The Development of Rates of Postage Part 11

For each copy monthly (_a_) For newspapers delivered less frequently than once a week 2 pf.

(_b_) " " once a week 4 pf.

(_c_) " " twice a week 6 pf.

(_d_) " " thrice a week 8 pf.

(_e_) " " four times a week 10 pf.

(_f_) " " five times a week 12 pf.

(_g_) " " six or seven times a week 14 pf.

(_h_) " " eight times a week 16 pf.

(_i_) " " nine times a week 18 pf.

(_k_) " " ten times weekly 20 pf.

(_l_) " " eleven times weekly 22 pf.

(_m_) " " twelve to fourteen times weekly 24 pf.

(_n_) " " fifteen times weekly 26 pf.

(_o_) " " sixteen times weekly 28 pf.

(_p_) " " seventeen times weekly 30 pf.

(_q_) " " eighteen times weekly 32 pf.

(_r_) For official gazettes 2 pf.[397]

The delivery fees are collected in advance for the complete subscription period. In 1910 the amount collected for delivery in towns was 19,604,234 M., and for delivery in the country districts 5,770,896 M.

NOTE ON SPECIAL SUPPLEMENTS.

Special advertis.e.m.e.nt supplements were permitted to be sent by post together with newspapers by the order of 30th September 1871. These supplements in form or character must not be similar to the main newspaper. They must not be printed at the same office, and no charge might be made for their insertion. A special supplement must not exceed one sheet and must not be bound. The newspapers in which they were inserted must bear a notification to that effect in a prominent position. All copies of the supplement must be submitted to the Post Office and the postage paid in advance. They were then stamped at the office of posting, and if not posted within three days the postage might be forfeited. The rate for each supplement was 1/12 sgr.[398]

The number of such supplements was not as great as was antic.i.p.ated, the chief reason for which was that the postage was still too high and the regulations too complicated.

In 1873 the rate was reduced to 1/2 pf. for each copy, with a reduction of 50 per cent. when as many as 7,200 copies were posted at the same time. The obligation to submit all copies to the Post Office for stamping, and the requirement to post them within three days thereof, were at the same time removed, and the simple obligation to give previous notice of posting subst.i.tuted. The obligation to indicate on the newspapers that a special supplement was enclosed was also withdrawn.

In 1874 the regulations were further relaxed. Special supplements were allowed to be printed at the same office as the newspaper, and charges for the advertis.e.m.e.nt might be made.[399] The limit of size was extended to two sheets, at which it remains.[400]

In 1900 (20th March) the rate was changed to 1/4 pf. for each 25 grammes weight for each supplement. The number of special supplements in 1910 was 214 millions.

III

THE RATE FOR PARCELS

PARCEL POST IN ENGLAND

The London Penny Post established by William Dockwra in 1680 was in some degree a parcel post, but throughout the country no sort of parcel post service existed until the introduction of the regular system in 1883.

The weight limit for packets sent by Dockwra's post was at first fixed at 1 pound, but it was afterwards extended.[401] The Penny Post was employed to such an extent for the transmission of bulky packets and parcels that delivery was r.e.t.a.r.ded, and it was found necessary to reduce the number of such parcels. The privilege of sending parcels even of 1 pound weight was accordingly withdrawn in 1765.[402] The letter rate charged by the ounce was sufficiently high to restrict effectively the number of packets of large size entrusted to the post.[403] In their Report of 1797 on the Post Office, the Select Committee on Finance recommended a reduced rate for the heavier packets and small parcels, in order to encourage their transmission by post, but the suggestion met with no favour.[404] For many years afterwards the official view was that it was desirable to confine the post to light packages, and that any increase in the number of heavy packets would disorganize the service, which existed to provide for the expeditious transmission of light letters. Its arrangements had been made with this object, and to load it with a large number of heavy packets would be subjecting it to an unfair strain, under which it would inevitably break down.[405] So long as the delivery of parcels is provided for by foot (or cycle) post, it is impossible to raise indefinitely the limit of weight for individual parcels.

The establishment of the Book Post in 1847 was, of course, a step in the direction of a general Parcel Post. The Post Office having by this means become the carrier of small parcels containing goods of a certain cla.s.s, the demand for a post for parcels of any kind of goods was inevitable.

In the 'sixties there was considerable agitation for extended parcel post facilities. The familiar argument was advanced that the Post Office had already an establishment for the collection and delivery of letters in some twelve thousand districts, and that this establishment might be used, to the great advantage of the public, to afford any additional services within its capacity; that, as all the main establishment charges were paid--rent, salaries, etc.--an additional service could be rendered without adding proportionately to the expenses. It was urged also that the sample post rate was too high and was fenced by troublesome regulations; that the book rate was also too high; that there was no reason why the book trade should be favoured; that in respect to the ma.s.s of the people the charges were so high as to impose on the transmission of small articles the same sort of prohibition that was placed on the transmission of letters under the old postal system; that a comprehensive system could not be carried out by the railways until the railways would co-operate; that even if the railways did co-operate they had not means at their disposal equal to those of the Post Office; that a parcel post system was already in operation in several continental countries; and that, in fine, by the establishment of a similar service in this country an immense boon would be conferred on the public.

The Post Office was, however, not favourably disposed towards the idea.

It was proposed to meet the agitation to some extent by reducing the rates of postage on the heavier letters, and thus to carry small parcels under the guise of letters. This proposal was not, however, carried through. In 1871 the rates for letters of medium weight were reduced, but those on letters above 12 ounces were retained at a height which could only be regarded as prohibitive.[406]

The public agitation in favour of a parcel post service continued; and when in 1878 a large number of the railway companies announced that they proposed to convey small parcels over any part of their lines at low uniform rates, attention was called to the fact in the public Press, and suggestions made that the Post Office should co-operate by undertaking the delivery of the parcels. The official view was now somewhat more favourable to the idea. An international parcel post service had been established in 1880 in connection with the Universal Postal Union, and this fact had strengthened public opinion in favour of a parcel post service in this country. It was recognized that such a service would afford undoubted advantages to the public, especially in rural districts. It would provide facilities which private enterprise had not seen fit to undertake. It would provide a service reaching to all parts of the country, for which there was no other equally suitable machinery.

The Post Office could not, however, in establis.h.i.+ng a parcel post service, act as freely as in its arrangements for the conduct of the letter service. The conveyance of the parcels from place to place was likely to prove a serious undertaking, and for such conveyance the Post Office was dependent on the railway companies. In the case of letter mails the cost for conveyance is a very minor part of the total expenses of the service, but when negotiations with the railway companies were begun it was soon found that such would not be the case with parcel mails. The companies, regarding the parcel traffic as to a large extent their own proper business,[407] were not disposed to agree to easy terms, and there was the further difficulty that numerous companies had to be satisfied, since it was desired to establish the system under an agreement which should include all the princ.i.p.al companies.[408] From the first, the question of the remuneration of the companies was approached from a point of view totally different from that in which their remuneration for the ordinary letter mails was regarded. Letter mails are conveyed as ent.i.ties, and the company have never been concerned with the number of letters enclosed in the mail or the amount of postage paid. They arrange for the conveyance of a given number of mails, and are remunerated accordingly. But with parcels the question was approached as one for the determination of just remuneration of the companies for conveying, not mails containing parcels, but single parcels. And the question to be settled was what proportion of the postage paid on the individual parcels should go to the companies. In view of the heavy expenses of every description which would be incurred and of the large number of heavy letters which would be transferred to the parcel post, causing a considerable reduction of revenue, the Post Office declined to accept less than half the total receipts, and after some demur the companies agreed. The rates of postage proposed were two in number--for parcels not exceeding 2 pounds in weight, 6d.; for parcels not exceeding 4 pounds in weight, 1s.

Difficulties arose subsequently as to the amount of freedom of action to be left to the Postmaster-General and the duration of the agreement. The first proposal was for an agreement in perpetuity, and the draft agreement gave the companies what was called a "partners.h.i.+p interest" in the parcel post business. It was, however, regarded as essential that the parcel post business should be no less under the control of the Postmaster-General than the existing letter post, and that, on the expiration of any agreement made with the railway companies, the statutes relating to the conveyance of letter mails by railway should apply to parcel mails.

After the failure of the first scheme, negotiations with the railway companies were suspended, but the public agitation for a parcel post was daily gathering strength, and in February 1882 the Postmaster-General again approached the companies. The new proposals were somewhat different from those originally made. A scale with four rates (3d. for 1 pound, rising to 1s. for 7 pounds) was now suggested by the Post Office, largely in deference to the strong disposition of the railway companies in favour of an increased number of rates. The low initial rate of 3d.

for 1 pound was now proposed on the ground that a large proportion of the business to be done would be between the large towns and the rural districts. For the development of such business a low initial rate was essential; and as such parcels would not be likely to be to any large extent railway borne, the Post Office would obtain almost the whole of the proceeds of the postage. It was, moreover, now taken into reckoning that a considerable increase in the number of letters would result, since numerous communications relative to parcels posted would pa.s.s, and the revenue would thus benefit indirectly. The letter service would benefit, too, in other ways: it would be relieved of heavy packages; and the existence of a parcel post service would justify the provision of more efficient services in rural districts. The rates proposed were in general very much higher than those at the time existing in Germany, France, Switzerland, and Belgium, and they were estimated to yield a profit.

In the further negotiations serious difficulty was encountered on two points only: (1) the proportion of postage to be paid to the companies, and (2) the length of time for which the agreement should be made. The earlier agreement had been for an equal division between the Post Office and the railway companies of the postage paid on all parcels. It was now decided that payment could only be made in respect of parcels actually conveyed by railway. The companies thereupon asked a higher proportion.

They antic.i.p.ated that parcel post traffic would be largely long-distance traffic, involving in many cases transfers on the journey; and although they expected to retain a good deal of the short-distance traffic, they could only achieve this by reducing their rates generally, especially the rates for small parcels. After some higgling, they agreed under protest to accept 55 per cent. of the postage on all such parcels as should be conveyed by railway. They also agreed to the limitation of the duration of the bargain, and the term was fixed at twenty-one years.

The agreement was embodied in the Post Office (Parcels) Act of 1882.[409] The companies parties to the arrangement undertook the service of conveying the post parcels from the vehicles of the Postmaster-General at the despatching railway station to the vehicles of the Postmaster-General at the station of destination--that is to say, they undertook all handling of parcel mails on railway stations and transfer to and from trains and from train to train where necessary--in consideration of payment of 55 per cent. of the postage paid on all parcels conveyed by railway for the whole or part of their journey, the Post Office being required to keep a record of the amount of postage paid on every such parcel. The remuneration was to be paid to the Railway Clearing Committee in London, by whom it would be distributed between the various companies. The agreement was to continue for twenty-one years, and thereafter until terminated by either party. The Postmaster-General retained the power of revising the rates of postage, but in the event of such revision the companies might claim revision of the terms of their remuneration (even during the first twenty-one years). In any case, on the termination of the agreement, the statutes governing the conditions under which ordinary mails are conveyed by railway, and the determination of the remuneration of railway companies in respect of such conveyance, were to apply equally to the conveyance of parcel mails by railway.

The Postmaster-General has twice exercised his right of revising the rates of postage, and in each case the rates were lowered. The companies have not exercised their right to ask for a revision of the terms of their remuneration, and the provisions of the Act therefore continue in operation. In the first complete year of the service (1884-5) the number of parcels conveyed was some 23 millions. The increase in the traffic has been large and constant. In 1912-13 the total number of parcels exceeded 130 millions.

The service affords a great public convenience, and the simplicity of its rates is an undoubted boon. The uniform rate has, however, proved unsatisfactory in some respects. At all points at which the traffic would be profitable, the Post Office is open to the compet.i.tion of private enterprise; but for that part of the traffic for which the uniform rate must inevitably be unprofitable (unless it be fixed so high as to be exorbitant for short-distance and average-distance traffic) there will naturally be no compet.i.tion. The number of local, or short-distance, parcels is consequently small, and the number of parcels sent for long distances, to remote places, is comparatively large. No great use is, however, made of the post for the transmission of parcels of agricultural produce from rural districts. There is a moderate traffic in b.u.t.ter and eggs from Ireland to England, and in cream from the West of England. Proposals for the introduction of a specially low rate for agricultural products have frequently been considered, but there are obvious objections to the establishment of a special rate for a special cla.s.s of traffic. Moreover, for parcels from country districts the present uniform rate is often ludicrously low. The cost of preparing and packing each separate small consignment for transmission by post is, however, considerable, and only the affluent are able to indulge in that method of obtaining food supplies.[410] The exceptional character of the Post Office traffic in parcels, and the small degree in which the rates of charge measure the utility of the service of transportation which they cover, are well ill.u.s.trated by the statistics of the traffic, which indicate that the total numbers are unaffected by fluctuations in general trade, and that the reductions of the rates which have been made since the establishment of the service have had no appreciable effect on the volume of traffic.[411] The actual rates for the heavier parcels are probably more profitable than the rates for light parcels, since the principle of degression is not much recognized in the scale of rates.

This view is confirmed by the fact that the post is little used for heavy parcels, the average weight of a post parcel being no more than 28 pounds. It is, as a matter of fact, not improbable that the parcel post service as a whole is conducted at heavy loss.[412]

NOTE.--As a war measure the rates were increased on 1st November 1915 by 1d. at each step in the scale, and are now as follow:--

Parcels not exceeding 1 lb 4d.

Exceeding 1 lb., not exceeding 2 lb. 5d.

" 2 " " 3 " 6d.

" 3 " " 5 " 7d.

" 5 " " 7 " 8d.

" 7 " " 8 " 9d.

" 8 " " 9 " 10d.

" 9 " " 10 " 11d.

" 10 " " 11 " 1s.

PARCEL POST IN THE UNITED STATES OF AMERICA

Several causes operated to prevent the early establishment in the United States of a parcel post system. The two factors of extent of territory and sparsity of population, which had from the first so greatly influenced the policy of the Government towards the Post Office, were of much greater importance in regard to a parcel post system. The weight of the individual letter is very small, and as the cost of transportation depends in most cases entirely on weight, the system of uniform rates which had been introduced in England had not been found impossible of adoption in the United States. But with parcels, cost of transportation is an appreciable item for every parcel, and in a country of vast distances there must be an appreciable variation in the actual cost for each parcel. Consequently, any uniform rate which would render the service self-supporting must be measurably above the rate which would suffice for local and short-distance traffic, and measurably below the rate which would be necessary for long-distance traffic. Private agencies would therefore cut such a rate and absorb all the short-distance traffic, while the long-distance traffic would be left to the Post Office, and would be carried at a loss. This had been found to be the case with second-cla.s.s matter, where weight is an important factor, and also with the fourth-cla.s.s matter. The establishment of a parcel post system, therefore, would involve a reconsideration of the fundamental principles on which the rates of postage were in general based.

The creation, in 1863, of a third cla.s.s of miscellaneous mail matter[413] was virtually the establishment of a limited parcel post.

The rate, for third-cla.s.s matter, 2 cents for each 4 ounces or fraction thereof, was increased in 1879 to 1 cent an ounce. These rates were comparatively high; and as the limit of weight was 4 pounds, the traffic naturally never a.s.sumed large proportions. With the establishment in 1880 of an international parcel post in which the United States partic.i.p.ated, although having no real internal parcel post, it was inevitable that the question of establis.h.i.+ng a system equal in scope to those of other countries should arise. For forty years there was a demand, becoming more general and insistent, for the establishment of such a general parcel post.

Active official support was first given to the proposals for a parcel post in 1890 and 1891 by Postmaster-General Wanamaker, who explained that although the demand for such a system was widespread, the greatest pressure came from "interior places," which were, in fact, really most in need of it, because they had no facilities for obtaining small packages of merchandise from the towns.[414] Opposition to any sort of parcel post came then, as always, from the express companies, who, although not able or not desirous of affording a service to all parts, were much concerned at the prospect of losing traffic. Mr. Wanamaker proposed to propitiate them by transferring to them a considerable amount of traffic deemed by him to belong properly to the express companies, viz., traffic carried by the Post Office for the other Executive departments free of charge, under "penalty frank,"[415] and comprising many packages of considerable weight and bulk. Mr. Wanamaker also desired to put a stop to the transmission, as second-cla.s.s matter, of periodicals which were really ordinary books, by transferring such traffic to the express companies. Although in favour of a full parcel post system, and recognizing that there was a strong desire in the country for the boon, Mr. Wanamaker was not prepared to advocate its immediate establishment. He thought other reforms should take precedence; such as free-delivery extension, postal telegraph, postal telephone, and 1 cent postage on land and sea, all of which, except the extension of free delivery, are still waiting adoption.

A number of postmasters criticized the suggestions of the Postmaster-General in 1890 regarding parcel post, but most of them had, by 1891, expressed themselves in favour of a full parcel post system, and according to Mr. Wanamaker the remainder were "probably interested express agents." The situation was in some respects unsatisfactory. It was a common practice for business firms to contract with express companies to carry large quant.i.ties of small packages at a rate per package just below the rate of postage. The express companies took such of the packages as they thought fit to handle, and left the Post Office to carry the remainder, all long-distance traffic, and unprofitable both to the express companies and to the Post Office. But the companies were secured by their profit in the short distances. Naturally, therefore, they offered strenuous opposition to the establishment of a parcel post.[416]