New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-01-23
EXPRESS CHARGES UP
Merchants Association Asks Z. s..
Commission to Investigate.

r.-,n,ot,,,z that the rates charged by express
companies are unreasonable. In thaf uley 'oto
an excessive profit upon the capital actuall5 u-
for necessary operation. the Merchants Associa
ton NJ New York Yesterday requested the PUBIC
service Commission at Albany to conoucl Al ~
vestigstion OF the rates, rules ana pfae'i0e
the express companies in this state'
The association bases its request on inc S'"'e
n1ent that the companies have failed 10 decrease
rates in proportion &c decreased cost VI op
brought about by increased traffc' ana thAl 20
minal charges, made on the OASIS Oh u4st14 "
stead OF service have become excessive III tAo
more the association AYERS, the COMPANIES t
realized apparently excessive profits, as eVloehce
nv dividends upon inflated capitalization anu ING
accumulation OF vast surplus FUNDS Inc ioqu
f. made that the Public Service Commission use
It's powers TO adjust rates so az 10 pFof'Uo ~
than q liberal profit upon the capital ac'uaHy re-
olIired for the efficient operation OF inc sei
In sronort of its contentious the association cites
United States census reports Referring 10
special report in 1907, the petition says;
In 1907 the value Of practically ali me ip de-
tai in the special census report compnet1h .i ex
reports made to the censRs s In " the same
year the net earnings from operaneoSna RE
a9tber sonqces referred to comprise s4ssloaSs;
investments in STOCKS ane sheet fur
t5er shows a balance OF cash and accounts reseh-
able after dedgetng The net assets there
fore in excess of the value OF the equI
sse ID any A aPs s4I This
Iatton is lemingly derived from the excess pronts
from operation in past years. after the pa iiAei
of liberal dividends. ,...s q, other
Dismissing the permanent investments III o.a.es
enterprises from further consideration the 80
companies had 1907 net available cash. alteI ~.
Dayrnent Of all current obligations 10 the s
Of & SOS ss7 That this not wholly req2Heo Lot
the Dlrposes of the express business Is SHOWN U!
the fact that one of the principal companies uses
large part of cash assets for transacllhs an
stantIy engaged IN reimbursement business - ~.
which large cash reserves are required. oedIns
in mind that the nature OF the express business
does not require. admit. the use o! ial s
amounts of active capital for its legitimate anu
proper operating purposes. and the further "a 90 90
The value of the equipment is less tnan $1,000
II is improbable that the capital actuaHy anu
sarily employed for the proper operation OF
COMPANIES is more than 100000 or Sl2UoUp
II this be true Il is self-evident that charges
which WELD net earnings from operation OF amos.
100000 upon investment or eQua4 ol 4o'
much greater amount excessive.
In enumerating Objectionable methods and prac-
tees" the petition mentions disregard of speclneo
routing delays in delivery, settlement OF claims
and accounting collections. unreasonable restrc-
lions of free delivery limits. size OF packages ana
methods OF packing and overweight
The petition closes with the request that the in-
vestigation may be followed by such changes in the
methods and regulations as will remove just cause
of complaint and establish equitable relations be
tween carriers and shippers