The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-04-04


outside of Indiana, traffic author
tiles point their pencils at the out
growth of certain conditions that
led to the establishment of "the
basing point system of rate max
ing"
According to H. B. McNeely, Of
the traffic department of the In
dianapolis Chamber of Commerce,
who has been making a survey of
the general conditions complained
of in Indiana for some time, under
the basing- point system, the total
rate is the sum of the rates to and
from the basing points which are
located at the border of the differ
ent territories. Indiana stands out
like an island in a sea of good
rates, it is revealed, because Of this
condition.
"These border lines follow the
Ohio and Mississippi Rivers, which
are the terminals of the eastern
and southern lines" he explains.
western lines extend through ILL
nois and terminate at Chicago, and
the varying rate-making policies of
the different groups of carriers is
the cause of the claimed Unequal
tiles.
Rate Level Differs
Primarily, the reason for these
varying policies is the differing
level of rates, the varying degrees
of the industrial development. and
the comparative proximity to the
large consuming markets"
According to McNeely, it is the
contention of the Chambers traffic
department that under present con-
ditions, through rates to and from
all points, having proper regard for
the additional service performed,
should be established.
In further explanation of this
condition, r. B. Coapstick, traffic
manager of the Indiana State
Chamber of Commences, said;
wherever there is mileage or
distance scheme of rates in one ter
ritory, which territory is adjacent
to another territory where the
group principle of rate making pre-
walls, there generally is a highly
discriminatory condition existing
at points on and near the border
lines.
Under the group principle, a
rate may apply from groups of
towns within a radius of fifty or
1ws miles to a common destination.
Under the mileage scheme, this is
not so, for there may be changes in
fyxn Nv
block"
The Indiana Illinois State line
has for years and still is considered
a division between the western
scheme of rates where the group
principle predominates and the
mileage scheme of rates.
Indiana zone is located in the
Central Freight Association terri
tory one of the divisions into which
the country has been spliced for
rate-making purposes. Despite the
fact that part of Illinois is located
in this territory, it is revealed that
as TO business WeStbound from Hill
noiS and from the west into Illinois
the group principle prevails.
Brings Higher Level
However, from points in Indiana
east of the Illinois Indiana line,
there is a general combination basis
for rates,
This combination of rates from
one territory to another results in
higher level as compared to
through rates.
The mileage scale, according to
Coapstick, has made the acute con-
dition of discrimination in Indiana
and has brought about the filing of
a number of complaints before the
/, erstate Commerce Commission.
IL is W III established, according to
the traff4N authorities that the
mileage or basing system results in
preferential rates for the basing
points and prejudicial rates to 9TH
ers, while through rates are the
solution for such inequalities.
Under the basing system, four
terminal points are involved, while
on through rates only two have to
be considered.
Rates used under the basing-
point system include the charges
for these terminal services which
are in reality not performed while
through rates make proper allow
ance for such services.
Three methods for constructing
through rates are accepted by traf-
fic observers. They are: Proper
tional rates dover than the LOCALS
to and from the basing points; diff
ferentials added to the local. rates
to and from the baSing point; and
through rates, based on distance
and making proper allowance for
the percentage of haul in the ter
ritorieS where the rate levels vary.
Would Mean Reduction
1.-THE adoption of either of these
methods in fixing rates between In
diAnapolis and southern or western
points would result in a reduction
from our city" McNeely pointed
out. cit would not be possible to
treat Indianapolis alone so the re-
duetions would extend to and bene-
tSother points in this territory"
For great many years there was
{highly discriminatory condition
existing relative to rates from In
diana compared with the Illinois
rates to st. Paul and Minneapolis.
This condition was remedied some
what by the Commerce Commits
sioh, according to Coapstick.