Chapter XII: Introduction (9)

The post was not, however, abolished, but was taken over and managed by the Postmasters-General. Although the service had been decided to fall within their monopoly, the rates charged rested on no legal authority. No statute authorized the conveyance anywhere of letters at the rate of 1d. No authority existed for any rate below the minimum General Post rate of 2d., under the Act of 1660, a state of affairs which continued until the passing of the Act of 1711. A penny rate of postage was then fixed for all letters "passing or repassing by the carriage called the Penny Post, established and settled within the cities of London and Westminster, and borough of Southwark, and parts adjacent, and to be received and delivered within 10 English miles distant from the General Post Office in London."[535] At first the service had included only the cities of London and Westminster, the borough of Southwark, and the immediate suburbs; but the residents in the neighbouring towns and villages, recognizing the advantage of the system, soon asked that it might be extended to include their respective localities, voluntarily agreeing to pay an additional penny on delivery, on each letter. This further charge was at first appropriated by the messengers as their remuneration; but as the amount received by them in this way was found to exceed what might fairly be regarded as reasonable wages, the second penny was in 1687 made part of the ordinary revenue of the Post Office. There was, however, no legal authority for the collection of this additional charge, which remained a voluntary payment until 1730.[536]

The limit of weight for packets sent by the penny post was also extended, parcels of considerable size and weight being accepted. The rate of postage, however, remained uniform at a penny. One of the charges against Dockwra in later years, when he was dismissed from the office of Comptroller of the Penny Post, to which he had been appointed under William III, was that he forbade the taking in of any but very small band-boxes, and all parcels over 1 pound in weight.[537]

The penny post was found to be a great convenience to Londoners and dwellers in the vicinity.[538] It facilitated both local intercourse and, through its connection with the General Post, general intercourse with all parts of the country. It was also advantageous in a way which was not satisfactory to the Postmaster-General. For some years before its establishment there had been much difficulty from the evasion of postage resulting from the illicit transmission of letters. Carriers, especially, made a business of the conveyance of letters. The difficulty had been so serious that in the reigns both of Charles II and of James II special officers had been appointed whose duty it was to search any person or vehicle suspected of carrying clandestine mails. The establishment of the penny post led to a very large development of this traffic. Previously, when the carriers arrived with the letters, there was no means at their disposal for effecting distribution and delivery within London, other than by themselves delivering the letters individually, or by employing special messengers, or, in the last resort, by employing the General Post, to avoid whose charge was the whole object of entrusting letters to the carriers. The penny post removed this difficulty, and the public were not slow to avail themselves of the opportunity afforded.[539]

The penny post did not, however, mark the limit of possibility in the way of cheap postal facilities. In 1708 Charles Povey established a halfpenny post in London, and found this low rate profitable. His undertaking, like that of Dockwra, proved to be an infringement of the monopoly of the Postmasters-General, and was suppressed within a few months, although Povey was very reluctant to discontinue his service.[540]

The London penny post was for a long period the only local post in the kingdom. Its advantages were, however, generally recognized, and the Post Office Act of 1765[541] gave to the Postmasters-General power to establish penny posts in any town where that course seemed to them expedient. Under this authority numerous penny posts were established in all parts of the country. As many as 202 such penny posts were established between 1830 and 1837. They were established only when it could be reasonably anticipated that the yield of the penny postage would cover the expenses of the service; but when once established they were not usually discontinued, even if the revenue fell below the expenses.[542] Like the London penny post, these local services included the area surrounding the town in each case. For transmission within a penny post area the rate of postage was 1d.; for transmission to another such area the general rate was charged in addition; and another penny was charged in respect of the second penny post.

The conveyance of parcels ceased in 1765. The Act of that year[543] forbade the transmission by the penny post of any packet over 4 ounces in weight unless it had passed, or was intended afterwards to pass, by the General Post. During all this period, however, the people of London enjoyed an efficient postal service which in point of lowness of charges was in advance of anything they have enjoyed since, unless the privileges of the postcard and the halfpenny post, that is, of a rate half the minimum (and only) rate of the penny post, can be set against the cheap transmission of considerable packages by the old service.

A further Act of 1794[544] empowered the Postmasters-General at their discretion to extend the limits of the post beyond the 10-mile circle prescribed by the Act of 1711. No additional postage was imposed on letters delivered beyond the 10-mile circle. Under the Act of 1730 the charge would be 2d. An additional rate of 1d. was, however, imposed on all letters posted within the extended limits and beyond the 10-mile circle; and also on all letters posted without the original limits of the penny post and delivered within those limits, i.e. the cities of London and Westminster, and the borough of Southwark, with their suburbs. By this Act prepayment of postage, hitherto compulsory in the penny post, was made optional.

An Act of 1801[545] raised to 2d. the rate for letters passing by the penny post, whether or not they were to pass by the General Post, within the original limits of the penny post. For letters passing by the penny post, posted or delivered outside the original limits, no additional rate was prescribed. The charge was already 2d.; and the rate of postage on letters passing by the London local post therefore now became uniformly 2d. Henceforward the service was known as the "twopenny post."

The Act of 1801 contained an important clause (clause 5) of general application, providing that the Postmasters-General might at discretion undertake the conveyance and delivery of letters "directed to persons abiding in towns, villages, and places (not being post-towns)," for such sums as might be agreed upon between the Postmasters-General and the inhabitants. Under this provision it was found possible to extend the service to a considerable number of places.[546]

An Act of 1805[547] imposed an additional charge of 1d., making 3d. in all, on letters sent by the twopenny post and not passing by the General Post, directed to or sent from places beyond the limits of the General Post delivery; and on every letter passing by the General Post and directed to places beyond the limits of the General Post delivery, and delivered by the twopenny post, an additional charge of 2d.[548] There were now, in reality, two local posts in the London area--the twopenny post, for letters transmitted between places within the limits of the delivery of the General Post; and the threepenny post, for letters directed to or sent from places within the limits of the local service, but beyond the limits of the General Post delivery. In 1831 the limits of delivery of the twopenny post were extended to include all places within a radius of 3 miles of the General Post Office; and in 1833 the limits of the threepenny post were extended to include all places beyond the 3-mile limit, and not exceeding 12 miles from the General Post Office.[549] No further modifications of importance were made before the establishment of uniform penny postage.

The introduction of a uniform rate of postage for the whole country of 1d., only half the lowest rate which had been charged in the London local post, obviously made unnecessary the continuance of that post, and also of the penny posts scattered up and down the country; or rather extended to the whole country the benefit of rates based on items of local cost only, since the system of uniform postage irrespective of distance rests on the recognition of the preponderating cost of the local or terminal services, and the relatively insignificant cost per letter of the service--conveyance from place to place--which depends on the distance of transmission.

Financially the London penny and twopenny posts were always successful. Under the penny rate the profits had approached half the gross receipts--in 1800 they were 43 per cent.--and under the twopenny rate at once rose to more than 60 per cent., in 1825 reaching 67 per cent. The net revenue, which in 1801 under the penny rate was [L]16,286, had in 1837 under the twopenny rate risen to [L]73,334.[550]

CANADA

Special local rates have from quite early dates been in operation in America. If in England the lowest rate fixed for General Post letters had been found too high to afford reasonable accommodation for the public in London and other cities, it may well be imagined that the lowest rate in Canada, gauged as it was to the needs of a service which should cover a country of vast area and ill-provided with roads, would be found altogether high for local letters. Moreover, in most places no sort of delivery service existed. Local letters could only be placed in the post office to be called for by the persons to whom they were addressed. In Canada the actual cost of the conveyance of the mail was consequently disproportionately high compared with other expenses of the service, and the justice of a lower rate for such letters as obtained no benefit from that expenditure naturally suggested itself. The lowest rate fixed by the Act of 1765 for transmission within Canada of a single letter was 4d., and, rather than charge such a rate on local letters, the deputies in Nova Scotia allowed such letters to be deposited in the post office free.

At Confederation a special rate for local letters of 1 cent per 1/2 ounce was established. At this time there was still no authorized house-to-house delivery of letters in any part of Canada, and local letters were actually what they are always termed, viz. "drop" letters. They were letters dropped into the post office letter-box and handed out at the office to the addressee on application. When in 1875 delivery by letter-carrier was introduced in certain towns, the drop-letter rate was not disturbed. It was thought, however, that a postage charge of 1 cent was not sufficient to cover the cost of the service of delivery at the place of address, performed by an expensive establishment of letter-carriers; and in 1889, on that ground, though much against the wishes of the mercantile community, the rate was raised to 2 cents an ounce in cities and towns where the system of delivery by letter-carrier was established, the existing rate of 1 cent per 1/2 ounce being continued in other cities and towns.

The ordinary letter rate was still 3 cents. This change therefore left all local letters with a lower rate than ordinary letters.[551]

The 2-cent rate proved to be too high. Much dissatisfaction resulted, and evasions were constant. In defiance of the law, which conferred on the Postmaster-General the monopoly of the carriage of letters, merchants made arrangements for the transmission and delivery by their private messengers of their letters for local delivery. The evil assumed such proportions that the suppression of the private carriage of local letters was deemed out of question, and the Government concluded that the only satisfactory solution of the difficulty was the re-introduction of the general 1 cent drop-letter rate.[552] So great was the number of drop letters sent otherwise than through the Post Office that no actual loss of revenue was anticipated from a reduction of the rate, which should bring back those letters to the post. This anticipation was more than realized. In a very short time after the passing of the Act of 1898 legalizing the reduction to 1 cent, the gross revenue from local letters surpassed that obtained under the 2-cent rate.

FRANCE

In 1658 a local service (_la petite poste_) was established in Paris by M. Velayer. He obtained from the King the exclusive privilege of erecting letter-boxes, which were opened three times daily, in various parts of the city,[553] and set up an office in the royal palace at which tickets bearing the words "Port-pay['e] le ... du ... de l'an 1653" might be purchased at the price of a sou. No money was paid to the letter-carrier by persons posting or receiving letters. A label was affixed to the letter, which was then delivered without further charge.[554] The service was not a success and was discontinued.

In 1759 a local postal service was re-established in Paris by M. de Chamousset. The new service was avowedly in imitation of the London penny post. The rate was 2 sous for a letter not exceeding 1 ounce in weight, delivered in Paris, and 3 sous if delivered in surrounding villages not served by the general post. This venture proved more successful than the earlier service of M. Velayer. At the outset it employed about two hundred men, and the profits for the first year were 50,000 livres. But its founder, M. de Chamousset, met with no better fate than Dockwra, the founder of its prototype. Such large profits could not escape the notice of the Government, and the service was taken over by the King, Chamousset being given a pension of 20,000 livres as its inventor.[555] The service was continued, and its success led to the establishment of similar local services in other towns--Bordeaux, Lille, Lyons, Nancy, Marseilles, Montpellier, Nantes, Rouen, Strasburg, etc.[556]

The ordinary letter rate in France remained at a moderately high level until a comparatively late date, and a special rate for local letters continued until 1878. In that year the ordinary rate for letters was reduced to 15 centimes, the level of the existing local rate, and since that time local letters have enjoyed no special privilege in France.

GERMANY

In Germany the delivery of local letters in towns was for a long period conducted as a private undertaking of the postmaster or letter-carrier. Between 1842 and 1852 it was made a branch of the general postal service, and the delivery charge (_Ortsbestellgeld_), which, in general, had been retained by the letter-carrier as wages, was, in the latter year, made payable to the general revenue. An arrangement was also made for the acceptance and delivery of local letters, at the rate of 1 sgr.[557] If the letters were called for at the post office (and the service of delivery at the house therefore not performed) the rate was reduced to 1/2 sgr.; and when one person posted as many as one hundred local letters at the same time, the rate for each letter was no more than 4-1/2 pf. (reduced in 1860 to 4 pf.), including delivery at residence. When as many as fifty were posted at one time, the rate was reduced to 1/2 sgr. By a regulation of the 21st December 1860 the limit of weight for the single letter was, however, raised to 1/2 pound, and a rate of 2 sgr. imposed on heavier letters, but the rates were not otherwise materially changed. The law of 16th September 1862 abolished the delivery fee on ordinary letters. In 1865[558] the rate for local packets of printed matter was reduced to 4 pf.

When, at the foundation of the North German Union in 1867, the postal rates were reorganized, the question of the local rates proved to be one of some little difficulty, since the existing rates differed very considerably in the different parts of the Union. The Prussian rates were high as compared with the rates in some other States; and any rate which could be applied generally was likely to represent a considerable reduction of the Prussian rates, but a considerable increase of the rates in other States. The reorganization of the local rates was consequently delayed. After much discussion a new local rate for places in the former Prussian postal territory (excepting Berlin and Hamburg) was established:[559] for ordinary letters 1/2 sgr., for printed matter and samples 1/3 sgr. In Hanover the local letter rate was made 1/3 sgr.; in Brunswick 1/4 sgr.; and in Cassel, Erfurt, Frankfort-on-Main, and Hamburg similar rates were established.[560]

From the 1st January 1875 a uniform rate of 5 pf. for local letters was introduced throughout the Imperial postal territory. The rate was irrespective of weight, but there was a maximum limit of 250 grammes. All other local packets (postcards, printed matter, and samples) were subject to the ordinary rates of postage. No special local rate was fixed for parcels: the lowest zone rate was payable, and was, of course, in effect a local rate. The general application of the new letter rate would, in certain cases, have resulted in increased rates, and in those cases (Constance, Darmstadt, and Karlsruhe) a rate of 3 pf.--the equivalent of the previously existing rate--was established. In Berlin, in view of the specially expensive arrangements for the delivery of letters, the rate of 10 pf. for local letters remained in force.[561]

For the delivery of local parcels no charge had previously been made beyond the rate of local postage, although in respect of all packets from outside a delivery charge was collected. From the 1st January 1875, however, local parcels were made liable to a delivery charge.[562] In general, the local rates introduced on the 1st January 1875 remained for more than a quarter of a century unchanged, but in course of time difficulties in their administration developed. The order of the 18th December 1874 had prescribed a special local rate for letters only; for all other kinds of postal traffic the ordinary rates remained applicable. Consequently, a local postcard was charged the same postage as a letter weighing 250 grammes; similarly the rates for printed matter or samples for local delivery were high when compared with the rate for local letters. Such rates were, moreover, anomalous when compared with the rates for long-distance traffic, which, for postcards, printed matter, and samples, were much less than for letters. In fact, for local delivery printed matter and samples had only to be placed in sealed covers in order to pass at the rate of 5 pf.

In many of the larger towns the delivery of local letters was undertaken by private enterprise at rates much lower than those of the Imperial Post Office. The undertakings secured a very large proportion of the local traffic, and found even these low rates very profitable. Moreover, the large increase in the number of post offices, and the withdrawal of numerous places from the areas assigned to certain offices, had led, in many cases, to great difficulties in deciding whether letters were subject to the general or the local rate of postage.[563]

The regulations governing local traffic were accordingly revised under the law of the 20th December 1899. Local rates were considerably reduced in amount, and were made applicable to all traffic passing between a town area and the neighbouring area (_Nachbarorts-Verkehr_),[564] by which the advantage of these rates was greatly extended. In order to enable the Post Office adequately to fulfil its public functions, as the phrase went, it was thought necessary, in view of the development of the private undertakings, to confer upon it the exclusive right to deal with local traffic. At first the proposal was to extend the monopoly only to closed letters, but the Reichstag widened the prohibition, and forbade private undertakings to conduct arrangements for the transmission of letters, sealed or unsealed, postcards, printed matter, or samples addressed to particular persons.[565]

The traffic left open to private enterprise, viz. the delivery of unaddressed open letters, parcels, newspapers, and magazines, was regarded by most of the proprietors as insufficient to warrant the continuance of their undertakings, and on the 1st April 1900 almost all the private establishments of this kind were discontinued. The proprietors were, however, compensated by the State for the loss of their profits.[566] The first undertaking of this kind had been established in Berlin in the 'seventies, under the title _Brief- und Druckschriften-Expedition_. Its success led to the establishment in Berlin and various other places of similar undertakings, some of which were profitable, but most of which were unsuccessful. The cheaper rates, however, attracted a considerable volume of traffic, and at the time of their suppression some seventy-seven such undertakings were in existence. Most of them were not of long standing, only fourteen of the seventy-seven having been founded in the 'eighties, forty having been founded in the years 1895-6-7, in a period of speculation resulting from the high dividends paid by the Berliner Packetfahrt-Aktiengesellschaft. The size of the undertakings varied largely. In some cases the whole business was conducted by the members of a family; in others as many as a hundred men were employed; and in the case of the Berliner Packetfahrt-Aktiengesellschaft the letter traffic alone employed a thousand men. The amount of traffic dealt with was considerable, and large additions to the postal staff were found necessary.[567] Some of the employees of the private establishments were taken over by the Imperial Postal Administration, and a sum of 1-1/2 million marks was paid as compensation to employees who were not taken over.

Although special provision had been made in the statute with regard to the amount of compensation to be paid to the proprietors, the determination of the actual amount was a matter of some difficulty, owing largely to the unsatisfactory and unreliable manner in which the accounts of many of the undertakings had been kept.[568] In several cases also the owners asked exorbitant amounts.

After much negotiation the sum to be paid was finally decided. It amounted to some six million marks. In order to get rid of the private establishments for the handling of private letters, etc., the Imperial Administration therefore paid in all (i.e. including the compensation to the employees of the private undertakings) a sum of about 7-1/2 million marks.[569]

The new rates were as follow[570]:--

(_a_) Letters--
Not exceeding 250 grammes in weight 5 pf.
(_b_) Postcards 2 pf.
(_c_) Printed matter--
Not exceeding 50 grammes 2 pf.
50 grammes to 100 " 3 pf.
100 " 250 " 5 pf.
250 " 500 " 10 pf.
500 " 1,000 " 15 pf.
(_d_) Commercial papers--
Not exceeding 250 grammes 5 pf.
250 grammes to 500 " 10 pf.
500 " 1,000 " 15 pf.
(_e_) Samples--
Not exceeding 250 grammes 5 pf.
250 grammes to 350 " 10 pf.
(_f_) Mixed packages of (_c_), (_d_), and (_e_)--
Not exceeding 250 grammes 5 pf.
250 grammes to 500 " 10 pf.
500 " 1,000 " 15 pf.

These rates applied throughout the Imperial postal territory, including Berlin, which thus for the first time obtained the advantage of local rates; and in 1902 they were extended to all places which had a post office for only part of the year, such as small watering-places, summer resorts, and beauty spots.[571]

The result of the reduced rates was not satisfactory financially. It was not, of course, possible to calculate with any exactness the actual cost of the service performed by the Post Office in respect of local traffic; but such estimates as the administration were able to make tended to show that the cost exceeded the revenue, and that the local business was therefore conducted at some loss.[572] Consequently, when in 1906 Imperial requirements made it necessary to obtain an increased revenue from the Post Office, the administration placed the burden on the local traffic, although not without some opposition in the Reichstag. On the 1st July 1906 the rates for local traffic, with the exception of the rate for local letters, were made the same as the general rates for transmission throughout the Imperial postal territory.

The rate for letters remained as formerly, 5 pf. for letters not exceeding 250 grammes in weight.[573]

* * * * *

VI

INTERNATIONAL RATES

(I) INTERNATIONAL LETTER POST

The adoption in numerous countries of the principle of uniformity of rate for inland postal traffic, and the enormous simplification of the system of rates and of their practical administration which it achieved, led naturally to an endeavour to effect a like simplification of the rates for postal traffic exchanged between the various countries. The rates in operation varied enormously, not only as between different countries, but frequently in respect of letters passing between the same two countries.[574]

The arrangements for the exchange of such traffic between different countries had been conducted under conventions and agreements entered into by the countries immediately concerned, and the rates to be charged were prescribed by these conventions or agreements. Foreign rates were often built up by the addition of a rate for the transmission abroad to the ordinary rate chargeable for the inland transmission. The fact that numerous rates were chargeable for one and the same letter in respect of its transmission within the same country thus naturally made the rates charged for transmission abroad likewise numerous. In many cases there was an additional variation in the rate of postage between two countries according as one or other route was followed. And not only were the international rates of postage high and complicated. The methods employed for accounting between the countries respectively concerned in regard to the proceeds of postage on international letters were equally complicated and burdensome.

In 1850 the necessity for some simplification of the arrangements for the interchange of correspondence led to the formation of the Austro-German Postal Union by Prussia and Austria. The chief feature of the arrangement was the adoption of a common rate of postage for the whole territory of the Union, moderate in amount, and based on a small number of zones of distances. The advantages resulting from the Union were soon apparent. Other German States joined, and within a short time the question of extending it to foreign countries was mooted. At a Conference held in Berlin in 1851, a general European Postal Union was adumbrated.

The first definite suggestion for the general re-organization of international postal traffic on a common basis came, however, from America. In 1863, Mr. Blair, Postmaster-General of the United States, in a note to the postal administrations of the world, suggested the assembling of a Congress representative of all nations for the discussion of the subject. The proposal was favourably received by fifteen administrations,[575] representing nine-tenths of the commerce and nineteen-twentieths of the correspondence of the world. The representatives of these administrations (with the exception of Ecuador) met at Paris in May 1863.

The Conference was not empowered to enter into any definite arrangement for the amelioration of the system of international postal traffic. Its function was simply to discuss and proclaim general principles applicable to the conduct of the traffic, with a view to their ultimate adoption by the nations of the world. The discussions centred on the three fundamental questions of uniformity of weights, uniformity of rate, and simplification of accounting.[576] Thirty-one articles of agreement were adopted.[577] These articles recommended, _inter alia_, the adoption for ordinary letters of a unit of weight and a progression of weight of 15 grammes; and for corrected proofs, samples, and documents not in the nature of a letter, a unit and progression of 40 grammes. The Conference was convinced that transit charges were often an invincible obstacle to the establishment of a really advantageous international system, and recommended that the transit rate for each country should never exceed half the postage reckoned at the inland rate of the country traversed, and that for small countries it should be even less. For sea transit the Conference recommended that in no case should the charge against an administration in respect of such transport be greater than the actual charge made on the country of destination by the shipping agency by whom the mails were conveyed.

Although its conclusions were without the sanction of authority, the Conference was nevertheless of great assistance to the development of an international system. It brought into prominence the obstacles in the way of international postal intercourse, and the difficulties which must be removed before a common system could be founded. And it formulated general principles which might with advantage be observed in the making of fresh agreements between individual countries, and might serve as a basis for a common agreement. Its conclusions were, as a matter of fact, so used in numerous instances.

Towards the end of 1868 Dr. von Stephan, of the postal administration of the North German Union, published in the official journal of the Union a definite project for a postal union between all civilized nations, and proposed a discussion of the project at a universal Congress. The proposal was taken up by the administration of the North German Union. The diplomatic arrangements for calling a Conference were, however, interrupted by the Franco-German War of 1870. After the conclusion of peace, the proposal was again taken up, and the Swiss Government undertook the task of inviting the administrations of the chief countries to send representatives to a Congress at Berne. The invitation was readily accepted, and the Congress met in 1874.

The proposal submitted to the Conference was that the Union should cover the following categories of postal traffic:--

(1) Letters.
(2) Postcards.
(3) Newspapers and other printed matter.
(4) Samples.
(5) Commercial papers.

Each contracting State should fix its own international rates, under the limitation that for letters the rate should not exceed 4d., or 40 centimes; and for newspapers or other printed matter, for samples or commercial papers, should not be less than 1d., or 10 centimes. There should be no division of postage, but each State should retain the postage which it collected. Each State should give liberty of transit, and transit charges should be abolished, except in the case of extraordinary charges or services.[578]

The proposals which gave rise to most discussion were those for the establishment of a uniform rate, and for the gratuitous transit of mails across the territory of intermediate countries. The vast number of rates actually existing was made an argument in favour of the uniform rate; and a low rate was recommended on the ground that it was well known that, although low rates imposed a temporary monetary loss, they were in a broad view profitable to the finances of the State.[579] It was urged that as all rates were already tending to equality, the Congress, by establishing uniformity, would only be advancing by a few years an existing tendency. The principle of uniformity of rate and of weight was adopted unanimously, the rate of charge being fixed at 25 centimes, and the unit of weight, and progression in the scale of weight, at 15 grammes. The rate of charge, 25 centimes (with the reservations[580]), was arrived at by consideration of the case of the most unfavourably situated country as regards conditions of transit, viz. a case in which there would be five intermediate countries, and consequently five transit rates. As most, if not all, of the countries represented had already adopted inland penny postage, this rate, assuming 10 centimes (or 1d.) to be a reasonable charge for the inland service at both ends, left 15 centimes (1-1/2d.) to cover the cost of transmission from country of origin to country of destination; and there was in addition the optional margin up to 32 centimes which might be taken advantage of, if a charge of 25 centimes was thought by any administration to be too little. A proviso was added that for all sea transits exceeding 300 nautical miles a surtax not exceeding half the general rate of the Union might be added to the postage charge, whether for letters, samples, printed matter, or commercial papers.

A reduced rate for commercial papers, samples of merchandise, newspapers, books, pamphlets, catalogues, etc., was adopted without discussion, the delegates no doubt basing their action on the existence of similar reduced rates in many countries. The minimum rate for such packets was fixed at 7 centimes, and the unit of weight and the progression of weight at 50 grammes. The maximum weight for samples was fixed at 250 grammes, and that for other articles at 1,000 grammes. A proposal to increase the weight for samples was opposed by Dr. von Stephan on the ground that it would cause practical inconvenience in the post offices.

M. Radoikovitch, the Serbian delegate, proposed a modification of the progression of rate. He suggested that the packets should be divided into two categories--those not exceeding 300 grammes, and those over 300 grammes in weight. For the lighter packets he proposed a progression of 50 grammes, and for the heavier packets a greater progression. For the sake of simplicity it was considered preferable to retain the single progression, and the proposal, which met with no support, was withdrawn.[581] All packets (samples, etc.) sent at the lower rate must be sent under band or in open envelopes, or made up in such a way as to admit of their being easily examined.[582]

The proposal for gratuity of transit was advanced with a view to simplification of the administration of the Union. Its adoption would have made all countries independent, so far as expenses and accounting were concerned, of intermediate countries, and would have assisted the adoption of a low rate of postage. It was, however, resolutely opposed by those countries which, owing to their geographical situation and the means of communication which they controlled, were called upon to serve as intermediaries to a special degree. The case of Belgium was of particular importance. It naturally resulted from her situation that she was called upon to perform for other countries a transit business much greater than that performed by other countries for Belgium. The net revenue accruing to the Belgian administration from this source was very considerable.[583] France and Italy were in a somewhat similar position, mainly owing to the transmission of the mails between England and India by the overland route. France rejected entirely the principle of gratuitous transit.

It was feared that if an administration derived no benefit from transit traffic it might be led to discourage it, to the detriment of general facilities for the transmission of mails, and the Congress arrived at the conclusion that some method of specially remunerating all countries for transit services ought to be devised. A simple reservation as regards special expenses caused by transit traffic was objected to on the ground that in most cases the international traffic was forwarded by the ordinary means and no special expense was caused--the real causes of Post Office expenses being the services of despatch and delivery.[584] Indeed, it was contended on this ground that the transit of international mails could not be regarded as a service rendered.

Agreement was reached on most of the points raised by the proposals, and a Convention constituting an International Postal Union, under the title "L'Union g['e]n['e]rale des Postes,"[585] was signed on the 9th October 1874, to become operative on the 1st July 1875. The chief provisions of the Convention in regard to the rates of postage were as follows:--

(1) The rate of postage for the Union was fixed--

(_a_) At 25 centimes for single letters, with liberty for each
country, as might be necessary on account of its monetary system or
for other reasons, to fix a higher or lower rate, provided that
such rate was not greater than 32 centimes, and not less than 20
centimes.

The unit of weight for a single letter was fixed at 15 grammes, and
the scale of progression was by steps of 15 grammes.

(_b_) For postcards, half the rate for letters.

(_c_) For printed matter, samples, and commercial papers the unit
rate was fixed at 7 centimes, with liberty for each country to fix
a rate not exceeding 11 centimes or less than 5 centimes.

The unit weight was fixed at 50 grammes, and the progression of
weight was by steps of 50 grammes. The maximum limit of weight for
samples was fixed at 250 grammes, and for printed matter and
commercial papers at 1,000 grammes.[586]

(2) In cases where letters were forwarded by sea for distances over
300 miles, a surtax not exceeding half the general Union rate of
prepaid postage might be added to the normal rate.

(3) The proposal as to the division of postage was accepted, with
slight amplification.

(4) Transit payments, that is, rates of payment by one
administration to another administration in respect of the
transmission of closed mails over the territory of the second
administration by means which it provided, were fixed at 2 fr. per
kilogramme for mails containing letters and postcards, and 25
centimes per kilogramme for mails containing other articles. The
rates were increased to 4 fr. and to 50 centimes, respectively,
when the distance of transmission exceeded 750 kilometres on the
territory of one administration. In the case of sea transits
exceeding 300 nautical miles, the despatching country was required
to pay to the administration which provided the service, the
expenses of the transportation, not exceeding 6 fr. 50 per
kilogramme for letters and 50 centimes per kilogramme for other
articles.

In November 1875 the Indian Post Office administration applied for admission to the Union. A further Conference at Berne was thereupon called to consider this request. Representatives of a large majority of the signatories of the Treaty of 1874 attended the Conference, and other questions were raised. France, Spain, and Holland asked for the admission of their respective colonies; Brazil submitted a declaration of adhesion; and Great Britain intimated that Canada and Newfoundland would submit applications. The original Union had been limited to the European countries, Turkey (including Turkey-in-Asia), Russia-in-Asia, Northern Africa, Egypt, and the United States of America; and these further developments widened the problem before the Congress. Instead of merely considering the question of admitting India, it was called upon to face the possible extension of the Union to the remotest parts of the globe.

The question of transit rates, particularly of transit rates by sea, became therefore one of very great importance and difficulty, since it was necessary to fix such rates as would permit of the maintenance of that uniformity and lowness of the rates of postage which were the fundamental bases of the Union. On this point there were prolonged and difficult discussions. The French delegates submitted a proposal for the application of the treaty of Berne to all quarters of the globe, with a uniform transit rate of 6 fr. 50 per kilogramme for letters and 50 centimes for printed matter, etc.[587]

The countries which maintained the more important and costly maritime services were not, however, prepared to submit to the loss of revenue which the adoption of the proposed transit rates would entail.[588]

Germany submitted a scheme for classifying all countries of the world outside the Union into four groups with four graduated maritime transit rates of 6 fr. 50, 25 fr., 40 fr. and 60 fr. per kilogramme, respectively, for letters, and 50 centimes, 1 fr., 1 fr., and 2 fr. per kilogramme for printed matter, etc.,[589] a proposal which was opposed as contrary to the fundamental principle of uniformity, and calculated to give rise to difficulties and complications. Moreover, the zones, being reckoned as from Europe, were not applicable as between the distant countries themselves, e.g. between Mexico and the West Indies.[590]

The Conference was able to arrive at an agreement only as regards the admission of British India and the French Colonies in Asia, Africa, America and the Pacific. The entry of these territories was fixed for the 1st July 1876, and the general international rates of postage and transit rates, fixed under the Convention of 1874, were made applicable to the new territories of the Union, except that for transit by sea for distances exceeding 300 nautical miles a surtax equal to the full postage rates (32 centimes and 11 centimes) was authorized, instead of a surtax of half rates fixed under the original treaty; and the transit rates in respect of mails for or from these territories for distances of more than 300 nautical miles were made 25 fr. per kilogramme for letters and postcards, and 1 fr. per kilogramme for printed matter, samples, and commercial papers.

The later Congresses have added numerous services to those provided under the original scheme, such as, e.g., reply-paid postcards. For the most part, however, these additional services are of minor importance, and concern only a small part of the international traffic,[591] the bulk of which still passes under the main divisions established at the first Congress.

In connection with the rates applied to those classes of the traffic there are three chief points of importance--the initial charge, the scale of weights, and the transit rates. The question of modifying the international letter rate, which had remained unchanged since the foundation of the Union, was raised at the Washington Congress in 1897. The Austrian delegate proposed, not indeed that the initial charge should be reduced below 25 centimes, but that the maximum weight allowed for the single letter should be increased from 15 grammes to 20 grammes. The British and French delegates opposed the proposal.[592] The French delegates said it would involve a loss of more than a million francs to their administration. In some cases, e.g., Italy, the raising of the limit would have had the effect of rendering the international service cheaper than the internal service. In the end the proposal was rejected.

The subject of transit rates, which had not been seriously considered since the first Congress, was also raised at the Congress of Washington (1897), two proposals in regard to it, by Germany and by Austria-Hungary respectively, being under discussion. In the original project of the Union, gratuitous transit had been proposed, with the reservation that remuneration should be paid in cases of special expenses occasioned to an intermediary by the transit of foreign mails. The new German proposal was for the abolition of all transit payments except in those cases where, according to the statistics of the international service, a payment of more than 50,000 fr. a year was due, and in those cases the actual amount due to be reduced by 25 per cent., or at least by 50,000 fr.; to make the amount payable only by those countries whose share exceeded 10,000 fr.; and the reduction of the maritime transit rate from 15 fr. to 10 fr. This proposal was avowedly a step towards completely gratuitous territorial transit. The Austrian proposal was for gratuitous transit for all correspondence sent _[a'] d['e]couvert_, and a reduction of the transit rates for closed mails. Gratuitous transit, to which, as already stated, the German proposal admittedly tended, was advocated by the delegates of the South American countries, but was opposed by several other countries, especially by Belgium, France, and Italy. As at the first Congress, the delegates of the latter countries called attention to the great expense to which they were put in providing transport for transit mails, and rejected altogether the idea of gratuitous transit. In face of this opposition, the proposals could not be carried in their entirety. The transit rates were, however, considerably reduced, and simplifications in the method of ascertaining the amounts payable in respect of transit were introduced. The land rates were reduced from 2 fr. per kilogramme for letters and postcards and 25 centimes per kilogramme for other articles, to 1 fr. 90 and to 23-3/4 centimes for the years 1899 and 1900, to 1 fr. 80 and to 22-1/2 centimes for the years 1901 and 1902, and to 1 fr. 70 and to 21-1/4 centimes for and after 1903. The maritime transit rates were similarly reduced. Countries whose expenses for the transit of foreign mails exceeded the receipts, and those whose combined receipts and expenses for that purpose did not exceed 5,000 fr. per year, were excused all payment under this head.

At the next Congress, held at Rome in 1906, the question of reducing the letter rate and transit rates was again discussed. Proposals to raise the limit of weight for single letters from 15 grammes to 20 grammes were submitted by several States. It was pointed out that, although in general sufficient, the limit of 15 grammes was often exceeded, and frequently the weight of letters required to be tested, causing inconvenience both to the public and the postal administrations. The German delegate expressed the opinion that the public were anticipating some concession, and that as reduction of the initial rate of 25 centimes was impossible, an increased limit of weight would no doubt be appreciated.[593] The British delegates pointed out that the equivalent of 20 grammes in British weight was 2/3 or 3/4 ounce, a unit which would be highly inconvenient and could not be adopted. They would have accepted a limit of 30 grammes; but in many countries the existing limit of weight for the initial letter rate in the inland service was 20 grammes, and the introduction of a higher initial weight in the international service might lead to difficulties in the case of those administrations which desired to retain the lower limit in the inland service. On these grounds they inclined to the maintenance of the _status quo_. The delegates of the United States, Italy, and Turkey supported the British view. The Italian delegates pointed out that the result would in effect be to compel those countries in which the limit was 15 grammes to introduce modifications into their internal service--a position which it was obviously undesirable for the Congress to take up. Japan advocated the maintenance of the existing limit, because the effect of raising it would be to render further reduction of transit rates still more difficult. In the end the proposal was adopted by thirteen votes against twelve.[594] Countries using the avoirdupois system were to regard 1 ounce as the initial weight limit.

Gratuitous transit was still unacceptable to the majority,[595] but both land and sea charges were reduced. The land transit rates were reduced to 1 fr. 50 per kilogramme for letters and postcards and 20 centimes per kilogramme for other articles, for distances not exceeding 3,000 kilometres; to 3 fr. per kilogramme for letters and postcards and 40 centimes per kilogramme for other articles, for distances between 3,000 and 6,000 kilometres; to 4 fr. 50 per kilogramme for letters and postcards and 60 centimes per kilogramme for other articles, for distances between 6,000 kilometres and 9,000 kilometres; and to 6 fr. per kilogramme for letters and postcards and 80 centimes per kilogramme for other articles, for distances exceeding 9,000 kilometres.

The sea transit rates were reduced to 1 fr. 50 per kilogramme for letters and postcards and to 20 centimes for other articles, for distances not exceeding 300 nautical miles; to 4 fr. per kilogramme for letters and postcards and to 50 centimes for other articles, for distances exceeding 300 nautical miles, between countries of Europe, between parts of Europe, Africa, and Asia on the Mediterranean and Black Seas, and between Europe and North America; to 8 fr. per kilogramme for letters and postcards and to 1 fr. for other articles, for all routes not falling under the above headings.

At this Congress the question of reducing the international letter rate was raised by Sir J. G. Ward, the Australasian delegate. In 1901 New Zealand had introduced a universal penny rate for letters, and the financial results of the change had been regarded as satisfactory. The loss of revenue was some [L]80,000 in the first year, reduced to [L]50,000 in the second. There was an increase of 35 per cent. in the number of foreign letters posted in the first year, as compared with an increase of 1.76 per cent. for the last year under the 2-1/2d. rate.[596]

The proposal met with strong opposition and little support. The opposition was based entirely on financial considerations, many of the delegates stating that their administrations were unable to face the sacrifice of revenue involved. In this connection the term "sacrifice of revenue" means sacrifice of gross revenue, and not necessarily that the carrying of foreign letters at a penny would on the whole result in actual loss through the cost of service being greater than a penny, although it is probable that the cost of a foreign letter weighing as much as an ounce would be slightly more than a penny.[597] The proposal was defeated by eighteen votes to three.[598]

(II) INTERNATIONAL PARCEL POST

The Universal Postal Union as at first constituted provided only for the transmission of what may be regarded in the broad sense as letter post traffic. It made no provision for the transmission in the international service of packages of ordinary merchandise. Such packets could in strictness only be forwarded at the letter rate, which was almost prohibitive; although frequently they were forwarded at the sample rate, in which case the weight of the packet was strictly limited. The French administration proposed, in the project of the Congress of Paris of 1878, to extend in that direction the facilities provided by the Union, by amplifying the definition of samples to include small parcels of ordinary goods,[599] a proposal which was rejected by a majority of the administrations. It was, however, submitted to the Congress under another form. The German administration proposed, not the extension of the sample privilege, but the establishment of a new service, which should provide for the transmission of parcels of general merchandise not exceeding 3 kilogrammes in weight, the parcels to be charged a rate of postage sufficient to reimburse the administrations for the expenses of transmission. Although this proposal was favourably received, many of the delegates had no power to enter into any arrangement of that nature. The question was therefore referred to the International Bureau, with instructions to call a special Conference for its consideration, if on investigation that course should be found desirable.

At this time the circumstances in the different countries in regard to the transmission of small parcels varied. In some a service was provided by the Post Office; in others, the majority, the business was left to the railways or other forms of commercial transport. In all cases the services between different countries were regulated by conventions and agreements on such terms as could be mutually arranged between the contracting parties. In general the rates of postage were based on the rates for inland transmission in each of the countries concerned. They were often extremely complicated, and several administrations had mutually agreed to a uniform rate for parcels not exceeding 5 kilogrammes in weight.

The suggestion for a special Conference was, in general, well received, and the Conference met in Paris in 1880. All the countries of Europe (except Greece), Canada, the United States, Egypt, British India and Persia, were represented. The fact that in many of the countries the Post Office had not at that time undertaken the transmission of parcels was a serious obstacle to the adoption of any sort of general agreement; and on the question of rates there was divergence of opinion whether the principle of uniformity should be accepted, and a fairly high maximum limit of weight conceded at a low uniform rate of postage, in order that the service might be of real advantage to the public, or whether the rates should be graduated according to scales of weight and distance.

The original suggestion had been for a limit of 3 kilogrammes, but at the Conference a proposal for a limit of 5 kilogrammes was submitted. Several delegates were unable to accept the higher maximum, and the limit originally proposed was retained.[600] As regards the rates of postage to be charged there was also diversity of opinion. Some delegates held that the rate should be so fixed as to avoid the possibility of the service involving an administration in loss, while others, in view of the public benefits to be derived from the establishment of the service, were prepared to agree to rates which might prove insufficient to cover the expenses.[601] Simple uniform rates were regarded as a cardinal feature of a postal service for parcels.[602]

After prolonged discussion agreement was finally arrived at, and a Convention was signed by all the delegates, with the exception of those representing Great Britain, British India, Holland, and Persia, to be brought into operation on the 1st October 1881.

Financial considerations were the chief obstacle in the way of the participation of Great Britain.[603]