O ^VJ Cornell University Library HE 1826.P81 Demurrage and car efficiency 3 1924 013 692 888 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013692888 I Nt ERSTATE COM M ERCt^ ' ■ ■' Ail* " RAILWAY TRAFFIC COURSt SainuelMaeClbtQpci PIi.D;. The ^t^ects listed below daae^^ie "tht bt^ n^ttciM of a oodne te latwstate C!bQU»Bree a»i ttafiw^r IMJfe. HM' wtaa^^ii e8p«K^&% deeigbed to aee^ JJto aeovtaDi^.! growhig demxi^ for ^cieatly tiTiuBied n^ % »^to»d tufd; indmrtitia} traffic .wqrk; ia unat stu^e^ts tc^ psM tlw «ai|i^ inaiCipnaifdr goveni^ent' aervke iu^dw ii» fateoMia Qim.*- nwree. Opnunaeiciii; and to meet tBe d^nand for meoi eoQ^- peteat to dite(A'tT^ xreA bt jeaimne^^ traffie bure^ua. Witbtbe tE^n^l^jifrtfae^^^A ^BI'iiflSiE Map0, the sat>]eclfl liiiAed beW^ art coverod i» aa average /of approsimately 200. pages eft^h. Atla* of FUilIway Traffic Mt^ Traffic Glossal^-" , _■ r--' , Freight ClasiiiiicAtidn: Somei Ws^ of Rocjtii^utE Fr^i^t . ./-Ott^efr;'' '■':'■':.''''■ '■'■.■'-■*■',;....-/: Freif^t Rktsi W^erh Tamttfrjrj BMe» fw Fr^ph^ , ,QaifSia ■ -, .,\" > ■-;-.^ >^, . . "^'^'^^f'f^' Froi^t Rftiis: Offid«4 Uatsificatiota Territory ^und £astern Canadarlndiutrid|rra^ , FieUitsRato; , Sbuthciti Ten;it««y , PaM«sat;ioii >na FiUng of Tarsffs Fneii^t Cl;uins ;' Investigation ^ Flr<^t Ctiuiitt; Rooting Freight Shipmentjur The Bill (^ t«^^ A Primely Le^on in Trtaut; Dmti^^ , Railwajr Organisation; Statistica of 'Freig}^ Tri^e; Railway Act(>pri^»g^ The Efpteu Service uid Rktea Ck»an Tcaffi; and Trade Rijiilway^Jlmilatioti ' ; ,. , m^i ' TKe Act to R^latevCnnnt^e »adSafff;iftii^Bk»,Aidt$ Osiference Rul^V Pirocedure EdFope die lQt|diittM . v , Coinmerce GHnnnnioiiii 'Crounda of . |V^ in /■ Rate 'Cases/ . ■•''^'/v^.. :^' '''*;; ;:-"'^ ■''''-' Andicaticm (tf Aginiey Tuifts ' : The Law (tf Carrkn of Cood* Pnc^cal TmSIc n^tcms CONTENTS I. Interstate Regulations Definition and History of Demurrage 3 Demurrage on Interstate Shipments 5 Uniform Demurrage Rules 11 Exceptions to the Uniform Code 17 II. Intrastate Regulations In General 20 Normal Free Time. 21 Additional Time for Unloading. 21 Miscellaneous Features of State Codes 23 III. Reciprocal Demurrage and Per Diem Reciprocal Demurrage 25 Per Diem 27 Demurrage Bureaus 29 IV. Relation op Demurrage to Car Efficiency 30 Appendixes 39 DEMURRAGE AND CAR EFFICIENCY CHAPTER I interstate regulations Definition and History of Demurrage Before the days of the railroad, the term "demurrage" was applied to the money penalty collected for undue delay in discharging the cargo of ships. Today it is applied also to the charge made by railroads against ship- pers for the detention of cars beyond a specified time called "free time." The charge may be made either for the detention of empty cars placed for loading or for the detention of loaded cars. Th6 collection of demurrage was first inaugurated in the United States about 1887,^ at which time it was applied by only a few roads. It is now applied universally on all roads throughout the United States. The rates and conditions under which demurrage charges are assessed naturally vary to some extent under different circumstances, although much has been done recently to bring about uniformity of demur- rage charges throughout the country. It is probably safe to say that there are no charges assessed in connection with the handling of freight traffic that have, in the past, caused more trouble than demur- rage charges. The shipper may be overcharged in freight several dollars without detecting it, but let him see an item of "Demurrage $1" upon his freight bill, i-The first demurrage bureau, or car-service association, as it was' then called, was organized at Omaha, Neb., October, 1887. 3 4 DEMURRAGE AND CAR EFFICIENCY and a vigorous protest will be forthcoming. The princi- pal reason for this has undoubtedly been that the shipping public has not appreciated the fact that demurrage charges represent absolutely no profit to the carrier but rather are a necessary penalty imposed by the carriers to enforce prompt release of their equipment. If the shipper would stop to consider that one dollar a day, or even three dollars, does not much more than pay for necessary bookkeeping (let alone their represent- ing any fair proportion of the revenue which the carrier would obtain from the use of the car for transportation purposes), there would not have been so much complaint in the past. Mr. G. C. White, Transportation Specialist, has the following to say as to the use of cars for storage : It is not good business to use for storage, space which costs 50 cents per cubic foot to construct, when better storage space can be had for one-third that cost or less, and especially when the higher priced space can earn so much more as a freight car than as mere storage. Storage space does not need costly trucks, steel underframes, automatic couplers, and air-brake equipment. Shippers must realize that, from one point of view, they and not the railroads are the owners of the cars of the country. So long as they insist on using them as storage warehouses they must be prepared to pay the cost without complaint. Moral suasion has so far failed to induce them to construct their own storage ware- houses when they could get apparently cheaper storage in freight cars. The next step in remedying car shortage should be to limit more closely the free time allowed and to impose a demurrage charge sufficiently high to make storage in cars clearly unprofitable.^ Let us now take up the study of demurrage with the idea clearly in mind that demurrage charges, unlike trans- portation charges, are only a means of assisting the carriers to secure, for themselves and for the public, the greatest possible use of freight equipment in this country. Hence the highest demurrage charges which are assessed ' Bulletin 191, Department of Agriculture. INTERSTATE REGULATIONS 5 usually represent small payment for storage that would otherwise.have to be secured at considerable expense and inconvenience. With this preliminary view of the place that demurrage charges fill in our system of charges in connection with the transportation of freight, we will give attention to practices in connection with the assessing of demurrage charges. Dbmubkage on Intekstate Shipments For St long time the assessing of demurrage charges was looked upon as being subject to state regulation on the ground that charges assessed for the detention of a car Vere not a part of the interstate movement, but in 1908 the Interstate Commerce Commission definitely took jurisdiction in the assessing of demurrage charges. On March 16, 1908, the Interstate Commerce Commis- sion issued Conference Ruling 54, which reads as follows : Questions of demurrage and car service on interstate shipments are within the jurisdiction of the Interstate Commerce Commis- sion, which does not concur in the view suggested by certain state commissions that such matters, even when pertaining to interstate Sshipments, are within their control. On May 12, 1908, Conference Euling 223, which reads as follows, was issued: (a) The act requires that carriers shall publish, post, and file "all terminal charges * « * which in any wise change, affect, or determine * # * the value of the service rendered to the passenger, shipper, or consignee," and all such charges become a part of the "rates, fares, and charges" which the carriers are required to demand, collect, and retain. Such terminal charges include demurrage charges. (b) On March 16, 1908, the Commission decided that demur- rage rules and charges applicable to interstate shipments are governed by the act to regulate commerce, and therefore are within its jurisdiction and not within the jurisdiction of state authorities. Any other view would open a wide door for the use 6 DEMUERAGE AND CAR EFFICIENCY of such rules and charges to effect the discriminations which the ct prohibits, (c) Demurrage rules and charges must be observed as strictly as transportation rules and charges. The Commission can not, therefore, recognize as lawful any rule governing demurrage the application of which is dependent upon the judgment or discre- tion of some person, or which provides for exemption therefrom in certain exigencies in the creation of which the carrier has no part. Interstate tariffs containing such rules must be corrected \or canceled. In the same year that the above rulings were issued, the matter came before the Interstate Commerce Commis- sion in the case of Wilson Produce Company et al. vs. Pennsylvania Railroad Company. The cause of this com- plaint was a tariff issued by the Pennsylvania Eailroad, which read as follows : LOCAL FREIGHT-TARIFF CHARGES FOR TRACK STORAGE ON CARLOAD FREIGHT AT PENNSYLVANIA LINES PRODUCE YARDS, PITTSBURGH, PA. (To be applied from April 1 to December 15, inclusive, of each year.) Fruits and vegetables, in carloads, from interstate points, arriving at Pittsburgh via Pennsylvania Railroad, Pennsylvania Company, and Pittsburgh, Cincinnati, Chicago & St. Louis Rail- way, will be delivered from track, and after the expiration of forty-eight (48) hours the following track-storage charges will be assessed in addition to the regular car-service charges : For first two days the charge will be $1 per car per day or fraction thereof. For the next succeeding two days the charge will be $3 per car per day or fraction thereof. For each succeeding day the charge will be $4 per car per day or fraction thereof. Sundays and legal holidays will be excepted when computing free time and storage charges. From October, 1902, until May, 1907, charges were paid by dealers detaining cars beyond the free time. In 1907 the Legislature of the state of Pennsylvania passed the following law: An act to provide the maximum car-service charges, including car-storage charges, that railroad companies and corporations, or INTERSTATE REGULATIONS 7 associations, may charge and collect on each car loading and not unloaded within the free time for unloading cars, and fixing the free time that shall be allowed for unloading cars. Section 1. Be it enacted, etc., That it shall be unlawful for any railroad company, association, or corporation to charge and collect more than one dollar per day of twenty-four hours, or fraction of a day, for car-service charges, including storage charges, on each car unloading and not unloaded within the free time for loading and unloading the same. Free time for loading or unloading all freight shall be as follows: Computing from 7 o'clock ante meridian of the day following placing of the car, and mailing of notice thereof, forty- eight hours. When a car is placed after 12 o'clock meridian of any day, the free time shall be computed from noon of the day following placing. Section 2. All acts or parts of acts inconsistent herewith are hereby repealed. It may be well to state here that track storage as referred to in this case applies to a charge made for the storage of cars on the tracks of the carriers in addition to the charge made for the use of the car itself, the theory, of course, being that the carriers are deprived of the use of the length of track required by the car as well as of the use of the car itself. As the same general principles apply in connection with the assessing of track storage as apply in the assessing of demurrage charges, it is suffi- cient to state that such charges may legally be assessed, subject to the limitation, of course, that they are reasonable. In the case just referred to, the complaint was made that the provisions of the Pennsylvania Railroad Tariff were contrary to the provisions of the act of the Pennsyl- vania Legislature which has just been quoted. The Inter- state Commerce Commission, therefore, discussed the question as to whether or not the state of Pennsylvania has authority to fix the charges which a railroad may impose for demurrage or storage in its cars when such cars have been used in an interstate movement. 8 DEMURRAGE AND CAR EFFICIENCY As the decision in this case is important in that it shows the attitud,e of the Commission in the matter of demur- rage on interstate shipments, a considerable portion of the Commission's own words is quoted herewith: Track storage charges when associated with an interstate move- ment appertain directly to.interstate commerce. They represent the carrier's compensation for services rendered in connection with the transportation. A shipment is not completed until arrival at destination and delivery to the consignee; and the authority vested in Congress by the commerce clause of the Con- stitution covers everything related to the delivery of freight transported between the states. Rhodes v. Iowa, 170 U. S., 412, 426; Bowman v. Chicago & Northwestern Ry., 125 U. S., 465; McNeill V. Southern Ry. Co., 202 U. S., 543, 559. In the ease of Interstate Commerce Commission v. Detroit, Grand Haven & Milwaukee Ry. Co., 167 U. S., 633, the Supreme Court suggested that the Commission would be acting within its powers if it should order that railway companies should regard cartage, when furnished free, as a terminal charge and include it in their schedules. If cartage charges may be regarded as a proper subject for national regulation. Federal authority over demurrage and track storage charges in connection with inter- state commerce can not be challenged. We think we may go further and hold that the Federal authority in this field is exclusive. It is well settled that in the absence of Congressional action the states may legislate with respect to matters which are strictly local in character, even though by so doing they may to some extent regulate interstate commerce; but, as said by the Supreme Court in the Port Wardens case, 12 How., 319, "whatever subjects of this power are in their nature national, or admit only of one uniform system or plan of regulation, may justly be said to be of such a nature as to require exclusive legislation by Congress." The question of terminal charges imposed in connection with interstate transportation would seem to be within the sc6pe of this principle. The subject is national in character, and uni- formity of regulation is essential. If the individual states were permitted to legislate in this field, endless confusion and dis- crimination would be the result. Such legislation would operate as a direct burden upon interstate commerce and the Supreme Court has repeatedly refused to sustain state laws which had this effect. Wabash, St. Louis & Pacific Ry. Co. v. Illinois, 118 TJ. S., 557; Rhodes v. Iowa, 170 U. S., 412; Bowman v. Chicago & Northwestern Ry. Co., 125 U. S., 465 ; McNeill v. Southern Ry. INTERSTATE REGULATIONS 9 Co., 202 U. S., 543 ; Central of Georgia By. Co. v. Murphey, 196 U. S., 194, 204. But it is unnecessary to decide that the Federal authority over this subject is exclusive, inasmuch as Congress has taken definite action and removed the subject altogether from the field of state regulation. The first section of the act to regulate commerce, after outlining the scope of the Commission's jurisdiction, defines transportation as including "all services in connection with the receipt, delivery, elevation, transfer in transit, * * * storage, and handling of property transported." Section six provides that the carrier's schedules "shall also state separately all terminal charges, storage charges, icing charges, and all other charges which the Commission may require." Beyond all possi- bility of doubt, therefore, the duty of regulating terminal charges when related to interstate transportation has been lodged with the Interstate Commerce Commission, and Federal courts have so held. United States v. Standard Oil Co., 148 Fed. Rep., 719, 722 ; Michie v. New York, New Haven & Hartford R. R. Co., 151 Fed. Rep., 694, 695. ' In the first cited of these cases Judge Landis overruled a demurrer to the indictments charging a refund of storage charges with these words : "The storage charge refund indictments are attacked by the defendant. There the allegation is that the published freight tariffs of the Lake Shore & Michigan Southern Railway Company showed that the carrier would impose a certain charge for the storage of shipments of petroleum after their arrival at Chicago ; that a quantity of oil product was shipped from "Whiting, Ind., to the Standard Oil Company at Chicago, and remained in the custody of the railway company until a substantial claim had accrued in favor of the carrier on account of such storage ; and that the debt was canceled as a concession or rebate to the Standard Oil Company in respect of the transportation of the property. The law requires the published tariff to show every- thing in the way of terminal regulations which in any way affects the cost of the service rendered by the carrier, and such published terminal charge is no less binding on the parties than is the tariff specified for the transportation." The power of Congress to act with reference to this subject is indisputable; that Congress has made provision for the regula- tion of these charges is just as clear ; and it follows necessarily that a state law which conflicts with the Federal statute must give way. Interstate Commerce Commission v. Detroit, etc., Railway Co., 167 U. S., 633, 642. Gulf, Colorado, etc., Ry. v. Hefley, 158 U. S., 98. The authority expressly conferred upon the Interstate Commerce Commission would be nugatory if the concurrent authority of the state were recognized. We accord- 10 DEMUERAGB AND CAR EFFICIENCY ingly proceed to consider the problem as an original proposition unhampered by the Pennsylvania statute.^ It having been settled that the Interstate Commerce Commission has jurisdiction over the collection of demur- rage charges, the desire for uniformity in making these charges was given a considerable impetus. Although the question of uniform demurrage rules was before the National Association of Railway Commissioners for sev- eral years, it was not until 1908 that a committee was appointed to frame a uniform code of demurrage rules. This committee consisted of Mr. Lane, of the Interstate Commerce Commission, and one representative from the railway commission of each state. The actual work of drafting a code of rules- was entrusted to a sub-committee of five. The sub-committee sought the assistance of prac- tical demurrage men in the persons of the managers of two of the leading demurrage bureaus of the country and Mr. Arthur Hale, Chairman of the Committee on Car Efficiency of the American Railway Association. After much study and after public hearings, the code adopted by the sub-committee was approved by the general com- mittee and, in turn, adopted by the National Association of Railway Commissioners at its annual session in Wash- ington, D. C, in 1909. The Interstate Commerce Commission, instead of exer- cising its authority over demurrage by prescribing demur- rage rules, approved the code adopted by the National Association of Railway Commissioners. This code is known as the "National Car Demurrage Rules" or the "Uniform Code." Upon acceptance of this code by the Interstate Commerce Commission, the American Railway Association endorsed it in 1910. Since that date, changes have been made by the American Railway Association and approved by the Interstate Commerce Commission. ' 14 I. C. C. Rep., 170-77. INTERSTATE REGULATIONS 11 The fundamental features of the code of 1909, however, still remain. Uniform Dbmueeage Eulbs The National Car Demurrage Eules, or the Uniform Code, the name by which these rules are often known, are given in Appendix A. In connection with these rules, it may be well to consider briefly, some of the reasons which have led to certain of the provisions, as an under- standing of the underlying causes will assist in intelli- gently interpreting the rules. Rule 1 In connection with the provision that cars held for or by consignors or consignees are subject to the demurrage rules, certain exceptions are made. The first exception is in the case of cars loaded with live stock. This provision should be carefully noted, as the exception applies only to cars which are loaded with live stock, not to cars which have beeii placed for loading. The reason that cars loaded with live stock are excepted from the general provisions of this rule is because of a federal statute forbidding the holding of live stock in cars in excess of thirty-six hours, this time including time in transit. As a result, cars are not held, except in extreme cases, beyond the free time. It would therefore be need- less to go to the expense of including these cars in the carriers' car accounts. The second exception is in the case of cars placed for loading coal at mines or mine sidings, or coke at coke ovens, and cars under load with coal at mines or mine sidings, or coke at coke ovens. This class of equipment has been excepted from the provisions of the uniform demurrage rules because the problem of proper distribu- tion of coal and coke cars has been such a difficult one to 12 DEMTIERAGE AND CAR EFFICIENCY solve that special rules have been provided for the han- dling of coal and coke equipment. As one of the objects of demurrage is to secure proper distribution of equip- ment, it will readily be seen that application of demur- rage charges, because ^f this special provision, would bring about a conflict with rules especially designed to meet individual situations. Section C and the note appearing with it are necessary on account of the peculiar position which private cars fill in connection with the transportation of freight. Under the introductory clause of Rule 1, private cars in storage would be excepted since, under those circum- stances, they are not held for or by consignors or consignees. In this connection, however, it must be remembered that private cars, when in railroad service, are subject to demurrage when they are standing on the private tracks of the owners. In the case of Proctor & Gamble Company v. Cincinnati, Hamilton & Dayton Rail- way Company et al., the Commission decided that the carriers were entirely within their rights in assessing such charges. The decision in substance was as follows : Complainant objects to defendants' rule as to demurrage charges in so far as it provides for demurrage on private cars while standing on private tracks, and particularly to the provi- sion that if private cars are returned under load the railroad service is not at an end until the lading is removed ; Held, That defendants are within their lawful rights in establishing and maintaining the rule complained of.* The Interstate Commerce Commission was upheld by the United States Supreme Court in 225 U. S. 282. Rules It will be noted that Rule 2 provides that forty-eight hours will be the standard of free time for loading or unloading and that twenty-four hours will be allowed for ♦ 19 I. C. C. Eep., 556. INTERSTATE REGULATIONS' 13 any other purpose for wMch. a car might be held for a shipper or consignee. Section C of this rule calls atten- tion to the fact that the carriers make special provision for freight to be moved by vessel. Vessels do not always move with regularity, particularly vessels plying between the United States and foreign countries. It is very com- mon, therefore, for the carriers to allow several days' free time at each port. In connection with the placing of cars for loading or unloading, the term "constructive placement" is often used. This term js used when it is impossible for the carriers to deliver cars at a specified point, as on a pri- vate siding. Suppose, for example, that a consignee has a private siding which will hold three cars and that the siding is filled to capacity when a fourth car is received. In this event; the carrier cannot actually deliver the car to the consignee because there is no room for it. The carrier would then notify the consignee in writing of its readiness to deliver. This is known as "constructive placement." The term "actual placement" means that the car is delivered at the exact point where the con- signee wishes it to unload. Constructive placement is, in effect, a notification by the carrier that the car is ready for delivery but cannot be delivered. Rules Eule 8 makes various provisions for cases where car- riers may not collect demurrage charges. In the past, the question of the collection of demurrage charges was often left in the hands of the representative of the car- rier, such as the station agent, who might or might not waive the collection of demurrage charges. This often produced a very unsatisfactory state of affairs, particu- larly where shippers were able to influence carriers to have the collection of demurrage charges overlooked. It 14 DEMUERAGE AND CAR EFFICIENCY is now required of carriers that demurrage charges be collected except in the specific cases mentioned in Eule 8. If exceptions arise beyond the specific exceptions men- tioned in this rule, it is the carrier's duty to collect demurrage charges and refer the matter to the Interstate Commerce Commission if circumstances seem to warrant it. Rule 9 Shippers who are receiving and forwarding a consider- able number of cars often find the average agreement specified in Eule 9 of considerable advantage. In this connection, it should be known that the agree- ment form is to be signed by the shipper. It should also be noted that credits and debits are computed at the end of each month and that no credits or debits will be con- sidered in the following month. It should also be noted that shippers working under the average agreement can- not claim the exemptions shown in Section A, paragraphs 1 and 3, or Section B of Eule 8. There has been a very decided opinion among many railroad men that the average agreement does not pro- mote car efficiency. Table 1 contains a digest of facts developed by inquiries sent to the various demurrage bureaus throughout the country. It may safely be said that the results of the average agreement have not tended to show that this agreement has made for increased car efficiency. It will be noted that the Pacific Car Demurrage Bureau is one of the bureaus which has never adopted the aver- age agreement. Mr. Mote, the manager of this bureau, contends that the most effective way of increasing car efficiency is by higher demurrage and he charges that the results obtained in his territory would seem to warrant this stand. INTERSTATE REGULATIONS TABLE 1 15 A Digest of Facts Developed by Inquiries Sent to the Various Demurrage Bureaus Please furnish statement showing detention and demurrage under the average rule and the amount of de- nlnrrage which would have accrued with the same detention under "straight rules." Is the average detention to cars greater or less thin under 'the "straight rules"? Is there a disposition on the part of ^gners of the average agreements to be active in ttie piling op of credits during a part of the month to offset by "loafing" in another part of the same month? Is advantage taken of the privilege of the average agreement by Commission . Mer- chants or Brokers in goods sold after ar- rival. at destination? Are sixers of the average agreement confined to those shipping or receiving cer- tain commodities, or to those engaged in any particular line of business? Are signers of the average agreements generally confined to those handling 3 large number of cars? Percentage of the total number of cars reported covered fay average agreements. Number of average agreements in effect. 8SSSSSS « 1^ O* rt « 5^ CM *H iH ^ m u) «o 0» «Of*J «*>« 4»0 N O* 00 * M C4 m . ^4^04- 00^—^4.-^ ^ (4 i! H ^ £ £££££« ££„£ 00 a s-r^ o o"" 0^0 So S3 o 00 I I V o o.SoKooSK o 5.2 o goo i 0^000000 oo^o'Soooou •cs»zaaaaaa|S»z;z!sg;S a iiiu^^iiiim^i n a 3 00»O*O»9S*O^O^»O< ■-to-' «o« tS :S a !^f 3 s i ■ :i gM isi s 3 a " 5saS-« 3 n = I 16 DEMURRAGE AND CAR EFFICIENCY Quotations from the opinions of a few demurrage bureaus will show something of the feeling on this subject as shown by the reports. East Tennessee Demurrage and Storage Bureau : Our observation and experience is that Rule 9 decreases car efficiency, and has in its favor that portion of the rule eliminating bunching and weather allowances. Illinois and Iowa Demurrage Bureau : In our judgment, the average agreement plan makes for ear inefficiency, for it encourages and permits patrons to excessively hold cars over time simply because they unloaded other cars promptly and in a less time than the limit fixed by demurrage rules, which cars very probably would have been unloaded with equal facility even had patron not been working under the average agreement. / Virginia and West Virginia Demurrage Bureau: From my observation and experience with the average agree- ment, there are no points in favor of the plan from a car- efficiency standpoint; on the contrary, the plan makes directly against car efficiency in that it allows time in excess of the general average time consumed in loading and unloading cars. In my judgment, no tariff should be made in such way as to provide that a charge for demurrage on one car shall be dependent upon the handling of some other car. Wisconsin Demurrage Bureau: Our observation is, and experience has been, that the average agreement benefits mostly those firms whose outbound business exceeds their inbound. That to this extent, therefore, it makes for car inefficiency. Practical demonstrations have already been given to the National Association of Railway Commissioners and that the rule is decidedly obnoxious from a car-efficiency stand- point. Any rule that will shrink the penalty for ear detention correspondingly fails in the effect to be derived. In theory, of course, the average agreement provides a premium upon the prompt unloading of cars, which should bring about the release of equipment in the short- INTERSTATE REGULATIONS 17 est possible time. By the manipulation which is possible under this agreement, however, car efficiency may easily be defeated by those who desire to do so. Particularly is this true in many lines of business where certain cars can be handled promptly or where the necessi- ties of the business compel that they be handled promptly, while it is often advantageous to hold other cars to the limit of time, this being made possible by the credits accruing on cars handled promptly. A study of the uniform demurrage rules will develop the fact that, after all, they are calculated to do justice to both shipper and carrier, a definite provision being made to take care of such situations as arise in connection with the handling of cars. Exceptions to the TJnifoem Code The brief digest just given will show the application of the demurrage rules which apply on interstate business throughout almost the entire United States and on intra- state business within a number of the states. Exceptions are made here and there and it should be understood that there is not absolute uniformity in every particular in all sections of the country. It will be well to glance briefly at some of the principal exceptions. It will be seen that these exceptions are largely of a minor nature and do not materially injure the uniform character of the rules. In some localities, track storage, the meaning of which has already been explained, is assessed in addition to demurrage charges. Members of the Intermountain Demurrage Bureau, operating in Utah, Nevada, and Idaho, provide an exception on empties placed for loading live stock and allow ninety-six hours for unloading ore and concentrates without weather allowance. Seventy- two hours are allowed at Butte and East Helena for unloading interstate shipments of ore, concentrates, and certain other commodities. 18 DEMURRAGE AND CAR EFFICIENCY The Nortliern Demurrage Bureau has special provi- sions relative to the inspection of grain and hay. The Pacific Car Demurrage Bureau, with thirty-one lines, operating in California, Arizona, and New Mexico, exempts private cars on private tracks when the cars are used for the transportation of commodities which the owners of the cars produce or in which they deal. It allows only twenty-four hours for the unloading of tank cars. This provision well shows the result of a care- ful study in bringing about a supply of cars where a deficiency previously existed. Mr. E. E. Mote, Manager of the Pacific Car Demurrage Bureau, in a report issued in 1912, makes the following statement relative to the unloading of tank cars: The carriers finding it difficult to meet the demands for tank cars by shippers from the oil fields because of delay in unloading by consignees and finding further that oil used by themselves for fuel purposes was being removed from cars in from 2 to 4 hours, reduced the time on tanks from 48 hours to 24 hours on April 1, 1908. It should be noted that Arizona and California provide for the collection of three dollars a day on all traffic and that the same amount is collected on tank cars in New Mexico. In some sections of the country, variations as to the application of credits under the average agreement are made. In some cases, seven credits are allowed instead of the five provided for in the Uniform Code. In some sections, the average agreement applies according to the classes of cars, box and refrigerator cars being included in the first class and all other cars in the second class. Where provisions of this kind are made, credits accruing on cars of one class would not be applied on cars of the other class. The fact that there is no standard system of grading grain makes it necessary for a special provision to be INTERSTATE REGULATIONS 19 made for the allowance of additional time for tlie inspec- tion and grading at various points. Instances are on record where grain has moved through fifteen different markets, in each of which it was subject to official inspec- tion before it was finally unloaded. The various exceptions to the Uniform Code which have been noted have as their principal aim the adaptation of a code which is as a whole entirely satisfactory, so that individual conditions in various sections of the country will be satisfactorily taken care of. Bearing in mind that demurrage has as its main object the prompt release of equipment, the carriers show their good judgment in pro- viding for an elasticity that will work for the best inter- ests of all, for certainly the proper supply of proper equipment is a matter of highest importance to shippers, carriers, and the public in general. CHAPTER II intrastate regulations In Genebal Demurrage charges on intrastate business are regu- lated in some cases by statutes passed by the legislatures and in other cases the regulation of demurrage is in the hands of commissions, such as public service commissions, public utilities commissions, etc. Many of the regulations are carelessly drawn and their provisions are often not entirely clear. In numerous cases the regulation of demurrage represents abuses or imagined abuses to which shippers have been subjected by the carriers, as is shown by the fact that in some states there are provisions included in demurrage regulations which, as a matter of fact, have nothing to do with demurrage. Among such demurrage provisions are reciprocal demurrage, which will be explained a little further on; storage regulations for less-than-carload shipments ; pro- visions limiting time of shipments in transit ; methods of ordering cars; penalties for failure to receive cars promptly from a connecting line ; provisions giving pref- erence in movement to shipments of live stock and perish- able commodities; provisions making permissible a charge for the empty haul of a car ordered and not used; provisions prescribing method of notice of arrival for "shippers' order" shipments; provisions requiring car- riers to notify consignor of refusal of shipment by con- signee and making consignor liable for storage and demurrage charges after such refusal ; provisions stating that cars will not be placed or forwarded for shippers in 20 INTRASTATE REGULATIONS 21 arrears of payment of demurrage; provisions requiring carriers to furnish grain doors, etc. As is the case in legislation which is drawn in the heat of controversy, these statutes are often far from being scientific or bringing about the desired results. As has been the case in connection with demurrage in general, reciprocal-demurrage provisions have been made to cover a multitude of other matters, such as delay in accepting shipments and issuing bills of lading; failure to move shipments at a prescribed speed, etc. Normal Free Time Two very important, features of any demurrage code are the time allowed for loading and unloading and the charge made for the detention of cars beyond free time. Three states which regulate intrastate demurrage have charges higher than one dollar. In Oregon the charge is two dollars and in California and Arizona it is three dol- lars. In Montana it is two dollars after the first five days following the expiration of free time. In connec- tion with this latter state, it should be noted that additional penalty applies after cars have been held an abnormally long time.^ All but four states provide a normal free time of forty- eight hours. Florida allows seventy-two hours, Nebraska thirty-six hours on cars of certain capacity, New Jersey three days, and Vermont four days. AnDiTioNAii Time for Unloading We find, in a great many states, that more than forty- eight hours are allowed for unloading on specified com- modities or for other reasons a,pplying in the individual ' In referring to the various speeiflc provisions, it should be under- stood that they are subject to change. Reference should always be made to current tariffs. 22 DEMURRAGE AND CAR EFFICIENCY case. In this coimection, we quote from Bulletin 191, issued by the United States Department of Agriculture : In the matter of unloading, Alabama and Arkansas allow 72 hours on 13 specified commodities. Florida aljows 96 hours on 9 commodities. Georgia allows 60 hours on coal. Michigan allows from 3 to 15 days on various commodities. Seventy-two hours are allowed on 5 commodities in Minnesota, on 10 in Mon- tana, on 19 in South Carolina, on 2 in Texas, and on 14 in Virginia. The agricultural products allowed additional time for unload- ing in Alabama, Arkansas, and Virginia are fertilizers and hay and the following commodities in bulk: cottonseed, cottonseed hulls, grain and potatoes. Alabama includes cottonseed meal also. The farmer derives an immediate benefit from the additional time allowed on fertilizers, and cottonseed products. Additional time on the other commodities give him a direct advantage only as he occasionally has to purchase them. • An indirect and remote advantage accrues when he is selling on commission such of them as grain, hay, or potatoes. The agricultural products on which additional time is allowed in Florida are cabbage, cottonseed, cottonseed hulls, fertilizer material, potatoes, and seed cotton. Minnesota grants additional time on fruit and vegetables. South Carolina provides more liberally for agriculture by granting additional time on bran, cottonseed, cottonseed hulls, cottonseed meal, fertilizers, fertilizer material, grain, hay, meal, mill feed, bulk apples, and bulk potatoes. Additional time is allowed in some States to consignees located a certain distance from the station. In Alabama from 4 to 6 days are allowed for distances of 3 miles or more. In Arkansas a maximum of 5 days is allowed for 5 miles and over. Missis- sippi allows 5 days for distances of from 3 to 10 miles and 7 days for distances over 10 miles. Oklahoma allows 72 hours for dis- tances greater than 5 miles. South Carolina allows more time for distances greater than 4 miles. Texas allows 96 hours for distances greater than 5 miles. Other provisions found in state -codes are described as f ollov?s in the bulletin just referred to : Colorado, Kansas, Mississippi, Missouri, and Texas allow 72 hours for unloading cars loaded in excess of 30 tons. Nebraska allows 60 hours for the same tonnage and Oklahoma makes it 72 hours for cars containing more than 66,000 pounds. When a consignee receives in 1 day more than 3 cars of freight taking track delivery, Florida allows 96 hours free time on each INTRASTATE REGULATIONS 23 car in excess of 3, Georgia 78 hours, and South Carolina 72 hours. This is merely a variation of the provision in the national code in regard to bunching in transit. "When notice is given by mail, Arkansas allows 48 hours addi- tional free time. Alabama, Florida, Georgia, Minnesota, South Carolina, and South Dakota each allow 24 hours additional free time under the same circumstances. Miscellaneous Features op State Codes A study of the various state codes develops an almost unlimited number of specific provisions applying in dif- ferent states. Some of these, as already suggested, have nothing whatever to do with demurrage, but rather reflect a desire to remedy some condition which seemed to require altering. Certain states provide that demurrage is not to be col- lected on private cars on private tracks. This makes possible the very evil of discrimination which the inter- state law is designed to remove. Arizona and California penalize the carrier for failure to move cars received from a connecting line within twenty-four hours, no penalty, however, being provided for the originating carrier which does not move the car in the same time when received from the consignor. One statute forbids the soliciting or giving of tips for placing cars or for switching. The Colorado statute makes the capacity of the car, rather than its contents, the deter- mining feature. The New Jersey statute is notable for its brevity. It merely provides a penalty of one dollar a day after three days of free time for unloading. No penalty is provided for detention of cars for loading and other pro- visions of most demurrage codes are absent. These provisions will serve to show the wide range of subjects covered in the various states. The study of the various statutes would develop many other provisions equally distant from the regulation of demurrage. The 24 DEMURRAGE AND CAR EFFICIENCY instances cited, however, will demonstrate the necessity of a careful study of demurrage provisions in any speci- fied section of the country. The effect of state regulations upon demurrage charges will naturally depend somewhat upon the size of the state, the number of the inhabitants, and the nature of the traffic handled. In small states the effect of state regula- tions is insignificant, while in states like California and Texas intrastate regulations are of considerable impor- tance, particularly where the goods produced in the state are consumed in that state. CHAPTEE III reciprocaii demurrage and per diem Eecipbocal Demubeage (a) Definition Reciprocal demurrage is in reality not demurrage at all but a penalty provided for failure to furnish cars. It is based upon tbe idea that as the shipper or consignee has to pay a penalty for failure to load or unload cars promptly, the carrier, therefore, should be penalized for failure to furnish the cars ordered. The car shortage of 1906 emphasized this kind of argument with the result that a considerable number of reciprocal-demurrage laws followed. Reciprocal demurrage is in effect on intrastate traffic only. The states providing for it by statute are Alabama, Arizona, Arkansas, California, Colorado, Florida, Geor- gia, Kansas, Minnesota, Mississippi, Missouri, Nebraska, North Dakota, Oklahoma, Oregon, South Carolina, South Dakota, Texas, Washington, and Wisconsin. (b) Time Allowed for Furnishing Cars The various states have widely varying provisions aa to the time in which cars must be furnished under recip- rocal-demurrage rule. Alabama allows from two to ten days, varying with the number of cars ordered. Arizona and California allow from forty-eight hours up, according to the number of cars ordered. Arkansas allows six days. Colorado and Mississippi allow five days. Florida allows two days for fruits and vegetables and four days for 25 26 DEMUERAGB AND OAR EFFICIENCY other commodities. Georgia, Missouri, and Virginia allow four days. Kansas allows from three to ten days, according to the number of cars ordered. Minnesota allows forty-eight hours for terminal points and seventy- two hours for intermediate points. North Dakota allows seventy-two hours. Oklahoma allows from forty-eight to a hundred and forty-four hours, varying with the number. Oregon allows from five to twenty days. South Carolina provides three days for perishable commodities and four days for other shipments. South Dakota allows from three to six days, and Texas from three to eight days, depending upon the number of cars ordered. Washington allows from three to ten days, depending upon the num- ber of cars ordered, the place where they are wanted, and whether or not the road has daily service with that point ; shorter time is given for live stock than for perishable freight. (c) Penalty for Failure to Furnish Cars The penalty provided for failure to furnish cars is gen- erally one dollar. The following states require other than a rate of one dollar : Texas, fifty cents ; Florida, North Dakota, and Oregon, two dollars; Arizona and Cali- fornia, three dollars ; Arkansas and Kansas, five dollars. While reciprocal demurrage has probably been bene- ficial in many respects, it must be taken into consideration that such provisions often open the way to discrimination. The opportunity, for example, of paying rebates through failure to furnish cars on fictitious orders is quite appar- ent. Again, by collusion between carriers and shippers, cars may be set out en route and not turned over to the consignees until they are in a position to receive the cars. The Interstate Commerce Commission has never consid- ered that it has any authority to penalize carriers by reciprocal demurrage, should it desire to do so. RECIPKOCAL DEMURRAGE 27 Pek Diem So far we have dealt with questions relating to the penalizing of shippers and consignees by the carriers in cases where cars are not loaded or unloaded within a specified time. In this connection, it will be well to con- sider very briefly the question of charges assessed by carriers owning cars when those cars are on the lines of other carriers. Per-diem charges, as they are called, are unlike demurrage charges, as they are not a penalty to insure the prompt return of cars to their owner, but rather a rate of exchange between the owners of the cars. There have been several different per-diem charges provided at various times. The original charge was 20 cents per day. In 1905 the per-diem charge was raised to 25 cents, while the penalty, or extra per diem, payable after cars had been held thirty days, was reduced to 75 cents. In the summer of 1906 this charge proved entirely insufficient to secure the return of cars to their owners ; so a new agreement providing for a 50-cent charge was signed by the majority of the roads. With the increase of the per-diem charge the special penalty was abolished, because it had proved unsatisfactory in certain respects. In 1908 the rate was again reduced to 25 cents, because the car-shortage problem no longer existed. Some of the New England roads which were receiving more loaded cars than they returned, served notice of their withdrawal from the per-diem agreement. In 1910 a rate varying from 30 to 35 cents a day in different seasons of the year was adopted. The sliding scale was to enable the carriers to make adjustments according to the varying demand for cars. Effective January 1, 1913, the per- diem rate was raised to 45 cents per day uniformly. It will easily be appreciated that even with per-diem charges at the highest mark, barely more than the interest on the capital invested in the car is returned, while a car 28 DEMURRAGE AND CAR EFFICIENCY in service will earn several dollars a day, particularly in the busy seasons of the year. The amount of per-diem charges is small as compared with the value of the cars to carriers in need of the equipment. Carriers needing equipment only at certain seasons of the year, or roads having little equipment, can well afford to pay per-diem charges. While the per-diem arrangement practically results in putting all the equipment of the country at the disposal of the carriers, whether they own few or many cars, the penalty is often very effective with roads receiving small revenue. Suppose that a road receives six or seven dol- lars a car as its share and has to pay per diem at the rate of 45 cents a day for four days; the net revenue is reduced to a very small amount to cover all other expenses. In place of per diem, the charge based upon the mileage which a car travels is often assessed. Particularly is this ti*ue of private cars, such as refrigerator cars, used in the transportation of meat. The fact that the carrier will have to pay in proportion to the distance which a car travels will often result in the prompt return of the ear to the owners, whereas if the car could be used upon the basis of a daily compensation, the amount would be so small that it would be a good investment for a carrier in special need of the equipment. The handling of per-diem matters is taken care of by a code of per-diem rules, which includes an agreement by the railways that are parties to the code, governing the- settlement for the use of foreign cars. A reasonable time is required when a carrier wishes to withdraw. The establishment of per-diem charges has unques- tionably been very effective in bringing about greater car efficiency, for while the charge for a single day for a single car is small, it can easily be appreciated that a large line, particularly one which is a receiver of freight EECIPROCAL DEMURRAGE 29 and not an originator, would be under very heavy expense, especially at certain times of the year. Demukbagb Bubeatjs At one time there were a great many bureaus main- tained by the carriers for the regulation of demurrage, but the number has constantly grown less for various reasons, until now there are twenty in existence, as shown in Appendix B. In some cases the tariffs are published by these bureaus, but in most instances their work is entirely in administering the provisions of published tariffs. In addition to the various demurrage bureaus main- tained by the carriers, the New England Demurrage Com- mission, with headquarters at Boston, established in 1910 by the Interstate Commerce Commission, has supervision of demurrage practices in New England. All the lines in New England are members of it and the provisions of the various tariffs of the carriers which are members of the commission are administered by a demurrage commis- sioner. This commissioner was designated by the Inter- state Commerce Commission and appointed by the railroads to arbitrate all doubtful or disputed cases growing out of the application of the demurrage rules which the shippers or the railroads desire to refer to him. CHAPTEE IV RELATION OF DEMURRAGE TO CAR EFFICIENCY It is not tlie purpose of this treatise to deal with the question of car efficiency at great length. The subject is one of ever-increasing importance to carriers and ship- pers alike. The carrier, as a servant of the public, is expected to furnish the necessary equipment for the transportation of freight that is offered. If such equip- ment is not forthcoming, the carrier not only fails in its duty to the public, but very often loses much revenue. On the other hand, the ability to secure equipment at the right time may spell the difference between success and failure in business. The question of car efficiency, then, is not, as it was once considered, a problem for the car- riers only. The carriers and the public must work together to secure a maximum amount of transportation from the equipment OAvned by the carriers. The Interstate Commerce Commission, in the Five Per Cent case, spoke as follows: We suggest a careful review of methods for increasing freight-car efficiency. In certain departments of railroading great advances have been made in efficiency in recent years; for instance, by increasing the train loading. On the other hand, the cost, of the freight car as an element in the cost of transporting goods seems to have grown greater instead of less. The capital cost of equipment has increased more rapidly with recent years than the capital cost of the road. The ratio of the maintenance of equipment expense to gross revenue has grown largely, but it is not unreasonable to expect that such added costs can be over- come, as they have been in some other departments of railroading and in many other industries, by advances in management and 30 DEMURRAGE AND CAR EFFICIENCY 31 methods. It is, however, in the use and operation of cars that we must look for the most substantial economies. Mr; Daly, general superintendent of transportation on the Illinois Central, found that, even in the busy season, a freight car was moving in trains on that road only 3V^ days out of every 30. Taking the average of all roads in official classification territory for the whole year, the time a car is moving in trains probably does not exceed 3 days out of 30, and the ear is under load only 2 out of those 3 days. Furthermore, the cars under load are loaded on an average to only about 58 per cent of their capacity. The percentages of empty movement and of waste capacity in loaded ears have both grown, as appears by Table 2. TABLE 2 Empty Movement and Waste Capacity of Freight Cars Average capacity per freight ear. . Average freight car load: Per loaded car Per loaded car, including return movement and caboose mileage Total number of cars per freight train Total number of loaded cars per freight train Total number of empty cars per freight train 1903 1912 Increase Tons Tons Tons Pee Cent 30.9 39.5 8.6 28.2 19 22.8 3.8 19.6 13 15 2 15.4 Caes Cars Cars 30.3 34 3.7 12.1 20.7 22.4 1.7 8.2 9.6 11.6 2 20.8 As pointed out by Mr. Daly, the economies which may be effected by greater car efficiency have only begun to be realized. The possibility of reducing the empty car movement should be examined. ' It is believed that by more careful management and through reasonable changes in regulations and practices car- loadings can be increased, and that both shippers' and carriers' detention of cars can be materially reduced. At the same time, the congestion at terminals, which is in large part both the cause and the result of such detention, can be greatly lessened. The greatest cause of car detention is pierhaps the lack of regularity in the movement of freight. Much advance can undoubtedly be made in the way of developing freight train schedules, both in the terminals and between the stations.^ '31 I. C. C. Rep., 411. 32 DEMURRAGE AND CAR EFFICIENCY There are several significant statements made by the Commission, particularly the suggestion that a car is probably under load only two days out of thirty. In the bulletin of the United States Department of Agriculture, to which reference has already been made, the author has the following to say : Under the totally inadequate demurrage charge prevailing throughout the greater part of the country there have grown up indefensible practices, altogether wrong in principle. This is especially true in the case of the coal brokers, grain dealers, com- mission men generally, and big manufacturing plants. In .periods of acute car shortage and congested terminals there is an almost universal demand that carriers be compelled to increase their car supply, enlarge their terminal yards, and provide increased switching facilities, when it has never been shown that they are not already adequately equipped in these "respects if ears were used for transportation solely and not used for storage warehouses. Increased expenditures for additional ears, more switch engines, and bigger yards mean increased interest charges which the commerce of the country must bear.^ It should not, of course, be understood that the shippers alone are responsible for many of the practices which have brought about a more or less unsatisfactory condi- tion relative to car supply. The railroads, particularly in the past, have encouraged various practices which have tended to decrease materially car eflSciency. Before the present state of efficiency in the assessing of freight charges, practices were often very loose and penalties very small ; so the man who wished to do busines§ without proper capital and storage facilities could utilize railroad equipment without being mdlested. In addition to failing to discourage shippers from making use of their equip- ment in unreasonable ways, there are many cases wherein the carriers did not utilize their cars to the best advan- tage by determining in advance where they would be •Bulletin 191. DEMURRAGE AND CAR EFFICIENCY 33 needed in loading their less-than-carload freight, in han- dling heavy traffic, etc. Shippers and carriers are co-operating in various ways to bring about a maximum use of equipment, particu- larly in times of car shortage. It is a well-known fact that in the past cars have often moved with inadequate loads. . Voluntary actions on the part of the carriers in increasing the minimum carloads where such minimums might be increased without doing injury to the shipper, and the fact that shippers now often suggest to their cus- tomers that they place a larger order of stable commodi- ties, have resulted in heavier loading of equipment. As the high demurrage rate has been given a very thor- ough trial in the territory governed by the Pacific Car Demurrage Bureau, a study of some of the results obtained in this territory will be of value. In a circular issued in February, 1914, Mr. Mote, Manager of this bureau, makes comparison between the results obtained in the territory governed by his bureau and the territory governed by the Intermountain Demurrage Bureau, which territories adjoin each other : The demurrage rate in Intermountain Territory is $1.00 per day and the free time allowance for loading or unloading is 48 hours with a 24 hours allowance for stops in transit, the excep- tions to these being 96 hours for unloading ores and concentrates and 48 hours on the same commodities when held in transit for sampling. Cars held for the loading of Live Stock are free from demurrage however long the delay. The rate in California is $3.00 per day and the free time allow- ance for loading or unloading is 48 hours, except that 24 hours is allowed on tank cars of which more are used in California than any other State, our oil production in 1913 having been 98,000,000 barrels or the equivalent in capacity of 58800 tank ears of 10,000 gallons each. 24 hours is allowed for stops in transit and cars held in excess of 48 hours for loading Live Stock are subject to demurrage, the same as other commodities. 34 DEMUREAGB AND CAR EFFICIENCY TABLE 3 Pacific Cab Demurrage Bureau — California Road Cars Repobted Cabs Held Ovebtime 359475 76949 886872 32153 1341 Number Peb Cent A. T. & S. F 8458 2435 21894 1121 7 02.35 Salt Lake 03.16 Southern Pacific 02.47 Western Pacific 03.49 Tonopah & Tidewater 00.52 Total 1356790 1517598 33915 35937 02.50 Total All Roads 02.37 TABLE 4 Intermountain Demurrage Bureau — California Road Cabs Reported Cabs Held Overtime 77 46165 14838 1442 18 Numbeb Pee Cent A. T. & S. F 28 5050 2318 158 4 36.36 Salt Lake 10.94 Southern Pacific 15.96 Western Pacific 10.96 Tonopah &, Tidewater 22.22 Total 62540 321650 7558 41387 12.09 Total All Roads 12.87 Table 5 is another interesting exhibit shown by Mr. Mote in one of his reports. One paragraph in connection with this comparison will explain the situation : Had the six-dollar rate been applied on all cars in both periods, the number held overtime would have been 42,895 instead of 111,141 ; the charges, $455,974 instead of $611,- 562 ; and the car days, 93,088 instead of 275,206, a saving in cars of 68,246, in charges of $155,588, and in car days of 182,118. The saving for a month would have been 3,102 in cars, $7,527 in charges, and 8,278 in car days. In connection with the State Eeciprocal Demurrage Eegulations, the Eailroad Commission of the state of California held two hearings. In connection with these hearings, Mr. Mote made investigation as to the causes TABLE 5 COMPARISON OF RESULTS IN CALIFORNIA AT DIFFERENT DEMURRAGE RATES Note : — 1st Period of 22 Months, July 1, 1909 to April 30, 1911 — State Rate $6.00, Interstate Rate $1.00. 2nd Period 22 Months, May 1. 1911 to February 29', 19l3-^State Rate $3.00, Interstate Rate $1.00 to January 6, 1913, and $3.00^thereafter. CARS REPORTED CARS HELD OVERTIME . — w B AMOUNT CHARGED Kg •-2 ■^ I/I PER CENT CARS REPORTED 1«_ PER CENT CARS HELD OVERTIME D 7^ 3 E- ?i CK ZU AVEfUGE DELAY IN EXCESS OF FREE TIME .^ (A DAYS HELD OVERTIME 5 1/1 Sir Z H o i- San Franciico.Oakland, Los Aneeles and Sncramenlo litPerioil 2nd Period. „ lacrease.... '.....' 1/ / Decrease.. All Stations in California Outside Those Above Named lit Period ..:. • Znd Period,... lacrease , 5SS471 5580ii8 89557 or05.59% 188538 -21(1097 a 1559 or 11.43% Decrease. ».. 1334008 1636881 31S8T5 or 83.59% 249937 294.364 44427 or 17.78% All California Stations In* eluding Those Above Named 1st Period... „ 2nd Period... Increase '; Decree*«.....y> 1S5«47T 3104309 341^3^ 43S475 504461 65936 717000 768125 5111G or.07.13% 1573943 1930645 356703 or28.66% or 18.45% or 15.05% 8^90959 8698770 407818 or 17.76% */ 7933 54 IS 74MS or 94.35% 1 170.'. 3373-.4 18027 V 163(i:5 17556 1191 or 07.87% 8531 9901 1370 tU89S 32974 8676 or 35.71" 30236 33633 13397 or 103.75% or 1 6.06%, or 66.80% I96.'t8 39150 19513 84896 87457 3561 or 99.36%, or 10.29% I I 44534 66607 8;073 or 49.56% :':4^47 84417 9670 or 13.94% 134003 159385 86383 on 8.94% / 43938 55167 11245 or 85.60% 87793 32i.':o 4388 Or 1S.6I 118R69 139584 20!) IS or 17.63% 161794 191518 3»7k!l orl8.37f« 808749 843302 35063 orX6'.79% 71714 87897 15583 3.70 78.65 36.30 01.50 0S.6S 37.35 08.76 08.35 84.12 15.88 00.88 03.41 ^4.75 15.36 01.45 03.36 or 81,73% or 1 8.05% 880463 80.86,19.14 331099 8)..34j 18.66 506.'i6 01.06 01.77 03.39 04.39 01.29 01.74 9668 11117 1463 on 5.16% 16386 15193 05.68 01.94 06.44 03.47 124 or 00.81% 24978 86309 1331 or 06.33% 6481 6354 or 16.93% 14687 8301 or 18.67% 103308 12.V,!76 81974 or31.37% . 136219 151881 16003 on 1.01% 17807 30981 3174 or 17.8! BSO.'iSl 876497 36976 or 15.44% 1.57 1.83 3.68 3,14 1.91 8.84 3.86 3.35 1.76 3.08 3.88 3.18 18503 28il5 15713 823561 6.<:i60 30804 43858 65126 11268 87811 38178 436' 56360 S3341 86981 50167 85338 35171 .'14868 8I376 46617 71669 87304 16635 106527 16S679 68162 DEMURRAGE AND CAR EFFICIENCY 35 of car detention and found, among other things, that wholesale abuses developed in connection with the han- dling of equipment on account of stops in transit, diver- sions, and reconsigmnent privileges. Mr. Mote speaks as follows in connection with this matter : Acknowledging the benefits and the necessity of the allowance of these privileges within moderation, the facts are that as to practically all classes of transcontinental freight, as well as grain and perishable of local character, there is absolutely no limit to the number of stops in transit, diversion or reconsignment privi- leges that the shipper or consignee may demand entirely free of cost to themselves, not only for the extra time and work and lost motion to trains involved in setting out and picking up cars, but the clerical work and use of railroad wires necessary to their stop- page and later forwarding. If the party ordering the stop, diversion or reconsignment is located elsewhere than at the point of stoppage, he demands advice of arrival at such point and also that he shall have, free of demurrage, 24 hours time computed from the first 7 a. m. after receipt of such advice, and demurrage rules generally allow this. In connection with this statement, Tables 6 and 7 may well be given careful study. TABLE 6 Statement Showing Abuse op Free Diversion Privileges and What the Cost Would be Had Messages Been Sent by Western Union Instead op Railroad Wires Road or Car Line No. of Cars Diverted No. of Times Diverted No. of Diver- sion Mes- sages Sent Cost at Western Union Rates Average Cost per Carat W. U. Rates Average No. of Mes- sages per Car Average No. of Diver- sions per Car P. F. E Southern Pac. . A. T. & s. r.>.. Salt Lake Western Pac. . . 17 24 100 31 21 193 43 68 245 P5 30 451 161 230 170 220 181 962 $213.71 199.58 152.36 174.18 218.16 $12.57 8.32 1.52 5.62 10.39 9.47 9.58 1.70 7.10 8.62 5.00 2.53 2.83 2.45 2.10 1.43 Total $957.97 $ 4.96 2.34 1 Average is low because one message diverts more than one car. Table 7 is a recapitulation of diversions by the four roads and one car line mentioned, during the year 1913. These cover diversion orders filed with offices in 36 DEMURRAGE AND CAR EFFICIENCY California alone, as we are unable at this time to secure information of the same character filed with offices in other states. TABLE 7 Diversions and Reconsignmbnts — 1913 Road or Car Line No. of Cars Diverted Free Diver- sions Paid Diver- sions at $2.00 Remarks Southern Pac . . P. F. E Santa Fe Salt Lake Western Pac . . . 20640 20475 18140 3457 1966 19488 20475 17624 3003 1366 1152 None 516 454 600' 2722 2059 cars diverted 2 to 5 times 26714 wires sent Total 64678 61956 'Estimated on basis of cars diverted in November, 1913, as follows: Coal 39 Lumber 6 Bones 2 Canned goods '. . 4 Total 51 A comparison of the results in Arizona under a three- dollar rate with those under a one-dollar rate are explained by Mr. Mote as follows : Comparisons of results at a $3.00 rate in Arizona for the 6 months, ending with July of the present year, with a correspond- ing period of 1913, when a $1.00 rate applied on Interstate traffic and the same rate on State traffic for three months, or half of the period, show an increase in cars reported of 20,882, or 26 per cent ; a decrease in ears held overtime of 2,698, or 57 per cent; a decrease in demurrage charges of $4,418.00, or about 25 per cent. The percentage of State cars held overtime fell from 03.17 to 00.92; on Interstate cars from 09.80 to 04.04, and on all traffic from 05.87 to 01.99. These results are only typical of our experience under different rates in California and emphasize the historical fact that the higher rates have not only brought about the prompt release of cars, but have at the same time greatly reduced the payment of demurrage by shippers. Had the $1.00 rate in Arizona been retained with the same result, the number of ears held overtime during the six months in 1914 would have been 5,941 instead of 2,016 and the demur- DEMURRAGE AND CAR EPPICIBNCY 37> rage would have been $22,265.00 instead of $13,345.00, or 22 cents per car reported instead of 13 cents, a saving of 9 cents per car. As a final excerpt from the results reported by Mr. Mote, we quote as follows : Observing from reports coming to this office from San Fran- cisco and Los Angeles Agencies that carload freight handled by the principal draying concerns was rarely held in excess of the free time, we made inquiries of some fifteen of these concerns as to the number of cars handled by each and the amount of demur- rage accruing for the year extending from November 1st, 1913, to October 31st, 1914. As a result we find; that on 14,332 cars but $48.00 demurrage accrued. As our demurrage rate is $3.00, and assuming that each charge at that sum represents a different car and a single day's delay in excess of the free time allowance, we find that, approximately, but one car in nine hundred, or the equivalent of about eleven one-hundredths of one per cent, were held overtime and that the entire overtime was sixteen days, no allowances being asked for, or made on account of inclement weather, although the rainfall was twice as much as in normal years. Considering that practically all these cars were handled on the public delivery tracks of the carriers and that the freight was hauled to or from the cars, the showing is most remarkable in proving that with active and systematic conduct of work by con- cerns properly equipped there is no real necessity in holding a single car long enough to incur demurrage. On a total of 8,903 cars handled by Ten of these Fifteen dray- age companies not a single dollar of demurrage accrued, and the cause of demurrage on the Sixteen cars held overtime is explained in the language of one of these concerns : "The only demurrage we have paid during this period has been on such cars upon which it accrued before they were turned over to us for handling. We always make it a special point of unload- ing cars within the free time allowed, even where it is necessary at times to exercise special energy to do so, fob the reason that THE $3.00 PER DAY DEMURRAGE CHARGE IS A CONSIDERABLE TAX AND A DEFINITE INCENTIVE." 38 DEMURRAGE AND CAR EFFICIENCY TEST QUESTIONS These questions are for the student to use in testing his knowledge of the assignment. The answers are not to be sent to the University. } 1. What is meant by the term "demurrage"? ^2. What is the object of demurrage charges ? 3. What section of the Act gives the Interstate Commerce Commission authority relative to demurrage charges? 4. What is meant by the term ' ' constructive placement ' ' ? 5. What is meant by the average agreement ? Do you think that the average agreement tends to increase car efl8.ciency? 6. Mention five exceptions to the, Uniform Code applying on interstate business. 7. What are some of the provisions incorporated in demur- rage regulations on intrastate shipments? 8. What is meant by reciprocal demurrage? ^ 9. How does per diem differ from demurrage ? 10. What does the United States Department of Agriculture have to say as to the inadequacy of the present demurrage charges ? y 11. What is meant by the expression "bunching of cars"? 12. What is the substance of the average agreement under the Uniform Code? U 13. Why is the use of cars for storage purposes not beneficial to the general public ? APPENDIX A NATIONAI. CAR DEMURRAGE RULES' When these rules are issued as a tariif, the words "this railroa^" should be used instead of "carrier line." RULES Approved by National Association of Railroad Commissioners, November 16 and 17, 1909. Approved by Interstate Commerce Commission, December 18, 1909, June 3, 1912, January 7, 1913, and January 5, 1914. Approved by The American Railway Association, January 27, 1910; amended May 15, 1912; November 20, 1912, and December 3, 1913. Rule 1. — Cars Subject to Rules Cars held for or by consignors or consilgnees for loading, unloading, forwarding directions, or for any other purpose, are subject to these Demurrage Rules, except as follows: Section A. — Cars loaded with live stock. Section B. — Empty cars placed for loading coal at mines or mine sidings, or coke at coke ovens, and cars under load with coal at mines or mine sidings, or coke at coke ovens. Note. — ^Delay to cars specified in Section B will be regulated by proper Car Distribution Rules. Section C. — Empty private cars stored on carrier's or private tracks, provided such cars have not been placed or tendered for loading on the orders of a shipper. Note. — ^Private cars while in railroad service, whether on carrier's or private tracks, are subject to these Demurrage Rules to the same extent as cars of railroad ownership. (Empty private cars are in railroad service from the time they are placed by the carrier for loading or tendered for loading on the orders of a shipper. Private cars under lading are in railroad service until the lading is removed and cars are regularly released. Cars whicK belong to an industry performing its own switching service are in railroad service from the time they are placed by the industry upon designated interchange tracks and thereby tendered to the carrier for movement. If such cars are subse- quently returned empty they are out of service when withdrawn by the industry from the interchange; if returned under load, railroad service is not at an end until the lading is duly removed. ) iThese rules are subject to change and are reproduced for illustrative purposes. 39 40 DEMURRAGE AND CAR EFFICIENCY Rule 2. — Free Time Allowed Section A. — Forty-eight hours' (two days) free time will be allowed for loading or unloading on all commodities. Section B. — Twenty-four hours' (one day) free time will be allowed. 1. "When cars are held for switching orders. Note. — Cars held for switching orders are cars which are held by a carrier to be delivered to a consignee within switching limits and which when switched become subject to an additional charge for such switching movement. If a consignee wishes his car held at any break-up yard or a hold-yard before notification and placement, such car will be subject to demurrage. That is to say, the time held in the break-up yard will be included within the 48 hours of free time. If he wishes to exempt his cars from the imposi- tion of demurrage he must either by general orders given to the carrier or by specific orders as to incoming freight notify the carrier of the track upon which he wishes his freight placed, in which event he will have l!he full 48 hours' free time from the time when the placement is made upon the track designated. 2. When cars are held for reconsignment or reshipment in same car received. Note. — A reconsignment is a privilege permitted by tariff under which the original consignee has the right of diversion. In event of the presence of such a privilege in the tariff 24 hours' free time is allowed for the exercise of that privilege by the consignee. A reshipment under this rule is the making of a new contract of shipment by which under a new rate the consignee forwards the same car to another destination. 3. When cars destined for delivery to or for forwarding Dy a connecting line are held for surrender of bill of lading or for payment of lawful freight charges. 4. When cars are held in transit and placed for inspection or grading. When cars loaded with grain or hay are so held subject to recognized official inspection and such inspection is made after 12 o'clock noon, 24 hours (one day) extra will be allowed for disposition. 5. When cars are stopped in transit to complete loading, to partly imload or to partly unload and partly reload (when such privilege of stopping in transit is allowed in the tariffs of the carriers). 6. On cars containing freight in bond for Customs entry and Government inspection. Section C. — Cars containing freight for transshipment to vessel will be allowed such free time at the port as may be pro- vided in the tariffs of the carriers. APPENDIX A 41 Rule 3. — Computing Time Note. — In computing time, Sundays and legal holidays (National, State, and Municipal) will be excluded, except as otherwise provided in Section A of Rule 9. When a legal holiday falls on a Sunday, the following Monday will be excluded. Section A. — On cars held for loading, time will be computed from the first 7 00 a.m. after placement on public-delivery tracks. See Rule 6 (Cars for Loading) . Section B. — 1. On cars held for orders, time will be com- puted from the first 7 00 a.m. after the day on which notice of arrival is sent or given to the consignee. 2. When orders for ears held for disposition or reconsignment are mailed, such orders will release cars at 7 00 a.m. of the date orders are received at the station where the freight is held, pro- vided the orders are mailed prior to the date received, but orders mailed and received on the same date release cars the following 7 00 a.m. Section C. — On cars held for unloading, time will be computed from the first 7 00 a.m. after placement on public-delivery tracks, and after the day on which notice of arrival is sent or given to consignee. Section D. — On cars to be delivered on any other than public- delivery tracks, time will be computed from the first 7 00 a.m. after actual or constructive placement on such tracks. See Rule 4 (Notification) and Rules 5 and 6 (Constructive Placement). Note. — "Actual Placement" is made when a car is placed in an accessible position for loading or unloading or at a point previously designated by the consignor or consignee. Section E. — On cars to be delivered on interchange tracks of industrial plants performing their own switching service, time will be computed from the first 7 00 a.m. following actual or con- structive placement on such interchange tracks until return thereto. See Rule 4 (Notification) and Rules 5 and 6 (Con- structive Placement). Cars returned loaded will not be recorded released until necessary billing instructions are given. Rule 4. — Notification Section A. — Notice shall be sent or given consignee by car- rier's agent in writing, or as otherwise agreed to by carrier and consignee, within twenty-four hours after arrival of cars and bill- ing at destination, such notice to contain point of shipment, car initials and numbers, and the contents, .and, if transferred in transit, the initials and number of the original car. In case car is not placed on pnblic-delivery track within twenty-four hours after notice of arrival has been sent or given, a notice of place- ment shall be sent or given to consignee. 42 DEMUERAGE AND CAR EFFICIENCY Section B. — ^When cars are ordered stopped in transit notice shall be sent or given the party ordering the cars stopped upon arrival of cars at point of stoppage. Section C. — Delivery of cars upon private or industrial inter- change tracks, or written notice sent or given to consignee of readiness to so deliver, will constitute notification thereof to consignee. Section D. — In all cases where notice is required the removal of any part of the contents of a car by the consignee shall be considered notice thereof to the consignee. Rule 5. — ^Placing Cabs foe Unloading Section A. — When delivery of cars consigned or ordered to any other than public-delivery tracks or to industrial interchange tracks cannot be made on account of the act or neglect of the consignee, or the inability of the consignee to receive, delivery will be considered to have been made when the cars were tendered. The carrier's agent must send or give the consignee written notice of all cars he has been unable to deliver because of the condition of the private or interchange tracks, or because of other condi- tions attributable to consignee. This will be considered con- structive placement. See Rule 4 (Notification). Section B. — "When delivery cannot be made on specially des- ignated public-delivery tracks on account of such tracks being fully occupied, or from other cause beyond the control of the carrier, the carrier shall send or give the consignee notice in writing of its intention to make delivery at the nearest point available to the consignee, naming the point. Such delivery shall be made unless the consignee shall before delivery indicate a pre- ferred available point, in which case the preferred delivery shall be made. Rule 6. — Cars fob Loading Section A. — Cars for loading will be considered placed when such cars are actually placed or held on orders of the consignor. In the latter case the agent must send or give the consignor written notice of all cars which he has been unable to place because of condition of the private track or because of other conditions attributable to the consignor. This will be considered constructive placement. See Rule 3, Section A (Computing Time). Section B. — ^When empty cars, placed for loading on orders, are not used, demurrage will be charged from the first 7 00 a.m. after placing or tender until released, with no time allowance. APPENDIX A 43 Rule 7. — Demurrage Charge Section A. — After the expiration of free time allowed, a charge of $1.00 per ear per day, or fraction of a day, will be made until car is released. This charge is included in and is not in addition to the charges named in Section B. Section B. — 1. Refrigerator or other fully insulated ears (which have been ordered by consignor or shipper) will be subject to the following charges after the expiration of free time allowed. Note 1. — ^A fully insulated car is a box car having walls, floors and roof insulated, not equipped with ice bunkers or ice baskets. Note 2. — This section does not apply to ordinary box cars with temporary lining. 2. When held for loading or unloading: For the first seventy-two hours (three days), $1.00 per car per day lOr frac- tion of a day; for the succeeding seventy-two hours (three days), $3.00 per car per day or fraction of a day; for each succeeding day or fraction thereof, $5.00. 3. When held for any other purpose : For the first seventy- two hours (three days), $1.00 per car per day or fraction of a day ; for each succeeding day or fraction thereof, $3.00. 4. Where track storage charges are in effect the charge of $1.00 per car per day, as per Section A, will apply in addition to the track storage charges. The $3.00 and $5.00 charges named in Section B will not apply, but when for any day the track storage charge plus $1.00 is less than the charge named in Section B, an additional demurrage charge will be made suffi- cient to make the total charge for that day equal the $3.00 or $5.00 charge, as the case may be. 5: Credits earned imder Rule 9 (Average Agreement) cannot be used to offset any charges provided above which are in excess of $1.00 per day. 6. This section shall apply to ears into which freight is loaded, or transferred in transit, for the purpose of providing necessary protection from climatic conditions.* Rule 8. — Claims No demurrage charges shall be collected under these rules for detention of cars through causes named below. Demurrage charges assessed or collected under such conditions shall be promptly canceled or refunded by the carrier. ajn the Spring of 1916 some increases were put into effect as an experiment to deter- mine the effect of increased demurrage on the release of equipment. 44 DEMURRAGE AND CAR EFFICIENCY Causes Section A. — Weather interference. 1. When the condition of the weather during the prescribed free time is such as to make it impossible to employ men or teams in loading or unloading, or impossible to place freight in cars, or to move it from ears, without serious injury to the freight, the free time shall be extended until a total of 48 hours free from such weather interference shall have been allowed. 2. When shipments are frozen while in transit so as to pre- vent unloading during the prescribed free time. This exemption shall not include shipments which are tendered to consignee in condition to imload. Under this rule consignees will be required to make diligent effort to unload such shipments. 3. When, because of high water or snow-drifts, it is impos- sible to get to ears for loading or unloading during the prescribed free time. This rule shall not absolve a consignor or consignee from lia- bility for demurrage if others similarly situated and imder the same conditions are able to load or unload cars. Section B. — Bunching. 1. Cars for loading. — When, by reason of delay or irregu- larity of the carrier in filling orders, cars are bunched and placed for loading in accumulated numbers in excess of daily orders, the shipper shall be allowed such free time for loading as he would have been entitled to had the cars been placed for loading as ordered. 2. Cars for unloading or reconsigning. — ^When, as the result of the act or neglect of any carrier, cars destined for one con- signee, at one point, are bunched at originating point, in transit, or at destination, and delivered by the carrier line in accumu- lated numbers in excess of daily shipments, the consignee shall be allowed such free time as he would have been entitled to had the cars been deliverd in accordance with the daily rate of ship- ment. Claim to be presented to carrier's agent within fifteen (15) days. Section C. — Demand of overcharge. When the carrier's agent demands the payment of transporta- tion charges in excess of tariff authority. Section D. — ^Delayed or improper notice by carrier. — When notice has been sent or given in substantial compliance with the requirements as specified in these rules, the consignee shall not thereafter have the right to call in question the sufficiency of such notice unless within forty-eight hours from 7 00 a.m. following the day on which notice is sent or given, he shall serve upon the delivering carrier a full written statement of his objections to the sufficiency of such notice. APPENDIX A 45 1. When claim is made that a mailed notice has been delayed the postmark thereon shall be accepted as indicating the date of the notice. 2. When a notice is mailed by carrier on Sunday, a legal holiday, or after 3 00 p.m. on other days (as evidenced by the postmark thereon) the consignee shall be allowed five hours addi- tional free time, provided he shall mail or send to the carrier's agent, within the first twenty-four hours of free time, written advice that the notice had not been received until after the free time had begun to run; in case of failure on the part of con- signee so to notify carrier's agent, no additional free time shall be allowed. Section E. — ^Railroad errors which prevent proper tender or delivery. Section P. — Delay by United States Customs. — Such addi- tional free time shall be allowed as has been lost through such delay. Rule 9. — ^Average Agreement When a shipper or receiver enters into the following agree- ment, the charge for detention to cars, provided for by Rule 7, on all cars held for loading or unloading by such shipper or receiver shall be computed on the basis of the average time of detention to all such cars released during each calendar month, such average detention to be computed as follows: Section A. — ^A credit of one day wiU be allowed for each car released within the first twenty-four hours of free time (except for a car subject to Rule 2, Section B, Paragraph 5). A debit of one day will be charged for each twenty-four hours or fraction thereof that a car is detained beyond the free time. In no case shall more than one day's credit be allowed on any one car, and in no case shall more than five (5) days' credit be applied in can- cellation of debits accruing on any one car. When a car has accrued five (5) debits, the charge provided for by Rule 7 will be made for aU subsequent detention, including Spndays and holidays. Section B. — ^At the end of the calendar month the total num- ber of days credited will be deducted from the total number of days debited, and $1 per day charged for the remainder. If the credits equal or exceed the debits, no charge will be made for the detention of the cars, and no payment will be made to shippers or receivers on account of such excess of credits, nor shall the credits in excess of the debits of any one month be considered in computing the average detention for another month. Section C. — A shipper or receiver who elects to take advan- tage of this average agreement shall not be entitled to cancellation 46 DEMURRAGE AND CAR EFFICIENCY or refund of demurrage charges under Section A, Paragraphs 1 and 3, or Section B of Rule 8. Section D. — A shipper or receiver who elects to take advan- tage of this average agreement may be required to give sufficient security to the carrier for the payment of balances against him at the end of each month. Agreement Bail Company: ■ Being fully acquainted with the terms, conditions, and effect of the average basis for settling for detention to cars as set forth in , being the car demurrage rules governing at all stations and sidings on the lines of said rail company, except as shown in said tariff, and being desirous of availing (myself or ourselves) of this alternate method of settlement (I or we) do expressly agree to and with the Rail Com- pany that with respect to all cars which may, during the continu- ance of this agreement, be handled for (my or our) account at (Station) (I or we) will fully observe and comply with all the terms and conditions of said rules as they are now pub- lished or may hereafter be lawfully modified by duly published tariffs, and will make prompt payment of all demurrage charges accruing thereunder in accordance with the average basis as therein established or as hereafter lawfully modified by duly published tariffs. This agreement to be effective on and after the ...... day of 19 .... , and to continue until terminated by written notice from either party to the other, which notice shall become effective on the first day of the month succeeding that in which it is given. Approved and accepted , 19 .... , by and on behalf of the above-named rail company by APPENDIX B^ Tables I and II show variations from the uniform code on interstate and intrastate trafSc. The uniform code is taken as the normal and the only two features of it included are the free time allowed for loading and unloading and the demurrage rate. Time allowed for reconsigning, completion of load, and other purposes mentioned in rule 2 of the code are not taken into consideration here either under "normal time" or "addi- tional time, ' ' nor are such features here considered in detailing the variations from the uniform code. When no entries are shown in the various columns it is to be understood that the uniform code applies, or that the correspond- ing provisions of State codes are the same as those of the uniform code. Table I contains a list of all the demurrage bureaus, together with the headquarters and a general description of the territory embraced in the jurisdiction of each one. This information is taken from the Official Railway Equipment Register. Some of the bureaus are confined to a particular State, as, for example, Montana, North Carolina, and Tennessee. However, no one bureau necessarily includes all the roads in any one State nor is any one State necessarily confined to one particular bureau. Tennessee has two bureaus within its borders, while Illinois has four. On the other hand a single road may be divided among several bureaus, the Santa Fe System, for example, having por- tions of its line under seven different bureaus. The Lake Supe' rior Demurrage Bureau is confltned practically to the two cities of Duluth and Superior. Some are shown as operating in a certain State when in reality they may include only a few sta- tions on some particular road in that State. The Illinois and Iowa, as an example, has in Kentucky only the station of Paducah on the Chicago, Burlington & Quincy Road. Attention is called to the fact that the demurrage bureaus, on intrastate traffic within the various States, administer the provi- sions of the State codes. Consequently Table I shows, variations from the uniform code on interstate traffic only. ^ From Bulletin 191, Department of Agriculture. 47 48 DEMURRAGE AND CAR EFFICIENCY Table II contains a list of all the States and shows which ones have railroad commissions. It shows also in which ones demur- rage is regulated by statute and in which ones it is regulated by orders of the commission. As to ''reciprocal demurrage" the three most important features are shown, namely : Time allowed carriers in which to furnish cars, the basis for extension of time where there is a sliding scale, and the penalty imposed for fail- ure to furnish cars within the time allowed. Inasmuch as * ' recip- rocal demurrage" applies on intrastate traffic only, all reciprocal features shown are necessarily variations from the uniform code. Table I. — List of demurrage hureauSt their keadqttarters aiyiJurisdusiiUm, and variatiom from the uniform code on interstate traffic, [Uniform code: Free time, 48 liours; demurrage rate, U.] Pemurrage bureau. Headquarters. Num- ber of roads. Territory embraced In States of- Addi- tional tbne. De- mur- rac« rate. ■Alabama Central ^ Chicago ,. Colorado East Tennessee Illinois and Iowa Intermountain Lake Superior Louisville Missouri Valley Montana North Carolina Northern Pacac PaoiGc Northwest Southeastern Tennessee Virginia and West Vir- gmla. Western Wisconsin Birmingham.. St. Louis Chicago Denver Chattanooga... Peoria Salt Lake City Duluth Louisville Kansas City... Butte Raleigh Minneapolis. . . San Francisco. Seattle Atlanta Nashville Hichmond... Omaha Milwaukee.^. Alabama, Florida, Louisiana, and Mississippi. Illinois and Missouri Illinois, Indiana, Mlol^an, and Ohio. Colorado, New Mexico, and Wyo- ming. Qeorgia and Tennessee Illinois, Indiana, Iowa, Kentucky, Missouri, and Wisconsin. Colorado, Idaho, Nevada, Utah, and Wyoming. Minnesota and Wlsc{Hifiln Indiana and Kentucky Illinois, Kansas, Missouri, Nebraska, and Oklahoma. Montana ■ North Carolina : Minnesota, North Dakota, South Dakota, and Wisconsin. Arizona, California, and New Mex- ico. Idaho, Oregon, and Washington. . .. Florida, Georgia, and South Carolina Tennessee Kentucky, Maryland, Ohio, Tennea- see, Virginia, and West Virginia. Iowa, Nebraska, South Dakota, 4nd Wj^oming. Michigan and Wisconsin 0) (') (') 1 Allows 96 hotu-s for unloading ore and concentrates. sChuges $5 per day on certain high explosives. > On &X. and grain demurrage begins to accrue day following placing of cars. * Allows 72 houni at Butt^ and East Helena for unloading shipments of coal, coke, concentrates, lagging j lime, lime rock, lumber, ore, and stalls. ^ * Allows only 24 hours for unloading tank cars. * Cb^ges $3 per day on all commodities in Arizona and Catlfbmia and on tank cars In New Mexico. APPENDIX B 49 S I il I-:! ^ a H m •J 5 f 9b Kv'a 1 lb 1,2 8 8 8 88 s •* » rf- t I 1 b Islill * s a ^ E? li^- II III If lit il 111 P ■C5 (f tS to lltll fe" II 111 II as .^.g 8 8 r I I III ¥ ill SI 91 Is ■ l§il 1 I 111 fil- ial sill I PI 1^1! 1 ^sB i" a 1 1 ( I r l.s 111* ■ lias I Mil 50 DEMURRAGE AND CAR EFFICIENCY t ^ 3.S -J? 3.1 r 4S £■3 >-^-$ nisi 8 8 il.i'a'iSI i * *'h 3 t» « 3 sf £ imp i I ill... I I lllllili I file's (ttooag lii||Mi iuiiiiiyi Ja'S'g'Sl'S •a 01 2 g E s g e a sfsislsissl jaio.lglga'gll APPENDIX C MISCELLANEOUS DEMVRRAOE FORMS (.Approved by The Amariean Railway Aiiociation, December S, MM.) Form of Agreement between Railroad Companies and Consignees Covering Other than Written Notice of Arrival of Freight. NORTH & SOUTH RAILROAD. 19.. Mr. Agent, North & South Railroad Co., Station. hereby agree, until further advice in writing, to accept notice by telephone of the arrival Of freight, as the equivalent to written notice on the Company's standard form. Witness.. Approved and accepted 19 , by and on behalf of the abov* named Bail Company, by .■ Agent, Korth & South Railroad. This agreeinent should be executed in triplicate, one oopj^ ta be retained by the tsonsignee, one copy to be ntained by the agent and one copy to be forwarded to the officer in charge o( Car Service matters, 52 APPENDIX C 53 (Approved by The AfMiritan RaUvoay ,4«8ueiamaa *.«.«;»» *t^ «»1»» c.i. jm: — Z.. „«._» i ..a. rf^ dcaignatad pubUo^eliveiy tncks on acconnt of aucb tra^a *--' fully ooeapied, Qt from otiier caupe beyond the control . *.»;» »!.. carrier ^aU notify Uie consignee of ita beiiM i oTSa consienee, naming the point. Such delivery shall be made un- leBS the Oonelgnee shall before delivery indicate a prefeired avail- ^le point. In which case the preferred delivery shall be made. You are hereby notified that the f ollowingr cars consigned to you cannot be delivered on specially aed«n.ted or customary public t«ck,. on «count of SSter'cTus'lblKhfSuf the carrier -nd delivery will, therefore, be made at - . . , , , (D«Ktlbe) that being the nearest available point accessible to you. ORIGINAL CAR POINT OF SHtPMCNT RCMARK8 Agent. *t- ^ COPY OP THIS NOTICE .BECnVBO . Bl 191 By ( Coneignor or I -ICoDBignee f P"- _ ._ jMa to sdtDowMin Mcalpt bf tUa Hotloa ■■ tlw panon dcUvarins um* aboald fill out. data muI alsD the e»t* o& thveopT k«pt op fll* by tb« Ascntd [ horaby certify ttiaX topy of thia Noticb was deUvered by 09 to Ur... tha consignor or consignee named hereon at on-. -.191 . (tUfiutaM at p«noB dallvwlna notlMh) OS this BOtleff cumot be d^Ivared iwrsonoUy by tha Astnt or bla npreaeiit. atin, it niuBt be Mnrad far null, and the Agent ihoutd fill oat. d>ii ^d glint tho tt^cnint GCrtlfiesta on tha eopy kept on file br htm:) I hereto certify that copy of this Notice was mAfled.by mo to tiie shipper or consignee named bereoo. »t -.■ — . . i. Iff. on in . — —Agent 56 DEMURRAGE AND CAR EFFICIENCY (Approved by 2%e Amenean Railway Aesodation. May 15, tOltJ} THE NORTH AND SOUTH fiAILROAO COMPANY Southport, .■ -191 Dear Sir: Referring to your claim of- at- -station,- reftmd -for cancellation of demurrase -abased on weather interference: This claim is subject to the following provision of our demurrage tariff, lawfully on file with the Interstate Commerce Commission, that no demurrage shall be assessed: "When the condition of the weather during the prescribed free time is such as to make it impossible to employ men or teams in loading or unloading, or impossible to place freight in cars, or to move it from cars, without serious injury to the freight, the free time shall be extended until a total of 48 hours free from such weather inter- ference shall have been allowed." Therefore, to enable us to determine whether your claim comes within the provision of that rule, please fill in blank spaces, date, sign 'and return. Upon receipt of this information, we will be in a position to check against our weather records and make such allowances as you may be entitled to under the above rule. Yours truly, (Signed) C. D. SOUTHLAND Is allowance claimed because the weather prevented men or teams engaging in the work of unloading (or loading), or because the weather prevented you from moving the freight from (or plac- ing it in) the car (or cars) without serious injury to the freight? Answer: On what dates within the prescribed free time did the weather prevent unloading (or loading) a9 claimed? Answer: . Date- (Signature)- TMIS QTATCMBNT MUST BC PRCSCRVEO FOR A PERIOD OF CtOHT YEARS AS RCQUIRCO ST THK RCOU- UTIOHS OF THE INTCR3TAT1 COMMERCE COMMIBtlON.