After the conference at Chicago this Department has de-
voted considerable time to working up data showing the effect of
these rates on Missouri traffic, and it is found that the new basis,
if adopted in Missouri, will cause material reduction on packagres
weighing less than 50 pounds, about an even break between 50 and
80 pounds, and advances on packages weighing from 80 pounds up.
To show the effect of this basis, the rate is figured from St.
Louis to every town served by the United States Express Com-
pany in Missouri, and a theory was used that 21 packages would
be shipped from St. Louis to each of these towns weighing 1
pound to 20 pounds respectively and 100 pounds. The investigsr-
tions in the past have indicated that about 70% of all packages
shipped will weigh 20 pounds and less, hence this basis was used.
Under the present rates existing in Missouri, 20 packages weigh-
ing 1 pound to 20 pounds respectively from St. Louis to each of
the towns on the United States Express Company doing business
of $100100 per month or more, would net the Express Company
$520.40 ; while under the new basis it would net the Express Com-
pany $351.26, or a reduction of $169.14 — approximately 30%.
On 20 packages weighing 100 pounds each the charges would in-
crease from $63.45 to $69.10, amounting to $5.65, or approxi-
mately 8%. If 70% of the shipments weigh less than 20 pounds,
and only 6% of the shipments weigh 100 pounds or more, it natur-
ally follows that this basis applied to Missouri will result in a con-
siderable saving.
