B-158024, APR. 7, 1966

B-158024: Apr 7, 1966

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TO THE UNION PACIFIC RAILROAD COMPANY: FURTHER REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 8. 011.24 ORIGINALLY WERE COLLECTED FOR THIS SERVICE. THE INDICATED OVERCHARGE OF $420.24 WAS SUBSEQUENTLY DEDUCTED FROM ONE OF YOUR CURRENT BILLS. IS NAMED IN ITEM NO. 3 OF PACIFIC SOUTH COAST FREIGHT BUREAU SECTION 22 QUOTATION NO. 191-B. THE NOTE STATES THAT THE RATE NAMED WILL NOT APPLY ON AMMUNITION OR EXPLOSIVES. REFERENCE TO THE QUOTATION IS SHOWN ON THE BILL OF LADING IN THE SPACE PROVIDED FOR TARIFF OR SPECIAL RATE AUTHORITIES. THE BASIS FOR YOUR REQUEST FOR REVIEW IS THAT THE COMMODITY SHIPPED . - IS SPECIFICALLY CLASSIFIED IN ITEM NO. 69093 OF UNIFORM FREIGHT CLASSIFICATION (UFC) NO. 6 AND THAT THE ITEM DOES NOT COME UNDER THE GENERIC HEADING OF "ORDNANCE.

B-158024, APR. 7, 1966

TO THE UNION PACIFIC RAILROAD COMPANY:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF NOVEMBER 8, 1965, FILE GW- 296163, REQUESTING REVIEW OF OUR SETTLEMENT CERTIFICATE (CLAIM NO. TK- 793866), DATED AUGUST 26, 1965, WHICH DISALLOWED YOUR CLAIM FOR $420.24, ADDITIONAL FREIGHT CHARGES IN CONNECTION WITH A SHIPMENT OF MOBILE MISSILE GUIDANCE CONTROL SYSTEMS ON GOVERNMENT BILL OF LADING NO. B-4089109, FROM BENICIA ARSENAL, CALIFORNIA, TO TOOELE ARMY DEPOT, TOOELE, UTAH, IN SEPTEMBER 1962.

FREIGHT CHARGES OF $1,011.24 ORIGINALLY WERE COLLECTED FOR THIS SERVICE, BASED ON THE USE OF A SECOND CLASS RATE OF $4.21 PER 100 POUNDS AT THE ACTUAL WEIGHT OF 24,020 POUNDS. OUR TRANSPORTATION DIVISION DETERMINED THAT THE PROPER CHARGES FOR THE SERVICE PERFORMED SHOULD BE $591.00, USING A RATE OF $1.97 PER 100 POUNDS AT A MINIMUM WEIGHT OF 30,000 POUNDS. THE INDICATED OVERCHARGE OF $420.24 WAS SUBSEQUENTLY DEDUCTED FROM ONE OF YOUR CURRENT BILLS.

THE RATE OF $1.97 PER 100 POUNDS, SUBJECT TO A MINIMUM WEIGHT OF 30,000 POUNDS, IS NAMED IN ITEM NO. 3 OF PACIFIC SOUTH COAST FREIGHT BUREAU SECTION 22 QUOTATION NO. 191-B, WHICH APPLIES ON ,ORDNANCE SUPPLIES (SEE NOTE), IN STRAIGHT OR MIXED CARLOADS.' THE NOTE STATES THAT THE RATE NAMED WILL NOT APPLY ON AMMUNITION OR EXPLOSIVES. REFERENCE TO THE QUOTATION IS SHOWN ON THE BILL OF LADING IN THE SPACE PROVIDED FOR TARIFF OR SPECIAL RATE AUTHORITIES.

THE BASIS FOR YOUR REQUEST FOR REVIEW IS THAT THE COMMODITY SHIPPED -- MOBILE MISSILE GUIDANCE CONTROL SYSTEMS--- IS SPECIFICALLY CLASSIFIED IN ITEM NO. 69093 OF UNIFORM FREIGHT CLASSIFICATION (UFC) NO. 6 AND THAT THE ITEM DOES NOT COME UNDER THE GENERIC HEADING OF "ORDNANCE," AS NAMED IN ITEM NO. 72705 OF THAT CLASSIFICATION. IN OTHER WORDS, YOU APPARENTLY CONSTRUE THE WORDS ,ORDNANCE SUPPLIES," AS SHOWN IN QUOTATION NO. 191-B, IN THE LIGHT OF THE COMMODITY DESCRIPTIONS IN CLASSIFICATION NO. 6.

IT IS NOTED, HOWEVER, THAT THE QUOTATION IN QUESTION NAMES RATES ON "ORDNANCE SUPPLIES," AND NOTHING IN THE QUOTATION INDICATES THAT THE TERM COVERS ONLY ARTICLES LISTED UNDER THE GENERIC HEADING OF "ORDNANCE" IN THE CLASSIFICATION. THE FACT THAT THE TERM IN THE QUOTATION MAY BE GIVEN A BROADER MEANING THAN URGED BY YOU IS INDICATED BY THE NOTE IN ITEM NO. 3 OF THE QUOTATION, WHICH STATES THAT THE RATES (ON ORDNANCE SUPPLIES) WILL NOT APPLY ON AMMUNITION AND EXPLOSIVES. NEITHER OF THESE COMMODITIES IS CLASSIFIED UNDER THE GENERIC HEADING OF "ORDNANCE" IN CLASSIFICATION NO. 6 AND THE NOTE IN ITEM NO. 3 WOULD NOT BE REQUIRED IF THE ITEM APPLIED ONLY ON ARTICLES NAMED UNDER THE GENERIC HEADING OF "ORDNANCE" IN THE CLASSIFICATION. THUS, THE SPECIFIC EXCLUSION OF ARTICLES NOT COVERED BY THE CLASSIFICATION PROVISION WOULD SEEM TO IMPLY THAT OTHER ARTICLES, ALSO NOT COVERED BY THE CLASSIFICATION HEADING BUT PROPERLY VIEWED AS BEING ORDNANCE SUPPLIES IN A BROADER SENSE OF THE TERM, ARE WITHIN THE SCOPE OF QUOTATION NO. 191-B.

WERE IT THE INTENTION OF THE PARTIES TO QUOTATION NO. 191-B THAT THE TERM "ORDNANCE SUPPLIES" WAS TO INCLUDE ONLY ARTICLES LISTED UNDER THE HEADING OF ORDNANCE" IN THE CLASSIFICATION, THE QUOTATION SHOULD HAVE SO PROVIDED. IN THIS CONNECTION, IT IS HELPFUL TO CONSIDER THE PROVISIONS OF PACIFIC SOUTH COAST FREIGHT BUREAU SECTION 22 QUOTATION NO. 234-E, EFFECTIVE FEBRUARY 20, 1962, APPLYING ON "MACHINERY OR MACHINERY PARTS," FROM CLEAR FIELD AND OGDEN, UTAH, TO CALIFORNIA DESTINATIONS. AMENDMENT NO. 1 TO THIS QUOTATION, ISSUED APRIL 17, 1962, BUT EFFECTIVE FEBRUARY 20, 1962, CHANGES THE COMMODITY DESCRIPTION TO READ: "MACHINERY OR MACHINES, OR PARTS THEREOF, AS DESCRIBED UNDER THAT HEADING IN UFC.' OBVIOUSLY, IN THAT INSTANCE APPROPRIATE ACTION WAS TAKEN BY THE FRAMERS OF THE QUOTATION TO LIMIT THE SCOPE OF THE BROAD COMMODITY DESCRIPTION USED.

IN THE CIRCUMSTANCES, WE CONCLUDE THAT THE WORDS "ORDNANCE SUPPLIES," AS USED IN QUOTATION NO. 191-B, ARE NOT QUALIFIED BY THE LISTING OF "ORDNANCE" ARTICLES IN THE UNIFORM FREIGHT CLASSIFICATION BUT, RATHER, MUST BE GIVEN A BROADER SIGNIFICANCE AS REFLECTED ON PAGE 383 OF ARMY REGULATION 320-5, JANUARY 1961, DEFINING ORDNANCE SUPPLIES AS---

"ALL MILITARY SUPPLIES ASSIGNED TO THE ORDNANCE CORPS FOR STORAGE, ISSUE, AND MAINTENANCE. ORDNANCE SUPPLIES CONSIST OF ALL RAW MATERIALS, COMPLETELY MANUFACTURED ARTICLES, AND PARTS OF SUCH ARTICLES ASSIGNED TO THE ORDNANCE CORPS.' AS STATED IN YOUR REQUEST FOR REVIEW THE COMMODITY IN QUESTION IS A MOBILE MISSILE GUIDANCE CONTROL SYSTEM, AND THE BILL OF LADING SHOWS THAT THE SHIPMENT IS UNDER THE CONTROL OF THE ORDNANCE FIELD SERVICE PROPERTY OFFICER, WHO IS A MEMBER OF THE ARMY ORDNANCE CORPS.

IT IS BELIEVED, THEREFORE, THAT THE ARTICLES SHIPPED ARE PROPERLY EMBRACED WITHIN THE DESCRIPTION OF "ORDNANCE SUPPLIES," AS SHOWN IN QUOTATION NO. 191-B. SINCE OUR SETTLEMENT WAS MADE ON THE BASIS OF THE RATE NAMED IN THE QUOTATION IT IS CORRECT AND THE DISALLOWANCE OF YOUR CLAIM IS SUSTAINED.