El Paso herald. (El Paso, Tex.) 1901-1931, 1912-07-15
Interstate Commerce Com
mission Orders Drastic
Reforms in Express Bust
ness.

Hess,
washington, D, c., July 15.-Sweep-
ing reductions in express rates aver
aging, in general approximately 10 per
cent: drastic reforms IN regulations
and practices, and comprehensive
changes in the methods of operation,
are prescribed il a report made pub
lie today by the Interstate commerce
commission of its investigation into
the business of the 10 great express
companies of the United States.
Dealing with the identity of interest
between the various companies, the
report finds that while these COM
panies are separate legal entities, 1t
is of interest to regard this fact that
bv stock ownership and otherwise they
are so interlaced, intertwined, and IN
terlOclSed that II is with dlTIiculty We
can trace any one of the greater com
panies as either wholly Independent
in its management or the agency OF
single railroad system SO that WINE
these. COMPANIES operate separately ana
compete with each other for traffic,
the express business may be said 10
be almost q family affair An interest
ing genealogical tree, in fact, might
be drawn showing common ancesug
in all of the larger companies. ana
while many names may be USED 70
designate these companies, II IS "1tnlH
the fact to say that aside from the opS-
ratfons of the minor and dlSIlncIlNeiy
railroad express companies, the express
bIIisness of the United States Is main
aged by not more than three groups
of interests
Inquiry in Progress Three Years.
The inquiry was the most extensive
and in wealth of infinite detail, PROB
ably the most thorough, ever prose-
cuted by the commission 1t was con
Quoted and the report was prepared Dy
commissioner Franklin X Lane II
has been in progress for nearly three
years. The report itself makes 500
printed pages. 1t involved an eNaInln-
alton and comparison Of practically
more than 60O,0O0,000 express rates IN
effect in this country, in addition 10
an examination Of millions OF way
bills and an investigation, through the
books of the companies OF their imam
ciaI operations and business methods
Commissioner Lane is of the opinion
that the conclusions reached constr
tute a long step towards the solution.
Of that gravest problem Of the Amer
lean householder, the high cost OF Nv
ing
Rates Reduced on Small Packages.
The greatest reduction of rates pro-
posed IS on small packaSes-that Is on
parcels which weigh less than i
pounds Rates on packages Of more
than u pounds were found to be more
reasonable than those on smaller per
GELS.
Briefly stated the new rates may be
said to be based upon a minimum
charge of q cents for a one pound
package. This charge increases in
ratio to the increase of weight and
distance, at rates varying from three
tenths of q cent a pound to ABOUT Il
cents a pound. Twelve cents pound,
according to the conclusions OF the
commission, IS approximately the hlSh-
est rate per pound for the greatest
distance possible for a parcel 70 DC
carried wholly within the United
states. exclusive of Alaska
Packages weighing two pounds; Tor
instance, may be shipped 1000 miles,
New York city to ChlcaSo-for "a
cents. and 1000 miles-NeW York city
TO Denver-for 81 cents, the present
rates being respectively, for each 80
cents. A three pound package VIII
cost - cents for 1000 miles and 81
cents for 1000 miles, the existing rates
being respectively, each IS cents A
10 pound package may be transported
1000 miles for - cents and 2OOO miles
far a cents, as against the existing
rates of IS cents and S1-25, respect
lively. The cost Of transporting %
pound package 1000 miles VIII be 10
cents, against the present rate of $1;l0,
and for 1000 miles, s1-64, against the
present rate Of $2.25.
Commissioner Lane believes that the
method adopted for the computation
and construction Of express rates Is
scientific and viii result IN the eA-
action Of entirely reasonable charges.
Through the decision announced today
express rates are made that are eX-
nAcLe0
tween the producer OF tOOd common
ties and the consumer by distributing
eQuitably to the weight and distance
the burden of the cost of Transports
ton. At present that burden is borne
chiefly by the parcels of light weight
By commissioner Lanes decision, the
small package will bear no greater
share, per pound, of the cost of trans
portation than the heavy package, ana a
every package weighing less than 100
pounds will hear the same amount OF
terminal expense.
Will Reduce Living Cost.
The charges Of the express com
panies now in many instances, are the
same for Sc pounds as for 100 pounds,
between the same points; and in some
instances they are as much for 80
pounds as for 100 pounds. Under such
a system the householder is compelled
to pay as much for a 10 pound package
as a dealer would pay for a % pound
package, and three or four times as
much as the dealer would pay for 10
pounds included in a 100 pound ship
ment-
Commissioner Lane expresses the be
lief that the system proposed VIII
make practica bic the opening OF direct
avenues of trade between the farm and
the city household He, likewise, is
cf opinion that while the reduction Of
the rates on the lighter weight parcels
will average between 20 and 80 per
cent the express companies themselves
will be the beneficiaTies of a largely
increased business in the handling of
small parcels.
The report shows that more than
500 0OO, 900 parcels are handled an
nually by the express companies in
the United States. The average house
hold of five persons in this country
either sends or receives by express, in
the course of a year, from eight TO 10
packages. The average weight of
these packa ges is 81 pounds; the aver
age express charge is so cents; and
the average haul is 200 miles. 1t ap-
pears that 4 very small proportion OF
the express traffic of the country re-
suits frocl direc: shipments from the
farm to the city home
The investigators have devoted
year 10 the Constructive work of re-
forming the bases Of express rates Of
devisinE simpler and more easily IN
derstood means Of stating those rates,