The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-11-15
Forwarding Companies Are
Formed to Ship Freight
in Bulk.
DECISION MADE
WHICH ALLOWS 1T
Concerns Springing Up in Many
Cities Under Railroad
Auspices.
By 7. C. WELLIvER.


The railroads Of the country have dis
covered a way 20 beat the interstate
commerce law most effectively.
Incidentally. Il the possibilities Of
their new plan are not overated in
Interstate Commerce Commission cir
cIes. they viii presently be able to
grant rebates TO favored shippers. and
yet Keep entirely within the law.
The express companies pointed the
way for railroads. The discovery Is
looked upon as of the utmost impor-
tauce, because the Interstate Commerce
commission has handed down a de-
eision which apparently jusufies a
method Of paying rebates.
Divided opinion.
This decision was given by a divided
commission Commissioner Harlan wrote
a dissenting opinion, and Chairman
Knapp concurred in 1t. The other com
missiOners united ia the majority
opinion.
If the majority opinion is correct,
/ ''sCalping" IN freight, as wei as passen-
ger rates rs legitimized in this country.
The dissenting commissioners pointed
out this danger. Since their report was
written the establishment OF this busi-
ness OF scalping in rates has been going
steadily forward. and today, according
to officials of the commission, there is
reason to believe that rate demoraliza-
tlon viii shortly result. and will be en-
tirely beyond conts D. unless something
/ shall be done to prevent 1t,
Now Handle Freight.
! Tie organization of forwarding COM
panies and like organizations Is being
| carried on at present IN all parts Of the
county. These organizations were drst
INTENDED TO handle express business.
I Now they are formed C. handle general
/ freight as we'll Originally. independent
/ OF the express and railroad companies,
they are now. according e. the chsrges
/ made against them being formed as
/ Iaux{Iiaries TO the express and railroad
companies. iu order 10 secure TO these
the benefits OF the new control over
rates.
/ To illustrate just what a forwarding
company Is and how it operates, this
case may be given:
/ The California Commercial AssOCia-
ton was composed Of San Francisco
merchants They had discovered that
Ion express business TO the East the
rate between New York and San Fran
cisco was SI2 per lG1 pounds, when ship
mopts were less thau 100 pounds, and
/ bnIy S. when shipments on 2J,0yo pounds
aud over were 70 be made. Accordingly
they Co-operatedi pooled their interests,
and arranged TO have their express
shipments 'bulked" and sent at the low
Cut Of Revenue.
/ This cut OF nearly half the express
revenue, ana the express company pres
emily declined TO allow the pooling or
bulkiug 10 be continued Then the as
ISOLATION started a case before the In
tersJate Commission TO decide whether
this scheme Of hulldng shipments, in
order TO get a lower rate, was legiti-
Innate.
In a decision which at the time at
tracted almost no attention, but which
Is now regarded as Of the greatest mo-
ment. the commission held:
A rule against 'bulked shipments is
discriminatory and unreasonable.
In gathering several packages Of
goods together and shipping them under
the carriers rates on large shipments. a
shipper is not by device evadiug the
law, but is legally availing himself Of
the rates the carrier offers
/ Ownership of property, rendered for
shipment, cannot be made a test as 10
the applicability of a carriers rates.
| The law does not justify the Ciassihca-
tion of shippers with regard to heir in
terest in property shipped
In short, the commission held that If
all the patrons OF express companies in
a given city would band themselves into
a forwarding company. and bulk their
shipment, then they would be entitled to
the bulk rates.
Fine for Shippers.
This looked ike a fine thing for the
shippers. It was apparently a great
victory for the san Francisco patrons
Of express companies. If applicable tc
express. why not to general freight
business? These were questions which
at once suggested themselves.
| Immediately after this decision re-
ports began to come in Of forwarding
companies being formed in leading com
ImerciaI cities. Nobody suspected any
ching queer about them for some time
Then it developed;
That the express and railroad com
panies were themselves organizing The
forwarding companies in many places.
That the patron who gave his bust
ness to the forwarding company was
frequently given a rebate, in the shape
| of a division of the profit which the
forwarding campany made by contrOll
ing his business.
That the same principle coulI be ap
l. piled to general freight shipments, anC
- would put an end to less-than-carload
. lot shipments for people wise enough t
patronize the forwarding concerns anC
take a division on the rebate.
That officials Of express or railroad
companies We're personally interested
3 in these forwarding companies and prof
! iting by their operations.
r The extent to which these charges
have been proved true thus far. can no