Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-08-04
Reductions by Commission
Will Hit Companies
Hard.
INVESTIGATED 6 YEARS
Block System of Computation
Lays Basis for Simpler
Freight Schedule.

Washington, Aug. 4-Reductions Of
express rates which will cost the COM
panies fully S26,OOO,O 900 a year, approx
imately 16 per cent of their gross rev.
enue. was ordered by the Interstate
Commerce commission today to be-
come effective on or before October l,
1913.
GRADUATES SCALE CHANGED.
The most important change pre-
scribed is a modification of the present
graduated scale OF parcel rates. one
hundred pound rates for short dis
tances either have been left unchanged
or slightly reduced. for the long sr dis.
tances they have been lowered For
80 pounds or less all rates have
been practically reduced For packages
Of more than four pounds going more
than 200 miles and less than 1000 the
new express rates are generally low
er than the parcel post rates. For
more than 1900 miles, the rates are
practically the same.
The report and order of the COM
mission, prepared by John n Marble.
are in affirmation OF the findings OF
former Commissioner Lane, now sec
retary OF the interior.
CUTS OUT MILLIONS OF RATES.
BY prescribing a so-called block sys.
TEN dividing the United States into
$50 blocks. averaging $500 square
miles. as originally proposed by Lane,
800 ,000.0 900 different rates now publish
ed by express companies, will be re-
duced to less than $4,000 and the in
terstate commerce commission be-
lieves the system points a way to the
solution OF the existing maze Of freight
rates.
EXPECT 4 FIGHT.
The general impression in official
circles is the express companies will
attempt TO test by legal means the con-
stitutionality Of the commissions or
der
The new system of rates is not only
simplihcation OF existing rate struc-
tures, and methods. but in the opin-
ion OF rate experts lays a foundation
for future practice in all rate revis-
ions. While the commission has not
considered the practbility Of applica-
y
ing of fr-sht rates. it is known that
the question may be taken up almost
any time.
ELIMINATES MYSTERY.
With standard freight rates once es-
tablished, between blocks instead of
between points and all other rates
in percentages instead OF the standard,
the mystery Of the present complicated
system of freight rates, in the opin-
ion OF the commissions experts. would
be solved. The basis OF classification
prescribed by the commission is that
all merchandise Of ordinary value is TO
be carried as first class or at ordinary
merchandise rates
FOOD SECOND CLASS.
Articles OF food, drink. with q few
exceptions, are second class and will
be carried at 75 per cent Of the first
class rates. Rates for newspapers as
well as for bread and such articles
for which specially low rates are now
charged. are substantially the same
as the present rates.
Permanent committees have been
appointed to revise the route Of eX.
press carriers 10 eliminate routes
which now cause considerable com
plaint on the part OF shippers.
COMPANIES PREDICT RUIN.
The express companies had filed
statements indicating the losses OF
revenue under the proposed rates
would be intolerable and argued siren
uously that the establishment Of the
parcels post had deprived them OF
quite 80 per cent of the revenue for
merly received from parcels of II
pounds or less. The commissions con
clusion is the establishment of the par
Gel post IS not a justification for any
higher scale OF rates than the one here
shown TO be reasonable.
TWO YEARS FOR TEST.
"The commissions order is for two
years" says the report. That period
will give opportunity for a test o.
these rates under conditions amounting
20 normal average Respondents are
a. liberty az any time TO bring forward
new facts as basis for a petition fol
modification Of this or any other or
der"
The decision was deferred more
than year and followed an investiga
lion that occupied nearly six years.
Watch Thief Taken.
.