Evening star., 1901-11-27
LOOKING FOR a SURPLUS
STEPS TO INCREASE THE POSTAL
REVENUES.
Report of e. c. Madden. Third Assist
ant Postmaster General-EHect of
the Reform of Abuses.

Edwin G. Madden, third assistant post
master general recommends that third and
fourth-class mail matter be consolidated;
that the limit of indemnity for registered
mail matter which shall be lost be in
creased from SO to $780, and that postal
employees be made liable for the value
Of the registered mail lost through their
carelessness. Mr. Madden also expresses
hope that during the ensuing year most Of
the abuses of the second-class mail priv
ileges may be corrected, and indicates that
such reformation may make one-cent
postage possibility at no distant date.
A financial statement gives the total re-
ceipts Of the postal service from all sources
as Sill ,6S1. 1880. the total expenditures as
$115,554, ,902.S 81, and the deficit caused by the
excess Of expenditures over receipts as
1923, 72T. These figures do not take into
account the transporting of mails over
the subsidized Pacific railroads which have
not yet settled their bonded accounts with
the government. Nearly 100000 stamp
books were sold, at profit to the depart
ment of nearly $4,000. The total value of
stamped paper issued during the year is
given as $104. 7s5, ,9s7 About csc, 900, coo
postal cards were issued.
Abuse of Pound Rate Privilege.
Regarding the efforts Of the department
to correct the abuse Of the pound rate
privilege the report says:
'Since the close of the fiscal year covered
by this report orders have been issued modi-
flying sections 276, 2S1 and 3O1 Of the postal
laws and regulations. The changes in these
regulations are intended to correct the
abuses Of the Second-claSS rate by book
serials and libraries the intrusion of
pretended newspapers and periodicals and
the return of unsold copies to news agents.
The department has been actively operat-
ing under these regulations since October l
last, and on that date the return privilege
to news agents was stopped. Since that
time the greater part Of the book serials,
and libraries and many other publications
having the characteristics of books have
been excluded from the second class, as
have also some of the class of pretended
newspapers and periodicals. 1t is my hope
that by the time of the issuance Of my next
annual report the second class of mail mat
ter will be practically free from abuses, at
least of the larger ones.
Greater Income Expected.
There is no means of accurate, or even
approximate, calculation as to the effect Of
these changes upon the revenue; but it is
believed that under a proper administra-
ton of the second-class laws. and when
there has been proper collection of reve-
nues from all the classes, that the income
from postages will more than sustain the
department under the most liberal expendi-
lures for extensions and improvements.
One-cent letter postage Is still remote, but
the second-class reformation now In pro-
gress may make it practicable at no dis
tant date.
ut has been stated and is probably not
far from the truth, that If the second-class
privilege were limited to exactly those
publications honestly and properly entitled
to the bounty the saving to the department
from it's expenditures for sustaining that
rate at present would be sufficient to sup
port the entire government at Washington; /;
that is to say, would equal, nearly equal,
the appropriation for the legislative, execu-
tive and judicial expenses of the govern
ment.
An Abuse in It's Infancy.
"There Is still another phase of the abuse
of the laws of second-class matter which
deserves attention. 1t Is now in It's infan-
cy. and this Office is making strenuous ef-
forts to prevent it's increase. The abuse
arises under construction of the act of
July, 1894" "a
Having obtained the opinion of the law
officer Of the department on the purpose of
the act which admitted to second-class
rates the publications of educational insti-
tutions and fraternal organizations, the
department has since refused admission to
the second class of publications issued by
educational institutions incorporated to ad-
vance private interests. as well as of all
publications which otherwise came within
the purview of that act, but carried pro-
hfbited advertisements; and steps are being
taken as rapidly as possible to withdraw
the second-class rates of postage from such
publications which were enormously admit
ted to the second class through a msap-
prehension of the law prior to the render
ing Of said opinion
Mr. Madden says:
mo person can reasonably contend that
1t was the intention of Congress that the
exceptional and unrestricted privilege
granted to this class of publications at
the public expense should be perverted to a
wholly commercial enterprise without the
restrictions which are placed upon other
newspapers and periodicals"