Arizona republican., 1921-12-10
CONCLUDE HEARING DNEFFORT TORA|SE
 EXPRESS CO. RATES

The two-days hearing before the interstate commerce commission on the application of the American Rail- way Express company to increase its rates within the state 26 per cent, came to close yesterday. Examiner Pattison granted time until Jan. 19 for the submission of briefs, after which additional time will be al- lowed before the case is argued. It is hardly likely that any decision will be reached before late in the spring.
 Amos A. Betts of the corporation commission, who conducted the cross examination of witnesses on the opening day, put in the states case yesterday. L. G. Ref, rate clerk for the commission was the chief wit ness, going into detail of the exhibits and statistics relating to rates in Arizona as compared with interstate rates into and out of Arizona; the earnings and expenses of the com- pany; its investments and its invest ments properly chargeable to Arizona prorated on the basis of Arizona mileage to the mileage of the system as a whole.
 Mir. Ref showed the total mileage Of the system to be 268,000 plus, while the Arizona mileage of the express company is 2133, or eight tenths of l Der cent of the total. The total in- vestment of the company was given by the witness as s34.691,1 ,199, and pro rated on the mileage basis would give an investment chargeabie to Arizona of $277,530, he said. The gross operating income on Arizona traffic for the year ending June 30, 1921. was $338, 1882, the net, after de- ducting all expenses including taxes, being S53,522, or 19.3 per cent upon the investment properly chargeable.
 The total investment of the express company, MT. Ref testified. includes S13,65S,5S7 invested in buildings lands and automobiles.
 If we a1located the Arizona invest ment on this basis. the figure would be $109,269, and the return would be 4e per cent" the witness stated.
 The commission proceeded to anal yze the express company's exhibit IS, showing interstate business into Ari- zona from the East and West as conn., pared with rates within Arizona. This analysis showed interstate ship ments into Arizona from Fl Paso, Albuquerque and two or three other points on the eastern border of zone and on which I. c. c. traffic at the present time is slightly higher than state rates, the revenues amounted to SSSS.59, whereas the business moving IF rom Ou WHICH lUe III crease in interstate rates are no higher than present state rates the revenue was s4433.16, or 12 times the amount of business from Fl Paso and Albuquerque, and if the state rates increase 26 per cent, the commission claimed, discrimination against state re1es would be 12 times as great as against interstate rates from the East
 Showing also was made by the commission that the present high level of freight and express rates had driven a large volume of business to parcel post. An exhibit was submit ted in form Of a photograph depict ing a two-ton shipment of vegetables by parcel post from Douglas to Globe the rate being lower than express or freight rate. From this the commis- sion drew the conclusion that the high rates will serve to cause a loss of revenue rather than an increase.
 Among those who testified yester- day were Lawrence c. Wilson, secre- tary of the Casa Grande Farmers as- sociation; L. B. F'oote of the Glen dale Ice Ncompany, Dudley B. Web ster, Maricopa creamery; Guy Law renee. Phoenix laundry: John F Barker, Barker Produce company and c. E. Blaine, Arizona Packing company.