The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1914-03-19
MORE Of EXPRESS
COMPANIES MAY
QUIT BUSINESS
Claimed They Cam
not Survive Cut in
Rates.
ARE DISAPPOINTED
Necessary Increase in Volume
Not Obtained = Annual
Loss Is $4,000, 900.

New York Despite the fact
that strong denlals nave been made
by officials OF the various express
companies as to reports that they
are considering similar action toward
liquidating their assets, as that an
nounced by the United States Express
Company, authentic information has
been obtained which shows that ac-
countants have been going over the
books and records of the American
Express company with the view to-
ward ascertaining the value of that
company S assets If liquidation sh ould
be decided on.
The situation in which the express
companies as whole are now find
ing themselves, owing to the results
of their operations during the first
month of the enforcement of the 16
per cent rate cut, it is learned, is
positively becoming more dangerous
as the days go by. 1t is now recalled
that during the proceedings before
the Interstate Commerce Commission
during 1912 and 1913, the result of
which was the order to reduce rates,
the companies predicted that the low
er rates would involve loss of from
% to 80 per cent of the gross reve-
nues of the five companies and would
probably reach an annual loss OF over
S2O,000,000 for the companies.
After announcing that the lower
express rates would be put into force
without litigation in the courts the
companies proceeded to make known
the many advantages of the express
CT fr In, Il icaa -
other privileges which the parcel post
does not afford to shippers. in an ef-
fort to so increase their Volume of
business as to overcome as far as pos
sible the loss of revenues from lower
rates and also TO supplement their
finances further by erecting extensive
operating expenses, etc.
Investigation shows that to linn
tied extent the express companies
have been successful in these efforts,
but the results OF the first month S
operation of the lower rates, taken
together with the economies effected
in expenditures during the last four
to six months, have not been encour-
aging to say the least. 1t is estimated
that the only successful way the com
panies might overcome the rate re-
ductions and the loss OF profitable
small package business, due to the
competition OF the parcel post, was
to increase their gross revenues by
25 per cent, and this is gradually
being proved TO be well-nigh impos-
sible of realization.
The predictions that the companies
would lose approximately $40, 900, 900
a urh
practically compel them to cease op-
GRAFTON as a result of the rate reduc-
tions, at present give every promise
OF becoming facts.
The opponents of the express COM
panies have long insisted that the
railroads were receiving entirely too
much pay from the express compan
les for express transportation priyil-
eyes. According to evidence submit
ted to the Interstate Commerce Com
mission, the five eXpfess companies
pay total of over SOS, 900, 900 to
the railroads annually for express
privileges, which, it was held was eX-
cessive and should be reduced ap-
proximately 81 per cent, meaning a
loss of over SIS, 100000 in revenue
per annum to the railroads in ex-
press receipts. The authorities thus
assert that the railroads in general
having serious problems as to means
of supplementing their own revenues,
could not reasonably be expected to
agree to terms even more favorable
| TO the express companies, which steps
might aid the latter to continue on
some profitable basis.