Page images
PDF
EPUB

the carrier. A copy of the freight invoice with the draft attached will be given to the agent of the carrier who will then attach original receipted freight bills to the invoice copy and draft and deposit in his bank for collection.

When the corresponding bank presents the draft for payment, the cashier will check the amounts of the paid freight bills against a copy of the freight invoice copy sent to the office by the superintendent at the time of payment which copy should be in possession of the cashier before the draft is presented.

A triplicate copy of the freight invoice copy should remain in the book kept by the plant superintendent.

If the cashier finds the amounts of the paid freight bills to correspond with the amounts listed on the invoice copy, he will draw a check in payment of the draft, make the proper entry in the cash book, attach the paid freight bills to both copies of the freight invoice copy and turn them over to the traffic department or to the invoice clerk of the cost department, where no traffic department is maintained. This clerk will then enter the total amount of the freight invoice copy in a freight and drayage register to be provided for the purpose. This register will show the date of the freight invoice copy, its number, the number of the draft, name of the carrier, the amount, and then columns for the accounts having the greatest number of charges and a miscellaneous column into which all distributions to accounts not having special columns will be posted. Special columns can be provided for materials and supplies, green produce, entry lug boxes and canned goods sales. Distributions to all other accounts can be made in the miscellaneous column.

The two copies of the freight invoice copy can be used by the invoice clerk for invoices and will be put through on the invoice transmittals in the regular way and already discussed.

In the material and supply account will be posted all distributions of freight and drayage on cans, bottles, caps, lye, sugar, salt, spices, vinegar, etc. In the green produce column will be the distribution of all freight and drayage on green produce, fruit and vegetables. In the lug box column

will be posted the freight and drayage on all lug boxes in and out of the various plants.

In the sale freight column will be the distribution of all freight and drayage bills on canned goods sales and in the miscellaneous column will be posted the freight and drayage charges against all other accounts.

All freight and drayage bills paid in the usual way and not coming through on freight invoice copies will be handled by the invoice clerk in the same manner as any other invoice. The total of the amount column in the freight register must agree with the total, of freight and drayage for the month as shown by the invoice transmittals.

In posting the distributions to the various columns and accounts the account and plant code will be used and at the end of the month the total of each column will be recapped directly under the closing amounts for the month so the accountant will experience no difficulty in charging the proper account and plant with its just proportion of the freight.

Where there is but one plant the procedure will be more simple. The freight bills can be listed on the freight invoice copies in the same manner but instead of a draft being given in payment for the bills they will be paid by an ordinary check. Then in making the distributions in the freight register, only the account need be shown in the code.

Assignment No. 3
Freight Claims

(From Traffic Red Book. Copyrighted by Traffic Red Book Publishing Co., 150 La Fayette Street, New York City.)

One of the most prominent causes of damage to merchandise freight is the inadequacy of packages, or containers, either in construction or material, to stand the several handlings they must receive by cartmen and warehousemen in their movement to destination.

The payment of claims is simply compensation for the indirect loss the business must sustain.

Shipment should be protected that damage will not result from ordinary treatment they must be expected to encounter in transportation. Packages should also be secured that

pilfery may not easily be committed without evidence of the act.

The proper packing of freight is a form of insurance to which the consignee is entitled and which he should require at the hands of his shipper.

In the loading of carload freight by the shipper the following precautions against the use of defective or unclean cars should be taken:

Examine interior of car for any defects of roof, sides or floor that might cause injury to the freight loaded therein. Remove protruding nails and cover bolt heads if liable to come in contact with and damage the freight.

Reject cars that cannot be suitably conditioned without mechanical or other extensive repairs.

Stow freight securely, blocking or bracing such articles as are liable to shift in transit.

If freight is of a nature liable to injury by rain or snow, and car doors are not perfectly tight, have space in front of doors or place batten around them.

Marking Goods: To insure prompt and safe delivery of goods, it is required by carriers that the shipper plainly, legibly and durably mark each and every package, bundle or piece of less than carload shipments, showing the following information:

Consignee's name and bill of lading destination in full.

When consigned to a place of which there are two or more of the same name in the same state, the name of the county must also be shown.

When consigned to a place not located on the line of a carrier, packages should be marked with the name of the station at which consignee will accept delivery.

If shipment is consigned "To Order of Shipper," the words, "To Order" or "Order Notify" should invariably be shown on each package.

Marking the packages with name and address of shipper, preceded by the word "From" is of great assistance to both shipper and carrier when shipment becomes astray or is unclaimed at destination by the consignee.

Marking should be by brush, stencil, crayon or rubber stamp. When label or tag is used it should be securely

fastened and in the case of pieces or bundles of metal, tags should be fastened by wire.

All previous shipping marks must be removed or obliterated.

These recommendations are intended to insure the identity of owners under all circumstances and to prevent confusion with similar shipments at transfer points and destination and should be carefully observed by the shipper.

Receipting for Freight: The consignee should be very careful to see that every package or piece of freight receipted for is delivered by the carrier. It frequently occurs that through carelessness, or oversight, clear receipts are given for freight that actually is not received, or is in bad order, and in this way disputes arise in the settlement of claims with the carriers. When packages check short, or are in bad order the consignee should be careful to have the carrier's agent make specific notations of the shortage, or bad order, on the freight bill, thus avoiding disputes and insuring prompt settlement of claims.

Causes of Delay in Claim Settlement: The prompt and equitable adjustment of claims is as essential to the reputation of the carrier as it is desirable to the claimant and when settlements are unreasonably deferred, one of the following causes may generally be found responsible:

Omission on part of claimant to submit complete documentary and other information necessary for an intelligent consideration or verification of the claim without extended investigation or correspondence to obtain material facts.

Shipments moving from, or to distant points, which require claim investigations over the lines of several carriers before the question of liability, or measure thereof, can be properly determined.

Claims based on shipments which have traveled over two or more lines are liable to require more time for complete investigation than claims on local shipments, but, as nearly all carriers have subscribed to rules and agreements governing the division of responsibility in inter line claims, the settlement with claimant can and should be made immediately the liability of the carriers is established.

When it becomes apparent to the claimant that a claim is being unnecessarily delayed, he should insist upon a

settlement and it is the duty of the carrier to comply with the demand or explain the need of further time.

As is true in the premature tracing of shipments, the undue tracing of claims tends to burden the carrier without accomplishing the results desired.

Claims Declined: When a claim is declined by the carrier, it is the duty to state clearly the grounds upon which the declination is based.

If the decision does not prove acceptable to the claimant a re-statement of facts, together with any documentary or other evidence not previously submitted should be made. Disputes between claimant and carrier generally arise from a misunderstanding of the claim as presented, or the law governing the case. When a claim is declined it is the practice of the carrier, when so requested, to return to the claimant the papers which he filed in support of the claim. Otherwise all papers in declined claims will remain in the carrier's files.

Record of Claims: In acknowledging receipt of a claim, the carrier furnishes a claim number under which all documents and correspondence pertaining to that claim are recorded and handled and it is of great assistance to all concerned when claimants refer to this number in subsequent correspondence relating thereto. It is also desirable for claimants to record their claims under their own claim numbers and cancel such records when settlements are made.

Surrender of Bills of Lading and Freight Bills: It is sometimes the case that a claimant objects to filing the original bill of lading or the original freight bill in support of his claim, feeling that the carrier is demanding unnecessary evidence upon which he can secure redress.

This, however, is not the case. The original bill of lading and freight bill, besides immediately establishing the right of claimant to prevent and collect the claim, bear reference or notation of import which are not readily found elsewhere. The possession of these documents also serves the carrier a form of insurance against payment of a duplicate claim. Claimants should retain copies of important documents submitted in support of claims. In case the claimant is unable, for any reason, to provide the original bill of lading

« PreviousContinue »