The labor journal. [volume] (Everett, Wash.) 1909-1976, 1910-02-18
BIG DEFICIT
IS CLAIMED
The Government Would
Throttle Press By Un-
warranted Postage Rates

The President is really misinformei
In his message of December, l909 he
refers to the deficit in the post office
department and the loss in carrying
newspapers and periodicals as sub
sidy--as if these millions of dollars
were somehow divided up among the
publishers.
| This is not true at all. The business
of publishing periodicals has been de-
veloped using the rate given by the gov
ernment, just as any commercial enter
prise has used the rates given by the
railroads and express companies. 1t is
an expense reckoned in the transaction
of business, and does not appear in the
profits of publishers any more than
the freight rate is part of the profits
of The United States Steel Company
| If there is an increase of expense at
this point, there must be an increase
of price to the consumer. If there is
a benefit in having low mail rate for
periodicals, the reader gets the benefit
of that low rate.
The rate charged is one cent pound.
The President may not know that the
rate in Canada for carrying second
class matter is half a cent a pound,
nd hn IN
packages of all sorts of merchandise
are carried even thousand miles at
approximately the same rate of cent
a pound. Therefore we must respect
fully refuse to regard ourselves as re-
ceiving a subsidy from the government.
any more than we receive subsidy
from the railroads when we send by
freight a carload of magazines to the
newsdealers in Chicago at rate of two
thirds of cent pound.
Now, let's take look into this sub
ject. 1t is conceivable that it might be
wise to run the post office department
without profit for the purpose of free
intercourse and trade among the people
and for the dissemination OF knowledge
and news. In fact, the loss on the rural
free delivery, which serves small but
most important part of our population.
is double the total deficit of the whole
department; but no one, not even the
President, intent upon economy, urges
reduction of this service. The post of
flee department is not in principle a
money making or a taxing department.
The income of the government is chiefly
derived from customs and internal rev.
enue, and not from the conduct of its
departments of service.
However, it is right and proper that
every department should be managed
with economy, and Mr.. Taft's reference
to the post office department and the
cost of carrying printed matter was
prompted by a praiseworthy desire to
reduce expenses and deficits. But we
think that he should be certain that he
is putting the blame and the burden of
increased cost in the right place.
There are some facts that doubtless
were not before the President when he
wrote his message. For example:
The United States government is one
of the largest, if not the largest GUS
tomr of the railroads. And yet the
United States government pays for car
rying printed matter in many instances
four to ten times as much as the pri-
vato shipper.
When, for instance, we ship this
magazine in bulk to Chicago for news
stand distribution the rate by fast
freight is $3.50 ton, by express $50
ton (the railroads, please note, get
only fraction of this, the express
companies the rest), but the government
pays according to the Presidents fig
ures, 500 ton. Note that the fast
freight will be fast enough for much
postal matter, and that the express is
often hauled on the same train as the
mail. Yet in the instance given above
the railroad must receive for the mail
hauled at least four times as much as
it does for the express hauled on the
same road and on the same train and
at the same time for passengers.
If the United States government read
justed railroad rates for carrying all
classes of mail, the post office depart
ment would, as now conducted, show a
surplus instead of a deficit
This matter has been urged by as
sociations and chambers of commerce
time and time again. Convincing fig
ures have been presented, but some
where, somehow, these petitions have
been pigeonholed and suppressed--or at
least they have had no effect. The rail
road influence has been too strong. We
don't know where 1t is exercised, but
there can be no other explanation of
the governments lack of action in this
matter. II is to the interests of the
whole body of citizens that these rates
be revised.
And yet the railroads would still, at
the revised rates, be able to make the
same profits they now make on matter
carried for express companies and pri-
vate shippers, and It seems to us that