Bonners Ferry herald. [volume] (Bonners Ferry, Idaho) 1904-current, 1917-08-14
Parcel Post Tax Stays.

The mail order house lobby has met
its Waterloo in the effort to strike
from the war revenue bill the pro-
vision taxing parcel post packages.
The senate finance committee, which
incorporated this tax in the bill as re-
ceived from the house, stood to its
guns, says Hardware Age. Chairman
Simmons, in the roll of the duke of
Wellington, defeated the opposing
forces and the bill as reported to the
senate carried the following provision:
Parcel post packages: Upon every
parcel or package transported from one
point in the United States to another
by parcel post, a tax of l cent for each
25 cents or fractional part thereof
| charged for such transportation, to be
paid by the consignor.
mo such parcel or package shall be
transported until stamp or stamps
representing the tax due shall have
been affixed thereto"
| A tidy little sum in the way of
revenue will be derived from the par
eel post tax and about three-fourths
of it will be contributed by the big
catalog- concerns. This statement is
supported by official figures which can
not be refuted.
So rapidly has the use of the parcel
post increased throughout the country
that, according to the postmaster gen.
eral, at the present time the postal
service is handling packages at the
rate of more than 1,000,000,000 per
annum. A fiat rate of 1 cent on each
of these parcels would mean 100000
900 revenue from this source, but it
will be noted that the tax of 1 cent
is based upon a postage charge of 25
cents or fraction thereof, which means,
of course, an additional penny for each
25 cents or fraction thereof.
1t is fair to estimate that the great
bulk Of parcel post packages pay less
than rs cents; in fact, the official sta
tistics show that the average charge
is much less. Nevertheless, consid-
cradle number of packages will exceed
25 cents, so that it is certain that the
revenue derived will exceed $4,000
900 by very substantial amount.
That the mail order houses pay
three-fourths of the postage on parcel
post packages was demonstrated by the
investigation conducted by Senator
Bristow of Kansas, who had had the
postoffice department as an assistant
postmaster general. Senator Bristow's
figures showed conclusively not only
that the chief patrons of the parcel
post were the big catalog concerns, but
also that the low rates charged for
the service constituted an enormous
subsidy well calculated to swell divi-
dends and pile up colossal surplus.
!. The revenue bill, as reported to the
senate, carries a provision of interest
to every business man concerning the
postage rates on first class mail mat
! ter. Here congress is on dangerous
ground.
The house raised the rate on letters
from 2 cents to 3 cents per ounce and
on postal cards and private mailing
cards from l cent to cents each The
senate committee has left the rate on
letters at 3 cents, but has stricken out
the increase in postage on postal cards
and private mailing cards.
= To the extent that postal cards and
private mailing cards have been ex-
empted from this increased charge, the
!. senate provision is a wiser measure
! than that adopted by the house, but
, there is good reason to believe that
congress will make a serious blunder
I in raising the frst-class mail rate at
all. There is no function of the gov
J eminent so important as the handling
, of the mails and the free interchange
of intelligence. The business of the
country depends to an enormous de-
gree upon the cheap and rapid hand
, ling of the letter mail, and any bur-
, den placed upon this vehicle of in
formation is equivalent to putting a
heavy brake upon the commerce of the
; country.