The Washington times., 1911-01-02
Gets All the Improbable
Business From Only
Competitors.
EXPRESS COMPANIES
TAKE THE CREAM
Two Schemes of Rate Making
Where There Is Com
petition.
BY JUDSoN C. wELLIvER.

An ancient statute. long since recGg-
servance, may be resuscitated in the
near future to wipe out the deficit of
the Postoffice Department, and to sub
groomed surplus.
This well-nigh forgotten law has been
recalled to mind in connection with an
investigation of the rates of express
companies by the Interstate Commerce
Commission. Authorities of the commits
| sion are considering the question of
whether the express companies are
doing a great volume of business to
which they have no right, and which
ought to be done by the Postoffice De-
partment.
The question is, in short, whether the
express companies ought 10 be allowed
TO compete with the Posto.fice Depart
ment for the carriage of mail matter.
l. is a tremendous problem in It's sig
riiicance as affecting both the express
companies and the Postofrice Depart
ment.
AS II has been pressed upon the atten-
ton of the Interstate Commission, 1t In
wolves the possibility OF a sweeping re-
adjustment of express rates, which, IL
finally sustained, would take away
from the express company vast vol
ume of their most profitable business
and turn IT over to the postoffice. In
effect, it would amount, to the estao-
lishment of a parcels post, Possessed of
a monopoly of a large part Of the busi-
ness now handled by the express COM
panies.
Cannot Estimate the Business.
Nobody, either at the Interstate Com
merce Commission or at the Postoffice
Department, is at present able to estI-
mate with any accuracy the volume of
this business or the effect which its
transferrence to the postoffice would
have on the business and revenues or
either the postoffice or the express
corporations.
The opinion is strongly entertained,
however, by both the postal and the
Interstate Commerce authorities, that
to turn this business over to the post
office would greatly increase the profits
now derived from fourth class matter,
and very probably would wipe out the
postal deficit without any other change
in rates or regulations.
The situation with reference to ex-
press rates in this country and their
relation to the business of the Postof-
fee, is declared TO be most remarkable
and interesting. Officials OF the Inter
state Commission have been making a
thorough investigation of II in connec-
ton with a number of complaints filed
months ago, alleging that certain ex-
press rates on long distance business
are excessive.
Two Plans of Rate Making.
It developed, according to statements
made by investigators, that the express
companies practically have two schemes
Of rate making. One relates to the de-
termination of rates on business for
which the express companies must COM
pete with the Postoffice Department.
The other has to do with business for
which the Postoftice. under present laws |
and regulations, makes no attempt at
competition.
It is charged thai express rates are 20 !
adjusted as to take away from the Gov !
the merchandise business which |
the express companies can carry on |
profltably while still undertaking the |
pOstoffice rates, while leaving to the |
postoffice that part of the business |
which the express companies could not |
protitably take away from the postoffice |
This adjustment OF express rates has
to do with both second-class and fourth
class matter. Postal authorities say
that its most important effect is to re- !
duce the volume of fourth-class matter, [
or merchandise, which the postoffice
carries.
Cream to Express Companies.
ITO explain how the express companies /
are able to skim the cream off the busi-
ness, and select for themselves that
which will earn profits, while rejecting |
that which will not, 1t is necessary to
keep in mind that the postoffice does
business at a fiat rate, not depending
upon the length of the haul, while the
companies make rates to suit
themselves. with reference to distance,
cost of service, and any other element
hat they choose to take into consid-
grafton.
For instance, a pound of magazines is
o Sitka for l cent. The same pound J.
would be taken from New York to
bound Brook, N. J., for the same 1
'ent. Now, the express companies are
lot in business for their health. Their
health is, and always has been, excel
ent. Neither are they in business from
my motives of philanthropy or pa
riotism. Their experience has shown
hat they can haul magazines from New
York to Bound Brook for less than a
,ent q pound and earn a good profit.
So they make a rate just inside the
Dostoffice rate, and take the business
md its profits.
On the other hand, their experience
las shown the express companies that
t costs more than a cent a pound TO