The Washington times., 1911-01-02
UNCLE SAM LOSES BIG SUMS.
IN PARCEL MAIL HAULING

haul magazines from New York to
Sitka. They can't hope to get any OF
that business without making a rate as
low as that made by the Government;
so they give up all effort at the Sitka
business, retire from the field, and per-
NIT the postofice to enjoy the long
| distance business-and the consequent
deficit.
So II is as to fourth-cIass mail matter,
| which is merchandise in parcels of four
pounds and less. There is profit in this
business up to q certain distance at the
tate which the Government makes on II
through the Postofflce Department. For
The longer distances there Is loss, be-
cause the rate depends entirely on the
weight. and not on the distance.
consequently, just as In the case of
the magazines, the express companies
adjust their rates with reference to get
tlng Just under the postal rate on that
proportion of the business which can be
hauled at profit for less than the pos
| tai rate. while they make no attempt
seriously to compete for the Iong-dis-
tance merchandise. but again allow the
government to have the business and
the loss.
Old Double-Cross Game.
1t is beautiful Illustration of the
game OF heads ! win, tails you lose.
Where there is a. chance to make some
profit' the express companies take II;
whege there is chance for nothing but
loss they gracefully retire from
the field and permit Uncle Sam
To provide the service. The study
OF the fabric of express rates through
OUT the country is said to have made
peT1ectly clear that these are specially
adjusted to the purpose Of taking the
Government
As a result of widely applying this
HllTinnC in olK{
some strange anomalies are found Ex-
press rates apparently are made, not
without reference to the cost Of value
OF the service; but. in SO far as they are
anected by the possibility of competi-
uon with the postoffiee. with the main
purpose of taking the profitable and
leaving the Improbable business
II Is a testimonial to the efficiency
the face of this condition the depart
ment still makes a small profit on
fourth-class matter. While unable to
estimate how much larger that profit
might be II this unfair conception were
eliminated, and II the department had
a better chance at the more profitable
business, all the authorities are agreed
that in such circumstances the fourth
class, or merchandise. business would
be vastly greater in both volume and
profit than now.
Up to the Commission.
When the pending express rate cases
gets before the Interstate Commission
for determination, that body will have
TO decide whether 1t shall permit this
plan of rate-making in the future. In
determining reasonable rates on general
railroad freights, the commission has
aimed to consider such elements as
cost of service, its value to the person
utilizing 1t, and the right Of invested
~
None OF thse elements, it is claimed.
could be made to justify the present
adjustment of express rates.
If the commission should decide 70
general rules that have guided it in
fixing the freight rates, the express
companies would find vast number of
their highly profitable short-distance
rates reduced. some Of their Iong-dis- |
tance rates increased. and a great many |
rates on both long and short distance |
business readjusted in a fashion which |
would make them less profitable than |
they now are. |
There is a great volume Of fourth |
for which the postoffice cannot compete |
at any rate, because the largest mer-
chandise package that the postoffice |
accepts is four pounds. Investigation |
Is alleged to develop the interesting |
fact that express rates on parcels above
four pounds are disproportionately
high, presumably because there is no |
necessity Of meeting Government COM |
petition.
Probing to Increase Weight.
The postal authorities have for some |
time, been studying the revenue pos
sibilities involved In an increase In this |
maximum weight. A careful inquiry is |
now being conducted on this very point,
among others. Under the international
postal treaties, the maximum weight ]
of merchandise parcels is eleven
pounds. Under this anomalous ar
rangement you can mail an eleven
pound parcel from Washington to Lon
lon, but you cannot mail anything
arger than a four-pound parcel from
to Baltimore.
The express companies, of course, are
he benefciaries of this Limitation in
weight Of parcels In the domestic post
L is claimed that they charge the traf-
ic about all 1t will bear, because they
lave no fear Of competition with the
,ostoffice.
Commerce Commission to make over
he whole scheme of express rates,
With reference to cost of service and
reasonable profits, would enforce a II
evolution in the whole parcels-carry- Il
ng business. Yet that is just what
some Of the Interstate Commerce au-
horities have in mind.
The Government enforces a complete !