EXHIBIT A AMERICAN ELECTRIC RAILWAY ASSOCIATION. COMMITTEE ON COMPENSATION FOR CARRYING UNITED STATES MAIL. To the Committee on Post Offices and Post Roads, U. S. House of Representatives, Hon. John Gentlemen: The American Electric Railway Association, whose membership comprises the electric railways throughout the United States, has for its object the advancement of the art and the greater efficiency of the service which its members are called upon to render the public, and at the same time to foster the industry (with which the individual citizen comes in daily contact) as legitimate business enterprise, entitled to earn a fair return for the service it renders. With this in view, and in response to the general complaint of its member companies as to the inadequacy of the rates paid by the government for the transportation of the United States mail on electric roads, the Association created a Committee on Compensation for Carrying United States Mail, and charged it with the duty of securing data from which to formulate rates that would be fair to the government, and at the same time compensatory to the member companies. This the Committee has done, and in recommending the rates has had in view that it is the duty of the member companies to perform this service at as low a rate as is consistent with the cost of same plus a reasonable profit. RECOMMENDATIONS. The Executive Committee of the Association approved the recommendation of the Committee, and instructed it to present the matter to the governmental authorities and endeavor to secure the enactment of such legislation as would authorize the postal authorities to put in effect the rates recommended for the transportation of United States mai! on electric city and interurban lines, which are as follows: CLOSED POUCH CITY OR SUBURBAN SERVICE. From 1 to 3 pouches (inclusive), maximum weight 50 pounds per pouch, carried on passenger cars: For 2,000 miles or less... For 2,000 miles and up to 3,500 miles. $150 per annum. Over 3.500 miles for each consignment moving 5 miles or less, 5 cents per mile; each mile in excess of 5 miles, 3 cents per mile. All pouches in a consignment in excess of three, I cent per mile per pouch additional. Deliveries to and from the car to be made by the Post Office Department. CLOSED POUCH INTERURBAN SERVICE. Maximum compensation paid steam railroads for like service. RAILWAY POST OFFICE SERVICE. For independent cars or compartments in cars: City service: 1 cents per linear foot of interior length per car mile. Interurban service: Maximum compensation paid steam railroads for like service. Minimum mileage either city or interurban service to be 30,000 miles per year per car required in service. PRESENT RATES. The present rates for the transportation of United States mail on electric and cable lines are under authority of an Act of Congress approved March 3, 1901, modified by an Act of Congress approved May 27th, 1908, and by similar acts each year to the present time, as follows: FOR CLOSED POUCH SERVICE. 2,000 miles or less... $150 per annum. 175 per annum. 200 per annum. 250 per annum. As modified May 27, 1908, the Postmaster-General in cases where the quantity of mail is large and the number of exchange points numercus may, in his discretion, authorize payment for Closed Pouch Service at the rate per mile not to exceed one-third above the rate per mile now paid for closed pouch service. FOR ELECTRIC AND CABLE RAILWAY POSTAL CAR SERVICE. For mail cars and compartment carrying the mail not to exceed one cent per linear foot per car mile traveled. The present rate for Closed Pouch Service is on the per mile basis without regard to distance or the quantity of mail matter to be transported, and where there are a number of deliveries to be made along a particular route the compensation is reckoned, not on the mileage of each delivery, but only on the mileage over which the car or train travels. For illustration, suppose a route is five miles in length and two intermediate deliveries are to be made; five pouches at the first, four at the second and two at the third or end of the route. The compensation would, at three cents per mile, be fifteen cents, the same as if the two terminal pouches only had been carried. This works a great hardship on the carriers, and the hardship increases year by year as the communities grow and the intermediate deliveries become more numerous. It may appear to some that the cost of performing Closed Pouch Service on electric lines is small if any. This is a mistake, as it takes time to take on and put off the pouches; it is often necessary en route from post office to destination to transfer the pouches from one car to another; the pouches occupy valuable space that could otherwise be occupied by passengers, express or baggage, and the presence of pouches increases the liability to accidents. CONCLUSION. A summary of the whole must lead to the conclusion that, by reason of carrying the United States mail, the car hours necessary to maintain the service on the line is increased, space is occupied, and the hazard of operation is increased. Interurban electric lines at the present time reach nearly every city or town in all sections of the country, and could provide means for rapid and frequent mail deliveries. On these lines trains are usually operated every hour, and, in some instances, every half hour, and could advantageously be used for the carriage of mail matter. If compensatory rates were established these lines would be justified in further carrying the mails, thus giving better and more satisfactory service to the people of these communities than could otherwise possibly be given. The maximum rate of one cent per mile per linear foot of inside length now paid for Independent Mail Car Service on electric roads is grossly inadequate, and is less than it costs the carriers to maintain the service. The transportation of mail by electric roads may be termed a special business, which forms a very small proportion of its entire business, but it requires special supervision and entails added responsibility. The Postal authorities are exacting as to the service, requiring promptness of despatch and delivery. Considering all the conditions, the electric railways, if they consult their best interests, must get increased compensation or discontinue the business of carrying the mails. It may be asked why the electric roads undertook to perform the service at rates which were not remunerative. The answer is: 1st. Many roads undertook to carry United States mail at unremunerative rates with the mistaken idea that it would help them in cases of labor trouble to keep their cars running. 2d. Operating expenses formerly were less than they are at present, but the carriers have continued from year to year in the hope that the Government would recognize the value of the services rendered and increase the rates to an equitable basis. The electric carriers now realize that the business is unprofitable and undesirable at the present rates, and ask that the Government equalize the existing rates paid for the different classes of mail transportation so that the electric lines can consistently obtain a reasonable proportion of the business on a fairly remunerative basis. The report of the Second Assistant Postmaster-General for the year ending June 30, 1911, shows the total expenditure for steam railroad transportation is $50.910,261.68 and covers a mileage of 449,654,863.96, or at the rate of 11.32 cents per mile. The total expenditure for electric and cable car service was $688,952.20 and covered a mileage of 11,525,267.47, or at the rate of 5.91 cents per mile. For wagon service the expenditure was $1,643.332.70 and covered a mileage of 5.177,816.92, or at the rate of 31.73 cents per mile. This shows that while the mileage of the electric car service was over twice as great as the wagon service, the expense was only 42 per cent. as much; or, in other words, the wagon service cost over five times as much per mile as the electric car service. The comparison with steam railroad service shows a cost per mile twice as great as electric car service. The electric railways want to perform the service of handling the mails, but most earnestly submit that for the service they should be paid a remunerative rate, and the rates herein suggested are not more. The electric line is the most economical method of handling the mail; the substitution of screen or motor wagons would cost four or five times as much, and at certain seasons of the year many of the remote suburbs could not be reached by this service. In conclusion we respectfully urge that such legislation be recommended as will authorize the Postmaster-General to make effective the rates herein suggested for service performed by the electric railways in carrying the United States mail. Respectfully submitted, T. H. TurwILER, Chairman, H. A. NICHOLL, ALEXANDER R. PIPER, Sub-Committee of American Electric Railway EXHIBIT B WASHINGTON, D. C., May 14, 1912. H. C. DONECKER, Secretary, American Electric Railway Association, 29 West 39th Street.. New York, N. Y.: DEAR SIR:- Referring to the Chicago meeting of this Committee held March 12, 1912 at which rates were formulated for carrying United States mail, and a sub-committee consisting of the undersigned appointed to present the finding of the Committee to the Executive Committee of the Association for its approval and authority to present the matter of compensation for carrying United States mail to the governmental authorities and endeavor to secure such legislation as would make the recommended rates effective. Such authority was duly received from the Executive Committee and in further pursuance of the matter the sub-committee met in Washington, D. C., May 13th and formulated a statement containing the request for the adoption of the rates recommended at the Chicago meeting. Said statement is addressed to the Committee on Post Offices and Post Roads of the House of Representatives and was presented to that body May 14, 1912, two copies being herewith inclosed. By appointment a special meeting of the Committee on Post Offices and Post Roads was called by its Chairman, Judge Jno. A. Moon, of Tennessee. Our Committee requests that this statement be immediately printed for distribution and that a sufficient number of copies be forwarded to each member company to enable it to place same in the hands of its respective representatives in Congress. It is further requested that a letter be also addressed to each member company soliciting their aid and influence in this matter. The Committee on Post Offices and Post Roads informed us that the matter of compensation paid electric roads for carrying United States mail had never before been presented to them, and that they desired further information, as to the present cost of the service as compared with that of other carriers, and also what increase in appropriation would be necessary if the rates requested for electric service were adopted. In order to obtain this information we would ask that you call upon the member companies for the following data, and insist on a reply from every company. (1) Character of mail service--whether closed, - pouch-independent car, or both. (2) The number of route or routes as designated by P. O. Department. We would also ask that you furnish us the following data: (1) Total miles electric roads in the United States (in single track equivalent). A. City lines. B. Interurban lines. (2) Capitalization of each class. Kindly give the matter your early and careful attention and greatly oblig. Yours truly, T. H. TUTWILER, Chairman, A. R. PIPER, H. A. NICHOLL, Sub-Committee of Committee on Compensation for Currying United States Mail. EXHIBIT C AMERICAN ELECTRIC RAILWAY ASSOCIATION, 29 West 39th Street, COMMITTEE ON COMPENSATION FOR CARRYING UNITED STATES MAIL. May 31, 1912. Data Sheet No. 93. (a) City State. (b) Interurban.. (b) Interurban. 3. Character of mail service, whether closed-pouch, independent car, or both? 4. The number of your route or routes as designated by P. O. Department? NOTICE. This information blank is sent you in duplicate form. Please fill in the information asked for at your earliest convenience and return one copy to American Electric Railway Association, 29 West 39th St., New York, N. Y. Discussion of the Report of the Committee on Compensation for Carrying United States Mail MR. TUTWILER:- I want to say, in this connection, that there was some sentiment on our Committee that we should join with the steam railroads in an effort to get an increased compensation but the members who attended the meetings did not so feel, and I think myself we would make a mistake in trying to enlist any co-operation from the steam railroads, because I believe we have a better chance at Washington than they have. There being so many member companies in different communities to bring influence to bear, through their representatives at Washington, I believe that we can by concerted effort secure favorable legislation. (On motion, duly seconded, the report was accepted.) MR. TINGLEY:- There is one feature of the Postal service I would like to call to the attention of the members, and that is the new Parcels Post law. To those of us who have to carry closed pouch mail in the vestibules of our cars, it is a serious matter. I think, in some cases it will be a physical impossibility to continue the service. MR. MCMILLAN-I would like to ask the gentleman if he considers the parcels mail supplies, such as stamps, stamped envelopes, and things of that kind can be sent on the railways. under the closed pouch service regulation. MR. TUTWILER:- I know that we do it. MR. MCMILLAN:- I think the Pacific Electric Railway handles as much of this matter as any other company in the country. While I have been on the Committee I have been a long way removed from the other members and I have been unable to keep in close touch with them. I know that on a number of electric lines they have tried to distribute supplies by this service. Trans-continental trains are delayed by washouts, snow storms and so on, and sometimes we would receive half a car load of post office supplies. We objected to handling this and the Government told us that we did not have to distribute it because closed-box service could be regarded as closed-pouch mail. The gentleman who read the report said there was some idea that co-operation should be had with the steam roads. That was probably taken from a suggestion I made in a communication to the Chairman of the Committee, that the steam roads were working on the same thing. The bill passed by Congress puts all railroads on the same basis exactly, and I did not believe it would be well for the street railways to disturb that condition of affairs, because we would be happy if we could get the rates paid the steam railroads. The rate we are getting now is the rate for closed-pouch service when it was carried by horse cars, and the post office department have never had it brought to their attention, that in communities such as our roads run through, it is practically demanded that the mail be sent out by electric railroads, whether there are half a dozen cars or one car a day. The result is that the small towns have now deserted the railroads in favor of the electric lines, because they can get their mail more promptly now through the electric lines and I think that we should be paid more because we give better service. In the United States, as a general proposition, the people are willing to pay for what they get, and I think they should be willing to pay more for this service; but I do not think that we could be benefited much as long as that last bill passed by Congress puts all railroads on the same level. |