Postal Riders and Raiders

by W. H. Gantz

HEARINGS BEFORE THE HUGHES POSTAL COMMISSION.

I intended to follow the hearings before this commission personally. Ill health prevented my doing so. Under this stress, I asked my friend, Mr. M. H. Madden, quoted on a previous page in connection with other phases of our general subject, to summarize for me the hearings of the commission in August. Mr. Madden kindly consented to do so. Following is what he writes me relating to the commission’s proceedings and hearings:

The first meeting of the commission took place on August 1, and it continued its hearings in New York City, with occasional adjournments during the greater part of the month.

Postmaster General Hitchcock represented his department before the commission, Second Assistant Stewart and Third Assistant Britt were also present, each in turn occupying the stand. Hitchcock outlined his position concerning a demand for an increase for the first time, although the same idea was expressed by Third Assistant Britt some months ago, when Britt made an address before a convention of newspaper circulation managers in Chicago. Hitchcock and his two assistants held to the view that each schedule in the postal service should be made self-sustaining, the credit for this idea being given to Hitchcock, and in order to justify his position concerning a raise in second-class rates an arbitrary figure has been placed on the cost of handling the same, the total “deficit” from this schedule being placed at about $70,000,000 annually. This amount was arrived at by what Second Assistant Postmaster General Stewart states was a complete record of the weighing of all mail handled by the Postoffice Department of matter originating in every postoffice and railway postoffice in the country for a period of six months from July 1 to December 1, 1907, together with the amount of mail carried in every railway car. The department in many instances has admitted the unreliability of the figures used, there having been many estimates employed.

Publishers of the country were represented by several attorneys who examined into the testimony given by Hitchcock, Stewart and Britt, and by a series of questions they showed that the conclusions of the three as to cost of handling second-class mail were made on a guesswork plan and not on a scientific or reasonably accurate basis of fact. Third Assistant Postmaster General Britt made the startling statement that “if all the magazines and newspapers were excluded from the second-class rates because of a circulation gained, not on the merits of the publication, but because of some voting contest or offer of premiums as a bait, not 10 per cent. of the total would remain undisturbed.”

This declaration was looked upon as an argument by the magazine publishers as favoring their contention that the advertising portions of their periodicals are justified by legitimate business reasons, as an increased volume of advertising enables publishers to issue periodicals of much higher literary excellence. The postal authorities held with firmness to the conviction that advertising matter in publications is primarily for the advantage of the publisher, and therefore should be charged a higher rate than reading matter. Postmaster General Hitchcock went on record before the commission as declaring that he would recommend to Congress an increase on the advertising portion of magazines and newspapers of a cent a pound additional. Assuming that the postoffice officials are prompted by a legitimate purpose in their desire to increase rates on second-class matter, their arguments before the commission have been transparently weak, and an unbiased mind they would fail in convincing, but the feeling is that the commission will accept the conclusions of the postal authorities that the government rate of one cent a pound is inadequate for transporting second-class matter. To justify the position taken by the government that each schedule should maintain itself, the Postmaster General intends to press with vigor a reduction of first-class postage from two-cents to one cent a letter, he citing the profit on first-class mail and the alleged loss on second-class matter as his reason for the change of rate.

Religious and denominational publications were represented before the commission, the contention being made by these that the doubling of the rate on second-class matter would work very serious injury to the religious press, forcing many publications out of business. This statement was made by E. R. Graham, representing the Methodist Book Concern publications in Cincinnati and New York, and seemingly it made an impression on the members of the commission. The attorneys representing the publishers were much interested in Mr. Graham’s statement, he being considered a competent authority on the matter.

One of the strongest arguments of the hearings, because of the experience which he has had as a postal official, was made by Mr. W. S. Shallenberger, who had served several years in Congress as a member of the Committee on Postoffice and Postroads. Mr. Shallenberger was for a number of years Second Assistant Postmaster General, and now represents the Interdenominational Publishers who issue Sunday school literature throughout the United States. This witness gave it as his opinion that an increase in the rate on second-class matter would cause magazines and newspapers to avail themselves of the facilities now offered by the express companies which are becoming active competitors of the government in transporting second-class matter, these corporations obtaining better rates from the railroads than is given to the government. Mr. Shallenberger expressed the view that since every civilized nation was cheapening the cost of postal service the fact that our country was seeking to increase the rate seemed to be reactionary.

Mr. Shallenberger served under six Postmaster Generals and all of these held that the government was carrying second-class matter at a loss. But his opinion was that there was a substantial profit in the present rate, at the same time condemning the idea that each particular schedule should be made to pay its own way, the stimulus toward encouraging other schedule receipts not being given its proper consideration. Mr. Shallenberger gave a hint concerning hidden influences seeking to have the second-class rate increased but did not enter deeply into this phase of the subject. The controversy between Mr. Shallenberger and Second Assistant Stewart was animated and prolonged, and touched on features connected with the compensation paid railroads for hauling the mail, the express companies getting better terms than the government, this statement being made by a representative of the Postal Progress League.

The strongest point the publishing interests made was when the superintendent of the railway mail service, Chas. H. McBride, testified that a considerable part of the estimate upon which the department’s figures are based is guesswork and assumption, he admitting that if this were so the result would not be greatly different from what the officials first claimed. On the whole Superintendent McBride’s testimony was calculated to show that the Postoffice Department was desirous of making out a case against the second-class schedule, however necessary it was to twist figures and conceal facts in order to do so.

Mr. Wilmer Atkinson, publisher of Farm Journal, Philadelphia, combated the contention of the postoffice officials, as shown in their statements and tables, and declared with much emphasis that second-class matter stimulated first-class postage receipts. The statement of the cost of carrying second-class matter, placing it at nine cents a pound, is, according to him, “only a stereotyped guess that goes into the postoffice department report, each year,” experts having repeatedly stated that there is no possible way of fixing the cost of carrying second-class mail. In the opinion of Mr. Atkinson the government could better afford to carry it free than not to carry it at all. “Gumption and common sense,” declared Mr. Atkinson, “should rather be applied than indulging in worthless guessing.”

Representatives of scientific publications, college journals, fashion papers, fraternal societies and trade periodicals appeared before the members of the commission during the sessions, and all entered emphatic protests against the increase. In numerous instances these interests made the statement that serious reverses would be encountered if the postage rate should be doubled, and that many publications would be forced to suspend.

The labor union press, an interest representing about 250 weekly and monthly publications, with a circulation approximating 1,250,000 copies was officially represented by President Samuel Gompers of the American Federation of Labor, and President Matthew Woll, of the Photo-Engravers’ Union. Mr. Gompers entered vigorous protests against discriminations against labor publications and registered a severe censure of the method by which the Postoffice Department had hampered the official journals of the labor people. Mr. Gompers stated that the publications of the American Federation of Labor and its auxiliaries were all highly educational in their character and, in the event of an increase in the item of postage to the extent of 100 per cent additional, many of the best would be driven out of business with corresponding loss to the men individually and to the nation as a whole. Mr. Gompers’ declaration was listened to with much interest.

President Woll dwelt on the far-reaching effect which the hampering of the labor press would have on the manifold business relationships involved in the printing industry, primarily directing attention to the more than a third of a million of workers in the printing trades alone. He then advanced to the foundation of the paper and machinery features of the proposition, viz., from the ore in the mine, from which the machinery was made, to the forest tree from which the pulp is ground. The tonnage of the transportation service of the country would at once be doubly interfered with, first in a reduced demand for material with which to make the paper and, secondly, the corresponding decrease in the weight of the finished product of the publications. In many features Mr. Woll made prominent the ideas which the “Postal Riders and Raiders” is promoting, including the educational features of the immense volume of printing which comes from the printing press in all sections of the country.

The commission adjourned, subject to the call of Justice Hughes. However, it is understood that it will be called together in time to prepare its report to President Taft and to Congress when the session opens in December, 1911.