Viewed simply as a contract, or a service rendered for an equivalent, what
would be the rate to be charged? Not, surely, the amount it would cost the
individual to send his own particular letter. The saving effected by the
division and combination of labor is a public benefit, and not to be
appropriated as an exclusive right by one. In this view, the government
stands only in the relation of a party to the contract, just as a state or
a town would do, or an individual. No right or power of monopoly can enter
into the calculation. We can illustrate the question by supposing a case,
of a town some thirty miles from Boston, to which there has hitherto been
no common-carrier. The inhabitants resolve to establish an express, and
for this purpose enter into negotiations with one of their neighbors, in
which they agree to give him their business on his agreeing to establish a
reasonable tariff of prices for his service. If the number of patrons is
very small, they cannot make it an object for the man to run his wagon,
unless they will agree to pay a good price for parcels. And the more
numerous the parcels are, the lower will be the rate, within certain
limits, that is, until the man’s wagon is fairly loaded, or he has as much
business as he can reasonably attend to. This is on the supposition that
all the business is to come from one place. But if there are intermediate
or contiguous places whose patronage can be obtained to swell the amount
of business, there should be an equitable apportionment of this advantage,
a part to go to the carrier for his additional trouble and fair profits,
and a part to go towards reducing the general rate of charge. If, however,
the carrier has an interest in a place five miles beyond, which he thinks
may be built up by having an express running into it from Boston, although
the present amount of business is too small to pay the cost, and if, for
considerations of his own advantage, he resolves to run his wagon to that
place at a constant loss for the present, looking to the rise of his
property for ultimate remuneration, it would not be just for him to
insist, that the people who intend to establish an express and support it
for themselves, shall yet pay an increased or exorbitant price for their
own parcels, in order to pay him for an appendage to the enterprise, for
which they have no occasion, and as such he himself undertakes for
personal considerations of is own.
Public-domain text, read in full here on John Shaqi.
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