The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-05-14
RAILWAY CLEARING HOUSES.
William NichoIson's Testimony Be-
fore the Industrial Commission.


William Nicholson, Manager OF the Cen
traI Railroad Clearing House at Buffalo,
n Y. testified before the Industrial Com
mission today concerning the organization
and function of clearing houses. The
clearing house principle, Mr.. Nicholson
said. was first made applicable TO the
through freight traffic accounting of the
New York Central and Hudson River
Railroad, its leased and operated lines, at
the instance Of John Christensen. comp
troIler, and as a natural sequence clear
ing house was established at Buffalo, the
geographical centre Of the system for the
purpose of handling certain details of
through freight accounts for the allied
roads terminating at the Niagara from
tier.
The functions Of the clearing house
Mr. Nicholson said. were to secure the
complete and proper revision of all bin
ing: the clearance of freight revenue, bal
anccs aCcruiag between the clearing house
roads, the compiling and furnishing to
roads members of the clearing house Of
all statistics. statements CT earnings, ETC.
the checking and recording OF all joint
freight line claims. and the keeping Of
complete records Of clearing house and
fast freight line business The clearing
house began with a charter membership
of six roads, the New York Central and
Hudson River Railroad. west Shore Rail-
road. Lake Shore and Michigan Southern
Railway. Michigan CenaraI Railroad, New
York. Chicago and st. Louis Railroad and
the Pittsburg and Lake Erie Railroad
In December 1893 the membership Of the
Michigan Central was discontinued and
on May /. 1851, the Cleveland. Cincinnati,
Chicago and St. Louis Railway and the
Lake Erie and Western Railroad were ad-
ritted to mem 5ership. The initial prov
iuCe Of the clearing hOCse was to con-
trcl the accounting Of traffic passing the
Niagara frontier. This was satisfactorily
accomplished and since its organization
its duties have largely increased It now
took care of twelve different systems Of
accounting to conform 10 the desires of
the different membership lines
Prior to the organization Of the clear
ing house, practically all business inter-
changed between the roads was settled
for by the agents at junction points The
clearing house territory. as far as ac-
counting interests were concerned, is now
practically one territory. The clearing
house. he said, had no intermediate juno
ton settlements whatever. The system
was an economical. expeditions. and sim
pie plan of settlement and had done more
than any other agency to provide for de
livery Of shipments to consisnees on
proper net charges. The Old method pro
vided each Individual way bill should be
divided and settled between the roads,
while nov all way bills in month be
tween given points, We're brought to q to-
tai which was subdivided-
As evidence Of the magnitude Of the
operations of the clearing house Mr.
Nicholson said the revenue cleared be
tween membership roads since the organi-
z;.tiun Of the clearing house TO MAY l. 1860.
vsas SO. .q9Z. 81; the tons OF freight handled
vsas 9G26.g04, and number Of way-bilis re-
vised. ZS60 gST. Tnc increased revenue
shown was S1G4, 81. Mr.. Nicholson thought
the clearing house a pre- sressive step in
railway accounting. II was move ii the
direction Of economy, g I'd when more
through billing was established, and uni
through billing was established, more
versal system of freight accounting
adopted by the different roads, the success
Of the clearing house system would be
rr0uOrtiOuateIy create