Note 177 — I THE RATE FOR LETTERS (continued 2)

"As the profit on first-class matter is almost equal to the loss on second-class matter, it will readily be seen that an equalization of rates on the basis of the cost of service would permit a reduction in letter postage from 2 cents to 1 cent an ounce."—Mr. Hitchcock, Postmaster-General, evidence before Commission of 1911.