The creation, in 1863, of a third class of miscellaneous mail matter[413] was virtually the establishment of a limited parcel post. The rate, for third-class matter, 2 cents for each 4 ounces or fraction thereof, was increased in 1879 to
1 cent an ounce. These rates were comparatively high; and as the limit of weight was 4 pounds, the traffic naturally never assumed large proportions. With the establishment in 1880 of an international parcel post in which the United States participated, although having no real internal parcel post, it was inevitable that the question of establishing a system equal in scope to those of other countries should arise. For forty years there was a demand, becoming more general and insistent, for the establishment of such a general parcel post.
Active official support was first given to the proposals for a parcel post in 1890 and 1891 by Postmaster-General Wanamaker, who explained that although the demand for such a system was widespread, the greatest pressure came from "interior places," which were, in fact, really most in need of it, because they had no facilities for obtaining small packages of merchandise from the towns.[414] Opposition to any sort of parcel post came then, as always, from the express companies, who, although not able or not desirous of affording a service to all parts, were much concerned at the prospect of losing traffic. Mr. Wanamaker proposed to propitiate them by transferring to them a considerable amount of traffic deemed by him to belong properly to the express companies, viz., traffic carried by the Post Office for the other Executive departments free of charge, under "penalty frank,"[415] and comprising many packages of considerable weight and bulk. Mr. Wanamaker also desired to put a stop to the transmission, as second-class matter, of periodicals which were really ordinary books, by transferring such traffic to the express companies. Although in favour of a full parcel post system, and recognizing that there was a strong desire in the country for the boon, Mr. Wanamaker was not prepared to advocate its immediate establishment. He thought other reforms should take precedence; such as free-delivery extension, postal telegraph, postal telephone, and 1 cent postage on land and sea, all of which, except the extension of free delivery, are still waiting adoption.
A number of postmasters criticized the suggestions of the Postmaster-General in 1890 regarding parcel post, but most of
them had, by 1891, expressed themselves in favour of a full parcel post system, and according to Mr. Wanamaker the remainder were "probably interested express agents." The situation was in some respects unsatisfactory. It was a common practice for business firms to contract with express companies to carry large quantities of small packages at a rate per package just below the rate of postage. The express companies took such of the packages as they thought fit to handle, and left the Post Office to carry the remainder, all long-distance traffic, and unprofitable both to the express companies and to the Post Office. But the companies were secured by their profit in the short distances. Naturally, therefore, they offered strenuous opposition to the establishment of a parcel post.[416]
With the establishment of rural mail delivery there arose a new demand for a parcel post. Persons living on the rural routes desired to take advantage of the new service for the delivery of small parcels of merchandise of all kinds, food-stuffs, tobacco, dry goods, etc., which they would order from the local store-keeper by post or by telephone. The rate then payable on such parcels was the general rate for fourth-class matter, viz. 16 cents a pound, which for parcels of goods of small intrinsic value was prohibitive. In response to this demand, the first definite proposals for a parcel post[417] were put forward by the department in 1904, when the establishment of a special rate of 3 cents a pound was suggested, with a maximum limit of weight of 5 pounds, for parcels from any distributing office for rural routes to any patron on the routes from that office. Such a rate "would be a great convenience to the patrons and become a source of revenue to the department." The rate of 3 cents was estimated to be ample remuneration in such cases, because there would be no expense for railway transportation, and as it would be merely employing a system already established, there would be no additional
expense for delivery: the rural carriers could easily perform the service.[418] They had at first been allowed to carry express packages, but the privilege had been subsequently withdrawn. They were, however, still authorized by law to carry merchandise for hire, on behalf of patrons of the rural routes, and to carry passengers. In general, their work for the Post Office only employed them to the extent of 30 percent, of their full capacity, and a large unutilized margin therefore existed.
The proposal was again advanced in following years. Postmaster-General Meyer interested himself in the question, and advocated in speeches in various parts of the country the immediate adoption of a parcel post system. In 1907 he suggested the introduction of a local parcel post service experimentally. He made at this time numerous treaties with foreign countries for parcel post services between those countries and the United States, at a general rate of 12 cents a pound. The result was that parcels could be posted at any town in the United States for transmission to places in, say, Europe or Australia, at the rate of 12 cents a pound, but could only be posted for transmission to another town in the United States on payment of a rate of 16 cents a pound. When this situation was realized, there was naturally a good deal of irritation, and the existence of such an anomaly was made an argument for a domestic service.[419]
The preferential rate obtained by parcels going abroad continued to be a strong argument in favour of a general parcel post, and members of Congress constantly referred to it in the discussions on the subject.
There was, moreover, and still is, an important body of opinion which goes much further than the advocacy of a parcel post system. In that view, the express companies are the enemy or, at any rate, the oppressive character of the express rates is viewed so seriously that no solution of the present difficulties of the country, and especially of the "high cost of living" problem, is thought possible short of a complete