as compared with other printed matter may be obtained by comparing the
revenue which was actually obtained from the newspapers with the revenue
which would have been obtained from the same number of packets of
ordinary printed matter of similar size and weight. In 1900, in the
inland service in Germany, some 440 million packets of ordinary printed
matter were transmitted, and the postage on them amounted to 21,133,499
M. If the 1,150 million newspapers had yielded postage in the same
proportion, they would have brought in a revenue of some 55 millions of
Marks, whereas in actual fact they yielded only some 6-1/2
millions.[395]
The present rate rests on the two grounds of frequency of issue and
weight of copies. It is therefore in practice more difficult to apply
than the former rate based simply on the price, since the weight factor
is variable and requires exact determination in every case. Moreover,
the Reichstag forbade rounding up of the weight, which would be
essential if a rate in even pfennigs were to be ascertained. The
calculation of the actual rate must be carried to the second decimal
place in pfennigs, and a rounding up of broken pfennigs is permitted
only at the final settlement for the regular subscription period. This
complexity has, of course, added largely to the cost of administration,
without a corresponding increase in revenue.
It is anticipated that with the growth of the newspaper traffic the loss
to the postal administration will tend to increase rather than to
diminish. There is, however, no disposition to restrict the privilege
accorded to newspapers. The attempt made by the administration in 1899
to secure an increased revenue from them was, as explained, frustrated
by the Reichstag. Since 1852 the Post Office has held the monopoly of
the distribution of political newspapers, and the general advantage
resulting from such an effective control of the dissemination of public
intelligence no doubt explains the continuance of so favourable and
unremunerative a rate.[396]
NOTE ON DELIVERY FEES FOR NEWSPAPERS.
House-to-house delivery of newspapers was introduced in 1828, the lowest
charge (i.e. in addition to ordinary postage) being 30 pf. quarterly.
In 1872 a uniform delivery fee was fixed for town and country. For
papers appearing weekly or less frequently the charge was 15 pf., for
papers appearing two or three times weekly 25 pf., for papers appearing
four to seven times weekly 40 pf., and for papers appearing more
frequently than seven times weekly 50 pf. quarterly. The system of
charging delivery fees has been continued, and those at present in
operation are:--
For
each copy
monthly
(_a_) For newspapers delivered less frequently than
once a week 2 pf.
(_b_) " " once a week 4 pf.
(_c_) " " twice a week 6 pf.
(_d_) " " thrice a week 8 pf.
(_e_) " " four times a week 10 pf.
(_f_) " " five times a week 12 pf.
(_g_) " " six or seven times
a week 14 pf.
(_h_) " " eight times a week 16 pf.
(_i_) " " nine times a week 18 pf.
(_k_) " " ten times weekly 20 pf.
(_l_) " " eleven times weekly 22 pf.
(_m_) " " twelve to fourteen
times weekly 24 pf.
(_n_) " " fifteen times weekly 26 pf.
(_o_) " " sixteen times weekly 28 pf.
(_p_) " " seventeen times weekly 30 pf.
(_q_) " " eighteen times weekly 32 pf.
(_r_) For official gazettes 2 pf.[397]
The delivery fees are collected in advance for the complete subscription
period. In 1910 the amount collected for delivery in towns was
19,604,234 M., and for delivery in the country districts 5,770,896 M.
NOTE ON SPECIAL SUPPLEMENTS.
Special advertisement supplements were permitted to be sent by post
together with newspapers by the order of 30th September 1871. These
supplements in form or character must not be similar to the main
newspaper. They must not be printed at the same office, and no charge
might be made for their insertion. A special supplement must not exceed
one sheet and must not be bound. The newspapers in which they were
inserted must bear a notification to that effect in a prominent
position. All copies of the supplement must be submitted to the Post
Office and the postage paid in advance. They were then stamped at the
office of posting, and if not posted within three days the postage might
be forfeited. The rate for each supplement was 1/12 sgr.[398]
The number of such supplements was not as great as was anticipated, the
chief reason for which was that the postage was still too high and the
regulations too complicated.
In 1873 the rate was reduced to 1/2 pf. for each copy, with a reduction
of 50 per cent. when as many as 7,200 copies were posted at the same
time. The obligation to submit all copies to the Post Office for
stamping, and the requirement to post them within three days thereof,
were at the same time removed, and the simple obligation to give
previous notice of posting substituted. The obligation to indicate on
the newspapers that a special supplement was enclosed was also
withdrawn.
In 1874 the regulations were further relaxed. Special supplements were
allowed to be printed at the same office as the newspaper, and charges
for the advertisement might be made.[399] The limit of size was extended
to two sheets, at which it remains.[400]
In 1900 (20th March) the rate was changed to 1/4 pf. for each 25 grammes
weight for each supplement. The number of special supplements in 1910
was 214 millions.
* * * * *
III
THE RATE FOR PARCELS
PARCEL POST IN ENGLAND
The London Penny Post established by William Dockwra in 1680 was in some
degree a parcel post, but throughout the country no sort of parcel post
service existed until the introduction of the regular system in 1883.
The weight limit for packets sent by Dockwra's post was at first fixed
at 1 pound, but it was afterwards extended.[401] The Penny Post was
employed to such an extent for the transmission of bulky packets and
parcels that delivery was retarded, and it was found necessary to reduce
the number of such parcels. The privilege of sending parcels even of 1
pound weight was accordingly withdrawn in 1765.[402] The letter rate
charged by the ounce was sufficiently high to restrict effectively the
number of packets of large size entrusted to the post.[403] In their
Report of 1797 on the Post Office, the Select Committee on Finance
recommended a reduced rate for the heavier packets and small parcels,
in order to encourage their transmission by post, but the suggestion met
with no favour.[404] For many years afterwards the official view was
that it was desirable to confine the post to light packages, and that
any increase in the number of heavy packets would disorganize the
service, which existed to provide for the expeditious transmission of
light letters. Its arrangements had been made with this object, and to
load it with a large number of heavy packets would be subjecting it to
an unfair strain, under which it would inevitably break down.[405] So
long as the delivery of parcels is provided for by foot (or cycle) post,
it is impossible to raise indefinitely the limit of weight for
individual parcels.
The establishment of the Book Post in 1847 was, of course, a step in the
direction of a general Parcel Post. The Post Office having by this means
become the carrier of small parcels containing goods of a certain class,
the demand for a post for parcels of any kind of goods was inevitable.
In the 'sixties there was considerable agitation for extended parcel
post facilities. The familiar argument was advanced that the Post Office
had already an establishment for the collection and delivery of letters
in some twelve thousand districts, and that this establishment might be
used, to the great advantage of the public, to afford any additional
services within its capacity; that, as all the main establishment
charges were paid--rent, salaries, etc.--an additional service could be
rendered without adding proportionately to the expenses. It was urged
also that the sample post rate was too high and was fenced by
troublesome regulations; that the book rate was also too high; that
there was no reason why the book trade should be favoured; that in
respect to the mass of the people the charges were so high as to impose
on the transmission of small articles the same sort of prohibition that
was placed on the transmission of letters under the old postal system;
that a comprehensive system could not be carried out by the railways
until the railways would co-operate; that even if the railways did
co-operate they had not means at their disposal equal to those of the
Post Office; that a parcel post system was already in operation in
several continental countries; and that, in fine, by the establishment
of a similar service in this country an immense boon would be conferred
on the public.
The Post Office was, however, not favourably disposed towards the idea.
It was proposed to meet the agitation to some extent by reducing the
rates of postage on the heavier letters, and thus to carry small parcels
under the guise of letters. This proposal was not, however, carried
through. In 1871 the rates for letters of medium weight were reduced,
but those on letters above 12 ounces were retained at a height which
could only be regarded as prohibitive.[406]
The public agitation in favour of a parcel post service continued; and
when in 1878 a large number of the railway companies announced that they
proposed to convey small parcels over any part of their lines at low
uniform rates, attention was called to the fact in the public Press, and
suggestions made that the Post Office should co-operate by undertaking
the delivery of the parcels. The official view was now somewhat more
favourable to the idea. An international parcel post service had been
established in 1880 in connection with the Universal Postal Union, and
this fact had strengthened public opinion in favour of a parcel post
service in this country. It was recognized that such a service would
afford undoubted advantages to the public, especially in rural
districts. It would provide facilities which private enterprise had not
seen fit to undertake. It would provide a service reaching to all parts
of the country, for which there was no other equally suitable machinery.
The Post Office could not, however, in establishing a parcel post
service, act as freely as in its arrangements for the conduct of the
letter service. The conveyance of the parcels from place to place was
likely to prove a serious undertaking, and for such conveyance the Post
Office was dependent on the railway companies. In the case of letter
mails the cost for conveyance is a very minor part of the total expenses
of the service, but when negotiations with the railway companies were
begun it was soon found that such would not be the case with parcel
mails. The companies, regarding the parcel traffic as to a large extent
their own proper business,[407] were not disposed to agree to easy
terms, and there was the further difficulty that numerous companies had
to be satisfied, since it was desired to establish the system under an
agreement which should include all the principal companies.[408] From
the first, the question of the remuneration of the companies was
approached from a point of view totally different from that in which
their remuneration for the ordinary letter mails was regarded. Letter
mails are conveyed as entities, and the company have never been
concerned with the number of letters enclosed in the mail or the amount
of postage paid. They arrange for the conveyance of a given number of
mails, and are remunerated accordingly. But with parcels the question
was approached as one for the determination of just remuneration of the
companies for conveying, not mails containing parcels, but single
parcels. And the question to be settled was what proportion of the
postage paid on the individual parcels should go to the companies. In
view of the heavy expenses of every description which would be incurred
and of the large number of heavy letters which would be transferred to
the parcel post, causing a considerable reduction of revenue, the Post
Office declined to accept less than half the total receipts, and after
some demur the companies agreed. The rates of postage proposed were two
in number--for parcels not exceeding 2 pounds in weight, 6d.; for
parcels not exceeding 4 pounds in weight, 1s.
Difficulties arose subsequently as to the amount of freedom of action to
be left to the Postmaster-General and the duration of the agreement. The
first proposal was for an agreement in perpetuity, and the draft
agreement gave the companies what was called a "partnership interest" in
the parcel post business. It was, however, regarded as essential that
the parcel post business should be no less under the control of the
Postmaster-General than the existing letter post, and that, on the
expiration of any agreement made with the railway companies, the
statutes relating to the conveyance of letter mails by railway should
apply to parcel mails.
After the failure of the first scheme, negotiations with the railway
companies were suspended, but the public agitation for a parcel post was
daily gathering strength, and in February 1882 the Postmaster-General
again approached the companies. The new proposals were somewhat
different from those originally made. A scale with four rates (3d. for 1
pound, rising to 1s. for 7 pounds) was now suggested by the Post Office,
largely in deference to the strong disposition of the railway companies
in favour of an increased number of rates. The low initial rate of 3d.
for 1 pound was now proposed on the ground that a large proportion of
the business to be done would be between the large towns and the rural
districts. For the development of such business a low initial rate was
essential; and as such parcels would not be likely to be to any large
extent railway borne, the Post Office would obtain almost the whole of
the proceeds of the postage. It was, moreover, now taken into reckoning
that a considerable increase in the number of letters would result,
since numerous communications relative to parcels posted would pass, and
the revenue would thus benefit indirectly. The letter service would
benefit, too, in other ways: it would be relieved of heavy packages; and
the existence of a parcel post service would justify the provision of
more efficient services in rural districts. The rates proposed were in
general very much higher than those at the time existing in Germany,
France, Switzerland, and Belgium, and they were estimated to yield a
profit.
In the further negotiations serious difficulty was encountered on two
points only: (1) the proportion of postage to be paid to the companies,
and (2) the length of time for which the agreement should be made. The
earlier agreement had been for an equal division between the Post Office
and the railway companies of the postage paid on all parcels. It was now
decided that payment could only be made in respect of parcels actually
conveyed by railway. The companies thereupon asked a higher proportion.
They anticipated that parcel post traffic would be largely long-distance
traffic, involving in many cases transfers on the journey; and although
they expected to retain a good deal of the short-distance traffic, they
could only achieve this by reducing their rates generally, especially
the rates for small parcels. After some higgling, they agreed under
protest to accept 55 per cent. of the postage on all such parcels as
should be conveyed by railway. They also agreed to the limitation of the
duration of the bargain, and the term was fixed at twenty-one years.
The agreement was embodied in the Post Office (Parcels) Act of
1882.[409] The companies parties to the arrangement undertook the
service of conveying the post parcels from the vehicles of the
Postmaster-General at the despatching railway station to the vehicles of
the Postmaster-General at the station of destination--that is to say,
they undertook all handling of parcel mails on railway stations and
transfer to and from trains and from train to train where necessary--in
consideration of payment of 55 per cent. of the postage paid on all
parcels conveyed by railway for the whole or part of their journey, the
Post Office being required to keep a record of the amount of postage
paid on every such parcel. The remuneration was to be paid to the
Railway Clearing Committee in London, by whom it would be distributed
between the various companies. The agreement was to continue for
twenty-one years, and thereafter until terminated by either party. The
Postmaster-General retained the power of revising the rates of postage,
but in the event of such revision the companies might claim revision of
the terms of their remuneration (even during the first twenty-one
years). In any case, on the termination of the agreement, the statutes
governing the conditions under which ordinary mails are conveyed by
railway, and the determination of the remuneration of railway companies
in respect of such conveyance, were to apply equally to the conveyance
of parcel mails by railway.
The Postmaster-General has twice exercised his right of revising the
rates of postage, and in each case the rates were lowered. The companies
have not exercised their right to ask for a revision of the terms of
their remuneration, and the provisions of the Act therefore continue in
operation. In the first complete year of the service (1884-5) the number
of parcels conveyed was some 23 millions. The increase in the traffic
has been large and constant. In 1912-13 the total number of parcels
exceeded 130 millions.
The service affords a great public convenience, and the simplicity of
its rates is an undoubted boon. The uniform rate has, however, proved
unsatisfactory in some respects. At all points at which the traffic
would be profitable, the Post Office is open to the competition of
private enterprise; but for that part of the traffic for which the
uniform rate must inevitably be unprofitable (unless it be fixed so high
as to be exorbitant for short-distance and average-distance traffic)
there will naturally be no competition. The number of local, or
short-distance, parcels is consequently small, and the number of parcels
sent for long distances, to remote places, is comparatively large. No
great use is, however, made of the post for the transmission of parcels
of agricultural produce from rural districts. There is a moderate
traffic in butter and eggs from Ireland to England, and in cream from
the West of England. Proposals for the introduction of a specially low
rate for agricultural products have frequently been considered, but
there are obvious objections to the establishment of a special rate for
a special class of traffic. Moreover, for parcels from country districts
the present uniform rate is often ludicrously low. The cost of preparing
and packing each separate small consignment for transmission by post is,
however, considerable, and only the affluent are able to indulge in that
method of obtaining food supplies.[410] The exceptional character of the
Post Office traffic in parcels, and the small degree in which the rates
of charge measure the utility of the service of transportation which
they cover, are well illustrated by the statistics of the traffic, which
indicate that the total numbers are unaffected by fluctuations in
general trade, and that the reductions of the rates which have been made
since the establishment of the service have had no appreciable effect on
the volume of traffic.[411] The actual rates for the heavier parcels are
probably more profitable than the rates for light parcels, since the
principle of degression is not much recognized in the scale of rates.
This view is confirmed by the fact that the post is little used for
heavy parcels, the average weight of a post parcel being no more than
2.8 pounds. It is, as a matter of fact, not improbable that the parcel
post service as a whole is conducted at heavy loss.[412]
NOTE.--As a war measure the rates were increased on 1st November
1915 by 1d. at each step in the scale, and are now as follow:--
Parcels not exceeding 1 lb 4d.
Exceeding 1 lb., not exceeding 2 lb. 5d.
" 2 " " 3 " 6d.
" 3 " " 5 " 7d.
" 5 " " 7 " 8d.
" 7 " " 8 " 9d.
" 8 " " 9 " 10d.
" 9 " " 10 " 11d.
" 10 " " 11 " 1s.
* * * * *
PARCEL POST IN THE UNITED STATES OF AMERICA
Several causes operated to prevent the early establishment in the United
States of a parcel post system. The two factors of extent of territory
and sparsity of population, which had from the first so greatly
influenced the policy of the Government towards the Post Office, were of
much greater importance in regard to a parcel post system. The weight of
the individual letter is very small, and as the cost of transportation
depends in most cases entirely on weight, the system of uniform rates
which had been introduced in England had not been found impossible of
adoption in the United States. But with parcels, cost of transportation
is an appreciable item for every parcel, and in a country of vast
distances there must be an appreciable variation in the actual cost for
each parcel. Consequently, any uniform rate which would render the
service self-supporting must be measurably above the rate which would
suffice for local and short-distance traffic, and measurably below the
rate which would be necessary for long-distance traffic. Private
agencies would therefore cut such a rate and absorb all the
short-distance traffic, while the long-distance traffic would be left to
the Post Office, and would be carried at a loss. This had been found to
be the case with second-class matter, where weight is an important
factor, and also with the fourth-class matter. The establishment of a
parcel post system, therefore, would involve a reconsideration of the
fundamental principles on which the rates of postage were in general
based.
The creation, in 1863, of a third class of miscellaneous mail
matter[413] was virtually the establishment of a limited parcel post.
The rate, for third-class matter, 2 cents for each 4 ounces or fraction
thereof, was increased in 1879 to 1 cent an ounce. These rates were
comparatively high; and as the limit of weight was 4 pounds, the traffic
naturally never assumed large proportions. With the establishment in
1880 of an international parcel post in which the United States
participated, although having no real internal parcel post, it was
inevitable that the question of establishing a system equal in scope to
those of other countries should arise. For forty years there was a
demand, becoming more general and insistent, for the establishment of
such a general parcel post.
Active official support was first given to the proposals for a parcel
post in 1890 and 1891 by Postmaster-General Wanamaker, who explained
that although the demand for such a system was widespread, the greatest
pressure came from "interior places," which were, in fact, really most
in need of it, because they had no facilities for obtaining small
packages of merchandise from the towns.[414] Opposition to any sort of
parcel post came then, as always, from the express companies, who,
although not able or not desirous of affording a service to all parts,
were much concerned at the prospect of losing traffic. Mr. Wanamaker
proposed to propitiate them by transferring to them a considerable
amount of traffic deemed by him to belong properly to the express
companies, viz., traffic carried by the Post Office for the other
Executive departments free of charge, under "penalty frank,"[415] and
comprising many packages of considerable weight and bulk. Mr. Wanamaker
also desired to put a stop to the transmission, as second-class matter,
of periodicals which were really ordinary books, by transferring such
traffic to the express companies. Although in favour of a full parcel
post system, and recognizing that there was a strong desire in the
country for the boon, Mr. Wanamaker was not prepared to advocate its
immediate establishment. He thought other reforms should take
precedence; such as free-delivery extension, postal telegraph, postal
telephone, and 1 cent postage on land and sea, all of which, except the
extension of free delivery, are still waiting adoption.