Part 19

Letter postage was found to be high for the formal documents of commerce, and from very early times there has been a disposition to accord an exceptionally low rate to such documents. The Act of 1660 conferred a special privilege on merchants' accounts not exceeding one sheet of paper, bills of exchange, invoices, and bills of lading. They were to be "without rate in the price of letters," that is to say, no account was to be taken of them. This privilege was continued by the 9th of Anne.[514] The Postmasters-General contended that the privilege was granted in the case of letters for foreign transmission only, but the merchants affected to interpret the Act as applying in the case of inland letters also. They naturally pointed out that restriction of the privilege to foreign letters imposed on traders within the realm a burden of postage not imposed on traders beyond the sea,[515] and the Postmasters-General found so much difficulty in maintaining the additional charge in the case of inland letters that they were ultimately driven to apply to Parliament, in 1720, for the express sanction of law.[516] From this time commercial or other papers obtained no special advantage over ordinary letters in the inland service; and in 1801, when the Post Office was endeavouring by all possible means to increase its net revenue, the privilege in the case of foreign letters was withdrawn.[517]

The introduction of a specially low rate for commercial documents was considered in the 'thirties of last century by the Treasury Commissioners of Inquiry into the Management of the Post Office, who recommended the adoption of a general 1/2d. rate.[518] Nothing came, however, of this suggestion.

The privilege to commercial papers has since been restored by little and little as extensions of the book post, established in 1847 (_q.v._), and at the present time most of the formal documents of commerce not exceeding 2 ounces in weight pass at the reduced rate of 1/2d.

* * * * *

FRANCE

(_Papiers d'Affaires_)

In the French service commercial papers (_papiers d'affaires_) constitute a special category of postal packets. Documents included under this heading may be described briefly as papers and documents, whether wholly or partly written, containing communications which are not of a personal character.

Until 1856 such papers were charged at the same rate as letters. This rate was found to be burdensome,[519] and in 1856 a rate of 1 centime for each 10 grammes was established--the same rate as that for samples and ordinary printed matter--but the minimum charge was fixed at 50 centimes. In 1871 the rate was altered to correspond with that for samples. It now became 30 centimes for the first 50 grammes, and 10 centimes for each further 50 grammes. As a consequence of the adhesion of France to the Universal Postal Union, the rate, together with that for samples, was changed in 1875 to 5 centimes for each 50 grammes. The discarding, in the case of _papiers d'affaires_, of the principle of a minimum charge equal at least to the minimum charge for letters, had unfortunate results. It has been found extremely difficult always to distinguish between documents entitled to be regarded as _papiers d'affaires_ and documents which are of a personal character, and therefore subject to letter postage. The privilege is at present restricted to packets weighing not more than 20 grammes, and the rate of postage is 5 centimes. Packets weighing more than 20 grammes are subject to letter postage.

The number of packets passing as _papiers d'affaires_ increased rapidly, but still forms only an inconsiderable fraction of the total number of postal packets. In 1856 the number was 39,747; in 1889 it exceeded 15 millions; and in 1913 it reached 58 millions.

It is necessary to issue a long and detailed list showing the kinds of documents admissible at the reduced rate, and the difficulty of administering the rate is considerable.

* * * * *

GERMANY

(_Gesch[:a]ftspapiere_)

After the abolition of the old Prussian _Schriften- und Aktentaxe_[520] in 1861, neither the North German Bund nor the Imperial administration granted a special rate for wholly or partly handwritten communications which were not of the nature of personal and individual correspondence. Either letter or parcel rate must be paid on such packets. In the international service the rate for such was the same as the rate for printed matter, and the unfavourable position in the inland service in this respect gave rise to public complaints. In 1900, therefore, a special class of packets, named _Gesch[:a]ftspapiere_, was introduced in the internal service of the German Imperial administration. Papers partly or wholly written, but not of the nature of private or personal communications, were admissible at a reduced rate of postage.[521] Except for local traffic the new rates were:--

Not exceeding 250 grammes 10 pf. 250-500 grammes 20 pf. 500 grammes to 1 kilogramme (maximum) 30 pf.

Compared with the total postal traffic the number of packets passing at the reduced rate is quite small, but it is increasing, and is sufficiently large to indicate that the privilege affords a considerable advantage to the public.

The number of packets of _Gesch[:a]ftspapiere_ was:--

1904 10,793,620 1907 16,789,260 1910 23,632,220 1913 34,328,950

* * * * *

(IV) POSTCARDS

The idea of postcards originated with Dr. H. von Stephan, who submitted a proposal for their introduction at the meeting of the delegates of the German Postal Union at Karlsruhe in 1865. Dr. von Stephan had realized that the ordinary form of the letter missive, although most suitable in many ways for many kinds of correspondence, was not always convenient. Much commercial correspondence might be conducted with briefer and less formal communications, and for such short and urgent messages a simple and less costly means would be welcomed.

The proposal was therefore for the issue of cards which should be addressed on the front, and at the back should bear the written message.[522] The cards should be transmitted unenclosed. The proposal was not well received by the delegates. It was, however, revived in 1869 by Professor Herrmann of Vienna, who brought it to the notice of the Austrian postal administration. It was viewed favourably by that administration, and the cards were introduced in the Austrian service on the 1st October 1869, being sold at the price of 5 kreuzer. The innovation was an immediate success, nearly three million cards being sold in the first three months; and following on this success the cards were soon introduced in most other countries.

Except in France, and for the first two years in Germany, the rate charged has from the first been one-half the minimum rate for letters. In France the minimum for postcards bearing ordinary messages has never been less than 10 centimes.[523] This reduction of 50 per cent. cannot be justified on any ground of cheaper handling. The manipulation and conveyance of postcards is perhaps slightly less expensive than that of ordinary light letters, but any such difference is small, and in point of fact postcards are usually regarded as causing a little more trouble in the process of sorting. For all practical purposes it may safely be assumed that postcards and ordinary light letters involve approximately the same cost for their handling and transmission.[524] This difference in the rates of postage charged on ordinary light letters and postcards, respectively, is therefore either a standing evidence of the fiscal character of the rate for light letters, or of the uneconomic character of one or other of the rates, or of both.

The postcard has proved immensely popular. Its use for formal and unconfidential communications is a great convenience. By avoiding the necessity for folding and enclosing in envelopes, time is saved in the making up of correspondence for the post; and the saving in postage when a quantity is sent out is very considerable. The cards are a convenience also in the practical working of the Post Office service. Their use diminishes both the weight and bulk of the mails; on account of their lightness and uniformity of size and shape large numbers can be packed together in small space. In this respect they contrast strongly with the irregularly shaped packets of books or of general merchandise, which represent the maximum of encumbrance to Post Office working. The introduction of the picture postcard gave a great impetus to the use of this means of correspondence. Except in France, the traffic has assumed large dimensions. In the United Kingdom in 1913-14 the total number of postcards was about 926,000,000, while the total number of packets passing at the letter rate was about 3,478,000,000.[525]

(V) RATE FOR PRINTED MATTER FOR THE BLIND

The low rate for matter printed in raised type for the use of the blind is a purely philanthropic concession.[526]

In the United Kingdom the rates are:--

For a packet not exceeding 2 ounces in weight 1/2d. " exceeding 2 ounces and not exceeding 5 lb. 1d. " " 5 lb. " " 6 lb 2d.

It will be noted that the initial penny rate is maintained (the 2 ounces for 1/2d. being merely the ordinary printed matter rate), but a comparison with the ordinary parcel post rates (see Chapter III) will show that if, as there is reason to believe, those rates are unremunerative, the rates for literature for the blind must involve a heavy loss on each packet. The number of packets is, however, only some 300,000 per annum.

Similar low rates are in operation in other countries. In the United States packets containing matter of this kind are carried free.

* * * * *

(VI) MINOR RATES IN THE UNITED STATES AND CANADA

In the United States and Canada a special method of differentiating rates of postage has been adopted. All postal traffic is termed "mail matter," and is classified in four groups, to each of which is applied an appropriate rate. The classification, which is almost identical in the two countries, is based partly on the general character of the packets (size, shape, etc.), but more largely on certain general principles of administration, and on the intrinsic value of the contents. Thus the ordinary letter, which is the most important and valuable traffic, is placed in the first class of mail matter, and is charged the highest rate. Newspapers and periodicals, which are regarded as of great importance in aiding the education and enlightenment of the people, are placed in the second class of mail matter and are given the lowest rate.[527] Books and all other printed matter, commercial papers, postcards, etc., are regarded as of less importance than letters, and are deemed to be less entitled to encouragement from the State in their distribution, but still entitled to preferential treatment as compared with packets containing miscellaneous articles. They are accordingly placed in the third class of mail matter, and are given a rate intermediate between that of the first class and that of the second. All other articles sent by post--the residuum of postal packets--are placed together in a fourth class of mail matter, to which is applied a rate higher than the third-class rate, but considerably lower than the first-class rate.[528]

The rates for first-class matter (letters) and second-class matter (newspapers and periodicals) in the United States have been dealt with. They may be repeated here for purposes of comparison: the rate for letters is 1 cent for each 2 ounces or fraction of 2 ounces; the rate for newspapers is 1 cent a pound or fraction thereof when sent from publisher to subscriber--when sent otherwise the rate is 1 cent for every 4 ounces. On third-class matter the rate is 1 cent for each 2 ounces or fraction thereof, and on fourth-class matter the rate is 1 cent for every ounce or fraction of an ounce. With the view of encouraging agriculture, seeds, cuttings, bulbs, scions, roots, and plants are given the same rate as ordinary printed matter in the third class.

In Canada the rate of postage on first-class matter is 2 cents per ounce or fraction of an ounce, except on postcards, for which the rate is 1 cent, and local or "drop" letters, on which the rate is also 1 cent (_supra_, p. 255). On second-class matter the rate is 1/4 cent a pound when posted by publishers to subscribers, otherwise 1 cent for each 4 ounces or fraction thereof. On general third-class matter (including samples) the rate is 1 cent for each 2 ounces or fraction thereof: a special rate of 2 cents for the first 4 ounces and 1 cent for each additional 4 ounces or fraction thereof is given for seeds, cuttings, roots, bedding-plants, scions, or grafts. The object of this privilege is evident. The rate on fourth-class matter is 1 cent for each ounce or fraction thereof.

These rates have not been calculated with reference to the cost of the service in each case. Classification was introduced in the United States Postal Service as far back as 1863, but until 1906 no attempt had been made to apportion the total cost between the various classes. The estimate then made showed that the second-class mail involved a heavy loss, probably equal to six or seven times the rate of postage.[529]

* * * * *

V

LOCAL RATES

UNITED KINGDOM

Local postal services, providing for the delivery of local letters at reduced rates of postage, existed in the United Kingdom over a long period. The first service was established in London in 1680. Up to this time the business of the Post Office had been restricted to the transmission of letters between the post towns, and no rate of postage existed except in respect of letters sent over appreciable distances.[530] The idea of a local service seems to have originated with a Mr. Robert Murray; but the London local post was actually established by William Dockwra, "a merchant, a Native and Citizen of London, formerly one of his Majesty's Sub-Searchers in the Custom House of London." Other citizens of London were concerned in the undertaking, which was established without reference to the authorities of the Post Office, and was intended to be purely a private commercial undertaking.[531]

Under Dockwra's scheme London, with Westminster and the suburbs, was divided into seven districts or "precincts," in each of which was a "sorting house." Scattered over the City and suburbs were from four hundred to five hundred receiving houses for the taking-in of letters. Messengers called at the houses for letters every hour. Letters and parcels not exceeding 1 pound in weight or [L]10 in value were accepted and conveyed at the uniform charge of 1d., payable in advance.

The service was not restricted to letters for delivery within the London area and the surrounding district. Letters which were to be transmitted through the General Post[532] were accepted at any of the receiving offices, and conveyed to the General Post Office in Lombard Street; and letters received in London by the General Post were delivered by the penny post, if for places outside the General Post delivery.[533] This facility proved of much advantage to the public, and led to a large increase in the number of General Post letters. When well established, Dockwra's new system proved profitable and attracted the attention of the authorities of the General Post Office. They contended that the service was an infringement of the monopoly conferred on the Postmasters-General by the Act of 1660,[534] and in 1683, at the instance of the Duke of York, in whom were vested the profits of the General Post Office, an action was brought against Dockwra to restrain him from continuing a breach of the privilege of the Postmasters-General. Dockwra was ordered by the court to pay nominal damages, and was forbidden to continue his penny post.

The post was not, however, abolished, but was taken over and managed by the Postmasters-General. Although the service had been decided to fall within their monopoly, the rates charged rested on no legal authority. No statute authorized the conveyance anywhere of letters at the rate of 1d. No authority existed for any rate below the minimum General Post rate of 2d., under the Act of 1660, a state of affairs which continued until the passing of the Act of 1711. A penny rate of postage was then fixed for all letters "passing or repassing by the carriage called the Penny Post, established and settled within the cities of London and Westminster, and borough of Southwark, and parts adjacent, and to be received and delivered within 10 English miles distant from the General Post Office in London."[535] At first the service had included only the cities of London and Westminster, the borough of Southwark, and the immediate suburbs; but the residents in the neighbouring towns and villages, recognizing the advantage of the system, soon asked that it might be extended to include their respective localities, voluntarily agreeing to pay an additional penny on delivery, on each letter. This further charge was at first appropriated by the messengers as their remuneration; but as the amount received by them in this way was found to exceed what might fairly be regarded as reasonable wages, the second penny was in 1687 made part of the ordinary revenue of the Post Office. There was, however, no legal authority for the collection of this additional charge, which remained a voluntary payment until 1730.[536]

The limit of weight for packets sent by the penny post was also extended, parcels of considerable size and weight being accepted. The rate of postage, however, remained uniform at a penny. One of the charges against Dockwra in later years, when he was dismissed from the office of Comptroller of the Penny Post, to which he had been appointed under William III, was that he forbade the taking in of any but very small band-boxes, and all parcels over 1 pound in weight.[537]

The penny post was found to be a great convenience to Londoners and dwellers in the vicinity.[538] It facilitated both local intercourse and, through its connection with the General Post, general intercourse with all parts of the country. It was also advantageous in a way which was not satisfactory to the Postmaster-General. For some years before its establishment there had been much difficulty from the evasion of postage resulting from the illicit transmission of letters. Carriers, especially, made a business of the conveyance of letters. The difficulty had been so serious that in the reigns both of Charles II and of James II special officers had been appointed whose duty it was to search any person or vehicle suspected of carrying clandestine mails. The establishment of the penny post led to a very large development of this traffic. Previously, when the carriers arrived with the letters, there was no means at their disposal for effecting distribution and delivery within London, other than by themselves delivering the letters individually, or by employing special messengers, or, in the last resort, by employing the General Post, to avoid whose charge was the whole object of entrusting letters to the carriers. The penny post removed this difficulty, and the public were not slow to avail themselves of the opportunity afforded.[539]

The penny post did not, however, mark the limit of possibility in the way of cheap postal facilities. In 1708 Charles Povey established a halfpenny post in London, and found this low rate profitable. His undertaking, like that of Dockwra, proved to be an infringement of the monopoly of the Postmasters-General, and was suppressed within a few months, although Povey was very reluctant to discontinue his service.[540]

The London penny post was for a long period the only local post in the kingdom. Its advantages were, however, generally recognized, and the Post Office Act of 1765[541] gave to the Postmasters-General power to establish penny posts in any town where that course seemed to them expedient. Under this authority numerous penny posts were established in all parts of the country. As many as 202 such penny posts were established between 1830 and 1837. They were established only when it could be reasonably anticipated that the yield of the penny postage would cover the expenses of the service; but when once established they were not usually discontinued, even if the revenue fell below the expenses.[542] Like the London penny post, these local services included the area surrounding the town in each case. For transmission within a penny post area the rate of postage was 1d.; for transmission to another such area the general rate was charged in addition; and another penny was charged in respect of the second penny post.

The conveyance of parcels ceased in 1765. The Act of that year[543] forbade the transmission by the penny post of any packet over 4 ounces in weight unless it had passed, or was intended afterwards to pass, by the General Post. During all this period, however, the people of London enjoyed an efficient postal service which in point of lowness of charges was in advance of anything they have enjoyed since, unless the privileges of the postcard and the halfpenny post, that is, of a rate half the minimum (and only) rate of the penny post, can be set against the cheap transmission of considerable packages by the old service.

A further Act of 1794[544] empowered the Postmasters-General at their discretion to extend the limits of the post beyond the 10-mile circle prescribed by the Act of 1711. No additional postage was imposed on letters delivered beyond the 10-mile circle. Under the Act of 1730 the charge would be 2d. An additional rate of 1d. was, however, imposed on all letters posted within the extended limits and beyond the 10-mile circle; and also on all letters posted without the original limits of the penny post and delivered within those limits, i.e. the cities of London and Westminster, and the borough of Southwark, with their suburbs. By this Act prepayment of postage, hitherto compulsory in the penny post, was made optional.

An Act of 1801[545] raised to 2d. the rate for letters passing by the penny post, whether or not they were to pass by the General Post, within the original limits of the penny post. For letters passing by the penny post, posted or delivered outside the original limits, no additional rate was prescribed. The charge was already 2d.; and the rate of postage on letters passing by the London local post therefore now became uniformly 2d. Henceforward the service was known as the "twopenny post."

The Act of 1801 contained an important clause (clause 5) of general application, providing that the Postmasters-General might at discretion undertake the conveyance and delivery of letters "directed to persons abiding in towns, villages, and places (not being post-towns)," for such sums as might be agreed upon between the Postmasters-General and the inhabitants. Under this provision it was found possible to extend the service to a considerable number of places.[546]