Decorah public opinion., 1910-11-23
EXPRESS RATES IkI0WA
Special Correspondent at Des Moines
Describes Hearing.
U. S. SENATORSHIP POSITION.
Interesting Letter Concerning the
Agitation for Lower Express
Rates and the Progressive
Attitude on the SeEa.
tOrship.


ly in December the Iowa Board Of
Railroad Commissioners i'll hear
final arguments in t& action
brought for a reduction 80 ,ress
rates by Mr.. Geo. Wrightma- &C.
letary of the Iowa Manufact,
association and later complaint y
ed by the attorney general. Thes.
two complaints were consolidated as
they cover the same matter and the
decision of the commission is one
of greatest importance. The hear
ing just concluded covered period
of four long days upon the question
of express rates in Iowa. Mr..
Wrightman, representing the Manu-
facturers' Association, stated that
the purpose of the association was
to secure a schedule of rates low
enough to stimulate traffic and great
ly increase the volume of express
business in Iowa. He contended that
the reports filed by the express COM
panies showed that they were earn
ing net out of their express business
from $50 per cent to 1000 per cent
per annum OF the cost of equipment
such as horses, wagons, safes,
trucks, ETC., which are used in the
transaction of the business. 1t was
the contention of the express COM
panies that the reasonableness of the
Iowa rates, or of any other rates
proposed for the Iowa business must
be tested by whether or not the
h' iness in Iowa carried by these
rates shows profit or a loss. The
traffic managers of the Adams, AM
erican, United States and Wells
Fargo Express companies, each gave
evidence tending to show the actual
earnings upon Iowa business for
specified period of time. In some
cases this testimony tended to show
loss. In the case of the United
States Express Company it showed
a profit of $500 for one month on
gross business of $4,000 and in
the case of the American Express
Company it showed a profit of $50
per cent on the business for the per-
iod in question. The companies pay
to the railroads varying per centa-
ges of their gross receipts which
necessarily means variation in
their cost of operation, and through
this materially affects the question
of profit or loss upon the business.
1t was the contention of the state
that in determining whether or not
Iowa rates are reasonable, inter-
state business should be taken into
account. 1t was the contention of
the express companies that the rea-
sonableness of the Iowa rates must
be determined by a comparison be-
tween the receipts from the traffic
that moves under those rates, and
the expense of moving that traffic,
and that it would be just as unfair
to reduce Iowa rates because some
interstate rates might be remunera-
tive as ii would be to increase Iowa
rates because interstate rates were
not remunerative. The express COM
panies also contendei that they
were entitled TO a rate that would
AFFORD them some profits on all of
the business that was transacted.
In connection with this hearing
the express companies introduced
testimony tending to show the mac
euracy Of the reports which have
been circulated to the effect tnat
their rates We're not educed by the
order which the commission made
February l, 1908. One company
fled list of about 5000 rates
which had been reduced by that or
der.
The determination of this 1ues-
tion is expected to require all of the
time of the commission un.tl the
newly elected commissioners come
in at the first of the year. The
Commission will have to determine
questions of law as well as ques-
tions of fact. They will have to de-
termine whether the Iowa rates are
to be tested by Iowa earnings or by
the earnings generally, and will
have to be governed in deciding this
question by rules laid down by the
supreme court of the United States,
because 1t is the court of last resort
in rate matters. In addition 20 this
they will have to analyze and digest
the vast mass Of figures that las