Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1913-09-19
Eight months OF The Parcel Post
BY DAVID j. LEWIS,
Representative in Congress from Marylan
From the Baltimore EVENING Sun

From the Baltimore Evening Sun.
am glad to respond to the editors re
quest for monograph on the above topic
although it will have to be very brief one
as the results are not yet fully ascertained
Even as to such data as give as to the
operation of the parcel post | must ash
his permission to withhold the statistical
processes employed. lest the article be IN
duly prolonged.
In the beginning few preliminaries as
to the situation in transportation which
J this new service had to meet on Janaury
l. when it began. We had highly satisfac-
tory transportation and delivery for the
smallest shipment knOwn-the mail piece
and the postal system handled l7,50O,-
100000 of these at an average cost of
1-3 cents each. We had also the trans
pOrtation of the railways. minimum ship
ment of 100 pounds, and it handled about
LOCO, OOO,O 900 tons at an average charge
of $l.90. Between the mail piece, at its
greatest weight averaging five ounces for
merchandise, and the 100 pound minimum
of the railways, we had the express COM
panies, which handled about $50, 900, 900
shipments. with an average charge of 81
cents and an average weight of 33 pounds
These express charges varied from rs cents
on two pounds for the shortest distance to
$3.50 from coast to coast for 100 pounds
These rates averaged l6 to |, as compared
with the freight rates. although in other
countries the ratio was but S to l.
| 1t found that within the 11-pOund limit
still imposed on it above $50 miles the
express companies did about % per cent.
of their annual business, in revenue, and
II per cent in number of shipments; that
is. about $35. 100000 in receipts, and ST.
100000 in number of shipments At the
end of April the parcel post had taken,
not % per cent, but 10 per cent. of the
express revenues-about $l7.000.O00-
from them, and 50,00O,000 of their ship
ments. But this statement does not con-
tain the complete fact. Within its IL
pound limit the post will carry in one year
l50,O0O,OOO of such parcels 900 100000
in eight months), thus trebling the traffic
II does this by reaching out with its low
rates and extended service for the poten-
tial two-thirds of traffic, which the higher
express rates had prevented from moving,
and so it has created two-thirds of its own
business. This was the great Offense of
the express company it had violated the
inviolate laws of efficiency by service rates
which condemned two thirds of the natural
traffic to immobility.
But the real marvel has yet to be told
1t is in the financial history of the subject
II is an achievement in operative efficiency,
which but few students have considered
possible. The 100,000,000 of shipments,
about two pounds each (average) thus far
carried in this first eight months period,
have realized the POstOffice Department
an average of 10 cents each, so that $780,
100000 for the year will mean SIS, 000,-
900 of postal revenue. Up to August IS
the Postoflice Department realized cents,
or One-half profit on each such shipment
Now. the clear indication is that the parcel
revenue for the year will reach $l6,000,-
900, more than $7,OO0,0O0 of which will
be profit, or just the net profit of all the
express companies in the last reported
year. Contrast this experience with that
of the express company and the marvel
will appear.
On the average shipment of the express
cOmpany-33 pounds, for which it secured
81 cents-it made but 2 cents profit. On
the two. three, four or five pound shipment,
where it charged but rs cents, il is doubt
full whether il made any profit at all, for out
of the rs cents it had to pay IL cents to
the railway and had but IS cents left,
while out of the 81 cents charged for the
average shipment it paid the railway "a
cents and had 81 cents for itself. So that
the POstoffice Department makes cents
out of a 1O-cent rate, while the express COM
pany probably makes nothing at 25 cents
il NAV be suetested that the EXPRESS com
panies nav the railways more than the
Postofiice Department On the contrary.
the Postoffice Department. for the average
pound carried, pays about one-seyenth
more to the railways than do the express
companies.
The KEY TO the marvel consists of the
wonderful Genius of the PostofIice DeDart-
ment for doing small things well and
cheaply. II is because of this that IL was
already handling over seventeen billions of
shipments per annum i'm the mail Dieces.
and when il was asked to do the part of
the express business il is DOING il merely
meant the handling of more and larder
mail pieces. So that il absorbed n bust
ness equal TO three sevenths of that bejno
done by the express companies without
any more sense of added burden than the
engineer feels when dozen new passen-
eers Oct on his train. Besides this com
Darison of our postal system with others
shows its ORGANIZATION and personnel TO he
| the most efficient in the number of mail
pieces handled per emDlOye per annum
The elimination of all accounting. either
with the RAILWAYS or the shippers. and the
fact that il has so shipments. or mail
pieces, to handle and deliver where the
express company has but one, gives il
those tremendous operative advantages
resulting in the economies of service which
have enabled it to make so per cent profit
on rate with which the express company
must have lost nearly as much
The editor has not asked me about the
future but who can resist its beckOnine ?
and yielding, let me say that a profit of
one-half on a transportation rate is out of
all reason, even when il does 10 the Post
Office Department. of which we are all
stockholders. In short, II ought to be sat
isfied with one cent profit on each parcel. |
instead OF five cents; and should ask the
cent profit only as guaranty against a
loss. This nice adjustment OF the rates to
the cost Of service is something that
legislative body cannot accomplish. II will
make the rates too h1h and kill the traffic