Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-06-28
COMPLAINT OF THE BANKERS
OBJECT TO MONEY ORDER BUSI-
NESS OF EXPRESS COMPANIES.
Claim That the Latter Are Acting in
Violation of the Interstate
Commerce Law

The bankers Of the United States are seek
ing. through the Intervention of the inter-
state commerce commission, to prevent the
express companies from doing a money or
der business. which, they claim belongs
to them. They put forward the claim that
the express companies. being common car
riers by the terms of the interstate COM
merce law, should be forbidden to go out
of the line of their common carrier activity
and into competition with the banks
The interstate commerce commission to-
day received a petition from the American
Bankers Association. complainant, against
the American Express Company. the United
States Express Company. the Pacific Ex-
press Company. the Adams Express Com
pany, Wells. Fargo & Co.. the Southern Elk
press Company, and the Great Northern
Express Company. asking that these COM
panies be restrained from carrying on
money order business for reasons set forth
in the petition. The petitioner claims to
represent 1900 banks and banking lnsttu-
lions in the United States.
The petition recites that the express COM
panies are common carriers and subject to
the interstate commerce law that they are
departing from the purposes for which they
were organized and from their established
duties and proper functions as common car
riers of property and are engaged In carry
ing on business of dealing in exchange
both foreign and domestic. in the form Of
money ORDERS, letters OF CreUlt, DOth travel
ers' and commercial travellers checks and
drafts. which the bankers declare have al
ways been the proper and legitimate and
long-recognized business and functions OF
the banks and bankers throughout this
country and OF the banks and bankers who
are members of the association which is
bringing this action against the express
companies.
1t Is alleged that the express companie
are unjustly and unfairly competing with
the banks and bankers represented in the
association, and subJecting them to undue
and unreasonable prejudice and disadvan-
tage in trying to get this business away
from them. They claim that the express
companies have failed. especially in small
towns. to keep on hand enough cash for the
payment of money orders checks and
drafts issued by them and the holders OF
such drafts etc. are compelled to have
such paper cashed at the nearest banks
and that they are advised by the express
companies to do so. and the bankers by
reason of their relations with their GUS
toners are compelled to cash such paper.
Because of this manner of doing business
il Is alleged the express companies are able
to undersell the banks in doing this class of
business. At the same time the bankers
business of transporting money to the ex-
press companies and to pay them for that
service.
The petitioner asks that the commission
shall compel the express companies to de-
sist from further doing this kind OF bust
ness in violation of the interstate COM
merce law. Mr.. John 8. Miller and Mr..
George Packard represent the Bankers
Association of this action.