Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1913-08-04
SWEEPING CUT
ORDERED IN ALL
EXPRESS RATES
Reductions Prescribed by Conn
merce Commission Amount
to S26,0OO,00O Annually.
NEARLY SIXTEENTH
OF GROSS REVENUES
Other Reforms in Practises In
cIuded in Disadvantages
Effective October is.

WASHINGTON, Aug. 4.-Reduc-
ticns in express rates which will cost
the companies fully 100000 a year
approximately is per cent. of thelr
gross revenue-were ordered by the
Interstate Commerce Commission to-
day to become effective on or before
October Is, 1913. Notable reforms in
practises also were ordered.
The most important change pr
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 unchanged or slightly
reduced; for longer distances they
have been lowered; for fifty pounds
or less all rates have been practically
reduced.
Carry for Less Than Uncle sam.
For packages more than four 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.
The report and order of the COM
mission prepared by Commissioners
John H. Marble, are a virtual afflrma-
ton of the findings of former Com
missioner Franklin K. Lane, now sec
retary of the interior.
BY prescribing a socalled block sys-
tenn dividing the United States into
$50 blocks, averaging $500 square
miles as originally proposed by Mr.
Lane, 900, ZOO, 900 different rates now
published by the express companies
will be reduced te less than $4,000
and the Interstate Commerce Com
mission believes that the system
points the way to solution Of the
existing maze of freight rates.
May Test Legality.
The general impression in official
quarters Is that the express com
panies will attempt to test by legal
means the constitutionaiity Of the
commissions order.
The requirement of the order OF
June 8, 1912. that a label shall be at
| tached to each parcel. is modified to
the extent that in case of shipments
of perishable property, consisting of
two or more packages. the LABEL need
be attached to only one package.
The express companies had filed
statements indicating that the losses
of revenue under the proposed rates
would be intolerable and argued
strenuously that the establishment 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.
"sort of Duty to .MuIct Public"
This Is equivalent to saying" COM
ments Commissioner Marble IN his
report, that inasmuch as shippers
have been given the convenience and
economy of the parcel post, the ex-
press carriers must, on that account,
be allowed to charge higher rates
than otherwise would be reasonable.
That is to say, the commission is
called upon to take from the shippers
of the country all the benefit that they
receive from the parcel post and give
1t to the express companies in the
form of higher rates upon the remain
ing business
The new system of rates is not only
simplifica ton of existing rate
structures and methods, but. in The
opinion of rate experts, lays the foun-
dation for future practise in all rate
revisions.
While the commission has not con-
sidered the practicability of the ap
plication of the block system to the
making of freight rates. it IS known
that the question may be taken up at
most any time.
WIN Solve Freight Mystery.
With a standard freight rate once
established between blocks instead of
between points and all other rates
stated in percentages of the stand
ard, the mystery of the present COM
plicated maze of freight rates, in the
opinion of the commissions 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. Ar
ticles of food and drink, with few
exceptions, are second-class and are
to be carried at Is per cent. of the
first-class rate.
The rates for newspapers and peri
odicals as well as for bread and such
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