Government in the United States, National, State and Local

The Sherman Anti-"trust" Law.– Finally, in obedience to a widespread popular demand, Congress took action in 1890 by passing what is popularly known as the Sherman anti-"trust" act to protect trade and commerce among the states against unlawful restraint and monopolies. This act declared that every contract, combination in the form of trust or otherwise, or conspiracy in restraint of trade or commerce among the states or with foreign nations was illegal, and it prescribed appropriate penalties for violations thereof. This law, however, applies only to "trusts" which are in restraint of trade among the states or with foreign nations. It has no application to those whose activities are confined entirely within the boundaries of a single state; with such "trusts" the states alone have the power to deal.

In pursuance of the act of 1890, prosecutions have been instituted in the federal courts against a large number of "trusts," and some of them have been broken up, but the larger number have escaped. In 1911, for example, the Supreme Court decided that the Standard Oil and tobacco "trusts" were illegal, and their dissolution was decreed.

The Clayton Anti-"trust" Act.– In 1914 Congress passed another important act directed against combinations in restraint of trade. In brief, it prohibits price discriminations among purchasers, exclusive trade agreements between manufacturers and retailers, the holding of the stock of one corporation by another, and interlocking directorates. Like the other anti-"trust" acts it applies, of course, only to persons or corporations engaged in interstate commerce or trade. To enforce the act a federal trade commission was created. It consists of five members appointed by the President, at a salary of $10,000 each.

Federal Pure Food Legislation.– The commerce clause of the Constitution is also the source of some important legislation designed to protect the public against impure, unwholesome, and adulterated foods produced in the United States. We have already called attention to the legislation of Congress against the importation of impure foods, and teas from abroad. Still more recently Congress passed an interstate pure food law prohibiting the transportation among the states and territories of any food products which are adulterated or which contain foreign substances not indicated in the labels. The law also provides for the fixing of a standard of pure foods and other products transported from one state to another or intended for interstate transportation, and provides that they must come up to the standard prescribed.

The Meat Inspection Law.– To protect the public against unwholesome meat products, Congress enacted in 1891 a law which was strengthened in important particulars in 1906, providing for the inspection of slaughtering houses whose products are intended for interstate commerce. The law requires the registration of all establishments engaged in slaughtering animals the products of which are to be shipped into other states or are intended for export. Each is given a number, and federal inspectors are assigned to inspect the animals intended for slaughter, to inspect their carcasses in certain cases, and to see that the business of slaughtering is conducted under clean and wholesome conditions. Animals found suffering with certain diseases are not allowed to be slaughtered for food purposes, and meat discovered to be unwholesome must be rejected. Supervision is also exercised over the processes of packing and canning, and there are detailed regulations in regard to labeling.

References. Andrews, Manual of the Constitution, pp. 89-95. Beard, American Government, ch. xix. Cooley, Principles of Constitutional Law, pp. 66-88. Hart, Actual Government, ch. xxiv. Hinsdale, American Government, secs. 374-380. Johnson, Railway Transportation, ch. xxvi.

Illustrative Material.– Annual reports of the Interstate Commerce Commission, of the Department of Agriculture, of the Attorney-General, of the Commissioner of Navigation, of the Commissioner of Immigration, and of the Public Health and Marine Hospital Service.

Research Questions

1. What were the reasons for giving Congress control over foreign and interstate commerce?

2. Why did the delegates from the Southern states oppose giving this power to Congress?

3. What is meant by the "original package" doctrine?

4. Why should a railroad company be prohibited from granting rebates? For charging more for a "short haul" than for a "long haul"? From transporting the products of its own mines and manufactories? From pooling its freight or earnings?

5. What are the arguments for and against granting government subsidies for the upbuilding of the merchant marine?

6. What have been the principal reasons for the decline of the American carrying trade?

7. What is the amount of money annually appropriated for improving the rivers and harbors of the country?

8. How has the commerce clause of the Constitution been the source of important extensions of the power of the national government? Mention some important recent acts of Congress that have been passed in pursuance of this clause.

9. Should Congress, in your judgment, impose greater restrictions upon immigration than it now imposes?

10. Do you think Congress should have power to regulate the business of life insurance? To regulate marriage and divorce?

11. Is the policy of governmental regulation of railroads preferable to governmental ownership? Give your reasons.

CHAPTER XIV
OTHER IMPORTANT POWERS OF CONGRESS

THE POST OFFICE, COPYRIGHTS, PATENTS, THE ARMY, THE

NAVY, ETC

The Postal Service.– The beginnings of the postal service in the United States date back to the action of the Continental Congress in creating a post office department in 1775, and appointing Benjamin Franklin as its head. Under Franklin's direction postal routes were established throughout the colonies and the mails were carried over them at intervals of one or two weeks. In 1776 there were twenty-eight post offices located in the more important towns. The Constitution gave Congress power to establish post offices and post roads, and when the new government was established, the postal service was reorganized and extended. In 1790, however, there were only seventy-five post offices in the thirteen states, and less than 2,000 miles of post roads. The total revenues were only $37,000, and the expenditures only $32,000. Now there are more than 60,000 offices and over 25,000 different routes, with an aggregate mileage of about 450,000 miles. A recent postmaster-general has well said: "The postal establishment of the United States is the greatest business concern in the world. It handles more pieces, employs more men, spends more money, brings more revenue, uses more agencies, reaches more homes, involves more details, and touches more interests than any other human organization, public or private, governmental or corporate." Some idea of the magnitude of the service may be gained from the fact that during the year 1919 about twenty billion pieces of mail were handled, more than $1,000,000,000 worth of domestic money orders were issued, and more than 120,000,000 articles were registered. The receipts for the year 1919 aggregated $364,847,126, and the expenditures $362,497,635.

The Postal Deficit.– For many years the postal service was operated at a loss, the principal causes of the deficit being due to the loss sustained by the government on the transportation of second-class matter and through the rural free delivery service. During the fiscal year 1917 the loss on the former account aggregated $72,000,000 and on the latter about half that amount. There is also a heavy loss on mail carried free under the Congressional frank. Thus in 1917 more than 60,000,000 pounds of such mail was carried, the postage on which would have cost more than $20,000,000. Nevertheless by rigorous economy the deficit was made to disappear in 1911 for the first time in thirty years. In 1917 there was a surplus of more than $9,000,000.

Mail Matter.– Congress has power to decide what matter shall be admitted to the mails and what shall be excluded. In addition to books and printed matter generally it allows parcels of merchandise weighing not more than seventy pounds to be carried through the mails; also seeds, bulbs, roots, samples of flour, dried fruits, cut flowers, geological and botanical specimens, soap, nuts, live queen bees, dried insects, etc. On the other hand, the following matter is denied admission to the mails: parcels weighing over seventy pounds; poisons, explosives, live animals, liquors and other objects unsuitable for transportation in the mails; obscene matter and articles adapted or designed for immoral purposes; all matter relating to lotteries and schemes for swindling the public, and, by acts of 1917, advertisements of intoxicating liquor intended for distribution in prohibition states and printed matter advocating treason, insurrection, resistance to the laws, disloyalty, etc.

"Fraud Orders."– The mails are so frequently used by dishonest concerns for circulating advertising matter designed to defraud the public, that a law has been passed authorizing the postmaster-general to withhold the privileges of the postal service from persons using it for such purposes. In pursuance of this authority, he frequently issues "fraud orders," instructing the local postmaster not to deliver mail to specified fraudulent concerns. It was reported in 1913 that in two years such concerns had swindled the people out of $129,000,000.

Classification of Mail Matter.– Mail is classified into four different classes: first, letters and postal cards; second, newspapers and other periodical publications; third, printed matter not admitted to the second class; and fourth, merchandise not comprehended in the other three classes.

The Rates of Postage on the different classes have varied in amount from time to time. In the early history of the post-office department the rates for transporting letters were regulated on the basis of the distance carried, and according to the number of sheets in the letter, the amount ranging from six to twenty-five cents. Since 1863, however, there has been a uniform rate on letters irrespective of distance. In 1883 the rate was fixed at two cents; in 1917, three cents; in 1919, two cents. Before 1847, when the adhesive postage stamps were introduced, payment of postage was made in cash and the amount indorsed on the envelope. Postal cards were introduced in 1872.

On the transportation of first-class mail the government realizes a profit estimated at $60,000,000 per year, notwithstanding the long distance much of it is carried. There is also a substantial profit derived from foreign mail.

Second-Class Matter mailed by the publishers is carried at the rate of 1½ cents a pound, with an added charge (depending on distance) for advertising matter;⁴⁵ but newspapers are carried free to any office within the county of publication except in cities having free delivery service. The government has sustained heavy losses in carrying second-class matter. In the year 1917 more than 1,200,000,000 pounds was transported at a loss of over six cents per pound. It constituted over 60 per cent of all domestic mail, but yielded less than five per cent of the postal revenues, the loss being greater than the profits realized on all other classes of mail combined.

Should the Second-Class Rate be Increased?– For some years there was considerable agitation in favor of increasing the rate paid by publishers, especially on magazines which are overloaded with advertising matter and on other publications which are devoted largely to advertising purposes. Successive postmasters-general urged a readjustment of the rates, but until 1917 Congress took no action further than to appoint a commission to investigate and report on the subject. The two suggestions most considered were, that a higher rate should be imposed on magazines than on newspapers in view of the fact that the average distance of transportation is greater in the case of magazines than in the case of newspapers, and that a higher rate be imposed on advertising matter than on purely reading matter.

Against these arguments it was contended that the educational benefits derived from the extensive circulation of second-class matter are very great, and that for this reason the government can well afford to contribute something toward the dissemination of advertising information among the masses of the people. Moreover, it was argued that the circulation of second-class matter is responsible for a large amount of first-class matter and thus the government makes up in the increased profits on first-class matter what it loses on second-class matter. Thus it was said that fifty pages of advertising matter in a popular magazine might lead to the writing of 50,000 letters. Consequently a reduction in the volume of second-class matter would inevitably be followed by a corresponding reduction in first-class matter.

Finally in 1917 Congress passed a law providing for a graduated increase in the rates on the advertising portions of newspapers and magazines, the amount depending on the distance carried.

Free Delivery Service.– The extension of rural free delivery service has been the most rapid and remarkable of all the undertakings of the post office department. It began as an experiment in 1897, when less than $15,000 was appropriated to test the advantage of free delivery in country districts, and it has been extended until it now constitutes one of the largest branches of the postal service, the annual expenditures on account of the service exceeding $50,000,000. This is the largest item of expenditure by the post office department on any of its services except the transportation of mail on the railroads, which foots up nearly $55,000,000. There are more than 40,000 rural free delivery routes in operation, and nearly three billion pieces of mail are annually delivered to 27,000,000 people along these routes. An investigation made in 1909 showed that the postage on the average amount of mail collected on a rural route was $14.92 per month, while the average cost of the service was $72.17. The average cost of the service on a rural route, therefore, exceeded the average revenue derived from postage by $687 per year. On that basis the total loss on the operation of the service was estimated to be about $28,000,000. But while the loss to the government in money has been great, the advantage to the country districts served has been notable. Besides the convenience to the country residents it has brought them into closer relation with the centers of population, made country life more attractive and less monotonous, increased farm values, and encouraged the improvement of country roads, since the department insists upon the maintenance of the highways in good condition as a prerequisite to the introduction and continuance of the service.

Free Delivery in Cities.– Free delivery of mail in the larger towns and cities was first introduced during the Civil War, and the service has been extended to include all places of not less than 10,000 inhabitants or where the postal receipts are not less than $10,000 per year. In 1885, provision was made by which immediate delivery ("special delivery") of a letter upon its arrival at a city post office could be secured by payment of ten cents.

Registry Service.– In 1855, Congress established the registry service, by which upon the payment of extra postage – the extra rate is now ten cents per letter or parcel – special care is taken of letters or parcels registered. Thus the safe delivery of a valuable letter or parcel is practically assured, and by a recent law the post office department has provided a system of insurance against the loss of parcels mail – the maximum amount allowed in case of loss being one hundred dollars.

Money-Order Service.– In 1864 the money-order service was established, by which upon the payment of a small fee, ranging from three to thirty cents according to the amount of the order, money may be sent through the mails without danger of loss. At all the larger post offices and at many of the smaller ones, international money orders may also be obtained at rates ranging from ten cents to one dollar, payable in almost any part of the world where the mails are carried. The primary object of the postal money-order service is to provide for the public a safe, convenient, and cheap method of making remittances by mail, and it is the declared policy of the department to extend the service to all post offices where its introduction is practicable.

Postal Savings Banks.– One of the most important extensions of the postal service is the establishment of a system of postal savings banks, authorized by an act of Congress passed in 1910.⁴⁶ This service has long been performed by the governments of many other countries, and its introduction into the United States had been strongly recommended by successive postmasters-general for a number of years. The proposition was also indorsed by both of the great political parties in their national platforms. In favor of the proposition it was pointed out that in many communities private savings banks are inaccessible, there being only one such bank to every 52,000 of the population of the country, as a whole; that on account of the popular distrust of private savings banks in many communities, savings were hoarded and hidden and thus kept out of circulation; that on account of the popular confidence in the government the establishment of savings banks under its auspices would cause the money now hidden to be brought out and put into circulation; that it would encourage thrift and economy as well as stimulate loyalty and patriotism among depositors; and that it would improve the conditions of farm life, thus supplementing the work of the rural free delivery service, the telephone, and the interurban trolley car.

The new law for the establishment of postal savings banks, as amended in 1918, provides that any person may deposit with the local postmaster of any office which has been made a depository (there were over 7000 such offices in 1918) any amount from one dollar up to $2500 and receive interest thereon at two per cent per annum, provided the amount has been on deposit at least six months. Detailed provisions are made for the investment by the government of the sums deposited in the post offices throughout the country. There were in 1919 over 565,000 depositors and the total deposits were $167,323,260, – an average of nearly $300 per depositor.

Parcel Post Service.– In many countries the post office department also performs, through the parcel post service, what amounts to an express business. Thus in a number of the European countries one may send boxes or parcels weighing as much as fifty or even one hundred pounds through the mails at very low rates of postage. In the United States books and packages of merchandise may be sent through the mails, but the weight of the package except in the case of books was until 1913 limited to four pounds.⁴⁷ The limitation as to weight and the comparatively high rate of postage – sixteen cents per pound – made resort to the express companies necessary much more than in Europe. For some years there was a widespread agitation for the establishment of a parcel post system in the United States, and in 1912 Congress provided for the installation of such a system on January 1, 1913. The maximum weight limit of parcels that might be transported through the mails was increased to eleven pounds (and later to fifty pounds; seventy pounds for short distances), and the list of mailable articles was enlarged so as to include butter, eggs, meats, fruits, and vegetables. In 1914 books were added to the list. The country is divided into zones according to the distance from each post office, and the rate of postage varies both with the weight and with the zone to which it is sent. About one billion parcels, weighing over two billion pounds, are handled annually. So popular is the service that in 1914 the postmaster-general recommended that the government take steps toward acquiring the telegraph and telephone service of the country.

Postal Subsidies.– In recent years there has been considerable agitation, principally by the postal authorities and the commercial organizations of the country, in favor of extending our postal facilities with certain foreign countries, notably South America and the Orient, where they are now very inadequate. While most of the European governments have quick and frequent postal communications with these countries, ours are slow and infrequent. Most foreign governments have adopted the policy of subsidizing private steamship lines to carry the mails to out-of-the-way places. In 1891, Congress passed a law for this purpose, but the amount appropriated is so small that the post office department has not been able to extend our mail facilities with foreign countries as rapidly as needed.

Shipping Board.– With a view to building up the American merchant marine, which in recent years had greatly declined, Congress in 1916 provided for the appointment by the President of a federal shipping board composed of five commissioners with power to construct or purchase merchant vessels suitable as naval auxiliaries and for the carriage of American commerce. The board is also to supervise common carriers engaged in transportation by water. As a war measure, the extent of its building operations was greatly increased in 1917.

International Postal Union.– In this connection it may be noted that practically all the countries of the world have joined in forming what is known as the International Postal Union, for the reciprocal exchange of mails between the post offices of all countries belonging to the Union. The rates are fixed by a congress which represents the member states and which meets, in normal times, every five years. A letter may therefore be sent from one country to any other in the Union at a uniform rate, which, with some exceptions, is five cents. By special arrangement the rate on letters between the United States and the British Isles has been reduced to two cents. Likewise the rate between the United States and Canada or Mexico or most of the West Indies is by special arrangement two cents.

Classes of Post Offices.– Post offices are grouped in four classes on the basis of their gross annual receipts. First-class offices are those whose gross receipts exceed $40,000 a year.⁴⁸ They are usually located in buildings owned by the government, and in the larger cities there are branch offices or sub-stations in different parts of the city. Fourth-class offices are those whose annual receipts are below $1,000. Salaries of postmasters of the offices of the first three classes are determined mainly on the basis of the receipts of the office. Fourth-class postmasters receive no fixed salary, but instead are paid a percentage of the value of the stamps cancelled. In the larger post offices there are in addition to the postmaster one or more assistant postmasters and a force of clerks and carriers, the number depending on the amount of business and the size of the city. All postmasters are appointed after examinations under the civil service rules. Postmasters of the fourth class are appointed by the postmaster-general; those of the other three classes are appointed by the President.

Copyrights.– The Constitution gives Congress the power to promote the progress of science and useful arts by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries. The purpose of the copyright law is to protect authors from having their books and other writings republished without their permission, and hence to prevent the rewards of their talent and industry from being appropriated by others. In pursuance of this provision Congress has enacted legislation enumerating the productions for which copyrights may be granted, the conditions under which they may be secured, and the terms for which the protection shall last. The law provides that copyrights may be granted for books, musical compositions, maps, works of art, photographs, and even for unpublished works. In the case of published works two copies of the best edition must be deposited with the register of copyrights at Washington. The ordinary form of copyright notice is "Copyright, 19 – , by A. B."

The term of the copyright is twenty-eight years, but it may be renewed for another period of twenty-eight years. During the period of the copyright the author has the exclusive right to print, publish, and sell the article copyrighted, and in case of infringement he may have recourse to the federal courts for damages on account of the loss sustained. A copyright may be sold or otherwise transferred, but the fact must be recorded by the register of copyrights.

International Copyright.– Formerly the writings of an American author might be republished in a foreign country without his consent, and thus he had no protection outside of his own country. Accordingly, to secure protection to American authors against the republication of their works in foreign countries without their consent, Congress enacted laws in 1891 and 1909, looking toward the reciprocal protection of American and foreign authors against infringement of the rights of each in the country of the other. In pursuance of these acts a copyright will be granted to a foreign author protecting him against the republication of his works in the United States, provided the government of which he is a subject will grant similar protection to American authors. But in the case of foreign books published in the English language the book must be printed and bound in the United States in order to secure the benefits of copyright. International copyright treaties designed to secure protection of this sort have been entered into between the United States and a number of foreign countries.

Patents.– A patent is a form of protection granted by the government to an inventor to secure to him for a limited period the exclusive enjoyment of the fruits of his skill and industry. Patents were granted by the state governments until the Constitution conferred this power on Congress. In 179 °Congress passed a law authorizing the granting of patents for new and useful inventions, and this law has been amended and its scope extended several times since.

The Patent Office.– In 1836, an office or bureau charged with receiving applications, conducting examinations, and granting patents was created in the department of state, but it was transferred to the department of the interior in 1849. This office has grown to be one of the largest and most important branches of the government service. It has a large number of examiners and experts arranged in groups, each of which examines the applications for patents for inventions of a particular class.

Conditions.– The applicant for a patent must declare upon oath that he believes himself to be the original inventor of the article for which he desires a patent, and he must submit with his application a full description or drawing of the invention, and if demanded, also a model of the same. The invention must be a useful one, for patents will not be granted for inventions which have no practical or scientific value. If the patent is refused by the commissioner of patents, the applicant can take an appeal to the court of appeals of the District of Columbia. A fee of fifteen dollars is charged for filing the application, and one of twenty dollars for issuing the patent.⁴⁹ The term for which a patent may be issued under the present law is seventeen years, which term may be extended only by act of Congress. When a patent is granted the word "patented" with the date on which it was issued must be placed on the article in order that the public may have notice of the fact that it is patented. During the term of the patent the inventor has the exclusive right to manufacture, use, or sell the article, and in case of infringement the law allows him to apply for an injunction to restrain the infringer, or to sue for damages. Patents, like copyrights, may be assigned or otherwise transferred, provided a record of the transfer is made in the patent office.⁵⁰

Number of Patents Granted.– The inventive genius of the American people is shown by the large number of patents which have been issued since the first patent law was passed in 1790. The number granted during the year 1919 alone amounted to 37,259. The annual reports of the commissioner of patents, containing a list of the patents granted, together with specifications and drawings of the inventions for which patents have been issued, constitute a remarkable record of the growth of the country along industrial and scientific lines.

The Military Power of Congress.– The Constitution confers upon Congress the power to declare war, grant letters of marque and reprisal, and make rules concerning captures on land and water. In England and some continental European states the power of declaring war belongs to the crown, though the means of carrying it on must be provided by the legislative branch of the government. The framers of the Constitution, however, with their distrust of executive power, wisely left the whole matter to Congress. In the exercise of this power Congress has several times declared war against foreign nations.

A Letter of Marque and Reprisal is the technical term for a commission issued to an individual by a belligerent government authorizing him to prey upon the commerce of the enemy. The vessel commanded by a person holding such a commission is called a privateer. Privateering was long recognized as a legitimate mode of warfare, but the evils of the practice, due mainly to lack of control over the person bearing a commission of this sort, were so great that a congress of European nations held in Paris in 1856 declared privateering to be abolished. Although the United States has never formally adhered to this act, there is no likelihood that our government will ever again resort to privateering.