New-York tribune., 1907-06-29
AFTER EXPRESS GAINS.
Bankers Say the Companies Are En-
croaching on Their Field.

WASHINGTON June 2S-One Of the most i'm
portant cases VET filed with the Interstate Com
rnerce Commission under the new railroad rate
law was presented to the commission to day by
the American Bankers Association. In brief. the
complainant alleges that thc express companies
of the United States. through their power and
facilities as common carriers. arc usurping thu
prerogatives of banking associations and at the
same time are employing the capital of the
banks of the country in the conduct of their
business It is alleged that the operations of
the express companies in the conduct of their
exchange business IS seriously detrimental to the
interests of the banks. and that the use of the
interstate facilities and the relations which the
express companies have with tho railroads
able the companies seriously to discriminate
against regular commercial operations of bank
Ing institutions.
Several weeks AGO officials Of the American
Bankers Association conferred with members
Of the Interstate Commerce Commission as to
the advisabu;ty Of instituting formal proceedings
against the express companies. A draft of
complaint was submitted to the commission. but
no determination was reached at that time as to
its filing. Since then the complaint has been
made by the commission. and to-day it formally
placed on file L is directed against the
Adams Express Company. the United States Ex-
press Company the American Express Company.
the Pacific Express Company, Wells. Fargo &
Co. the Southern Express Company and the
Great Northern Express Company.
The American Bankers Association asserts
that it is an association Of 7.500 banks whose
business is. among other things. the buying and
selling of domestic and foreign exchange and
conducting ether commercial transactions in
volvirg the transportation OF money or credits
u IS alleged that the defendant companies
engaged in dealing In exchange. both foreign and
domestic, in every form. and that the defendants
have enCToaChcd on this recognized business Of
the banks Ivy buying and selling foreign money
and transferring money by cable and by mail
thus conducting a general financial business. II
is alleged that the defendants are competing un-
fairly and in a discriminatory way with the banks
and subjecting them 10 undue prejudice and
disadvantage, because the defendants, as com
mon carriers, are able TO transport moneys and
credits at far lower rate than is paid hy the
banks and that they unjJstly and unfairly
using their power as common carriers 10 get
away from the banks the exchange business
In accomplishing this result il is alleged
further the defendants compel the banks to
make unnecessary shipments Of money in inter
state commerce over the lines OF the express
companies II IS asserted. also. that in the or
dinary course Of their business the banks are
forced T. cash express money orders and GRATIS
without the charging of interest. thus supplying
to the express companies ia" capital to compete
with the banks in tho transaction Of their fusi-
ness This situation. IL is said. Is brought about
because the express companies do not keep on
hand at their various Offices sufficient amount
OF money 70 nee, the drafts and orders sent
over their lines.
II Is maintained that these facts constitute
violation Of the interstate @, mmerCe act and the
complainant association requests the Interstate
Commerce Commission 70 take such action as
viii prevent the defendant companies from Ni"-
lqring the law and afford the complainant AIDE
quate protection against tha alleged UNFAIR ana
discriminatory operations OF the express com
panes.