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
Routing frequently affects the rate. It might appear logical to suppose
that the rate between two given points would be the same, regardless
of the route; but this is not the case. Of two routes to a given point,
one may be longer than the other. If shipping and destination points
happen to be in different states, the provision of the Interstate
Commerce Act which forbids a higher rate for a short haul than for
a long haul comes into play. Similar provisions applying to local
shipments, are found in the laws of certain states. In Iowa, for
instance, such a provision covers the transportation of passengers as
well as freight. One railroad is not permitted to meet the competition
of another having a shorter route between two points, but must base
its rate on the mileage. All of which goes to show the necessity of
considering the length of the haul in routing shipments.
The above conditions apply especially to shipments taking class rates,
but when goods which take commodity rates are to be shipped, the
question of routing is of even greater importance. It has been shown
that a commodity rate may be in effect between two points on one road,
or two or more roads may have issued a joint tariff which can be taken
advantage of. The question of commodity rates, therefore, has a most
important bearing on the routing of shipments.
Another factor that has a bearing on the routing is _basing points_,
which necessitates a knowledge of the points on which rates are based.
In the territories governed by the different classifications, certain
common points are used for basing rates. On shipments from the central
states to southern territory, rates are based on Ohio River points,
while, to western territory, they are, in many cases, based on Missouri
River points. Class rates from Chicago to all Missouri River points
are, as a rule, the same over all roads, but, to points beyond the
Missouri River, rates may vary from the different basing points; that
is, the rate from Omaha to a western point may be less than from Kansas
City, though the rate to these basing points is the same.
The alert shipping clerk will learn the basing points in the territory
to which he is shipping goods--which he can do by consulting local
freight officials--and will then secure tariffs from these basing
points to the towns he wishes to reach. This information he will
incorporate in his rate files.
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