Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-06-09
PEOPLE HAVE CHANGED,
WHAT ARE MONOPOL|Es
Taking Over OF Express Companies
by decentralization In
teresting Letter on Subject.
THE DIREcToR.GENERAL's IDEa
Thinks Consolidation and Co-Ordi-
nation Will Pay Better and Pro-
duce More Efficient Express


duce More Efficient Express
Service.
Director General McAdoo's PROPOSE
tion to consolidate all OF tho express
companies and make one gigantic COM
many Of them. operating in the govern
mcnt's hands. in somewhat The same
way as the railroads, is attracting more
attention perhaps. and causing more
comment OF ono kind or ;.nc;her than
did the taking over Of the railroads
OF the country.
Taking note OF the fact tina, Mr.. Nc
Adoo apparently plans the incorpora
ticn. possibly by Federal charter. OF
the four express companie: which arc
10 become and he known as the
Federal Express Company. Holland"
writes tho Wall Street Journal most
interesting letter on the subject. He
says:
Almost all the large express. COM
pan!es were not Joint stock organiza-
lions but partnerships. ard it has
seemingly been found advantageou to
maintain that relation, although FOR
purposes OF convenience. tho different
partners find their Interests visihiy
value OF which had been. fixed at
s1on
COMPANIES WITHIN COMPANIES
JUST LIKE OTHER RIG COSCEHSS
The announcement from WASHINGTON
states that the four great express COM
panfes. whose business is TO be taken
over. viii be operating companies for
the new concern. The new company
is 20 have somewhat the Relations L.
the four companies which United States
Steei Corporation bears 10 its suhsidi-
aries, Federal Exaress Company is
simply the unified embodiment Of the
-FOUR companies. The arrangement a?-
pears TO be somewhat complicated and
perhaps has not been fully worked ont
Sut this fact stands conspicuous The
seat express companies OF the LIritcd
states are now 10 be merged Five
years ago, II proposition for their
merger into ono had been urged il
would have met with uaCua,iti.d His
approval The charge would have been
made ,nat If this were done a giant
nonon1ly would be created Moreover
II would have be2n said that a sinrIe
CORPORATION possessing the business
WHICH the express companies posSess
IL
srarS terms 20 the railroads and even
10 enforce contracts which wouId he
adva n;aSeous to the express companies
hut o: ms benefit 20 the railroads
As GOVERNMENT Is DOING 1T.
1T WILL BE- BITTER REGULATED
Now no adverse discussion will l..
oecasioned By the action OF Director
Genera. &cAdoo in establishing an ab.
soiute monopoly CT the express bust
ness, 'or 4 vii! be borne IN mind tnat
'nis unified company will be ur,er
government control. and must subni,
20 sucl. regulations az governmental
authority imposes. Furthermore IN.
government is TO be in a sense a share
hoicer. for 10 IL viii! he raid a sha-.
IN the PROFITS, which the business NAV
FURNISH Thai share appears 10 he
somewhat large. for WASHINGTON IN.
noune''s tSat into the hands Of The si-
ecior-Eeneral or his susordina;es AZ.
20 lie paid % IA Ter cent OF rho zoe,
earnings OF the company. and out ~
4'"-t per cent of those earnings RI.
company must pay all expenses t,.es
ana dividend OF per cent unor a..
capital stock
ne use Of the term capital stock"
'nc'ca'ed that this great merger 10 ~
'dPt'aiized' and the presumption js
'hat the capital Stock Will ultinataly
So'""e:s"" There may be some
owing 10 State laws about
cunning the name Of Federal Express
IN order to avoid such diff
'''s' "h:ch not even SIR AcAjoo
'rcofne' very likely another name
man feeeral VIII be used 10 identity
the ne" company
REMARKABLE CHANGE
~ TEMPER OF PEor1x.
ne vital principle which 4, ye-o-
nizeo and emphasized by Dir.ctor-ce
erai HcAdoo is the very ono ovc, u.h,.,,
an issue was raised when the Shaw
"h'ittust law was adopted and o,b.,
ie6s!a'ion put upon the statute ho,L.
restrain the so-called trust. AND :,
prr'fNt nonopolics. Those who >.
NoFed Eeeat combinations. II ub.ch -
,h't"d states Steel Corpo-a,io, !, 49,
CONSPICUOUS example and viii no nn
i"SS ia" United states Sunre.,o c,
cars mat corporation to nicc.s 49,
asserted both before ctnrros.to,
committees and before tho nnhiia -,
'ntSe combinations make pnssib,s ,,o..
economies III the r-oduc,in, =,
ho9ines and also the rnaint.,,
30" prices for labor az well as CO
constantly Increasing markets
a''h N inc United states and ahr,,.
n'' mas always been the nosi,,or
.""eh by Charles NJ schwah. M,n,
.,'heS' 'aoge Gary. OF the United s,a,as
s'ee' corporation. and George W paw
'y puniic addresses and com.
'tc"tiohs. stated that the n,h,i.
IN no Danger % oppression by u.h.,
= ai!ed big business" provided So
D''at ions are wisely regulated .nd
"io!ieo ny The government. Mr. ~
80 convinced ,hat by a mere,
'"e -FOUR great express. comnanies
t"e express business can be b,,a,as
~ most enicieni and economical 49,,