Petition for Writ of Certiorari — Frank v. Levy

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Supreme Court of the United States

PETITION FOR A WRIT.OF CERTIORARI TO THE

at UNITED STATES COURT OF CLAIMS

ey oe ai

. Q,

—_— B

"TABLE OF CONTENTS OF PETITION,

f oes Page

Opryton Brow bene te te eeeees ' Stekeees = AY eee 1. *

Suances Suaieas se ceceees ae z ; [natuawekece eee 9

Questions PRESENTED ....-- Bere Pee e ye 3

Provisions ‘or THE Const wnt: Sasreren, PostaL

\. Rrariations axp PostaL|\ConvENTIONS INVOLVED .... eo et soe

| STATEMENT OF THE Case ..}..-. RP eee : peewsen . 5

. Hotpiyg or THE Covet Brow .-...-. beweece ‘ceaginees 10

Ernoxrovs Fixpixos axp CONCLUSIONS .....-+- ae ae

( 1) Empty sacks and empty air mail sacks in claim ;

wefe carried on saine trip as the mails ......... 1z

(2) Requirement that mails he’ picked up at the Post

Office and trucked to piers ....¢..-..++-- err 14

(3) The Brussels Convention of 1952 .........+. Pee

Reasons FOR Reqvestixnc Writ gr CERTIORARI ........ 16

1. The term ‘mail’ includes sack containers. and——-——~

—pmpty sacks -~.-. EPEC P Oe rr eee hy y Lawene 17

9 Suits are for compensation based upon the weights

- of mails including the sacks ...... jusauue one len 18

3. Steamship earriers should not be reqnired to be-

come unwilling partners itt generosity between

Postal Administrations . 0.0... 6. eee cece eee es 19

4: The Requirement to.earry without compensation: 0 -

. constitutes a taking within the prohibition of the

—— Fifth Amendment ..... kedwaeakees oe ceecceece 21

"Conchusion § .....0.0050- easkenbacendaves’ maseucats 21.

u | "Table of Contents Continued

TABLE OF INTENTS OF APPENDEX |

Se 2a aan Page

Court of Claims Opinion on Plaintitf’s Motion to Strike

> Defendant’. ‘Phird wid Fourth Special Defenses.

la-da

ie Report of Trial Commissioner of Findings of Fact. .Ga-25a

. ‘ o. *. . .- . + s ? ‘ :

» Court of Claims Opinion, Findings of Fact and Con-

clusion of Law .....-. OEP E ERE PETER

Proceedings Following Opinion of the Court ......--- hha

Relevant Postal Laws and Regulations 1948, in effect

on and after October 1, 1990 p

See, LOT(aA(D)(E) co.cc eee eee ee . 2. H7a-58a

— See, TAT Ob) as amended effective Au 1,

2 ES ee

- See, 125.2, mails must be carried by foreign ves-

: ; sels (first paragraph) 1S U.S.C. 1724 .....59a-0a

See. 125.3 Duty of all vessels to carry mails (sec-

ond paragraph) IS U.S.C. 124... eee 60a

$ See, W55a (as amended effective. August 1,

1954) transportation of outgoing mails from

‘ post offices to Ships ..... 0.6... 2p eee eee. (Wa-Gla

See, 125.5 BITS. £655) Fines on carriers ..<Gta

Provisions of Universal Postal Conventions :

_ Parts 1947

Art. 67, Transit charges on correspondence ........ 62:

‘Art..35, definition of ‘‘articles of Correspondence?’

(footnote) 2.2... eee cece eee eee eee eee eens ,.. 62a

Art. 68, exemptions from transit charges ..../../ 63a

"Brussels 1952 Se

Art. 78, Transit charges: on correspondence borne

by Administration of countty. of origin of dis-

patch 5 ees eer rer rr rere rers te (eee ee $ 64a

Table of Contents Continued

N .

— Page -

Art. 78,-par. 2. third services define J tities Ota

Art. 7S. par. 4. maritime transit begins = whee dis- >

patches are placed under hoist... .....-...... Ota

Art. 79% Exemption from transit charges ..2..... fia

Paris 1947 *

Art. 153, pars:. 1. 2, 6 and 7—-statistieal period —

"so ER ita wid kro meute oe ‘cose ha

Art. 14, pars. Mand 2. Fixing numb rof sacks and:

we ight. of closed mails Paeiecas Sa eee pee GGa

Art. 161, pars. 1, 4, and 5—T ransit hein account 66a

Brussels VW52

Note: Articlis 171, 172 and 179 | cintaie provisions:

similar to those in Articles, 153, 154 and 161 of

thre Paris 19479 Convention ... 00.0752. coe. C8

.: ; . ae. ‘ os

TABL. kK OF CASES

tae York Central RR. . WN. U nited States, 65 Ct Cls.

bh vans Foe CS Fe enc: Woks baccoaewenes 21

Pacific Mai Sieamsbip i> . ad States, ON 4"t. ‘s

a. i See aan aS EH Foe te Nt °1

Vnited Frait C 6. ¢«. © nite d Stitte a, “144, ('t, CIs. 154 ¢

fo | re PE OR re ery ee eer eE or me SS. &

“United Fruit. Co. x. wv nited pi, s, 103 Ct. Cls, 303

‘SD os oe ka We ee a ae ah aa raise tee igi "91 s

United Fruit Co, v. United States, 112 Ct. Cls. 519 AY

UR) 1 aha i Wea Sera pera Ey oe ere by

. . ° ~~ &/ AD

STATUTES, post AL REGUL ATIONS. AND. Post.

, CONV ape ; zo /

_ Postan Laws asp Reseations 1 Rape ee oh

OU SC. £ 654(ay; Section 1: 20.7 (a), (App. oak ag

Section. 1: “1.7 (bh) (c) (App. pp. S7a-58a) :.:4... 2," 2’ 4,9,

10,11, 13, 14

ASU S.C, § 1724, Sections 125.2. 125.3 (App, ». 0)

/ : 3, 4,51 ”, 48, Wd

Section 125.5a (App. p. Gla), antes | PREP A pete 4

ie =

ek. ‘Table of Contents Continued

; , Page

-U SIVESAL Povra v SIN CoNvENTIONS; "7, a

Paris, ty zee

Article 67, paragraphs | Land 2 | App: y. Ada) ree

Article G&-(App. p. 8a) . 97a eee ees 30

Article 155 ———- Fand 7 (App. P. = :

. 5.13.19

Article-154, paragraphs t and 2 ( App. p. ta). _ ae

Article 161, paragraphs 1,4 and 5 App. p- tia)

> 4 ad - A ° 13, 9

Brussele— - ; fi -

Articles 78, 79 (App. p. Ga) .------ eee err’ 4.5.9, 15

Article, 171- (Footnote. App. p. Ra) oo. eee eres >

. Artiele 172 (Footnote, App. p- GRa) ...ccceescees i)

_ Article 17%, paragraph : 5 (Footnote, ga p. 68a)

4,5, In

Rome. 1906 ?

“Artic ‘le 4, paragraph 3 (Footnote) ..+.---- ede 6

“Aa of February 14, 1929 @9 U.S.C. € H54(a), ame nit

ing RS. 4008 i sume imapuee ae tems? ee “4, 16, 19, 20

ae Oe g: ee PPE er PR OR AT fol oo aint alia dia Remar 19

ere ‘iant Marine Net 1936, U.S.C. A Ree or Leyte .§

poc UM ENTS ©

Documents du Congres D’Bruxelles 1952, Tome 1, pp. ;

533-534, (Post Office Department Library) ae ahs 16

IN THE

Supreme Court of the United States

“OcTeuen Tee, 1061

°* " Usrrep Favir Compasy, ['etitioner

« ie a ve

Uxitep States of AMERICA

° e . ‘ *

—————_

’

_ ( “PETITION. FOR A WRIT OF CERTIORARI TO THE

UNITED STATES COURT OF CLAIMS.

—_———_

The Petitioner, United Fruit Company, prays that a

writ of certiorari issue to review the judgment of the

United States Court of Claims entered on April 7, 1961.

Plaintiff’s motion fér a rehegring was overruled by order

of the Court on October 4, T961.- :

OPINION BELOW.

of the Court by Judge’ Whitaker grantine

The opini

_ plaintiffs motion to strike defendant's third and fourth

defenses to the jurisdiction of the Court of Claims ts

reported as United Fruit Co. v. United States, 44 Ct. Cle.

134. The opinion, findings of fact and judgment of the

~ = :

court by Judge Laramore is not vet reported. Both opin-

ions, the report of the Tal Commissioner, together with °

orde r of Cotirt ove rruling petitione r’s motion for rehe ‘ar-

ingon Oe ‘tober 4, 1961, are Sst forth in the Appendix he reto.

ah eZ

JURISDICTION |

Two suits were instituted: by petitioner. unde T ‘the ‘Pucker

Act in the. Court of Claims; the first (Docket No. 460650) —

seeks Tecovery of the balance of compensation allegedly

due for weights of sacks containing mailsand for. empty

sacks transported by steamships, during the period from: -

October 1, 1950, to July 31, 1954, at the rafes per pound

fixed in Section 120.7(3)(b) Postal Iaws and Regulations,

194%; the second suit (Docket No. 568-57) seeks recovery

of the. balance of compensation for.sac ks enclosing mails

and for empty sacks tendered during the pe ‘riod on and

after August 1, 1954, at rates per pound applied to the net

weights of nails in amended Sections 120.7(b), and

for reimbursement of expenses for true king of mails

‘from post offices to steamship piers from and after

- August 1, 19° 4 The 4wo suits were consoHdated for hear-

ing-and a singbe opinion rendered_on the consolidgted cases.

The court denied recovery on all of petitioner's claims ex-

cept that judgment, was allowed petitioner for empty air

mail sacks enclosed in bundles of. othér empty sacks, the’

amount to be determined pursuant to Rule 38(c)." Review

is not sought of this part of the judgment relating to empty

air mail sacks.

Jurisdiction of this: -court to review oe esi of the

Court of Claims is invoked ander 28 U.S.C. 1255(1).

_—_— -

' The amount cannot be seiiiuatnial until cienpletion of tests as

erage weight and number ‘of air mail sacks contdined in

bundles of other empty sack, and deducting average weights

thereof from the total weights of empty sacks represented in

plaintiff's claim. : . .

| 3

QUESTIONS PRESENTED | |

-1..Do the provisions-of the Uv niversal Postak Union Con-

vention of Paris, 1947, Article 153, paragraph 7, authorize

the Postmaster General to require the gratuitous carriage

- of empty mail sacks pursuant to his powers under 18 —

U.S’. 1724, after protest and notice that compensation for

empty sacks tende red by the Postmaster General would be

* demanded at the rates fixed i in Section 120. a 3)(b) for other

articles? .* | a

. Do the: provisions of Article 161, paragraph 5 ’, of the .

Céavettion of-Paris, 1947, authorize deduction of weights.

of sacks enclosing mails: in calculating compensation at

rates in Section 120.7(3)(b) Postal Laws ‘and Regulations

1948, for steamship transportation required, pursudni to

18 U.S.C. 1724 after, protest and notice that mails would’ be |

aceepted and transported on condition that éompensation

be calculated and paid on a gross weight basis at those

rates. e ot .

3. Denes the terms*‘sea transit rates’’ for steamship

transportation, as used ‘in the “Act of February 14, 1929

[39 U.S.C. 654(a)] as the basis. of compensation in case

of a foreign vessel, relate (1) to the rates for maritime

transit per kilogram, set forth in Article 67 of the |

Universal Postal Union, Convention of Paris, 1947, and

e > i

* The provision in the Convention reads as follows:

Insofar as it concerns sacks which contain only, empty sacks

or correspondence exempt from all transit charges (Article

79 of the Convention), the notation Statistique’ (Statigtics) is

followed by the word Exrempt.

Ww itnens Gireever. Allan testifying on direct (Tr. pp. * 370.371) °

for the Post Office Department said :. Pak : .

- Well, with regard to the return of empty equipment, the Con-

vention states that empty bags are exempt from statistics.

And from that one little phrase for many,,.many years the bags

have been returned gratuitously (Emphasis added).

. , 4 :

in Articie “78 of the Brusse Ix Convention 1952, or (29 does

the terin refer to ‘transit charges”? or * ‘maritime transit’’

in the: settlement. of accounts between. Postal Administra-

‘tions pursuant to the provisions of Article 155, para-

~sgrapk: 7, and Article 161, paragraph 5, of the Paris

Convention and Article. 179, paragraph 5,-of the oraae ‘Is

a 192. | > ;

4, Yas tie Postmaster General lawfully require the

‘eartage of mails from the post office to piers and. onward

_--steamship transportatibn pursuant to IS U.S.C. 1724 at

rates of compensation fixed by amended ‘Section 120.7(b)(e)

effective August I, 1954, for the ‘net weights of mails,

-eatter petitioner 's prote stand notice that Mails.tendered on

‘and after August 1, 1954, would becaccepted and trans-

ported on condition that comipensation be caleulated+ on

gross weights atid that’ petitioner be reiwbursed its. ex-

penses for cartage of “mails from post offices to piers as

required by ame nded Section 125.5a Postal Laws and

~ Regulations: :

PROVISIONS OF THE CONSTITUTION. STATUTES,

POSTAL REGULATIONS AND POSTAL

CONVENTIONS INVOLVED

mstitution ‘taer shall

blic use, withofit jus

The Fifth Amendment to the

private property be taken for

compensation, "”

References to relevant provisions of thy Postal Lays and

Regulations and’ Articles of the Universal Postal’ Union

Conventions, printed in the Appendix hereto, pp. ofa te =

_ 68a, are as follows: |

. pares Laws and Regulations, 1948, section 120.7 (a),

39, USC. 64(a) (p. oTa)s seetion Ta ¢b) ce) Opp. ea-

8a); 190.706) as amended August 1, 1994 (pp. o8a-60a) :

section 125.2 (p. 60a); section 125.92 (pe 61at: section

(125.5¢a), 89 ULS.C. 655; seetion 125.50) (pp. 6la-62a).

- -

*)" hae

? -

Provisions of Universal Postal Union Conventions :.

Paris WAT Art. 67, paragraphs Toand 2 (p. 63a),

Art. 68 (p. 64a): pases

Brussels 152, Art. 7S, —paragt raph 1,2 2 and 4 (p. ia),

. Art. 79 (p. 66a):

Paris 1947, Art. 1938, paragraphs 1, 2. 6 Sand 7 1 (p. 66a),

Art. | M4, paragraphs | and 2 (p. 67a). Art. 16],

‘paragraphs ‘1, 4 and 5 (p. 67a):

Brussels 152, Note, Articles 171, 172, and 179 cone

tain substantially same previsions as Articles 153,

14 and 161 of Parijs Convention (pp. 66a-67a).

. STATEMENT OF THE CASE .,

Petitioner. is a steuiship owner and operator ofa

steamship line in foreign commerce between New York or

New Orleans, on the one hand, and various ports in Central

and South America, the Panama Canal Zone, and islands

in the: Caribbean area, on the other. For years it has

regularly transported passengers, cargo, and mail.

Plaintiffs receives no ope rating: differe chee 1 subsidy under

the Mere ‘hant Marine Act 1% Wi, 46 Uos.cC. § 171.

There was a long existing’ practice of the Post Offiee

SDepartinent of paying for the steamship transportation

of mails to foreign ports on a net weight basis, no com

pensation being paid for weights of sacks or for empty

sacks dispate ‘hed with the mails. “Apparently, the practice

arose under RLS. 4009, which provided that Tor transporting

the mail between the U nited States and any foreign/port .

the Postmaster General may allow as compensation, if by,

a United States steamship, any sum not exceeding the

sea and U nited States inland postage; @! if bya foreign

steamship, any sum not exceeding the sea postage on. the’

mail’ so transported. (Finding 28; App. p. d8a),

The Act of July 3, 1926, amended RS. 4009'to provide

that for transportation of mails on American flag vessels

“the Postmaster General may allow ‘teompensation’ not: in

exeess of the amount of postage collected on the marl

transported on sich vessed,’’ and in’ case of a foreign

vessel not in excess of the ‘sea transit rates’’ prescribed

by the ‘Universal Postal Union Convention’ | Fhe Aet of

February 14, 1929 G9 ESC. 654 (n)) entitled An Act to

provide more definitely the rates: of compensation payable

to steamships of United States registry for transportation

of foreign mails,’? amended the Act of July 3, 126," so

as to provide that the Postmaster General may allow. to

United ‘States: Vessels compensation on a weight basis of

-not exceeding 80 cents a pound for letters and S&S cents. a

pound for other articles, including: parcel post, and in case

of a foreign vessel cosapensation not in exeess af the “sea

trarisit rates’? prescribed from. time to time by the

‘Vniversal Postal Union Convention (Finding. 28; App.

p. 4a).

On June 16, 1959, petitioner by its: vice president, sent

a letter to the Assistant Postmaster General protesting

against the refusal of the Department to allow any com-

pensation for steamship transportation for the weight of

empty sacks, and the refusal to include the weights of

mail sacks in the weights of mails, and expressing the

3 The Convention of Rome 1906 (Art. 4, par. 3) was the first to:

prescribe charges for ‘‘sea transit.” This was changed to ‘‘mari-

time transit’” in the Convention of Stockholm 1924 and subsequent

Conventions (Art. 70, par. 1).

‘The language of the Act of February 14, 1929, follows sub-

stantially the draft recommended by the Postmaster (Annual Re-

port Post, Office Department, p. 87). House Report No. 1788 to .

‘accompany H.R. 6865 (the Act of February 14, 1929) states that

Comptroller General holds that the rates per pound then being

paid could not continue unless it: was shown that ‘the postage col-

lected from the mails dispatched on-each trip of a ship is not less |

than that the rates fixed. In order to avoid the great and useless

amount of work involved in such an ascertainment, the Postmaster

General recommended that the ‘law be changed.

view that gross weights of all mail (including sack con-

tainers) and empty sacks tendered by U.S. postmasters

for outbound transportation, ix an obligation of the Depart-

ment and: that compensation should be allowed and Paid

at the applicable. rates. It was also stated that the

exclusion of weights of sacks containing mail had no

‘counterpart in any other system of transportion utrlized

by the Department (Finding 29; App. pp. 25a, ida); that

there was no precedent in commercial practice for exelusion

of weights of sack containers (Finding 4, App. pp. Ta,”

3oa)¢ and that the practice had become aggravated by

- returning empty air mail sacks. Notice was given that

on and after October 1, 1950, that any mails tendered ** will

be accepted and transported by this company on the condi-

tion that compensation for the transportation .. . Will

be computed Upon the gross weight (inehiding sacks) of

mails so tendered and transported’*; also that empty

sacks will be accepted and transported with the distinet

understanding that compensation will) be claimed and

demanded at the’ rates specified in the Pastal Laws and

Regulations for Other Articles.’ (Finding 19, App.

‘pp. 44a-46a).

‘On July’ 14, 1950, the Neting Assistant) Postmaster

General replied to petitioner's letter, the pertinent portion

being set forth in Finding : YO (App. pp. 16a-19a, 46a- 4¥a),

to the effeet that pursuant to iS U.S.C, 1724. plaintiff

" Was rejuired to transport mail adored by the Post-

master General and upon refusal clearance of steamers

—_—

shall be withheld Upon ‘notice thereof to the elearance |.

officer of the port; that compensation for steamship

transportation ix paid on the net weight of mail involved;

—and that it is the universal practice not to pay for weights

of sacks. used. in connection with the dispateh of regular.

or parcel post mails or for the return of empty sacks,

either in transit through foreign countries or by steamers.

dt was stated that the practice ix apparently based on

provisions-of the Universal Postal, Unien Convention, the

; | ‘S

thien present one being that siened at Paris, J tly 9, 147.”

The Assistant Postiaster Generalagreed that some action

; should he taken towards possible payinent for weights of

sacks used in the dispateh of mails as well as for the retin

of empty sacks. but until something was dene cby the’

Universal Postal Union, it would be mecessary for the

United Fruit Company to accept any mails tendered) by

United States postal authorities in aecordance with rules.

and. regulations as seteforth: by’ the Postmas ter, (Gieneral.

(Finding: 26; App. pp. ba. Ia, 4ia- sa).

Petitioner replied eer ae 29, 1950, that it —

its obligation to transport the mails pursuant to IS VU,

$1724, but disavowed any oblivation te transport) sae “se

containing: ‘ails or elipty x: acks without compensation andl

aoe ‘in earlie T Soeition.- It Wis requested ma pee

mii at rn time the net Seight. statements of ania Are

furnished. (Plaintiff’s Ex. 4: Finding 21; App.-pp. 21a,

| 49a). . “3 |

On: and after, Detobes rT 1, 1950, the Departme nt continued :

to tender mails to petitioner, ; The United States postal

authorities in the Canal Zone and Caribbean ‘area began:

firrnishing statemynts of the gross weights ‘of mails dis-

patched on petitioner's vessels. Vonchers were filed for

aR on the basis of the gross weights furnished:

a —_— —— #

* The provisions of the Convention relied upon, which are quoted

in the hey eo inding 20 J relate te the settlement of accounts —

- for territorial and maritime transit between: Postal) Administra-

‘tions on the basis of statistics for 28 days every three vears, which

exehide from the. statistics’ the weights of all official” mail, prisoner

of war mail, and ‘free for the blind when enclosed in separate sacks,

also sacks’ containing empty sac ‘ks? and in addition. the debtor

country is given a credit of 10 per cent on the frane amounits.on all

other sacks containing regular mails, ify order to take account of. the

weights of sacks and packing, as wyllas any exempt mails enclosed

therein. See Articles 153, T4 dad 1 of the Paris Convention

in annexed Appendix, pip. 66a to 68a.

the Depagtinent revised the vouchers and made payment

cof the net weights of the mails. The furnishing of gross

weight statements were stopped. (Findings 31 and22: App.

pp. 1a-20a, 49). The tender of the mails cd@tinued and

payments made only for met weishts as theretofore. The

matter of handling and possible payment for empty sacks

and sacks enclosing the. mails was to be considered after:

‘the Brussels Convention to be held in 1952 (Fuidings 23, -

24; App. pp. 20a, 50a).

The Postal Regulations Section 120.7, pagagraphs (b) »

‘and (¢) were amended effective August 1, 1954 (App.

pp. 58a, 49a) abolishing the previous. distinction ‘in rates

for letters and posteards and) for other mails and

establishing single rates in ‘teents pound-net weight’? for

all mails, on an ascending scale according to distances, -

varving slightly for certain short distance zones from the

maritime transit rates in Art. 78 of the Brussels Conven-

tion, which were on a gross weight basis.

“On July -23, 1954, petitioner sent a further letter to the

Assistant Postmaster ‘Gerferal, reiterating its previotis

protest of June 16, 1950, and in addition served notice that

‘on and after August 1, 1954, petitioner would demand

reimbursement for expenses in trucking mails from the

Ts)

post offices to the piers (Finding 26; App. p. 22a, as’

amended by Gourt, p. 51a). The demand for reimburse

ment for trucking the mails from post office to piers was

baséd upon Article 78, paragraphah which defined maritime

‘transit. as beginning when the mbils are place under

hoist and ends when’ diseharg4) on the wharf. The |

Assistant Postmaster Gener acknowledged: reeeipt of

petitioner's letter of July 23, 1954, without any comment,

(Plaintiff’s Exhibits S and 9).

Somnencmeaminciy oo

tiew to court's substitution for the Trial Commissioner's Finding

°F (Appoop. 22a) an entjrely new Finding 27 (App. pp. h1a-53a )

based pon a letter from Assistant Postmagter General John €.

10 . regi

HOLDING OF THE COURT BELOW

The Court of Claims, on the basis of conclusions of faet

which differ from ¢ertain material findings of fact ly

the Trial © omission’ r. hele .

(1). That the: rates per pound line dy Seetion O70) (Cb)

ofthe Postal Regulations, 194s; fcovered the earriage of

sacks, both’ wavs, as well as the articles whieh they eon |

tained; that had there been any intention-to pay additional — -

compensation for the carriage of the sacks which enclosed”

absence of a provision for additional payment would seem

otirshow that none was.to be paid. , (App. p. On),

Allen to the Auieiican Merchant Marine Institute: with respect -*

to the applicability of the rates’ on and after August 1, 1954 The

letter in question is obvieusty self serving in that it contains stite-

ments as te the coverage of the rates on empty sae ‘ks ant] the

transportation of the mails from the post office to piers which, are

net a part of the regulation issued that day The Court was :

urged to amend its Finding 27 by restoring the Trial Commis.

sioner 'y Fincdisng 27. also to inelude four letters in evidence bearing

on theesubject as follows: ,

(a) Letter of Oetober 92. 1953) from the President-of Amer-

jean Merchant Marine Institute te—Assistant Postmaster | ~

General Jobs CAT (Gov't. *Ex. 14A), ;

Letter of June T6, 1954. from AMMI to Assistant Post.

master Joho ©. Allen (Giov't. Ex. MiB), a

ere) Letteroof June 30, 1954, from Ausistant Postrmaster Gen

eral John Co Allen in reply (Gov't. Ex. 4B). and

(do Letter of duly 23. 1954, from jietitioner te Assistant Post.

waster General John ©. Allen ( Plaintiff's Bx s, Gow 't.

Ex. 14).

7 None of the rate regulations in, effort up te, aor os od, 1953,

(dischoses that the: rates: per pound Was applicable to net weights,

or that the rates excluded weights of sacks whieh eontained them,

or the weights of empty sacks. neither de the Post Offee W astalls

het Statements of Weights of mail show any exclusions of weights,

either before or after August 1 Yd. (Plaiitaf’s Exhibits TS

OO, 61, 62 and 63, alse actualy; youll, and weight. statements, —

Plaintiff's Exbibits 40, 4] and 42 . : ,

(2) That both parties Krve wothat in order te earry the

letters and posteards the steatmslipoee mney, band te Inrines.

the sacks back and the mate fixed for carryine the letters

and posteards, mot only covered eartyine the saeh~ in -

Which they were contained, but also covered *thringine

back the empty sacks oO Nppe op. Meee deat ther th ~ did

net apply to the empty air Sr ~aeks, (Ap. ec

3) That Is. § 1724 is authorits for the amended

Section P24, 2(h) " onion Ausust 2. 10d, reepacrime stecin

eh ovape anu

‘yoing riail, it pl that the rates fixed by the Postoiaster

ship COMP ES fer. Araiite fer the pee pat collin to ye

‘General Section TOT Ub ie) were “intended2* hy lym te

cover compensation for this serviee, as well as transpor

tation by, sea: that the f failure te prov ide for additional

‘compensation indicates the faites fined. for carriage of

lefters. ete. included all servjees ine idental the ‘rete. (Ago.

i meet). , : a a

“(4) That the Ne tte . of uly 14, we Oh frota the Naw-tant

Po-tinaste T (rene ral i(k recliner “d) wt itte " prion’ tev th.

period involved im the present stits,, rejected aselainti ll

protest and notier of Sine: 1, Tw (Findus 1%: App

pp. 44a46a) that mails tendered on and atter Oetober 1,

1974), would be accepted ane tratiaportest Gn condition that

compensation be calculated em a gress eight basis”

(7) That the Postal Union Conv titien held ‘in Bernsset

wn 1 refi al to change the “Atsis of prea Mie nto com

be naation. and continned to compote it. om the net weight

of the contents of the sacks.

"Petitions rsubmits the letter of Daly Th 100 Finding 200 did

net rr hese “he Post Office De part hie « f ita L- yal lal. hits to com

pe Neate on # gross wermlht basis on maths temdlered em and after

Oetober 1. 18, ete of- the. complete lack of acquiescence as -

‘demonstrated bes repeated prmsitomts bas a oS and persistence

nits original position see Findings 4 24. v4. 26, 30 and

4. App opp Taz ba. Mia Ola, ham. ‘

- ERRONEOUS FINDINGS AND CONCLUSIONS

| | (1) Empty sacks asd ompty sir mall sacks in claim were carried

on same trip as the mails |

-. The court's conclusions that the outbound rate applied

to net Weights of letter-, ete, net ants covered the carriage

of the sacks which enclosed therm, but also covered

“bringing back the empty sacks." indicates confusion by |

the court as 40 the -empty sacks aetually invelved in

plaintiff’. claims, (See Findings 14, I, Te and 1s):

The use of Post Office Forins Seactibed im Kinelimes 14

and 18 may.be illustrated from Plaintiff's Fhibit< 40, 41

and $2, 6.9.. Post Office Waybill of Sacks Dispatehed to

Habana per SS Meraran” sailing ofrom New York

October 5, 1056, listed sacks under fategories as follows:

Rep Larner (registe “en 2 Sneks-

Le. and AO} (Letters Tr All Ct hie: rs) < tele Sacks

Parner. Posr j sr

Eupry Sacks (bundles af Krupties j .-. we Sack =

: ‘Total — a 784 Savks’

Reveived the Mail Navi je my on = W aybill

Totaling 784 Sacks:

Date . For Commander, . .

The Meraras also had a separate Post Office Wayhill

for mails dispatebed on the same date from New York to

Puerto Cortes (Honduras) showing a total of 223 sacks.

but ne bundles of empty Sacks. Empty air mail sacks.

were enclosed in the 22 bundles of empty sacks destined +

to Havana,* the number and. weight net recorded. The

weight statement (Findimgs 17 and 18) sent the ste ‘amship

seompany by the postmaster several days after departure

shows weights as foliows: z:

—

- pp. Mad4a). or

Statement of weights of mails dispathed from New York, NOV. ats specified

below fw United Pruit’Co, Vessel METAPAN Registry US. sailing Oe /

tober 5, 1056 ran eek

; United States Matls Forcign Transit closed Mails

: : re : (homered

. ‘ . Parcel Letters . Prints Mails

Destination ‘Petters Prints Post grams + grams grams |.

- i ,

digs 4.529 H5 " Geen 2.5.6 259.0 7268 S02

Howluras * 5 Ole oan SATs 26,328 2. Whe 254 S47

——

- -

Tat i) Ceres

Total Pounds Poe 94.038 °9.993 276 S185 D346

< ya re _ Postgiaster

The Me juhits shown ould not he identified with the sacks

as listed’ on the Post Offies was bills. ie inding ww: App.

“The court's conclusion that the da finite rates named in

Section 120.70b) (App. op. 28d) for letters and posteards

were intended” by the Postmaster General to cover the

sucks-which contained them sees farfetehed in view of

the faet that the Acting Postmaster General in his letter —

of July. 14, 1900 (Finding NM), stated that it was the

practire notte pay for/ weights of sacks used in connee-

tion with the dispatch of regular on pareel post mails or

for the return of empty sacks (to the foreign countries

tee Whieh they betomsy ; that the practice was based iipen.

Article 153. paragraph’ 7. and Article 16%, paragraph 5

of the Paris Convention governing the’ settling of accounts

letween Postal Administrations, If we tinderstand -the

court's lagie, the etatene nt would: seem to effectively dix

pose.of ans conclusion that the rates, for letters egvered

the weight of the’sadks containing mails and empty sacks.

e tainly, the settlement of accounts between Postal Ad-

ruinistrations. which éxelude the weights of sacks, cannot

lesteally be const ried as proof that the United States

has pari the ste amship palin utilized bw. it for all the:

nails tendered and -carried, ineluding the ene ne sucks

and « mpty, sacks,

The Postmaster General fixed a class rate for Letters

and Posteards, and another class rate for Other Articles,

including parcel post. Without more, logic leads to the

conelusion that the rates were to be applied te the gross

weights of the particular class of mails as tendered by the

post office. ~The same reasoning would apply if the class

rate was so much per enbie foot! The deduction of the

cubie footage of ‘sacks enclosing mails would be wholly

unrealiatie. ;

(2) Requirement that mails be picked up at the Post Office and

‘ trucked to piers yb

The court erroneously olds that the rates for steatm-

ship transportation vend inte to cover compensa-

tion for-yacking up fhe Anail at the Post Office and tracking

to piers., As evidence to the contrary that such was the

intention, the trans¢ript of testimony of Witness Greever

Allan (Tr. 442), an official of the Post. Office Department

and a member of the Technical Transit Committee, shows

_ that the original draft proposing amendment of Section

120.7(b) of the Postal Regulations (Plaintiff's Fy. (i,

‘marked for identification) fixing. rates of payment of

compensation for United States mails and foreign élosed

transit mails on American flag ships and ships of foreign

registry, contained the following -paragraph :

The rates above include transportation by the steam-

ship companies of the sacks of mail,’ineluding pareel

post and sacks containing empty sacks, from the post

- * office to the transporting vessel. mae

2 The amendment effective January 1, 1934, omitted the

quoted paragraph; likewise, it was omitted from the

further amendment effective August 1, 1954 (Plaintiff's

Exhibit 18, pp. 12-16). e

/(3) The Brutsels Convention of 1952

The Coort erroneously eliminated in Finding.25 5 the Trial

Commissioner's findin that the rates for te vritorial and

maritime transit were applic able to gross weights of letters

and other articles, not including parcel post, and defined

maritime transit as beginning at the moment when the

dispatehes are put under hoist and ends when they “have

Deen unloaded at the wharf. (App. p. 25).

a ‘a

The Court erfoneousty substituted for the elimination

its finding® in Finding 2 (App. p. dla) the following:

the proposals that gross weights replace net

weights as the 00 of comtpensation for carriage of

amy the empty, sacks be counted as mail were rejected

by the member nations...

. The Court ix clearly confused as to what was rejected.

The Convention adopted territorial and maritime churces

on a “per gross kilogram’’ basis. (See Trial Commis-

sioner’s Finding 25, App. p. 21a, and, Article 78, Appendix

hereto, page 65a). a ,

The record of the a ay in the Brussels Congress

shows the Congress rejeeted Proposition 279 to eliminate

the 10 per cént reduction in the seftlement of accounts

between countries (not between the Post Office De ‘partment’

and the steamship carriers). Proposition 279 proposed

-to amend Article 179 of the Brussels Convention (which ix

the same as Art. 161, par. 5, of the aris 1947) to read as

‘follows (translation):

” In order to remunerate the countries or third

services for the transport in return of empty’ sacks,

the transit charges ‘aecoints gre not redueed to

account for exempt correspondence in the sacks

containing Other categories of correspondence.

ft he reasons for Proposition « 279 stated that ( translation)

\~ "In ‘the new section 5, it was considered advisable to

‘16.

specify’ that the accounts of the transit charges should ‘tie

longers be reduced by 100, the sappression .of this

_reduction con&tituting a certain” re muneration — to thi ‘

countries or third sérvices for the return of empty sacks

in transit.’

Proposition 280, also rejected, proposed that instead of

ralucing the actount for closed mails by 1O0¢per cent: the

amoun. te ine refsed by 3S per cent, because some countries

Jiad expressed the opinion that to remunerate the transit

of empty sacks, it was not sufficient. to discontinue the

10 per cent reduetion provided in. section 5, but that in

addition the acebunts should be inereased by 5 per cent.

(Documents dui Congres D’ Bruxelles Wz, Tome d,

pp. S83-534. Post Office Department L ibrary).

REASONS FOR REQUESTING WRIT OF CERTIORARI

A writ of certiorari is requested for the reason that the

Court of Claims had (1) decided:an important question of

federal law not Ieretofore decided by any court, in a way

which is iv conflict: with legal principles in - previously

decided cases of the Court of Claims and Po thix Court: -

2) the decision hinges on the intgrpretation of cerfain -

provisions of the “Universal Postal’ Union Conventions

not heretofore decided bysany court; and (3) the deci--

sion ix predicated on certain erroneous conclusions of fact

whieh are contrary. to ‘the findings -of fact by the Trial

Commissioner.

The decision supports the survival of the ancie ont practice

of the Post Office Department in calculating compensation

for steamship transportation pursuant to RUS. 4009, instead

of on the basis of the maritime transit rates (sea transit

rates) authorized as a rate base for compensation for

steamship transportation on fo oreign flag Vessels by the

Act of February 14,1929 (39 US.c, 64(a)).

Under B.S. 4009 compensation was pater at not”

exceeding the amount of postage on the mails carried, thus

” ae ; ve -

Po a

excluding from compensation the weights of all mails

exempt from postage. and transit charges, such as official

mail én international postal business, prisoner of war

mail, free nail for the blind, as well as weights of sacks

cenmtaining mails and empty sacks being dispatched by the

Postmaster General to the country 1 Which they belonged.

The logie back of the decision may bé interpretyd to mean |

that compensation measured by the basis of settlement of.

accounts between eountries pursuant to Postal Conventions

could he intended to cover the carriage by steamships, of

mails exempt from postage, as well as the sacks enc loximge

the mails and the empty’ sacks, which was the basis of

compe nsation under RLS. 4009. | | ‘

. ? :

1. The term “mail” includes sack cOptainers and empty sacks

‘In the cases at bar the special defense raised by defend

_ant invelving jurisdiction.of the Court of Glaims-‘over the.

subject’ matter of* sacks enclosing the nifil& and empty

sacks, the court by Judge Whitaker, in‘granting petitioner's x

motion to strike the special de ‘Tense, said that—

It has long heen retountned that the mail includes

not: only the lettérs themselves, but also the con-

tainers. It was so held in United States v. Marselis,

026 Fed. Cases 1167: United States v. Wilson, 28° Fed.

Cases GOO, TIN Lo nited State sv. Tnabet, 41 Fed. Wor

*.* * Congress, in the passage of the Railway Mail

Pay Act of 1916, 29 US.0% 529, 539, reeoenized that the

sacks were a part of the mails when it authorized the

Postinaster General to withdraw empty bags‘ from

~ the maik’’ and transit them by freight or express, and

later to ore; them ‘*to the mails.’ ° *° * United

rut Co, Vnited States, (V58),- 144 Ct. Cls. 4:

copy ‘wana in Appendjx, ‘pp. 2a-da’ >

t *.

\ -

/ . .

— .

= 4

oni for transportation of empty sacks.

¢ . “48

2. ‘Suits are for compensation : ‘based upon the wale of mails

including the sacks . 7

The court holds that compensation. coniprited on the net

weights ‘tcovered * the carriage of the sacks, both ways, as

well as the articles which they contained; although ‘there .

was deducted the weight of the mail sacks from the weight

oof the sacks with th@ letters and packages contained

thervin,”2 The eon al holds that the rate covers “bring:

ing back the empyv sacks."" and that plaintiff ‘seeks addi-

tional compensation based on weight including the ‘sacks >

e845

This is in conflict with the court's previous decision by

Judge Whitaker in the jurisdigtional Challenge by defend-

giant in the easescat bar. The deferndant’s fourth speetal

defense was that the court had no jurisdietion because to

render a judgment would require. the cotirt to fix rates

for the carriage of sacks, the court said—-

“This is not true. “What ohetntift | aske us todo is to

hold that the sacks were a part of the mais and that it

is entitled to compensation agit. a3 the wert of

the mails including the sacks. arnt te werrht or the

empty sacks geturned. The rates are fixed by the Post.

master -General, The (lle ‘stion prese NMted “te as is

whether ‘or het plaintiff is entitled: to compensation

at these rates on the weteht oof the mails ineludine >

“the sacks.”* United Prt ta.-%. Pinite do States, supra.

Regardless of the semanties use ad by the. rourt belowsthe

facts are crystal clear from the letter of the ANeting

Assistant Postmaster General to plaintiff dated July 14,

150, that the Post Office Department has for Years

‘followed the ‘practice not to pay for the weich tx of sacks

used in connection with the dispateh of regular or parcel

® Petitioner's claims are for compensation for empty sacks ten-

dered by the Postmaster General or by his direction, and not for

“bringing back the empty sacks’’ tendered by anothe 'r country.

post mails or for “the Southbound’ return of empty sacks,

either in transit through foreign countries or by steamers.”

Furthermore, in justification of the practice net! to bas

for empov sacks, or the sacks used ih connection with the

mails, the Assistant Postmaster General quoted from. the

‘Paris Convention, Article 153, paragraph 7 ‘ty and Article

161; paragraph 5 (Appendix, pp. (iGa-H7a) Stated that

based upon the quoted sections of the Convention the

weishts of cempty sacks are not taken into consideration

as regards statisties and transit charge aecounts.”” How-

ever, this is not the basis oferates to be paid steamship

enrriers under the Aet of February 14, 1929, (39 0 SC,

£ OO4(a)). :

3. Steamship carriers should not be required to become un-.

willing partners in generosity between Postal Admin- ~

istrations

Phe steamship carriers should not be made unwilling:

partners in the generosity between Governments under

Postal Union Conventions through threats of withholding

‘of Cle ‘arances of vesse's upon refusal to accept the, mails

} }

at rates applied as the Postmaster General may ghaove,

The conflict, confusion and the overall complexities between:

the postal st: atutes and provisions of the’ Postal Union

Conventions as interpreted by the lower court should be

clarified. by this Court. ;

MN thority for Postal Vent ions is containe Vin 5 USS. Par

and PRON Ge fees th at-fea the PULP pase of making he ‘tte sr post: a ee ok

metits With foreign eountries the Postmaster General. by and with

the advice amt consent of the Presdient. may negotiate and coti-

chide postal treaties or conventions, and decisions of the Postmaster

General constriujug or interpreting the provisions of any cotivention

af aeerexes by the President. shall he final and. conclusive upon

all officers of the Unite 1 States. The interpretation of the Acting’

Agsistant Postinaster General of the provisions of the Paris 1947

Convention (Finding® 20) were not approved by. the President.

The findings of fact show there wiis nocaequiescence in

the payment of Gompensation on a net weight hasts.

(Findings 19, 20, 21, 22, 28, 24, 26, 27, 30 and 31).

~The Trial Commissioner correctly found that compensa

tion for the transportation of sacks enclosing mail matter.

wits paid only forthe net weight of the.mails in the sacks; |

no compensation was paid for the empty sacks transported

hy plaintiff. (Finding 27).

An analysis of the le tter of Jody 14. 19 “0 (F inding 20;

App. pp. 16a-19a, 46a-48a) from the Acting Assistant Post-

master General shows that no compensation was paid fer

sacks enelosing the mails? ner for empty sacks senf from.

the United States to foreign countries te which they he.

longed for the reason that pursuant to the Conyention of

Paris 1947 his Department does not charge other Postal

Administrations for maritime transportation «for the’

welghts of their sacks enclosing their mails, nor for their

empty sacks, in the settlement of transit, accounts. Of

course, the practice followed by the United ‘States is. re-

_procated by the other Postal Administrations and this ts

seaecatie the hasis of the lowe ‘reourt holding that—

This, of course, was equivalent to’saving that the rates

fixed covered the carriage of sacks, both Wars, as We Hl

ax the articles they contained.

This saaceiptieetians ve the Postmaster General and ap-

plied to all mails and all steamships and followed by the’

court is incompatible with the authority of the Postmaster

General under 3920 S.C. § 654(a) authorizing him to allow’

compensation for steamship transportation of mails in case

of a foreign vessel not exeeeding the maritime rates pre-

seribed in the Convention from time to time. The act does

not: conte mplate that the basis of compensation ‘to vessels

ef American registry as well as to foreign registry would

he equated to the basis of the discounts granted between |

Postal Administrations in balancing accounts between eac ch

} | "gt

other, The defendant demanded of petitioner the service for

Which it claiius compensation, and, therefore, the primary

liability to pay for these services is on the defendant.

Vonaite d bruit i 0.-%; Unite d States, 114 ('t. (Is. ON} (1945);

United Frait Co. v. United States M2 Ct. CIs. 519 ( 1949).

4. The Requirement to carry without compensation constitutes

‘a taking within the prohibition of the Fifth Amendment _

In esse hee, petitioner's suit was for the recovery of the

Jivlance aot Compe nsation on the weights of csaucks as a part

of the mails (United Fruit Co. vo United States, supra)

Srequired to be transported i ste te IS U.S.C. 1724

under a threatened penalty of having clearance of vessel

Withheld for re Tusa to aceept inet transport. .Plaintiff not

being a free nent to refuse to mecett the mails te de rea,

the required transportation, without compe nsatif~n Yor a

part of the mails, constitutes a. taking of the use of

plaintiffs property within the prohibition of the Fifth

Amendment tw the Constitution. Pacific Muil Steaniship

Cou.v. United States, 28 Ct. Cls. Ve New York Ce bes RR.

Co. v. United States, 65 Ct. Cls. Ho, afirmed 279 1S. 75.

CONCLUSION

For the foregoing reasons, the Court is urged to grant

this petitien for a writ of certiorari to the Court of Claims.

Respeetfully submitted,

War lL. Dexsine *

One Farragut Square South

Washington 6, DOC.

Counsel for Petitioner —

OM Counsel:

Atasx FP. Woutsterter |

Miasest He Laxp

Josern FL Meiiiss, Jr.

February 1, 162 rs | ; Be

APPENDIX

IN THE UNITED STATES CORE OF Od AIMS

oe Nous, 440s ane 208-57

‘: 96 Decided Dyecoriber <3, Wis, P

o ° _ er, . an ‘

. P 4

pee <0 9 wvewepe O-of* a em rene ++ oy — Laas

1: sora Fre ec OMPANY VTi ts ttt ees

= - s ; ona A

: Ur. Willeam 1. Dennina tor plaintiff. Me sss. Man ro

Waohlstetter, Ernest Wo Land, and ee F. Mullins. SV cc

were on the briefs.

Mr. Thomas EF. Mitiorern, with whom was Mr. Assistant —

Afterneny General Geordae Cochran Doak, tor detenmdant.

* a *-

ON PLAINTIVE 'S MOTION TO STRIKE DEPENDANT = THIRD AND

PoURLH SPROIAL DERE NSS

Wrrranen, Jadae, obs Hivercd the opinion of the court:

These cases are before the court on plaintiff’. mosien to

strike defendant's third and tourth special defyenses, In

asmineh as these defenses raise the question of the jurisdic

tien of this sourt, we think if is Tiecessary to now act pon

the question raised by them. Ere Basin Metal Products

Cov. United, States, 123 C. Cls, 483 |

lin “ase No. 4b S6 plaintiff, a teainship cofmpany, sues

for compensation for the carriage of mail sacks. from the

l nited States to foretan ports for the ab rind Oetarer 1.

“PO te Analy SL. V4. and in ease Neo Ws 57, for the ie “ried .

af Annet 1. Vd ter | Desere-ter beer 21 Ve Tr baoth y* tse ot

is aljeces? that, in apply ine the rates of compensation fixed

hy the Postmaster General for the carriage of mails, there

was deducted the weight of the empty sacks from the

- @

“weight of the sacks and the letters and packages contained

Fe . . - > °

lie rein, and compensation was pard onky for the met wereht

ofthe maths. Ut tscuise alleged iat compensation wae

refused tercempty mail sacks returned by plaintii te the

lace of oriat

Petemdant’s third “defense. whieh plaintaf moves’ te

strike, is that juri<diction of such aosuit is within the

- oxelustve jurisdiction ot the Scag triet inane utieder the Suits

Admiraity Net (41 Stat. - 450, » TAL-TAM), cared ite.

pee defense as that the saiute i~ oe pon tectin rates

fer the transportation of maths, Which detendant allewes i%

Ieventieh its juriseliet ion,

Defendant does net allewe thaf a suit for jhe cart tage tH)

mails ds > within the exelusive. Jurisdiction of courts of

witiralty, bat it sis the cineiileaieng rs in whack the amiails are

carried are neta part «of the mails and that aosuit tor the:

carriage of then is within the exclusive juriedietion of the

audtniralty courts. ° ;

Hy it i conceded, as we think it mustebe, that this eourt

has jurisdiction of a satt ior compensation for the carnage

of the mails, exelusive of the sacks in which the mails are

carried, it Weuld seem te berder on the absurd to say that

it has.ne jurisdiction of suits te recover compensation tor

the carriage of the containers themselves. It would’ indeed

be Strange if Congress intended that a steantship company:

sfieuid faing it< surtin this court ‘Yor compensation ter the

carriage of-letters and packages, and should have resort te

the courts of adinivalty to recover comipensation cor the

carriage of the sacks in Which the Jefters and packages were

earried., ae ,

* ie

It has long: been recognized that the mail ineludés not -».

only the letters themselves brit also the containers, Ttow as

ese hebd am Conated States V2 Murselis, 2 Fed. Cas. We7--

lo nite d States v. Wilson, Js Fed. Cas) ou, 71; I nited

States ¥. Tiahwet, JV Bed 10) Webster's Dictionary de.

fines oman’ as t¢ The bay if bags, with the letters, papers

Bae

or other matter contained therein, conveyed under public

authority from one post office to anether, * * °""-Bouvier’s

Law ffictionary likewise defines it, citing as its authority

Uoneted Stotes ve. Papp, 30 Fed. STS, We

(ongress, in the passage of the Railway Mail Pav Act of

1916, 20-1 SS. Cee, cette, recocnized that the sacks were oa

partof the mails when it. authorized the Postmaster Gen

eral to withdraw empty bags ‘from the mail and transmit

‘them ly freight or express, aged later to return thent ‘te

the maais.”* g . .

Viainly, the carriage of the containers in whieh the fetters

are placed is as much a part of the carriage Of the mails as

ix the carriage of the letters-the Mise Ives. Can one imagine

“acarrier bec fe Popuire ‘dote carr y separate pieces of mail

withioit plac ine them in a comfainer of some sort? More

over, the return of the empty mail. sack. is certainly aw

Teer ssary adjunet to the carriage of the mails: These mail

sacks are used over aned over, uted, of course, the carriage od

the mails invelves the return of the empty siseks in order

that thes vag bey send again, as the ‘Postal Union Conven

tien of Juiy 11, io, recognizes, In Article 169, it pre

Virles: a ‘

Barring agreement to the coms rary between the eorre

spending | Acdministrations, | sae k~ must) be returned

empty, bey the gent nasil, in a ctireet (is parte for the

‘country te which SOch sack~ belong

s * “_ « ° e e ‘ . ‘ u

Hf the einpty sacks to be Antti ane Hoot fevee titatiet

ons, thes may be placed insiile the <acks containing the

correspondence; otherwise, they must be placed in

separate sealed saen= lateded with ‘the mates of the

exchange offices. '

As stated. the defendant does not assert that this court

lacks forisdiction of a suit for compensation for the ear

riage of the letters and packages themselves, nor could it

maintain such at assertion. Ner han jt ever been asserted

—/

P . dae

that the Suits in Admiralty Act was mtended to apply te

J tmails, The purpose of the ehngetanent of the Suits in Ad

‘omiralty Net, saprd., was to prevent a Vessel of the United

Stites. or cut coy bn lonvingw4to the CE ongted States, freety bee ing

tied up by a proceeding om rea in admiralty. Blawherd

Bros. v. UC wile A Slafes, BES, 452; Brady ve Rooseoellt

SOS: Co OW US. 575. Bat no ene, betore or after the

passage of the Suits in Admiralty Act. has ever asserted

that by a dibel ai rem a person might tie up the United

States mails. The M reohant AD Fed. Cas. ys The Admiral

Frans, 286 Fed. 442. | 3 ee

We de not think thaf the, Soit< in Admiralty Act was

initeniehedd te apply foam suit involving United) States mail.

Fhe bench and the bar have never thencht that. it «lid.

Always it has been ‘essumed without questronm that the

admiralty courts did net have jurisdiction of such “its,

armed that this court did have jurisdiction. Stramship Cav,

Vnited: States, WOU. F215 Pactte: Mad Steamship Ca, s.

lonited States, 280. Ols 1; Luh whee Ls. %. dé. ¢, Lonited

States, tH C\Cls i BS SATS: tei ricane West Afr

caw Laine. Ine. v. Lonits Ad States, THe, C's, whe, cont. din, wy

[oS 6US: Dollar St amesthap Lines Vv. Tonited States. si.

Cis. 46: Doitdd Frat Cov. United Stats 6, USO, Cds, Ge

United Fruit Co. vy. United States, 1s a tls. THN: Stundard

Bradt and Steam shagi ‘ov. v. United States, 1B €. (Ts, G59; ?

/ wite d Ky uit Cw, # Iwate ALState i 112 ee (‘|s, Te Mion

VWadormack Lines, Ine. - Tonite States, WAC. Os. ry

cont, den. 342 US. 876: Cnitted Fruit Co. ‘, United States,

ae ne ed Bo 7 ee

AVongress also has assumed that this court is the proper

forum for such suits, as evidenced by a number of speckal

Acts of Congress conferring jurisdiction thereat on this

court. | ‘ .

Furthermore, as we pointed out in Continental Casualty

Cov. United States, CCls. No. 6-57, decided December 4,

Wie, it it be held that the adiyiralty courts have such juris

la !

diction, a large part of plaintit~ claim wold be barred by

the twoevear Statute of Timitations applicable to suits under

the Suits in Adenicalty Net. Vlaintif’ quite rightly has

assumed that its suit could be brought within the -ix year

period of limitation ay plicals He te suits in this court. Uf it

“now be hekd that such <nits must be brenghit in the ad

wiralty court, then much of plaintiff’. claim is barred by

the statute of limitations. In view, of thee lone ie ptiiesaerniee

hy the Governnient in the bringing of such suits in this

court, it cannot new in good consete mew assert that such

auit= mast be Sronght within the two-year period applicable

te suit= unde the Suits in Admiralty Net. :

Defendant's tourth <peeial defense is likewise untenable,

_- +. . .- . ¢ . - . e

It there assert: that we have neo jirisdietion of plaintiff's.

cause of action, beeanse, to render a judetie nt, we would be

required to fix rates for the carriage of the empty mail

sacks, This is not trae. What plaintifl asks us ‘te de in te |

hole that the sack were a part of the mails and that it i-

entitled te compit=ation biygcrsapen the wets chit of the sarail-

including the sacks, and the weight OMthe empty syck= re

turned. The rates are fined by the Postmaster’ General,

The question pre -~ ‘hte «Lb le us I~ “ «the ‘ror tet pelisinatast’ § I~ ;

entitled to compe naation at thex« rates on the weathit- of the

mails including the sacks, Sue h a puit is within the juris

diction of this court,

Plaintitt’~ “motion is cranted, and defendant’. third and

fourth special cic fons + ase stcken,

- It tse ordered. 4 net

Lana Mens . dudar;: Miarurs. Juda ; amd Jones, Chi f

dudar, coneur. ;

IN THE UNITED STATES COURT OF CLAIMS

Nos, S00, and G8: NG

(Filed July 6, 1240)

loser Fecir Compasy v. Tue Usrrep States *

. ct ’ e i s

i .

Report of Commissioner :

To the honorable the Ciupr Je DGE AND ASSOCIATE dv DOES

or Tih tL xitep Spates Courr or . LAIMS:

. Pursuant to the order of ‘re ference in the above- entitled

cases the “undersigned commissioner herewith makes the

following report of his findings of fact:

» Mt all times mate ‘rial herein plaintiff Wis, tsi is, a

corporation organized and Sinjimy unde ‘r-the laws of the

State of New Jersey.

: plaintiff? operated a steamship line between New York and

New Orleans, on the one hand, and various ports in Central

and Seoth America, the Panhama Canal Zone, and islands in

the Caribbean area,.on the other. Plaintiff operated ap-

proximately four sailings a wee nek out of both New York and

New Orleans.

3. Certain of the ve&sels operated by plaintiff wer

_ registered under the flag of the United States and were

operated under demise charters from wholly-owned sub-

sidiary companies ; ce rtain other vessels were of Honduran

registry ggnd were operated under time charters from

wholly éned subsidiaries; other vessels were registered

under the flags of various foreign countries and were time

- 2. Prior to October 1, 1950, and continuously thergafter,

chartered from subsidiary or unrelated companics. Vessels

operated under demise ¢ ‘charters were manned by plamtitl’s

employees ; crews for the vessels operated under time

charters were furnished, by” the vessel owners, VP jatmtilf

exercised control over the operation of the véssels, whe thet YT

ntider detiise et time charter, fixed sailing dates anid itimes

aries, prov ited pe r spruce, and adve vtisedk to the , yveneral

public tor carge and uence rs,

thy Postmaster General of the U nited States,

oer

4. In it regular operations, plait nit revive ~ carze de

livered at the pior at the shippers’ expense. The carga is

rot wershied “t plaintiff; the shippers are. required hy Jaw

to give-the correct welt and the shippers” declaration of

weight ix accepted hy plaintiff: General carge moves under

billx, Of lading and, in @he (ase of Government cargo, on

Government form bills of lading. The rate. for sueh carge

are fived cither by plaintiff or, in trades where plaintiff is

ametiber of a shipping conference, by the conference, ape

are on a weight or meastrcnient hacia, whie ever prondaces

the greater revenue. As is customary in freight tariffs,

plaintiff's cargo rates are ay plied to the cross werecht of

the freight, including any packaging.

is. At all times involved in Meese ations, the tr: ‘avis prortia

tion of mails by ship from United States ports to forerg:

ports was required by law to be performed at rate = fined by

Vrier te and during the period October 1, 1950, to

Aueust 28, 1092, Section 125.20b) of the Postal Daw= and

Regulations, BMS, provided that miails Tor dispatch by out

ceine steamers shall be delivered from: the post office and.

that steamship companies, shall haul ‘a sacks fo the

eteamers. This regulation Wis ametide Hin August 28, 152

(Tedesignated Seetion P25.40b0) to provide that steam=hiys

companies. shall Av responsible for the transportation and

the protection of all incoming and outgoing mails, Mert 4 i

parcel post and eacks containing empty equipment f<ach-\.

hetwoon tie: post offices and the transporting vessel, The

‘ Ae)

. . Sa

regulations require thatvacman ride om the rear of trucks

(or Wagons) and protect the mail, and that registered (red

Liab ‘b) sacks shall be separately delivered to the steamship

company's representative at the post office and specially

protected during transfers and on pear vessels: The order

of August 2s, 1952; was amended June 30, 1954, se as to

refieve the steamship companies of trucking incoming mails *

from slap to the post office; incoming mails were aceepted

by the post office on the pggr effective on and after August

11054. This amendment was effectuated on August 1, 1954 >

by the Post Office Dopartme nt performing the trucking;

serviceson incoming mail from pier to the post offiee.

7. In case No, 460-565, plaintiff seeks fo recover (1) came:

pensation for the weight of satéks enclosing miuatls, and (2)

compensation for serene of empty sacks for the period

October 1, 1950, to July 3 » 4, ane i in« ase’ No, DN: ny for

- the period August 1, nt ‘ December 31, 1958. In ease No.

68-97, plaintiff also seeks reimbursement for the cost of.

trucking outgoing mails from the post offices to its vessels.

The plaintiff has been paid for the transportation of the’

mail matter enclosed within the sack but it has reeeived no

¢ Aompensation for, the carriage of the sack itself when con-

\alning mails or when transported as ane mpty sack,

8. Mails transported by plaintiff were iaheetie muails

originating in the United pics and maths of foretemorigin

‘sent to United States post offices at New York, New Orleans

and the Canal Zone for further dispatch to third ecoutitries,

Such mails of foreign origin are designated as “foreign

closed transit mails”* transit: mails’ and those post

offices at ports och ae transmitting such mas are.

designated as,*texchange offices’. Both’ domestig and for: |

eign closed: transit nails, enclosed in eanvas sacks orebacs

consisted of (1) letters, (2) printed matter (prints), (3)

parcel post, (49 registered sacks -of Lette ‘rs, prints and

-parcel post, and (5) diplomatic diXpatches, classified as

prints. Also transported were ‘sacks enclosing empty sacks /

being returned by the titst steamer available to the country

of origin, The empty mail sacks were (1) saeks which had

originaHy enclosed mails sent hy steamshipoto the United

States or another foreign country and which were being

returned te the country of origin through: the United States

postal servies, and (2) air mail Sae ks which had enclosed

mails flown into the United States and ow hich were being

returned by steamship. )

. Prior tovand after OQetober 1, 1950, plaintitf trans-

ad domestic and transit mails tendered by thes Post-

inasters at New York and New Orleans at the post. office

platforms ‘for delivery: to ports in Central and South

America, the Panapia Canal Zone, and islands ‘in’ the

Ca¥ibbean area. In addition, prior to and subsequent. to

he ‘toby: ed. P00, detter and print mails of countries signa-

tory to the Convention of the Postal Union of the Ameriens

‘atid Spain, were te ‘ndered at the Canal Zone and other ports

for tri ansportation on plaintiff's American flag vessels,

1), Plaintitf’s sailing schedules for all of its services

Were sent to shippers, freight forwarders and other, inter.

ested persons, and-were publicly advertised in the Secu

York Journal of Commerce and other shipping publica-

tions. Sailing schedules included United States ahd forcvign ,

flag vessels operated by plaintiff. The New York Dost

Ofice published a daily bulletin, for the information of its

cmployees and patrons, whieh Jisted in advance the sailing

time and pier of vessels of United States and foreign

registry seleeted for the dispatch of mails to foreign coun-

tries, and thy closing time tor the mails at the post Office.

1i.. The ** Manual of Information for Exchange Offices?’,

Which contained instructions: from the Post Office Depart-

“*

ment to the post offee employees of United States exchange

offices, contains thé following:

Duty of vessels to carry mail tendéred --—-Exe 7 as.

Otherwise provided hy treaty or convention, the Post:

[Oa

master General mas require the tran-pertation bY any

steaniships of mind fotsccon the Lonitead Staaters aatael aan

port iN nether eommiry ual thi: cutie tiscatieens” iNeed

under authority of law. ,

Arrandsmeouts with stecmestap competes: It is the

funetion of the exehanse offices at ports in thi Uo suttesd

States and possessions to arrange with od ~Teaniship

comipuinibe ~ for thes “ny Viien oft ‘athe catud parece! se

to othér countries or other overseas destinations hy.

vessels sailing from thos parts whose schedule ‘aa

itinerary mest With the rewnlations, Instructiefim ane

reeuirements is~te «loby the Department.

Action shonh! therefore be takencat such eXchange

offices to obtain information regardine prospective

sailings of all vessels by whiel the mail- or paircel post

made upoby such exe hi; ayer offices or reevived trom

other exe hange offices may be dispatehed.”

T he caforms ition is ebtaine al by communicating with

the steamship companics by telephone or otherwise or

throngh advertisements of the ti wimnship companies or

other notices carried in the daily press or other, peri

odicals that may be ebtained.

When a steamer is. found te be available for the

wonveyanee of mail or parcel post, Porm L006, titled

“ Steamship Notice Oeean Mt: atl Servier’ is fnatled-to

the office of the steamship company or duly authorized

agent. The form is self-explanatory and when filled ott

and returned by the ste: amship company or agent,

“furnishes, in addition to the name and registry of the

steamer, Information to accurately determine (barring

later changes) the departure date, ports ef call, arrival

dates and mails to be eofveved. Changes in the fime or

date of departure,‘or ports of call received by tele-

phone should be entered on the Form 2006 te show date

and time the information Was received and name of

steamship oftici ‘ial giving the information.

Delivory Time: > Mails are delivered to the repre-

sentative of the steamship company at the post office,

The delivery time or the time the final sack will be

delivered to the steamship representative will depend

upon the distanee from the post office te the steamship.

lla

pier snel ~Heoald bie iis close is practicable to the salling

“ftimeoot the steamer. to allow for the latest prossible °

; closing tine -of tails at the post offiee, 7 |

‘ ; ; > eee : 7 ie es

Hy the advertised sailing of

each of plaintiil’s “ls. the postmastérs at the exchange

offices addpe<sed te plaintiil a printed Form 206, entitled

“Steamship Notice Qeean “Mail Service’, for each of

plaintitt's advertised Vessels and requested for the vessel]

12. During the week pree

named in the form by the postmaster, the flag of registry,

the date aned time of sailing, the pier, the pogts of eall and

the expected dates of arrival, Prior to December Tod,

Porm “2iMw contained the following statement 3

‘In connection with the dispatch of mails, it is re-

quested that you fll in the blank below for next week,

‘and tail as seen as possible, but no hater than Wednes-

day of this week, in enclosed euvelope. Lf is important *

that ever port of call on the outward trip should be

aveen in the order me which they will be made with the .

crpited date of arrmalat cach pert. In the event of.

no departure, or sailing being nostponed. you will

please note the same hereon, and return to this officer.

If fromeany cause it shall be found necessary to post-

pone or advanee the departure of the steamship, im-

mediate notice of the’ fact should be sent te this office,

in order that advertisements and bulletins may be

altered accordingly. I, frequently ocears that advice of

stich changes is net received unt@ too late ty be of

service, and then only from tnauthentic sources,

Mails for dispateh by outgoing steamships shall be

delivered at the post office, at the time agreed upon, to

the respeetive steamship companies, who must convey

them to their steamships.

(After the signature of the postmaster, blank spaces

were provided at this point for inserting, after the

name of the vessel, the information requested)”

It is understood that the mails shall be carried in

accordance with the terms, conditions, and responsilyli

ties prescribed by the Postal Laws and Regulations of

Ila

the United States and postal conventions now in effect,

Mach truck (or wazen) conyesing mail from the post

office to the steamship wilh be provided with amu te

ride on the rear seeds te prevent pterterenee with the

mail or the possibilitweef aosack working bleese and.

falling, unobserved, inte the street.

After filling the blanks with the. reque sted information

for each vessel, plaintiff stgmed and returned the form. te

the postmaster.

The last two paragraphs of Form 2006 were changed in

December 14 to read as follows:

It is understeat! thatthe mails shall be carried in

accordance with the terms, conditions and fesponsibili-

ties preseribed by the Laws : soverniog the operation of

the Postal Serviee, tithe 39 of the Code of ‘Federal

Regulations, and postal conventions now in effect,

Mach vehicle used to- Aransport mails between post

offices and vessels, exeept the completely closed van’

type, the mail compartment of whieh must be locked or

sealed, stiall be provided With aman te ride on the

rear-and protect the mail When a rack type truck is

cused tie sacks shall be covered by a tarpaulin,

13.. To earry the mails from the post offices te the piers

at New York and’ New Orleans, plaintiff entered inte eon.

tracts with trucking companies under which plaintiff paid

for the trucking af @ minimum rate per bag on week days

and at a higher tate per bag for overtime periods, week.

ends and holidays. | The names of the truckmen authorized

to receive the mails were furnished to the pesi offices.

14. The mails for dispateh 6n a particular steamer were

temfered the trucking contractor at the post office platform

by post office employees whe gave to the truckmian a pre

liminary count of the number of-sacks loaded with no indi-

eatien of whether the sacks contained letters, prints or

empty sacks. With the last truckload, the post offiee fur-

‘mished Form 2088A, entitled ‘ Waybill of Sacks Dis- -

”

Ke i ilk ; Ma

patched’, and Form 2OSSB entitled *Waybill of Diplo:

fiiatic Dispatch. Powehes Form 2USS A) listed registered.

sachs according to eountes of oriin and port of destina

tion: however, only the count of sacks of C)y letters and

prints, (2) parcel post, and 3) motion pieture films, was

shown, without reference to origin. Diplomatie pouches

Were listed accordine teoorigin ane destination. A res shone

of Form 2USSA in Sepdlember 1955 provided space for

listing as part of thet mail’ advised on the waybill the

numbersol sacks containing empty mail sacks.

15. As crequired by regulations, the mails were given

special care for their protection while being trucked to the

pier. They were the last item placed on board the vessel on

departing andtirst off on arrival. On board the vessel, as

a security meastre, the mails were placed in locked com-

bo “Ga

partments, containers or enclosures.

16. In connection with the weighipy’ of the mails prior

to dispatch, the Manual of Information for Exchange

Offices stated as follows with regird to letter and print

mails ; : , 7

. . Faas e . P . * . Q °

Bagyving, Sealing, Weighing and Reeording

. 4 a

Pavntient for the converance of mails by steamers to

other countries is based on the wet werght of the mails

trate for letters is more than that for prints). There’

fore, in wetehing the sacks, the aief weraht is recorded.

With regard to registered mails, the Manual stated:

. * * . * . 4 . 2 *

In closing out a dispatch or when a sack ds made up

oat oany other time, the articles to be enelosed are

weighed before beme placed in the sack and the net

weight (letters and prints separately) is recorded,

. ~ oe . . * . . : * *

_l4da

‘

With regard to parcel gost mails, the Manual stated:

° ° ‘. ° . e ° . @<

Bath bl parc dss Ordinary pareed post packages

Whiteh ame ter be advised samiphy im balk on thie puree).

jmynt ball (Form: 2004!) are placed ditectis im a sain

after separation fon thie porespoer eo cebiaatice flier an thy

country of destination. Ns each sack bs munis ge it ie

entertd on the Wacwiny sheet separately, <hewins thi

suck number in consecutive order Coommenenar with

‘Now 1 for each dispatch), the number of parcels of each

Weight wnitoinm the sack cif required ty the country of

destination), and.the net wercht of the pared.

o * @ . .. . . . ° .

Larvae Volume i

& * © * } ° , . . "e .

In following this method the parcels for each os

Change office are separated by weight unit groupe and

each group is bagged separately so that all the porreei-

ina sack will be of the same weight unit groupe atid it

is to be understood that only sacks coutaining pare 1s

of one weight unit group are to be entered on a single

line as the records must shew the weieht unit ot the

parcels contained in any sack in ease of future mquiry,

With regard to foreign elosed transit: mails, the Mannal -

stated:

e o — P) *« .- . s ”

Weights: NX record is made of the otizin atid des

tination of each foreign closed transit mai! dispatehed

by each steamer, registered and ordinary mutils sop

arately. The net weights of the sack® as endorsed of

the labels are recorded by countries of origi and

destination accordiig to three elassifieations, jetters,

prints and parcel post. “Phe weight. are totaled aecord

Ing te the requiremen.s of the reports submitted on

Forms 2063, 206500) and 2Mtidy.

In connection with the preparation of weekly weight re

ports; the Manual stated:

; - Dorse

Repeorts of thie Weicht ot Misi!- Lim prcate lieved iy

oe Stysmmer. Beormes 2th tele CdD

VeDocrahts: The met wereht of the eiails i the

biest= taprons Which paastnent ts anaihe fer the branepearta |

Tieots cof tenati= com stecateesbiiges cof booth Eonitteed State ~ aed

“foreion reasstys. - 7

: -\

With resared te the return ot empty sacks. the Manual

stitedt:

’

. . eo . . . ° eo .*

. Biuudles + We oth cam seth of perants: Burdhe~ set

empty) sacks wet jatiereds eneuch teferm a full sack |

ate theebesat wath cpecn diteds dnd inserted tn aesack of

Sprints tot the exehanee thes te whieh the <ae.s at

beetig getup need. Phe wepahit ct thee etueseese de mgeta

saek= ds tet peladed an the met werght @ the osat~rde

siaek. - . -

Es e - * % . * . * e ** . = ?

Wesahts: “Whe wetehitsset sacks of Mapes op tanpetie tat

are Met gsecerbaited tet Pecatebead gee tes a Nssit pete is

‘paid for transportation of sdeb <ach- ee Le ie

Prior te there clisparted. the mails are weighed ina

postoefher werkroen: tren whieh the cerseral public ts es

eluded batter. uiatl< were enmelosed gn <ahe anid weighed

Got; segaders whieh Wete prternet for the-tuare wetebt~ sof <aek-

vised, catied the anielaessteed tet wegeebit ert the tails enelosesd wis

recorded for compensation purposes Print mistil are sti

lariy weighed on a platterin scaie. a deduetien beate made

feo the weicht trl the: onelosing ~ack, itil the tet weilhit-

thereat reeerded. The sack= of purteel pest mail were tet

Weighed (“Before bette placed in sacks. the purcel- wire

reife acoor dig to the wereht~ as. recorded for pres tinue

put purses. Hewever, these actual weight. “were not the

Weight. -reeorded son forms sent te the ~tenmshipy com

juities: rstead, the post offier receorelet anoestumated aver

ave Weight of the pareels, detore beiut placid yn sack~

With respeet te the foreaun closed transit mails, only the

lta

net weights of the letters, prints and parcel post mails were

recorded. The “sacks enelosing empty mail sacks trian

ported by plaintiff were beundled in the sath: workroom a

other domestic mails and were net werghed es wae aris

record of hei ir weiuht maintaine al me the punt offic: 4

S. Approximatels wo Week or fem cuss aiter ‘stlinag the

oe Cities Depeertment furnished plattiit with a statement

on Form 2065 of the weight~ of mails dispatehert sewing

the weight. of letters, prritit~ catied paneer] purst ot Linitedb

States origin and, separately, the weishts of letters. yp wints

‘and pares) post of foreian closed t iatinit title eer hiniie

‘port of de stination. Dhe wersht +tate tents did tiet inmdse ate

Mhether thy weight. shown Were Netor gross wegthit.) Th

weigh? statements did) met whens the netiber of bute

atl

‘the wedulit> shown conde ret bee velentitieds with thie siehk~ &

lantend «oti the prest offer wis tulle.

190 O00 Saaree bes, PM, the pelaintitt bey it~ view prrestebe ts

sent a letter te the Assistant Postmaster Gatnerai by the,

terms of which it protésted avaitat the detenedant’s reftsial ‘.

te pay for the transportation of mail sack- whether thes >.

diel Or did met eatitann mail tp shape operated by dhe plain

TY der “the Atnerican Nata, Pron ports by the Eo tipteed

States fo foreign ports. = eae

Lin Con Deady DAL De, the Netinge Nenretant Posteiaster

General Bureau of Tran-portation. wrote -pliamntolh int part

a~ follows:

In _thi- aeety teat pen Rory ? satteatien j- eatthledt tei the

following Seetions of the 104% Postal baw -

ated Reon

latins:

Section J207 paragraph Ubi De finite bates Ue

Ss otherwise spresnadls prrosteledd fans tae nt Sguell te

tide for the transpoortarion of Es ite} States meati~ and

foremn Closed tratintt tosagls sty mts catnam binges cot baoth

Anited States registry. and foreign “registers. amd ter

the transportation te the Fnited States of mails which

the: Uo natecd States i cobliccsaten| tee conve, at the “rates vet

“SS cents a pound: for math. consisting af letters and

° -

loa

’ ‘

si . . ? ° .

poosteared~ ane 7 Lwetit- a pernned for ricail~ cootsist img of

othier- articles, neds lini puareed pened, fon di- tances up te

ated dnedueding SOW) peiatie al idles: Die ee its aa joonantel for

mitt! consiefing root detter~ cated puostesrdls and 2 cents

a poate fer tails eonsietine ef ether articles, inedud.

ine pares) prost, for distances trem AM ype to atied

inechopebinne V.COMO guseratieseh teethes. cated hele eetits a prvtanied

teor treats wenststiti of betters smd prosfecaneds ated 47

eonts i povtitiel fet sniatl= cotrsistitie eo) other arte ‘heal

tue lisediten parcel poost, fer vlistaties exceeding D.0a

nicatstiossl tithe =. . ‘

: 6

ection ME Dita ot cased tee “oanea oil fen

reel hives }! sim ¢F ther wins prevh |. al i tre ity or con

titteots fhe Pionfonctate ae ee al media peqquive th frunms-

poontiter ' bp tw shee weshipes ot peti between the

Iowiited N fates peat TT ed oof at the cormepe wed

fron Naed ander authoridta ot law, | pot refusal by the

tyientet eve thie commPricitichen ot ~hieh ~teuamashiip or Vessel

ter gaererepol thie apne: When tendercd by the Postamaster

General or hiss representative, the collector or other

oflierreat the aes en owered te grant clearane , on

netped af the retusal ateresatd, shall withheld clearance

“spritel Uber epellewtor oot ether ofierr of the. port ix in

formed by the Postomaster General or bis neparess ntit +

Liye that the taster or commuter of the Se or

oa teased dise~ ere qitend thie trvcagl err Ubiiet cones anew bis his

etegistipe or Viesel ste longer Pe yininesd Tos the Post

mismter. Cpenenand, stet> Sotuat. a4; IS. RA Vy

(Dtalie- srippelnedd. ' ; e

Pie Postinaster Gren tal hae the faawts ul authorits re

Leet the cates of comipie tinaat on ter the rsanim goerr eat beens of

bonitesd States mails on Steatier= sailing to fenmemn

he “Tinhaat iets. ;

W ith vers few overs perio, Pace enue knew Jo due B it i- the

iter aal pers shet jee tert te pray for the werebt of sa he

need in euntection wath the dispateh of pevular oor.

“ gatee) promt wails or ter the eeturn of empty sack,

either in transit threuch fess ten ecountpies or by steam

et tisatiots is yrane eon tie tied weight, af the

griebl pteveedvered. Thi- praetor THe part Yerkjarwerd for

vreat nimber of ve As atet is apparently based on the

following provisions of the Cnisversal Postal tC nien

Isa yes —

’ .

‘

Convention, the present ome beans that of Darts «4

July 4; 147: / | - 2

Article Dan, paragraph oD regard ter siaek~ whic

eomtiain tiothine: beet emsya saek=. ct corre spertide tice

Nett freon soll transit ehiarees ¢Netiele OS of the Con”

Vetstions). the tote Statietique te ferbferme boas thee weered

xemipt.

Netiele WO1, paraggaph D0 Drcwct chert aecvant

In ewe , fis tithe ‘far cunt af this a ral f or? th. * ich Ms,

per hand, iim we dl iam tet the. clans =~ cof weet Pees poeta lotion: .

exempt foot all transit charges tn accordance with thes

proves jets cof Aatiede OS of thee Coons enstacen, the totaal

amount «ef the in vorutit Tor closed muath. is reduced bes

1 prereent, CM tabies ~ugeplionl

Dt walk bee meted freon the aqneted Seetions: avi the Cosi

versal Vestal | nien Convention that the weight. of

efipts sacks are tet tahen iter cotstdenation: as re

yards statistics amd transit charce acgounts. ~The

Hecessitates our charging other porst: al cacdinitei trations

for the net weieht~ of any foreign closed transit muil- ;

handled by the United States and view versa.

A meeting of the Technical Transit (ommittes of th:

LT niversal Postal Liter was held in Teterlaken, Switz

erland, during June of 149, for the purpose of revis.

ing the Convention and regulations. covering the

handbing aad charces invetved in connection wih

foreien closed transit mails Nt tht) meeting the

weight of sacks, as well as the return of empty sack-,

Wits ay important item on the agenda.

“Owing te the complesities of the overall problem and

the hitherent “view proinits ot Siardertss snedenihisiet waatiotes,

final decision was net arrived at daring the Inierlane ts

meeting. However, the matter has been amd is reeds

ine the attention of the various postal administrations

ane anethe rmeeting of the Technical Tratisit Commit

tee is schedaled t6 take place in Switzerland durin.

May or June of TOL, at A ty bh tinnne: the Committee wall”

make definite recomendations for canstderation at

the next Congress of the Universal Postal Union to by

held in Brussels, Belsiom, in ie.

We are sympathetic towards yeur problem and agree

it is necessary that seme action be taken towards

Sa .

adopting a universally uniform system a recards

poommitele: qos tne tat for the wedshit ot sucks used in con

heetjon With the dispatels of nails as well a= tor the

return of empty equipruent. Hegeever, until such time

a~ nw change im procedare might be gebopted by the

el niversal Postal Union, we regret if will be necessary

ir yeu to accept any mygils terdered te steamers of

the United Fruit Companys by the United States postal -

authorities i accordance with the rules and regula

tions as set forth by the Postmaster General.

The emphasis by italie in | 125.5 and Article Tol Appears

ine thee Ddeqeartenent “» fs So uthler-coring.

neder the rules and regulations

Jeter General ylaintii® was obli

sisted fer sneee snail! tan any and all of its ~hap- that

sailed from United States ports. i

° ‘

OL The plaintitt sent a further Jetter J the Assistant

Poostanaster General on SN plotter ee tee in Wheeh it per

cistedd in its earlier position and requested that it ly fur.

wixhed with information a= te the weicht of sacks cartied,

gs follows:

Plisintit? sane

as <t forth |

a . .- . . . . “-@ .

Neither the wetght~ of <ack- containing mails ner the

weight~ of empty sacks, are furmishiesd bey poostriasters.

Therefore, it iscrespeetiully reeptiesteed thiast thee poet

thiatsters temdering mails te our Vessels be dlireeted te.

. furnizh statements. of weights of sneks= at the time net

weight statements ef mails are furnished. It is re

quested that the postmasters report (a) weight~ of

cacks containing letter mails; (bh) weicht~ of sach-

containing all other mails; Ce) weights of sack? con

taining parece] post: and (4) weight~ of empty sack-.

On ‘and after Oetober 1, 1950, the Post Office Depart-

ment continued to teuder tails i" plaintiff, ned the United

States postal authorities in the Canal Zone amd postal ad

ministration~ inthe Caribbean arcauecan te furnish plain. .

tifl-with the’ gros~ weights of taail- dispatched on plaintiff's

<——

ama 2

Vessels. Plaintiff filed puplic vonehers yith the Post Office

Dh piartne nt for es free Heathen om the Tiant~ “of the utes

weight~ furnished.’ These claim- were dal! owed and the

"nt Mice 1). nana et readeed the vouchers and made pas

ment on the basis of the net: weight. of the mails trane~.

ported. - pea ‘

UT November 1h. 100, the Direetor of Pte, Bosal ¥oeoce

“ M.- Ght-, Canal Zone, 0 rete plaintitl in part am follows:

The question of furtiishitie the weight of eagtnipemnertit

containing mail was referred to Mew John Mo Redding,

Assistant Postmaster, General te whem vou refer in

svourletter, and Dam enelosing a copy of his rephy

In view of His <tatement that ne instruetions have

beens insted to enehiatece officers “rematching mail te

furnish such weight~ and that the matter is under

study, i owill be neeessary for Ns terdiscontinne <how

ina the we ‘ight- of equipment ot our wavbills, ae stated

of amnomy rep.) won under date of OQeteber 20, pot,"

/, - mntil such time as a change in qoliew is made byw the

Pont OMfiee Departinent in Washington, °

The letter 2 Resiatant’ Poatinaste General Redding to the

Director of Posts, dated November 1000, reads in part as

follows: Fee

| have mot talked te WN Nene from the United Fruit

Company about this subject, as alleged. in the letter te

vou and ne, in=tructions to furnish such weieht~ have

he wn ae o by mv office te the xe change oftie 1. lis

patehing-the anails.

The matter of (pay for the transportation of th.

equipment | in boeing cotside fread med if sheet at js

reaehed making achange in our present poliey vein wil!

be infertned accordingly.

eo *

24. On May 14, 151, the Assistant Postmaster General,

Bureau of Transportation, Wrote to plaintitt’s Washing

ton attorney ius follows:

7 . ;

This means mail bags.

ain 5

I refer te four letter of a ae BOC UM Or) eT

Visit here on Bricdas, Mis Tob, we daatine Yer eeotn

jee tiacatben: for Pr catemporoO sat tents eet tees ot! wtgerk= tetuderded bos

: prrntirisante tr of he Losiitesd Stites feo eceertage: oo Neves

wan Mae steamers, _ s ;

The’ anatte y oof Veattedlinge sated Jrrmm tl |. pres tery taf fo

empty miaail sce Hes psreons the shaeticdsa teen alps p= = feots cat

the Teebisvesl Tramait ¢ ‘ormmatten of the DE niverscal sips

tral Uonsteon tee bee bed tne Porte =ttica, Switz tlistied tet

mienth. 1 preorir the shturn of coan cledegatton Ceo pre

peeting. DP teed corti that we wad bee cre cie tere treet

fer AWE Norte sertnnes ade tindite: saedvaee eon the subyeet,

Pt.

The te rriterisl atidAnaritiomne transit Viste ity the WaT

Paric ‘ ‘vention (Article 67) were the beanies at charges

on the gross weight~ of beftprs and post cards and other

articles (not inelivhind parcel qeet) exehuamsed. cn closed:

peastils bet weeny twee porn tanl aeberibeinteaations~ Leer thie bn nefit of

the country W hierne Services patticipatetin the comves ation bs

meats of the s« vie ee of ote or mere other ee el

istrations. A new Convention Wis sified in Brussels ine

lure, effective July 5. FS 1%, Witch elsnitiaitest the elistim

tien. between letters and post cards and other aetioles on

the rates for terpfogtat inti macaritigne transit) ehare

(Article 78). Aviin, the rates were applicalde te ae

ross Weights of letters and other artie les, net steclieh ne

‘parcel post, Article 7S further pros isle: = tht: -

Maritime transit begins at the moment when the is

patches are put under heist ated end= 1 ben, thes biave

been wnlyaded at the wharf. . .

Dder Seetion Got), of Tithe 20 TUS. the Postneetes

General may allow cognpeneation, to Purely Nise = tesenn

snips, for the transportation of any ated fall tisvil=, ineltad

ing parcel post, net exceeding the rates preseribed in th,

Convention=; and te Uypited States flag vewsele, in. TTA

* allow COMpen sation thet exceeding “Mbicent= in prortatued feet

Jetters and S cents a pound for other articles! ineladine

’ . -

parcel post.

26. The Postal Regulations were dime adel effective An-

gust 1, 154, removing the re quire ment that stearuship com.

panies truck incoming mails from the’ vessel-to. the post

office, but leaving intact. the: requiremnent that outgoing

mi us’ be trucked from post office to pier; and establishing

new rates of payment for’ the transportation. of United

States mails and foreign closed “mails on steamships of

United States and foreign registry,

27. Compensation to plaintit for the transportation gf

sacks enclosing mailomatter was paid only fer the net,

sweight of the miails in the sacks) ne compensation was paid

for the empty mail sacks transported by plaintiff. While

the rates pf compensation were discussed with representa-

tives of the steamship industry, the Postmaster General

had the sole authority to fix compensation for steamship

transportation of the mails. There was no evidenee that,

- the rates of compensation were based onuany record de-

veloped by the Postmaster General to determine the eosts

to the steamship companies of performing either the mari-

time transportation ef the mails or the trie ‘king from the

post offices to the pie rs,

ws. The Department's practice of paying v for the trans

portation of the mails*on net weights is a long existing

one, and apparently arose under RS, § 4000 w hich providedk s

that fore transporting the mail between the United States

and: any foreign port the Postmaster General may allow

as compensation, if bya United’ States ste ‘vamship, amy sum

hot exeerding the sea and United States inland postage:

ind if by a foreign steamship, ariy sam Beg exceeding the

sea postage, on the mails so transported, This section,

printed as ©1405, Postal Laws and Regulations, T024. was

followed by it note reading ‘ais follows: ‘

Note. In view of the. provisions of the U niversil

Postal Union Convention the term ‘tsea postage’. has

né meaning. United States steamships receive wot ex-

ceeding the whole of the postage collected on the arti-

cles contained in the mails conveyed by csatd vessels;

“«*

-* rh

and foreign Vesse Is are paid’ any stim net excee ine r the.

Kate of postage fined: for al sinede TRE tne Tran ~it div,

the Universal Postal Unien Convention in fotee at

snelietime, ee fe

The Aetoof Julyes, l26, entitled An Net to Amend See

tion 409 of the Revised Statutes," provided that for

transportation of the mails the Postmaster Gener: al omyayy

allow ao vessel of the United States compe nation not in

execss-af the amount of postace Collected on-theemail trans

norted on suel vessel, nnd it Cipt oft ie fore igh ve ese! COM: |

pensation not in excess of the sea trans jt rates: preserihed

bye the Universal Postal Union pine The Net of

Rebrnary D4. 129, Tontitled ‘An Act to. preseribe more

definitely the rates: for compensation payable. to steam

ships of U nited States registry for transportation of fore -

een mails, amended ‘the Aet of July 3, 1926, seas to pra:

vides Ha the Postmaster: General may allow to United:

States vessels compensation on a wWeigdit: basis of mot ex-

coodine SO cents a pound for letters ahd S cents a pound

for other articles, Including parcel post, 30 ULS.C. 6 64a).

. id : ;

The rates paid by the Department to the railroads

for rr territorial transit of the mails are fived by the Inter

state Commerce Commission and provide for cOémpensa-

tien ou Aa space, rather than*weight, basis inelidine the

~ pace ecenpied by sacks enelosing other mail matter and

space, ocenpied by empty mail sacks. Similarly, the .D-

partment compe isates the airlines for the total weight of”

the maths (e: arrived, making ne dedne tion for the werrht of

the bags containing math:

20, On Jannary 20, 1956, plaintif? submitted to the Post

Office. Department public venchers for compen sation for the

transportation of sacks enclosing the mails and empty rat!

sacks vhiring the period OQetober 1, 150 through July a,

154. By fetter dated Qetober 12, 1056, the vouchers were

refurned unpaid? by thee Post (fliee Department,

8) Om October 1 157, and Mare 6 and Mareh 24.

Bet, plain itt submitted te seul Post Office De Lae rfment pub.

lta

lie vouchers (1) for compensation for the Beoan transper-

tation of sacks enclosing the mails and of emipty sratl sacks

* atid (2) for reimbursement for trucking the mails from: the -

post Aflice to the piers, during the period Ausust 1. 1004,

through Deceniber B31, 158, Phe elaim for reimbursement

fu the ¢ost of trucking was Isitsered on the cost te plamtilf

purr bias under its carting re contracts, plus administrative

, expe ‘list of three peereent, ~ Bs fellors dated Januars i, 1s,

dud Mareh 13 and 25, 150, the Post (itive ])- aca nt We

uied plaintett's claims.

2. Nocompensation was allowed or paid for the weights:

oof sacks enclosing the mails or for the weight. of empty

mail sacks. The parties have stipulated the weights of @

sacks enclosing the mails and the weights of empty sacks

transperted by plamtit? and the amounts due in the event

the Court finds plaintitt should recover, either completely

orin part. "Phe amount due for weights of sacks enclosing |

the mails is caleulated at rates fixed and paid by the Post.

Master General for the weight of the mail enelosed jn such

sacks. -“The amountsdue for the Cre pty sucks transported

during the period October 1, 1050 thronch July 31, rod,

is caleulated at rates fixed and paid by the Postmaster Gen-

eral for ‘dll other articles’’ of mail viatter, and for the

period: August 1, 1954, through December 31, 1958, when a’

single rate was applicable to all categories of mails, at the

same rate fixed and paid for other mails dispatched and

transported On p. laintiit’s vessels,

33. No compensation was allowed for othe trucking or

cartage of mails from post office ‘Sto piers in the payments

for the transportation of mails on a net weight basis after

August 1,1954, and the parties lave stipulates the amounts

‘due for such trucking at the eost te plaintit per bag under

the contraets between plaintiff and its trucking contractors

at New York and New Orleans, plus 3 percent additional to

‘cover administrative costs,

34. In the event the Court t finds that the plaintif® is en.

titled to recover, either complete lv or it, part, the parties

S°

PT had °

mea Ts |

have avreed that the following table is aleorreet computa:

Henef the amount due the plaintiff by periods, by the lag

ofthe carrying ship and for cartage:

I, rowel COetaher yi 105 duly i. ae i € stse No {0 Gs

} 2 Amerwan ° ; re Settee SOURCE

ae : Hoste baray 7 " 2.671.098

a » harcpean 40s O4

Vieni nt 37 252.50

% Mittens F . 1.0 68.

c Bir He ° fp. 5.78

eee Nine riean wpa

bad Neuefienn 7 Jes] an

0 hurepenn Liss64

iv . , Hetufouran ASAT Te

Ll ; ? Ntnericcer ‘ -*' &.073.14 -

i ‘ Ntnetican > pepe 74

vata 148.g65.70

Porvnd Nagust 1. 1058 December 511455 @ Case No

560° 5; C'latcm few Woessht al Sacks

I linge of vessel 2 °

American

Dheotsehrarsans

Foren

wt _

Total ; 12? ND

Cartage ‘claim ? :

. - = -

Cartaye . ¢ ; S1s0070 7S

Nednituistrative ON pre tine i : is ee Sb

Total ee : Tas

Grand teta! | ; , e415 ree ree

Respectfully submitted.

Wuirriras kK. Pay, Commissions &

a nig Joa

IN THE UNITED STATES COURT OF CLAIMS

Nos, 460-56 and as nyt

(Decided April 7, 161) .

Usirep Freer Company v. Tue Usirrep States

William Lo Denning for plaintiff. Ahin F. Woblstetter,

Ernest Ho Land, and Joseph By Mullins, dr, were on the

briefs. . ¥ .

ney General Williaa H, Orrick, for the defendant. heaven:

worth Colby Was on the brief. :

Opinion

Lanamone, Jielae, delivered the opinion of the court:

These are two cases resulting from a long standing dis

pute between plaintiff and the United States concerning

compensation for the transpertation of mails hyesteamship.

dn both eases plainti® sues for compensation for the ear

riage of mail sacks between the United States and foreign

ports, in No, 460.56, for the period Oetober 1, 140 to July”

34. 1954 and in No, 568-47, for the ported Nueust 2. 104

— to December 31, 1456, Also, in No. 568.57, plaingitt claims

‘compensation for the transportation of mails from the prost

offices to ite vessels for the period Anyust 1, 1954 to 1).

cember 31, 1956. |

During the periods involved plaintiff operated a steam

ship line between New York or New Orleans, on the ene

hand, and Variwit ports in Central and South Nmerica, the

Panama Canal Zone, and islands in the Caribbean area, on

the other. Some of the vessels operated by plainti® were

registered under the flag of the United States, seme under

the thay of Honduras. and ve rt Un uther= were of Bi uropes im

registry

The mails transported bs plaintiff during the periods in

“question consisted of letters, prints, pareel Prost, revistered

nmiil and diplomatic dispatches, and were both domestic

mails and mails of foreign origin. ATL of the pieces of

cmaik were ino mail sacks, Plaintit® alse transported mail

sacks containing empty sacks being returned to the country

of origin, Most of these empty sacks were sacks whic h

had oriinally cont tines mails sent by steamship to the

United States or to a foreign country, and whieh were be-

ing returned to the country of origin through the United

States postal serviee: some of them were air mail sacks

Whieh iad contained mails flown into the United States

and which were beiyy returned by steamship. De fendant

confesses Hability for proper compensation for the carriage

of the. latter sue ‘ks. : ; .

Section W724 1S ULS.CL as ameuded by the Act of hen.

tember. 29, 1951 (04 Stat. B36). authorizes the Postanaster

General to require the transportation of mail at a compen-

sation authorized by law. The statute appears in a nete -

below.! : |

Section T2520) of the Postal Laws and Rewnlations

(1948) required that plaintiff receive all outgoing mat at

"S724 Except as otherwise provided by treaty or convention

the Postmaster General mas require the transportation by any

ste ansheps of nut betweetithe Pnated States and any foreign port

at the conmfpensition fixed under authority of law. Upon refusal

by the master or the commander of sach steamship or vessel to

accept the mail when tendered by the Postmaster General or his

Pep rQernert tative, the collector or other uftier roof the poort empowered

to erat clearanes. on netree of the refusal aforesaid, shall with

bold clearances until the eoHeeter or other officer af the port sir

; rise tos the osttiaster General or bias representative that the

aster fr compratidert of the steamship or Nessel has accepted the

nica Poor that er ‘ ities be his stesth vik ipower vessel ois ne longer re

cytarresd bis the Postmaster General.’”

Ltation of thi- micatis h mv ste saptintes }’ cat tyeol thiets th, arg “SP arents

the poost offices tar be transported ba track. te pelaintaty ’s

vessels’ Gor transportation te fteretonm ports, ane -aige

unread pelcasratat? te Hedivet tee the prrnt efticcs ath proeceemay

tiagil. The regeilatiens is amended on Prine 30, 154, re

Leewered noleateet itt cof thee uty ast by vibe Vitae ineomin-mats fren

The vessels ter the pores of? Myes pthereete i - mails were accepted

hy the preost eafficrs on thee peers, ie Vevuist 2, Pest

The Jaw. whieh was the Net of Febrasn 14, 10000 14.

Stat, TIT. UE SN Ob ab aatherized thee Postenaster

. > 45

Cieneral te fix the rates of comipensdtuer tor the trianegert

a geotitied Por lettits ated S cents a prertnnidd for: other artic ‘len,

ineluedinu parece! pest 2 trsmant te this authority. he fixed

the rates: set out in puaragcaph bebop of seetien Tae yoot the

came Postal Laws atid Regulations (iis) This varacraeph

reads: =) : , j

Pre finite wate s. Vtrles~ otherwise “-frectal’s provided,

-astient shill be nade for the tran-pertatien of Toratesd

States mats aneb foreign closed! transct aise js ocote seca?

ships of beth United State. registry Fae forerem Yeu -

istry, amd for the than-pertation toe Lonitesd States

of mails whieh the United States 1 ‘bdigted tev ceeny

vey, at the Fate of SS-cent~ a pootined Peer mricatls een ~ist

my of letters and pesteards amd Db eents a peumd for

mails consisting of other articles, the dion posure } pent,

for clistanees upe te ated omelusdime SO) meantical mules:

Y3.7 vents a pound for mails consisting of Gat. rs per

proste ates aml J. ‘Seonts is prvuntied Hoon DaseWem veeebinistiniw oF!

- other articles, ineluding parcel post, for distances from

SOM ape ter cared imedmelime TOO naitiea! moles. an A 2.5

cente oa poouned for mais consisting ef betters and saeeeit

cards amd 4.46 events a prevmntiel fer nyiatis cotisist mag et

Mher articles, meladime parece! pest. Tor-distaners ext

ceeding, boo haatatioal ‘miles. |

In applying the rates of compensation as. tived by the

Postmaster. Gienerai, there was-chadueted the weight of. the

mail sacks fram the wereht of the sack- with the letters and

packages contained therein, and compensation was paid

Jha

list upon. the met wereht oof thevanaie Ne additional

cotipetsation Wis paid for returning the empty sacks.

Thy epider Tieets Re sented pow hether the rates of eomiprensct

tion fined by tie Postmaster Gener’ were pitended te cover

all thet serviees cesuired in order te tinsport the letters,

poteatads, gid ether artieles, including parcel post.

Seo furias the transportation of the sack~ containing the

quatlis conecnied. we think the rate tived Dw the Postmaster,

General fer the Garage ef the letters and posteards

covered the earruige of the sacks whieh @ontained them,

At world diave Deon dipossible tee have earried the letters

and pesteasrds withent putting them in something. Tn or

der teceares them, for which the. stated rate wis te be gated,

the steamship company had teedrry the sacks. Mad there ,

Veen ata i initeensfbeets tee pos aaede Litieonaal eon pee tect beets for the

carriage of the sacks. the regulations worked hive sail so.

The absence of a provision for payment of additional eom

pretencetingtt for their carriage work seen te show that ntne

Wigs fer be printed. ; ° ; .

The provision for a canis spel the carriage of *tother

artic ts elodimaopaaree! post oreferred te the content. of

the seks. filet te the ich tlituse ves. The preceding

~pevitic clause clearls referred te thé euntent. and ie sum

ably the fedhowWing general choase did se oniso. This is oan

ta worl with the rile cof ee eee ee

‘

The sacks ere valuable and were used ever and) aver,

Soo, teeth pute krew that in omder to Cures the letters

satied posteareds thie steamships ecnnipoans hiael tee brine the

witeks baek. Dt worked scons that the Tate tinead four CUE rs ite

the betters and posteards. net enly eovered carrying the

sacks in Which they were contained, butealee Govered bring

- soa haaeck thie « trigets ~ack-, .

A. the Coon toisstonmer = +fireline~ ~heow, the pernetiee of

“paying cotmpfeteatoon fer the vearriace of the letters and

posteands. and the sack- in -whoeh thes were contained,

Whe

based on the weight of the letters and prostedrids ‘alone,

was of long standing. Fora very long time the course of

action of the Post Office Department shows that it itttencded

the compensation fixed for the carriage of the letters and

postcards to itchiuede the carfiage of the thins containiney

the letters and posteards. Neo additional eonnys neation lias

eter been paid for the carriage of the sacks or for the re

turn of them. :

For a long time the steamship companies tid net protest

against this, CFhey say that they did not protest beenuse

they did not know the Vasis sed by the Post Ofied Depart

ment in computing their compensation. This ix a lame ex

cuse, Tt would have been simple enough fer them te have

found out the basis of computation, if it is true that the

Post Office Departament would not tell them, by weighines

the mails themselves.) More recently they have protested.

On June 16, 150, prior to the period for which compensa: °

tion is sought in this suit, plaintiff’. vier presidett wrote

the Postmaster General saving that for a long tim thew

had protested non-payment of additional compensation for

the earriaze of the sacks, and it served notice that it-would

expect ablitional compensation in the future.

The Acting Assistant Postmaster General replied of July

14. 1050, in’which he quoted the regulation fixing the rates,

and the duty of the steamship companies to carry the mails

and then said: ° ;

With veey few exceptions, te vur Knowledze, it ix the

universal practice not to pay for the weicht ‘of sack<

used in connection with Yhe dispateh of regular or

parcel post mails or for*the return of empty sacks,

either in transit through foreign county ies or by steam."

cers. Compensation is paid on the net. weight of the

mail invelved. Thi- practice ha- been followed for a

great number of vears and is apparently based on the

following previsions of the Eniversal Postal Vien

Convention, the present one being that of Paris of

July 5, M47: ° °°

; .

, @

He said farther that the matter was onder study by a

Seommittes of the Pniversal Postal Union, and he coneclanted :

We are sympathetic towards your problem and agree

it is teeessary that seme attion be taken towards

adeptiog a universally uniform svstem, as rewarels pros

sible payment for the weight of sacks nsed in connee-

tien with the dispateh of mails as well as for the re

firm oet empty equipment. . Towever, until such time

as achance ie procedure might be adopted by the Uri

versal Postal Union, we recret it will be necessary for

yeu fe aceept any mails fendered to steamers of the

United Prost Company by the United States postal

Authorities in accordance with the rules end recula

. tigns as set forth by the Postmaster General.

This letter was written prior to the period involved in

the present suits. Dt stated what the long continued prae-

tice had been and that this practice woulk be continued until

changed by the Universal Postal Union, That practice was

to pay for the carriage of the letters and postcards and

other articles and the sacks in which they were contained,

and for the return of the empty sacks, on the basis of the

weight of the letters and posteards and other articles, ex-

elusive of the sacks.

In short, plaintiff’. protest was’ rejected, and it: was

stated that the aneient practice would-be continued. |

‘ , .

This, of course, was equivalent to saying that the rates

tines} covered the carriage of the sacks, both wats, as well

as the articles which they contained. Since the Postmaster

General had the authority te fix the rate<, this weld seem

to cone ‘Tude the matter.

As thie findine< <How, the Postal Union Convention held

subsequent te the date of the letter of the A-<istant, Post

mutter General.‘te wit, the Brussel< Convention of 1052,

refused te change the basis forthe payment of compensa

tien, and continued to compute it on the net weight of the

contents of the sacks.

—

bla

Thi- leaves the claim for compe nsation for picking up

the maid at the post offices and taking it te the ste am=hips.

It will be reealled that section 1724 of Tithe Ts ULSa. as

amended, authorize oo the Postini: ister General to ** requ ire

the transportation hy any steamships of mail between the

United States and any foreign port at the compe Nsations

fixed under authority of law.”

125.20b), a* amended, required the steamship companies te

come to the post office te pick up the outgoing mail The

rates fixed by the Postmaster General were iftemded ly +

As stated above, section

him to cover compensation for this servicer, as well as the

transportation by sea.

As we said above, in disens-ing the claim for: ad litieon: al

compensation for the carriage of the sdcks, if it had “been

intended to pay additional compensation for-their trans

portation, the regulations fixing rates would have said. 0.

The failure te provide for additional compensation indi.

cates: that the rates fixed for the carriage of the letters,

ete, mneluded all xerviees incidental therete, and that em

braced the duty, in the opinion of the Postmaster General,

of coming to the post office to. get ‘the smitgoing miiil.

For many years prior to 1954, ste amehip companic = had

been. required to pick up outgoing mail at the post offices

and te deliver incoming mail to the post offiee. “A. far

“hack | as ISSO the Assistant Attorney General in charge of

post office matters rende rel an opinion in Whieh he said:

It has before heen stated that the trasisfer of all

mails between steamships and port offices at New York

and elsewhere is made by the steamship companios and

at their expense, and the compensation te such steam

ships is supposed to cover the cost of this serviee: in

other words, that the compensation is for the transfer

at ports of arrival and departure as well as for the

-conveyanee by sea. Tho re ix therefore an implied eon-

tract between the Unitedl States amd ew ery Ve ss! carry.

ing mails to and from the United States and foreion

+ ports that the latter will pay all the expense of mov-

ing, said mails out of and itito the. post office; and this

r : 2 Moa

“ innnpeliee “dl contract ha is assumed the fore é oft pros itive wrt

ten agreement, sustained by amt tinbroken line of prec:

dents running thronuch many vears. °°" PL ipo Assist.

: Att Gen. for Post Office Dept. pate L a

: \ BT sites we

Since the Postmaster General in fining the rates of eom

pensation, weted within his authority, ane sines i seen.

that the rates fixed were intended-to cover the transporta: ,

tion of mail to and from the post offices, unit - V4, and

thereafter to cover transportation of outzoing? tacadl treet

thé prot offiees to the pie r, Weare of opinions plainiit im tise

~. entitled to recover therefor. .

y What we have said’ aliove, however, does nat apply te

empty sacks brought back te the glace of origin by plain

1it¥s steamships, but which had been used in the trans

portation of letters, ete. by airplane. There was ne duty on

Babasiithee a carrier of the niails to return these sacks te

the. place oPerisin. and when plaintiil was requested te de

So far as the basis for plaintist’ ~ COMpensation bs eon

cerned, in returning the sacks it Was net acting as wearri

of the mails, since it had. not used them te carry the letters,

. from the peint of origin. Tt was acting only as a

ent from its re lationship te any other cargo. But, so tar

as our jurisdiction is concerned, these empty sacks were

an adjunet of the United States mails and, as such, were

exempt from a libel in ren, in the courts of admuiratty.. As

(we stated in our former opinion in this case, 4 Ot, Ob Ted,

we do not think the Suit< in Admiralty Act (fl stat. i)

. was intended to apply toca uit invelving the carriage of

the mailx; nor do we think it applies tu the carriage of

something so intimately connected with the carriage of the .

omaails as & mail sack. ;

Defendant admits plaintiff is entitled to compensation

for the earriage of these sack=, but if does not tate te us

how it thinks it ought te be computed. Sitiee plaintit® had

caryier.of cargo. Ls relitionship te the sack~ was ne dif

ae ‘ oda

a published tariff for the carriage ot empty mail sacks,

would appear it is entitled to, he compensates 1 on the bask

of this tarif. ¢ :

|” ‘aintitY is ented toCrecover for the last mentioned

iter, and gudgment will he entered to that effect, The

amount of recovery will be determined pursuant to Rule

MS Cel, N . :

aad : : 7

It is so ordered. gfe ars

Reep, Justice (Ret), sitting by designation: .Derrer,

Judac; Mappers, Jadge® and JONES, Chief Judge, coneur,

. oe a ‘

Q ; iy: a INDINGS OF EF. ACT :

The’ caurt, having considered the evidence, the report ot

“Trial Commissioner Willidm-E. Day, and the briefs and

argument of: eounsel, makes findings of fact as foll6ws:,

1. Atal times mi: tterial herein plaintiff was, and is, a

corporation organized and existing under the laws of the

State of New Jersey.

2. Prior to Oetober 1, 1950, atid continuously thereafter,

plaintily’ operated a steamship line between New York and’

Nef Orleans, on the one hatid, and various ports in Central

and South America, the Panama Canal a ‘and islands in

the Caribbean area, on the other. (Plaintiff operated ap-

proximately four sailings a week out of both New York and

New Orléans.

Mati ain of the 4 vessels ope rated’ by, plaintiff werp. reg.

7 istered under the. flag of the nited States and were Op:

erated ander demise charters rom wholly-owned ‘subsidi-

ary companies y @ertain other vessels were of? Honduran

registr¥ and were @erated under .time charters from

wholly-owned subsiding other vessels were registered

under the flags of various foreign countries. and were time

chartered from-subsidiaty or-unrelated companies. Vessels

operated under demise charters were tianned-by plaintiff's

employees; crews for the vessels operated (under time |

: . -

" . ‘ ; e

°- e

+. &

“1

charters were furnished. by the Vessel, owne rs. Phaintiff

exercised control over the ope ratron of the vessels, whe ther

unide op demise or tine charter, fined sailing. dates and atiner

aries, provided pie rospace, and advertised tw the veieral

= lie for cargo and psseligers,

4. In its regular operations, plaintiff receives, cargo

delivered at the Spier at the slifppers? expense. The cafe@cis

not weighed by plaintif; the shippers are required, by law

“to give the eorreet Weight and the shippers *deehar: ation of

weight is accepted by plainititt, General cargo moyes under

bills of lading and, in the ease of Government eargo, on

Governnient form bilis of lading. She rates tor such carga

are fixed either, by plaintiff or, in trawcs where plaintiff is

‘amember of: a shipping conte renee, hy the conference, and

are ona weight or measurement basis, whichever produces —

the greater revenue, As is custemary in freight tariffs,

plaintiff's cargo rates age applied to thereross weight of

the freight, including any pac kaving.

At all times involved in these uctions, the transport: 1

tok of mails by ship from United States port ty fore if

sports was required by law to be performed at rates fixed by

the Postmaster General of the nited States,

6. Prior to and during the period Oc tober 1, 1950, fo

Auvust PS 1952, Section PALCby of the Postal Laws and” |

Regulations,.A48, provided that mails for dispateh by out

voing steamers shall be: delive red ftonr the post office and :

that steamship companies: shall haul the sacks to the

steamers. This regulation was amended on August Ox TOAD

(redesignated Section 125.4(b)) to¢previde that phat

- companies shall be Pesponsib he for: “a ‘transportation an

the protection of all incoming and outgoing mails, inelyd

Jing pareel post and sacks containing. empty equipme nt

(sacks), between the post office afd the transporting vessel.

The regulations require that a oman ride on the rear of

trucks (or wWagens) and proteet the mail, and tat reg

istered (red label) sacks shall be separately delivered to the

. @

Oba

steamship company’s representative atthe ffost oftige and

~peectalls protected during transfers and on board vessels,

‘The grder of August 2s, 12, Waseanue ded June HO, 1 4,

soo as to relieve the steatship ne soy of ‘trucking in-

comitie mails from ship to the post offiee; incoming mails

Were accepted uy the post office on the pier etective on and

after. August 1,194. This amendiment was efféectuated on

August 1, 1954 by the Post Offices 1 epartinent performing

the trucking se rvice on incoming mail from pier te the Post

office.

ie ease No. 40-6, eee to recover (1 ) com.

pensation for the weight of sacks? enclasing mails, and.’

(2) compensation for bundles of empty sie ‘ks for the period

October J. 0, to July Ob, Mod, aimed in ease NO, 68-7 fer

the period Angust-1, o#to December 31, 1998. In case No,

DOS-O7, plaintull! also- seeks reimbursement for the cost of

trucking outgoing majls from the post offices to its vessels,

The plaintitt has been paid on the basis of, thé weight.of the

mail matte? enclosed within the sack. It secks additionzl

compensation based on the weight including the sac ‘ks and

for the transportation of the empty sac ‘ks.

S. Mails transported by plaintiff Were pn sti mails

‘originating in the Unite «l States and mails of foreign origin

sént to United States post offices at New York, New Orleans

and the Canal Zone tor further dispateh te third countries,

~ Such matils of foreign, origin are designated ax ‘‘foreign

closed transit: mails’ ‘or “transit: mails’ -and those post

offices at ports ‘receiving and transmitting such mails are

designated. as’ttexchange offices’. Both: demestie and

foreign closed transit miaiks, enclosed in canvas sacks or

— consisted @f (1) letters, ¢2) printe “loigatter (prints),-

Ty parcel post, (4) registered sacks of letters, prints and

parcel’ post, and (2) diplomatic dispatches, classified as:

prints. Also transported were sacks enclosing empty sacks

being redurned by the first ste amer ivailable to the conntry

-ef origin, The empty mail sacks were (1) sacks which had

origimally. enelosed riatils sent bey steamsfip to the United

States or aidther tdrek: ri count Ty: and which we te being

returhe

postal setvicee? and €2) air mail sacks which had ene ‘homed

mails tflown\inte the United States amd which were being

peturne Lb Sfeamship.

? . Pridy +te-angl alice tg Netobe rot, 10, pl: uintifl “trans

one domestic and transit: mails ina dy the Post-

>. masters at New York and New 5 ims af. ‘the post offices

platforms for delivery to ports in Ventral and. South

—_—

tia a, the Panama Canal ae and islardis in the)

- Caribbean: area, In addition, prior to and subseqne nt to) ..

October 1, 1050, letter and print miils of countries sige: iv

tory to the Convention of the Postal Union gf the’ Americas

and Spain, were: tendered -at ‘the Canal Zone and. other

ports for jramxportation ou plaintitl” s Ame ‘rican tag

Vesse is.

10, act's sates schedules tor all of its services

were sent to shippers, freight forwarders and other inter

ested persons, and were publicly advertised in the New

York Joarnal of Commerce and other shipping public ‘a-

» tions. Sailing schedules included United States amd foreign

flag vessels operated: hy plaintiff. The Sew York Post Office

published a daily bulletin, for the information of its em-

ployees and patrons, which listed in advanee the’ sailing

fime and pier of ‘vesse's of United States and foreizn

registry selected for the dispatch of mails to foreign coun-

trigs, and the closing time for the mails at the post office.

1. The ** Manual ‘of Information for Exchange Offiees*’,

. Which contained instructions from the Post Office’ Depart:

ment to the post effiee employees of United States exchange

_ offices, contains the following:

* *. @- - . * . . . .

Duty of vessels to carry mail tendered :— Except as |

otherwise provided hy treaty. or convention, the Post-

mits ster: (iene ral may re ‘quire the transportation by any

;

Pav)

to the country of origin threngh the hited States *

‘vessels sailing from these ports as

odicals that may be obtained,

pier and should he as close as jas taacaie to the sailing

, j8a

steamships of mail between the United Stat ~ ‘and any

port. an anether COUNTES at thre compe nsation fy wd

under authority of jaw. ;

Arrindements with ste am sdap cs par ithe s: It is the

funetiou- ot the exchative ofticts at ports iti the United

States ait possessions te arrange with the stamship

conmpanies for the eonwevanee of mails and pureed post

to other. ‘countries or other oversegs de stinations by:

te sc shedtite and

itiner rary meet with the aad scorn its structions and

- requirements issued by « | Department.

Action should party Sa taken at such exchange

offices to obtain information regarding prospective

sailings of all vessels by which the mails or pareel post

made up by such exe hange offices or’ received ‘trom

| othe Tr eexe hange offices may be djspatehed. °

“The” inform: ition is obtained by communicating ‘eith

the steamship companies by telephone or otherwixe or

through advertisements of the ste ‘amship companies or

other notices carried in. the daily’ press or other peri-

When a ate amer ‘is. found to be available for the con-

vevance of mail or “parcel post, Form 2006, titled

“Ste amship Notice Qecean Mail Serviee’* is mailed to

the office of the steamship company or duly authorized

agent. The Yorm is self-explanatory and when filled -

out and returned by the steamship company or agent,

furnishes, in addition to,the name and registry of the

steamer, information to accurately determine (barring .

dater)changes) the departure date; ports ef call, arrival

sand mails to be conyeved. Changes in the time 6r

déte of departure, or ports of call received by tele-

phone should be ente red on the Form 2906 to show date

and time the information was reeeived and name of

steamship official giving the information.

Delivery Time. ~- Maile are delivered to the ‘repre-

sentative of the steamship eompany at the post ottiee.

The delivery time or the time the final sack will be

delivered to the steamship representative will depend -

upon the distanee from the post office to the steamship

eed 2 300

time lof the steamer, teoabllew oor the atest possi

clos Mz tine of miatls at the promt anffiares,.

. During the week preecding the advertise sailing ot

eae ‘ Of plaimtit’s vessels, the postuiisters at the exehanee

_offiees ddressed to plaintiy a Jprintéd: Porm 226, entitled

“Steamship Notice OQee aan Mail Nerviee’’, for each? #1

plaintiff's arkvertiseck vessels and rey sie for the vessel

PRES in the form, by the postmaster, the tlag of registry,

the date and time of ‘sailing, the pier. the ports of eall and

the expected dates of arrival. Prior to Decenber Td,

| ‘

Form 2006 contained the following statement;

In connection with the racy of ‘mails, it is re

quested that vou fill in the blank below for next week,

andt mail as soon’ as possible, hut. no biter shia

Wednesday of this: Week, in enclosed envelope, It os

important’ that Crery port vf callion the oufieors! trip

should be aivon in Hheorder in which they will be mad

uw ith the « wpects d date of arrival at qale I port, Aji the

+ event of no departure, or the sailing being’ hilt Goer

you will please note the same hereon, and refyrita tes

office,

ly from ‘any eause it shall Te found necessary to,

~ postpone or adyanes the departure of the steamsiin,

immediate notice” of fhe fact should be senfote this

office, in order that advertisements and bulletins may

be altered accordingly. It frequently ocenrs that advice

of such’ changes: is not received until tee late toe be ot

\ Mails for dispateh by outgoing steamships shall he

delivered at the post office, at the time agreed apen, to

the respective steamshtp companies, whe must convey

them to their steamships.

(After the signature of the postmaster, blank spaces .

were provided at this point for inserting, after the

name of the vessel, the information requested. )

It is understood that the mails shall he caéried in

accordance with the terms, conditions, and respérnst-

bilities: prescribed | by the Postal Laws and Regulations

He. 25 \ %

of the U tiger SAA ters ant pont coftyentions how in 2 -#

etfeet. i

' Rach track (or wagen> converving mail from the post

office to the steamehip will be provided with a man to

ride off the rear so as te preve ant dnterferonee with the

» mail or the possibility of a sack working loose, and

falting, utiebserved, into the street. | e

lo ed

After filling the biank< with the requested ifformat vega

for ene “h vessel, plaintiff siene “dl and returne a] Yhe form te

the postmaster. .

The last two paragraphs of Form 205 we re changed in

Deoewmiber 19: 4 to read as follows:

It ix understood-that the maids shall be carried in

_ aeeordanée with the terms, conditions and re sponsibili-

* ties prescribed by the Laws geverning the Ope ration

* of the Postal Service, tithe 39 of the Céde of Federal’

é Regulations and postal conventions now in effect.

Each vehicle used to transport taails between post -

offices and vessels, except the completely closed van

type, the mail compartment of which must be locked ér

sealed, shall be provided wifh a man to ride on the rear

and protect the mail. When a rack type truck is used

the sacks shall be covered by a tarpaulin. oe’

13. To earry the maik from the post offices to the piers

at New York and New Orleans, plaintiff entergd into con-

tracts with trucking companies under which plaintiff paid

for the trucking at a minimam rate-perhagam week days —

aml ata higher rate per bag for overtime periods, week-

ends and holidays, The names of the truckmen authorized —.

to receive the mails were furnished to. the post offices,

14. The mails for dispatch on a particular steamer were

tendered the trucking contractor at the post office platform — .

hy post office employees who gave to the truckman aopre-

liminary count of the number of sacks loaded with no indi-

cation of whether the sacks contained letters, prints-or —-——

empty sacks... With the last truckload, the post office

mC: a 23 dla ,

|. furnished Form 2O8sS Al entitled ** Wavbill of Saeks Dis-

_patched and Form 2ass8) entitled “Way hill of Diplo-

niatie Aispatch Pouches” * horny ISS listed registered

. sacks according to country ef origin and port of destina-

fiom: Howe ve r, only the count of sacks of (1) ietters and E

prints, (2) parcel post, and (3)amotion picture films, was “

~hown, w without refepenee to originy Dipeleotnnsatie pouches

were listed aceording to origin and destination. A revision

at Form 2O8s4 in September 1953 provided space for list

ing as part of the ‘*mail’’ advised on cdi waybill the

number of sacks containing empty mail sacks. -

As required by regulations, the rats were given

spree vial care for their protection w hile being trucked ta the

pier. Phey were hie last item plac ed on board the vessel on

departing and first off on arrival. Om beard the vessel, as a.

~ecurity neasure, thesmails were placed i in low ked eompart-

nents, containers or enclosures,

. In connection with the weldhlng of the minils prior .

to yer the Manual of Information for’ Exchange

(flices stated as follows with regard . to fetter and print

miatils . / i

ee : e oe bad _ es ° « 6 .

‘Basing, Sealing, Weighing and Reeording |

. wor; oe . oe ° ° ° e

8 is aymie nt for the conve vanee of mails by Steamets to

other countries is based eathe net wight of the mails

(rate for letters is more than that for prints). There- — :

fore. in weighing the sacks, the nef weiaht is recorded. |

With sila to re whale red mails, the Manual statell:

. ne A vy a i )* s . . .- .

In closing ont a dispatch or when a sack is made up

al any other time, the articles to be -enclosed are ————

we wische “dl before be ing placed in-te—<ack “and | the net

—_—_—— eight Tetters and prints separately) is recorded.

a .--.- Sh

With regard to parcel post mails, the Manual stated :

- ys * - @ . ; e . . : .

Bulk billed parcels: Ordinary parcel. Joost paw ‘kagtes

which are to be advised simply in bulk on’ the parcel

post ball (For, 203 4) are pilaced direetiv in iw sack *

2 after separation to the progr exe hance offi’ in the

country of destination... Aseach Saek isomade up, it is

entered on the bagging sheet separately, sbowing the

sack number in conseentive ogder (commencing with

No. 1 tor each dispateh), the number of parce ds of each

weight ant in the sack (if required by ‘the country of

destination), and the net.weight of the parcels.

e- a os ee ° e 7 oe -« .

Larae Volume :—

* * al * . . . so ° .

In following this method the pareels for eacl

change office are separated by weight unit groptps and

each group is bagged separately so that all the\parcels

in a sack will be of the same weight unit group, and it

ix to be understood that only sacks containing parcels

of one weight unit.group ‘are to he entered en a single

line as the reeords must show the weight unit of the

parcels contained in any sack in case of future inquiry.

*- § @ ‘-— s ° -.* & A ee °

W ith regard to foreign clesed transit mails, the Manual

: stated: i 4 ; : ;

? ao

‘ Weights:—-A reeord is made of the origin and

destination a each foreign closed. transit: mail dis-

patched by each steamer, registered and ordinary

mails separately, The net weights of the sacks é

endorsed. on the dabels are reeorded by countries of

origin. and destgnation. according to three classitica-

tions, lefters, prints and parcel post. The weights are

totaled aecording to the reqairements of ‘the réports

submitted on Forms 2963, 2963(¢) and 2063(d).

. ; : | ; |

43a

In conpection with the’ propiiration « of wee ‘kly weight re

ports, the Manual stated: “\ *

. - . . ® . . .

Ie parts of the Wereht of Maly Linqutdehiedt ity

Steamer, Forms 205, Vice), SM)

Net weights: The net weight of the mails is the

basis npot Which paytnent ixanade for the transporta

—— Lion of mails on ste amahipe of both United States and

foreign registry.

* an) : . * . 2 . ” .

‘With regard to the return of empty sacks, the Manual

stated: | fe ss : se

e » J j °

- 8 - @ . * o . * °

Bundles enclosyd. in’ sacks: g& profs: —Bundles of

empty sacks not numerous enough te form a tuft sack:

are tied out with green labels and inserted in asackof -

prints for the exchange office to whieh the sacks are

Weing returned. The, weight of the enclosed vinply

sacks is not. inchided in n the net wepelit of the outside

sack, . .

are * _ & _ Ae ee, a . a e..

Weights:—The weights of saeks of empty ejuipme nt

are not asce ‘rained ror recorded as no compensation

.Is pai for tratsportation of such sacks by ste amships.

X P

. »

. Prior to their dispateh, the ‘nails are weighed in a

ee ‘die workroom trom which thes ge neral publie is ex. /

cluded. Letter mails Were enclosed in sacks and weighed 4

-on seales whie Ir were preset for the faye. weights of sacks

used, and the indicated net weight of thesingils enclosed P=

_ reeorded for compensation purposes. - Pritt mails “Aare

similarly weighed on a gitags scale, “a deduction being

made for the weight of-the dnelosing. sack, and/the net

weights. thereof recorded. The sacks of parce}. post mail

were not weighed. Before heing- placed in sacks, the parcels

were grouped. according to i weights a6 recorded for

postage purposes, Tfowever, these ‘actual Aveights were not

the weights re corded on | forms sent to 4he, steamship com.

eee oe et at

fs P

ar dia ,

Pruaniocs ; instead, thee) prost office recorhalb an estomated

average weight of the parcels “before being placed in sacks.”

With: respect to the foreign Gosed transit mails, only the

het weights of the letters, prints and parcel post mails we re

recorded’ The sacks enelosing empty mail seeks trans

ported by plaintiff? were bundled in the-atne workroom as’

other domestic mails prt aeaeel Weighed hor was any

‘record of their weight mfaiiitained: lv the post offices.

18. Approximately a week-or-ten days after® witities the °

Post Office Department furnished plaimtia’ witha statCment

“on Form 2063 of the weights of mails dispatched showing

the weights of letters, prints and parcel post of United

States origin and, syparately, the weights of letters, prints

and parcel post of foreign closed. transit mails according

to port Gf ilestination. The Weight statements did yot indi-

cate whether the weights shown were net or gross weights. -

The weight statements did not show the number of bags

and the “wefghts shown could not -be identified swith the

sacks as listed on the post office waybills.

es had a Jong-stamling controversy concerning the com-

putation ot mail pay for the carriage of ocean mail as

‘relates to three of the elements of the total transportation.

Those elements or issues are measuring and computing

payment on the basis of net as against gross weight; the

return of empty sacks; aril, eartage between the Post Office

and the steamship doek. : :

"On June 16, 1950, the plaintiff by its vice president s sent

a-letter torthe Assistant Postmaste ‘r General, which reads

, as follows: ‘;

‘Over a long pe riod of time, this Company has re.

peatedly protested, verbally and in writing, against the

refusal of the Department to allow any compensation

* for the weight of empty sacks tendered for transpor

‘tation on ships operated by this Company under the

Americ ‘an flag from ports in the Mnited States to for-

. ein ports. ,

». Plaintiff company and the Post Office Department |

“—

. a

e \

*fa oft ; a

We have alse protestid the ‘reftisal fo include the -

Weights of mail sacks in the weight. of mails tendere|

by the Enited States for trinspertation to. foreign

It ix our view that the gross weights of all mails

lineluding sack contaters) and empty sacks tendered

by CLS. postmiasters for outbound transportation is an

obligation of vour administrafion aml coripensation’

shonfd be allowed and paid at the applicable rates for

mail matter of the respective classifications. .

The exclusion of thé weights of sacks containing mail

has no counterpart in any other system of transporta-

jion utilized by the Post Office: Department. Further.

mnere, there is no precedent in commercial practice for

exclusion of weights of containers. The practice of

the Department has now become more.dgeravated by

“.*

jresent requirentents that air mail sacks, ie. sacks

carried otthound by air, be returned empty to the

United States by steamer, ‘ >

The Company has long regardéd refusal to pay éom

pensation for transportation of mail sacks as being

unjust and regrets that it is forced to serve notice that

on and after October 1, 1950, any mails that may. be

tendered the United Fruit Company by the United

States postal authorities for transporfation on United

“States registry vessels éperated by this Company will

be accepted and transported by this Company on the

_ condition that the compensation for the transportation

of the mails tendered will be computed ppon the gross

weight (including sacks) of the mails so tendered and

transported. Pere , °

Any empty mail sacks that may be tenderal the

United: Fruit Company by the United States postal

authorities fyr transportation on United States rew-

istry vessels \pperated by this Company will be ae-

cepted and tryhsported with the distinet understanding °

the sation will be claimed and demanded at the

‘rates specified in the Postal Laws and Regulations for

all other articles,

The foregoing will apply to all sogalled Convention

mails, for which your administration is obligated to

dha

“transport dmler the free trgnsit provisions: of the fon.”

vention of the Americas and Spain.

We wish ‘to assure the Department of our -Incere

desire to continne to transpiert all mails tendered and

in fe sense is the letter Yo be construed as a refusal

te transpert any and all mails at the crates fixed by the

Postmaster General, and the U tdted Fruit -4 ‘omipatey

recognizes in this regared: its obligation under the Pos-

tal Laws and Regulations, but it respecttully disavows

any. obligation to transport sacks contaifing mail. or

empty sac ‘ks without compensation,

20. On July 14, 1950; the. Acting Assistant Postmaster

General, Bureau of Transportation, wrote plaintiff i In part —

as follows:

“In this connection, your attenfion ix valled to the fol. .

lowing Sections: of the 1 1948 Postal Laws and Regula-

tions: oer

‘Section 120.7,-paragraph 20h). Definite rates. Un-

less otherwise specially provided, payment shall be

made for the transportation of United States minil<

and foreign closéd.trangit mails on steamships ef both

UL nited: States registry and foreign registry, am, for

the transportation to the United States of mails @hich

the Unifed States is obligated to convey, at the rates

of 8.8 cents a pound for mails consisting of letters and

posteards and 1.1 cents a pound for mails consisting

of other articles, including parcel post, for distances

‘up to and including 300 nautical miles; 23.7 cents a

pound for mails consisting of letters: and posteards ,

and 2.9 cents a pound for mails consisting of other arti-

cles, ineluding parcel post, for distances from 300 up

to and ineludiyg 1.500 nautical miles, and 35.5 cents a

pound for mails consisting of letters and posteards and

4.7 cents a pound for mails consisting of other articles,

including parcel post, for distances exceeding 1.500

nautical miles. he

Sedion 125.3. Duty of Fessels to carry mai ae:

dered. Except as otherwise provided by treaty or eon. .

vention the Postmaster General may require the trans- ~

portation hu any steamships of mail be dueen. the

United States and any foreiqn port at the compensas

e , tia S °

tion fired under authority of lac. Upon refusal by the

masteror the commander of. such steamship or vessel

to. aceept the mail, when tendered by the Postmaster

fieneral or his representative, the colPector or other

Officer of the port empoweyed to grant clearanee, on.

nhottee of the refusal aforesaid, shall withliold clear

ance until the collector or other officer Of the port is

informed by the Postmastér General or his representa:

tive that the master or commander of@he steamship or

vessel has accepted the mail or that conveyance by his

— steamships or vessel js no longer required by the Post-

master General. (62 Stat. 784; 1S U.S. 1724.) ..

(Italies supplied by the writer.)

' *The Postmaster General has the lawful authority to

set the rates of compensation for the transportation

of United States mails on steaniers sailing to foreign

destinations. °° te ae fe ,

_ With very few-exceptions, to our knowledge, it is the

universal practice ‘not to pay for the weight of sack<

used in Connection with the dispateh of regular or par-

cel post mails or y the return of empty sacks, either

‘in transit through foreign countries or by -steamers..

Compensation is paid on |the net weight of the mail’

invelved. This practice has been followed for a great

number of years and is appareatly based on the folow-

ing provisions of the Universal Postal Union Conyen

tion, the present due being that of Paris of July 5,

1947:

Articie 153, parayvraph 7. In regard to sacks which

contain nothing buf enfpty sacks, or correspondence

exempt from all transit charges (Article 68 gf the Con-

vention), the note Statistique is followed by the word

Exempt. = ¢.

Article 161, paragraph 5.) Transit charge account.’

Tn.order to take account of the weight of the sacks and

packing, as well as of the classes of correspondence vx

empt from all transit charges in accordance with the

provisions of Article 68 of the Convention, the total

amount of the account for closed mails is reduced by

10 percent. (Italies supplied by the writer.) *

It will be noted from the quoted Seetions of the Uni--

versal Postal Union Convention that ‘the weights of

« | 48a

empty. sacks are ‘not taken into. consideration as re-

wards statisties and transit) charge aceounts, — This

- heeessitates our charging other postal administrations

for the net-eweights of any foreign closed transit mails

handled by the United States and Viee Versa,

A meeting of the Technical Transit Committers of

the Universal Postal Union was held in Interlaken,

— Switzerland, during Jaye of 1949, for the purpose of

Vv revising the Convention and regulations covering the

“handling and charges involved in Connection with for:

eign closed transit. mails. -At that meeting the weight,

of sacks, as Welfas the return of empty sacks, was an

important item on. the agenda. * | i

Owing to the complexities of the overall problem and

the ditfesen) viewpoints of varies administrations,

final decision Was not arrived at during the Interlaken

tneeting. However, the matter has been and is receiv

-. ine the attention .of the varrous postal administrations

"and another meeting 6f the Technical Transit Commit

tee‘is seheduled to take place im’ Switzerland during

May or June of 1951, at which time the Committee will

make detinite recommendations for consideration at

the next Congress of the Universal Postal Union to be —

held in Brussels, Belgium, in Io. >

We are sympathetic towards your problem and agree

it ix nevessary that some action be taken -towards

adopting a universally cunaform, system as rewards

possible payment for the weight of sacks used in con-

nection with the dispatch} mails as Well\as for the

return of enipty equipment. \However, until sach time

as a change in procedure nfaht be adopt\d by the

Universal Postal Union, we regiet it will be fiecessary

for yourty accept any mais tendeted to steamers of the

United Fruit Company bythe Euiited States postal

authorities in accordance with the rules and rewula-

tions as set forth by the Postmaster General.

- P *> . - S - « . : - :

The-emphasis by italie in § 120.3 and Article 161 appears

in the Department's letter by underscoring,

‘The Post Office has always paid for all elements of ocean

mail transportation on a basis computed on a net rather.

than a gross weight. -- é

«<

49a

{ nol oer 7.

21. The plaintiff sent a further letter to the Assistant

Postmaster General on Septembe r 29, 1950 in which it per: |

‘osistedl in’ its earlier position and requested that it be fur- |

nished with information gs to the weight of ssacks carried,

us follows: ;

o » é fe * * ° * *

\ Neither the weights of sacks containing mails ner the

/ weights of empty sacks, are furnished by postmasters.

Thereford, it is respectfully requested: ‘that the post-

masters tendering mails to our vessels .be directed to

furnish statenients of weights of sacks at the time net

weight statements of mails are furnished. It is’ re-

quested that the postmasters report (a) weights of

sacks containing letter mails; (b) weights of sacks con-

taining all other mails; (¢) weights of sacks containing

parcel post;-and (d) weights of empty sacks.

22. On and after October 1, 1950, the Post Office Depart-

‘ment continued to tender mails to plaintiff, and the United

States postal authorities in the ¢ Canal Zone‘and: postal ad-

ministrations in the Caribbean area began to furnish plain-

tiff with the gross weights of mails dispatched. on plaintiff's —

vessels, Plaintiff filed public vouchers with the Post Office

Department for compensation. onthe basis of the gross

weights ‘furnished. “These claims were disallowed and the

- Post Office Department revised the vouchers and made pay-

nent: on the basis of the net weights of. the mails trans-

ported. ‘

23. On November 14, 1950; the Director of Posts, Balboa

Heights,.C'anal Zone, w rote plaintiff in part as follows:

The question of furnishing the weight of equipment:

containing mail was referred to Mr. John M. Redding,

Assistant Postmaster General to whom you refer in

"your letter, and Tam enclosing a copy of his reply.

In view of his statement-that: no ‘Mtructions have

been issued to exehange offices dispatching niails to

furnish such weights’ and that’ the matter is- under

study, it will be necessary for us to discontinue show-

ing the weights of equipment on our waybills, as stated

rt’ i

. : 50a

in my reply to you under date ef October 31, 1950),

until such time as a change in poliey is made by the

— Post Office Departinent in Washington. :

Theiletter of Assistant Postmaster General Redding to the

‘Director of Posts, dated November 9, 1950, reads in part as

follows: aries ; é.

I have not talked to anyone from the United Fruit

Company about this subject as allewed in the letter to

‘you and no instructions to furnish such weights: have

heen issued by my office to, the exchange offices dix,

patching the mails.

The matter of pay for the transportation: of the.

equipment? is being considered, and if decision ts

reached making a change in our present policy you |

will be informed accordingly.

o4. On May 14, 1951, the Assistant Postmaster General,

Burean of Transportation, wrote to plaintiff's Washing-

ton attorney as follows: |

I refer to your. letter of Oetober 3, TOO, cared your

visit here on Friday, May 11, 1951, relative to compen

sation for transportation of mail sacks tendered by

-postmasters of the United States for carriage on Amer-

ican flag-steamers. ; Ae

The matter of handling and possible payment fer.

empty mail sacks is on the agenda’ for «lisenssion at

the Technieal’ Transit Committee of the Universal

Postal Union to be held in Pontresina, Switzerland

next month. Upon the return of our delegation from

this meeting, I feel certain that we will be in a posi-

tion to give you some definite advice orf the subject.

°5. The territorial and maritime transit rates in the 1947

Paris Convention (Article 67) were the basis of charges on

the gross weights. of letters and post ecards and other

articles (not including parece] post) exchanged in .closed .

mails betwéen two postal administrations for the benefit of

‘This means mail bags.

—

Dla |

the country whose services participate, in the conveyance

by means of the services of one or more: other postal add

ministrations, ,

A Technical Transit Committe was set up by the Ui

Versab Postal Union in 139 to study and report on Univer:

sal Postal Union rates. Lapsing during the war, the Tech-

nical Transit Committee began meeting in 1949 and from

W500n. The Technical Committee's findings on rates were

> submitted to the Brussels Congryss in 1952 The proposal

that there should be’one rate for all mail was adopted; but,

the proposals ‘that gross weight replace net weight as the

basis of compensition for carriage and the empty sacks be

counted as mail were rejected by the member nations. The

Brussels Convention beeame effective on July 1, 1953.

26. The Postal, Regulations were amended effective Au-

gust 1, 1954, removing the requirement that steamship com-

panies truck incoming mails from the vessel to the post

office, but Raving intact the requirement that outgoing

mails be trucked from post office to pier; and establishing

hew rates of payme nt forthe transportation ef United

States mails and foreign closed niails on steamships of

United States and foreign registry.

On July 23, 1954, the plaintitt hy its. vice-president hid

“sent at letter to the Assist: int Postmaster General reiterat-

ing its previous protest of June 16, 1950, and, -in addition,

served notice that on and after August 1, 1954, plaintiff

would demand reimbursement for expenses in trucking the ‘

mails from the post offices to the piers.

27. By a letter dated July 16, 1954, from the Americar

Mérehant Marine Institute to the Assistant Postmaster

Liene ‘ral that group confirmed : 7

We further inderstand that we are still free to he:

enues with you amendments to the’ regulations which

would effectuate our contention that compensation to

the carriers: should be calenlated on vross weight of

the mail, ineoming sacks containing empty sacks, and

that reimbursement should be made to’ ocean earriers

- for the cost -of trucking outbound mails from Post

Office to ship side.

In closing, we strongly recommend and request that

these new ates, with exceptions aforementioned, be

cinade effee ive July 1, Hot. ‘

To this letter the Assistant Postmaster General replied

on June 30, 154: F

°. ¥our statements of understanding have been noted

cand L believe if advisable to state the Post Office De

partment’s position with respect to the applicability of

the new rates on some of these points, all of which

were discussed in conferences with your representa-

tives prior te the adoption of the proposed rates. ~The

ew rates will bé applicable on the net Weights of the

mails, and cover compensation to the carriers for the

return of sacks containmg empty eanipment as well as

the transportation of outgoing mails from the post

offices to the piers. Tami sure we are in agreement as

to the unelerstanding of the industry with respeet to.

these three points but your confirmation would be ap-

preciated, ; .

This position of the Post Office was furnished to plain-

» tit whieh by a letter signed by Viee President Sam Bax:

wett, dated July 25, 1054, to the defendant stated:

In connection with these amendments, we have been

furnished with a copy of a letter dated June 30, 1954,

. acdddresse di by you to. M Fs I ranes Cireene, Executive *

Vieo President, American Merchant Marine Institute

(this Company being a member of the Institute) which

contains the following paragraph: .

weights-of the mails, and cover compensation to the

earriers for the refurn of ‘sacks containing empty

equipment-as well as the transportation of outgeiny

maily.from the post effices to the piers. Tam sure *

we are-in agreemeptas to the understanding of the

industry HN teafect to these three points but yeur

confirmation would be appreciated.

age)

13a

The * application of the new rates to the ‘net

weights’? of the mails will result in a substantial re-

duction in mail Compensation to this Company, and

on the basis of data submitted) by. représentatives of

- conferences In‘recent months, the composite rates are

net fair and reasonal le,

Accordingly, vou are hereby advised that on and af

ter August 1, 1954, any mails that may be tendered

pursuant to the Postal Laws and Regulations to the

United Fruit Company for transportation on US,

revistered vessels operated by this Company will be

accepted and transported on condition that compensa-

tion calenlated on the basis of such rates will be ae-

cepted by the OMpany as compensation in part, and

net as full compensation, for services rendered, and

that therefore this Company reserves its right to de-

miamd payment of full compe nsation for such services.

The Company recognizes its obligation under the

law to transport the mails, and we assure the officials

of the Department of our sincere desire to continue to

“ handle and transport all mails tendered, and in no

sense is this letter to bejeonstrued as a refusal to pree

vide and perform such servites according to law, and

in the manner, under the conditions, and with the

services as prescribed by the Postmaster Ge ere

28. The Department's practice of paying for ‘the trans-

portatios of the mails on net we ighits i isa long existing ones.

that for tratisporting the mail begreei the United States

and any foreign port the Postmastyr General mat allow

ax compensation, if by a United St;

not exeeeding the sea-and Ua

und if bv a foreign steams=hip, any sum not exceeding the

sea postage, an the mails - “sO transported. This seetion,

printed as | 1405, Postal Laws and Regulatjons, 1924, was —

followed hy a note reading as follows: ,

es steamship, any sumi

Gd States inland postage;

Note. In view of the provisions of the Universal

: 6

Postal Union Convention the term ‘*sca postage?” has

——_——

“

, 4a xs

no meaning. United States steamships nas nat ex

coodineg the whole of the postage coll¢eted on the arti.

eles contained in the mals conveved by said Vessels:

and foreign vessels are paid any stm net excooding

the rate of postage fixed for A single maritime transit.

by the Universal Postal Union Convention ino force

at such time.

The Act of J uly abe 10726, entitled a WT Net to Amend Suie-

tien SMI aot the Res ised Statutes,” prov filend that for trans —

portation of the mais the Postmaster General may allow «

vessel of the Umted Stites COMmpensation not in excess al

the amount of postage coileeted on the mail transported on

such vessel, and in case of a foreign vessel compensation

hot in eXcess of the ~ea ‘transit rates preseribed hy the

Universal Postal Union Corivention. The Net of Februars”

rates for compensation pavable te ~team=hips auf United

States revistry for: transportation of, foreiun. mails.’

amended the Act of July 3, 196, <0 as to provide that .

the Postmaster General may allow to United States vessels

sompensation ona weight basis of not execeding 0 cetits

a pound for lettercand Scents a pound for other articles,

<1. The rates paid hy the Department to the railroads

for the territorial trisisit of the mails are fixed by. the |

Interstate Commerce Commission and provide forgompen.

sation on a space, rather than, weight, basis including the

space veenpied by sacks enclosing ether mail matter atid

space ocenpied by empty mail sacks, Similarly, the, De-

partment compensates the airlines for the total werzht of

the mails carriel, making no deduction for the weight of

the bags containing mall.. - ee

we Wn, January 4, 106. .4 Maintiff <ubmitted te the Post

Office Department public vouchers for compensatron for the

transportation of sacks 9 wlosing the mails and empty

mail sack» during the ao October 1, 150 through July -

—-.

. - . ‘ ; a -

ol. 154. By lette ai dated ie Aarbe r ‘Aa Lone thy ‘ cornedye re

We Ve returie “i Th to bos th Print ie 7 Peyeirtin, oy

31. On Oetober 31, 157, ane Mneoks 6 and March 24°

Isha, plaintitt submitted te the Post Mee [Deopocertrnaernit

pruls lie Voreche ‘rs 1) ter COM pe Nsation for the ocean trans

portation of sacks enclosing the mail and of -empty mul

sacks and (2) for re jmburseme mt for true king. the mails

‘from the urst offices to the pue rs, during the ye riod Anest +

1, 1954. through December 3 - os, The claim for nalets

bursement for the cost of iverking * Wits svete on the cost

‘te plaintilt me bag under its ecartage contract=. pius ad

ministrative expense of three percent By letters dated

January 6, 196s, and Mareho 13 and 25, 1, the Pernt

Office Department aetied plaintiff *~ claims.

o2. No compensation was allowed or paid based on the

weight of the mail ineluding the sacks enclosinudhe Lette Ts.

¢ ‘fe. r tar the» ve aht» of empty mail “ie ‘ks. Dive jarties P

have wtipulated the weights of sa en one dosing the \nails

int” the weights of erapty sac ‘k~ Aranspordtedd bys jolene er nent

the amounts dne in the event ito ts Serared thes Ail: entit

should reeover, either compl ivlor if part, Pili aan

dlue for weights of <acks-enco-ing the mailecis caleulated

at rates fixed amd paid by the Postrna~ terAie neral for the

weight of the mail ened in such “ae io. ee

due for the empty stiek~ transported during the poeriond

fetober 1, 1950, through July 2n, 14. Is catcuiated at. tates

fixes! rel, prvi by th: Postmaster “Ciem ral for ‘tall ether’

-articles’* of mail matter, and for the period August E154,

heouch December 31.158, whet a single rite Was ap

pheable te all eutegortes ot misatie, nt the matte rate fixed

atel paid for other mails dispatched and transported on

pelaintitt 's vesse|s,

United Fruit has at all times maimtained ammnetivestive

rate tariff fer the carrimue of a carce commen dit y denix-

rated as ‘mail bags. canvas bags’ The Post Office De “rant

“piet rif hi: ‘i= it the punt dispate he t be 457) vir ale of as Lad mts of

empty mail bigs by ocean carrie r= under tall of lacie as

“~

' do so.

: 6a

earvo under tariff rates; whenever it would be cheaper to

. ° °

33: No additional. compensation wa allowed for the

; trucking: or cartageoof mails from post officesote piers in

thas payments for the transportation of mails on aonet

weight basis after August 1. 1954, andthe parties have

stipulated the aniounts due for such trucking at the cost -

to plaintiff? por bag under the contracts between plaintitf

and its tracking contractors at New York “and New Orleans.

plus 3 percent additional te- cover administrative Costs.”

yer ies CONC Le BION OF LAW —-

Upon the fore soime findings of, fact, which are made a

part of the “jndfement hervin, theeourt cone Jude as a mat

ter of law that the plaintit i ix entitled to recover and judy

ment will be entered to that « ffeet: The amount of recovery

will be determined pursuant to Rule 2810), ,

| Proceedings following opinion of tis court

On July 12. 1961. plaintiff filed a motion for rehearing..

On October 4, 1451, the court entered the following order

on said motion: .

i - * ORDER

These cases come before the court on motions for rehear*

ings, amendment of judgments or new trials under Rules

53 or 54 of the Rules of this court and, on consideration

thereof, |

Ir Is Onverry this fourth dav of October, 1961, that <aid

motions be and the same are overruled as follows :

° ° .- e e. Zo . . ° * ,

\ Fs . R . x A J ¢

460-56 & 368 57 United Friit Company.

Ri. Plaintiff's ‘motion.

° -« 7 e- “a ee ° .— °

| By tur Cort

s Marsan Jones

Marvin Jones |

Chief Judge

~- i

RELEVANT POSTAL LAWS AND REGULATIONS 1948 IN.

EFFECT ON AND AFTER OCTOBER 1. 1950 (PLAIN-

TIFF’S EXHIBIT 18) ihe wt

. : eos . 3 , :

Sec. As Compensation for transportation af fore iqu

mittls--—— °

. ‘,

(a) Limits of compe nwsdtion: appropriation (1) Au-

thorisation,... 2) F Jor transportation of the mails (1) be

tween the United States or its Territories or possessions

and any foreign country, (2) between the United States

‘and its possessions or its maval or military forces abroatl,

or Ch) between ang such possession or naval or, military

forces and any other such possession or naval or military

forces, thy Postmaster General may allow, in the case of a

vessel ot the United States, Competisation ‘ot benef. of

Scents a pound fordetters and post cards amd S cents a

porined, for other articles (inchwting parcel post), and in the

case of a foreion Vessel, competisation aet in excess of the

seu transit rates prescribed from time to time hy the font

versal Postal Union Convention: . . . (RS, 400, ae

amended: 20 1S. GdCa) 4. >

(hy) De rite rates. Unless otherwise specially prov iddend,.

payment shalk be made for the transportation of United

States mails avd foreign closed transit nails on Steines hipes

‘of both United States registry aud foreign registry, atid

for the tran-gortation fo the Lonited States of mails whieh.

the United States i obligated te convey, as t bis. rates of SS

cent= a pound for mail- consisting of betters fined post card=

and 11 cents a pound for mails consisting of Othfer articles,

including pareel post, for distances up to and inedueding oO)

nantiesl miles; 25.7 cont. a pound for miail~ consisting of.

letters and post cardsatned Li een + a pound fer nails con

sisting of-other articles, including porcel post, for distanees

from SOO up tocaned inclading TOOOaautieal miles, and doc.

cents a pound for nails consisting of letters and post cards

and 4.7 eents a pound for mails consisting of other articles,

including parcel post, tor distances exceeding 1,000 nautical Z

miles. | a.

rates specified in paragraph (b) of this section, payment

for mails which the United States is obligated to convey

shall be made at the rates specified in the schedule stated

below in the following services :

(1) (mward from. the Canal’ Zone’ covering mails dis-

patched from Canal Zone ports to uny ports, except those

in continental U hited States;

(2) From ‘any port in thy countries signatory 7 the

_ conventions of the Postal Union of the Americas and Spain |

(except continental United States, Canada and Spain, and

»Havana, Cuba,/for mails forwar'ed from continental

Vnited States for transshipment) to any other port (except

ports in continental United Statés, Canada and Spain, and

“Havana, Cnba, for mails destined to the United States) ;

also frony ports in-countries not signatory to the conven-

tions of the Postal Union of the Americas and Spain, to

any other port (except ports in-continental United States,

(‘anada and Spain, and Havana, Cuba, for mails destined to

the United States), covering regular mails ie sania in

signatory countries. : :