Alma record., 1913-08-07
GUT EXPRESS RATES
Commercial Commission Rules NO
Charges Must Exceed Those OF
Parcel Postal
ENTIRE SYSTEM IS REVISED
Order Rates Made by Zones. Cutting NUMBER
From 100000, 900 to $4,000

An Associated Press dispatch dated
Washington, August A, said: Keduc-
tions in express rates which VIII cost
the companies fully $2600O,OOO year,
a7proximately 16 per cent OF their
gross revenue, were ordered by the
interstate commerce commission to-
day TO become effective on or before
Oct Is, 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 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 practically have been
reduced For packages more than
four pounds going more than 200
miles and less than 1000 the new ex-
press rates generally are lower than
the parcel post rates; for more than
5000 miles the rates practically are
the same.
The report and order of the COM
nilsson prepared by Commissioners
Iohn H. Marble are virtual aftirma-
ton Of the findings of former Com
missioner Franklin K. Lane, now
secretary OF the interior.
By prescribing a so-called block
system dividing the United States
into $50 blocks averaging $500 square
miles as originally proposed by Mr..
Lane, 90O,OOO,OOo different rates now
published by the express companies
will be reduced to less than 650,000
and the interstate commerce commis-
sion believes that the system points
a way to the 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 requirement Of the order OF
June 8, 1912, that label shall be at
tached to each parcel is modihed 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 con-
tended that the express business
could not survive the losses from
both sources.
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
The new system of rates is not
only simplhcation of existing rate
structures and methods, but in the
opinion of rate experts lays the
foundation for future practice in rate
revision.
With 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 compli-
Gated maze of freight rates, in the
opinion of the committees experts,
would be solved.
The basis of the classification pre-
scribed by the commission is that all
articles of merchandise of ordinary
merchandise rates. Articles of food
and drink, with few exceptions, are
second-class and are to be carried
at rs per cent Of the first-class rates.
The rates for newspapers and peri
odicals as we'll as for bread and such
articles for which specially low rates
now are charged are substantially
the same as the present rates. A
permanent committee has been ap-
pointed 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"