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
The exceptionally low rate for printed matter for the blind has been
given as a measure of philanthropy. By its means, although at some loss
to postal revenue, the effect of the disadvantage of bulk and weight in
such printed matter, which results from the affliction, is in a large
degree removed.[642]
* * * * *
The question of the rate to be applied to parcels is one of
considerable difficulty. While considerations of public utility would
probably make it undesirable for the State to derive a profit from the
business, they would hardly extend to the point of conducting a large
transportation business at a loss, and the results in England and
Germany show how important and difficult is the problem of fixing
remunerative rates. The rates for newspapers, samples, ordinary printed
matter, etc., have been accorded not solely with reference to the cost
of the service, but on grounds more or less political and social as
regards the fact of granting a privileged rate, and more or less
empirical as regards the fixing of the actual amount of the charge. For
the most part this method has answered sufficiently well, the reason
being that the cost per packet is comparatively small, and the
privileged traffic has not generally assumed large proportions relative
to the letter traffic. These empirical methods cannot, however, be
applied in the case of parcels. The expense of the service performed by
the Post Office is not, as with a letter, actually small, and confined
to that of collection at one end and delivery at the other end of the
journey, with a negligible cost (per packet) for transmission between
the points of origin and destination. Cost of transportation itself
becomes an appreciable item in respect of every parcel. For this
transportation the Post Office is in the main dependent on the railways,
and in the determination of its cost the principles determining ordinary
railway rates must necessarily apply.
Those principles are complex and to a large degree indeterminate. On the
problem of railway and other transport rates many volumes have been
written, and many more will yet be written before a solution is arrived
at.[643] Railways, like the Post Office, are unable to allocate the
actual working costs with any degree of precision between the various
kinds of service they perform. Like the Post Office, they have one
general set of expenses, although they have diverse sources of
revenue.[644] Even if the cost of service could in each case be
definitely ascertained, its adoption as the sole basis of the rates
would prove unsatisfactory.[645] For the most part the principles on
which the rates are actually fixed resolve themselves into a
consideration of "what the traffic will bear," that is to say, the test
by actual observation and computation, strengthened, if need be, by
actual experiment, of the rates which will yield the maximum advantage
to the railway company.
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