The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-08-27
EXTENSION PLAN IN PARCEL
POST,

1t is the opinion of Representative
David j. Lewis of Maryland. one of
the parcel post experts of the house
of representatives, that the postof1ice
department, before a great while, will
make another extension of the parcel
post system. removing the express
companies as competitors of the post
al service in the handling of small
packages, After the postmaster gen
erai shall have completed his program
for the enlargement OF the parcel
post, the only rates in the new ca
press schedules that will be cheaper
than the parcel post rates, will be a
few charges on 10o-pound packages
travelling 1000 miles or more. Mr..
Lewis is quoted as saying:
The express companies are cor
rect when they say that they cannot
handle small shipment for less than
20 cents. Verified figures submitted
by them prove that they make only
two cents profit on average shipments
OF 81 cents The postorfice depart
making at least one cent, and PROB
ably two cents, on one-pound ship
ments at the average rate of five
cents.
THE governments system OF col
lection and distribution costs less than
one third as much as the same SER
vice to the express companies, and In
the end it must be that the govern
ment will supplant the companies for
the, most of the business. The e1-
press companies on 25-cent ship
ment, pay IL cents to the railroads
for haul of approximately $50 miles
under existing contracts, which means
I that the railroads get so cents OF the
total charge. This leaves 10 cents
for the express companies to pay for
collection and delivery, including the
costly system OF a dozen or more
landings. Eleven Of these landings
are replaced in the postoflce depart
rnent by the postage stamp. On
shipment of Ave pounds the new post
al rate will be nine cents for 80 miles
of which the railroads VIII get three
cents. as compared with Il cents
which they get from the express
com panies.
aOf course. the postmaster-general
lis not to stop at the 20-pound limit,
but VIII go on until. as he says. the
I1Oo-pound limit has been reached II
lis equally certain that he viii ration
Ealfze the rates for longer distances TO
tho point OF slight profit oTer the
cost OF ser7iee'
Mr.. Lewis says he believes thar
the express companies VIII ultimately
get some o. the freight business OF
the railroads on iargs shipments Tor
distance points. He Ears the coast
to-coast express rates sc- 100 pounds
have been reducsd ECl 81 20 y.
The ars, class freight rate to- those
distances IL 1870. It sorId thus be
cheaper to ship By express Is pom Is
at a cost of 81, than TO send By fret
class freight at the 10opound mini
mum rate OF 1910.
| There are many public men who
agree with Mr. lewis conciuston- Tie
day OF the parcel post, these men b.
ueve. ts Just beginning TIE usT idea
has taken the country quite bT stor7
No similar move By the goTsI-1sni
] for many years has bsco-s i-ans'
/ diately SO popular, or naa affected .
many people. Everybody Hkes the par
eel post, and everybody IS Datronsztns
it. The result VIII bs, public nez
say, tina. the srgtem VIII hare 70 BE-
extended as rapidly as circumstance
viii permit, until It has been made u
| take the place OF moro expensive
means Of shipment.
The controversy between the raj
roads and the government for more
pay tor the parcel post buginess proc
ably VIII begin IN congress nezt win
ter, when It WIN be pointed out u
committees OF congress that the ran
roads are now earring at the lon
parcel post rate certain commodities
which under the old system broug1'
1 a higher rate by express. Tho parce
post thus threatens to cut into tbs
revenues OF the railroads to some e1
tent. Congress In the end OF course
VIII arrive at come equitable adjust
ment Of this matter, but there will BE-
none that intereres with the onwart
march Of the parcel post system TO
state Of perfection.