Evening star., 1926-12-09
CHAMBER SEEKING
POSTAL RATE CUT
U. S. Commerce Body De.
mands Sweeping Reduc-
tions in Present Rates.

A demand for sweeping reductions
in postal rates on a number of classes
of mail today was laid before Con
gress by the Chamber of Commerce
of the United States, in brief filed
with the joint committee on posta
rats by the chamber president, Johr
w. OLeary. Present rates, the cham
ber declared. have proved uneconomlc
and harmful to both the Government
and the public, and speedy correction
of the schedule of rates was requested
The statement of the chamber
which also was sent to the Postmaster
General and to the director Of tn.
Budget, specifically asks that 1-cent
charge on postal cards be restored
and that there be a revision down
ward of charges for such SecOnd-c class
mail as newspapers and magazines,
and on third-class matter and parcel
post.
The boost in postal charges, most of
which went into effect in April, 1928,
the chamber declares in its brief,
while intended to produce additional
revenue to offset the $68,O0O,OOO sal
airy increase to postal employees, mas
not only proved Intellectual, but has
had an adverse effect upon business
and the postal service.
Backed Dy fuDllSncFS.
The contentious of the chamber.
which earlier had gone on record de-
claring the rates too high, are based
on the report of a committee or the
chamber, made up Of representatives
Of business organizations and large
users of the mails, including news
paper and magazine publishers. who
conducted an extensive research into
the effect of the present rates.
Pointing out that many business
concerns have resorted to other meth
DDS of transportation for their articles
in order to avoid the high postal costs,
the chamber declares there Is abun-
dant evidence showing the present
postal rates have retarded the natu-
raj growth of many branches of busl:
ness. 1t has been admitted, in fact,
that these rates were not based on
adequate data or upon scientinc or
accepted principles of rate making" !"
1t is unjust and unbusinesslike" to
charge to the Post Office Department,
the report states, the heavy deficits
resulting from the uncommercial or
governmental policy" services, such
as those accruing from rural free de-
livery, foreign mail and the free han
ding and transporting of the mail of
all Government departments, agen-
cies and commissions.
Proper ALLEGATIONS of these policy
costs, the chamber asserts, would
make possible reduction in rates
which would bring back to the postal
service a considerable amount of Sec
ond-class matter now being distrib-
uted by other means than the mails.
The increase of the postage of post
cards from l to cents has re-
suited in driving 80 per cent of this
class of business out of existence, the
report declares. Increases in the zone
rates on newspapers and magazines,
IL is said, has also brought a material
decrease in the volume of business,
and an increase in the costs of third
class mail resulted in loss Of 20 per
cent of volume
The 2-cent service charge on fourth
class mail. or parcel post, the commit
tee states, has retarded it's growth
and made improbable it's rise to a
profitable service.
The committee urged the applica-
ton to the rate problem of the prin-
ciple of securing the benefits of lower
costs through development of large
volume of business and the full util
iZAtiOn of facilities,