The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-25
HIGHER MAILPAY
DUE TO RAILROADS
Merchants Association Finds
They Arc Underpaid $11.-
900. 600 a Year.
TO OPPOSE REIMBURSEMENT

invest CATION Of the payment to railroads
FOR mail carrying. finds that they are
undcrpaid to the extent Of $l1. 200, 900
= year under he present system. and
opposes any bill for the reimbursement
u railway mail pay on the basis mainly
Of space or as proposed by the Bourne
and Moon bills. The loss Of revenue
from the present railway mail payments
Ia a considerable factor in the decreased
earnings Of the roads. the report says,
and adds
at * vitality important to the pro.
ducing. manufacturing and distributing
classes in particular and to the entire
people Of the nation In general that
their transportation facilities be con.
stan,ly maintained upon a high plane
OF efficiency. A contrary condition
would inilict great harm and serious
loss upon the entire community.
continued efficiency of existing rail-
roads Is impossible unless their revenues
are sufficient to meet the costs OF opera.
ton. provide for maintenance and bet
,erment. and supply n fair profit upon
the capital employed. Unless these con.
dtions are met. additional railroads for
future needs cannot he constructed, ms
otherwise capital cannot be secured for
such construction.
During recent years the net earnings
Of the country's railroads have been
constantly declining. until they no
longer suffice to provide for the proper
demands upon them.
III efficiency Is to be maintained. the
decline in railroad net earnings must
zt, ~, ar.,ScA k,.A L.. -.--t---
must be restored to a higher level. This
can he done only by increasing the rates
charged wherever they are shown to be
unduly low
The Investigation was made by the
associations committee on postal affairs
" which William Fellowes Morgan,
president Of the association. IL chairman
On il were also Charles Eddy, Frank
de X. Huyler. J. NJ. Masten, Frank r
McMillin. Robert L. Neuse, J.. Louis
Sehaefer, Philip l. Schell and William
r. Wilcox. II was conducted by +. Il.
De Berlrd, head of the associations b.
leau OF research.
In his report Mr.. De Berard estimates
that FOR a given sum the railroads are
now carrying twice the weight carried
IN 1902 for a given sum-. and hat the
margin of profit on mail carriage has
almost disappeared. The cause for this
deficiency. he says. is due to three
causes Apartment car space side and
transfer service and Quadrennial weigh
.ngs
Abou. 1000 Of these apartment carr
ere nov provided for the mail service
by the railroads. he points out, In which
only 10 to 20 per cent Of the space
Is required for the actual carriage OF
the mails, the remainder being used for
sorting. The roads are paid for the
weight OF the mail. but not for the space,
and 10y this arrangement the roads lose
approximately $4,000, 900 a year.
No payment IL I ade to the roads
tog carrying the mails TO and fro be-
isecn stations and certain classes OF
post Offices or for transfer to stations
on The lines of other railroads, which he
estimates deprives the roads of $4,000
900 OF yearly revenue. The greatest loss
however. comes from the quadrennial
velghings over a route by which no al
lJvauce Is made for increase OF weight
during the four year period. Following
the parcel post changes the increase
in weigh doubled and now causes ar
hnrua! loss to tho roads OF S7.400.000.
Congress has made n temporary allow
arce Tor this increase OF I.6ss, 600.
which reduces the loss to 5000. 900
Yearly.
For the carriage OF commodities by
parcel post" continues Mr.. De Berard
the Government under the space plan
would pay less han one-third the rate
which the same commodities would pay
Transported upon freight trains. This
rate : excessively discriminatory in ia
Vor Of the Government. 1t II not only
unjust in itself. hut 1t creates the possi-
hIty, and indeed the very likelihood. OF
Hl.EaH a $500. L.. 49, III
freight revenues.
The Postmaster-General advocates.
and is seeking to promote, the general
carriage of commodities by post. "A re-
cult that can he reached by increasing
he weight limit to 100 pounds and re-
duc.ng rates. Cnde the car mile rate
proposed. the Department could without
loss carry by mail parcels OF 100 pounds
or less at the rate Of one and n quarter
cents per ton mile. Any postal rate
less than the first class freight rate
would convert an enormous volume OF
Nigh rate freight traffic INTO postal traffic
ana the railroads would lose two-thirds
% their present revenues from such con-
verified traffic. A further and collateral
result would be very serious Interference
with passenger train service, and ma
'er'al Increase In the cost OF operation
We can conceive OF no sound rea-
cons why the United States Government.
should pay for the superior service OF
passenger trains a rate greatly lower
than ordinary shippers pay for the In
;er.or service of freight trains. Nor dc
we hol.eve It possible to Justify a rate
which will enable the post Office to
Transport for the public merchandise at
one-nalf or one-third the rates now re-
c'.Ned by the railroads for transport
ing such merchandise, We believe II
'n,o."rtbly unjust that the post office
nv means of excessively discriminatory
rates. granted to It by law should be
'ahied successfully to compete with the
a.roads for their most profitable freight
'FaNi", To deprive them OF a large part
" II, and thereby enormously to deplete
lH'r present freight revenues"
i. their resolution advocating changes
~ 'an present method of payment the
association recOinmends
'4t nent for the present for weight
m tie basis OF the existing law. but
VIZ provision for mt instead OF
gpad-e1nIil weighings.
Pay ment for apartment car space pro
fa'a upon the basis OF payment now in
'N,' ipr fun postal cars.
'l'.' Wcnt 10 the railroads for side and
NaHH''r services or az an alternative
mat 'h" railroads he relieved OF the per-
'o,.n.I Of those services"
~ SIZE, recommends
''Dd' no new and untried plan for
"'f'nn,ng railway mail pay should be
t''Ii'I unless or until approved by the
I'l''H'i'" Commerce Commission after
''n''''h investigation with special ref
'''" O. IL" effect OF such plan upon
1T" r.. Dads existing freight revenues
"N' -" 'lunty OF rates proposed for the
ago OF postal matter upon passe>-