B-167438, NOV. 14, 1969

B-167438, NOV. 14, 1969

ROUTES--SHORTEST V. ACTUAL DISALLOWANCE OF MOTOR CARRIER'S CLAIMS FOR ADDITIONAL CHARGES ALLEGED DUE ON THREE SHIPMENTS OF CLASS A EXPLOSIVES TRANSPORTED FROM YORKTOWN, VA; AND SIX SHIPMENTS OF CLASS C EXPLOSIVES TRANSPORTED FROM EDGEWOOD ARSENAL, MD; TO SOUTHPORT, N.C. VIA CHARLOTTE, N.C; POINT OF INTERCHANGE IS SUSTAINED, BECAUSE FOR PURPOSE OF DETERMINING APPLICABLE CHARGES MILEAGE IS TO BE DETERMINED IN ACCORDANCE WITH RULES IN HOUSEHOLD GOODS CARRIERS BUREAU, INC; MILEAGE GUIDE, INCORPORATED BY REFERENCE IN ITEM 50 OF TARIFF; THESE MILEAGE RULES PROVIDE THAT DISTANCE IS TO BE DETERMINED VIA SHORTEST PRACTICAL TRUCK ROUTE REGARDLESS OF ACTUAL ROUTE WHICH CARRIER SELECTS TO PERFORM TRANSPORTATION; THEREFORE, SHORTLINE MILEAGE IS TO BE DETERMINED BETWEEN ORIGIN OR RATE COMBINATION POINT AND DESTINATION WITHOUT REGARD TO FACT THAT SHIPMENTS MAY HAVE ACTUALLY MOVED VIA CHARLOTTE, N.C.

TO C.I. WHITTEN TRANSFER COMPANY:

SUBJECT: GAO FILE NO. TK-887788, YOUR FILE NOS. O/C 8-209, O/C 8 210, O/C 8-208, O/C 8-211, O/C 8-213, O/C 8-212, O/C 8-203, O/C 8-202, O/C 8-201

IN YOUR LETTER OF SEPTEMBER 2, 1969, YOU REQUEST REVIEW OF OUR DISALLOWANCE OF YOUR CLAIMS, BY BILL NO. 5220-A, IN THE AMOUNT OF $7,554.14 FOR ADDITIONAL CHARGES ALLEGED TO BE DUE ON THREE SHIPMENTS OF CLASS A EXPLOSIVES TRANSPORTED FROM YORKTOWN, VIRGINIA, AND SIX SHIPMENTS OF CLASS C EXPLOSIVES TRANSPORTED FROM EDGEWOOD ARSENAL, MARYLAND, TO SOUTHPORT, NORTH CAROLINA, DURING MAY 1967.

FOR THE TRANSPORTATION OF THE THREE SHIPMENTS OF CLASS A EXPLOSIVES YOU ORIGINALLY CLAIMED AND WERE PAID, PRIOR TO AUDIT BY THE GENERAL ACCOUNTING OFFICE, FREIGHT CHARGES COMPUTED ON THE BASIS OF THE MILEAGE RATE OF $2.43 PER HUNDRED POUNDS NAMED IN C. I. WHITTEN EXPLOSIVES TARIFF, MF-I.C.C. 56 FOR THE MILEAGE FOR THE ACTUAL ROUTE OF MOVEMENT VIA CHARLOTTE, NORTH CAROLINA, THE POINT OF INTERCHANGE WITH HUGHES TRANSPORTATION COMPANY. AUDIT OF THE PAYMENT VOUCHERS OUR OFFICE ISSUED NOTICES OF OVERCHARGE (FORM 1003) FOR REFUND OF OVERCHARGES RESULTING FROM THE APPLICATION OF RATES COMPUTED BY APPLYING THE SHORTLINE MILEAGE BETWEEN ORIGIN AND DESTINATION, DERIVED FROM THE HOUSEHOLD MILEAGE GUIDE ISSUED BY HOUSEHOLD GOODS CARRIERS BUREAU, TO THE TABLE OF MILEAGE RATES SET OUT IN C. I. WHITTEN TARIFF NO. 56, AND THE CHARGES WERE ADJUSTED ACCORDINGLY.

FOR THE TRANSPORTATION OF THE SIX SHIPMENTS OF CLASS C EXPLOSIVES YOU ORIGINALLY CLAIMED AND WERE PAID, PRIOR TO AUDIT BY THE GENERAL ACCOUNTING OFFICE, FREIGHT CHARGES COMPUTED ON THE BASIS OF COMBINATION RATES OVER CHARLOTTE, NORTH CAROLINA, THE POINT OF INTERCHANGE WITH HUGHES TRANSPORTATION, INC. ON AUDIT OF THE PAYMENT VOUCHERS OUR OFFICE ISSUED NOTICES OF OVERCHARGE (FORM 1003) FOR REFUND OF OVERCHARGES RESULTING FROM THE APPLICATION OF A RATE PUBLISHED IN MIDDLE ATLANTIC TARIFF 7-J, MF- I.C.C. 1585 TO GAMBRILLS, MARYLAND, PLUS A MILEAGE RATE BEYOND COMPUTED BY APPLYING THE SHORTLINE MILEAGE BETWEEN GAMBRILLS AND DESTINATION, DERIVED FROM THE HOUSEHOLD MILEAGE GUIDE ISSUED BY HOUSEHOLD GOODS CARRIERS BUREAU, TO THE TABLE OF RATES SET OUT IN C. I. WHITTEN TARIFF NO. 56, AND THE CHARGES WERE ADJUSTED ACCORDINGLY.

IN YOUR REQUEST FOR REVIEW OF OUR DISALLOWANCE OF YOUR SUPPLEMENTAL CLAIMS YOU CONTEND THAT IN USING THE SHORTLINE MILEAGE ACCORDING TO THE HOUSEHOLD GOODS MILEAGE GUIDE, OUR OFFICE HAS: (1) FAILED TO TAKE INTO CONSIDERATION THE MILEAGE VIA THE INTERCHANGE POINT WITH THE CONNECTING ARRIER; (2) FAILED TO TAKE INTO CONSIDERATION THE PROVISIONS OF ITEMS 130 OF TARIFF CIW (C. I. WHITTEN TARIFF) NO. 56, PROVIDING FOR APPLICABILITY OF THE RATES OVER THE ROUTES AUTHORIZED; (3) FAILED TO RECOGNIZE THE ROUTES AUTHORIZED BY ITEM 220 OF THE TARIFF; AND (4) FAILED TO TAKE INTO CONSIDERATION THE FIRST PARAGRAPH OF ITEM 10 IN THE TARIFF.

THE ISSUES AND CONTENTIONS INVOLVED IN THESE CLAIMS WERE CONSIDERED IN B- 166586, ET AL., DATED OCTOBER 21, 1969, COPY ENCLOSED, IN WHICH WE HELD THAT FOR THE PURPOSE OF DETERMINING THE APPLICABLE CHARGES THE MILEAGE IS TO BE DETERMINED IN ACCORDANCE WITH THE RULES IN HOUSEHOLD GOODS CARRIERS BUREAU, INC., MILEAGE GUIDE, INCORPORATED BY REFERENCE IN ITEM 50 OF THE TARIFF. THESE MILEAGE RULES PROVIDE THAT THE DISTANCE IS TO BE DETERMINED VIA THE SHORTEST PRACTICAL TRUCK ROUTE REGARDLESS OF ACTUAL ROUTE WHICH CARRIER MAY SELECT TO PERFORM THE TRANSPORTATION SERVICE. IN THE PRESENT CLAIMS, THEREFORE, THE SHORTLINE MILEAGE IS TO BE DETERMINED BETWEEN ORIGIN OR RATE COMBINATION POINT AND DESTINATION WITHOUT REGARD TO THE FACT THAT THE SHIPMENTS MAY HAVE ACTUALLY MOVED VIA CHARLOTTE, NORTH CAROLINA.