The express companies of the United States : $b a study of a public utilityBenedict, Bertram
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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 express service would represent too unimportant and too different an
activity from railroad freight service to be efficiently handled now by
the railroads. And mere regulation, as has been seen, affords no
solution, for the profits and the equipment represent but an
infinitesimal part of the operating expenses.
At this point, the Socialist or the socialist or the person who falls
loosely into the category of "radical" or perhaps even the merely
"liberal" advocate of the public ownership of public utilities will
doubtless exclaim: "But why compensate at all? Isn't it bad enough to
have so long permitted a group of entrepreneurs to grow rich by
exploiting for their own gain a field which all experience outside the
confines of North America proves a field of public endeavor? Why add
insult to injury by actually paying them for rendering unto the people
the things which belong to the people? Why shall not the Government
establish its own express service, as it established the parcel-post,
and leave the express companies, so long unchallenged in their
activities, to meet Government competition as best they may? If they can
meet it, well and good--if they can't, the essentially parasitic nature
of their business is proved beyond cavil."
Very good, gentlemen; and if he may be permitted a personal reference,
the writer of these lines is in perfect accord with you. The rates of
the private express companies under your plan would still be under the
control of the Interstate Commerce Commission, and accordingly these
private agencies would be unable to compete unfairly with the new
Government service by establishing along any of the more popular routes
rates far below the cost of the service, in order to cripple the
Government service along these routes and hence in its entirety.
Moreover, there is every probability that the legislative grant to the
Government of a monopoly of the express service of the United States
would be upheld by the courts, for a good case could be made out for the
essential nature of the express business as a part of the mail business
in which the Government has been granted a monopoly. Indeed, monopoly
was originally granted the Government mail service to prevent the
competition which the Wells-Fargo Company soon after its organization
was conducting in the business of carrying letters.
Public-domain text, read in full here on John Shaqi.
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