The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1918-05-29
American, Adams, Wells
Fargo and Southern in
McAdoo's Consolidation
UNDER CONTROL
OF GOVERNMENT
New Concern Has Capital of $30,OOO,-
900, Value of Properties-All Waste
full Duplication Of Facilities and
Service to Be Eliminated.


WASHINGTON, May 29.-One union
express company for the United States
was created yesterday by agreement by
Director General McAdoo and the
Adams, American, Wells-Fargo and
Southern companies, whose transporta-
ton business will be merged under a
new private corporation with capital
of more than $30,000,000, to be known
probably as the Federal Express COM
pany. George G. Taylor, now president
of the American, will be head of the
new concern
After July l, when the combination
becomes effective, shippers will direct
shipments "by express without regard
to company, and soon thereafter the in
dividual names of the separate com
panies will begin to disappear from
wagons, stations and cars. The COM
pany will be the express carrying agen-
cy of the railroads, operating privately,
but under contract to turn over so IA
| per cent of their gross revenue-more
than $200,000,000 last year-to the
| roads for transportation privileges.
Three smaller railroad-owned COM
panies, the Western, Great Northern
| and Northern, may join the combination
later.
| A pending application for 10 per cent
increase in rates, filed before govern
ment operation of railroads or the ex-
press combination were contemplated,
/ will no hxy ha iata
| state commerce commission.
More than 100000 employees of the
four companies are to be retained un-
der the new corporation, and their
wages will be raised in many eases, ac-
cording to Mr.. Taylor. The amount
will be determined after the scale of
wage advances ordered for railroad en-
ployes is examined carefully.
! Through economies by the common
use of wagons, trucks, distributing sta
| tons, city offices, warehouses, railroad
cars and other equipment, and the SIM
Publication of acrountfng,-- the merged
companies hope to save many millions
of dollars and to render better serv
ices.
| Though the merger is arranged under
war exigencies it is planned as perma-
nent and accomplishes the object which
has been discussed in vain for almost a
century of competition conditions.
Last year the four leading companies
barely made expenses, and the Adams
recorded a deficit. Early months this
year showed an even worse record, ow-
ing to the general demoralized cond-
tions of railroad transportation, the ris-
ing cost of materials and shortage of
labor. Some officials of the companies
sought to have the railroad administra-
ton take over the companies, along with
the railroads and guarantee the aver
age pre-war earnings, which would have
been about $3,700,000 year, but Direc-
tor General McAdoo declined to extend
his field of operations to this extent.
The new concern, whose name will be
the Federal Express company, unless
existing small companies with tina,
name in two states object, will have
stock of $30,000,000 representing the
actual value of properties pooled, and
in addition enough stock to provide am.
pie working cash.
The stock will be distributed among
the four companies according to the
comparative value of the properties
they contribute, to be determined aft
or further valuation proceedings Eacl
of the companies will continue its fl
nancial business, such as dealing il
money orders, foreign exchange ant
limited banking, individually and will