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value equal to the specified dollar amount times the weight of the shipment in pounds.

SUMMARY

We are pleased with the responsible contributions made in this proceeding by all of the parties, for without such participation and guidance we would have been unable to distill these issues for consideration in this decision.

In this report, we have attempted to consider fully and in good faith all aspects of certain very difficult problems confronting the interstate moving industry and those it serves, and to declare the considerations which have led us to the adoption of the regulations set forth in appendix C to this report. Our goal is, and always has been, to achieve impartial, sound, and realistic regulation of the household goods transportation industry consistent with the national transportation policy declared by the Congress. We are convinced that the additional regulations here promulgated represent an important step in that direction.

FINDINGS

We find that Part 1056 of Chapter X of Title 49 of the Code of Federal Regulations should be supplemented by adding the new subsections 1056.16(c),(d), and (e) as set forth in appendix C to this report; that such rules are reasonable and necessary to the effective enforcement of the provisions of part II of the Interstate Commerce Act, as amended; and that such rules are otherwise lawful, and to the extent set forth in this report are required by the present and future public convenience and necessity;

We further find that, as requested in the separate petitions filed by the Household Goods Carriers' Bureau, the Movers' & Warehouse men's Association of America, and Wheaton Van Lines, this proceeding should be held open for the sole purpose of allowing all parties and other interested persons to file further statements of facts, views, and arguments respecting the adoption of uniform shipping documents for use by the household goods moving industry as proposed in the appendix C to the interim report entered in this proceeding March 28, 1975; and that this decision is not a major Federal action significantly affecting the quality of the human environment within the meaning of the National Environmental Policy Act of 1969.

An appropriate order will be entered.

COMMISSIONER HARDIN did not participate.

124 M.C.C.

APPENDIX A

List of persons filing representations

I. Consumers:
Mrs. John H. Coe
Mitchell S. Cwiek
James A. Fraley, Jr.
Alma M. Hofer
Edwina Hulsart
J. R. Johnson, Jr.
Arthur Kamholz
Ernest J. King
Mrs. Harry C. Long
L. J. Maher
John V. McGlaun
Alison Mish
Mrs. Edward Molesworth
Margaret Testo
Kevin E. Thomas
Geneva K. Thornberg
John Douglas Williams III

II. Shipper and governmental interests:
Boise Cascade Corporation
Bureau of Enforcement, Interstate Commerce Commission
General Services Administration of the United States
Imco Services
National Industrial Traffic League
Office of Consumer Affairs, United States Department of Health, Education and Wel-

fare
Pennsylvania Public Utility Commission
Shippers National Freight Claim Council, Inc.
United States Department of nse
United States Department of Transportation

III. Motor carrier interests:
Cartwright Van Lines, Inc.
Claims Prevention & Procedure Council Inc.
The Wm. Fridrich Moving & Storage Co.
Household Goods Carriers' Bureau
Imperial Van Lines, Inc.
Lawrence Moving & Storage Co.
Lester Moving & Storage Co.
Miller Van Lines, Inc.
Movers' & Warehousemen's Association of America, Inc.
Movers Round Table
National Furniture Warehousemen's Association
Security Van Lines, Inc.
Tillamook-Portland Auto Freight Inc.

Trans-American Van Service
Truck Underwriters Association
Wheaton Van Lines, Inc.

APPENDIX B

Regulations proposed in interim report

Section 1056.16 Liability of carriers.

(c) Limitations of liability. A common carrier by motor vehicle of household goods shall be liable for loss of or damage to any articles caused by it while being transported, including incidental pickup and delivery, or while being held for storagein-transit, except that the carrier may exempt its liability in the following instances:

(i) No liability need be assumed for perishable articles (except frozen foods and other articles requiring refrigeration) included in the shipment without knowledge of the carrier, and a carrier- accepting for shipment frozen food or other articles requiring referigeration may impose reasonable conditions to insure the safe transportation of such commodities.

(ii) No liability need be assumed for loss or damage caused by or resulting from the following

(a) An act, omission, or order of the shipper;

(b) Hostile or warlike action in time of peace or war, including action in hindering, combating, or defending against an actual impending or expected attack by any Government or soverign power, or by any authority maintaining or using military, naval, or air forces; or by an agent of any such Government, power, authority, or forces;

(c) Any weapon of war employing atomic fission or radioactive force whether in time of peace or war;

(d) Insurrection, rebellion, revolution, civil war, usurped power; or action taken by governmental authority in hindering, combating, or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order of a governmental or public authority, or risks of contraband or illegal transportation or trade;

(e) Acts of God, in those instances when the shipper releases the goods at 60 cents per pound per article.

(d) Storage-in-transit. A common carrier by motor vehicle of household goods holding goods for storage-in-transit (S.I.T.) shall, no less than 10 days prior to the expiration of either the specified period of time during which the goods are to be held in such storage or the maximum period of time provided in the carrier's tariff for storage-in-transil notify the shipper in writing (1) of the date of conversion, (2) of the existence of a 9-month period subsequent to the date of conversion to permanent storage during which shipper may file claims against the carrier for loss and/or damage which occurred to the goods during the S.I.T. period and, (3) of the fact that on the date of conversion, the liability of the carrier shall terminate and the property shall be subject to the rules, regulations, and charges of the warehouseman. Failure or refusal of a carrier to notify the shipper in writing in accordance with the foregoing shall automatically effect a continuance of carrier liablity pursuant to the applicable tariff provisions with respect to S.I.T., until the end of the day following the date upon which notice is given.

APPENDIX C

Regulations adopted in this repori

49 CFR $1056.16 shall be supplemented by adding the following:

Section 1056.16 Liability of carriers.

(c) Limitations of liability. A common carrier by motor vehicle of household goods shall be liable for loss of or damage to any articles caused by it while being transported or while being held for storage-in-transit, including incidental pickup or delivery, and including liability for loss of or damage to any article or appliance resulting from the servicing of said article or appliance by a third person engaged by the carrier to perform such service, to the extent provided in the outstanding released rates order; except that the carrier may exempt its liability in the following instance:

(i) No liability need be assumed for perishable articles included in the shipment without the knowledge of the carrier; and a carrier accepting for shipment perishable articles may impose reasonable conditions necessary to insure the safe transportation of such commodities.

(d) Claims. -When settling a claim for loss or damage, a common carrier by motor vehicle of household goods shall use the replacement cost of the lost or damaged item as a base to apply a depreciation factor to arrive at the current actual value of the lost

a or damaged item; provided that where an item cannot be replaced or no suitable replacement is obtainable, the proper measure of damages shall be the original cost, augmented by a factor derived from a consumer price index, and adjusted downward to reflect depreciation over average useful life.

(e) Storage-in-transit. A common carrier by motor vehicle of household goods holding goods for storage-in-transit (S.I.T.) shall, no less than 10 days prior to the expiration of either the specified period of time during which the goods are to be held in such storage or the maximum period of time provided in the carrier's tariff for storage-in-transit, notify the shipper in writing (1) of the date of conversion to permanent storage, (2) of the existence of a 9-month period subsequent to the date of conversion to permanent storage during which shipper may file claims against the carrier for loss and/or damage which occurred to the goods in transit or during the S.I.T. period, and, (3) of the fact that on the date of conversion, the liability of the carrier shall terminate and the property shall be subject to the rules, regulations, and charges of the warehouse man. Said notification shall be by certified mail, return receipt requested. A common carrier by motor vehicle of household goods holding goods for storage-in-transit for a period of time less than 10 days shall, no less than 1 vay prior to the expiration of the specified time during which the goods are to be held in such storage, give notification to the shipper of the information specified in (1), (2), and (3) above, and maintain a record thereof as part of its record of the shipment. Failure or refusal of a carrier to notify the shipper in accordance with the foregoing shall automatically effect a continuance of carrier liability pursuant to the applicable tariff provisions with respect to S.I.T., until the end of the day following the date upon which notice is given.

ORDER

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TITLE 49 - TRANSPORTATION
CHAPTER X INTERSTATE COMMERCE COMMISSION
SUBCHAPTER A GENERAL RULES AND REGULATIONS
PART 1056 - TRANSPORTATION OF HOUSEHOLD GOODS

IN INTERSTATE OR FOREIGN COMMERCE

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At a General Session of the INTERSTATE COMMERCE COMMISSION, held at its

office in Washington, D.C., on the 23d day of February 1976.

Ex PARTE No. MC-19 (SUB-No. 20)

PRACTICES OF MOTOR COMMON CARRIERS OF

HOUSEHOLD GOODS
(LIMITATIONS OF LIABILITY)

li appearing, That by Notice of Proposed Investigation and Order dated May 9, 1973, this Commission instituted a proceeding to investigate certain specified matters described in the attached report concerning limitations of liability and uniformity of shipping documents relating to the for-hire transportation, in interstate or foreign commerce, of household goods;

And is further appearing, That investigation of the matters and things involved in this proceeding has been made and that the Commission has made and filed its report herein containing its findings of fact and conclusions thereon, which report is hereby referred to and made a part hereof;

It is ordered, That the motion submitted by Movers Round Table in the text of its statement filed June 2, 1975, requesting that the Commission produce for inspection certain documents, be, and it is hereby, overruled.

It is further ordered, That Part 1056 of Chapter X of Title 49 of the Code of Federal Regulations be, and it is hereby, supplemented by adding the new subsections 1056.16(c)(d), and (e), as set forth in appendix C to the said report.

It is further ordered, That all motor common carriers of household goods in interstate or foreign commerce subject to the provisions of the regulations adopted herein shall amend their bills of lading and appropriate tariffs to reflect only those defenses allowed by common law and by the provisions of 49 CFR 1056.16, in accordance with the discussion set forth in the report herein, and that this shall be done within 60 days of the publication of the attached notice in the Federal Register.

It is further ordered, That this proceeding be held open for the sole purpose of giving further consideration to the adoption of uniform shipping documents for use by the household goods moving industry as proposed in appendix C to the interim report entered in this proceeding March 28, 1975; that a notice to this effect will be published in the Federal Register, and that additional written statements of facts, views, and arguments respecting these proposed uniform forms are hereby invited to be submitted by any interested person, whether or not such person is already a party to this proceeding, on or before

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