The question of the rate to be applied to parcels is one of

considerable difficulty. While considerations of public utility would

probably make it undesirable for the State to derive a profit from the

business, they would hardly extend to the point of conducting a large

transportation business at a loss, and the results in England and

Germany show how important and difficult is the problem of fixing

remunerative rates. The rates for newspapers, samples, ordinary printed

matter, etc., have been accorded not solely with reference to the cost

of the service, but on grounds more or less political and social as

regards the fact of granting a privileged rate, and more or less

empirical as regards the fixing of the actual amount of the charge. For

the most part this method has answered sufficiently well, the reason

being that the cost per packet is comparatively small, and the

privileged traffic has not generally assumed large proportions relative

to the letter traffic. These empirical methods cannot, however, be

applied in the case of parcels. The expense of the service performed by

the Post Office is not, as with a letter, actually small, and confined

to that of collection at one end and delivery at the other end of the

journey, with a negligible cost (per packet) for transmission between

the points of origin and destination. Cost of transportation itself

becomes an appreciable item in respect of every parcel. For this

transportation the Post Office is in the main dependent on the railways,

and in the determination of its cost the principles determining ordinary

railway rates must necessarily apply.

Those principles are complex and to a large degree indeterminate. On the

problem of railway and other transport rates many volumes have been

written, and many more will yet be written before a solution is arrived

at.[643] Railways, like the Post Office, are unable to allocate the

actual working costs with any degree of precision between the various

kinds of service they perform. Like the Post Office, they have one

general set of expenses, although they have diverse sources of

revenue.[644] Even if the cost of service could in each case be

definitely ascertained, its adoption as the sole basis of the rates

would prove unsatisfactory.[645] For the most part the principles on

which the rates are actually fixed resolve themselves into a

consideration of "what the traffic will bear," that is to say, the test

by actual observation and computation, strengthened, if need be, by

actual experiment, of the rates which will yield the maximum advantage

to the railway company.

The advantage to the railway conducted under private management may be

defined to be the excess of receipts from the traffic over the

out-of-pocket expenses actually incurred in handling the traffic. To

obtain this maximum it has been found necessary to vary the charge

according to the nature of the goods. Elaborate, detailed

classifications of goods have been arranged with distinct scales of

rates for each class, devised on the basis of charging each kind of

goods with the rate likely to yield to the railway the maximum of

advantage as defined above.[646] Although somewhat crude and a little

empirical, certainly largely arbitrary, this method has been almost

universally adopted for the determination of railway charges.[647]

A characteristic feature of such charges is that account is invariably

taken of the distance over which the goods are transported. In contrast

with this, the principle of uniformity of rate irrespective of distance

has been universally adopted in regard to all postal packets other than

parcels, and to some extent for parcels. The application of the

principle to parcels rests, however, on other grounds than its

application to letters. Sir Rowland Hill himself never contemplated that

the principle was necessarily applicable to all matter which might be

sent by post.[648] The circumstances under which he made his discovery,

and the facts on which he relied, make it plain that, in the absence of

other overpowering considerations, the grounds advanced in the case of

light letters will not justify uniformity of rate irrespective of

distance for packets of considerable weight, which necessarily involve

appreciable cost for transportation. From the financial point of view,

the uniform rate is, moreover, inapplicable to any class of traffic not

secured to the Post Office by monopoly, since private undertakings will

always step in and take away the profitable sections.

For heavy parcels a uniform rate cannot be justified. There are,

however, certain considerations not purely economic which may be held to

justify a uniform rate for small parcels, especially if it be held that

the State may conduct such a business for the advantage of the public,

and abandon to some extent ordinary commercial balancing of cost and

revenue.

Simplicity, afforded in a high degree by the uniform rate, facilitates

the administration and practical conduct of Post Office business, and

is, therefore, desirable, even if a little unjust. Complicated rates are

an unfailing source of irritation to the public as well as a source of

embarrassment to the staff, and there is not much doubt that one feature

of the parcel post which commends it to the public favour is the

simplicity of its rates.[649] There is, moreover, to be considered the

view that it is no part of the duty of the Post Office to provide

services in towns or districts for which private industry gives adequate

services, but rather to cover the whole country, so that the public may

always have ready to hand a means of forwarding small packages of goods

to friends or relatives, or traders to customers, in other parts of the

country. Such a service has many features which distinguish it from

business undertakings of the ordinary type. In this way uniform rates

may prove justified; since if in regard to any local service, or the

service between any two points, the uniform rate, which must necessarily

in certain cases yield considerable profit, is found burdensome, it is

in all such cases open to private industry to provide the remedy. In the

case of light parcels the cost of the services of collection and

delivery is much greater than that of conveyance; and the variation of

the total cost with distance of transmission is small proportionately.

The uniform rate can therefore be fixed near the level of the cost. But

even for such parcels it is economically unsound. It cannot be fixed at

a really low level, because it is to be applicable to a parcel sent

across the whole territory of a postal administration; and with such a

parcel, even if weighing only 1 pound, the cost of transportation is an

appreciable item.

The uniform rate for parcels is an expedient for smooth working rather

than a scientific rate, and against the acceptance of uniformity of rate

as a principle must be placed the fact that railway companies have not

adopted it. The actual results of the uniform rate have not been

altogether satisfactory. The small use of the post for the transmission

of the heavier parcels appears to indicate that the rate for such

parcels is, in general, too high.[650] For local traffic in small towns,

where cost of conveyance is negligible, it is almost prohibitive,[651]

and is much higher than the rates charged by competing agencies.

The considerations in favour of a degressive rate apply with greater

force to parcels of moderate weight than to the comparatively light

packets which pass at the letter rate, and this feature should receive

fuller recognition in the determination of parcel rates than has

hitherto been the case.

To sum up: there are important differences between the letter and parcel

traffic: (1) the letter traffic is a monopoly in which the more

profitable business belongs to the State as well as the unprofitable,

while the parcel business is not a monopoly, and any traffic which

proves profitable may at once attract private competition; (2) in the

letter traffic the cost of transmission for a given distance is

negligible, and in the parcel traffic it is important; (3) the social

arguments which make it desirable for the State to secure as wide as

possible a diffusion of letters containing information, of newspapers,

books, and samples, do not apply in the same way, or to the same degree,

to the traffic in parcels containing goods.

* * * * *

In essentials the case of international rates differs little from that

of inland rates. The work in connection with a letter falls into three

main divisions: (1) at the place of posting; (2) transmission from place

of posting to place of delivery; and (3) at the place of delivery. In

the case of inland letters, the first and third factors preponderate to

such a degree that their cost alone need be taken into consideration in

fixing the rate. The factor of transmission can be ignored. In the case

of letters from one country to another, the services at the offices of

posting and delivery are performed under different, instead of under the

same, administrations, but for all practical purposes are otherwise

unaffected. The only factor seriously affected is that of

transportation.

The variation in the cost for transportation[652] depends largely on

distance, and in that respect various countries are affected in varying

degrees, not only as regards the actual distances over which their

letters for or from places abroad are sent, but in the way in which

those distances compare with the distances over which letters in the

inland service are conveyed; and the question therefore wears a

different aspect in the different countries. Thus a very large

proportion of letters in the British service are forwarded over greater

distances than letters in the inland service. The same thing is probably

true of France and Germany. Distances in the inland services of the

United States and Canada are, however, comparable with the distances in

the international services in Europe, and in many cases with distances

in their own international services. If, therefore, mere distance of

transmission were the only consideration, there would obviously be

little to urge against the application of the ordinary penny letter

rate for inland transmission, at least to the traffic of the whole of

Europe, just as it has been applied to the traffic of the whole of the

United States and Canada.[653]

But it is doubtful whether inland distances are really comparable with

international distances. The cost of maintaining lines of communication

between distant countries is often altogether out of proportion to the

quantity of mails conveyed; and the sums paid, although ostensibly

payments for the conveyance of mails, are often really subsidies, paid

sometimes in order to assist the shipping or other industry, sometimes

for political purposes.[654] They cannot, therefore, be used as a basis

for calculating the amount of postage which should be charged on private

letters.

This was particularly the case in earlier times.[655] With the expansion

of commerce and the establishment for commercial purposes of regular

lines of steamers between the principal countries of the world, the task

of the Post Office has been much simplified, and, notwithstanding the

growth of mails, the cost actually reduced.[656] It is, however, still

heavy, and in some cases the payments include an element of subsidy. The

cost of transmission by sea of a foreign letter in the British service

is on the average 1/4d. Foreign rates are not, however, fixed on a

simple cost basis. The reduction to a penny of the letter rate between

Great Britain and all parts of the British Empire; between Great

Britain, Egypt, and the United States; and between the United States and

Germany and France, has been made from considerations of general

advantage, political or otherwise, rather than from considerations of

immediate profit or loss on the postal service.

The international parcel post has always been regarded as primarily

commercial,[657] and the service has been deliberately restricted to

small parcels on the ground that the conduct of an ordinary

transportation undertaking is not a postal function, and that the

admission of heavy parcels would render impossible the maintenance of

the postal principle of uniformity of rate. Parcel mails are in the

international service frequently denied the privilege of rapid

transmission accorded to letter mails.[658] The developments of the

present war have emphasized the essential distinction to be drawn

between communications on the one hand, and packages of goods sent by

parcel post on the other.

* * * * *

The general basis of postal rates is naturally affected in some degree

by the fact that the Post Office is a State undertaking, and the

propriety of Government control deserves consideration. Adam Smith,

with his individualistic leaning, was bound to touch on the question of

a State Post Office. He thought there was no objection to the conduct of

the Post Office by the Government,[659] and economists since his day

have generally followed his view.[660] This acceptance of State control

as theoretically justifiable has probably been induced by the logic of

facts rather than by the recognition of any peculiar characteristics

tending to that view discoverable in the postal service as an industrial

organization.[661]

The transmission and delivery of letters for private individuals may

have some affinity to the transmission of official despatches, but in

theory such affinity is slight, especially in regard to the transmission

and delivery of local letters. Because the Government had found it

essential for its own purposes to establish a system of posts, it did

not necessarily follow that the Government must assume also the function

of conveying letters for private individuals. But the Post Office is one

of those organizations in the case of which the normal influence of

economic forces tends to exclude competition. Its operations are spread

over large areas, and duplication of services over large areas would

result in waste of effort and increase of expenses. Competing postal

establishments would exhibit the same glaring economic waste as

competing arrangements for the supply of gas, water, or electricity. The

service thus almost certainly becomes a monopoly; and its nature makes

the assumption of its management by the State advantageous. In times of

war, State monopoly of the means of communication (postal, telegraph,

telephone, and wireless) is essential. Even if these services were in

private hands at the outbreak of war, the first action of the Government

would undoubtedly be to assume control.

A further reason justifying the conduct of the postal service by the

Government rather than by private enterprise is that it is a necessity

for the State to provide a means for the regular transmission of

intelligence by letter of script throughout its territory. If the

working of the service were left to private enterprise, it would be

certainly confined to such routes as were found profitable, and those

parts of the country in which profitable routes could not be established

would be left unserved. The State alone can secure the establishment of

a complete service, in which regard must not be confined to

considerations of mere profit.[662] There are also minor features which

render State management peculiarly applicable to the postal service. The

actual operations are simple. As Adam Smith said: "There is no mystery

in the business."[663] The work is for the most part of a routine

character, and calls for no special skill or knowledge. That is not to

say that in the performance of the actual duties there is no room for

the acquirement of considerable manipulative skill. It means that in

principle the chief operations are simple, and may be reduced to routine

processes. There is the further important consideration that the

operations of the Post Office are intimately connected with the daily

life of the people, and are constantly subject to public observation and

criticism.

Assuming a State parcel service, there is to be considered the question

whether that service should be attached to the letter post or whether it

would be more economical to set up a separate service. It might appear

at first sight that this question has been determined by the practice.

But as the financial scheme of the letter post rests on the fact that

the actual transportation of the letters occupies, as regards expense, a

quite subsidiary place,[664] it is difficult to discover any special

relation between the letter post and a business which is really part of

the general transport industry. It may in some instances be advantageous

to utilize for parcels the service provided for the transmission and

delivery of letters. An organization reaching to all parts of the

country is ready to hand, and one which, in rural districts especially,

is often not employed to its full capacity. It may therefore in some

cases manifestly be economical to give additional work to the service;

but, at the same time, the provision of a service for parcels may in

other cases add unduly to the cost of the general service--as, for

example, when it becomes necessary to make special arrangements on

account of occasional variations in the numbers of parcels.[665]

In any case, a postal service should be limited to parcels of moderate

size and weight, because the Post Office, as at present organized, is

for the most part adapted to the handling of packets which can be

delivered by foot-messengers. In rural districts this is almost

universally the rule.[666] It is frequently necessary in the towns to

separate entirely the parcel post traffic from the ordinary light letter

post traffic (except in those parts of the service where the parcel post

traffic is very restricted), to provide a separate staff, and to furnish

different equipment.[667] In effect, two establishments are maintained.

A separate parcel staff could, of course, collect and deliver traffic of

any dimensions or character. But difficulties would arise in regard to

the transportation from town to town of heavy parcels,[668] and in rural

districts their distribution could not be undertaken without a

reorganization of the general arrangements of the mail service. Any sort

of regular house-to-house delivery would be enormously expensive. To a

large extent--in the United Kingdom at any rate--such a service would be

a duplication of services already provided by railway companies, and

consequently economically wasteful.

The transportation of parcels is, indeed, in many aspects a service more

appropriate to the railways than to the Post Office. The Post Office,

for example, is handicapped as compared with the railways by the fact

that, while the larger part of its traffic in parcels must under present

conditions necessarily be conveyed by railway for some part of the

journey, the actual points of despatch and receipt of the parcels by

the Post Office are not in the large majority of cases adjacent to the

railway stations from or at which the traffic is despatched or received

by railway.[669] It is, in consequence, necessary in such cases for the

Post Office to provide a service between the respective railway stations

and post offices.[670] If the railway companies provided adequate

collection and delivery services there would be no need for division of

the function with the Post Office. In many districts, however, the

railway companies would find the provision of any sort of regular and

universal service unremunerative, and this is probably the ultimate

reason why the State has found it necessary to intervene. In the United

States the introduction of a parcel post, and its extension to heavier

parcels, was avowedly in a large degree due to the fact that in many

parts of the country the railways, which are in private hands, did not

provide any service for parcels. Where a service was provided by the

railways, the rates and conditions were not satisfactory, and the

establishment of a parcel post represents an attempt to prevent the full

application of the principle of charging "what the traffic will bear."

The Post Office, moreover, as a public undertaking, cannot bargain

freely for special facilities or terms with individuals or firms having

large numbers of parcels for delivery within a limited area. Without

such specialization the Post Office must often be unable to offer the

most economical service, and private carrying agencies secure the

business. In those countries where a parcel post is in operation, the

Post Office does not rank as a transportation agency comparable with

those of the commercial world. The traffic which it secures is private

and personal rather than commercial, to a large degree exceptional

traffic which the machinery of the ordinary commercial transportation

agencies cannot, or at any rate in general does not, deal with--traffic

for remote and isolated residences, spasmodic in character, and,

compared with the total traffic in parcels, small in amount.[671] The

uniform rate favours such traffic, but the expense to the Post Office is

disproportionate to the revenue. From the broader standpoint this is

perhaps not altogether loss to the State, since by this means local

industries are often brought in touch with markets which could not

otherwise be reached, and the rural population is enabled to obtain from

the towns many amenities not otherwise procurable.

Viewed in the light of these considerations, and especially of the fact

that it is open to competition at all points where its rates would prove

profitable, it will not appear extraordinary that the parcel post is

less successful financially than the letter post.[672] The conditions

under which postal business is conducted render it impossible to earmark

the expenses properly chargeable to the parcel post, since expenses are

for the most part incurred jointly. But the parcel post is to a large

extent a secondary service engrafted on the letter post, and is perhaps

not properly chargeable with a mathematical proportion of the total cost

of the two services based on the relative cost of handling individual

letters and individual parcels. Theoretical estimates of the cost of the

parcel post must, therefore, be accepted with reserve. But a proved

moderate loss on the parcel post would not be conclusive against the

propriety of its maintenance. Postal rates are simple, definite, and

generally known; and every post office is a receiving agency. It is

convenient to use the post, which offers the further advantages of quick

transmission, and the greater degree of security attaching to a State

institution. The line on which a postal service for small parcels can

best be justified is that by the utilization of existing machinery for

the disposal of additional traffic, not so large as to overburden or

disorganize the practical arrangements, a useful public advantage can be

secured without inordinate cost. Nevertheless, the parcel post service

is not a true postal service, but rather a commercial undertaking.[673]

The question of the legitimacy of State control, which in the case of

the letter post is of academic interest only, is therefore of real

importance in the case of a parcel service, and those who have a

distrust of all State interference in industry may legitimately argue

that it should stand aside from the parcel business.

* * * * *

APPENDIXES

APPENDIX A

I. RATES OF INLAND LETTER POSTAGE CHARGED IN ENGLAND, 1635-1915

WITHERINGS' RATES, 1635.

---------------------------------------------------------------

| Single | Double |

| Letter. | Letter. | Per ounce.

-------------------------------+---------+---------+-----------

Under 80 miles | 2d. | 4d. | 6d.

80 miles and not exceeding 140 | 4d. | 8d. | 9d.

Above 140 | 6d. | 12d. | 12d.

To or from Scotland | 8d. | |

" " Ireland | 9d. | After 2 ounces,

| | 6d. the ounce.

-------------------------------+---------+---------------------

--Royal Proclamation of 31st July 1635.

This was the introduction of postage in the modern sense. The object of

the exceptional rate for Ireland was to avoid interference with a

Proclamation recently issued there by the Lord Deputy and Council.

"A single letter is one written on one sheet of paper sealed; a double

letter is one sheet of paper which covers another sheet sealed up; a

treble letter proportionately."--_Calendar of State Papers_ (_Domestic

Series_), 1658, p. 368.

ORDINANCE OF 1657.

The Development of Rates of Postage: An Historical and Analytical Study · 第 23 / 42 段