B-145881, NOV. 2, 1961

B-145881: Nov 2, 1961

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B. JAMES FREIGHT LINES: REFERENCE IS MADE TO YOUR LETTER OF MAY 11. FOR THIS SERVICE YOU BILLED AND WERE PAID CHARGES OF $754.56 ON VOUCHER 209774 IN THE JULY 1953 ACCOUNTS OF NAVY DISBURSING OFFICER FRITZ R. THESE CHARGES WERE COMPUTED ON THE BASIS OF A COMMODITY RATE (FREIGHT. " IS AN INTERNAL COMBUSTION ENGINE UPON WHICH COMMODITY RATES IN SWMTB QUOTATION NO. 1-A ARE NOT APPLICABLE BEING SPECIFICALLY EXCLUDED THEREFROM BY SECTION 5. THE ONLY APPLICABLE RATES FOR THIS SHIPMENT ARE CLASS RATES. INDICATING THE VIEW THAT THE CHARGES ORIGINALLY BILLED WERE CORRECT. IN YOUR REQUEST FOR REVIEW YOU REITERATE YOUR CONTENTION THAT THE QUICK CHANGE UNIT IS AN INTERNAL COMBUSTION ENGINE AND THEREFORE THE RATES IN ITEM 585 SWMTB QUOTATION 1-A ARE NOT APPLICABLE.

B-145881, NOV. 2, 1961

TO A. B. JAMES FREIGHT LINES:

REFERENCE IS MADE TO YOUR LETTER OF MAY 11, 1961, FILE NO. N-821/53 UC- 127 299665-C TK-709700, REQUESTING REVIEW OF OUR SETTLEMENT CERTIFICATE OF MAY 3, 1961, WHICH DISALLOWED YOUR CLAIM FOR ADDITIONAL FREIGHT CHARGES OF $249.39 ON A SHIPMENT MOVING FROM ALAMEDA, CALIFORNIA, TO NORTH ISLAND, CALIFORNIA, UNDER GOVERNMENT BILL OF LADING N-22231704, DATED JUNE 27, 1953.

FOR THIS SERVICE YOU BILLED AND WERE PAID CHARGES OF $754.56 ON VOUCHER 209774 IN THE JULY 1953 ACCOUNTS OF NAVY DISBURSING OFFICER FRITZ R. KAHN, SYMBOL 369. THESE CHARGES WERE COMPUTED ON THE BASIS OF A COMMODITY RATE (FREIGHT, ALL KINDS) OF 80 CENTS PER 100 POUNDS ON 94,320 POUNDS (6,288 CUBIC FEET AT 15 POUNDS PER CUBIC FOOT UNDER A DEFICIT WEIGHT RULE FOR LIGHT AND BULKY SHIPMENTS IN ITEM 85) PUBLISHED IN ITEM 585, SECTION 5, SOUTHWESTERN MOTOR TARIFF BUREAU LOCAL U.S. GOVERNMENT QUOTATION NO. 1-A.

YOU PRESENTED SUPPLEMENTAL BILL NO. N 821 CLAIMING ADDITIONAL FREIGHT CHARGES OF $249.39, COMPUTED ON THE USE OF CLASS RATES FOR THE ENTIRE SHIPMENT. YOU CONTEND THAT ONE OF THE ARTICLES INCLUDED IN THE SHIPMENT, A "QUICK ENGINE CHANGE UNIT," IS AN INTERNAL COMBUSTION ENGINE UPON WHICH COMMODITY RATES IN SWMTB QUOTATION NO. 1-A ARE NOT APPLICABLE BEING SPECIFICALLY EXCLUDED THEREFROM BY SECTION 5, 2ND REVISED PAGE 69. YOU INDICATE THAT SINCE RATES IN SECTION 5 MAY NOT BE USED AS A FACTOR IN CONNECTION WITH ANY OTHER RATES TO MAKE THROUGH RATES, THE ONLY APPLICABLE RATES FOR THIS SHIPMENT ARE CLASS RATES. OUR OFFICE DISALLOWED YOUR CLAIM BY SETTLEMENT CERTIFICATE OF MAY 3, 1961, INDICATING THE VIEW THAT THE CHARGES ORIGINALLY BILLED WERE CORRECT.

IN YOUR REQUEST FOR REVIEW YOU REITERATE YOUR CONTENTION THAT THE QUICK CHANGE UNIT IS AN INTERNAL COMBUSTION ENGINE AND THEREFORE THE RATES IN ITEM 585 SWMTB QUOTATION 1-A ARE NOT APPLICABLE. THE ARTICLE IN QUESTION IS LISTED ON THE BILL OF LADING AS "QUICK ENGINE CHANGE NIT" WHICH IS DESCRIBED IN ITEM 1355 OF CONSOLIDATED FREIGHT CLASSIFICATION NO. 20, I.C.C. - O.C. NO. 64, UNDER THE GENERIC HEADING OF "AIRPLANES OR PARTS NAMED" AS "POWER PACKS (QUICK-ENGINE-CHANGE UNITS AND ENGINES COMBINED).' OUR OFFICE HAS INFORMATION OF RECORD THAT A POWER PACK CONSISTS OF AN INTERNAL COMBUSTION ENGINE AND OTHER AIRPLANE PARTS INCLUDING THE COWLING, COWLING AIR COOLER FAIRING, COWLING AIR SCOOPS, ANTI-DRAG RING, MOTOR MOUNT, BAFFLE AND EXHAUST COLLECTOR RINGS, TOGETHER WITH ALL NECESSARY WIRING TO MAKE IT A COMPLETE UNIT.

AT THE TIME THE SUBJECT SHIPMENT MOVED, JUNE 27, 1953, AIRPLANE OR AIRPLANE PARTS WERE NOT LISTED AS CONTRABAND IN CONNECTION WITH THE APPLICATION OF THE SECTION 5 COMMODITY RATES IN SWMTB QUOTATION NO. 1-A (2ND REVISED PAGE 69). IT IS NOTED, HOWEVER, THAT THE 3RD AND 4TH REVISED PAGES 69, DO EXCLUDE AIRPLANES OR PARTS NAMED AS DESCRIBED IN ITEMS 1285 TO 1390 OF THE CURRENT WESTERN CLASSIFICATION EFFECTIVE JULY 1, 1953, THREE DAYS SUBSEQUENT TO THE DATE OF SHIPMENT. HOWEVER, ON THE DATE OF SHIPMENT, THE COMMODITY IN QUESTION IS LISTED AS AN AIRPLANE PART IN THE APPLICABLE CLASSIFICATION, AND IS NOT EXCLUDED FROM THE SECTION 5 RATES. IT HAS LONG BEEN RECOGNIZED THAT THE RATE IN EFFECT ON THE DATE OF SHIPMENT IS THE LEGALLY APPLICABLE RATE. INTERSTATE REMEDY CO. V. AMERICAN EXPRESS CO., 16 I.C.C. 436; TRANSCONTINENTAL FREIGHT CO. V. DIRECTOR GENERAL, 62 I.C.C. 127, AND S. A. GERRARD CO. V. BELT RY.CO. OF CHICAGO, 270 I.C.C. 59.