The Barre daily times. (Barre, Vt.) 1897-1959, 1911-04-24
Magazine REVIEW.
Secretary Of the Treasury, Franklin
MacVeaugh, and the Express
Companies.

/ Writing under the title of "The Great
Express Monopoly" in the April Amer
lean Magazine, Mr.. Albert w. Atwood
interestingly describes how Franklin
! MacVeagh summarialy treated the
United States Express company that Tor
a long time had had contract with the
government for executing its express
business The story IL as follows:
Last year, Franklin MacVeagh, sec
rotary Of the treasury, instructed the
sub-treasures to split up mutilated cur
rency into four-pound packages and ship
them to Washington by registered mail
instead of express. The contract be-
tween the company and the government
provided that all such shipments 60 by
express, but MacVeagh simply disregard
ed this provision. More important still,
he ordered the sub-treasury at New
York to transfer for bankers S2,000000
BY telegraph to the New Orleans sub
treasury without imposing the usual
express charge This was in direct and
undisputed violation OF the contract
"How, you may ask, can even the
United States government violate con
tract? For one thing the contract long
ago expired But as no new arrange
ment has ever been made, il has hung
along from year to year, and until Mr.
MacVeagh began TO take liberties, the
terms have been practically the same
as they were more than forty years ago.
In this long period of time the business
had increased MANIFOLD, but the terms,
with few minor exceptions, have re-
manned to all intents and purposes, I'M
altered An nsurgent congressman, who
recently asked several leaders OF Congress
why the government did not advertise
for new bids was told by Chairman
PAYNE Of the ways and means commit
tee The difficulty is this as ! under
stand it: when the government gets the
bids they will be practically the same.
Whether the companies are in collision
or not. deponent saith not, but that is
the difficulty
Secretary MacVeagh did not care
whether or not the express companies
were in COLLISION He simply broke
clauses Of the contract which he thought
were not in the governments interest
knowing full well the company would
be only too glad to hold on to what
business it could.
1T is quite true that the United
States Express company gives the treas
urv department moderate rate, TWEEN
ty cents per 81 600 on currency shipped
over its own lines, But the United
States Express company does not oper-
ate over the entire country by any
means. and about half the shipments
made by the government 60 over other
eynress routes. on which far higher
rate * paid. From Washington 10 st,
Louis, distance or 1851 miles, the
United States Express company has its
own line and the government pays 90
cents per 81 .000. From Washington TO
Richmond, distance OF lis miles. the
government pays go cents per $1,000.
The United States Express company is
obliged to turn nearly half the entire
business of the treasury department
over to the Adams company. md on all
this business the government has to pay
from go cents to 81 per 81 900 II the
United States company can carry cur
rency at 90 CENTS per 81 600 and make
large profit tits government contract
is admitted to be one of its most profit
ablel, why has not the government made
contracts with other companies at sim
liar rates?'
"Nfaeveaeh IS only one " the long
line of treasury officials who protested
against the contract but he was the
first to whom the thought occurred that
il was possible to disregard mn instru-
mcnt which had long since ceased to be
binding"