Postal Riders and Raiders

by W. H. Gantz

…

In both surveying the Canadian express situation and giving the order to reduce rates, Judge Mabee, chairman of the commission, said:

“Cut short of all the trimmings, the situation is that the shipper by express makes a contract with the railway company through the express company. The whole business could go just as it now does without the existence of any express company at all by simply substituting railway employees and letting the railways take the whole of the toll in the first instance.”

As showing how freight tariffs are manipulated by the railroads to force the people to make light shipments by express and pay the looting rates the express companies charge, the following by Mr. Benson should be read:

In what essential particular does the conduct of the American express business differ from the conduct of the Canadian express business? The Canadian express companies collect money from the public and hand it over to the railroads. What do our express companies do?

At this point, some gentlemen may be moved to ask. Why is an express company? At first glance, it does seem rather strange that the railroads should bother to do business through express companies if the railroads not only haul the express cars, but get the money the public pays. Yet there is nothing strange about it, as we shall see when we consider what the express business is.

Part of the express business is an effort to commit a crime for pay. The rest of the express business is an effort to perform a service at an exorbitant rate of compensation. In other words, part of the express business is the carrying of “packets” that should be sent only by mail, and the carrying of which by a private person or corporation is a crime, and the rest of the business is the carrying of light freight that should go by fast freight at a rate much below the express rate.

The express business, like every other business that has thriven, was based upon a public need. The public need was for a fast freight service for light freight. The railroad managers of forty years ago were not disposed to give the service, but they were willing to haul cars for an express company that wanted to carry fast freight at a high rate.

In this small, timid way the express business began. The crime of carrying mail in competition with the government had never been considered. When shippers offered mailable packages for transmission, they were accepted, but postage stamps were affixed to comply with the law. Even the volume of light freight was relatively small. The railroads themselves kept all of the light freight traffic they could. It was not until the railroads invested heavily in and obtained control of the express companies that deliberate efforts were made to compel the public to send light freight by express.

Let me explain precisely what I mean by this. The minimum freight rate from Chicago to North Platte, Neb., is $1.10. Whether a package weighs five pounds or 100 pounds, the charge is the same.