Omaha daily bee., 1902-12-18
SPENDING TO MAKE MORE.
what Statistics show in Regard to
Our Postal
ChlcaFo Inter Ocean.

Chicago Inter Ocean.
The truth OF the maxim that in order
to make money the trader must spend
money in developing his business is we'll
Illustrated by Postmaster General Payne's
annual report. Since the department has
begun to spend money freely In develop
ing its business In new directions ita
revenues have increased with accelerating
speed. until now the postal service is
nearer self-sustaining than Il has been
since the last reduction in rates.
In the fiscal year 1898 prosperity bad
been fairly well re-established, and pos
tai receipts proved the fact by rising about
S12, 900. 900 over those Of 1895. But no new
line Of business had been developed, and
the postal deficiency. over ti1, 900. 900 In
1895, was still over $40, 500, 900 in 1898. In
other words, while business was ~lncreas-
ing, it cost about as much to do It as II
brought in, and there was no real gain.
But an experiment toward developing a
new line OF postal business had begun
that Of rural free delivery. On this s4O,-
600 had been spent in 1897 and $4,000 in
1898. The new product was evidently
meeting a demand In 1899, though the
success Of the experiment was still deemed
uncertain, congress was induced to spend
$500 on 1t, and in 1900 to increase this
to $3.50, 900. In 1899 postal receipts In
creased $4,000, 900, as compared with 1898.
while the deficiency declined 81, 300, 900. In
1900 receipts rose 81, 240, 900 higher, but the
deficiency fell only $1,000. 900.
Then, in 1901, congress took hold OF
rural free delivery in real earnest, allow
ing 81, 75o,0 100 for that branch that year
and nearly $4,000, 900 in 1902. The effect
was positive and Immediate. In 1901 re-
ceipts rose nearly $40, 0O0, 900 above those
Of 1960, while the deficiency fell SO, 300, 900.
And in 1902 receipts gained more than
$40, 900, 900. while the deficiency sank an
other $1,000, 900. In fact. since rural free
delivery was seriously undertaken the
postal deficiency has declined practically
in inverse ratio to the expenditure on
that branch Of the business.
Statistics at hand do not give the pro-
portion Of increased revenue derived from
the rural free delivery routes. Nor Is It
really necessary to have such figures. 1t
is evident that the largely profitable new
business OF the department-the business
which returns considerably more than the
cost Of doing it-comes from the rural free
delivery branch. This is the only strictly
new facility afforded by the department to
the public for several years. and the more
widely it is offered the more rapidly do the
revenues Of the department increase.
About 1000, 900 square miles OF the ma
tional territory are considered by the de-
partment's experts to be able to give profit
able support to a rural free delivery service.
Only about one-third Of this territory is
now covered. In the light Of the facts rapid
and vigorous extension OF the rural free
delivery service, without, Of course, neg
lecting other improvements. is evidently
the policy that will bring the largest re-
turns for a liberal expenditure. Rural free
delivery is plainly the field wherein con-
| gress can just now spend money for the
postal service, and so wipe out the de-
hciency altogether and make the service
self-sustaining.