B-174219, JAN 20, 1972

B-174219, JAN 20, 1972

TRANSPORTATION CHARGES - EXPLOSIVES - INTERSTATE SHIPMENT - CONFLICT IN RATES DENIAL OF CLAIM OF C. I. WHITTEN TRANSFER COMPANY FOR ADDITIONAL FREIGHT CHARGES ON A SHIPMENT OF JET THRUST UNITS FOR NASA, FROM WALLOPS ISLAND, VA., TO LANGLEY RESEARCH CENTER, VA., UNDER A GOVERNMENT BILL OF LADING (GBL). SINCE THE SHIPMENT MOVED VIA AN INTERSTATE ROUTE, THE APPLICABLE TARIFF WAS THE MIDDLE ATLANTIC CONFERENCE TARIFF 42-A, MF-I.C.C. A 1754, WHICH WAS PROPERLY APPLIED BY CLAIMS DIVISION. THE GBL CONTAINS A NOTATION WHICH INDICATES THAT THE SHIPPING OFFICE AND THE CARRIER UNDERSTOOD THAT THE SHIPMENT WAS TO MOVE AT A RATE OF $3.56 PER 100 LBS. ON 7,500 LBS. MINIMUM. FURTHER, THE SPECIFIC POINT-TO-POINT RATES TAKE PRECEDENCE OVER THE MILEAGE DISTANCE RATES AND, IN ANY EVENT, IF TWO RATES ARE APPLICABLE, THE SHIPPER IS ENTITLED TO THE BENEFIT OF THE LOWER RATE.

TO C. I. WHITTEN TRANSFER COMPANY:

REFERENCE IS MADE TO YOUR LETTER OF SEPTEMBER 27, 1971, IN EFFECT, REQUESTING REVIEW OF OUR SETTLEMENT CERTIFICATE OF SEPTEMBER 22, 1971, WHICH DISALLOWED YOUR CLAIM (OUR TK-907909) FOR $354.60 ON BILL NO. 5676 SUPPLEMENT #1 FOR ADDITIONAL FREIGHT CHARGES ON A SHIPMENT OF GOVERNMENT PROPERTY. THE SHIPMENT CONSISTED OF JET THRUST UNITS, CLASS B EXPLOSIVES, WEIGHING 3,676 POUNDS WHICH MOVED FOR THE NATIONAL AERONAUTICS & SPACE ADMINISTRATION FROM WALLOPS ISLAND, VIRGINIA, TO LANGLEY RESEARCH CENTER, HAMPTON, VIRGINIA, UNDER GOVERNMENT BILL OF LADING D-5581376 DATED JUNE 19, 1968. BECAUSE OF THE RULES AND REGULATIONS GOVERNING THE TRANSPORTATION OF EXPLOSIVES AND OTHER DANGEROUS ARTICLES OF THE CHESAPEAKE BAY BRIDGE-TUNNEL, THE SHIPMENT MOVED TO ITS DESTINATION, HAMPTON, VIRGINIA, VIA SALISBURY AND ANNAPOLIS, MARYLAND.

FOR THIS SERVICE YOU ORIGINALLY CLAIMED AND WERE PAID CHARGES OF $448.80 COMPUTED ON THE BASIS OF A RATE OF $2.04 PER 100 POUNDS ON A MINIMUM WEIGHT OF 22,000 POUNDS PUBLISHED IN C. I. WHITTEN TRANSFER COMPANY EXPLOSIVE TARIFF MF-I.C.C. NO. 56 (TARIFF 56). IN OUR AUDIT OF THE PAYMENT VOUCHER IT WAS CONSIDERED THAT THE APPLICABLE CHARGES SHOULD BE $267 COMPUTED ON THE BASIS OF A RATE OF $3.56 PER 100 POUNDS ON A MINIMUM WEIGHT OF 7,500 POUNDS PER VEHICLE UNDER AUTHORITY OF C. I. WHITTEN TRANSFER COMPANY SECTION 22 QUOTATION I.C.C. NUMBER 103-B (TENDER 103-B) AND MIDDLE ATLANTIC CONFERENCE TARIFF 42-A, MF-I.C.C. A 1754 (TARIFF 42- A). THE APPLICATION OF THIS BASIS RESULTED IN AN OVERCHARGE OF $181.80. BY CHECK NO. A-1855, DATED JANUARY 27, 1970, YOU REFUNDED THE SUM OF $172.80; HOWEVER, ON FEBRUARY 19, 1970, THE ARMY FINANCE CENTER, ACTING ON OUR OFFICE'S EARLIER REQUEST, DEDUCTED THE OVERCHARGE OF $181.80 FROM AMOUNTS OTHERWISE DUE YOUR COMPANY. SINCE THE MONIES COLLECTED EXCEEDED THE AMOUNT OF THE OVERCHARGE WHICH WAS SATISFIED BY THE DEDUCTION OF $181.80 MADE BY THE ARMY FINANCE CENTER, YOUR PAYMENT OF $172.80 WAS REFUNDED TO YOU BY PUBLIC VOUCHER FOR REFUNDS, STANDARD FORM 1048 DATED MAY 25, 1970. WE ASSUME YOU RECEIVED SUCH REFUND AND THAT THE DISPUTE NOW ONLY INVOLVES THE SUM OF $181.80 COLLECTED ON ACCOUNT OF THE OVERCHARGE.

IN EFFECT THEN, YOU REQUEST REVIEW OF OUR RETENTION OF THE OVERCHARGE OF $181.80 DEDUCTED FROM YOUR COMPANY'S ACCOUNT CONTENDING THAT IN VIEW OF THE RESTRICTION AS TO USE OF THE CHESAPEAKE BAY BRIDGE-TUNNEL AND THE PHYSICAL MOVEMENT OF THE LADING VIA SALISBURY AND ANNAPOLIS THAT THE RATES IN TARIFF 42-A USED IN THE GOVERNMENT'S CHARGE BASIS ARE INAPPLICABLE.

BILL OF LADING D-5581376 IN THE BLOCK ENTITLED "TARIFF OR SPECIAL RATE AUTHORITIES" BEARS THE LEGEND "WHITTEN ICC 103B" AND ON THE FACE OF THE BILL OF LADING THERE IS ALSO THE NOTATION

"TENDER RATE AS ONE TRUCKLOAD

$3.56 PER C/WT. ON 7,500 LBS. MIN."

THE BILL OF LADING IS UNROUTED AND, AS THERE IS NO DISPUTE THAT THE ACTUAL ROUTE OF MOVEMENT WAS VIA SALISBURY AND ANNAPOLIS, MARYLAND, WE CONCUR IN YOUR CONTENTION THAT THIS WAS AN INTERSTATE SHIPMENT.

TENDER 103-B IS APPLICABLE ON SHIPMENTS OF "AMMUNITION AND/OR EXPLOSIVES AND/OR FIREWORKS" MOVING BETWEEN POINTS SERVED BY C. I. WHITTEN TRANSFER COMPANY AND UNDER ITEM 17 OF THAT TENDER THE CARRIER REPRESENTS THAT IT HAS THE REQUIRED OPERATING AUTHORITY TO TRANSPORT THE COMMODITIES UNDER MC -47142. ITEMS 11 AND 12 PROVIDE FOR APPLICATION OF A 200-PERCENT FIRST CLASS RATE AND A MINIMUM WEIGHT OF 7,500 POUNDS PER VEHICLE USED. ITEM 13 PROVIDES FOR ROUTING OF THE SHIPMENT VIA C. I. WHITTEN TRANSFER COMPANY WITH NO TRAILER INTERCHANGE (ITEM 14). ITEM 15 LISTS THE GOVERNING PUBLICATIONS (INCLUDING SUPPLEMENTS AND REISSUES) SHOWING RATES, CHARGES, AND ROUTING. INCLUDED IN THE LISTING ARE TARIFFS 56 AND 42, MF-I.C.C. NO. A-1550, WHICH WAS REISSUED AS TARIFF 42-A, MF-I.C.C. A-1754.

THE FACESHEET OF SUPPLEMENT 12 TO TARIFF 42-A IN EFFECT WHEN THE SHIPMENT MOVED STATES THAT "THIS TARIFF APPLIES ON INTERSTATE TRAFFIC." TARIFF 42- A PUBLISHES A SPECIFIC POINT-TO-POINT CLASS 100 RATING ON INTERSTATE TRAFFIC MOVING VIA ALL MOTOR ROUTES AND IS NOT OTHERWISE RESTRICTED. SINCE YOU CONCEDE THAT YOUR COMPANY ALONE TRANSPORTED THE SHIPMENT FROM ORIGIN TO DESTINATION VIA ON INTERSTATE ROUTE, THERE APPEARS NO REASON WHY THE RATES AND CHARGES PUBLISHED IN TARIFF 42-A ARE NOT FOR APPLICATION IN COMPUTING THE CHARGES FOR THE SHIPMENT. SUCH RATE (TWICE THE FIRST CLASS RATE) WAS APPLIED IN OUR AUDIT AND IS THE SAME RATE REFERRED TO IN THE NOTATION ON THE BILL OF LADING MENTIONED ABOVE, "TENDER RATE AS ONE TRUCKLOAD $3.56 PER C/WT. ON 7,500 LBS. MIN." WHICH WOULD SEEM TO INDICATE THE SHIPPING OFFICE AND THE CARRIER UNDERSTOOD THAT THE SHIPMENT WAS TO MOVE AT SUCH RATE.

THE SPECIFIC POINT-TO-POINT RATE (RATE BASE 64A) TAKES PRECEDENCE OVER THE MILEAGE DISTANCE RATES AND, IN ANY EVENT, IF TWO RATES ARE APPLICABLE, THE SHIPPER IS ENTITLED TO THE BENEFIT OF THE LOWER RATE. WESTERN GRAIN CO. V ST. LOUIS - S. F. RY. CO., 56 F. 2D 160 (1932); BOONE V UNITED STATES, 109 F. 2D 560, 562 (1940). ACCORDINGLY, THE DISALLOWANCE OF YOUR CLAIM APPEARS PROPER AND IS SUSTAINED.