The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1909-12-27
?. 0. Deficit
EXPLAINED
continued from page One


I'm these two items alone the postal
service now suffers an annual loss of
more than the entire national deficit Of
the last fiscal year
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
'It should be stated with emphasis,
however, that economy is not to be en-
forced at the cost of efficiency.
"The most striking fact disclosed by
these Investigations is the 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
| it's handling and transportation over
ages 1923 cents a pound. The annual
loss thus incurred, as already stated, is
about 64,000,000. The growth in the
quantity of second class matter sent
through the mails has been extraordi
nary. Since the passage of the act of
1879 prescribing conditions under
which publications may be mailed at
second class rates the weight of such
matter was increased more than 1900
per cent. Last year it amounted to
over 100000, 900 pounds. BY the weigh
ling of 1907, second class matter was
shown to constitute So per cent of all
+, domestic mail, and yet it yielded only
about per cent of the postal revenues.
The loss of second class matter was
greater than the profits on all classes
of mail combined 1t exceeded the to-
tai amount paid the railways for mail
| transportation.
| Magazines and other periodical pub
locations exclusive of daily newspapers
comprise about so per cent of the sec
ond class mail. The magazine alone
forms about % per cent. Magazines
proper, because of the long average
haul, show a cost CT more than cents
q pound for transportation, while in
the case of daily newspapers for which
the average distance is much less, the
transportation cost is under Q cents
a pound.
"The annual loss on third class mail
is something over $3000000 The mail
matter carried free under congressional
franks cost the government annually
about half a million dollars. A great
loss, about two and quarter millions
annually, results from the free handling
of official mail for executive depart
ments other than the postoffice depart
ment. The annual cost of handling the
free official mail of the postofice de-
partment is estimated at about $4,000
600. If the several branches of the
federal government were made to bear
their proper share of the expense of
transporting and handling official mail,
geater care would be taken no doubt,
in the exercise of the franking privil-
eye and some saving to the government
would accordingly result. This wis
dom of doing away entirely with the
ranking privilege or official mail has
been suggested, but this is a matter
for congress to determine. Such al
plan would relieve the postoffice de-
partment of heavy expense it is now
obliged to incur in the handling of free
mail for other branches of the gov
ernment establishment.
Rural Delivery Service.
1.-THE rural delivery service has de-
veloped in twele years from an ex-
pertinent, requiring an appropriation
Of $4,000, to one of the largest
branches of the postal establishment,
with tan annual expenditure exceeding
$35,00O.000. The postage on matter
mailed on rural routes is estimated at
about $7,000,000. The Importance of
this service to large number of peo-
pie is fully appreciated. 1t brings the
farms and villages into closer COM
munication with commercial and edu-
cational centers. It encourages the
improvement of country roads. BY
making rural life more attractive it
stimulates agriculture. NO doubt it
Is partly responsible for the increase
in farm values. Owing to the marvel
ously rapid growth of this service,
however, it is but natural that defects
have developed. The cost of rural
delivery is probably much greater than
1t should be. Now is an appropriate
time for considering carefully the
condition under which it is operated,
for perfecting the existing organiza-
ton, and for introducing such econo-
mics as are consistent with a proper
conduct Of the service.
I'm so far 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
railways at rates fixed by law. The