Note 408 — Chapter X · THE TRUNK LINE RATE SYSTEM: A DISTANCE TARIFF

The official rule from Proceedings of the Joint Executive Committee, June 12 and 13, 1879, is as follows:

"First.—That from all points being less distant from New York than Chicago new percentages be adopted for making up rates on eastbound freight upon the following basis: the percentages from points of the same, or no greater distance than Chicago, to continue as heretofore.

"Second.—That six cents per 100 pounds be first deducted from an assumed rate of 25 cents per 100 pounds, Chicago to New York, said deduction to represent the fixed charges at both ends of long or short hauls.

"Third.—That, after such deduction, the rate per mile, which the remainder, or 19 cents per 100 pounds, produces from Chicago to New York, shall be charged per mile from all common points named in the first section, according to the percentages of distance shown by the table adopted at Chicago, April 30, 1876, to which result so computed the 6 cents per 100 pounds of fixed charges first above deducted shall be again added, and the percentage of the Chicago rate of 25 cents, produced by such additions, shall thereafter constitute the percentage of the Chicago rate, which shall be subsequently charged from the points named in first section.

For Illustration

Chicago to New York, per 100 lbs. 25c.

Less fixed charges, per 100 lbs. 6

Basis of rate for computation 19

Columbus, Ohio, as at present 70 per cent. of Chicago net rate, will be 13.3c

To which add the fixed charges 6

And the new percentage from Columbus will hereafter be 77-2/10 per cent. of Chicago, in lieu of 70 per cent., as at present." 19.3c