"SEC. 202. (a) (2) On that portion of any such publication devoted to advertisements the rates per pound or fraction thereof for delivery within the eight postal zones established for fourth-class matter shall be as follows:

"For the first and second zones, 134 cents.

"For the third zone, 22 cents.

"For the fourth zone, 4 cents.

'For the fifth zone, 44 cents. "For the sixth zone, 52 cents. "For the seventh zone, 7 cents.

"For the eighth zone, and between the Philippine Islands and any portion of the United States, including the District of Columbia and the several Territories and possessions, 734 cents.'

TRANSIENT SECOND CLASS

SEC. 5. Section 203, Title II, of the act of February 28, 1925 (Forty-third Statutes, page 1067, United States Code, title 39, section 287), is hereby amended to read as follows:

"SEC. 203. The rate of postage on publications entered as second-class matter, when sent by others than the publisher or news agent, shall be 1 cent for each two ounces or fraction thereof.

THIRD-CLASS MATTER

SEC. 6. Section 206, paragraph (b) of the act of February 28, 1925 (Fortythird Statutes, page 1067, United States Code, title 39, section 291), is hereby amended to read as follows:

"(b) The rate of postage thereon shall be 11⁄2 cents for each two ounces or fraction thereof, up to and including eight ounces in weight, except that the rate of postage on books, catalogues, seeds, cuttings, bulbs, roots, scions, and plants, not exceeding eight ounces in weight shall be 1 cent for each two ounces or fraction thereof, except as herein provided for library books: Provided, That, under such regulations as the Postmaster General may establish for the collection of the lawful revenue and for facilitating the handling of such matter in the mails, it shall be lawful to accept for transmission in the mails, without postage stamps or with precanceled stamps affixed, separately addressed identical pieces of thirdclass matter in quantities of not less than twenty pounds, or of not less than two hundred pieces subject to pound rates of postage applicable to the entire bulk mailed at one time: Provided further, That the rate of postage on third-class matter mailed in bulk under the foregoing provision shall be 12 cents for each pound or fraction thereof, except that in the case of books, catalogues, seeds, cuttings, bulbs, roots, scions, and plants, the rate shall be 8 cents for each pound or fraction thereof: Provided, however, That the rate of postage on third-class matter mailed in bulk under the foregoing provisions shall be not less than 1 cent per piece.'

FOURTH-CLASS MATTER

SEC. 7. Section 207 of the act of February 28, 1925 (Forty-third Statutes, page 1067, United States Code, Title 39, sections 240, 247, and 293), is hereby amended to read as follows:

"SEC. 207. (a) Mail matter of the fourth class shall weigh in excess of eight ounces, and shall include books, circulars, and other matter wholly in print (except newspapers and other periodicals entered as second-class matter), proof sheets, corrected proof sheets, and manuscript copy accompanying same, merchandise (including farm and factory products), and all other mailable matter not included in the first or second class, or in the third class as defined in section 206.

"(b) On fourth-class matter the rate of postage except as herein provided for library books, shall be by the pound as hereinafter provided, the postage in all cases to be prepaid by stamps affixed thereto or as otherwise prescribed by the Postmaster General.

"The postage on matter of the fourth class shall be as follows:

"On all matter mailed at the post office from which a rural route starts, for delivery on such route, or mailed at any point on such route for delivery at any other point thereon, or at the office from which the route starts, or on any rural route starting therefrom, and on all matter mailed at a city-carrier office, or at any point within its delivery limits, for delivery by carriers from that office.

or at any office for local delivery, 7 cents for the first pound or fraction of a pound, and 1 cent for each additional two pounds or fraction thereof.

"For delivery within the first zone, except as provided in the next preceding paragraph, 7 cents for the first pound or fraction of a pound, and 1 cent for each additional pound or fraction of a pound (and except where the distance by the shortest regular mail route from the office of origin to the office of delivery is three hundred miles or more, in which case the rates of postage shall be 8 cents for the first pound or fraction of a pound and 2 cents for each additional pound or fraction of a pound).

"For delivery within the second zone, 7 cents for the first pound or fraction of a pound, and 1 cent for each additional pound or fraction of a pound (except where the distance by the shortest regular mail route from the office of origin to the office of delivery is three hundred miles or more, in which case the rates of postage shall be 8 cents for the first pound or fraction of a pound and 2 cents. for each additional pound or fraction of a pound).

"For delivery within the third zone, 8 cents for the first pound or fraction of a pound and 2 cents for each additional pound or fraction of a pound. "For delivery within the fourth zone, 8 cents for the first pound or fraction of a pound and 4 cents for each additional pound or fraction of a pound.

"For delivery within the fifth zone, 9 cents for the first pound or fraction of

a pound and 6 cents for each additional pound or fraction of a pound. "For delivery within the sixth zone, 10 cents for the first pound or fraction of a pound and 8 cents for each additional pound or fraction of a pound.

"For delivery within the seventh zone, 12 cents for the first pound or fraction of a pound and 10 cents for each additional pound or fraction of a pound.

"For delivery within the eighth zone and between the Philippine Islands and any portion of the United States, including the District of Columbia and the several Territories and possessions, 13 cents for the first pound or fraction of a pound and 12 cents for each additional pound or fraction of a pound: Provided, That the rate of postage on matter of the fourth class when mailed on rural routes. shall be, for local delivery and for delivery within the first, second, and third zones, 2 cents less than the rates prescribed in this section, and for delivery within the fourth, fifth, sixth, seventh, and eighth zones, 1 cent less than the rates prescribed in this section.

"The classification of articles mailable, as well as the weight limit, the rates of postage, zone or zones, and other conditions of mailability under this section, if the Postmaster General shall find on experience that they or any of them are such as to prevent the shipment of articles desirable, or to permanently render the cost of the service greater than the receipts of the revenue therefrom, he is hereby directed, subject to the consent of the Interstate Commerce Commission after investigation, to reform from time to time such classifications, weight limit, rates, zone or zones or conditions, or other, in order to promote the service to the public or to insure the receipt of revenue from such service adequate to pay the cost thereof.

"(d) Books, consisting wholly of reading matter and containing no advertising matter other than incidental announcements of books, when sent by public libraries, organizations, or associations not organized for profit and none of the net income of which inures to the benefit of any private stockholder or individual, as a loan to readers or when returned by the latter to such public libraries,. organizations, or associations shall be charged with postage at the rate of 3 cents. for the first pound or fraction thereof, and 2 cents for each additional pound or fraction thereof, except that the rates now or hereafter prescribed for third or fourth class matter shall apply in every case where such rate is lower than the rate prescribed herein for books under this classification: Provided, That this rate shall apply only to such books as are addressed for local delivery, for delivery in the first, second, or third zone, or within the State in which mailed.

"Public libraries, organizations, or associations before being entitled to the foregoing rates shall furnish to the Postmaster General under such regulations as he may prescribe, satisfactory evidence that none of the net income of such organizations inures to the benefit of any private stockholder or individual."

SPECIAL DELIVERY AND SPECIAL HANDLING

SEC. 8. Section 212, Title II, of the act of February 28, 1925 (Forty-third Statutes, page 1069, United States Code, Title 39, sections 165 and 167), is amended to read as follows:

"SEC. 212. (a) To procure the immediate delivery of mail matter of the first class weighing not more than two pounds, stamps of the value of 10 cents shall

be affixed (in addition to the regular postage); matter weighing more than two pounds and not more than ten pounds, stamps to the value of 20 cents shall be affixed (in addition to the regular postage); and matter weighing more than ten pounds, stamps to the value of 25 cents shall be affixed (in addition to the regular postage).

"(b) Mail matter of other than the first class bearing, in addition to the regular postage, a special-delivery stamp of the proper denomination or the equivalent thereof in ordinary stamps, with the words 'Special delivery' written or printed on the envelope or wrapper when ordinary stamps are used, shall receive the same expeditious handling and transportation as is accorded to mail matter of the first class and shall be accorded immediate delivery at the office of address, under such regulations as the Postmaster General may prescribe.

"(c) To procure immediate delivery of mail matter of other than the first class weighing not more than two pounds, stamps to the value of 15 cents shall be affixed (in addition to the regular postage); weighing more than two pounds but not more than ten pounds, stamps to the value of 25 cents shall be affixed (in addition to the regular postage), and for matter weighing more than ten pounds, stamps to the value of 35 cents shall be affixed (in addition to the regular postage).

"(d) For making special delivery there may be paid to the messenger or other person making such delivery 9 cents for matter of the first class weighing not in excess of two pounds, 10 cents for matter of other than the first class weighing not in excees of two pounds, 15 cents for mail matter of any class weighing more than two pounds but not in excess of ten pounds, and 20 cents for mail matter of any class weighing in excess of ten pounds.

"(e) For the purpose of this act the Postmaster General is authorized to provide and issue special-delivery stamps of the denominations 10, 15, 20, 25, and 35 cents."

So much of section 207 of Title II of the act of February 28, 1925 (Forty-third Statutes, page 1067, United States Code, title 39, section 294), as refers to the expeditious handling, transportation, and delivery of mail matter of the fourth class is hereby amended to read as follows:

"Whenever, in addition to the postage as hereinbefore provided, there shall be affixed to any parcel of mail matter of the fourth class a special handling stamp of the proper denomination, or the equivalent thereof in ordinary postage stamps with the words 'Special handling' written or printed upon the wrapper, such parcel shall receive the same expeditious handling, transportation, and delivery accorded to mail matter of the first class: Provided, That to procure special handling treatment of mail matter of the fourth class weighing not more than two pounds stamps to the value of 10 cents shall be affixed (in addition to the regular postage), weighing more than two pounds but not more than ten pounds stamps to the value of 15 cents shall be affixed (in addition to the regular postage), and on such matter weighing more than ten pounds stamps to the value of 20 cents shall be affixed (in addition to the regular postage)."

EFFECTIVE DATE

SEC. 9. This act shall become effective July 1, 1928.

The CHAIRMAN. Quite full hearings have been held by the Committee on the Post Office and Post Roads of the House of Representatives, the printed hearings covering some 400 pages. This hearing is called for the purpose of bringing to an end the hearings with reference to postal rates which have occupied this committee, either in its full membership or by a subcommittee, for three years and a half; and we hope that we may be able to conclude the hearings speedily, and unless there is objection on the part of some member of the committee the chairman will go through bill H. R. 12030 by sections, and anybody who wishes to be heard on a section as we come to it may appear.

The first provision in bill H. R. 12030 is on page 1, line 6, providing for the rate of postage on private mailing cards. Is there anyone who wishes to appear with reference to that rate? [A pause, without response.] There seems to be no one.

100167-28- -2

We will now go to section 2, which provides for rates on reply cards and envelopes. Is there anyone who wishes to be heard on that section? [A pause, without response.] There seems to be no

one.

We now go to section 3, with reference to deficient postage. Does anyone wish to be heard on that section? [A pause, without response.] There seems to be no one.

Now we go to section 4, with reference to second-class matter. Does anyone wish to be heard on that subject?

Mr. HANSON. I would like to say a word or two, Mr. Chairman. The CHAIRMAN. All right.

STATEMENT OF ELISHA

HANSON, OF WASHINGTON, D. C.,
PUBLISHERS'

REPRESENTING THE AMERICAN
ASSOCIATION

NEWSPAPER

Mr. HANSON. Mr. Chairman, I do not want to be heard really, but just merely want to call the attention of the committee to the evidence which has already been put into the record by the American Newspaper Publishers' Association in the hearings held before the Committee on the Post Office and Post Roads of the House of Representatives, as well as in prior hearings held before the joint subcommittee, and ask that they be considered in the light of our request for a return to 1920 rates and the establishment of a bundle rate to cover the transportation of news dealers' bundles.

Mr. LUCAS. Mr. Chairman and gentlemen of the committee, I represent the American Publishers' Conference. We also request that the hearings held before the House committee be considered by this committee in connection with our request.

The CHAIRMAN. We now go to section 5, relating to transient second class.

Senator PHIPPS. Mr. Chairman, before passing section 4, which amends section 202 as to second-class matter, I desire to have the committee consider at the proper time a modification, by amendment, under which a minimum charge would be made on publications entered as second-class matter when shipped out in bulk, so that the minimum rate would be imposed on a certain number per pound.

The CHAIRMAN. Is that to be an amendment to the bill as printed? Senator PHIPPS. Yes; and this is the form that it was put in by the Post Office Department when we were considering this subject in the Senate hearings a year ago.

The CHAIRMAN. Will you offer it now so that it may go in the

record?

Senator PHIPPS. Yes.

The CHAIRMAN. That may be inserted.

(The amendment proposed is as follows:)

That section 202, Title II, act of February 28, 1925, is amended by the addition of a paragraph 4, to read as follows:

"(4) Provided, That in the case of publications entered as second-class matter where the number of individually addressed copies or packages to the pound is more than sixteen and not in excess of thirty-two, the rates of postage thereon : hall be double the rates prescribed in paragraphs (1), (2), and (3)a of the act of February 28, 1925; where the number of individually addressed copies or packages to the pound is more than thirty-two and not exceeding forty-eight, the rates of postage shall be three times the regular rates, and for each additional

sixteen individually addressed copies or packages or fractional part of such number of copies or packages there may be to the pound the rates of postage shall be correspondingly increased over the regular rates.”

The CHAIRMAN. Now as to section 5, transient second class, does any body wish to be heard? [A pause, without response.] There seems to be no one.

As to section 6, third-class matter, does anyone wish to be heard? Mr. LANSING. I should like to say a word if I may.

The CHAIRMAN. The committee will be glad to hear you.

STATEMENT OF C. J. LANSING, REPRESENTING THE UNITED TYPOTHETE OF AMERICA

Mr. LANSING. The United Typothetæ of America is an educational institution including the larger printing shops in the United States producing books, magazines, catalogues, and general commercial work, to the extent of approximately 70 per cent of the entire printing production of the country, exclusive of periodicals.

Its committee on legislation has been instructed at two successive annual conventions to earnestly promote general postal betterment, particularly with reference to the obtaining of a pound rate for the mailing of third-class matter. Inasmuch as the printers do not themselves pay the postage on the things they print, this action is less in their interest than in the interest of the general business public which they serve.

In May, 1927, conferences were instituted with the officials of the Post Office Department looking toward the proposition of a pound rate for third class. Consultations were later had with the chairman of the House Committee on the Post Office and Post Roads. The Griest bill (H. R. 12030), which passed the House of Representatives April 2, includes these suggestions, worked out by the officials of the Post Office Department in harmony with its belief as to practicability and the production of the necessary revenue.

This so-called Griest bill is accepted as apparently the first clean, general revision of the postal rate structure for many years, as correcting certain notable deficiencies in the act of 1925, as accepting the principle of justice to the users of the third-class mais in freeing them from the 2-ounce jump requirements, and as in general representing the utmost possible advance available at this time, under present revenue limitations. It does not provide, as we wish it did, for a lower basic rate for third-class matter, nor does it make other desirable reductions. It is, however, a satisfactory measure in that it is believed to be the best available compromise of business desirability with legislative possibility, having reference to the creation of necessary revenue.

This committee has assurance, apparently with official sanction, that the Griest bill will meet with executive approval. The same statement which gave this assurance made it quite apparent that lower rates would probably meet with executive disapproval.

The Senate has before it Senator McKellar's bill, S. 843, involving many excellent features, but omitting the application of the pound rate to third-class matter which would give business an approximation of the convenience and fairness long accorded to the periodicals. Aside from this omission the rates in this bill would be welcomed by