The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1913-08-05
HEAVY SLASH IN
EXPRESS RATES
Sweeping Order of Interstate Com
meroe acknowledgements
May Contest.
DECLARE REDUCTION TOO BIG
Say They Cannot Stand Cut Of $780,.
100000 Annually-Predict Death
to Business.

Washington, Aug. 5.-Reductions In
express rates which will cost the com.
panies fully $26,OOO,0OO a year-ap.
proxlmately Is per cent Of their gross
revenue-were ordered by the inter.
state commerce commission, to be.
come effective on or before Oct. IL,
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 gradu.
ated scale of parcel rates. For pack.
ages more than four pounds going
more than 200 miles and less than
1000, the new express rates are gen.
orally lower than the parcel post
rates; for more than 5000 miles the
rates are practically the same.
The report and order of the COM
mission, prepared by Commissioner
John H. Marble, are virtual aff1rma-
ton OF the findings of former Com
missioner Franklin X. Lane, now sec.
rotary Of the iaterior.
Prescribes Block System.
BY prescribing a so called block
system dividing the United States
into2950 blocks, averaging $500 square
miles, 900,00O,000 different rates nog
published by the express companies
will. be reduced to less than $4,000,
and the interstate commerce commits.
oil hn1f hot fh1 ~s>okS
the way to solution of the existing
maze of freight rates.
The general impression in official
quarters is that the express COM
panies will attempt to test by legal
means the constitutionality Of the
commissions order.
The express companies had filed
statements indicating that the losses
Of revenue under the proposed rates
would be intolerable and argued
strenuously that the ablishmant of
the parcel post had deprived them OF
quite 30 per cent Of the revenue they
formerly received from parcels. OF
eleven pounds or less. They contend:
ed 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 the commission Is called
upon to take from the shippers of the
country all the benefit that they re-
ceiye from the parcel post and give
1t to the express companies in the
form Of higher rates upon the remain
ins business"
Paper Charges Unchanged.
The rate for newspapers and pc.
riodicals, as we'll as for bread and
such articles for which specially low
rates now are charged are substan.
TALLY the same as the present rates.
In connection with the parcel post
and its effect upon express companies
the report says:
with regard to the small package
business Of the parcel post, it should
be stated that it still will be carried
upon the railroads of the country.
The express companies, moreover.
will not experience a gross loss of
their earnings upon these small par
coils. but only of the net difference be-
tween their earnings heretofore and
the cost to them of furnishing termi-
aal service upon these parcels.
The commissions conclusion IL
that the establishment of the parcel
post is not a justification for any
higher scale of rates than the one
here shown to be reasonable.
"The commissions order is for two
years only. That period will give
abundant opportunity for a test Of
these rates under varying conditions
amounting to q normal average In
no other. way. can the absolutely
proper rate basis for, respondents
finally be determined"