on all parcels conveyed by railway for the whole or part of their journey, the Post Office being required to keep a record of the amount of postage paid on every such parcel. The remuneration was to be paid to the Railway Clearing Committee in London, by whom it would be distributed between the various companies. The agreement was to continue for twenty-one years, and thereafter until terminated by either party. The Postmaster-General retained the power of revising the rates of postage, but in the event of such revision the companies might claim revision of the terms of their remuneration (even during the first twenty-one years). In any case, on the termination of the agreement, the statutes governing the conditions under which ordinary mails are conveyed by railway, and the determination of the remuneration of railway companies in respect of such conveyance, were to apply equally to the conveyance of parcel mails by railway.
The Postmaster-General has twice exercised his right of revising the rates of postage, and in each case the rates were lowered. The companies have not exercised their right to ask for a revision of the terms of their remuneration, and the provisions of the Act therefore continue in operation. In the first complete year of the service (1884-5) the number of parcels conveyed was some 23 millions. The increase in the traffic has been large and constant. In 1912-13 the total number of parcels exceeded 130 millions.
The service affords a great public convenience, and the simplicity of its rates is an undoubted boon. The uniform rate has, however, proved unsatisfactory in some respects. At all points at which the traffic would be profitable, the Post Office is open to the competition of private enterprise; but for that part of the traffic for which the uniform rate must inevitably be unprofitable (unless it be fixed so high as to be exorbitant for short-distance and average-distance traffic) there will naturally be no competition. The number of local, or short-distance, parcels is consequently small, and the number of parcels sent for long distances, to remote places, is comparatively large. No great use is, however, made of the post for the transmission of parcels of agricultural produce from rural districts. There is a moderate traffic in butter and eggs from Ireland to England, and in cream from the West of
England. Proposals for the introduction of a specially low rate for agricultural products have frequently been considered, but there are obvious objections to the establishment of a special rate for a special class of traffic. Moreover, for parcels from country districts the present uniform rate is often ludicrously low. The cost of preparing and packing each separate small consignment for transmission by post is, however, considerable, and only the affluent are able to indulge in that method of obtaining food supplies.[410] The exceptional character of the Post Office traffic in parcels, and the small degree in which the rates of charge measure the utility of the service of transportation which they cover, are well illustrated by the statistics of the traffic, which indicate that the total numbers are unaffected by fluctuations in general trade, and that the reductions of the rates which have been made since the establishment of the service have had no appreciable effect on the volume of traffic.[411] The actual rates for the heavier parcels are probably more profitable than the rates for light parcels, since the principle of degression is not much recognized in the scale of rates. This view is confirmed by the fact that the post is little used for heavy parcels, the average weight of a post parcel being no more than 2·8 pounds. It is, as a matter of fact, not improbable that the parcel post service as a whole is conducted at heavy loss.[412]
Note.—As a war measure the rates were increased on 1st November 1915 by 1d. at each step in the scale, and are now as follow:—
| Parcels not exceeding 1 lb | 4d. | |||||
| Exceeding | 1 | lb., | not exceeding | 2 | lb. | 5d. |
| " | 2 | " | " | 3 | " | 6d. |
| " | 3 | " | " | 5 | " | 7d. |
| " | 5 | " | " | 7 | " | 8d. |
| " | 7 | " | " | 8 | " | 9d. |
| " | 8 | " | " | 9 | " | 10d. |
| " | 9 | " | " | 10 | " | 11d. |
| " | 10 | " | " | 11 | " | 1s. |
PARCEL POST IN THE UNITED STATES OF AMERICA
Several causes operated to prevent the early establishment in the United States of a parcel post system. The two factors of extent of territory and sparsity of population, which had from the first so greatly influenced the policy of the Government towards the Post Office, were of much greater importance in regard to a parcel post system. The weight of the individual letter is very small, and as the cost of transportation depends in most cases entirely on weight, the system of uniform rates which had been introduced in England had not been found impossible of adoption in the United States. But with parcels, cost of transportation is an appreciable item for every parcel, and in a country of vast distances there must be an appreciable variation in the actual cost for each parcel. Consequently, any uniform rate which would render the service self-supporting must be measurably above the rate which would suffice for local and short-distance traffic, and measurably below the rate which would be necessary for long-distance traffic. Private agencies would therefore cut such a rate and absorb all the short-distance traffic, while the long-distance traffic would be left to the Post Office, and would be carried at a loss. This had been found to be the case with second-class matter, where weight is an important factor, and also with the fourth-class matter. The establishment of a parcel post system, therefore, would involve a reconsideration of the fundamental principles on which the rates of postage were in general based.