12. The controlling express companies—“associations” some of them are called—pay 8 to 12 per cent dividends yearly on their stock capitalization, which stock has but a fraction of substantial values back of it, and all those real values have come from earnings. 13. In addition to the regular annual dividends paid, these express companies, every few years, “cut a melon”—pay stockholders a substantial “extra” dividend. One company (Wells, Fargo & Co.), with a stock capital of $5,000,000 in 1872—and no one knowing what tangible assets that five millions represented—increased it to $8,000,000 in 1893. That added $3,000,000 was issued to the Union Pacific Railroad for a contract which gave the express company a monopoly of the express business on the Union Pacific rail system. On that eight millions the express company paid annual dividends ranging from 6 to 9 per cent from 1893 to 1901. From 1902 to 1907 it paid 9 per cent annually, since which date its annual dividend rate has been 10 per cent.
In addition to these substantial yearly dividends on $8,000,000 of stock, which cost its holders little or nothing, this company cut a huge “melon” in 1910. This melon was an extra dividend to its stockholders of 100 per cent in cash ($8,000,000) and a stock dividend of 200 per cent—a total of 300 per cent as an extra dividend—thus raising its stock capitalization from $8,000,000 to $24,000,000.
On this twenty-four millions of stock the company has continued to pay 10 per cent annually.
The net earnings of the company for 1910 and 1911 were about 20 per cent on its $24,000,000 of stock.
14. There are no express companies in European countries. The heavier express shipments here are there handled—and satisfactorily handled—by the railroads direct. All the lighter express shipments are there handled by the parcels post.
15. The parcels post service of European countries is entirely satisfactory to the people, is cheaper than the pretense of a parcels post service which has victimized the people of this country for a half-century and far cheaper than the rates we have been forced to pay for express service.
16. As it was originally designed, and so provided by law, that our government should have a monopoly in the carriage and delivery of packages and parcels, the express companies in this country—all of them—have been and are engaged in an outlawed traffic. They are criminals.
17. Our government, in all its branches—legislative, executive and judicial—has been party to this outlawry. It not only has protected these express and railway raiders while they robbed us, but it has permitted itself to be robbed by them.
The seventeen statements of fact should be sufficient for a starter—a starter for arriving at a safe, sound conclusion as to how and why a comparatively few folks get fabulously rich so quickly and so easily while so many millions of other folks, though lavish in industry and self-denying in expenditure, rise only to modest means or remain poor.
We shall now take up a discussion of the parcels post—as it has served us, and as it has served other peoples and should be made to serve us.