The Birmingham age-herald., 1912-07-15
SWEEPING CHANGES IN EXPRESS RATES ARE RECOMMENDED Drastic Reforms In Regula- tiOns and Practices Are
 Presented COMMISSION MAKES
 AN INVESTIGATION Express Companies of Country Are Thoroughly Interlocked-Long
 Step Toward Solution of
 High Living Cost

Washington, July 14-Sweeping reduc- tions in express rates averaging, in gen eral. approximately b per cent; drastic reforms in regulations and practices; and comprehensive changes in the methods of operation, are prescribed in report
 made public today by the Interstate Commerce commission of its investga- ticn into the business of the thirteen
 great express companies of the United States.
 Dealing with the identity of interest
 between the various companies, the re-
 port finds that while these companies
 are separate legal entities, ''it is of in- terest to regard this fact that by stock
 ownership and otherwise they are so in-
 terlaced, intertwined, and interlocked
 that it is with difficulty we can trace
 any one of the greater companies as
 either wholiS independent in it's man.
 agement or the agency of q single rail-
 road system. So that while these com
 panies operate separately and compete
 with each other for traffic, the express
 business may be said to be almost a family affair. An interesting genealogical tree in fact, might be drawn showing
 common ancestry in all of the larger
 companies. And while many names may be used to designate these companies,
 it is within the fact to say that aside from the operations of the minor and
 distinctly railroad express companies the express business of the United States is
 managed by not more than three groups
 of interests"
 Inquiry Very Extensive The inquiry WAS the most extensive, | and, in wealth of infinite dstail, probably tho most thorough, ever prosecuted by | the commission. It was conducted and the report was prepared by Commissioner Franklin k. Lane. It has been in pro-
 gress for nearly three years. The re- port itself makes 600 printed pages. 1t involved an examination and comparison of practically more than 600,000,000 ex-
 press rates in effect in this country, in addition to an examination of millions of waybills and an investigation, through the books of the companies, of their financial operations and business meth- ods.
 Commissioner Lane is of opinion that
 the conclusions reached constitute long step towards the solution of that gravest problem of the American householder, the high cost of living.
 | The greatest reduction of rates pro- posed is on small packages-that is on parcels which weigh less than F pounds. Rates on packages of more than F pounds were found to be more reason- able than those on smaller parcels. l Briefly stated the new rates may be | said to be based upon a minimum charge 1 of 21 cents for one pound package. l This charge increases in ratio to the n- crease of weight and distance, at rates varying from three-tenths of a cent a to ah Tua al cents a pound, according to the concu- sions of the commission, is approximately l the highest rate per pound for the great l est distance possible for a parcel to be | carried wholly within the United States,
 exclusive of Alaska. The New Rates
 Packages weighing two pounds. for in- | stance. may be shipped 1000 miles-New | York City to Chicago-for 24 cents; and 2oO0 mies-New York City to Denver | for 31 cents, the present rates being res- pectively for each 35 cents. A three pound package will cost 27 cents for 1000 mile sand 37 cents for 2000 miles, the ex- | isting rates being, respectively, each 45 cents. A ten pound package may be | transported 1000 miles for 42 cents and 2000 miles for 77 cents, as against the ex- | istng rates of 70 cents and $1.25, respect l ively. The cost of transporting twenty l five pound package 1000 miles will be 76 cents, against the present rate of $1.10, and for 2000 miles, s1.64 against the pres 1 ent rate of BPS. EslSl Commissioner Lane believes that the | method adopted for the computation and construction of express rates is scientific and will result in the exaction of en- 1 tirely reasonable charges. Through the | decision announced today express rates are made that are expected to open an avenue of trade between the producer of | food commodities and the consumer by 1 distributing equitably to the weight and distance the burden of the cost of trans- l portation. At present that burden is | borne chiefly by the parcels of light weight. By Commissioner Lanes deci- | sion, the small package will bear no I greater share, per pound, of the cost of, l transportation than the heavy package, and every package weighing less than | 100 pounds will bear the same amount of | terminal expense.
 | The charges of the express companies now in many instances, are the same l for 50 pounds as for 100 pounds, between
 the same points and in some instances they are as much for 30 pounds as for 100 pounds Under such a system the householder is compelled to pay as much | for a 10 pound package as q dealer would nay for a 9 pound package, and three or l four times as much as the dealer would pay for 10 pounds included in 100 pound i shipment.
 Will Benefit Both Parties l Commissioner Lane expresses the be- lief that the system proposed will make practicable the spening of direct avenues
 of trade between the farm and the city 1 household He, likewise, is of opinion that while the reduction of the rates on ! the lighter weight parcels. will average ] between 20 and 30 per cent. the express companies themselves will be the bene- | ficiaries of a largely increased business ] in the handling of small parcels.
 The report shows that more than 300.- | 0OG,o00 parcels are handled annually by l the express companies in the United