The Washington herald., 1912-02-02
PROBE ON EXPRESS
RATES STARTLING
overeharges and Chaotic Tariffs
Are Shown in Intsrstats Com
merce Commission Hearing.

There were some interesting develop
ments yesterday before the Interstate
Commerce Commission IN the investiga-
tion which the commission is conduct-
ing into the rates, rules. and regulations
Of the express companies of the coun-
try. The commission's attorneys finished
their case in chief. and the defense OF the
express companies opened, one witness,
representing the American Express Com
pany. beginning to testify. From figures
placed in the record yesterday by Attor-
ney Frank Lyon and Special Examiner
w. A. Ryan, representing the commits
sion. and obtained from the express COM
panies themselves under an order OF the
commission. II deevloped:
That the express companies OF the
country face criminal prosecution II their
records continue TO show enormous Num-
bers OF overcharges and undercharges.
Lower Rates Abroad.
That rates abroad are lower by far
than express rates in the United States.
That the rates shippers Of parcels from
this country to France for the haul in
the United States is in some instances
800 per cent higher thar for the trans
portatiun OF a like parcel in the United
a parcel which originates in France near
Iy 100 per cent higher than FOR a nKe
haul OF a domestic parcel. These figures
were taken from statistics furnished the
commission by the American Express
Company, which operates in conjunction
with the French parcel post.
That the Adams Express Company
spent for the year ending June ~, lslo
S5l, SIS which II designated as 'gratutties,
a NVR0r aWn
That the same company and others
charged TO cost Of operation the main
tenance OF their investment departments
many OF the companies being large hold
ers Of express company stocks and bonds,
railroad stocks and bonds. and stocks and
bonds OF other common carriers.
That the express companies pay their
stablemen slightly higher wages than
their cashiers and clerks.
II was also intimated by Commissioner
Lane that consolidation of all express
companies might be a remedy for evils
complained of, and that this consolida-
tion would be warranted in the same
manner as the agreement by railroads
10 maintain tho same rates subject TO the
control OF the Interstate Commerce Com
mission.
Railroads to Blame:
The tendency of all the testimony seems |
TO show so far that the. express companies
do not make exorbItant profits, but that |
the railroad companies get the major por- |
tIon Of the total and the net revenue. |
In view OF this the express companies |
may be compelled Notwithstanding the |
between them and the |
railroads to solve their problems by |
formally complaining to the Interstate |
Commerce Commission against the rates |
charged by the railroads, which, accord |
ing to the figures before the Commission.
amount 10 % per cent OF the gross rev.
enue.
w. \. Ryan. special examiner, placed
in the record in the afternoon session
statistics showing that one company in
4 single day had made 400 undercharges
and overcharges. aid another had made
1000 undercharges and oyercharges,
here being ameng these 2,9SS over
charges in all When these statistics
we're placed In the record, they being
taken from the express companies own
records, Commissioner Lane, who pre-
sides at the hearing, made the following
ut has been concIusiveIy shown that
;oUr express rates are unintelligtble even
70 your own agents. and the commission
S going to prosecute you unless there is
/ decided change. II We would undertake
I
and put out OF business every
express company in the United States
viii warrant that II there is one letter of
protest against overchargcs hled with the
commission there are ten thousand You
nave got to put in some system by which
,ur body can tell what the rates are. l
ave had three rates quoted to me by
he same agent on the same package
N the same day..
7. B. Harrison. an attorney represent
ng the Adams Express Company, at
empted to show that the overcharges
md undercharges were not Intentional.
nd Commissioner Lane tartly responded
hat that would be something for a grand
ury TO determine.
II was shown yesterday that the Amer 4:
can Express Company collects Slc2 at :
Is New Haven Office on a one-pound
ackage for France. Out OF this II pays
he French parcel post system q cents
or transportation OF the parcel from
lew York to its foreign destination, thus
citing 10 cents for the transportation
rom New Haven TO New York The
egular domestic rate for the parcel is I
) cents. On business from New York I
D New Haven from France the American 8
Express Company gets as its share S6
ents on similar packages. The American
Express Company also gives n nat rate
( g cents on packages Of eleven pounds }
r under on all foreign business to any 5
art of the United States.