TARIFFS ARE INDISPENSABLE

When an industry undertakes traffic work even on a small scale, it must of necessity have at its command a tariff file covering in whole or in part the sources from which it draws its supplies, and the points thruout the country to which it distributes its products.

THE USE OF MAPS

The use of maps is essential in analyzing the contents of a freight-rate schedule. For this purpose, outline maps indicating the North American Continent, the United States, or representative states or sections, can be procured from stationery houses or cartographers.

The outline map can be used to best advantage because it will be necessary to indicate only those points to which or from which the industry ships. The approximate geographical location of such points can be determined from an atlas or from a railroad map. One should be somewhat chary as to the use of railroad maps for geographical locations, however, in that many of these maps are purposely distorted to show to advantage the particular section of the country which a given road might traverse. An authentic atlas is, therefore, to be recommended in preference to a railroad map.

Practically all the public utility commissions of the various states issue maps of steam lines, electric traction systems, and the like, and usually residents of a given state can secure a copy without charge.

Fig. 40 illustrates various uses or plans to which these maps may be adjusted. For convenience, they will be styled the geographical, the distance, the zone, and the route plan.

The Geographical Plan

Under this plan the approximate geographical location of various destinations or sources of supply are indicated with relation to the shipping point.

In Diagram A of Fig. 40, Jackson, Miss., has been selected as the shipping point, and representative points in the vicinity thereof selected. Direct routes are indicated by straight lines, and the actual rate applying from that point on a given class of traffic may be indicated by the use of large circles; or the key reference plan may be used whereby, instead of inserting the rate within the destination or point of origin circle, a single number is inserted as a key, and a corresponding table appearing in connection with the map shows the rate attaching to the different key numbers. In Diagram A, the key number 1 is shown at Hattiesburg, and the table appearing in the right-hand corner indicates that a rate of $1.00 per ton applies on the commodity considered.

The Distance Plan

Many of the outline maps are drawn to scale. That is, one inch or a fraction of an inch is the equivalent of so many miles, and by the use of a compass adjusted with respect to this scale, a series of concentric circles may be drawn with the shipping point as the center, as in Diagram B of Fig. 40.

The advantage of this plan is that it establishes definitely the relative relationship as concerns the distance of destinations falling within a certain radius of the shipping point. When the rate to these points is inserted in the graph, the rates within a given zone

should bear some relationship to the rates to other points in the same zone, bearing in mind that in the overlap of rate association territories, rates in one association may be on a somewhat higher scale than those in the other associations. As an illustration, the rates from Chicago to the East are on a much lower general basis than the rates from Chicago to the West.

The Zone Plan

Under this plan, a unit cost of distribution is taken as the measure to indicate the respective zones, preferably on a per net ton basis, ranging from fifty cents to five dollars or more per ton. The limit in all directions that transportation can be procured for a given sum is indicated on the map, as illustrated in Diagram C of Fig. 40. A survey will determine first the lowest figure of distribution, and then the next higher unit, etc. The result is often surprising to those who have never employed the plan in their shipping. In many cases, it will be shown that the industry can ship a much greater distance in one direction via a certain route than it can in other directions or via other routes.

The Route Plan

Generally speaking, if the initial line out of a given point is the terminal line at destination, and if it is the short line between such points or not considerably in excess of the distance applying via the combination of lines effecting the short route, the rates via that line will be the lowest between such points.

As illustrated in Diagram D of Fig. 40, a shipper

at A has the alternative choice of three routes in shipping to F. He may, for example, ship via a single line, Route One, via D. He may ship via Route One in connection with Route Two, via B, or he may employ Route Three, via I. A summary of the effective transportation cost via each route, however, might develop that Route Two carried the lowest charge, and other considerations being equal, there should be no reason why he should not patronize the route carrying the lower rate.

Advantages

These charts visualize the existing rate adjustments applied to the traffic so treated, and bring out those inconsistencies which must then be analyzed to determine whether the discrepancy is a discrimination and an unjust and unreasonable rate within the purview of the Act to Regulate Commerce. In the event correspondence with the carriers does not lead to an amicable adjustment of such discriminations, the case should then be brought before the Interstate Commerce Commission for review.

Special Services

The mere fact that in many cases the rate via a given route is less than the rate via some other route is not in and of itself conclusive that this represents the lowest net rate to the industry.

In the case of Diagram D of Fig. 40, it might so happen that the rate from A to F via B would be the least attractive of the three available routes, owing to the fact that on Route One, or on Route Three, a stop-over or some other transit privilege might be in