necessitated regulation by Congress. Before the railway became a factor in transportation, a system of contracting for the conveyance of the mails had been adopted which was based upon competitive bidding. Reliance was put upon competition to secure reasonable rates, and, during the stage-coach regime, the results seem to have proved fairly satisfactory. Early in the Thirties, however, complaints began to appear that competition was a failure in so far as rates for railway mail transportation were concerned, and that the government was paying exorbitant rates. In 1834, in a report to President Jackson, Postmaster General Barry stated that it was a subject worthy of inquiry whether measures might not then be taken to insure the transportation of the mails upon the rapidly multiplying railways of the country, and he expressed fear lest these corporations might make exorbitant demands "and prove eventually to be dangerous monopolies.""1

In 1835 the development of the situation in regard to the mail service was such that President Jackson used the following words: "Already does the spirit of monopoly begin to exhibit its natural propensities, in attempts to exact from the public

.. the most extravagant compensation. If these claims be persisted in the question may arise whether a combination of citizens, acting under charters of incorporation from the states, can, by a direct refusal, or the demand of an exorbitant price, exclude the United States from the established channels of communication between the different sections of the country; and whether the United States cannot secure to the Post Office Department the use of those roads, by an act of Congress which shall provide some equitable mode of adjusting

In 1838 an act was passed which declared all railways postroutes. This act of 1838 is the first of a series of acts regulating the rate of payment for mail transportation which extends down to our own day. It provided for a payment not to exceed 25 per cent. above what "similar transportation would cost in post coaches." Obviously there would be difficulty in determining what was similar transportation, and within a year another

1 Sen. Docs., 23 Cong., 2 Sess., no. 1.

act established a maximum of $300 per mile per annum.

Further development came in 1845 when railway mail routes were classified according to the importance of the service, etc., into three groups, receiving maximum rates of $300, $100, and $50 per mile per annum, respectively.

In general, it may be said that prior to 1850, the great need of the nation for increased postal facilities, acting and reacting with the demand for transportation facilities in general, made aid the characteristic attitude of Congress; but that as early as 1835 friction arose between the post office department and the railways which led to regulation of rates for the mail service and to rather radical proposals for railway control.

COMPLETED PARTS OF RAILWAYS MADE POST-ROUTES: 1853

Among the first important actions on the subject of the railway mail service of which record is found in congressional documents of the second half of the nineteenth century was an extension of the power of Congress over railways and an emphasis of their public nature. It will be remembered that in 1838 all railways had been declared post-routes. Under this act some difficulty arose from the question as to whether or not the transportation of mails might be refused by railways whose lines were not entirely completed, and in at least one case an injunction seems to have been imminent.2 To meet this difficulty an amendment was offered to the post-route bill of 1853, to the effect that parts of railways when in operation should be postroads with which the postmaster-general might contract according to existing law. As explained by Mr. Rusk, the object of the amendment was simply to make parts of railways which were finished, post-roads, like the whole.

The amendment was agreed to and the bill passed.3

THE ILLINOIS CENTRAL MAIL-SERVICE CONTROVERSY

The relations existing between government and railways at the middle of the century are, in so far as the mail service was

2 Cong. Globe, 1852-53, p. 934.

Statutes at Large, 32 Cong., 2 Sess., ch. 146, s. 3.

concerned, clearly indicated in a controversy which arose with the officials of the Illinois Central Railroad Co. Section six of the act of 1850, granting land to Illinois for railway purposes, provided that the United States mails should at all times be transported over the railway under the direction of the postmaster-general.

Accordingly, on August 4th, 1854, that company was offered $50 a mile per annum, less one-seventh for Sunday service omitted, to convey the mail six times a week over portions of its line. On the sixteenth of the same month the railway replied. So small a compensation could not be accepted. This need be embarrassing to neither party, however, inasmuch as the landgrant act of 1850, which contained the provisions concerning mail transportation, declared that Congress was to prescribe the rates. If the postmaster-general should not feel justified in paying a rate satisfactory to the railway, the latter would be content to await the decision of Congress. But, in presenting its bill in January, 1855, the company thought better of it and accepted the proposed terms, with the proviso that it was not to be bound by them for future service.

Meanwhile complaint was being made concerning its mail service. In a letter addressed to the president, Hon. Geo. W. Jones stated that the company was refusing to be governed by the post office department, or to conform to the schedules prescribed by that branch of the government for the transportation of the mails; and that the people of Iowa and Minnesota were especially dissatisfied with the arrival and departure of mail at Dubuque, the distributing post office for the Northwest." The president of the railway company flatly denied the charge. Admitting the obligation to transport the mails, he stated that his company had contracted for such transportation and had faithfully performed its duty, and concluded by gratuitously stating his belief that the only effectual remedy for the alleged abuses would be found in the proper courts.

Erec. Docs., 1855-56, 12: no. 48.

See above, Bul. of U. of W., Econ. and Pol. Sci. Series, 3: 363; reprint, vol. I. p. 197.

* Sen. Docs., 1855-56, 10: no. 39.

In this same year, 1856, the Senate passed a resolution calling for copies of the above correspondence and other information concerning the transportation of mail and munitions of war over the Illinois Central railroad.

UNSATISFACTORY CONDITIONS IN THE MAIL SERVICE

7

The affair with the Illinois Central is quite illustrative of the general situation. In 1854 complaint is found that the railways were carrying the mails or not, as they pleased, and the proposal was made to suspend duties on railway iron in return for free mail transportation. Two years later, the Senate committee on post office and post roads reported a bill making it the duty of the postmaster-general to form eight-year contracts with all railways desirous of carrying the mails, the companies to be entitled to import railway iron duty-free during the life of the contract as full compensation.

8

The annual report of the postmaster-general in 1859, in referring to an effort being made to correct abuses, told of a tendency on the part of many railways to evade their proper obligations. Of 318 railway routes, 137 carried the mails without contract, the result being that they did much as they pleased, "departing and arriving at such hours and moving at such speed as was agreeable to them." Said the postmastergeneral, "With every disposition to deal with them most liberally, and with a full recognition of their value as postal agents, still it is manifest that their present attitude— seemingly defiant in its tone, as it is disorganizing in its tendencies cannot be endured without humiliation to the government and without serious peril to those great interests which it is the mission of the department to uphold and advance." He concluded with a threat that the mails will be withdrawn from roads failing to make contracts with the department before March 31, 1860.10

Meanwhile, with the rapid expansion of the nation and the

Cong. Globe, 33 Cong., 1 Sess., p. 888.

8 Sen. Rep., 1856-57, no. 306. Daily service once each way. See Sen. Exec. Docs., 48 Cong., 2 Sess., 1: no. 40.

10 Ibid., p. 56.

growth of the mail service, stimulated by improvements in the latter made about the year 1865, there became manifest a necessity for better ways of paying the railways; for there had been no change in this matter since 1845. In 1869 and 1870 the attention of Congress was called to the subject. The railway companies had refused to give the facilities desired on the ground of inadequate pay, and numerous complaints of inefficient service were being made.11 Annoying difficulties met the department.

A PERIOD OF MUCH REGULATION OF THE MAIL SERVICE BEGINS: 1870

12

Accordingly, in 1870, we find a bill introduced, the object of which was to require railways to receive and deliver the mails." Having been read a first and second time, the bill was referred to the committee on post office and post-roads; but no further action was taken.

In this same year it was enacted that corporations should carry the mails in the District of Columbia when requested; the rates to be determined, in case of disagreement, by three commissioners appointed by the supreme court.13

This period was one of great discussion concerning reasonable compensation for mail transportation, several reports and acts bearing on that subject being found. By 1873 there were over 63,000 miles of railway post-routes, and, in round numbers 65,621,000 miles of annual mail transportation at an average cost of 11 cents a mile. Such being the extent of the service and the amount of the funds involved, it is little wonder that the private interests of the railway corporations brought them into conflict with the government, especially, when it is remembered how slightly developed was the social side of the railway business.

In 1872 the "Post Office Act" was passed-a law consolidating, revising, and amending statutes relating to the department.14

11 Ibid., p. 64.

12 Cong. Globc, 1870-71, p. 129.

1 Statules at Large, 16: 115, s. S.

14 Ibid., 17: 309, ss. 210-214.