The Washington herald., 1906-12-10
POSTAL BANKIN VIEW
Improved Business Methods
May Open Way for Feature.
POST-oFFICE WORK REVIEWED
Annual Report of Postmaster General
COrteIyou Discusses POIicieS-Den-
Service Meets Public Demands-Sug-
gests Reforms in Business Methods.

The Post-office Department is casting
its eye into the future. It hopes by a
proper system Of accounting and other
needed changes to open the way for in
vestigations to determine the feasibility
of the adoption of many important poll
cies Of administration, which include re-
duction Of postage, postal savings banks.
parcels post. and postal telegraph and
telephone.
Postmaster General Cortelyou, in his
annual report. just made public-the
last official utterance from his depart
ment. before ne goes to his new post as
Secretary Of the Treasury-says that the
merits and defects OF all Of these ques-
tions should have the fullest considera-
ton in the not distant future
He announces that the present policy
that fourth-class pOstmasters should be
retained during satisfactory service has
been extended until it practically en-
braces Presidential postmasters, Nearly
two years Of administration confirmed me
in the opinion" he says, that the post
masters Of the country should be ap-
poiated by no party primarily as rewards
for political activity. but primarily on
the basis Of fitness for the work and
regard for the wishes Of the communi-
ties they serve I know Of no one thing
that viii do more for the postal service
than continued insistence upon the policy
of substituting business for politics in
the administration Of its affairs"
Is Question Of Efficiency.
The following is a statement Of the de-
partments finances:
The receipts for the year were S167. .932,-
1926: the expenditures. S17S,4497 7S.S9; ex-
cess Of expenditures over receipts. So
516s95gl
After discussing various reforms in the
organization Of the department. the Post
master General says.
Il repeat what I stated n year ago
that while il would be a gratifying cir
cumstance If the POst-Office Department
We're self-sustaining, ! am less concerned
about the deficit than about efficiency of
administration. If the installation of the
rural service had depended upon the eX-
istence OF a surplus in the postal revenues
under the existing system of accounting.
that service could not have been given.
The same considerations apply 10 a num-
turns from certain branches are Sd inter
woven with and dependent upon others
that there is much force in the contention
that il is unreasonable To charge amy one
OF them with the responsibility for the
deficit
In spite Of defects the efficiency of the
service has been in many respects re
markahle, as witness the record Of the
registry service for the half century of
its existence. showing a percentage Of loss
from all causes-including burglary. theft.
and fre-for the fiscal year ended June
30 1904 of only three oue-thousaudths Of
per cent. Some private business en-
terpTises may in certain directions yield
better financial returns. but they cannot
show a. higher standard OF integrity nor
more faithful performance OF duty
May Pave Way for Innovations
An elaborate discussion Of postal az
fairs and policies is followed by some in
teresting suggestions for future guidance
Of the department. I'm course Of which
Postmaster General Cortelyou says.
There can be further economies in
rural delivery without any impairment
Of that service. BY a more precise method
of determining the basis OF pay for the
transportation OF the mails the depart
ment can be relieved Of an unbusiness-
Ike feature of administration with
probable decrease in expenditures.
BY the enactment of a sensible law
as 10 seCOnd-Class matter the department
and reputable publishers can be saved
embaTrassmeutS they now suffer and the
postal receipts materially increased
by a proper system Of accounting the
department can be placed upon better
business footing and incidentally credit
ed with work for which 80 now receives
no credit. And a result of these and
other needed changes the deficit. which
is in fact only a paper deficit, can be al
together eliminated.
Progress toward these improvements
VIII open the way for Investigations TO
determine the feasibility of the adoption
of many important policies Of administra-
tion-redUction Of postage. both domestic
and international. postal savings banks.
parcel post, postal telegraph and teie-
phone, and others, the merits and defects
Of all of which should have in the not dis
tant future the fullest consideration "