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diff --git a/old/52996-0.txt b/old/52996-0.txt deleted file mode 100644 index 2c67e28..0000000 --- a/old/52996-0.txt +++ /dev/null @@ -1,6850 +0,0 @@ -Project Gutenberg's Selected Articles on the Parcels Post, by Various - -This eBook is for the use of anyone anywhere in the United States and most -other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms of -the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - -Title: Selected Articles on the Parcels Post - Debaters' Handbook Series - -Author: Various - -Editor: Edith M. Phelps - -Release Date: September 6, 2016 [EBook #52996] - -Language: English - -Character set encoding: UTF-8 - -*** START OF THIS PROJECT GUTENBERG EBOOK SELECTED ARTICLES--PARCELS POST *** - - - - -Produced by MWS, Adrian Mastronardi, The Philatelic Digital -Library Project at http://www.tpdlp.net and the Online -Distributed Proofreading Team at http://www.pgdp.net (This -file was produced from images generously made available -by The Internet Archive/American Libraries.) - - - - - -Transcriber’s Note: obvious printers’ errors have been corrected but -the spelling, hyphenation etc. in this book is generally inconsistent, -as you might expect from a collection of articles by different authors: -the editor did not impose a uniform style. - - - - - -_DEBATERS’ HAND BOOK SERIES_ - -PARCELS POST - - - - - DEBATERS’ - HANDBOOK SERIES - - Enlargement of the United States Navy (3d ed. rev. and enl.) - - Direct Primaries (3d ed. rev. and enl.) - - Capital Punishment - - Commission Plan of Municipal Government (2d ed. rev. and enl.) - - Election of United States Senators - - Income Tax (2d ed. rev. and enl.) - - Initiative and Referendum (2d ed. rev. and enl.) - - Central Bank of the United States - - Woman Suffrage - - Municipal Ownership - - Child Labor - - Open versus Closed Shop - - Employment of Women - - Federal Control of Interstate Corporations - - Parcels Post - - _Other titles in preparation_ - - _Each volume, one dollar net_ - - - - - _Debaters’ Handbook Series_ - - SELECTED ARTICLES - ON THE - PARCELS POST - - COMPILED BY - EDITH M. PHELPS - - MINNEAPOLIS - THE H. W. WILSON COMPANY - 1911 - - - - -EXPLANATORY NOTE - - -The plan of this volume is very similar to that of the others of the -series to which it belongs. It contains a brief, a bibliography, and -reprints of articles containing the various arguments for and against -the parcels post; also, information in regard to the present status of -the parcels post in this and other countries. For the convenience of -the reader, the articles have been arranged in three main divisions: -the General, Affirmative, and Negative Discussions. The bibliography -is similarly divided. It is believed that debaters and others wishing -material on this subject will find this book both convenient and -helpful. - -September, 1911. - - - - -CONTENTS - - - BRIEF ix - - BIBLIOGRAPHY - - Bibliographies xiii - - General References xiii - - Affirmative References xvi - - Negative References xix - - INTRODUCTION 1 - - GENERAL DISCUSSION - - Carr, D. M. Up to Members of Congress 5 - - Meyer, George von L. Data Relative to Proposed Extension of - Parcels Post 9 - - Cowles, James L. Our Postal Express 16 - - Walker, Ernest G. From the Boston Herald. Data Relative to - Proposed Extension of Parcels Post 18 - - Bennet, William S. Post-Office, Our Mutual Express Company 27 - - Lewis, David J. System of Postal Express 32 - - Barth, Dr. Letter. Hearings before the Committee on the - Post-Office and Post Roads 42 - - German Parcels Post. Monthly Consular and Trade Reports 45 - - AFFIRMATIVE DISCUSSION - - Sulzer, William. Our Postal Express 49 - - Rider, Fremont. Parcels Post and the Retailer. World’s Work 52 - - Mondell, F. W. Star Routes and Rural Parcels Post. - Congressional Record 58 - - Bennet, William S. General Deficiency Bill. Congressional - Record 62 - - Walker, John B. Who Will Be Benefited by a Parcels Post? - Cosmopolitan 72 - - Stickley, Gustav. More Efficient Postal Service. Craftsman 78 - - Parcels Post Once More. Independent 80 - - Sulzer, William. People Demand a General Parcels Post 82 - - Let Us Have a Parcels Post. Hampton’s 87 - - Curtis, Isabel G. Housekeeping by Parcels Post. Good - Housekeeping 92 - - Miller, George E. Parcels Post. Housekeeper 94 - - NEGATIVE DISCUSSION - - Maxwell, George H. Perils of Parcels Post Extension 99 - - Clark, Allan W. Objections to the Parcels Post. Independent 106 - - Burrows, Charles W. Further Thoughts on Parcels Post 108 - - Burrows, Charles W. One Cent Letter Postage, Second - Class Mail Matter, and Parcels Post 110 - - Ordway, John A. Parcels Post 115 - - Merritt, Albert N. Shall the Scope of Governmental Functions - Be Enlarged so as to Include the Express Business? - Journal of Political Economy 122 - - Parcels Post in England. Parcels Post Problem 129 - - Spofford, C. W. A. B. C. of Parcels Post 130 - - French, F. E. Parcels Post 131 - - Bogardus, W. P. Why Parcels Post Is Not a Good Thing - for This Country 135 - - Haugen, Gilbert N. Parcels Post and Postal Savings Banks 138 - - Smith, S. C. Parcels Post 140 - - - - -BRIEF - - -Resolved, That the Federal Government should establish a Parcels Post. - - -INTRODUCTION - -I. It has been claimed that - - A. Our postal rates on third and fourth class matter are - exorbitant as compared with those in foreign countries. - - B. Foreign parcels post systems afford many conveniences which - we do not have. - -II. An extension of our present parcels post system is demanded. - - A. Bills providing for it have been presented to Congress. - - B. Postmasters-General Wanamaker, Meyer, and others have tried - to secure it. - - C. It has been recommended in presidential messages, in - conventions, by postal officials and by the people. - -III. The plan which has received most favorable attention is that of -Postmaster-General Meyer, providing for - - A. A general parcels post at the rate of 12c a pound, with a - limit in weight of eleven pounds. - - B. A rural parcels post at the rate of 5c for the first pound, - 2c for each additional pound, limit of weight eleven pounds. - - -AFFIRMATIVE - -The Affirmative is in favor of the Parcels Post, for - -I. The United States government would benefit financially. - - A. The receipts from the increased volume of business would - more than repay the loss from the reduction in rate. - - B. Increased receipts from rural routes would be clear profit. - - 1. Rural routes are already equipped for this service. - - C. If the post with foreign countries pays now, the government - ought to make a profit from a similar domestic service. - -II. The general public would benefit by this service. - - A. Present transportation charges would be reduced. - - 1. The express companies would have to reduce rates. - - B. Greater convenience in sending merchandise would result. - - 1. The express companies would have to improve service. - - C. The cost of living would be reduced. - -III. Rural communities would be benefited. - - A. The local dealer would profit. - - 1. He could do a larger business with less expense, and - with increased facilities for delivery. - - 2. He could meet the competition of mail-order houses and - city merchants. - - B. Country towns and villages would have cheap transportation - which is so essential for favorable growth. - - C. The parcels post would turn the tide of civilization from - the cities back to the land. - - D. The farmer would be benefitted. - - 1. He would save time and expense in driving to market. - - 2. He could have more of the comforts and conveniences of - city life. - - 3. He would have better market facilities for his products. - -IV. A parcels post would not be class legislation. - - A. Mail-order houses and city department stores would not - benefit unduly. - - B. Express companies would not be seriously injured. - - 1. Their present rates are excessive. - -V. The parcels post has been successful in other countries and is -practicable. - - A. It has paid - - 1. Financially. - - 2. In comfort and convenience. - - B. In nearly every country the rates are lower than in the - United States and the limit in weight is much higher. - - -NEGATIVE - -The Negative is opposed to the Parcels Post, for - -I. The present postal deficit would be increased rather than diminished. - - A. The cost of the increased service would not be covered by - the increased traffic. - - 1. The government cannot compete successfully with the - express companies. - - 2. There would be a continual demand for more and better - equipment. - - 3. Government undertakings are always more costly than - those under private management. - - B. The inconsistencies between our present foreign and domestic - rates are not as great as has been claimed. - -II. The general public would not be benefitted by it. - - A. It would have little influence on express rates. - - B. It would increase the centralization of wealth, population, - and manufactures. - - C. The demand for it has been artificially created. - -III. Rural communities would be injured by it. - - A. Retailers and local dealers would suffer. - - 1. Orders would be sent direct to manufacturing centers. - - 2. Mail-order houses would obtain most of the trade. - - B. Rural towns and villages would be injured. - - 1. Trade would be drawn to the larger cities and population - would follow. - - C. The farmer would not be benefitted. - - 1. He would not use it nearly as much as has been claimed. - - 2. The market for his products would be largely destroyed - by the removal of population to large cities. - - 3. The rural parcels post alone would be merely an entering - wedge. - -IV. Legislation for a parcels post would be discriminating and -unnecessary. - - A. Dealers, wholesalers and jobbers in heavy merchandise could - not use it. - - B. Mail-order houses and department stores would benefit at the - expense of the retailers and consumers. - - C. The Interstate Commerce Commission already has the power to - correct excessive express rates. - - D. The rural post alone would increase the business of the - express companies. - -V. That the parcels post is in operation in foreign countries at very -low rates and high weight-limits is no argument for its extension in -the United States. - - A. Conditions vary so widely. - - 1. Distances are greater in the United States. - - 2. The population is more scattered. - - 3. The railroads are privately owned, and the government - must pay heavy rates for service. - - B. It is claimed that the system is run at a loss in England - and Germany. - - - - -BIBLIOGRAPHY - - -An asterisk (*) preceding a reference indicates that the entire article -or a part of it has been reprinted in this volume. - - -BIBLIOGRAPHIES - -Kansas. State University. Extension Division. Bulletin. Vol. XI. No. -10. July, 1910. Kansas High School Debating League, Announcements, -1910-1911. pp. 26-8. - -United States. Library of Congress--Division of Bibliography. Select -List of References on the Parcels Post. 5p. Typewritten. 15c. Supt. of -Doc. - -Virginia. Dep’t of Public Instruction, State University, and the -Co-Operative Education Ass’n. Bulletin. Ser. I. No. 3. March, 1911. -Parcels Post. pp. 18-21. - -Wisconsin. State University. Extension Division. Bulletin. Ser. No. -204: Extension Ser. No. 18. March, 1908. Parcels Post. pa. 5c. - - -GENERAL REFERENCES - - -_Books, Pamphlets and Documents_ - -Bennet, William S. Freight, Passenger and Intelligence Post: The Public -Need. 14p. pa. Govt. Ptg. Office. - - Address William S. Bennet, Representative, Washington, D. C. - -*Bennet, William S. Post-Office, Our Mutual Express Company: Speech in -the House of Representatives, May 13, 1909. 8p. pa. Govt. Ptg. Office. - - Reprinted from the Congressional Record. 44: 5174-6. Ag. 5, 09. - [Address William S. Bennet, Representative, Washington, D. C.] - -*Carr, D. M. Up to Members of Congress. 8p. pa. March, 1908. - - Address D. M. Carr, Editor “The Winning West,” Omaha, Nebr. - -Congressional Record. 32: Appendix. 208-10. F. 21, ’99. United States -Parcels Post. James L. Cowles. - - Printed in connection with a speech by Senator Butler, in the - Senate, F. 20-21, ’99. - -Congressional Record. 43: 1866-8. F. 4, ’09. Parcels Post System. - -Cowles, James L. General Freight and Passenger Post: Practical Solution -of the Railroad Problem. G. P. Putnam’s Sons, New York. 1898. - -*Cowles, James L. Our Postal Express. 2p. Postal Progress League. - - Address the Postal Progress League, 125 E. 23rd St., New York - City. - -*Lewis, David J. System of Postal Express to Include Both Country -Merchants and Farmers: Speech in the House of Representatives, June 8, -1911. 32p. pa. - - Reprinted from the Hearings before Sub-Committee No. 4, of - the Committee on the Post-Office and Post-Roads, June, 1911. - pp. 10-38, 48-52. [Address David J. Lewis, Representative, - Washington, D. C.] - -Monthly Consular and Trade Reports. No. 326. p. 37. N. ’07. Parcels -Post from United States. Govt. Ptg. Office. - -*Monthly Consular and Trade Reports. No. 329. pp. 104-6. F. ’08. German -Parcels Post. Govt. Ptg. Office. - -Monthly Consular and Trade Reports. No. 334. p. 192. Jl. ’08. Parcels -Post from United States. Govt. Ptg. Office. - -Monthly Consular and Trade Reports. No. 335: 179-80. Ag. ’08. Parcels -Post. - -Monthly Consular and Trade Reports. No. 357. Je. ’10. pp. 109-11. -Parcels Post. Germany and Australia. Govt. Ptg. Office. - -Postal Progress. 1907-1911. Post Office: The Minister of Peace. 4p. -Postal Progress League. - - Address the Postal Progress League, 125 E. 23d St., New York - City. - -*United States. Congress, House of Representatives. Parcels Post: -Hearings before the Committee on the Postoffice and Post Roads. April -20-29, 1910, 322p. pa. 25c. Supt. of Doc. - - Recommended for purchase. - -United States. Congress. House of Representatives. Parcels Post: -Hearings before Sub-Committee No. 4 of the Committee on the Postoffice -and Post Roads, June, 1911, 390p. pa. Supt. of Doc. - - Recommended for purchase. - -*United States. Post-Office Dep’t. Data Relative to Proposed Extension -of Parcel Post. (60th Cong., 1st Sess., Senate. Doc. 366.) 15p. ’08. -Govt. Ptg. Office. - - Reprinted from the Congressional Record. 42: 3041-5. Mr. 6, ’08. - -World Almanac, 1911. Postal Information, pp. 99-105. - - A summary of the present governmental regulations respecting - foreign and domestic mails. - - -_Magazine Articles_ - -Arena. 34: 113-9. Ag. ’05. European Parcels-Post. J. Henniker Heaton. - - Reprinted in condensed form in the Review of Reviews. 32: - 345-6. S. ’05. - -Bulletin. Pan American Union. 32: 365-8. F. ’11. Parcels Post -Convention between the United States and Haiti. - - Contains the text of the convention adopted by Haiti and the - United States in 1910. - -Catholic World. 81: 353-61. Je. ’05. Parcel-Post System of Germany. J. -C. Monaghan. - -Chautauquan. 64: 7-8. S. ’11. Parcels Post Next. - -Cosmopolitan. 35: 3-10. My. ’03. Governmental Parcel-Post in Great -Britain. J. Henniker Heaton. - -Cosmopolitan. 36: 217*-19*. Ap. ’04. Postal Parcels Delivery One Cent a -Pound. John B. Walker. - -Dun’s Review. 14: 12-4. F. 24, ’06. Parcels-Post System of Germany. J. -C. Monaghan. - - Reprinted in the Hearings before Subcommittee No. 4 of - the Committee on the Post-Office and Post-Roads, House of - Representatives, June, 1911. pp. 70-3. - -Nineteenth Century. 25: 894-901. Je. ’89. Agricultural Parcels Post. -Henry P. Dunster. - -Nineteenth Century. 54: 981-4. D. ’03. Cash on Delivery, or Shopping by -Post. J. Henniker Heaton. - - Arguments for and against the extension of the parcels post - system in England to admit the cash on delivery feature. - -North American. 187: 330-6. Mr. ’08. Parcels Post. George von L. Meyer. - -Outlook. 72: 147-8. S. 20, ’02. Cheap Parcels Post from England. - -Outlook. 79: 148. Ja. 14, ’05. Comparison of Postal Rates. James L. -Cowles. - -Postal Progress. Vol. I. No. 6. pp. 1-4. Ag. ’07. Common -One-Cent-a-Pound Postal Rate. James L. Cowles. - - Clippings from American Industries, June 15, 1907, and Iron - Age, July 4, 1907, form a part of the article. - -Scientific American. 98: 455. Je. 27, ’08. Reduction of Foreign Parcel -Postal Rates. - -Scientific American Supplement. 48: 20008. D. 2, ’99. Parcels Post -Exchanges with Germany. - -Survey. 25: 121-2. O. 22, ’10. Parcels Post Made in Germany. - - -AFFIRMATIVE REFERENCES - - -_Pamphlets and Documents_ - -Congressional Record. 42: 3081-4. Mr. 7, ’08. Post-Office Appropriation -Bill: Speech in the House of Representatives, March 3, 1908. James M. -Griggs. - -Congressional Record. 42: 6567-8. My. 15, ’08. Special Parcels Post. -George von L. Meyer. - -Congressional Record. 45: 2958-9. Mr. 8, ’10. Amendment for the Parcels -Post. Mr. Hardwick. - -Congressional Record. 45: 3223-4. Mr. 14, ’10. Extension of Parcels -Post: Letter to John M. Stahl. George von L. Meyer. - -Congressional Record. 45: 9310-4. Je. 24. ’10. General Deficiency Bill: -Speech in the House of Representatives, June 21, 1910. William S. -Bennet. - - Reprinted in the Congressional Record. 45: Appendix 382-6. - -Congressional Record. 46: 1243-5. Ja. 21, ’11. Proposed Parcels Post: -Speech in the House of Representatives, January 17, 1911. Ralph W. Moss. - -Congressional Record. 46: 1273-6. Ja. 21, ’11. Limited Parcels Post. - -Congressional Record. 46: 1443-5. Ja. 25, ’11. Why the People Favor a -General Parcels Post: Speech in the House of Representatives, January -17, 1911. William Sulzer. - -Congressional Record. 46: 1881. F. 2, ’11. Resolution Adopted by -Nebraska Farmer’s Congress in Favor of Parcels Post. - -*Congressional Record. 46: 1941-7. F. 3, ’11. Star Routes and Rural -Parcels Post: Speech in the House of Representatives, January 19, 1911. -F. W. Mondell. - -Congressional Record. 46: 2773-4. F. 9, ’11. Parcels Post: Speech in -the House of Representatives. Ralph W. Moss. - - Consists mostly of quotations from the Price Current and other - trade journals. - -Meyer, George von L. Address at the Banquet of the New England -Postmasters, October 12, 1907. 14p. pa. Govt. Ptg. Office. - -*Sulzer, William. Our Postal Express: Speech in the House of -Representatives, June 9, 1910. 8p. pa. Govt. Ptg. Office. - - Reprinted from the Congressional Record. 45: 8287-97. Je. 15, - ’10. [Address William Sulzer, Representative, Washington, D. C.] - -*Sulzer, William. People Demand a General Parcels Post: Speech in the -House of Representatives, February 6, 1911. 15p. pa. Govt. Ptg. Office. - - Reprinted from the Congressional Record. 46: 2094-7. F. 6, ’11. - [Apply to William Sulzer, Representative, Washington, D. C.] - -United States. Post Office Dep’t. Annual Report of the Postmaster -General. 1907. pp. 9-11. Extension of the Parcel Post. 10c. Supt. of -Doc. - - -_Magazine Articles_ - -Arena. 23: 103-6. Ja. ’00. Needed Postal Reform. Louis E. Guillow. - -Arena. 35: 212-3. F. ’06. England’s Magnificent Postal-Service Record. - -Arena. 37: 308-9. Mr. ’07. Postal Service in Japan. - -Cosmopolitan. 36: 379*-81*. F. ’04. Aid Which the Post Office -Department Might Render to Commerce. John B. Walker. - -*Cosmopolitan. 36: 497*-9*. Mr. ’04. Who Will Be Benefited by a Parcels -Post? John B. Walker. - -*Craftsman. 14: 592-4. S. ’08. More Efficient Postal Service. Gustav -Stickley. - -*Good Housekeeping. 53: 2-10. Jl. ’11. Housekeeping by Parcels Post. -Isabel G. Curtis. - -*Hampton’s. 26: 261-4. F. ’11. Let Us Have a Parcels Post. - -*Housekeeper. 31: 11-35. Ag. ’08. Parcels Post. George E. Miller. - -Independent. 53: 2607-8. O. 31, ’01. Parcels Post. - -Independent. 56: 306-9. F. 11, ’04. Post Office, Our Mutual -Transportation Company. James L. Cowles. - -Independent. 63: 1185-7. N. 14, ’07. Parcels Post. - -Independent. 67: 986-7. O. 28, ’09. It Must Come. - -*Independent. 70: 105-7. Ja. 12, ’11. Parcels Post Once More. - -Nation. 90: 345. Ap. 7, ’10. For a Parcels-Post. Reuben G. Thwaites. - -Nineteenth Century. 53: 253-63. F. ’03. Agricultural Parcel Post. J. -Henniker Heaton. - -Outlook. 90: 801-2. D. 12, ’08. Postal Deficit and a Rural Parcel Post. - -Outlook. 96: 567. N. 12, ’10. Express Monopoly versus a Parcels Post. - -Postal Progress. Vol. I. No. 4. pp. 1-2. Ap. 1, ’07. Foreign Parcels -Post Necessary. - -Scientific American. 102: 274. Ap. 2, ’10. Need of an Improved Parcels -Post. - -World’s Work. 21: 13978-86. F. ’11. Post-Office: An Obstructive -Monopoly. Don G. Seitz. - -*World’s Work. 21: 14248-51. Ap. ’11. Parcels Post and the Retailer. -Fremont Rider. - - -NEGATIVE REFERENCES - - -_Pamphlets and Documents_ - -*Bogardus, W. P. Why Parcels Post Is Not a Good Thing for This Country. -8p. pa. Iowa Retail Hardware Ass’n. - - Address A. R. Sale, Iowa Retail Hardware Association, Mason - City, Iowa. - -*Burrows, Charles W. Further Thoughts on Parcels Post: With an -Examination of Postmaster-General Meyer’s Recommendations. 19p. pa. - - Address Charles W. Burrows, 633 Euclid Av., Cleveland, Ohio. - -*Burrows, Charles W. One Cent Letter Postage, Second Class Mail Rates, -and Parcels Post: Address Delivered before the National Hardware Ass’n, -March 30, 1911. pp. 11-25. - - Address Charles W. Burrows, 633 Euclid Av., Cleveland, Ohio. - -Congressional Record. 40: 3476-82. Mr. 7, ’06. Parcels Post: Speech in -the House of Representatives. Gilbert N. Haugen. - -*French, F. E. Parcels Post: Address before the Southern Merchant’s -Ass’n, Nashville, Tenn., February 28-March 3, 1911. Leaflet No. 8. 15p. -pa. American League of Associations. - - Address the American League of Associations, Room 343, - Rand-McNally Bldg., Chicago, Ill. - -*Haugen, Gilbert N. Parcels Post and Postal Savings Banks: Speech in -the House of Representatives, March 13, 1908. 8p. pa. Govt. Ptg. Office. - - Reprinted from the Congressional Record. 42: 3548-51. Mr. 17, - ’08. [Address Gilbert N. Haugen, Representative, Washington, D. - C.] - -Hutsinpillar, C. A. Parcels Post: Address Delivered before the Annual -Convention of the Ohio Hardware Ass’n, February 23, 1904, 3p. pa. -gratis. - - Address C. A. Hutsinpillar, Ironton, Ohio. - -*Maxwell, George H. Perils of Parcels Post Extension. Leaflet No. 7. -35p. pa. American League of Associations. - - Reprinted in the Hearings before the Committee on the - Post-Office and Post-Roads, April 20-29, 1910. [Address - American League of Associations, Room 343, Rand-McNally Bldg., - Chicago, Ill.] - -Menace of a Parcels Post. 40p. pa. - - Address S. R. Miles, Mason City, Iowa. - -Miles, S. R. Extracts from an Address Delivered before the Federated -Commercial Clubs of Minnesota, January 17, 1908. 14p. pa. - - Address S. R. Miles, President, National Retail Hardware - Dealers Ass’n, Mason City, Iowa. - -*Ordway, John A. Parcels Post: Address before the New England Drygoods -Ass’n, March, 1911. Leaflet No. 9. 15p. pa. American League of -Associations. - - Address the American League of Associations, Room 343, - Rand-McNally Bldg., Chicago, Ill. - -Parcels Post: from the Standpoint of an Iowa Editor. Parcels Post -Circular No. 3, Series 1911. 4p. pa. Iowa Retail Hardware Association. - - Address A. R. Sale, Iowa Retail Hardware Ass’n, Mason City, - Iowa. - -*Parcels Post Problem: From the Standpoint of the Towns and Small -Cities. 30p. pa. National Hardware Bulletin. - - Address M. L. Corey, Secretary, National Retail Hardware - Association, Argos, Ind. - -Shall the Country Towns Be Destroyed by a Local Rural Parcels Post. -Pamphlet No. 5. Home Advancement Series. 30p. pa. American League of -Associations. - - Most of this pamphlet is a reprint of pp. 274-96 of the Report - of the Hearings before the Committee on the Post-Office and - Post-Roads, April, 1910. [Apply to M. L. Corey, Argos, Ind.] - -*Smith, S. C. Parcels Post: Speech in the House of Representatives, -March 3, 1908. 15p. pa. ’08. Govt. Ptg. Office. - - Reprinted from the Congressional Record. 42: 2928-31. Mr. 3, - ’08. [Address S. C. Smith, Representative, Washington, D. C.] - -Spofford, C. W. A. B. C. of Parcels Post; A. Catechism, 11p. pa. - -Trans-Mississippi Commercial Congress, Proceedings, 1907. pp. 232-40. -Parcels Post. - - -_Magazine References_ - -*Independent. 70: 72-3. Ja. 12, ’11. Objections to the Parcels Post. -Allan W. Clark. - -Independent. 70: 185. Ja. 26, ’11. Parcels Post Again. Sylvester C. -Smith. - -*Journal of Political Economy. 16: 417-35. Jl. ’08. Shall the Scope -of Governmental Functions Be Enlarged so as to Include the Express -Business? Albert N. Merritt. - -North American Review. 174: 807-19. Je. ’02. Defects and Abuses in Our -Postal System. Henry A. Castle. - - Parcels Post. pp. 812-4. - -North American Review. 178: 222-34. F. ’04. Postal Service. E. F. Loud. - - Parcels Post. pp. 224-6. - -Outlook. 96: 794. D. 3, ’10. Parcels Post. George P. Engelhard. - - - - -_SELECTED ARTICLES ON THE PARCELS POST_ - - - - -INTRODUCTION - - -The parcels post is not a new question. It has been the subject of -popular discussion for years, and several of our postmasters-general -have recommended an extension of our present system, sufficient, at -least, to put it on an equal basis with our foreign service. Those who -are familiar with the parcels post systems of other countries, and -those who believe that the express companies should not be permitted to -monopolize so large a part of the parcels-carrying trade, are in favor -of these recommendations. On the other hand, those who believe that the -government should not enter into any commercial undertaking, and those -who fear that the change will be detrimental to the country communities -and will result in the centralization of our population in the large -cities, are strongly opposed to any increase in our present rates, or -in the size of the package to be accepted. - -There are several organizations who are actively engaged at the -present time in supporting or opposing all attempts to enact parcels -post legislation. The Postal Progress League, with headquarters at -125 East 23d St., New York City, has for its aim the improvement of -our postal service, and is at present actively promoting the cause -of the parcels post. This organization is made up of manufacturers, -wholesalers, publishers and importers, and is supported by many of the -state Granges. The Postal Express Federation is a new organization, -formed for the express purpose of urging a reform of our parcels post -service, and is supported by many of the same organizations which are -back of the Postal Progress League. The American League of Associations -(headquarters at Room 343, Rand-McNally Building, Chicago, Ill.), is -composed of wholesalers in all lines of merchandise. Its object is to -promote the welfare of the small towns and country communities, and to -oppose the centralization of population in cities. It is at present -actively engaged in fighting the parcels post. - -These organizations as well as several others, named in the -bibliography given elsewhere in this volume, publish and distribute -literature for and against the parcels post, and the student of this -subject will find it profitable to get into communication with them. - -Hearings on the subject of a parcels post have been held before the -House Committee on the Post-Office and Post Roads, at two different -times, in April, 1910, and in June, 1911. At these hearings, have -appeared representatives of the associations named in the preceding -paragraph and of others who approve or oppose the recommendations -for an enlarged parcels post. Among those who have appeared in favor -of the parcels post are the various state Granges and farmer’s -organizations, the American Dyers and Cleaners Association, the -Manufacturing Perfumers Association, the Associated Retailers of St. -Louis, the Pennsylvania State Federation of Labor, the Society of -American Florists and Ornamental Horticulturists, and the National -American Woman’s Suffrage Association. Other societies opposing the -parcels post are the National Retail Hardware Association, the United -Commercial Travelers, the National Association of Implement and Vehicle -Dealers’ Associations, the National Associations of Retail Druggists -and Grocers, and various Oil, Paint, and Varnish Clubs and Associations. - -Postmaster-General George von L. Meyer recommended that our present -parcels post system, which is now limited to parcels weighing four -pounds or less, be extended to include all parcels of eleven pounds -or less, and that the rate be reduced from sixteen to twelve cents a -pound. He also recommended that a similar post be established on the -rural routes for all parcels of eleven pounds or less, with a rate -of five cents for the first pound and two cents for each additional -pound. Various bills have been introduced into Congress embodying -part or all of these suggestions. Other measures that have been -presented provide that the government be given a complete monopoly -of the parcels-carrying trade. One bill of this kind introduced by -Representative David Lewis of Maryland, provides that the government -shall take over the business of the express companies and have complete -control of the carrying business in parcels under a given weight. This -bill also provides that the zone-system of rates, now in operation in -Germany, be adopted. - -The General Discussion, following this Introduction, contains data in -regard to our present parcels post systems both foreign and domestic, -also similar data concerning the systems of other countries. It also -contains information regarding many of the recommendations that have -been made for an enlarged parcels post and the measures that have been -presented to Congress. The student is advised to familiarize himself -with the facts given in this discussion before proceeding to take up -the arguments for and against the parcels post. - - - - -GENERAL DISCUSSION - - - - -Up to Members of Congress. - -D. M. Carr. - - -Bills have been introduced in the present Congress, by Senators Burnham -and Kean, with a view of further improving the postal service. These -measures are for the purpose of enabling the postal department to -extend its parcel delivery service, commonly designated as the “parcels -post.” - -There is a large percentage of citizens who strongly advocate -an enlargement of the parcels carrying service performed by the -government. A number of foreign countries have for years maintained -parcels post systems on broad gauge plans; in fact, in Great Britain, -in Germany and a few other countries, the parcels post is conducted in -a manner so as to almost monopolize the express business. But in these -countries conditions, both geographically and commercially, are vastly -different from conditions that obtain within the United States. In the -old countries, there is greater density of population, and distances -which mail matter traverses are about one-thirteenth the distance that -the average piece of mail matter is carried in the continental United -States. - -In considering any postal innovation, it is essential that not alone -the operation and the revenue of the postal department be taken into -consideration, but also what the effect of the innovation will be upon -the industries located in various districts of the United States. -Some of the bills introduced in Congress, chief among them, that -introduced by Congressman Hearst during a former session, and the one -by Congressman Henry of Connecticut, during the present session, have -elements that mark them as undesirable and thoroughly impractical under -prevailing conditions, or any possible conditions that may arise in the -United States during the next quarter century. - -The postal department is not conducted for the purpose of profit; -rather it is conducted to perform a special service, which governmental -function can best perform for the people. But the department should -be self-sustaining. The revenue derived for the services rendered -the people should be sufficient to cover all expense of operation -economically performed. Any legislation involving the performance of -this service for less than cost to the government does not appeal to -the economist as wise or desirable. Yet the postal department does -perform certain services at a loss, although there are compensating -circumstances which more than overbalance the expenditure. In the -carrying of newspapers and periodicals, under the present system, there -is probably a loss, but at the same time the people receive a general -benefit far outweighing the cost to the government by having cheap -and good literature and such information as the press of the country -conveys and this at the minimum of expense. The second class rate, a -subsidy granted the press, has been instrumental to a degree impossible -of estimation in improving the intelligence of the people and raising -the standard of citizenship. - -The proposals set forth in the Henry bill, involving the establishment -of a parcels post system with a maximum weight of 11-pounds and the -maximum charge for maximum weight 25 cents from one postoffice in the -United States to any other postoffice or where mail is delivered, -are objectionable from an economic view. In the first place, such -service would entail heavy losses annually to the department; these -losses possibly reaching $150,000,000 or $200,000,000 annually. -Then again this system of parcels post would be a wonderful factor -in increasing the unequal distribution of business throughout the -nation. Geographical and other conditions greatly vary throughout -the states of the United States. In the thickly populated districts, -where manufacturing is carried on, the cost of labor and the cost of -production of articles of manufacture, ranges from 20 to 50 per cent -less than in other sections, principally in the agricultural regions. -A parcels post that allows the transportation of merchandise at as low -a rate as that provided for in the Henry bill, would enable consumers -residing in agricultural districts, where wages are high, to purchase -their goods in the lowest priced markets in the United States, and the -results of this system would be to concentrate industries in the large -cities and densely populated districts to the detriment of agricultural -and other sections now undergoing commercial and manufacturing -development. This would retard the growth of towns and the upbuilding -of manufacturing industries in those sections. Thus it can be seen that -there would be no compensating effects to justify the installation of a -parcels post of this character. - -The exorbitant charges made by the express companies and other carriers -have caused the people of the United States to demand that the package -carrying machinery of the United States postal department be enlarged. -Recognizing this demand, Postmaster-General Meyer in his annual report -made the recommendation that the parcels carrying service of the -government be broadened and that the parcels post be extended so as to -make the maximum weight of a package carried 11 pounds with a graduated -rate up to one pound and a pound rate of 12 cents, making the maximum -rate for the maximum weight $1.32. He also recommended that a parcels -post be established over rural delivery routes, starting from the -post-office where the route emanates and ending upon a rural route. For -this service he recommended that the limit of weight be 11 pounds and -the charge 5 cents for the first pound and 2 cents for each additional -pound, making the maximum charge for an 11 pound package 25 cents, and -that this service be limited to bonafide merchants and others residing -along the line of a rural route. - -In making his recommendation as to parcels post enlargement, it -is evident that the postmaster-general well considered not alone -the welfare of the department as to revenues sufficient for proper -maintenance and the installation of a more efficient service, but -as well carefully weighed the economic aspects as they relate to -geographical and commercial conditions throughout the Union. - -A careful study into Mr. Meyer’s plan will show that it does not -contemplate any revolution in commercial methods. Notwithstanding the -charges made to the contrary, by those opposed to his views, it does -not appear that should his system be adopted by Congress that the large -houses doing an exclusive mail order business would have any advantage -over the merchants of the smaller cities and towns. The rural parcels -post would certainly be not alone advantageous to the twelve or fifteen -millions of people residing in agricultural districts, who are now -served by more than 38,000 rural carriers, but would be of great value -to the live merchants in the smaller towns who at a minimum of expense -could utilize the rural service for the delivery of goods to their -patrons in the country. - -The bills introduced, respectively by Senators Burnham and Kean, are in -perfect harmony with the recommendations of the postmaster-general. - -With the diversion of small packages from the express companies -to the mails, the revenues to the postoffice department would be -proportionately greater than the increased cost occasioned by the -greater tonnage of matter carried. - -During the past fiscal year, the expense of maintaining the rural -delivery routes was in excess of $26,000,000. The installation of a -parcels delivery over the rural routes would most likely during the -first year place the rural delivery on a self-sustaining basis. There -are 38,253 rural routes. Should each carrier over a route on his daily -trip carry only 88 pounds of merchandise from the local stores to -the patrons on his route, it would give the government a revenue of -approximately $24,000,000 annually, and this service can be performed -without other carrying equipment than rural carriers now have. - -When every phase of the recommendations of Postmaster-General Meyer be -carefully weighed, it becomes apparent that his plans are based upon -soundest business judgment. - -Opposition to Mr. Meyer’s recommendations comes from three sources, -namely: - -Large manufacturers, jobbers and other classes of business men who -annually spend enormous amounts for letter postage. - -Country merchants who are unduly alarmed over the growth of the -catalogue houses, and who fear that a parcels post extension will -increase the mail order business to their detriment. - -Express companies, whose revenues would be decreased by operation of -the system. - - - - -Data Relative to Proposed Extension of Parcel Post. pp. 1-6. - - -OFFICE OF THE POSTMASTER-GENERAL, - -_Washington, D. C., March 4, 1908._ - -MY DEAR SENATOR: It affords me great pleasure, in compliance with -your request, to place at your disposal the data which are available -relative to the proposed extension of the parcel post. - -It does not appear to be generally appreciated that a comprehensive -system of parcels post is already in satisfactory operation in most -foreign countries. Exhibit No. 1 gives detailed information on this -subject. I show here the limit of weight which has been fixed in a -number of instances: - - Pounds. - Great Britain 11 - Germany 110 - France 22 - Italy 11 - Chile 11 - New Zealand 11 - Austria 110 - Belgium 132 - The Netherlands 11 - Cuba 11 - -The rates in the countries mentioned are much lower than those shown in -Exhibit No. 2, which have been recommended for the general parcel post -in the United States. - -The present rate on the general parcel post is 16 cents a pound -for people in our own country, the limit of weight being 4 pounds, -while the rate from the United States to 29 foreign countries is 12 -cents a pound and the limit of weight to 24 of these countries is 11 -pounds. In other words, our own people must pay 4 cents a pound more -for the privilege of dispatching packages to each other than when -destined to residents of a foreign country. I have therefore urged a -rate of 12 cents a pound for packages forwarded through the mails to -post-offices in the United States and its possessions, subject to the -same regulations as exist at the present time, with the exception of -increasing the weight limit to 11 pounds. The service can be rendered -at a cost well within the rates recommended. - -According to the report of the record of weight of second-class mail -matter, transmitted by the Post-Office Department to the House of -Representatives under date of February 1, 1907, the average haul of all -second-class matter was 540 miles. - -Of the total receipts of the Post-Office Department 69 per cent are -expended for labor and supplies, and 7 per cent for conveyance charges -other than those paid the railroads for transporting the mail. A -general rate for parcel post of 12 cents a pound would produce a -revenue of $240 a ton. Even on the basis of a 540-mile average haul, -I find the debit and credit sides of 1 ton of parcel post to be as -follows: - - By postage $240.00 - To railroad transportation, 540 miles, at 5½ cents $29.70 - Other transportation charges 16.80 - Labor and supplies 165.60 - ------ - - Total cost 212.10 - ------ - Profit 27.90 - -A local parcel post confined to rural delivery routes is also advocated -at the rates given in Exhibit No. 3. The Department favors the -establishment of this special service because of its ability to render -it with great advantage to the farmer, the country merchant, and other -patrons of the routes, as the necessary machinery (over 38,000 routes -now regularly covered by rural carriers) is in operation. There are -some 15,000,000 people living on these routes, which shows the vast -possibilities of the rural service. It has been estimated that if but -three packages of the maximum weight were handled each trip on the -rural routes now established the resulting revenue, even at the low -rates given, would more than wipe out the postal deficit. The increased -cancellations would automatically advance the salaries of postmasters -of the fourth class, and the remaining revenue, which would be -clear gain, would be of great assistance in making the rural service -self-sustaining. The rural service will, in all probability, cost the -government this year $34,000,000, an increase of $10,000,000 over last -year. - -The history and advantages of the rural delivery should be understood -by our people. There is a feeling in many quarters that it is an -extravagance and an unnecessary drain upon the postal revenues. The -first rural route was established in the latter part of 1896, $14,840 -being expended for rural delivery during that fiscal year. At that time -the postal deficit was $11,411,779. During the fiscal year ended June -30, 1907, the expenditures for rural delivery aggregated $26,671,699, -while the postal deficit showed a decrease, as compared with 1897, of -$4,800,000, the deficit amounting to $6,653,282. This would seem to -show that while the expense incurred for maintaining rural delivery is -great, yet the rural delivery has been instrumental in increasing the -general postal receipts. However, its benefits to our people can not be -measured in dollars and cents. - -That a local parcel post would be of material advantage to the retail -merchant in competition with mail-order houses is seen at once when it -is pointed out that the latter, at the proposed general parcel post -rate of 12 cents a pound, would be obliged to pay $1.32 for sending an -11-pound package to a rural route patron, a difference in favor of the -local storekeeper of about 10 cents a pound, or $1.07 on an 11-pound -package. - -Letters and petitions for the extension of the parcel post are being -received from all sections of the country. Many commercial bodies -formerly opposed to any action of this kind are on record as being -heartily in favor of it. - -On the other hand, objections have been raised to the measures the -Department is advocating. Although no sound argument has been advanced -in opposition, the contentions which have been made are not without -interest. I mention the more important of them, at the same time giving -the replies which they have elicited: - -It has been stated that the Department is not equipped to deliver -11-pound parcels received in the general mails. The present postal -regulations provide that where a package is of undue size or weight a -formal notice shall be sent the addressee requesting him to call for -it. This practice, would continue were the weight limit increased to -11 pounds, in the case of offices having free delivery. Nor would it -work a hardship, for under the present limit of 4 pounds the average -weight of parcels sent through the mails is but one-third of a pound. -Increasing the weight limit would not have nearly as great an effect on -the average weight of parcels mailed as seems to be commonly supposed. -Where packages were addressed to persons living on rural routes they -would, of course, be delivered to the boxes of the patrons by rural -carriers, who would not thereby be inconvenienced. - -The claim that the special local rate recommended for the parcel post -on rural routes would eventually be extended to include the entire -postal service has been given considerable publicity. The impossibility -of this becomes apparent when attention is directed to the cost of -railroad transportation, which has no part in the former service. About -$45,000,000 were paid last year for mail transportation and $6,000,000 -for postal cars. - -Others have said that large mail-order houses would, under the proposed -law, utilize the special parcel post or rural routes through agents -to the great disadvantage of the country merchant, first assembling -their orders and despatching them by express or freight to suitable -distributing points. The Department has recommended provisions which -will prevent any such use of the routes. It should be remembered, too, -that even in the absence of a specific prohibition of this nature, -any systematic attempt upon the part of a mail-order house to thus -distribute its wares would necessitate the employment of many thousands -of local representatives. The catalogues of these concerns indicate in -no uncertain way that they attribute their success, in large measure, -to their low selling expense, and that the absence of any sort of -agents is the principal feature of their argument in accounting for the -supposedly low prices of their goods. - -The cry of “class legislation” has been raised. There is, of course, no -discrimination involved, for all who can be reached by rural carriers -will be accommodated. It would be as reasonable to decry the laws -which permit the delivery of mail to patrons living on rural routes, -while persons differently situated are obliged to make a trip to a -near-by post-office to obtain their letters. - -Those who claim that an increase in the weight limit would work -an injury to country merchants appear to have the impression that -mail-order houses now deliver their goods extensively through the -postal service, and that this practice would largely increase if the -recommendations which have been made become law. Upon a moment’s -reflection it will be perceived that the present rate of 16 cents -a pound ($16 per hundred-weight), as well as the proposed rate of -12 cents a pound ($12 per hundred-weight), are alike prohibitive on -practically all lines of merchandise. Mail-order houses make their -shipments usually by freight or express and would continue to do so. - -Antagonism to the proposed measures, when analyzed and found not to be -the result of selfish motives, appears to be based upon inaccurate or -insufficient information. In illustration, I desire to invite attention -to a communication of the Richmond Commercial Club, of Richmond, Ind., -which appeared in the Congressional Record of January 4, 1908. In this -letter the statement was made that a certain mail-order house would -save $40,000 a year on the mailing of catalogues alone. Catalogues are -rated as third-class matter, whereas the Department’s recommendations -with respect to parcel post relate to fourth-class matter only. -Catalogues are now mailable at 1 cent for 2 ounces, or 8 cents a pound, -4 cents a pound less than the rate proposed for the general parcel -post. The mail-order house referred to, therefore, would gain nothing -under the proposed law in the mailing of its catalogues. - -With the adoption of new conveniences of life by urban residents, and -the ever-increasing attractions of the city, especially potent in their -influence upon the younger generation, the importance of affording -farmers and ruralites generally every legitimate advantage becomes more -and more apparent. The free rural delivery has improved materially -and intellectually the life of great numbers of these people. Is it -too much to ask that the Department shall make a further use of this -important system; a use which, while adding appreciably to the postal -revenues, will directly and vitally benefit every man, woman, and -child within reach of a rural route? The countryman would have the -necessities of life delivered at his gate at an average cost of 2 cents -a pound, thereby facilitating and increasing consumption. This would -mean augmentation of the trade of thousands of country merchants. The -commercial traveler should appreciate the advantages of this system; it -would increase his orders because the country merchant buys from the -jobber or the wholesaler. Every component part of our commercial system -would feel the effects of an increased prosperity. - -It would inevitably tend toward the improvement of the roads. Better -roads and improved postal facilities in the rural districts would -result in increased values of farm lands. The rural service as now -organized has accomplished something in this direction; its enlargement -will add to the good attained. - -Believe me, faithfully yours, - -G. v. L. Meyer. - -Hon. Henry E. Burnham, _United States Senate, Washington_. - - -Exhibit 1. - -Parcel Post Rates in the Domestic Service of the Countries Named. - -Great Britain.--Postage rates for the first pound, 3 pence (6 cents), -and for each additional pound, 1 penny (2 cents); maximum weight, 11 -pounds; greatest length, 3 feet 6 inches; greatest length and girth -combined, 6 feet. - -New Zealand and the States Composing the Commonwealth for -Australia.--Limits of weight and size, same as in Great Britain. -Postage rates, 6 pence (12 cents) for the first pound, and 3 pence (6 -cents) for each additional pound. - -Germany.--Greatest weight, 50 kilograms (about 110 pounds); no limit -of size. Postage rates: For all parcels conveyed not more than 10 -geographic miles, 25 pfennig (6 cents), and 50 pfennig (13 cents) for -greater distance; if a parcel weighs more than 5 kilograms (11 pounds -av.), it is charged for each additional kilogram (2 pounds) carried 10 -miles, 5 pfennig (1 cent); 20 miles, 10 pfennig (3 cents); 50 miles, -20 pfennig (5 cents); 100 miles, 30 pfennig (8 cents); 150 miles, 40 -pfennig (10 cents); and more than 150 miles, 50 pfennig (13 cents). -Unwieldy parcels are charged in addition 50 per cent of the above rates. - -Austria.--Greatest weight, 50 kilograms (110 pounds); except that -parcels containing gold or silver coin may weigh up to 65 kilograms -(143 pounds). Postage rates: Parcels up to 5 kilograms (11 pounds) in -weight are charged 30 heller (6 cents) for the first 10 miles, and 60 -heller (12 cents) for greater distances. A parcel weighing more than -5 kilograms (11 pounds) is charged for each kilogram (2 pounds) in -addition to the above rates, for the first 10 miles, 6 heller (1 cent); -20 miles, 12 heller (2 cents); 50 miles, 24 heller (5 cents); 100 -miles, 36 heller (7 cents); 150 miles, 48 heller (10 cents), and more -than 150 miles, 60 heller (12 cents). - -France.--Greatest weight 10 kilograms (about 22 pounds); no limit of -size. Postage rates: Up to 3 kilograms (7 pounds), 60 centimes (12 -cents) delivered at the railway station, and 85 centimes (17 cents) -delivered at a residence; from 3 to 5 kilograms (7 to 11 pounds), 80 -centimes (16 cents) at a station, and 1 franc 5 centimes (21 cents) -at residence; from 5 to 10 kilograms (11 to 22 pounds), 1 franc 25 -centimes (25 cents) at a station, and 1 franc 50 centimes (30 cents) at -a residence. - -Belgium.--Greatest weight 60 kilograms (about 132 pounds); no limit -of size, but unwieldy parcels are charged 50 per cent in addition to -the following rates for any distance: Parcels up to 5 kilograms (11 -pounds), 50 centimes (10 cents)--or if by express trains, 80 centimes -(16 cents); up to 10 kilograms (22 pounds), 60 centimes (12 cents)--or -if by express trains, 1 franc (20 cents); for each additional 10 -kilograms (22 pounds), 10 centimes (2 cents)--or if sent by express -trains, 50 centimes (10 cents) additional. Fee for delivering at -residences, 30 centimes (6 cents). - -Italy.--Greatest weight, 5 kilograms (11 pounds). For ordinary parcels, -greatest size in any direction, 60 centimeters (2 feet), except rolls -which may measure 1 meter (40 inches--3 feet 4 inches) in length by 20 -centimeters (8 inches) in thickness. Postage rates for a parcel not -exceeding 3 kilograms (7 pounds), 60 centimes (12 cents); and 1 franc -(20 cents) for a parcel exceeding that weight. A parcel which exceeds -60 centimeters (2 feet) in any direction, but does not exceed 1½ meters -(5 feet), is admitted to the mails as an “unwieldy” parcel and is -charged, in addition to the above rates, 30 centimes (6 cents) if it -does not weigh more than 3 kilograms (7 pounds), and 50 centimes (10 -cents) if it exceeds that weight. - -The Netherlands.--Greatest weight, 5 kilograms (11 pounds); greatest -size, 25 cubic decimeters (1,525 cubic inches), or 1 meter (3 feet -4 inches) in any direction. Postage rates: 15 (6) cents (Dutch) up -to 1 kilogram (2 pounds); 20 (8) cents from 1 to 3 kilograms (2 to 7 -pounds); 25 cents (10) from 3 to 5 kilograms (7 to 11 pounds). - -Chile.--Greatest weight, 5 kilograms (11 pounds); must not measure -more than 60 centimeters (2 feet) in any direction. Postage rates: 30 -centavos (10 cents) if a parcel does not weigh more than 3 kilograms (7 -pounds); 50 centavos (17 cents) if it weighs more. - -Cuba.--Greatest weight, 11 pounds; greatest size, 3 feet 6 inches -in length by 2 feet 6 inches in width. Postage rates: 10 centavos -(10 cents) a pound up to 5 pounds; and 6 centavos (6 cents) for each -additional pound. - - -Exhibit 2. - -Rates recommended by the Postmaster-General in his annual report -(year ended June 30, 1907) for packages forwarded through the mails -to post-offices in the United States and its possessions, subject to -the regulations which exist at the present time, with the exception of -increasing the weight limit to 11 pounds. - - Cents. - - One ounce 1 - Over 1 ounce and not exceeding 3 ounces 2 - Over 3 ounces and not exceeding 4 ounces 3 - Over 4 ounces and not exceeding 5 ounces 4 - Over 5 ounces and not exceeding 6 ounces 5 - Over 6 ounces and not exceeding 8 ounces 6 - Over 8 ounces and not exceeding 12 ounces 9 - Over 12 ounces and not exceeding 16 ounces 12 - - -Exhibit 3. - -Rates recommended by the Postmaster-General in his annual report -(fiscal year ended June 30, 1907) for packages covered by the special -local parcel post on rural delivery routes. - - Cents. - For the first pound 5 - For each additional pound, up to 11 pounds 2 - For fractional parts of a pound: - Two ounces or less 1 - Over 2 ounces and up to 4 ounces 2 - Over 4 and up to 8 ounces 3 - Over 8 and up to 12 ounces 4 - Over 12 ounces and up to 1 pound 5 - - - - -Our Postal Express. - -James L. Cowles. - - -The United States post-office has always been an express service, -although Congress long confined the business to sealed parcels of very -small weights--not over 3 pounds--and at very high rates graduated -according to distance, with no insurance whatever against loss or -damage in the mails. In 1874, however, the business was extended over -all kinds of merchandise in unsealed parcels at a common rate of -one cent each two ounces, regardless at once of distance and of the -volume of a patron’s business. This placed the humblest citizen in the -most out of the way postal district of the country on a par with the -biggest corporation in our greatest metropolis as to the cost of the -transportation of his produce and of his supplies in parcels up to four -pounds, and, though still with no insurance against loss or damage, -the new postal express immediately became a dangerous competitor to -the private express company with its distance rates based on what the -subject will bear and always discriminating in favor of the big town -against the little town, the big corporation against the ordinary -citizen. - -The private express interests got quickly to work, therefore, and -Congress soon checked up the growing postal express business by -increasing the postal rate one hundred per cent--from eight to sixteen -cents a pound. Later Congress bowed to the powerful book and seed -interests of the country and reduced the rate on their merchandise -to the old rate of 1874, and now, for many years, the post-office -and the public have been subjected to two sets of rates on matter -indistinguishable both in character and as to the cost of their -transportation. - -The evil of this absurd postal classification, continued these twenty -years by Congress, becomes decidedly evident when our domestic service -is compared with the foreign parcels post services established by -President Taft and Postmaster-General Hitchcock, with their common 11 -pound weight limit at 12 cents a pound, on all merchandise posted from -the United States to foreign countries and from those countries to the -United States: - - From Austria: - 4½ pounds .35 - 11 pounds .86 - - From Italy: - 7 pounds .39 - 11 pounds .79 - - From Norway: - 2½ pounds .16 - 11 pounds .96 - - From Germany: - 4½ pounds .33 - 11 pounds .81 - - From Belgium: - 4½ pounds .35 - 11 pounds 1.10 - - U. S. Foreign Rates: - 2¼ pounds .36 - 7 pounds .84 - 11 pounds 1.32 - - U. S. Domestic Service: - 2¼ pounds .36 - 4½ pounds (2 parcels) .72 - 7 pounds (2 parcels) 1.12 - 11 pounds (3 parcels) 1.76 - -Under the English post-American express arrangement English postal -parcels now come to New York three pounds for sixty cents; seven pounds -for 84c; eleven pounds for $1.08, and these parcels are forwarded by -the American express company throughout the country at a common rate -of twenty-four cents a parcel, eight cents a pound on a three-pound -parcel; about three and a half cents a pound on a seven-pound parcel, -and less than two and a half cents a pound on an eleven-pound parcel. -Meantime the express company taxes domestic merchandise of the same -weights from 25 cents to $3.20, according to the distance traversed, -while Congress taxes the public for a similar domestic postal service, -three pounds, forty-eight cents; seven pounds, 2 parcels, $1.12; eleven -pounds, 3 parcels, $1.76. - - - - -Data Relative to Proposed Extension of Parcel Post. pp. 8-14. - -From The Boston Herald. - -Ernest G. Walker. - - -Postmaster-General Wanamaker first actively urged the establishment -of a parcels post on a large scale. He summed up the situation -epigrammatically in his 100 reasons for it and only 4 reasons against -it--those 4 being the express companies. Others after him, especially -the late Postmaster-General Bissell, made like recommendations. But -Mr. Meyer now has an advantage in his campaign which none of his -predecessors had in the rural delivery routes. Every one of the many -thousands of routes would be a little parcels service in itself, aside -from being a line of communication, by which small packages could be -conveyed from all parts of the country or to any part of the country. -Mr. Meyer is building much upon that fact. The local service at cheaper -rates will also protect the local store-keepers, to which the big -department stores and mail-order establishments are bogeys. - -Ever since he announced his intention of urging a better parcels post -service for the United States, the Postmaster-General has been the -recipient of many letters. These come from various classes of people. -Most of them commend his plan, but the retail associations, such as the -associations of hardware men and grocers, come out in bold opposition. -It is such people as these that the Postmaster-General hopes to convert -when they are brought to understand the details of what he wants to -do. Some of these critics, besides claiming that the legislation would -favor the catalogue houses, argue that the government should not go -into a general freight business and that if the express companies are -charging exorbitant rates, the Interstate Commerce Commission, which -now has authority over them, should step in and require that the rates -be lowered. - -The operations of parcels post in other countries make a very -interesting transportation chapter. They are conducted on a gigantic -scale and, apart from what J. Henniker Heaton, long an English member -of Parliament from Canterbury, and a great advocate of postal reforms, -calls “grandmotherly regulations,” have worked with practically -world-wide success. Shopping by mail is made easy, whether one in the -country would trade with the local draper or the big metropolitan -merchant. - -Great Britain’s conservative enactments will likely be a model for -any extension of the parcels post service by Congress. The service is -almost twenty-five years old over there. It has become one of the most -important and highly appreciated postal features. Its growth has been -continuous and phenomenal. The scope has frequently been broadened. -There was an early clamor for an agricultural parcels post. The owners -of small farms in remote localities wanted it. The growers of spring -flowers in Kerry said it would enable them to compete with the south -of France and the Scilly Isles. Eventually the agricultural parcels -post was authorized and also spacious dimensions for packages. Flower -growers can now send full length orchid spikes and long-stemmed roses -by post, where formerly only simple blooms were admissable. - - -_Send Fish, Eggs and Fruit_ - -The produce of the culturists goes forward to London and other big -English cities in tremendous volume. Fresh fish, dispatched from -seaport towns to the large hotels, are delivered with celerity. Meats, -cheese, fruits, vegetables, and freshly laid eggs in mail packages -under the 11-pound limit form a very considerable factor in the -commerce of the Kingdom. - -The general rates are low. A 1-pound parcel takes a three-penny stamp. -That is 6 cents in our money. For 2 pounds an 8-cent stamp is required; -for three pounds, a 10-cent stamp; for 5 pounds, 12 cents; for 7 -pounds, 14 cents; 8 pounds, 16 cents; 9 pounds, 18 cents; 10 pounds, -20 cents, and 11 pounds, 22 cents. Four-pound parcels cost as much as -five pounds, and 6 pounds cost as much as 7 pounds. For inland parcels -3 feet 6 inches is the maximum length; 6 feet the maximum measurement -for length and girth. These have been adopted as standard dimensions -in the services of numerous other countries. Parcels should not be -posted at a letter box, but presented at the counter of a postoffice. -The government virtually guarantees the sender against loss up to -$10. Payment of a registry fee of 4 cents, in addition to the regular -postage, insures the parcel for $25; a 25-cent registry stamp carries -an insurance of $1,000. There have been demands, not yet conceded, -for the cash on delivery system that several European countries have -adopted. - -The big retail stores of London avail themselves extensively of the -parcels service for delivery of goods. The rates, ranging from 6 to -22 cents, are not prohibitive. In many cases the government service -is cheaper and quicker. Laundries return washing by parcels post. In -Germany, where the rates are even cheaper, lads away at school send -their soiled linen home by mail to be washed and it is returned to them -by the same conveyance. - -Sidney Buxton, the postmaster-general of Great Britain, in his -last report, statistically demonstrates the continuous growth, and -consequently the popularity, of the parcels post in the United Kingdom. -The number of parcels delivered in the country districts of England -and Wales in 1896-97 was 41,512,000, and increased annually by from 3 -to 6 per cent, till in 1905-6 the number was 66,277,000. In the London -district for the same ten-year period the increase was from 11,229,000 -parcels to 18,167,000. A similar increase was shown for Scotland from -6,802,000 to 10,725,000 parcels, and for Ireland, where the increase -was from 4,172,000 in 1896-97 to 6,513,000 in 1905-6. - -The gross amount of revenue the government collected increased from -£1,445,126 for 63,715,000 parcels in the United Kingdom for the first -year of the decade to £2,138,673 for 101,682,000 parcels in the last -year of the decade. The post-office’s share of these collections -increased from £763,307 to £1,142,224. The average postage per parcel -decreased during the period from about 11 cents to 10 cents. The -postmaster-general undertakes to deliver both letters and parcels at -every house in the Kingdom. They are delivered by the same postman, -except in the large towns, where there is a special staff for parcel -work. - - -_Call Swiss Service Best_ - -Because of competition from private agencies, that have charges -graduated on a basis of distance, there is a tendency for an unduly -high proportion of long distance parcels and parcels for delivery in -rural districts, which are the least remunerative. The post-office -has met this competition by establishing, for comparatively short -distances, a large number of horse and motor parcel van services, -as road conveyance for these distances makes possible an economy as -compared with conveyance by railway at the charge of 55 per cent of the -receipts. - -The Swiss is cited much as one of the most efficient and satisfactory -in Europe. The mountain villages and resorts of that industrious -little country receive a large portion of their supplies by post, as a -maximum weight of 110 pounds is carried within a radius of 62 miles. -The conditions there are somewhat the same as with the dwellers in the -Appalachian and Blue Ridge mountains, to whom it has been declared that -a parcels post would be a great boon because there is no prospect that -either the railroads or the express companies will ever approach their -hamlets and villages. - -This Swiss law includes an agricultural parcels post and likewise a -passenger post, agitation for both of which has generally followed the -establishment of parcels post in most countries. The passenger post of -Switzerland is something like the mail coaches in the United States -before the coming of railroads, except that the coaches are owned by -the state and the fees are prescribed by the same authority. A very -large business is done in sending parcels through the mails. A treasury -official, who was traveling in Switzerland during the past summer, saw -at one railroad station several enormous baskets filled with hams and -provisions. They were samples of mail parcels under the 110-pound limit. - - -_Cash on Delivery Plan_ - -The general rates are more liberal than in any other country. A parcel -weighing 1 pound is carried anywhere within the boundaries of the -Federation for 3 cents, a 5-pound parcel for 5 cents, a 11-pound -parcel for 8 cents, a 22-pound parcel for 17 cents, a 33-pound parcel -for 23 cents, and a 44-pound parcel for 33 cents. Parcels weighing -as much as 110 pounds are carried within a radius of 62 miles for 60 -cents, which enables many of the peasants to market much of their light -produce by mail. The rates are so adjustable that housewives can secure -anything by post from a paper of pins to a bag of flour. The V. P., -or value payable, system is a part of the Swiss postal arrangements, -so that purchaser can pay for his goods on delivery, and there is but -one financial transaction connected with the purchase as far as he is -concerned. A provision for delivery makes the service all the more -attractive. - -Belgium’s parcels post has even a higher weight limit than Switzerland, -for it accepts articles of 62 kilograms, or about 132 pounds, in -one package, and puts no limit upon the size, except that unwieldy -packages are subject to an extra charge of 50 per cent. But up to 5 -kilograms, which is the conventional 11-pound limit of a majority of -the parcels post countries, the charge is 50 centimes, or 10 cents; -for 10 kilograms 12 cents, and two cents extra for every additional -10 kilograms (22 pounds). A higher charge is made in Belgium, as in -several other European countries, if the parcel is to be carried on an -express train. It amounts to six cents for five kilograms. The fee for -delivering at residence is six cents additional. - -Germany and Austria maintain the 50-kilogram limit. The first named -country enforces the 50 per cent extra charge for unwieldy articles. It -also has what is called the zone system. For conveyance 10 geographic -miles the charge is six cents (25 pfennigs), and 13 cents (50 pfennigs) -for greater distances. If the parcel weighs more than 11 pounds there -is a charge of one cent (five pfennigs) for each additional kilogram -carried 10 miles, 10 pfennigs for 20 miles, 20 pfennigs for 50 miles, -30 pfennigs for 100 miles, 40 pfennigs for 150 miles, and 50 pfennigs, -approximately 13 cents, for more than 150 miles. The same rate of -charges applies in Austria. - - -_A Table of Charges_ - -The French parcels post law requires presentation at the railroad -station. Some other European countries, like Great Britain, require -it to be delivered at the postoffice. The French maximum weight is 10 -kilograms (22 pounds) without any restriction as to size. The postage -rates are 12 cents up to 3 kilograms; 16 cents up to 5 kilograms, -and 30 cents up to 10 kilograms. These rates are for delivery at a -railroad station. An extra fee of 25 centimes (5 cents) is charged for -delivering the parcel at the residence of the addressee. - -Certain elementary items of cost enter into the service of European -countries that would not be identical with the maintenance of a similar -service in the United States. In Germany a considerable mileage of -the railroads is state owned. They carry certain parcels in the mails -without compensation. In large sections of Europe there has never been -anything like adequate service by express companies, and in the absence -of business enterprises in establishing such transportation the people -have been compelled to look to their governments for relief. The cheap -rates for parcels post there were originally, in some part, intended as -an accommodation for the poorer classes. - -The distances for transportation are less and the population is denser. -The United States is 225 times larger than Switzerland, 60 times larger -than England, 17 times larger than Germany, 12 times larger than the -three countries combined. In England the average distance a letter or -mail package travels is 40 miles; in Germany it is 42 miles; in the -United States it is said to be 542 miles. - - -_Difficult to Estimate Cost_ - -No accurate information is available as to whether the European parcels -posts are in reality self-supporting. They certainly are nearly so, -and in some instances are regarded as profitable government ventures. -Everywhere the service is characterized by prompt transmission and -prompt delivery. The percentages of loss are very small. The several -national constituencies that have a parcels post system would no more -relinquish such privileges than American cities would relinquish -electric lights or automobiles. One European enthusiast pronounced -the establishment of the parcels post “a service to mankind only less -splendid than that of the transmission of thought.” - -In England it is claimed that the parcels post service would be -a source of profit but for the amounts paid to the railroads for -transportation, the share of 55 per cent of the receipts being regarded -as exorbitant. Generally the parcels post is so joined with the rest of -the mail service that its entire cost can not be counted. - -The international business has grown to enormous proportions. The -figures collected at Berne for 1904, in connection with the Postal -Union, show that the parcels mailed across the frontiers of 36 nations -and colonies that year numbered something like 38,000,000. The small -percentage of that total, where the value was declared, showed an -aggregate of about $162,000,000 worth of property. In that list the -United States would have stood about eleventh on the showing for the -fiscal year of 1906, when 264,438 parcels of an average weight of 2⅔ -pounds were sent from this country abroad. Tunis sent more according -to the figures than the United States. Germany, leading all other -nations both in the dispatch and receipt of parcels in international -mails, sent a total of 11,675,385, of which 11,343,516 were classed as -“ordinary,” and 331,869 were “with a declared value” of $23,352,378. -Austria, enjoying close postal relations with Germany, dispatched -10,659,300 parcels to other countries, of which 1,082,430 had a -declared value of $68,396,578. - - -_Has Become Great Factor_ - -The totals of “receipts” and “dispatches” of course balance for the -36 countries in question, but are not the same for each country -represented. The rank in parcels dispatched runs: Germany, Austria, -France, Hungary, Great Britain, Switzerland, Italy, Belgium, -Netherlands, Tunis, British India, Bosnia-Herzegovina, Russia, Denmark, -Luxemburg, Japan, and Egypt; in parcels received the order is: Germany, -Hungary, Austria, Switzerland, France, Italy, Great Britain, Belgium, -Russia, Netherlands, Denmark, Roumania, Spain, Bosnia-Herzegovina, -Sweden, Norway, Luxemburg, Tunis, and so on. Switzerland in 1904 -received across her borders 2,788,406 parcels by post, of which -2,635,090 were “ordinary” and 133,316 were declared of a value of -$9,863,886. Of 6,352,360 parcels that came over the Austrian frontier, -778,380 had a declared value of $64,788,927. Germany received 7,337,404 -parcels in international mails, of which 482,472 had a declared value -of $35,901,435. The parcels received by post in the United States -during the fiscal year 1906 from abroad were recorded as 131,064, of -an average weight of 2.73 pounds. Probably the actual number was much -larger, perhaps twice as large. - -Sufficient figures have been given to indicate what a great factor the -parcels post has become in the trade of the world. The value of the -merchandise thus transported can only be roughly estimated, but it will -probably exceed half a billion dollars annually. - -This business is transacted across frontiers, causing little or no -friction with customs officers. Boxes with declared value are subject -to the legislation of the country of origin or destination as regards -payment of stamp duties on articles exported and as regards the control -of stamp and customs duties on articles imported. The stamp duties and -charges for examination by customs officers involved in the importation -are collected from the addressees when the articles are delivered. - - -_Provision for Insurance_ - -Practically the same rules apply for all parcels post. There is -provision for insurance and also for “trade charges,” which latter -term means that goods can be sent c. o. d., the maximum value being -f.1000. The limit of weight is 5 kilograms, or 11 pounds. The cost -of conveyance comprises a charge of 10 cents for each country -participating in the territorial transit, a graduated distance tax -for sea conveyance and extra rates for cumbersome parcels, and may be -increased under certain conditions by delivery fees and, in case of -declared values, by insurance fees. Weights under 2 pounds, however, -are transported for a maximum of 1 franc. Special forms are provided -for registering for customs declaration, for certificate of prepayment, -when that is desired, and for trade charges. - -The United States is not a party to this comprehensive parcels post -convention, by which a vast quantity of merchandise is carried to -different parts of the world annually, but Argentina, Bolivia, Chile, -Colombia, Guatemala, Uruguay, and Venezuela are among the signatories. -But the United States has parcels post conventions with 33 different -countries on somewhat different but fairly liberal terms. It keeps the -postage for parcels it sends to other countries and they in turn retain -the postage on parcels sent here. That saves in bookkeeping and has -been found economical, whereas the more comprehensive convention, under -which most of the European and Asiatic countries operate, divide the -postage receipts pro rata. The United States will not transmit through -its mails parcels en route from one foreign country to another. Among -the latest parcels post conventions the President has ratified under -statute authority are those with Sweden, Peru, Denmark, Ecuador, and -Bermuda. - - -_Customs Easily Collected_ - -The popularity in this country of the parcels post is well demonstrated -by the great growth in the use of international facilities. The -dispatches from this country for the fiscal year ending June 30, 1905, -amounted to 560,228 pounds and for the year ending June 30, 1906, was -721,164 pounds, an increase of 28.73 per cent. Only one-fifth of the -dispatches of the last mentioned fiscal year went to Europe, which -indicates that a good share of the parcels business was with Mexico and -Central South America. Parcels for Germany, Hongkong, Japan, Norway, -Belgium, Great Britain, Sweden, and Denmark are accepted only for a -maximum weight of 4 pounds and 6 ounces, where the maximum weight -for the other countries with which the Postoffice Department now has -conventions is 11 pounds. - -The customs officials say that the parcels post business with -foreign countries is increasing by leaps and bounds. Within recent -months better facilities for the collection of customs dues have -been inaugurated, with the result it is said, that many packages -which hitherto passed without being noted are now being examined and -recorded. There are offices of exchange, so called, in several of the -larger post-offices of the United States where customs officials are -stationed to attend to the collection of duties on these parcels from -abroad. In the Washington City post-office this foreign parcels post -business is said to have increased 300 per cent within the last twelve -months. The Treasury Department keeps about 25 customs employees now on -duty at the New York City post-office to attend to the foreign parcels -post business which goes through that office. Dutiable packages to -minor offices are handled from exchange offices. Such mail addressed -to Plymouth, Mass., for instance, would be held till the addressee had -forwarded to the postmaster at Boston the amount of duty required. - - - - -Post-office, Our Mutual Express Company. pp. 1-3. - -William S. Bennet. - - -MR. CHAIRMAN: In connection with this subject I take pleasure in -submitting the following views of the Postal Progress League: - -_The Post-Office, Our Mutual Express Company_ - -From the foundation of our national government, the people of the -United States, through their representatives in Congress, have always -determined the scope of their postal service, the pay of their mail -carriers, their own postal rates; and from the first they seem to have -provided for the postal transport of merchandise in very small sealed -parcels at very high rates--by the act of 1792, 24 cents an ounce for -distances up to 30 miles, higher rates for greater distances. In 1810 -they fixed the postal weight limit at 3 pounds, and it so remained -for many years. In 1863 the postal rates were made uniform regardless -of distance, and since 1863 Congress has definitely provided for the -transport of merchandise in unsealed parcels, but still with a weight -limit so low and rates so high as to be practically prohibitive. - -In the old era of household industries when the peddler, with his -pack on his back, or driving his own team, was the chief agency of -commercial intercourse, these postal limitations worked little harm, -but their continuance in our day, when every industry needs a continent -for its development, is no longer endurable. The common welfare -demands the widest possible extension, the most efficient and economic -administration of our great mutual express company. - -In its report of January 28, 1907, the Postal Commission of the -Fifty-ninth Congress declared that: “Upon the postal service, more than -upon anything else, does the general economic as well as the social and -political development of the country depend.” And yet the United States -merchandise post of to-day is limited to 4-pound parcels at rates: -Sealed parcels 2 cents an ounce, 32 cents a pound, with no insurance -against loss or damage unless registered; and unsealed parcels, with no -insurance under any conditions, at rates: - -_Third-Class Matter_ - -Some specific kinds of merchandise; printed books; Christmas cards -printed on paper; advertisements on ordinary paper; seeds, bulbs, etc., -for planting, 1 cent for 2 ounces, 8 cents per pound. - -_Fourth-Class Matter_ - -General merchandise; blank books; Christmas cards of any other -substance than paper; advertisements on blotting paper; seeds, bulbs -for food, etc., 1 cent per ounce, 16 cents per pound. - -In 1874 third-class matter covered all merchandise at one-half the -present general merchandise rate. - -The Postal Report of 1904, pages 593-595, shows the effect of these -limitations on the free rural service. In its daily 24-mile course, -visiting over 100 families, the average rural post-wagon handles -less than 26 pounds of mail per day, collected and delivered; it -collects less than 1 pound. The average rural family posts hardly one -merchandise parcel a year. Its total merchandise traffic dispatched -and received is less than 10 parcels a year. The postal revenue from -its entire merchandise traffic is less than 50 cents a year. The -total cancellations of the average carrier in 1904 amounted to only -$10.64 a month; to less than $132 a year. With the same limitations in -1909, his postal income must remain practically the same. Meanwhile -the 4,000,000 families on the rural routes go to and from their post -towns and their homes, carrying their supplies and their produce at a -needless expense--estimated at only 50 cents a week per family--of over -$100,000,000 a year. - -And the postal weighings of 1907 disclose a similar state of things -in the general-merchandise traffic of the post-office. Of the general -postal business, the merchandise traffic represents: - - Per cent. - In number of parcels 1.12 - In weight 4.79 - In revenue 4.44 - -The weight of the average merchandise postal parcel is 5.45 ounces; -its average haul is 687 miles. The merchandise tax, 1 cent per ounce -or fraction thereof, amounts in practice to 17.23 cents per pound. -The average family posts less than 9 parcels a year--less than 3 -pounds--and pays for the service about 50 cents a year. - -The local merchandise mailed in October, 1907, at 17 representative -post-offices of Alabama weighed only 65 pounds, at 16 representative -post-offices of Arkansas only 14 pounds, at 18 representative -post-offices of Iowa only 116 pounds, at 16 representative post-offices -of New Hampshire only 27 pounds, at 16 representative post-offices of -North Carolina only 30 pounds, at 14 representative post-offices of -Oregon only 1 pound, at 14 representative post-offices of Montana only -1 pound, at 14 representative post-offices of Nevada only 4 pounds, at -12 representative post-offices of South Dakota only 15 pounds, and at -14 representative post-offices of Wyoming only 1 pound. - -The weight of the parcels posted in October, 1907, by the 4,000,000 -people of New York City in their local traffic amounted to only 55,918 -pounds, less than 1¼ ounces per family, and in their total traffic to -only 469,111 pounds, about 8 ounces per family. - -The post-office is the most important department of our national -government. Its system of rates--regardless of distance, regardless of -the character or volume of the matter transported, rates determined by -the representatives of the rate payers in Congress assembled on the -basis of the cost of the service rendered--its system of uniform rates -places our whole country on a plane of the most perfect commercial -equality. Up to its limits there can be no possible discriminations -either as to persons, places or things. Up to its limits, the humblest -citizen on the most out-of-the-way rural route is guaranteed the -transport of his supplies and his produce at the same rates as the -biggest corporation in our greatest metropolis. These rates moreover, -may be steadily reduced with the improvement of our transport machinery -and its administration. And yet by our own limitation of this mighty -service we deny ourselves its use almost altogether in local traffic, -and in through traffic confine it to parcels of less than 6 ounces. - -Meantime we pay private express companies what “the traffic will bear” -for the transport of our large parcels, and in our local traffic -cheerfully carry our small parcels in our pockets or hand bags or -dispatch them by private messengers or private vehicles. Such petty -work is beneath the notice of our great private express companies. In -many small places they have no offices. Even in our great cities they -have no regular daily courses, save in a few business districts. If -the ordinary city resident would dispatch a parcel by express, he must -go after an express wagon on foot or by telephone. The post-man--our -public expressman--comes to our doors one, two, three, four times a -day, or oftener. We have but to substitute a machine post for our -overburdened foot post and, with a perfected system of collection and -delivery of insured parcels at reasonable rates, we shall have a postal -express at hand, ready and competent to do our bidding on our own terms -and conditions. - -The possibilities of such a service were illustrated some years ago, -when James L. Cowles, of the Postal Progress League, dispatched an -11-pound suit case from New York City to New Haven, Conn. Prepaid as -a sealed parcel, with a special-delivery stamp affixed, the suit case -was mailed at a branch post-office on Fifth avenue about 5 o’clock in -the afternoon; it was delivered at its address in New Haven before 10 -o’clock the same evening. On another occasion Mr. Cowles telegraphed -from Philadelphia about noon for a parcel of stationery to be sent him -from his office, 361 Broadway, New York City. The Philadelphia postman -delivered the parcel at Mr. Cowles’ hotel before 8 o’clock the same -evening. - -In his testimony before the congressional committee on railway mail -pay, in 1898, Mr. H. S. Julier, of the American Express Company, -testified that the weight of the average express parcel is 25 pounds; -its average charge is 50 cents; its average haul in the eastern states -is 100 to 125 miles; in the central states a little more; in the -western states from 175 to 200 miles. In local traffic the ordinary -express charge on the smallest merchandise parcel is 15 cents; in -general traffic, 25 cents. The private express service is chiefly -confined to traffic between cities. To be successful, a business -requiring express service must be located in a large city, where -the different express companies have their headquarters; otherwise -their parcels will often be subjected to two or three express charges -before they reach their destination. The private express company, with -its rates based on the value of the service rendered and determined -according to volume of business, is deadly to the small place and the -small dealer. - -Under the growing differentiation of industry there is a steadily -growing demand for a door-to-door express service of parcels ordered -by telephone, telegram, or by mail. The business can not be done by -private express companies to the public satisfaction. Their machinery -does not reach the rural districts. An extended postal service is the -only public choice. - -As long ago as December 6, 1898, the Merchants’ Association of New York -issued the following statement to the merchants, manufacturers, and -shippers of the State of New York: - - A very large part of every dollar paid by you for express - charges is exorbitant and exacted to pay a monstrous profit to - an unrestrained monopoly. - - Many of you are compelled by present conditions of competition - to use the express service on a large part of your shipments, - and to pay express charges which are from 300 to over 20,000 - per cent of corresponding freight charges. The express charges - on many classes of goods average from 5 to 15 per cent of the - value of the merchandise transported. - - These are the charges that you pay. But many of your strongest - competitors are favored by discriminating rates and pay much - less. - - The express companies are now uncontrolled by law and you - have no recourse against exorbitant charges; you must ship by - express and must pay whatever the express companies see fit to - charge. - -On the 10th of February, 1909, the Merchants’ Association of New York -again returned to their attack upon the express companies. Note their -charges: - - -_Exorbitant Rates_ - -Rates so high in the case of the Adams Express Company as to enable -them to pay dividends of over 80 per cent a year on the amount actually -invested in their business. In 1907 they made a dividend of $24,000,000. - -Excessive charges for collection and delivery varying, on 100-pound -parcels, from 27 cents to $7.79 for similar services. - -Unreasonable restrictions of free delivery service. - -Unreasonable regulation as to size of parcels. - -Unreasonable regulation as to packing. - -Delays in delivery. - -Failure to notify shippers of nondelivery. - -Delays in settlements of claims. - -Delays in returns of undelivered goods. - -Marking parcels 1 to 5 pounds over actual weight, and compelling -consignees to pay for the fictitious increase. - - - - -System of Postal Express. - -David J. Lewis. - - -MR. CHAIRMAN: In December the government issued its first annual -report on the statistics of express companies for the year 1909, which -developed the fact that the average pay of the express companies to -the railways for carrying express matter was about three-quarters -(0.74) of a cent a pound, while the postal reports show that the -government paid for its letter or mail transportation about 4 (4.06) -cents a pound, barring the weight of equipment in both cases. It -was apparent to me at once that the parcels function could not be -successfully or economically discharged by the government on the basis -of letter-transportation rates. And then the economic significance -of another fact developed: It was that the express companies’ -service was at a disadvantage, even greater than that of the post -office, in regard to the nonrailway transportation of its parcels. -The express companies have no agency and at present rates can not -secure an agency to reach nonrailway or rural points. In short, it -appeared that the express companies had exclusive control of one of -the absolutely essential conditions of fast package transport, the -express rate of three-quarters of a cent a pound, while the post -office had equally exclusive possession of the other great agency of -necessary service--the rural delivery system. Common sense indicated -what the solution must be; these two advantages, the railway express -transportation rate and the rural delivery system must be made -cooperative; must be united under one control. The express railway -transportation rate would, if the government parcels amounted to but -one-fourth of the express business, save it, if in its control, at -least $50,000,000 a year, while the addition of rural delivery to the -express business would add to this great service the farming population -of our country at practically no cost to them or the country. The bill -I have introduced for postal express is the result of these conditions. - - -_Principal Provisions of the Postal Express Bill_ - -As I have said, the idea of the bill is to unite in one service the two -great instrumentalities above named, in order that a greatly cheapened -and an even more extended service to the public may be had. For this -purpose the bill provides for the compulsory purchase by condemnation -of the railway-express company contracts and franchises, as well as -the equipment and property devoted to the express business per se, and -their subsequent employment by the postal department in connection -with rural delivery and the postal system. The express-railway -transportation privileges are all the subjects of contracts between the -railways and express companies. They constitute the primary condition -of the express service, and while the equipment and other facilities -are only immediately necessary to a running plant, and their -acquisition is provided for, it is the contracts which constitute the -conditions sine qua non of the service. Happily, there can be no legal -question as to the right of the government to acquire these contracts -and other facilities upon providing just compensation. - - -_Necessity for Postal Express_ - -In addition to those grave needs for such a service, which the majority -of national communities have recognized, as commending its adoption -domestically and internationally, there exist in the United States -supplementary reasons which it is believed render the institution -uncommonly necessary. - -Briefly summarized, they are: - -(_a_) The greater area over which our population is distributed and -correlatively greater transportation distances which consume so much -time by freight that a fast or express service needs to be resorted to -in a larger number of instances than if the journey were short. - -(_b_) The 100-pound minimum and corresponding charge in railway -practice and the inadaptability of railway methods to diminutive -consignments. - -(_c_) The prohibitive minimum charge of the express companies in -respect to small consignments. - -(_d_) Absence of railway “collect and delivery” service and absence of -“collect and delivery” service by express companies as to our farming -population and a large portion of our urban population. - -(_e_) Incalculable waste of transportation effort, so far as made, -in movement of necessaries of life from the farms to points of -consumption, a serious factor in our high cost of living. - -Of course, the need for fast service will depend upon the greatness of -the distance, when demand is immediate, as much as upon the valuable or -perishable character of the shipment. In our country, with an average -haul for freight of 251 miles, from three to ten times as long as in -Europe, the demand for speed to overcome the obstacle of the time -lost in distance, the time-element necessity for an express service -is correspondingly increased; and so the disadvantages of inadequate -or ineconomical express service are vital. The railway organization -of America and its system of practices does not seem adapted to meet -this great need; while its refusal, upon adequate grounds, to accept a -smaller payment than the rate for its minimum shipment of 100 pounds -precludes it from this service even if speed were not prerequisite. -The minimum charge of 25 cents (average 27 cents) imposes an equally -substantial and serious restriction upon the express service as now -conducted; so that when it is considered that the farmers or nonurban, -about half of our population, are virtually excluded from the service -of this great agency, and the express rates by their prohibitive -costliness substantially minimize the service for the urban population, -it is apparent that instead of possessing an express service -commensurate with its needs, the United States has both unexampled -necessity for, and unexampled deficiency in, its dispatch or express -agencies. Add to this situation the tremendous waste and corresponding -costliness of the unorganized country-to-town transportation of our -necessaries, and such almost equally wasteful and quite equally costly -express service as we have, and have we not put a finger on one of the -big leaks which swallow so much of the unprecedented productiveness of -our country? - - -_Prohibitive Express Charges_ - -We should expect express charges to be higher per ton here than abroad, -as much higher as our freight-per-ton charges. But no necessary -economic cause is known which justifies a substantially higher -proportion or ratio of the express to the freight charges here as -compared with other countries. The average express charge per ton here -is shown to be $31.20, while the average freight charge is $1.90 per -ton, giving a ratio of the express charge to the freight charge of 16 -(16.42) to 1. This express charge includes the cost of such collect -and delivery service as is rendered, covering, it is thought, about -90 per cent of the traffic. In the table now inserted this element of -the expense of the express companies for collecting and delivering, -amounting to 11.50 per cent, is excluded, because many of the European -countries and other data do not include this factor of cost. The table -embraces 10 countries, while the specific data upon which the ratios -are based are set forth in Appendix B. All countries have been included -where the express data is clearly distinguishable from general freight -statistics. - - -_Ratios of average express charges to average freight charges in 11 -countries._ - - -----------------------------+----------+----------+---------- - | Average | Average | Ratios of - | express | freight | average - Countries | charge | charge | and - | per ton. | per ton. | freight - | | | charges. - -----------------------------+----------+----------+---------- - Argentina | $6.51 | $1.95 | 3.2-1 - Austria | 3.77 | .74 | 5.0-1 - Belgium | [A]4.92 | .53 | [A]9.3-1 - Denmark | 5.49 | .87 | 6.3-1 - France | 6.88 | .95 | 7.2-1 - Germany | 3.80 | .76 | 5.0-1 - Hungary | 3.68 | .93 | 3.9-1 - Netherlands | 2.43 | .67 | 3.6-1 - Norway | 1.90 | .49 | 3.8-1 - Prussia | 4.32 | .86 | 5.0-1 - +----------+----------+---------- - Average for 10 countries | | | 5.23-1 - United States | 27.61 | 1.90 | 14.53-1 - -----------------------------+----------+----------+---------- - - [A] Belgium delivers parcels. - -From this table it appears that while Argentina charges three times, -Austria five times, Belgium nine times, Denmark six times, France -seven times, Germany (including Prussia) five times, Hungary, the -Netherlands, and Norway, about four times as much for carrying a ton -of express as of freight, the express companies of the United States -charge nearly fifteen times as much. - -No further statement need be made to show that the charges of -American express companies are prohibitively excessive, and such -as to disqualify this service as a national economic agency. The -instances given represent merchandise carried by passenger trains -in all instances, and while higher charges for both the express and -freight tonnage in America are justified by the longer haul, there is -no necessary economic reason for a higher ratio of express charges -to freight charges. The presence of the “express company” is the -only circumstance distinguishing express transportation here from -that of the instances cited. In those the “express company” has no -part; the work is done exclusively by the railways. As we shall see -later, the deficiencies of the express companies are constitutional, -not gratuitous merely, and are such as can not be remedied through -corporate agencies. - - -_Inadequacy of Various Proposals--Regulation_ - -We have seen that the present express fails to reach the farm, in -itself a fundamental objection to its adequacy. It may be suggested -that where its high charges are such as to inhibit the traffic, they -might be corrected by appeals for reductions to the Interstate Commerce -Commission. A glance at the express report for 1909, it is true, will -show that the profits of the companies are clearly out of normal -proportion to the investment. But it will also show that such profits -amount to but 8.44 per cent of the gross receipts, i. e., to only 8.44 -per cent of the rates charged. So that even if all the profits were -taken away, the modified rates would show but a wholly inadequate -reduction; so that the desired relief could not thus be obtained. As a -matter of course, no such reduction would even be asked. No one would -wish that they conduct the business without a profit. But in practice -even when the justification for a reduction is present, and the power -and purpose active, the regulating board will always hesitate to even -substantially reduce a rate in the fear of unduly trenching on private -rights. - -It was this principle which Bismarck had in mind when in connection -with a similar subject he spoke of-- - - The attempts to bring about reform by (regulatory) laws have - shown the futility of hoping for a satisfactory improvement - through legal (regulatory) measures, without trenching - materially on established rights and interests. (Parsons, The - Railways and the People, p. 318.) - -With a margin of but 8 per cent of the rate to work on, the board would -feel this constraint in a marked way; for under substantially reduced -rates a very slight perturbation of the customary traffic might place -in danger the whole net return. Substantial relief in the way of -regulation is thus shown to be wholly impracticable. - - -_Various Parcels-Post Schemes_ - -There remains to discuss the numerous proposals for limited carriage of -parcels up to 11 pounds, and so forth, by the postal department. These -all concern the present railway status quo of the post office. It is -apparent that such proposals can only result in two things--the express -companies taking the major portion of the short-haul, profitable -traffic and the postal department getting the long-haul and losing -traffic. But there is another fact recently disclosed by the express -report--a fact rendering any of these proposals, so far as they involve -railway transportation, wholly untenable. - -The Post Office Department pays an average of 4 (4.06) cents per pound -to the railways for carrying the mail, excluding equipment. - -The express companies pay an average of three-quarters (0.74) of a cent -per pound for carriage of express matter, excluding equipment. - -It is manifest that not even the government could render substantial -service under conditions so utterly unequal. It could not pay--what -we shall see when we come to consider the length of the express and -the mail hauls amounts to--about three times as much as the express -companies pay to the railways for carrying its parcels. One is mail -service, which is naturally more costly; the other more closely -resembles a fast freight service, which lies midway between the mail -and the freight in the weight cost of railway movement. - -Other difficulties in such proposals, based on the status quo of the -post office, need only be suggested: - -(_a_) The government would have to install urban delivery wagons at a -cost its traffic might not justify. - -(_b_) The express companies still in the field, the wastes of service -would merely be increased by the entrance of the Postal Department, and -the people would have to pay it all. - -(_c_) The government, being a moral agent with the inelastic rate -proposed, would be at the mercy of its unrestrained competitors. - -(_d_) The express companies’ contracts with the railways permit them -to reduce their compensation to the railways to the point of 150 per -cent of the freight rate--i. e., from the present ratio of about 8 -(7.80) to 1 of the freight rate to about 1½. Of course, they could not -go to this extreme without destroying their own profits, but their -contracts permit them to go as far as they might wish. Thus, while the -government in the beginning might have to pay about three times as much -to the railways for its parcels per pound, in a struggle the express -companies could exaggerate this disparity to any point they wished for -the purpose of destroying the postal department as a competitor. - - -_Essential Elements of an Adequate System_ - -For the sake of brevity we state these elements categorically: - -(_a_) Fast service. - -(_b_) Greatest economically feasible extension of delivery and collect -service, necessitating coordination with both urban and rural free -delivery systems. - -(_c_) Express railway contracts to secure the relatively low railway -rates. - -(_d_) Cheap capital charges. - -(_e_) Reliable public-service motive. - -(_f_) Economies of single organization, in which all existing -serviceable plants should be merged. - -With regard to the element of fast service, discussion is unnecessary. -It is now commonly rendered by the railways for the express companies -in connection with the passenger service. It seems worthy of -suggestion, however, that a single organization like the post office -might on the strong lines of traffic, where carload lots might be -regularly obtainable, employ for certain kinds of matter the fast -freight service, profiting enough on the carload rate reductions to -fully cover the expense of delivery and collection, the regular railway -100-pound charges to be paid to the postal express by the shipper. It -is further suggested that in this way agricultural products might be -received through the rural free delivery in small allotments from -the truck gardeners and farmers, consolidated into carload lots and -conveyed on the trunk lines to the branch lines and distributed over -the branches to destination by passenger trains. The Prussians do, -in fact, have this latter service, for which the charge is based on -a tariff of twice the freight rate, the regular service by passenger -train calling for a charge of four times the freight rate. The railways -would now perform such service if, of course, the collect service -existed to gather the shipments from the country and assemble them. - -It is obvious that the element most wanting is the service described -as “collect and delivery,” necessary between consignor and railway at -the beginning and railway and consignee at the conclusion of the act of -transportation. Our country is utterly deficient in this respect as to -the “country” or farming population. In towns of about 3,000 or 4,000 -population up the present express companies do render this service -for such traffic as their rates permit to move; but what is required -is a service as extensive as the postal agency, which reaches cities, -towns, and country with the degrees of efficiency of the urban and -rural deliveries, conceded to far excel such delivery as the express -companies give. - -There can be no doubt that with regard to this collect and delivery the -postal department is the only agency to which we can look for a service -sufficiently extensive to be really efficient. It only remains to -observe that with regard to the farming part of the country the service -already exists in the form of rural free delivery, equipped and paid -for, and actually waiting with empty wagons to receive and execute the -work. - - -_Advantages of Postal Express_ - -In three years under a postal administration it is believed that the -reformed system will produce: - -(a) A minimum charge of 7 cents for the first pound, graduated to 17 -cents for a 11-pound package, for average distances. - -(b) General reductions of about 28 per cent in all merchandise charges. - -(c) The extension of the service to the out-of-town and agricultural -population. - -(d) The elevation of the employees to the plane of the postal service. - -(e) The coordination of country supply of the vital necessaries with -urban demand by a cheap and regular collect and delivery service. - -(f) As a result, a greater attractiveness in rural life and improved -highways. - -(g) In 10 years’ time, with the development of the traffic, a reduction -of rates to about one-half of the present rates. - -It is as difficult to describe in detail the manifold economic -and social results of a great agency like this as to give a bill -of particulars of the benefits of the postal system. And in this -connection it seems not irrelevant to suggest that a proper -coordination of the railway mail with the railway express service may -indeed render penny postage feasible. As things are now the rural -free-delivery agency does not bring a direct fiscal return to pay -for itself. In a few years, as the traffic develops in parcels and -agricultural products, the proposed system would enable it to do so. -This would assure a considerable financial gift to the account of penny -postage. - - -_The Agricultural Post_ - -In the present state of things the truck farmer must devote a large -part of his time to marketing; that is, to the transportation of his -product, however little it may be, to the place of demand. He must -also for this purpose provide himself with transportation facilities, -however small his business. These involve a horse, and its maintenance -and care, and a barn; and the expense of both during the unproductive -seasons. And yet in a socio-economic sense his work and expense of -transportation is the smallest element in his service to the public, -although it requires the maximum of upkeep work and expense, if not -of capital. The proposed postal collect and delivery eliminates all -these, and would enable the truck farmer to enter into the business on -a minimum of capital, and pursue it on a minimum of labor and expense. -The field service of a horse he could hire as occasion might require. -Thus the truck-farming industry would receive a necessary impetus and -the cost of such foods be greatly reduced to the consumer, saying -nothing of the advantage in quality coming from a speedier forwarding -to the market by daily allotments instead of the delays now incurred to -garner a worth-while load. - -This application of postal express, with its thoroughly articulated -service and regular schedules, may be taken as illustrative of the -close relations which may be established between the rural producer and -town consumer, as well as between producers and merchants generally. - -It is manifestly unfair to the proposition to judge its social value -on a mere computation of the savings in rates which may be made. While -this saving would amount to some $35,000,000 a year on the traffic of -1909, and from seventy to a hundred millions a year when the traffic -reaches its normal dimensions, yet as large benefits will follow in -clearing the prohibitive rate clogs from this necessary conduit of -commerce that it may freely discharge its normal output, in placing the -50,000 express employees on a postal basis, in rendering it easier to -engage in and market food production, to relieve the towns and cities -of high prices for necessaries of life, and relieve them, too, of the -overplus of labor, and, perhaps, too, in aiding in reversing that -tendency of population movement from the country to urban centers to -which is due the most aggravated and most discouraging social problems -of our time. - - - - -Hearings before the Committee on the Post-Office and Post-Roads. April -20-29, 1910. pp. 296-7. - -Postal Savings Bank and Parcels Post. - -Letter of Dr. Barth. - - -Whilst the postal savings-banks system became firmly established -some time ago in Belgium, France, Great Britain, Italy, Holland, -Austro-Hungary, Russia, and Sweden, all efforts have failed to -introduce the system into the German Empire. In the year 1885 the -draft of a postal savings-bank law was laid before the Reichstag. The -draft never came out of the committee. The principal reason of this -opposition lay in the competitive interest of the many local savings -banks existing in Germany, which are generally under the control of -commercial boards of directors. Since the frustration of the plans for -the law in the year 1885 no further serious efforts have been made to -introduce postal savings banks. - -All the greater has been the development of the parcels-post traffic -with us. This traffic dates in Prussia back to the eighteenth century. -Under Frederick William I there already had been introduced a postal -monopoly (the exclusive right of the mail to forward packages) for -packages up to 20 pounds. Under Frederick the Great this monopoly was -increased to 40 pounds. By a postal law of June 5, 1852, it was again -reduced to 20 pounds, and only entirely abolished by the law of March -20, 1860. This postal monopoly has never been revived in Germany; -nevertheless, the parcel postal traffic has developed tremendously -without the protection of a monopoly. In Germany the weight for postal -parcels has now been set at 50 kilograms (110 3-10 pounds); while, as -is well known, there has also existed since 1885 European international -parcels-post traffic with a maximum weight limit of 5 kilograms (about -11 pounds). Only very few articles within the aforementioned weight -limits are excluded from the postal traffic. Even live singing birds, -fish, crabs, fresh flowers, grapes, etc., are sent by us in postal -parcels. The parcels-post service in Berlin employs about 1,000 -officials. The rate within the postal territories of Germany and -Austro-Hungary is 25 pfennigs (6 cents) for packages up to 5 kilograms -(about 11 pounds) in weight and 10 geographical miles in distance: at -50 pfennigs (12 cents) for further distances. With heavier parcels the -rate increases rapidly for every kilogram (2½ pounds) in excess of 11 -pounds with the growing distance, so that, for instance, at a distance -of 150 geographical miles every kilogram over 5 costs 50 pfennigs (12 -cents) more. This rate proves that the post lays its principal stress -on receiving parcels up to 5 kilograms (11 pounds) in weight. - -The parcels-post traffic in 10-pound packages is therefore the normal -one. For many trades and producing branches a very strong direct -traffic between the producer and the consumer has grown up in these -10-pound packages, and many articles which in the locality in which -they were produced were either not utilizable, or forced to sale at -a very low figure, have found a market which without the cheap 50 -pfennig (12 cents) postage they would never have attained. Mushrooms -gathered in the forests of Masuren near the Russian frontier come to -Berlin in postal parcels. Large crabs caught in the waters of western -Prussia come even to Paris. We ourselves, for example, obtain for our -household through the parcels post meat from Silesia, butter from -eastern Prussia, eggs from Mecklenburg, melons from Hungary, etc. For -the household this is not only cheaper but also more convenient than -the purchase in the market halls, for the post brings the parcels -(for delivery sum of 15 pfennigs; 3½ cents) to the door, also calls -for parcels, cashes in the amount in c. o. d. deliveries, in short, -makes it extremely convenient for the order. It is clear that this -postal traffic forced out many middlemen; the retailers especially in -small places have been made to feel very keenly the competition of -the large forwarding houses in the capital cities. Their complaints -therefore were formerly directed very actively against the cheap -parcels postage. But since the flat land in turn could derive benefits -for its agricultural products, such as fruits, meats, butter, eggs, -etc., from these self-same cheap rates, the complaints of the retailers -became silenced after awhile as far as the question refers to the -cheap parcels rates. They now turn so much the livelier against large -warehouses and forwarding businesses for whom one is seeking through -all sorts of lawful tricks to make the competition more difficult. -The parcels-post traffic has meanwhile become so firmly rooted that -it seems impossible to upset it. Considered from a politic-economic -viewpoint it presents itself as a most important and very beneficent -branch of the whole system transport. - -Following the German example in the United States would, I believe, -be of enormous advantage, particularly for the agricultural districts -surrounding the large cities. For the producer of eggs, poultry, -butter, vegetables, fruits there would develop, with a cheap -parcels-post rate, entirely new market possibilities; also the -decentralization of many branches of industry would to a certain degree -become a possibility. - - - - -Monthly Consular and Trade Reports. No. 329. pp. 104-6. February, 1908. - -German Parcels Post. - - -Consul W. T. Fee, of Bremen, states that the parcels post system of -Germany, as well as most of the railroads, is owned by and is under the -control and operation of the Imperial government. He adds: - -The express companies in Germany are less developed than those in the -United States, where the largest part of parcels forwarded are handled -by these companies. Under the German parcel-post system, parcels are -divided into five classes namely: (1) Parcels with value declared; (2) -registered parcels; (3) common parcels, value neither declared nor -registered; (4) collect-on-delivery parcels; and (5) urgent parcels. -Each shipment of parcels must be accompanied by a waybill called -“packet addressee”; and no more than three packages which must be of -the same class, and which must bear the same address, are to be entered -on one waybill. Each c. o. d. or urgent package, however, must have its -own waybill. - -Forms of waybills, with the respective postage stamp of the amount -of the charge printed thereon, are furnished by the postoffices at -the price of the postage charge, while waybills, without this stamps -imprint, are sold by the postoffices at the price of 1.19 cents for -five pieces. Forms of waybills, which are purchased from other sources, -must conform in every respect with those furnished by the postoffice -department. There are two different kinds of waybills in use, foreign -and domestic. - -At times of increased postal traffic, before Easter, Whitsuntide -and Christmas, a waybill for each package is required. The prices -charged by the postoffice for forwarding parcels vary according to the -weight of the packages and distance. The fees charged are shown in the -following statement: - - For distance up to-- over - - 46 92 230 461 702 - miles miles miles miles miles - - For parcels weighing up to-- - cents - - 11 pounds 5.9 11.9 11.9 11.9 11.9 - - 15.4 pounds 7.1 14.2 16.6 19.0 23.8 - - 17.6 pounds 8.3 16.6 21.4 26.18 35.7 - - 19.8 pounds 10.7 21.4 30.9 40.4 59.5 - - 22 pounds 11.9 23.8 35.7 47.6 71.4 - - additional 2.2 pounds 1.1 2.38 4.76 7.1 11.9 - -The maximum weight for parcels to be forwarded by post is 110 pounds. - -For registered packages an additional fee of 4.76 cents is charged, -while the insurance fee for packages with declared value is 1.19 cents -for each $71.40 or fraction thereof. For “not-prepaid” parcels up to -11 pounds a collection fee of 2.38 cents is levied. Besides this, in -places where there is delivery to the house, an extra fee of 3.5 cents -is charged for packages weighing up to 11 pounds. - -Packages may be sent c. o. d. in the German Empire if the amount to be -collected does not exceed $190.40. These c. o. d. packages, if payment -is not made at presentation, will be held for seven days. Meanwhile -another request will be made on the consignee to pay the amount -charged, and then if payment is refused the package is returned to the -consignor. The fee charged for c. o. d. packages in addition to the -ordinary postage is 2.38 cents, and the fee for the postal money order, -by means of which the amount collected is returned to the consignor is -charged. The charges for these money orders for amounts not exceeding -$1.19 are 2.38 cents; not to exceed $23.80, 4.76 cents; $47.60, 7.14 -cents; $95.20, 9.52 cents; $142.80, 11.9 cents; and $190.40, 14.28. - -Printed matter, samples without value, newspapers and business cards do -not come under the heading of parcels or packages, different rates of -postage and also different limits of weight and measure being provided -for these classes. - -In case of loss the postoffice refunds for common packages at the -maximum rate of 71.4 cents per 1.1 pounds, and for a registered package -at least $10. - -Parcels are handled by the postoffice entirely separate from letters -and other mail matter. A request may be sent to the postoffice on an -unfranked postal card to call for a package, whereupon the parcelpost -wagon will call at the place designated in the request. An extra charge -of 2.38 cents is made for this service, regardless of the size or -weight of the package. - -Under ordinary circumstances, a package sent from Bremen to Munich, -Bavaria, a distance of 470 miles, thus crossing Germany from north -to south, will be delivered on the evening of the second or on the -morning of the third day. If it weighs up to 11 pounds, it will cost -11.9 cents. If it is a c. o. d. package for $142.80 it will cost 11.9 -cents for postage, 2.38 cents for collection fee, 11.9 cents for return -money order, and 1.19 cents for delivery charge for the money order, in -all 27.37 cents. The same package could be sent at the same rate from -Bremen to Königsberg, a distance of 579 miles. - -There is no restriction as to the size of the packages to be shipped -within the German Empire, as long as they are not cumbersome, but the -size of packages to foreign countries, as a rule, must not exceed 23.6 -inches in each dimension. Exceptions from this rule are made for goods -like umbrellas, canes, charts, furs, plants, etc., which may measure -39.37 inches in length, if they do not exceed 7.87 inches in breadth -and height. Besides this there is a space limit of 25 cubic decimeters -(1 cubic decimeter = .035 cubic foot) for packages destined for -Algiers, Tunis, Santo Domingo, and the French colonies, and 20 cubic -decimeters for packages to Bolivia, Brazil, and Canada, while packages -for Great Britain and nearly all its colonies may measure one meter in -each dimension, with a space limit of 54 cubic decimeters. Packages to -foreign countries, exceeding the before-mentioned limit in weight and -measurement, may be shipped as “postal freight.” The rates for such -shipments, however, vary too much to be quoted here, and they are, in -most instances, subject to contracts of the postoffice department with -prominent forwarding agents. - -For packages to the United States--that is New York, Jersey City, -and Hoboken--the charges are from 30 cents for 2.2 pounds up to 64 -cents for 11 pounds. To all other places in the United States, Alaska -excepted, the rates are 55 cents for 2.2 pounds up to 88 cents for 11 -pounds. - -According to a postal treaty between the United States and Germany, -which is in force since October 1, 1907, packages, which for any reason -cannot be delivered will not be returned after a period of thirty days, -as heretofore, but the consignor will be informed of this fact by the -postoffice in order to give him a chance to dispose of the package in -some other way. If the consignor has not disposed of the package within -two months it will be returned to him as undeliverable. - -For special delivery of a package 5.8 cents is charged, and for urgent -packages, which will be forwarded by the fastest mail facilities, a -charge of 23.8 cents is made, in addition to the regular postage and -the special delivery fee collected for each package. - - - - -AFFIRMATIVE DISCUSSION - - - - -Our Postal Express. pp. 1-6. - -William Sulzer. - - -MR. SPEAKER: I am in favor of a parcels post. I believe the people of -the country generally favor it, and I feel confident its establishment -will be of inestimable benefit and advantage to all concerned. The -post-office is one of the oldest of governmental institutions, an -agency established by the earliest civilization to enable them to -inform themselves as to the plans and movements of their friends and -foes; and from the dawn of history the only limit upon this service has -been the capacity of the existing transport machinery. - -The cursus publicus of imperial Rome--the post-office of the -Roman Cæsars--covered their entire business of transportation and -transmission, and with its splendid post-roads, swift post-horses, -and ox post-wagons the Roman post-office was a mechanism far wider -in its scope than that of our modern post-office; and except for the -use of mechanical power, the old Roman post was far more efficient in -its service of the Roman rulers than is our modern post-office in the -service of the American citizen. - -The evil of the Roman post-office and of the royal postal services that -succeeded it was their common restriction to the enrichment of the -ruling powers. They were the prototypes of our modern private railway -and express companies, which have for their chief end the enrichment -of their managers rather than the promotion of the public welfare. In -this country the citizen owns the post-office and wants to use it as -his transportation company. Its end is to keep him informed as to what -his representatives are doing at the centers of public business, to -make known to them his wishes, and to provide means by which he may -communicate with his fellow-citizens for their mutual benefit, and to -supply his wants and dispose of his wares at the least possible cost, -in the shortest possible time, and with the greatest possible security. - -The postal system of rates, regardless of distance, regardless of the -character of the matter transported, and regardless of the volume of -the patron’s business, eminently fits it for this great service. That -it will sooner or later be greatly extended over the entire field of -public transportation, is absolutely certain; and the people will -duly appreciate the aid of those who assist in its extension and -development. As far back as 1837, Rowland Hill, of England, promulgated -to the world the law that once a public transport service is in -operation, the cost of its use is regardless the distance traversed -upon the moving machinery by any unit of traffic within its capacity, -and upon this law he established the English penny-letter post of 1839. - -Instead of a taxing machine, a contrivance for making money, -the post-office should be an agency for good, reaching out its -multitudinous hands with help and comfort into all the homes in our -widespread land. - -Without the post-office where would be that national unity, with its -guaranty of equal rights to all, which is the glory of the sisterhood -of states? - -The postal savings system and parcels post was inaugurated in England -largely through the efforts of the great Commoner, William E. -Gladstone. Near the close of his life he made the following statement -about it: - - The post-office savings bank and parcels post is the most - important institution which has been created in the last fifty - years for the welfare of the people. I consider the act which - called the institution into existence as the most useful and - fruitful of my long career. - -It is because we realize these truths so keenly that we are so -persistent in urging favorable consideration of a parcels post. Its -only fault is its conservatism. What this country now needs, what -Congress should give it, is a parcels post covering much of the -business of public transportation. - -In April last representatives of at least 10,000,000 American voters, -including the great agricultural associations of the country, National -Grange, the Farmers’ Union, the Farmers’ National Congress, Retail Dry -Goods Association of New York, the Associated Retailers of St. Louis, -the manufacturing perfumers of the United States, the American Florist -Association, and others, appeared before the House Postal Committee, -demanding a domestic express post as extended and as cheap as that -provided by the Postmaster-General in our foreign postal service. The -argument in behalf of this legislation, with its 4-pound weight limit, -had then been before the committee for many months, but the bill was -not up to the demands of these friends of the post-office. The report -of the hearing showed that the public wanted an 11-pound service at -least. Seldom, if ever, has any proposition received a stronger public -support, and it seemed as if the House Committee on Post-Offices would -be obliged to report at least some legislation back to the House for -its consideration. - -Their answer finally came on the 27th of May in the shape of H. R. -26348, introduced by Chairman John W. Weeks, which provides: - - That all mail matter of the fourth class shall be subject - to examination and to a postage charge at the rate of - three-fourths of 1 cent an ounce or fraction thereof, to - be prepaid by stamps affixed--stamps of the following - denominations: - - Cents. - - 1 ounce ¾ - 2 ounces 1½ - 3 ounces 2¼ - 4 ounces 3 - 5 ounces 3¾ - 6 ounces 4½ - 7 ounces 5¼ - 8 ounces 6 - -On the 1st of June Mr. Weeks wrote to the secretary of the Postal -Progress League as follows: - - It does not seem to me likely that any other parcels-post - legislation than possibly the bill which I introduced last - week--this bill--providing for the reduction in rate on - fourth-class matter, will be considered at this session of - Congress. - -This means that for at least two years more the American people are -to be left subject to the extortions of the rich and powerful express -companies, while we have in the post-office a well-equipped service of -our own through which much of the people’s business now carried on by -these companies could be done quicker and at infinitely less cost. - -Mr. Speaker, if the powers arraigned against the post-office continue -their efforts to limit its functions in behalf of private interests, -they will soon find themselves confronted with a Congress pledged to -extend the service of the post-office to a much larger degree of the -public transmission business; and hence, I think it wise that my bill -should now be brought before the House for immediate consideration. - - - - -World’s Work. 21: 14248-51. April, 1911. - -Parcels Post and the Retailer. - -Fremont Rider. - - -Of all the arguments against a parcels post by far the most venerable -is that of financial disaster; and even April 1911 finds many an -opponent of a parcels post uttering gloomy prophecies of the enormous -losses which the system would entail, losses which would have to be -met, as he takes pains to point out, by an already bankrupt post office -department. - -On the other hand, the men best acquainted both with the problem of -transportation and its cost and with the parcels post as it has been -worked out abroad, go so far as to say, that so far from being an -expense, a parcels post would probably be the most profitable business -venture into which the United States government ever embarked. In fact -a private parcels post, in certain of the metropolitan districts at -least, would probably be started by private capital were it not for one -thing--the growing agitation for a government parcels post which would -render valueless the plant of the private company. - -The plan of this private parcels post, in direct competition with the -present express companies is no chimera.... Every thinking person -marvels at the economic waste in the present day methods of city -delivery. By your house in Yonkers, for instance, if you happen to -live in Yonkers, there now rattles, once or twice daily, the wagons -of your butcher, your baker, your laundryman, your milkman, and your -grocer, as well as those of the various butchers, bakers, laundrymen, -milkmen, and grocerymen of your neighbors, all covering in staggeringly -wasteful duplication, the same route. Besides them, up from the city -come, in further duplication and longer distance waste, the wagons -of the nine different New York department stores that deliver in -Yonkers, the wagons of the four local express companies that divide the -“independent” business, and those of the two general express companies -which do the high-priced long distance business. Yet, when you think -of it, one wagon could come to you three times a day and do the work -of all these people, more effectively and at one-tenth of the present -total expense. - -You buy a dollar’s worth of groceries of John Jones, the grocer. The -whole package, bread, milk, eggs, butter, and vegetables, weighs, -perhaps, ten pounds. A company doing all the delivery business of a -town, centralized, complete, without waste labor or waste mileage, -stopping its motor wagons two or three times a day at every house on -every street, can make money delivering that ten pounds for six cents. -It now costs Jones, sending out his boy and wagon to a dozen odd houses -scattered all over town, two or three times that amount. - -But such a private parcels post will not be undertaken because of the -fear that the government may enter the field. Yet so far at least, -although in the post office the government has most of the plant -necessary to carry on such a business, it cannot be persuaded to go -into it. - -The most exasperating reason for this inactivity is the legislative -assumption that our present “parcels post” approaches perfection. The -fact is, of course, that the United States has no parcels post in the -sense in which the term is in accepted international use. The present -fourth class rate is but little used in this country simply because -it is prohibitively high. To send ten pounds of merchandise from New -York to Philadelphia involves, not merely the indefensible nuisance of -separating it for mail transportation into three packages, but a charge -of $1.60. Naturally, instead, the merchandise is sent in one parcel by -express for fifty cents. As the work done by the express company, it -is needless to note, gives them a very handsome profit indeed, it is -evident that by far the larger portion of the government’s $1.60 in -this case would be sheer profit--if the post office were as efficiently -conducted as the express company. - -The express company, however, does not attempt to carry a ten pound -package from New York to Seattle for fifty cents. Such long and -profitless hauls they leave for Uncle Sam. Yet, even so, with all the -cream of the parcel business continually and inevitably going to the -express companies, the Post Office Department according to its reports -makes a profit in its “parcels post” business. - -Of course were the post office rate from New York to Philadelphia a -real parcels post rate, that is, for example, 20 cents for ten pounds -instead of $1.60, there would be 1,000 pounds of merchandise so sent -where there is one sent today. People will use a parcels post when it -becomes cheap enough to be an economic possibility, and they will use -it enormously, as experience elsewhere has abundantly and conclusively -proved. Until then they will use the fourth class postal rate only for -the occasional cross continental parcel on which the express rate soars -out of all reach, or for the small parcel under a pound in weight on -which the fourth class rate is less than the express companies’ minimum -charge. - -The four vital arguments (the four great express companies) against a -parcels post, once so succinctly enumerated by Mr. Wanamaker, and the -other hoary arguments sampled above, have, however, of late years been -bolstered by another--the welfare of the “small country retailer”; and -round the great fear of a vague but very horrible something called -“trade centralization” the battle for parcels post is at present being -waged. - -It has been taken for granted that the small country retailer will -be put out of business by the parcels post with its low delivery -charges--yet there are stores in Yonkers, Plainfield, etc., in spite of -the fact that the New York department stores deliver in these places -free. - -Let us examine another aspect of this -death-of-the-small-retailer-fattening-of-the-mail-order-trust-bogey a -minute, and see whether a parcels post means really a more centralized -basis of distribution, or a less. - -Speaking very roughly, there are in the world two great tides of -merchandise traffic: one of raw materials, of which food products is -the most important, from the farmer to the urban consumer; one of -manufactured products--to wear, to use, or to eat (as refined sugar or -prepared breakfast food)--from the urban maker to the farmer consumer. - -Surprising as it may seem the parcels post argument has dealt almost -entirely with the latter tide: of the former tide, even more important, -as I think I can show, very little has been said. - -Let us look for a moment into our existing high cost of transportation, -and therefore, decentralized distribution of farm products. - -In New York the farmer sells his milk for--these figures are quoted -very roughly and without elaboration but they will give my point--2 -cents a quart. He sells it, usually, to one of two or three--there is -considerable evidence that they all act in agreement as one--gigantic -milk companies (of which Borden’s is the largest) which bring it into -the city and distribute it. The ultimate consumer--again I give a rough -figure--pays 10 cents a quart. The other 8 cents is the “distributing -cost”; and in each case it goes, mind you, to two great corporations, -a milk company and an express (or a rail-road) company. Is this that -decentralized distribution that the defenders of the express companies -in and before our Committee have eulogized. - -Take almost any other farm product, strawberries, for example. The -farmer, who grows them, gets 3 cents a basket. Then begins a long line -of tolls: the express company, 3 cents; the commission merchant, 2 -cents (he claims, and often with reason, that his “spoilage” is high); -the jobber 1 cent; the small retailer--delicatessen store, corner -grocery or street cart vendor--3 cents (it “costs 25 per cent. to do -business” he says, and it does too). The ultimate consumer pays 12 -cents a basket, sometimes more, sometimes, when the market is glutted, -a little less. Here is 9 cents of “distributive costs” of which but -3 went to our friend, the “small retailer.” The rest went to more or -less centralized distributing agencies. Now suppose on the other hand -that the farmer could send his products direct to his list of regular -customers in the city. It would be perfectly feasible with a parcels -post. Strawberries, which the farmer would get 6 cents a basket for -(double what he gets now) could be delivered at your breakfast table -the next morning after picking instead of two or three days old in the -triple transit of commission merchant and his storage place, jobber and -his trans-shipment, retailer and his store, and finally to you. And for -this infinitely better article you would pay only 8 cents (2 cents for -the parcels post) instead of the former 12. - -There are only three factors, the farmer, the government parcels post, -and you! This is not theory: it is being done in England, in Germany, -in Japan, and in almost every other civilized country in the world -every day; and has been done for years. - -And as for the mail order business bogey, it would not be a bogey in -the country districts because every farmer would be running a little -mail order business of his own, shipping his eggs and butter pats -and comb honey and fresh fruit and vegetables by mail right to his -customers, on their standing or postal card orders, getting enough -for his produce to make small farming worth while, but giving the -consumer better goods at a big saving. Cost of living! There is no -other revolution in the methods of distribution that would make so much -difference in the cost of living as a thoroughgoing parcels post would -work. And instead of greater centralization it would be almost the -ultimate of trade decentralization. - -Or, let us look at the thing the other way round. What is the chain -of trade from urban producer of manufactured articles to the country -retailer and consumer? Is there any decentralized purchasing now except -by mail? The farmer buys of the small retailer. But the retailer -buys of the lesser jobber and he of the main jobber and he of the -manufacturer; and this is true whether the product be canned goods or -dry goods. Freight shipments in bulk can underbid single shipments by -mail or express; and the present system of distribution, cumbersome and -expensive as it is to the ultimate consumer, is nevertheless cheaper -than direct single shipments at the present mail or express rates. -The moment that you introduce bulk shipments into any distributive -system you necessarily introduce a middleman somewhere to divide up -that bulk shipment for individual consumers; and the greater the bulk -economically shipped the more middlemen there will be between producer -and consumer. - -Now where the parcels post could afford a cheaper way of doing the -distributing than the machinery at present in use, the people ought -to have the benefit of it; but in spite of the obvious benefits of a -parcels post it is not wise to jump to the ultimate conclusion. No one -would be rash enough to say that the present system of retail selling -is entirely wrong. Even if the flat-rate, “zoneless” parcels post were -established there are certain kinds of goods--books, for example, in -which every article is a “novelty” which must be personally handled -before choice and purchase, in which a local retailer with a display -is, if not essential, at least a great convenience. - -But so far we have been considering an ideal, flat-rate parcels post, -without that “zone” provision which is an important provision in -the bills and proposals for a parcels post which are now being most -actively agitated. - -The zone system of parcels post proposes, roughly, a flat rate per -pound and per additional pound within the limits of any delivery office -(that is a service which involves no transfer from one post office to -another) and a rate considerably heavier (but still much less than -the present fourth-class mail or express rate) for delivery elsewhere -in the United States. This would furnish the cross-roads store with -a most convenient delivery system and furnish it at a cheaper price -than its city rivals could secure it. The local retailer would have -the advantage of the difference between the two charges. To give this -advantage to the local retailer is probably wise from the standpoint -of general public policy. The small retailer in the country does -the public a very actual and very valuable service. To have a stock -displayed for selection is often an assistance in purchasing; there -are certain things which cannot in any case, be bought by mail; there -are other things which may sometimes preferably be bought direct, just -as most people like, occasionally at least, “to shop”; there is a -welcome personal touch in retailing which is lost in the long distance -purchase. For these and other reasons the retail store will remain, -stripped of overcompetition and non-essential distributive agents, -competing with the parcels post, not in price so much, as in the kind -and quality of service. That is the way the small retailer in Germany -had adapted himself to the parcels post; and although in his case -there is no zone preferential to aid him, he has made good. - -After all, there is the gist of the answer to those who oppose a -parcels post on anti-centralization grounds. They speak as though there -were but one factor in retailing--price. As a matter of fact there -are many factors, and the best students of retailing methods consider -service one of the most important. With a parcels post established the -public would be getting value for its money in cheapness or service, as -it chose; with the present express system it gets neither. - - - - -Congressional Record. 46: 1941-7. February 3, 1911. - -Star Routes and Rural Parcels Post. - -F. W. Mondell. - - -I do not want to put the entire blame for the hidden, circuitous, and -indirect opposition to parcels post upon the express companies. There -is another class of people who are opposed to parcels post who do not -directly show their hands. They are the firms and corporations who send -out a very large letter mail, upon which they pay 2 cents for every -half ounce. The average citizen who only writes an occasional letter -does not realize how heavy the burden 2-cent letter postage is to -people who send out great numbers of letters. - -There are many large concerns, like the mail-order houses for instance, -promoters, jobbers, and dealers in special extensively advertised -lines, whose actual letter postage amounts to many thousands of dollars -a year. Such people naturally oppose any change in the postal service -which might increase the postal deficit, even temporarily, because of -their anxiety to have the letter rate reduced. The yearly income of the -Post Office Department from letter postage is about $132,000,000, and -it is said that some mail-order houses pay several hundred thousand -dollars a year for letter postage. A reduction of that by half would be -well worth working for. - -It would not be fair in the discussion of this subject to overlook the -fact that there are arguments against the establishment of a general -parcels post which are advanced in perfect good faith and which are -entitled to serious consideration. Those local merchants who have some -misgivings about the matter are entitled to have their views carefully -considered, but as I have indicated, it is my opinion that in the main -their fears are not well founded, and arise largely from the fact that -they have not had an opportunity to give the matter their personal -consideration, and therefore have been inclined to accept the arguments -of interested parties. There are also a considerable number of people -who are honestly opposed to the parcels post in the belief that it is -an unwarranted extension of government activities into a field which -ought to be satisfactorily covered by private enterprise, and who still -hope that the express service may be so cheapened and improved as to -very largely satisfy the demand for a parcels post. There are also -those who feel that owing to the vast area of our country it would be -difficult to adopt a system of parcels post which would be generally -satisfactory and at the same time self-supporting. - -The argument is also made that the handling of a large amount of -merchandise by the postal service would make delivery difficult where -city delivery is provided, and delay the transmission of letters by the -loading of the mails with merchandise. - -These arguments do present problems which must have serious -consideration. They are none of them, however, in my opinion, problems -which are insurmountable, but a consideration of them, as well as of -that character of powerful opposition exerted indirectly to which I -have referred, leads thinking people to the conclusion that the outlook -for the establishment of a general parcels post in the country in the -near future is far from promising. With this as with all progressive -legislation, little progress will be made until the people as a whole -become thoroughly interested in the subject, quite generally make up -their minds what they want, and in no uncertain tone make their wants -known. - -So long as only those who are opposed to the extension of the parcels -post are generally heard from by members of Congress, there is not -much likelihood of definite action being taken, and the probability is -that in any event a general parcels post in this country can only be -secured through the medium of a modest and limited and more or less -experimental beginning in the way of a local or rural parcels post. - - -_Local Parcels Post_ - -President Taft in his last annual message recommended a parcels post -limited to rural free-delivery lines. This recommendation was made on -the ground of economy, to meet the opposition aroused by the argument -that a general system would create a great deficit in the postal -revenues, for a time at least. The local system would also have the -virtue that it would furnish an object lesson in a partial and limited -way, which might be valuable in determining the propriety of further -extending the system. There is, furthermore, an argument for rural -parcels post which does not apply in the same degree to a general -parcels post, and that is that while the dwellers in cities and towns -have ready access to stores and opportunities of express service, -the dwellers in rural communities do not have these advantages, -and therefore a rural parcels post which would enable them to have -articles delivered on local routes or to local post offices would be -of great benefit and advantage to them. As we do not have many rural -free-delivery routes in our sparsely settled intermountain country, I -am of the opinion that a rural parcels post, if established, should -also operate over the star routes which supply our country offices and -our people in boxes en route, and therefore the bill which I introduced -provides for such a service. - -Such a rural parcels post as is thus proposed would unquestionably be -helpful in building up the trade of the merchants in the small cities -and towns and of very great value and advantage to the people who get -their mail at the country post offices and along country routes. This -being true, I supposed I would avoid much of the storm of opposition -which those who have advocated a general parcels post have heretofore -encountered. Much to my surprise, however, the onslaught against this -very modest proposition, intended to help the local merchant and the -people of the country, has been even more terrific than the outburst -against the general proposition; all of which makes one fact as clear -as the noonday sun, and that is that the opponents of a parcels post -realize that the local parcels post, if it works well and is generally -satisfactory, will be the entering wedge for the general parcels post. -It also illuminates quite as clearly another fact, and that is that the -opponents of parcels post believe that the rural parcels post will work -well and be generally satisfactory. Another important fact emphasized -by this opposition is that the opponents of parcels post believe that -the agitation for a local parcels post is much more dangerous than -the agitation for the general parcels post, because it is more likely -to be successful. The gentlemen who have been spending their money so -liberally in opposition to the local or rural parcels post have thus -made clear three important facts: - -First. They believe that there is a strong probability of a local -parcels post being established. - -Second. They believe that such a system will work to the satisfaction -of the people. - -Third. They believe that, the local system having proven satisfactory, -it would lead to the establishment of a general system. - -In this condition of affairs it would seem that it is the duty of -the friends of a parcels-post system to get behind the President’s -suggestion of a local parcels post enlarged so as to include star -routes and country offices. - -Some one is spending a lot of money to defeat the rural parcels post. -One way they are doing it is by sending out petitions by the tens of -thousands, which they ask the local merchants to sign and send to their -Congressman. I have received hundreds of these petitions. They have -various sorts of headings printed in various kinds of type, but they -are nearly all alike. - -After having in the first paragraph drawn a dreadful picture of the -awful disaster and destruction which the rural parcels post will bring -to the farmers and to the country towns, in whose behalf they weep and -wail--a destruction compared with which the devastation of Sodom and -Gomorrah would be as the passing of a summer zephyr--they tell us how -all these direful calamities are to come, as follows: - - In every town catalogue agents of mail-order concerns would - establish themselves. They would need no stores, pay no rent, - employ no clerks, require no credit and give none, and carry no - stock. Their whole time would be devoted to soliciting orders - from catalogues. The merchandise would be shipped to them by - express or freight from the retail mail-order houses in the - large cities. When received it would be deposited in the local - post office and the packages delivered by the rural carriers. - -The only trouble with this lovely piece of sophistry is they fail -to explain to us why the very game they describe can not be worked -just as well now as it could after a rural parcels post had been -established. There is nothing in the world to prevent just the sort -of a plan, which is thus held up to our horror and execration, from -being carried out now, except that it would not pay. The mail carriers -on rural and star lines not only have the authority, but they would -be very glad to have the opportunity of delivering packages along -their routes which solicitors for catalogue houses might deliver to -them. And, furthermore, they can now, no doubt would be glad to, take -packages of any size; whereas a rural parcels post only provides -for packages up to 11 pounds. So, when you come to analyze it, this -“local-solicitor-of-the-mail-order-trust” bugaboo is found to be just -another one of the strawmen, the poor miserable scarecrows, that the -express companies are trying to terrify us with. - -The mail-order houses claim they can sell cheaper than the local -merchants because they do not have any local expense. The moment they -are called upon to pay for the services of a local agent their expenses -are greater than those of the local merchant. I think this disposes -of the “local-agent bogy.” He is the most transparent of all the -scarecrows the express companies have raised. - - - - -Congressional Record. 45: 9310-4. June 24, 1910. - -General Deficiency Bill. - -William S. Bennet. - - -Mr. Speaker: In view of the great interest in the parcels post -question, I submit herewith the views of the Farmers’ National -Congress: - - -_A Brief for a Modern Parcels Post for the United States_ - -[By John M. Stahl, legislative agent Farmers’ National Congress.] - -It has been said, and not without justice, that because of greater -density of population parcels can be carried at a less cost in the -domestic mails of Germany or Belgium than in the domestic mails of the -United States, because the average haul would be shorter in Germany or -Belgium. But the disparity between the domestic parcels post of the -United States and of foreign countries is greater than is warranted -by the length of the average haul. No fact is better established in -the science of transportation than that the cost of transporting an -article bears little relation to the distance transported. But if the -density of population should fix the rate of postage and the limit -of weight in a domestic parcels post, then surely we should have a -lower rate of postage and a higher weight limit than those countries -in which the population is not so dense as is ours. For example, the -area of the Commonwealth of Australia is 2,974,581 square miles, and -the present population is 4,300,000. The area of the United States, -excluding Alaska and the islands, is 3,025,600 square miles. Alaska and -Hawaii would add a shade less than 600,000 square miles. The area of -the Philippine Archipelago is 832,968 square miles, and the population, -according to the 1908 census, is 7,835,436. It is certain that, -including all our territory and all our population, we have an average -population of more than 20 per square mile. Australia has a population -of less than 2 per square mile. If the argument of the opponents of -a modern parcels post for the United States, founded on the density -of population of Belgium, Germany, etc., is a good argument, then the -rate charged in our domestic parcels post should be much less and the -weight limit should be much greater than in the domestic parcels post -of Australia. But the postage rate in the domestic parcels post of -Australia is as follows: Intrastate, 1 pound, 6 pence (12 cents); 2 -pounds, 9 pence (18 cents); 3 pounds, 1 shilling; and 3 pence (6 cents) -for each additional pound up to and including 11 pounds, the postage -rate for an 11-pound parcel being 3 shillings (72 cents). - -The interstate rate in the parcels post among the six states of -Australia is as follows: One pound, 8 pence (16 cents); 2 pounds, 1 -shilling 2 pence; 3 pounds, 1 shilling 8 pence; and 6 pence additional -for each additional pound up to and including 11 pounds, making the -charge for an 11-pound parcel 5 shillings 8 pence ($1.36). - -New Zealand is 1,200 miles from Australia and extends for 1,100 miles. -It has a population of only 1,000,000. Yet the rate in the parcels -posts between the States of Australia and New Zealand is just the same -as it is among the States of Australia, and the weight limit is the -same. - -Now, if the people of Belgium and Germany should have a less postage -rate and a higher weight limit in their domestic parcels post than we -have because the population of Germany and Belgium is denser than our -population, then we should have a much less postage rate and a much -higher weight limit in our domestic parcels post than have the people -of Australia, because our population is more than ten times as dense as -the population of Australia. But, on the contrary, the average postage -rate in not only the intrastate but also in the interstate parcels post -of Australia is less than in our domestic parcels post, and the weight -limit is 11 pounds, as compared with 4 pounds in our domestic parcels -post. The rule laid down by the opponents of a modern parcels post for -the United States must apply to Australia as well as to Belgium and -Germany, and by this rule the rate in our domestic parcels post should -certainly be less than 8 cents a pound and the weight limit should -certainly be far above 11 pounds. - -The postage rate in the domestic parcels post of New Zealand is 4 -pence (8 cents) for the first pound and 2 pence (4 cents) for each -additional pound. The population of New Zealand is less than one-half -as dense as our population. The weight limit in the domestic parcels -post of New Zealand is 11 pounds. If the argument of the opponents of -a modern parcels post for the United States, founded on the density -of population is correct, then the rate in our domestic parcels post, -instead of being several times that of New Zealand, should be less, -and the weight limit, instead of being only about one-third that of New -Zealand, should be greater. - -Our parcels post with foreign countries shows beyond argument that -the postage rate in our domestic parcels post should be not more than -one-third of what it is, at the utmost, and that the weight limit -should be several times what it is. The domestic parcels posts of other -countries and of Australia and New Zealand show also beyond argument -that the postage rate in our domestic parcels post should be only a -fraction of what it is and that the weight limit should be several -times greater. - -Whether or not the railways are owned by the government does not -touch the argument founded on the parcel post of other countries. -If government ownership of railways lessens the cost of the postal -service, it may be an argument that our Post-Office Department pays -our railways too high a rate for transporting mail matter, but it has -nothing to do with the character of the mail service our government -should give our people. - -As a matter of fact, government ownership of railways has no apparent -effect on the parcel post of foreign countries. Both those in which the -railways are in large part owned by the government and those in which -the government does not own any railway mileage have a parcel post much -superior to ours. - -Possibly our government should not conduct a parcel post at any -considerable loss, although it should be borne in mind that the object -of our Post-Office Department is to serve the people and not to make -money. It might be successfully argued that fundamentally there is no -greater reason why the Post-Office Department should be a source of -revenue than that the War Department should be a source of revenue. The -mails have become so very important in the transaction of business, -in the communication of intelligence, and affect so many of the -operations of our daily life, that each year it becomes apparent that -the test of our Post-Office Department should be the excellence of -the service it gives our people; and the relation of expenditures, so -long as they are judiciously and economically made, to receipts is of -less and less importance. But we would not advocate any parcel post -that, when fully established and on a normal basis, would add much, -if any, to the net cost of our Post-Office Department. However, it is -apparent from a study of the profits of our express companies that our -Post-Office Department could carry parcels in our domestic post at a -much less rate than 16 cents a pound without increasing the net cost -of the Post-Office Department. Further, a study of the profits of our -express companies show clearly that we are being charged altogether -too much by these express companies for the service they give us, and -that their charges should be subjected to that most effective of all -control--the competition of a modern parcel post. This study shows -with equal plainness that the present weight limit on parcels in our -domestic post, which compels us to send by express all parcels weighing -more than 4 pounds, should be raised to a much higher figure, probably -25 or even 100 pounds. Recent investigations and revelations have shown -that our express companies are really subjecting us to extortion. - -The competition of a modern parcels post may not prove sufficient of -itself to make the charges of the express companies what they should -be, but it would certainly be most effective in accomplishing this -result. We are subjected to overcharges by express companies as are the -people of no other country on the face of the earth. In fact, the most -important countries of Europe, as well as Australia, New Zealand, etc., -are not subjected to any overcharges at all by express companies for -the reason that in those countries and colonies there are no express -companies of the nature of those existing in this country. On account -of the overcharges of our express companies we have a very good reason, -indeed, for a modern parcels post in this country; and this very good -reason is in addition to those that so many other countries have found -amply sufficient to warrant a modern parcels post. - -And it should not be forgotten that the enormous profits of our express -companies on the capital they actually have invested in the express -business show conclusively that our government could give us a modern -parcel post without increasing the net cost of the postal service after -that parcel post had been established and its business had reached -normal proportions. - -In an honest endeavor to arrive at a correct conclusion as to the -features of our domestic parcel post we can not do better than to study -the parcel post of Australia and New Zealand, for the dominant elements -in the population of Australia and New Zealand are the same as in ours, -the people of Australia and New Zealand have obtained their ideas of -government and the functions of government from the same source that -we have, their institutions and conditions approach ours nearer than -those of other countries, and they have the same problem of adapting -the government service to a wide expanse of territory in the settlement -and development of a new country. This problem, though much greater -than ours at this time--the area of Australia is nearly the same as -that of our states, while the population is only about one-twentieth as -much--is the same in its nature. - -Another reason is that the postal service of Australia and New Zealand -is so satisfactory in every way. On page 25 of “L’Union Postale” for -1909 it is stated in regard to the New Zealand postal service: “The -financial results of the administration were very satisfactory. The -receipts increased by 9.04 per cent and the expenditure by 7.22 per -cent over the preceding year.” - -It will be seen that the postal business of New Zealand conforms to the -rule of good business management that as a business increases in volume -the receipts should increase faster than the expense. - -In the last published report of the postmaster-general of New Zealand -it is pointed out that notwithstanding several important reductions -in the postage rate the revenue of the postal service had during the -preceding sixteen years increased by a considerably larger amount -than the expense. “From December 16, 1907, the postage on inland -post cards was reduced to one-half penny. From January 1, 1908, the -rates for inland letters were made 1 penny for the first 4 ounces and -one-half penny for each additional 2 ounces. From January 1, 1908, the -commission chargeable on money orders within New Zealand is 3 pence -for each 5 pounds sterling or fraction of 5 pounds. Owing to the -reduction in postal rates made the year before, the number of parcels -increased 81.57 per cent.” “The rate of postage for inland parcels -was reduced from 6 pence for the first pound and 3 pence for each -additional pound to 4 pence for the first pound and 2 pence for each -additional pound. The public, moreover, has by the change been induced -to send by parcels post articles which were previously forwarded as -packets.” “The reduction in postal rates may be practically referred -to as having resulted in a great increase in parcels-post business.” -There was a handsome net balance to the credit of the postal business. -“The net balance on the year’s transactions would be much higher if the -value of official correspondence dealt with were taken into account.” -“The expansion of the business has necessitated large additions to the -staff. The increase of the staff was, however, below the percentage -of increase of the receipts. An amendment to the post-office act -contributed to improve the financial condition of the postal service.” -The experience of New Zealand and the Commonwealth of Australia in -postal service is well stated by the colonial treasurer, Hon. Sir -J. G. Ward, in one of his recent financial statements, as follows: -“Experience has shown that every concession in postal rates creates -a new class of business which is ultimately to the profit of the -post-office.” - -Of course, in the official publications of the Commonwealth of -Australia and of New Zealand one hears nothing to the effect that the -government should not engage in any competitive business--one hears -that only in the United States. If that were put into effect, our -national government would be compelled to stop building war ships -in the navy-yards, to close up altogether the government printing -establishment, to stop at once all its irrigation projects, to close -up all the land-grant colleges, to stop at once casting cannon and -making small firearms and ammunition, etc. As a matter of fact, when -our Constitution was framed there was no question among those that -framed it that it should give to the national government the power to -do certain things, in competition with private enterprise, that would -be for “the public welfare;” and there was never any intimation that -the national government should not engage in any competitive business. -On the other hand, those that helped to frame the national Constitution -and to secure its adoption participated in and sanctioned legislation -by Congress that put the national government into several lines of -competitive business. - -The publications of the labor officials of Australia and New Zealand -are decidedly numerous, and show plainly that the working people of -these colonies, as well as the other elements of their population, -are heartily in favor of a modern parcel post. It may truly be said -that the parcel post of Australia and New Zealand has the hearty and -universal approval of the people of those colonies. The officials -and the rank and file of the labor organizations of these colonies -are among the heartiest supporters of their parcel post. And it is -certain that the very large majority of the rank and file of our labor -organizations and the very large majority of our city people, as well -as of farmers, heartily favor a modern parcel post. - -As for the relation of a modern parcels post to the so-called -catalogue houses: In his official reports the postmaster-general of -both Australia and New Zealand frequently emphasizes that for years a -thoroughly modern colonial, intercolonial, and foreign parcels post has -been enjoyed by the people of those colonies, even in “the most remote -districts to which the mail service penetrates.” Notwithstanding this, -in all of the many publications on Australia and New Zealand, or by the -officials of those colonies, there could not be found a sentence to -the effect that the local merchants of those colonies have been in the -least injured in their business by catalogue houses. - -This fact certainly merits being emphasized. In all the countries in -which there is a modern parcels post the catalogue house is unknown. -In our country, which is the only enlightened country that has not a -modern parcels post, the catalogue house exists and, to some limited -extent, flourishes. Hence the fact is plain that instead of a modern -parcels post aiding catalogue houses the very opposite is true. If -the universal experience of humanity counts for anything, then the -antiquated parcels post, such as we have, aids the catalogue house and -the modern parcels post puts it out of business and keeps it out of -business. - -The rural delivery service has grown to more than 20,000 routes. -Official reports show that the average weight of mail delivered by -each team or single-horse wagon in the rural delivery service is only -25 pounds. On nearly all the trips the carrier could practically as -well take 500 pounds in his wagon. The more than 40,000 rural carriers -make more than 12,480,000 round trips each year. If a parcels post on -the rural routes earned $2 for each round trip the gain would be, in -round numbers $25,000,000 a year, and this, with some little reforms -that all agree should be and easily could be made, would wipe out the -postal deficit. Now, if the rate on the pound packages in a rural route -parcels post was 5 cents a pound the carrier to earn the $2 per round -trip would be compelled to carry not the 500 pounds that he could, but -only 20 pounds additional going and coming or a total load of only 45 -pounds. - -This is a fair calculation as to profit to the government, for the -expense for the rural carrier service would not be any greater -whatever, and the small expense for handling the additional 20 pounds -at the terminal post-office would be more than covered by the increased -first-class mail (handling which is very profitable) resulting from the -parcels post. - -As, on the average, about 100 families are served by each rural route, -if, on the average, each family had delivered or sent each trip only -one-half pound of parcel, taking into account that a good many parcels -would weigh less than 1 pound and that every parcels-post bill proposes -for them a higher rate than for heavier packages, the rate could be -made much less than is proposed and yet the postal deficit would be -wiped out altogether! - -And this would be of very great benefit to the 4,000,000 families -served by the rural mail delivery. The rural carrier passes the farm -every week day, yet if the farmer wants a package from the town he must -go after it--each of the 100 farmers must hitch up and drive to town -and back for packages that the one carrier could have brought them as -well as not with the outfit that he already has. Or these 100 farmers -must hitch up and take to town packages that the carrier could have -taken for them with the outfit he already has. The time and labor -saved the 4,000,000 families on rural routes would amount to many times -the present postal deficit. - -It is only natural that farmers should be especially desirous of a -modern parcels post, because, as already stated, the express service -stops with the railway station. Hence the farmer has no express service -that reaches to him as have the people of towns and cities. The express -companies have never cared to carry their business to the farmer, -and this must convict them of only the most reprehensible motives in -opposing a parcels post limited to rural routes, which would extend -the equivalent of an express service to the farmers. As bearing on the -farmer’s need of a modern parcels post, the following from a letter -just received from Hon. W. L. Ames, Oregon, Wis., a practical farmer -and a leader of national reputation in all agricultural movements, is -of interest: - -“One of the things we most need is better and prompter transportation -facilities for rather small articles. I recently needed a small but -important repair for a machine. It weighed 4¼ pounds. It cost 55 cents. -The express company charged 45 cents to bring it to Oregon--200 miles. -The charge was altogether too high, but what I felt most disposed to -complain about was that it took a week to bring the repair to me. Mail -matter moves promptly; but the express company knew that it was certain -of the job of carrying that repair to me, hence no need of haste on the -part of the express company. We need better and added facilities for -the prompter moving of such merchandise. Present delay is a serious -handicap, and undoubtedly a parcels post would give us prompt service -at a less rate, as it would not be expected that the parcels post would -do more than make a moderate profit for the government, whereas the -express business is a constant ‘melon-cutting’ business. We must not -forget, also, that all the equipment for a parcels post on rural routes -is already installed. - -“If the government would take charge of what it already has and add -rules to fix charges for carrying parcels on the rural routes, it would -relieve us of much unjust charge and also much annoyance and loss of -time. Under the rulings of the Post-Office Department prohibiting rural -carriers from acting as agents for anyone to obtain business, carriers -are afraid to carry parcels to any extent. But what cuts a yet -greater figure is that no rule can be established to fix the charges -for carrying parcels and make them the same for all. Each person on -a rural route and the carrier cannot dicker for the transportation -of each article. That would soon lead to great dissatisfaction, as -some would think that others were being favored. And to dicker on -each parcel would take so much time and be so much trouble that the -carrier could not be expected to do it. All we need to put into effect -a modern parcels post on the rural routes is a law fixing a reasonable -and proper rate for the transportation of parcels and making it the -business of the rural carrier to handle parcels as well as the mail -matter he now carries.” - - - - -Cosmopolitan. 36: 497*-9*. March, 1904. - -Who Will Be Benefited by a Parcels Post? - -John B. Walker. - - -Those who have been appointed to defend the Post-Office Department -in the sacrifice it has made of the American people in the matter -of postal parcels delivery have replied to the argument in the last -issue of _The Cosmopolitan_ by claiming that but very few people will -be benefited by a parcels delivery equal to that of Germany. It is -therefore necessary to consider this question: “Who are the people who -will be benefited?” - -First. There will be a gross saving amounting to more than two hundred -and fifty millions of dollars per annum. This annual addition to -our national wealth constitutes an economic factor of the highest -importance. - -Second. While this sum will be distributed equally among the people in -proportion to their purchases--especially among those who make small -purchases--the direct benefit will be first appreciable in the business -of the following classes: - -I. _The Small Storekeepers of the Country Towns and Villages._ One of -the arguments used by those who have been placed in the Post-Office -Department for the protection of special interests, is that a -parcels post would injure the country storekeeper. The very slightest -consideration of the problem, however, would have shown that no one -is so likely to be its beneficiary as he. The chief difficulties with -which the small merchant has to contend are these: - -1. Insufficient capital. - -2. Distance from wholesale centers. - -3. Cost of expressage on small parcels. - -The country merchant has the acquaintance of his customers; he knows -their wants and enjoys their good-will, and would have their patronage -if he could be placed in a situation where he could give them equal, -or approximately equal, advantages with a merchant who buys on a large -scale. If one of his customers is driven to go elsewhere, it is not -only because the merchant cannot afford to keep in stock the particular -class of goods desired, but because he cannot afford to ship these -goods in small quantities, on account of the prohibitive rates of the -government’s postal parcels charges of sixteen cents per pound, or the -almost equally prohibitive rates of the express companies. - -The country storekeeper has the experience of his customer’s wants, -and he has a knowledge of the best goods, knows what is a fair price -for an article. He is in a position to advise his customer as to his -needs, and if he were not handicapped by lack of capital and cost of -transportation for parcels, he could, in nine times out of ten, supply -the wants of the customer. - -In addition to the trade he has now, the country storekeeper would, -with the advantage of a first-class postal parcels system, be able to -keep in touch with all the great wholesale distributing agencies of the -country. He would earn a reasonable commission on all goods ordered, -and would be in a position to secure, within a very brief time, by -postal parcels, the goods which the customer, after looking over the -catalogues and receiving the advice of the merchant, should decide to -order. - -There would be no investment and no risk, such as is involved in -carrying a stock of goods which may become unsalable. Without large -capital, he is now handicapped by being compelled, on account of the -discrimination against him as a shipper, to lose the sale of all those -articles which he cannot carry in stock in quantities, and which may, -under present arrangements, only be shipped in bulk. If he attempts -to use the mails, the rate of sixteen cents per pound is prohibitive, -while the fact that the bulk is limited to four pounds is almost -equally so; and the express companies’ charges are so high that in the -majority of cases he cannot utilize their services. - -Let us suppose that, instead of the United States’ charges for postal -parcels being six thousand per cent. greater than Germany’s they were -on a par, and that the country merchant could receive parcels weighing -from one ounce to one hundred and eleven pounds for a quarter of a cent -a pound. _It is not even necessary that the rate should be so low. -Let it be made four times as great as that of Germany_, or one cent -per pound, and let us see what advantage the country merchant would -have. One hundred and ten pounds covers nine-tenths of the articles -which he would be likely to sell. Instead of a store equipped with -comparatively few articles, the country merchant would be able to -carry, in addition to his regular stock, an extensive line of samples. -He would familiarize himself with the best that there is in the market, -be able to advise his customer to his advantage, and then, receiving -the order, could, within a brief time, have the goods sent by parcels -post directly to the customer’s home, saving the expense of handling -two or three times--making more money by a small commission than he -does now by the larger margin on the goods which he is compelled to -carry constantly in stock. - -Good organization is the trend of modern business, and this is -good organization--saving two or three handlings, truckage, some -bookkeeping, et cetera. - -II. _The Manufacturers._ Next to the country merchant, the manufacturer -will be the largest beneficiary of the postal parcels delivery. Take, -for instance, the hardware business. The manufacturer is obliged, -under the existing conditions of trade, to maintain large stocks in -an endless number of cities scattered over the country, or do what is -the equivalent of directly maintaining the stocks--that is, to give -extended credit. This is because there is no way of handling small -parcels of hardware without a cost that is so excessive as to force -shipments of hardware to be made in bulk. With a one-cent-per-pound -rate, more than fifty per cent. of the stocks now carried could be -eliminated and orders sent by the hardware merchant directly to the -manufacturer to be shipped by package. One hundred and ten pounds would -cover the greater portion of the trade, and leave only nails, barbed -wire, and similar articles, for bulk handling. - -In cotton goods, instead of shipping from the Mills to New York, -trucking them there through the streets, breaking bulk, repacking, -retrucking and reshipping to the merchant there would be but one -operation. A single piece of goods would go direct from the factory -by parcels post at a total cost for handling not to exceed twenty -per cent. of the charges now engendered by our clumsy, costly and -inconceivably stupid method. - -The same thing would happen in the grocery business. A factory in -Rochester or Pittsburg, manufacturing canned articles, must ship in -bulk to New York, or Chicago, or St. Louis. There the car-load, after -being hauled to a warehouse, is broken up and transshipped. There is -no reason for this transshipment, no possible excuse for this waste -of money, except that the ownership of the express by a few private -companies has prevented the organization of a parcels post upon lines -which have long been recognized as absolutely successful in Europe. - -The question here will be asked: Would this shipment direct from -the factory interfere with the business of the wholesale merchants -whose task it is now to repack and reship? On the contrary, it would -simplify their work and reduce expenses from every point of view. Their -business primarily is one of distribution of credits. They have certain -customers who receive from them certain lines of credit. They furnish -the capital between the manufacturer and the retail dealer. If tomorrow -they could order by letter or telegraph, directly from the factory, for -shipment to the retail dealer by postal parcels, their business would -be greatly simplified and their profits increased. - -III. _The Merchants in Large Cities._ Perhaps to no class will the boon -of a parcels post be greater than the merchants in the large cities. -All the way from four cents to fifty cents is now paid for the delivery -of a parcel within a radius of thirty miles around the leading cities -of this country. Experiments have shown that it is possible, where -the interests of a considerable number of merchants are combined, to -deliver an average dry-goods parcel, thirty miles out, at a cost not to -exceed four cents. - -As conducted today, the business of delivering parcels consists in -sending the wagon of one dry-goods house to follow another into a city -block, and deliver each its parcel; then each wagon goes off to another -block, and delivers its parcel. In New York city thousands of wagons -meander through the two or three thousand miles of streets, each firm -doing its work independently of the others, and each wasting money by -lack of cooperation. - -It is altogether probable that with thorough organization city delivery -could be conducted, within a radius of thirty miles, upon a basis -not to exceed one half cent per pound. This would mean but two cents -per package for the average four-pound dry-goods parcel, including, -of course, the large number which are transported but a few blocks. -But that is not the only advantage. It would take from the merchants -the constant effort which the maintenance of good delivery systems -involves. I have personally studied the delivery systems of nearly all -the leading merchants in New York, Philadelphia, and Boston, and have -spent a day in the delivery department of Marshall Field in Chicago. -Everywhere I heard the same complaint--that the brains consumed in -managing the parcels delivery was one of the most expensive items in -the cost of operating a great establishment. - -IV. _Book Publishers._ The cost of delivering a book by mail is now -eight cents per pound. This, for a four-pound book, means a tax -of thirty-two cents. Just how far this retards the development of -intelligence in the people is not difficult to estimate. - -V. _Stationers’ Supplies._ The large class of manufacturers and -wholesalers who are engaged in supplying the stationery trade would -find the parcels post a great convenience in receiving supplies and -in delivering to customers; a matter of lessened capital, lessened -trouble, and greatly increased profits. - -VI. _The Railways._ At first sight it might appear that the interests -of the railways would not be favored by a postal parcels law. But the -briefest analysis of the problem shows that the benefit to them would -perhaps be greatest of all. - -To-day vast numbers of freight-cars stand idle, waiting carload -shipments. These bulk shipments are necessarily made at the very -minimum of cost. In the low price of bulk shipments, American railways -lead the world. Even at existing prices, however, water transportation -carries off a large part of the burden. - -The benefits to the railways, by transferring freight from the class of -bulk to parcels, would be: - -1. Goods being shipped in a constant stream of packages, instead of -intermittently by car-load or train-bulk; - -2. A higher price would be obtained from shipments of the same freight -in parcels as compared with the previous cost in bulk; - -3. The large increase in traffic due to better, cheaper, speedier and -more direct, and in every way infinitely more convenient, facilities; - -4. The additional prosperity which a saving of anywhere from two -hundred and fifty to six hundred millions of dollars per annum would -mean to the country at large. - -There are to-day far-seeing railway officials who have given this -problem serious consideration, and who have arrived at the conclusion -just stated. - -VII. _The Farmer._ Last, but not least in importance, comes the -farmer. To-day, cut off from parcel delivery, he is the victim of bad -government, both in his bad roads and lack of postal facilities. The -one step of progress that the United States post-office has made of -recent years, that is worthy of respect, is the rural postal delivery. -As proposed, however, it is ridiculous. The idea was advanced by some -politicians for the purpose of creating additional patronage. Merely -to deliver letters and newspapers to the farmer would, of course, -be to operate a service without hope of placing it on a profitable -basis. It would be as if the New York merchants would keep a thousand -wagons traveling around the streets of New York to deliver nothing but -kid gloves and lace veils--nearly empty, while other wagons would be -carrying the burden of the goods sold. - -Rural free delivery is absolutely impossible unless accompanied by -a postal parcels law. Giving a rate even four times as high as that -of Germany, the entire rural delivery could be put on a paying basis -to-morrow. - -Here again would be an advantage to the country merchant. The farmer -to-day, when he wishes to buy, hitches up a pair of horses, drives -four or five miles, and makes a few purchases. If the United States -had the postal parcels law of Austro-Hungary, the farmer would draw a -postal check, mail it free, the merchant would deliver the goods to the -post-office, and a few hours later they would be in the hands of the -farmer. - -The life of the farm, which has so many drawbacks, would thus be made -vastly more comfortable. It is impossible to estimate in dollars how -great the saving to the country would be in this one particular. - -It would be easy to show the endless ramifications of this beneficial -service; but space need not here be taken up for that purpose. -Sufficient has been indicated to show that there is no man or woman, -however poor, however rich, who would not be vastly benefited and -convenienced by a government postal parcels system. - - - - -Craftsman. 14: 592-4. September, 1908. - -More Efficient Postal Service. Gustav Stickley. - - -Speaking of the success of the rural routes, of which there are more -than thirty-eight thousand already established in this country, Mr. -Meyer says: “The isolation which existed in many parts of the country -has been overcome; the people are in daily communication with their -friends in the rest of the world; the daily papers and magazines come -to the door of every farm house on the rural routes, and enlightenment -and information are being spread broadcast through the land. Medical -men have said that already the establishment of the rural service is -having its effect upon the mentality of our country patrons, and that -because of it insanity is on the decrease. The extension of the rural -routes to include a parcel post,” he asserts, “will be a boon both to -the rural population and to the store-keeper as the latter can receive -his orders by mail or telephone and despatch the desired merchandise by -the rural carrier. The farmer will be saved from hitching up his horse -and losing the time he needs for planting or harvesting his crops, and -it will enable the store-keeper to increase his sales and meet the -requirements of modern trade.” - -Much of the opposition to this measure has come from the country -store-keeper, who very naturally dreads that such largely increased -facilities for delivery by mail would simply extend the already -wide domain of the department store and drive him completely out of -business. But this objection has been met by the plan for a special -postal service for the rural routes, which would be given at a much -lower rate than that prevailing throughout the general system of parcel -post. This special rate as advocated by Mr. Meyer would be five cents -for the first pound and two cents for each successive pound up to -the limit of eleven pounds, thus enabling any one along the line of -rural route to use the mails for delivery of packages at a charge of -twenty-five cents for the maximum weight, as opposed to one dollar and -thirty-two cents for the same weight if sent at the regular rate of -twelve cents a pound,--which regular rate would necessarily have to -be used by department stores unless they should go to the trouble and -expense of maintaining a large system of rural agencies throughout the -country. - -The result of such a system in bringing about the general dissemination -of business throughout the country by fostering small individual -enterprises is almost beyond calculation, especially as a secondary -result would be the growth of small villages and settlements throughout -the thinly settled farming districts. And these two changes in the -present state of affairs would go far toward solving the whole problem -of the possibility of turning the tide from the city back into the -country. The hardships and discomforts of many of the conditions -of city life, particularly among people of limited means, and the -uncertainty of the wage-earner’s means of livelihood, are now endured -chiefly because of the greater disadvantages that are attached -to farming in remote parts of the country or to undertaking the -responsibility of working independently of any large commercial or -industrial organization. For months, the Craftsman has been urging the -establishment of rural settlements and the introduction of handicrafts -in connection with small farms. Nothing that is likely to be done in -the way of legislation to this end seems to us to make so possible a -general change for the better along these lines as the postal measures -recommended by the Postmaster-General, supported by the President and -now recognized by Republicans and Democrats alike as a reform that -will not be downed, no matter how powerful are the interests opposing -it. Given the postal savings bank as an encouragement to thrift, and -transportation facilities that will not only bring all necessary -merchandise within reach of the farmer, but also take the products -of his own industry and a great part of the output of the village -workshops to the nearest market at a reasonable rate, and the rest will -follow almost as a matter of course. When a man has a fund of several -hundred dollars, there is hardly any question as to what he will do -with it if he has a chance. The desire to own a home and a little patch -of land is universal with civilized mankind and when to the possibility -of gratifying this desire is added facilities that render life in the -country as interesting and as much abreast of the times as life in the -city, the tenement question in cities will soon cease to be the serious -problem it is now. - - - - -Independent. 70: 105-7. January 12, 1911. - -Parcels Post Once More. - - -Proportional rural population is not diminishing. We do not know what -the present census will say, but we do know that from 1890 to 1900 -the country gained enormously on the city in its proportion of new -settlers. The old record of 65 per cent. for the city tumbled down -to a little over 30 per cent., and we know of no reversal of this -tendency. Back to the country has become a universal cry. Lands are -rising in value steadily, and deserted farms are a myth. At least, -Governor Hughes in one of his speeches said that he should like to -know where they were in New York State, for he could not find them. -Country churches have often died, to be sure; but they were killed -seventy-five years ago, and they do not note at all any decadence -of farm prosperity. They went out when railroads began to be built. -Crossroads stores have not been run to any extent for half a century, -any more than crossroads taverns. They do not belong to advanced stages -of country life, and are not needed. - -Never was country life more progressive, better organized or more -lifeful and hopeful. The crossroads has been displaced by the village -store, and this village store must deliver its goods. It wants the -parcels post. The trolley is reaching its fingers up into the valleys -and touching the farmyards with its carrying capacity. The automobile -is doing even more to reach the isolated farmhouse. We might as well -forbid these forces and conveniences as to deny the farmer a parcels -post. The same argument lies with intense force against rural free -mail delivery in every form. It destroys many post offices; it keeps -the farmer at home; it dissolves hamlet life: but it aids in the great -movement of distributing the blessings of a complete life all over the -country. - -We are quite willing to face the frightful proposition which is offered -us, of a community with no business institutions except the post office -and the freight depot. We have seen the tens of thousands of district -schoolhouses blotted out without a qualm, for we have seen the union -schools gloriously taking up the work in their place. We have seen -the little stores and taverns that used to be convenient for watering -horses vanish, because we find a substitute in department stores, -almost invariably within reach, by aid of the trolley and automobile. -We are not worried at all when we contemplate a picture involving a -more substantial country home, with its isolation abolished, hidden -among the hills, but visited daily by the rural free delivery carrier, -even tho he shall have in his automobile a ten-pound package for the -housewife. - -Without parley, we believe that the American people, almost without -dissent, demand a parcels post service; and that if put to popular -vote, this demand would be exprest by a majority of 90 to 1 the -country over. The people are growing impatient over delay, and they -are expressing this impatience very loudly. We believe that the coming -Congress will hardly find it possible to ignore this desire. We quite -agree with one of our contemporaries who says that the next step of -social and economic progress in the United States is unquestionably -bringing the producer and consumer closer together by reducing the cost -of carrying small parcels. - - - - -People Demand a General Parcels Post. pp. 7-12. - -William Sulzer. - - -Absence of a parcels-post law enables the railroad companies, through -subsidiary companies called express companies, to eliminate all -competition and prevent all regulation in one branch of transportation -and to escape compliance with the laws that are being enforced against -them in other branches of transportation by the several state commerce -commissions and the Interstate Commerce Commission. - -That the owners of the securities of these express companies have made -enormous profits is a recognized fact. One hundred per cent, even 200 -per cent, profit when an express company “cuts a melon” no longer -excites surprise when found in the news columns of our evening paper. - -No one objects to a fair profit for good service, but conditions seem -to indicate that the transportation companies are not satisfied with -the first and are not giving us the second, while developments before -commerce commission hearings indicate that their backwardness in -adopting economical and scientific business methods causes a tremendous -unnecessary expense. This they are meeting by maintaining and even -increasing already exorbitant rates for service that many believe are -discriminatory, and that grave injury and injustice to business and to -the general public results. - -As an example, W. P. Dickinson, of the Burlington Railway, is quoted in -the Railway Record as saying at a public hearing that the expenditures -of the Burlington traffic department for printing and stationery in -the fiscal year 1910 was $222,000. Assuming that they are typical for -all the railways in the United States, the cost of printing railroad -tariffs alone under present methods, is $6,000,000 to $10,000,000. -In modern transportation methods, as, for instance, those in vogue -in Germany, this expense is so trifling as to be scarcely worth -considering. Freights move in Germany on a uniform tariff, based -entirely upon bulk, weight, and distance, discrimination is impossible, -and any shipper can learn in a moment, by referring to the table, -the exact freight charge to any point, and can ship knowing that his -competitors must pay the same price for the same service. - -In the United States the shipper can not know all the tariffs that are -published or how they affect rates. He is supplied with a few easily -understood tables, but it is not within human possibility for him to -even read, to say nothing of comprehending, the millions that are filed -with the commission every year and how they affect the cost of the -transportation he buys. - -So it seems this extraordinary printing expense of millions, whatever -its purpose may be, operates to keep the average shipper ignorant -about rates. Ignorance is always dangerous, and particularly so in -transportation matters. - -Harrington Emerson, the expert, testified at the hearing before the -Interstate Commerce Commission at Washington last November, that -$300,000,000 annually in railroad operating expenses in this country -would be saved if the railroads adopted better business methods of -management. - -To save for the consumers that enormous sum, no better beginning can be -made than for the government to establish a satisfactory parcels post -and adopt scientific business methods in its management. - -That the interests that control our railroads also own and control -the express companies and that their separate incorporation is merely -a device to cover extortion and discrimination by complex contract -relations is indicated by Senate Document No. 278, pages 53, 54, and 55: - - Stock held by railways in express companies $20,668,000 - Railway securities held by express companies 34,542,950 - Holdings of express companies in the stock of express - companies 11,618,125 - ---------- - Total intercorporate ownership express companies - June 20, 1906 66,829,075 - - -_Express Company Rates Cause Loss to Shippers--Express Company Methods -Cause Loss to the Postal Department_ - -The peculiar, graduated, increasing rate for small-weight parcels is -absolutely prohibitive for express transportation except at an actual -loss for a considerable proportion of business. Most express shipments -are in small parcels. They therefore pay the higher scale. This -increased rate is exacted for both terminal and haulage service and is -as high as 37½ times the first-class freight charge. - -The express companies take from the Post Office Department the -profitable business and pocket millions of profits, but leave the -unprofitable for the Post Office Department. The profits from a parcels -post would stop the post-office deficit and give us a 1-cent letter -rate. The annual surplus of the British post-office department about -equals our annual postal deficit. The British have a serviceable -parcels post. - -The men in the mail service have a record of one error in 18,000 pieces -handled. Compare that with your experience with the express companies. - - -_The Parcels Post Not Openly Opposed by the Beneficiaries of Present -Methods_ - -The opposition to the parcels post at the late congressional hearing -was made by persons who appeared in the name of American Hardware -Manufacturers’ Association, Illinois Retail Merchants’ Association, -National Association of Retail Druggists, National Association Retail -Grocers, National Retail Hardware Association, National Federation of -Retail Implement & Vehicle Dealers’ Associations, Wholesale Dry Goods -Association, Paint Manufacturers’ Association of the United States. - -There was no direct opposition by the express companies to the parcels -post. - - -_Misdirected Energy Benefits Express Companies and Catalogue Houses_ - -Since the members of the above commercial associations can not to -any important degree be beneficiaries of the present confiscatory -and restrictive system that has a monopoly of the transportation of -merchandise in packages of 4 pounds to 20 pounds, some other reason -for their opposition to the parcels post must be found, and in that -connection the testimony given by these gentlemen at the hearing is -interesting. - -The main objection to the parcels post was that it would build up -catalogue houses to the injury of retail businesses. - -In reply to questions by members of the congressional committee, -however, some of their specific objections applied only to the rural -free delivery now firmly established and which nobody dreams of -abolishing. - -The other objections advanced were also to conditions already in -existence, some of which at least it would seem would be less -objectionable if we had a serviceable parcels post. - -For instance, the mailing of catalogues by the catalogue houses. That -can be done now to the farmer’s door for one-half cent an ounce, but -even that low rate does not always get the business. I have seen the -catalogue of Sears, Roebuck & Co. and the Chicago House Wrecking Co. -that were sent by each of these firms to addressees who did not specify -how he wished them sent. They were received since the date of the -hearing; both catalogues came by prepaid express. - -Had we a parcels post competing with the express companies and reducing -their extortionate charges the express companies would be less able to -deprive the government of that revenue by underbidding the Post Office -Department rate on catalogues. - - -_Catalogue Houses Don’t Need the Parcels Post, and Oppose It_ - -At the congressional hearing so much was said by the opponents of the -parcels post about the catalogue houses, how they were behind the -parcels post--that it was for their sole benefit, etc., etc.--that I -went to Chicago and succeeded in getting an interview with Mr. Julius -Rosenwald, president of Sears, Roebuck & Co. He declined to support the -parcels post. He said they were very well satisfied with conditions as -they are, under which they had built up their immense business, which -was done entirely by catalogue and without salesmen or commission. He -explained that only an insignificant amount of their sales went by -mail, that what did was unprofitable, as it cost as much to make ready -and handle such little sales as larger shipments, jewelry being the -only exception, and even for that they advised express. - -Evidence that catalogue houses do not want or need, and do oppose, the -parcels post was not lacking at the hearing. - -For example: Marcus M. Marks, of the Merchants’ Association of New -York, after stating that the Merchants’ Association is not in favor of -a general parcels post and has frequently placed itself in opposition -thereto he quoted one of the large Chicago catalogue houses as in -opposition, and for this reason: “The result would be that instead -of shipping goods in large bulk it would tend to create a demand for -small shipments, which would increase his expense of doing business.” -Marshall Field & Co., one of the largest concerns in this country, -were referred to by both J. G. Baker, president National Federation of -Retail Implements, etc., and H. L. McNamary, of the Hardware Dealers’ -Association, as opposed to the parcels post. - -All the opponents of the parcels post at the hearing, mostly retailers -in heavy-weight goods, were very insistent to impress upon the minds -of the committee the great injury that is being done their business -by the big catalogue houses, who, they claimed, are underselling them -and are doing a very large and increasing percentage of the business -that belongs to and should go to the retail dealer. But is it correct -to charge to the parcels post this great loss of trade which has -occurred while we have no parcels post and that has been brought about -by conditions that can claim no assistance from a parcels post? Is it -reasonable to say that a parcels post would produce such conditions -when no such conditions do exist as above noted where the parcels post -has been in operation for many years? - - - - -Hampton’s. 26: 261-4. February, 1911. - -Let Us Have a Parcels Post. - - -There would be some shadow of excuse for refusing to accept so great a -convenience as the parcels post if, in accepting it, we would destroy -a large investment in the business of the express companies. But, in -fact, we would not destroy any legitimate values in these companies. -They own practically nothing on which they would lose a dollar. Most -of their money is not in the business of transporting freight, but -in banking and investment enterprises. These would not be interfered -with. Their tangible property actually used in transportation would -be required, and would undoubtedly be taken over at good figures by -the government, when it established a parcels post business. Their -investments in stocks, bonds and banking business would be undisturbed. -The express companies would lose nothing except their graft--the -privilege of charging outrageous rates for the service they render. In -morals and equity that ought to be ended as soon as possible. - -The truth is that it is not the political and financial influences of -the express companies which keeps Congress from giving this nation -a parcels post. It is the pathetic and benighted ignorance of a -considerable section of our own people, who have been led to believe -that the parcels post would injure them. It is well-nigh impossible -to believe that there can still be millions of intelligent Americans -who doubt that national prosperity must be promoted by every increase -of the facilities and cheapening of the cost of transportation. Yet -there is such a section of the American public. Misguided and ignorant, -it has permitted itself to become the chief bulwark of protection to -the express companies’ graft. It persists in believing, in the face of -nearly a century of world experience to the contrary, that there is -danger in too easy, too cheap and too universal transportation! - - -_Unwise Opposition of the Small Merchant_ - -Reference, of course, is had to the fears which the merchants of the -country towns entertain as to the effect of the parcels post upon their -business. The country merchant has come to accept on this point the -sophistical, disingenuous and dishonest arguments of the express lobby, -skillfully put out through agencies whose real purpose is concealed. - -The argument that cheap transportation of parcels will injure the -country towns is exactly as reasonable as the contention that London -and New York, Hamburg and Liverpool, Seattle and Sidney, must be -injured by the railways and steam-ships which, bringing all parts of -the world into close and easy communication, would make it impossible -for great and dominating centers of population, commerce and industry -to exist. Everybody can see how absurd such an argument would be. -The best possible transportation facilities constitute the first -requisite to making a great city. Commercial centers are prosperous and -important, in proportion as they have adequate, efficient and cheap -transportation. This is as true of the country town with a single -railroad line as it is of a continent’s metropolis with half a hundred -great railroad systems pouring their tonnage into its terminals and -with the ships of all the seven seas unloading their cargoes at its -wharves. - -It is an axiom that good, ample and cheap transportation actually -makes commerce. The country town which has no railroad always wants -one. The hamlet which has no post-office is forever riding the neck -of its congressman until it gets one. Great cities vote millions to -build artificial harbors, to provide wharfage, and to increase every -possible facility for cheap and rapid transportation. - -There are no communities which need improvement of transportation so -much as the country towns which have been misled into opposing the -parcels post. The country merchant has been made to believe that the -parcels post would take his business away from him and give it to the -mail-order house in the great city. It would do nothing of the kind. On -the contrary, it would give the country merchant the one facility which -he does not now have: it would place him on a parity with the merchant -in a great city. - -Quick, cheap transportation would enable him to buy better and cheaper. -He could sell many articles from catalogues instead of having to carry -them in stock. He could create a mail-order business of his own in his -surrounding territory. The local merchant who conducts his business -well has nothing to fear from the mail-order house. Farmers and -citizens prefer dealing with the home man, and the parcels post will -give him many advantages that will enable him to increase his trade to -proportions which are now impossible. - -Of course, this does not apply to the country merchant who buys his -goods badly or at high prices, and who gives long credits and sells at -long prices. Parcels post or not, his day is doomed. More alert men, -with better business ideas, will soon occupy his place. The alert, -hustling merchant will use the parcels post so effectively that the old -sleepy head’s day will end just that much sooner. - -The proof of the pudding is in the eating. Every enlightened country -except the United States has a parcels post. No country would think -of abandoning it, any more than it would think of disestablishing its -letter postal service. In the experience of all the world the argument -about injuring the country town is sweepingly and completely refuted. -The small town would gain vastly more than the large town by this -tremendous increase and improvement of its transportation facilities. -The whole public would benefit, for precisely the same reason that it -benefits by having fast steamships instead of sailing vessels, limited -passenger trains instead of stage coaches, two-cent letter postage -instead of five-cent. - - -_Part Played by the Express Companies_ - -The people who oppose the parcels post are the innocent and unwitting -dupes of the express monopoly. This is the one point in the parcels -post argument that cannot be too constantly emphasized. When the dupes -are brought to understand their true interests, Congress will not dare -stand for a single session as the protector of express graft. - -Small wonder that the express companies are fighting with every -resource against the parcels post. They constitute one of the greatest -groups of financial power in the country. They are united firmly. -Most of the companies are large stock-holders in the others. Thus the -United States Express Company was shown by the report of the Public -Service Commission of New York, issued in 1908, to be capitalized -at $10,000,000. Of this, the Adams Express Company owned nearly -$1,000,000, the American Express Company exactly $1,000,000, and the -Southern Express Company, $70,000. How tremendously profitable the -business of the United States Express Company has been is shown by the -fact that whereas the company claimed an investment of only $2,042,000 -in real estate and equipment, it had $7,464,000 in investments, -$895,000 in cash holdings, and $2,000,000 in collateral and other -loans! That is to say, while this company had very little more than -$2,000,000 invested in its transportation business, it had more than -$10,000,000, representing surplus and undivided profit, in general -investments! - -It has accumulated such vast profits because it has been for many years -charging unconscionable and scandalous rates for its service. - -The Adams Express Company is shown by the current number of Moody’s -Manual to have $12,000,000 capital. After paying large regular -dividends and numerous extra dividends for many years, the company in -1907 found itself with such a tremendous surplus that it actually paid -a special dividend of 200 per cent in 4-per-cent bonds! Every holder -of a one-hundred-share of stock was presented with two hundred dollars’ -worth of 4-per-cent bonds! The present, of course, represented in part -the excessive charges which the company had been permitted to collect -from the public. - -But the most startling statistics of express accumulations are the -financial statements of Wells Fargo and Company. For many years this -company’s capital stock was $8,000,000. Its most recent statement, -as published in Moody’s Manual, listed these assets: Real property, -$4,100,000; equipment used in transportation, $2,044,000; stocks owned -as investments, $3,211,000; bonds owned as investment, $3,750,000; -loans, $17,165,000; cash on hand and in the bank, $5,459,000. - -Such were the accumulations of this company whose own statement -admitted that the equipment actually used in its transportation -business represented only $2,044,000. The company has always paid -large dividends. Its star performance in this line was the payment, -early in 1910, of a cash dividend of 300 per cent. Every holder of a -one-hundred-dollar share of stock was given three hundred dollars cash! - -This was not all. The stock of the company was worth in the market -exceedingly high prices. In addition to giving this 300-per-cent -cash dividend, the company increased its stock from $8,000,000 to -$24,000,000, and gave the holders of the original $8,000,000 the right -to subscribe at par for two shares of the new issue for each share of -their previous holding. - - -_Enormous Profits of the Express Companies_ - -These figures suggest the profits express companies have been making. -They have been making them because our government is the only -government which permits such a monopoly. It is a monopoly which not -only extorts millions upon millions every year from the people, but -which enables railroad companies, through their intimate business and -financial relations with the express companies, to conceal a very -considerable part of their earnings. The express companies are large -holders of one another’s stock, and also of railway stock; in turn, -the men who control the great railway combinations are themselves big -owners of express-company stocks and bonds. The express companies lease -from the railroads the right to transport freight over the railroad -lines. The terms of these leases represent, not a reasonable and -fair charge for the service, but an elaborate project of covering up -excessive earnings and extortionate charges in a maze of complicated -intercorporation transactions. - -The worst penalty that the American public pays in order that the -express grafters may make these huge profits and conduct these -manipulations, does not lie in the excessive charges. It lies rather -in the stunting and depressing effect upon general business, which is -a necessary and manifest result of a policy that denies the freest and -cheapest transportation facilities to the entire community. - - - - -Good Housekeeping. 53: 2-10. July, 1911. - -Housekeeping by Parcels Post. - -Isabel G. Curtis. - - -What would a parcels post mean to the American housekeeper? The -suburban or rural family could receive the bulk of its supplies by -mail--clothing, food, even eggs and butter and fresh meat. And the -country household that had something to sell could, by availing itself -of the parcels post, eliminate the expensive middleman and ship direct -to the consumer. Thus the city housekeeper could receive eggs, butter -and other things by mail at much less than she pays now. In scores -of ways the parcels post would tend greatly to decrease the cost of -living, for it would revolutionize the present cumbrous and expensive -methods of retail business. - -The United States Postoffice authorities will accept a package of not -more than twelve pounds in weight and not more than three and one-half -feet wide by six feet long for delivery at any postoffice in England, -Germany or in any one of the thirty-nine foreign countries blessed with -the parcels-post system, at a rate of twelve cents a pound. But you are -denied the privilege of sending the same package to any destination -in your own country at any price. A four-pound package sent to a local -point will cost the sender sixty-four cents while the same package can -be sent to New Zealand or Costa Rica for forty-eight cents. - -The parcels-post rates in foreign countries are very moderate. In -Germany, for instance, weight and distance determine the amount of the -charge. The distance charge is fixed by means of zones, the first zone -having a radius of ten geographical miles from the sending point, the -second twenty, etc. The charge for an eleven-pound parcel is six cents -within the first zone and twelve cents for every greater distance. -For parcels weighing more, the charge is the same for the first five -kilograms, but varies proportionately for each additional kilogram. In -Germany, the weight limit is one hundred pounds, in England eleven, in -France twenty-two and in Belgium one hundred and thirty-two pounds. -That there is no good economic reason why any civilized community -cannot have a parcels post seems to be proved conclusively by the -earnings of the postal departments of the governments that have tried -it. The postoffice departments of Germany and France each has a yearly -surplus of more than $14,000,000, and England enjoys a surplus of more -than $20,000,000--a striking contrast to our own Postoffice Department, -with its annual deficit of millions. - -“Then why don’t we have a parcels post?” you ask. The answer given -to this question many years ago by Mr. John Wanamaker, when he was -Postmaster General, means just as much today as it did then. - -“There are just four reasons against the establishment of a parcels -post,” said he. “They are the American, the Adams, the United States, -and the Wells Fargo Express Companies.” - -It has been said by some congressmen and postoffice officials that -there is no parcels post because the public has not demanded it. Why -not demand it now? Let every woman write to her husband’s congressman -and speak her mind! - -As pointed out by an Englishman recently in New York, one of the great -advantages of the parcels post is its celerity. “Before it came into -vogue,” he said, “customers often had to wait days for their goods. -Now, within the London radius, it is a case of only a few hours, for -the parcels post makes several deliveries daily. By paying a small -additional fee, ‘immediate delivery’ is secured. - -“The great retail houses, in increasing numbers, employ the parcels -post for sending home the purchases of customers, instead of using -their own delivery wagons. They find the government does the work for -them cheaper and better than they can do it for themselves. The price -charged, which is paid, of course, in postage stamps, varies from two -cents for a parcel weighing under two pounds to twenty-two cents for a -parcel not exceeding eleven pounds. Many of the London laundries now -send home the week’s washing by parcels post for the same reason that -the big stores are taking to it. The service cost less than that which -they had previously provided themselves.” - -This gentlemen dwells upon the importance of the fact that goods thus -conveyed by the government are virtually insured up to the value of -most packages sent. - - - - -Housekeeper. 31: 11-35. August, 1908. - -Parcels Post. George E. Miller. - - -Now what are the advantages and disadvantages of the parcel post? The -advantages can perhaps best be illustrated by reference to the work -done by the parcels post abroad. There, especially in Germany and Great -Britain, this great modern convenience has been brought to the greatest -perfection. And there it is worth studying. - -In the first place, it has been demonstrated there that the parcels -post is the greatest stimulant of domestic trade ever devised by man. -In the next place, it has made life in the country, in both Germany and -England as comfortable and convenient as in the city. And lastly, it -has proven so great a blessing in the cities, towns and villages that -in many instances merchants have disposed of their delivery wagons -and they depend upon the parcels post exclusively for the delivery of -merchandise to their customers, except in the matter of goods of too -much weight or bulk to go through the mails. - -In London the government runs motor wagons in all directions into the -country for many miles for the delivery of parcels, and this service is -being extended until presently it will cover the country. Parcels up -to the weight of eleven pounds are carried through the British mails, -while in some other countries the limit is much higher, Italy, Chile, -Cuba, the Netherlands, and New Zealand are the only other countries -holding the weight to the same maximum as Britain. In Germany and -Austria packages weighing one hundred and ten pounds are received, and -in Belgium the limit is one hundred and thirty-two pounds. In France it -is thirty-two pounds. In the United States alone the limit is as low as -four pounds while the rate with us is so high, sixteen cents a pound, -as to make the service prohibitive for ordinary use. Abroad the rates -vary, but they are always aimed to be not much above cost, and they are -materially lower than the rate now charged here, and much lower even, -than the rate proposed by the president, which is twelve cents a pound. - -No more enticing tale is told by the traveler returned from abroad -than that relating to the parcels post. In England, Germany, and some -of the other countries, the housewife particularly luxuriates in the -joint convenience of the telephone and the liberal mail service. Does -she want a spool of thread of a certain color and texture, or a bottle -of medicine, or a cake or loaf of bread from the bakery, or any one of -a thousand small needs, the necessity for which may come with all too -much suddenness, she simply steps to the phone and makes her request -and by the next visit of the postman she receives that which she -ordered. And yet, she may be ten or twenty miles from the nearest town. - -The farmers of those countries likewise receive untold benefit from -the same service. Not long ago a gentleman called at the post-office -department in Washington to relate a circumstance coming under his -observation. - -“I saw a Yankee demonstrating an American potato digging device to a -farmer in Germany,” he said. “Suddenly one of the parts of the machine -broke. It looked like bad business for the Yankee, but he, with real -American resourcefulness, sprang to the telephone and ordered a -duplicate part from his repository in a village two miles away, and in -twenty minutes the postman delivered it to him and the demonstration of -the digger proceeded to a successful conclusion. Of course, this was -an exceptional instance. Everything connected with it happened luckily -for the man selling the digger. His agent in the repository happened to -be right on the spot when the telephone message came, and the postman -happened to be just on the point of starting in the right direction to -make a speedy delivery. But it seemed to me to tell an eloquent story -of the parcels post, and its effectiveness.” - -A red-headed, freckled, vivacious manufacturer from Detroit was in -Germany not long ago and he also brought back a fund of parcels post -stories. But his most significant statement was in regard to the effect -of the service upon the country merchant. - -“No man,” he said, “can study this question abroad and retain the -belief that the parcels post will ruin the country merchant. On the -contrary, it has been the making of him. The country merchant of -Germany is far more solid and substantial since the introduction of -the parcels post than he ever was before. It has made him a permanent, -fixed cog in the industrial scheme of that country and given him an -opportunity which he never had before of making himself indispensable -to the community in which he does business. - -“How did this happen? By the natural evolution of events. Nothing -else. The wholesale houses of Germany simply stepped into the field -themselves and issued catalogues as fine as any the mail order houses -could produce. And these they placed with the country merchants in -every town and village in the empire. The result was that each merchant -had several dozen catalogues upon his counters for the benefit of his -customers. He was authorized to say to all who came: ‘Here I am. You -all know me. You know whether I am responsible. If you give me your -order and the goods do not prove to be exactly as represented, you need -not take them and I will refund your money. If you want goods of the -same grade as those sold by the mail order houses, I can sell them to -you, and at the same price. And I also have better goods which will -cost you more. But I can give you exactly what you want, and as cheaply -as any one.’ - -“In the meantime the country merchants have been able to greatly reduce -the stocks carried in their stores. This reduced the amount of capital -tied up in their business. And yet, by means of the catalogues, their -customers were able to select from as large an assortment as they could -in the largest stores, in Berlin. - -“And this latter fact is amply recognized by the people of Germany. -They step into a store in the most remote village of the country, and -make their selections and place their orders, securely confident that -they have seen all they could have seen if they had made the journey -to one of the large cities. And they are all satisfied. They regard -their mercantile system as the very best on earth, and I think it is. I -had occasion, while visiting at a house out in the country one hundred -miles from Berlin to need a dress suit, and I didn’t have one on that -side of the Atlantic. I rode to the nearest village one morning, -stepped into a little store, was measured by the storekeeper, and by -mail that afternoon received a very fair ready-made evening suit. I was -both pleased and surprised but the circumstance was a matter of course -to the people I was visiting.” - -These are some of the advantages of the parcels post. Now, about the -disadvantages. These would, in this country fall exclusively upon the -express companies. These unaccommodating friends, who have been with us -so long, and who deliver nothing at your door unless you chance to live -in a large city, would doubtless suffer the fate of the German mail -order houses if the government of the United States were to inaugurate -a parcels post upon the same scale as that in Germany. They would have -to go, for who would pay the higher price to have a parcel sent by the -nondelivering express company when the mails would be both cheaper and -would deliver the parcel at your door in city or country? - -As for the country merchant, of course, he would demand the German -system, and equally, of course, he would get it. Otherwise, he also -might have to walk the plank and the wholesalers of the United States -would never permit that. They could not afford to. - - - - -NEGATIVE DISCUSSION - - - - -Perils of Parcels Post Extension. pp. 13-31. - -George H. Maxwell. - - -_A Heavy Deficit Inevitable_ - -The commercial advocates of larger bulk and lower rates by domestic -parcels post for the shipment of merchandise by mail do not want either -a distance rate or a system limited by territorial zones. They want the -privilege of shipping from any factory or central store or warehouse, -wherever located, anywhere in the United States, to any customer or -consumer, at any postoffice, however remote or inaccessible, in any -state or territory. The rate desired is a flat rate of so much per -pound without regard to distance. - -It is urged that the same rate should be charged by Uncle Sam for -carrying merchandise by parcels post from a New England factory to -the distant mountain mining camps in Idaho or Oregon, or to the -prairie towns of Texas, as would be charged for delivering the same -package from the same factory by local trolley car service to a nearby -postoffice in the immediate suburbs of the New England city where the -factory happened to be located. - - -_Government Bears the Burden_ - -The national government in each and every case would pay the full -actual cost of transportation and delivery to the point of destination, -whether it were by trolley, railroad, stage-coach, wagon, pack-horse, -mule, sled or snowshoes. Of course it is not contended that the -government could secure an average or flat rate for the cost to it of -transporting merchandise by mail, the same to all points in the United -States, as it is urged that it should charge. On every package mailed -the government would of necessity pay the full cost of carrying it -from the point of shipment by mail to the place of delivery to the -consignee, no matter how great the distance or how costly the character -of the transportation. - -In other words, while the government is expected to and of course must -itself pay the full distance cost of transportation and delivery in -every case, and could not give the service unless it did so, it is -expected to look for reimbursement wholly to an average flat rate, -like the rate for letter postage, or the present rate of the existing -domestic parcels post for small parcels--a rate that is the same -everywhere, without regard to the distance from point of mailing to -point of destination. - - -_Averages Are Misleading_ - -The argument of averages is relied on to meet this insuperable -objection. It has been suggested that the average haul of all -second-class matter (which comprises only regularly entered -publications, periodicals and magazines) was 540 miles in 1907, as -shown by the report of the Postoffice Department, and on that as a -basis it was estimated that an average rate of 5½ cents per pound or -$29.70 per ton for other transportation charges, and $165.00 for labor -and supplies, a total of $212.00 a ton, would leave a profit to the -government of $27.00 a ton from a general parcels post rate of 12 cents -a pound, which would produce a revenue of $240 a ton. - -The estimates given above were embodied in an address by the Postmaster -General before the Union League Club at Philadelphia on October 26, -1907. - -For reasons based on facts that are undeniable and unquestionable, -these averages and the estimates based on them, would prove utterly -delusive and misleading when put to the test of a practical application -of the proposed extension of the domestic parcels post to include -merchandise in larger bulk and at lower rates than those now authorized -by the postal laws. It is not necessary that the proposed extensions -should be actually tried to demonstrate the deceptiveness of these -average estimates. The conditions are before us and arise from facts so -clearly known and established that he who runs may read. - - -_The Average Haul_ - -The average haul of second-class mail matter, made up of printed -reading matter, for every copy of which a regular subscription must be -paid, is fixed by and is in proportion to the average density of the -population. - -To illustrate this, take the city of New York as a starting point. It -is the leading publication center in the country, and a larger number -of publications entered as second-class matter are issued from the city -of New York than from any other one city of the country. - -The population of New York state in 1906 was estimated to be 8,226,990. -The population of the state of New York alone is as large as that of -the whole western half of the United States, and yet that whole western -half of our territorial area contains only about one-tenth of the -entire population of the country. - -The average number of subscribers receiving regular publications -through the mails as second-class matter in proportion to population -is as large in the one state of New York as in the entire western half -of the United States. So the Postoffice Department would serve in New -York state, within an area of 48,204 square miles of closely settled -territory, as many subscribers for second-class mail matter as it -would be compelled to serve over a sparsely settled region in the west -covering 1,513,394 square miles, that being the area of the western -half of the United States, not including Hawaii and Alaska. - - -_Second-Class Mail Matter_ - -An average length of haul of second-class mail matter now carried by -the national government would be much greater if limited to the one -state of New York and the western half of the United States, than if -applied to the entire country; for the very simple reason that the -vast sparsely settled area in the west would comprise one-half of the -total number of subscribers served; whereas if the whole United States -were included, then the western half with its sparse population would -embrace only one-tenth of the whole number served, and nine-tenths -would be located in the more closely settled eastern half of the United -States. - -In other words, in averaging the length of haul of second-class matter, -nine-tenths of the people served are in closely settled territory, -where they are reached by the short haul, and only one-tenth in the -thinly settled western half of the country, to be served by the long -haul, and oftentimes by the most difficult and expensive methods of -transportation. - - -_Conditions That Control Are Reversed_ - -The principle that controls the average in estimating the length of the -haul of second-class matter is that as the proportion of density of -population increases the average length of the haul is decreased. - -It is naturally assumed that the same principle would control in -fixing the average haul of transporting merchandise by mail if the -movement for an extension of the domestic parcels post should prevail; -but strange as it may seem at first thought, the exact contrary would -happen. The principle that controls the average haul in the case of -second-class matter would be reversed in the case of parcels post -extension. The greater the distance the more remote the territory, -the more sparse the population the larger would be the proportion of -merchandise shipments by mail as compared with the whole volume of such -shipments. - -The reasons for this are, first, because the express companies with -their flexible distance rate system would practically surrender the -distant territory and make a rate on nearby points so much lower than -the government rate that the short haul service would go to them, -leaving the long haul shipments for the government; and, second, -because it is the distant market that merchants and manufacturers -desiring to trade by mail wish to reach by the parcels post system of -delivery and which they would exploit if the opportunity were created. - - -_Impossibility of Adjustment_ - -Every effort of the national government to readjust an average flat -rate so as to meet this condition, and command for the parcels post the -desired proportion of nearby business, would simply be to get out of -the frying pan into the fire. To lower the average flat rate so as to -compete with express companies in nearby territory and on the short -hauls would stimulate the volume of long distance shipments and still -keep the balance on the wrong side of the ledger. To raise the average -flat rate, so as to secure a larger revenue from the long distance -shipments, would widen the circle within which the express companies -would be able to command the business by a lower rate and reduce the -government revenue by taking away from it more of the short haul -business. - -It has been urged that one reason why the proposed extension of the -domestic parcels post should be adopted is that it would lower the -express rates. If that should occur the rates would, of course, be -lowered in the territory, where by lowering their rates the express -companies could command still more of the short haul business, and -thereby increase the proportion of long haul business that the -government would have to carry at a loss. Every time the express -companies lowered their rates it would increase the annual deficit that -would be incurred by the government. No business proposition could be -more simple. The government would be in the position of having entered -into a competitive business. It would have done this after adopting -at the start a system that made it impossible for it to cope with its -competitors. Whatever flat rate the government established would be -met by a lower distance rate by the express companies that would take -the short haul business from which the government could earn a profit, -leaving to the government the long haul business that it could only -conduct at a loss. Nothing that the government could do would prevent -this, because it would make the conditions worse one way or the other -every time it either lowered or raised its flat rate. If the flat rate -were lowered, the proportion of long haul business would be increased, -and the losses be as great as ever. If the flat rate were raised the -proportion of short haul business would decrease, and the average cost -would still create a heavy deficit. - - -_Act With Open Eyes_ - -The fact is, the United States government cannot carry merchandise by -parcels post without having to meet an enormous annual deficit for -conducting the service, and the service should not be undertaken by the -government unless such a deficit is to be deliberately and knowingly -created and assumed by the people at large. The government is asked to -undertake an impossibility, if it is expected to make the service pay -for itself, when it is asked to adopt the proposed extensions of the -domestic parcels post. - -A flat rate system of charge cannot, in the very nature of things, be -operated in this country without loss. The only way to avoid such loss -would be the adoption of a distance tariff by the government, just as -is charged by the express companies. The proponents of domestic parcels -post extensions do not advocate such a distance tariff system and it -will be time enough to consider its merits if it ever comes before the -people for serious consideration. The fatal defect in the reasoning -of the advocates of the proposed parcels post extensions is that they -disregard the fact that we live in a country as broad as a continent -and extending for over three thousand miles from ocean to ocean, and -that in all that vast territory we have a population of only something -over eighty million people. - - -_A Subsidy to a Favored Class_ - -Should the mail trade have a government subsidy? - -That is a very plain and simple question, and the answer to it -will also answer the question whether the shipment and delivery of -merchandise by mail should be facilitated and undertaken by the -government as advocated by the proponents of domestic parcels post -extension. - -If there is any good reason why the mail trade should be encouraged -by government subsidy, it has never been set forth by any advocate of -parcels post extension. - -And yet, that is exactly what the proposition amounts to in its -practical application. It would not be a subsidy that would create new -business where there was none before. If it would do that it might be -an argument in its favor. Instead of doing so, it would take the trade -from the merchants, both wholesale and retail, who are now doing it, -and transfer it to new and wholly different agencies, who would be -enabled to secure the trade because of a direct advantage given to the -new agencies by the national government at the expense of the general -public. - - -_Who Are the Favored Class?_ - -Whether the seller or the consumer, under this system of a government -subsidy for the mail trade, were to be regarded as the favored class, -the result would be the same. A favored class would be benefited at -the expense of the people at large, and without any advantage to the -general public that would warrant it. - -For many reasons the consumer in the long run would be injured more -than benefited by the establishment of such a system for doing the -business of the country, and ought for this reason to be eliminated in -defining the favored class. Temporarily, and considering only immediate -cheapness of needed merchandise, the consumer might imagine himself -benefited, and probably would, but that benefit would be involved and -submerged in far greater indirect losses in the future. - -So the favored class, in the last analysis, would be the great -catalogue concerns, and manufacturers who desire to eliminate the -jobber and the retailer and country merchant and sell direct to the -consumer, using the mail as the agency of transportation and delivery -to the purchaser. - -Without regard to any of the many serious objections to this system of -trading, based on social and economic reasons, there is no possible -ground upon which a subsidy for the encouragement of this mail trade -should be given out of the United States Treasury and at the expense of -the people at large. - - -_Effect of a Subsidy_ - -And when the effect of that subsidy would be to break down long -established commercial customs, and divert the trade from institutions -now successfully and satisfactorily conducting it, there is no more -justification for such a mail trade subsidy than there would be for -the government to carry some new brand of flour cheaper than the old -established brands--in order to enable the manufacturer of the new -brand to introduce and sell the product of his mills. - -The growth of the mail trade, under its present limitations, has been -stupendous, and multitudes of retail and country merchants have been -injured, and many driven to the wall by it. But its future growth -would sweep over the country with an irresistible force and wipe out -of existence many thousands of now prosperous retail and general -merchandise stores, if a subsidy were granted to the mail trade in the -form of the proposed extensions of the parcels post. - -There are many manufacturers who are doing business along the regularly -established lines, selling goods to the jobber or the retailer, who -are not now seeking or advocating any change in the channels of trade, -but those manufacturers would change their system and enter the field -of the mail trade if the advantages advocated by others were gained -for it. If the avalanche of mail shipments that would follow the -inauguration of such a mail trade system were ever once started no -one could foresee the end or define the limits of the evils it would -ultimately accomplish. - - - - -Independent. 70: 72-3. January 12, 1911. - -Objections to the Parcels Post. Allan W. Clark. - - -There are probably a hundred really national organizations of dealers, -and several thousand state and local organizations--generally -affiliated with some of these national bodies. These embrace -practically every line of retail merchandising and the ramifications -of various interests among them. The individual, due paying membership -in some of these larger organizations, like the National Association -of Retail Grocers, the National Retail Hardware Association and the -National Association of Retail Druggists, is from 50,000 to more -than 100,000 each. I have never heard of any association of retail -dealers that is not on record against the extension of the domestic -parcels post in any form, especially the R. F. D. “entering wedge,” -except the organized department stores in one or two cities (such as -“The Merchants’ Association of New York”), who want this practical -government subsidy for the benefit of their mail order departments and -for cheaper local and suburban delivery. - -I have mentioned only retailers’ organizations, whose resolutions on -this subject, during the convention season, crowd the pages of all the -trade journals. Nevertheless, practically all the organizations of -wholesalers and manufacturers, besides many local commercial and civic -associations, are opposed to the parcels post, and like the retailers, -have been fighting it for years. Conspicuous among these is the Chicago -Chamber of Commerce, the leading members of which, thru the “American -League of Associations,” are pushing a national campaign “to assist -the retail merchant and to co-operate with other associations in the -protection and development of home trade, and (the italic emphasis is -theirs), _specifically, this organization is now opposing the proposed -parcels post legislation_.” - -These dealers, jobbers, manufacturers and others interested in the -maintenance and the improvement of the local stores and the local -community, and who oppose any extension of the domestic parcels post, -vie with its advocates in denunciation of the extortionate charges of -the express companies. But they go further--their associations are -fighting in many states to secure state regulation of express rates -and classification; and they are making practical progress, with every -prospect that their appeals for national regulation will be recognized -by the Interstate Commerce Commission, which has just won its fight -to regulate sleeping car charges. The opponents of parcels post want -lower and equitable rates for the transportation of small packages -of merchandise, but they believe that these rates, like those on the -transportation of larger packages, should be investigated and regulated -by the Interstate Commerce Commission, especially as various state -railway boards have recently demonstrated the fact that the express -companies are chiefly owned by the railroads and are merely vehicles -to bring into the coffers of the railroads larger profits than can be -secured thru government regulated freight rates. - -That any one can find an example for the United States in the parcels -post systems over government owned railways in European countries, -the largest of which is smaller than Texas, is incomprehensible to -the average business man who is not asking for a government subsidy -to arbitrarily annihilate distance and the natural local advantages -of thousands of local business communities in order to increase the -present $200,000,000 mail order business; and this in a nation that -maintains a high tariff wall that may or may not “protect” the American -manufacturer, farmer and workman, but the chief effect of which, so far -as the distributor, the dealer, is concerned is to place him between -the upper and nether millstones--the butt of criticism, the subject of -Congressional inquiry on the high cost of living! - -The mail order houses want a general parcels post; the general business -community is opposed to it. Suppose that both are actuated by selfish -reasons, one to gain an arbitrary advantage and the other to prevent -it--where do the people come in, those besides the mail order men and -the million retailers and their families? - - - - -Further Thoughts on Parcels Post pp. 3-5. - -Charles W. Burrows. - - -Postmaster-General Meyer in an address to the New England Postmasters’ -Association, Boston, October, 1907, and elsewhere, made recommendations -urging legislation giving to the Postal Department a greatly extended -parcels carrying service. The recommendations made were mainly two. - -First. That the present rate of sixteen cents per pound for the mail -carriage of merchandise with a weight limit of four pounds per parcel -as the maximum shall be changed, reducing the rate to twelve cents per -pound (with fractions at rates from one cent up) and increasing the -weight limit to eleven pounds. The recommendation was that this should -be, like the letter charge, a flat rate to prevail anywhere within -the United States and its possessions irrespective of distance or -accessibility. - -In support of this, his first proposition, he calls attention to -certain inconsistencies now existing in the service. He states that -an individual entering any post office in the country with a parcel -weighing four pounds, addressed to New York city will be obliged to -pay sixty-four cents for its carriage by post. If on the other hand it -is to pass through New York city to any one of the thirty-three foreign -countries with which we have postal conventions, the charge will be -but forty-eight cents. Further, should the package weigh more than -four pounds, it will be denied admission to the mails in this country -while it will be accepted and forwarded to any of these foreign lands -if it weighs up to four pounds six ounces, and in the case of some, -twenty-four of the countries it will be accepted even if it weighs so -much as eleven pounds, and it is on account of these inconsistencies -that he urges his legislation. - -Let us first examine this point. General Meyer is quite correct in his -statement that it does cost more to send, for example, a pair of shoes -weighing just four pounds from Brockton, Massachusetts, to New York -city, than it would cost to send the same pair of shoes through New -York city to any one of the thirty-three foreign countries with which -we have postal conventions. - -General Meyer, however, fails to state that while there is this large -number of foreign countries with which we have postal conventions, yet -not a single one of the twenty-four countries with which we have an -eleven-pound convention is on the map of Europe. They are all of the -nature of Jamaica, the Windward Isles, Venezuela, Barbados, Costa Rica, -Danish West Indies, etc., countries with which we do not do any great -volume of business. - -It may further be stated that the weight limit with the remaining nine -countries, most of which are European, is in reality intended to be the -nearest approximation to our own domestic four-pound limit, that is, -it is two kilograms--about four pounds six ounces--and the European -countries all closely scrutinize this weight limit as the business is -one that involves a loss in its operation. Germany, for example, for a -number of years recognized an eleven-pound limit but changed to the two -kilograms about three years ago. - -It should be borne in mind, moreover, that the exchange of parcels -between these countries and our own is made as a matter of comity or -international courtesy, and is permitted because the amount involved -is small. The work is done, too, in connection with the carriage of -first-class mail which produces a large profit. - -To illustrate this matter, Great Britain carried in her parcels post -last year 104,819,000 parcels. Of these only 2,575,000 (less than 2½ -per cent) went out of the country to all foreign countries, her own -colonial dependencies included, and to the United States she sent only -61,000 and we sent to her 89,000 only. The difference which is after -all what we make or lose upon, was some 28,000, and that was but a -fraction of a tenth of 1 per cent of the whole business. With some of -the other countries in question, we exchanged less than 1,000 parcels -in the last fiscal year, and with one of them it was less than 100, -while with all of them aggregated it was a total of but 330,000 parcels -dispatched and 181,000 received; so when we examine this question of -inconsistencies microscopically we find that it is truly of microscopic -proportion only, and may be disregarded as having no important bearing -upon the general question. - - - - -One Cent Letter Postage, Second Class Mail Rates, and Parcels Post. pp. -14-22. - -Charles W. Burrows. - - -Paternalistic, socialistic legislation does not diminish the expense -account, but simply transfers it from one person’s shoulders to those -of others. It is with a people as with a person. If a father gives to -his boy a pair of shoes, the shoes cost the lad nothing, they are to -him as if they had descended from the skies, but the cost is a charge -upon the father, unless he stole them, and even if acquired dishonestly -the cost has simply been moved back upon the shoulders of the merchant. -The compensation for the labor of producing the pair of shoes and of -transporting them to the place where they are put to service is just as -much a charge upon the community whether one individual pays for them -or another. Similarly if the users of any governmental service do not -pay a high enough tariff for that service somebody else must foot the -bill. - -Now to endeavor to demonstrate that whether the rates imposed for such -service be high or low the government will inevitably be a loser and in -large amount. To this end let us examine for a moment the parcels post -systems of foreign countries. - -In Germany a zone system prevails, but the tariff is always low. In -England, a flat rate prevails, and this also is extremely moderate. And -low rates prevail in other foreign countries. - -But circumstances alter cases, and with other things we should bear in -mind that the total area of Germany is but 208,000 square miles, while -the area of the one state of Texas is 265,000; in other words, Germany -is but four-fifths the size of Texas. The area of France is almost -exactly that of Germany, again but four-fifths the size of Texas. The -area of England is 50,000 square miles, less than one-fifth the size -of Texas. We have 26 states, any of which is larger than England, and -several many times larger. The area of Switzerland is just under 16,000 -square miles, and you can put nearly seventeen Switzerlands into the -one state of Texas. The area of Belgium is but 11,000 square miles; you -can put 24 of it in the state of Texas. Again the density of population -in England is over 550 to the square mile; that of Belgium, more than -600 to the square mile; of Germany nearly 300 to the square mile. - -Moreover, no haul in England can be long and but few hauls in the -United States would be short. You may perhaps be able to take 550 -parcels from a central originating point like London, carry them for -an average haul of 41 miles, which is the case in that country, and -deliver them all within one square mile of territory at a small tariff -per parcel without material loss, though even England is losing money -upon this service with all conditions favoring. - -But remember that the density of population of the United States by -the last census was under 25 to the square mile, and that the parcels -post service would not be mainly operative in densely populated Rhode -Island and near the large cities like Boston, New York, Philadelphia, -etc. If we imagine that 550 parcels are sent from New York city over -a long haul of more than 1,500 miles to the state of Wyoming, where -the density of population is one to the square mile, and have to be -distributed to 550 distinct individuals resident in 550 separate -square miles of territory, no sane business man can doubt that at any -tariff likely to be imposed the government would be a heavy loser. - -According to one expert’s estimate, it is possible to carry the -second-class mail matter for short distances on dense traffic routes, -and in quantity lots to one address, that of a news dealer, for -example, as is done for the average daily paper for the part of its -circulation that goes by mail, up to 45 miles with little loss even at -this low 1c a pound rate, though first-class mail at the rate paid by -it can be transported nearly 5,000 miles before the service shows a -loss, and post cards over 11,000 miles. - -Now let us suppose a parcels post statute to be enacted, and that the -rate be put at anything you please from 5c per pound to 10c per pound. -Even at the low rate of 5c per pound the express companies will do the -nearby business. If the rate be 10c per pound, the government will -have less to do, but it will still have much with the weight limit -considerably increased over the present amount. And if the rate be put -at 12c per pound, still the government will not make money, not on a -single parcel that it carries. All service that can be rendered at a -cost of less than the government charge will be handled by the express -companies. - -We cannot have as does Germany a zone system. But without the -operation of a zone system, or a monopoly as on first-class matter, -the government will get all of the losing business and none of the -remunerative. - -A friend of mine made a visit a few years ago to the state of -Washington. First he took from Cleveland a 2,000 miles railroad ride. -He then had a day and a half steamboat ride up the Columbia river, -following that a two days’ stagecoach ride to the remote locality that -he was visiting. - -He remarked to me in connection with this trip that he should like to -see the government handle a parcels post service for that country at -a profit, even at a rate of 25c a pound, and added that every pound -of anything that went in there would most assuredly be handled by the -government were a parcels post service in operation, for it would be -the cheapest method of getting things there. - -Now, the only reason we can have a flat rate upon first-class mail is -because the government makes that a monopoly, and you can send your -letters in no other way than through the post office. Hundreds of -millions of profitable short haul letters carried between the largest -cities of the country where traffic is very dense take care of the -proportionately small number of expensive long hauls. - -To show how necessary this may be, permit me to inform you that the -first batch of letters the government sent to Circle City, Alaska, -though each was carried upon a 2c stamp, cost the department some $450 -per letter. And it is solely due to the fact that the carriage of -first-class mail is a monopoly that inheres in the government that, -in spite of such expensive occasional service as this to Alaska just -cited, a large part of the receipts from first-class mail are net -profit. - -Now, even at the low 1c per pound rate accorded to the monthly -magazines and other periodicals, not all of their wares are sent by -mail. There is you know no monopoly of carriage. The publisher can send -packages of his magazine ahead of time by slow freight at less than -the 1c per pound tariff, this freight service being used for the large -lots going over main transportation lines between the great cities and -without expensive changes of route. But upon the quarter hundreds and -half dozens and single copies that go for long distances by expensive -changes of route and to remote rural localities from back of Portland, -Maine, to back of Portland, Oregon, from the upper peninsula of -Michigan to the everglades of Florida, and to the crossroads and rural -free delivery customers of Ohio, New York and other states of the -Union, the government gets the losing job of carrying the periodicals. - -I have endeavored in the explanation above to show that the difference -in social condition, density of population, length of haul, ability to -inaugurate a zone system, etc., will operate against our doing at a -profit what may be attempted though even there unsuccessfully, in Great -Britain, Germany, etc. - -In Great Britain they pay for transportation but 55% of the charge, -having thus automatically 45% left for other expenses, and if anybody -can do the work at a profit they certainly are in position to attempt -it. - -Again the average pay of a British postman is only one-half what we -give our carriers, which is another feature that must be reckoned with. - -The first year they had this service in operation, it showed a heavy -loss. They were keeping account of the business, so much in detail that -if a man worked in two different branches they divided his salary. -The eminent gentleman who fathered the system, then said: “Oh, well, -you can’t expect that it should be profitable the first year. This -year we will make it profitable.” The next year the loss was more than -doubled. “Well,” said he, “bookkeeping is expensive, let us discard -bookkeeping.” And since that time they have kept no expense account on -the parcels post system. - -Now let us examine what would result in the United States if we were -to enact parcels post legislation and attempt to get it in successful -operation. - -I wish to make a quotation from the “Catholic World” of June, 1905, -describing the operation of the parcels post system of Germany by a -writer who favors its establishment here. He says: - - “Anyone who has stood in a German post-office, and has seen - the constant stream of men, women and children, pouring in - through the doors with packages of all descriptions and sizes, - and lining up in never-ending rows before half a dozen and - more receiving officials; who has watched heavy wagons driving - up to the doors and depositing hundreds of packages, and who - has noticed the mountains of parcels heaped up in rear rooms - of the post-office, cannot but have been forcibly struck with - the magnitude of the parcels post system of transportation in - Germany.” - -Does it not occur to the most casual thinker that if a comparable -service were enacted in this country the postal facilities of every -city would be inadequate to the work? Why, you would have to have -in New York city one hundred times as great an amount of space at -your disposal as the Post Office Department has or can readily get -at present. It would involve a thorough readjustment and enormous -expansion of the post office facilities in every large and small -city of the United States, involving an equipment expenditure which -would run to hundreds of millions of dollars--this irrespective of -the question whether it would produce a profit or a loss in operating -expenses. - -There are in the United States more than 50,000 fourth-class -postmasters of these 50 per cent get $100 per annum or less, and 25 -per cent of them get less than $50.00 per annum. How long would it be -before they would demand an increase of salary to something like $75.00 -per month or more? - -The Vice-President of the J. F. Stevens Arms and Tool Co., told me -that if such a service were inaugurated as that of Great Britain, it -would change entirely the methods of distribution of his own house. -They would be obliged to discontinue their present freight shipments -of arms in carload lots to the Pacific Coast at a rate of $3.00 per -hundred pounds upon a twenty-day time schedule for transportation, and -take advantage of the pound rate that the government would give to them -upon a six-day time schedule; that while it would involve increasing -their office force from less than 50 to more than 500 to handle the -work, the savings would be so large that they would have to do this -and to inaugurate many other most radical and far-reaching changes in -organization. - -If this meant that the service was going to be reduced in cost, while -at the same time shortening the time schedule by more than two-thirds, -always an important factor in increasing rather than in diminishing -expense account, we should all of us find it our duty to welcome -the innovation, great a wrench as it might give to our business -connections. But the costs of the service will not be changed, simply -it will be a different set of people who pay them and no longer would -all the costs be paid by the proper parties--the manufacturer and his -customer, the consumer--but a large proportion by the public at large -in some way or other. - - - - -Parcels Post. pp. 6-15. - -John A. Ordway. - - -I question whether there is a man in this hall who actually believes -that one cent of benefit will come to the farmer through reduction in -his cost price of anything he buys because of postal delivery. Each one -of us knows from practical experience that even should the method of -distribution be shifted, still the expense of reaching the consumer -would increase by the methods advocated, which combined with the -profits of inevitable monopoly would cause the poor farmer to wonder -whether this alluring vision of substantial comfort had vanished. Yet -this sham shibboleth of benefit to the farmer has other advocates -besides this small percentage of theorists. The most persistent, -continuous, noisy clamor has proceeded from those whose selfish -self-seeking is as plain to the searcher for motives as the printed -types upon their pages. The editors of various magazines and newspapers -not in touch with the cost and expenses of mercantile life have -almost universally used their columns to create a public sentiment to -accomplish this commercial revolution. Their solicitude for the farmer, -their keen distress at what they term his unfortunate dilemma in being -forced to supply his present needs through present channels, would -wring the stoutest heart, were it not for the perhaps uncharitable -suspicion that their tears were of the crocodile variety, and their -anguish a thin disguise for rank cupidity. “The poor farmer,” more -advertisements; “the unfortunate farmer,” for more advertisements; “we -love and would protect the farmer,” still more advertisements; “we will -organize and preach of deliverance,” for more advertisements; and so -on and so forth shall be our cry until the jobbers’ percentage and the -retailers’ narrow margin shall be diverted into “more advertisements,” -has been the wailing but insistent note everywhere. “No matter if the -actual cash loss of second class matter in 1909 did show a grand total -of $64,128,000, what care we? Still shall our cry be, ‘Help the poor -farmer.’” Shame on such transparent hypocrisy from a public press that -should lead and inspire by truth untainted by the virus of debased -commercialism. - - -_The Consumer Will Buy Goods No Cheaper_ - -I may be wrong, but I firmly believe that the development of the -mail order house or the increased adoption of direct selling by -manufacturers, aided by governmental postal delivery, would not confer -one benefit on the consumer in cheapened prices, because of these -facts. The change in the method of distribution would be merely the -shifting of the final price from one shoulder to the other. The margin -between the actual net cost of manufacture and the price paid by -the ultimate consumer is at present divided in varying proportions -into the profits of the maker, the percentage allowed the jobber -for economical distribution, and the final profit of the retailer -in completing this distribution, and in each case competition, that -most effective friend of the consumer, has forced these margins down -to a low general average. Assuming that the jobber and the retailer -have been eliminated and that the manufacturer sells direct, is there -any possible advantage that the consumer or the farmer would obtain? -Decidedly not. The manufacturer would, of a necessity, be compelled to -make and hold a stock of goods ready to respond to instant call. His -cost of manufacture would immediately increase for the reason that his -quantity would be wisely restricted, awaiting the edict of whimsical -fashion, and his sole dependence for the sale of his product would be -that obtained from extensive advertising. I do not believe there is a -man here tonight who has any knowledge of the expense of an advertising -campaign, but will admit that the usual profits of both jobbers and -retailers combined would fall far short of the expense necessary to -continuously maintain any general range of articles of fashion or -utility by advertising alone, and every large advertiser, even if this -stock be protected by trademark or patent, will bear testimony that -not only does the expense of advertising continuously increase, but -also that any cessation of publicity results in immediate suspension of -sales. - -The second argument or sham pretext for action is that advanced -relating to express companies. - - -_The Interstate Commerce Commission Now Has Power to Adjust and -Regulate Express Rates and Will Regulate Them_ - -I am aware, and expensively so, that this monopoly is a menace both to -our pocketbooks and to the general prosperity of the community. Their -course of action is guided by those who fully exemplify the modern -greed and relentless clutch of soulless corporations. Personally, -in their private homes, or in open contact in social gatherings, -these organizers and executives of express companies are attractive -as friends or companions, but officially, and as part of their -corporations, their individuality is lost and the Golden Rule is -locked away to be used only on Sunday or in the imminence of death. - -The dangers that confront a free people when monopoly obtains a -stronghold have been freely discussed during the past few years, and -wise restrictions have been placed among our laws. At this very moment -the rates and methods of express companies are being considered by the -Interstate Commerce Commission, and from them we may expect the same -fair-minded decision as recently shown in railroad matters. The laws -are on our books. It is for us to urge, argue, even threaten that they -be obeyed, but the appeal of the proponents of the parcels post bill -that we punish the express companies by starting a government monopoly -in opposition has about the same force to me as an invitation to jump -from the frying-pan into the fire. The power is always ours to regulate -by law, and the law is already ours. One-half of the same energy in -letters, telegrams and petitions asking and insisting on the immediate -action of the law, as has been shown in the propaganda for the novelty -of the parcels post, would have produced results long ago. If this -association, if the various boards of trade, or chambers of commerce, -should manfully and persistently follow this line of action, results -would follow, and thus avoid the dangerous expedient of increasing the -already formidable list of government officials. - - -_Objections to Parcels Post_ - -Passing from the consideration of these elusive and mendacious appeals -by self-seeking interests, I ask your attention to what in my judgment -are positive objections to the parcels post, objections that are not -based wholly on dollars and cents, but on the broader principles of -humanity that are above the fleeting tribulations of our little hour, -and whose laws of action create or destroy states or nations as they -are applied wisely or unfortunately. - - -_Will Injure Country Communities_ - -John Stuart Mill, one of the strongest reasoners in political economy, -stated in an incisive sentence that “The community that contains the -greatest diversity of industries will always be the most prosperous -and intelligent.” It would seem as if his vision were prophetic of -our loved New England, where towns and villages contain within their -borders the farmer, the manufacturer, the merchant, the teacher, -living in useful harmony, and by their diversity of thought and action -producing men equipped to accomplish the destiny of this wonderful -land. Such environment, such healthy conditions, produce the character -of Americans that the country needs, and the practical benefit from the -New Englander reared in such communities is impressed upon all sections -of this great land. It is to wither and destroy these safeguards of -national security that the proponents of the parcels post intend. In -their infinite wisdom they would sweep the village aside in their zeal -for the mail order octopus and the magazine advertisements. A great -city whose water supply is polluted is in serious danger; a great -community that stems or hinders the growth and influx of healthful men -is short-sighted, and decay will follow. Totally aside from personal -gain, I believe we should steadfastly oppose any attempt, open or -concealed, to sap the vitality of the New England town. Boston exists -because of New England, and Boston should protect its own. - - -_It Will Increase the Horde of Government Employees_ - -Another objection to the parcels post is that its operation will add -a tremendous force of government officials to the already swelling -list. Excepting always that human hog who never votes, never reads, -never thinks, but roots and grubs along, grunting out one single -word, “Dollars,” which happily die with him, this objection should be -considered by all thinking men. The stronger the intrenched force of -the party in power, the more difficult will it be to effect needed -reforms when stagnation in office produces disease. - - -_It Limits the Field of the Individual_ - -Another objection is that our government of free men was never intended -to block or hinder the pathway of individual endeavor. Rather was its -function to be that of aid or protection to insure equal opportunity -under sane restriction. Following this connection and not to be lightly -regarded, is the assumption that is clearly foreshadowed, that -should the government engage in the transportation of merchandise the -inevitable result would be the national ownership of the railroads, -thereby still further increasing the centralization of power, which is -diametrically opposed to the conception and scope of our general system -of representative government. - - -_Extravagance Will Be Augmented_ - -Again a serious objection is that the transfer of conditions of -transportation with its accompanying word paintings of alluring -advertisements would tend to increase general extravagance, -particularly in those sections where prudence is necessary for -happiness, or precaution for old age. A distinguished writer has said -that more discord and misery are caused in this country by our national -extravagance than from any other source, not excepting the results from -alcohol. - -Still again, it is closely argued with logical coherence that the -various monopolies that now practically control many branches of trade -would welcome the development of large distributors at the expense -of the present countless individuals, because of the greater ease of -organizing in combination. The tremendous sales and enormous profits -of one mail order house are the subject of daily comment, and should -the government lend its aid to still further increase these figures, -the time would not be distant when similar institutions would start -into life in other sections. Backed by ample capital, and equipped with -the experience regarding methods, their success would doubtless become -immediate, until such time as competition among themselves endangered -profits. - -It is no fanciful assumption that when that point is reached -combination or absorption will add another impregnable monopoly to the -already threatening list. - -The present monopolies have produced such colossal and unwieldy -fortunes that the employment of their surplus is a constant thought, -and so rich a plum would not escape. - -Finally, for I have detained you gentlemen long enough, is the rank -injustice of this proposed measure. If by taxation of the people as a -whole, some permanent benefit be obtained, two blades of grass be grown -where one existed, or even one section developed through the agency -of the whole country’s help, no one would more eagerly advocate such -action, for I realize that a healthful growth spreads its benefits -everywhere. But this measure does nothing, creates nothing, carries -with it no lifting of burdens, but simply takes from A to give to B, -without assurance or guarantee of betterment of service or conditions. -As all dry goods retailers know, not one article sold by mail order -houses, in their line, but is daily and usually sold by them at the -same or lower price, without any special fuss or feather about it, and -all of us understand, without possibility of contradiction, that the -advertised brand, in nine cases out of ten, does not depend on its -intrinsic merit for its sales, but instead relies on the credulity of a -thoughtless purchaser. - -Again, what justice is there in any law that proposes government aid -to the man whose product weighs eleven pounds, or measures within -certain cubic inches, and denies the same relief to another citizen and -taxpayer whose product necessarily exceeds these limits? If this is not -special legislation bestowing subsidy or patronage on the few at the -expense of the many, then what is it? - -For these reasons, and many more, my friends, I oppose the parcels -post as today presented. I believe it unwise and manifestly unfair. -I believe its passage would cause tremendous initial loss, without -subsequent compensating gain. I believe it is a move in the wrong -direction as it affects the government. I believe that the people, -through their representatives, and under the constitution, should have -and should use the power to regulate the channels of trade, and I -strongly deprecate any additional departure from the simplicity, the -directness of our form of government, and especially if such action -should hinder or usurp the zeal or ambition of any citizen in his -wage earning capacity, conducted under the law. If an express company -violates the law treat it under the law with the same justice as would -be given a second story burglar, but no more consider the opening of -governmental lines of express in opposition than you would consider the -governmental employment of other second story burglars as punishment to -law breakers. - -The fewer that we have the better, but as self-respecting citizens let -us strive to maintain their standard of even justice, regardless of -special interests or our own personal discomfort. - - - - -Journal of Political Economy. 16: 417-35. July, 1908. - -Shall the Scope of Governmental Functions Be Enlarged so as to Include -the Express Business? Albert N. Merritt. - - -In the nature of things the local dealer cannot compete with the -mail-order houses on equal terms. He cannot afford to issue the -expensive catalogues, or to keep so large an assortment of goods. -Moreover, the immense volume of business of the catalogue concerns -enables them to quote cheaper prices on many commodities. Frequently -they are able to secure, on private contracts with manufacturers, large -stocks of goods at prices even lower than the jobber is required to -pay. Furthermore, their expense of doing business is proportionately -much lower, as practically their entire expense of distribution -consists of the outlay in issuing the catalogues and in packing and -shipping the goods when ordered. No experienced force of salesmen is -required to display the goods and argue their merits. Moreover, it is -often the case that the glowing terms in which goods are described -in these catalogues cause the credulous to believe them superior to -what they really are. Distance always seems to lend enchantment, and -abundant opportunities are offered for deception as to the quality of -the goods. - -The local dealer, on the other hand, in order to fill orders promptly, -must keep a stock of goods which, in proportion to the amount of -business he does, is vastly greater than that of the catalogue houses. -In order to purchase his goods to advantage, he must lay in a stock in -the fall sufficient for six months or a year, while few, if any, of -the larger mail-order houses would have at any time sufficient goods -in stock to enable them to fill orders for a fortnight. Naturally, -therefore, where the turnover of capital is slower, the percentage of -profit upon individual transactions must be higher, and competition -upon an equal basis becomes impossible. - -But quite apart from a theoretical exposition of causes, the facts -show that the local dealers are rapidly losing trade to the catalogue -houses, and in many districts the local retail business has become so -unprofitable that the number of retail stores is decreasing, and their -volume of business less instead of greater as might be expected with -the normal growth of population. - -Not only do the mail-order houses excel in the volume of business, and -in the greater assortment of goods, but they are able to effect the -most efficient and economical management by the employment of the most -able managers and department men, which is rarely or never the case in -the ordinary country store, owing to the natural scarcity of men of -that grade. In fact the business management of the ordinary country -store is lamentably weak. From the economic standpoint, therefore, one -is compelled to admit that, in accordance with the laws of competition -and of the survival of the fittest, the catalogue houses have already -demonstrated their superiority. - -Admitting, therefore, that the economic position of the mail-order -houses is stronger, are there not important social arguments against -permitting the absorption of local business by the rapidly expanding -catalogue concerns at our large trade centers? - -In the first place, it should be noted that the rapid consolidation -of our manufacturing industries makes it more difficult every day to -conduct such enterprises in small communities in competition with the -large plants in the large communities. The result has been that for a -long time the proportion of the manufacturing business done in small -communities has been growing smaller. With the gradual and necessary -elimination of the manufacturing business in smaller communities, the -mercantile business is about all that is left as an economic basis for -the existence of such communities. - -These forces tend to a rapid concentration of business in the large -trade centers, and the resulting congestion of humanity at such points. -In one generation the proportion of the population of the United States -living in our large cities has more than doubled, and just at present -is increasing more rapidly than ever before. - -It may well be doubted whether this tendency will ultimately be -beneficial to the race. Vice, crime, and disease are rampant in the -slums of our great cities. Human life, under such conditions, becomes -cramped. The unfolding process is impossible. The exigencies of the -situation cause sporadic and abnormal development. The moral and -physical culture of the individual is almost wholly neglected, and -the intellectual development resulting is nearly always one sided, -and too frequently resolves itself into the attainment of solely -those qualities which make for greater acquisitive power. The social -superiority resulting under the questionable standards prevailing in -such centers may be obtained only with the sacrifice of much that is -higher and nobler in human nature. - -A large proportion of the population is compelled to lead a sedentary -life. It may well be asked whether the conditions prevailing in our -large mail-order houses and department stores make for the good of -humanity. From 8:00 a. m. till 6:00 p. m. the many children and young -girls employed are kept at close, confining work, frequently straining -every nerve far beyond the limit of safety and human endurance, in -order to make themselves independent, and to meet the conditions which -city life imposes upon them. During the fall rush these girls are often -asked to remain at work till 9:00 or 10:00 p. m. They realize that it -is necessary for them to acquiesce in such unreasonable and brutal -demands or lose their positions during the dull season immediately -following the holidays. - -An eminent physician not long ago remarked that it was his personal -opinion, based upon long practice, that less than 10 per cent. of the -girls in our large cities are as strong and healthy as their mothers -were at a corresponding age. This he plausibly explained by the fact -that nearly all of the latter had come from the country where they -lived close to nature, with plenty of fresh air and sunshine, and with -plenty of hard work too, but of the kind which upbuilds and strengthens -the health rather than destroys it. - -Furthermore, the wages paid in such institutions are seldom high enough -to enable the individual to live at the prevailing social standards, -and only too frequently the female employees are compelled to piece out -their salaries by questionable means. It is inevitable that the future -generation of the city-bred population should be as much beneath the -present, as the present is beneath the last, unless radical reforms -take place. Such progressive degeneration must be regarded as a -tremendous social calamity. - -Without trespassing too far upon the field of the sociologist, it -may safely be assumed that an increased concentration of industry -and population is far from desirable. Why then should the government -take active steps to promote it? Would it not be better to allow the -mail-order houses and local retailers to fight out their own battle -for trade supremacy upon equal terms, on the basis of the survival -of the fittest? The retailer would then at least be able to cling -tenaciously to the few natural advantages which he does possess, and -would necessarily retain a considerable portion of the business. In -establishing the parcels-post the government would be taking action -to crush the local dealer, and would thus take away the last economic -basis for the rural community, and accelerate the concentration of -industry in great cities. - -By the elimination of the smaller towns the easiest and most natural -market is taken away from the farmer. His small produce would then have -to be shipped to the large cities, where he would almost certainly -become the prey of commission-house agents, whose methods of operation -are well known. Legitimate competition which means the lowest prices -in view of the quality of the goods offered would be eliminated. The -only competition would then be that of advertising. The one capable of -producing the most attractive advertisements would win in the end. The -American public is so great and so credulous that the house which has -once fooled the public can again under another name and perhaps with -different customers work off the same class of worthless or inferior -goods. - -Furthermore, the nearby location of a small country town gives to -the farmer and his family immense social, educational, and cultural -advantages, which would be almost wholly inaccessible if it were not -for the existence of such communities. Take away the business and -economic support of such a community, and immediately it becomes -stagnant. Its ambitious and progressive citizens immediately migrate to -other fields, and the town is left to decay. - -No parcels-post could be established which would be self-supporting. -The innate desire of the people to get something, as it were, for -nothing, would soon express itself in a demand for a reduction of -rates. No administration could be popular and at the same time -effectively resist such a demand. It has been proved over and over -again in history, that wherever a democratic body politic has -undertaken to conduct a commercial enterprise of a public-service -character, the demand for rates far below the cost of doing the -business has seldom or never been successfully resisted. If this has -proved true of local governments, how much more is it likely to be -true of the federal government which, nearly everybody seems to think, -already has a revenue so great that the principal problem with regard -to it is the determination of the best method of turning it back into -the channels of trade. Even at present with a nominal postal deficit -of from $11,000,000 to $14,000,000, but with an actual deficit as will -be subsequently shown of much more than that amount, it seems that the -demand for penny postage and for the increase of salaries of certain -classes of postmasters and of almost the entire clerical force is too -strong to be resisted effectively. - -The real issue is, therefore, Can the government expect successfully to -compete with the express companies, on a business basis? If it can be -shown that the government would be utterly unable to compete it follows -that the government should not undertake the service. - -Mr. H. A. Castle, former auditor of the Postal Department of the United -States, has shown in its true light the many defects of our present -postal system, and how far it comes from being that which should be -expected of a private enterprise of like character. Speaking upon this -point he says: - - The protracted postal investigations of 1893 revealed to - thinking men the disquieting fact that our national mail - system, which is now the greatest business enterprise in - the world, is entirely destitute of logical, coherent, - business-like organization. - -Among many other striking defects, he points out that there is utter -lack of business methods in the accounting department. Of the one -billion and a quarter dollars of transactions represented in the -accounts of the 70,000 postmasters all over the United States, less -than 10 per cent. have the double audit required by law. Fraud, -peculation, and embezzlement of third- and fourth-class postmasters -have become common occurrences and are exceedingly difficult to detect. -As the salary of these postal officials depends upon the number of -cancellations at their respective offices, all sorts of fraudulent -schemes are continually being practiced to swell the number of -cancellations beyond the legitimate amount. - -Furthermore, there is no method of auditing the number of -cancellations, and the department must accept the word of the -postmaster, which may or may not be true. Several cases have been -unearthed where an agent of a manufacturer has secured a nominal -position of postmaster at some out-of-the-way point, and by drawing -a salary based upon the number of cancellations has practically been -able to secure a rebate amounting to about 75 per cent. on all matter -mailed, the mailable matter being shipped to said point by freight. -Absolutely no account is kept or record made of the number of stamps -issued by the Bureau of Printing and Engraving, and no one has any -means of knowing how many disappear before official record of the -stamps issued is made by the Postal Department. - -The weighing of mail matter handled by the railroads takes place only -at stated intervals of four years. As the payment of the railroads -depends upon the average tonnage during the period in which the -weighing goes on, it is charged that all sorts of fraudulent schemes -are continually being practiced by the railroads to increase the weight -of the mail during this period. - -There is no auditing of railroad accounts. Forty million dollars is -annually paid out by the department merely on the statement of the -railroads that the service has been performed. There is no effort made -to ascertain the truth or falsity of the allegations. - -There is no method of accounting for the actual amount of cash received -by postmasters in payment for second-class mail. The amount of cash -turned in by the various postmasters may or may not bear any relation -to the actual amount of such mail received at their respective offices. -It is impossible to detect dishonest returns except in some of the most -aggravated cases. The average mercantile house which should practice -such methods would be forced out of business in less than six months. - -The slowness of the Postal Department to adopt modern business methods -is strikingly illustrated by the fact that till quite recently the only -method of checking the money-order accounts of postmasters was by a -hasty examination of the stubs of order books turned in. No account was -made or reference taken to the actual receipted orders. Imagine a bank -attempting to settle accounts with its customers by the examination of -the stubs of their check-books, rather than by reference to the actual -checks! - -We are driven to the conclusion, therefore, that the Postal Department -as now organized and operated would be utterly unable to compete with -express companies upon purely a business basis. - -Furthermore, it should not be expected that the express companies -would quietly drop out of business. They would make a tremendous fight -for existence, and would at all events retain such portions of the -business as they are now doing at less than the lowest postal rates. -The equipment for the express service would, therefore, have to be -duplicated in every town and village of the United States. It is folly -to presume that the public would not in the end be required to pay -for the enormous loss which would be involved in such an uneconomical -procedure. - -Would it not, therefore, be better to place the proper safeguards -around the existing organizations which are fitted to perform the -transportation service by the best and most economical means, rather -than that the government should undertake the impossible, i. e., -competition with private companies upon a purely business basis? - - - - -Parcels Post Problem. p. 20. - -Parcels Post in England. - - -One of the most concise and yet comprehensive reviews of the operation -of the parcels post system in England is that of I. A. Fleming, taken -from an exchange, and it is as follows: - -“American friends of so-called ‘postal reforms’ point to the absence -of express companies in the Kingdom of Great Britain as one of the -good results that have been obtained, and say this is entirely due to -the existing postal laws. But if there are no express companies in -Great Britain, there are scores and hundreds of forwarding agents that -perform the functions of our American express companies. The railroads -are themselves engaged in the forwarding business, making low rates -for service by fast express, exceeding in limit of weight and size of -packages received by the limitations of the postal service by many -pounds even by hundreds of pounds. - -“Any attempt at comparison between carrying methods in Great Britain -with those in vogue in the United States is useless, because of the -very short distance between points in the former. - -“I asked the managers of some of the leading stores in Ireland, -Scotland and England if parcels post offered great opportunities for -them to send business into the country, and without exception they -admitted that the business by post was decreasing, while the express by -rail and by forwarding agents looking for assignments was increasing. - -“Eleven pound packages and under are but a small quantity of package -shipments. - -“From the best information at hand, it is evident that the big carriers -have nullified parcels post in Great Britain, and what they have left -the railroads have picked up. These carriers receive all manner of -parcels, put hundreds in baskets, and thus get the very lowest rates -of transportation. They give their patrons lower rates than they could -otherwise obtain, and because of their concessions charge them four -cents on each consignment, a ‘booking charge’ which gives the carrier a -very fair return for his kindness to the shipper. Little packages go -by parcels post as a rule, and many of the larger department stores use -the mails for delivering goods to out of town customers. - -“These rates but add to the burdens of the merchants of the interior. -The independent retailer in the country has few friends. Cheap rates, -co-operative stores, chain stores, mail-order houses by the thousand, -fares paid entirely, special excursions (such as Harrods of London are -now running to the sales) with fares paid and ‘tontine’ establishments -tend but to make the independent merchant, be he a grocer or ‘draper’ -as they call dry goods dealers, only a small potato of the kind that -are many in the hill. - -“Our mutual friends, the English general merchant, the independent -grocer, and the small retailer, have been almost completely relegated -to a parsimonious living by co-operation, mail-order retailing, -the carrier or forwarding agent, and last but not least, by cheap -excursions to the cities. - -“That these same evils will, if they obtain a foothold in the United -States accomplish the same results for the American general merchant -and retailer I firmly believe.” - - - - -A. B. C. of Parcels Post. pp. 4-5. - -C. W. Spofford. - - -Q. What is the plan of the rural parcels-post proposed by -Postmaster-General Meyer? - -A. It proposes to carry packages originating at a local office of -a rural route for 5 cents for the first pound and 2 cents for each -additional pound, with a limit of 11 pounds. Thus, an 11-pound package -would be carried to any point on a rural route for 25 cents. It is -significant that the rates are the same as those proposed by advocates -of a parcels-post applicable to distances within the United States and -its insular possessions. This proposal seems to be but an entering -wedge for general parcels-post. - -Q. Why was rural parcels-post proposed? - -A. It was proposed by the Postmaster General as a special favor to -country merchants. - -Q. Have country merchants asked for any such special favor? - -A. No. On the contrary, they are opposed to it on the following grounds: - -1. They do not seek class legislation. - -2. The plan would be impracticable in its operations. - -3. It would discriminate between towns, favoring the town with the -greatest number of rural routes, regardless of its trading advantages. - -Q. Would rural parcels-post be of any benefit to the farmer? - -A. No. For the following reasons: - -1. The farmer can now arrange with the rural carrier for the delivery -of packages over 4 pounds at rates mutually satisfactory. - -2. The proposed rates would be prohibitive on groceries, machinery -repairs and on the bulky merchandise most likely to be delivered under -this new arrangement. - -3. To secure the rural parcels-post service, the farmer would be -compelled to buy his goods at the particular town where he gets his -mail, when he might prefer to buy elsewhere. - - - - -Parcels Post. pp. 3-9. - -F. E. French. - - -I have the distinguished and pleasing honor of being here today -upon your invitation as a representative of the American League of -Associations, which includes representative wholesalers in nearly every -important city in the United States. The creation of this League has -for its object the development and advancement of the general welfare -and mercantile interest of retail merchants in the smaller communities. -The relations of its members to all retail merchants are intimate and -personal. The retailers desire to buy merchandise from the wholesaler. -The wholesaler desires to sell merchandise to the retailer. In short, -whatever conserves, promotes and advances the merchandising ability and -success of the former, is a direct proportionate benefit to the latter. -Whatever relaxes the intimacy between these interests, deprives the -retailers of their truest and best facilities as merchants and money -makers. The thoughtful and progressive wholesaler and retailer believe -that any rural parcels post bill will unmistakably impair, curtail and -finally dissolve this relationship, which in reality is a partnership -between the wholesaler and the retailer. The proposed parcels post -legislation will gradually eliminate the country store and the very -heart and pulse of country life. Believing this to be absolutely and -unmistakably true, we should stand as a unit in opposition to any -extension of the parcels post system, upon rural routes, even upon an -experimental basis. If the country merchants will co-operate with the -wholesalers in an unyielding resistance to any congressional action -that would in any way interfere with the present system of rural -deliveries, the proposed legislation will be defeated. - -In official words, it is contended that rural parcels post will enable -local merchants to hold and increase their trade. On the contrary, the -well informed wholesaler, manufacturer and retailer contend, and the -entire orthodox system of trade distribution replies, that any parcels -post, whether it be a general parcels post law or a rural parcels post -law, although intended to be of benefit to the retailers and a boon to -the rural population, would, in reality, be a great detriment to both. - -Mark well how the camel enters the tent: First his head, next his -neck, and last his huge and unwelcome body. First on a few routes only -and in experiment only, a local parcels post; next a complete rural -parcels post; and finally a general parcels post. Let us beware of -the beginning lest in the end we be overcome. During the inauguration -of the first and experimental stage, those interests most to be -profited by this perilous innovation will remain silent, while from -the experiment no safe deductions could perhaps be made which would -indicate the effect of parcels post extension upon your prosperity and -posterity. Finally you will discover that the currents of trade are -running past your door rather than through it, and in that day your -elimination becomes a certainty. In that day also every wholesaler who -has so long found in the country merchants a sure and steady outlet -will know even better than he knows now that rural parcels post, and, -much more, the general parcels post is a dangerous blow to country life. - -At the risk of telling you much that you know, let me state some of the -factors of this great problem so that we may think as one man over its -solution. - -The mail order houses, some of the farmers, and various other people -who reason narrowly, even with generous intent are sustaining the -government in its purpose to go into business in behalf of a class -of the American people at the expense of the whole American people, -and through a bill in Congress they ask all of the people to sanction -a trial of this new species of government aid in certain selected -places. Our government reasons that if it is made more practicable for -rural free delivery routes to become shipping lines between their own -termini, everybody depending for income and outgo on such routes will -profit by this enlarged service. On the contrary, the American League -of Associations holds that everybody will eventually suffer. - -The great problem about which we are all trying to think clearly -and think together, has been summarized so effectually by a retail -merchants’ paper in the central west, that I do not hesitate here to -quote its protest against parcels post, endorsed by thousands of retail -merchants in every section of America. The protest reads as follows: - -“Parcels post is wholly unnecessary, since rural delivery carriers are -authorized to carry parcels weighing over 4 pounds, and the matter -of compensation is decided by carrier and merchant or by carrier and -farmer. Merchants and farmers generally have not availed themselves of -this service, for the very good reason that there is no need for it. - -“If adopted, parcels post will be immediately seized upon as a delivery -outlet by mail order houses which would ship orders by freight or -express in bulk lots to local agents for deposit in the post office to -be forwarded by the rural deliveries. The catalogue houses have already -many of these agents selected, and they have been busily engaged in -distributing catalogues for weeks past. As soon as a rural parcels -delivery became effective, these agents would become active in the -solicitation of business in unfair competition with home merchants, as -these agents would have no taxes, no rent, no salaries, etc., to pay. - -“Rural parcels post is admittedly merely an entering wedge for -extension along European lines. That would mean severe demoralization -of our country towns which are dependent almost wholly upon the farmer -trade for existence, and which afford the farmer a good home market for -every dollar’s worth of products he has to sell. If he does not buy -his supplies where he sells his products, he not only demoralizes the -business of his home town, but he also deprives himself of his home -market. If his home market town dwindles into insignificance through -the gradual loss of trade, necessitating the closing of stores and the -emigration of merchants and clerks, then the income will shrink so -seriously that there will be insufficient funds to provide for schools, -churches, libraries, hospitals, good roads, etc. - -“Every farming community and its market center are interdependent. It -is impossible to injure one without injuring the other. The parcels -post would injure both farmers and country merchants. We protest -against it as being designed to further the formation of a mail -order trust that could eventually control all important channels of -distribution and thus levy upon the people any desired tribute.” - -Today the people’s problem is to conserve our natural resources and -keep the farmer on the farm. Will the gradual impoverishing of the -village storekeeper keep the farmer on the farm? Will the decline of -the social center, the decline of the schools and the decline of the -church facilities keep the farmer on the farm? Will long distance -shopping do more for isolated communities than the sight of real goods -and the warm touch of living people? Will the picture catalogue or the -hearty salesman do more to keep vital the currents between seller and -buyer? Would a heavily laden parcels post messenger, running between a -mail order agency and a distant farm, often through a foot or two of -mud or snow, compensate for the disappearance of the mart and congress -of our country’s rural life--the independent, thriving, hospitable -store? - -Fellow merchants, it is our duty to sustain that store, and to do it -now. That store is imperiled by pending legislation, whether by the -institution of a local or a general parcels post. If this new service -be established by the government, even with the best of motives, we -must admit that: - -The postal deficit will be increased, - -The country’s commercial system revolutionized, - -The delivery of legitimate mail delayed, - -The population of rural communities depleted, and their progress -retarded. - -And that the government will promote class legislation, for in seeking -to favor the farmer who needs no such preferment, it will subsidize a -commercial interest whose basic business principle is hostility to the -best trade distribution. - -Every thinking individual agrees that rural free delivery has been -of great benefit, but the masses of the people do not agree that a -financially unprofitable service shall be put upon its feet at the cost -of the man who has been the mainstay of the farmer in season and out of -season--the country storekeeper. - - - - -Why Parcels Post Is Not a Good Thing for This Country. pp. 1-5. - -W. P. Bogardus. - - -Parcels post is a scheme in which it is proposed to utilize the post -office facilities to carry merchandise. Packages under the proposed -bills up to 11 pounds are to be carried in the mails for that sum -varying according to weight, from 2c to 25c. It is claimed by the -friends of parcels post that by adopting the measure the deficit in -the Post Office Department will be wiped out, and a handsome surplus -will result. Claims are easily made. But facts have more value in a -discussion like this. We are cited to the results in Germany as a -substantial proof that post parcels is a paying proposition. They -forget to mention that in Germany there are 340 people to the mile and -an average haul of mail of but 41 miles, while in this country the -average haul of mail is 540 miles and there are less than 23 people -to the mile, and they ignore the difference of conditions in the two -countries. - -But let us look at the report from the German budget. For the year -ending March 31st, 1910, the income, in round numbers, from the Post -Office Department was $168,000,000 and that included the revenue from -the telegraph business. The expenditures were $148,000,000. This on -the face shows a surplus of $20,000,000, but in the statement of -expenditures there is no account taken of the cost for transportation, -on the ground that the government owns the railroads. In this country -it costs 20 per cent. to transport the mails. That is, one-fifth of -the cost of the Post Office Department is for transporting the mails. -Now add 20 per cent to the expenditures and you have $177,600,000, or -a deficit of $9,000,000. In England, the friends of parcel post claim -that there is a surplus of $24,000,000 in the Post Office Department. -But that includes the receipts from the telegraph messages. In England -the average charge for packages is 9.8c per pound. In this country it -is proposed to send parcels post packages over a territory 30 times -larger than England at an average of not quite 3c per pound to a -population only about twice as large as there is in England. - -When the blind Postmaster General of England first introduced post -parcels he reported the results of the measure, but found that there -was an increasing deficit each year, and the reports were discontinued. -It does not seem possible to get exact figures as to the cost of the -system in England, but the presumption is that if there was a large -profit in the plan they would parade the fact. As it is, can we expect -to make parcels post in this country a profitable scheme? With an -average haul of 540 miles to a population of but 23 to the mile, is it -possible to carry goods at less than 3c per pound at a profit, if it -cannot be done in those thickly settled countries at a much higher rate? - -If it cannot be done at a profit, why should the government undertake a -scheme that will result in a loss? Rural free delivery is costing the -country $28,000,000 more than it is getting for the service, and only -about one half of the rural population is supplied with the service. - -If the government enters into the plan, it must needs have a monopoly, -if successful, of the carriage of packages up to the limit of 11 lbs., -else the express companies will take all the short haul packages -and leave the long haul packages for the government to carry. Such -conditions prevail at present. The express companies take all the short -haul packages for less than the government charges and leave the long -haul packages for the government to carry, with the result that there -is no profit in the business to the government. - -If there is a monopoly established on packages up to 11 pounds, what is -to hinder the government raising the limit of weight? - -Are we prepared to let our government enter into competition with -private enterprise? Is it a function of the government to transport -freight? Is it a province of the government to correct abuses of -private corporations, in transportation and other lines, by entering -into competition with them, and using the power the entire people has -given it, to force corporations to be less greedy? It would seem that -the recent decisions by the Supreme Court would justify us in believing -that there is power enough in the laws of the land to protect the -people’s rights. - -Perhaps in Australia the government enters into more radical schemes -than in any other country. And this fact is being developed. That the -extension of the control of industry and business, and the activities -in every field of production and distribution is but an incentive -for a greater demand on the government for further movements in the -same direction. The outcome of such policies is a final ending up -in complete socialism. Do we want our government to be a paternal -one? Are we ready to look to it for our transportation facilities? -If we are is there any reason to feel that the government will stop -at transportation? Will there not be other avenues of commercial -enterprise taken over by the government? One of the great dangers to -us, as a people, is the tendency to a centralization of power in the -government at Washington and a willingness of a great many people to -lean on the government for a solution of many problems that they should -solve without the aid of the government. - - - - -Parcels Post and Postal Savings Banks, pp. 1-2. - -Gilbert N. Haugen. - - -MR. CHAIRMAN: I want to direct attention to the suggestions made -in a very able and interesting address delivered by Mr. Meyer, -Postmaster-General, at a banquet of the New England Postmasters’ -Association, Boston, Mass., October 12, 1907, a part of which I will -read: - - To illustrate the incongruities that exist: Any individual - entering the post-office here in Boston or in any other city or - town in the country, with two parcels, each weighing 4 pounds, - can send one parcel to New York for 64 cents, while for the - other parcel, which is addressed to some one in a foreign land - and goes via New York, he will have to pay but 48 cents, for - the reason that the rate to foreign countries is 12 cents a - pound, while the rate to our own people is 16 cents a pound.... - Therefore I assume that our Representatives in Congress will - realize that they can not afford to stand for a policy that - compels our own people to pay 4 cents more on packages to - people living in the United States. - -This statement is indeed misleading: not that I charge the -Postmaster-General with any intent to deceive or mislead, for I regard -him as a gentleman of integrity, intelligence, ability, and actuated -with the highest motives and with a determination to do justice to all, -and I am not questioning his motives, but will endeavor to present the -facts in the light that I see them. When we have all of the facts, I -will venture to assume that Representatives in Congress will realize -that they can afford to stand for a policy that compels people living -in foreign lands to pay more than people living in our own country. The -Postmaster-General’s statement as to the sending of two pieces, each -weighing 4 ounces, is correct in some cases, and the domestic rate in -some cases is higher than the foreign; but in the majority of cases -foreign rates are the highest. In his excellent address to enlighten -members of the New England Postmasters’ Association and the country, -he might have gone further by saying: “To illustrate the incongruities -that exist, any individual entering the post-office here in Boston, -or in any other city or town in the country, with two parcels, each -weighing 1 ounce, can send one parcel to New York for 1 cent, while for -the other parcel, which is addressed to somebody in foreign lands via -New York, he will have to pay 12 cents, for the reason that the rate -to foreign countries is 12 cents per pound or fraction thereof, while -the rate to our own people is only 1 cent per ounce. Therefore the rate -on the parcel addressed to somebody in foreign lands is 12 times as -great as is the rate on the parcel addressed to New York.” And he might -have referred to the report of the Second Assistant for the year ending -June 30, 1907, pages 25 and 26: - -Or he might have said: “If the two parcels referred to, weighing 4 -pounds each, or 64 ounces each, or 128 ounces for the two, had been -divided into parcels of 1 ounce each, and one-half of them directed -to parties in New York, the rate on the sixty-four parcels would -have been 64 cents to New York, and the postage on the sixty-four -parcels addressed to London would be $7.68.” According to the Second -Assistant’s report, rates on parcels addressed to foreign countries are -not uniform. The rate to Bermuda is 12 cents per pound, and the rate to -Ecuador is 20 cents per pound. The rate to Sweden, Peru, and Denmark is -20 cents per pound or fraction of a pound for parcels which require the -use of the expensive transit across the Isthmus of Panama, and 12 cents -per pound or fraction of a pound for parcels which do not use that -expensive transit. So we find that rates on parcels weighing 1 ounce -addressed to Sweden, Peru, or Denmark which require the use of the -expensive transit across the Isthmus of Panama is 20 cents, or twenty -times as high as the rate on parcels weighing 1 ounce addressed to New -York. Why this incongruity in rates? Rates on mail matter between the -United States, Canada, Cuba, Mexico, and Panama are fixed by treaty -with each country and with all other countries by conventions of the -Universal Postal Union. The last convention was held at Rome, 1906, and -took effect October 1, 1907. The acts of these conventions are binding -on these countries, but have nothing to do with domestic rates, they -being fixed by Congress and the Department. The conventions are simply -agreements as to international mail matter. The rate on parcels post is -fixed with each country, or in thirty-five parcels-post conventions. -The rate is generally 12 cents per pound or fraction thereof, the pound -being the unit of weight. The rate is 1 cent per ounce. The rate on 5 -ounces to the Philippine Islands is 5 cents and to London 12 cents. - - - - -Parcels Post. pp. 8-11. - -S. C. Smith. - - -_In Foreign Countries_ - -The sentiment in favor of this new governmental service has been built -up in this country chiefly by holding up to view more or less highly -painted pictures of what is being done along a similar line in the -countries of Europe. Any fair comparison of the postal service in -those countries and in ours must take into consideration density of -population, expanse of country or length of transportation routes, and -the ownership of the means of transportation. The density of population -and the relative size of the United States and of the principal -countries of Europe having a cheap parcels post are shown by the -following table: - - +---------------+--------------+----------+-------------+------------+ - | | | | | Population | - | | | Ratio of | | per | - | Country. | Area. | size. | Population. | square | - | | | | | mile. | - +---------------+--------------+----------+-------------+------------+ - | | _Sq. miles._ | | | | - | United States | 3,602,990 | 100 | 84,154,009 | 23.35 | - | Great Britain | 121,391 | 3.36 | 41,976,827 | 345.79 | - | Germany | 208,860 | 5.79 | 60,641,278 | 290.34 | - | France | 207,054 | 5.74 | 38,961,945 | 139.87 | - | Belgium | 11,373 | .31 | 7,074,970 | 622.08 | - | Italy | 110,550 | 3.06 | 32,475,253 | 293.76 | - | Switzerland | 15,976 | .44 | 3,315,443 | 207.73 | - +---------------+--------------+----------+-------------+------------+ - -These figures are extremely interesting and important in connection -with this subject. We constantly lose sight of the immensity of this -country and its “magnificent distances,” as compared with the nations -of Europe; but in considering a question of transportation, distances -and density of population stand in the foreground. Let it be observed, -for instance, that while our country is over 300 times as large as -Belgium, the latter has a population of 622 people to the square mile, -while we have but a fraction over 23. Yet we will hear it argued that -“Belgium carries 132-pound parcels by mail; why can not we?” or, “If -Switzerland can carry 110 pound parcels, why not the United States?” -entirely ignoring or forgetting the fact that our country is 250 times -as large as Switzerland and has about one-tenth the population in a -given area. Postal authorities have estimated that the average distance -traveled by a piece of mail, including letters, papers, and parcels, is -40 miles in Great Britain, 42 miles in Germany, and 540 miles in the -United States. Of course it is still less in the smaller countries of -Europe. The admission of paper mail to this calculation greatly reduces -the average, since newspapers circulate chiefly in the vicinity of the -city of their publication. Parcels of merchandise or produce would -certainly move much farther on an average, because they would chiefly -flow to and from the great cities. If one is going to trade by mail, -and the cost of delivery is the same, why not go to “headquarters,” -which, in the popular mind, means one of the larger cities in the -country? - -The maximum parcel carried by the principal nations is as follows: - - Pounds. - - United States 4 - Great Britain 11 - Germany 110 - France 22 - Belgium 132 - Switzerland 110 - Italy 11 - Austria 110 - - -_Railroad Ownership_ - -Another factor of equal importance is the nature of ownership of the -means of transportation. In this country all routes are privately -owned and operated. The railroads--the chief means of transporting -the mails--have been constructed for the most part by private -capital, without the aid of the government, and the government, like -individuals, must pay a rate for its service which will yield a fair -return to the owners. The roads in the foreign countries used in -this comparison are largely owned by the governments, in which case -it matters little whether merchandise and produce move by mail or -by freight. In some of the countries, as in France, the government -guarantees the interest on the capital invested in the roads, and in -return has its mails carried free or at a nominal rate. - -The English writer above referred to says of the mail-carrying -situation in Germany: - - The German post has no occasion to enforce heavy rates. It can - impose its own terms on the railway companies. By law these - have to carry free all parcels under eleven pounds in weight. - Thus the mistake which has crippled the activity of the British - parcels post has been avoided. - -Of course there can be no just comparison between a service carried -on under such conditions and ours, for the basic conditions are so -fundamentally dissimilar. - -The matter of railroad ownership lies at the very foundation of this -question. If this government owned the roads and operated them, it -would matter little what went forward as mail and what under another -designation. But that is not the case now and it is to be hoped never -will be. From this standpoint, as well as from those hereinbefore -mentioned, it is manifestly unfair to argue that because other -countries do so and so in their mail service, therefore we should do -the same. - -It is significant that no country giving a large service of the kind -under consideration undertakes to say that its receipts equal the -cost of the service. I have not been able to find any report showing -the cost of the parcels department. It is stated by some pretty high -authority that the general belief among these nations is that they -are rendering it at a loss. It is hard to reconcile that condition of -the business with any idea of fairness. We may properly carry on the -educational feature of the mail service, in part, out of the general -revenue of the government; but who will say that we may fairly carry -the individual’s produce to market or his merchandise home for him at -public expense in whole or in part? Why should all the people be taxed -to pay a postal deficit created by moving freight for the people at -less than cost of service? Is there any reason why this branch of pure -business should be conducted at public expense which would not justify -the performance by the government of any other department of business? - - - - - -End of Project Gutenberg's Selected Articles on the Parcels Post, by Various - -*** END OF THIS PROJECT GUTENBERG EBOOK SELECTED ARTICLES--PARCELS POST *** - -***** This file should be named 52996-0.txt or 52996-0.zip ***** -This and all associated files of various formats will be found in: - http://www.gutenberg.org/5/2/9/9/52996/ - -Produced by MWS, Adrian Mastronardi, The Philatelic Digital -Library Project at http://www.tpdlp.net and the Online -Distributed Proofreading Team at http://www.pgdp.net (This -file was produced from images generously made available -by The Internet Archive/American Libraries.) - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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