New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-05-06
ORDER TO REDUCE RATE
First Use of Commissions Nezo
Poscer against Express COMPANY.

washington. May 5-The Interstate Commerce
Commission has rendered its first opinion in case
involving the reasonabieness of an express rate
The case was brought by the Society of American
Florists. who alleged that the rate charged Wv the
United States Express Company on cut eo,rars
from New Jersey POINTS to New York CITY was
unreasonable, excessive and unjust This rate tiil
July, 1905. was 90 cents a hundred pounds and at
that time was raised to 81 hundred pounds.
Commissioner Franklin Lane. who delivers the
opinion Of the commission holds that the rata
should be reduced 10 60 cents a hundred pounds
The express company defended its increase NJ ian
per cent IN us rate by arguing that the delivery
service for cut flowers in New York was much
more expensive than for other articles and that 81
could not Increase its a sufficient amount IN
meet the expense OF this special ser,Joa ,,-,..,
largely increasing the total rate because OF ITS
contracts uhder which 1t is required to paw A per
rent Of its gross receipts the raiload conanies
From the opinion of Commissioner Lane Il nm
pears that the United States Express Cornnenv
has contracts with the Delaware Iackayanra
Western Railroad Company by which the ra,Iroaa
company receives 40 per cent Of the total GROSS
receipts Oh the express company; that the service
rendered by the railroad company is no eraeter o.
different unoer me new rate OF 81 than It was under
the old rate OF 90 cents; that the railroad
now receives 10 per cent of the 81 rate namely AZ
cents per hundred pounds; that prior TO Nav |
1896 the railroad company received only one-halt OF
SAID amount Tor the same service: that the nor
centage Of gross revenue paid by the exnress co,o
pany TO the Central Railroad Company of New
Jersey is S per cent and to the Iehigh Valley Rail
road Company 20 per cent: that the United states
Express Company employs agents at the po.nts n,
origin mere concerned. who are, generally speaking
paid for their services in gathering billing loading
unloading and delivering express matter with
percentage Of the gross receipts at such offices
when percentages range downward from 90 per
cent '
The opinion continues:
Elaborate -ah ba,,a
PENDANT tending 70 prove that the rate Of 80 cents
!. az M % owing TO the percentage which
% Sd II Paia 70 its agents and the Of delivery
be adduced that the present rate Of 81 Is unrennuo
AeISuse' ana IL may well be said that from an
modify or class Of commodities trsnsporteS bv ths
In order 20 s5ii i result could be arrived at.
SSonpaHy gives an especially prompt service 10
not done oy all express companies or that # does
awning with respect TO this trafic which trans
ta!n classes OF perishabie freight But admitting
sboyA az eAlra return should be made over and
geleFay Transported by express, no reason has
pay should be doubled, excepting tRat the Guess
coI!Pahy mas to pay double the amount under its
panE-a necessity or condition which we cannot
recognize as controlling as TO rates.
Inc defence Of this rate is not at all unlike tba,
%nlen railroad might make were It to attempt to
was based upon contracts made with ira hond
hoderS by which the latter were entitled TO receive
amount might be Neifber tbis Iie fesnItihg
eD-I Is nave given sanction to any such ineQuitabe
a+ l- u+ -t method Of rate adjustment.
express company let US assume 5o1cent rate ont
"ttt1ch the railroad company receives 221a
company under its contract. There remains 275S
es - per cent OF the gross which is 10 cents.
ms leaves the express company 171a cents out OF
cry and It's general expenses Of operation manage
IS insfcientp TG MT ms ma cents we VIII assume.
sd 90 in-Tead Of 90 Cents and his H 10 Genus
can be appropriated BY the company for the service
which 1t renders apart from railroad carriage ID
To such suggestion the prompt answer of the
cni rate we are compelled TO pay q cents 20 the
IallFoad company and y cents to agent leaving
York a,?I delivery and our general expenses This is
and cnI Ely nSuGienf to meet general expenses
sa ts o rate that the margin over and above
agent VIII at least compensate us Tor our New
YORK delivery service and our general expenses"
reason Of the contracts which the express com
Wiz mas mace t with It's agent and the railroad.
railroad and the agent as the services they render
An express company cannot justify a rate which
N comparison with other rates, is excessive and
that IS exceptionally expensive where the Burden
Of the rate charged therefor. falling upon the ship
per Increases an already sufficient return to the
reasonable amount for the service which It gives
1LIU inns service belng parity rendered by Its
road. II cannot Justify rate by the production OF
us own contracts made with the agent and the
To pay the agent a commission instead of a sal
tTy, ana TO pay the railroad a percentage instead
or q lxed amount. or a mileage. tonnage, may
Pc Practically, a very satisfactory arrangement
$500 ne express company ana the railroad and
the agent but from the standpoint Of the public
t ~ an arrangement cannot be held TO support
We Feasonableness OF any rate which the express
company may choose 10 charge. What If the ex-
press company had contracted with its agent to
he rros ~ Per cent o. al gross receipts or With
:. ouch contracts are entirely between the parties
themselves They are not in the nature Of fixed
upon sliding scale dependent entirely upon the
rate And II would be against the highest public
pohcy TO permit rates to be controlled by such
contracts, because such practice must inevitably
Tend 20 promote the increase of rates on express
service. The railroads could through such con-
tracts control the rates 70 be fixed by the express
70 increase rates so long the traffic would move
tlereon for thereby their portion OF the receipts
under the contract would be increased.
The order Of the commission requires the United
States Express Company TO cease charging the 81
rate after June 10 and directs the company on or
before that date TO put in 60-cent rate from Chat
nam and sOmerville. y. J., 10 New York City a
,z-eent rate from Allentown. Penn, 20 New York
N'F' and from Philadelphia Hillside and Dor
le1ceton. PENN 90-cent rate. The order also
cHects The reduction rates on empty flower
DoAes from New York City 10 the points named TO
Inc merchandise rate Of 30 cents a hundred pounds
EVANGELICAL CHURCH APPOINTMENTS.
Philadelphia, May 5.-Among the appointments
made by the Atlantic Conference OF the Evangeu-
cal Church. which has been in session I'm +hts CITY
the last few days. he foIIovyipg.