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<abstract>In settling a claim against a household goods carrier for loss in
transit of a service member&apos;s compact discs (CDs), the service applied 
a flat 10 percent depreciation rate to determine the amount of the 
carrier&apos;s liability.  Carrier argues that the 50 percent rate 
applicable to phonograph records under the Joint Military Industry 
Depreciation Guide should be used, and that the 10 percent rate the 
service used, applicable in the service&apos;s settlement of claims with 
members, may not be applied against the carrier.  In the absence of an 
agreed rate under the Depreciation Guide, the service applied the 10 
percent rate which it states was established based on evaluation of  
the unique characteristics of CDs, which significantly differ from 
phonograph records.  The carrier has not shown that the service&apos;s use 
of the 10 percent rate is unreasonable.  Therefore, the service&apos;s 
action is sustained.  Fogarty Van Lines, B-248982, Aug. 16, 1993, 
distinguished.</abstract>
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