SPEECH MR. POTTER,.OF OHIO ON THE ♦ # V ' . ' ■' 0 / REDUCTION OF POSTAGE. DELIVERED IN THE HOUSE OF REPRESENTATIVES, JANUARY 13, 1951 WASHINGTON: PRINTED AT THE CONGRESSIONAL GLOBE OFFICE. 1851 . REDUCTION. OP POSTAGE. The House having resolved itself into Committee y of the Whole on the bill to reduce and modify i the rates of postage, Mr. POTTER rose and said : Mr. Chairman: In answer to the various ob¬ jections which have been made by various mem¬ bers at different times to this bill, it becomes me to investigate the subject by facts and figures, in order to obviate them. It is for this reason, and that I may be prepared to maintain every position which I have assumed, to fortify every point which has been attacked, that much of what I shall have to say will be from written memorandums. And for their correctness and truth I am responsible. I will take occasion at the commencement to say, that those gentlemen upon this floor who are most decidedly opposed to this bill, and who rep¬ resent States, whose receipts for postage does not equal the expenditure for mail service in them, have exhibited a modesty truly becoming to them; for whilst, with one or two exceptions, they have remained silent during this whole discussion, their allies from States where there is a surplus have maintained the controversy. But I fear that when we come to vote upon the bill, they will make themselves felt, if they have not been heard. The receipts from postage in Maine exceed the cost of transportation.$50,000 New Hampshire, over. 20,000 Vermont, “ 18,000 Massachusetts, “ .180,000 Rhode Island, “ . 20,000 Connecticut, “ . 40,000 New York, “ .460,000 Pennsylvania, “ ..200,000 Ohio, “ 80,000 Wisconsin, * 25,000 Iowa, “ 2,000 It is from these States that we naturally look for support to this bill; and from the immense number of petitions which have been received here from those States, without one single remon¬ strance from any quarter, we feel assured that the people are in favor of the change proposed. We who live in the paying States, do not complain that this large amount of surplus is drawn from us for the support of the mail service in the less favored portions of the Union. We do not desire that it should be otherwise, but we do insist that the rates of postage should be reduced to a revenue standard, so long as we contribute so large a share of the means to support this department of the Government. I am not a little surprised to see gentlemen upon this floor, who represent States yielding a surplus to the Post Office Department, even some of my colleagues from the State of Ohio, which pays more than $80,000 over her cost of transportation, into the Treasury, opposing this bill. They must certainly have become very benevolent all at once, to be willing to tax themselves and their constitu¬ ents, to afford postal facilities to their neighbors. Mr. CARTTER asked if the gentleman inclu¬ ded him in the number of his colleagues who op¬ posed a reduction of postage ? Mr. POTTER said he did mean to include him [Mr. Cartter] in the number. Mr. CARTTER. Will the gentleman allowme to say that he has mistaken my intentions? I am in favor of a reduction of the rate of postage from ten cents to a uniform rate of five cents. Mr. POTTER. I was aware of that. The gentleman’s amendment will speak for itself; it provides for a uniform rate of five cents for all dis¬ tances. Sir, it is the result of the gentleman’s proposition that I wish to avoid. Adopt it, and instead of a reduction of postage, it would operate only as a reduction of revenue. Four fifths of the letters now carried in the mail pay only five cents; it is only those letters carried over three hundred miles that pay ten cents. My object is, so to re¬ duce the postage upon all mailable matter as to compete with the private expresses upon the short routes. The gentleman’s amendment will not effect that object. It affords encouragement to the increase of letters upon the short routes, or those less than three hundred miles, from which nearly all our revenue is derived. Private expresses’ do not enter into competition with the Post Office De¬ partment upon the long routes, and upon these the gentleman’s plan would certainly operate injuri¬ ously to the revenue, whilst it would produce no change in the receipts upon the short routes. Mr. CARTTER. I dislike exceedingly to in¬ terrupt my friend, but if he will allow me, I wish to submit to him and to the House, whether, after 4 the amendment I offered, and after the remarks I submitted on a former day in reference to this bill, the gentleman is authorized in coming to the con¬ clusion that I am opposed to reducing the rates of postage down to a revenue standard? I stated ex¬ pressly in my remarks, that I was in favor of re¬ ducing the rates of postage to a revenue standard. I thi^k my colleague does me injustice in coming to the conclusion he does in this matter. Mr. POTTER. Mr. Chairman, I will do my colleague no injustice; for whilst I must be allowed to comment upon his proposition, I will certainly Ktate it fairly. He says a uniform rate of five cents is a revenue rate. I was only endeavoring to show that the proposition, if adopted, would only tend to diminish the revenue without accom¬ plishing the great end in view, the cheap circula¬ tion of valuable information in every part of the country. I repeat, that the great object in reducing the postage upon short routes, is to bring into the mail the matter notv carried by private expresses, as well as to encourage the more general use of the mails, where they are now avoided on account of the high rate upon letters. Mr. CARTTER. Is my colleague informed of the existence of any private expresses in the vicinity of any of the cities in the State of Ohio, or in any western city ? Mr. POTTER. I am not. I will ask my col¬ league, whether he is informed of the existence of such expresses in the eastern cities ? Mr. CARTTER. I am aware that private ex¬ presses exist in those cities. Air. POTTER. It is with these that we wish to compete, by putting the rates, not as low as they carry letters, for I believe they only charge two cents, but at such rates as will tend to dis¬ courage their use. But to resume the subject. It is objected also, that the Postmaster General will not grant mail facilities, or service upon routes on which there is not revenue derived sufficient to pay the expenses. Can this be true? By the adoption of this rule, Maryland would have to be curtailed over $30,000 Virginia, over. 60,000 North Carolina, over. 110,000 South Carolina, over. 40,000 Georgia, over. 60,000 Florida, over. 15,000 Illinois, over. 40,000 Tennessee, over. 10,000 Alabama, over. 8C>’000 Mississippi, over. 25,000 Arkansas, over. 30’000 Texas, over. 30,000 for each of these States fall short the above sums, of revenue sufficient to pay barely the costs of transportation of their mails, to say nothing about the commissions paid to their postmasters. . Mr. HAMMOND asked, whether in this esti¬ mate the transportation of the mail through Mary¬ land, &c., upon the great southern route to New Orleans, was embraced ? Mr. POTTER. I will do these States justice in this respect, if the gentleman will only have patience. But we do not ask to have this rule ap¬ plied to these States. We protest against it, and it is unfair to charge that such a rule has been adopted by the Department. It is true, that it is a strong argument against putting increased service upon a route, but I deny that it is any part or par^ cel of the regulations of the Department. Mr. SWEETSER desired to know of his col¬ league whether there were not post roads in Ohio upon which no service had been ordered by the Department ? Mr. POTTER. There may be, particularly upon the routes established last September; and perhaps some others where there had been no competition in the bids for the service, and those that were made were so exorbitantly high that it would be unreasonable to ask for service at such rates. But I regard the Post Office Department as a branch of the National Government, necessarily so for the connection and continuance of routes: as one of the conditions in the bond of our Union, strengthening its ties by a common interest, and should be managed as a whole, regardless of local divisions, any further than they may be necessary for the promotion of the general welfare of the people of the whole country. But, sir, I have been treating this subject as if the awful forebodings of the timid and wavering upon this floor, of broken-down stage coaches, lean horses, hungry drivers, deserted towns and villages, grass-grown streets, lean and starved postmasters, and worst of all, a bankrupt Treas¬ ury, were about to be realized. I have a word of comfort for that class of our friends. Aly colleague who first addressed the committee upon this subject, [Mr. Cartter,] de¬ clared that the effect of a reduction of postage would be “to reduce the Post Office Department to a state of bankruptcy. ” Aly friend says that he has come to this conclusion “from the little examination he has been able to give this sub¬ ject.” I am sorry, for the sake of the measure, that that gentleman has not brought his usual in¬ dustry and acumen to the task of this examina¬ tion, for I feel quite sure that had he done so we should find in him one of the strongest advocates of this bill. Another of my colleagues [Air. Sweetser] says that, this measure will ultimately charge the Post Office Department upon the Treasury; but he gives no reasons for it. He says, also, that allusion has been made to the English system, but he does not intend to discuss that, and dismisses the subject by saying, “ 1 will state, in general terms, that we cannot assimilate ours to theirs, and no legitimate argument can be drawn from it.” I might say of him, as I have already done of my other colleague, that I am sorry, for the fate of this bill, that he had not looked at the re¬ ports of the British Post Office Department. Mr. SWEETSER. In my argument the other day, I gave as a reason why the rate proposed in this bill was below the revenue standard, that the bill itself asked for a million and a half- Mr. POTTER. I do # not want the gentleman to make his speech over again; I cannot spare the time allotted me by the rules of the House; he can read it in the Globe. He spoke at length, and was complimented by the very general attention of the committee. This should satisfy my friend without my now giving him an opportunity to re¬ peat it. I am sorry, however, that he has given this subject so little attention. Had he devoted a little more time to it I do not doubt that instead of his opposition, this measure would to-day have his warmest support. My colleague [Mr. Sweetser] challenges me to bring forward my facts and figures to show that 5 the reduction of postage will not bankrupt the De¬ partment. . I propose now to do it. I regret the necessity |j that I am under to vindicate the measure here upon this floor, and to spend the time of the committee upon it; but what I say is said for the ear of mem¬ bers, with the hope that those who are not preju¬ diced against the bill, but are anxious to adopt, as they say, “ a revenue point,” will listen, if they have not examined the subject themselves, to the facts that I intend to lay before the committee. This subject has been so fully elaborated by the j gentleman from Missouri, [Mr. Phelps,] that I will not trouble the committee with the details of our own or the British Post Office, but will state the general results: Statistics of the .American Post Office for ten years. Y ears. Post otiic’s Post roads. Receipts. Expenses. Letters. 1839 . 1840 . '1841. ! 1842. {1843. iI84#. 1845. j1846. 1847. |1848. 11849. 12,680 13,468 13,682 13,733 13.814 14'103 14,183 14,601 15,146 16,159 16,747 Miles. 133,999 155,639 155.026 149,732 142,295 144,687 143,844 147,679 153,818 163,208 167,703 $4,477,619 4,530,265 4,379,317 4,546,246 4,295,925 4,237,285 4,289,841 3,487,199 3^945.893 4,37li077 4,705', 176 $4,654,718 4,759,110 4,567,228 4,627,716 4,374,713 4.320.731 4.320.731 4,084,296 3,971,310 4,326,850 4,479,049 27,535,554 24,267,552 52,173,480 58.069,075 62,000,000 From 1839 to 1849 inclusive, it. is seen by this table that under the old high rates of postage in .1840, the number of letters sent through the United States post office was 27,535,554—receipts <14,530,265; and there was a constant diminution of letters and receipts from postages, down to 1S43, when the number of letters had run down to 24,267,552—revenue, $4,295,225; leaving, in 1843, an actual deficit in the department of $78,788; and even then, as now, we found the gentleman from Indiana [Mr. Brown] opposed to any change; using the same argument then as now, that the Department would be bankrupted by the proposed reduction. The gentleman says he lias been dis¬ appointed in the result. 1 am sure, if he lives, and the present proposed reduction takes place, he will be again disappointed. I was a member of this House in 1845, when the reduction was made, and voted for it. That gentleman voted against it. We have both been disappointed. The effect upon the revenue has been more salu¬ tary than any of us anticipated. Before this reduction in 1845, the old rates were twenty-five cents on the single letter for the longest distance and six and a quarter cents for the short¬ est. We changed it to ten and five; and under the operation of the reduction the number of let¬ ters increased from 24,267,552 in 1843, so that in 1849 there were transported over 62,000,000, and the revenue in the same period had increased from $4,295,925 to $4,705,176, and in 1850 to $5,552,971. The Department during this period has not only sustained itself, but it has carried light, truth and happiness to millions of our people, who under our former system would never have been reached. Under our old system, the Department was only known to the people by the exorbitance of its charges, amounting almost to oppression. Under the reduced system it has become the people’s friend, and is respected and fostered by them. JNoWj instead of efforts to defraud the Department of its legitimate revenue, you find an interest everywhere felt in its maintenance. This is really the only branch of the General Government whose benefits are brought to the door of every citizen of the Union every day of his life. The gentleman from Indiana [Mr. Dunham] says that “any argument drawn from the opera¬ tion of the British Post Office, in support of a re¬ duction in this country, is fallacious.” Let us look a moment into it and see whether he is right, first showing the results of the reduc¬ tion. The postage upon all half ounce letters in the United Kingdom of Great Britain, for any distance, is one penny, equal to about two cents of our money. In 1839, the last year of their high or old rates, the letters transported in the mail amounted to 76,000,000. In 1848, under the re¬ duction, 347,000,000. In 1848, the gross revenue of the Department, including everything, was.<£2,181,016 Cost of management.<£1,196,520 Cost of steam and packet service added.701,580 - 1,898,100 192,916 Deduct fees for registering money let¬ ters, (not embraced in our system).... 56,000 • ■ ■ - And there is still a surplus of.<£216,916 Over one million of dollars in the Treasury; and the beauty of the system is, that the revenue is in creasing every year in a greater ratio than the expenses. It has been claimed by the opponents of this bill that the money order office in Great Britain was a source of revenue; but the returns show that, the commissions in 1848 on money orders were £67,376, whilst the expenses of that office were <£77,976, being an actual loss to the revenue of <£10,600. It is said their country is more compact than ours, and the cost of transportation and manage¬ ment are less. How is the fact? We have just seen that the cost of management in Great Britain, in 1848, was <£1,196,500—equal to about $5,982,600; whilst in this country, in 1850, the expenditures were $5,212,953—theirs costing more by $779,627 than ours. These are some of the facts and figures that my colleague [Mr. Sweetser] desired me to produce to prove rny position, and the arguments which the gentleman from Indiana [Mr. Duniiam] declares to be so fallacious. Another gentleman from Indiana, [Mr. Brown,] who was a member of Congress in 1845, and voted against the reduction, objects to any com¬ parison of a cheap system of postage in this coun¬ try to that of Great Britain, because, he says, their sources of revenue are more numerous than ours, and instances the registration of money let¬ ters. He says, too, that their packet service is not charged to the Post Office Department. He very carefully forgot to add, that whilst we receive $919,000 for postage on newspapers and pam¬ phlets, Great Britain receives nothing, the post¬ age being embraced in stamp duties, and going into the general instead of the Post Office revenue. But I have shown from the official reports of the British Post Office, that after adding the cost of the S icket service to the expenses of the Post Office epartment, and after deducting from the general revenue the amount which he says arises from 6 money orders and the registration of letters, there is still a surplus left to the credit of the Depart¬ ment of over $1,000,000. But I have said before, and I still insist, that the reduction in this country will enhance the revenue in a greater degree than the same reduction would in England. Our people are educated, are migra¬ tory, are commercial. We have a vast extent of territory constantly filling up with emigrants from the old States; and the associations of our father- land always inspire us with the gift and the desire to write. And when the tax upon our communi¬ cations is reduced to a mere nominal sum, every¬ body that can write, will write. The gentleman from Indiana [Mr. Brown] is mis¬ taken in his views in regard to the increase of clerk hire, on account of the great increase of the number of letters to be mailed and delivered. Every post¬ master knows that it will be a great deal less labor to make out and enter his post bills with one rate, to enter hisn.ccount of mails received, and to make out and add up his quarterly returns, than where there are two rates. And in the large offices, where the very best and highest salaried clerks are employed to assort the letters for mailing, where there are two rates, under the uniform system, their services will be dispensed with, and in their places any common laborer who cannot even read or write, will stamp and prepare all letters for mailing with the utmost ease. This simplifying of the accounts will dispense with much of the force now employed in the different post offices, by which I have no doubt a great saving will result to the Department. Much has been said about the free circulation of newspapers in the counties where they are pub¬ lished. But, as 1 have said before, I am satisfied that where the postmaster receives no compensa¬ tion for receiving and delivering the newspaper, he will be very likely to discourage its circulation, at any rate through the mail; but where he. receives fifty per cent , as his commission, he will take some pains to encourage the formation of clubs, for the mere compensation derived from commis¬ sions. I propose that papers circulated and de¬ livered in the State where printed, shall pay one half cent for each number not weighing over two ounces, and out of the State, one cent. There is some propriety in this distinction, from the fact that in most of the States the laws are printed by authority in the newspapers, and their dissemina- tion in the State should be afforded as cheaply as possible. I do not wish to embarrass the country press in its cix-culatipn, for I have seventeen country papers in my district, and desire to see them all prosper; and my opinion is, that a free circulation in the counties in which they are published will not tend to increase their circulation; for I do not know of a man in my district who would decline taking a newspaper any the sooner because he had to pay twenty-six cents a year for it. And then, again, the newspapers in my country are very strongly inclined to free trade, and a free-trade article would not look very well along side of an article advoca¬ ting a patent to monopolize, bylaw of Congress, the right to furnish news to any particular portion of the people. It would look a little like legislation for one class of citizens to the injury of others. They now receive all their papers free, and should be, and I have no doubt will be, satisfied, without being authorized to send theirs free to their subscri¬ bers. My constituents are not paupers, and are not so insensible to the principles of justice as to desire this Government, or any body else, to work for them for nothing. They know that the Post Office De¬ partment must be sustained, and they are willing to contribute to its support. However, thi^ is a question that 1 am not strenuous about, if the com¬ mittee see fit to adopt such an amendment to the bill. One of my colleagues is a little surprised, he says, that I should have been wrought upon by these outside influences, and against the interests of the people I represent, to advocate the reduction of postage. I have always been the advocate of low postage. It is no new thing with me. I be¬ lieve my constituents are also, and if that gentle¬ man’s are not, I mistake their sentiments very much. There are some gentlemen upon this floor who are afraid of innovation, of reform, or change. They are in favor of ancient usages and customs. The gentleman from Indiana [Mr. Dunham] is opposed, to copying after the English or any of the old hereditary kingdoms of Europe. The gentle¬ man, I suppose, distrusts his own ability to dis¬ tinguish the good from the bad, and would there¬ fore exclude all. The remark of Voltaire may be well applied to that class: “Our Wretched species is such that those who walk the beaten path, are always throwing stones at those who are recom¬ mending new ones.” r