The San Francisco call., 1913-08-05
EXPRESS RATES
OVER COUNTRY
HEAVILY GU 7
Reductions Which Will Cost
Companies Fully $26,0OO,-
600 Ordered by Inter
state Commission
REFORM PRESCRIBED
AS TO PRACTICES
For One Class of Packages
New Tariff Is Lower
Than Parcel Post

WASHINGTON, Aug. 4.-Reductions
in express rates which will cost the
companies fully $4,000. 600 year. ap-
proximately 16 per cent Of their gross
revenue were ordered by the inter-
state commerce commission today to
become effective on or before October
Is. 1913.
Notable reforms in practices also
were ordered
The most important change pre-
scribed by the order Is by way of
modification of the present graduated
scale of parcel rates.
One hundred pound rates for short
distances either have been left un-
changed or slightly reduced; for
longer distances they have been low
cred; for so pounds or less all rates
have been reduced.
For. packages more than pounds
going more than 200 miles and less
than 1000 the new express rates are
generally lower than the parcel post
rates: for more than 5000 miles the
rates are practically the same.
LANE IDEAS CARRIED OUT
The report and order of the commits
sion prepared by Commissioner John
Marble are virtual affirmation of the
findings Of former Commissioner Frank
lin X. Lane. now secretary of the in
terror.
Pxy Cavfh a1 Ian1x
system, dividing the United States into
$50 blocks. averaging $500 square
miles, as originally proposed by Mr..
Lane. 900.o00.0o0 different rates now
published by the express companies
Will be reduced to less than $50. 900
and the interstate commerce commits
sion believes that the system points
the way to a solution of the existing
problem of freight rates
The express companies had filed
statements indicating that the loss of
revenue under the proposed rates would
be intolerable and argued strenuously
that the establishment of the parcel
post had deprived them of 80 per cent
OF the revenue they formerly received
from parcels of il pounds or less They
contended that the express business
could not survive the losses from both
sources
This is equivalent to SAYING" COM
ments Commissioner Marble in his re-
port, that inasmuch as shippers have
been given the convenience and econ
omy of the parcel post. the express car
riers must, on that account. be allowed
would be reasonable. That is to say,
the commission is called on to take
from the shippers of the country all
the benefit they receive from the par
eel post and give it to the express COM
panies in the form of higher rates on
the remaining business"
The new system of rates is not only
a smpIification of existing rate meth
DDS. but in the opinion of rate experts,
lays the foundation for future practice
in all rate revisions.
While the commission has not con-
sidered the practicability of the appli-
cation of the block system to the MAX
ing of freight rates, it is known that
the question may be taken up almost
at any time.
MYSTERY WOULD BE SOLVED
With standard freight rate once es-
tablished between blocks instead Of be-
tween points. and all other rates stated
In percentages of the standard, the mys
terry of the present complicated maze of
freight rates, in the opinion Of the COM
missions experts would be solved.
The basis of the classification pre-
scribed by the commission is that all
articles OF merchandise of ordinary
value are to be carried at first class or
ordinary merchandise rates.
Articles of food and drink. with a few
be carried at rs per cent of the first
class rates.
The rates for newspapers and period
icals. as we'll as for bread and such
articles for which specially low rates
are charged, are substantially the same
as the present rates.
Extension Likely to Be Asked
NEW YORK, Aug. 4.--That the ex-
press companies would be unable to
comply with the order OF the inter-
state commerce commission for gem
eral reduction in rates by October IS,
the time specified, and probably would
ask for an extension of time, was the
opinion expressed tonight by Duncan
L. Roberts, president of the United
States Express company.
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