THE
EXPRESS QUESTION.
BETWEEN
A COMMITTEE OE BUSINESS MEN
OP
T l I C IT N I O îsT D ,
ANO
WM. MAHONE, President
ATLANTIC, MISSISSIPPI & OHIO R. R. CO.
WITH AN APPENDIX,
1874.
CORRESPO]:^DEN'CE.
Eichmoni), July lltli, 1874.
(4e.\. W^r. Mahoxe,
Prcsi'Jcnt ^4., M, (t 0. Railroad,
Dear Sir :
Eeferring you to the card
of tlie business mon of this city, published in our papers of the
26th of June, we ask that you appoint an early day for a confer¬
ence, in Richmond, with our committee—contemplating an ar¬
rangement for a through express to and beyond Southwest Vir¬
ginia. To this conference we propose to invite a representative of
the Southern Express company, and if vou will suggest any other
party or parties, deemed by you important to the solution of our
difficulties, wo will extend our invitation to them also.
We feel confident that an adjustment of the difficulties now at¬
tending the express may be arrived at, and a desirable end attain¬
ed in the interest of this communitv, of vour road, and of our
State.
In furtherance of our object, N. B. IMeade, of this city, has
4
kindly j^romised to see you and deliver this communication, to
which, anticipating a satisfactory response, we remain, dear sir.
Yours, very respectfully,
MANN S. VALENTINE, Chm\
WM. H. PALMER,
A. L. ELLETT,
JAMES A. SEDDON,
J. L. BACON,
THOMAS POTTS,
CHAS. D. HILL,
GARRETT F. WATSON,
R. E. BLANKENSHIP,
SAM'L M. PRICE.
ö
Oi.d Point, Va., IStli July, 1874.
Gentlemen :
Your couimuiiication of the lltii in.st. has been
hanciecl me iiere by Mr. IMcade.
I M-as absent from the State at the time of the jiublication in
the Whig to whieli you refer, and I have not scon it yet.
In deference to, what I take it to be, tlie spirit of your request,
and de.siring to promote, by every proper means, tiie extension and
development of tlie trade reach of the city of Kiclunond, a re.spon.se
will be made to your communication as soon as it can be rightly
and authoritatively done, on the part of our company.
Assuring you of my high consideration,
I am, gentlemen.
Very respectfully,
WM. MAHONE,
President,
M. S. Valentine, Esq.,
Chairman, Ac., Richmond.
(Through Mr.AIcaclc.)
6
Richmond, Va., July 22nd, 1874.
Gen. Wm. Mahone,
President A., 3Í. <!• 0. Railroad,
Dear Sir :
Wo aro just now in re¬
ceipt of your letter of tlie IStli iust, in re[i]y to our communication
of tlie Util iust. Since the ¡niblication of tiie business men of
Richmond and their application for express facilities to Soutli-
west Virginia, this commitiee has received communications from
the Soutliern Express company, and also an official confirmation
from the Richmond & Danville railroail eom]«nv, and one from
the Richmond ct Petersburg railroad company, stating that they
will transjwrt freights for the Atlantic, Mississippi ct Ohio rail¬
road company on the same terms as they do for the Southern Ex-
pre.ss company.
AA^ith the delay in hearing from you and the desire of the busi¬
ness men to know what has been done towards the accomplish¬
ment of our object, we had determined on publi.shing- the report of
our committee, when your letter was received, but we will cheer¬
fully delay our publication, for a reasonable time, to enable us to
hear further from vou, as wc have desired to know your position
from yourself.
Enclosed please find cojiy of the article published by the busi¬
ness men of this city, which, we regret to learn from you, has not
been sooner seen by j'ou.
A^ery respectfully,
MANN S. VALENTINE, Chairman,
Com. Buss. 3Ien, City of Richmond.
i
Atlantic, Mississippi & Ohio R. R. Co.,
Petersbueg, Va., August 7tli, 1874. j
Sir :
Yours of the 22d ultimo was duly received. I had intend¬
ed to follow up luy note of the 18th ultimo, in acknowledgment
of your communication of the 11th, by an interview, as recpiosted,
out of resjiect to your committee; for I could not presume it was
proposed to sit in judgment upon matters, whicii, certainly it must
bo admitted, belong, in their business relations, to the two or more
parties, at whose cost and responsibility the matter of express ser¬
vice, as between the city oCRiehmond and all points on the line
of our Atiantie, Mis.-^issippi A Ohio railroad is to be performed;
and I was pleased to be eontinned in this opiniou at our late, to
me, agreeable interview.
Our company has no controversy with cither the Southern or the
Adams' Exjn-ess comjianies ; nor with the Danville or the Rich¬
mond A" Petersburg railroad companies. If it had, I do not un¬
derstand that your committee jwoposes to arbitrate it, or to deter¬
mine the merits of any issue which jierchancc might exist. This
they could not do, unless so empowered by agreement of the par¬
ties ; and since there is no controversy there can be no» motive for
the reterencc, if such were asked, or proposed to be made.
1 took the objad of your communication of the 11th ultimo, to
be no more than to ascertain at our hands why it has been, and is,
that express iacilities do not exist as between the city of Rich¬
mond and the line of our railroad, in order that any influence
which your committee might possess, and should see fit to exert,
might be employed to restore the convenience.
In this view, and in conformity with the desire this compaify
has ever had, as by its acts attested, to subserve the interests of
Richmond as well, in every sense and particular, as those of any
other community, it was my intention to have aflbrdcd your com¬
mittee an interview at Richmond, as soon as my business engage¬
ments would permit me to go there. I could, and should have
8
been liappy to, have afforded your committee an interview bere, at
their pleasure, but felt unwilling to intrude the suggestion.
In yours of the 22d ult. I was advised that your committee had
determined on publishing their report, "but will now cheerfully
delay its publication for a reasonable time," that our company's
position in the premises may be made known to them authorita¬
tively. Of course, I could not suppose that it was the purpose of
the committee to report upon this matter, in respect to the party
or parties at fault—wherefore there has been, and now is, a suspen¬
sion of express facilities between the city of Richmond and the
line of our road ;—for I do not see how that duty could have been
impartially performed upon any ex parte statement of the case ;
and in this view I was also glad to be confirmed at our late inter¬
view. If there was occasion for urgency of action, I may hope to
be pardoned for a failure to appreciate the cause, when it has been
so long—now over two years—since that very state of things orig¬
inated, in which your committee now take such concern, and that,
too, when every effort on our part, in one way and another, to re¬
medy the evil, has been a matter of public notoriety.
Respect for your committee, and the desire of our company, if
possible, to satisfy them of our eflbrt in this, as in every particu¬
lar, to place the city of Richmond, in all respects, upon such terms
precisely as are afforded to other cities, prompt this response to the
enquiry contained in your letter of the 22d ult.
It was by the firm demand of our company that the cities of
Virginia were secured the same rates per mile over the line of its
connections west, as were made for other places ; and, while it could
not directly enforce this rule over the Danville road, it finally in¬
duced that result, not, however, without having first to incur an
unjust reproach at the hands of the people of the city of Rich-'
mond. The case was this :—
The Tredegar company were bidders for a large lot of railroad
findings, deliverable at Ckattanoog-a. The rates demanded by the
Danville road placed the Tredegar company at such disadvantage,
as to exclude them from competition with the agencies at New
York and Pittsburg, for the supply of this order. It was actually
cheaper for the Tredegar company to ship first from Richmond to
New York, thence by steamere to Savannah, and thence, by rail,
to Chattanooga. The Danville road was authorized to make such
9
a rale to Chattanooga as would jdaoe this trade witlun the reaeii of
Uichinond—the line from Biirkeville west being willing to ]iro-
rate on sueh a rate—hut they declined to exercise such privilege.
In this state of the case our company agreed with the Tredegar
company, through its efficient manager, Mr. Tanner, to deliver
this order at Chattanooga, at such rates as enabled them to under¬
take to fill it ; the shipment to be made by steamer from Richmond
to Xorfolk, and thence by rail over our line and its connections to
destination.
This act of ours was'made the subject of complaint at a public
meeting, when our -company wa.s charged, by reason thereof, with
di.scriminating against the city of Richmond, and with a desire to
subordinate her trade to the advantage of Xorfolk, with a purpose
of forcing Richmond thus to reach the west by our line to the pre¬
judice of her geographical situation. It looked .so, but when the
tacts here recited wore laid before that meeting of Richmond peo¬
ple, the eficct, for which the charge was made, failed of its pur¬
pose ; but the rasuit was that ihe Danville road no longer hesitated
to proi-ate with the line from Burkeville west.
It was then that to Richmond was secured the right and advan¬
tage of such Kites per mile west, as wore enjoyed by all other
])laces, and that such relations were established between the Dan¬
ville road and our line, as enabled the merchants of that city to
ship in through cans, upon through bills, and at the same rates per
mile, as those of Lynchburg, Pctersbui'g, Xorfolk and Xew York,
not only to all points on the line of our road, but to all places on
the line of its connections, and by means of which their trade, }n
the wide fields thus opened to their enterprise, has so largely
grown. It cannot then be fairly, or justly, said that there has
been, so far, any thing in the .spirit which has governed the con¬
duct of the Atlantic, Mississippi & Ohio railroad, unjust or un¬
generous towards the city of Richmond.
Now, as to this matter of express facilities, let us examine the
fiicts in regard to the action of this company in the premises, with
a view to ascertain in what jiarticular it has failed of the like spi¬
rit. That our company, as well as every other similar corporation
in the State, has the right todo the express busine.ss over its own line,
and in conjunction with any other common carrier, need not be
discusseil. The firat is an inherent right ; the other is a matter of
2
10
special authority, conferred too as if to inspire the railway compa¬
nies to the performance of this service directly on their own ac¬
count. The language of the Code is unmistakable.
This company has ever held that it was the duty, as well as the
interest, of the railways to perform this service ; for, .so far back as
1855, at a regular meeting of the stockholders of the Virginia &
Tennessee company, (now one of its component parts,) a resolu¬
tion, reported by the business committee, was unanimously adopted,
declaring "that, in the 02)iniou of the stockholders, the arrange¬
ment made with the Express company ouglit to be discontinued,
as soon as it can be done under the contract between the parties,
and that the same service ought to be performed by the company
by means of its agents, at rates to be established according to law
by the board of directors."
lu that day the city of Richmond was a stockholder in that
company, and as this resolution was adopted by a unanimous vote,
her assent and recommendation attach to this declaration of policy.
In the fall of 1859, when its contract with the Express company
had expired, by order of the board of directors, that company did
undertake to perform the local express business on its line.
Until recently our railways have had no authority to farm out
this service, which, if due to the public at all, was a part of their
obligation ; they have had no right to be.stow this privilege upon
another. To concede this, would be to clothe such corporations
with the power of eminent domain—the power to grant franchi.ses.
Then, until within a few years past the express companies have
been, in law, no more than the agents of the railway companies,
and their acts and liabilities have been tho,se of their principals.
Since the war, until April, 1872, the Southern Express company
—so called—if not yet, and all the while, in substance the Adams,
did the express business on the Virginia & Tennessee division
of our road. They had made a contract in September, 1865, with
the old Virginia & Tennessee company, to last for four years, in
consideration of a loan, made when that company was in financial
straits, upon terms the injustice of which is manifest, when it is
stated that their express matter was carried by regular passenger
trains, giving them the exclusive use of a car each way per day, at
rates which were much lower than the public were chai'ged for
transportation by slow and irregular freight trains, and which
11
were considerably less than the railroad company could afford to
another express company, (the National, which desired to make
a contract over that road, as competitor with the Southern Ex¬
press compiiny,) but four months subsequently; and this, to say
nothing of the superior facilities afforded to the Southern and de¬
nied to the National company; the first having the exclusive use
of a car each way daily, whether full or empty; the sole control
of the weight of the matter carried, upon which the pay was based ;
and free transportation for their messengere and all officers of that
com])any; while the National was not given a whole ear, was re¬
quired to report weights under oath, which sworn statements were
yet subject to verification by the railroad company's agents, and
the privilege of free travel confined to its messengers and general
officers, when traveling upon official business.
This was a contract, whose favorable terms grew out of the con-
sidenition upon which it was based, but it was none the less a vio¬
lation of pui)lic duty; a misuse of the railroad franchise, which
should grant to all shippers, under the same circumstances, the
like facilities and accommodations. Any other rule would work
that into an absolute monopoly, which was, and could only be
granted for the public service and the public good, and should not
be tolerated, no matter what the consideration given.
These agencies came into existence from an incapacity of tiie
railway system generally, at the time, to serve the public with
continuous transportation. Each railway had grown up under
the idea that it was only to serve the traffic incident to its own
line. The rapid development of the system, however, and the
intolerance of obstructions to the flow of trade, contributed largely
to the conscdidation of lines, whose interests were homogeneous,
until that has become an accepted, theory in the management of
railway property. Hence it was that these agencies became an
important institution to the )>ublic convenience; and it was under such
co-operative circumstances, that the)' became a monopoly to a larger
degree than has been attained by any carrier, on which any pro¬
portionate public were ever dependent; and, as a consequence of
these singular advantages, they have made money, fortunes, and
princely fortunes for their owners, while many of the very rail¬
roads, whose property the^ eojplovcd, especially at the south, have
been languishing.
12
But there is now a growing disposition on the part of railway
managers, inspired no less by a due regard for the best interests of
the property intrusted to their care, than by a public demand for
tlie enjoyment of express facilities at more reasonable rates, to
narrow down the operations of such "intermediaries" to the limits,
within which they themselves cannot as well perform the ser¬
vice, and Avithin which these agencies should be confined, and
wiicre they have their legitimate sphere of usefulness. Many of
the leading railways are now doing their own express business,
and that too AA'ith better results to the public and to themselves.*
It would be difficult to controvert the general proposition that,
if the express companies can grow, as they have grown, vastly
rich, why should not this valuable source of revenue be turned,
as far as practicable, to the proper account of the railway owners?
They furnish the cosllj' part of the equipment for the service ; all,
but the wagons, the officers and employees, and the paraphernalia
of fine offices, much of which would not be necessary, if the rail¬
ways performed the service, and, thus, a material saving would be
made to the public, independent of any share of the tax, which is
*Among the more prominent roads doing tlicir own express business, may
be mentioned tlie Union Pacific, the Philadelphia & Reading, the Lehigh &
Susquehanna, and the Cincinnati & Muskingum Valley. The St. Louis Ct
Iron Mountain does its own local express business. The Adams and Southern
Express companies only operate over 127 railroads, while 258 other roads
employ other agencies.
In the last annual report of the Philadelphia & Reading railroad company,
the President (Franklin B. Gowen, Esq., one of the first railroad men in this
country) and Board of Managers sa}'—
" The express business continues to justify the e.xpectations formed by the
managers at the time it was commenced. The net profits for the year were
$41.915.00, (after charging to expenses over $0,000 for equipment account,
required by the increase of business,) an amount largely in excess of that
received in any previous year from the Adams Express company.
"This result has been secured notwithstanding the continued bitter opposi¬
tion of the Adams Express company, which manifests itself in a reduction of
rates to all competitive points, and in sending money and other valuable
packages over the line, in the care of agents who travel and pay fare as pas¬
sengers, thus withholding from the company all receipts from what is gene¬
rally the most profitable business.
"The company now doss an express business over 794 miles of railway,
and has 143 offices."
l;]
levied by these agencies, over and above the atuounts paid to the
railways for hauling their freights. As to to the matter of respon¬
sibility, I take it that no one will contend that such express
agencies bear even a reasonable comparison to the railway property
of the country.
It was the habit, quite universal at one time, to allow these
"intermediaries" not only the exclusive privilege of transportation
by passenger trains, but under terms, which allowed them to ac¬
count for the weight, or amount of freight, carried ; thus, in fact,
leaving to such agencies to pay the railways what they pleased,
while there was no limit upon their charges to the public. No
other shipper was allowed such privileges. His freight was weighed
by the conijiany's agent, and his payment for transportation, by
freight trains, was by the company's fixed tariff.
In the matter of-small packages the express company would
receive $25 to $40 for 100 such parcels, for which the railway
would be paid $2 or $0; while, for the transportation of thousands
of dollars the railway would receive pay only for the weight of the
«afe, in which they were transported, if indeed that much.
A sense of duty to the public, and of official propriety, is cor¬
recting this mistaken liberty to such agents, and our own Legisla¬
ture has wisely enacted restrietions aiming at restraint, in this re¬
spect. To allow such agents the exclusive use of a c<ar on a pjis-
senger train, for the consideration of twenty-five cents per hundred
pounds, per hundred miles, may be sufficient compensation to a
railway in the opinion of its management, where such contracts
exist—and it is believed that they do prevail on some of the rail¬
ways of our State—but such terms could never be acceptable to
our company, as they are not to, at least, one or two other Virginia
railways. Such a r.ite would yield the railway, for the service of
its car two hundred miles—one way full and the other empty—
(allowing that the maximum load, which the law permits, is hauled
and accounted for) $37.50, or $18.75 for one hundred miles, and
this too by passenger trains. No wonder express companies flour¬
ish, and no wonder that they seek to monopolize this manner of
tran.sportation.
And how do such rates compare with the charges levied by our
railways on shippers by freight trains? Take the local tariff of
our company, which will be found as low as that of any other in
14
Virginia, to say no more. We charge for a ear load of fertilizers
100 miles, $19; for a ear load of sheep, $25.50; while for a whole
ear load of first class freights, sneli as the express ^v•ould carry,
$93.60 would be the amount of revenue for 100 miles by freight
train, as against the $18.75 of revenue derived from the express
company, upon the terms above mentioned ;—and this, too, when
tiie average actual cost over our road, for hauling a car load by
freight trains, was last year $23.49.
Now, then. I have said that the Southern Express company
was operating on the Virginia & Tennessee division of our road
up to April, 1872. Let us see what were some of the results to
the railway.
In 1866, the first year after the contract was made, and when
the loan was outstanding to be repaid out of the railroad earnings
on this account, the express company paid the Virginia & Tennes-
,see company $48,858.92 ; in 1867, it paid $42,673.31; in 1868, it
paid $32,475.45 ; in 1869, it paid $28,333.56; in 1870, it paid but
$24,917.20; while in 1871 it paid only $20.204.98. Here wasa fall¬
ing otf in the sixth year, of largely more than one-half of the
amount paid the company in the first year or two under this con¬
tract, and yet, the use of a car per day each way was all the time
afforded. The same car would have earned more in hauling pig
iron at tonnage train rates.
In 1868, upon the application of B. F. Ficklin, doubtless in the
intere.st of the Virginia Express company, an injunction was
awarded by the Hon. Judge Chambers, restraining the railroacl
comiiany from the further execution of the contract with the
Southern Express company ; and, in obedience to the mandates
of the Court, the board of directors notified the Southern Expre.ss
company that it would be necessary to execute a new contract.—
Various interviews were had between the express and railway
officials, and the matter fully discussed. On the part of the rail¬
way company several forms of contract were submitted, but none
of these were accepted, and, accordingly, in March, 1869, as no
contract had been made, and the old contract was rendered inopera¬
tive, the Southern Express company was notified of the terms
upon which they would be allowed to do business over the Vir¬
ginia & Tenne.ssee division of our road. Negotiations were re¬
opened, but no agreement was reached; the express company
being jieniilttcd, however, to continue at pre-existing rate.«; wlien,
in May, 1871, tlie stockiiolders of our company, in general meet¬
ing, unanimously ]>assecl a resolution, asking the management to
extend the operation of its local express* (then, as for years ])ast,
doing business between Lynchburg and Norfolk) over tiiat part of
tiie line between Lynchburg and Bristol.* Action upon tiiis reso¬
lution was necessarily delayed until April, 1872; and, before any
was taken, two propositions were submitted to the Southern Ex¬
press company, tiirough tlieir superintendent, both of which were
declinc<l, and tiiat express company withdrew from the line of
our road, as of course tiiey had a right to do. Then our local
express went into operation over the Virginia & Tennessee di¬
vision. It will be borne in mind that our company had, for years
past, conducted the express business over its line east of Lynch¬
burg to Norfolk, aud. that, for at least three years, the Adams'
company, striking us at Lynchburg and Norfolk, and the Southern
company at Petersburg, Burkeville and Lynchburg, interchanged,
with our express all manner of express business at these points.
The arrangements for this interchange of business were made, by
the officera of tiie companies, in furtherance of an earne.st desire
"to afford the public every facility for express transportation," as
announcKl by the superintendent of the Southern Express com¬
pany, when arranging for this interchange. These arrangements
•At a ttencral meeting f>f the stockholders of the Atlantic, ^Mississippi &
Ohio railroad ooinpauy, called pursuant to law, held in Lynchburg, .Ma^' 18th,
1871, Hon. Thoina.s S. Bocock presiding—
Tlie following rc.solution was offered by Hon. Fayette McJtullen ;
"Resolved, 'i'hat the committee on Busines-s be requested to urge upon the
President and Directors of the A., M. & O. R. R. Co. to perform the btisi-
neas of the e.\pres.s companie.s by said company."
This rc.solution was referred to the committee on Business, consi.sting of
Jos. B. Dunn, Judge R. H. Jones, Jr., T. L. H. Young, Joseph E. Venable, of
Petersburg ; W. W. Gwathme3', Dr. E. C. Robinson, of Norfolk ; F. B.
Hurt, of Smythe ; H. J. Venable, of Prince Edward ; Jno. H. Flood, Dr.
Ro. Eiirly, P. J. Otey, of L.vncbburg ; A. A. Pblegar, of Montgomery ;
Judge E._F. TilU'r, of Scott ; Dr. Ro. Crockett, of Wj'the, and Geo. P. Ta^'-
loe, of Roanoke.
The committee on Busine.ss reported the following resolution, which was
unanimously adojhed bj- the .stockholders :
"VI. That the President and Board of Directors are requested to conduct
the express business over the line on the company's own immediate account,
in so far as the same maj- be conducive to tlie best interest of the road and
the more reasonable accommodation of the public."
16
worked harmonionsly and satisfactorily, and tlierc was nodiflnndtv
nor complaint, during the three years of their existence.
At the time when tht^ Southern Express company withdrew,
from our Virginia & Tenne.ssee division, there was no canse for
controverey, so far as we know, between that company and ours ;
and none, certainly, between the Adams company and ours, for it
was not using any part of our line, but was in harmonious busi¬
ness relations with our express.
Immediately upon the withdrawal of the Southern Express
company, our manager ordered his agents to receive from that
company all available express matter, they might have on hand
for points on our road, and to a.ssume their charges, so that no in¬
terruption of express facilities might ensue. He also wrote to
that company for copies of their rates, proposing to furnish his
own, that a joint tariff might be made. In the meantime the
Southern Express company, at Burkeville and Petersburg, con¬
tinued to interchange~business, as before, with our local expi-ess,
and the Adams not only continued their interchange at Xoriblk
and Lynchburg, for points on our eastern divisions, but also for
all points on our line west of Lynchburg, just as they had former¬
ly interchanged with the Southern Express company. *
This interchange was satisfactorily continued until April 13th,
(say eight days) when, without warning, or cause alleged, our mana¬
ger was notified that the Southern Express agent, at Burkeville,
had orders to refuse longer to interchange business with our ex¬
press, and this order was, on the 15th April, put in force, and as
well by the Adams company at Lynchburg and elsewhere. In
New York the ptublic were notified by the Adams company, that,
in consequence of the withdrawal of the Southern Express from
our road, no freight would be received for the stations on it :—and
this affords the only clue to the refusal of these express compa¬
nies to continue to do business with our express, as they had been
doing for three years before, and as they do with all other expre.ss
carriers, and as other like carriers do with us.
No attention was paid to the letter of our manager, a.sking a re¬
turn to such former business relations, nor was any explanation
given for its discontinuance, but a policy of non-connection was
rigidly enforced. To raise the embargo we proposed to ship
freights for points off our line by the Adams and Southern Ex-
17
|)i'oísS conípaiiios, üs individuals, allowing our clmrgcs to be col¬
lected C. Ü. D., but tills was refused, notwithstanding our mana¬
ger is.sued ordei-s extending the same facilities to them.
The Adams and Southern Express companies had a right to
pursue this course.
Kailways arc generally bound to terms of intercourse with their
connections ; but these express ag'cncies are under no such re¬
straint. Ly the laws of our State they can run over such roads as
they may select, connect with whom they please, and exclude such
carriei-s as they may choose, without regard to the public conve¬
nience. If a railway does not choose to do its own express busi¬
ness, these agencies may do it if they please ; and if they do not,
they are under no legal obligation so to do. They may deprive
the public of the enjoyment of express facilities, at their will, by
holding a railway to their own uses, and by refusing to connect
with such other railways as may not agree to submit to their terms,
or with such as they might not choose to operate.
In this state of the ease, the necessity for making connections, in
order to prevent ¡niblic interest from suffering, was obvious, and
this company promptly proposed to the Danville and Richmond &
Petersburg railroad companies, to the Daltiinorc Steam Packet
company, and to the Old Dominion Steamship company, to unite
with it as joint carriers in conducting an express business. Sim¬
ilar proposals were m:idc also to our connections west. The Balti¬
more and New York companies readily agreed, and thus express
communication with those cities was restored. The Danville and
the Richmond & Petei-sburg companies declined. Thus the mat¬
ter stands, and so Richmond is still deprived of express facilities
with points along the line of our road. The correspondence be¬
tween our company and the Danville ha.s already been made pub¬
lic. In substance, it was stated that, inasmuch as the Southern
Express company had discontinued all interchange of business
with us at Burkeville, and at Petersburg, and our company desir¬
ing that Richmond should continue to enjoy express facilities with
all points on its line, the Danville company was asked to join it to
this end—receiving of us and delivering to us such freight as might
offer, precisely upon the same terms as we now, and then, conduct¬
ed the freight business by tonnage trains ;—they assuming the re¬
sponsibility and delivery of all packages delivered to them by our
0
18
company, and accounting for its share of the charges,-—our com¬
pany receiving all packages from the Danville road on the same
terms.
The charter of the Danville road looks, in fact by express terms
aims, by the line of that road, to secure for Richmond continuous
transportation over the entire extent of our A., M. & O. road, as
if the two were one and the same corporation. If there be any
force in these terms, and any purpose in the legislative will thus
expressed, wherefore do they not apply in respect to the matter of
express freights ? If there be any obligation to interchange
freights by tonnage trains, why not the same by passenger trains,
though the privilege of such transportation shall be entrusted to
another? If this be not so, and the obligations of the charter do not
apply as to freights carried by passenger trains, then the full in¬
tent and objects of the franchise, in this important respect, may be
readily subverted, and rendered nugatory, by subletting all- the
freight business of the Danville road.
If the Danville and Petersburg companies prefer that this busi¬
ness should be conducted by an independent agency; if they can¬
not see that they might as well do the business and make as much
out of it, if not save for,themselves and their customers, all that
profit, which is taken directl)' from the public to the exclusive be¬
nefit of these "intermediaries"—a profit on which they have not
only been enabled to support a large corps of servants of their own,
but to enrich their proprietors—it is their prerogative so to deter¬
mine, as we hold to our company's right to pursue that course
which it conceives to be its proper interest, and its duty to the public
as by every requirement of its charter imposed. If the hazards
of the business were such, in their opinion, as to make prefer¬
able the responsibility of the express company to the fidelity of
their own agents, and responsibility of their bondsmen; if they
did not choose to require their agent, the express company, to
do that, which the public convenience demanded—continue
with our express, an interchange of business at Burkeville and
Petersburg; if they were not willing themselves to do that,
which would secure to Richmond a continuance of express fa¬
cilities, of which .she was deprived, no matter if there was some
risk, and, in their opinion if you please, not so much profit, it
was their right so to adjudge. But all this fails to furnish the
19
shadow of a reason, why our company should surrender the use
of its property to the Southern Express company, upon any
otiier terms than seem to it conservative of its best interest, and
consistent witii its duty to the public considered as a whole, and
not with reference to any decimal of that people :—to the citi¬
zens of the entire Commonwealth it was expressly created to
serve.
I have said there was no occasion, necessity, nor reason, known
to us, for tlie discontinuance of the interchange at Norfolk, Pe¬
tersburg, Biirkeville and Lynchburg. It had worked successfully
for tiiree years, and the failure of one of these express companies to
make a contract over a part of our road did not, and cannot, justify
that particular company for breaking existing satisfactory rela¬
tions with an express operating over the other part, much less
justify the Adams company—a third party, so to speak—in the
exercise of such an arbitrary course. This interchange extended
to all manner of business. And now, when the Southern and
Adams companies will not, any longer, interchange business
with our company's express, for no fault on our part, as they
had done for years past, as they do with other express agencies,
and as other express companies do with us, and thus restore to
Richmond communication by express with the line of our road,
it does not follow, I shall presume to say, that our company
should yield that, which it believes to be right in this matter ;
or, that it should sacrifice the interests of the people along its
line, from Bristol to Norfolk, and the advantages they enjoy, to
the idea of a connection with one city, however much we
might ardently desire to be in the most intimate relations with
her citizens, and we will not believe that such will be expected
on their part. Our express is serving its patrons at rates which
are from fifteen to forty per cent, less than those which they
formerly paid. The business is daily increasing in value and ex¬
tent ; liberal rates are stimulating shipments, and giving vitality
to hitherto dormant industries. The trucking business of our
Norfolk & Betersburg division, and the fowls, eggs, fresh meats,
b itter, itc., along the line, are making u[» a handsome little
t alfic for our road, and a source of no inconsiderable revenue to
our people. Besides all this, our road is now, for the first time,
receiving a fair remuneration from its local express business. In
20
187], the amount paid our Virginia & Tennessee division, for
the transportation of local express by the Southern Express
company, averaged S203 per month, while the company's revenue,
on the same division, for the^?'si leeeh it conducted the business
on its own account, was $237.52, nearlytimes as much, not¬
withstanding the lower rates at which the business was done.—
In that year the Southern Express company paid that division
for the local business of the year $2,436, while, in 1873, our
local express, rigidly confined to a local business by the block¬
ade, which the Southern and Adams had, with the co-operatioii
of some of our railroads, been enabled to enforce, returned for
this division $16,291.25, clear of expenses ; and this, without
taking into consideration the increased revenue on the other d^
visions, (Lynchburg to Norfolk) from $11,838.37 in 1S71, to
$16,636.56 in 1873,—or nearly 50 j^er cent.—and the saving of
the cost of hauling a car each way daily, between Lynchburg
and Bristol. If our company had enjoyed, at the same time,
the through business also, and it would have exhibited a like
ratio of increase—mainly, perh.aps, the charges added by the
express company to the consideration paid to the road—then the
income to our company, when the express company paid twenty
thousand, would have been nearer sixty thousand dollars. We
submit then, upon our experience, which has but verified and
confirmed the opinion, we have always entertained, that it is due
to the public, and to our company's own proper interest, that
this service should be, so far as can be done, performed by its
own agents, rather than by intermediary corporations, and to
their aggrandizement; and that the service may be quite suffi¬
ciently I'endered unto our own people, by the co-operation of
connecting lines, and perfectly as to them and to all communi¬
ties, by that interchange of business, which is common,—ex¬
cept as to the Southern and the Adams, who refuse to hold such
relations with us.
If either the Adams or Southern Express companies, or the
Danville, or the Richmond & Petersburg railroad companies have
exhibited, not more but even, as much concern as our company
has evinced for the accornmodation of the city of Richmond in
this ponnection, we desire to be qdyisedT-^Wherein 1 pr if e.ny-
thÍRgFemains íq ^9 done» whíoli cat) be reasonably a§bed it) the
21
premises, and which this company can properly do, we would
earnestly enquire—What ?
If these railroads will not, for the accommodation of that city,
join us in an express service, have they no power to compel its
rendition by their agent, the Southern Express company ?—
Wherefore is it that that concern refuses to do with us that,
which it does with others, what other express companies do
with us, and that which, it must be admitted, is all that is neces¬
sary to restore to Richmond the full enjoyment of express facil¬
ities with our line? Is it because they desire to monopolize the
business, and, upon their own chosen terms ; or, is it that the
shallow pretext of an excuse is oflered tiiat they do not care to
share the responsibility of joint-carriage with our company? If
the latter, why not so at the time, when they interchanged busi¬
ness with our company for three t'ears, when they solicited an
expression of responsibility, and were satisfied with that which
was promptly given ? And what is their responsibility after all,
under the form of the receipt or contract they grant to shippers.
There, they assume to he mere forwarders, denying and expressly
absolving themselves from all liability for freights intrusted to
tiiem for delivery, while being transported by tiie railways. To
whom then shall the shipper look for indemnity in the case of
loss, unless they .shall especially contract for delivery as insurers?
Under the laws of our State not to the railroad company. The
express company may, and they do pay, small losses, as a matter
of policy ; but tlicy arc not liable, according to late decisions of
the courts in cases contested by them.
But you advise me that the Southern Express company and
the Richmond & Danville, and Richmond & Petersburg railroad
companies are now willing that our company should run over
their roads its express, upon the same terms which are granted
to the Southern Express company. How it comes to pass that
the permission of the Southern Express company is necessary to
the extension of the grant proposed, for so it would appear, I am
at a loss to conceive. Was this offer made in good faith, and as
an earnest of the desire of the parties to accommodate the views
of your committee ? Is it tendered as a concession of anything ?
If 80, it displays an unfortunate lack of knowledge of the law,
wbicb governs the corporations tbe'J' and ourselves fespectivcly
22
represent ; otherwise a seeming indifference for the interest in¬
volved, and for the concern your committee have taken in the
matter.
Common carriers are bound to grant to all customers the same
rates and facilities under like circumstances. Is this then all
these Richmond terminating roads are prepared to do? Is it all
which their agent, the Southern Express company, will permit,
in furtherance of your desire, and that of our company, for the
restoration of express facilities between our line and the city of
Richmond ? This gracious and generous tender is but an empty
offering. Did these companies not know that our company
could not exercise such privilege? That while it could do an
express business over its own line, and over another as joint car¬
rier with it directly, or by its agent, it had no power to engage
in such business in any other wise.
I have only to add that our company is now, as it has ever bexn,
not only willing, but anxious, to advance, by every proper means
at its command, the welfare of Richmond ; and, in this matter,
has done all it can well do, and maintain a just regard for all
other interests. We are ready noio, as always, to take any ex¬
press matter brought to us by the Danville or Richmond & Pe¬
tersburg roads, either by themselves or by their agent, the ex¬
press company; to assume charges and make delivery, and to
deliver, in like manner, to them any express matter we may have
for Richmond, or for points along the line of those roads—money
parcels, or any other packages, in any amount and of any value
—at rates not higher, but in many cases less, than before charged
upon similar matter, when our tariff is taken as the basis.
We are ready to join these roads—as expressly authorized by
law, and as if to stimulate our railways to do their own express
business—in the formation and performance of an express ser¬
vice as between the city of Richmond, the line of their roads,
and all points upon our company's line. And if it shall be ob¬
jected that the length of road to. be employed is too dispropor¬
tionate to conduct the business on the pro-rate basis, the rule ap¬
plied to freights by freight trains-might as well be denied. But
this is an insignificant detail, which can be easily adjusted, when
the parties are otherwise agreed as to the service.
23
If our company had the power to run an express over the
Danville and Petersburg roads, as proposed, it would not hesi¬
tate to do so, at such rates as are charged the Southern Ex¬
press company. And it would do this more to relieve the blockade
to which the city of Richmond has been, and is, subjected, by rea¬
son of the position taken by the Southern Express company, and
the Danville and Petersburg roads, than from any desire, to en¬
gage in the business, otherwise than now provided by law.
Neither the cost, probable profits or liabilities of tbe underta¬
king, (they are as nothing) would restrain our company from go¬
ing thus to j'our relief.
Yours, truly,
Wil. MAHONE,
President.
To M. S. Valextixe, Esq.,
Cluiirman Committee, &c.
Richmond, Va.
r» IC :N^ D I X .
EXTRACTS
FROM THE REPORT OP SPECIAL COMMITTEE ON RAILROADS,
APPOINTED BY THE OHIO SENATE, SESSION OF 18G7,
REIjATIVE TO
FAST FREIGHT AND EXPRESS COMPANIES.
HOIV THE PROFITS ARE MADE.
The Union Railroad & Transportation company, known as the
Star Union Line, is a corporation under tlie laws of Pennsylvania,
organized in tlie fall of 18G3, with a capital of §1,400,000, subse¬
quently increased to §3,000,000, and went into operation January,
1864. It operates over the Pennsylvania Central road, and ex¬
tends from its termini eastwardly and westwardly over roads lead¬
ing to and connected with the Central road. Its principal movers
were commis.sion agents of that road in Philadelphia and Pitts¬
burg, and it is said to embrace a portion of the officers of the road
among its managers and stockholders. Its stock was extensively
distributed and sold at various prices ; to railroad men in Ohio,
so far as we have learned, at fifty per cent, of its par value. *
* * This comj>any has paid upon its stock, since it went
into operation, a steady dividend of one per cent, a month, with a
surplus that has increased its assets to an amount probably ex¬
ceeding the par value of its capit.al stock i.ssue<l. The stock has
sold at §85 per share of §50, and is bought and held by the
shrewdest of our business men as a safe and productive invest¬
ment. In one instance, coming to the knowledge of your com-
26
toittee, $22,800 of the stock, costing the o\^'ner thereof ä little
over $7,100, was, after a careful examination by the Board of
Equalization of Hamilton county, valued and assessed for taxa¬
tion at $80 per share, or $36,480. We are led to believe that this
fact is a measurably just indication of the enormous profits de¬
rived from its business. It mav be remarked on the other hand,
that one of the roads in Ohio over which it operates is in the hands
of a receiver, with one-half of its capital stock transferred to pay
arrears of interest on its bonded debt, and the other half receiving
no dividends. * * *
On the other hand, the Dispatch (another line, the Great East¬
ern Dispatch,) with the actual investment of but about $6,000,
made in the first eighteen months of their operations $130,000 of
profit, about per cent, upon the entii'e capital stock of the road
(the Cincinnati, Hamilton & Dayton). To these enormous profits
to make up the gro-ss receipts of the Dispatch, are to be added
their expenses, including rent of warehouse, salaries of agents,
&c. It is not disputed thai these large sums of profit and expenses
were, with trifling exception, taken from the earnings of the roads.
* * * * * *
The presidents of two roads were offered gratuitously 10,000
shares each, of the stock of a Pennsylvania corporation, in con¬
nection with a contract pending with their companies, and, with
the approval of their board of directors, thejj accepted it in a se¬
cret trust for their use. Indeed, it may be safely affirmed, without
specifying the particular cases that have come to our knowledge,
that every one of these organizations has sought to distribute their
stock upon terms more or less íávored, among raili'oad officers.
* * « * * * *
We have already given some facts showing the enormous profits
of these organizations. These profits ai-e either derived from an
increased rate to shippers, in which case it becomes a burden to the
public, or by taking a part of the lair earnings of the railroads, in
which case they are impoverished, or in part from both, which last
is probably the true hypothesis. The case is a simple one. There
is an additional party to provide for, with no moderate wants, re¬
quiring heavy dividends and large surplus. The roads already
impoverished with their own strifes, can spare but a part ; rates
must be increased and the public pay the balance. The price is a
heavy one for the temporary convenience, but must be paid.
27
In tlie meantime, stockholders are without dividends, the roads
out of rejiair and witiiout fences, and the public are losing life and
property from defective road and maciiinery, and still paying high
rates for their accommodation. Some of the roads, over which
these oi'ganizations operate, undergoing repeated capitalization of
stock, are in tiie hands of receivers for the benefit of the creditors,
and others, with their stock wiiolly sunk, are being sold to pay olF
their debts. » * »
The result, therefore, of our examinations has been, that out¬
side freight organizations ought to be discouraged or prohibited by
legislation. » * *
Entire protection to the local interest of the State demands that
railroads should not be permitted- to abdicate any part of their of¬
fices or farm out their duties to others to perform.
* * * « * « . »
During tiie war various causes contributed to largely increase
the amount of goods carried by express companies upon the pas¬
senger trains, which imparted a new character to the business and
gave great importance to those companies, as a new channel to the
more valuable commerce of the country. Had this continued it
would have presented some serious questions as to the safety of
travel and the interests of railroads, for perhaps the legislature and
certain railroad managers to solve. With the removal, however,
of the active causes of increase during the war, and the great im¬
provement in freight facilities since, their business in carrying
freight h;us declined, and the tendency certainly is, as trade and
prices become settled, to restore to the ordinary freight transporta¬
tion the whole carriage of merchandise and other valuable freight,
heretofore shipped in part by express. » ♦ *
HOAV COMPETITIOX IS .STIFI.ED.
The largely augmented profits of the express companies, result¬
ing from this temporary increase of their business, produced its
natural result. A new company was started, with a formidable
capitîil, widely distributetl among the mercantile communities of
the United States, giving to it at once the advantage of a large
traile, Tiie three old companies, the Ada-ms, the United States and
the American, had divideil the terrritory over which they operated,
among themselves, established common rates between the larger
points where they should compste, and arrangetl to carry the
28
freight of each other to its destination when taken by one compa¬
ny to be delivered within the territory of the other. They thus
established for themselves substantial monopolies in the express busi¬
ness within their respective territories. Their rates were fixed ar¬
bitrarily, and of course were influenced by no competition.
Immediately upon the Merchants Union Express (the new com-
pany) gding into operation, a private circular was issued by one or
more of the old companies, forbidding their agents "from having
business relations with this organization, (M. U. Express company)
directly or indirectly," and commanding that "no express matter of
any descr iption is to be received from them or delivered to them, whether
paid or unpaid, consigned or unconsigned." They were also di¬
rected "to retain the business , * * at whatever reduction
in price may be necessary" on all routes competing with the Mer¬
chants Union Express company, but to maintain their rates upon
others. The new company was treated as an intruder and outlawed.
The business the old companies determined to maintain was the
whole express business, within their respective territories, "on the
routes occupied" by these companies. To maintain this mo¬
nopoly, honorable and liberal business relations with the intru¬
ding company were forbidden, their obligations as common car¬
riers, to receive and carry freights from all, repudiated, and a
wholesale and unlimited cutting of rates at competing ¡joints en¬
tered on. This attempt to interfere with and prevent the estab¬
lishment of a competing business is certainly not entitled to favor ;
against it all rights ought to be be protected and all obligations
enforced.
* * * * *
' INCONSISTENT INTERESTS AND DUTIES.
We have already adverted to the apparently uniform policy and
practice of freight and express companies, of having portions of
their stock in the hands of railroad officers. At the time the
law of last winter, relative to the ownership of such stock by the
officers and agents of railroads, was enacted, the larger nunjber of
those we examined were owners of it in one or more companies,
but had, in most instances, disposed of it after the passage of that
law. In some instances they yet retain it. The law referred to,
though not carefully enough considered in some of its provisions,
was a wise one in its object, and has proven very useful already
in its effects. It is founded upon the principle that the integrity
29
and fidelity of railroad officers and agents shall not be tem2ited by
inconsistent interests or embarrassed by inconsistent duties. It is
a simple and fundamental principle in the laws of all civilized
communities, and governs every prudent man in the management
of his private business. No business man permits his clerk to be¬
come the agent of his customer ; no court allows a trustee to deal
with or speculate in his trust ; no law allows a man to hold in¬
consistent offices. In railroad management, by reason of the easy
concealment, thecomjde.xity of its affairs, and the practical impos¬
sibility of their examination, afford to unfaithfulness and pecula¬
tion, this becomes an indispensable rule of protection to railroad
stockholders.
Yet, we are compelled to say, as the result of our examination,
and an extensive intercourse with railroad officers and agents, that
the rule is, to a great extent, ignored in railroad management in
this State. Agents and officers of every grade, sometimes openly,
with the apjjroval of the board of directors or superior officers,
often secretly, deal with the ro.a<l, accept offices and employment
inconsistent with their duties to it, and engage in business inter¬
fering with the rights and accommodations of its patrons. * * '
In one res2)ect particularly, a jiractice prevails, which, owing to
its extent, deserves to be mentioned. We refer to the employment
of station agents by express companies. It tends to improper in¬
terferences with the rights of the public in the carriage of baggage
and parcels on passenger trains, with the interest of the road in its
freight traffic, and with the rights of competing express companies.
Is it surprising that with such rjilcs of business management,
and with such relations existing between officers and agents and
their roads, the stock .should become worthless, or yield irregular
dividends to stockholders? Can it be expected that, in the strife
between private interest and official duty, the latter must not
wholly or partially give way? * * Eailroad agents and
officers, as strictly as men holding fiduciary employments or trusts
in other cases, should not be permitted to a.ssume duties or acquire
interests inconsistent with the interest of their roads.
• *•••«*
Eesjiectfully snbmitted,
WAENEE IVr. BATEMAN,
SAMUEL AVILLIAM.SON,
JAMES C. HALL.
30
EXTRACTS FROM TESTIMONY TAKEN BY THE FOREGOING
COMMITTEE.
WHAT SOME KAILEOAD OFFICIALS THINK.
From testimony of W. D. Griswold, General Superintendent of
railroad lines from Cincinnati to St. Louis :
Q,. What is your opinion as to the advantage of express compa¬
nies, 1st, for the carriage of small and valuable packages and mo¬
ney ; 2d, as to the carriage of large packages, merchandise, &c.
A. I think express companies running on railroads, carrying
small packages and money, are an appendage both valuable to rail¬
road companies and the public ; but the extent to which they are
being carried now, general freighters on passenger trains, are objec¬
tionable to railroad interests.
From testimony of O. Follet, President Sandusky & Cincinnati
railroad company :
Q,. What accommodations do you provide for moving jmur lo¬
cal freight? Do you afford any accommodations for the carriage
of parcels, packages, and small freight, ia your baggage cars for
your local communities? * * *
A. The accommodation of packages and small freights is
afforded by the express companies on our road, beyond what
the individual on the passenger trains may claim as bag¬
gage, or take under his immediate charge. I have long felt
that the surrender of this branch of transportation was wrong ;
and the sooner railroad companies resume their rights in the
premises the better it would be for them and the community. I
will not enter into details or theorize on the subject, but were ex¬
press companies confined to light parcels of value, money and per¬
haps letters—could the general government be prevailed upon to
give up what it performs so badly and at unnecessary cost in this
particular—they would fulfill the purpose for which they were
originally designed, and become a great public blessing, strength¬
ening the railroad interest of th« country on which it ha^ fastened
31 "
lihe a parasite, imicad of eating into its vitals, threatening its inde-
j>endent existence, in some cases.
From tast'unony of Erasmus Gest, President and General Su¬
perintendent of Cineinnati et Zanesville railroad :
Q,. What advantage are express companies or fast freiglit lines
either to railroads or shijipers, and how far can either be dispensed
with without prejudice to railroads or shippers?
A. Express companies that arc organized and conducted for the
sole purpose of taking charge of moneys, valuables and articles,
such as require special peraonal supervision or care in Siife-keeping,
handling or transmission and delivery, and will bear the extra cost
attending such personal attention, custody and rapidity of transit,
are of advantage to the public and railroad companies. * *
Tiiey are not, however, essential to railroads, shippers or the pub¬
lic lor transporting other articles ; they cannot give greater dis¬
patch, nor malx more prompt sMlemcnts in case of loss or damage.
Fast freight lines or dispatch lines ai-e wholly unnecessary ; they
can do nothing of themselves to hasten or forward merchandise.
They are parasites to the proprietary interests of our railway
property, and however disinterestedly gotten up, cannot fail to re-
lleet upon the integrity and competency of railroad managers.—
They necessarily enhance the cost and charges between the producer
and consumer, and therefore arc an additional cost to the shi])per.
Railroads are only common carriers, and ius such should be pre¬
pared to receive and promptly dispatch, icithout the intervention
of a third party, the merchandise and ])roj)erty seeking transpor¬
tation, leaving the question of route to the election of the shipper.
The tendency of existing liest freight and dispatch lines, whether
ownetl by individuals, or a corporation made up of the managers
of railroad corn|)anies, is to build iq) powerful monopolies.
now TilK MOXOl'OI.Y IS .MAIXTAIXED.
From testimony of Alfred Gaither, Superintendent of the
Western Division of the ¡Vilams Express company :
(¿. A\'hat territon.' does your line cover and ON^er what j)nneipal
lines does it operate ?
A. Oar territory commences at Boston on the east, extending
through and including the States of Bhode Island and Connecti-
O o
cut, New York city. New Jersey, Pennsylvania, Delaware, Mary¬
land, District of Colunrbia, and Virginia, as far south as Richmond ;
thence westwardly, including Southwestern Ohio, Southern In¬
diana, Illinois and Missouri, and the State of Kentucky. We
occupy all the principal lines of travel Avithin these limits for the
purpose of our business.
Q. Is there any understanding betAveen your company and the
United States and American Express companies as to division of
territory.
A. More than twenty years ago, and at the time Avhen Adams
& Co. and the American Express company were making their first
approaches to the Western States a territorial agreement was en¬
tered into betAveen these parties, by virtue of Avhich the principal
line of railroad from Pittsburg to Crestline, thence southwardly
to Cincinnati, became the boundary betAveen them in Ohio—all
north and west thereof belonging to the American, and all south
and east thereof belonging to Adams & Co. The line of the Terra
Haute and Richmond railroad and a line draAvn west from Terra
Haute, through Vandalia and St. Louis, determined the territory
of the parties west of Ohio, and all north of that line belonging
to the American, and south thereof to Adams & Co. All the lines
of road, within the territory thus stipulated, as belonging to the
American Express company, are at this time occupied by either
that company or the United States.
HOW INTRUDERS (?) ARE TREATED.
From testimony of L. G. Hopkins, Trustee and General Mana¬
ger Merchants Union Express company, for Cincinnati, Southern
Ohio and Indiana.
Q. Have you any relations Avith the other express companies,
or arrangements for the transaction of business with them ?
A. We have not. They have refused, or, at least, some of them
have refused to do business Avith us. The United States Express
company are instructed, in circular form, by their General Super¬
intendent, Mr. Kipp, to have nothing Avhatever to do with us.—
'Jhe Adams Expi-ess Company refused to take packages for us, un-
/«■w we, would pre-pay the freiykt. Wc oiTcrcd a few packages on
the 18th of this montli, to tlie agent of the Harnden Express
company, to ship to different points in Ohio, to whieli our line
had not yet been established ; the packages were refused and re¬
turned by the express man to our office. We also, during the last
week, sent a package to the office of the Adams Express company,
for Memphis, Tenn., to which point their line extends ; they re-
fuse<l to receive it unless we would advance the freight, and the
package was returned. The agents of the different express com¬
panies have, in some cases, interfered with our business by taking
from various business houses packages designed to be shipped by
our line.
CIUCULAli AGAINST INTRUDERS.
[Private and Conlldentlal.]
U'xited States Express Company,
Buffalo, October 5th, ISGG.
to superintendents and agents of the united states
express company.
An organization, known as the Merchants Union Express com¬
pany, has commenced an expre.ss business over some of the routes
occupied by this company. Our superintendents and agents are
instructed, under no chrcumsiunccs, to have business relations with
this organization, directly or indirectly. No express matter of
of any dcscrijition is to be received from them or delivered to
them, whether paid or unpaid, consigned or unconsigned. You
are also instructed to retain the business of the United States Ex¬
press company at whatever reiluctiou in price may be neces-sary, on
all routes where the ^ferchants Union comes into competition with
this company. To accomplish this you will, from time to time,
reduce the^rates of transportation on all express matter to such a
figure a.s, in your judgment, will not only secure the business, but
will preserve the most friendly relations with the jiatrons of this
company generally. Upon routes where there is no competition
you will maintain redes, unless further instructed from this office.
It is the determination of this company to enter into active com¬
petition for basiness. The superior facilities, the long experience,
and the perfect organization of this company cannot fail to secure
34
the contiuuance of public patronage. To insure tliis, we expect
the energetic and prompt co-operatiou of our agents, and confi¬
dently relying upon their discretion and good faith, we commit
the interests of tlie company in their several localities to their
hands.
Respectfully yours,
HENRY KIP,
General Superintendent.
P. S. In all special contracts the price should be stated upon
the way-bills.
fKroiû HU-luuoncI Wülg', August 1 >tb.
THE QUESTION OF RESPONSIßlUITV.
A ca-se lias recently been deeiclecl by Jiuljre Bullard, of the Uni¬
ted States District Court, in Kentucky, which presents certain
points as to the question of the liability of exjiress companies,
which it may be well to consider in connection with the contro¬
versy upon express business, which has lately been had. The
• case grew out of a lawsuit against the Adams Express company,
for the recovery of §13,458.14, which was shijiped some five years
ago from New Orleans to Louisville, Ky. The money was in
charge of a messenger in the express car, which, with the balance
of the train, fell through a bridge, took fire, and, with its contents,
was burned.
Jjcaving out the matters decided not pertinent to our subject,
we find the judge decided that "the express company was in no
way responsible for the condition of the railroad. ' If the accident
occurred through the negligence of the railroad company in not
keejiing the bridge in proper repair, that circumstance gives no
right of action against the express company. It is not responsi¬
ble for the negligence of those who own the vehicles in which
goods are carrieil, and the roads over which they are run. All
that the company (express) is required to do, is to use reasonable
care in the selection of vehicles, and put them in charge of trustwor¬
thy jiersons. If the accident is occasioned by the negligence or
unskillfulness of any of the express company's agents, then it is
rcs|)onsible, but not otherwise."
Now, it will be observed, that the liability of the express com-
jtany only extends to the safe-keeping and delivery of matter en-
truste<l to its charge ; provided that the railroad train carries it
safely to destination. In Virginia, the law expressly undertakes
to absolve the railroad company from any manner of liability as a
common carrier, for articles expressed by other companies. Per¬
haps, in a clear case of negligence, there might be some liability of
the railraad conqiany for articles shipped by an express carrier and
lost thereby. This, however, is doubtful under our law ; butsup-
]>i)se this cannot be proved, then the shipper is without remedy.
His express receipt is of no value, and the ctmsidcration he has
paid for the transportation and custody of his pri)i)erty had as well
been thrown away.
36
It has taken five years in this case to find out that the «xprea=
company was not liable here ; and if the case is carried to the Su¬
preme Court, several years must elapse before a final hearing is
had. If the judgment of the lower courts is affirmed, and the
shipper has any right to go back upon tlie railroad company, sev¬
eral more yeai-s will then perhaps go by ere that case is reached
and a decision had.
All this delay, cost and vexation would be avoided if railroads
did their own express business. There would be no mixed liabili¬
ty, but the question of responsibility would at onup be narrowed
down to the particular road Avhere the loss occurred. It must be
remembered that the Adams and Southern Express companies are
foreign corporations, and to reach them suit must be brought in the
United States district courts ; they are not amenable to Virginia
courts, and the decision in this case will be a precedent in other
cases in kindred courts. Not so with our railroads ; they are
creatures of a Virginia Legislature, are amenable to Virginia laws,
and to the orders of Virginia courts. They could not plead the
negligence or fault of another in their behalf. Whatever of lia¬
bility there was Avould attach at once and directly to them. Which
is preferable, direct or doubtfully mixed responsibility? This
subject brings to us to inquire on Avhat terms of responsibility, in
what capacity, are these express companies doing business for our
people. Read the contract they require all shippers by them to
come under. They are by its express terms mere forwarders, de¬
nying and absolving themselves from all responsibility for any loss
or damage to matter taken by them for delivery, while being con¬
veyed by the carriers, the railways. Where then is the safety and
the recourse of shippers by these intermediaries ?
FORM OF RECEIPT GIVER.
ADAMS EXPRESS COMPANY,
Great Eastern, Western and Southern Express Forwarders,
No. 180. [Domestic Bill op Lading.] 187 .
Received of , value , for which this Company
charges , marked ,
Which it is mutually agreed is to be forwarded to our Agencv
nearest or most convenient to destination only, and there delivered
to other parties to complete the transportation.
It is part of the consideration of this contract, and it is agrreed,
that the said Exjiress Company ARE FORWARDERS ONLY,
and are not to be held liable or re.tporasible for any loss or damage to
said property while being conveyed by the. Carriers to whom the same
may he by said Express Company intrusted, or arising from the dan¬
gers of Railroads, Ocean or River Navigation, Steam, Fire in Stores,
Depots, or in Transit, Leakage, Breakage, or from any cause what¬
ever, unless, in every case, the same be proved to have occurred
from the fraud or gross negligence of said Express Company or
their servants; nor, in any event, shall the holder hereof demand
beyond the sum of Fifty Dollars, at which the article forwarded is
hereby valued, unless otherwise herein expressed, or unless spe¬
cially insured by them, and so specified in this receipt, which in¬
surance shall constitute the limit of the liability of the Adams
Express Company. And if the same is entrusted or delivered to
any odier Express Company or Agent (which said Express Company
are hereby authorized to do), such Company or person so selected
shall be regarded exclusively as the agent of the shipper or owner,
and as stich alone liable, and the Adams Express Company shall
not be, in any ettent, responsible for the negligence or non-perform¬
ance of any such Company or person, and the shi[)per and owner
hereby severally agree that all the stipulations and conditions in
this receipt contained, shall extend to and inure to the benefit of
each and every Company or person to whom the Adams Express
Company may intrust or deliver the above-described property for
transportation, and shall define and limit the liability therefor of
such other Company or person. In no event shall the Adams
Express Company be liable for any loss or damage, unless the
claim therefor shall be presented to them in writing at this office,
within thirty days after this date, in a stafetnent to which this re¬
ceipt shall be annexed. All articles of Glass or contained in Glass,
or any of a fragile nature, will be taken at Shipper's risk only,
and the shipper agrees that the company shall not be held respon¬
sible for any injury by breakage or otherwise, nor for damage to
goo<ls not pro{)erly packerl and secured for transportation. It is
further agreed, that said Company shall not, in any event, be lia¬
ble for any loss, damage or detention cause<l by the acts of God,
Civil or Military Authority, or by Rebellion, Piracy, Insurrection
38
or Riot, or the dangers incident to a time of war, or by any riotous
or any armed assemblage. If any sum of money, besides the
charge of transportation, is to be collected from the consignee on
delivery of the above described property, and the same is not paid
within thirty days from the date hereof, the shipper agrees that
this Company may return said property to him at the expiration
of that time, subject to the conditions of this receipt, and that he
will pay the charges for transportation both ways, and that the
liability of this Company for such property while in its possession
for the purpose of making such collection, shall be that of Ware¬
housemen only.
For the Company,
Freight,
THE EXPRESS QUESTION.
ADDITIONAL CORRESPONDENCE.
Lynchburg, Va., Oct. 23, 1874.
Dear Sir : After telegraphing you I received information from
Richmond which impels me to hold, for the present, the papers to
be sent you in pursuit of the negotiations commenced at Peters¬
burg, and I feel quite sure that you would from my stand-point do
exactly so.
I am sorry that some over zealous friends in Richmond have
pushed the negotiation going on between us, upon the Richmond
eonimittee, in such- way as we think does injustice to our Company
—so intended I do not say.
The negotiations begun were not prompted, as to us, by the ci-ca-
lion, course of jirocceding, or probable opinion of that committee,
and since the whole animus which brought out the committee, as it
apfwars to the public, was against our Company, you will see that it
•ean be guilty of no act that could be made to bear the idea that
we had arranged with your Company so as to suppress the report
the committee were created, and are by the public expected, to
make, whatsoever that report may be.
Yours, truly,
WM. MAHONE, President.
H. B. Peant, Esq.,
Pres'l So. Express Co., New York.
(Telcgram.l
New York, Oct. 29, 1874.
Gen. \Vm. Mahone,
Valentine, chairman Richmond Committee,
jLsks me for evidence of desire on part of Southern Expreas Com¬
pany for Express arrangements with your Company, and what
propositions have been made by me therefor. Can we not resume
business November 1st, as pro{)08ed by me?
H. B. PLANT, Presidents
2
[Telegram.)
Peteesbükg, Va., Oct. 29, 1874.
H. B. Peant, President,
New York,
Not at the rates proposed. On this
point the paper I have been obliged to hold back for a while ad¬
vises. But the current of business might be restored at any mo-
■ ment you choose to reinstate a full and free interchange of business
as between your Express and ours.
WM. MAHONE, President.
(Telegram.)
New York, Oct. 29th, 1874.
Gen. Wm. Mahone, Pres't,
I am ready to exchange business with
your Local Express, as proposed in your dispatch of this date, and
will give directions to the agents of this Company, at connecting
points, to take eöect on Monday next.
H. B^ PLANT, PresH.
(Telegram.)
Petersburg, Va., Oct. 30, 1874.
H. B. Peant,' Esq., Pres't, (fee,,
* New York,
Very well—good.
'WM. MAHONE, Pres't
Eichmoni), Oct. 27th, 1874.
Gen. Wm. Mahone,
Pres't Á., M. & 0. P. P. Co.
Dear Sir—There has been a delay on the part of our Com¬
mittee in urging the claims of the business men of Richmond for
the reopening of Express facilities with your road. This has been
due to information received by us from time to time, from the
Southern Express Company, to the effect that a correspondence
had been going on between yourself and the President of that
Company, and that interviews had been had by him with you for
the early consummation of arrangements.
If there has been any proposition offered by the Southern Ex¬
press Company, for your consideration, and looking to the Express
interest of Richmond and Southwest Virginia, or if, by correspon¬
dence or interview, anything has been «or is likely to be determined
in view of our object, you will please advise us as soon as conve¬
nient. Very respectfully,
MANN S. VALENTINE,
Chairman, &c.
3
Petersburg, 30th Oct., 1874.
De.\r Sir: The nej^otiation which was commenced between
the Southern Express Company and our Company has been sus¬
pended.
It contemplatetl a restoration of Express facilities with Rich¬
mond, and I will add, that no arrangement could of can be made,
witii our Company, that did or does not fully and well cover that
point. Yours, truly,
WM. MAHONE, PresX
Mann S. Valentine,
Chairman, Ac., Richmond, Va.
(Telefrram.)
Richmond, Va., Oct 31, 1874.
(jEN. Wm. >rAHONE, PreVi,
Mr. Plant, President Southern Express ■
Company, advises me, under date of yesterday, that arrangements
for an interchange of business had been made with you. We wish
your confirmation by telegraph.
MANN S. VALENTINE, CAm'n.*
(Teleirram.)
Petersburg, Va., Nov. 2, 1874.
Mann S. Valentine, Esq ,
Chm'n, Á'C; Richmond, Va.
As to the fact merely vour information is correct.
WM. MAHONE, President.
Petersburg, Va., Nov. —, 1874.
De.ar Sir : Referring to your letter to me, dated 22d July, and
considering that yourcommittee had itsorigin, as isgenerally under¬
stood, and will hardly be denied, in a belief that tiieeity of Rich¬
mond had been deprived of Express laeilities in connection with
the A., M. & O. R. R., by the inconsiderate, contrary, if not un¬
warrantable action of that Railroad Ccmpany—based, it is true,
upon ex parte, if not upon unworthy and irresponsible statements;
and in view of the fact that it is well known to the public, that
yourcommittee have been fora long time actively and earnestly
engaged in an investigation—a course of full discovery—which
contemplated, at least, a justification or a refutation of such ; if,
indeed, it was not thir to presume, that the committee would go
well to the bottom of the w hole matter, they had under such cir¬
cumstances and in a sense voluntarily undertaken to investigate
and give to the public, not only the tacts elicited, but that impar¬
tial judgme nt and independent opinion, which such investigation
4
and facts should warrant—not only that even justice ini^ht be
done, but that every interest concerned in the matter of Express
transportation in Virginia might profit, as well in the present as
by protecjion in the future, from such just conclusions in that re¬
spect as they, the committee, should reach—allow me, most re-
spectfuîî|i^ to ask, if the committee have abandoned the subject,
and have now no report to make ?
I am, dear sir, vour ob't serv't,
V-, WM. MAIÍONE, Pres'i.
Mann S. Vai.entine,
Chairman, Richmond, Va.
Richmond, Dec. llth, 1874.
Gev. Wm. Ma hone,
' Rres'i A., M. & 0. R. R. Co.
Dear Sie : Yours of November—-having been received /ind
considered by us, we would state that wo do not feel at liberty,
without the express direction of the body of business men whom
we.represent, to make any publication of our proeecilings, or of
the correspondence had by us as a committee. J^ersonaliy, and as
a committee, we are induced to apprehend that from a publication
there might result ditfcrcuces of opinion and controver.sies which
we hope are now happily eettlcd and removed.
We take pleasure, however, in saying for your satisfaction, that,
we have not found any warrantable ground in your past proceed¬
ings, as understood by us, for such aspers'ions and ungenerous ru¬
mors as you allege to have existed in connection witii tiie Expre.ss
facilities, and we believe that you have been actuated by no un-
triendiy or illiberal feeling towards the public or the community
of Richmond in this matter.
MANN S. N'ALENTINE, Chmin.
JAMES A. SEDDON,
SAM'L W. PRICE,
R. E. BLANKENSHIP,
A. 1j. ELLETT.
THOMAS POTTS,
C. D. HILL,
J. L. BACON,
GARRET F. WATSON,
WM. H. PALMER.
The foregoing correspondence touching the Express Question, is
submitted in connection with the pamphlet on the subject.
Comment forborne.