The express companies of the United States : $b a study of a public utility — John Shaqi
The express companies of the United States : $b a study of a public utilityBenedict, Bertram
History
The express companies of the United States : $b a study of a public utility
Benedict, Bertram
Express service -- United States; Parcel post -- United States
The amount of these savings can only be roughly surmised; but in 1912,
Mr. David J. Lewis estimated that they would amount to at least 40% of
the total operating expenses. In this connection, it may be remarked in
passing that Mr. Lewis's qualifications for throwing light upon the
express service problem include not only theoretical knowledge gained by
years of study of the problem, both here and abroad; but also practical
knowledge of ways and means, as attested by general belief that the
establishment of a parcel-post in the United States was due to his
analyses more than to the efforts of any other one man; and also by the
fact that when the Government in 1918 assumed responsibility for the
management of the telephone and telegraph systems of the land, Mr. Lewis
was made, and at the time of writing is, the general manager in charge
of those systems while under Government control. Certainly, in view of
the economies enumerated above as inherent in Government ownership and
control of the express companies, on the face of it Mr. Lewis's
statement seems extremely reasonable.
THE CONSEQUENT REDUCTION IN RATES
So that, if Mr. Lewis's estimate were accurate, and remembering that the
operating expenses of the express companies in 1917 represented one-half
of the total charges made by the express companies for transportation, a
reduction of 20% in the express rates should accompany the acquisition
of the express companies by the Government, other things being equal.
But other things are not equal. Lower rates mean increased business; and
in an agency which has developed the field at its disposal so
inadequately as have the express companies, each additional unit of
business can be handled at a lower cost and hence at a greater profit
than each previous unit. This consideration was the primary one advanced
by the Interstate Commerce Commission in ordering 16% reduction in the
express rates in 1914. So that, the lower amount of profit per parcel
being counterbalanced by a greater number of parcels, the economy in a
Government postal express should be represented by a lowering of express
rates anywhere from 25% to 35% of the present rates.
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