New-York tribune., 1900-11-04
POSTAL SYSTEM FINANCES.
RECEIPTS AND EXPENDITURES FOR TIKI
LAST FISCAL YEAR-rHE CUBAN FRAUDS.

Washington, Nov a-The report of the auditor
for the Postonice Department covering the fiscal
year ended June 80 1soo shows that the total reve
nues of the Department for that period were s102.
ea57e and the expenditures s107, ,24e 2ss leaving
deficit of A.ss4nS The value OF stamps, stamped
envelopes newspaper wrappers and postal cards
sold during the year was sa4 4013.6s9. The amount
Of second class postage collected from publishers
and news agents S.S25. .3ss. The inland mail
transportation account shows total expenditure
~ ss4 Isl 5es and the foreign an expenditure
OF 81 956.7G.
The receipts from the domestic money order sys-
ter, during the year shown to have been 81 e15-
4sa and the expenditures 1858 S67. leaving a net
revenue of 81 246,595 Notwithstanding this farora-
hle showing the auditor says that If its proper
share of the expenses Of the service had been
charged a net loss of at least 100000 annually
would be shown. The report shows that the popu-
laton of the United States in 17S0 100000: in
1900 it is over 100000 The wealth of the people
IN real and personal property probably aggregated
e 900 600 in 1870 and is conservatively estimated
at $50 0oG 100000 in 1900 The number of postofces
was 10 in 1890 and is 1851 in 1900 The postal reve
nues were $37 975 in 1890 and SO2 354,57s in 1900
Therefore while the population of the country
has increased 10 to in ITO years and the wealth of
the people 30 l. the number of postofces has in
creased 900 l and the revenues of the service
200 TO !.
The report says that the extension OF the free
delivery system TO the rural districts one of the
most useful and popular OF recent postal improve
ments.
Concerning the postal frauds in Cuba the Auditor
says:
When postal service established in the
island Of Cuba January l. 1899. under the auspices
OF The United States Government the same mistake
was made against which such emphatic warning
was raised in this country sixty-tve years ago.
The entire control of finances and accounting was
left in hands of the Director of Posts. Instead
of an independent auditor there was appointed a
chief OF the Bureau of Accounts" who was subor-
dinate TO the Director of Posts. Statements were
made that the new Cuban system was organized
on the United States plan. but in this vital par
tfcuar there the widest possible departure
from the principle of a independent audit which
mas prevailed here since 1886 The consequences
could have been easily foreseen They were exactly
what occurred in connection with our own service
in its earlier days. which, after serious scandals.
brought about the present methods of accounting
In Cuba after six eight months of this incor
rect procedure. the Chief of the Bureau of Ac-
counts was made auditor and removed from under
the Jurisdiction of the head of the postal system
But the individual retained his position. and
had evidently become accustomed TO accept the
orders and approval OF his superors conclu-
sive that practically the conditions continued
there was no really independent scrutiny and audit
of accounts and the irregularities which ensued
were the natural results.