The Sun.
London, England, 1867-08-12 00:00:00

The War of the Express Companies.

(From the Round Table.)
Few people who have not had special opportu-
nities for examination are aware of the magnitude
. .

of the business transacted by express companies in
this country. From small beginning, going back
to the time of canal-boats and stage-coaches, this
business has grown until now it extends over the
continent, and is as übiquitous as the post-office
itself. There is not a village in the country,
whether in the East, the South, or the West, which
has not its express office ; and packages of large
and small dimensions, of great or little value, may
by their agency be distributed with certainty and
despatch to any point, even in the remote settle-
ments of the newest territories, and, for aught we
know, to the towns in our new acquisition on the
shores of l3ehring Straits on the North Pacific.
During the war the express companies were called
into request in every hamlet in the land, to carry
to the soldiers in the field the thoughtful contribu-
Voitree inspired with the
of the affections, and the good Samaritan supplies
of the Sanitary Commission wereoeffectively trans-

ported by them to the points where they were mos

needed for the relief of suffering.
The stimulus thus applied gave to all the express
companies enormous gains. After distributing in
dividends sums that to the uninitiated would appear
fabulous in the extreme, the stock of the companies
was quadrupled by a new capitalisation, and the most

stringent rules and treaties were made between the

companies to avoid competition among themselves,
and to insure unity of action in the event of any

outside opposition.

The National Bankers' Express Company was
projected, and as it threatened to deprive the old
companies of the very lucrative portion of their
business which consists of the carriage of packages
of specie, bank notes, and securities generally, it
was considered desirable to crush the project in its
infancy. Tnis was effected by purchase. Hardly,
however, had the National Bankers' Company been
absorbed when a new opposition took its place.
The Merchants' Union Express Company at once
took the field, and occupied it with a great deal of
energy and determination to succeed. For several
months during which it has been in operation it has
succeeded so well in establishing its popularity with
the public that it has done more than a fair share of
the express business. To be sure that business has
not as yet been profitable to the stockholders, but
the new company has not suffered in the competi-
tion as much as the old ones.
The course of the old companies towards their
new rival has been marked from the outset by a
spirit of intolerance of competition Which clearly
indicates a determination on their part to erec-
themselves into dangerous monopolies. But it is
too late in the day to bring forward arguments in
favour of competition or against monopolies ; an
intelligent public will require neither. The ques-
tion at issue is whether the old companies own a
monopoly of the express business, or whether, like
every other calling in this country, it is open and
free to fair competition.
The Merchants' Union Express Company has
been established upon the co-operative system, which
is now attracting so much attention in England and
in this country. The stockholders in this company
are mostly merchants who pay out large sums
yearly for express freight, and they have adopted
this plan in order to reduce what they conceive
to be .the exceesive charges of the old companies.
Of course, the old companies have a perfect right
to take all proper measures to retain their busi-
ness ; but we think that the course they have
determined on for that purpose is not only unfair
in itself, but that it is, as a matter of prudential
foresight on their part, a mistake. It is true
that the presidents of the old companies deny
that they have instigated the legal proceedings which
have been commenced for the purpose of winding up
the Merchants' Union Company. It is probable that
the assertions of these gentlemen are correct, but the
public will still believe that some one interested in
the old companies is at the bottom of the:proceeding.
The nominal plaintiff in the action asserts that he is
the owner of fifty shares of 'Merchants' Union
stock, and seeks to dissolve the company in order,
as lie says, that he may get his money back. His
money which lie aims to save amounts to about
$1,500, and yet it is notorious that the exponses of
the proceedings he has instituted already amount
to many times that sum ; and should he succeed:in
dissolving the company he and every one else knows.
that he would never realise his money by such a
success. Here, then, is an example of the old
adage of throwing good money after bad with a
vengeance. It has been asserted in a card of the
attorneys of the Merchants' Union Company that the
gentleman who has brought this action a.gainst the
company was paid $1,700, by persons in the interest
of the old companies, to bring the suit. Although,
since the publication of that card, Mr. Water-
, bury, the personalhtfiet.it to, has mated an answer