The Development of Rates of Postage Part 18

(_f_) Mixed packages of (_c_), (_d_), and (_e_)-- Not exceeding 250 grammes 5 pf.

250 grammes to 500 " 10 pf.

500 " 1,000 " 15 pf.

These rates applied throughout the Imperial postal territory, including Berlin, which thus for the first time obtained the advantage of local rates; and in 1902 they were extended to all places which had a post office for only part of the year, such as small watering-places, summer resorts, and beauty spots.[571]

The result of the reduced rates was not satisfactory financially. It was not, of course, possible to calculate with any exactness the actual cost of the service performed by the Post Office in respect of local traffic; but such estimates as the administration were able to make tended to show that the cost exceeded the revenue, and that the local business was therefore conducted at some loss.[572] Consequently, when in 1906 Imperial requirements made it necessary to obtain an increased revenue from the Post Office, the administration placed the burden on the local traffic, although not without some opposition in the Reichstag. On the 1st July 1906 the rates for local traffic, with the exception of the rate for local letters, were made the same as the general rates for transmission throughout the Imperial postal territory.

The rate for letters remained as formerly, 5 pf. for letters not exceeding 250 grammes in weight.[573]

VI

INTERNATIONAL RATES

(I) INTERNATIONAL LETTER POST

The adoption in numerous countries of the principle of uniformity of rate for inland postal traffic, and the enormous simplification of the system of rates and of their practical administration which it achieved, led naturally to an endeavour to effect a like simplification of the rates for postal traffic exchanged between the various countries. The rates in operation varied enormously, not only as between different countries, but frequently in respect of letters pa.s.sing between the same two countries.[574]

The arrangements for the exchange of such traffic between different countries had been conducted under conventions and agreements entered into by the countries immediately concerned, and the rates to be charged were prescribed by these conventions or agreements. Foreign rates were often built up by the addition of a rate for the transmission abroad to the ordinary rate chargeable for the inland transmission. The fact that numerous rates were chargeable for one and the same letter in respect of its transmission within the same country thus naturally made the rates charged for transmission abroad likewise numerous. In many cases there was an additional variation in the rate of postage between two countries according as one or other route was followed. And not only were the international rates of postage high and complicated. The methods employed for accounting between the countries respectively concerned in regard to the proceeds of postage on international letters were equally complicated and burdensome.

In 1850 the necessity for some simplification of the arrangements for the interchange of correspondence led to the formation of the Austro-German Postal Union by Prussia and Austria. The chief feature of the arrangement was the adoption of a common rate of postage for the whole territory of the Union, moderate in amount, and based on a small number of zones of distances. The advantages resulting from the Union were soon apparent. Other German States joined, and within a short time the question of extending it to foreign countries was mooted. At a Conference held in Berlin in 1851, a general European Postal Union was adumbrated.

The first definite suggestion for the general re-organization of international postal traffic on a common basis came, however, from America. In 1863, Mr. Blair, Postmaster-General of the United States, in a note to the postal administrations of the world, suggested the a.s.sembling of a Congress representative of all nations for the discussion of the subject. The proposal was favourably received by fifteen administrations,[575] representing nine-tenths of the commerce and nineteen-twentieths of the correspondence of the world. The representatives of these administrations (with the exception of Ecuador) met at Paris in May 1863.

The Conference was not empowered to enter into any definite arrangement for the amelioration of the system of international postal traffic. Its function was simply to discuss and proclaim general principles applicable to the conduct of the traffic, with a view to their ultimate adoption by the nations of the world. The discussions centred on the three fundamental questions of uniformity of weights, uniformity of rate, and simplification of accounting.[576] Thirty-one articles of agreement were adopted.[577] These articles recommended, _inter alia_, the adoption for ordinary letters of a unit of weight and a progression of weight of 15 grammes; and for corrected proofs, samples, and doc.u.ments not in the nature of a letter, a unit and progression of 40 grammes. The Conference was convinced that transit charges were often an invincible obstacle to the establishment of a really advantageous international system, and recommended that the transit rate for each country should never exceed half the postage reckoned at the inland rate of the country traversed, and that for small countries it should be even less. For sea transit the Conference recommended that in no case should the charge against an administration in respect of such transport be greater than the actual charge made on the country of destination by the s.h.i.+pping agency by whom the mails were conveyed.

Although its conclusions were without the sanction of authority, the Conference was nevertheless of great a.s.sistance to the development of an international system. It brought into prominence the obstacles in the way of international postal intercourse, and the difficulties which must be removed before a common system could be founded. And it formulated general principles which might with advantage be observed in the making of fresh agreements between individual countries, and might serve as a basis for a common agreement. Its conclusions were, as a matter of fact, so used in numerous instances.

Towards the end of 1868 Dr. von Stephan, of the postal administration of the North German Union, published in the official journal of the Union a definite project for a postal union between all civilized nations, and proposed a discussion of the project at a universal Congress. The proposal was taken up by the administration of the North German Union.

The diplomatic arrangements for calling a Conference were, however, interrupted by the Franco-German War of 1870. After the conclusion of peace, the proposal was again taken up, and the Swiss Government undertook the task of inviting the administrations of the chief countries to send representatives to a Congress at Berne. The invitation was readily accepted, and the Congress met in 1874.

The proposal submitted to the Conference was that the Union should cover the following categories of postal traffic:--

(1) Letters.

(2) Postcards.

(3) Newspapers and other printed matter.

(4) Samples.

(5) Commercial papers.

Each contracting State should fix its own international rates, under the limitation that for letters the rate should not exceed 4d., or 40 centimes; and for newspapers or other printed matter, for samples or commercial papers, should not be less than 1d., or 10 centimes. There should be no division of postage, but each State should retain the postage which it collected. Each State should give liberty of transit, and transit charges should be abolished, except in the case of extraordinary charges or services.[578]

The proposals which gave rise to most discussion were those for the establishment of a uniform rate, and for the gratuitous transit of mails across the territory of intermediate countries. The vast number of rates actually existing was made an argument in favour of the uniform rate; and a low rate was recommended on the ground that it was well known that, although low rates imposed a temporary monetary loss, they were in a broad view profitable to the finances of the State.[579] It was urged that as all rates were already tending to equality, the Congress, by establis.h.i.+ng uniformity, would only be advancing by a few years an existing tendency. The principle of uniformity of rate and of weight was adopted unanimously, the rate of charge being fixed at 25 centimes, and the unit of weight, and progression in the scale of weight, at 15 grammes. The rate of charge, 25 centimes (with the reservations[580]), was arrived at by consideration of the case of the most unfavourably situated country as regards conditions of transit, viz. a case in which there would be five intermediate countries, and consequently five transit rates. As most, if not all, of the countries represented had already adopted inland penny postage, this rate, a.s.suming 10 centimes (or 1d.) to be a reasonable charge for the inland service at both ends, left 15 centimes (1-1/2d.) to cover the cost of transmission from country of origin to country of destination; and there was in addition the optional margin up to 32 centimes which might be taken advantage of, if a charge of 25 centimes was thought by any administration to be too little. A proviso was added that for all sea transits exceeding 300 nautical miles a surtax not exceeding half the general rate of the Union might be added to the postage charge, whether for letters, samples, printed matter, or commercial papers.

A reduced rate for commercial papers, samples of merchandise, newspapers, books, pamphlets, catalogues, etc., was adopted without discussion, the delegates no doubt basing their action on the existence of similar reduced rates in many countries. The minimum rate for such packets was fixed at 7 centimes, and the unit of weight and the progression of weight at 50 grammes. The maximum weight for samples was fixed at 250 grammes, and that for other articles at 1,000 grammes. A proposal to increase the weight for samples was opposed by Dr. von Stephan on the ground that it would cause practical inconvenience in the post offices.

M. Radoikovitch, the Serbian delegate, proposed a modification of the progression of rate. He suggested that the packets should be divided into two categories--those not exceeding 300 grammes, and those over 300 grammes in weight. For the lighter packets he proposed a progression of 50 grammes, and for the heavier packets a greater progression. For the sake of simplicity it was considered preferable to retain the single progression, and the proposal, which met with no support, was withdrawn.[581] All packets (samples, etc.) sent at the lower rate must be sent under band or in open envelopes, or made up in such a way as to admit of their being easily examined.[582]

The proposal for gratuity of transit was advanced with a view to simplification of the administration of the Union. Its adoption would have made all countries independent, so far as expenses and accounting were concerned, of intermediate countries, and would have a.s.sisted the adoption of a low rate of postage. It was, however, resolutely opposed by those countries which, owing to their geographical situation and the means of communication which they controlled, were called upon to serve as intermediaries to a special degree. The case of Belgium was of particular importance. It naturally resulted from her situation that she was called upon to perform for other countries a transit business much greater than that performed by other countries for Belgium. The net revenue accruing to the Belgian administration from this source was very considerable.[583] France and Italy were in a somewhat similar position, mainly owing to the transmission of the mails between England and India by the overland route. France rejected entirely the principle of gratuitous transit.

It was feared that if an administration derived no benefit from transit traffic it might be led to discourage it, to the detriment of general facilities for the transmission of mails, and the Congress arrived at the conclusion that some method of specially remunerating all countries for transit services ought to be devised. A simple reservation as regards special expenses caused by transit traffic was objected to on the ground that in most cases the international traffic was forwarded by the ordinary means and no special expense was caused--the real causes of Post Office expenses being the services of despatch and delivery.[584]

Indeed, it was contended on this ground that the transit of international mails could not be regarded as a service rendered.

Agreement was reached on most of the points raised by the proposals, and a Convention const.i.tuting an International Postal Union, under the t.i.tle "L'Union generale des Postes,"[585] was signed on the 9th October 1874, to become operative on the 1st July 1875. The chief provisions of the Convention in regard to the rates of postage were as follows:--

(1) The rate of postage for the Union was fixed--

(_a_) At 25 centimes for single letters, with liberty for each country, as might be necessary on account of its monetary system or for other reasons, to fix a higher or lower rate, provided that such rate was not greater than 32 centimes, and not less than 20 centimes.

The unit of weight for a single letter was fixed at 15 grammes, and the scale of progression was by steps of 15 grammes.

(_b_) For postcards, half the rate for letters.

(_c_) For printed matter, samples, and commercial papers the unit rate was fixed at 7 centimes, with liberty for each country to fix a rate not exceeding 11 centimes or less than 5 centimes.

The unit weight was fixed at 50 grammes, and the progression of weight was by steps of 50 grammes. The maximum limit of weight for samples was fixed at 250 grammes, and for printed matter and commercial papers at 1,000 grammes.[586]

(2) In cases where letters were forwarded by sea for distances over 300 miles, a surtax not exceeding half the general Union rate of prepaid postage might be added to the normal rate.

(3) The proposal as to the division of postage was accepted, with slight amplification.

(4) Transit payments, that is, rates of payment by one administration to another administration in respect of the transmission of closed mails over the territory of the second administration by means which it provided, were fixed at 2 fr. per kilogramme for mails containing letters and postcards, and 25 centimes per kilogramme for mails containing other articles. The rates were increased to 4 fr. and to 50 centimes, respectively, when the distance of transmission exceeded 750 kilometres on the territory of one administration. In the case of sea transits exceeding 300 nautical miles, the despatching country was required to pay to the administration which provided the service, the expenses of the transportation, not exceeding 6 fr. 50 per kilogramme for letters and 50 centimes per kilogramme for other articles.

In November 1875 the Indian Post Office administration applied for admission to the Union. A further Conference at Berne was thereupon called to consider this request. Representatives of a large majority of the signatories of the Treaty of 1874 attended the Conference, and other questions were raised. France, Spain, and Holland asked for the admission of their respective colonies; Brazil submitted a declaration of adhesion; and Great Britain intimated that Canada and Newfoundland would submit applications. The original Union had been limited to the European countries, Turkey (including Turkey-in-Asia), Russia-in-Asia, Northern Africa, Egypt, and the United States of America; and these further developments widened the problem before the Congress. Instead of merely considering the question of admitting India, it was called upon to face the possible extension of the Union to the remotest parts of the globe.

The question of transit rates, particularly of transit rates by sea, became therefore one of very great importance and difficulty, since it was necessary to fix such rates as would permit of the maintenance of that uniformity and lowness of the rates of postage which were the fundamental bases of the Union. On this point there were prolonged and difficult discussions. The French delegates submitted a proposal for the application of the treaty of Berne to all quarters of the globe, with a uniform transit rate of 6 fr. 50 per kilogramme for letters and 50 centimes for printed matter, etc.[587]

The countries which maintained the more important and costly maritime services were not, however, prepared to submit to the loss of revenue which the adoption of the proposed transit rates would entail.[588]

Germany submitted a scheme for cla.s.sifying all countries of the world outside the Union into four groups with four graduated maritime transit rates of 6 fr. 50, 25 fr., 40 fr. and 60 fr. per kilogramme, respectively, for letters, and 50 centimes, 1 fr., 1 fr., and 2 fr. per kilogramme for printed matter, etc.,[589] a proposal which was opposed as contrary to the fundamental principle of uniformity, and calculated to give rise to difficulties and complications. Moreover, the zones, being reckoned as from Europe, were not applicable as between the distant countries themselves, e.g. between Mexico and the West Indies.[590]

The Conference was able to arrive at an agreement only as regards the admission of British India and the French Colonies in Asia, Africa, America and the Pacific. The entry of these territories was fixed for the 1st July 1876, and the general international rates of postage and transit rates, fixed under the Convention of 1874, were made applicable to the new territories of the Union, except that for transit by sea for distances exceeding 300 nautical miles a surtax equal to the full postage rates (32 centimes and 11 centimes) was authorized, instead of a surtax of half rates fixed under the original treaty; and the transit rates in respect of mails for or from these territories for distances of more than 300 nautical miles were made 25 fr. per kilogramme for letters and postcards, and 1 fr. per kilogramme for printed matter, samples, and commercial papers.

The later Congresses have added numerous services to those provided under the original scheme, such as, e.g., reply-paid postcards. For the most part, however, these additional services are of minor importance, and concern only a small part of the international traffic,[591] the bulk of which still pa.s.ses under the main divisions established at the first Congress.

In connection with the rates applied to those cla.s.ses of the traffic there are three chief points of importance--the initial charge, the scale of weights, and the transit rates. The question of modifying the international letter rate, which had remained unchanged since the foundation of the Union, was raised at the Was.h.i.+ngton Congress in 1897.

The Austrian delegate proposed, not indeed that the initial charge should be reduced below 25 centimes, but that the maximum weight allowed for the single letter should be increased from 15 grammes to 20 grammes.

The British and French delegates opposed the proposal.[592] The French delegates said it would involve a loss of more than a million francs to their administration. In some cases, e.g., Italy, the raising of the limit would have had the effect of rendering the international service cheaper than the internal service. In the end the proposal was rejected.

The subject of transit rates, which had not been seriously considered since the first Congress, was also raised at the Congress of Was.h.i.+ngton (1897), two proposals in regard to it, by Germany and by Austria-Hungary respectively, being under discussion. In the original project of the Union, gratuitous transit had been proposed, with the reservation that remuneration should be paid in cases of special expenses occasioned to an intermediary by the transit of foreign mails. The new German proposal was for the abolition of all transit payments except in those cases where, according to the statistics of the international service, a payment of more than 50,000 fr. a year was due, and in those cases the actual amount due to be reduced by 25 per cent., or at least by 50,000 fr.; to make the amount payable only by those countries whose share exceeded 10,000 fr.; and the reduction of the maritime transit rate from 15 fr. to 10 fr. This proposal was avowedly a step towards completely gratuitous territorial transit. The Austrian proposal was for gratuitous transit for all correspondence sent _a decouvert_, and a reduction of the transit rates for closed mails. Gratuitous transit, to which, as already stated, the German proposal admittedly tended, was advocated by the delegates of the South American countries, but was opposed by several other countries, especially by Belgium, France, and Italy. As at the first Congress, the delegates of the latter countries called attention to the great expense to which they were put in providing transport for transit mails, and rejected altogether the idea of gratuitous transit. In face of this opposition, the proposals could not be carried in their entirety. The transit rates were, however, considerably reduced, and simplifications in the method of ascertaining the amounts payable in respect of transit were introduced. The land rates were reduced from 2 fr. per kilogramme for letters and postcards and 25 centimes per kilogramme for other articles, to 1 fr. 90 and to 23-3/4 centimes for the years 1899 and 1900, to 1 fr. 80 and to 22-1/2 centimes for the years 1901 and 1902, and to 1 fr. 70 and to 21-1/4 centimes for and after 1903. The maritime transit rates were similarly reduced. Countries whose expenses for the transit of foreign mails exceeded the receipts, and those whose combined receipts and expenses for that purpose did not exceed 5,000 fr. per year, were excused all payment under this head.

At the next Congress, held at Rome in 1906, the question of reducing the letter rate and transit rates was again discussed. Proposals to raise the limit of weight for single letters from 15 grammes to 20 grammes were submitted by several States. It was pointed out that, although in general sufficient, the limit of 15 grammes was often exceeded, and frequently the weight of letters required to be tested, causing inconvenience both to the public and the postal administrations. The German delegate expressed the opinion that the public were antic.i.p.ating some concession, and that as reduction of the initial rate of 25 centimes was impossible, an increased limit of weight would no doubt be appreciated.[593] The British delegates pointed out that the equivalent of 20 grammes in British weight was 2/3 or 3/4 ounce, a unit which would be highly inconvenient and could not be adopted. They would have accepted a limit of 30 grammes; but in many countries the existing limit of weight for the initial letter rate in the inland service was 20 grammes, and the introduction of a higher initial weight in the international service might lead to difficulties in the case of those administrations which desired to retain the lower limit in the inland service. On these grounds they inclined to the maintenance of the _status quo_. The delegates of the United States, Italy, and Turkey supported the British view. The Italian delegates pointed out that the result would in effect be to compel those countries in which the limit was 15 grammes to introduce modifications into their internal service--a position which it was obviously undesirable for the Congress to take up.

j.a.pan advocated the maintenance of the existing limit, because the effect of raising it would be to render further reduction of transit rates still more difficult. In the end the proposal was adopted by thirteen votes against twelve.[594] Countries using the avoirdupois system were to regard 1 ounce as the initial weight limit.