(5) Claims paid by carriers other than the carrier which collected the freight charges shall, in the discretion of the accounting officer, be sent to such collecting carrier to be registered, in order that duplicate payments may be avoided.

(6) No apportionment shall be made among carriers of overcharge claims paid, or of agency relief claims covering charges absorbed, such as switching, elevation, transfer charges, terminal delivery charges, icing, cost of grain doors, or other analogous items. This rule does not apply to claims for charges on freight destroyed or confiscated.

(7) Claims for overcharges which can not be refunded by agents shall be promptly forwarded to the proper officer having jurisdiction. Such officer, upon receipt of such claims, properly supported, shall take immediate steps, consistent with accuracy, to determine the correct charge applicable. If the amount claimed be found correct, or if an overcharge in any amount be found, such amount shall be promptly refunded, and any difference between the amount claimed and the amount refunded clearly explained to the claimant. If the claim be wholly invalid, the claimant shall be notified promptly.

(8) In the event an undercharge be developed after collection of transportation charges, or in the investigation of a claim or otherwise, the officer or agent having jurisdiction shall promptly prepare a freight bill for such undercharge, upon which bill shall be shown all facts incident to the transaction; and such freight bill shall be promptly presented for collection.

(9) The duty of collecting such undercharge shall rest with the officer or agent whose duty it is to collect transportation charges, and he shall exhaust every reasonable effort to collect such amounts.

(10) In the event of failure to make collection of an undercharge, after every reasonable effort has been made to do so, the officer or agent charged with the duty of collecting the undercharge shall promptly transmit the bill therefor, with a statement of all facts incident to his efforts and failure to collect, to the accounting officer having jurisdiction. Appropriate adjustment of the agent's accounts shall be made by station claim or otherwise, according to the established practice of the carrier.

(11) If the facts presented with such undercharge indicate that every reasonable effort has been made to collect it, appropriate action shall be taken as follows:

(a) If a bill for an undercharge be for five dollars ($5.00) or less in any one case, and in the exercise of his business judgment he concludes that further efforts to collect would be futile, the chief accounting officer shall direct that it be charged off.

(b) If a bill for an undercharge be for more than five dollars ($5.00), in any one case, it shall be promptly transmitted by the accounting officer to the chief counsel of the carrier interested, and his recommendations as to its disposition shall be followed.

(c) If the party liable for the undercharge can not be located, or service can not be had, or where, upon investigation by counsel in good faith, it is found that legal process would be futile and ineffectual, counsel shall direct the claim to be charged off, and it shall be so disposed of; otherwise, suit shall be entered for its collection.

(12) All undercharges determined to be uncollectible as prescribed in subparagraphs (a), (b), and (c), of paragraph (11) hereof, shall be borne by the carrier which originally settled the freight charges on the erroneous basis, regardless of the responsibility for such error in settlement.

(13) In the event that suit be instituted to collect an undercharge, the cost of such suit shall be borne by the suing carrier. If the undercharge be not collected under suit, the amount thereof shall be disposed of as provided in paragraph (12) hereof.

(14) In the event freight be destroyed or confiscated in transit, so as to preclude the possibility of delivery of the freight or collection of the charges, no part of the freight charges accruing thereon to any participating carrier shall be included in interline accounts. If waybills have been audited and settled before information concerning the destruction or confiscation of the property is available, such waybills shall be made void, and resettled with participating carriers by correction account or through claim channels.

(15) The provisions of this order shall apply to overcharges, uncollectible undercharges, and to other charges herein referred to, which accrued or which may accrue on and subsequent to January 1, 1918. Settlements which have already been completed on the basis of rules heretofore in effect, shall not be readjusted.

W. G. McADOO,

Director General of Railroads.

GENERAL ORDER NO. 56.

WASHINGTON, November 19, 1918.

WHEREAS it has been found and is hereby certified to the Interstate Commerce Commission that in order to defray the expenses of Federal control and operation fairly chargeable to express and railway operating expenses, and also to pay express and railway tax accruals other than war taxes, net rents for joint facilities and equipment, and compensation to the carriers, it is necessary to increase the express operating revenues, and

WHEREAS the public interest requires that a general advance in all express rates and charges on all traffic carried by the American Railway Express Company taken under Federal control under an act of Congress approved August 29, 1916, entitled “ An act making appropriations for the support of the Army for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes," shall be made by initiating the necessary rates and charges, classifications, regulations and practices, by filing the same with the Interstate Commerce Commission, under authority of an act of Congress approved March 21, 1918, entitled "An act to provide for the operation of transportation systems while under Federal control, for the just compensation of their owners, and for other purposes."

Now, therefore, under and by virtue of the provision of the said act of March 21, 1918, it is ordered that all existing express rates and charges, classifications, regulations and practices, including changes heretofore published but not yet effective, on all traffic carried by said American Railway Express Company, be increased, changed, modified or adopted, effective the first day of January, 1919, to the extent and in the manner indicated herein, by filing schedules with the Interstate Commerce Commission effective on not less than one day's notice.

SECTION 1.

Between points in Zone 1 and between points in Zone 1 and points in all other Zones, the first and second class rates, both interstate

and intrastate, shall be increased three scale numbers. Between points both outside of Zone 1, the first and second class rates, both interstate and intrastate, shall be increased two scale numbers.

Merchandise rates from points in the United States to points in Canada shall be increased 15 cents per 100 pounds, and commodity rates not stated in scale numbers shall be increased 10 cents per 100 pounds.

SECTION 2.

Commodity rates, both interstate and intrastate, stated in scale numbers shall be increased not more than 10 cents per 100 pounds. Commodity rates, both interstate and intrastate, which are stated in cents or in dollars and cents per 100 pounds, per pound or other unit of weight, shall be increased 10 cents per 100 pounds, except as to mileage or commodity rates on milk and cream. Commodity rates, both interstate and intrastate, which are stated in cents or in dollars and cents per crate, barrel or other package or per car, shall be increased at the rate of 10 cents per 100 pounds based upon the authorized billing weight.

SECTION 3.

Milk and cream mileage or commodity rates, both interstate and intrastate, shall be made 25 per cent higher than rates in effect July 1, 1918.

SECTION 4.

Intrastate first and second class rates in States which have not adopted the existing Interstate Commerce Commission basis of first and second class rates, shall be made the same as the increased interstate rates in the same Zone.

In States which did not adopt the increase of 10 per cent on commodity rates on intrastate traffic as authorized by the Interstate Commerce Commission on interstate traffic, by Fifteenth Section Order No. 746, such commodity rates shall be increased 10 per cent and in addition increased 10 cents per 100 pounds, except on milk and cream which shall be made 25 per cent higher than rates in effect. July 1, 1918.

SECTION 5.

Where prior to January 1, 1919, the Interstate Commerce Commission authorizes or prescribes rates and charges which have not been published prior to that date, the rates and charges initially established hereunder may be subsequently revised by applying the increases prescribed herein to the rates and charges so authorized or prescribed by the Interstate Commerce Commission.

SECTION 6.

All rates and charges, both interstate and intrastate, shall be governed by and apply in connection with the Tariff of First and Second Class Express Rates I. C. C. No. 2, Directory of Express Stations I. C. C. No. A-3, Official Express Classification I. C. C. No. 150, Directory of Collection and Delivery Limits I. C C No A-4,· also Terminal and Switching Charges I C. C. No. A-2095, on file with the Interstate Commerce Commission, and supplements thereto and re-issues thereof, which shall be adopted by filing notice with the Interstate Commerce Commission.

SECTION 7.

All intrastate rates which are to be increased under this order, if not now on file, shall be immediately filed with the Interstate Commerce Commission. Such intrastate rates shall not be applied to interstate shipments and the schedules containing said rates shall be so restricted.

SECTION 8.

All schedules published to cover express rates and charges, classifications, regulations and practices under the provisions of this order shall bear on the title-page one of the legends shown below in boldface type.

If restricted to apply on intrastate traffic only, use the following: "The rates and charges made effective by this schedule are initiated by the President of the United States through the Director General, United States Railroad Administration, and apply on intrastate traffic only.

66

This schedule is published and filed on not less than one day's notice with the Interstate Commerce Commission under General Order No. 56 of the Director General, United States Railroad Administration, dated 19th day of November, 1918."

66

If restricted to apply on interstate traffic only, use the following: The rates and charges made effective by this schedule are initiated by the President of the United States through the Director General, United States Railroad Administration, and apply to interstate traffic only.

66

This schedule is published and filed on not less than one day's notice with the Interstate Commerce Commission under General Order No. 56 of the Director General, United States Railroad Administration, dated 19th day of November, 1918."

If to apply on both intrastate and interstate traffic, use the following: