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 advantage to the railway conducted under private management may be
defined to be the excess of receipts from the traffic over the
out-of-pocket expenses actually incurred in handling the traffic. To
obtain this maximum it has been found necessary to vary the charge
according to the nature of the goods. Elaborate, detailed
classifications of goods have been arranged with distinct scales of
rates for each class, devised on the basis of charging each kind of
goods with the rate likely to yield to the railway the maximum of
advantage as defined above.[646] Although somewhat crude and a little
empirical, certainly largely arbitrary, this method has been almost
universally adopted for the determination of railway charges.[647]
A characteristic feature of such charges is that account is invariably
taken of the distance over which the goods are transported. In contrast
with this, the principle of uniformity of rate irrespective of distance
has been universally adopted in regard to all postal packets other than
parcels, and to some extent for parcels. The application of the
principle to parcels rests, however, on other grounds than its
application to letters. Sir Rowland Hill himself never contemplated that
the principle was necessarily applicable to all matter which might be
sent by post.[648] The circumstances under which he made his discovery,
and the facts on which he relied, make it plain that, in the absence of
other overpowering considerations, the grounds advanced in the case of
light letters will not justify uniformity of rate irrespective of
distance for packets of considerable weight, which necessarily involve
appreciable cost for transportation. From the financial point of view,
the uniform rate is, moreover, inapplicable to any class of traffic not
secured to the Post Office by monopoly, since private undertakings will
always step in and take away the profitable sections.
For heavy parcels a uniform rate cannot be justified. There are,
however, certain considerations not purely economic which may be held to
justify a uniform rate for small parcels, especially if it be held that
the State may conduct such a business for the advantage of the public,
and abandon to some extent ordinary commercial balancing of cost and
revenue.
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