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It is further ordered, That this order shall be effective on April 23, and shall remain in effect until modified or revoked in whole or in part by further order of the Commission.

And it is further ordered, That notice of this order shall be given to the general public by depositing a copy thereof in the Office of the Secretary of the Commission at Washington, D.C., and by filing a copy of the attached notice with the Director, Office of the Federal Register. (49 U.S.C. 20, 304, 316, 317, and 319, 5 U.S.C. 553 and 559).

124 M.C.C.

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PURPOSE: The purpose of this notice is to inform the public that the Interstate Commerce Commission (1) has adopted new rules relative to the liability limitations of motor common carriers of household goods, and (2) is inviting public comment relative to the adoption of proposed uniform documents for use by the household goods carrier industry.

The Interstate Commerce Commission in the above-entitled proceeding has adopted new rules relative to the liability limitations of motor common carriers of household goods. The new rules are designed to clarify certain of the carriers' rights and obligations insofar as liability limitation is concerned. The new subsection 1056.16(c) specifies those situations, in addition to those historically provided under the common law, wherein a carrier need not assume liability. The new subsection 1056.16(d) clarifies the method by which carriers are to determine the measure of the current actual value of a lost or damaged item made the subject of loss or damage claim. The new subsection 1056.16(e) concerns the requirement for notice to the shipper of the carriers' obligations insofar as storage-in-transit is concerned.

One of the more complex matters involved in this proceeding pertains to the "articles of extraordinary value" provision contained in the general rules governing the tariffs of most household goods carriers. Under this tariff provision, a carrier will not assume liability for specified items, including articles of extraordinary value, unless such items are specifically listed on the bill of lading. Many ambiguities surround the current application of what is an item of extraordinary value. It is applied after the shipment has been completed, and is often interpreted against the shipper. In view of these circumstances, the Commission concluded that the public interest would best be served by the requirement that household goods carriers be fully liable for all items accepted for shipment, except in those instances specified in the new subsection 1056.16(c).

The new subsection 1056.16(e) requires household goods carriers, when holding goods for storage-in-transit (S.I.T.) to give the shipper proper notification as to the date of conversion and the rights and duties of shipper and carrier upon said conversion date.

Finally, the Commission held open the above-entitled proceeding 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. See Practices of

Motor Common Carriers of Household Goods, 121 M.C.C. 347. The Commission is of the view that uniform shipping documents for household goods carriers will alleviate shipper confusion. The proposed uniform documents are a composite of existing forms. The Commission believes that the prescirbed documents will not be unduly restrictive, but will effectively eliminate those provisions which violate the provisions of section 20(11) of the act and the newly adopted regulations governing liability limitations discussed above. Comments (an original and 15 copies when possible) are invited on the proposed uniform forms and should be filed with the Commission on or before May 3, 1976.

Additionally, and in the meantime, motor common carriers of household goods have been ordered to amend their bills of lading and appropriate tariffs within 60 days of this notice 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 in this proceeding.

The rule is issued under the authority of 49 U.S.C. 20, 304, 316, 317, and 319, and 5 U.S.C. 553 and 559.

Accordingly, this action supplements 49 CFR 1056.16 so that it now includes 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 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 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 124 M.C.C.

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 warehouseman. Said notification shall be 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 day 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.

124 M.C.C.

No. MC-30657 (SUB-No. 27)

DIXIE HAULING COMPANY EXTENSION-
DORAVILLE

Decided February 23, 1976

On reconsideration, proceeding held open for a period of 60 days within which time applicant must comply with certain conditions, including presentation of additional verified statements concerning its status as a contract carrier.

Monty Schumacher for applicant.

John P. Carlton, Carl Cole, John T. Coon, Michael E. Gribble, B. K. McClain, Ronnie B. McClister, Roger M. Shaner and Donald B. Sweeney, Jr., for protestants.

REPORT OF THE COMMISSION ON RECONSIDERATION

DIVISION 1, ACTING AS AN APPELLATE DIVISION,
COMMISSIONERS MURPHY, GRESHAM, AND CLAPP

MURPHY, Commissioner:

By application filed May 29, 1973, Dixie Hauling Company, a corporation, of Atlanta, Ga., seeks a permit authorizing operation, in interstate or foreign commerce, as a contract carrier by motor vehicle, over irregular routes, of pipe and pipe covering, preventive coating and wrapping materials, steel piling, steel bearing pile, pile hammers and extractors, steel rail and track materials, and related parts, fittings, and accessories used in the installation and repair of such commodities, from the plantsites of L. B. Foster Company and Southern Pipe Coating Company at: (1) Savannah, Ga., to points in Florida, North Carolina, Georgia, South Carolina, Alabama, Tennessee, and Mississippi; (2) Orlando, Fla., to points in Georgia, Alabama, North Carolina, South Carolina, Tennessee, and Mississippi; (3) Birmingham, Ala., to points in Mississippi, Florida, Georgia, Tennessee, North Carolina, and South Carolina; (4) points in Gwinnett County, Ga., to points in North Carolina and South

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