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
1--Pay the railroad an agreed percentage (usually about 50%) of the
charges levied and collected by the express company for its service of
sending matter by express.
2--Throw open its books and tariffs to the scrutiny of the railroad and
furnish the railroad whatever additional documents and records may be
necessary to determine the correctness of the sums assigned the railroad
by the express company.
3--Carry free of charge money and other matter concerned with the
business of the railroad.
4--Be responsible for any damage to the expressed goods.
5--Make its charges at least 150% of the freight charge of the railroads
for similar merchandise. (The present charges average about 300% of the
freight charges.)
6--Furnish, heat, light and man the cars necessary for the
transportation of express matter.
NOTES
NOTE 1--This estimate is based on the following considerations. For the
fiscal year ending June 30, 1911, the official report of the Interstate
Commerce Commission gives the average charge per shipment of the Adams
and the United States Express Companies on August 18, 1909, and December
22, 1909, respectively--namely, $.4962 and $.4999, or an average of
$.4980-1/2 per shipment in 1909. (Many shipments contain more than one
parcel.) By dividing this sum into the known total amount of money
collected by the express companies for the express services, we can
obtain the total number of shipments for that year.
But with the establishment of the parcel post in 1913 the character of
the express business underwent a radical change. The fact that the
parcel-post limits its shipments to parcels under a certain weight and
under a certain size is one factor of the situation tending to transfer
to the parcel-post from the express companies a larger number of smaller
packages than of larger packages, and hence to make the average charge
per package of the express company in 1917 higher than in 1909. A second
factor tending in the same direction is the fact that the parcel-post
limits the amount of insurance which may be placed on a valuable
package, while the express company has no such limit, thereby keeping
with the express company most of the valuable packages on which the high
insurance makes a high rate. A third factor tending similarly is the
fact that for shorter distances the parcel-post rate is lower on the
whole than the express rate, whereas for longer distances the express
rate is lower on the whole than the parcel-post rate; and accordingly
the express companies' average haul was longer and hence at a higher
rate in 1917 than in 1909, although not so much longer as might be
expected, as has been shown above. A fourth factor of similar effect is
the railroad congestion in 1917, causing the expressage of many heavy
shipments which had formerly been dispatched as freight, especially in
the latter part of the year.
Public-domain text, read in full here on John Shaqi.
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