_Editor's Note._--_A circular letter, dated, 7th January,
from one of the best organized trade associations of Canada,
indicates that meetings are to be held soon to consider the
application of the proposed new freight classification (No.
17)._
THE latterday high cost of transportation so vitally affects the
salespower of the Company's department stores (as well as other
wholesale or retail stores in Western Canada) that favourable
groupings of certain classes of goods under the proposed new freight
classification (No. 17) are considered important in view of the
Company's great problem of distribution.
While the new schedule is under consideration, H.B.C. traffic men
will see the advantage of working to secure a spread of _two classes_
between less-than-carload and full carload ratings on drygoods. It is
reported also that every effort will be made to convince carriers that
certain lines of drygoods should be listed separately or in greatly
restricted groups, instead of being carried, as at present, under
extensive groups. It is apparent that an important saving for H.B.C.
stores would result from such re-classification in view of the 35 per
cent. difference between first and third class and first and second
class ratings.
Under the proposed new freight classification (No. 17), certain
drygoods shipped in carlots will take a _second class_ rate. The
present classification (No. 16) on such drygoods gives no advantage in
rate for carloads.
Why classification No. 17 (under consideration) proposes to allow
a difference of only one class between L.C.L. and carloads of this
commodity is not clear, inasmuch as for other lines of goods a
difference of _two classes_ is allowed when shipped by the carload.
Drygoods certainly should be entitled to take _third class_ rate in
carloads.
Furthermore, both the present classification (No. 16) and proposed
classification (No. 17) arbitrarily "lump" a great number of lines of
merchandise in a special class without giving a special carload rate on
them (see page 77, item 76, No. 16; page 97, item 60, No. 17).
One of the aims of the proposed new classification (No. 17) is to
place a reasonable restriction on the indiscriminate mixing of
merchandise which have a basic difference of origin. Accordingly, to
get the greatest advantage from this classification for the drygoods
business, those whose interests are affected will naturally insist
upon a reasonable minimum weight for carloads--say 18,000 pounds. This
would probably mean eliminating, of course, drygoods "not otherwise
specified" and substituting certain lines of drygoods which would be
entitled to mix and be eligible for _third class_ rate in carloads.
A few headings are here suggested for such specified lines:
ALL KNITTED GOODS--Wool or cotton, such as underwear (men's,
women's and children's), hose and half hose (wool and
cotton), sweaters, toques, heavy wool gloves. These should
be allowed to mix and make up a carload.
CLOTH--and garments made from same.
VELVETEENS, VELOURS, cotton velvets and cotton comforters,
should be allowed to mix with cotton piece goods.
Blankets and Boots could not mix with other lines.
Concerted effort on the part of shippers should result in these
reasonable, logical and necessary changes being made in the proposed
new classification (No. 17). In the case of the Company, the adoption
of suggested amendments along above lines would result in marked
savings on freight charges for at least three of the four larger H.B.C.
stores.
It may be said that the Company in some instances could not make up
carloads of its own merchandise. Granted that this is possible, there
are a large number of forwarders in every city of importance and it is
not difficult to have smaller packages included at carload rates.