The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-12-21

country, are the causes Of the ordinary increase
of the revenue. But temporary and extra |
ordinary circumstances often counterfeit these
more permanent sources Of increase, so far as
10 prevent any material advance. This has been
the case the past year; during which com
bination of causes have operated TO impair the
revenue of the Department to nearly the extent
of the average annual increase.
But the present unfavorable condition Of the
finances of the Department is not wholly to be
attributed to the decline of the revenue the past
year; il is, in part, the result of the too sudden
and large extension of the service during the
years 1887, 1898, and 1889, occasioned by the
extraordinary surplus which accrued in 1896
and 1897. This surplus, on the Both June,
1886, was $G4I, 842.
The Postmaster General, in his annual report
of that year, recommended reduction OF the
rates of postage. Congress did not sanction
that measure; but, by the act of the I'd July,
1886, established about seven hundred new
post routes, which it became the duty of the
Department to put into operation. The action
on this subject by Congress was considered as
indicating its desire that the surplus which had
accrued, and which might accrue, should be
expended in providing additional mail accom-
modatons. The causes which had produced
the above surplus on the Both June, 1886,
continued to operate during the remainder OF
that year, and part of the year 1887; and, as
the new contracts did not 20 into operation
until after the lst of February, 1887, the reve-
nue. continued TO exceed the expenditure; and,
on the 30th June, 1897 the surplus amounted
to $3.50, 20S. During the session following,
Congress, by the act of the 9TH of July, 1888
established about seven hundred additional
routes, which were to be put in operation on
the LIST of July, 1899, or before, if the revenues
of the Department would justify il. The Sc
cond section of the same act provides that every
railroad within the limits of the United States
that now is, or may hereafter be made, shall
be a post route; and the Postmaster General
shall cause the mail 10 be transported thereon:
Provided, he can have it done on reasonable
terms, and not paying therefor, in any instance,
more than % per cent. over and above what
similar transportation would cost in post
coaches"
The very liberal construction given to this
act by the Postmaster General, favorable TO the
interests of the railroad companies. did not sat
isfy the spirit Of cupidity which belongs to cor
porate monorolies; and it was found impracti-
cable to obtain contracts from several of the
railroad companies. And Congress, by the act
of 25th January, 1889, extended the maximum
rate of compensation for railroad service to
three hundred dollars per mile.
The new routes established by the act of7th
of july, 1888, were mostly put into service in
1889; and contracts have been made for service
on the railroads then in existence, and most of
those which have since been completed, atTates
of compensation, varying from twenty five to
three hundred per cent. above what had been
paid for coach service on the same routes. In
England, the average rate of compensation for
/ = oh1 Ill
! mile: and the highest sum paid on the most i'm
portant routes is one hundred and seven dollar:
per mile; and the contractors are required t.
convey mails as often, and at such times, a
may be ordered by the Postmaster General
Here, with rate OF compensation nearly two
hundred per cent. higher, ii has been found i'm
practicable, on many of the routes, to obtain
that control over the time ofthe departure and
delivery of the mail, which is so essential to
the service, and is exercised on ether routes.
In addition to the compensation paid TO the
railroad companies, there are considerable Incl
dental expenses incurred for travelling agents
on the more important routes, for conveying
the mail to and from the cars at the ends of the
routes, and for supplying intermediate offices,
not on the line OF the roads. The substitution
of railroad for coach service, has borne very
heavily On the revenue Of the Department.
| The new routes established in l836,and 1898
being, many of them, in sections, of the coun-
| try where the roads are bad and the settle.
ments sparse, have yielded an income bearing
| but small proportion to the expense of the
! transportation.
! This great extension of the service, and thu
| substitution of higher and more expensive
for a cheaper grade, under the acts of Congress
referred to, and the improvements on othe
routes, which the public interests seemed t
demand, since 1886, have carried the expendi
lures OF the Department, for three successive
! years, beyond lis accruing revenue.
In the year ending on the 30th
June, 1898, the expenditures
were S4,62I. 1877 o.
was 1926 or 0,
! Excess of expenditure over the
revenue 1885, 200 OF
/ The expenditure of the year end
ing June so, 1889, were $4,654,7lS OF
| The revenue which accrued
| was 4,477 ,6I4 0C
| Excess of expenditure Sl77, I04 0(
The excess OF the expenditure Tor these two
| years was met by the surplus funds which haC
accumulated in 1887, and nearly exhausted al
! that surplus which was available.
In the amman report OF my predecessor, IDao'
| in December, 1888, he says: ''The general I'm
ancal disasters of last year have not reduced
the revenue as might have been expected, bu
! have prevented most of the anticipated increase
and thrown the Department upon its surplus, tc
sustain most of its extensions. The indications
now are that there will be slight improvement
in the revenue of the current fiscal year, over
the preceding: but not enough ito produce any
material effect. An advance somewhat great
| er may be reasonably expected, next year, but
not great enough to meet the increasing cost OF
mail service, and put into operation the new
routes established at the last session OF Con-
gress 1t will hence be seen that, for more
more than a year to come. the curtaiment, ra.