Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-12-27
BIG DEFICIT IN
P0ST0FF|CE
BUSINESS
SECOND GLASS MATTER
RESPONSIBLE FOR LOSS
Rural Free Delivery Another
Service Which Proves Costly
Postal Banks Urgently Rec
onnended by Secretary,
IBy Morning Journal Special Leased Wirel

IBy Morning journal Special Leased Wirel
Washington, Dee. 6.-Confronted
with a deficit of $17,479.77o the pres
ent administration of the postoffice
department 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 a few millions of dollars annually
little attention was paid to it; but
when in the last few years it leaped
to upward of $10,000,000, and finally
in 1909 exceeded $17,000,000, "ordi-
nary 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
Concerning the results of inquiries into
the deficit, the postmaster general
says:
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 $4,000
600.
The loss from rural delivery, a SER
vice begun hardly a dozen years ago,
ana o: unprecedented growth, reaches
as high as $2S.000,000
In these two items alone the postal
service now suffers an annual loss Of
more than the entire national deficit
of the last fiscal year.
simultaneously with the growing
deficit in the postal service, the ma
tons income suffered last year ser
ious depletion incident to the Tinan-
cial depression. Thus it happened that
the department drafts on the treas
ury were heaviest at time when the
public funds were lowest. This has
accentuated the importance of the
postal deficit making it conspicuous
among the losses to be met by the
presidents plan of reducing expendi
lures in all executive departments
since the opening of the adrninis-
ira tic5, tl,p ostnastcs gen a1al and his
assistants have adopted measures in
conformity with the presidents policy
of retrenchment, and these measures
are being put into effect with suhstan-
tial results as will be shown in this
report
at should be stated with emphasis,
however, that economy is not 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 Improvement of the personnel, the
form of organization and the business
methods of the postal establishment.
THE most striking fact disclosed by
recent Investigations is the tremenr
dous loss on account of second class
mail matter. While this class of mail
provides a revenue of little more than
1
ernment for its handling and trans
portation averages 9.23 cents "A pound.
The annual loss thus incurred, as al
ready stated, is about $64, 900. The
growth In the quantity Of second class
matter sent through the mails has
been extra aordinary. Since the pas
sage of the act of 1879 prescribing
conditions under which publications
may be mailed at second class rates,
the weight OF such matter has in
creased more than 1900 per cent.
Last year it amounted to over $780,
10000 pounds. BY the Weighing of
1907 second class matter was shown
to constitute 63 per cent of all do
mestic mail, and yet it yielded only
about 5 per cent of the postal rev
enues. The loss on second class mat
ter was greater than the profits on
all classes of mail combined 1t ex-
fteuet tnt lOldl dnlouilt Idiu lllt Thll-
ways for mail transportation.
Magazines and other periodical
publications exclusive of daily news
papers comprise about SO per cent of
the second class mail. The magazine
alone forms about 90 per cent. Mag
azines proper because of long aver
age haul show cost OF more tnan
cents a pound for transportation,
while in the case of daily newspapers
for which the average distance of dis
tribution is much less. the transporta-
tion cost is under cents a pound.
The annual loss on third class
mail is something over three million
dollars. The mail matter carried free
under congressional franks costs the
annually about half mil
lion dollars. A greater part, about
two and a quarter millions annually,
results from the free handling OF Of
ficial mail for executive departments
other than the postoffice department.
The annual cost of handling the free
official mail of the pOstoffice depart
ment is estimated at about three mill
lion dollars. II the several branches
of the federal government were made
TO bear their proper share of the eX-
porse of transporting and handling Of
ticial 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 of doing away en-
tirely with the ranking privilege OF
official mail has been suggested, but
this is a matter for congress To deter
mine. such a plan would relieve the
postofficc department of a heavy cN-
pense il is now obliged to bear IN the
handling of free mail FOR other
branches OF the government establish
ment
The rural delivery service has de-
yeloped in twelve years from an eN-
pertinent. requiring an appropriation
Of $4,000. to one 81 the largest
branches Of the postal establishment,
with an annual expenditure exceeding
X35, ,00e.0 900. The postage on matter
mailed on rural routes Is estimated al
about 100000 The Importance II
this service To q large number Of
people Is fully appreciated. IL brings
the farms and villages into closer
communication with commercial and