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.

Selected Articles on the Parcels Post · 第 9 / 13 段