The Robesonian., 1909-12-30
The POSTAL DEFICIT
Loss o. Second-CIass Mai! ard
Rural Service Heavy Post
master Generals Report.


washinaton. H. c. Dispatrh, 2stE. =
Confronted with a deficit OF
$l7.479, TO, the present admin
istration Of the PostofIice Depart
ment began its operations: This
was the largest deficit in the
history Of the postal service. SO
long as the deficit in the depart
ment 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 $40, 600, 900,
and finally, in 1909, exceeded
SIT, 100000, ordinary business
prudence suggested that the
causes be definitely located.
These are statements In the
annual report of Postmaster Cen
eral Frank H. Hitchcock, made
public today. Concerning the re-
suits of inquiries into the deficit,
the Postmaster General said:
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
matter has been increasing for
many years, until it now amounts
to $64, 100000
"The loss from rural delivery,
a service begun hardly a dozen
years ago and of unprecedented
growth, reaches as high as 1923,
600, 900.
simultaneously with tn e
growing deficit in the postal SER
vice, the nations income suffer
ed last year a serious depletion
incident to the financial depress-
ion. Thus it happened that the
departments drafts on the Treas
ury were heaviest at a time when
the public funds were lowest
This has accentuated the impor-
tance of the postel deficit, max
ing it conspicuous among the
losses to be met by the Presi.
dents plan of reducing eXpendi,
lures in all executive depart.
ments.
"Since the opening of the ad
ministration the Postmaster Gen
eral and his assistants have
adopted measures in conformity
with the Presidents policy O:
retrenchment, and these meas
ures are being put into effec
with substantial results, as will
be shown in this report.
TOO MUCH ENCONOMY BAD.
1T should be stated with EN-
phasis, however, that ecouomy i
not to be enforced at the cost o
efficiency.
"Only such measures of econo
my will be adopted, therefore, a
can be made cosistent part of
general program having for it
chief object form of organization
and the business methods of tn
postal establishment.
"The most striking fact dis
closed by recent investigation
is the tremendous loss on accour
of second-class mail. While tn
class of mail provides a revenu
of little more tnan l cent pounC
the cost to the government for it
handling and transportatio
averages 9.23 cents a pound. Th
annual loss thus incurred, as a
ready stated, is about $64, 4,OO(
600. The growth in the quantit
of second-class matter sci
through the mails has been e
traordinary. Since the passal
of the act of 1897 prescribi1
conditions under which public
tons may be mailed at secon
class rates the weight of su
matter has increased more ths
1900 per cent. Last year
amounted to over 100000 @
pounds. By the weighing
1907 second-class matter "
shown to constitute 63 per ce
Of all domestic mail, and yet
yielded only about 5 per cent
the postal revenues. The loss
second-class matter was grea
than the profits on all classes
mail combined. 1t exceeded 1
total amount paid the r
ways for mail transportation.
SECOND CLASS MAIL.
Magazines and other peri
ical publications exclusive
daily newspapers comprise alb
so per cent of second-class m
The magazines alone form ab
20 per cent. Magazines pro,
because of the long average h