The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-11-18
| RAILROAD NEWS
BRING BACK CARS
'Per Diem Charge" as an Aid to
Car Shortage.
Other Items of Interest in Rail-
way Circles Here.

The possibility of a raise in the per
diem charge as a measure towards
relieving the car shortage, which is al
fecting the railroads, has been sug-
gested by some of the roads IN the
eastern part of the United states.
The per diem charge is the rental,
or charge for the use of cars, which is
paid by a railroad on cars which De
long to other lines, but are being used
by companies not owning them
The movement originated in the
east, according to J. R. Koontz, gen.
eral freight agent of the Atchison
Topeka & Santa Fe system MT.
Koontz says the matter is an OUT
growth of the efforts of the Interstate
Commerce commission. and that us
effect on the roads and the Shippers
would be problematical-
w. L. Ayers, writing in the Chicago
Post, expressed the opinion that
raise in the per diem rates would prlng
into effect an embargo on some snip
pers, and would inevitably result IN
discrimination among shippers, on the
part of the railroads.
Shippers of the United States are
facing one of the worst embargoes
ever experienced in this country. says
Mr. Ayers 'Such a development is
bound to come if the railroads IN
crease their per diem rates, according
to an authority on such matters In
roads will scrutinize closely every bill
of lading and will not allow their cars
to be routed all over the country I'M
der any circumstances, as Is now the
case. They will restrict the movement
of their equipment.
"And such action On the part ca the
carriers is imminent, in the opinion
of this same authority. In fact, it has
been already agreed that the per diem
rates should be increased, and COM
mission will soon be appointed by the
railroads to consider the extent of the
increase. This commission will be
given a minimum figure of As cents
and maximum figure of $1.25, with
the power to fix upon any charge
within those limits. The low mark
is the present charge
That the increased per diem rate is
the result of agitation by the shippers
themselves, and that the embargo
which will result will be the more
calling on account of that fact, is the
opinion expressed by Mr.. Ayers. He
says that the increase in the per diem
rate has been asked by the National
Industrial Traffic league which en-
bodies the heads and representatives
of the traffic departments of the lead
ing industrial and manufacturing con-
Germs of the United States.
The members of the league op-
posed to an increased demurrage rate,
which is the rate charged shippers
for holding car longer than is alb
solutely necessary to load or unload
it. believe that raising the rate which
the railroads are compelled to pay
one another for the use of cars would
expedite the handling of freight, and
thus relieve the car shortage.
Instead, according to Mr.. Ayers, the
shippers will find themselves the VIC
Tins of discrimination which will
amount to an embargo in many in
stances.
Mr.. Koontz did not refer to the eff
feet of the increase of the per diem
on the shippers.
Primarily, it is an issue among the
railroads themselves" he said this
morning, and there is little that can
be said about it"
In hearing before the state public
utilities commission in October, Mr..
Koontz is quoted in the Railway Age
Gazette as saying that the eastern
railroads had failed to keep an agree
ment to return promptly freight cars
received from western roads, while the
western railroads had lived up to the
agreement until they awoke to the sit
uatlon. The Kansas railroads alone
lost the use of from $1,000 to 10000
cars because of the failure of eastern
railroads to return empties Mr..
koontz appeared before the commits
sion as witness at a hearing on an
application for an increase in de-
murrage charges