The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1912-02-02
EXPRESS RATES
ARE TO Be CUT
Interstate Commission Has Evil
dence of Outrageous Practi ces.
RAILROADS SHARE PROFITS
Charges Of All Companies Will be
Greatly Roduced-Great Tangible
Assets Lacking and Dividends
the Result Of Extortion.

will be cut from the enormous earn
ings of the express companies by the
Interstate Commerce Commission as
a result OF the statements submitted
10 them in response to demands made
by the commission. One hearing has
been held on the complaint of the
Merchants Association OF New York.
and enough data have been submitted
by the express companies to indicate
clearly that the present rates are un-
Just and unreasonable, in violation of
law, exorbitant and outrageous
At the next meeting the commission
expects 10 finish taking evidence.
Shortly after this arguments will be
presented by attorneys representing
the commisslcl and the express com
panies, and almost Immediately after
this n is expected the commission will
order a substantial reduction in rates.
Knows as Much as the Companies.
Fifty expert accountants of the com
mission have been engaged in the in
vestigation. At various times they
have examined $4,000 way bills. Each
way bill, on an average, consisted OF
twenty items This means that an ex-
animation has been made OF 100000
items. or several weeks, on way bills.
These Inquiries have shown the desti-
nation Of the packages, their weight
and the rates paid by the shippers.
AS a result of this rigid inquiry the
Int tnt q mi 10 ia
In possession of as much knowledge
about the business as the express
companies themselves.
II has been disclosed that the eX-
press companies have no assets, their
only tangible property being some
horses and wagons They are doing a
messenger" service, the cost OF
which is small Because of the meth
ods of business n large percentage OF
the merchants are forced TO transport
their goods by express rather than
freight. The express companies, ap-
preciating this fact. have not only
charged rates that are out Of all pro
portion to the service performed, but
have resorted to the subterfuge Of
sending their goods by roundabout
routes, charging express rates, and
really performing a freight service.
Good to Railroads.
Contracts between the express com.
panics and railroads uniformly provide
a compensation to the companies for
the express privilege of approximately
so per cent. of the gross receipts Of
the express companies This in effect
affords the railroads an excessive rate
over the first class freight ate The
division between the express com
panies and the railroads upon per
centage of gross receipts from express
charges is shown to result from oX-
cessive overpayment to the railroads
for the transportation Of small par
cells.
The only service performed 10y tho
railroads i'm express transportation
consists Of train haulage, all termiscl
and handling service being performed
by the express companies. The SUI.
division of the weight handled into
numerous separate parcels does not in
crease the cost OF rail hauling, which
Ia affected only by the aggregate
weight. A progressively increasing
rate is, however, eXacted by the eX-
press companies as the weight of the
has been found that leaving this out
this increase goes to the railroads.
Despite the large proportion Of the
gross receipts paid TO the railroads, It
has been found that, leavin gthis out
Of consideration, the net returns TO
the express companies have been out
OF all proportion TO the service per
formed and the capital invested. This
disproportion is SO enormous as TO
seem incredible. but it is supported by
indisputable evidence.
1t is shcwn that the inventories OF
assets filed with the Interstate Com.
merce Commission by the express
companies represent to a large degree
only accumulations from extortionate
charges.
Companies Overcapitalized.
The extent of ovcrcapitaliZation and
excessive charges by the express com
panies Is shown clearly in the case OF
the Great Northern Express Company.
" was organized i'm 1892 with n capital
Of only 800. 900. The total cost OF the
property real estate, fixtures and
equipment amounted 20 s71.2SS.9l
Upon this total investment IL has paid
in dividends during the last ten years
the enormous sum OF S3200.000 It's
last annual dividend was S500000-
FIVE times the original investment.
There is evidence also Of failure 10
notify shippers OF non-delivery. delay
I'm return of non.delivered goods, de
lay in the settlement of claims. un.
reasonable free delivery limits, un
reasonable restrictions as to kinds
OF packages, delay in accounting 10
C. o. ID. collections. false overweight
charges, inequality Of rates between
packages OF four pounds and less,
subject to mail competition and com.