The New York herald., 1922-07-11
REFUSE TO APPROVE
EXPRESS CONTRACT.
Several Railroads Will Not
Agree to Plan-Substitutes
Loom Up.

The formation Of independent express
companies or the inauguration OF fast
freight service as a substitute for ex-
press service loomed up yesterday as
possibilities as a result of the refusal
Of several railroad companies to approve
the newly amended uniform contract
with The American Railway Express
Company.
The new standard contract. which Is
calculated to increase by approximately
s1o,ooo,oo0 the yearly revenues received
by the railroads from express business.
was negotiated by the express committee
OF the Association of Railway Execu-
tives under the chairmanship OF w. B.
peka & Santa Fe Railway.
At recent meeting Of the association
held in Chicago a majority Of it's MEM
Der roads approved the revised pact and
the new contract will SO into effect on
March. 1923, on the expiration OF the
contract which has been In effect since
the cessation Of Government control Of
of the member roads refused to sane
ton the contract.
Chief among the changes from the old
contract is a clause giving the steam
enues derived from express matter car
ried In car load lots. in connection with
which 1t is pointed out that many roads.
particularly in Eastern territory, run
whole trains loaded solidly with express
tonnage. Another provision in the new
contract gives the railroads a larger
voice in determining what expenses the
express company shall incur A third
provides that earnings In excess of per
cent. return on the express company s
property valuation shall be divided
equally between the railroads and the
express company. while fourth divides
the amount in excess Of an per cent.
return IS per cent to the carriers and
rs per cent to the express company.
Among the minority roads which took
the position that the estimated increase
oe $10,000.000 in railroad revenues ex
pected as result Of the revised contract
and reduced operating expenses would
be entirely Inadequate were the New
York Central. Delaware and Hudson.
Wabash. Kansas City Southern. and
Denver and Salt Lake railroads.
So far as could be learned yesterday
none of the arrangements Of the fore
going carriers has decided whether 1t
will follow one of the two remaining al
ternatives. namely. the incorporation Of
Independent express companies operating
on one or more railroad systems, or fast
freight services which would take the
place of the present express service.
According to many railroad and ex-
press authorities. independent express
companies operating on only one railroad
system have not been very successful
in the past.
Operation Of a fast freight service In
substitution for the ordinary express
has never been tried and It is believed
that this alternative will be chosen as
an experiment by one or moro OF the
carriers which object to the new con-
tract.
Yesterdays announcement by the In
terstate Commerce Commission that It
will make an exhaustive inquiry into
the general subject Of express rates COM
plicates the situation and owing to the
possibility Of horizontal rate cut may
result In delays in the signing OF the
new contract even by some companies
which have signified their approval