Storage Charges Cause Trouble

   Posted by: admin   in Business, Railroad

The Fort Dodge Messenger: July 7, 1905

Storage Charges Cause Trouble

Patrons of the Railroads Do Not Like to Pay Storage Charges

Hurts Mail Order Houses

The Rule Adopted by the Illinois Central and Iowa Car Service Association Went Into Effect July 1 – Much Complaining From Patrons.

The rule recetnly [sic] adopted by the Illinois and Iowa Car Service Association, of which association all the western railroads are members, has caused considerable trouble here. The rule was to the effect that all shipments in less than car load lots, not taken from the freight warehouse within twenty-four hours of the time the freight was received should be charged storage rates.

The storage rates, while comparatively small would yet amount to a large sum within a short time, should the freight not be taken from the house. A charge of five cents a day for each hundred pounds is paid, so that should the shipment weigh four or five hundred pounds and remain in the warehouse a few days the owner would soon have a bill to pay that he would not like.

A fraction of one hundred pounds and a fraction of a day are charged at the same rate. Thus all people who are expecting a shipment of freight from any point would do well to look the matter up occasionally and see that it is not laying around the warehouse. The railroads send a postal card to all owners of freight immediately upon its arrival, but this card might not be delivered in time to allow the owner a chance to get it out before the storage rates went into effect, so the method of calling up the freight office daily is a good plan to keep from paying freight storage charges.

Although the business men do not like the idea of paying storage charges very well, in the end it will help their business as it will hurt the business of the mail order houses. As the customers of the mail order houses reside mostly in the country, the freight will in all probability lay around the warehouse for several days before the farmers are able to get in and get the shipment. This will cost the farmers so much that in the end it will be cheaper to buy of home merchants.

The railroads have for some time been charging storage on all car load shipments, but the first day storage was charged on smaller shipments was Wednesday as Sunday and the Fourth both being holidays, the rule did not go into effect until the fifth.


This entry was posted on Thursday, July 7th, 2011 at 10:00 am and is filed under Business, Railroad. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

Leave a reply

You must be logged in to post a comment.