Milford chronicle., 1905-05-12
Defects in Postal Accounting.

The United States Postal Service is now
the greatest business institution In the world
with aggregate financial transactions OF more
than one thousand million dollars every
year That there are palpable defects In its
organ ization and administration, recent inves-
legations have thoroughly demonstrated.
But there are other defects and dangers
| connected with II which have not been so
strongly impressed on the public mind, an d
which, IN the Sentry's opinion, demand
prompt and radical remedy.
Such a vast financial institution necessarily
involves a great and complicated accounting
system. This accounting is managed by a
bureau OF the Treasury Department, which is
supposedly Independent OF the postal author
tiles. The system has been in operation since
1896. but It still has so many crudites and
imperfections that it is a constant source of
uneasiness to those responsible for its accur-
acy. Ohioial reports have pointed out some
Of Its defects, but the remedy, depending
wholly upon legislation by Congress, has not
been applied.
Presumably there is a double audit OF all
government receipts and expenditures, but
literally, under present conditions, 30 per
cent. OF the postal transactions have no ex-
AnAAAhlluu WHATEVER III the EOhtOIlE Depart
ment. Accounts come direct from 10000 post
masters TO the Auditors office, where they
are seldom re-examined.
As to matters which receive preliminary
examination by the postal authorities, one
large item at least, aggregating $4,000 year
paid to railroads for transporting the mail,is
never audited at all, but the accounting office
issues warrants based solely on the certificate
nF he
amounts certified are due and payable.
One glaring abuse which has been corrected
may be mentioned as a sample OF defective
methods. For more than four years the &C. |
counts Of postmasters issuing money orders |
were settled by checking their reports, net /
against the orders issued, but against q stub |
or coupon detached therefrom. More than I
5000, O,OOOOOO OF accounts we're settled by this |
free and easy process. II was like settling |
account at bank on his own list |
Of checks Issued, verified only by the stubs |
Of his check book and without scrutiny Of |
the checks themselves. Orders could be and |
we're issued for one hundred dollars and en-
tered upon the stub at one dollar and the diff
ference pOcketed by the issuing postmasters
without risk OF detection. Congress author
lied this device, in utter defiance o. business
rules. How much fraud was peHpetrated
during the period OF its operation, will never
be known.
No accounts are kept to show profits or
losses on the various features Of this diversi-
led service. The entire volume Of the public
business Of the country transmitted through
he mails, including correspondence docu-
nents and even heavy cases OF freight, is
arried without any compensation to the pos
al revenues, but at how much aggregate loss
10 man has ever known,
Second class mail matter is carried by
thousands of tons at one cent pound, while ]
he transportation alone costs eiR hit cents.
The money order system is conducted at a
oss OF over two million dollars per annum ,
Practically all classes OF mail matter are
arried at loss except letters and postal {
ards, but how much the losses on the several I
lasses amount to aud how much is the pro- =
L on first-class mail, are questions which
be accounting office has never attempted to {
nswer. Yet in any private or corporate
usiness enterprise the figures would be so "
as to give accurate information
n such vital points.
No account HAS ever been kept with the Post
flee Department of the stamps and stamped
aper furnished to 1t by contractors. The
mount received by postmasters In payment
postage on newspapers, magazines, etc., is
'llected in cash, but no safe and satisfactory
eans Of accounting for this cash has ever
sen devised.
These brief statements only indicate some
lngerous features Of current methods. They
ave been commented on by successive ac- W
uniting officers, but no attention is paid to I;
g warning by Congress, which alone can i, -
pply remedy. That remedy would con v
1t OF a thorough reorganization Of the ac- Il
uniting system, with new and stringent al
VS. to govern it at many points, and n
rgely increased clerical force to carry out VI
is legislation. The postal service is grow
3 so rapidly and extending into so many
W fields OF activity that the perils increase
cry year. Those in position to know feel G
lured that at no distant date scandals will
disclosed which will pale all past revela-
MS into comparative insignifieance.
THE SENTRY.