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service, and consequently they are inclined to accept as final the rates established by the carrier.
Obviously all ex-railroad men cannot have been employed in the traffic department of the carriers. The great majority of men so recruited have been secured from other divisions, such as the claim department, the accounting department, the operating department, or from the local freight station. Connection with such departments does not afford contact with the many intricate formulas which are employed by carriers in various territories for the establishment of rates. As a consequence, these men are unable to undertake intelligently the management of the traffic department of an industry.
TECHNICAL TRAINING A NECESSITY
The development of the freight-rate structure in this country has proceeded along definite lines. Formulas have been evolved after years of experiment, and group relationships have been established under which many communities have developed and prospered. Until a short time ago these formulas were jealously guarded by the carriers. Only recently the efforts of the LaSalle Extension University have made it possible to put before the shipping public and quasiindustrial traffic managers, representative adjustments thruout the country in consolidated form. The students of this school are therefore intimately acquainted with the controlling features predominating in the various intraregional and interregional rate structures, and in this work they excell, in many cases, the railroad trained traffic manager who has not had the benefit of traffic department training. .
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