B-147408, APR. 20, 1962

B-147408: Apr 20, 1962

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TO THE ILLINOIS CENTRAL RAILROAD: FURTHER REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 9. YOUR CLAIM IS FOR ADDITIONAL CHARGES FOR THE TRANSPORTATION OF EIGHT CARLOADS OF AMMUNITION FOR CANNON WITH EXPLOSIVE PROJECTILES FROM ARSENAL. FOR SUCH SERVICES YOU ORIGINALLY BILLED AND WERE PAID A TOTAL OF $26. UPON OUR AUDIT OF THE VOUCHER EVIDENCING SUCH PAYMENT IT WAS DETERMINED THAT YOU HAD BEEN OVERPAID IN THE AMOUNT OF $12. WHICH WAS ULTIMATELY DEDUCTED FROM AMOUNTS DUE ON YOUR BILL AF 2-61218. YOUR CLAIM FOR REFUND IS BASED ON THE APPLICATION OF THE 50 PERCENT PACKING PENALTY CHARGE ASSESSABLE UNDER ITEM 615 OF TRANSCONTINENTAL FREIGHT BUREAU EASTBOUND TARIFF NO. 3-R. YOU STATE THAT THE PACKAGING PENALTY APPLIES BECAUSE THE COMMODITIES WERE PACKAGED IN "BUNDLES.

B-147408, APR. 20, 1962

TO THE ILLINOIS CENTRAL RAILROAD:

FURTHER REFERENCE IS MADE TO YOUR LETTER DATED OCTOBER 9, 1961, FILE G-WQ -57621-BG, 57623 AND 62355, REQUESTING A REVIEW OF THE SETTLEMENT CERTIFICATE DATED OCTOBER 19, 1960, WHICH DISALLOWED YOUR CLAIM, PER SUPPLEMENTAL BILL WQ-57621-A, FOR $12,721.30.

YOUR CLAIM IS FOR ADDITIONAL CHARGES FOR THE TRANSPORTATION OF EIGHT CARLOADS OF AMMUNITION FOR CANNON WITH EXPLOSIVE PROJECTILES FROM ARSENAL, UTAH, TO FORT KNOX, KENTUCKY, ON BILLS OF LADING WV 6060465, WV-6060466, WV-6060544, WV-6060611, WV-6060612, WV-6060613, WV-6060614 AND WV-6060615, IN JANUARY 1945. FOR SUCH SERVICES YOU ORIGINALLY BILLED AND WERE PAID A TOTAL OF $26,665.73. UPON OUR AUDIT OF THE VOUCHER EVIDENCING SUCH PAYMENT IT WAS DETERMINED THAT YOU HAD BEEN OVERPAID IN THE AMOUNT OF $12,721.30, WHICH WAS ULTIMATELY DEDUCTED FROM AMOUNTS DUE ON YOUR BILL AF 2-61218. YOUR CLAIM FOR REFUND IS BASED ON THE APPLICATION OF THE 50 PERCENT PACKING PENALTY CHARGE ASSESSABLE UNDER ITEM 615 OF TRANSCONTINENTAL FREIGHT BUREAU EASTBOUND TARIFF NO. 3-R, I.C.C. NO. 1506. YOU STATE THAT THE PACKAGING PENALTY APPLIES BECAUSE THE COMMODITIES WERE PACKAGED IN "BUNDLES," AND THAT SUCH "BUNDLES" ARE NOT FIRST-CLASS PACKAGES WITHIN THE MEANING OF ITEM 615.

THE AFOREMENTIONED ITEM 615, SO FAR AS PERTINENT HERE, READS AS FOLLOWS:

"PACKAGE REQUIREMENTS

"UNLESS OTHERWISE SPECIFICALLY PROVIDED IN INDIVIDUAL RATE ITEMS, RATES NAMED IN TARIFF APPLY ON THE ARTICLES SPECIFIED AND IN THE PACKAGES PRESCRIBED, SUBJECT TO THE FOLLOWING:

"/A) UNLESS OTHERWISE PROVIDED, THE VARIOUS KINDS OF PACKAGES NAMED IN THE COMMODITY RATE ITEMS OF THIS TARIFF MUST MEET THE REQUIREMENTS SPECIFIED BELOW AND WILL BE CLASSIFIED AS FOLLOWS:

"FIRST CLASS PACKAGES

"/B) BOXES (NOT CHESTS OR TRUNKS), BARRELS, DRUMS, CASKS, HOGSHEADS, KEGS, FIRKINS, KITS, PAILS, PUNCHEONS, TIERCES AND TUBS, MADE ENTIRELY OF WOOD OR WOOD AND METAL, COMPLETELY ENCLOSING THE CONTENTS.

"NOTE.--- UNLESS OTHERWISE PROVIDED, RATES ON ARTICLES IN WOODEN BOXES APPLY ON THE SAME ARTICLES IN FIBREBOARD, PULPBOARD OR DOUBLE FACED CORRUGATED FIBREBOARD BOXES WITH OR WITHOUT WOODEN FRAMES, OR FIBRE BARRELS, DRUMS OR PAILS, PROVIDED THE REQUIREMENTS AND SPECIFICATIONS NAMED IN RULE 41 OF THE WESTERN CLASSIFICATION ARE FULLY COMPLIED WITH.

IN ADDITION TO THE FOREGOING, ITEM 654 OF TRANSCONTINENTAL TARIFF 3-R PROVIDES THAT SHIPPING CONTAINERS, MARKING AND PACKING REQUIREMENTS AND THE HANDLING AND TRANSPORTATION OF EXPLOSIVES AND DANGEROUS ARTICLES OTHER THAN EXPLOSIVES MUST BE IN ACCORDANCE WITH THE RULES AND REGULATIONS PRESCRIBED IN THE DANGEROUS ARTICLES TARIFF (MF-I.C.C. NO. 4 SERIES). ITEM 16, PART III, OF THAT TARIFF PROVIDED THAT U.S. GOVERNMENT SHIPMENTS OF EXPLOSIVES OR OTHER DANGEROUS ARTICLES OFFERED BY OR CONSIGNED TO THE WAR OR NAVY DEPARTMENT OF THE UNITED STATES GOVERNMENT MUST BE PACKED, INCLUDING LIMITATIONS OF WEIGHT, IN ACCORDANCE WITH THE REGULATIONS CONTAINED THEREIN "OR AS REQUIRED BY THEIR REGULATIONS.'

THE RECORD HERE SHOWS THAT THE SO-CALLED "BUNDLE" IN WHICH THE CARTRIDGES WERE SHIPPED ACTUALLY WAS A SHIPPING PACKAGE ESPECIALLY DESIGNED FOR THE PURPOSE. THE PACKAGE CONSISTED OF THREE CARTRIDGES INDIVIDUALLY PACKED INTO THREE STRONG, CYLINDRICAL, LAMINATED FIBREBOARD CONTAINERS FITTED AT BOTH ENDS INTO CLOVERLEAF-SHAPED METAL FRAMES, WHICH WERE SECURED BY A BOLT RUNNING LENGTHWISE THROUGH THE CENTER OF THE CLOVERLEAF GROUP AND FASTENED WITH WASHERS AND THUMBSCREW, AND BY TWO METAL BANDS ENCIRCLING THE CLOVERLEAF NEAR EITHER END. EACH OF THE THREE CYLINDRICAL CONTAINERS OF WHICH THE CLOVERLEAF PACKAGE WAS MADE UP APPEAR TO SATISFY ALL OF THE ABOVE QUOTED REQUIREMENTS FOR A FIRST-CLASS PACKAGE UNDER ITEM 615 OF TARIFF 3-R, AS EXPLAINED IN THE QUOTED NOTE, AS WELL AS THE REQUIREMENTS OF ITEM 16, PART III OF THE DANGEROUS ARTICLES TARIFF. THE ADDITIONAL REINFORCEMENT PROVIDED BY THE CLOVERLEAF PACKAGE ASSEMBLY EVEN MORE CLEARLY PLACES THE PACKAGE WITHIN THE REQUIREMENT OF THE ABOVE MENTIONED APPLICABLE ITEMS. MOREOVER, THERE APPEARS TO BE NO ROOM FOR DOUBT THAT THE PACKAGE FALLS CLEARLY WITHIN THE CATEGORY OF A BOX AS THE TERM IS USED IN GULF, MOBILE AND OHIO RAILROAD COMPANY V. UNITED STATES, 305 I.C.C. 583, TO WHICH YOU REFERRED IN YOUR LETTER OF FEBRUARY 8, 1961. SEE ALSO, IN THIS CONNECTION, NEW ORLEANS AND NORTHEASTERN RAILROAD COMPANY V. UNITED STATES, 137 F.SUPP. 731 DEFINING A BOX. WE ARE ENCLOSING AN ILLUSTRATION OF THE CLOVERLEAF PACKAGE OF THE TYPE HERE INVOLVED, FOR YOUR INFORMATION. SEE, ALSO, OUR DECISION TO YOU DATED JUNE 4, 1959, B-134949, IN CONNECTION WITH YOUR BILL WQ-67577-A.

ACCORDINGLY, IT IS OUR VIEW THAT THE PACKAGING HERE INVOLVED FULLY MET ALL THE REQUIREMENTS FOR A FIRST-CLASS PACKAGE WITHIN THE MEANING OF THE APPLICABLE TARIFF ITEMS, AND THAT THE 50 PERCENT PENALTY NAMED IN ITEM 615 OF TRANSCONTINENTAL FREIGHT BUREAU EASTBOUND TARIFF NO. 3 R IS NOT ..END :