Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-12-10
Railroad Commission Forces
Them to Position Where
They Must Defend
SCHEDULE AS BASIS
Commissioner ketchum's Plan Will
Now Compel Express Concerns to
Give Information to the commis-
sion - Hearing On in Des Moines to
Decide Question Of Ratees.

Special to Times Republican.
4 Des Moines, Dec 10.-When the rep
resentatives of the big express COM
panies came together today before the
railroad commission they were con-
fronted with concrete proposition
from Commissioner ketchum as a
accordance with the law enacted by
the last legislature. When the COM
mission met a couple of weeks or more
| ago to take up the matter, tho the ex-
press companies had all been given
ample notice, none Of them could give
the commission any concrete informa-
ton on the matter of rates, except
that in a vague sort of way they
thought their rates at present were
about right.
Today when the commission met to
! take the matter up again Commissions
er Ketchum suggested that the freight
| classification made by the railroad
commission with the relative rates for
various classes OF freight be taken as
1 the basis for working and that the ex-
press rate be a certain multiple of this
freight rate, probably about three
times the freight rate. The other COM
missioners approved the suggestion
and it is suspected that the scheme
back of it was to make the express
company Representatives fish or cut
bait.''
The companies were rather disposed
to allow the commission to stumble
about in as much darkness as possible
on the question of rates. Commission
er. tKetchum has been, looking into the
matter Of express rates in Iowa. The
express companies publish tariff
sheets" giving the exact rate from ev-
cry station on their line to every other
station. These rates are to all intents
and purposes governed by no law ex-
cept that they are fixed as high as
the traffic will stand" The express
companies make no difference or dis
tinction in the kinds of goods they
handle. Everything other than cur
rency or diamonds is carried at the
same rate. A box Of cut glass and a
threshing machine casting are all
CldSSeu DIS IleHCluHulSS 6Llu llCu
at the same rate.
Commissioner Ketchum's PROPOSE
tion briefly is to adopt the classilica-
tions made by the commission for
freight. Goods easily damaged or
goods that are bulky and take up
great deal Of room are classed as first
class, and according to the bulk and
weight and breakable character of the
goods they are divided into four class
es. Those things such as coal that
are not easily classed with any of
these four are taken care of by them
selves in special Commodity" rate
For distance of 100 miles under the
| freight rates of Iowa the rates are as
/ follows:
| Freight rate 100 miles, 1st class
l$.24; End class $50; 3rd class, SIG;
4th class, $12.
Suggested express rate three times
greater, 1st class, s.72; End class, $50;
3rd class, s.4S; 4th class. SO.
Present express rates about 1st class,
81 90; 2nd class, $1.00; 3rd class, $1O0;
4th class, $1.O0.
1t will be seen that on goods that
would be sent as first class this
scheme would amount to reduction
to 72 per cent of the present express
rates. on second class to 60 per cent,
on third class to 4S per cent, and on
fourth class down to 36 per cent of the
present express rates These figures
Mr. Ketchum claims are only approxi-
mate. He is not sure that the rate
should be three times the present rail-
road freight rates. Possibly two and
half times the present freight rates
would be sufficiently high. But since
a large class Of goods would go at
second, third or fourth class rates,
three times the present freight rates
would amount to considerably less
than a reduction of one-fourth off the
present express rates. On fourth
class goods it would amount to nearly
two-t thirds off the present rates and on
third class more than half off.
It is not improbable that the COM
mission may decide to put in this
plan as means of testing it, fixing
the rate at three times the present
freight rates and using the freight
classification with possibly some few
notifications The commission pro-
poses to give considerable attention
to the matter of how high the rates
should be- The scheme of Commits
sioner ketchum gives only founda-
ton on which to work. The question
of how high the rates should be in
cludes the question of what capital
ization the companies ought to be al
lowed to pay dividends on. For in
stance, the Adams Express company.
some months ago distributed 200 per
cent interest bearing dividend. 1t is
claimed that this represented profits
that have been invested in betterments
and property and was entirely legiti-
mate and only fair to the stockholders.
There have been suspicious on the
other side that this was but water in
, jected into the stock.
At the railroad commission hearing