Roach Appleton Manufacturing Co. v. United States

265 F. Supp. 568, 1967 U.S. Dist. LEXIS 9235
District Court, N.D. Illinois·Decided January 27, 1967·No. No. 66 C 821·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

MAROVITZ, District Judge.

Petition for Review of Final Order of I.C.C.

This action is an appeal from a decision of the Interstate Commerce Commission. It is brought under 28 U.S.C. Sec. 1336, and 5 U.S.C. Sec. 1009, by Roach Appleton Manufacturing Company (“Roach”), to set aside and annul the decision and order of the Commission of October 18, 1965, which was entered by the Rates and Practices Review Board, in Docket No. 34550. The decision, with several changes, adopted the report and order of Hearing Examiner Luttrell, of May 24, 1965, in favor of defendants. On January 10, 1966, Division 2 of the Commission, acting as an Appellate Division, denied plaintiff’s petitions for reconsideration and for further hearing and cross-examination. On February 8, 1966, the Commission denied plaintiff’s petition for a finding that an issue of general transportation importance was involved in the proceeding. This appeal followed.

Subsequent to the filing of the complaint herein, the following parties were granted leave to intervene as defendants: National Motor Freight Traffic Association, Clemans Truck Line, Inc., (“Clemans”), Commercial Motor Freight Inc., of Indiana, Courier-Newson Express, Inc., and Tucker Freight Lines (“Tucker”). All of the intervening defendants were parties of record to the proceeding before the Commission.

On January 25, 1965, Roach filed with the Commission its complaint against Clemans and Tucker, alleging a violation of Sec. 217(b) of the Interstate Commerce Act, 49 U.S.C. See. 317(b), in that the above named carriers had applied an improper and inapplicable tariff classi[570] fication to its shipments of “switch boxes”. The freight charges, which had been partially prepaid by Roach, were based upon the classification described in the National Motor Freight Classification (NMFC) A-7, MF-I.C.C. 5, Items 63160 and 63200, which produce a less-than-truckload (LTL) rating of class 70, and a truckload (TL) rating of class 40. Plaintiff contended before the Commission and now contends before this Court that its shipments were overcharged to the extent that the charges exceeded those based on ratings of Class 60 (LTL), and Class 35 (TL), as prescribed in Item 61057 of MF-I.C.C. 5, which plaintiff asserts should have been the proper classification for these shipments.

Items 63160 and 63200, which ' are general classification descriptions apply to:

“Switch Boxes, Conduit Outlet Boxes, or Junction Boxes or Cabinets, with or without fittings or covers; or Outlet Box Covers, other than outlet box plates; See Note Item 62682 (63160)
* -» * * * -x-
Steel, NOI, in packages, also Steel Junction Boxes or Cabinets, loose.” (63200)

Item 61057, a specific classification description applies to:

“Boxes, Switch or Conduit Outlet Box Covers, other than outlet box plates, H gauge steel or thicker, plain primed or galvanized, outside measurement of boxes not exceeding 12 united inches (length, width, and depth added), with or without fittings or covers, see Note, Item 62682; — in packages” (emphasis added).

It is axiomatic that an article must be classified under a general description if it does not fall within a specific description. See American Lithographic Co. v. Lehigh Valley RR, 101 I.C.C. 100 (1925). Thus since Item 63200 applies to shipments of plaintiff’s switch boxes, the higher rates were properly assessed unless these shipments can be brought within the requirements of Item 61057.1

It is admitted by all parties that plaintiff’s switch boxes comply with the requirements of Item 61057 in all specifications except one — that being the crucial issue of this case — whether plaintiff’s switch boxes are made from 14 gauge steel within the meaning of Item 61057.

The steel used by plaintiff, has a decimal thickness, of no less than .0710 inches, after allowing for the normal variations in thicknesses of sheets from middle to edge, variations resulting from rolling at the mills and from plaintiff’s stamping processes. It was testified that plaintiff’s steel runs from .070 to .074 inches, with a target thickness of .0710 inches.2 The higher and lower thicknesses result from the variations referred to above.3

The Commission concluded that plaintiff’s boxes were not made of 14 gauge steel. It held that under the provisions of Rule 5, Sec. 16, and Footnote A to Sec. 16 of NMFC A-7, MF-I.C.C. 5, steel with a thickness of less than .0749 inches is not 14 gauge steel.

Rule 5, Sec. 16 provides, in pertinent part:

“Unless otherwise provided, where reference is made to gauge, it means U. S. Standard Gauge shall be used for determining thickness of sheet or plate steel; * * * Where classification [571] provisions are based on gauge and where only thickness is available, the table in Footnote A must be used to convert thickness to comparable gauge.”
Footnote A provides, in part:
“Gauge Number
Nominal Thickness in Decimals of an Inch United States Standard (Revised) U.S.S.G.
* * *
14 .0749
* * ■*»

The Commission concluded from this that to be classified under Item 61057, switch boxes must be made of steel having a thickness of no less than .0749. Plaintiff contends that steel which is no less than .0710 inches and no more than .0821 inches thick is 14 gauge steel, and that since plaintiff’s switch boxes are made of steel no less than .0710 inches thick (except for minor variations as to which there is no dispute in this appeal), they are made of 14 gauge steel and should be classified under Item 61057.

It is not disputed that under the Manufacturers Standard Gauge, which is the standard exclusively used and accepted in the industries which deal with steel products, the steel used by plaintiff would be considered 14 gauge. This is so because under that standard, the thickness ordering limits are .0821 to .0710 inches.4 Apparently then, under the prevailing industry standards, .0710 inch steel is considered to be 14 gauge steel.

However, our duty is to construe the applicable tariff provisions which refer to U. S. Standard Gauge. And we must respect the Commission’s decision unless we find it to be unsupported by “substantial evidence.” United States v. Pierce Auto Freight Lines, 327 U.S. 515, 535, 66 S.Ct. 687, 90 L.Ed. 821 (1946).

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Roach Appleton Manufacturing Co. v. United States, 265 F. Supp. 568, 1967 U.S. Dist. LEXIS 9235 (N.D. Ill. 1967).

265 F. Supp. 568 (Roach Appleton Manufacturing Co. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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