The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-21
EXPRESS MERGER
APPROVED Ice.
Four Big Systems Consolidated
During War Permanently
Joined by Decision.
M'CHORD CONTESTS MOVE
Elimination Of Competition
Will Be Reflected in Rates
and Service, He Says.
Special Despatch TO TIE NEW YORK HERALD
New York Herald Bureau.
Washington, ID. g., Dec. 90.

Special Despatch to THE NEW YORK HERALD.
New York Herald Bureau,
Washington. ID. g., Dec. 90.
The Interstate Commerce Comnis-
sion to-day approved a merger OF the
former four big express companies of
the United States into the American
Railway Express Company. Action
was taken by the commission under
special authorization in the transpor-
tation act. The consolidation is the
first effected under this act.
The express companies of the coun-
try We're combined into the American
Railway Express Company soon after
the Government took over the rail-
roads, and authority was sought to
continue the consolidation when the
transportation act was up for con-
sideration.
The four companies affected in the
consolidation are the American. Adams.
Wells Fargo and Southern.
Com missioner McChord Dissents.
The consolidation was approved on the
ground that it would permit economy
and the giving of better service to the
public. The commission declared II was
not necessary 10 approval OF the consoli-
dntion TO find the value of the coinpa-
nics, as was urged by four state Utility
Commissions in the South, and Ii like
wise set aside pleas that 1t adjudicate
certain claims and contracts and take
cognizance of the alleged failure OF two
of the companies to settle loss and dam
age claims.
In n diss sentinG opinion Commissioner
McChord said that he could not agree
because
"The authorization 0 the consolida-
ton will destroy every semblance Of
competition in the express business both
as to rates and service, thus confirming
an existing monopoly. 1t may be true
that there is no competition as to OK
press transportation charges, but prior
TO the consolidation there was compeu-
ton with respect to service, which was
of benefit to the public. II will now be
practically imposs ible for another COM
pany to enter into the express business
I'm competition with this consolidated
company. We, OF course. may regulate
the rates and certain of the practices Of
the American Railway Express Com
pany. but we Will have no control over
its attitude toward the public We can
not require it to render to the public the
efficiency, courtesy and fair dealing
which competition compels."
Rail Operation Proposed.
Commissioner McChord said that in
his opinion the time had come when
the carriers should give serious con-
sideraton to the question Of conducting
the express business themselves. The
express business, no said. had reached
such proportions as to have become
parasite on the railroad companies. and
the railroads could with but slight addi-
tional equipment and operating organ
ization conduct tho express business at
a saving
Application Of the express companies
for consolidation was made under the
Interstate Commerce act, as amended
by the Transportation act provision COW
ering particularly the express COM
panes.
There were seven express companies
operating at the beginning of Federal
control OF the railroads. Dfrector-Gen-
eral McAdoo refused to recognize the
individual express companies. but sug-
gested they consolidate into one organ
zatlon. This was effected.
Most OF the complaints received
against approval by the Interstate Com
merce Commission OF permanent rnc--
ger urged that the service Of the com
panies had been unsatisfactory. To
these complaints admission was made
the service had not been satisfactory.
but this was ascribed 10 the war and
conditions growing out Of tho war In
their effect on tho railroads and the
transportation system az n whole.