The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-03
U.S.. EXPRESS TOQUIT
BUSINESS, Is REPORT
Unsuccessful Competition With
Parcel Post Said to Be
the Cause.
LOST $185, 965 IN 5 MONTHS
Directors Admit Liquidation
Has Been Discussed as
Protective Act.
LOST Si85,965 IN 5 MONTHS

Uz8Htsu8 CutS lI1 IdteS trat Wert INTO SIIeCt
February appears 70 disastrous that
the United States Express Company. &C.
curdinS to we'll authenticated reports In
Wall Street. has practically decided 10
60 out Of business.
Directors. though reticent yesterday. ad-
United that liquidation and Distribution
Of aasets to stockholders are being actively
discussed.
II will be the FIRST instance where q
great corporation will have gone out OF
business as the result of competition with
tho Government.
The first big demonstration of the taxi
Ing Of business from private corporations
In the move toward Government owner
ship Of public utilities will be contained
N the winding up OF the Affairs OF the
finally accomplished
Though 1t 10 probable that In the event
Of liquidation there are profitable routes
and contracts that other express compa-
MES would be willing TO take over there
- large amount OF work now being
done by the company which other COM
panies would not care to rick burdening
themselves with In the present gloomy
outlook for the companies. which are all
ahowin& very heavy Losses a. compared
with the business Of previous years.
Either the Government would have to take
this over or the community would he the
loser.
Report 10 Not DeaseA.
President d. I. Roberts and Frank II.
Platt director and counsel Of the CON.
pAny. who represents the large Plat hold.
inss OF stock refused yesterday to deny
or confirm the reports OF approaching
liquidation. Joseph w. Hartman. one Of
the directors who represents the Hartman
estate holdings. denied that the COMPANY
had decided to lauidate. saying that II
will continue TO night the parcel post.
President Roberts said the company
would be doing business on July 1, the
beginning of its new fiscal year.
The financial community. however, con.
unued Its belief that the directors have
discussed the matter practically to the
poUt where steps are to be taken to
appoint . liquidating agent. Accountants.
II 10 understood. have been on the books
for several months working out the iioui.
dalton value.
Tho companies have had fourteen
months OF operation OF the parcel post
In the hve months Of the present fiscal
year. from July 1 to November 80. the
operating income Of the four big com.
panies-United States. Adams, American
and Wells Fargo-was nearly 81. 600. 900
lower than in the previous year. The
United States Express Company lost
1896 In this period from the earnings
OF the preceding year. II has been hardest
hit and has been In the weakest position to
stand II. In 1912 the deficit from OPERA
tions was s6l,013 and in 1913 Sl09.5l2.
No dividends have been paid since 1919.
The big blow to the express companies
was the reduction In rates that went into
effect on February I, which, II Is estima ted.
VIII cut receipts by Is per cent The
New York State commission adopted q
schedule of rates on the same low basis
of the interstate rates.
II 10 understood that Mrs. T. H HArri-
man. who has exercised a close personal
supervision Of the financial affairs of the
Hartman estate. and the Representatives
OF the Plat holdings practically reached
the determination that IL would be better
business to liQuidate than TO risk further
inroads Of rate cutting and Government
competition.
slight Advance Yesterday.
Fhs United States Express Company
stock sold at las In 1910 and At I0Oh In
1912. Last year II fell to 39h. The price
had q sudden rise OF ~ points last Friday
Yesterday It advanced from sc to 72H
Oh the reports OF liquidation.
Il 10 understood that price not faI
hn phf In. k>
Of liquidation. The company holds gill
edged securities valued At more thar
$4,000, 900, cash exceeding $4,000 and Z
loan of more than 81. 900. 900 to the United
state Express Realty Company. which
owns the Office building at 2 Rector street
a total Of about $4,000 900 In quick assets
according to It's balance sheet OF June 80
1918. In addition II has valuable rea
estate and mortgages amounting to nearly
Totsi assets were sll.ssI.6s7. with ,
surplus OF 1l,3S7.+96. according to tn
last balance sheet OF June 30 1913. Thu
stock IL al0.o00.ooo In nominal valu'
amount. and there Is no bonded Indebted
ness.
The company Is a joint stock associa
ton. established In 1854. Its directors. l
IN understood, have almost complete
power. There has not been. stockhold
eY6 meeting for nifty years. A movemen
was started among stockholders In 1908
force the directors to call q meeting
Two-thirds Of the stock was necessary
but only SO per cent. OF the stockholder
could be persuaded to sign the petition
Because Of the peculiar status OF tn
company II II recognized that decisio
10 Iiquidate could be taken easily. Tn
directors can decide without reference
stockhoiders. The board Is small on
and 10 thoroughly In the hands OF tn
N. rrt,uan and Plat interests The direC