First Class

Ever since the first examination of Post Office expenses was made in 1926, first class mail has consistently paid far more than its cost. The rate hike proposal recently approved by the Senate will increase even more the proportion of postal service supported by first class revenue. In effect, it will give a larger discount rate to the major magazine concerns and the advertisers who flood the post office with "junk mail."

The main reason for the rate hike is a Post Office deficit which is now approaching $1 billion. The various increases will make up this deficit and will also finance a projected pay raise for postal employees. The raises, however, do not constitute a fair adjustment of postal rates.

Comparison of the figures bears this out. The first class hike will raise local postage 33 per cent, and out-of-town postage 66 per cent. The second class increase (which will affect the major magazine concerns) will not be that high, and the "junk mail" increase will only amount to 14 per cent of its current insufficient rate. In addition, the Senate has rejected an amendment which would have raised rates for companies using over $1 million of postage annually. This would have more nearly compensated for the strain the big weekly magazines put on the post office.

It seems certain that the bulk of the present proposal will be passed by the House. The five-cent non-local rate is the only major item in question. The Senate has stated that this will be only a temporary measure. It is interesting to note, however, that the raise from two cents to three cents in 1933 was also passed as a "temporary measure."

If the first class rates were kept at three cents and the other mail rates raised to meet the need, the deficit might be erased in a more equitable manner. In addition, some of the bulky and annoying advertisements would probably be eliminated from the mails.

Over the past years the powerful lobbies of the national magazines and the big advertisers have been foisting upon the public a financial responsibility which they themselves should have borne. Unless Congress reconsiders its bill, they will succeed again.