The New York herald., 1879-03-01
POSTAL COMMISSIONS.


COUNT ON POSTAGE STAMPS, STAMPED EN-
vELopEs AND THE LIKE, AFTER MARCH 81
POSTMASTER GENERAL KEYS ORDER.
An order dated Washington. January 2s. 1870 and
signed by Postmaster General Key decreed that after
the 3ist day of March he system of selling postage
stamps, stamped envelopes. newspaper wrappers and
postal cards discount to certain designated local
agents in of the larger cities of the country
under section s92 of the Postal Regulations. be dis
continued. On that date all appointments of such
local agents heretofore made will be revoked, and
thereafter no credit to postmasters for discounts
sales will be allowed"
The promulgation of this order caused considera-
BILE excitement among number of "local agents" in
this city who have made an extensive profit on the
sale of stamps out of the allowance made by the gov
ernment as discount
The law allowing the percentage has been in vogue
for long time, being derived from section l73 OF
the Postal Code, which provides that Postage
stamps and stamped envelopes may be sold at dis
to certain designated agents who will agree to
sell again without discount under rules to be pro-
vded by the Postmaster General but the quantities
of each sold to any agent at one time shall not
exceed 500 in value. and the discount shall not
ceed fve per cent the face value of the stamps.
nor the same percentun the current price OF the
envelopes when sold in quantities"
While discretion was>alowed to the Postmaster
General to grant discount of five per cent on the a,-
thorized sale OF stamps this high figure
sanctioned. For some time two per cent was the al
lowance. but Postmaster General Marshall Jewell
subsequently reduced it to one per cent.
BONANZA.
Even at this rate few of the licensed dealers in
this city had quite neat income from this source
and in several instances the authorized agents
who settled in favorite localities sold fabulous
amount OF postage stamps ana aey9tea their entire
Mr.. Henry Il. Pearson, assistant postmaster and
acting postmaster in the absence OF Colonel James,
yesterday said = 1.-The sale of postage stamps outside
of the post Offices has been carried on to immense
extent and entailed great labor this Office without
any benefit accrung to it.. This caused by rural
postmasters disposng of stamps by the wholesale in
barter for merchandise, thereby securing for them
selves the large commission allowed by the govern
ment in lieu of salary. This evil has happily been
corrected by the recent law of Congress, which
allows a commission only on stamps cancelled at
these Offices. The postage stamps thus set III circu
laton found their way to this city and many of them
sold to local agents holding license at a large
discount. Many banks, insurance companies and
vendors Of articles, whose business is chiefly trans
acted through the mails, patronized the licensed
agents and shared with them the commissions. The
postmasters not permitted to redeem stamps
cept stamped envelopes misdirected consequently,
when these gummed papers were flooded upon New
York city, publishers and merchants receiving such
and not being able to dispose of them in
the regular OF business forced to get rid
OF the same in some manner, and their only recourse
the local agent An idea has prevailed that
Postmaster James responsible for the order of
General Key abolishing commissions. This is
received the official notification from the department
in Washington"
EXTENT BUSINESS.
Mr. Pearson continued:-"The business done in the
sale of stamps in this city is somewhat marvellous
During the administration of the late Postmaster
Kelly hundred and fifty licenses were issued
to parties all the city. Since then this
number has been decreased to eighty. But it must
not be assumed that this entire number do equal
amount Of business i'll this line. The eighty agents
may be classified foQows:-Six buy stamps
amounting to upward of $1,000 per quarter;
twenty nine buy upward of S1,00J fifteen purchase
all the way from 5000 to $1,000 worth, and thirty
purchase from $50 to $780, This makes total of
eighty agents, and in reality the bulk OF the busi
is done by six men. who derive large revenue
from commissions. The total amount of stamps sold
to these people last year little Sl.0OO,000
which commission of $4,000 has been paid.
Before any licenses granted stamps could be
purchased at any druggists stationery store,
where they were kept tor the accommodation of
regular customers or to induce trade. Even
nearly every of these stores keeps stamps for sale
without receiving any commission. No delay
noyance need be apprehcnded by the public in OBJ
tanning all the stamps envelopes ut this office and
additional force will be necessary facilitate
business in the stamp department alter this order
goes into effect, by which the department. will save
large amount OF money paid out for discounts"