The Sentinel=record., 1918-05-29
100, 900 EMPLOYEES ARE TO BE RETAINED
though Merger Is Arranged Under War Exigencies, 1t Is Planned as Permanent, and Noncompliance the Object That Has Been Aimed at for Many Years.

Washington May 28,-One union express company for the United States was created today by agree ment by General McAdoo and the Adams, American, Wells Fargo ana southern Express Companies. whose transportation business will be merg- ed under a new private corporation with capital of more than $80,O00 900 to be known probably as the Federal Express Company. George c. Taylor. now president of the American, will be head of the new concern. r,.a.a
 Effective July shippers will direct shipments "by express without re- gard to company and soon thereafter the individual names Of the separate companies will begin to disappear from wagons, stations and cans. The company will be the express carry
 ing agency of the railroads, operating privately but under contract to turn over 60 l-1 per cent of their gross revenues more than $2000O0000 last year, to the roads for transportation privileges.
 More than 100000 employees of the four companies are to be retained under the new corporation and their wages will be raised in many cases, according 10 MT. Taylor. The amoun, will be determined after the scale of wage advances ordered for railroad employees is examined carefully Through economies by the common use of the wagons, trucks, distrinut-
 ing stations, city offices, warehouses, railroad cars and other equipment and the simplifcatiou of accounting, tho merged companies hope to save many millions of dollars and to render Det- ter service
 Though the merger is arranged un- der war exigencies, it is planned as permanent and accomplishes the ob- iect which has been discussed in vain for almost century of competitive conditions
 Last year the four leading compa- nes barely made expenses and the Adams recorded a deficit Early months this year showed even a worse record owing to the general demoral- ized conditions of railroad transpor- tation, the rising cost of materials and shortage of labor. Some of the officials of the companies sought to haye the railroad administration take over the companies
 Officials of the companies sought 10 ] bauo fbn fa glrCad adVnfnfo t,E Ia,
 over the companies with the rail- roads and guarantee the average pre-
 war earnings, which would have been about $3, 700,000 q year, but Director General McAdoo declined to extend
 his field of operations to this extent. The new concern, whose name will
 be the Federal Express company, un- loss existing small companies with t1et name in two states object will
 have stock of s30,000,e00 represent
 ing the actual value of properties pooled and inadditlon enough stock to proyid3 am3'c working cash The stock will be distributed among
 the four companies according to the
 comparative value cf he properties
 tho contribute, to be determined after
 further valuation proceedings. Each
 of the companies Vill continue It's
 financial business. such as dealing in
 money orders. foreign exchange and
 limited banking. individually and with
 the union company as their agent. The corporate identities of tho l CONTINUED ON PAGH TWO.