The Birmingham age-herald., 1913-08-05

quar- ters that the express companies will
attempt to test by legal means the con-
stitutionality of the commissions orders
The express companies had filed state
ments indicating that the losses of reve-
nues under the proposed rates would be
intolerable and argued strenuously that
tie establishment of the parcel post had
deprived them of quite 80 per cent of the
revenue they formerly reeeivd from par
cells of II pounds or under.
They contonded that the express busi-
ness could not survive the losses from
both sources.
This is equivalent to saying, - COM
ments Commissioner Marble in his report,
that inasmuch as shippers have been
siyen the convenience and economy OF
the parcel post the express carriers
must On tiat account be allowed to charge
higher rates than are now considered
reasonable. The commission is called
upon to take from the shippers of the
country all the benefit they receive from
the parcel post and give it to the express
companies in the form of higher charges
on the business remaining
The new system of rates is not only a
simplification of existing rate structures
and methods, but in the opinion of rate
experts lays the foundation for future
practice in all rate devisions.
May Be Taken Up
While the commission has not consid-
cred the practicability of the application
of the block system TO the making of
freight rates 1t is known that the ques-
tion may be taken up almost at any time.
With standard freight rate once es-
tablished between blocks instead of be-
tween points and all other rates stated
in percents of the standard, the mystery
of the present complicated maze of freight
rates in the opinion of the commissions S
experts would be solved.
A basis of the classification prescribed
by the commission is that all articles of
merchandise of ordinary value are to be
carried at first clas sor ordinary mer-
cnandise rates.
articles of food and drink with a few
exceptions are second class and are to be
carried at 70 per cent OF the first class
rate.
The rates for newspapers and period
icals as well as for bread and such kindred
articles for which specially low rates
now charged are Substantially the same
as the present tariffs.
A permanent commission has been APP
pointed to revise the routes of express
carriers runs to eliminate the circuitous
routes (which are now a cause of consid-
cradle complaint on the part of shippers.
AS to the parcel post and its effect upon
the. express companies the report says:
with regard to the small package buSi-
ness of the parcel post. it should be noted
that it will still be carried on upon rail-
roads of the country. SO far as the
railroads are concerned it is of no i'm
portance to them whether they furnish
railroads for the business handled herein
CT proposed. Express companies more
over will not experience gross loss of
their earnings upon these small parcels,
but only of the net difference between
their earnings heretofore established and
the cost to them of furnishing terminal
service upon these parcels.
'The conclusion of the commission is
that the establishment of the parcel post
is not a justification of any higher scale
of rates than those shown herein to be
reasonable.
The commissions order is for two years
only. That period will give abundant op-
portunity for a test of these rates under
NAL mean. In no other way can the
absolutely proper rate basis for respond
ents be finally determined.
Respondents are also at liberty at any
time to bring forward new facts as a
basis for petition for modification of
this or any other service order.
The decision of the commission deferred
as it has been for more than one year
followed an investigation that occupied
nearly six years of hearings, special ex-
aminations of accounts, and resorts COW
ering in detail the various phases of the
express traffic.
Nearly one carload of books and papers
have been filed and are a part of the
cases proceedings.