The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-05-12
INQUIRY TO PIERCE
BIC EXPRESS POOL
Monopoly Has Gained Strength Until
Business Has 0utgrown ALI
Normal Proportions.

strengthened since the World an
nounced last Wednesday the inten-
ton OF the Interstate Commerce Com
mission TO probe the monopoly TO the
bottom, says the World. Commercial
bodies in 125 cities expect TO furnish
legal proof OF their complaints, to
the end that the inquiry may be
swift and orderly
They will have little difficulty In
proving monopoly, for that Is as good
as admitted. The injustice 1t has
worked to the public must be specih-
cally shown. Extrayagant profits Will
be cited In support OF this charge.
The main point OF insistence will be
that the express business Is sur
vival OF practices that run counter
10 all governmental and economic ten
denotes, and that business interests
have been systematically and copious-
ly bled for the benefit OF a coterie OF
financial and railroad magnates, to the
public detriment.
Big Interests In Control.
Names OF the chief benefciaries
will indicate how superior has been
the scent for this bonanza. j. Pier
pont Morgan, Henry c. Frick. Cor
nelius Vanderbilt, George +. Baker.
Jacob II. Schiff, Charles NJ. Pratt, the
Hartman estate, the b. p. Cheney
estate and Lewis Cass Ledyard are
the individuals who have profited; the
National City, the Bank OF Commerce.
the Central Trust Co., Standard Oil,
Kuhn, Loeb & Co. represent the bank
ing line interested; Pennsylvania,
New York Central. New Haven, I'm
ion Pacific. Southern Pacific, Balti-
more & Ohio, Great Northern, North
ern Pacific, Erie and Delaware Il
Hudson are sample railroads in in
terest
Petitioners for the inquiry promise
TO show that the public has fed the
rich through the express companies.
While the government has been lay
ing restraining hands on the railroads
and industrial enterprises the express
monopoly has remained untouched.
Such fertility of resource as might
be expected Of the men and corpor-
ations named above has been employ
ed, 1t will be testified, to pile up
profits for the monopoly and to keep
1t attractive only for insiders. Com
mon railroad and express interests
have enabled one hand to wash the
other. drawing profits from double
sources, while nominal dividends of
from four to twelve per cent on
stocks quoted at from well above par
to 600 have shut out those who can
make only rainy day provision for
themselves.
Alone Escaped OFFICIAL Scrutiny.
IL will be shown that even in the
hey-day of their prosperity railway
and financial magnates could never
ride another monopoly unchecked.
They have had free way in the ex-
press business by direct sanction OF
the Supreme Court of the United
States. Twenty-Five years ago that
court affirmed the right of railroad
to confine express privileges to a
single company. That pointed out a
course since faithfully followed,
whereby insiders nave reaped as high
as so per cent annually on original
investments and the commercial pub
lie has piled up for them extra divi-
dends in stock and cash.
Basis for the inquiry will be enlarg-
ed by pleadings that the express bust
ness has never required large capital
OF superior ability for it's operation,
and therefore il Is not entitled to ex-
travagant earnings. Capital exhibits
of all the companies represent many
times the amount OF the original In
vestments.
IL the business was not of shoe.
string" origin, 1t had almost as hum
BILE beginning. The Adams Express
Company started in 1889; when Its
founder carried parcels between New
York and Boston in a valise. The
president of Wells Fargo has testified
that mis- company began with no capt.
tai Present capital holdings have
been made out OF earnings, and in
the development of the business RAFT
road and express interests have
grown steadily closer until now they
are practically identical
The companies whose affairs are 10
be scrutinized are the Adams, the
American, the Southern. Wells-Fargo
and the United States. All OF these
companies are allied by mutual in
vestments as well as by traffic agree
ments. The Great Northern, Pacific
and Northern Pacific companies are
quite as important as the larger COM
panies in The territory they monopo-
lize and are subject to the same crit
ical review. Existing relations have
been so adroitly devised that the in
vestigation will of necessity have to
take up the separate records OF each
company and follow them to the
point where they meet and join In
common policy The web will be
compact enough when completed.