Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-11-28
As 70 POSTAL ABUSES
Annual Report Of Postmaster Cen
eral Smith Made Public.
Tells OF Reforms.
Bogus Second Class Mail Matter
Has Cost the Government
Many Millions.
Many Publications Cost Govern.
ment More Than the Publish
ers..Rural Delivery.

erS..kural Delivery.
Washington, Nov. 2s.-The annual re-
| port of Postmaster General Charles En-
DRY Smith was made public today. 1t is
largely devoted to review of abuses
which exist and have existed in the adj
mission of matter to the second class
post age rate of / cent a pound and to
the reforms which have been inaugu-
rated. Mr.. Smith shows how tremen-
dous and just saving can be made to the
government. The report in part fol-
lows:
"In my annual report for 1899 / said:
The most urgent need OF the postal
service is the rectificatinn of the enor-
nous wrongs which have grown up in
the perversion and abuse of the privil-
eye accorded by law to second-class
matter Time and experience only en-
phasize this statement. 1t is the most
urgent need. because it aims at the one
great overshadowing evil OF the serv-
ice. and because 1t underlies and over
tops Vail other reform and advance. 1t
would relieve the department from one
oppressive burden which cripples and
weighs 1t down, and which STANDS as
constant and formidable barrier against
Improvement and progress for the BEN
eft of all the people in many directions
Deeply impressed with this conviction,
the department has taken positive
steps in orders issued on July 1, 1891, to
correct the abuse and accomplish sub
stantial reform, so far as 1t is possible
by administrative action.
Under the practice hitherto prevail
ing there has been a great inducement
to these private publishing enterprises.
The two cardinal factors have been
cheap and nominal postage. The pro-
duction of legitimate newspapers and
involves costly news service,
large editorial staff, expensive corps OF
contributors, and all the elaborate ma
chineryiof complete intellectual and
business organization. But the manu-
facture OF the kind Of papers and PERI
odicals which do not come within the
terms OF the law costs very little. The
chief items are white paper and distrib-
ution. In 1885 the postage rate on sec
ond class matter was reduced from 2
cents a pound to cent. The price Of
white paper at that time was nearly 81
cents pound. Since then It has gradu-
ally declined to cents a pound or less,
and with this great and concurrent re-
duction in the cost both of raw material
and distribution, there is a direct and
immense premium on these illegitimate1
outgrowtfls. The result is the inspiring
ing of thousands of so-called periodicals
which are established primarily for ad-
vertising purposes.
"The extent Of the completely of the
in these purely private en-
terpmses is rot generally realized. The
statement will probably be surp, ising
that In the case Of hundreds Of such
wherever the publisher
spends 81 900 in his venture the govern
meat spends not lese than $4,000 In car
rying on that publishers business, and
wherever he puts 100000 into its rum
ming expenses the government puts in
not less than 100000. Astonishing as is
this statement, 1t is easily made plain.
AS already indicated. the kind of pubii-
cation in question involves very little
OF the cost of the legitimate newspaper
or periodical. 1t has no news service.
It's editorial staff consists of single
hand for scissors and paste pot. The
composition and presswork reduced to a
single copy or pound are infinitesimal.
The only material expense is the cost OF
white paper. which runs about cents
pound. That is the publishers side OF
the account.
~, ants cfd do N
items. The first is transportation. The
entire circulation Of these papers is thru
the mails, and the government pays for
carrying them not less than cents a
pound, on which 1t gets back / cent.
The second item is handling. 1t has al
ready been shown that this cost is at
least 2 cents a pound It results that for
every cents the publisher pays toward
the cost OF the business the government
pays 6 cents, and for every $1,000 con-
tributed by the publisher the govern
ment contributes not less than $4,000. In
other words, the government Is the sen
Tor partner on the debit side of the bus
mess. It furnishes the larger part OF the
capital, and while 1T pays about three
fourths Of the expenses all OF the re-
ceipts go to the private partner.
..There is single periodical or which
the copies sent thru the mails for the
Quarter ending March 30, 1901, averag-
ed 223, 6ss pounds for each issue, or
about 112 tons or nearly eight car loads,
reckoning the weight of car load OF
paper at 10000 pounds. For transport
ing each issue of that periodical the gov
eminent actually paid $11,184.40, against
which 1t collected $2,236.eS in postage; 1t
also paid $4,4T3 for handling, making
direct net loss to he government on
every issue of sls,421. AS compared
with this cash gift by the government,
the publishers, besides the postage,
paid about s4,473 for the white paper.
and, as shown by an expert reckoning.
$12716 for composition, all these Items
together amounting to $6,S37. There is
not a well-informed publisher in the
country who would not say that $500
was an extremely liberal allowance for
all other expenses, making total cost
to the publishers of 1887, as against a
net cost to the government of s1S421; SO
that the government contributed about
SO. os4 more on every issue to the ex
pense of running that publication than
the publishers themselves contributed.
1.-THE object Of this enormous free cir
culation is to establish a basis fol, se
curing advertising at high rate, and
an expert examination shows that the |
amount of advertising In a single issue |
at the published rate reaches s53,7so. |