The Barre daily times. (Barre, Vt.) 1897-1959, 1912-10-07
Companies Toresee Their
Possible Extinction
BY INTERSTATE COMMISSION
Commissioners Are Not Impressed by
Arguments-Parcels Post Law, Eff
fective Jan. /, Also a Big
Obstacle for Companies.

Washington, Oct. When the inter.
state commerce commission begins its
adjourned hearing on express rates this
week, the express companies of the coun-
try will enter on fight for life. The
companies foresee their possible extinc-
ton in the attitude Of the commission
toward them.
The commissions order, issued early
in the summer, directs the express com
panies to show cause why their rates
should not be reduced to the figures car
ried in the order, which are. on the
smaller packages, between thirty and
forty per cent. lower than those now in
existence. The hearings will be had on
Oct. Q, TO- II and 10.
Franklin X. Lane, the commissioner
who has been handling the express cases,
is even less impressed with the argu-
i ments made by the companies than any
of his colleagues.
| A few years ago the Wells Fargo
company declared 800 per cent. stock
! dividend. The commissions investiga-
tions and testimony of reputable wit
nesses show that there is little money
invested in the business. all these grcNt
profits having been eXtorted from the
public without any risk or outlay, to-
speak of, by the stockholders.
The express companies have another
obstacle 10 overcome. That is the par
GELS post law, which becomes effective
Jan. |. That statute puts into effect
on packages weighing less than eleven
pounds rates that are low in comparison
with those charged by the companies |
1t win be possible for merchants in cities !
TO send ne-pound parcels within the |
free delivery limits for five cents. Such
a package win be carried for 80 miles /
for that sum.
Big shippers have had express rates
practically as low as that for many
years. They are known as "under-the-
counter" rates and the big shippers are
the only ones that have known about
them. The average agent has not known
Of their existence.
Hereafter. no matter whether the
much lower rates suggested by the COM
mission are made effective or not, every
shipper will be given the same rate,
under the same conditions, or somebody
win go to Jail.
Should the companies decide to meet
the rates made by the government, the
commission will take it as a confession
that the Yates are high enough to pay
something over the bare out-of -poeket
cost of carrying packages.
The underline counter rates long ago
put serious dent in the proposition that /
there Is no money in carrying a package ,
for anything less than the customary ,
two-bit fee.
There is no secrecy about the fact
that the commissioner and the postoffice
officials have been working together in
This matter Mr. Lane told the express
that IL was a question wheth-
Pr they would reform their business or
have il wiped ont by the establishment
IF complete parcels post system Il
was that presentation that brought
hem TO an agreement with Lane for
he appointment Of committees to CO.
operate with him in framing rules and
equations.
The scale of rates proposed was the
work of rate experts in the commission
md in the postofticc department The
asst mentioned produced the clerk who
igured out the system of making rates
" zones, and il was his system that
vas employed in making the rates for
he parcels post. which, on short dis
ances and small packages, proposes
ates much lower than those proposed
or the express companies by the com
Mission.
On the larger packages and for the
reater distances i, those exceed
~ 500 miles-the parcels post rates
ill be higher than the express rates in
feet now. which leads 30 the inference
han Mr.. lane believes that for long
istances the express companies should
c allowed 10 haul the paSkages.