To All Common Carriers by Motor Vehicle Subject to Section 223 of the Motor Carrier Act, 1935

George B. McGinty
Interstate Commerce Commission
21 March 1936

March 17, 1936.

Notice

Section 223 of the Motor Carrier Act, 1935, provides in effect that common carriers by motor vehicle may not extend credit in collecting transportation charges due on shipments of freight which they have transported except under rules and regulations prescribed by the Commission.

Pending determination of proper rules and regulations governing the extension of credit, the Commission, by order, copy of which is attached, has authorized common carriers by motor vehicle to extend credit in the collection of transportation charges for a period not exceeding 30 days.

Particular attention is directed to the requirement in the order that the carriers shall, before extending credit, take precautions deemed sufficient to assure payment of the freight charges within the credit period, such as examination of the shippers’ credit ratings or the obtaining of satisfactory surety bonds.

Carriers are not required to extend credit. However, to prevent unjust discrimination or undue preference or prejudice, the period for which credit is extended by any motor carrier should be the same to all receivers of freight who give satisfactory assurance that the tariff rates and charges will be paid within the credit period; that is to say, credit may not be extended by a motor carrier for a given period to one and for a different period to another receiver or shipper of freight, where the credit standing or other circumstances are determined to be substantially similar.

[seal] George B. McGinty, Secretary.
[Filed, March 20, 1936; 12: 02 p. m.]