The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1909-12-27
POSTAL REPORT
SHOWS B|CLOSS
Revenues from Second Class Mail
and Rural Delivery Are
Chief Sources.
INVESTIGATION Is Under WAY
Department Renews Recommendation
for Postal Savings Banks and Sug-
sests Establishment of System
Of Checks and Notes.

with deficit OF s17,479,77O, the present
partment began its operations. This
was the largest deficit in the history
of the postal service. So long as the
deficit in the department aggregated
only few millions of dollars annu-
ally, little attention was paid to 1t;
but when. in the last few years, II
leaped to upward of 100000 and
finally, in 1909, exceeded $4,000, 900,
Ordinary business prudence suggested
that the causes be definitely located
These are statements in the annual
report of Postmaster General Frank
III. Hitchcock. made public today.
Concerning the results OF inquiries
into the deficit, the Postmaster Gen
eral says:
Great Sources of Loss.
Recent Investigations have shown
that the two great sources of loss to
the postal revenues are second class
mail matter and rural delivery.
"The loss on second -class mail mat
ter has been increasing for many
years, until it now amounts to $64,-
100000. The loss from rural delivery,
reaches as high as twenty eight mil
lions.
"In these two items alone the pos
tai service now suffers an annual loss
of more than the entire national de-
ficit of the last fiscal year.
"Since the opening of the adminis-
tration the Postmaster General and
his assistants have adopted measures
in conformity with the Presidents
policy OF retrenchment, and these
measures are being put into effect
with substantial results, as will be
shown in this repoit.,rc. ss.rrf.
e 1T should be, stated with emphasis,
however,. that economy is not to be
enforced at the cost of efficiency
The most striking fact disclosed
by recent Investigations is the tre-
mendous loss on account Of second
class mail. While this class of mail
provides a revenue of little more than
cent a pound, the cost to the gov
ernment for its handling and trans
portation averages s.23 cents a
pound. Since the passage of the act
of 1897 prescribing conditions under
which publications may be mailed at
second-class rates the weight of such
matted has increased more than 1900
per cent. Last year it amounted to
over $700,000,00O pounds. By the
weighing of 1907 second-class matter
was shown to constitute SO per cent.
of all domestic mail, and yet 1t yielded
only about per cent. of the postal
revenues.
The Franking Privilege.
THE annual loss on third class
mail is something over three million
dollars. u The mail matter carried free
under congressional franks cost the
Government annually about a half
million dollars. A greater loss, about
two and quarter millions annually.
results from the free handling of Off
cial mail for executive departments
other than the Post-offlce Depart
ment, The annual cost of handling the
free official mail of the Postoffice De-
partment is estimated at about $3,000,-
900. If the several branches of the
Federal Government were made to
bear their proper share of the expense
of transporting and handling official
mail greater care would be taken no
doubt in the exercise of the franking
privilege and some saving to the
would accordingly result.
The wisdom of doing away entirely
with the franking privilege or official
mail has been suggested, but this is
n matter for Congress to determine.
Rural Mail Service.
The rural delivery service has de-
veloped in twelve years from an ex-
pertinent. requiring an appropriation
of $4,000, to one of the largest branch
es OF the postal establishment. with
an annual expenditure exceeding $685..
100000. The postage on matter mailed
on rural routes is estimated at about
81. 900. 900.
Insofar as the rates of payment
for transportation of the mails are
fixed by contracts based on competi-
tive bidding. there can be no doubt as
to their fairness. The larger part of
this item. however. Is for payments to
at rates fixed by law The
charge for this service during the past
fiscal year was nearly s5O,OoO,OOO.
Possible Improvement.
"In one respect. the postal service
Is susceptible OF marked improve
ment II needs a more effective sys-
tenn OF supervision. over 10000 offices
throughout the length and
breath OF the land are directly de-
pendent on the department at Wash
Ington for instructions. for authority
to make expenditures. and for sup
plies. II would seem 20 be an excel
lent plan 10 make large city postonices
the centers % convenient postal areas
by giving city postmasters supervisory
over the smaller offices Of
the nclghborhood.
sssThe denarfmenf'a recommendation