONG TRANSPORTATION COMPANY TENDER NO. 57 ISSUED OCTOBER 25, 1944, EFFECTIVE THE SAME DAY, AND NAMED NEW RATES. THE SAID TENDER NO. 57 WAS IN TURN CANCELLED BY TENDER NO. 57, SUPP. 1, ISSUED DECEMBER 10, 1957, EFFECTIVE JANUARY 15, 1958, AND MADE NO REFERENCE TO THE RATES CANCELLED. LONG TRANSPORTATION COMPANY TENDER NO. 14 WHICH ISSUED MARCH 1, 1952, EFFECTIVE THE SAME DAY QUOTING AND OFFERING A RATE ON SHIPMENTS OF ARMY TRACTOR TANK PARTS, WAS CANCELLED BY LONG TRANSPORTATION COMPANY TENDER NO. 18 ISSUED JUNE 11, 1952, EFFECTIVE THE SAME DAY NAMING A DIFFERENT RATE. TENDER NO. 18 IN TURN WAS CANCELLED BY TENDER NO. 18, SUPP. 1, ISSUED DECEMBER 9, 1957, EFFECTIVE JANUARY 15, 1958, AND MADE NO REFERENCE TO THE RATES CANCELLED. LONG TRANSPORTATION COMPANY - WARD TRUCKING CORP. JOINT TENDER NO. 8 WHICH ISSUED JUNE 5, 1951, EFFECTIVE JUNE 6, 1951, NAMING CLASS RATES ON ALL COMMODITIES WAS CANCELLED BY JOINT TENDER NO. 13 WHICH ISSUED DECEMBER 24, 1951, EFFECTIVE THE SAME DAY NAMING NEW RATES. JOINT TENDER NO. 13 IN TURN WAS CANCELLED BY AN UNNUMBERED NOTICE WHICH ISSUED JANUARY 16, 1953, EFFECTIVE JANUARY 28, 1953, AND MADE NO REFERENCE TO THE RATES CANCELLED. LONG TRANSPORTATION COMPANY - GORDY FREIGHT LINES, INC. JOINT TENDER NO. 45, WHICH ISSUED JULY 30, 1954, EFFECTIVE AUGUST 2, 1954, QUOTING AND OFFERING RATES ON FREIGHT OF ALL KINDS (EXCEPT AS LISTED THEREIN) WAS CANCELLED BY LONG TRANSPORTATION COMPANY - J. P. WARD TRUCKING COMPANY - SOMMER'S MOTOR LINES JOINT TENDER NO. 45-A ISSUED FEBRUARY 5, 1955, EFFECTIVE MARCH 9, 1955, NAMING AND QUOTING THE IDENTICAL RATES APPEARING IN THE ORIGINAL QUOTATION. THE RECORD SHOWS THAT JOINT TENDER NO. 45-A HAS NOT BEEN CANCELLED IN WRITING. THE FOREGOING EXAMPLES ARE SUFFICIENT TO POINT OUT THAT THERE IS NO BASIS FOR THE CARRIER'S ASSERTION THAT TENDER NO. 48-A WAS ISSUED ONLY FOR THE PURPOSE OF CANCELLING TENDER NO. 48 AND IDENTIFYING THE RATES CANCELLED IN ACCORDANCE WITH ITS PRACTICE.

THE JOINT TENDER NO. 48-A IN QUESTION WAS EXECUTED ON DEPARTMENT OF DEFENSE DD FORM 663, AND IS ENTITLED "UNIFORM TENDER OF MOTOR CARRIER RATES OR CHARGES.' PARAGRAPH 1 OF DD FORM 663 STATES THAT THE AGENTS OF THE THREE CARRIERS INVOLVED ARE AUTHORIZED TO AND DO QUOTE AND OFFER TO THE UNITED STATES ARMY AND AIR FORCE PURSUANT TO SECTION 22 OF INTERSTATE COMMERCE ACT THE TRANSPORTATION SERVICES APPLICABLE TO PROPERTY DESCRIBED THEREIN SHIPPED BY OR FOR THE GOVERNMENT ON GOVERNMENT BILLS OF LADING, OR ON COMMERCIAL BILLS OF LADING ENDORSED TO SHOW THAT SUCH BILLS OF LADING WILL BE EXCHANGED FOR GOVERNMENT BILLS OF LADING AT DESTINATION "FOR THE CHARGES AND UNDER AND SUBJECT TO THE TERMS AND CONDITIONS" STATED THEREIN. PARAGRAPHS 3D AND 3F OF THE FORM ARE ENTITLED "RATE/S)" AND MINIMUM WEIGHT," RESPECTIVELY. IN THE SPACE PROVIDED IN BOTH PARAGRAPHS 3D AND 3F APPEARS THE NOTATION "SEE REVERSE SIDE.' THE REVERSE OF THE FORM CONTAINS VARIOUS RATES INCLUDING THE RATE OF $3.52 PER 100 POUNDS APPLICABLE ON SHIPMENTS OVER 5,000 POUNDS BETWEEN SHELBY, OHIO, AND ALL POINTS IN THE STATE OF MASSACHUSETTS. PARAGRAPH 9 OF THE FORM ENTITLED "TERMINATION OR MODIFICATION OF TENDER" PROVIDES:

"THIS TENDER MAY BE CANCELLED OR MODIFIED BY WRITTEN NOTICE OF NOT LESS THAN SIXTY (60) DAYS BY EITHER PARTY TO THE OTHER, EXCEPT AS TO SHIPMENTS MADE FROM ORIGINAL POINT OF SHIPMENT (OR PORT OF IMPORTATION, WHERE INVOLVED) BEFORE THE EFFECTIVE DATE OF SUCH NOTICE, AND EXCEPT AS TO ANY ACCRUED RIGHTS AND LIABILITIES OF EITHER PARTY HEREUNDER, AND, FURTHER, EXCEPT SUCH CANCELLATION OR MODIFICATION MAY BE ACCOMPLISHED UPON SHORTER NOTICE BY MUTUAL AGREEMENT OF THE PARTIES CONCERNED.'

THUS, WHILE TENDER NO. 48-A CANCELS TENDER NO. 48 IT IS A CONTINUING UNILATERAL OFFER IN AND OF ITSELF REISSUING THE RATES NAMED THEREIN WHICH, AS PROVIDED IN PARAGRAPH 10 THEREOF, RIPENS INTO AN AGREEMENT OR CONTRACT WHEN ACCEPTED BY THE GOVERNMENT "BY MAKING ANY SHIPMENT OR SETTLEMENT" UNDER ITS TERMS. MOREOVER, THE ARMY CONSIDERED THE DOCUMENT AS A CONTINUING OFFER BECAUSE IN RESPONSE TO A REQUEST REGARDING THE STATUS OF TENDER NO. 48-A, THE CHIEF, NEGOTIATION BRANCH, FREIGHT DIVISION, MILITARY TRAFFIC MANAGEMENT AGENCY, WASHINGTON, D.C. REPORTED ON SEPTEMBER 30, 1958, THAT AN INVESTIGATION REVEALS THAT TENDER NO. 48-A IS STILL CURRENT.

SINCE TENDER NO. 48-A WAS A VALIDLY EXECUTED RATE TENDER VOLUNTARILY MADE TO THE GOVERNMENT PURSUANT TO SECTION 22 OF THE INTERSTATE COMMERCE ACT, 49 U.S.C. 314, AND ACCEPTED BY THE GOVERNMENT BY MAKING A SHIPMENT UNDER ITS TERMS SPECIFICALLY ROUTED VIA THE THREE CARRIERS NAMED THEREIN, THE RATES QUOTED IN SUCH TENDER MUST BE CONSIDERED APPLICABLE TO THE SHIPMENT.

THE SETTLEMENT MADE BY OUR TRANSPORTATION DIVISION WAS CONSISTENT WITH THE FOREGOING AND IS, THEREFORE, SUSTAINED.

Sep 27, 2016

Sep 22, 2016

Sep 21, 2016

Sep 20, 2016

Looking for more? Browse all our products here