New-York tribune., 1908-02-08
POSTAL SYSTEM EVILS
EXPERTS URGE REFORMS.
Looseness IN Accounting Methods
Opens the Path to Fraud.
From Tne rrfhun. Rur.anI

| voluminous report Of the experts who have cor
| Quoted the postal investigation The experts
| who have made this exhaustive study OF the
| postal system are A Loves Dickinson and Fran
els F. White. representing respectively Dickinson.
| Wilnot & Sterrett and Plender, Grifiths & Co.,
| both of New York
| 1t is now possible to make public summary
! of the findings of these experts much OF It in
| their own words. They say for instance.
The service has grown from small beginnings over
long period OF years. hampered by restrictive laws
\ may even now be considered necessary to some
| tent for a government department. but which would
business to survive To i1n institute sweeping re-
thought be}ter 10 mak fs @ APE re n 1I1sn 6s
tons rather than to urge legal reforms which may
| The chief officials OF the Postofice Department.
& o. tnes Iarnla rzlne theselves with tie duties or
| the mass of routine work to be performed. they
have little time TO devote TO the consideration Of
| There exist an Independence and a lack
different divisions but between different Sec
eraIons. which riust undoubtedly do much to ham
| per the service and increase its cost We have
Of The Postmaster General for The year ended June
attention to the that fron these
| are omitted various items which should be taken
| result OF the service is to be obtained
| Among the items omitted from consideration
| by the Postmaster General are number In the
| work OF the Postoffice Department In Washing
| ton. amounting in 1906 to 81, 372.665. the
| penses of the auditor Of the Postoffce Depart
| ment. the amounts due to certain branches Of
| the Union Pacific and Southern Pacific railways
which not paid in cash but credited 10 the
| debit accounts of those companies in the Treas
\ ury Department the expense of printing done
| at the Government Printing Office. amounting
H in hat tn tho of the A.
| sistant Attorney General and the value Of space
| occupied by the postal service in government
| buildings
| COST OF FRANKING PRIVILEGE
| On the other hand. the postal service has re-
! ceived no credit for handling the free mail OF
| other departments. of members in Congress and
| of others enjoying the franking privilege The
| commission estimates that the loss TO the postal
| service on free mail dispatched from Washing
| ton alone is approximately S25OOOOO and the
| entire loss throughout the country would amount
| to probably S9.5OOOOO-
| The experts call attention to the fact that the
| law creating the position of purchasing agent
/ does not clearly define his duties and especially
| the responsibility for making expenditures
l excess of appropriations. with the result that
| there has been constant friction between the
| purchasing agent and other divisions of the de-
\ partment-
| The experts report the methods Of the division
| of finance TO be cumbersome that 1T seems
! useless to suggest any amendments or improve
ments in this process" They add,
We consider that entire new scheme for the
and the drawing OF variants should Be designed.
ports Ior payments and variants 20 before they
are nnaX b naie9 to the eaT4es entitled @ & e. tnen
cusion which have arrived.
The only safeguard recognized throughout the
finance and accounting divisions OF the Department
sgGears o to , be that & Of + dg9caon II one dqp
rors then another entirely fresh set Of records is
put on TO do the Whole work over again from the
beginning This duplication undoubtedly arises
particular divisions. but it is mainly due TO the
checkS BY tdtas can be- made to Take the pis
of the laborious and unnecessary checks by duplf-
cation which at present exist.
The appropriation records kept in this division
Except FOR the personal Satisfaction which it sivs
OF the warrants they have recorded do exceed
the appropriations they appear to be Of little use
As an example of loose methods the experts
show that the report of the Third Assistant
Postmaster General for the fiscal year OF 1906
showed "the amount OF balance due the United
States from foreign countries received during
the year was S55919 To- The books kept by
the auditor show such receipts TO have
amounted to s1O3.7 1853 81. more than $4,000
in excess of the amount reported by the divis-
ion of finance
ERROR OF 100000 IN ACCOUNTS.
Referring to the lack OF system and numerous
errors in the division of stamps the experts
call attention to an error of $4,000 in the
fourth quarter Of 1906. which they discovered
in the accounts of the Chicago Postofice- Com
1nenting on the money order division. they say
The check msintaned BY the auditors Office seems
10 be largely one Of technical compliance with the
strict letter Of the regulations instead Of as it
should be. common sense review
Referring the practice. not uncommon. OF
using money orders for keeping savings. which
presumably is discouraged by the department.
the experts quote effective advertisements Of
money orders. headed: Savings Feature. Abso-
Iutely Safe"
The experts point that under the present
system the auditor. who should be charged with
the sole duty OF auditing the postal accounts.
Is practically obliged TO keep the accounts and
records and comments: 1T certainly cannot be
correct that they Cthe accounts) should be both
kept and audited by him
Commenting on the absolute lack Of system in
the conduct for postmasters' receipts and ex-
penditures the experts declare that by colu-
sion between a clerk keeping one OF the registers
and a postmaster irregularities could be praC-
tised indefinitely without detection" They show
further that by manipulation OF accounts.
using the receipts of one quarter 10 make good
the liabilities OF the previous quarter. shortages
could exist without detection until the actual
accounts were proved by Inspector or until
change OF postmasters takes place
In regard to the accounts with foreign nations
the experts say:
The balance of unadiusted International accounts
only be supported BY a list OF balances due