Excerpt from Freight Rates, Official Classification Territory and Eastern Canada
The system as first adopted in 187 6 made the New york-chicago rates the basis for other rates between the Atlantic Seaboard and the Central West. Points in Cen tral Freight Association Territory took the percentage of the New york-chicago rates that distance from New York determined. A point 60 per cent of the New York Chicago distance from New York, for example, took 60 per cent of the New york-chicago rates.
In 1879, however, the system was modified, in so far as points east of the indiana-illinois state line were concerned, so as to allow for terminal charges before computing the percentage of the New york-chicago rates.
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