Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1909-12-27
POSTMASTER GENERAL LOCATES
CAUSES FOR INCREASED
EXPENSES.
SECOND CLASS MATTER
AND RURAL DELIVERY
Former is Largest Factor in Creating
Deficit-Economy is Practiced, But
Not at the Pric. of Efficiency-sec-
ond Class Matter Handled at Enor.
nous Loss.

| Washington, Dec. 27.- Confronted
with deficit of s17,479,77o, the present
administration of the postoffice depart
ment 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
millons of dollars annually, little at
tention was paid to it; but when, in
the last few years-it leaped to upward
OIL slo,ooo,OOo, and finally, in 1909 ex-
oeeded $4,000, 900, ordinary business
prudence suggested that the causes be
definitely located"
These are statements in the annual
report of Postmaster General Frank H.
hitchcock, made public today. Con-
corning the results OF inquiries into the
oeHclt' the postmaster general says
Recent Investigations have shown
That the two great sources of loss to
the postal revenues are second class
man matter and rural delivery.
The loss on second class mail mat
ter mas been increasing for many wears.
until 1t now amounts to $4,000, 900.
The loss from rural delivery, serv-
ice begun hardly a dozen wears ago
ana OF unprecedented growth, reaches
as hign as $2S,000,O00
In these two items alone the pastal
service now suffers an annual loss of
more than the entire national deficit of
tie last fiscal year.
simultaneously with the growing
deficit in the postal service. the ma
ions income suffered last year a seri-
Gus depletion incident to the financial
depression. Thus it happened that the
departments drafts on the treasury
were heaviest at a time when the pub
lie funds were lowest. This has ac-
ceatuated the Importance of the postal
deficit, making it conspicuous among
the losses to be met by the presidents
plan of reducing expenditures in all
executive departments.
Economy But Not lnefficiency.
Since the opening of the admins
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 substan-
tial results, as will be shown in this
report.
1T should be stated with emphasis,
however, that economy is not to be en-
forced at the cost of efficiency.
"Only such measures of economy will
be adopted, therefore as can be made
a consistent part of general program
having for its chief object the improve
ment of the personnel. the form of Or
ganization. and the business methods
OF the postal establishment.
Second Class Matter.
THE most STRIKING fact disclosed by
recent Investigations is ta.. tremendous
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 government for
its handling and transportation aver
ages 9.23 cents a pound. The annual
loss thus incurred, as already stated
is about s64,000,C00. The growth in the
quantity of second-class matter sent
thru the mails has been extraordinary.
Since the passage of the act of 1879
prescribing conditions under which pub
LEGATIONS may by mailed at second class
rates, the weight of such matter has in
creased more than 1900 per cent. Last
year it amounted to over 500, 900, 900
pounds. BY the weighing of 1907 sec
ond- class matter was shown to con-
stitute SO per cent of all domestic mail,
and yet it yielded only about per
cent of the postal revenues. The loss
m
than the profits on all classes of mail
combined. 1t exceeded the total amount
paid the railways for mail transporta-
ton.
Magazines and other periodical pub
locations exclusive of daily newspapers
comprise about so per cent of the sec
ond- class mail. The magazines alone
form about 90 per cent Magazines
proper, because of the long average
haul. show a cost of more than cents
a pound for transportation, while in
the case of daily newspapers for which
much less, the transportation cost is
under cents a pound.
Development of Rural Delivery.
1.-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 branches
of the postal establishment with an
annua: expenditure exceeding 49,. 000,-
600. The postage on matter mailed on
rural routes is estimated at about
/ $4,000 900. The Importance of this ser
vice to a large number of people is fully
appreciated. 1t brings the farms and
villages into closer communicative,
with commercial and educat ional CEN
! ters 1t encourages the Improvement
( of country roads. BY making rural
/ life more attractive it stimulates agri-
culture. No doubt it is partly re-
sponsible for the increase in farm val
ues. Owing to the marvelously rapid
growth of this service, however, it is
but natural that defects have de-
veloped. The cost of rural delivery is
probably much greater than it should
be. Now is an appropriate time for
considering carefully the conditions UNI
der which it is operated, for perfect
ing the existing organization, and for
introducing such economies as are
consistent with proper conduct Of the
service.
Chance for Improvement.