NOTICE OF OF FREIGHT CONCEALED CAUSES OF LOSS FREIGHT CLAIMS In the case of loss of goods due to destruction by wreck, fire or other casualty, it is the duty of carrier on whose line the loss occurred to immediately advise the shipper or consignee, in order that opportunity be given for duplicating the shipment. When such notice is given, claim for value of the property may be filed direct with the carrier giving the notice. When package freight is lost by theft or other known cause at the shipping point or at destination, it is the duty of carrier to immediately notify the shipper or consignee, in order that the shipment may be promptly duplicated and claim filed for the loss. In the case of loss by theft or fraudulent practice, it is the duty of shipper or consignee to aid the carrier in recovering the goods and apprehending or prosecuting the guilty parties. A "Concealed Loss" is understood to mean a loss that is not evident at time of delivery by the carrier, but is discovered by the consignee upon opening the package and checking its contents, as in the case of a consignment of shoes the containers of which appear intact and in good order when received by the consignee, but upon unpacking a less quantity of shoes than invoiced is found.. A concealed loss should be reported to the agent of the delivering carrier immediately upon discovery, if the appearance of package or its contents indicate that the missing goods were packed therein, and every opportunity should be afforded the carrier to make a thorough inspection. A claim for a concealed loss should be supported by the following documents: Original Destination Freight Bill. Original or Certified Copy of Invoice, showing all terms of purchase. Correspondence with shipper or carrier regarding loss, if any. Concealed Loss Form (see forms 16 and 17) or Copy of Inspector's (For Standard Form for Presentation of Loss and Damage Claims, see form 19.) When shortage in invoiced quantity is discovered in unpacking import packages, the contents of which were not examined at the port of entry, it is the practice of inland carriers to deny liability when the packages bear no evidence of having been opened and the handling from time of receipt from ocean carrier or from U. S. Customs to time of delivery into custody of Customs authorities at destination, or to consignee, is clear. When the contents of packages bear evidence of pilfery, the inland carriers will not assume the total amount of loss, unless their own record of handling justifies an admission of entire liability. In view of the opportunities for error in packing, or abstraction of goods by truckmen or others before or after transportation, the carriers are naturally reluctant to allow claims of this character, unless evidence of theft in transit is reasonably clear. Errors in packing are often discoverable by the undisturbed appearance of goods, container being packed to full capacity, or by the order in which articles invoiced were placed in the container. Abstraction from container is often indicated by disturbance of fastenings or by a disordered condition of contents. When packages remain in possession of truckmen over night, or when the packages remain in store an unusual period of time before they are opened and shortage discovered, the possibility of loss occurring during such time should be thoroughly investigated before demand is made upon the carrier. AFFIDAVITS CONCERNING LOSS FREIGHT CLAIMS Affidavits submitted to carriers in support of concealed loss claims should always be made by a person who is conversant with the facts set forth. An affidavit based on information and belief is practically of no value, and is liable to be so regarded by the carrier. Affidavit should consist solely of statements of known facts and not contain conclusions. KNOWN A "Known Damage" is understood to mean a damage that is apparent and acknowledged by the carrier at the time the shipment is tendered to the consignee. In order that questions relating to the cause or extent of damage may not arise after claim has been filed with the carrier, a careful inspection of the shipment should be made at the time of delivery and a specific notation of the damage made on the original paid freight receipt, which should be signed by the carrier's agent or his authorized representative. Should the commodity or the damage be of such nature that the extent of damage cannot be fully ascertained until the shipment is unpacked by the consignee, request should be made upon the carrier's agent for special examination. Observance of this rule will materially facilitate the settlement of the claim. A claim for a known damage should be supported by the following documents: Original Destination Freight Bill. Original or Certified Copy of Invoice. Itemized Bill for Cost of Repairs or Original Sales Account. (For Standard Form for Presentation of Loss and Damage Claims, see form 19.) The acceptance by the consignee of a damaged article does not in any way jeopardize any proper claim which the owner may have against the carrier. When goods that are shipped at a released valuation, based upon their weight, are in damaged condition at time of acceptance by consignee, each damaged article should be carefully weighed and such weight incorporated in exception notation on the freight bill, in order that proper settlement of claim for the damage may be readily effected. Damage discovered by consignee when unloading freight from car should be immediately reported to agent of carrier, or in any event before the entire shipment is removed, in order that the cause and extent of damage may be made a matter of record and, if possible, the reponsibility therefor definitely determined. REPAIRING If a damaged article can be repaired, it is the duty of the consignee to have repairs made, submitting bill therefor to the carrier with other documents in support of claim. If the damage is extensive, and cost of repairs will be large, it is advisable to consult the carrier before proceeding with repairs. Should the damage be of such nature that satisfactory repairs cannot be made, but has not rendered. the article valueless, the consignee should, with the knowledge and consent of the delivering carrier's agent, dispose of it to the best advantage, and file claim for the net loss sustained. CONCEALED AFFIDAVIT CONCERNING FREIGHT CLAIMS A "Concealed Damage" is understood to mean a damage to the contents of a package which is not in evidence at the time of delivery by the carrier, but which is later discovered by consignee, as in the case of a crate of furniture or cask of crockery received by consignee in apparent good order and breakage found upon unpacking. A claim for a concealed damage should be supported by the following documents: Original Destination Freight Bill. Original or Certified Copy of Invoice, showing all terms of purchase. Concealed Damage Form (see forms 16 and 17) or Copy of Inspector's Report (see form 20). (For Standard Form for Presentation of Loss and Damage Claims, see form 19). A concealed damage should be reported to the agent of delivering carrier immediately upon discovery, if the goods were adequately packed to withstand ordinary handling, and the material and construction of the container conformed to classification specifications. In view of the opportunities for accidents to happen in packing or in unpacking breakable goods, or in handling by truckmen, the carriers are generally averse to the payment of this class of claims unless evidence of their fault is reasonably clear. Shippers should exercise more than ordinary care in packing fragile articles, and consignees should make close inspection of such shipments when accepting them from carriers. When affidavits are submitted to carriers in support of claims of this class, they should always be made by a person who is conversant with the facts set forth. An affidavit based on information and belief is practically of no value, and is liable to be so regarded by the carrier. Affidavits should consist solely of statements of known facts and not conclusions. LOSS OR The term "Loss by Delay" is applied to losses sustained by reason of a decline in market prices during the period of delay; also to claims for expenses incurred by shipper or consignee in consequence of delay. The term "Damage by Delay" is understood to apply when freight has suffered physical damage or deterioration as a result of delay. In either case, the length of time in transit is the principal factor. If the time be excessive, compared with the usual movement of freight of the same general character, the carrier must determine whether the delay was beyond its control and, with the knowledge that actual negligence cannot be dismissed, make such restitution as the circumstances merit. What a reasonable movement of freight is depends upon its character and the circumstances in each case. Carload freight can be moved with greater dispatch than shipments in less quantity which must be handled through warehouses and transfers. Freight of the same class and in like quantities should be forwarded in the first available train, preference being given to goods of perishable character over that class of commodities in connection with which time in transit is not as important a factor in the carriers' service. Abnormal transportation conditions, due to extremes of weather and temperature which retard the movement of cars, and congestions arising therefrom, are not regarded by carriers as representing liability, provided no act of negligence contributed to the delay. LOSS OR (Con.) FREIGHT CLAIMS A claim for loss or damage account of delay should be supported by the following documents: Original Bill of Lading (if not previously surrendered to carrier). Original Destination Freight Bill. Original or Certified Copy of Invoice. (For Standard Form for Presentation of Loss and Damage Claims, see form 19.) DISPATCHING NEGLIGENT DAMAGED SHOULD BE FREIGHT OVER A carrier does not guarantee to transport a shipment by any particular train or vessel, nor in time for any particular market. It is, however, the duty of a carrier to transport a shipment with reasonable dispatch, and to promptly notify the consignee of its arrival at destination. With the knowledge that commodity prices advance as often as they decline and that consignees frequently obtain higher prices by reason of delays in transit than they otherwise would receive, carriers are not disposed to favorably consider claims based upon market fluctuations, except in the case of clearly negligent service. While the burden of proof to show that a delay is due to negligence of the carrier rests upon the claimant (a mere showing of delay does not constitute negligence); still, if the time consumed by the carrier is considerably more than the customary or normal time, the law will presume that the delay was unreasonable, and the burden of proof to the contrary will rest upon the carrier. In determining what is a reasonable time of transit for any particular shipment, the length of the journey, the character of the shipment, conditions of weather or temperature en route, and other circumstances beyond the control of carrier, must be considered. In the case of physical damage to shipment, due to delay, it is the duty of the consignee to accept the property and, in the interest of owner or carrier, to employ every reasonable means to minimize the loss. It is not a proper practice for consignee to refuse to accept a damaged shipment, if repairable or of salable value. The acceptance of a damaged or delayed shipment does not in any way jeopardize any proper claim which the owner may have against the carrier for loss sustained on account of the delay or damage. "Over Freight" is understood to mean less than carload freight with or without marks (including articles in excess of quantity on way-bill) which is found at any point without a regular revenue or astray way-bill, or carload freight not accompanied by billing. "Astray Freight" is defined as less than carload freight which has become separated from the regular revenue way-bill, and is billed to marked destination on an astray way-bill. Freight becomes over or astray through failure of shipper to mark each package shipped, or to labels or tags becoming detached during transportation, or may be due to the article being marked in error for some other consignee or destination than that for which the bill of lading provides. It is the rule and practice of carriers to forward over freight to its marked destination on an astray way-bill, and to deliver it to the consignee upon presentation to the carrier's agent of proof of ownership in the form of bill of lading, freight bill, or shipper's invoice. Inconvenience to the consignee may arise from the carrier's demand for proof of ownership of the property, but in no other way can delivery be properly made. UNCLAIMED AND REFUSED TRACING AND UNDER FREIGHT CLAIMS While the ownership of a straight consignment is vested in the consignee, the contract for transportation is made between the carrier and the shipper, who is therefore responsible for the payment of the carrier's charges and for disposition of the shipment in the event of its being refused or unclaimed at destination, whether consigned straight or to order. The Uniform Bill of Lading Contract Terms and Conditions provide that if the property is not removed by the party entitled to receive it within the free time, it will be subject to storage charges and to carrier's responsibility as warehouseman only, or it may be placed in public storage at the cost of the owner and without liability on the part of the carrier, or sold by the carrier under the conditions prescribed in Section 4 of the Bill of Lading. In case of sale, if the proceeds amount to more than the charges, the difference will be remitted to the owner; but if the proceeds amount to less than the charges, the deficit may be collected from the shipper. The carrier cannot lawfully waive any charges properly due until it has exhausted all legal means of making collection. Rules designating under what conditions and in what manner report will be made to the shipper of refused or unclaimed freight, are published in tariff form by the American Railway Association Tariff Bureau in National Car Demurrage Rules and in Storage Rules Applicable to Freight in carload or less than carload quantity stored in or on Railroad Premises. Freight is occasionally unclaimed at destination because of the inability of the carrier to locate the consignee. It is, therefore, advisable that bills of lading and shipping orders for shipments consigned to large cities include the street address of consignee or the party to be notified. Consignees should not refuse to accept goods because of damage unless the injury renders them valueless. It is the duty of carriers to transport a shipment to its destination within a reasonable time, and they should be given an opportunity to perform this service before a tracer is instituted. The tracing privilege is accorded by the carriers voluntarily, and it should not be abused by requesting them to start a tracer on a shipment before the time required for its transportation has elapsed, or until the consignee has given advice of its non-receipt. If a shipment is correctly, legibly and durably marked and securely packed, much will have been accomplished toward expediting its movement. In requesting tracers, complete information should be given to the carriers. Requests for tracers should be filed with the agent at point of shipment. (For specimen of Form for Tracing Shipments, see form 22.) The careful examination by shipper of classifications and tariffs and preparation of bills of lading and shipping orders in accordance with description of commodities, packing specifications, rates and weights provided therein will aid materially in the assessment of correct charges and proper collections from consignee. Indefinite or illegible shipping instructions are the frequent cause of overcharges and OVERCHARGES undercharges. Bill of lading and shipping order should be carefully examined before delivery to the carrier, and receiving clerk of the carrier should not accept such documents when improperly or illegibly prepared. When a shipment is correctly described on the bill of lading and shipping order, it should be billed correctly and delivered the consignee at the correct rate; but if improperly described the error, unless detected, will follow the shipment to destination, and the consignee either pays an overcharge or the carrier is outstanding an undercharge, thereby incurring expense and inconvenience to both. CHARGES- |