Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-06-03
ALL RAILROAD CHARGES
MUST Be PAID IN CASH
New Ruling by Dircctor-Gcneral Nc.
Adoo Becomes Effective
on July I.
WILL PREVENT DISCRIMINATION
Where Enforcement of Regulation
xviii Rttaro Prompt Forwarding
or Delivery of Freight, Credit MAY
IS BE Extended Forty Eight Hours.

~ Effective July /. collection or trans
portation charges by the railroads UNI
der Federal control Will be put on Il
cash basis, according 10 a general or
der just issued by William q. McAdoo.
director-sencral of railroads which
has just been received by Richmond
railroad officials. With the Inaugural
ton OF the new system, credit accom-
modations shall he Cancelled which may
DC in conflict with the regulations Of
the order.
These regulations provide that tick
cts shall be sold only for cash in adj
vance of service. baggage charges are
subject TO the same rule as tickets. en-
cept c. o II. baggage and storage
charges, which must be paid In cash
before delivery. In case any uucs ton
arises as TO the accuracy OF charges
DIS must be paid as rendered and
claims entered for alleged errors. This
VIII not prevent adjustments by agents
OF obvious errors.
Payment of transportation charges
by check will be considered as n pay
ment IN cash if the person. firm or
conpah! signing or ndorsine it : is
known TO the agents TO be fully rclia-
bic. Checks are not to be taken or
cashed by agents under any circum-
stances. except for transportation
charges.
MAY EXTEND CREDIT WHERE
DELAY RETARDS SHIPMENT
The general order of director Nc
Adoo states:
In cases where the enforcement OF
ihis rule with respect TO freight will
retard prompt forwarding or delivery
OF the freight or the prompt release OF
equipment or station facilities. carriers
VIII be permitted to extend credit for
period not exceeding forty-ciEht
hours after receipt of shipment of n
consignment. If it be prepaid. or after
delivery at destination. ii il he Il coll
lect consignment provided the con-
siEnor. If ii be prepaid consignment.
or the consirncc if 1t he collect file
surety bond. either individual or cor
porate. in an amount satisfactory to
tho treasurer of the carrier"
{. y. Frouty, director of the division
of public service and accounting has
issued an explanatory circular as fol-
lows:
The directorgencral is about issu-
ing an order putting the payment of all
transportation charges upon a cash
basis, and is especially DESTROYS that
this shall result in as little inconvcni-
encc as possible to the public The
rule should be interpreted in a practi-
cal business way. If. for example, the
consiSnee, who is financially RESPONSE
BILE. is accustomed to send for his
freight In the morning, and the coll
lection of the freight charge is effect
ed in the afternoon. that should be
treated as a cash transaction so long
as the conSiEnec continues TO pay its
freight charge promptly upon prcscn-
tation OF the freigh, bill. Similar ap-
nlication of the rule should he made in
the collection of a prepa id charge from
shipper. That is 10 say. payment of
such charge, If made on the day the
shipment is forwarded, will be treated
as a cash transaction.
NEW ORDER WILL. PREVENT
DISCRIMINATION OF ALL KINDS
The enforcement of the cash rule
VIII require payment by the shipper
and conSigncc, for the most past, with
out opportunity FOR the correction OF
errors in the freight bin, but in all
cases where mistake or where it is
plainly indicated upon the face of the
bill, the agent should make tbs cor
!. rection before cXactinE payment.
THE director general is also aux-
ious that the public shall understand
that the reason for the PRONUNCIATION
OF this order is to prevent discrimina
ton between shippers and consignccs.
The extending OF credit in the pay
ment OF transportation charges to one
person while il is denied TO another
results in II preference in favor Of the
person to whQm- credit is given. While
repeated auemNS have been made in
the past 10 check this evil. competitive
conditions have rendered ii Impossible
TO do so. At the present time many
shippers and consisnecs. especially
large ones, enjoy with respect TO many
of their freight bills Il credit not only
of days, but weeks and sometimes of
months. There seems 10 be no way OF
dealing with this, except TO enforce the
cash rule.
The director general further in
structs me 10 say that he has under
consideration rules touching unou the
settlement Of overcharGcs and claims
for loss and damage which he believes
will result in the prompt and fair dis
position OF such matters with a mini
mum OF Inconvenience a uul,lir