II THE RATE FOR NEWSPAPERS

NEWSPAPER POST IN ENGLAND

In England newspapers have enjoyed special privileges in regard to transmission by post since about the middle of the seventeenth century. The origin of the privilege is to be looked for in the special circumstances under which the early newspapers, and the newsletters and newsbooks from which they were derived, were issued, and the means by which the news included in them was obtained.

At that period the post was the chief means by which news could be collected or distributed. The newsletters were distributed by post,[254] and the news which they contained was for the most part obtained through the agency of the Post Office from correspondents in various parts of the country. It was, indeed, an important part of the function of the Post Office to furnish news to the Court, and to the other departments of State, as well as to the general public.[255]

In 1659 General Monck appointed Henry Muddiman, a journalist who had already issued the Parliamentary Intelligencer and the Mercurius Publicus, to write on behalf of the Royalist cause. In consideration of his services he was, after the Restoration, given the privilege of free transmission for his letters.[256] This gave him an advantage over other journalists, and his newsletters and newsbooks became extremely popular. In 1663, however, he was supplanted by Roger L'Estrange, a Royalist who had not to that time been properly recompensed for his faithfulness. L'Estrange was an able writer, who after the passing of the Licensing Act of 1662 had been requested to draw up proposals for the regulation of the Press. As a reward for his services in that connection he was given the office of Surveyor of the Press, his remuneration being the sole privilege of writing and publishing newsbooks and advertisement. L'Estrange also secured the privilege of free postage from Lady Chesterfield, one of the farmers of the Post Office.[257]

L'Estrange's privilege put an end to Muddiman's newsbooks, but in no way interfered with his newsletters and his right to free postage. He was able, therefore, to continue his newsletters, and did so with great success. After the Restoration Muddiman had attached himself to Sir Edward Nicholas, one of the principal Secretaries of State, and his Under-Secretary, Joseph Williamson, from whom he had been in the habit of obtaining part of his news. Williamson was a grasping man, who became jealous of the success of the newswriters, and finding that L'Estrange was unpopular, conceived the idea of getting the control of the whole business into his own hands. He therefore suggested that Muddiman should go to Oxford, where the Court had removed owing to the plague, and publish a new journal in opposition to L'Estrange. While Muddiman was at Oxford, Williamson would obtain by an agent in the Post Office, James Hickes, the names of all his correspondents.[258] The plan was eminently successful, and on the 16th November 1665 the Oxford Gazette appeared, to be transformed a few months later, with its twenty-fourth issue (5th February 1665-6), into the London Gazette. Muddiman, however, gained knowledge of Williamson's designs regarding his correspondents, and on the 8th February 1666 left the Gazette. Williamson thereupon took control of its publication, and, with the assistance of Hickes, continued its issue. He appointed correspondents in all the leading seaports, and in a few other English towns, and also in continental cities, who were required to furnish accounts of passing events. In return for their services the correspondents received regularly copies of the Gazette. Both the letters from correspondents and the Gazettes which were their reward passed free of postage.[259] The regular supply of a copy of the Gazette was so great a privilege that it was often regarded as sufficient wages for a post-messenger or even a deputy-postmaster.[260]

This became a recognized practice before the end of the seventeenth century, and the privilege was regarded as forming part of the ordinary emoluments of the deputy-postmasters.[261] The Gazettes were sent out from London by officers known as Clerks of the Road, under the frank of these officers; and the privilege of franking these Gazettes became extended so that the Clerks of the Road ultimately became entitled to frank any newspaper to whomsoever addressed.[262] In the eighteenth century the Clerks of the Road developed the exercise of their privilege. They accepted subscriptions and undertook the supply of newspapers generally throughout the country. They became, in fact, newsagents. Their newspaper business was something quite apart from their duties as officers of the Post Office. It was conducted in a separate building, by a separate staff, and they found it very lucrative.[263] The postage on newspapers at the letter rate would have been prohibitive. Hence newspapers either went under frank or did not go by post at all, and the whole business of distribution through the post fell into the hands of the Clerks of the Road. Their profits were in part applied to the discharge of certain payments—the salaries of some of the inferior clerks and some charitable payments—in connection with the Post Office.[264]

In 1764 the privilege was explicitly recognized by statute,[265] but the same Act gave a severe blow to the whole system by authorizing members of Parliament to send newspapers free of postage. The members did not confine the exercise of the privilege to newspapers sent by or to them for their own use, but granted orders for free postage to booksellers and newsagents on a liberal scale.[266] The booksellers naturally cut the prices charged by the Clerks of the Road. The charge of the latter had been £5 a year for a daily paper, and £2 10s. a year for an evening paper. The booksellers in 1770 advertised a charge of £4 a year for a daily paper, and £2 a year for an evening paper.[267] As a result a large part of the traffic went to the booksellers, and the profits of the Clerks of the Road fell so rapidly that it was soon found necessary to relieve them of the charges on their profits.[268]

Efforts were made to check the abuse of the privilege of franking of newspapers held by members of Parliament under the Act of 1764. An Act of 1802 (42 Geo. III, cap. 63) required not only that the member should sign the newspaper packets, but that the whole superscription, together with the date of posting and the name of the post-town in which the paper was intended to be posted, should be in his handwriting. The member must, moreover, himself be in the post-town where the paper was posted on the date shown on the paper. These regulations were not long maintained. They were probably too stringent to be enforced, and in the course of a few years the appearance on the newspaper or wrapper of any member's name, whether written by himself or by any other person, or even printed, was sufficient to secure free transmission through the post. In 1825 the conditions were definitely repealed, and newspapers became legally entitled to free transmission by post.[269]

There were reasons why the Government and the Post Office did not suppress the extension of the privilege accorded to newspapers. At this time heavy general taxes were imposed on newspapers—the paper duty, the advertisement duty, and the stamp duty.

These charges had been first imposed in the early years of the eighteenth century, when newspapers were changing character, and they were in the nature of restrictions on the liberty of the Press, a continuation of the restrictions which had previously been maintained by means of Licensing Acts.[270] Newspapers were at that time ceasing to be mere chronicles of events, and were beginning to publish comments and to criticize persons and parties. A Bill to impose a tax of 1d. a copy on all periodical publications was brought into Parliament in 1701, but was abandoned owing to the opposition of the newspaper proprietors, who represented that they were in the habit of selling their papers at a ½d. a copy.[271] In 1712 a message from the Crown, adverting to the undesirable character of the new development of newspaper enterprise, recommended that a remedy be found without delay. The result was the imposition of a stamp duty of ½d. the sheet on all newspapers of a sheet and a half.[272] The privileges with regard to their transmission by post were, however, in no way interfered with.

In 1776 the tax was raised to 1½d. a copy, in 1789 to 2d., in 1794 to 2½d., and in 1815 to 4d., at which amount it stood until 1836. In 1819 onerous restrictions with regard to registration, bonds, and sureties were imposed, mainly with the view of preventing the issue of publications of undesirable character.[273]

In consideration of these charges the Government were prepared to allow free transmission by post. Moreover, the franking privilege of the Clerks of the Road was favoured as an economy. They argued that as these officers received considerable sums from their newspaper business their salaries from the Post Office were correspondingly low, and if the newspaper business were taken from them it would be necessary for the Post Office to make good the loss in income which they would suffer.[274] It would seem that there was at this time no conception of charging a rate of postage on newspapers; and so far the authorities were right in thinking the abolition of the privilege would cause an addition to the expenses of the Post Office, in compensation for which there would be no increase in revenue. Whatever were the taxes paid to other departments, it was clearly in the financial interest of the Post Office, so long as newspapers passed free by post, to retain a system which enabled certain of its officers to obtain part of their income from special arrangements for the distribution of the newspapers, instead of from Post Office funds.

The Clerks of the Road still held an advantage over the ordinary newsagents. The local postmasters acted as their agents, and they had, moreover, the important privilege of posting their papers later. Newsagents were not permitted to post after seven o'clock, but the Clerks of the Road could post as late as eight o'clock. They were able, therefore, to retain a considerable business. In 1829 it was estimated that as many as one-eighth of all the newspapers sent out from London were sent by the Clerks of the Road.[275] The privilege of late posting was withdrawn in 1834, and their business then ceased.[276]

It seems anomalous that at the same time that the Government, with the object of restricting the publication and distribution of newspapers, imposed a heavy stamp duty and a duty on advertisements, they should have assisted, by allowing free transmission by post, the distribution of such newspapers as were able to survive the impositions; but the heavy taxes were intended to prevent the issue of cheap newspapers, and expensive papers could only find sale among those who were not attracted by dangerous doctrines, political or otherwise.[277] In the view of the Government this aristocratic character ensured, moreover, a high moral tone in the Press. Without such taxes the English Press might become a moral danger and might conceivably sink to the level of the American Press of the day, which, according to some eminent persons, was very low indeed.[278] The question of free transmission by post received little attention. Chief interest was centred on the allegation that the stamp duty so raised the price of legitimate newspapers as to place them beyond the reach of any but the well-to-do.

The question of allowing the free publication of newspapers, or of, at least, reducing the heavy burdens under which they lay, became urgent after the passing of the Reform Act of 1832.[279] The increase in the number of people directly interested in political affairs through the extension of the franchise, and the awakened general interest in social and economic problems, not only produced a great demand for newspapers, but made necessary provision for the dissemination of accurate political intelligence.[280] Numerous unstamped papers, which found a ready sale, were issued in various parts of the country, in defiance of the law. Thus, in London, one of these papers, The Poor Man's Guardian, an able and "Socialistic" paper, bore on its title-page a notification that it was deliberately published contrary to law, in order to test "the power of right against might."[281]

The Government took strong action against such publications. Numerous prosecutions were undertaken, and a large number of persons in various parts of the country were imprisoned; but the circulation of the papers could not be checked. Popular sentiment was largely on the side of the publishers and sellers of unstamped papers, sympathy being so strong that frequently subscriptions for their benefit were raised.[282]

It became apparent very soon after the passing of the Reform Act that the heavy duty could not be maintained. It was indeed so high, and the sale of the unstamped publications was so great, that in the years after 1831 there was an actual diminution in the yield of the stamp duty. In 1836 the Government were constrained to deal with the question. They introduced a Bill providing for the reduction of the duty from 4d. a sheet to 1d. a sheet. The Chancellor of the Exchequer said that the reduction was simply a concession to public necessity and expediency. If the duty were maintained at its then existing level, public feeling against it would increase, and might lead to a general disposition to encourage illegal publications. The reduction would, moreover, assist the moral improvement of the people.

The reduction of the duty was not carried without opposition. The Times, which had attained its position under the old duties, and the other great newspapers then successfully conducted, were opposed to the reduction, foreseeing the possibility of the rivalry of new and cheap competitors.[283] An attempt was made to argue that the benefit would not accrue to the public, since the public did not in general buy newspapers but went to the public-house to hear them read. Such persons would still go to the public-house, and would therefore derive no benefit from the reduced price: the advantage would be with the publican. On the other hand, it was anticipated that the reduction of the duty would so cheapen the newspapers that they would be brought within reach of all. Mr. Spring Rice said he knew that "the newspaper was one of the great attractions to take the poor man from home to visit the public-house; if, therefore, the adoption of this proposition tended to keep the poor man at home, it would afford a great moral aid to the improvement of the people."[284] The moral uplifting of the poor man was a mighty shibboleth in those days, and one which gave a power to these arguments.

The rates fixed by the Act of 1836 were 1d. for the first sheet, not exceeding 2,295 superficial square inches, and a halfpenny for a second sheet not exceeding 1,148 square inches. The existing provisions with regard to registration and sureties were continued. They were considered of importance, in view of the likelihood of the establishment of cheap irresponsible papers which might be found publishing slanderous and scurrilous, if not blasphemous, statements.

There is little doubt that the Government had in mind a wish still to keep some restriction on the Press, and the Radicals always took that view. The penny duty undoubtedly had the effect of preventing the issue of really cheap newspapers.[285] Although in Parliament the Government argued that they were entitled to the penny as a postage charge,[286] it is unlikely that they did not realize how illogical it would be to charge a penny stamp duty on every copy of a newspaper that was printed, in order to secure the free transmission by post of such copies as the publisher might wish to distribute by that means.[287] The proportionate numbers of newspapers sent or not sent by post would not be the same for all publications. Such a provision was therefore bound to work unequally. Moreover, the new duty meant that it would still be impossible to issue a newspaper at the price of one penny, and the cheap newspaper was still barred. The duty was in fact still a restrictive tax; and by those who were opposed to all "taxes on knowledge," of which the newspaper duty had been considered one, the question was never regarded as settled by this reduction.[288]

The official Whigs did not say much on the question of the restrictive character of the duty. The Radicals were not so careful to hide the repressive side. While not suggesting that the Government (with whom they voted) desired the continuance of a restrictive duty, they roundly accused the Opposition of desiring to restrain the dissemination of intelligence, "in order to keep up their influence over a certain class of people, and at the same time to perpetuate the ignorance which had hitherto hung about them."[289]

After the passing of the Act with its definite postal privilege for newspapers coming within its provisions, questions arose as to the status with regard to transmission by post of certain publications which were not newspapers of the ordinary type, but rather of the nature of critical or literary reviews. The proprietors of these publications desired to transmit by post a part of their issues. They were not, however, prepared to pay at the letter rate by the ounce, but wished to bring under the Stamp Act that portion of their impression which would pass by post, and pay duty accordingly on those copies only. This course was agreed to by the Government in 1838,[290] subject to a maximum limit of weight per copy of 2 ounces. The privilege was at first conceded only to periodicals, termed "class" newspapers, dealing with a particular subject and addressed to a certain class of the community, such as, for instance, papers relating to law, medicine, or architecture. It was restricted to papers dealing with what might be termed the higher intellectual subjects. These were held to form fair ground of exemption; but other specialist papers relating to subjects less intellectual then appeared; such as papers relating to turf news, or reporting cases before the police courts. These papers being entirely devoted to one subject, it became a question whether the privilege of stamping only a part of their impression could be given them. Instead of attempting any sort of discrimination in such cases, the Government made one general rule that all papers devoted to the discussion of one subject should be accorded the privilege. Thereupon a great variety of such papers came into existence, and very soon some of them began to include in their issues matter which could only be regarded as news of a general character. This raised a further question: how much such general news should be regarded as destroying the "class" character of the publication. The Government found themselves in a difficulty. If the law was not rigorously enforced, the papers paying the tax raised a great outcry against the injustice to themselves; and if the law was enforced in respect of those "class" publications which published general news, there was a great outcry against the discrimination between the "class" papers.[291]

The whole position in regard to these papers became unsatisfactory and anomalous.[292] It was, in point of fact, found impossible to enforce the law. The outbreak of the Crimean War led to a development which reduced the whole position to absurdity. Publications were issued giving the latest and fullest available intelligence from the seat of war. These publications confined themselves strictly to the subject of the war. They published nothing on any other topic; and on that ground, although devoted entirely to the publication of news of burning interest, they claimed to be exempt from the newspaper duty in common with all other "class" newspapers.[293]

In the Session of 1854 the House of Commons passed a Resolution, although it was opposed by the Government, affirming that the laws in reference to the periodical press and newspaper stamp were "ill-defined and unequally enforced," and that the subject demanded the early consideration of Parliament. The Government gave the matter their attention. Mr. Gladstone, then Chancellor of the Exchequer, prepared a plan which was embodied, with modifications, in a Bill introduced in the following Session by his successor. This Bill provided for the abolition of the duty except on such copies as it might be desired to send by post. The proposal was welcomed as the abolition of the last of the taxes on knowledge, and a liberation of the Press.[294] The only serious opposition to the Bill was made on the ground that in the exceptional circumstances of the time—the nation being engaged in a war—the loss of revenue could be ill-afforded; and that the withdrawal of the duty would lower the moral character of the Press, and open the way for seditious and blasphemous publications and for unrestrained libellous attacks on the Government, on public authorities, and private individuals.[295] The Government justified their proposals on the ground that the administration of the existing law had become exceedingly difficult, and that the resolution of the previous session condemning the ambiguity of the existing law and the unsatisfactory character of its administration left them little choice in the matter.[296]

An amendment to the Bill of 1855, proposing the reduction of the stamp duty to ½d., which was in effect providing for the transmission of newspapers by post at the uniform rate of ½d., was opposed by the Government. There was no desire to make the postage of newspapers a source of revenue. On this point there was general agreement. At the same time there was no disposition to carry newspapers at less than cost. Sir Rowland Hill, in the course of his evidence before the Committee of 1851, had said that the Post Office could profitably carry newspapers at a penny,[297] and that it was unlikely that they could be carried profitably for a halfpenny. Members of the Government and other members of the House were convinced that a halfpenny rate would involve a loss, and they opposed the amendment on that ground.[298]

The Act 16 & 17 Vict. cap. 63 (1853) had reduced the stamp duties on newspapers,[299] and repealed the duties on advertisements. A further Act (the Newspaper Stamp Duties Act of 1855, 18 & 19 Vict. cap. 27), repealed the stamp duty, as such, in respect of newspapers, and provided that periodical publications conforming to certain conditions should be entitled to free transmission by post, if "printed within the United Kingdom on paper stamped for denoting the rate of duty now imposed by law on newspapers." The chief conditions were that the publication should be issued at intervals not exceeding thirty-one days, should bear the title and date of publication at the top of every page, and should not be printed on or bound in pasteboard or cardboard. The maximum limit of weight for publications not strictly newspapers, which in 1854 had been raised to 3 ounces, was now abolished, and newspapers and all other stamped periodical publications were made subject to the same restrictions as to number of sheets and extent of letterpress, etc. Concurrently with the passing of this Act, the book post rates were reduced with the view of permitting the transmission of unstamped newspapers at low rates of postage.[300]

Under the Act of 1855, stamp duty at the rate payable at that time under the existing law must be paid in order to secure the privilege of free transmission of newspapers by post. The duty was chargeable according to the number of sheets; and in the case of some leading newspapers, such as The Times and the Illustrated London News, amounted to 1½d. per copy for each issue. The proprietors of these publications in 1858 approached the Post Office with the view of obtaining a reduction of the charge for the transmission of their papers by post. This request was submitted by the Post Office, and was met by the Government in a liberal spirit. In view of the importance now attached by Parliament to the free circulation of newspapers, as shown by the removal of taxation from them, an object of scarcely inferior importance to the circulation of letters, it was now decided that since the whole of the existing system rested on the assumption that the free circulation of newspapers in general was an object of importance, and one to be attained even at a disproportionate cost to the Post Office, a line should not be drawn so as to exclude from the lowest rate one paper, and that paper the one with the largest circulation. Such was the result of the existing limitation to 4 ounces of the weight of newspapers which might be carried by the post for 1d., and the limit was therefore raised from 4 ounces to 6 ounces.

In 1866 the question was raised in the House of Commons whether the Post Office charge could be reduced, especially in view of the fact that railway companies were distributing newspapers at a uniform rate of ½d. a copy. In 1869 the question was again raised in Parliament. A resolution was moved in favour of an inland rate of ½d. for 2 ounces on printed matter, and a postage of ½d. on newspapers. It was urged that the concession would be of special value in rural districts: it would indeed "be hard to say what the effect might be in time on the social condition of the people." In several continental countries newspapers were already transmissible by post at very low rates. Against the possible objection that by introducing a rate lower than the 1d. rate they were jeopardizing its maintenance for letters, and that the proposal might therefore lead to a general ½d. rate, it was argued that so far from that being the case, the best way of ensuring the permanence of the 1d. rate was to grant the concession asked.[301]

The Marquess of Hartington, the Postmaster-General, was unable to accept the motion because he thought such proposals, before being assented to by the House, should be thoroughly looked into to discover whether there was a reasonable probability that the loss of revenue would or would not be a permanent loss, and the Post Office should be given ample time to consider whether the additional duties which would be thrown upon it could be undertaken with due regard to other services, which were of greater importance than the transmission of circulars or newspapers. The influx of a largely increased number of circulars and newspapers would cause serious embarrassment in the practical working of the Post Office, and might impair the efficiency of the service in respect of letters. The primary business of the Post Office being the "rapid and punctual transmission of letters," such a result would give just cause for dissatisfaction.

The Marquess of Hartington asked that the motion should not be pressed. The Chancellor of the Exchequer told the House that he had not got £300,000 to give away. Mr. Gladstone also emphasized the seriousness of the financial aspect of the proposals, and assured the House that the Government honestly intended to investigate the question, however much their suggestion for deferring a vote upon it might look like a pretext for evading it altogether. But when the Chancellor of the Exchequer moved the previous question, the motion was lost by a large majority. A main contention of the advocates of the reduction of rate was that in many foreign countries—in France, in Belgium, in Switzerland, in the United States—extremely low rates of postage for newspapers were in operation, and what was possible in those countries ought to be possible in England.

Following this vote in the House of Commons the matter was further considered at the Post Office, and in the next session an Act was passed providing that any newspaper conforming to certain conditions, the chief of which were that it should be issued at intervals of not more than seven days and should consist wholly or in great part of political or other news or of articles relating thereto or to other current topics, should be entitled to transmission by post at the rate of ½d. per copy irrespective of weight. The privilege of retransmission was withdrawn.[302]

The statutory basis of the newspaper post has remained unchanged since 1870, and the provisions of the Act of 1870 were included in the Post Office Act of 1908, which contains the present authority for the privilege. There has been some necessary interpretation by the Post Office of the definition of a newspaper as given in the Act. The chief points on which difficulty has arisen are (1) as to the amount of news-matter required in a publication, and (2) as to the character of the matter which can be accepted as news-matter. The Act provides that the publication should consist "wholly or in great part of political or other news or of articles relating thereto, or to other current topics." This requirement is considered to be satisfied if as much as one-third of the publication consists of matter accepted as news. The proportion, when fixed, was based on an examination of the proportion of news-matter contained in the average newspaper, and represents the actual proportion then generally met with. There is no provision regarding the proportion to be maintained between the size of a newspaper within the meaning of the Act and its supplement, but, under the accepted interpretation of the statute, a newspaper may contain a supplement of equal size, and that supplement may consist wholly of advertisements. The result of this is that publications containing a proportion of only one-sixth of news-matter may pass at the newspaper rate of postage. As to the second requirement, a strict interpretation of the regulation is not insisted on, and, in general, articles, pictures, or drawings relating to any matters of current or topical interest are accepted.

This lack of precision in the provisions of the Act, and the consequent difficulty of framing or enforcing regulations restricting the privilege within even reasonable limits, have been largely taken advantage of, especially in recent years, by the publishers of trade and fashion papers, with the result that publications weighing in some cases as much as 3 pounds are sent through the post at the usual newspaper rate of a halfpenny. Nor are the enormous weight of these papers, and the large proportion of advertisement matter, the only objections. The news-matter on which they rely as entitling them to the newspaper privilege is often of the most doubtful character, consisting largely of accounts of shop sales or of commercial exhibitions, with lengthy descriptions of the articles displayed.

This abuse of the privilege is, however, confined to a comparatively small proportion of the newspapers entitled to transmission at the newspaper rate. With the fall in the price of paper, and the improvements in printing methods and machinery, all newspapers have tended to increase in size. But in general the increase has been small. In 1855 the average weight of newspapers passing by post was 3·1 ounces,[303] and in 1913 it had increased to 4·1 ounces. The number of papers entitled to the privilege which could be regarded as excessively heavy is not more than about 50 (out of a total of some 2,200),[304] and although practically all these papers are published in London, and are largely distributed through the post, they do not form more than a small proportion of the total number of packets passing by newspaper post. But such of these publications of vast bulk and weight as are sent at the newspaper rate derive a great advantage—an advantage measured by the heavy loss incurred by the Post Office in respect of each such publication.[305]

Many of the moderately heavy papers, such as the ordinary sixpenny London newspapers, are for the most part in compliance both with the letter and the spirit of the regulations, and their transmission at the ½d. rate is not, perhaps, open to serious objection. But there can be little doubt that if the possibility of developments in the publication of trade journals such as have occurred, had been foreseen, some provision would have been made for the prevention of the transmission at heavy loss to the Post Office of large numbers of publications which are, in effect, trade catalogues. While the newspaper post involves a very considerable loss, it affords the public a useful facility, and one which is largely availed of for the purpose the Act of 1870 was intended to assist, viz. the dissemination of intelligence.[306]

The rate has proved too high to secure a large postal traffic in newspapers. The total number passing by post within the United Kingdom in 1913 was some 200 millions, which, in days when individual daily newspapers publish as many as a million copies of every issue, is only an insignificant portion of the newspaper traffic of the country. It is also only a small portion of the total postal traffic, which in the same year amounted to some 6,000 millions. In this respect there has been a great transformation. Under the old conditions newspapers were distributed almost exclusively by post, and formed a large proportion of the total number of postal packets and by far the greater bulk of all the mails,[307] while now they form only an inconsiderable proportion both in bulk and number. The Post Office has no monopoly of the distribution of newspapers, and for the most part newspaper publishers themselves provide for the distribution of by far the larger part of their issues. In all the large towns this is the case.[308] Private enterprise can of course compete wherever the traffic would be profitable, and private agencies provide satisfactorily for the distribution of the vast proportion of newspapers, it being found practicable throughout a large part of the country to place newspapers on sale at the published price; and in all such cases payment of postage, which in the days of the halfpenny newspaper represents an additional charge of 100 per cent. on the published price, is out of the question. Only those for the more remote towns and country districts are left to the Post Office; but the newspaper traffic by post, although conducted at a loss, comprises so small a part of the whole postal traffic, that the result on the finances of the Post Office is not serious. If, however, such an unremunerative rate were applied to a class of traffic likely to assume large proportions the result would be financially disastrous, and this is the answer to such suggestions as those of Mr. Wells to extend the newspaper rate to other classes of printed matter.[309]

In 1913 the privilege of transmission at the ½d. rate was extended to colonial newspapers, registered for the purpose in this country.

Note.—On the 1st November 1915, as part of the war increases of postage, the rate on newspapers was altered to ½d. for every 6 ounces or part of 6 ounces.

NEWSPAPER POST IN CANADA

No special provision for the transmission of newspapers had been made in the Act of 1765 which first prescribed rates of postage for the Canadian territories. Consequently, if sent in the mails, they were, in strictness, liable to postage at the ordinary rates for letters and packets. Those rates would generally have amounted to at least a shilling a copy, and would therefore have prevented altogether the distribution of newspapers by post. Postage was in practice waived, newspapers being allowed to pass by post on payment of a small charge quarterly to the Deputy Postmaster-General, who retained the proceeds as a perquisite of his office. The amount was at first a mere trifle; but in later days it formed the greater part of his emoluments. The precise date at which this arrangement was established is uncertain. It certainly existed in Nova Scotia in 1770, and probably commenced on the first publication of a newspaper in Canada.[310] The rates charged were low, and were varied from time to time at the will of the Deputy Postmaster-General. The following, which were charged in Canada in 1840, may, however, be regarded as typical:—

For aweeklypaper1s. 0d.currencya quarter

"bi-weekly"1s. 3d.""

"tri-weekly"1s. 6d.""

"daily"2s. 3d.""

In the Maritime Provinces the rates were somewhat lower, the charge for a weekly paper being only 2s. 6d. a year.

These amounts were payable by the proprietor of the paper, and were accepted only in respect of papers sent regularly. Papers mailed casually by persons other than publishers, and denominated "transients," were charged 1d. currency each. The publishers thought even these moderate charges objectionable, and the feeling against them was increased when it became known that they rested on no legal authority, but solely on the custom of the office and the sanction of Sir Francis Freeling; and that the proceeds, instead of being accounted for as part of the general Post Office revenue, were appropriated by the Deputy Postmaster-General. They were also objected to as arbitrary and inequitable, since papers were charged the same rate whether they were conveyed 20 miles or 200 miles. As letters were at that time charged on a scale of rates graduated according to distance, the application of the principle of uniformity to the newspapers was naturally not appreciated; and in view of the heavy charges incurred for transportation it could not have been justified on economic grounds.

The resentment against the charge first took definite form in the Lower Provinces. In 1830 a Mr. Ward, a publisher, petitioned the Nova Scotian House of Assembly to be relieved from the charges on his newspapers. A Committee of the House, which considered the matter, found that under the Imperial Acts it was no part of the duty of the Deputy Postmaster-General to receive or transmit newspapers, other than those received from Great Britain, and that the Deputy was therefore justified in making the charge complained of. They found also that sixty years earlier the Deputy made a yearly charge of 2s. 6d. on each newspaper sent by post, and that at that time all editors acquiesced in the charge. At the same time the Committee regarded the charge as so undesirable that they recommended the House should grant a sum to remunerate the Deputy for his services in transmitting newspapers, in order that the charges might be abolished.

The Deputy Postmaster-General in the Lower Provinces was himself a publisher, and it was alleged that he was interested directly or indirectly in every newspaper published in Nova Scotia, with the exception of two, with the result that, while all the newspapers in which he was interested passed free of postage, the two outsiders were made to pay. The Deputy Postmaster-General himself seemed to think the arrangement was best kept in the background. When questioned by the House of Assembly, he adopted a reticent attitude and made equivocating statements. He gave particulars purporting to show the amounts paid as postage in respect of certain newspapers controlled by him, and on further interrogation by the House of Assembly admitted that the journals paid no postage.

Meanwhile, publishers in both Lower and Upper Canada also were working for the abolition of the Deputy Postmaster-General's privilege. In December 1830 a publisher of Montreal, Mr. R. Armour, approached Sir Francis Freeling, declaring that the subject might eventually involve a question of high constitutional importance, viz. "to what extent the Post Office of Great Britain is authorized by law to regulate the internal Post Office establishments of the Colony, and to draw a Revenue therefrom." He received no satisfaction from Sir Francis Freeling, who replied that the charges were "the long established and authorized perquisite of the Officer in question (the Deputy Postmaster-General) and that all Newspapers circulated by post in British North America otherwise than under his privilege are liable by Law to the charge of the full rates of Postage."

Mr. Armour then petitioned the local Legislature, and towards the end of the year a Committee of the House of Assembly was appointed to consider the whole question of the management of the Post Office in the province of Lower Canada. The Committee found it impossible to obtain any useful information concerning the finances of the service from the Deputy Postmaster-General, Mr. T. A. Stayner, whose attitude was a source of much irritation, resulting in great intensity of feeling both against the privilege of the Deputy and the administration of the service from London.

In 1832 the publishers in Upper Canada, who were working in concert with the publishers of Lower Canada, also succeeded in obtaining the appointment of a Committee of the House of Assembly. This Committee, in its Report, challenged the legality of any postage charge whatever raised in the province under authority of the British Postmaster-General.

In 1833 the publishers in Nova Scotia submitted a petition to the King, but obtained no satisfaction.[311]

In the Lower Provinces there was a sentiment in favour of the free transmission of newspapers, which had been encouraged, if not originally induced, by the circumstance that for a considerable period the holder of the office of Deputy Postmaster-General for those provinces, Mr. Howe, took little trouble to enforce the payment of that postage which, when paid, was his perquisite, preferring to forgo the proceeds rather than incur the risk of odium which might attach to any attempt to enforce his privilege.[312]

In 1842 Mr. Edmund Ward, the publisher of the Federation Sentinel, petitioned the Lieutenant-Governor and House of Assembly in New Brunswick for the abolition of the postage rate on newspapers, on the grounds that it was illegal, a tax on knowledge, and of no benefit to the public revenue, since the proceeds were retained by an official already adequately remunerated for his services. The petition was submitted to the Home authorities; and the Solicitor to the Post Office advised that, since the Act of 1837 repealed the Act of the 4th of George III, cap. 34, the charge on newspapers made by the Deputy Postmaster-General in North America rested on no legal basis, and long established usage and custom was the only justification for allowing newspapers to pass by post at less than the legal rate. The House of Assembly in New Brunswick also took up the question on their own account. Like the Nova Scotians, they were anxious to facilitate the distribution of newspapers. They regarded the charge for postage as an odious tax on knowledge, and in 1844, in a joint Address to his Majesty, recommended its abolition.

In 1842 the House of Assembly of Nova Scotia also petitioned for the abolition of postage on newspapers and pamphlets, contending that the proceeds of the postage rate, which was collected from the country districts, on which it lay as a heavy burden, did not benefit the general revenue, since they were appropriated by the Deputy Postmaster-General, and that the newspapers were well-nigh the only vehicle of information in the province. In reply, the British authorities pointed out that since pamphlets were charged as letters in England, the Treasury could not sanction free transmission in the colonies; moreover, even with the existing rate, the number of newspapers sent by post was increasing so rapidly that it was becoming a matter of some difficulty, on account of the bad condition of the roads in the province, to provide for their transmission from place to place. Free transmission was therefore not conceded; but in July 1844 certain changes were made in the general system of rates, and the Deputy Postmaster-General's newspaper privilege was withdrawn, a uniform rate of ½d. per sheet for transmission to any point in Nova Scotia, New Brunswick, Canada, and Prince Edward Island being established.

When the Post Office service throughout British North America was unified and transferred to provincial control, the then existing rates of postage on newspapers and pamphlets were continued, but power was reserved to each Legislature to authorize transmission within its respective province free of postage. By virtue of this power Nova Scotia in 1852 abolished altogether the rate of postage on newspapers, taking pride in the fact that they were the first authority in British North America to grant the boon. New Brunswick soon followed suit. But the result of this, coupled with the reduction in letter postage at the unification, was adverse to the finances of the service in these provinces. For several years the accounts showed a deficit, which was met by the provinces cheerfully as a contribution of no less value than contributions made for roads, bridges, and schools.[313]

In connection with the changes introduced at the time of the Confederation, a charge for the transmission of newspapers by post was made general throughout the federated area. The charge met with considerable opposition from the Maritime Provinces, which thus lost the boon of free transmission.[314] It was justified as nothing more nor less than a simple charge for freight, the remission of which would be to offer a bounty to a particular industry. The possibilities of usefulness of the Post Office would, it was argued, be greatly reduced if the service were loaded with the burden of the gratuitous distribution of newspapers throughout so vast a country; since, if from the diminution of revenue which such a course must produce, the department were forced to look to Parliament for assistance, Parliament would be disposed to discourage the establishment of new offices in the thinly settled districts, where it was of the greatest importance that they should be found.[315]

The arguments of members from the Maritime Provinces were somewhat diverse. They said there was an essential distinction between letters and newspapers, in that letters were private communications between individuals, while newspapers were in some measure the organs of communication between the Government and the people, and furnished the only means by which to acquire that acquaintance with the law which everybody was presumed to possess. Newspapers occupied a similar position to that of schools, and presented one of the easiest channels of enlightenment. In many cases, for the ordinary folk no other means of education were open. On them the tax would be an imposition which might be contrasted, it was said, with the favour accorded to the commercial and wealthy classes by the reduction in the postage on letters.

It was further argued that in the existing state of the Dominion, owing to the presence of a certain amount of sectional feeling and mutual hostility between different portions of the country, which could be attributed largely to the lack of that sort of information which newspapers could provide, it would be folly to hinder the freest possible distribution.[316] Moreover, a postage charge would fall unequally. The large towns and thickly populated areas would be able to obtain their papers by means of the railroad or other agency at little cost; but the outlying districts, which ought to be treated with special favour by the Legislature, would have no alternative to the payment of postage. The large newspapers would be able to distribute their issues by express, while the smaller ones would be compelled to use the post. The "tax" would yield only some $25,000 a year in Nova Scotia; and for such a paltry sum it surely could not be wise to levy this "tax upon knowledge," which "of all the heavy burdens laid upon Nova Scotia was the most oppressive."[317]

These arguments were ineffective, and a rate which averaged half a cent a copy was imposed. In 1875 the rate was modified, and made a bulk rate of 1 cent a pound, an extremely low rate. The average weight of newspapers at that time was so small that, in the case of certain typical papers selected by the Government for the purpose, it was found that the numbers required to make up a pound were from ten to fifteen. In 1874 the total yield under the old rate had been only some $36,000. The new rate was therefore likely to yield only some $6,000 a year, and the advocates of free transmission argued that as such a small sum would hardly be worth the trouble of keeping the accounts, the Government, having gone so far, might well have taken a step further and abolished altogether the postage on newspapers. The Government defence was that the rate proposed was the lowest possible, and to mail free the papers published in the various parts of the Dominion would be to impose too heavy a burden upon the public treasury.[318]

The Canadian people had only to wait a few years for the boon. In 1882 an Act was passed "to provide for the free transmission of Canadian newspapers within the Dominion." No discussion on the measure took place in Parliament, and authoritative statements of the reasons inducing the adoption of so generous a policy are not to be obtained;[319] but in well-informed quarters it is held that, in general, the leniency shown to newspapers is not due solely to the acceptance by Parliament of the arguments usually advanced in their favour, plausible and convincing as they probably are to many minds, but has always been dictated more or less by fear of the political power wielded by them; or, what is really the same thing, as a result of direct pressure at Ottawa by the newspaper proprietors, based on their influence with the electors or the chiefs of parties, and exercised in their own interests.[320]

In this view, the ultimate step taken in 1882 marked no concession to popular sentiment, but the climax of the power of the newspaper interest, and a consummation for which they had long striven.

At the same time the total abolition of postage on newspapers was in accord with the widespread feeling, which had from an early period found expression in the Legislatures of the Canadian provinces: the feeling that newspapers are of great educational value, especially in new countries and in countries with an extended franchise, such as had been the Canadian provinces almost from their first organization; that in such countries it was necessary to educate the sovereign people; and that newspapers afforded the best and most practicable way.[321]

During the period of free transmission, which continued some seventeen years, the number and gross weight of newspapers sent through the post increased enormously, and the privilege was considerably abused. Numerous publications were constantly appearing demanding free transmission, and in many cases they were of very questionable character; that is to say that, while conforming to the letter of the requirements of the law, they were often not genuine newspapers at all, but mere vehicles for the distribution of trade advertisements. The vast increase in the cost of dealing with the quantity of newspapers sent through the mails became a question for serious consideration. Heavy demands were being made by the railway companies for increases in the amount of their remuneration for the conveyance of mails, on the ground of the increase in tonnage due to the very large numbers of newspapers being sent. The actual statistics of the Post Office traffic in Canada are illuminating on this point. In 1897 the total weight of newspapers passing in the mails was 16,500,000 pounds, and the estimated number of newspapers 175,000,000. For the same year the total number of letters passing through the post was 123,000,000, and their total weight 5,000,000 pounds.[322]

In 1898 the Canadian Government desired to reduce the internal letter postage, which still stood at 3 cents, to the almost universal rate of 2 cents;[323] but the loss of revenue which such a reduction would entail was so great that they were driven to seek fresh revenue to meet the deficiency. In view of the abuses of the newspaper privilege, and the generally unsatisfactory position which had developed, this was thought to be a suitable occasion for the reimposition of postage on newspapers.[324] The rate proposed was ½ cent a pound. Opposition to the change was made on the same grounds as in 1867: that newspapers were the real educators of the people, that the dissemination of intelligence, particularly of political intelligence, was of the utmost importance, and that no impediment should be put in the way of their freest possible distribution.

The great necessity for a new source of postal revenue made it impossible, however, to continue the free privilege in its entirety, and the ½-cent bulk rate was carried. The free privilege was continued for local papers distributed within a radius of ten miles, in order to enable the country papers to compete with the papers of the large towns. The country papers are very jealous (and perhaps somewhat fearful) of the great city papers, although the telegraph has given the country papers an advantage in point of time. This is of great value in a country of enormous distances—especially in the case of daily papers—but is yet not of vital importance in the case of weekly newspapers, which do not rely so much on late news. The competition of the weekly papers of the great cities is severe; and the radius of competition even of their daily papers is considerable. The letter-carriers of Ottawa were at that time daily engaged in carrying free enormous quantities of newspapers published in Montreal or Toronto.[325]

The rate fixed in 1898 was not intended to be permanent; and in 1900, when the revenue had become sufficiently buoyant to warrant the step, a Bill was introduced to reduce the postage on newspapers to ⅛ of 1 cent a pound for transmission in the province or territory of distribution. The general purpose of the Bill was to reduce the rate for limited distances, and the province or territory was adopted as the most convenient unit of area. Newspapers were being posted literally by the ton, and the department thought it unreasonable to convey car-loads of such mail from ocean to ocean for the same rate as for any shorter distances within a province.[326] The Bill passed the Lower House, although it was severely criticized as introducing the vicious principle of provincial legislation; and "a serious aggravation of the tyrannical injustice" was that a distinctive tax would be placed on city publications, while preferential privileges would be given to country newspapers.[327]

The Postmaster-General explained that with a bulk rate it was possible to make nice distinctions of rate in regard to distance travelled, which would be quite out of the question with a rate such as that for letters charged separately on each individual item; the charge for the transportation of a letter for a short distance would be so small that no division of coin could be found to correspond to it, but with matter mailed by the ton and wagon-load, and paid for by the ton and wagon-load, the charge could well be adjusted for distance: but he admitted that he had made no calculation as to whether the ⅛ cent a pound would cover the cost of newspapers within the bounds of each province.[328] The Bill was rejected by the Senate on account of the undesirability on general political grounds of introducing any sort of distinctions based on the provincial boundaries.

The proposal was revived in another form in 1903. It was then proposed to reduce the postage to ¼ cent a pound on newspapers when the distance of transmission did not exceed 300 miles. The Postmaster-General said definitely in Parliament that the rate would not cover the cost, and, further, that the reduction would involve a loss of revenue of from $50,000 to $75,000 a year on a total revenue from newspapers of from $100,000 to $125,000.[329] The reduction was carried; and in 1908 the reduced rate of ¼ cent a pound was extended to all newspapers passing within the Dominion, when posted in bulk. The privilege is availed of by the publishers of many periodicals which are virtually nothing more than advertising media; but this abuse has not assumed serious proportions, and with the finances of the department in a flourishing state, it has not been felt necessary to curtail the privilege, although it involves great loss.[330]

NEWSPAPER POST (SECOND-CLASS MAIL) IN THE UNITED STATES OF AMERICA

A system for the distribution of newspapers by post, analogous, though not identical, with that which grew up in Great Britain, existed from an early period in America. There the privilege of franking newspapers was a perquisite, but it was not the perquisite of one officer, as in England. All postmasters exercised the privilege as part of their general privilege of franking all their correspondence, the arrangement being part of their emoluments as postmasters; and post-masterships were much sought after by newspaper publishers, who were thereby enabled to obtain free of charge the advantage of the distribution of their publications by what in most cases was the best, if not the only, available means.

The most notable example was Benjamin Franklin, who was for nearly forty years connected with the Post Office in North America, first as Postmaster of Philadelphia, and afterwards as joint Postmaster-General for the northern part of North America, and who, throughout this period, was able to circulate his publications by post free of charge. The Post Office, especially in regard to the exercise of this privilege, is regarded by Americans as having been an important factor making for a general understanding between the colonies, and a conception of the possibility of common action.[331] As early as 1757 the Crown authorities in the colonies were looking with a jealous eye on the unrestricted distribution of newspapers, and were contemplating measures for preventing the dissemination of objectionable ideas.[332]

As the friction between the colonies and the Mother Country grew in the years that followed, the Crown postmasters became more and more active in their endeavours to hamper the distribution by post of newspapers which published improper intelligence, or proclaimed improper political doctrines. In 1774 Franklin was dismissed, and his dismissal has been ascribed to a desire to impede the distribution of his publications.[333]

There is no doubt that the Crown authorities attempted through the postmasters to prevent the distribution of colonial newspapers, and it was this action which led in the first instance to the suggestion for the establishment of an independent American Post Office.[334] The resolutions of the Continental Congress by which the American office was established in 1775 did not provide for the transmission of newspapers. Nor does the ordinance of the 21st October 1782 prescribe any rates for their transmission; but licenses the postriders to carry them, presumably outside the mail, the charges made by them for the service to be retained by the riders as a perquisite.

The statute of 1792 first fixed rates for newspapers, as follows: 1 cent a copy when sent for distances less than 100 miles, and 1½ cents a copy when sent for distances greater than 100 miles. This charge was opposed in Congress, and efforts were made to legalize free transmission by extending, so as to cover the transmission of newspapers, the general privilege of franking conferred by the Bill on members of Congress, on the ground that as the Government of the country was a government of opinion, which always depended ultimately on the suffrages of the people, much greater reliance was to be placed on the confidence of the people than on any other circumstance. Such confidence could only result from the fullest information, which the people had a right to expect, not only as regards the actions of the Government but as regards the principles on which they were grounded.[335]

Some members were disposed to approach the question from the financial side, and contended that the rates proposed were not sufficient to discharge the expense of the service. The middle way between economic rates and free transmission was finally adopted.

An Act of 1794 amended the rates on newspapers and provided a further special rate for magazines and pamphlets. Newspapers might now pass from any one place to any other within the same State for 1 cent; magazines and pamphlets at 1 cent a sheet for distances not exceeding 50 miles; 1½ cents a sheet for distances over 50 miles and not exceeding 100 miles; and 2 cents a sheet for any greater distance. A suggestion was made in Congress to reduce the newspaper rate to half a cent for distances not exceeding 100 miles, and 1 cent for any greater distance; on the ground that it was desirable to encourage the distribution of newspapers from the seat of Government and the large towns, since such papers must contain more complete information than the country publications, which could only publish selections from the metropolitan papers. There was, however, a feeling that country papers performed a useful function and should be encouraged.

The rates on magazines were altered in 1825 to 1½ cents a sheet for any distance not exceeding 100 miles and 2½ cents for any greater distance, when published periodically and sent to subscribers; and 4 cents on each sheet for distances under 100 miles, and 6 cents a sheet for any greater distance, when not published periodically. In 1845 the free privilege for newspapers was first introduced, those of not more than 1,900 square inches in size, posted by the editors or publishers, being allowed to pass free within 30 miles of the place of publication. Smaller newspapers, if conveyed more than 30 miles, were charged the rates fixed by the Act of 1794 (which had been re-enacted by a statute of 1825); and newspapers of greater size were charged a uniform rate of 2 cents without regard to distance. Pamphlets, magazines, periodicals, and all printed or other matter, were to be charged by weight: 2½ cents for the first ounce, and 1 cent for each additional ounce or fraction of an ounce, without regard to distance.

The free privilege for local newspapers was withdrawn in 1847, except as regards copies exchanged between publishers. The latter privilege was continued from a desire to assist the country publisher, who seems always to have had friends in Congress, and who was in the habit of obtaining much of the information published in his papers from the great Atlantic cities, and other large towns which were centres of political or other interests. The free privilege was not long withheld.[336] An Act of 1851 again extended it to all weekly newspapers sent from the office of publication to bona fide subscribers within the county where published, provided the newspaper did not exceed 3 ounces in weight; with a scale of postages graduated according to distance for papers sent out of the county where published. A graduated scale for pamphlets, periodicals, magazines, and all other printed matter, was also established by this Act. In the following year a rate of 1 cent was fixed for each newspaper, periodical, unsealed circular, or other article of printed matter, not exceeding 3 ounces in weight, sent to any part of the United States; and for every additional ounce or fraction thereof, 1 cent additional. In 1861 the rate of postage on any newspaper, periodical, unsealed circular, or other article of printed matter, not exceeding 3 ounces in weight, conveyed over the overland route between any State or Territory east of the Rocky Mountains and any State or Territory on the Pacific, was made 1 cent. The letter rate between the same areas was 10 cents per ½ ounce.

A statute of 1863 classified mail matter, defining three groups. Newspapers, magazines, and pamphlets fell into the second group, which comprised all printed matter issued at stated intervals, but different rates were fixed for different sections of such matter. On printed matter issued weekly and sent to regular subscribers, the rate was 5 cents a quarter for publications not exceeding 4 ounces in weight, with an additional rate for every additional 4 ounces or fraction thereof. If issued seven times a week, the rate was 35 cents a quarter for every 4 ounces. If issued less frequently than weekly, the charge was 1 cent a copy not exceeding 4 ounces in weight, and small newspapers might be sent in packages and charged the same rates by weight. On transient[337] second-class matter, and miscellaneous matter of the third class—the third class included all other printed matter—the rate was fixed at 2 cents for each 4 ounces or fraction thereof.

The rates of 1863 were slightly modified in 1872, and a local delivery rate of 1 cent was established for newspapers. Two years later a new method of charging postage on newspapers and periodicals posted by publishers or newsagents was introduced. Instead of being charged on each individual packet, postage was to be charged on the gross weight of the newspapers posted by a publisher, irrespective of the number of separate packets to be handled. The rate was 2 cents a pound on newspapers and periodicals published weekly, and 3 cents on those issued less frequently than once a week. These rates only applied to such newspapers and periodicals as were mailed from a known office of publication, or news agency, to regular subscribers or newsagents, and did not apply to those for local delivery. By a statute of 1876 publications designed primarily for advertising purposes, or for circulation free, or at nominal rates, were made third-class matter, and thus excluded from the privilege. In 1879 the present rate of 1 cent a pound (bulk rate) and a revised classification were established. Matter was admitted to the second class on the following conditions:—

First.—It must regularly be issued at stated intervals as frequently as four times a year, must bear a date of issue, and must be numbered consecutively.

Second.—It must be issued from a known office of publication.

Third.—It must be formed of printed paper sheets, without board, cloth, leather, or other substantial binding, such as distinguish printed books for preservation from periodical publications.

Fourth.—It must be originated and published for the dissemination of information of a public character, or devoted to literature, the sciences, arts, or some special industry, and having a legitimate list of subscribers; provided, however, that nothing herein contained shall be so construed as to admit to the second-class rate regular publications designed primarily for advertising purposes, or for free circulation, or for circulation at nominal rates.

In 1894 the privilege was extended so as to include under certain conditions the periodical publications of benevolent or fraternal societies; and again in 1900, to include the periodical publications issued by State departments of agriculture.

It was provided by the statute of 1879 that a supplement may be enclosed with a second-class publication, without subjecting it to extra postage, provided that it is germane to the publication which it supplements, that is to say, is matter supplied in order to complete that to which it is added or supplemented, but omitted from the regular issue for want of space or time, or for greater convenience. It must, however, in every case be issued with the publication.

Since the establishment of these conditions and rates, there has been a steady and growing increase in the amount of second-class matter sent through the mails. In 1879, under the old rates, the total weight sent at the pound rate was 51,125,500 pounds. In the following year the total weight was 61,822,629 pounds; and by 1910 the total had increased to 817,772,900 pounds, that figure representing an increase of no less than 94,539,718 pounds on the total for 1909.

During the whole of this period the accounts of the Post Office in the United States had in two years only (in 1882 and 1883) shown a surplus of revenue over expenditure. In view of the vast quantity of matter sent in the mails at very low rates, the question naturally suggested itself whether, seeing that it was necessary year by year to call on the public treasury for funds to meet the deficiency in the Post Office accounts, it would not be practicable, and equitable, to obtain an increased revenue from this class of traffic. The fact that considerable abuses of the second-class mail privilege had grown up made consideration of the question the more necessary.

Periodicals obtained so great a privilege as compared with ordinary books, that publishers sought devious ways to obtain the advantage of the pound rate. Books termed a "library" were issued periodically, with a frequency sufficient to meet the requirements of the Act, numbered in series, and devoted to literature or science; were issued from a known office of publication, and with a list of subscribers. Complying thus with all the requirements of the Act, there seemed no ground on which these publications could be refused admission to the second-class privilege, and they were accordingly entered. The practice grew, and a multitude of libraries, comprising books on every conceivable subject, were distributed through the mails as second-class matter. The Act permitted the posting of sample copies, and as no limit to the number of such copies was fixed, the mails were burdened with vast quantities of sample copies of publications which, while complying with the letter of the statute, as did the "libraries," were in reality mere advertising media. The subscription list was extremely small in comparison with the number of sample copies sent out, and in many cases the subscriptions had been obtained by the offer of premiums at least equal in value to the subscriptions. Another abuse appeared. Under the law, copies of newspapers and periodicals mailed under the second-class privilege which were found to be undeliverable were, when returned to the publisher, liable to postage at the rate of 1 cent for each 4 ounces; but newsagents had the right to send second-class mail to one another, and in order to avoid the higher rate on returned copies, the publishers arranged a scheme by which the copies were returned by one newsagent to another newsagent whose office was near by the publisher's office. These abuses assumed such proportions that in 1889 the Postmaster-General, Mr. Wanamaker, brought them to the notice of Congress and asked a remedy. Nothing was done, however. In 1892 Mr. Wanamaker again complained of the same gross abuses, and especially of the book abuse, which had then become, he said, "a practice of so long standing that it has crystallized into law, allowing to paper-covered books which are simply numbered, and dated, and designated as periodicals, though in reality not so, the privileges of genuine periodicals."[338] He also attacked with vigour the sample-copy abuse.[339]

Several Postmasters-General caused estimates to be made of the actual cost to the Post Office of the handling and transmission of the second-class mail. An estimate made in 1894 indicated the cost of transportation for all mail matter as 8 cents a pound, and on that basis second-class matter at that time involved a loss of nearly 17 million dollars for transportation alone. In 1897 the total loss on account of the second-class mail was estimated at 26 million dollars. A further estimate made in 1901 indicated that the cost of transportation of second-class matter was at least 5 cents a pound, and that the cost of handling was a further 2 cents, giving a total cost of 7 cents a pound on matter for which postage at the rate of only 1 cent a pound was paid.[340]

In 1905 Postmaster-General Cortelyou submitted an estimate which put the loss on second-class matter at some $27,000,000 a year; and he recommended that the whole question should be considered by Congress, and a law enacted which should simplify the tests by which mail matter was classified.

These vigorous and oft-repeated recommendations of successive Postmasters-General, though not resulting in legislation, at length achieved a result in the appointment in 1906 of a joint Commission of Congress on second-class mail matter. The Commission held meetings in New York, and took evidence from the Post Office department and from representatives of each national organization of publishers in the United States. Their report, presented in January 1907, was in no sense conclusive. Their chief difficulties had arisen from the impossibility of obtaining from the department any statistics as to the cost of mail matter class by class—a difficulty which is inherent in Post Offices conducted on the modern system of accounting for postage of all classes by postage labels of the same type, and handling all classes of matter promiscuously; and their chief recommendations were that the department should take fresh statistics with regard to all mail matter,[341] and make an analysis of operating expenses with a view to apportionment between the various classes of mail matter. The Commission was so dissatisfied with the department's position with regard to the ascertainment of a proper division of the total expenses, that they recommended the appointment of a further Commission to examine thoroughly "the whole business system" of the Post Office, and particularly to determine, if possible, firstly, the actual cost of all the postal services; secondly, the proper apportionment of that cost between the various classes of mail matter; and thirdly, what modifications of the system of bookkeeping and accounting were desirable.[342]

By a statute of the 2nd March 1907, Congress authorized the appointment of a joint Commission "to make an investigation into the business system of the Post Office and postal service." The same gentlemen who had composed the Commission of 1906 were appointed to the new Commission, but its labours led to no practical result.

The other recommendation of the Penrose-Overstreet Commission, viz. that further statistics should be obtained with regard to second-class matter, was also adopted by Congress, and the statute authorizing the Commission on business methods also authorized the taking of statistics of the weight, number of pieces, and average haul of all classes of mail matter, separately, and the average load of all cars by which it was forwarded by railway.[343] With the statistics so obtained as a basis,[344] the department undertook the task, which, as stated by the Commission of 1906, had previously been impossible of performance, of calculating the actual working cost assignable respectively to the various classes of mail matter. A Committee, which was appointed in October 1908, and reported in November 1909, arrived at the conclusion that the cost of dealing with second-class mail matter was about 9 cents a pound. The whole subject was before the Committee on the Post Office and Post Roads of the House of Representatives in January and February 1910. Many representatives of the publishing interest attended and gave evidence, and the department's calculations were subjected to examination and criticism.[345]

Congress and the Executive were still, however, unable to arrive at a satisfactory conclusion on the question, and on the 4th March 1911 a joint resolution of Congress authorized the appointment of a further Commission on second-class mail matter, this time not a Congressional Commission. A judge, the president of a university, and a business gentleman were appointed to the Commission, which held sessions in New York in the latter part of the year, and took evidence from the Post Office department and representatives of the publishing interests. They found that the data available were insufficient to enable them to determine the total cost to the Post Office of the services performed in respect of second-class mail matter; but they were able to estimate the cost in regard to certain items of the expenses of the Post Office. The cost under those headings, which must, of course, be less than the total cost, they found as 5½ cents a pound for ordinary paid-at-the-pound-rate matter and 5 cents a pound for free and transient matter.[346] That part of the general expenses of the service which the Commission were unable to assign satisfactorily between the various classes of mail matter was estimated by the Post Office department to amount to over 2 cents a pound for second-class mail matter.[347] On this basis, of course, a heavy increase in the rate of postage would be warranted; but in view of the uncertainty of the effect of the competition of the express companies which would result from a large increase in the rate of postage, of the fact that the publishers' business established in faith of constancy of the postage would seriously suffer from such a sudden increase, and of the well-known policy of encouraging distribution of educational literature,[348] the Commission hesitated to recommend any large increase, and contented themselves with recommending that the rate be raised from 1 to 2 cents a pound.

Given that the actual cost of the handling and transporting of second-class mail matter is on the average 9 cents a pound (regarding which the department is quite satisfied) and a rate of postage for such matter of 1 cent a pound, the department has, on the face of things, a strong case; and it is not necessary to ascribe other motives in order fully to explain and justify the course it has adopted. But the publishers felt that they were not favourably regarded by the Republican Administration. They claim, and the claim is admitted in influential quarters immune from pressure from them, that they are largely responsible for the establishment of the insurgent wing of the Republican party, whose action against the late Administration proved so disastrous to the fortunes of the party. In the course of these political activities they have made enemies; and they conclude that in the Republican party, many of whose members have been disgraced, if not indeed driven from public life, there has arisen a strong feeling against the publishers. The activity of the department against the second-class rate is alleged to have begun after the publication of articles in the magazines exposing the corruption in the cities, and incidentally reflecting on members of the Republican party. Moreover, the department's most drastic recommendations have been directed not against second-class matter as a whole, but against the periodicals; and they have been made under the guise of preventing, as contrary to the intent of the statute, the dissemination at the second-class rate of vast quantities of advertising matter. Thus, the department has recommended that that portion of periodicals which consisted solely of advertising matter should be charged at a higher rate than the rest of the publication (which would be allowed the second-class rate), while nothing at all was proposed as regards ordinary newspapers, a discrimination which cut the publishers of the periodicals deeply.

The representations of the Post Office department, extending over some twenty years, and of most decisive and emphatic character, have not yet succeeded in obtaining legislation for the reform of the second-class mail scheme; but some few years back the department arrived at the conclusion that the authority of the existing law was sufficient to enable the more flagrant abuses to be checked, if not eliminated. A series of rulings were thereupon promulgated, and by this means some of the worst abuses have been removed, such as, for example, the transmission as second-class matter of "libraries," issued as periodicals. These rulings were resented by the publishing interests, with whom it was a source of great complaint that the interpretation of the statute defining second-class mail matter was left to arbitrary decision by officials of the department.[349] The intense feeling in America against any sort of bureaucracy, and especially against a bureaucracy of the central Government, leads to a natural jealousy of the exercise of this power, and as a remedy the suggestion was advanced that provision should be made, first, for questions of the interpretation of the Act to be decided in the first instance by a permanent Commission located at Washington, on which the publishers should be represented; and secondly, that there should be an appeal from the decisions of this Commission to the ordinary courts of justice.

The department admits that its position with regard to the interpretation of the statutes is unsatisfactory. Under the existing system, all manner of questions are asked regarding the private business of the publisher, and the decisions from Washington are often delayed.[350] But as against the contention of the department, which was for an amendment of the law, the publishers contended that the law, while no doubt not altogether perfect, was in the main sound and just, and the rate of postage of 1 cent a pound was as great a boon as was ever conferred by Congress. They denied that it was in any sense a subsidy.[351] They also denied the existence of a deficiency, and contended that so far from its being true that the Post Office business involved a loss, there was each year a profit of millions of dollars. This result they arrived at by estimating the cost to the Post Office of the distribution of Government free matter, and the cost of the rural free delivery, which they added together, setting the total against the deficit shown in the published accounts of the department. By this means a balance of profit was obtained for each year. The estimated postage payable at the usual rates in respect of the free matter was of course an item legitimately to be added to gross revenue; but it was doubtful whether the cost of the rural delivery service could be deducted from gross expenses, as the publishers insisted, on the ground that the service was "extraordinary."

The publishers made a further allegation. At that time the express companies cut even the very low existing cent-a-pound rate on second-class mail matter for short distances, and if that rate were raised the range of their competition would be extended. With a 2-cent rate a much greater proportion of the traffic would inevitably fall to them. This would, of course, be very advantageous to the companies, to whom, as to railways, any increase in the volume of traffic handled would be welcome. These express companies had for many years been faithful supporters of the Republican party, and behind the suggestion to increase second-class rates the publishers were convinced there was a desire on the part of the leaders of the party to reward their faithful allies.[352]

But perhaps the chief contentions of the publishers, which the Post Office was bound to some extent to admit, and would in any case find it difficult to meet, were the claim that newspapers create a vast quantity of first-class mail; and the claim that since the payment made to the railway companies in respect of the transportation of the mail is based on a sliding scale, decreasing as the volume of traffic increases, the weight of second-class matter brings down appreciably the rate actually to be paid.

Some who appeared before the Commission of 1911 were inclined to go beyond these general contentions as to the relative claims of second-class matter, and to assail the whole administration of the department from the economic standpoint; challenging especially the relations with the railway companies, and arguing that the payment made for the conveyance of mails was not equitable when compared with the charges made by the companies for similar services performed for the express companies.

Notwithstanding these contentions, there can be no question that the transmission of the second-class mail at the present rates involves the department in heavy loss; and that Congress, not unaware of this, attaches importance to the advantages which a low rate for such matter confers. The Commission were satisfied on both points. It is, however, doubted by many whether the effect of this privilege has been altogether salutary from the educational point of view. It has encouraged to an almost incredible extent the publication of periodical magazines, and many of these magazines are of a high order of merit as periodical publications. The United States leads the world in the publication of this kind of matter.[353] But the reading matter which is found in these publications is to a large extent light and trivial. The publication of serious intellectual works has shown little advance in recent years,[354] and there is a fairly widespread feeling in America that the two developments are connected. But that is a matter difficult to determine.

In any case, many people are proud of the development in periodicals, and the department, in spite of its efforts, has so far failed to secure any increase of rate. Although the Postmaster-General and the President[355] adopted the recommendations of the Commission of 1911, and urged their consideration on Congress, Congress has not taken action, and has, indeed, forbidden the department to extend certain arrangements for the use of freight trains for the transmission of second-class matter, whereby a saving of expense could be secured, a phenomenon probably explicable by the constitution of American politics.[356]

NEWSPAPER POST IN FRANCE

In France, printed matter, whether issued periodically or otherwise, seems always to have enjoyed a lower rate of postage than the written letter. Before the Revolution there was diversity of practice as regards the rate of postage charged on newspapers. Some privileged papers paid only 5 or 6 deniers the sheet, while others paid 8 deniers. All the rates were purely arbitrary. When the Committee on Public Taxation of the National Assembly considered the question of fixing the rate for newspapers, they considered not only how to regularize the rate, but also whether they could raise it. Viewed from the economic standpoint, the rate was thought by some to be inadequate.[357] The Committee was satisfied that not only would the new rates cover the cost of the service, but that there would also be a slight profit, although they felt it would not be proper, or even possible, to make that part of the business of the Post Office a really lucrative source of revenue.[358]

The decree of 17-22 August 1791 established the rate of 8 deniers per sheet for daily newspapers (and other daily publications), and 12 deniers per sheet for other periodical publications. Pamphlets or unbound books were charged a sou the sheet. Bound books were not allowed to pass by post. It is unlikely that these rates were remunerative. They were modified several times during the next few years; but although the modifications were in the direction of increase, the rates for newspapers still compared very favourably with the rates for letters.[359]

A law of 6 messidor, an IV (1795), established a rate of 5 centimes for newspapers and other periodical publications delivered in the place of publication, and 10 centimes for all other destinations; but this discrimination was removed by the law of 4 thermidor, an IV, which substituted a general rate of 4 centimes the sheet. An attempt was made by the administration to raise the rates on newspapers and books. As regards newspapers the proposal was, however, rejected by the Conseil des Anciens.

In 1796 a new rate for newspapers and other periodical publications was established, viz. 4 centimes for each sheet. For other printed matter the rate was fixed at 5 centimes per sheet.[360] This law failed to prescribe the limits of size of the sheets according to which postage was to be charged, an omission supplied by an ordinance of the 5th March 1823, which fixed the dimension of the sheet at 24 centimetres by 38. The newspapers interested tried to resist this restriction, contending that the ordinance was illegal, because the laws of 1796 prescribed no limit and the Government could not impose one by ordinance: for such a purpose a new law was necessary.

The law of the 27 frimaire, an VIII (17th December 1799), had established a scale of charges according to weight, and the rates were fixed according to the distance actually traversed, under the arrangements then existing. This restriction, which was unfortunate, because the services existing during the Revolutionary period were not of a character to serve as a basis for the future, was felt to be onerous, and numerous complaints were lodged by communes which felt themselves placed under a disadvantage.

In 1827 the rates were revised and placed on a more stable basis.[361] The principle first established in 1791, of charge according to the distance between two places reckoned as the crow flies, was re-established; and a provision was inserted in the law to meet the difficulty which had arisen as to the legality of the ordinance of 1823, purporting to fix the size of the sheets on which the postage on printed matter was calculated. Postage on newspapers and periodicals was made 5 centimes for each sheet of 30 square decimetres for all destinations; but the charge was reduced by one-half for newspapers and periodicals circulated within the department where they were published, the reduced rate being established with the view of protection of the country Press, whose subscribers were in general local, against the competition of the Parisian Press. In 1830 the rate of 5 centimes the sheet for newspapers and other periodical publications was reduced to 4 centimes. The rates of 1827 remained otherwise unchanged.

In 1850 the newspaper tax and the postage were assimilated—that is to say, newspapers were subjected only to one tax, and payment of that tax secured the right of transmission by post. The tax was at the rate of 5 centimes per sheet of 72 square decimetres or less for newspapers published in the departments of Seine and Seine-et-Oise, and 2 centimes for those published elsewhere. All newspapers on which a tax of 5 centimes was paid, were entitled to free transmission by post throughout France. Those on which a tax of 2 centimes was paid, were entitled to free transmission by post within the department in which they were published and the adjoining departments. In order to obtain transmission by post throughout France, an additional sum of 3 centimes per paper must be paid on these latter newspapers.[362] The Minister of Justice, in introducing the measure in the National Assembly, explained that it would serve a double purpose: on the one hand it would give an increase of revenue of some six millions a year; and on the other it would safeguard society against detestable doctrines, because it would fall specially on those evil newspapers and books[363] which were circulated at a low price in town and country, propagating prejudices and error, exciting the passions and corrupting the conscience of the public.[364]

Louis Napoleon Bonaparte, in 1852, desirous that there should be no obstacle in the way of his ultimate assumption of absolute power and the Imperial crown, issued a decree further restricting the Press in France. The publication of newspapers or periodicals dealing with political or economic questions, unless authorized by the Government, was forbidden; and the rates of postage in force prior to the law of 1850 were imposed on newspapers, in addition to the tax imposed by that law.[365] The same principles led to the discrimination introduced in 1856 between political and non-political papers. The former were subjected to a higher rate of postage than newspapers of a non-political character, because the Government felt it to be necessary that there should be some moderating influence to check the effect of political journals in times of intense political excitement, and adopted this expedient.[366]

The rates for printed matter had for a long period caused considerable confusion, and given rise to many complaints from members of the public. They were still determined according to the linear surface of the sheets, a method which was found to cause considerable embarrassment and difficulty in its practical application. To all other classes of postal traffic the more logical and more convenient principle of charge according to weight had already been applied, and in 1856 this principle was applied also to printed matter of all descriptions. Weight was made the basis of the charge, without reference to superficies or to distance, except that for political reasons the privilege of half-rates for newspapers circulating in the department in which they were published was continued.[367] The reduction of the actual rates made by this law was slight, and was estimated not to have any appreciable effect on the total revenue. In any case the question was "regarded less from the financial point of view than from the point of view of the satisfaction which it would give to the needs of commerce and industry and of private intercourse in general."[368] The new rate was 1 centime for each 10 grammes, with a minimum of 4 centimes for political, and 2 centimes for non-political newspapers.

This reduction of rate, together with the reduction for other printed matter, for samples, and for commercial papers, resulted in a large increase in the number of bulky packets sent by post. In order to ensure prompt delivery, it was found necessary in Paris to separate to some extent the letter-post traffic from the traffic sent at the lower rates, and the principle of providing a separate staff of postmen for the delivery of newspapers, magazines, samples, etc., was introduced.[369] The application of this principle has since been extended, and the two kinds of traffic are now dealt with in Paris altogether separately, by separate staffs of officers.

The newspaper rates were next revised in 1878. The discrimination between political and non-political newspapers was abolished, but the privilege accorded to local newspapers was continued. The new rates were:—

1. Two centimes for the first 25 grammes and 1 centime for each further 25 grammes or fraction of 25 grammes for newspapers published in the departments of Seine and Seine-et-Oise and circulating outside the department where published; and for newspapers published in other departments and circulating outside the department where published and the adjacent departments.

2. One centime for the first 25 grammes and ½ centime for each additional 25 grammes or fraction of 25 grammes for newspapers published in the departments of Seine or Seine-et-Oise and circulating within the department where published.

3. One centime for the first 50 grammes and ½ centime for each additional 25 grammes or fraction of 25 grammes for provincial papers other than those of Seine and Seine-et-Oise, circulating within the department where published or adjacent departments.

The existing rate for inland newspapers, which is based on the law of the 16th April 1895, is as follows:—

Two centimes for each copy up to 50 grammes, and 1 centime for each 25 grammes or fraction of 25 grammes above 50 grammes.

Only half these rates is charged when the papers circulate within the department in which they are published or the adjacent department.

In 1908[370] the rates in respect of newspapers sorted and bundled according to the offices of destination and the post routes, were reduced to 1 centime for the first 50 grammes and 1 centime for each additional 25 grammes or fraction of 25 grammes—half this rate being charged for papers circulating within the department of publication or the adjacent departments.

The value of a centime is roughly one-tenth of a penny. It is hardly necessary, therefore, to point out that these rates are divorced entirely from economic considerations, and are to be explained only on political and administrative grounds.[371] It has been estimated that in 1895 the loss on printed matter of all kinds was 36 million francs.

In France, as in other countries, the privilege of transmitting periodical publications at a specially low rate of postage was much availed of for the transmission of advertising matter, of publications which were essentially of the character of catalogues or prospectuses rather than newspapers properly speaking. A law of 1908,[372] passed with a view, among other things, of minimizing this abuse of the privilege, restricted the application of the reduced rate to publications issued not less frequently than once a month. The new regulation had good results, restricting, as was desired, the number of periodical publications not legitimately entitled to the privilege. It had also a result which was regarded by Parliament as undesirable: it shut out from the privilege the numerous quarterly journals of scientific and learned societies.[373]