Re: Per Diem


Bill McCoy
 

Demurrage charges were assessed on the basis of the ICC 4 Demurrage
tarriff nationally for all carriers. Deviation from these charges had
to be authorized by publication of alternate demurrage charges in a
rate tarriff, common for discounted incentive rates published on
grain, etc. Standard demurrage was assessed on cars after the second
0700 after placement on the customer's siding or after placement on a
public delivery (team track) and notification by the railroad that
the car was placed. Weekends and holidays were not cargable unless
one chargable day had accrued. If the customers track was full or out
of service thew car was"constructively placed" and the free time
began. Standard demurrage was $5.00/day (0700-0700) and after 5
days "penalty demurrage" of $10.00/day was charged escalating to
$30.00. I can't remember the time spread. Customers could enter in to
an "average agreement" with the carrier where on a monthly basis
early releases (before the first 0700) could be used a credit against
the standard ($5.00) demurrage days.

There was always much carping about demurrage charges especially
among the customers who kept lousy records. The railroad kept
excellent records. The railroad was compelled to collect every dime
of these charges or be expected to pay a hefty fine along with the
customer for an Elkins Act violation (a defacto rebate for bidden by
the Elkins act.) One of the biggest fines assessed was against Ford
and the WP for failure to collest appropriate demurrage and switching
carrages at Milpitas, CA. It was in the millions.

Merry Christmas,

Bill McCoy
Jax, FL

--- In STMFC@..., Anthony Thompson <thompson@...> wrote:

Jon Miller wrote:
Was not per diem paid by businesses if they kept the car
longer
than the assigned load/unload time?
That's called "demurrage," Jon, and there was an allowance of
so
many days to unload, without penalty to the receiving business.
Beyond
that, they would be billed for a daily charge, the "demurrage." The
per-diem charges were not directly charged to shippers or
receivers,
but were part of the railroad's cost of moving the car.
My understanding is that different types of receivers would
have
different "free-day" allowances, but that three days was a common
number. Someone on the list is sure to know more and provide
details on
this.

Tony Thompson Editor, Signature Press, Berkeley, CA
2906 Forest Ave., Berkeley, CA 94705 www.signaturepress.com
(510) 540-6538; fax, (510) 540-1937; e-mail, thompson@...
Publishers of books on railroad history

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