HIGHER POSTAGE CHARGES.

Timaru Herald, Volume CXXXIV, Issue 18817, 4 March 1931, Page 11

HIGHER POSTAGE CHARGES.

RECEPTION OF PROPOSALS. The drastic nature of the increased postal charges has caused consternation in Auckland commercial circles. When the Prime Minister, the Rt. Hon. G. W. Forbes, announced a fortnight ago that increases in postal and telegraphic rates would be made, it was generally anticipate*! that the ordinary penny postage would not be raised above one penny halfpenny, and that the minimum charge for telegrams would probably be raided to a shilling. While the telegraphic guess was correct the doubling of the postal rate has come as a most disagreeable surprise to firms despatching thousands of letters a day. As far as letters to city addresses are concerned, it was freely stated yesterday that many Arms would utilise the offleeboy delivery to a much greater extent. It was estimated by the head of one warehouse that a smart boy would more than pay for his salary in delivering accounts and circulars alone. However, it was held in other quarters that it would be impracticable to deliver by hand correspondence destined for widely-scattered addresses in the suburbs. One typical large business house sends out 15,000 accounts each month under sealed cover, and the only practical course is to post such a large volume of mail matter. Effect of Parcel Limit. Doubt existed in some quarters yesterday whether the half-penny postage on invoices had been affected by the increased rates. The chief postm aster, Mr H. P. Donald, answering the inquiry, said the rate on all commercial papers had been raised from a minimum of a half-penny for 2oz. to Id for 4oz. Commercial papers Include accounts, invoices, books and printed papers, pattern and sample packets, unregistered magazines. The only correspondence not affected was household circulars, which would continue to be charged at a halfpenny. Realising the futility of protest, even had sufficient time been allowed for giving effective vent to their feelings of resentment, heads of business houses are taking the only practicable course —planning, where possible, internal economies. The measure of such saving, • however, varies considerably. Tn the case of firms with extensive country connections, the added burden will be particularly severe, as the usual practice is for firms to pay postage on drapery, mercery and certain other special lines. Some firms Issue catalogues, fixing prices as far as a year ahead, so that in such cases there is no practicable method of passing on to the customer even a tithe of the additional impost. It is even possible that the size of catalogues will have to be reduced as one method of cutting postage costs. The reduction in the weight limit of posted parcels from 281 b to 111 b. is another source of embarrassment to mail order business, particularly those with South Island customers, for in sending goods by rail there will be substantial transhipment charges to be met. In any case, the preference is for posting rather than railing, for the post office is deemed a much safer repository in view of the fact that numerous stations are unattended. “A Desperate Expedient.” While it is virtually impossible for large firms to assess in cash the amount of additional taxation which will be wrung from them through the lx: creased rates, the generally expressed, is that twice as much will be paid for letter postages and at least 5C per cent, more on parcels. The charge for a 281 b parcel was 3s 6d. Despatched by rail, as will be necessary with parcels over 111 b. in weight, it is expected the charge will on an average be at least half as much again. “The whole conception is the desperate expedient of a profligate Government," said the office manager of one large firm. “Unfortunately, we appear to have no means of securing redress." Criticising the new rates Mr Malcolm Stewart, immediate past president of the Auckland Chamber of Commerce, expressed the belief that the effect would be considerably to curtail the volume of post and telegraph business, and he did not consider the Government would reap the amount of extra revenue anticipated. The business world was looking to the Government to practice economies in an effort to balance the Budget, but, as a first step in that direction, the Government was adding to the cost of conducting business, firstly, by increasing railway freights and fares, and then by raising postal and telegraphic rates. Costs Raised All Round. Mr Stewart thought much greater economy would be practised in the despatch of telegrams. The increase in the night letter telegram rate from three words for a penny to two words for a penny would make senders most careful not to exceed the minimum rate, whereas under the old order there was not the same call to economise in the length of despatches. “Instead of the Government giving a lead in reducing costs it is raising them all round, and the complacent manner in which it has gone about it suggests it is having little regard to the effect on the community," said the managing director of one of Auckland s largest business houses. “The Government knows it has the commercial community in a cleft stick and it is squeezing them until they do not know what to do. Ordinary people, when they find their income reduced, cut their expenditure. The Government apparently goes gaily ahead with full expenditure and then turns to an already ever-taxed community to provide the money required for its schemes. Our taxes were raised last year, the railway fares and freights have been increased, now the post and telegraph charges have been raised, and we are threatened with a still further increase in taxation this year. If the commercial community sits Vwn under that lot it deserves eveiyTiling that It gets." “Most Stupid Thing.” “I am absolutely certain that it is one of the most stupid things the Government has attempted,” said a prominent city business man, discussing the new scale of postal and telegraphic charges. Business men generally take strong exception to the excessive nature of the Increases and the sudden, secret way in which they have been imposed by Order-in-Council, stating that so Important a matter ought to be referred to Parliament.

The opinion is freely expressed that the Government will not gain additional revenue from the high scale of charges. It is also believed that a large reduction in the volume of postal business is certain to follow. The Government might then reduce expenditure by dismissing employees, but that course would only increase the extent of the unemployment problem. Many firms are determined to employ boys for private delivery. Certain businesses are more affected than others. Among those feeling the position keenly are grocery firms with large country connections.

In an attempt to effect economy, the Te Awamutu Co-operative Dairy Company has circularised suppliers requesting permission ix> pay monthly credits direct to the bank on a schedule witn one covering cheque, thus saving both postage and stamp duty on thousands of cheques annually.