The Birmingham age-herald., 1912-07-19
GIVES ATTITUDE OF EXPRESS COMP PAN|ES Platt's Statement About the
 Changes in Rates DEMAND IS GENERAL General Impression Is That Companies Will Yield in Order to Frustrate
 Any Further Parcels Post
 Legislation
DEMAND IS GENERAL
By C. E. STEWART

Fly (. E. STEWART
 Washington. July 1s.-(Special)-Th ex- press companies of the country propose to fight the proposed sweepng reductions and notifications of express rates by the interstate commerce commission, and make a strenuous effort to show the com mission why they should not be adopted, according to Edward D. Platt, vice pres ident and general traffic manager of the United States Express company, and G. H. Bradley, vice president and general manager of the American Express con- pany.
 MT. Platt's observations and statements particularly are regarded as significant of the resistance to be offered by the companies to the interstate commerce commissions order, and the ground of contest they are likely to make. It Is, in fact, officially announced that what MT. Platt had to say ''emanated from the express companies in general"
 MT. Platt contends that the "practices" which the commission condemns are also condemned bya the express managers themselves, and that they are as desirous of changing them as the commission itself. It is the intention of the companies. he says, to put the suggestion of the com- mission into effect MT. Platt gave out this statement:
 Platt's Statement
 "The report of the commission relates to rates and practices of the express com- panies. The vital thing to the companies is the question of rates. The report rec ommends a basis of express rates on a l, taH ss rel, tato ly replacing the present basis of rates and tariff.
 According to the commissions report it is conceded that the average net earn ings of the large express companies from present rates is not in excess of per cent on the business done; in some cases even less. The proposed rates would dras- tically reduce the companies revenue. 1t is, therefore, obvious that the proposed rates would not produce enough revenue to cover the cost of the business, es- pecialIy as the changes in the methods of business to be adopted would increase the cost.
 Fortunately the commission has given the companies until october 9 to show whether the proposed rates should be adopted. The companies will meanwhile prepare statements showing what the proposed rates would produce on busi- ness actually done. which information could not have been known hitherto to either the commission or the companies
 'The question as to the reasonableness of the rates is one that will be decided judicially by the commission in October The companies are not anticipating any final action by the commission that will be destructive.
 unfortunately the question of rates has been up to this time complicated in the investigation with that of regulators and practices, which the managers of the companies have been as desirous of changing as the commission itself. The report contains directions as to these practices which has been made by the commission with the full cooperation of the companies. It Is the purpose of the companies ito adopt these suggestions and directions and put them in force with due appreciation to the commission"
 No express company official would dis cuss the conclusion drawn by Commission CT Franklin K. Lane 10 the effect that the large express companies were so inter- laced by stock ownership that it is dif- ficult to trace any one of the greater companies as either wholly independent of its management or the agency of a single railroad system"
 Neither could any official be led to com ment upon the characterization of the traffic by Commissioner Lane as fam fly" affair, nor had they anything to say in reply to his suggestion that the 13 big companies of the United States were controlled by mot more than three groups of interests"
 Fight as Pretext
 Many believe that in view of the de- mand for a parcels post and the growing public sentiment in favor of its earliest practical adoption by the government, the express officials will fight the reduction proposed by the commission only as a pre- text and to avoid the assumption on the part of the commission that if they ac- cepted this reduction without a strong protest it would be strong evidence in the support of the general charge of exorbi- : tant rates, and it would only predicate further nroads by the commission into their revenues and earnings
 In both platforms issued by the two great political organizations of the coun- try. it is pointed out, there are blanks declaring unreservedly for the establish ment of a parcels post service by the fed eral government Last winter there was a strong movement In Congress to push parcels post legislation, and from the talk and freely expressed views of many of the leaders 1t will be revived with the nexl session with strong indications of there being something definite along these lines accomplished.
 iHeie ids peeii StioHS opposltioH 10 lit parcels post" said a congressman who has been interested in that legislation to- day. That opposition has of course beer fostered by the express companies and a few merchants throughout the country who claim that parcels post will kill the small merchant in his business be- cause 1t will bring him into competition with the mail order houses who will un. dersell him in his own community by req. son of the greatly reduced rates brought into effect by such a system.
 Such opposition. however is compara. lively small in face of the general de- mand for cheaper rates on small articles and if the express companies are alive tc their own interests they will concedt everything demanded by the commission and try to postpone the evil day as long as possible