After three years' experience, the MacGraham scale was readjusted to conform more closely to the cost of service principle. The plan, as thus revised, is the one still in force.[407] It recognizes that railway charges should be proportioned to the length of haul, so far as actual costs of haulage are concerned; but it first eliminates those constant elements in cost which do not vary with distance. The original MacGraham scale made no such distinctions. The expenses at terminals, such as loading and unloading, are, of course, entirely independent of the distance covered by the shipment. These, being determined roughly by experimentation, are first deducted from an assumed Chicago rate. From the remainder the rate per mile by the shortest route to New York (920 miles) is then calculated by simple division. This rate per mile is then applied to the distance to any intermediate point, and the terminal charge is again added. Thus a rate is found which is reduced to a percentage of the original Chicago base rate. FOR ILLUSTRATION[408] Cents per 100 lbs. Chicago to New York 25 Less fixed charges on both ends of the line 6 -- The basis of rate for computation being the remainder, or 19 Using short line mileage 920 miles, Chicago to New York, would yield a rate per mile 00.0206 Short line mileage Indianapolis to New York, 833 miles, yields a rate of 17.2 Plus six cents fixed charges, as above, makes 23.2 The percentage of New York rate being 93 per cent. Which is the present percentage basis Indianapolis to New York Short line mileage Frankfort, Indiana, to New York is 881 miles, which would yield at the rate of 00.0206 cents per mile 18 Plus terminal charges 6 -- Which is 96 per cent. of 25 cents 24 [Illustration: [_Facing page 364_]]