That the interests that control our railroads also own and control the express companies and that their separate incorporation is merely a device to cover extortion and discrimination by complex contract relations is indicated by Senate Document No. 278, pages 53, 54, and 55:
| Stock held by railways in express companies | $20,668,000 |
| Railway securities held by express companies | 34,542,950 |
| Holdings of express companies in the stock of express companies | 11,618,125 |
| Total intercorporate ownership express companies June 20, 1906 | 66,829,075 |
Express Company Rates Cause Loss to Shippers—Express Company Methods Cause Loss to the Postal Department
The peculiar, graduated, increasing rate for small-weight parcels is absolutely prohibitive for express transportation except at an actual loss for a considerable proportion of business. Most express shipments are in small parcels. They therefore pay the higher scale. This increased rate is exacted for both terminal and haulage service and is as high as 37½ times the first-class freight charge.
The express companies take from the Post Office Department the profitable business and pocket millions of profits, but leave the unprofitable for the Post Office Department. The profits from a parcels post would stop the post-office deficit and give us a 1-cent letter rate. The annual surplus of the British post-office department about equals our annual postal deficit. The British have a serviceable parcels post.
The men in the mail service have a record of one error in 18,000 pieces handled. Compare that with your experience with the express companies.
The Parcels Post Not Openly Opposed by the Beneficiaries of Present Methods
The opposition to the parcels post at the late congressional hearing was made by persons who appeared in the name of American Hardware Manufacturers’ Association, Illinois Retail Merchants’ Association, National Association of Retail Druggists, National Association Retail Grocers, National Retail Hardware Association, National Federation of Retail Implement & Vehicle Dealers’ Associations, Wholesale Dry Goods Association, Paint Manufacturers’ Association of the United States.
There was no direct opposition by the express companies to the parcels post.