Postal Riders and Raiders

by W. H. Gantz

If the department succeeded in saving $2,000,000, after deducting the exempted publications and all the new expense involved for a great force of clerks, this would amount to less than 1 per cent of its revenues for 1910. It would amount to less than one-eighth of the postoffice deficit in 1909. It would amount to less than one-fourteenth of the loss on rural free delivery alone in that year.

But even this gain would be only theoretical; for, as shown before (Exhibit A), many of the comparatively small groups of periodicals left to be published, after the favored ones were exempted, would find that it required more than all their income to pay their share of the new rate.

You can not take away from a person more than 100 per cent of all that he has—even from a publisher. It is not there.

These figures of increased revenue to the government are based on the department’s own statements. They are mathematically accurate.

They must not be interpreted, however, as measuring the extent of publishers’ losses. They take no account of the increases, certain to follow the enactment of this legislation, in the rates of other lines of distribution from which the government derives no revenue. They take no account of the loss in circulation volume, that is certain to follow an attempt to raise the price of magazines to the public. They take no account of the loss in advertising revenue that is certain to follow a loss in circulation.

Neither are these figures a complete record of the effect on the government revenue. They take no account of the certain destruction of publishing properties, and the consequent destruction of postal revenue on the profitable first-class matter their advertising once created.

“Postscript: Since this calculation was made and a flood of telegrams from agricultural publications has come to Congress, the afternoon newspapers of Tuesday, February 14, reported that at a cabinet meeting on that day it was decided by the Administration and announced by Postmaster General Hitchcock that agricultural periodicals will be exempted from the increased postal rate. The owners and other representatives of agricultural periodicals gathered in Washington to oppose the amendment to the postoffice appropriation bill at once left Washington for their homes. It was reported at the same time that the religious periodicals had also been assured that a paternal Administration would take care of them.

“This leaves the situation in such shape that the Administration has at last got down to the comparatively small group of popular magazines.

“These magazines proper, the Postmaster General says, constitute 20.23 per cent of second-class matter, or only 162,000,000 pounds, out of the 800,000,000 pounds of second-class mail.

“As the Postmaster General says, as explained above, that the proposed increase would only mean 1 cent a pound more on the whole periodical, he could only figure out a theoretical gross gain of $1,620,000. But his figures are, as usual, all wrong.