The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-11-04
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Clearing House Solution OF
Freight Bill Collection.
Favored by E. L. Copeland in
Address Before Officers.

The railway clearing house associa-
ton is the solution of the problem
faced by the treasury departments or
railroads in collecting transportation
charges from consignees. IN the BELIEF
or Z. L. Copeland, secretary and treas
urer of the santa F'e; expressed IN a,. a
paper read by Copeland before the
sixteenth annual meeting of the Rail-
way Treasury Officers association,
held October 10 and 20 at Ashevile,
N c.
Mr.. CopeIand's paper pointed out
that before the period of government
operation of the roads during the
war. shippers and consignees expected
a certain amount of credit, or time
in the payment of their freight bills
This practice was abolished during
federal control. and in the formulation
of the Transportation act OF 1921,
provision was made by congress Tor
the collection of all transportation
charges before the goods were sur
Plans Is Unjust
in hearing before the interstate
commerce commission. some shippers
thought that they should be given fif-
teen to thirty days credit, but con-
gress realized the injusrrce of such
plan" Mr. Copeland said
This conclusion was fortunate
one for the treasury departments OF
the railroads. assuring them that un-
limited credit, delays in settlement,
etc would not be permitted under
eAfs law. In the general discussion OF
this subject it was clearly indicated
by the members of congress, that no
industrial or mercantile line OF trade
should be permitted to transact BUSH
ness on railroad money, as that is
practically the situation whenever an
extended credit is permitted to rail-
road patrons.
THE treasury department controls
the collection of revenue and is ex-
- A-T- rrN N
conditions relative to rne delivery OF
all shipments, perishabIe or other
wise. The interstate commerce COM
mission has left the detailed require
ments TO the railroad treasurers
Treasurers must know-more about the
financial responsibility OF their pa
irons at all points on their line; they
most avoid discrimination and at the
same time recognize the important of
expanding the method OF collection as
the various lines of business may re-
quire. The iron-clad rules must be
elastic in various ways. The handling
of perishable freight must receive spe-
cial atteDtion; diversion and delivery
of shippers order shipments, without
surrender of original bills of lading
must be fully protected: congestion OF
freight must be avoidec by arranging
fer prompt switching and unloading
of cars for further service.
Must Keep Posed
Il am enumerating a few of the
things that the treasury DEPARTING emit
must handle without fear or favor.
After much discussion, the interstate
commerce commission decided that
exceptions could be made in the col
lection of transportation charges to
well. known, financially responsible
patrons. who would agree to pay the
bills within As hours after presenta-
ton. and that where special conditions
were such that additional credi-
should be extended, on the. filing
- Il
Inent, a credit of Sc hours could be
extended from the time Of presenta-
ton of the freight bills This arrange
ment places the treasury department
IN close relation with the shipping
public and it is expected to keep
posted as to the financial condition
and the ability of parties to make
settlement within the stipulated time.
These requirements of the COM
mission are well known and have been
published Tor the bener!t of all ship
pers, but there seems to be a feeling
that the railroads now being operated
by their owners should extend ordi-
nary business courtesies to patrons
and permit them to settle the bills at
such times as they desire. The treas
urers of the railroads should realize
that competition is very keen and
readily see that the permitting OF such
delays would soon cause a large I'M
collected list of bills to report weekly,
and at the close OF each month"; If
back to- old conditions which existed
prior to federal control.
Clearing House Is Solution.
L '"we-shan never be able TO force
obedience to these rules II we permit
a continuation of this condition, and I
think the treasury department should |
decide that the rules must be en-
forced, and parties not making pay
ments promptly should be eliminated
from the accommodation list. With |
out cooperation between roads there |
IS but one solution of this entire sit
uation, and that is the establishment
of railroad clearing house associations. |
These organizations are now in oper- /
alton at Kansas City and st. Joseph, /
Mo. and we have no trouble at these I
points to make uniform collections /
from all patrons.
-''When you consider that under the /
clearing house plan the traffic Off |
Gals are not annoyed with complaints /
against the department handling the4
collections and there Is fess friction |
between railroads and patrons for the /
reason that all are treated alike and |
must pay accordingly. you will then |
find IL much easier 10 enforce the law 4
and permit the retention OF traffic for /
each line
yoG can insist on the collection OF |
transportation charges without driving /
this business away from any one line"
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