New-York tribune., 1908-01-07
POSTAL FRAUDS EASY.
4 CHAOTIC SYSTEM.
Commission to Recommend Radical
Rerision of La7cs.
IFrom The Tribune Bureau.

TFrom The Tribune Bureau
Washington jan 6.-An appalling situation in
the postal service is revealed by the report OF
the experts employed by the Congressional Postal
Commission, which will meet Tomorrow TO de-
termine whether or not it is safe to make the
report public The experts demonstrate SO seri-
Gus lack of system as to render not only pos
sble but easy of accomplishment gigantic
frauds on the government. and it is a serious
question In the minds of the members Oh the
commission whether it is wise to reveal to postal
employees the opportunities for dishonesty which
confront them
The report asserts that widely advertised re-
forms have been reforms only in name, and
have actually consisted merely of transfers of
authority from one bureau division to an
other; that alleged checks which have been In
stituted are not checks at all. but merely dupl-
cations of work which serve only to increase
expense without promoting safety, and finally
that so complete is the lack of system that 1t is
utterly impossible to determine what, II any, de-
partment of the postal system is paying for
itself or creating deficit, or whether or not
the entire system is being conducted at profit
or a loss.
An analysis of the postal statutes shows an
organic law enacted in 1885 and added to from
time to time as the needs of the country have
increased, and the service has expanded until,
in the opinion of the experts, the proverbial
Philadelphia lawyer could not make head or
tail of the laws. and the entire statutory pro-
visions are described a sort Of Legislative
crazy quilt" Where legislation has been lack
ing one administration after another has added
missing links in the form of executive orders.
of which has the value or authority OF
law, and surprise is expressed that it was pos
or oil txr1en a
malfeasance uncovered by the comparatively re-
cent postal investigation was discovered
The experts show in their report how. by con-
nivance between two postmasters. for instance,
money orders in almost unlimited amounts could
be issued and paid without discovery by the
government, 800 orders being returned as 81
orders and the postmaster who had defrauded
the government of 500 would obtain a clean
bill of health, his bondsnen would be discharged
and the government be none the wiser regarding
the deception This is merely of many
instances cited to show the loophoes for fraud
in the present chaotic methods of accounting.
Begun the old-fashioned system of single
entry bookkeeping. the modern double entry sys-
tenn has never been installed and when it has
been pointed out that checks were necessary
duplication of the old single entry system has
been ordered. with still no adequate checks and
no corresponding totals discrepancy in which
would instantly reveal the existence of error or
fraud.
The postal commission. the members of which
are Senators Penrose Carter and Clay and Rep
resentatives Overstreet, Gardner and Moon. has
determined to undertake at once a complete
codification and revision of the postal laws in
accordance with the advice of the experts 1t
employed last spring. 1t is hoped that the work
can be completed sn the present term of Con-
gress and that late in the session the commits
become law before Congress adjourns. In the
mean time of course, no such reforms as are
recommended by the Postmaster General, not
ably the creation of postal savings banks and
the extension of the parcels post, will be even
considered
Under the proposed system of bookkeeping,
however, it is maintained that it will, at least
after years trial. be possible accurately to
determine the exact cost of each branch of the
postal service, the receipts therefrom and the
resulting profit loss. The knowledge of these
facts may have a radical influence in determin-
ing the possible extension of the system and the
increase of facilities. But the first aim of the
commission will be to provide by legislation for
a system Of accounting which will reveal the
existing possibilities of fraud and eliminate the
elaborate guesswork by which postal officials
are now obliged to formulate their estimates
and reports.