B-148848, JUL. 26, 1962

B-148848: Jul 26, 1962

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TO ASHWORTH TRANSFER COMPANY: REFERENCE IS MADE TO YOUR LETTER OF MAY 3. FOR THIS SERVICE YOU BILLED AND WERE PAID CHARGES IN THE AMOUNT OF $1. ALTHOUGH EXCLUSIVE USE OF THE VEHICLE WAS REQUESTED AND FURNISHED. IT WAS CONSIDERED THAT THE CHARGES WERE UNREASONABLE IN THAT THEY EXCEEDED THE CHARGES COMPUTED AT THE TRUCKLOAD RATE OF $3.95 PER 100 POUNDS APPLIED TO THE ACTUAL WEIGHT. THE APPLICATION OF THIS BASIS RESULTED IN A CONSIDERED OVERPAYMENT OF $893.09 WHICH AMOUNT WAS SUBSEQUENTLY COLLECTED. YOU HAVE NOW BEEN ALLOWED CHARGES OF $1. THIS SETTLEMENT WAS BASED ON THE APPLICABLE CHARGES FOR EXCLUSIVE USE OF VEHICLE AS PROVIDED IN ITEM 935 OF ROCKY MOUNTAIN MOTOR TARIFF BUREAU TRANSCONTINENTAL TERRITORIAL DIRECTORY NO. 20-B.

B-148848, JUL. 26, 1962

TO ASHWORTH TRANSFER COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF MAY 3, 1962, REQUESTING REVIEW OF CERTIFICATE OF SETTLEMENT OF NOVEMBER 22, 1961, WHICH DISALLOWED $405.67 OF THE $893.09 CLAIMED ON BILL NO. 15620 FOR ADDITIONAL FREIGHT CHARGES FOR THE TRANSPORTATION OF JET THRUST UNITS (ROCKET MOTORS) FROM REDSTONE ARSENAL, ALABAMA, TO HILL AIR FORCE BASE, UTAH, UNDER GOVERNMENT BILL OF LADING WY-8306309, DATED APRIL 23, 1958.

FOR THIS SERVICE YOU BILLED AND WERE PAID CHARGES IN THE AMOUNT OF $1,985.27, COMPUTED AT A RATE OF $7.18 PER 100 POUNDS ON THE ACTUAL WEIGHT OF 27,650 POUNDS. IN OUR AUDIT OF THE PAYMENT VOUCHER, ALTHOUGH EXCLUSIVE USE OF THE VEHICLE WAS REQUESTED AND FURNISHED, IT WAS CONSIDERED THAT THE CHARGES WERE UNREASONABLE IN THAT THEY EXCEEDED THE CHARGES COMPUTED AT THE TRUCKLOAD RATE OF $3.95 PER 100 POUNDS APPLIED TO THE ACTUAL WEIGHT. THE APPLICATION OF THIS BASIS RESULTED IN A CONSIDERED OVERPAYMENT OF $893.09 WHICH AMOUNT WAS SUBSEQUENTLY COLLECTED. YOU PRESENTED FREIGHT BILL 15620 (CLAIMANT'S NO. 5185) SUPPLEMENTAL TO BILL NO. 15620 RECLAIMING THE AMOUNT WHICH HAD BEEN COLLECTED. OUR OFFICE ALLOWED YOU $487.42 OF THE AMOUNT CLAIMED AND DISALLOWED THE BALANCE OF $405.67 ($893.09 LESS $487.42). THUS, YOU HAVE NOW BEEN ALLOWED CHARGES OF $1,579.60 ($1,985.27 LESS $893.09 PLUS $487.42) IN CONNECTION WITH THIS SHIPMENT. THIS SETTLEMENT WAS BASED ON THE APPLICABLE CHARGES FOR EXCLUSIVE USE OF VEHICLE AS PROVIDED IN ITEM 935 OF ROCKY MOUNTAIN MOTOR TARIFF BUREAU TRANSCONTINENTAL TERRITORIAL DIRECTORY NO. 20-B, MF-I.C.C.NO. 101. YOUR REQUEST FOR REVIEW OF THIS SETTLEMENT YOU STATE:

"THIS BILL WAS RATED IN CONFORMITY WITH TARIFF PROVISIONS (EXCLUSIVE USE OF VEHICLE) OF WHICH THE SUPREME COURT SAYS CANNOT BE IGNORED.

"WE WISH TO REFER TO U.S. SUPREME COURT DECISION NO. 359-US-464.'

ALTHOUGH THE ORIGINAL AUDIT, AS INDICATED BY OUR FORM 1003 OF SEPTEMBER 10, 1958, WAS BASED UPON UNREASONABLENESS OF CHARGES WHICH PRINCIPLE HAS SINCE BEEN ABROGATED BY THE DECISION OF THE SUPREME COURT IN T.I.M.E., INC. V. UNITED STATES, 359 U.S. 464, OUR SETTLEMENT OF NOVEMBER 22, 1961, WAS NOT BASED UPON REASONABLENESS OF RATES BUT RATHER UPON THE APPLICABLE TARIFF PROVISIONS. THE SETTLEMENT CHARGES WERE BASED UPON ITEM 935--- CHARGES FOR EXCLUSIVE USE OF VEHICLE--- 1ST REVISED PAGE 129, EFFECTIVE MARCH 29, 1958, OF RMMTB TARIFF NO. 20 B, MF-I.C.C.NO. 101 WHICH READS IN PERTINENT PART AS FOLLOWS:

"* * * WHEN A SHIPPER * * * REQUESTS THE EXCLUSIVE USE OF A VEHICLE, THE CHARGE FOR EACH SUCH VEHICLE SHALL BE THE CHARGE FOR THE ACTUAL WEIGHT, OR THE AUTHORIZED MINIMUM WEIGHT, WHICHEVER IS GREATER AT THE RATES APPLICABLE, SUBJECT TO A MINIMUM CHARGE COMPUTED ON A WEIGHT OF 22,000 POUNDS AT THE CLASS 100 RATE * * *.'

UNDER THIS ITEM THE ACTUAL WEIGHT OF 27,650 POUNDS AT THE APPLICABLE RATE OF $3.95 PER 100 POUNDS (TRUCKLOAD RATE PUBLISHED IN ITEM 660 RRMTB TARIFF NO. 21-A, MF-I.C.C.NO. 95) PRODUCES CHARGES OF $1,092.18, BUT ITEM 935 PROVIDES A MINIMUM CHARGE OF 22,000 POUNDS AT THE CLASS 100 RATE ($7.18 PER 100 POUNDS) WHICH IN THIS CASE RESULTS IN CHARGES OF $1,579.60. SINCE ITEM 935 STATES THAT YOU USE THE CHARGE "WHICHEVER IS GREATER," WE USED CHARGES OF $1,579.60 IN THE SETTLEMENT OF NOVEMBER 22, 1961.

ACCORDINGLY, SINCE THE SETTLEMENT WAS BASED UPON THE APPLICABLE TARIFF PROVISIONS AND INVOLVED NO PRINCIPLES CONTRARY TO THE T.I.M.E., INC. CASE, IT APPEARS CORRECT AND IS SUSTAINED.