Evening star., 1953-04-20
Parcel Post Rates /
Called Unreasonable.
Al Retailers Session
By Nelson N. Shennrd

The National Retail Dry Goods
Association today blasted at dis
criminatory and unreasonable"
parcel post rates which reduced
the size and weight of packages
when moving only between FIRST
class post Offices.
Backing up NRDGA's demand
for repeal, Leonard Mongeon, Of
New York. manager of the traf-
fic group in session at the
Statler Hotel, substantiated
claimed losses to business and
Government by publicizing a
cost survey based on. reports Of
354 member stores.
AS a result of Is months OPP
Grafton in driving out of parcel
post service the good-paying
packages" he said. parcel post
revenues are down $103.2 mil.
lion, costs Of handling have been
reduced $3.50 million, leaving a
net deficit to the operations Of
$64.3 million.
The Postmaster General is
now asking for a IS per cent in.
crease in parcel post rates sup
posed to yield around $3.50 mil
lion, he told the conference. IF
this regulation could be elimi-
mated. parcel post service prob.
ably could be made self-sustain-
ing by an increase of one-half
of what the Postmaster General
is requesting" Mr.. Mongeon
said,
The survey cited 10 ways in
which the discriminatory rates
have harmed" business. In
crease in transportation costs,
reported by 337 stores or 95 per
cent Of the number surveyed,
ranged from $100 per year for
small stores to a high of $50, 900
for a large store. This averaged
$2,8l0,68 per store per year, the
survey revealed.
New Bill Offered.
While the report concerned
only NRDGA stores. it stressed
there are 1.671 600 retailers apart
from the association penalized
by the regulations. Also, he
claimed, thousands of manufac-
turers and millions of citizens in
f1rst-class postal cities are ad.
versely affected.
Representative Broyhill, Re.
publican, of Virginia, has intro
duced a bill at the request Of
NRDGA designed to restore the
old size and weight limitation.
The survey cited ways in
which the regulations have "in-
jured the business of stores as
based on replies. Summarized,
it reveals:
Loss in mail order sales re-
ported by 181 stores, or 81 per
cent. through enforced use OF
Railway Express and other ship.
ment methods.
Increase in selling expense by
284 stores, or 80 per cent.
Increase in packing expense.
BOT stores or 81 per cent, by
making two or more packages
serve. Average per store per
year was $1,288.
increase in transportation
costs, 337 stores, or 95 per cent.
averaging $3.50 per store.
Harm to manufacturer rela.
tionships, 263 stores, or IS per
cent, by splitting shipments, etc.
Unfair advantage of one store
over another. A store few miles
away in a second class post Office
town can ship or receive mer.
chandize to or from a first class
mail city up to 70 pounds and
100 inches.
Smaller store are hurt more
proportionately than larger
stores because Of lesser volume
OF incoming shipments from
manufacturers. They are unable
to obtain the shipping advan.
tages of the larger competitors.
Sessions at the Statler, ex-
tending through Wednesday, are
being held in cooperation with
the traffic group of the Mer-
chants and Manufacturer AS
sociation.
Bank Frauds Decline.
A sharp decline during 1853
in the number of bank defalca-
tionS. which increased at an
alarming rate from 27O in 1946