B-152282, FEB. 19, 1964

B-152282: Feb 19, 1964

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INC.: REFERENCE IS MADE TO YOUR LETTER OF JANUARY 24. OF YOUR COMPANY NOTIFIED GOVERNMENT OFFICERS AT MARE ISLAND THAT C-LINE EXPRESS WAS AUTHORIZED TO ACT AS YOUR AGENT TO PICK UP AND DELIVER SHIPMENTS FROM AND TO MARE ISLAND. WE ARE NOT HERE CONCERNED WITH WHETHER YOUR COMPANY. THROUGH THE C LINE EXPRESS WHICH YOUR COMPANY REPRESENTED WAS YOUR AGENT FOR PICK UP AT MARE ISLAND. TOGETHER WITH APPROXIMATELY 70 OTHER CARRIERS OFFERED TO CARRY "FROM STATIONS IN CALIFORNIA (AND WHICH STATIONS ARE SHOWN IN ROCKY MOUNTAIN TERRITORIAL DIRECTORY WITH SERVICE BY THE CARRIERS NAMED THEREIN) TO STATIONS IN THE EASTERN TERRITORY" ARTICLES ON A CERTAIN RATE BASIS (45 PERCENT OF CLASS 100 RATES) SET OUT THEREIN.

B-152282, FEB. 19, 1964

TO NAVAJO FREIGHT LINES, INC.:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 24, 1964, REQUESTING RECONSIDERATION OF OUR DECISION OF JANUARY 9, 1964, B-152282, WHICH SUSTAINED THE DISALLOWANCE OF YOUR CLAIM 03286 (OUR TK-749229) FOR $133.22 ADDITIONAL FREIGHT CHARGES FOR A SHIPMENT OF TURBINES COMBINED WITH GENERATORS TRANSPORTED FROM MARE ISLAND, CALIFORNIA, TO FITCHBURG, MASSACHUSETTS, UNDER GOVERNMENT BILL OF LADING A-1324703, DATED MARCH 21, 1961.

AS POINTED OUT IN OUR DECISION OF JANUARY 9, 1964, THE RECORD SEEMS CLEARLY TO ESTABLISH THAT THE WESTERN REGIONAL MANAGER, GOVERNMENT TRAFFIC, AND THE SALES REPRESENTATIVE, GOVERNMENT TRAFFIC, OF YOUR COMPANY NOTIFIED GOVERNMENT OFFICERS AT MARE ISLAND THAT C-LINE EXPRESS WAS AUTHORIZED TO ACT AS YOUR AGENT TO PICK UP AND DELIVER SHIPMENTS FROM AND TO MARE ISLAND. YOU NOW CONTEND HOWEVER THAT YOU HAD NO OPERATING RIGHTS TO SERVE MARE ISLAND, AND CONSEQUENTLY COULD NOT PROPERLY AUTHORIZE YOUR AGENT TO SERVE THAT POINT CONTENDING THAT "NO "AGENT" CAN DO THAT WHICH A ,PRINCIPAL" CANNOT DO.'

WE ARE NOT HERE CONCERNED WITH WHETHER YOUR COMPANY, THROUGH THE C LINE EXPRESS WHICH YOUR COMPANY REPRESENTED WAS YOUR AGENT FOR PICK UP AT MARE ISLAND, EXCEEDED YOUR OPERATING RIGHTS UNDER THE CERTIFICATES OF PUBLIC CONVENIENCE AND NECESSITY ISSUED TO YOU BUT MERELY THE SETTLEMENT OF THE CHARGES FOR THE SERVICE RENDERED. UNDER SECTION 22, U.S. GOVERNMENT QUOTATION I.C.C. NO. 10, 31ST REVISED PAGE 47, EFFECTIVE MARCH 13, 1961, YOUR COMPANY, DESIGNATED CARRIER N180, TOGETHER WITH APPROXIMATELY 70 OTHER CARRIERS OFFERED TO CARRY "FROM STATIONS IN CALIFORNIA (AND WHICH STATIONS ARE SHOWN IN ROCKY MOUNTAIN TERRITORIAL DIRECTORY WITH SERVICE BY THE CARRIERS NAMED THEREIN) TO STATIONS IN THE EASTERN TERRITORY" ARTICLES ON A CERTAIN RATE BASIS (45 PERCENT OF CLASS 100 RATES) SET OUT THEREIN. IN THE ROCKY MOUNTAIN TERRITORIAL DIRECTORY YOUR COMPANY (CARRIER N180) IS LISTED AS SERVING MARE ISLAND, CALIFORNIA. THUS, YOUR COMPANY OFFERED UNDER THE SECTION 22 QUOTATION (U.S. GOVERNMENT QUOTATION I.C.C. NO. 10) TO CARRY ARTICLES FROM MARE ISLAND ON THE RATE BASIS IN SUCH QUOTATION. THE BILL OF LADING UNDER WHICH THE SHIPMENT WAS MADE SHOWS THE SHIPMENT WAS TO BE MADE UNDER "TARIFF RMMTB 10.' THUS IT IS CLEAR THAT THE GOVERNMENT SHIPPING OFFICERS INTENDED TO HAVE THE SHIPMENT MOVE UNDER THE SPECIAL RATE OFFERED IN U.S. GOVERNMENT QUOTATION I.C.C. NO. 10. SUCH QUOTATION OFFERING TO PERFORM THE SERVICE ON A PARTICULAR RATE BASIS WHEN ACCEPTED BY ISSUANCE OF THE BILL OF LADING MAKING REFERENCE THERETO RIPENED INTO A CONTRACT AND ESTABLISHED THE RATES TO BE PAID FOR THE SERVICE RENDERED. OBVIOUSLY, THE OFFICERS OF THE GOVERNMENT WHICH ISSUED THE BILL OF LADING COULD NOT AS A PRACTICAL MATTER DETERMINE PRECISELY WHAT OPERATING RIGHTS AND AUTHORITIES EACH OF THE APPROXIMATELY 70 CARRIERS, PARTIES TO U.S. QUOTATION I.C.C. NO. 10, POSSESSED AND WERE JUSTIFIED IN RELYING ON THE ROCKY MOUNTAIN TERRITORIAL DIRECTORY REFERRED TO IN THE SECTION 22 QUOTATION INDICATING YOU HAD AUTHORITY TO SERVE MARE ISLAND. IF SUCH DIRECTORY WAS ERRONEOUS IN THAT RESPECT, IT WAS NEVERTHELESS YOUR REPRESENTATION OR THAT OF YOUR PUBLISHING AGENT UPON WHICH THE GOVERNMENT SHIPPING OFFICERS APPEAR IN GOOD FAITH TO HAVE JUSTIFIABLY RELIED. CARRIERS UNDER 49 U.S.C. 22 AND 317 (B) ARE AUTHORIZED TO CARRY PROPERTY FOR THE UNITED STATES FREE OR AT REDUCED RATES. YOUR OFFER UNDER SUCH SECTION WAS ACCEPTED BY THE ISSUANCE OF THE BILL OF LADING MAKING REFERENCE THERETO. YOU APPEAR TO HAVE BEEN PAID THE CHARGES DUE UNDER SUCH OFFER AND ACCEPTANCE AND WE SEE NO PROPER BASIS FOR PAYING YOU ANYTHING MORE.

THE DISALLOWANCE OF YOUR CLAIM FOR CHARGES IN EXCESS OF THE RATE BASIS ESTABLISHED UNDER U.S. GOVERNMENT QUOTATION I.C.C. 10 THUS APPEARS PROPER AND IS AGAIN SUSTAINED.

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