B-152324, NOV. 2, 1964

B-152324, NOV. 2, 1964

TO M. R. AND R. TRUCKING COMPANY:

WE REFER TO YOUR CLAIM FILE OC-139-63, ON BILL NO. 4838-62, AND TO OUR SETTLEMENT CERTIFICATE DATED FEBRUARY 28, 1963 (OUR CLAIM NO. TK 748678). YOU HAVE REQUESTED A REVIEW OF THE SETTLEMENT WHICH DISALLOWED YOUR CLAIM FOR $192.75, AS ADDITIONAL FREIGHT CHARGES ALLEGEDLY DUE ON A SHIPMENT OF 1,570 POUNDS OF CLASS B EXPLOSIVES TRANSPORTED FROM HURRICANE MESS, UTAH, TO ELGIN AIR FORCE BASE, FLORIDA, UNDER GOVERNMENT BILL OF LADING NO. B- 4746491, DURING MAY 1962.

THE ROUTING SHOWN ON THE BILL OF LADING IS "MILNE TRUCK CO. PERCENT CONSOLIDATE COPPERSTATE LINES INC PERCENT HERRIN TRANSP PERCENT COUCH MOTOR LINES MR AND R TRUCKING CO., " AND YOU ORIGINALLY COLLECTED ON YOUR BILL NO. 4838-62 FREIGHT CHARGES OF $633, BASED ON A MINIMUM WEIGHT OF 7,500 POUNDS AND A THROUGH RATE MADE BY THE ADDITION OF AN ARBITRARY TO THE RATE FROM ST. GEORGE, UTAH. THEREAFTER, YOU PRESENTED YOUR BILL NO. SUP 4838-62 FOR $192.75. YOU INDICATE THAT THE SHIPMENT MOVED "MILNE TRUCK LINES TO SALT LAKE CITY, CONSOLIDATED COPPERSTATE TO EL PASO, SUNSET MOTOR LINES TO HOUSTON, RYDER TRUCK LINES TO TALLAHASSEE, FLA., THENCE M.R. AND R. TO DESTINATION.' OVER THAT ROUTE, YOU COMPUTE FREIGHT CHARGES OF $825.75, BASED ON A MINIMUM WEIGHT OF 7,500 POUNDS, AND A COMBINATION OF RATES TO AND FROM TALLAHASSEE, FLORIDA, PLUS THE ST. GEORGE ARBITRARY.

YOUR CLAIM FOR $192.75 WAS DISALLOWED IN THE SETTLEMENT DATED FEBRUARY 28, 1963, WHICH ADVISED YOU THAT THE SHIPMENT HAD BEEN MISROUTED AND THAT THE ALLOWABLE FREIGHT CHARGES WERE $404.38; SINCE YOU ALREADY HAD COLLECTED $633 ON THIS SHIPMENT YOU WERE ASKED TO REFUND THE DIFFERENCE ($228.62) BY A NOTICE OF OVERCHARGE DATED FEBRUARY 27, 1963.

THE ALLOWABLE CHARGES OF $404.38 ARE CONSTRUCTED OVER THE LOWER RATED BILL OF LADING ROUTING, OVER WHICH THE SHIPMENT COULD HAVE MOVED, RATHER THAN OVER THE ROUTING SET FORTH IN YOUR SUPPLEMENTAL BILL. THE CHARGES ARE BASED ON AN ARBITRARY MINIMUM CHARGE TO ST. GEORGE, UTAH, PLUS A COMBINATION OF RATES TO AND FROM NEW ORLEANS, LOUISIANA, SUPPLIED THE ACTUAL WEIGHT OF 1,570 POUNDS TO NEW ORLEANS, AND A TRUCKLOAD MINIMUM WEIGHT OF 32,000 POUNDS BEYOND.

AS INDICATED IN YOUR REQUEST FOR REVIEW, THE CHARGE BASIS SHOWN IN THE CERTIFICATE OF SETTLEMENT RAISES TWO ISSUES. THE FIRST CONCERNS THE COLLECTION OF MISROUTING DAMAGES FROM DESTINATION CARRIERS; THE SECOND CONCERNS OUR USE OF THE 1,000 POUND MINIMUM WEIGHT BASIS SHOWN IN NOTE 1 OF ITEM NO. 932 OF ROCKY MOUNTAIN MOTOR TRAFFIC BUREAU, INC., AGENT, TRANSCONTINENTAL TERRITORIAL DIRECTORY 20-D, MF-ICC NO. 132, FOR THAT PART OF THE CHARGES APPLYING FROM HURRICANE MESA, UTAH, TO NEW ORLEANS, LOUISIANA.

THE FIRST ISSUE IS DISCUSSED IN OUR DECISIONS OF MARCH 16, 1964, AND JUNE 5, 1964, B-153093, TO YOU, COPIES ENCLOSED, IN WHICH WE CONCLUDE THAT WE HAVE AUTHORITY TO COLLECT MISROUTING DAMAGES FROM THE DESTINATION CARRIER.

THE SECOND ISSUE IS DISCUSSED IN OUR DECISION OF APRIL 21, 1964, B 152324, TO YOU, COPY ENCLOSED, IN WHICH WE CONCLUDE THAT THE WORD "DESTINATION," AS USED IN NOTE 1 OF ITEM NO. 932 OF TARIFF NO. 20-C (WHICH WAS UNCHANGED WHEN REISSUED IN TARIFF NO. 20-D), MEANS DESTINATION OF THE RATE, NOT DESTINATION OF THE SHIPMENT.

IN THESE CIRCUMSTANCES WE SUSTAIN OUR SETTLEMENT OF FEBRUARY 28, 1963, WHICH IS NOT SHOWN TO HAVE BEEN IN ERROR OTHERWISE. THE AMOUNT OF $228.62, SHOWN AS DUE THE UNITED STATES ON THE NOTICE OF OVERCHARGE DATED FEBRUARY 27, 1963, SHOULD BE REFUNDED PROMPTLY TO AVOID COLLECTION BY OTHER MEANS.