New-York tribune., 1918-05-29
George c. Taylor to Head
New $50, 600, 900 Cor
poration July l
Many Employees to
Get Increased Paw
McAdoo Approve. Plan
Government to Receive
Part of Net Revenue

express company for the United States
vas created to-day by agreement be-
tween Director General McAdoo and
the Adams, American, Wells-Fargo and
Southern companies. Their transpor-
tation business will be merged under
new private corporation with capital
Of more than $S0,000,0O0, to be known
probably as the Federal Express Com
pany
George C. Taylor, now president of
the American, will be head of the new
concern.
After July /, when the combination
becomes effective, shippers will direct
shipments ''by express" without regard
TO company, and soon thereafter the
individual names of the separate COM
panies will begin to disappear 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 50A per cent of its gross
revenues--more than 5000, ZOO, 900 last
year-to the roads for transportation
privileges.
Employees to Get More Pay
Three smaller railroad COM
psnies, the Western. Great Northern
and Northern, may join the combina-
ton later.
A pending application for 10 per cent
increase in rates, filed before govern
Iuent operation of railroads or the ex-
press combination was contemplated,
will be passed upon soon by the Inter
state Commerce Commission.
More than 100000 employees of the
four companies are to be retained un-
der the new corporation, and their
cording to Mr.. Taylor. The amount
will be determined after the scale of
wage advances ordered for railroad en-
pioyes is examined carefully.
Through economies by the common
use OF wagons, trucks, distributing sta
uons, city Offices, warehouses, rail-
Ioad cars and other equipment and the
slmpllhcation of accounting the merged
eoMpanies nope to save many millions
q dollars and to render better service.
Merger To Be Permanent
Though the merger is arranged un-
aer war exigencies, it is planned as
permanent and accomplishes the OBJ
Ia vain. - ~
LAST yea. the four leading companies
Darely made expenses, and the Adams
recorded deficit. Early months this
year showed even a worse record, ow.
ing to the general demoralized condi.
I:ons OF railroad transportation, the
ns,ng cost Of materials and shortage
OF labor.
Some officials of the companies
sougnt 70 have the railroad administra-
s.s.i s.va TAKE over the companies. along
@Nefage pre-war earnings, which would
nave been about $3,T0O,O00 a wear. hut
ulreetor General McAdoo declined 4.
extend his field of operations to this
extent. W '"is
- me new concerns name will be the
Isaeral Express Company, unless ex-
sung small companies with that name
~ Two states object. 1t will have stock
y. eov,vvVo0o, representing the actual
saauc OF properties pooled, and. in adj
uaslon, enough stock to provide ample
distribution of the Stock
-, ne stock win be distributed among
.ne Iour companies according to the
.sUmparative value of the properties
sney contribute, to be determined after
ttIIs'her valuation proceedings. Each Of
sns companies will continue it's finan-
sst business, such as dealing in money
SSrders. foreign exchange and limited
fnsanking, ~ individually, and with the
lunion company. as their agent. The
sosPorate Identities Of the companies
VIII be retained.
earnings retained the union cornora-
hssa viii pay operating expenses, taxes
ana dividends Of 5 per cent on its can
1tsi stock. Out OF the next 2 per cent
esailable for distribution the company
VIII receive l per cent and the govern
msnt 1 per cent. Out Of the next z
per cent the company will get / per
cent ard the government 2 per cent.
vne fourth Of amounts above this will
oe 2 dlstributed to the company and
ss-fourths to the government.
Ahe express company is given a
continuing induccment to accomplish
sne greatest efficiency and economy
SAID the railroad administration. sand
set the government will enjoy an In
srsssingly great proportion Of the
eepnemy." aAs
TayIor's Rise Spectacular
Ihs express company will be per-
mlsted to use station agents and other
rsalroad employees jointly with the
roeds, but their compensation will be
pesd entirely by the railroads which
VII he reimbursed by the company.
&c Tour companies now have an ag-
Greats esn3&atr ~ eE4 nfsa nnn COZ
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