Cyclopedia of Commerce, Accountancy, Business Administration, v. 01 (of 10)American School of Correspondence
General
Cyclopedia of Commerce, Accountancy, Business Administration, v. 01 (of 10)
American School of Correspondence
Accounting; Business; Commerce
Another illustration of the effect of description on the classification
is found in shipments of carriages. The classification, and consequent
rate, on this commodity is based on the space that it will require,
rather than on the rate. If shipped knocked down and properly crated,
with the dimensions stated on the shipping bill, a carriage takes a
lower classification than if shipped assembled, or if the dimensions of
the crate are omitted.
These illustrations are sufficient to show the importance of a thorough
knowledge of the provisions of the different classifications. The
shipping clerk who would give the best service to his house should
make a study of this subject, even if he is obliged to take the
classifications home and study them at night. Every shipper should see
that his shipping clerk is supplied with copies of classifications
governing the territory in which he is doing business, and give him an
opportunity to learn their provisions in respect to the commodities
which he ships.
=Class Rates.= A _class rate_, as the name implies, is one based on
the classification. All commodities are divided into classes, six in
number, and all commodities of the same class--with certain exceptions,
explained later--take the same rate. Schedules of rates between
given points, based on the class, are prepared by the classification
committees, but before being put into effect, they must, in case
they apply between points in different states, be submitted to the
Interstate Commerce Commission for approval. While not a _rate-making_
body, the commission is a _rate-governing_ body, constituting,
in a certain sense, a board of arbitration between shippers and
transportation companies.
The rates being based on the classes--the higher the class, the higher
the rate. To determine the rate, it is first necessary to find the
classification; reference to the rate schedule will show the rate for
each class.
=Commodity Rates.= A commodity rate is one applying to a special
commodity, between definitely stated points. Commodity rates are
established by the railroads to meet some special condition, and with
these the classification committees have nothing to do.
A commodity rate does not apply to articles not named in the tariff
even though they are of a similar nature, nor do they apply between
points not specified in the special tariff. A commodity rate is, in
effect, a special rate; it offers special inducements for the shipment
of certain commodities, but is not intended to favor any one shipper.
The commodity rate is for the benefit of all shippers of the commodity
named.
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