CHAPTER II

THE POWER OF CONGRESS TO ESTABLISH POSTOFFICES

Expansion of Facilities.-" Our whole economic, social and political system," says President Hadley, "has become so dependent upon free and secure postal communication, that the attempt to measure its specific effects can be little less than a waste of words." 991 This is hardly an overstate

ment of the case, yet, as we have seen, the importance of the postal function was recognized before the Constitution was adopted and when it comprehended only the transmission of intelligence. The increased importance, however, has been absolute as well as relative, since through the postoffice the government now does much more than merely facilitate communication between its citizens.

An act for the temporary establishment of the postoffice was passed by Congress on September 22, 1789.2 It provided for the appointment of a postmaster general, all the details and regulations to be as they "were under the resolutions and ordinances of the late Congress. The postmaster general to be subject to the direction of the president of the United States, in performing the duties of his office, and in forming contracts for the transportation of the mail."

For a considerable period congressional and administrative efforts were devoted almost exclusively to the extension of facilities; postoffices were established as rapidly as possible; every effort was made to secure speedy transportation of the mail, to insure its security, to prevent private competi

1 Art., "Postoffice," Lalor, Cyclopaedia of Political Science, vol. iii, p. 310.

21 Stat. L. 70.

3 This act was limited to August 12, 1790. On August 4, 1790, it was continued until March 4, 1791; on March 3 until February 20, 1792, when Congress passed An Act to establish the postoffice and postroads in the United States." I Stat. L. 178, 218, 232.

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tion, and by means of an increasingly efficient system to weld together distant parts of the country. The communications of the postmasters general are devoted to recommendations for the improvement of the service; presidential messages take pride in reporting the growth of the establishment, which was rapid. In 1790 there were about 100 postoffices in the country; the receipts from October, 1790 to October, 1791 were $31,706.27 and the disbursements left a balance of $5,498.51.5

But in 1823 Monroe was able to report to Congress that 88,600 miles of postroads had been established by law and that the mail was transported over 85,700 miles of this total. During the two years from July 1, 1823 the increase of the transportation of the mail exceeded 1,500,000 miles annually and 1,040 new postoffices were established." In 1828 the total mileage was 114,536 as compared with 5,642 in 1792 and in 1837 was 142,877 miles. The receipts from postage for the year ending March 31, 1828 were $1,058,204.34. These figures serve, in some measure at least, to indicate the rapid expansion of the postal system."

8

At the same time there was a commensurate recognition of the importance of the establishment in the attitude of Congress and the executive in dealing with it as an administrative arm of the federal government. The act of 1810 referred to the "postoffice establishment"; an incidental use of the word "department" is to be found in the laws of

4 For example, Gideon Granger, postmaster general, wrote in 1810: "From the nature of our government it becomes a matter of the highest importance to furnish the citizens with full and correct information, and, independent of political considerations, the interests of society will be best promoted, particularly in the interior, by extending to it the facilities of this office. Nor can the seaboard complain as it puts a profit on all that the interior produces for exportation, and on all it consumes from foreign countries." American State Papers (Postoffice), vol. xv, p. 42.

5 Williams, The American Postoffice, p. 20 (61st Congress, 2d Sess., Sen. Doc. No. 542).

6 Richardson, Messages and Papers of the Presidents, vol. ii, p. 215. 7 Ibid., p. 311.

8 Ibid., p. 419.

9 Williams, p. 25.

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1799 and 1810,10 but the system became an executive department in 1872 when Congress, codifying the postal laws, passed an act under which the department is now organized. In 1827 the postmaster general's salary was increased to $6,000 per annum, and he was thus placed on an equality with cabinet officers; two years later Jackson made him a member of his official family.12

Later in this essay will be found a consideration of the use made by Congress of the postroads clause,13 in the assumption of authority to aid in works of internal improvement, but here some mention should be made of the connection which has existed between the desire for a speedy transportation of the mail and aid granted to railroads. This aid took the form of donations, with mail service free or at reasonable rates, loans to companies, and general contracts for service, with the purpose of giving aid as well as paying compensation.1 In debating the desirability of governmental stock subscriptions in transportation undertakings Congress often adverted to the carriage of the mails; and in 1834 it was proposed to give the Baltimore and Ohio Railroad Company $320,000 in return for which the mail was to be carried free forever.15 Similar suggestions were made from time to time, but there was little definite action, and in 1845 the postmaster general was authorized to contract for the transportation of the mail by railroads, without inviting bids.16

Since 1850 the postoffice has not been used, at least

10 2 Stat. L. 592, and I Stat. L. 733.

11 Learned, The President's Cabinet, p. 231. See also U. S. v. Kendall, 5 Cranch (U. S. C. C., 1837), 275.

12 Bassett, Life of Andrew Jackson, vol. ii, p. 413. "... in introducing the postmaster general into the cabinet, Jackson began a practice that probably tended, in the long run, to invigorate the workings of the postal establishment, notwithstanding the fact that Barry, successor to McLean in the office, made a conspicuously dismal record." Learned, p. 250.

13 Below, Chapter III.

14 See Haney, Congressional History of Railways, p. 319 (Bulletin of the University of Wisconsin: Economic and Political Science Series, vol. iii).

15 10 Congressional Debates, 1752.

16 Haney, p. 323.

avowedly, to aid railways; the period has rather been one of regulation. Disputes have arisen over the proper compensation for service rendered, and companies have refused to give facilities for transportation.17 It was proposed, therefore, that the roads be forced to carry the mails, and in 1870 an act to this effect was applied in the District of Columbia, compensation to be determined by three commissioners. But in 1872,18 the codification of the postal laws provided rates for service, with compulsory service by the roads which had received land grants; if the companies were not satisfied with the amounts fixed by Congress, letters were to be forwarded by horse, and the articles for which expedition was not required, were to be sent by stage.10 At present compensation is determined by an elaborate system, under maximum rates fixed by Congress. The postmaster general may make reductions for refusal to transport, when required, upon the fastest trains,20 and may impose fines for inefficient service and delays.21 The necessity has not arisen, but if the railways should refuse to carry the mails, on the ground of inadequate compensation, Congress would have the right to compel transportation, upon reasonable compensation for the taking of private property for public use.22

This, however, is only one phase of the financial problem of the postoffice; another, very important phase involves the cost to patrons. Rates for the transmission of letters remained practically unaltered until 1845, while the charges for newspapers were slightly changed in the direction of allowing the publishers special privileges. The act of 184523 exercised a broad authority of classification, separat

17 48th Cong., 2d Sess., Sen. Exec. Doc. No. 40. 18 16 Stat. L. 115; 17 Stat. L. 309.

19 Haney, p. 206 (Bulletin of the University of Wisconsin: Economic and Political Science Series, vol. vi).

20 23 Stat. L. 156.

21 See Postal Laws and Regulations of 1913, Title X, "Transportation of the Mails," p. 607 ff.

22 See 43d Cong., Ist Sess., Sen. Rep. No. 478. This point is developed below, p. 151 ff.

23 5 Stat. L. 733.

ing the mail in order to expedite it, and introducing the free privilege for newspapers not more than 1,900 square inches in size, distributed within 30 miles of the place of printing. The act of 184724 allowed free exchanges only between publishers, and following this statute many changes were made, both in the conditions of exemption from postage and the rates which were charged. The classification now obtaining was adopted in 1879,25 and the cent a pound rate for periodical matter admitted to "second class" privileges was fixed in 1885.26

But while concessions were made to encourage the circulation of newspapers, Congress maintained rigid restrictions in respect to the size of the packages that could be carried in the mails. The limit was three, and later four pounds. This was originally due to the fact that large packages could not be handled with convenience by the system and were likely to injure or deface other mail matter. But when federal facilities became sufficient to take off, or at least raise, the weight limit, the express companies, which at this time were beginning to derive a large revenue from carrying parcels, were able to postpone congressional action until August 24, 191227 when the Parcels Post Act was passed after it had been repeatedly recommended by postmasters general and long desired by public opinion.28 Such delay has, of course, not been without bitter criticism,20 and in

24 9 Stat. L. 202.

25 10 Stat. L. 38.

26 $23 Stat. L. 387. For further details of the special privileges granted periodicals, see Report of the Commission on Second Class Mail Matter (1912), p. 57 ff.

27 737 Stat. L. 557. "That hereafter fourth class mail matter shall embrace all other matter, not now embraced by law, in either the first, second, or third class, not exceeding eleven pounds in weight, or greater in size than seventy-two inches in girth and length combined, nor in form or kind likely to injure the person of any postal employee or damage the mail equipment or other mail matter, and not of a character perishable within a period reasonably required for transportation and delivery" (Sec. 8). These limits have been, and will be, raised from time to time.

28 But see Bodley, The Post Office Department as a Common Carrier and Bank," 18 American Law Review, 218 (1884).

29 See Williams, passim.