1912 . 
TH© RURAL, NEW-YORKER 
46© 
LARGE PUBLIC QUESTIONS. 
[Editor’s Note.—U nder this heading we intend to 
have discussed questions which particularly interest 
country people. We do not agree with all that our 
correspondents say, but we shall give men and women 
who possess the courage of conviction an opportunity to 
say what they think about certain things which interest 
country people]. 
THE EXPRESS INVESTIGATION. 
Express Monopoly. —There are 13 large 
express corporations in the United States, 
viz., Adams, American, Canadian, Canadian 
Northern, Globe, Great Northern, National, 
Northern, Pacific, Southern, United States, 
Wells Fargo, and Western. This number 
13 is an unlucky number, not unlucky for 
the express monopoly, Ht>ut unlucky for the 
American people. Each company has a 
monopoly of the express business in cer¬ 
tain territory and on certain railroads. 
There is no competition for business, but 
a mutual agreement or understanding re¬ 
garding rates, rules and regulations. Per¬ 
haps an exception should be made to the 
statement that there is no competition for 
business, for there is some competition for 
contracts with railroads in which one com¬ 
pany does agree to pay a higher percent¬ 
age of its receipts to a railroad operated 
by another of the express companies, there¬ 
by ousting its competitor. But in all essen¬ 
tials the express business is a monopoly 
and in restraint of trade and in violation 
of the Sherman Anti-Trust law. 
Express Investigation. —During the last 
two years about 10,000 complaints against 
express companies have been filed with the 
Interstate Commerce Commission. These 
have come from individuals, associations 
and corporations and from all sections of 
the country. About 3,000 of these com¬ 
plaints were for overcharges, the other 
complaints being for excessive rates, loss 
and damage claims, and for various prac¬ 
tices of the companies. As a result of this 
bombardment of letters the Commission 
decided on a thorough examination into 
the express business with especial refer¬ 
ence to the!" rates, rules and regulations. 
Accordingly a force of 50 men were de¬ 
tailed to inspect the books of two of the 
largest companies, the Adams and United 
States. This force worked on the records 
of these two companies for six months, 
from June till November last, and half of 
the force for two months longer in the 
office of the Commission at Washington in 
preparation for the hearings which were 
held in Washington during January and 
February just passed. Briefs and argu¬ 
ments are to be given the last of March, 
and then the Commission will render their 
decision. The Adams Company handled a 
little less than 200,000 packages for one 
day, that of August 18, 1908. Only one 
day’s business was taken, this date being 
selected as typical. A vast amount of 
statistical matter was secured which will 
be used by the Commission in making 
their decision. 
High Express Rates. —This investiga¬ 
tion shows that express rates in this coun¬ 
try are several times as high as are par¬ 
cels post rates in European countries. They 
are so high as to make our per capita ship¬ 
ment of packages about half that of Euro¬ 
pean countries. Rates in this country 
have been steadily increasing. They are 
from five to 40 per cent above what they 
were 16 years ago. From 1893 to 1910 
the increase in revenue to the railroads 
from the express business was 184 per 
cent; the increase from freight was 132 
per cent; from passenger traffic the in¬ 
crease was 109 per cent; the increase from 
mail was 25 per cent; while during this 
period the increase in population was 38 
per cent. The express business is trans¬ 
ported by the railroads on a tonnage 
basis. Formerly the average contract with 
the railroads was 40 per dent, but this has 
been worked up gradually by the railroads 
until the average is now about 50 per 
cent, many important roads taking 55 per 
cent of the receipts of the express com¬ 
panies for the carrying of express matter 
When the contract percentage is increased 
the express companies must raise their 
rates to make the same profit. This auto¬ 
matically raises the amount the railroads 
get as their share, and so the railroads 
double profits, all coming out of the pub¬ 
lic. There were railroads represented at 
the hearings that asserted that they were 
losing money now hauling the express busi¬ 
ness. 
Express Overcharges. —The Commission 
found from an investigation of the records 
of the Adams Company that $67,000 were 
collected during 1908 in overcharges, and 
$29,000 in double charges. There was a 
small amount of undercharges which could 
not be collected. This large amount in 
overcharges is due in part to the very 
complicated set of tariffs and rules of the 
companies. There are literally millions of 
rates. The express agent cannot be cer¬ 
tain he is collecting the correct rate, so 
to be on the safe side he is sure to make it 
high enough to cover any doubt in his mind. 
Express agents receive a commission, 
usually 10 per cent on both incoming and 
outgoing business, hence it is to their ad¬ 
vantage to be safe. If they do not collect 
enough it comes out of their own pockets. 
Thousands of packages are prepaid, and 
then charges collected again at destina¬ 
tion. The Commission has already pre¬ 
sented some of these cases to grand juries 
in various parts of the country, and if all 
were presented and fines paid at the maxi¬ 
mum of the law the express companies 
would be bankrupted. 
Express Profits. —During the hearings 
before the Commission an official of the 
American Express Company admitted that 
bis company had received $600,000,000 for 
express charges since its organization in 
1868, and its profits during that period 
were $43,000,000. Multiply these figures ! 
by 10 and the result will probably be a I 
safe estimate of the express profits of all ‘ 
the companies since the beginning of the 
business. The express business started 
with'a handbag some 70 years ago, and 
grew gradually to its present huge pro¬ 
portions. All of the capital has been con¬ 
tributed by the public in the way of ex¬ 
cessive rates, or when any investment has 
been made it has been small compared to 
the present total. Perhaps the most profit¬ 
able company of the 13, capital only con¬ 
sidered, is the Great Northern Company, 
owned by Mr. Hill and his sons, and oper¬ 
ated over the Great Northern Railroad. 
The cash actually paid in when the com¬ 
pany was organized was $100,000 and the 
company was capitalized at a million dol¬ 
lars, the balance of $900,000 being given 
in stock for contract rights. This com¬ 
pany paid a 50 per cent dividend in 1909 
and a 70 per cent dividend in 1910 on the 
million dollar capitalization; $500,000 in 
1909, and $700,000 in 1910 is a fair rate of 
profit on an investment of $100,000. The 
inventory of the property of this com¬ 
pany is given in the annual report of the 
company at June 30, 1909, as $71,288.91. 
In 1907 the Adams Express Company de¬ 
clared a special stock dividend of $24,- 
000,000, and in 1910 the Wells Fargo Com¬ 
pany declared a special dividend of the 
same amount. These are called “melons,” 
and when the distribution is made it is 
called “cutting a melon.” Frequently the 
“stock is watered.” These two farm opera¬ 
tions are common among express transac¬ 
tions. 
Express Balance Sheet.— It may be of 
interest to present the general balance 
sheet of the express companies combined 
for 1910. 
ASSETS. 
Expenditures for real prop¬ 
erty . $15,890,048.77 
Expenditures for equipment. 9,435,620.17 
Stock owned . 50,598,202.90 
Funded debt owned. 51,513,022.08 
Other permanent investments 14,220,092.90 
Cash and current assets.... 45,421,184.34 
Materials and supplies. 332,494.76 
Sinking, insurance and other 
funds . 140,384.76 
Advance payments on con¬ 
tracts . 5,685,833.34 
Franchises, good will, etc.. 10,916,445.46 
Other assets . 547,955.22 
Profit and loss. 8,752.63 
Total assets .$204,710,036.91 
liabilities. 
Capital stock. $69,523,300.00 
Funded debt . 36,000,000.00 
Current liabilities . 37,953,220.58 
Accrued interest on funded 
debt . 153,959.33 
Other liabilities . 1,855,203.81 
Profit and loss. 59,224,353.19 
$204,710,036.91 
The expenditures for real property and 
for equipment as thus shown is the invest¬ 
ment in the business which is a little over 
25 millions. All the balance of the 200 
millions is accumulated profits not with¬ 
drawn. The general public has a well- 
founded belief that the express business is 
very profitable, somewhere in the neigh¬ 
borhood of 100 per cent annually. There 
are no figures obtainable regarding the ac¬ 
tual profits except for the last three years. 
The net corporate income for 1910 is given 
in the second annual report of the Com¬ 
mission as $13,392,081.55. The actual in¬ 
vestment in the business as given above 
being only 25 millions, this gives a profit 
of 52 per cent for the year. This profit Is 
also made on an investment furnished by 
the public in previous years in excessive 
charges. 
The Remedy. — Express charges are 
double what they should be, but can they 
be reduced? The Commission will decide 
that question after all the arguments on 
both sides are considered. It is a difficult 
problem because of the fact of the contract 
relations of the express companies with the 
railroads. If the Commission reduces the 
express rates they indirectly reduce the 
receipts of the railroads. Whether the 
Commission has the authority to reduce the 
revenues of the railroads indirectly will 
probably be taken into the courts. 
F. N. CLARK. 
(30 Days Free Trial 
NotOnc Penny Down Freight Prepaid 
_______ ° 1 
This illustration shows th e Melrose as a grain 
tight box bed. The depth is 29 inches; width 
either 38 or 42 inches, outside measurements; 
length, 9%, 12,14 or 16 ft., as you may prefer. 
Instead of using extra sideboards as you do 
with an ordinary box, use the Melrose in 
this position. It will haul 65 bushels of ear 
corn; 115 bushels of shelled corn. 
Not a nail in it. Bolts are used instead. All 
metal is cold rolled steel—the strongestinetal 
known. Absolutely unbreakable. Not one 
ounce of cast iron used. Braces on sides and 
ends full galvanized to prevent rusting. 
There are no ratchets, springs, cogs or com¬ 
plications of any kind or character. You need 
no wrench, key or tools—only your hands. It 
is simplicity itself, and can be operated by 
anyone, anywhere, any time. 
For truck farming, fruit hauling—all pur¬ 
poses—the Melrose is indispensable. You 
can make the changes anywhere, any time, 
in one minute. Think of the time, labor and 
inconvenience it saves every day on the farm. 
The width of the bed in 
this position is 6 ft. 2 in., 
and the drop end-gate 
adds 2 feet to the length. 
The bottom is seed tight, 
thus saving enough in one 
season to pay you a big 
profit on your investment. 
No conditions, no agreement, no 
catch, no bait, no strings, no deposit, no con¬ 
cealment, no risk, no expense, no joker, no red 
tape, no obligations—nothing left out for you 
to find out later. You know all there is to 
this offer — and you know it NOW. It is a 
FREE TRIAL offer on our part to prove the 
actual value of this invention to you— and 
we hereby openly take all the risk. We 
want to send this box to your farm and let it 
sell itself to you, which it is bound to do just 
as soon as you can realize and learn from 
actual service what a wonderful, new, practi¬ 
cal time-saver, money-saver, labor-saver it 
really is. 
The Melrose 
Convertible Box 
Fifteen wagon boxes, racks and beds 
in one. No |changing of boxes — no lifting, 
tugging, straining or suffering injury. In one 
minute the Melrose can be changed for any 
of a hundred different purposes required of a 
farm wagon— the implement you use more 
than any other piece of machinery you 
own. Make it modern — and save money, 
time, inconvenience, labor, and your own 
peace of mind. 
I am not asking you to take my word 
for it — nor the Company’s word — but take 
your own word for it. You ought to be willing to 
do that. _ We agree to ship the box to you by pre¬ 
paid freight, so you will have nothing to pay when 
you get it. We agree to let you use it for 30 days 
(one whole month) in order to give it a thorough 
test and trial right on the gears of your own wagon 
in your every day work. Then if you are not per¬ 
fectly satisfied, just take the box to the station and 
tell the agent to ship it back to us, freight to be 
paid by our Company. 
Have one box for all purposes—not a lot of 
heavy, back-breaking, space-taking make¬ 
shifts that cost you more for the expense of 
sheltering and handling each yearlthan their 
actual money value. You can prove the 
Melrose at our expense. 
The Melrose is built of selected, long leaf, 
hard pine, double kiln dried. Steel sills: steel 
bracket and telescope braces throughout. It 
positively cannot bulge, warp or spring. 
Built for any and every purpose on the farm. 
It is guaranteed for five years—a straight¬ 
forward, above board, honest guarantee that 
means just what you want a guarantee to 
mean. Take it on your farm and prove it 
before you buy. 
You are not asked to pay one penny 
down—you are not asked to pay one penny 
of freight charges, or any other expense. This is 
an offer of a FREE TRIAL and it means just ex¬ 
actly what those two words-say. 
Guaranteed For Five Yeats 
An absolute, open and above board 
guarantee—just the same as this Free Trial Offer. 
It will last three, four or five times that long—and 
its first cost is but very little more than the cost of 
a good, standard make, single purpose box, that 
must be lifted on or off every time you want to haul 
hay, or stock, or chickens, or fertilizer, etc. 
Risk One Cent Send just a pos- 
tal card, giving your 
name and address today, and receive by return 
mail our big book of complete information, full de¬ 
tail illustrations drawn from actual, daily use on 
farms, together with copy of iron-clad signed guar¬ 
antee, and our great, fair, man-to-man FREE 
TRIAL OFFER that will place this modern inven- 
tion.on your farm for one full month’s test, without 
paying anything down or depositing any money in 
the bank, or anywhere, or without signing any 
agreement of any kind. This is a FREE TEST 
offer and we take all the risk, excepting the price 
of the postal card you are to send before you turn 
this page. Send that card today. INVESTIGATE. 
Welwill give one Melrose Box a free ride on the 
train to your station, if you will give it a free ride 
around your farm and plenty of exercise for a 
month— we furnish return ticket if you get tired 
of your visitor. Send that card today. 
Remember The Melrose costs 
butlittlemorethan a stand¬ 
ard make of old-fashioned, single-purpose wagon 
box. It weighs less than an ordinary, cumbersome, 
single-purpose hay rack, regardless of the fact that it is 
steel bound, silled, braced and bolted throughout— 
absolutely indestructible. It is guaranteed-it has been 
tried, tested and proved. It is recommended by farmers 
and by the U. S. Government Agricultural Experiment 
Stations. Melrose Wagon beds are on exhibition at 
both the Chicago and Kansas City Stockyards. 
PONY MELROSE 
Inventor of the Melrose Convertible Wayon Box 
Two full size cows or bulls can be hauled, 
taking only one minute to make the change 
to the stock bed. A mere boy can go to town 
with a load of straw, cordwood or pigs, and 
return with screenings, fertilizer or sawdust. 
Here the strength is absolutely proved—4800 
pounds of baled hay. Yet with all this strength 
the Melrose weighs even less than an old- 
fashioned hayrack. The entire bed is prac¬ 
tically indestructible and will last a lifetime. 
The American Wagon Co. °T 112 W. Adams St., Chicago, III 
