Part 13

The other recommendation of the Penrose-Overstreet Commission, viz. that further statistics should be obtained with regard to second-class matter, was also adopted by Congress, and the statute authorizing the Commission on business methods also authorized the taking of statistics of the weight, number of pieces, and average haul of all classes of mail matter, separately, and the average load of all cars by which it was forwarded by railway.[343] With the statistics so obtained as a basis,[344] the department undertook the task, which, as stated by the Commission of 1906, had previously been impossible of performance, of calculating the actual working cost assignable respectively to the various classes of mail matter. A Committee, which was appointed in October 1908, and reported in November 1909, arrived at the conclusion that the cost of dealing with second-class mail matter was about 9 cents a pound. The whole subject was before the Committee on the Post Office and Post Roads of the House of Representatives in January and February 1910. Many representatives of the publishing interest attended and gave evidence, and the department's calculations were subjected to examination and criticism.[345]

Congress and the Executive were still, however, unable to arrive at a satisfactory conclusion on the question, and on the 4th March 1911 a joint resolution of Congress authorized the appointment of a further Commission on second-class mail matter, this time not a Congressional Commission. A judge, the president of a university, and a business gentleman were appointed to the Commission, which held sessions in New York in the latter part of the year, and took evidence from the Post Office department and representatives of the publishing interests. They found that the data available were insufficient to enable them to determine the total cost to the Post Office of the services performed in respect of second-class mail matter; but they were able to estimate the cost in regard to certain items of the expenses of the Post Office. The cost under those headings, which must, of course, be less than the total cost, they found as 5-1/2 cents a pound for ordinary paid-at-the-pound-rate matter and 5 cents a pound for free and transient matter.[346] That part of the general expenses of the service which the Commission were unable to assign satisfactorily between the various classes of mail matter was estimated by the Post Office department to amount to over 2 cents a pound for second-class mail matter.[347] On this basis, of course, a heavy increase in the rate of postage would be warranted; but in view of the uncertainty of the effect of the competition of the express companies which would result from a large increase in the rate of postage, of the fact that the publishers' business established in faith of constancy of the postage would seriously suffer from such a sudden increase, and of the well-known policy of encouraging distribution of educational literature,[348] the Commission hesitated to recommend any large increase, and contented themselves with recommending that the rate be raised from 1 to 2 cents a pound.

Given that the actual cost of the handling and transporting of second-class mail matter is on the average 9 cents a pound (regarding which the department is quite satisfied) and a rate of postage for such matter of 1 cent a pound, the department has, on the face of things, a strong case; and it is not necessary to ascribe other motives in order fully to explain and justify the course it has adopted. But the publishers felt that they were not favourably regarded by the Republican Administration. They claim, and the claim is admitted in influential quarters immune from pressure from them, that they are largely responsible for the establishment of the insurgent wing of the Republican party, whose action against the late Administration proved so disastrous to the fortunes of the party. In the course of these political activities they have made enemies; and they conclude that in the Republican party, many of whose members have been disgraced, if not indeed driven from public life, there has arisen a strong feeling against the publishers. The activity of the department against the second-class rate is alleged to have begun after the publication of articles in the magazines exposing the corruption in the cities, and incidentally reflecting on members of the Republican party. Moreover, the department's most drastic recommendations have been directed not against second-class matter as a whole, but against the periodicals; and they have been made under the guise of preventing, as contrary to the intent of the statute, the dissemination at the second-class rate of vast quantities of advertising matter. Thus, the department has recommended that that portion of periodicals which consisted solely of advertising matter should be charged at a higher rate than the rest of the publication (which would be allowed the second-class rate), while nothing at all was proposed as regards ordinary newspapers, a discrimination which cut the publishers of the periodicals deeply.

The representations of the Post Office department, extending over some twenty years, and of most decisive and emphatic character, have not yet succeeded in obtaining legislation for the reform of the second-class mail scheme; but some few years back the department arrived at the conclusion that the authority of the existing law was sufficient to enable the more flagrant abuses to be checked, if not eliminated. A series of rulings were thereupon promulgated, and by this means some of the worst abuses have been removed, such as, for example, the transmission as second-class matter of "libraries," issued as periodicals. These rulings were resented by the publishing interests, with whom it was a source of great complaint that the interpretation of the statute defining second-class mail matter was left to arbitrary decision by officials of the department.[349] The intense feeling in America against any sort of bureaucracy, and especially against a bureaucracy of the central Government, leads to a natural jealousy of the exercise of this power, and as a remedy the suggestion was advanced that provision should be made, first, for questions of the interpretation of the Act to be decided in the first instance by a permanent Commission located at Washington, on which the publishers should be represented; and secondly, that there should be an appeal from the decisions of this Commission to the ordinary courts of justice.

The department admits that its position with regard to the interpretation of the statutes is unsatisfactory. Under the existing system, all manner of questions are asked regarding the private business of the publisher, and the decisions from Washington are often delayed.[350] But as against the contention of the department, which was for an amendment of the law, the publishers contended that the law, while no doubt not altogether perfect, was in the main sound and just, and the rate of postage of 1 cent a pound was as great a boon as was ever conferred by Congress. They denied that it was in any sense a subsidy.[351] They also denied the existence of a deficiency, and contended that so far from its being true that the Post Office business involved a loss, there was each year a profit of millions of dollars. This result they arrived at by estimating the cost to the Post Office of the distribution of Government free matter, and the cost of the rural free delivery, which they added together, setting the total against the deficit shown in the published accounts of the department. By this means a balance of profit was obtained for each year. The estimated postage payable at the usual rates in respect of the free matter was of course an item legitimately to be added to gross revenue; but it was doubtful whether the cost of the rural delivery service could be deducted from gross expenses, as the publishers insisted, on the ground that the service was "extraordinary."

The publishers made a further allegation. At that time the express companies cut even the very low existing cent-a-pound rate on second-class mail matter for short distances, and if that rate were raised the range of their competition would be extended. With a 2-cent rate a much greater proportion of the traffic would inevitably fall to them. This would, of course, be very advantageous to the companies, to whom, as to railways, any increase in the volume of traffic handled would be welcome. These express companies had for many years been faithful supporters of the Republican party, and behind the suggestion to increase second-class rates the publishers were convinced there was a desire on the part of the leaders of the party to reward their faithful allies.[352]

But perhaps the chief contentions of the publishers, which the Post Office was bound to some extent to admit, and would in any case find it difficult to meet, were the claim that newspapers create a vast quantity of first-class mail; and the claim that since the payment made to the railway companies in respect of the transportation of the mail is based on a sliding scale, decreasing as the volume of traffic increases, the weight of second-class matter brings down appreciably the rate actually to be paid.

Some who appeared before the Commission of 1911 were inclined to go beyond these general contentions as to the relative claims of second-class matter, and to assail the whole administration of the department from the economic standpoint; challenging especially the relations with the railway companies, and arguing that the payment made for the conveyance of mails was not equitable when compared with the charges made by the companies for similar services performed for the express companies.

Notwithstanding these contentions, there can be no question that the transmission of the second-class mail at the present rates involves the department in heavy loss; and that Congress, not unaware of this, attaches importance to the advantages which a low rate for such matter confers. The Commission were satisfied on both points. It is, however, doubted by many whether the effect of this privilege has been altogether salutary from the educational point of view. It has encouraged to an almost incredible extent the publication of periodical magazines, and many of these magazines are of a high order of merit as periodical publications. The United States leads the world in the publication of this kind of matter.[353] But the reading matter which is found in these publications is to a large extent light and trivial. The publication of serious intellectual works has shown little advance in recent years,[354] and there is a fairly widespread feeling in America that the two developments are connected. But that is a matter difficult to determine.

In any case, many people are proud of the development in periodicals, and the department, in spite of its efforts, has so far failed to secure any increase of rate. Although the Postmaster-General and the President[355] adopted the recommendations of the Commission of 1911, and urged their consideration on Congress, Congress has not taken action, and has, indeed, forbidden the department to extend certain arrangements for the use of freight trains for the transmission of second-class matter, whereby a saving of expense could be secured, a phenomenon probably explicable by the constitution of American politics.[356]

* * * * *

NEWSPAPER POST IN FRANCE

In France, printed matter, whether issued periodically or otherwise, seems always to have enjoyed a lower rate of postage than the written letter. Before the Revolution there was diversity of practice as regards the rate of postage charged on newspapers. Some privileged papers paid only 5 or 6 deniers the sheet, while others paid 8 deniers. All the rates were purely arbitrary. When the Committee on Public Taxation of the National Assembly considered the question of fixing the rate for newspapers, they considered not only how to regularize the rate, but also whether they could raise it. Viewed from the economic standpoint, the rate was thought by some to be inadequate.[357] The Committee was satisfied that not only would the new rates cover the cost of the service, but that there would also be a slight profit, although they felt it would not be proper, or even possible, to make that part of the business of the Post Office a really lucrative source of revenue.[358]

The decree of 17-22 August 1791 established the rate of 8 deniers per sheet for daily newspapers (and other daily publications), and 12 deniers per sheet for other periodical publications. Pamphlets or unbound books were charged a sou the sheet. Bound books were not allowed to pass by post. It is unlikely that these rates were remunerative. They were modified several times during the next few years; but although the modifications were in the direction of increase, the rates for newspapers still compared very favourably with the rates for letters.[359]

A law of 6 messidor, an IV (1795), established a rate of 5 centimes for newspapers and other periodical publications delivered in the place of publication, and 10 centimes for all other destinations; but this discrimination was removed by the law of 4 thermidor, an IV, which substituted a general rate of 4 centimes the sheet. An attempt was made by the administration to raise the rates on newspapers and books. As regards newspapers the proposal was, however, rejected by the Conseil des Anciens.

In 1796 a new rate for newspapers and other periodical publications was established, viz. 4 centimes for each sheet. For other printed matter the rate was fixed at 5 centimes per sheet.[360] This law failed to prescribe the limits of size of the sheets according to which postage was to be charged, an omission supplied by an ordinance of the 5th March 1823, which fixed the dimension of the sheet at 24 centimetres by 38. The newspapers interested tried to resist this restriction, contending that the ordinance was illegal, because the laws of 1796 prescribed no limit and the Government could not impose one by ordinance: for such a purpose a new law was necessary.

The law of the 27 frimaire, an VIII (17th December 1799), had established a scale of charges according to weight, and the rates were fixed according to the distance actually traversed, under the arrangements then existing. This restriction, which was unfortunate, because the services existing during the Revolutionary period were not of a character to serve as a basis for the future, was felt to be onerous, and numerous complaints were lodged by communes which felt themselves placed under a disadvantage.

In 1827 the rates were revised and placed on a more stable basis.[361] The principle first established in 1791, of charge according to the distance between two places reckoned as the crow flies, was re-established; and a provision was inserted in the law to meet the difficulty which had arisen as to the legality of the ordinance of 1823, purporting to fix the size of the sheets on which the postage on printed matter was calculated. Postage on newspapers and periodicals was made 5 centimes for each sheet of 30 square decimetres for all destinations; but the charge was reduced by one-half for newspapers and periodicals circulated within the department where they were published, the reduced rate being established with the view of protection of the country Press, whose subscribers were in general local, against the competition of the Parisian Press. In 1830 the rate of 5 centimes the sheet for newspapers and other periodical publications was reduced to 4 centimes. The rates of 1827 remained otherwise unchanged.

In 1850 the newspaper tax and the postage were assimilated--that is to say, newspapers were subjected only to one tax, and payment of that tax secured the right of transmission by post. The tax was at the rate of 5 centimes per sheet of 72 square decimetres or less for newspapers published in the departments of Seine and Seine-et-Oise, and 2 centimes for those published elsewhere. All newspapers on which a tax of 5 centimes was paid, were entitled to free transmission by post throughout France. Those on which a tax of 2 centimes was paid, were entitled to free transmission by post within the department in which they were published and the adjoining departments. In order to obtain transmission by post throughout France, an additional sum of 3 centimes per paper must be paid on these latter newspapers.[362] The Minister of Justice, in introducing the measure in the National Assembly, explained that it would serve a double purpose: on the one hand it would give an increase of revenue of some six millions a year; and on the other it would safeguard society against detestable doctrines, because it would fall specially on those evil newspapers and books[363] which were circulated at a low price in town and country, propagating prejudices and error, exciting the passions and corrupting the conscience of the public.[364]

Louis Napoleon Bonaparte, in 1852, desirous that there should be no obstacle in the way of his ultimate assumption of absolute power and the Imperial crown, issued a decree further restricting the Press in France. The publication of newspapers or periodicals dealing with political or economic questions, unless authorized by the Government, was forbidden; and the rates of postage in force prior to the law of 1850 were imposed on newspapers, in addition to the tax imposed by that law.[365] The same principles led to the discrimination introduced in 1856 between political and non-political papers. The former were subjected to a higher rate of postage than newspapers of a non-political character, because the Government felt it to be necessary that there should be some moderating influence to check the effect of political journals in times of intense political excitement, and adopted this expedient.[366]

The rates for printed matter had for a long period caused considerable confusion, and given rise to many complaints from members of the public. They were still determined according to the linear surface of the sheets, a method which was found to cause considerable embarrassment and difficulty in its practical application. To all other classes of postal traffic the more logical and more convenient principle of charge according to weight had already been applied, and in 1856 this principle was applied also to printed matter of all descriptions. Weight was made the basis of the charge, without reference to superficies or to distance, except that for political reasons the privilege of half-rates for newspapers circulating in the department in which they were published was continued.[367] The reduction of the actual rates made by this law was slight, and was estimated not to have any appreciable effect on the total revenue. In any case the question was "regarded less from the financial point of view than from the point of view of the satisfaction which it would give to the needs of commerce and industry and of private intercourse in general."[368] The new rate was 1 centime for each 10 grammes, with a minimum of 4 centimes for political, and 2 centimes for non-political newspapers.

This reduction of rate, together with the reduction for other printed matter, for samples, and for commercial papers, resulted in a large increase in the number of bulky packets sent by post. In order to ensure prompt delivery, it was found necessary in Paris to separate to some extent the letter-post traffic from the traffic sent at the lower rates, and the principle of providing a separate staff of postmen for the delivery of newspapers, magazines, samples, etc., was introduced.[369] The application of this principle has since been extended, and the two kinds of traffic are now dealt with in Paris altogether separately, by separate staffs of officers.

The newspaper rates were next revised in 1878. The discrimination between political and non-political newspapers was abolished, but the privilege accorded to local newspapers was continued. The new rates were:--

1. Two centimes for the first 25 grammes and 1 centime for each further 25 grammes or fraction of 25 grammes for newspapers published in the departments of Seine and Seine-et-Oise and circulating outside the department where published; and for newspapers published in other departments and circulating outside the department where published and the adjacent departments.

2. One centime for the first 25 grammes and 1/2 centime for each additional 25 grammes or fraction of 25 grammes for newspapers published in the departments of Seine or Seine-et-Oise and circulating within the department where published.

3. One centime for the first 50 grammes and 1/2 centime for each additional 25 grammes or fraction of 25 grammes for provincial papers other than those of Seine and Seine-et-Oise, circulating within the department where published or adjacent departments.

The existing rate for inland newspapers, which is based on the law of the 16th April 1895, is as follows:--

Two centimes for each copy up to 50 grammes, and 1 centime for each 25 grammes or fraction of 25 grammes above 50 grammes.

Only half these rates is charged when the papers circulate within the department in which they are published or the adjacent department.

In 1908[370] the rates in respect of newspapers sorted and bundled according to the offices of destination and the post routes, were reduced to 1 centime for the first 50 grammes and 1 centime for each additional 25 grammes or fraction of 25 grammes--half this rate being charged for papers circulating within the department of publication or the adjacent departments.

The value of a centime is roughly one-tenth of a penny. It is hardly necessary, therefore, to point out that these rates are divorced entirely from economic considerations, and are to be explained only on political and administrative grounds.[371] It has been estimated that in 1895 the loss on printed matter of all kinds was 36 million francs.

In France, as in other countries, the privilege of transmitting periodical publications at a specially low rate of postage was much availed of for the transmission of advertising matter, of publications which were essentially of the character of catalogues or prospectuses rather than newspapers properly speaking. A law of 1908,[372] passed with a view, among other things, of minimizing this abuse of the privilege, restricted the application of the reduced rate to publications issued not less frequently than once a month. The new regulation had good results, restricting, as was desired, the number of periodical publications not legitimately entitled to the privilege. It had also a result which was regarded by Parliament as undesirable: it shut out from the privilege the numerous quarterly journals of scientific and learned societies.[373]

By the same law the minimum rate of postage for small packets of printed matter sent under loose band, the _imprim['e]s non urgent_, was raised from 1 centime to 2 centimes. The result of this was a little unsatisfactory. In order to evade the higher charge, advertisers took to printing in newspapers, circulating at 1 centime, announcements formerly sent out separately as loose leaflets, a man[oe]uvre which struck doubly: not only was the legitimate rate of postage evaded, but instead of dealing with the matter as non-urgent at its convenience, the Post Office was obliged to treat it in the same way as all other newspaper matter--that is, to give it the benefit of equal treatment with matter sent at the letter rate.

NOTE ON SUPPLEMENTS.