Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-06-30
From Other Viewpoints
Future OF the Express nuSincss.
DY GEORGE {. TAYLOR.

with the taking over Of the railroads in De-
cembcr 1917. the express companies were no,
included The director general decided he
would not recognize the then existing con,
tracts with the rail lines put under Fedora!
control and considered them Cancelled, but he
ala say he would dca! with the various tA-
urcss companies as company and enter
into an agreement with one company to con.
duet the express business as ms agent, on al!
Fcdc-.il-controllcd lines.
Alter constant negotiations for nearly six
months there was formed on June -. 1919 me
American Railway Express Company. which
not merger but an entirely new cor
pOta;!on. TO which each Of the four old com
pamscs-thc Adams American, Southern ana
Wells Fargo-Ssold their tangible property used
in ;he express operations at its deprecated
book value. and took stock therefor. and in
addition subscribed $4,000 900 in each work
Jag capital
The new company, beginning with it's o?cr-
atoms July /, 1918. by reason Of constantly
incrcas!n. wages and OF all materials
used in tho conduct Of the business, has never
been able 10 meet its expenses.
It's deficit ct the end OF 1918 was more than
$1,000 900. and for the year OF 1919 was more
than s2400000O We were never guaranteed
us the railways were, standard retarn. but
were guaranteed against deficit.
Thus e have operated as best we could
with absolutely no return 10 owners or stock
holders upon s35.00o0oo actual value OF real
estate and plant. OF winch s".ooo'ooo was new
cash pu, UP by The stockholders on Jniy D.
1915.
as wc look into the future canno, see
the best and the cheapest express service come
from q restoration OF the several old compn-
nies nor the formation OF several new ones
1t would mean again adding TO the rates
enough more--whch the public would have to
hcnr--tu pay duplicate services in the climI-
nation Of which this company has saved many
millions OF dollars; and il would mean a less
efficient cypress service.
Wc realize service has not been up to
the standard and is no; now. and ii will take
t.me MAKE it so--in our Judgment at least
two years To reach anything like normal Sit
uatiOn.
We dependent upon the railroads for
our cars and transportation. There is not now
600 cars 10 properly handle the business of
today. The railroads are not to blame for
this. and neither
The railroads present situation Is the out
growth OF conditions over which they had no
control. No railroad could be blamed for not
being willing to spend vast sums in new
equipment and facilities. and neither could this
company be blamed. and had undertaken
II. with the uncertain future up To the end OF
Federal control, such money could have
been obtained.
Our transportation contract for all lines
formerly under Federal control expired auto
matically FEBRUARY 20, when the roads went
bacl: TO private management.
Under the transportation act we are in pro-
cess OF making contracts with the several
hundred large and small roads. over 30 per
tut under the law these made only for the
Period To August 81. 1920. Until that date. We
are protected against deficit. After that. II
We exist at all. we must have higher rates to
meet our higher wages and costs
AS express company cpcratiny oycr ali
lines we can give a better service by the use
OF the most direct routes. We avoid such
duplicate services and expense. which in the
end must be borne by tho public.
We can give to tn. shipper one company
10 look to and not dHded responsibility and
4 resultant dolay in oaset;f loss WI can Sid
all eircuitoas routing. Wa can avoid re.