The Railway Clearing House was established in 1842, various railways being parties to its foundation. In 1850 the Railway Clearing Act gave it a definite legal status, enabling it to sue a debtor company in its own name. The primary object of the Clearing House was to facilitate the sending of through carriages and wagons from one railway system and to provide a method for the division of through rates among the companies concerned. The Clearing House provided a machinery for adjusting the complicated debits and credits arising out of through traffic. The work of the Clearing House is divided into three departments: the Secretarial Department, which consists of a General and a Mileage Section, the Merchandise Department, and the Coaching Department. The General Section of secretarial department is concerned with the administration and organization of the Clearing House. Receipts from the through carriage of merchandise are divided on a mileage basis after payments for terminal services are deducted.