It has been repeatedly asserted by persons who are familiar with carriage and handling costs, both in the postal and private service, that the postal rate of 8 cents a pound for third-class mail matter has been maintained—and is maintained—by reason of corrupt and corrupting influences (the coat-pocket “dropped roll,” the “job” bribe, the “deposit slip,” etc., etc.), which express and railway interests have liberally exerted upon federal legislators and upon executive and judicial officeholders—exerted upon “public servants.”
However, that may be, the facts today are that the postal service rate of 8 cents a pound for third-class matter is so excessive—so conspicuously above the cost of the service rendered—that the express companies find no difficulty in under-cutting it—in many cases, more than cutting it in half—and still reap millions of profit from the handling of such matter.
If a publisher has an edition of five, ten or one hundred thousand of a book to be delivered in piece, or single copies, an express company representative will see him at once—often see him before the book is from the press. If the publisher is doing a large and general business in book publishing or the book trade, the express companies have already seen him, by representative, and a carriage and handling charge agreed upon, under which the contracting or agreeing express company will handle any or all the publisher’s books, both single copies and trade shipments, at a rate much below the government’s postage rate of eight cents a pound.
If a publisher brings out a book which weighs, when wrapped or jacketed for mailing, say one pound on which the mailing charge would be 8 cents, the express company tenders a rate of 7 cents. If the edition of the book is a large one the express company will tender a rate of 6 cents or even a rate as low as 5 cents or 4 cents.
In performing such service the express company is a violator of law—a brazen outlaw. Yet the government not only permits this outlawry, but, by maintaining that excessive rate of 8 cents a pound, the government virtually invites it.
What I have above said applies with equal or even greater force to the transportation and distribution of mercantile and other catalogues, and of descriptive pamphlets, etc. However, I think sufficient has been said to cover the point raised.
The government persists in charging a third-class rate which virtually drives thousands of tons of third-class matter to the express companies. The express companies handle this vast tonnage at a cost charge to the sender or shipper, ranging from 16⅔ per cent to 50 per cent below the government’s mail rate.
The express companies roll up millions—many millions—of profits every year, while at the higher rate, the government officials (some of them), slash up the ambient with rapier verbiage about “deficits” and make extension-ladder guesses at what it “actually costs” the Postoffice Department to carry and handle a pound of third, or some other, class of mail matter.
Another raid upon the postal revenues—and the raid is by the oldest gang of looters in the game—or graft—is the railroads.