The Birmingham age-herald., 1918-05-29
EXPRESS CONPA PANIES
 WILL COMBINE INTO ONE ORGANIZATION
This Merger Will Not Only Be Wartime Plan, But It Will Be Made
 Permanent

Washington, May 28.--One union express company for the United States was created to- day by agreement between Di- rector General McAdoo and the Adams, American, Wells Fargo and Southern compan- ies, whose transportation busi- ness was merged under a new private corporation with capi- tai of more than $30,000,000, to be known probably as the Federal Express company. George c. Taylor, now presi- dent of the American, will be head of the new concern.
 After July 1, when the combination becomes effective, shippers will di- rect shipments "by express,- without regard to company, and soon there after the individual names of the sep arate companies will begin to disnp- pear from wagons. stations and cars. The company will be the express car- rying agency of the railroads, operat. ing privately, but under contract to turn over 5OA per cent of their gross revenues-more than $2O0, 0,000,OOO last year--tO the roads for this privilege. Three small railroad-owned companies, the Western, Great Northern and Northern, may joint the combination later.
 A pending application for 10 per cent Increase in rates filed before government operation of railroads or the express combination were contemplated will be passed upon soon by the interstate com meree commission
 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 to Mir. Taylor. The amount will be de- termined after the scale of wage ad- vances ordered for railroad employees is examined carefully.
 Through economies, by the common use of wagons, trucks, distributing sta- tions, city offices, warehouses railroad cars and other equipment, and the sim plification of accounting, the merged com panies hope to save many millions of dol lars and to render better service.
 WILL SAVE MILLIONS
 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 q century of competitive conditions. Las, year the four leading companies barely made expenses, and the Adams recorded deficit. Early months this year showed even a worse record, owing to the gen eral demoralized condition of railroad transpartation. rising cost of materials and shortage of labor. Some officials of the companies sought to have the rail road administration take over the com panies along with the railroads ant guarantee the average pre-war earnings, N hich would have been about s, GOO : year. but Director General AcAdoo de- clined.
 NAME OF NEW COMPANY
 The new concern, whose name will be the Federal Express company, un- less existing small companies with that name in two states oo1ect, Will nave stock of ss0,ooo.o0o, representing the actual value of properties pooled, and in addition enough stock to provide ample working cash
 The stock will be distributed among the four companies according to the comparative value of the properties they contribute. to be determined after further valuation proceedings. Each oi the companies will continue it's finan- cial business, such as dealing in money orders, foreign exchange and limited banking. individually and with the