The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-01-23
EXPRESS co. S GET
| AHEAD OF ]. S.
Second-Class Matter Rates So yussle1
That the Postofice Depart
ment Loses Millions.

WASHiNGTON,s Jan. 23.--By q re-
markably simple process OF regulat-
Ing rates with practically no interfor-
ence on the part OF the government.
and the assistance OF a more or less
ambiguous section OF the revised
statues, the express companies OF the
country have quietly SKINNED the
cream on the business OF handling
postal matter during the last thirty
years and have left the unproftabIe
portion OF the traffic to the postofice
department, says a dispatch to the
New York World
The officials OF the postofice de-
partment and the members OF the In
terstate Commerce Commission have
Just had brought to their attention In
forceful manner the fact that leak
OF tremendous size has existed In the
department for almost thirty years.
and that the taxpayers OF the country
have been unknowingly paying tribute
OF millions to the great express com
panies.
They are now. as was printed In
The World recently. carrying on
jointly an investigation into the situ-
alton which II Is believed will result
In complete wiping out OF the post
Office deficit and in all probability q
surplus OF considerable size without
more legislation.
The postoffice department carries
second-class mail matter to all parts
OF the country at fat rate OF four
cents to individuals and one cent to
companies. The division lost $64, ,000,-
900 last year.
Recent investigation has shown that
the express companies manipulate
their rates In such manner that II Il
impossible for the government to
compete with them in the profitable
portion Of the traffic, and the unprofit-
able portion they leave completely to
the department.
A cursory glance at the rates Of the
express companies leaves the impress
sion that their prices are In all cases
practically the same as those main
tanned by the government. A real ex-
animation shows that the opposite Is
true. The postoffice department, ac-
cording to the questioned statue
published, In The World. Is not al
lowed To carry matter weighing more
than four pounds. The express com
panies maintain the same price In
such quantities az those OF the gov-
ernment, but will not touch less than
Ave pounds, SO that II would nor pay
the individual TO send small packages
(, by express, and consequently they go
by mail, with the result that the gov
ernment stands the loss.
| However, as most of the shipping OF
any quantity is done by corporations
or companies, and this is usually sent
in large quantities, the express com,
panies maintain rate of one-haif
cent a pound on short hauls, while
the government charges one cent.
Therefore all this profitable matter
goes to the express companies.
AS soon as the hauls begin to
lengthen and the cost of handling In
creases the express companies rates
gradually grow greater and greater.
so that where the profit stops the ex-
press companies stop and the govern
ment begins to do the hauling.
The rate from Washington to Ivy
City, distance Of seven miles, is one
half cent pound by express and one
cent by mail. To Baltimore, a distance
of forty miles, the same rates hold.
The price remains the same as far as
Philadelphia, but as soon as the dis
tance lengthans the prices OF the ex-
press companies rise and the govern
ment carries all matter OF mail sizo
across the Mississippi from the Attain
tic seaboard and similar distances at
a tremendous loss
The Interstate Commerce Commits
sion Is now investigating the situation
in the expectation that they viii be
able to force the companies to charge
Hat price on both long and short
hauls and thereby give the govern
ment chance OF getting some or the
profitable business
Under the statute under which the
government hopes to bring about this
change In the present hauling rates
and add millions to the funds OF the
department. il is maintained by the
government, a parcels post; competing
with express companies, can be estab-
lished Immediately and there will be
no necessity for advancing rates on
such second-class matter as newspa.
pers and magazines.