The Washington times., 1913-08-04
Continued from First Page.)

first ordered June s, 1912. The rates
were suspended pending further investi-
cation. Today they are ordered to go
into effect. The companies originally
alleged that the new rates would reduce
their revenues 80 per cent Later they
said the loss would be 1888 per cent
Despite this opposition, the commission
today ordered the two years trial, be-
ginning next October
Today's order was the result of the
broad investigation OF express rates
begun over a gear ago. 1t forces di-
rect and close competition between the
express companies and the Federal par
eel post In many instances, the new
express rates are much lower than the
parcel post rates. ---.-.
Practically all rates on parcels under
-sfty pounds are radically lowered. On
small packages carried more than 200
miles and less than 1900 miles, the new
rates are nearly all lower than the
parcel post rates. Over 1900 miles, the
express and parcel post service will
cost the same
Reduction of the thigh cost of living
is especially aimed at by the commits
sion in shaving the rates. II orders that
rates on articles Of food and drink be
only rs per cent of the ordinary first
class rates. Rates on bread, newspapers
and magazines are not materially
changed.
Can Compete With Post.
That the express companies can, IL
they will, meet parcel post competition
and also conform to the reduced rates
is declared by. the commission in the
following illuminating phrase:
THE commissions conclusion is that
any losses of business for the future
may be easily replaced by new business
il the express carriers are so inclined,
and that the establishment of the parcel
post is not a justifica ton for any higher
scale of rates than the one here shown
to be reasonable"
Other drastic changes in express
business are ordered by the commits
sion. A new form of express receipt,
more carefully guarding shippers
rights, is prescribed 1t provides an
indemnity to shippers of $50 on every
parcel, under 100 pounds.
Another radical change is simplif-
cation OF rate tariffs. Instead of a
Chinese puzzle" of 900, 900, 900 sep
arate rates now in vogue, the COM
mission places in effect block" or
zone" system of tariffs Of less than
$50, rates for the entire country,
A permanent committee, composed Of
express company representatives and
members of the Interstate Commerce
Commission, 10 revise express avenues
Of transportation and eliminate circui-
tous and befuddling routes, is also Or
ganized by today's order.
Rates Must Be Uniform.
That express rates shall not be higher
in ole direction than in another for
carrying parcels between any two points
is ordered. This eliminates the present
practice Of charging more for carrying
parcels in one direction than IN an
other. although between the same Two
cities. Even If two or more carriers
participate in such service, the commits
sion declares, the rates shall Ee uni
form.
Modification Of rates on small parcels,
however, is the pre-eminent feature Of
the new order
Failure TO make the rate reductions
sooner is explained by the commission
as result Of long-continued investiga-
tions and conferences to avoid doing
injustice either to shippers or to the
companies. Where the commission and
the companies split" was over the n
percentage contracts the companies !
have with the railroads for carrying |
express parcels. The companies also |
contended that parcel post competition |
would seriously cripple their business
and income
On these points, the commission de- |
clared: NO common ground could oe
found. owing to the impossibility of ac- |
ceptance by the commission of the per- !
centage contracts, as making a moral |
o. legal necessity for higher rates than :
could be otherwise justified. Increased |
traffic has been insufficient to meet the !
increases in the demands of the rail |!
carriers The inevitable result must be |
TO constantly increase the cost of serv-
ice TO the shipper If the commission is |
to yield 10 the demand"
Feared Gouging of Public.
The commission declared that IL It !
accepted the railroads express carriage
contracts as binding. the roads could
constantly increase charges and the
public be 'gouged' for continued in
creases agreed upon by the railroads
and the express concerns.
"A considerable part of the respond |
ents' (the express Compaaies) arguments
is to the effect that the loss of business
due 10 the parcel post will so far re- !
duce their earnings as to render all pre-
vious Investigations valueless," the com
mission declared.
This is equivalent TO saying that in
asnuch as shippers have been given the |
convenience and economy of the parcel
post the express carriers must on that !
account, be allowed TO charge higher |
rates than would otherwise be reason |
able. That is to say, the commission is |
called upon to take from the shippers
of the country all benefit that they re- |
ceiye from the parcel post, and give IL |
to the express companies in the form OF |
higher rates upon remaining express |
business. |
80 far as the rail carriers are con- |
cerned, il is OF no consequence to them |
whether they furnish transportation |
for the express companies Ur the Post
office Department"
That the express companies give |
away 100000 worth of free service |
every year through franks" Is assert |
cd by the commission.