The Development of Rates of Postage: An Historical and Analytical StudySmith, A. D. (Alfred Daniel)
History
The Development of Rates of Postage: An Historical and Analytical Study
Smith, A. D. (Alfred Daniel)
Postal rates
In the further negotiations serious difficulty was encountered on two
points only: (1) the proportion of postage to be paid to the companies,
and (2) the length of time for which the agreement should be made. The
earlier agreement had been for an equal division between the Post Office
and the railway companies of the postage paid on all parcels. It was now
decided that payment could only be made in respect of parcels actually
conveyed by railway. The companies thereupon asked a higher proportion.
They anticipated that parcel post traffic would be largely long-distance
traffic, involving in many cases transfers on the journey; and although
they expected to retain a good deal of the short-distance traffic, they
could only achieve this by reducing their rates generally, especially
the rates for small parcels. After some higgling, they agreed under
protest to accept 55 per cent. of the postage on all such parcels as
should be conveyed by railway. They also agreed to the limitation of the
duration of the bargain, and the term was fixed at twenty-one years.
The agreement was embodied in the Post Office (Parcels) Act of
1882.[409] The companies parties to the arrangement undertook the
service of conveying the post parcels from the vehicles of the
Postmaster-General at the despatching railway station to the vehicles of
the Postmaster-General at the station of destination--that is to say,
they undertook all handling of parcel mails on railway stations and
transfer to and from trains and from train to train where necessary--in
consideration of payment of 55 per cent. of the postage paid 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.
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