B-146057, JAN. 16, 1962

B-146057: Jan 16, 1962

Additional Materials:

Contact:

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

 

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

FREIGHT TRANSPORTATION: REFERENCE IS MADE TO YOUR REQUESTS FOR REVIEW OF THE SETTLEMENTS DISALLOWING THE ABOVE CARRIERS' CLAIMS TO RECOVER DEDUCTIONS MADE FROM UNPAID BILLS IN ADJUSTMENT OF THE OVERCHARGES DETERMINED BY OUR OFFICE TO HAVE BEEN PAID ON OTHER BILLS COVERING VARIOUS SHIPMENTS WHICH MOVED DURING 1943 AND 1944 DESCRIBED GENERALLY ON THE BILLS OF LADING AS BODIES FREIGHT. FOR THIS TRANSPORTATION THE CARRIERS INVOLVED ORIGINALLY CLAIMED AND WERE PAID ON THE BASIS OF THE SECOND-CLASS RATING APPLICABLE ON "BODIES. IN OUR AUDIT OF THESE BILLS IT WAS DETERMINED THAT THESE SHIPMENTS WERE PROPERLY RATABLE ON THE FOURTH-CLASS BASIS APPLICABLE ON "BODIES. THE IDENTICAL ISSUE HERE INVOLVED WAS PREVIOUSLY CONSIDERED BY OUR OFFICE IN DECISION B-61883.

B-146057, JAN. 16, 1962

TO MR. RALPH D. YATES, FREIGHT TRANSPORTATION:

REFERENCE IS MADE TO YOUR REQUESTS FOR REVIEW OF THE SETTLEMENTS DISALLOWING THE ABOVE CARRIERS' CLAIMS TO RECOVER DEDUCTIONS MADE FROM UNPAID BILLS IN ADJUSTMENT OF THE OVERCHARGES DETERMINED BY OUR OFFICE TO HAVE BEEN PAID ON OTHER BILLS COVERING VARIOUS SHIPMENTS WHICH MOVED DURING 1943 AND 1944 DESCRIBED GENERALLY ON THE BILLS OF LADING AS BODIES FREIGHT, NOIBN, PARTLY K.D. (WOOD CARGO BODIES 80 BY 144 T.U.P. FORD).

FOR THIS TRANSPORTATION THE CARRIERS INVOLVED ORIGINALLY CLAIMED AND WERE PAID ON THE BASIS OF THE SECOND-CLASS RATING APPLICABLE ON "BODIES, FREIGHT, N.O.I., * * * S.U. OR PARTLY K.D. LOOSE OR IN PACKAGES, MINIMUM WEIGHT 10,000 POUNDS," AS PROVIDED IN ITEMS 10 AND 12, PAGE 17, OR ITEMS 19 AND 21, PAGE 17, NATIONAL MOTOR FREIGHT CLASSIFICATIONS NOS. 6 AND 7, RESPECTIVELY, DEPENDING ON THE DATE OF SHIPMENT. EACH SHIPMENT WEIGHED MORE THAN 10,000 POUNDS. IN OUR AUDIT OF THESE BILLS IT WAS DETERMINED THAT THESE SHIPMENTS WERE PROPERLY RATABLE ON THE FOURTH-CLASS BASIS APPLICABLE ON "BODIES, FREIGHT, OPEN TOP, WITHOUT SEAT CABS: BOX, RACK OR STAKE BODIES, K.D., SIDES, ENDS AND STAKES DETACHED, MINIMUM WEIGHT 20,000 POUNDS," AS PROVIDED IN ITEMS 14 AND 15 OR ITEMS 23 AND 24 OF THE NATIONAL MOTOR FREIGHT CLASSIFICATION NOS. 6 AND 7, RESPECTIVELY. YOU DO NOT NOW SUGGEST ANY PARTICULAR RATING AS BEING APPLICABLE BUT ASK THAT WE ESTABLISH CHARGES "AT AN APPROPRIATE LEVEL HIGHER THAN FOR THE BOX ALONE.'

THE IDENTICAL ISSUE HERE INVOLVED WAS PREVIOUSLY CONSIDERED BY OUR OFFICE IN DECISION B-61883, DATED APRIL 29, 1947, A COPY OF WHICH IS ENCLOSED. IN THAT DECISION IT WAS HELD THAT THE SAME TYPE OF CARGO BODIES AS COVERED BY THE PRESENT SETTLEMENTS WERE SUBJECT TO THE FOURTH-CLASS RATING AND RATE. IT WAS THEN INDICATED THAT THE MISDESCRIPTION ON THE BILLS OF LADING WOULD NOT OPERATE TO ENTITLE THE CARRIER TO RATES HIGHER THAN THOSE APPLICABLE ON THE ARTICLES IF PROPERLY DESCRIBED ON THE BILLS OF LADING, AND THAT EVEN IF THE QUESTIONED SHIPMENTS WERE TO BE PROPERLY DESCRIBED AS "BODIES, FREIGHT, N.O.I., " THE APPLICABLE RATES WOULD BE BASED ON THE FOURTH-CLASS RATING NAMED IN ITEM 22 OF CLASSIFICATION NO. 7. AS THE ARMY WAS SHOWN TO HAVE REPORTED, NOT ONLY DID ITEM 23 OF CLASSIFICATION NO. 7 ACCURATELY AND ADEQUATELY DESCRIBE THE FREIGHT CARGO BODIES CONCERNED BUT ITEM 24 ITSELF SPECIFICALLY DESCRIBED THE MANNER OF SHIPMENT. THE "TWO UNIT PACK" WAS MERELY THE PACKAGE FORM IN WHICH THESE CARGO BODIES WERE TENDERED FOR SHIPMENT, AND NOT THE ARTICLE SHIPPED AS YOU NOW SEEM TO SUGGEST.

YOUR ALLEGATION THAT THE RATING OF THE SUBJECT SHIPMENTS ON WHICH THE ALLOWABLE CHARGES ARE BASED WAS TO BE APPLIED ON A "RELATIVELY SHALLOW EMPTY BOX" IS WITHOUT MERIT. AS EXPLAINED AT PAGE 3, IN OUR DECISION B- 61883, IN ORDER TO FORM THE "TWO UNIT PACK" TWO OF THE BODIES WERE COMPLETELY DISASSEMBLED OR KNOCKED DOWN, PRACTICALLY ALL PARTS OF THE TWO BODIES WERE FASTENED TO THE INVERTED BOTTOM OF THE FLOOR OF ONE BODY, AND THE FLOOR OF THE OTHER BODY WAS THEN PLACED ON THE FIRST BODY FLOOR TO FORM THE TOP OF THE PACKAGE. THUS, THE "TWO UNIT PACK" CONTAINED ALL THE COMPONENTS OF "BODIES, FREIGHT, OPEN TOP, WITHOUT SEAT CABS," ON WHICH WE APPLIED THE FOURTH-CLASS RATES.

ACCORDINGLY, SINCE THE DISALLOWANCES IN OUR SEVERAL SETTLEMENTS WERE CONSISTENT WITH OUR DECISION B-61883, DATED APRIL 29, 1947, AND HAVE NOT BEEN SHOWN TO HAVE BEEN IN ERROR OTHERWISE, THEY ARE SUSTAINED.