Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-05
MAY PUT EXPRESS
/ OUT OF BUSINESS
Uncle Sam in Fair Way of
Getting Rid of Conn
petitors.
POSTMASTER-GENERAL HAD
. SUGGESTED BUYING THEM
New Rate Regulations May
Bring About Same Result
Without Expense.
Star Bureau,
METROPOLITAN National Bank Bldg
xUAGHINGTnN AuR L

Increased postal revenues ana Iur-
.ther reductions in parcel post rates,
with increased postal facilities, are
likely to follow close upon the heels
of the adoption of the new express
rates ordered by the Interstate Com
merce Commission yesterday.
The new express rates, which are TO
be put into effect by the companies
on or before October 10 next, have
been under consideration by the In
terstate Commission for over two
years. The proposed zone or block
plan for fixing express rates., which
makes rates uniform for similar dis
tances and service throughout the
country. was announced by the COM
mission in June of last year, and has
been under study and comparison
since that time.
Instead of more than 900,000,OOO
separate express rates of the different
companies, which are now in effect
there will be only $4,000 rates in the
United States. The new system of
finding rates Is slightly more COM
plicated than the parcel post zone sys-
TEN, and the average citizen will
probably continue to find II easier
to go to the nearest express office
nnd ask the rate than to try to figure
It out for himself from the several
tables of classifcations and block
numbers that are necessary to the
task. However, the average man can
figure 1t out. if he sets himself to the
job, and the rate to the destination
of his shipment will be the same, re-
CARELESS of what companies may have
TO carry 1t there.
One of the drastic changes in the
present system of express rates Is
the new order that the rate between
-, 10, fIAn In hAfh
directions. which Is not now the rule.
Parcel Post Gets Monopoly.
In effect, the new express rates
will give the parcel post "a monopoly
of the carrying of all packages of
five pounds or less to all parts of the
country. While this rule does not
hold good absolutely, the general
effect of the proposed new rates will
be to make express rates higher than
parcel post rates on packages of five
pounds or less. and lower than parcel
post rates on packages of from six
10 eleven pounds for all distances.
The newly announced parcel post
rates on packages up to twenty
pounds, for distances of $50 miles or
less. are so much lower than the ex-
press rates allowed for equal weights
and equal distances, that 1t will make
f. 1t almost impossible for the express
companies to secure business within
these limits in competition with the
postoffice, excepting as they are able
, to offer better service.
Postoffice authorities and postal
students look for an immediate large
. increase in postal business and rev.
enues from second-class mail matter
when the new rates go into effect.
second-Class Matter Cent "a Pound.
This second-class matter consists
mainly of weekly and monthly mag
azines and periodicals. 1t is carried
by the postoffice, for any distance
when mailed by publishers, at one
Z cent pound. There has been long
strife over proposals to increase this
rate. 1t being urged that it is not
high enough. While postal officials
have argued that the postoffice loses
money on the second-class mail, how
sver the express companies have
competed with the postoffice for the
business. and for years have carried
magazines from New York and Bos-
ton to Pittsburgh. Washington, Chi
fago. st. Louis and even to Kansas
city. for a cent pound or less. The
effect of this competition for carrying
the magazines has been that the ex-
press companies have made money by
(, monopolizing the shorter hauls on
periodical matter. and the postoffice
. has lost money on the long hauls that
the express companies didn't want
win Take Periodicals from Express
! Under the new rates the express
companies will be compelled to raise
their charges on periodicals, the rate
being fixed at one-half of the first
, class express rate, or not less than
a cent pound except where the first
class rate Is less than one cent, The
. e, ct of this will be to take most of
~ periodical business from the ex-
@ress companies and give it to the
! .eostoffices. With the larger volume
of this business and shorter hauls the
result will be an enormous increase
in revenues. without proportionate in
crease in cost of hauling
Since the parcel post was estab-
lished the average weight of packages
carried for the first six months was
less than one pound. Under the high
rates and bad service with which the
parcel post was established the ex-
press companies got all the larger
packages and short hauls. in which
there was profit. and the postoffice
got only the very small packages and
long hauls.
Parcel Post Makes Money.
Even at that the parcel post has
paid expenses and made money. Now,
with the express companies compelled
TO take the long hauls where their
rates have been reduced. and placed
at disadvantage in bidding for Ave-
( pound packages or for larger pack
ages for shorter distances, postal rev.
enues NAV be expected to jump.
1t would not be surprising If in the
first year under the new express
rates the postal revenues should
double in volume.
Postmaster General Hitchcock
wanted Congress to buy out the ex-
press companies when the parcel post
was established. 1t looks as though
the Interstate Commerce Commission
has opened the door for the postoffics
to put the companies out of business
without buying them II. b w.