New-York tribune., 1909-12-27
FACED BIG DEFICIT
HITCHCOCK REPORTS.
Postal Serzice Loss Largely
Due to Second Class Mail.

Washington. Dec 26-Postmas -er Cen
eral Frank H. Hitchco ok in his annual re-
port, made public to-day. says that the
present administration of the Postofhce
Department began It's operations confront
ed with deficit of Sl7.479,770, the largest
in the history Of the service So long as
the deficit in the department. aggregated
only a few millions of dollars annually.
he adds little attention was paid 90 II.
but when in the last few years fl ieapcd
TO upward Of $4,000 90, and finally IN
1909 exceeded 100000, ordinary bust
, ness prudence suggested that the causes
be definitely located"
Concerning the results Of Inquiries into
the defict the Postmaster General says;
Recent investigations have shown that
the two great sources or loss 20 lIls pos," ,
revenues are second class mail matter am
rural delivery.
The loss on second class mail matter has
been increasing for many years uhth II
now amounts 10 SS4, ,0o1.
The loss from rural delivery, service
begun hardly a dozen years ago ana OF
unprecedented growth, reaches as hlsh as
In these two items alone the postal ser
vice suffers an annual loss ~ more
than the entire national denclt pl the 4dsI
fiscal year.
simultaneously with the growing deficit
in the postal service, the nation income
suffered last year serious depeuon lhci-
dent TO the financial depression. Ihus II
happened that the department draIts on
the Treasury We're heaviest at d IlIne Wheh
the public funds wsre lowest This mas
SCcenTuated the importance OF the poSta l
deficit, making IL conspicuous among me
losses 10 be met by the Presidents plan
Of reducing expenditures in all executive
departments.
Since the opening of the administration
the Postmaster General and his assistants
have adopted measures in conformity with
the PRESIDENTS policy OF reLrencnllleIL ana
these measures are being put into effect
with substantial results.
Mr.. Hitchcock declares emphatically
however, that economy is not to be en-
forced at the expense OF efficiency. On this
point he says:
Only such measures of economy will be
adopted. therefore. as can be made a con-
sistent part OF a general programme hav-
ing for its chief object the improvement or
the personnel, the form of organization
and the business methods of the postal es-
tablishment.
BIG LOSS on SECOND CLASS MAIL.
He discusses at considerable length the
loss on second class mail matter saying, in
part:
The most striking fact disclosed by re
cent Investigations is the tremendous loss
on account OF second class mall W nile ms
class OF mail provides revenue or little
more than one cent pound the cost to
the government for its handling and trans
porraJiOn averages 9.23 cents pound. The
annual loss thus incurred. as already
stated. is about ST.. 100000. The growth in
the quantity of second class matter sent
through the mails has been extra ordinary.
Since the passage of the act OF 1873, pre-
scrlbing conditions under which pubilca-
tions may be mailed at second class rates.
the weight OF such matter has increased
more Lhan I.olI per cent Last year Z
amounted 70 more than 100000 900 pounds.
BY The weighing of 1907 second class mat
ter was shown 10 constitute 90 per cent of
all domestic mail and YET II yielded only
about per cent of the postal revenues. The
loss on second class matter was greater
Ihan the profits on all classes Of mail COM
bined. Il exceeded the total amount paid
the railways for mail transportation.
Magazines and other periodical publica-
tons. exclusive of daily newspapers, COM
prise about GO per cent of the second class
mail The magazines alone form about -
long average haul, show d cost of more
than 5 cents pound for transportation.
while in the case Of daily newspapers, for
which the average distance OF distribution
IS much less. the transportation cost is
under cents 8 pound
The annual loss on third class mail IS
something more than S3,00o,000. The mail
matter carried Iree under Congressional
franks costs the government annually
g. go o0G annually, results from the free
handling OF official mail for executive de-
partmsnts other than the Postoftice De
partmenJ. The annual cost OF handling
the free official mail of the PosIoffice De-
par-nenT Is estimated ar about $4,000. 00e.
Il the several branches Of the federal gov
ernment We're made 10 bear their proper
snsre ur the expense OF transporting and
handling official mail greater care would
be taken. no doubt. in the exercise of the
ranking privilege, and some saving to the
government would accordingly result The
wisdom D doing aWav entirely with the
1ranking privilege or official mail has been
suggested, bUt this Is a matter Tor Con-
SreSS 70 determine. Such a plan would re
ileve the POsrOffice Department Of heavy
handling OF free mail for other branches
OF the government establishment
RURAL FREE DELIVERY
Discussing the rural free delivery service
the Postmaster General says:
The rural delivery service has developed
~ twelve years from an experiment. re
quiring an appropriation OF $4,000. TO one
of The largest branches OF the postal es-
"a Ls5lishmeut. with al annual expenditure
exceeding So. 00O. 600. The postage on mat
ter mailed rural routes is estimated a
about $1,000. 00r. The importance of this
service TO large number OF people is fully
auDrecisUed. IT brings the farms and viii
mercial and educational centres. Il en-
couragps The improvement OF country
roads. BY making rural life more at
JracriYe, il stimulates agriculture No
doubt n is partly responsible LOT the in
crease IN laIu values.
Owing TO the marvellously rapid growth
OF the service, however. IL is but natural
that defects have developed. The cost Of
rural delivery is probably much greater
than II should be Now is an apDrOD,iafa q