Sale 1211 — The William H. Gross Collection: United States Postal History

Sale Date — Tuesday-Wednesday, 29-30 October, 2019

Category — 1869 Pictorial Issue

Lot
Symbol
Photo/Description
Cat./Est. Value
Realized
533°
c
Sale 1211, Lot 533, 1869 Pictorial IssueAn outstanding 1869 Pictorial Issue triple "Phantom Rate" cover to France

15¢ Brown & Blue, Type II (119), used with single and pair of 10¢ Yellow (116), tied by quartered cork cancels, "Pittsburgh Pa. Jun. 15" (1870) circular datestamp on cover with Fleming Brothers corner card and printed address to Paris, France, red "New York Paid All Br. Transit Jun. 16" backstamps, red "PD" oval and "London Paid" transit datestamp (June 27), "Angl. Amb. Calais 28 Juin 70" arrival datestamp, lightened but still fully readable red crayon "48/3" credit and indication of triple rate, lightened receipt docketing

Very Fine; 10¢ at right creased and trivial small tear at top of cover above corner card.

The markings on this cover correspond to the so-called Phantom Rate, which provided for prepayment to France via Great Britain during the period when the postal treaty between the United States and France lapsed without a new agreement. The rate was never announced, but was listed in the international rate tables under Algeria, which was considered a part of France--thus, the moniker "Phantom."

The original 12¢ Phantom Rate was formulated from the 4¢ U.S.-G.B. Open Mail and the 8¢ (4 pence) G.B.-France rates added together. However, the U.S.-G.B. rate was based on half-ounce (15 grams) weight increments, while the G.B.-France rate was based on quarter-ounce (7.5 grams) increments. Because Great Britain was entitled to receive prepayment of the full postage incurred in transmitting the letter to France, it received an 8¢ credit for every quarter-ounce (7.5 grams). On the other hand, the U.S. collected its 4¢ postage for each half-ounce increment. Therefore, the basic single rate for a letter weighing up to a quarter-ounce was 12¢ (4¢ U.S. and 8¢ G.B.) until July 1, 1870, when the Phantom Rate was reduced to 10¢, in accordance with the new Anglo-French convention, which reduced the rate between Great Britain and France to the equivalent of 6¢.

The 12¢ Phantom Rate progression is shown at bottom

On this cover the red crayon "48" indicates Great Britain's share of the postage, and the "3" is the U.S. indication that three rates were required (one for each half-ounce increment). Obviously, the letter was underpaid 15¢, because the correct Phantom Rate postage for a 1.25 to 1.50 ounce letter is 60¢, and the franking only adds up to 45¢.

True to its name, the Phantom Rate was generally unknown to the public. It is believed that not a single correctly-prepaid 12¢ Phantom Rate cover has been located (they are usually 15¢ frankings). The sender of this probably knew that the weight required three rates, and the 45¢ franking was intended to prepay triple the obsolete 15¢ treaty rate. At the New York exchange office, the letter was sent via England and a proper credit of 48¢ (6 x 8¢ per quarter-ounce) was given to the British post office. There is no evidence of a missing stamp, so one can only speculate why the New York exchange office would feel so charitable. Perhaps this cover was part of a larger group from the same addressee, including overpayments and underpayments, and the exchange clerk simply looked at the whole group and determined that enough total postage had been prepaid. Whatever the reason, it was allowed to go as fully prepaid.

This is a fascinating cover from one of the most challenging periods of United States postal history--challenging both to the public and postal employees at the time and to students and collectors today.

Ex Edgar Kuphal ("European's Large Gold" collection).

The 12¢ Phantom Rate progression is as follows:
0.01-0.25 oz12¢ (4¢ US, 8¢ GB)
0.25-0.50 oz20¢ (4¢ US, 16¢ GB)
0.50-0.75 oz32¢ (8¢ US, 24¢ GB)
0.75-1.00 oz40¢ (8¢ US, 32¢ GB)
1.00-1.25 oz52¢ (12¢ US, 40¢ GB)
1.25-1.50 oz60¢ (12¢ US, 48¢ GB)
E. 5,000-7,500
5,250