The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-08-04
DOWN THEY co
Interstate Commerce Commits
sion Orders a Deep Cut
In the Rates Charged by EX-
press Companies.
LOPS S26,OOO,OO REVENUE
approximately Is Per Cent of
the Gross Receipts.
The New Rule Is Made Effective
October Is.

Washington, Aug. 4.-Reductions in
express rates which will cost the COM
panies fully $3.50 900 year-approx-
imately 16 per cent of their gross reve-
nue., were ordered by the interstate
commerce commission today to become
effective on or before October Is, 1913.
Notable reforms in practices also were
ordered.
The most important change prescrib-
ed by the order is by way of modit-
cation of the present graduated scale
of parcel rates. One hundred pound
rates for short distances either have
been left unchanged or slightly reduc-
ed; for longer distances they have been
lowered; for so pounds or less all rates
practically have been reduced. For
packages more than four pounds going
more than 200 miles and less than 2,OOO
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 commits
sion prepared by Commissioner John
H. Marble, are virtual afhrmatlon
of the findings of former Commissioner
Franklin K. Lane, now secretary of the
interior.
By prescribing a so-called block sys-
tenn dividing the United States into
$50 blocks, averaging $500 square miles
as originally proposed by Mr. Lane,
900, 900, 900 different rates now PUBLISH
ed by the express companies will be
reduced to less than 650000 and the
interstate commerce commission be-
lieVes that the system points the way
to a 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 COM
missions order.
The requirement of the order of June
8. 1912, that a label shall be attached
to each parcel, is modified to the ex-
tent that, in case of shipments of per-
ishabIe property consisting of two or
more packages, the label need be at
tached to only one package.
Companies Protest.
The express companies had filed
statement 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 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, 7Indl lIldSHlu uCn dS Sil1ppeTS AdNc |
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 re-
ceive from the parcel post and give it
to the express companies in the form
of higher rates upon the remaining
business"
The new system of rates is not only
q simplifcation of existing rate Struc-
lures and methods, but in the opinion
of rate experts, lays the foundation
for future practice in all rate re-
visions.
While the commission has not con-
the practicabiIity of the ap-
plication of the block system to the
making of freight rates, it is known
that the question may be taken up al
most any time. With a standard
freight rate once established between
blocks instead of between points and
all other rates stated in percentages
of the standard, the mystery of the
present complicated maze of freight
rates, in the opinion of the commits
sion's experts. would be solved.
Basis of Classification.
The basis of the classification pre-
scribed by the commission is that all
articles of merchandise of ordinary
'
ordinary merchandise rates. Articles
of food and drink, with a few eXcep-
tions, are second class and are to be
carried at rs per cent of the first
class rate.
The rates for newspapers and
periodicals as we'll as for bread and
such articles for which specially low
rates now are charged are substantial
ly the same as the present rates.
A permanent committee has been
appointed to revise the routes of ex-
press carriers to eliminate the cir
cuitous routes which are now a cause
of considerable complaint on the part
of shippers.
With regard to the parcel post and
its effect upon the 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. AS
far as the rail carriers are concerned,
It is of no consequence to them wheth-
er they furnish rail transportation for
the express respondents herein or for
the postoffice department. The ex-
press companies, moreover. will not
gross loss of their earn |
ngs upon these small parcels, but
1nly of the net difference between {
heir earnings heretofore and the cost
o them of furnishing terminal service
Ipon these articles. The commissions l
he parcel post is not a justification for :
my higher scale of rates than the
'ne here shown to be reasonable. t
THE commissions order is for two {
years only That period will give I
lbundant opportunity for a test of e
amounting to a normal average. In |
10 other WaV can the absolutely nrOn- Z