The Bridgeport evening farmer. [volume] (Bridgeport, Conn.) 1866-1917, 1911-05-10
HOW The EXPRESS
COMPANIES ROB
AND PILFER US
Indianapolis News.)

Unfortunately the investigation of
the Wells-F'argo Express company
by the Railroad and Warehouse Com
mission in st. Paul only uucovers a
small part of the express gouge. 1t
offers however, the materials for an
other problem for the public utilities
arithmetic:
If the wells-Fargo Express Conn
pany had a nice little dividend of 80
per cent. last year after a steady flow
OF 10 per cent. annual dividends and
after increasing the capital stock
from $5000,000 to $24,O00,OOO and also
accommodating a surplus Of $4,000, 600
an amount probably in excess of the
original investment-then how much
did the railroads over which the ex-
press company operates, get above
fair rate for carrying the express?
On the basis Of figures obtained by
the Interstate Commerce Commission
it has been estimated that the coun-
try pays 100000, 900 too much every
year for it's express service. In the
art Of covering up this overcharge
the express and railroad companies
have worked hand in hand, but the
latter to better advantage. The ST.
Paul and other Investigations have in
dictated that the ingenuity of the able
directors and owners of express COM
keep down the apparent earnings to
a 10 per cent. basis by the simple
process Of doubling and treblir
amount Of stock. But this has prov
ed inadequate. SURPRISES have pied
up even On top of this tremendous
watering process and in sheer despera-
ton the Wells-Fargo and the Adams
and other express companies have
been driven to slipping out 100. 200
and 80 per cent. distributions to stock
holders. And even with this the
total SURPRISES in 1909-in one year
piled up $11,017, 600 on their hands af-
ter $50, $4,000 Of express stock-most
of it pure water-had been cared for
with $4326, 900 of dividends. 1t would
seem that the directors of the express
companies need help and the govern
ment might afford it by a little regu-
lation which would reduce rates to
the shipper.
But if the perplexity Of the directors
Of the express companies is great inn
agine what might be the distress of
railroad managers were it not pos
sible for them to lose their express
business in large ledgers. The rail-
roads carry first class freight for LIS
cents ton a mile. They charge cents
for carrying express. Experts de-
clare that all over 2 cents is excess
charge, and that within this margin,
of cents is most of the 100000, 900
overcharge.
At all events the st. Paul investi-
CATION tends rather to strengthen the
demand of this and other states that
the express companies pay fair rate
Of taxation. 1t might appear that the
states thus are trying to afford relief.
but it is one which is rejected It
would also seem that the investigation
strengthens the demand that the gov
eminent take steps to cope with the
express gouge by institution of a par
cells post, or the elimination of the
express companies by requiring the
railways to take them over, or a reg
ulation-even to rate ixing-of them
such as that to which the railroads
are subjected. Or, adopting the Ok
ford (England) public utilities meth
cd, the express companies might with
advantage, be allowed to pay per
cent. ON even all their water and add
another 1 per cent. for every 10 per
cent reduction in express rates.
But it should always be remember
ed that the express companies are only
part of the machinery, and the part
which gets the smaller part of the
$50, 900, 600.