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
But up to this point our calculations have assumed that under a
Government postal express the railroads would continue to obtain their
50% of the charges on each package transported by express. This method
of calculating the return due to the railroad is certainly ingenious in
its simplicity and lack of scientific basis, but it is just as certainly
unfair to the shipper of parcels by express. Let us consider, for
example, two shipments of similar articles under similar conditions--one
from New York City to Yonkers, New York, a distance of some 20 miles;
the other from New York City to San Francisco, a distance of more than
3,000 miles. In each case, the express companies collect the parcel and
deliver it to the railroad in New York City; and collect the parcel from
the railroad and deliver it to the consignee, in the first case in
Yonkers; and in the second case in San Francisco. In both cases, the
services rendered by the express companies are about identical, aside
from the different lengths of time during which space and protection in
express cars must be afforded. But the services rendered by the railroad
companies are far different in the two cases. In the first case, the
parcel is carried for less than an hour; in the second place, for some
days. Obviously, the share of the railroad in the entire service
rendered in transporting the parcels is less in the first case than in
the second, but in each case it gets the same share of the total express
charge--namely, 50%.
Such a system in its very nature must thwart any attempt to make express
rates reflect the value of express service. For, of course, the rates
actually fixed endeavor to do justice to both the express companies and
the railroads in each case considered above. In the first case, the rate
must be high enough so that 50% of it will not be too glaringly little
for the express companies to retain for their _relatively_ more
important and more costly service of collecting a parcel in New York
and delivering it in Yonkers. In the second case, the rate must be high
enough so that 50% of it will not be too glaringly little to turn over
to the railroad for their _relatively_ more important and more costly
service of carrying the parcel across the continent. The railroad
directors and express company directors cannot be expected to have
reached a fair compromise after fighting for their own interests when
the contracts were originally made, for, as has been seen, their
interests are largely identical. It would seem, then, that only the
shipper sending a parcel several hundred miles is charged a fee
commensurate with the value of the service rendered him. It would seem
that shippers sending parcels shorter distances must be charged too much
and that shippers sending parcels longer distances must be charged too
little. A glance at parcel post rates proves the validity of this
surmise, for parcel post rates are lower than express rates for shorter
Public-domain text, read in full here on John Shaqi.
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