B-147183, MAR. 20, 1962

B-147183, MAR. 20, 1962

TO GARRETT FREIGHT LINES, INC.:

BY LETTER OF SEPTEMBER 1, 1961, YOUR CLAIM NO. 7491-A, YOU REQUEST REVIEW OF OUR SETTLEMENT WHICH DISALLOWED YOUR CLAIM ON SUPPLEMENTAL BILL NO. 7491-A FOR ADDITIONAL CHARGES ALLEGED TO BE DUE FOR A MIXED TRUCKLOAD SHIPMENT TRANSPORTED FROM HACKENSACK, NEW JERSEY, TO THE RECEIVING OFFICER, NAVAL AIR STATION, ALAMEDA, CALIFORNIA, UNDER GOVERNMENT BILL OF LADING NO. AF-325354 DATED JANUARY 19, 1960. THE CONSIST AND CHARGES ORIGINALLY CLAIMED AND PAID WERE AS FOLLOWS:

CHART 60 PCS MACH.PTS., INT.COMB.ENG.,

IRON OR STEEL 9,897 AT $5.58 - $552.25 6 PCS MACH.PTS. N.O.I. ALUM 5,830 AT 6.02 - 350.97 48 PCS MACH.PTS., INT.COMB.ENG.,

IRON OR STEEL 9,882 AT 5.58

3 PCS BUSHGS, N.O.I. O/T IRON OR STEEL 522 AT 5.58 - 580.54

DEFICIT TO MAKE MINIMUM 869 AT 6.02 - 52.31

THEREAFTER, BY SUPPLEMENTAL BILL NO. 7491-A DATED DECEMBER 7, 1960, YOU CLAIMED ADDITIONAL CHARGES, ALLEGING THAT THE RATE FOR THE SIX PIECES OF ALUMINUM MACHINE PARTS SHOULD BE $7.81. YOUR CLAIM WAS DISALLOWED FOR THE REASON THAT THE MIDDLETOWN AIR MATERIEL AREA, OLMSTED AIR FORCE BASE, PENNSYLVANIA, IN RESPONSE TO OUR INQUIRY ADVISED THAT THE SIX PIECES WERE "PARTS FOR INTERNAL COMBUSTION ENGINES.' CHARGES WERE THEREFORE COMPUTED ON THE BASIS OF THE TRUCKLOAD RATES FOR THE MACHINE PARTS, IRON OR STEEL, PER ITEM 67610, NATIONAL MOTOR FREIGHT CLASSIFICATION NO. A-4; AT THE VOLUME RATE FOR THE BUSHINGS, PER ITEM 59120; BUT AT AN LTL RATE OF $6.57, PUBLISHED IN ITEM 2240 OF ROCKY MOUNTAIN MOTOR TARIFF BUREAU TARIFF NO. 22 -B, FOR THE SIX PIECES OF ALUMINUM MACHINERY PARTS. HOWEVER, THE LESS THAN-TRUCKLOAD WEIGHT OF 5,830 POUNDS WAS ALSO APPLIED TO MAKE UP THE MINIMUM WEIGHT OF 24,000 POUNDS APPLICABLE TO THE MACHINE PARTS, IRON OR STEEL, CITING AS AUTHORITY ITEM NO. 680 IN RMNTB TARIFF NO. 20-C. COMPUTING THE CHARGES IN THIS MANNER RESULTED IN AN OVERCHARGE OF $17.37 FOR WHICH A STATEMENT OF OVERCHARGE, GAO FORM 1003, WAS ISSUED.

IN YOUR REQUEST FOR REVIEW YOU ALLEGED THAT OUR OFFICE HAS NOT PROPERLY APPLIED THE PROVISIONS OF ITEM 87 IN CONNECTION WITH ITEM 680, ARGUING THAT IN RATING TWO OF THE ITEMS AT VOLUME RATES AND A THIRD ITEM AT LESS- THAN-TRUCKLOAD RATES, OUR OFFICE MUST OF NECESSITY SPLIT THE SHIPMENT INTO TWO PARTS IN ACCORDANCE WITH PARAGRAPH 9 OF ITEM 87 IN RMMTB TARIFF NO. 20 -C (PRESUMABLY YOU MEAN TARIFF NO. 20-B WHICH WAS EFFECTIVE AT THE TIME OF SHIPMENT). RATING THE 5,830 POUNDS OF ALUMINUM MACHINERY PARTS AS LESS THAN TRUCKLOAD, HOWEVER, LEAVES AN AGGREGATE WEIGHT OF ONLY 20,301 POUNDS FOR THE VOLUME PORTION AND RESULTS IN A DEFICIT OF 3,699 POUNDS WHICH, AT A RATE OF $6.13, RESULTS IN HIGHER TOTAL CHARGES THAN ORIGINALLY CLAIMED.

ITEM 680 IN RMMTB TARIFF NO. 20-B, M.F. I.C.C. NO. 101, PROVIDES:

"WHERE BOTH LTL AND VOLUME OR TRUCKLOAD RATES ARE SHOWN FOR THE SAME ARTICLE, THE CHARGE FOR A SHIPMENT MOVING UNDER THE VOLUME OR TRUCKLOAD RATE AT THE MINIMUM WEIGHT SPECIFIED SHALL IN NO CASE EXCEED THE CHARGE FOR THE SAME SHIPMENT MOVING UNDER THE LTL RATE.'

ITEM 87, PARAGRAPH 9, PROVIDES:

"/9) WHEN THE AGGREGATE CHARGE ON THE ENTIRE SHIPMENT IS LESS BY CONSIDERING THE SHIPMENT AS TWO OR MORE SEPARATE SHIPMENTS, ON THE BASIS OF THE VOLUME OR TRUCKLOAD RATE AND MINIMUM WEIGHT AS PROVIDED IN THE PRECEDING PARAGRAPHS FOR ONE OR MORE OF THE ARTICLES, AND ON THE BASIS OF THE AQ OR LTL RATE OR RATES ON THE OTHER ARTICLE OR ARTICLES, THE SHIPMENT WILL BE CHARGE FOR ORDINGLY.'

ON REVIEW OF THE DISALLOWANCE OF YOUR CLAIM OUR OFFICE IS OF THE OPINION THAT YOUR CONTENTIONS REGARDING THE APPLICATION OF ITEMS 87 AND 680 OF RMMTB NO. 20-B HAVE MERIT. ACCORDINGLY, YOUR CLAIM IS BEING RETURNED TO OUR TRANSPORTATION DIVISION FOR COMPUTATION IN THE MANNER URGED BY YOU AND ALLOWANCE IN THE AMOUNT FOUND PROPERLY DUE.