The Winslow mail., 1923-12-14
LOWER EXPRESS RATES
ASSURED BY DECISION


er express rates, the Arizona COrpOr-
alton commission has won a sweeping
victory over the American Express
company as a result of a decision
| handed down last week by the Inter
state Commerce commission, and the
saving to Arizona shippers is estim-
ated at S1,000,000 per year.
Existing determinations against
Arizona and the other states COM
prising the intermountain territory
are abolished by the order of the
interstate body, which becomes effec-
tive March /, 1924. Zone 4, compris-
ing, this territory, is now combined
with the adjoining Zones and s.,
forming new Zone 3, by the terms
of the order, which states: "It is
clear that there is no justification for
the further maintenance of higher
rates in Zone than in Zones and
s." This statement is regarded as
significant in effect, as it lays down
a principle destined to secure subs
tantial reductions in freight rates as
well.
The decision of the Interstate Com
merce commission comes as the con-
clusion of a nationwide probe of
express rates, in which Arizona play
ed an important part. Following the
return to private ownership of the
railroads, the express company was
granted two increases in rates, one
of 12h per cent and the other of 1872
per cent, making a total of 26 per
cent applying, however, to interstate
shipments only.
LNN1O OrrxyS ~ 4 4Ia1
ny was granted similar increases on
intrastate business by many of the
state commissions, but the Arizona
commission steadfastly refused to al
low the increases sought. In one of
the hearings the company testified
that this action had deprived it of
revenues amounting to $4,000 per
year in Arizona. It was also stated
that the intrastate business was only
ten per cent of the total. Inasmuch
as the new interstate rates are even
lower than the existing intrastate
rates in Arizona, and using the COM
pany's own figures as to annual re-
venues of which it has been depriv-
ed, the estimate of $1,0O0,000 per year
saving to Arizona shippers is consid-
cred conservative in the extreme.
First the investigation was confined
to Arizona and the intermountain
states subjected to the grossest dis
ordinations. Arizona was the last
state in which hearing was held
and the first to demand an oral ar
gument. BY this time it was ap-
parent to the l. C. c. that the entire
rate structure was basicaqly unjust
and the investigation was made ma
tionwide.
In conducting the nationwide
probe, the interstate body, evincing a
desire to cooperate with the states,
asked the state commissions to de-
signate a chairman for each of the
five express zones, who would also
sit with the interstate examiners con-
Quoting the case.
Amos A. Belts, chairman of the
Arizona commission was designated
as chairman of Zone 4, and as such
was present at the first hearing con-
Quoted in Washington Nov. 20, 1922.
Since then several hearings were had
throughout the country, with final
hearing at Washington last April
Oral arguments were heard last June,
and a final conference between the
Interstate commissioners and the Zone
chairman was held November 10.
The effect of the 1. c. c. order on
both intrastate and interstate ship
ments is shown in the following ex-
amples of first class rates to and
from Phoenix: