Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-12-06
CUT IN EXPRESS
RATES IS ORDERED
BY FEDERAL BODY
American Company Is De-
MED General Increase and
Revision of Schedule on
New Basis Ordered

WASHINGTON, Dec. 3.-New
bases for the application of interstate
express rates were laid down today
by the interstate commerce commits
sion in decision which refused the
American Railway Express company
the right to make a general increase
which it asked. Express companies
were ordered to establish new sched-
ules on or before February Fl, next,
Incorporating the changes.
Present interstate express rates ap-
piled to food articles of nearly all
kinds, the commission held, are too
high and should be reduced by
amounts ranging from 10 to IL per
cent. The companies were required
to make the reductions by installing
charges which will equal those in ef-
feet on October -, 1920, when in
creases to the present levels were
made.
Two Zones Eliminated
In outlining the principles to gov
ern the general revision, the COM
mission pointed out that rates are
now built up on the basis of five
zones, one for the northeastern Sec
ton of the country, one for the
southeast, one for Mississippi-M1s-
souri, territory, one for the Rocky
Mountain area, and one for the Pa
cific coast. There are differences IN
the factors of rates between each
zone, and the commission decided
that these result in TOO great a dis
crepancy. Accordingly, a three-zone
system was ordered into effect, one
zone to take in generally the north
eastern section of the United States.
the second the southeast and the
third to include all of the territory
west of the Mississippi river.
In the rate demonstrations 10 pc
madeion the basis of the zones, the
commission held that the express
carriers might include haulage fac
tor charge of IS cents per 100 POUNDS
for the first so miles in the north
eastern section: a factor of 27.5 Genus
for the first so miles in the SOUTH
eastern or second zone; and 80 Genus
for the same distance IN the ln4Iu
zone,
The General arrangement now fol
lowed of blocking out the country IN
50.mile SQUARES for the purpose OF
fixing express charges was SAID 10
he satisfactory with the amen"eu
zone ARRANGEMENT and the express
COMPANIES were ordered to work out
rate schedules, for later submission
to the commission.
Pigeon Rates Reduced
In dealing with two minor points
raised during the general rate STUDY
the commission ruled that hereafter
rates on fibre or reed should be re-
duced to an equality with like rates
on wooden furniture. Racing VI
homing pigeons, it was also sd,u'
should hereafter be hauled at the
second class rate over distances not
exceeding 400 miles, instead OF lne
first class rates now charged.
The question Of express rates was
brought under investigation by the
commission in 1922 following a re
duction in general railroad trelght
rates.
"Taken as a whole the evidence
Of record leads to the conclusion
that in the absence of a general IN
dustrial depression. the express bus-
mess should steadily increase, the
commission said. There is no evil
dence that utilization Of present eX-
nress facilities generally is approach
ing the point of saturation."
The opinion, was expressed that
with a. good volume of business the
American Railway Express company
could make proper earnings anc at
the same time give the rail lines
which handle its traffic falr re
turn.
The Southeastern Express compa-
nv which operates separately, was
said to have begun business two
years ago but to have encountered
IA healthy growth" under present
charges.