The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-29
PER DIEM SYSTEM WEAK
CAR ACCOUNTING METHOD THAT
MAY BE CHANGED BY RAILWAYS.
Works to the Benefit of Small Lines,
Detention than Buy Equipment.

There is much discussion in railroad
circles about the real value of what Is
called the per diem system TO the prominent
railroads, especially the trunk lines. The
per diem system was put in use on every
railroad of Importance in the United States
nearly two years ago. Previous to that
time the system used was known as the
mileage system, each railroad paying the
owner of the car on a mileage basis. The
per diem system calls for payment of 20
cents per day to the railroad owning the
car by the railroad in whose possession 1t
chances to be- After the car has been on
any one line for thirty days it is charged
for at the rate of 81 per day. and is known
a penalty
The opinion among strong lines is tnat
the charge is too low and that the penalty
per day should be increased from 20 to
so cents for each car for thirty days, and
after that time the penalty should be s. in
stead of ST. An official states that if any
change is made probably those figures will
prevail. AS a whole, the per diem plan,
if rules are carried out strictly. is consid-
cred one of the best that could be in
vented and an Improvement over the mile
age system. If the agitation in support
support from the majority of members 1T
is quite likely that the present per diem
charges for the of freight cars Will
be advanced when the American Railroad
Association holds its meeting in New York
next April. The movement in favor of this
measure had its inception short time after
the per diem system was adopted. En-
perience has convinced those who lnaugu-
rated the plan that the best results sought
and hoped for will not be attained unless
higher charge is imposed Advocates of an
increase in charges were prepared TO spring
ii at the meeting of the association early
in the year, but were headed off because
OF favorable report of a committee In
charge of the per diem question, which was
referred back to that committee, as were
other measures similarly blocked, and there
is reason TO believe that some members
OF the lattefrwere responsible for the IN
terruption and delay and the proposition to
raise charges, although there is a manifest
opposition to the plan on the smaller roads,
which are short of cars. What are ordi-
narily termed the little roads are the great
est offenders in the detention of cars-a
scheme they find cheaper to resort to than
TO buy new eQulpment-and they do not de-
ny that they continue to hold cars for an
indefinite length of time for this purpose,
as they could afford better to pay the pres
ent rates than to buy additional equipment.
The old mileage system was abandoned by
lines in the American association because
of its inadequacy to insure quick return
of equipments. Invariably when cars were
badly needed these away from their own
ers would be used for indefinite periods; it
was not uncommon TO experience great diff
ficuty in locating the cars, and when found
complications would arise which made it
difficult TO determine the mileage for a
basis of charges. The per diem system en-
ables railroads to fix rental charges at least
with accuracy. A perfect record of cars is
kept from the time they leave their own
railroads, and exasperating evil has been
partially reformed. There seems TO be no
doubt that higher rates would go far to-
wards effecting the purpose OF the per
diem plan, which is the prompt return Of
cars.