beliefs and nonbeliefs, are represented by the newspapers and periodicals admitted to the second-class mailing privileges when the conditions contemplated by the law are complied with. The "freedom of the press" in this respect is fully considered and safeguarded by the Post-Office Department, and I am constrained to believe that this is the sense in which the expression was used by the framers of the Constitution. Freedom of the press does not mean that constitutional laws are not to be respected and obeyed. The constitutionality of the law which provides "that nothing herein contained shall be so construed as to admit to the second-class rate regular publications designed primarily for advertising purposes, or for free circulation, or for circulation at nominal rates," has never been seriously attacked in the courts, so far as I am aware.

While having a sacred regard for free expression of opinion by the press by not attempting to control what a publisher may say in his columns, it will be my policy and purpose not to interfere in the slightest degree with what a publisher may do. I shall not lay down rules to the effect that a publisher shall not do this, that, or the other thing. I want each publisher to exercise all of his rights to any extent he may desire. Upon the basis of what the publisher does, however, the Department will have to assess postage.

I may find it expedient to tell a publisher that if he does a certain thing it will entail a certain rate of postage. The law fixes different rates of postage for the different conditions which may exist. I am required to ascertain those conditions-to determine the factsand upon those facts decide what is due the Government. Under the law, the newspaper rate may be "free," "one cent per pound," "one cent per copy," "one cent for each four ounces or fraction thereof," or "two cents per copy." The law, as you will remember, provides for these second-class rates according to the conditions. Under other conditions the matter becomes third-class, and subject to the third-class rate.

I shall not attempt to compel publishers to comply with particular conditions. I shall content myself with fixing the classification of their publications according to the conditions presented. Once classified, however, it is fair and proper to require the publisher to maintain the conditions under which his publication was classified, or the Department will change the classification accordingly.

I can not see that there is any real restraint of the liberty of the press in the policy I have herein outlined. The publisher is free to make the conditions; having made them, the rate follows.

It is in attempting to define such terms as a "known office of publication," "legitimate list of subscribers," "free circulation," "circulation at nominal rates," and "primarily designed for advertising purposes," that we are led off into the realm of uncertainty and perplexity. "Free circulation," to me, is that circulation which is not paid for at all. It does not mean "free to the recipient," nor does it necessarily comprehend bulk subscriptions, or subscriptions paid for by others, when such subscriptions were paid for at a rate more than nominal by some one. Such circulation is "paid circulation" from the standpoint of the publisher, and I do not think you could convince him otherwise. I can see no reason why a subscription paid for by another, either singly or as one of a number of bulk subscriptions, should not be classed as "legitimate" within the meaning of

the law, if the recipient of the publication gives assent thereto. Such assent should, of course, be clear and unmistakable, and not merely presumptive. Under the usual rule that "it requires two to make a contract," and that a contract consists of the meeting of two minds upon a given proposition, it is very clear to my mind that such contract could be executed through a third person as well as between the principals themselves, if both parties to the contract give their tangible assent thereto.

If the publisher's circulation consists in the major part of bulk subscriptions secured from commission houses and advertisers in the publication, that fact would very properly lead to an inquiry as to the primary design of the publication. Here it is necessary to make a finding of fact, and I should not hesitate to place a publication within the third-class of mail matter when the circumstances surrounding the major portion of the subscription list indicate that such subscriptions were for the purpose of promoting the business of those who paid for the bulk subscriptions.

The practices of employing premiums, clubbing rates, commissions to agents, etc., for the purpose of extending circulation are regarded as legitimate. The publisher is at liberty to indulge in these practices to any extent he may deem desirable, but he should bear in mind that the extent to which he indulges in such practices will be the basis for determining the rate of postage which shall apply to his publication. For instance, if a publisher were to give back to his subscribers the full amount of the subscription price, in the form of premiums; or were to return to the agents or to the subscribers, in the form of discounts, commissions or otherwise, sums approximating the full amount of the regular subscription price, singly or in clubs, that fact would be evidence that the publication was designed for free circulation, or for circulation at a nominal rate.

The Department is frequently asked to advise what is considered a nominal rate. It is impracticable to lay down a general rule on this point, and I have no desire to do so. I should say, however, that when a publisher's supscription price, and his practices in connection with it, indicate that the price is not a material consideration in his business, and that he does not care particularly whether or no he gets the subscription money, I would not hesitate to declare the rate a nominal one, whether large or small. What may be considered a nominal rate for one publication might be an extortionate rate for another. There are many conditions, not necessary here to enumerate, which tend to prove a nominal rate.

In determining whether a publication is for "free circulation," "circulation at nominal rates," or "designed primarily for advertising purposes," it is necessary to take into consideration all of the circumstances surrounding the case. One circumstance within itself might not be sufficient to warrant action, but a combination of even minor circumstances might lead to a proper classification of the paper as third-class mail matter.

The transfer of a legitimate subscription list from one publisher to another, for the purpose of enabling a publisher to give a fair return for the money paid by a subscriber when a publication is discontinued, is considered legal, when the transaction is bona fide and the recipients of the new publication consent thereto.

A publisher may give credit to his subscribers to any extent that he may see fit, but his practices in this respect may be considered in determining whether the publication is for "free circulation," circulation at a "nominal rate," or for "advertising purposes."

A reasonable limit should be given, according to the circumstances surrounding a publication-whether published quarterly, monthly, weekly, or daily, and whether in a local or general field-for the payment of subscriptions. After a certain time of delinquency it seems to me entirely reasonable to classify a subscription as "expired," and while a publisher will be permitted to carry "expired" subscriptions to any extent, they should not be considered as part of his "legitimate list of subscribers," or carried at the pound rate. The transient second-class rate should apply.

It is within the knowledge of the Department that certain publications never take a name off the list once it gets there if they can help it. Such publications are evidently designed for advertising purposes, and also for free circulation if it is necessary to maintain a list.

For myself, I have little sympathy with the allegation that the transportation of second-class mail matter comprises 67 per cent of the total weight of mail transportation, while producing but 4 per cent of the postal revenue, and that it is therefore necessary to slaughter. This statement of relative cost may be true, viewed from a narrow standpoint, and excluding from consideration the first-class matter which second-class matter originates.

Congress fixed the rate for second-class matter years ago. It is reasonably advised as to the general conditions which exist and has not seen fit to change the rate as yet.

The Department is not bound to attempt to bring about by regulation that which Congress has not chosen to do by legislation.

For this and other reasons I have little sympathy, as well, with those well-meaning people who view with alarm as a national calamity the annual postal deficit and charge its existence to the carriage of second-class mail matter at a loss.

The same argument and reasoning would eliminate every rural mail route in the country. Nobody seriously contends that rural free delivery is anywhere near self-sustaining, yet it is popular everywhere. The expenditure on this account in the last ten years has leaped from $15,000 in 1897 to $25,000,000 in 1906, and it will reach $35,000,000 this year. The elimination of rural free delivery would leave a surplus in the postal revenues, but rural free delivery has come to stay.

Therefore I prefer to consider the Post-Office Department as a whole and use the revenues derived for the general good of the service. It is folly to demand that each particular branch of the service shall within itself be self-sustaining. I can see no real reason why the Post-Ollice Department should be self-sustaining. No other Department attempts to maintain itself by earnings. All allusions to the Post-Oflice Department as an indigent are misapplied, as this Department is least indigent of all. It performs a vast amount of service for the other Departments without cost to them, and yet very nearly maintains itself. I am not greatly concerned about the annual deficit, as long as the affairs of the Department are wisely, honestly, and economically administered, and the legal measure of revenue is secured. It is more important that the service of the Department

shall be efficient, quick, and accurate alert in responding to the rightful demands of the public-than that there should be a surplus.

In connection with the question of the general attitude of the Department toward publications, I conclude with the statement that it is the desire of Postmaster-General Meyer and myself to give to all publishers like treatment under like conditions. That is the very essence of a square deal.

Some sub-topics have been proposed, and I treat them in order:

RETURN OF UNDELIVERED COPIES TO PUBLISHERS AT THEIR EXPENSE.

Recently, in addressing a prominent publisher on this subject, I said: "I am unqualifiedly committted to the proposition of the compulsory return to the publisher of all copies of newspapers and periodicals of every description, whether expired subscriptions or sample copies, that are not ordered, not wanted, and refused, at a rate compensatory to the Government both ways. Years ago, when I served my community as postmaster, copies of papers of this sort accumulated in the post office, and were disposed of as waste in large quantities. The evil has grown immeasurably since, and I regard the enforced return of such papers to the publisher as one of the methods of curing a great abuse.

In using with this publisher the words "both ways," I meant only that the return rate on refused newspapers and periodicals should be sufficient to cover the expense of transportation both ways, the original postage paid being considered.

My personal opinion is that the return of undeliverable copies of second-class matter to the publisher, at his expense, will do as much to correct the so-called abuses of the second-class mailing privilege, with less embarrassment to the ordinary publisher, than any other proposed legislation.

The smaller post offices of the country have been deluged for years with so-called "sample copies" and alleged "subscribers' copies" of periodicals of a certain type, which are usually alluded to as "mailorder publications." A mail-order publication, as known to the Post-Office Department, is a cheap publication, which inserts advertising of such a nature that the advertiser must get the resultant business through the mails instead of by direct contact with purchasers. There is nothing inherently illegal or illegitimate in a mail-order publication. The practices, however, of too many of the mail-order publishers are open to question. In a publishing business which depends for its profits upon its advertising rates and patronage, there is every inducement to inflate subscription lists by every means within reach, and the means are not always angelic in their legitimacy. Lists of names are secured in devious ways, and sold by the thousand, by the foot, by the yard, or by the rod, as may best suit the convenience of the purchaser. I am of the belief that many of the lists were prepared in public cemeteries, the names having been taken from the grave stones. This idea is suggested by the fact that postmasters constantly report that the addressees of publications received at their offices died years ago.

Publishers of this class, whose advertising rates depend upon the volume of their circulation, use every effort to pad their lists with

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names of so-called legitimate subscribers, for the reason that upon the basis of the alleged list of legitimate subscribers they are accorded, under existing regulations, a sample-copy privilege of 100 per cent.

The Post-Office Department is determined to stop this class of abuse. The publisher who pads his list with fake subscriptions, free subscriptions, and subscriptions at nominal rates, must stop, or lose his second-class privilege.

Legitimate subscribers, fake subscribers, and sample-copy names are bunched together and called "regular circulation. Postmasters should not be allowed to hand out to others such papers, and the enforced return of the undelivered papers at the expense of the publisher will clear the list of bogus names.

The legitimate publisher who obeys the law in its meaning and purpose, I repeat, has nothing to fear. The Post-Office Department is in reality his greatest protector. In the past the legitimate publisher has done much of the howling for the fakir, and has innocently embarrassed the Department in its most laudable work when there was no occasion for a "sympathetic strike."

When the legitimate publishers of newspapers and periodicals understand the policy of the present Postmaster-General and his Third Assistant, they should stand up for and cooperate with the Department in its efforts to weed out the real abuses. It is the duty of every postmaster, present and absent, to help the Department in giving correct information to legitimate publishers, whose interests are not in any manner in jeopardy.

LIMIT OF THE SAMPLE-COPY PRIVILEGE.

Intensely pertinent to the topic just discussed is that of the limitation of the sample-copy privilege.

The hearings before the Postal Commission developed the widest possible range of sentiment among publishers on this subject. Some publishers advocated the entire abolishment of the privilege, while others and some of them of the highest character-urged that there be no restriction at all, that all publishers be granted the privilege of sending sample copies to an unlimited extent. The latter proposition has been urged upon the Postmaster-General with vehemence by some prominent publishers, who disclaim any personal or financial interest in the sample-copy privilege, on the ground that any other policy interferes with the freedom of the press.

I can not concede that the sample-copy privilege should be free from restraint. By way of illustration, to allow a publisher with only five hundred legitimate subscribers to circulate a million sample copies would be, to my mind, to confer upon such a publisher a greater privilege than is enjoyed by the publisher who has a legitimate list of one million subscribers, and mails in connection therewith one million sample copies. The proposition that the samplecopy privilege should be free and unrestrained completely upsets a law of proportion by which the business world is governed. The law itself prohibits such a construction in its provision that "nothing herein contained shall be so construed as to admit to the second-class rate regular publications designed primarily for advertising purposes, or for free circulation, or for circulation at nominal rates," for the reason that an unrestrained use of the sample-copy privilege would