WeRead Powered by ReaderPub
Postal Riders and Raiders cover

Postal Riders and Raiders

Chapter 38: PARCELS POST “TESTS.”
Open in WeRead

About This Book

The author delivers a pointed critique of postal administration, arguing that inefficiency, lax supervision, and private interests have compromised railway mail operations. Drawing on observations and reported examples of neglected inspections, duplicated labor, and administrative inertia, the text connects political maneuvering and corporate influence to declining service and wasted resources. It blends sharp satire and direct exhortation to provoke independent thought and civic engagement, urging stricter oversight and practical reforms while documenting institutional failures and calling for greater accountability from officials and informed citizens.

Every farmer here present knows of his own experience how much time is taken in extra trips to town and city.

Now, that is real fetching. Especially before so vast a gathering of farmers as heard it!

But a Missouri “farmer” present wanted to be shown. So he fired a question at Mr. Lever. The farmer from Missouri wears the name of Caulfield. He likewise wears an abiding distrust of the parcels post. Following is his question:

Is it not a fact that the great mail order houses of the country are the ones who are really in favor of the parcels post?

There is real intellectual magneto and lamp equipment for you. Note, too, the shrewdness of this Missouri “farmer” in wording his question—the mail order houses may not be the only ones who favor the parcels post, but they are about the only ones who “really favor” it!

Well, there are over 40,000,000 residents of the country—villages and towns in this country—among them, too, are twenty millions of real farmers. These are pretty firmly of opinion that they “are really in favor of the parcels post.” There are, also, not less than 30,000,000 more residents of incorporated cities, small and large, who at least think they favor a parcels post service which will permit “mother” to send a pair of pants to her boy ten miles away as cheaply as the laird of Skibo Castle, Scotland, can send two pairs of kilts to a son of his friend’s Aunt Billy who lives in Los Angeles, California.

Of course, the people may only think they think and are sitting up nights with the windows open and their ears spread to hear their representatives tell ’em they are wrong. If so, Mr. Caulfield and Mr. Lever will probably hear from them. It takes the people some time to recognize or properly to appreciate how wise some of their representatives are—what a vast amount of charges-prepaid wisdom they have. But the people finally catch on and then—well, then there will not be so many “farmers” of the Mr. Lever variety in Congress.

But I want to give Mr. Lever another show. He’s entitled to it “under the rules.” He should have several of them—not to show his profound knowledge of the value and dangers of an efficient, cheap parcels post, but to show that a man need not spend a cent in Congress to advertise the fact that he is a “practical politician.” All he needs do is make a few hired or ignorant remarks on some subject about which the people of the country have been thinking.

Here is Mr. Lever’s answer to Mr. Caulfield’s question, as previously quoted:

The wisdom of discriminating in favor of the local merchant must be apparent to any one who regards, for a moment, the danger involved in a system (parcels post) which would inevitably centralize the commerce of the country.

Now, candidly, how could a “friend” of a parcels post service show his friendship more nicely than that? Especially if he is a “farmer?” Or even if he is not, and merely desires the farmers to think he is their friend?

Why, Mr. Lever has Mr. Caulfield shoved clear over the ropes in that answer. Mr. Caulfield, of Missouri, may have full magneto and lamp equipment, but Mr. Lever, when it comes to a friendly, high-speed spurt for a parcels post service, shows all the latest improvements. No, sirs, Mr. Lever is not merely a last year’s model. He’s bang up-to-date—axles, drawn steel; forged crank shaft with eight cams integral; continuous bearings and bearings all ground; two water-cooled, four-cylinder motors with sliding gear; “built-in” steel frame, and running on a “wheel-base” of 106 inches. Mr. Lever shows all the other “latest,” necessarily belonging to the “best seller” class among late models.

However, I have probably mentioned enough to make it clear to my readers, if not to his constituents, that Mr. Lever is fully equipped to act the part of the farmer’s “friend,” a friend of the parcels post, or of any other old thing. Some may think he carries a little too much weight for a good hill-climber. It should be remembered, however, that some sorts of “friends” do not climb hills. They skip around the hills and get what they are after while we are climbing. When farmers and others of our producing classes wise-up to the brand of vocal friendship I am “insinuatin’ about,” such representatives as Mr. Lever will last about as long as it would take a one-armed, wooden-legged man to fall off the top of the Flat Iron Building flag pole.

PARCELS POST “TESTS.”

It may as well be said here as elsewhere that such “tests” of the feasibility and desirability of a good parcels post service as Mr. Hitchcock proposes to make are but procrastinating foolery. Great Britain and every continental country of Europe has an efficient parcels post service in operation.

Postmaster Generals and railroad and express company raiders know that. The countries indicated have made all the “tests” we need have of people-serving parcels post, and every one of them derive more or less revenue from that service, there being no deficits.

Postmaster Generals and our railroad and express company raiders know all that. So, also, do our Senators and Congressmen know that. Even alleged “farmer” Congressmen know it.

Our public servants know even more than that. They know that under the International Postal Union agreements our government has entered into, our postal service today handles these foreign countries’ parcels, of either United States or of foreign origin, weighing up to eleven pounds. They also know our own postal service now won’t permit our own people to send by mail, packages weighing more than four pounds. They also know that for carrying a four-pound parcel by his own mail service the American must pay 64 cents if the parcel is for delivery in any of the foreign countries covered by Postal Union agreement,[17] but if sent by some one in any of those countries for delivery in this, the sender may make up a parcel weighing as much as eleven pounds and for its delivery will have to pay only 48 cents.

I say that our mail carriers and public officials know these things. The facts as stated must be known of the Postal Union agreements. On request, the Postoffice Department does not hesitate to give this information to anyone. The following is a paragraph taken from a department communication. It was sent in response to a request made by Mr. Alfred L. Sewell, who wrote a most informative communication that appeared in the Chicago Daily News of date November 6, 1911. I take the quotation from Mr. Sewell’s article.

Mailable merchandise may be sent by parcels post to Bahamas, Barbadoes, Brazil, Bermuda, Bolivia, Danish West Indies (St. Croix, St. John, St. Thomas), Colombia, Ecuador, British Guiana, Costa Rica, Guatemala, British Honduras, Republic of Honduras, Haiti, Jamaica (including Turk islands and Caracas), Leeward Islands, Windward Islands, Mexico, Newfoundland, Nicaragua, Peru, Salvador, Trinidad, Tobago, Uruguay, Venezuela, in the western hemisphere, and to Australia, Japan and Hongkong in the east, and to Austria, Belgium, Denmark, France, Germany, Great Britain, Hungary, Italy, the Netherlands, Norway and Sweden in Europe. The postage rate is uniform at 12 cents a pound, or fraction of a pound. A parcel must not weigh more than eleven pounds, nor measure more than three feet and six inches in length, or six feet in length and girth combined.

Then why prattle about a “test” as to the desirability and practicability of a good, cheap parcels post service in this country; one that will serve our own people?

Especially why prattle about such a parcels post service on a few selected rural routes? It is not only foolishly silly, but it looks suggestively wrong—as if there was some ulterior motive back of any suggestion of such a test. “Why?”

Well, if such test is made under regulations suggested by the Postmaster General, the only parcels that service, or “test” service, is designed to carry, are such as originate on a selected rural route and are for delivery on the same route or on a route immediately connected with it. That is, as I understand Mr. Hitchcock’s recommended regulations, any farmer or villager along the selected “test” rural route may send a package (weight and rate of carriage yet to be decided upon) to any other farmer or villager on the same route or connected route, or to a resident of the town or city at which such route originates or starts.

If such a farce can be seriously thought of as a “test” of what use and economic value a nation-wide parcels post service would be to our people, even to the people residing on the test routes, it will take some graduate of a foolery school or foreman in a joke foundry to so think of it.

Let’s see. A farmer may send a jar of butter, box of eggs, crate of fruit or vegetables, etc., to the village storekeeper and get his pay for the consignment, “in trade” usually. By writing the storekeeper an order, postal card or letter, the farmer may get on the next round of the carrier what he desires. That is, he will get what he has asked for if the storekeeper has it in stock. The farmer, or the farmer’s wife, may do the same thing in the event that the consignment of their products, presuming that the “regulations” will permit the carrier to handle perishable goods, goes no farther away than the county seat or other town or city from which the rural route starts. They can also send such parcels to any railroad station on the route for shipment to any more distant point. In such case, however, the farmer must pay an express carriage charge from the local railroad station to the destination of his shipment.

But enough of this local application of the proposed “test” regulations. It will readily be seen that if the farmer or villager on a selected test route desires to send a parcel, not above the regulation weight—whatever that may be—to any point not on the same route, he will have an express charge to pay—whatever that charge may be. And if he orders something, inside the regulation weight, from some factory or city not on his carrier’s route, he must also pay an express charge for its carriage to his local railroad station. If he wants the article or goods delivered at his home by the rural carrier, he must pay an additional charge—the postal carriage charge, whatever that may be.

As a “test” of the service value of a parcels post, could anything be more absurd? If so, it would be difficult to frame it up. Such a “test,” however, will still leave the raiding express companies in position to hold up the selected “home circle,” rural-route residents on all shipments, which go to or come from any city or point outside the home circle—and that is about what, if not just what, the proposed “test” is designed or intended to do, or so it appears from the ladder top.

In this connection it should be noted that the rural-route delivery enactment, or the department regulations under which it was to be applied, carried an express protecting “joker.” If not, why was the rural route carrier required to furnish a cart or other carrying vehicle of only twenty-five pounds capacity? Was it valid for ulterior reasons which named so small a weight? Would it have cost the government any more money for rural carrier service if a maximum weight of 500, or even of 1,000 pounds, had been named for the carrying vehicle?

The reader may answer. To The Man on the Ladder, though, that 25-pound requirement looks to be of doubtful mail-service value, if, indeed, not suspiciously queer.

It was carefully figured in 1900 that our rural, or non-railroad, communities alone lost $90,000,000 a year in excessive express charges and delays in delivery by reason of the criminal apathy of their government in the matter of furnishing even a reasonably adequate domestic parcels post service, such, for instance, as that furnished by the German government. The German government carries an 11-pound package anywhere in the German empire or in Austria-Hungary for 12 cents.

To aid the reader, I give, following, a table covering the data essential to a fair understanding both of the excessive pay for a service which our government should render for a tenth of the money and, also, of why our express service is inconvenient—is wasteful and expensive—by reason of the distance the express offices are from the people ordering. This last is clearly shown by comparing their number with the larger number of postoffices in the several states named.

THE WORM UNCOVERED.

STATE. No. of express offices. No. of postoffices. Average express charge. Amount saved by parcel post at 12c. English merchants’ advantage at 48c. German merchants’ advantage at 58c. Mexican merchants’ advantage at 66c.
Alabama 334 2,445 $1.33 $1.21 $0.85 $0.75 $0.67
Arizona 41 202 3.89 3.77 3.41 3.31 3.23
Arkansas 262 1,880 1.66 1.54 1.18 1.08 1.00
California 586 1,659 3.16 3.04 2.68 2.58 2.50
Connecticut 108 511 .61 .49 .13 .03
Georgia 451 2,657 1.33 1.21 .85 .75 .67
Illinois 1,495 2,622 1.09 .97 .61 .51 .43
Kentucky 471 2,892 1.22 1.10 .74 .64 .56
Maine 248 1,254 .61 .49 .13 .03
Michigan 737 2,161 1.22 1.10 .74 .64 .56
New York 1,309 3,735 .61 .49 .13 .03
Ohio 1,362 3,398 1.09 .97 .61 .51 .43
Oklahoma 30 576 2.10 2.07 1.62 1.52 1.53
Pennsylvania 919 5,206 .61 .49 .13 .03
Rhode Island 90 153 .61 .49 .13 .03
South Dakota 229 639 2.67 2.55 2.19 2.09 2.01
Texas 662 2,968 2.19 2.07 1.61 1.61 1.53
Virginia 263 3,468 1.22 1.10 .74 .64 .56
Whole country 20,155 60,000

Had I the space at command I would print the figures for the whole United States. However, it will be seen that the states I have taken are fairly representative of the whole country—the populous with the sparsely settled.

The figures as to number of express and postoffices are from the United States census for 1900.[18] The estimates are made on the parcel weight of 11 pounds. Eleven pounds is the English domestic parcels weight that is carried anywhere in the United Kingdom for 24 cents or, by international postal agreement, to any point in this country for 48 cents. In passing, it might be noted that for the year 1900 the British postoffice turned into its national treasury over $18,000,000 profit. It might also be well to notice that English merchants imported nearly five and a half million dollars value by parcels post and exported nearly twenty and a half million dollars of value by means of the same service.

But to get back to our 11-pound parcel.

Germany carries it anywhere in her empire or in Austria-Hungary for 12 cents.

Switzerland carries it for eight cents, and several other countries are now trying to reach the German weight-rate for domestic delivery.

So we will take as our package of eleven pounds and figure its delivery at any postoffice in the United States for twelve cents.

One more point about this table.

The reader must keep in mind that we now deliver packages up to eleven pounds from any person—merchant, manufacturer or other—living in England, Germany or Mexico. It is delivered for the English shipper (by our mails) to any United States postoffice for 48 cents; for the German shipper for 58 cents or for the Mexican shipper for 66 cents.

The three right-hand columns of the table show how much cheaper the English, German or Mexican merchant, or other shipper, can have his eleven pounds of merchandise carried to Rabbit Hash, Ky., Springtown, Mo., Gold Button, Cal.—to any postoffice in the United States—than the New York merchant can send his 11-pound parcel to the express office “nearest” the customer ordering.

The express charges given are the carefully figured averages for the states named for carriage from New York City. The third column gives the average express charge (at rates ruling in 1900) from New York City to the states named. The fourth column gives the savings to the purchaser—the merchant or the consumer—if the 11-pound parcel were carried, as it should be carried, in the mails for 12 cents. The first two columns give the number of express offices and postoffices in the several states named and are intended as conclusive proof that millions of our people are much nearer to a postoffice than to an express office.

With this preliminary, let us now comment on the table. Don’t side-step it because it’s figures—unless, of course, you’re some hired man of the express or railroad companies.

The total of express companies in the footing is that given in the census report for 1900. There are probably several hundred more now. The corresponding total given for the number of postoffices is correct for July 1, 1910. There are fewer postoffices now than in 1900, the establishment of rural route delivery having reduced the number greatly. The reader must keep in mind that the figures named in headings of the three right-hand columns cover a “delivery” charge in addition to the home-rate mailing rate for the countries named. This delivery charge was covered in the international agreements.

If the reader will study that table a little he will learn several things.

If we have one hundred millions of people in this country, there is an express office for about each 5,000 of them, while there is a postoffice for about each 1,666 of them.

There is an express office to about every 175 square miles of our territory, while there is a postoffice for about each 60 square miles of our territory.

The reader will have no trouble to see by the table that, if he ordered an 11-pound lot of hose and shirts or phonograph records, photograph films or other goods from New York City for delivery in Chicago, he would get the goods by a properly served parcels post for just 97 cents less carriage charge than he now pays the express companies. If he live in Los Angeles, Cal., he would get the goods from New York for $3.04 less. Even if he lived in Buffalo, N. Y., he would get those eleven pounds of goods from the metropolis of his state for 48 cents less than he now pays the express companies.

Be sure, however, to notice those three right-hand columns.

You will observe that the Right Honorable John Bovine, an exporting merchant of London—or a manufacturer, if you please, of Manchester or Leeds, England—can send that 11-pound package to you in Chicago, Hot Springs, Fargo or elsewhere in the United States—send it by mail, which no American merchant or manufacturer can do—at from 90 cents to $3.00 less carriage cost than the New York merchant can send it to you by express—the only means our present laws and methods permit him to use.

Baron Von Stopper, an exporter of Berlin, likewise has a large advantage over the New York merchant in supplying your parcel demands. Even Senor Greaser of the City of Mexico, can ship—by mail—eleven pounds of kippered tamales or sombreros to any point in the country, save ten states within short-haul range of New York City, and have an edge of 30 cents to $3.23 over his New York City competitor in supplying your parcel order wants.

Great, is it not? Fine system, is it not, to “protect home industries?” To build up “foreign trade?”

But, it is not quite so bad as it looks for the very reason that our “postal agreements” recognize the “tariff wall” that is built around certain “infants” in this country. Your goods from England, Germany or Mexico must be of our “free list” kind, otherwise they must pay a rake-off to the government. As that is pretty stiff, you don’t order many parcels from abroad. You buy home products—thus paying the tariff rake-off to the protected “infant” instead of the Government.

Does it not appear that we American citizens are an easily “worked” bunch?

In connection with the tabulation just presented, should be noted the fact that millions of our people live in non-railroad communities—live, often, many miles from any express office, while a postoffice may be near. If these people have pressing need for any article of merchandise weighing over four pounds it cannot reach them, under existing law, by mail. They must order it sent by express and make the long drive to the nearest express office to get it.

The article may be one needed for the health of the family or it may be a rod, a gear wheel or other part of some machine that has broken in a critical hour of need—any one of a hundred needs, delay in supplying which costs money.

It was carefully figured in 1900 that our rural, non-railroad communities alone lost $90,000,000 a year in excessive express charges and delays in delivery by reason of the peculiar if not studied apathy of their government in the matter of furnishing even a reasonably adequate domestic parcels post service.

The hypothetical rate (1 cent a pound or $20.00 per ton), for parcels carriage and delivery by post is low—maybe a little too low. If so, it is only a very little, if it is figured to have the rate cover only the actual cost of the service. A nation-wide parcels post service, if properly organized and directed, would, it must be remembered, handle all the short as well as the long haul business. It would not, as now, permit a collusive raiding arrangement between the railroads and the express companies by which the latter get most of the short-haul shipments and leave most of the long-haul parcels to be handled by the mail service.

I see by a local press item, that the Senate Committee on Postoffices and Postroads is going to propose in the bill it is drafting that parcels of eleven pounds in weight be carried by the mail service for 50 cents—10 cents for the first pound and 4 cents for each additional pound or fraction thereof, up to the maximum of 11 pounds. Of course, a rate of 50 cents for the carriage of 11-pound parcels would be a great betterment over the present rate and weight regulations. But a rate of 50 cents for an 11-pound package is away too high, figuring on short and long haul parcels, unless it is intended to make the service a revenue producer, which it should not be. The committee, I gather from the news item, has recognized the fact that a 50-cent rate is too high on short-haul matter and are considering the recommendation of a lower rate for it—a distance scale or schedule of rates. It is to be hoped that, if the proposed bill becomes law, it will carry such a provision.

It is said the committee decided upon the weight and rate limits after an “exhaustive investigation of all the parcels post systems of the world,” and it was pointed out that this investigation disclosed the fact that only “five powers” reported deficits in their postal services in 1909—Luxemburg, Chili, Greece, Mexico and Austria—the deficits ranging from $7,437 in Luxemburg to $1,693,157 in Austria. Of these, it will be noted, all save Austria are small or only partially developed countries. None of them have rail or other transportation facilities at all comparable to those of this country. Yet our government, with its excessive parcels rate and ridiculously low maximum weight limit on parcels reported a deficit of $17,441,719.82 in its postal revenues for 1908-9, and $6,000,000 in 1910.

Whatever the action that may be taken by the present or a future Congress looking to the betterment and to a cheapening of the nation’s parcels post service, one thing must be done if such action be made effective—if it yield the results it is alleged are expected of it. Such action must carry provisions that will effectively break up the present collusive understandings and arrangements between the railroads and the express company interests, which arrangement has for years been raiding the postal revenues on the one hand and, by greatly excessive rail and express rates for carrying parcel freight, has been looting the people on the other.

This can be—and should be—done. There are two actions which may be taken by the government, either of which I believe would accomplish that most desirable and necessary result.

On previous pages (pages 227 and 228), will be found quoted a section of the law of 1845—a law for the establishing and regulation of the government mail service. On the pages 256-257 will be found a most instructive discussion of the law by Mr. Allan L. Benson. Turn back and read those pages. Mr. Benson is always worth a second reading.

That it was the intention of the legislators of that time to make the carriage, handling and delivery of letters and “packets” (small parcels or packages of any sort of mailable matter), a government monopoly, there can be no valid reason to doubt. That the express companies have operated and are operating in violation of Section 181 of that law, there can be no valid reason to doubt. That Section 181 of the enactment of 1845 is good, sound law today, there can be no valid reason to doubt. That the express companies have operated, and continue to operate, in violation of that law—in open defiance of it—and are therefore engaged in a criminal traffic, there can be no valid reason to doubt.

True, they have a very peculiar court decision to protect them in their violation of that law. I call it a “peculiar” decision. A more fitting term might be used in describing that court decision, and the use of such a term would be fully justified.

One of the two actions which Congress might take would be to amend Section 181 of its Revised Statutes so that even a yokel, as well as a Federal Judge, may clearly see that the carriage of packages and parcels, as well as of “packets,” which do not exceed the maximum regulation weight and are of mailable class and kind, is “intended” to be the exclusive privilege of the government.

Such an amendment to the law would force the express companies out of business.

The other action which could be effectively taken would be to make the parcels post rate so low and the maximum weight of parcels so liberally high that the railroads and express raiders would quit of their own accord, which they would do as soon as their present tonnage of loot is seriously cut down. Nothing would cut into that lootage deeper or quicker than would a service rated and weighted parcels post.

I have been severe in my strictures and condemnation of the express and railway raiders. In evidence that my condemnation is deserved I desire to quote two or three people—people who have made a careful, painstaking study of the game these raiders have played, and yet play, and of the practices and tricks which make it a “sure thing” for the high-finance gentlemen who play it.

Mr. Albert W. Atwood wrote a series of three most informative articles for the American Magazine under the caption, “The Great Express Monopoly.” They appeared in the American in its issues for February, March and April, 1911. I trust the publishers will not take unkindly my quoting Mr. Atwood. He presents some facts which so conclusively evidence several points that I cannot resist the appeal they make for quotation.

In evidencing the fact that the railroads own and control the express companies and also showing how that ownership and control was obtained and is maintained, Mr. Atwood writes as follows:

It has frequently been asserted by merchants and shippers that the stock issues of the express companies are merely a device to make possible the exaction of unreasonable charges. Perhaps the most direct case in point is that of the Pacific Express Company, organized in 1879 to do business on the Union Pacific and Gould Railroads. Before the Indiana Railroad Commission John A. Brewster, auditor of the company, recently testified that there were twelve stockholders and $6,000,000 of stock. On pages 784-785 of the record there appears this colloquy:

Q. What did you do with that stock, Mr. Witness?

A. The capital stock was given to the Wabash, Union Pacific, and Missouri Pacific for the rights, franchises.

Q. For what rights?

A. Franchises and rights to do business.

Q. We begin to understand it; it wasn’t understood before that; nothing was received by the Pacific Express Company for the issue of this $6,000,000 of stock? Do these railroad companies own the stock?

A. Yes, sir.

Q. These twelve stockholders are the railroads. The railroads get these 6 per cent dividends on the stock?

A. Yes, sir.

Before another State Railroad Commission an officer of the company stated that so far as he knew and so far as the records show no cash was received for the $6,000,000 stock. The Illinois Railroad and Warehouse Commission has decided this stock was issued in fact and in law without consideration. Ostensibly the stock was issued by the express company in exchange for the right to do business over the lines of the railroads, but all the express companies pay a fixed percentage of their gross receipts, ranging from 40 to 57½ per cent, to the railroads over which they operate.

On the question as to whether express companies operate at a profit or not, Mr. Atwood writes as follows of this same Pacific organization:

Whatever legal view we may take of this curious stock issue, there is no room for doubting that it has served as a device for the extortion of money from the shipping public, for express charges are made high enough to more than pay dividends on the stock. Starting in business with no capital except such as may have been temporarily loaned to it by the railroads in control, the Pacific Express Company has paid dividends of $8,334,000 in twenty years and in addition has been paying to the railroads, which owned all its stock, about 50 per cent of its gross receipts of more than $7,000,000 a year. A large block of the stock recently changed hands at $200 a share, and yet we have seen how it was issued without consideration in cash or property. Indeed it is said the company operated for eight years before the stock was issued at all.

In speaking to the same point as applied to the United States Express Company, Mr. Atwood calls attention to the fact that 55 per cent of its “stockholders” have entered suit to wind up the company’s affairs on charges of mismanagement by its dominating officers. Mr. Atwood further writes:

Although the gravest of charges of mismanagement and waste of assets have repeatedly been made against the directors of the United States Express Company, a profit of almost 15 per cent was earned by the company on the capital invested in the express business in the year 1909. This profit would have been still greater had general trade been normal, and had there not been a hiatus between the loss of one large contract and the securing of another. That the stockholders have not received all the profits proves nothing. Millions have gone into unnecessary real estate investment and large salaries have been paid, but earnings on the capital actually invested have clearly shown that even under a management whose good faith and ability is being challenged in the courts there is an ample return.

As long ago as 1875 a writer in Harper’s Magazine said the express business had already created fifty millionaires, a statement which does not tax the credulity of anyone who casts a glance at the dividend record of these companies. To use the calmly judicial words of the Census Bureau: “In no other business is it probable that so little money, comparatively, is invested where the gross receipts are so large.” We have seen that new capital is not a necessity of the express business. Unlike the railroads, new security issues to raise capital are never sold to the investing public.

The cappers for railroad and express interests, keep the atmosphere agitated with talk about the “uncertainty and irregularity” of the quantity of express matter to be carried, “the excessive taxes paid,” etc. In answer to such bubble, Mr. Atwood has this to say:

While this may be theoretically true, the experience of years has shown that the patronage of these companies has been fairly regular, remunerative and growing. Not only will a study of the gross receipts prove this contention, but further confirmation will be found in the remarkable series of excessive dividends. “We do not feel that any extravagant return should be permitted upon the business of these companies,” said the Interstate Commerce Commission in Kinde v. Adams et al., “for it involves none of the elements which entitle an investment to a high return.”

When the Adams Express Company enriched its shareholders with a 200 per cent extra dividend in 1907, stress was laid upon the increase in taxation throughout the country. How ridiculous this is can be seen from the fact that the Adams Company paid only $145,184 in taxes in the entire fiscal year of 1909, and $202,234 in 1910, although its extra dividend alone amounted to $24,000,000. Profits on stock and bond speculation amounted to $418,979 in the year 1909, and $1,943,889 in 1910. The American Express Company, with its huge resources, paid but $283,951 in taxes in 1909. In the same year the volume of its banking business alone amounted to more than $250,000,000. In at least one important state, the express companies paid no taxes until a few years ago and in Indiana the companies had the audacity to tell the Tax Commissioner that they had little or no tangible property in that state. When Congress voted to put a tax of two cents on every express transaction to raise revenue for the Spanish War the companies made the shipper pay, and when the shippers objected fought the case to the highest courts.

At this point the question naturally arises as to how the express companies have been able to carry on for so many years such a perfect system of extracting money from the public without being seriously molested. The answer involves a knowledge of the relations existing between the railroads and the express companies, and a knowledge of the complete monopoly which exists in the express business—a monopoly made possible only because of these very relations.

In Pearson’s Magazine appeared two forcefully written articles by Mr. Allen L. Benson on the parcels post. The articles appeared in Pearson’s in February and March, 1911. In his February opening and closing Mr. Benson says some things to us and says them with a kindly bluntness which we should appreciate:

Is it a pleasure to you to be treated as if you were a fool? Do you never tire of acting like an organ-grinder’s begging monkey?

These questions are put to you in good faith. I have no desire to insult you. I know you are not a fool. I know you don’t like to beg. Yet here you are again, with your little red cap on and your little tin cup out, begging for a parcels post. Begging from those whom you should order. And the gentlemen from whom you beg treat you as if you were a fool.

Perhaps you believe these statements are not so. I shall soon show you that they are so. But before we go down this interesting parcels-post road, let us hang a lantern to the wagon-tongue. You will understand the scenery better if you see it by the light of this particular lantern. Here it is:

Bad government is largely made possible by the mistaken opinions held toward each other by the governing classes and the governed. By “governing classes” I don’t mean Presidents and Congresses. I mean the great capitalist interests that make Presidents and Congresses. The governing classes underestimate the intelligence of the people. That is why the governing classes are always in process of yielding something to the people. Depending upon the stupidity of the people, gross wrongs are inflicted that are righted only under force, inch by inch.

The people, on the other hand, have too exalted an opinion of both the intelligence and the patriotism of those who control the government. They have no good opinion of the patriotic impulses of the great capitalists, but they fail to note that the great capitalists are the National government. Mr. Morgan in Wall street they recognize. But Mr. Morgan in Washington, disguised as Uncle Sam, they do not recognize. Therefore they behold him with a certain veneration. They have been taught, since childhood, to look up to Uncle Sam as to a father. He is the government in breeches. The people do not always agree with the men who govern them, but they always agree with the government. The grand old government of the United States looks good to them. It looks good to them because it seems to embody the power, the will and the virtue of the people.

All of which is not true. No government is much better than the men who control it. If the men who control it are bad, the government is bad. If a few control it, the rest do not control it. If a few use it to get more than belongs to them, the rest cannot use it to get what belongs to them. If a few control the government to rob the rest of the people, the government is not the friend, but the enemy, of the rest of the people.

The United States government is and long has been controlled by a few rich men. These men have used and are using the government to enrich themselves at the expense of the rest of the people. I do not mean so say that the government never performs an act that is of service to all of the people, but I do mean to say that when there is a conflict between the interests of the few who control the government and the interests of the rest of the people, the government is almost certain to take the side of the few as against the many.…

The little guiding group of rich who tell you that a high tariff helps you is the same little guiding group that tells you a parcels post would hurt you.

Is it a pleasure to you always to be treated as if you were a fool? Do you never tire of paying 16 cents a pound on mail packages limited to four pounds, when there is hardly a little South American republic or fourth-class European state that will not carry at least eleven-pound packages for a cent a pound or less?

Think of it—we have entered into agreements with forty-three nations that have the parcels post to receive and deliver their parcels when directed to any person in this country; we are permitting the Philippine Government to establish a parcels post; we have agreed to receive in this country big packages at low rates for delivery abroad; but we ourselves have no such rights among ourselves. We must not only pay tribute to the express companies, but we must believe that it is good for us to do so.

If the American people only knew their power; if they only knew their power! If they would tear off their party labels and vote as they talk at home among their neighbors, they could push this country half a century ahead at the next election. Everybody knows something is wrong, but almost everybody votes the thoughts of those who make the wrong.

Shall we never vote for ourselves?

The italics in the last paragraph quoted are mine. So, too, are the sentiments of that paragraph—both the expressed and the implied. That is I believe in them—I believe in them hard and stubbornly. If my readers will think hard about them for a few minutes, I feel confident they will conclude that it is about time for them, for all of us, to act on Mr. Benson’s advice—tear off our party labels and begin “to vote for ourselves.”

In support of his charges of bad faith on the part of the government in giving the people a serviceable parcels post, Mr. Benson’s remarks are most illuminating. He makes reference to a public or semi-public document of the government, written by one Mr. Turner and proceeds as follows:

“‘This will open a great business for American retail merchants,’ wrote Mr. Turner. ‘Brazil can be flooded with catalogues. This information, in advance, will enable those desiring to go after business to prepare for it.’

“Mind you, these are only occasional sentences from his enthusiastic article. He dwelt at length upon the eagerness of the Brazilians to buy such articles as we make. He even became specific and enumerated some of the articles that could be advantageously sent by parcels post. ‘This opens up great possibilities for the retail shoe houses,’ he said, for instance, ‘as elegant shoes are worn.’ Also, there was a great market for gloves, embroideries, ribbons, silks, stockings, and underclothing.

“Here, then, we have the spectacle of the United States Government making statements to business men through a publication that the common people never read, that are directly opposed to the statements that are made to the people of the United States in congressional debates and other publications.

“Now, ask yourself these questions:

“Would the establishment of a parcels post by Brazil, which we have permitted to extend to this country, open any markets for Americans in Brazil if parcels-post rates did not permit American merchants to deliver their goods in Brazil at reduced cost?

“Again: If a parcels-post in Brazil will enable American merchants to lay down their goods in Brazil at reduced cost, why wouldn’t a parcels post in the United States enable American merchants to lay down their goods in the United States at reduced cost?

“Furthermore: If reduced carrying charges would enable American merchants to capture Brazilian trade by reducing selling prices, why wouldn’t reduced carrying charges tend toward lower selling prices in the United States?

“Finally: Is there any reason on earth why the United States Government, which is opposed to a parcels post in this country, through an official publication, welcomes a parcels post in Brazil—is there any reason except the one fact that there are no American express companies in Brazil?

“Figure it out for yourself. I have figured it out for myself. As I figure it out, the United States Government is treating us as if we were a little weak in the head; as if we are just foolish enough so that it was safe to print, in a semi-public official publication, an acknowledgment that all of its excuses for not giving us a parcels post are really impudent lies.…

“‘Should the mail trade have a government subsidy?’ asked one gentleman who represented an association of jobbing firms. Let us see how much honesty there is in this question. A subsidy implies the payment of money, either for nothing, or for something that is not immediately received in return. That is what these same rich gentlemen mean by subsidy when they ask you to subsidize American ships. What element of subsidy would there be in a parcels post that enabled the government to derive a great profit from the mail-order business? We have all the machinery for handling ‘packets’—costly postoffice buildings, cars, letter carriers, rural mail carriers. Why not use them? Why not let the rural mail carrier, whose average load is now 25 pounds, carry 500 pounds at a cent a pound? The postoffice department would earn $40,000,000 more a year if the rural wagons were loaded to the 500-pound limit.

“‘The fact is,’ said the same jobber gentleman, ‘that the United States Government cannot carry merchandise by parcels post without having to meet an enormous annual deficit for conducting the service.’ The fact is that the fact isn’t. What brazen effrontery to declare that the government would lose money carrying packages at a cent a pound, when the German government makes money by carrying packages at a little more than half a cent a pound! It is true that German rates are based upon distance, but it is also true that Germany, without any mail monopoly, competes with all comers and beats them out with low tariffs. The German government can compete with the German express companies because the German parcels post will accept packages up to a weight limit of 110³⁄₁₀ pounds, while our Government turns over to the express companies everything that weighs more than four pounds.

“Furthermore, if the carrying of packages is such a hazardous business that our Government should not dare to attempt it, how comes it that the express companies have become rich at it? The combined capital of the express companies is a little in excess of $48,000,000. For years, the big stockholders in express companies have been apoplectic with wealth. All of this money came from somewhere. All of this money came from those who consumed products sent by express. Only a few weeks ago the Interstate Commerce Commission brought out the fact that the Adams Express Company’s business in New England yielded a profit, in 1909, of 45 per cent, upon the investment. Yet, there was nothing brought out in the proceedings to show, that the Adams Express Company was gouging New England any harder than it was the rest of the country, or that the other express companies were not doing to the rest of the country approximately what the Adams was doing to New England. If you had the Government’s equipment for handling express matter, would you feel particularly frightened at a proposition to give you a monopoly of the ‘packet’ business at an average rate almost twice that of the German Government’s average rate?”

Knowing that my readers have not wearied of Mr. Benson, I shall presume to take further liberties with his articles on our subject. His handling of the point I have raised—railroad control of the express companies—is so informative and so able that I would do neither my readers nor my subject justice were I not to quote him and do it right here: