106c. The American Printer, New York, February, 1902. (See cover and page 44.) (See pages 106d. The International Printer, Philadelphia, Pa., August, 1905. 92. 104, and 152.) 106e. New England Stationer and Printer, Holyoke, Mass., July 10, 1903. (See cover and article on page 28 in regard thereto.) Description. The above publications show the practice of publishers in including in their publications samples of paper (merchandise) and mailing the same at the pound rate of postage. This matter sent otherwise than in a copy of a publication would be subject to the rate of 1 cent an ounce. EXHIBIT 107.-Herbert's Magazine. 107a-1. October, 1903. 107a-2. May, 1904. 107a-3. August, 1904. Description. This case illustrates the variety of forms in which not infrequently a publisher issues his publicaton. This publisher started issuing by using the so-called “Brooks ready print service" (see 107a-1). The magazine consisted of a publication of about 75 pages, 94 by 7 inches. The form was then changed (see 107a-2) to a magazine of 16 pages, 11 by 16 inches in size, and later the magazine was again changed (see 107a-3) to one of 32 pages, 44 by 6 inches in size. EXHIBIT 108. 108a. Religious Education, August, 1906. 108b. The Saturday Blade, March 10, 1906. 108. The Chicago Ledger, September 1, 1906. 108d. Hearst's American Home and Farm, April 26, 1906. (All of the above entered at Chicago, Ill.) Description.-The first (108a) of the above publications is a monthly, and when addressed for delivery in Chicago each copy is subject to postage at the rate of 2 cents each, inasmuch as it weighs in excess of 2 ounces. The other publications (108b, 108e, and 1084) are of the mail-order type and contain the usual large amount of advertising, and when addressed for delivery in Chicago, are, being weeklies, only subject to postage at the pound rate. The above shows the discrimination in the law against publications issued other than weekly. XIII. The following exhibits (109 to 114, inclusive), illustrate a few of the questions arising under the act of July 16, 1894, which reads as follows: PUBLICATIONS OF FRATERNAL SOCIETIES, EDUCATIONAL INSTITUTIONS, ETC.-All periodical publications issued from a known place of publication at stated intervals and as frequently as four times a year by or under the auspices of a benevolent or fraternal society or order organized under the lodge system and having a bona fide membership of not less than 1.000 persons, or by a regularly incorporated institution of learning, or by or under the auspices of a trades union, and all publications of strictly professional, literary, historical, or scientific societies, including the bulletins issued by State boards of health, shall be admitted to the mails as second-class matter and the postage thereon shall be the same as on other second-class matter and no more: Provided further, That such matter shall be originated and published to further the objects and purposes of such society, order, trades union, or intsitution of learning, and shall be formed of printed paper sheets without board, cloth, leather, or other substantial binding, such as distinguish printed books for preservation from periodical publications. (Act of July 16, 1894, ch. 137; 2 Supp., 196.) EXHITIT 109. 109a. Classical Journal, published by the University of Chicago, June, 1906. 109b. Classical Philology, published by the University of Chicago, July, 1906. 109e. The University Record, published by the University of Chicago, April, 1906. Description. Each of the above publications might be regarded as having the characteristics of periodical publications, as defined by the Supreme Court of the United States, as follows: "A periodical, as ordinarily understood, is a publication appearing at stated intervals, each number of which contains a variety of original articles by different authors, devoted either to general literature of some special branch of learning or to a special class of subjects." EXHIBIT 110. 110a. Weekly News Letter of the University of California, Berkeley, Cal., No. 26, July 13, 1906. Description.—The alleged publication consists of three typewritten pages and is, as the name of the publication signifies, a “letter” of the University of California. Admission of this publication was sought on the ground of its being a periodical publication entitled to entry under the act of July 16, 1894, on account of the University of California being a "regularly incorporated institution of learning" and this being one of its publications. 110b. University News Letter, Saturday, August 20, 1904. Description. This "letter" is published weekly by the University of Missouri, at Columbia, Mo., and is a hectograph or mimeograph copy of an article and was offered for entry as being an issue of a periodical publication entitled to entry under the act of July 16, 1894, on account of its being published by the University of Missouri as a regularly incorporated institution of learning. EXHIBIT 111. 111a. C. A. C. Bulletin, October-December, 1905. Description. The above are all issues of an alleged publication entered as second-class matter under the act of July 16, 1894. 111a consists of a red card 6 by 34 inches in size. 111b consists of a little folder of 28 pages by 3 inches in size. 111c consists of a pamphlet of 8 pages 9 by 6 inches in size. 111d is the College Annual Catalogue, consisting of about 160 pages. The question for the Department to determine is, Are all of these issues of one publication, and is such publication a “periodical?” EXHIBIT 112.-Bulletin of Yale University. 112a. October, 1905. 112b. June, 1906. 112c. August, 1906. 112d. December, 1904. Description. The above four exhibits are issues of one periodical publication and are unlike in physical features, the matter contained in the October, 1905 (112a), issue being a catalogue of the academical department of Yale College contained in 231 pages; the June, 1906, issue (112b) being the annual report of the president of Yale College contained in 210 pages; the August, 1906, issue (112c) being the annual report of the librarian of Yale College contained in 26 pages, and the December, 1904, issue (112d) being the annual general catalogue of the institution with 767 pages-four annuals. The remarks made in connection with Exhibit 111 apply in this case. EXHIBIT 113. 113a. Bulletin of the University of Mississippi. 113b. New York University Bulletin. Description. These publications illustrate the remarks made in connection with Exhibit 112. EXHIBIT 114.-The George Washington University Bulletin. 114a-1. Cover section. 114a-2. Part 1. 114a-3. Part 2 and catalogue number. Description.-The above exhibits show the practice of the publisher of a college publication issuing the same in alleged parts or sections. This is the only attempt coming to the attention of the Department on the part of the publisher of a publication entered under the act of July 16, 1894, to issue the same in so-called parts or sections. The CHAIRMAN. If any gentlemen who are present before the Commission desire to submit any question to Mr. Madden, this will be a convenient time for him to answer them. Mr. O. J. Victor appeared before the Commission. Mr. VICTOR. I can not say I represent any organization, but I hope I will be permitted to ask Mr. Madden a question or two. The CHAIRMAN. Proceed. Mr. VICTOR. Mr. Madden, you said, what has been repeated over and over again, that the cost of carriage is 7 cents a pound, and you base all of your estimates, I infer, upon that figure. We have never been able. in all of our work upon the subject, and I have been engaged in it a long, long while, to ascertain why you name 7 cents as the cost of carriage. Upon what data do you base that sum of 7 cents a pound for carriage? Mr. MADDEN. I have not with me, Mr. Chairman and members of the Commission, the papers on which this tabulation was made, and exactly what items were taken into account; but the mail service of the country is provided for carrying four classes of mail matter Senator CARTER. Permit me to interrupt you. Did I understand you to say "carrying" or "handling?" Mr. MADDEN. I mean handling Senator CARTER. There seems to be a confusion of terms. Mr. KRACKOWIZER. He said 5 cents for the carriage and 2 cents for the handling.. Mr. MADDEN. It has been estimated that way. Mr. KRACKOWIZER. That is the same question. How do you get at the figures? Mr. MADDEN. I understand by comparing the revenue and the volume of matter carried. The service is maintained for handling four classes of matter. They yield a certain revenue. The average cost per pound is about so much. Mr. VICTOR. Let me ask you a further question. You will excuse me for questioning you on this matter, but I think it is an important point. A previous Commission was appointed by Congress, which investigated this question very, very thoroughly. It held meetings all over this country at five different points. It published a report comprised of three large octavo volumes containing the summary of all the evidence offered. It employed the professor of economics in the Ann Arbor University to investigate this very question which I propound, and his conclusion, as stated in that report, was that the cost of carriage was only 3 cents and a little less than three-fourths of a cent a pound. That was the conclusion of the expert called upon by that Commission to investigate that question. Senator CARTER. Mr. Victor, did he reach the conclusion that the actual cost of carriage was 3 cents per pound or that the amount paid for carriage was 3 cents per pound? Mr. VICTOR. He estimated that to be the cost of carriage by the railroads. It was in justification of the charge that the railroads were overcharging the United States Government for its service, and he was called upon to determine that-whether the United States Government overpaid the railways for their service. He announced that the cost of carriage was 3 cents and a little less than three-quarters of a cent per pound, and the inference naturally was, of course, by all parties, that any sum in excess of that was an overcharge to the United States Government for the carriage of mail. 626A-07- -6 Senator CARTER. Then he did not take issue with the proposition that the amount paid was 5 cents per pound, but reached the conclusion that the amount should be 3 instead of 5 cents per pound for carriage? Mr. VICTOR. That was in reply to the question of the Commission as to the actual cost of the carriage of that matter to the railways themselves. Mr. GLASGOW. I desire to ask Mr. Madden a question or two. The CHAIRMAN. Mr. Glasgow, will you state to the stenographer your full name and residence? Mr. GLASGOW. I represent in this matter the Periodical Publishers" Association. My name is William A. Glasgow, jr., and I live at Philadelphia. Mr. Madden, there are one or two questions I want to ask you. I understand that these exhibits you have shown us are for the purpose of indicating to what extent evasions of the postal laws, as you construe them, are attempted. Is that the idea about it? Mr. MADDEN. Partially. Mr. GLASGOW. And this represents, as I understand, a very small proportion of such character of evasion and troublesome matters that are presented to the Department? Mr. MADDEN. Yes, sir. Mr. GLASGOW. Where is the difficulty in the Department passing upon these questions as evasions? Mr. MADDEN. Uncertainty of the law. lack of sufficient force to catch them in time to charge the legal rate. If we rule against them in one form they appear in another, as the exhibits show. Mr. GLASGOW. But the point I want to direct your attention to is this: Is there any difficulty, with the view you have of the interpretation of the law-which I am not prepared to say is not the correct interpretation of it-in your determining in your own mind satisfactorily that these are evasions of the law? Mr. MADDEN. I have been taught, by experience, to rule on individual cases; not to make any general statements of that kind. Some might fall just within; some just without. Mr. GLASGOW. We are not sparring with each other about this. What I want to know is, have you not your own views, well defined, as to whether these are evasions or not? Mr. MADDEN. Yes, sir. Mr. GLASGOW. What is the difficulty with your enforcing your views? Mr. MADDEN. I think the difficulty was made clear as I went along. Mr. GLASGOW. I did not just understand it. Mr. MADDEN. That was what I was aiming to do-to give you the difficulty. I would have to go over that again. Mr. GLASGOW. I do not mean that at all. I mean if you knew that a newspaper every week was offering to the mail these tremendous volumes of papers and evading the law, what is the difficulty in your stopping them? Mr. MADDEN. The difficulty, first, is to catch them, and then to rule on the particular case. Mr. GLASGOW. That is always the trouble. Mr. MADDEN. I explained one case that took us three months and a half to find out whether there was a legitimate list of subscribers or not. Mr. GLASGOW. Just take one illustration. Probably I do not understand you. I refer to the law which prevents putting handwriting upon newspapers. You do not have any difficulty particularly in that as far as the enforcement of the law is concerned, do you? Mr. MADDEN. Not when we find it. Mr. GLASGOW. I mean you would not suppose there was a general infraction of that provision of the law? Mr. MADDEN. Not as to writing: no. Mr. GLASGOW. That is just as difficult to detect as the question presented here of one of these folders being inside wrapped up. What is the difference in your capacity to enforce one and not the other? That is what I wanted to understand. Mr. MADDEN. The question is this: We have to take, under a strict interpretation of that law, each copy as it comes into the post-office and find out whether it is written upon or whether there is anything included with it that is not legal to be there. It is an impossible task-the investigation alone. Mr. GLASGOW. What I mean is this: You say there is no difficulty in enforcing the provision as to writing on second-class matter. I can not understand why there should be any more difficulty, if the Department construes the law and puts its construction upon it, in enforcing that construction than in enforcing its construction that there shall not be writing on the papers. That is what I want to get cleared up if I can. Mr. MADDEN. To answer that question I would have to go over the whole subject again from beginning to end to show you, in the first place, the difficulty at the various post-offices of the country of making an inspection, and, in the next place, determining whether or not the matter was entitled to go or was excluded by the law. Mr. GLASGOW. Do you rule on these questions that are presented? Mr. MADDEN. Yes, sir; when we get them. Mr. GLASGOW. You have no difficulty in enforcing your rulings, have you? Mr. MADDEN. I will give you an illustration of that. I am glad you reminded me of it, so that I may. I think probably all the periodical publishers will be interested." The privilege of second-class matter is confined to the newspaper or the periodical itself. The publisher is not entitled to put in any thing except certain things which the law provides for. Lately there has grown up the practice among advertisers of including a little coupon on the advertisement. It is for the convenience of the reader to fill out and send back to the advertiser. That is the equivalent of inclosing a sheet of writing paper. First one publisher put it in a little corner and it passed because we have failed to notice It goes on perhaps for years until that particular thing is called to our attention. Somebody else sees it and copies the idea. That somebody else goes the first idea a little better and increases the size of the corner; another makes a square. It goes on that way until it (the coupon or coupons) covers a whole page and sometimes a number of pages. After it has gone on a while attention is called to it, and in this particular case the views of the Attorney-General |