12 MASS. EXPERIMENT STATION BULLETIN 299 



Returns indicated that the "freight charge" might include freight only or the 

 sum total of charges, except commission, deducted b}' the selling agent. Of the 

 accounts which included freight only, 17 were slightly incorrect. Ten of these 

 accounts were erroneous in that a rate of 25 cents instead of 26 cents per hundred- 

 weight was charged. The other 7 showed slight discrepancies which could be 

 accounted for if a box or a barrel was two pounds above or below the average 

 weight. In tabulating the data these 17 accounts were omitted. 



On the remaining 27 accounts, the sum of overcharges plus undercharges amoun- 

 ted to $520.64. Twenty-four accounts showed freight overcharges to growers 

 totaling $488.78. Three accounts showed undercharges of $31.86. The appar- 

 ent net freight overcharge was $456.92. The range on the twenty-four accounts 

 was from $3.74 to $63.96 per car. The average was $19.03. The undercharges 

 showed a narrower range, $8.78 to $12.24 with an average of $10.62. 



Further analysis reveals that the apple grower was not as grossly mischarged 

 as would appear. Nine accounts included lighterage and reconsignment and pos- 

 sible bunker charges under freight. In order to secure deliveries by the carrier 

 indicated, reconsignment and lighterage were necessary. Other deliveries by 

 the same carrier had included bunker charges and, considering the date of ship- 

 ment, this charge might rightly be made. Deducting the average bunker charge 

 and applying the correct lighterage and reconsignment charges, the overcharges 

 are reduced to $306.32. 



Terminal freight as an accounting classification is also indefinite as to what it 

 includes. Eleven receipts listed "terminal freight" charges which totaled $178.07 

 or an average of $17.09 per car. Ten of these charges were for or included recon- 

 signment. Four charges were for moving cars to and from storage at a storage- 

 in-transit point. Deducting the sum of these charges leaves but $40 chargeable 

 to terminal freight. All other carrier charges were definitely allocated. The 

 remaining charges are marketing costs which can apply regardless of the carrier. 



The practice of reporting all charges as freight or terminal freight is to be criti- 

 cised. It gives the grower an exaggerated idea of the freight cost. It hinders his 

 knowing for what service he is paying. It prevents his changing his shipping order 

 since he has no notion of what might be eliminated or changed. 



Criticisms of rail shipments by the growers pertained to (1) extra charges; (2) 

 variations in charges. Extra charges may be of two kinds; those incident to ship- 

 ping or transportation, and those incident to selling or supplementary services. 



Charges made by the railroad are for payment of services ordered performed- 

 The railroad does not move a car to or from storage, does not reconsign a car, does 

 not give a car second placings, or perform other additional services except when 

 asked to do so by the shipper or his appointed agent. 



Those costs which apply to selling or performing supplementary functions are 

 added at the request of the commission man or other sales agent. Most of the 

 growers give their sales agents practically full power to direct the handling of the 

 fruit. 



Variations in charges for equal volumes shipped from the same point to the same 

 destination may arise from several causes. In the first place, there may be slight 

 differences in weights per box or per barrel. A small difference per package makes 

 a noticeable difference in the weight of a car containing 600 to SOO boxes. There 

 may be errors in rate quotations. If a grower keeps his freight bill these can be 



