El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-08-17
EXPRESS COMPANIES SIDE
Superintendent Case of the paCifi c
Company Writes Commissioner
SforeV a effer
Storey a Letter.

No question that has come up in re
gard to the application OF the new wal
revenue law has caused so much con
troversy as that of the payment OF tn
stamp tax on express receipts. In al
such mooted questions the HERALD l:
disposed to take an Independent stand
and to present both sides impartialll
| in it's news columns.
AS we have not heretofore published
| full and complete statement Of the
express companies side of the dispute
we make no apology for printing In
full the following letter, written by
Superintendent .. w. Case of the Pa
ciflc Express company, whose mead
quarters are at Fort Worth, to Hon.
l.. j. Storey of the state railway com
mission. The letter is reprinted from
the Dallas News. 1t is an admirable
summary of the whole case from the
side of the companies.
Hon. l.. j. Storey. commissioner.
Austin, Tex.-Dear sir: | write to &C
knowledge your favor OF July ~, ad-
dressed to Express companies doing
business in Texas" in which you state
that agents of such companies have re-
fused to accept and transport express
matter rendered to them for trapspOr-
tation, unless the shippers should afflx
and cancel the stamp, required by re-
cent ACT Oh CONGRESS- bHhb III SoLAC Ii
stances packages are received and ex-
ira charges made to cover the expense
of the revenue stamp. You also warn
express companies that your commits
sion holds that under the revised stat
uteS OF Texas, express companies are
required to receive and transport eX-
press matter rendered to them and to
give a receipt or bill of lading there
for: that. under the act of congress.
they are required to give this bill of
lading, pay for, affix and cancel the
stamp: that any express company that
requires1the shipper to pay for this
stamp in addition to the regular tariff
charges in force is to that extent guilty
of extortion and liable to be prosecut-
ed and a penalty of $500 for each Of
tense collected of them.
wish to say. first, thatthe practice
of the express companies in Texas
under which the shippers have been
required to pay for the stamp affixed
to the receipts given for their ship
meuts is in vogue in every express
office in the United States under in
structions from the respective manage
meuts of the various companies: that
such instructions have been given un-
der the advice of eminent counsel in
New York city. L have been assured
by the railroad commission of Texas
that it is their desire and intention to
make regulations which shall be eqult-
able, as between the express compa-
MES and their patrons, and therefore,
| feel at liberty to call your attention
to the following facts which will tend
to show how impossible it would be
for the express companies to make a
profit on their business under existing
rates, if such companies were required
to paw the revenue tax, imposed by
the federal government for the expense
of the war between the United States
and Spain.
will also before reciting the facts
alluded to, call your attention TO the
fact that during the civil war and sub
sequent thereto the tax paid through
the express companies was paid by con-
signees; that for every receipt for a
shipment given by consignee there
was q tax of 2 cents: that such consig-
nee paid for such stamp aud Cancelled
it, such payment being in addition to
the charges for the service performed
by the express companies. There ls
no question but that the express COM
papies believe that it was not the in
tention of congress to make the ex-
press companies pay this tax. 1t would
be out of proportion with the taxes
paid by all others who are taxed: for
instance the tobacco manufacturer,
who pays very largely, is enabled to
raise the price of his tobacco, so that
the consumer shall pay the tax. The
same prevails with regard to the brew
ers of beer, the manufacturers of me-
dicine and in nearly all other cases,
where the tax has been imposed. In
the case of the express companies,
while there probably is no question
that they would be entitled legally to
for hnr nj
meeting the tax. they are in many
| states subject to the control OF the
commission, in the matter of rates,
and the consent for such raising OF
rates to meet the tax must first be OBJ
| tanned from the railroad commission.
The great bulk of the express bust
ness is in small shipments, and an ex-
| ira expense of / cent on each shipment
in many cases not only eats up all
there is of profit in the transaction,
| but absolutely entails loss. 1t Is
true. the railway companies have
sgre ed to furnish the tax stamp on all
original bills of lading issued by them
but while the great bulk of the express
| business consists of small shipments,
| with small charges, it is estimated that
the average freight shipment by rail
! road companies is four tons. A tax OF
| | cent on such an amount would not be
| felt.
The express companies carry great
many packages, on which their earn
ings are but 10 cents per shipment
| OF this 10 cents 80 per cent at leas
goes to the railroad companies and
from 43 to Al per cent is paid for oper.
| atipg expenses, making a total of 90
per cent. This would, if we take 9;
per cent as basis, leave profit of bu
| per cent on such shipment. and it il
my understanding that profit equal
| ing per cent has not been made b,
any of the companies since 1892, but
assuming that such profit might be
made, this would leave for the service