The Dickinson press., 1912-12-07
PARCELS
POST STARTS
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subject to the approval of the Interstate
Commerce Commission. 1t is quite
probable that this power will be exer-
cised many times before the system
becomes perfectly adapted to the needs
Of the country as a whole. The law
also provides for a joint house and sem
ate committee of six to inquire further
into the needs Of a general parcels post
and SIS, 900 is appropriated for their
work
Merchants in the smaller towns have
feared that the parcels post would give
the mail order houses of the big cities a
GREAT advantage. but the zone system
seems to put the benefit all the other
way. Under the new law the local
merchant has every advantage in COM
petine with mail order houses if he
works up his business by advertising
his wares and prices in a medium
which reaches the out of town trade.
And this he must of necessity do since
more buying will be done from the
printed page than in person. the farmer
remaining Il his work and sending in
his order.
From these considerations those who
have studied the parcels post law, with
a view to determining its probable
effect, believe that it will mean an
incraese in the postal business done at
each postofice. but that the increase
will be LARGELY confined to the first
zone. In other words, the average
distance travelled by parcels post
articles will bear no comparison to the
average distance > now travelled by
letters. The Graduations of the rates
ofpostage for the different zones will
protect the local merchant from the
intrusion of mail order business from
distant points.
Good roads get a boost with the COM
ing of the parcels post. Congress
recognizes that the postal service re-
quires better roads. So it appropriated
$500. 600. for experimental road i'm
provement. under direction of depart
ment of agriculture, with the co-opera-
ton of postmaster general. It is stated
that So, 600 was set aside to each state.
In order to secure this amount the state
must appropriate a sum double that.
The establishment of the parcels pos:
is q severe blow to the express COM
panies and marks the end of a long
era of special privilege. There were
a few years ago eighty Eve such CON-
panies in operation-but the business
is nov practically controlled by four.
These are the Adams, American,
United States g. Wells. Fargo & Go.
Five years ago these four companies
covered S7.5 per cent of the total ex-
press mileage and earned SO per cen
of the gross and 1911 per cent Of the net
receipts of all the express companies.
In 1907 the total earnings of all the ex-
press companies were $128. $117, $l76.
and their expenses amounted to
Sis. o33. 2o4.
That there is immense profit in the ex-
press business is demonstrated by the fact
that one of the best known, express COM
panies operating in this section was
Organized in 1892 with q capital of only
$40. 600. and the total cost of property
of all kinds amounting to only
ST.. 28S.1 and during the last ten
years this company has paid dividends
amounting to s.. 200. 900. and the last
annual dividend was $500. 900. OF five
times the original investment that in
addition to this enormous dividend. it
now has a surplus on hand of ST. 49,
1871. So, all produced from q capitali-
cation of 500. 600. The express COM
panies while claiming that they will
not be hurt by the new law are very
busy dropping their schedules to meet
the postal rates and they plan to i'm
prove their services and hasten delivery
of packages 80 as to make q showing
while the government is feeling its way
along an untried road. They contend
that the heavier business will come to
them any way since the. government
limit is eleven pounds but its not at all
probable that they will dare to over
charge for this class of work lest Uncle
Sam. now started on the job. take over
the entire carrying business. The claim
put up by the express companies that
there is no indemnity for loss or dam
aged articles sent by mail would seem
to be false. The following is a para
graph Of the law:
The Postmaster General shall make
provision by regulation for the indemni'
4ication of shippers. for shipment in
jured or lost. by insurance or otherwise
and, when desired. for the collection OF
delivery of the postage and price Of tn
article shipped, fixing such charges q