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RE: (erielack) REA Express

That's interesting, this is the first I've seen of UPS being a "contract"
carrier as opposed to a common carrier. As a contract carrier, UPS was
presumably less regulated, and the fact that this allowed it to skim the
cream helps explain why it succeeded at REA's expense. Can anyone explain
more about the contract carrier regulatory structure? I presume carriers
would still have to obtain certificates to operate in each state.

Paul B

 

Date: Fri, 7 Jun 2013 00:19:37 -0400

From: "j mcea" <squid57_@_gmail.com>

Subject: RE: (erielack) REA Express

 

I worked for the NY Auditor of Disbursements of REA on E. 38th St., NYC,

1963-64 after the Navy as computer unit supervisor (a LARGE 16k, 4 tape

1401.) UPS was still not a common carrier, but some form of "contract

carrier" as it could only carry packages of 'member' companies. Only REA was

a common carrier allowed/required to carry any shipment tendered at their

offices or picked up by arrangement (including the potentially profitable

Air Express.) In this loft building at 38th and 1st Ave. was a manufacturer

of hats and other apparel. Each afternoon, UPS and REA trucks would be there

to pick up their shipments - UPS got the high value, high profit shipments,

REA got mainly --- hats, which were light weight, high cube - and low

profit. I was told UPS didn't want the hats, REA as a common carrier had to

take them at the ICC determined rates. It was still many years before UPS

became a true common carrier with "UPS stores" and drop boxes, by late

1960's as UPS began changing, an individual shipper had to drop his shipment

off at a UPS location. REA, until it went bust with the 1977 truck

deregulation, had to stop at your house to pick up a shipment when notified.

And the statement told me by my boss Tom Layburn that in 1964 UPS NYC

Teamsters signed a drivers' contract mandating a minimum daily

piece-handling rate that was 3-4 times the REA drivers daily average - as

much as I loved the connection to the railroads, I looked for a better

computer job elsewhere.

Joel M.



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