The Detroit times., 1911-01-31
EXPRESS TRUSTS
GRIP ON PEOPLE IS
SHOWN BY|NQU|RY
Triple Graduate System Rates Hits
People Three Times Gigantic BUSH
ness Built Up From Little or
Nothing, Says Report.
Three fourths of All Business Might
Go By Parcels Post at
Cheap Rate.
BY gibson GARDNER.


Interstate commerce commission's
FIST annual report on the statistics OF
express companies, just published.
! shows that 95 per cent OF the number
OF pieces OF express matter handled
consists of packages weighing 100
pounds or less.
What proportion OF this class OF
matter weighs IL pounds or less, the
!. probable maximum weight when
= would be allowed under a parcels post
law--if we had one?
The commissions figures do not
show tins. Due TO 1.-The expenses In
volved," the commission has not at
tempted to go back OF the 100 pounds
or less classification.
But a prominent official connected
with the commission, who has had I'm
mediate charge OF compiling certain
portions of this report. estimates that
between 70 and 80 per cent of matter
weighing 100 pounds orr less would
weigh IL pounos, and mus could be
carried under parcels post system. .
4 In other words, II We had a parcels
post law, most OF the express bust
ness-practicaliy three-fourths OF tt
Nouiu ihVNitauiy 81 " inv oS'SA
mefit!
Does this suggest reason for the
tremendous opposition being exerted
by the express monopoly against an2
: kind OF parcels post?
The parcels post conventions which
this country has with certain foreign
countries allows a maximum OF Ii
pounds weight. at rate of IL cents
per pound. You can send an 11-pound
:, package to Europe for $1.32, while u
costs you 16 cents pound TO send
merchandise across your city, and you
cant send more than four pounds at
any price.
Here Is an illustration taken from
the commissions report which viii
serve to show the difference IN
charges by an express company IN
} competition with the postoffice AMI
hank. and where no competition Is
lossible:
"Two shipments, one a 40-pound
box, valued at $50. and the other a
package of 81 900 In money, can be
made for charges 25 per cent less
Ihan a single merchandise shipment OF
the same weight and value" says. the
commission.
The probable explanation or these
apparent Inconsistencies Is found In
tie fact that charges for the transport
tation of currency are exposed TO COM
petition with the postoffice as well as
with banks and other agencies OF CON-
! mercial exchange, whereas the ship
ment OF. valuable merchandise Is a
service in which the express compan
les are without competitors"
I. Take shipment of ordinary mer-
chandise Weighing eight pounds and
send 1t from Ll.chfield Mimi, TO Tel
lurlde, Col. This package would be
handled by three companies, and un-
der the triple graduate" system Of
computing rates, would cost the ship
per s2.55. III Two companies had han
died IL, the charges would have been
,s2.15. II one company could have
handled the package, the charges
would have been $l.20.
II the United States governmelty
could handle II under parcels postl
system, the cost would have been 81
cents.
Furthermore, the United States gov
eminent would have carried 1t to the
philippines for exactly the same
amount! Or, for that matter. 10
Porto Rico, Guam. Samoa, Hawaii,
Alaska, CANADA or Mexico!
Speaking of the intricate and con-
fusing system OF graduated rates,
which the express companies have
worked out, the commission says:
1.-The same lesson may be read from
them all, namely, that the basal rates
are no correct measure or the
amounts which patrons pay for ex-
press service. and in general, that the
rate per pound is In inverse ratio %
The weight OF the package, and that
, the payment often increases with the
number of express companies con-
cerned"
This report Is the first accurate in
formation which the government has
ever been able. TO obtain about the ca
press business In the United States,
and its revelations are startling.
Il shows not only that the express
business Is a practical monopoly, but
that 1t has built up immense assets
cut of revenues derived from the pub
lie. with very small initial invest
ment OF capital.
AS long therefore as the express
companies can stave off parcels post
legislation. just so long can they con
t!nue to charge exorbitant rates for
service In which they have no compe-
titicn.
The. commission makes significant
!. comment on the balance sheet figures
' Of express earnings which 1t presents:
"The balance sheet statement shows
very clearly that IL is through the
profits of the business that the large
assets have been accumulated, and IL
may be safely asserted that the origin
al investment IT, this business as a
whole was relatively insignificant. The
exri ess business ic perhaps the best
illustration which the country affords
az the accumulation OF considerable
Fssets out OF the revenues"