Evening star. [volume] (Washington, D.C.) 1854-1972, 1909-12-27
BIG POSTAL DEFICIT
Shortage of $17,5OO,OOO Due
to Several Causes.
SEC0ND-CLASS MAIL LOSS
Rural Free Delivery Also a Heavy
Expense to Department.
SERVICE TO BE KEPT UP
No Economy at Cost of Efficiency,
Says Postmaster General in
His Annual Report.
SECOND-CLASS MAIL LOSS
SERVICE TO BE KEPT UP

1000. the largest in the history of the
Post Office Department. as its leading
feature. Postmaster General Hitchcocks
first annual report is given to the public
today A cursory review of previous
periods traces the financial condition Of
the department from a self-supporting
basis between the years 1889 to 1910. ex-
cept for single year, to the colossal
shortage for the fiscal year ending June
30. 1909. Second-class mail privileges
and the rural free delivery service are
blamed for the big deficit, the former
to the extent of a loss in Its operations
of $64 200, 600 and the latter of $2S,OOO.OOO.
The report states. in part, as follows:
THE loss on second-class mail matter
has been increasing for many years, until
1t now amounts to $64,OO0OOO.
1.-The loss from rural delivery. a service
begun hardly a dozen years ago and of
unprecedented growth, reaches as high
as twenty-eight millions.
I'm these two items alone the postal
service now suffers annual loss of
more than the entire national deficit of
the last fiscal year
Great But Costly Benefit.
while the two items mentioned rep
resent postal activities that have I'M
the public. benefits that should not be
minimtzed in the treatment of this sub-
3ect. the present state of our national
finances is such as to render desirable
an earnest consideration of their cost.
simultaneously with the growing
deficit in the postal service, the nations
income suffered last year a serious daple-
ton incident to the financial depression.
Thus it happened that the departments
drafts on the Treasury were heaviest at
| time when the public funds were low
est. This has accentuated the importance
OF the postal deficit, making it conspicu-
Gus among the losses to be met by the
Presidents plan of reducing expenditures
in all executive departments.
Since the opening of the administra-
ton the Postmaster General and his as
sistants have adopted measures in con-
formity with the Presidents policy of re-
trenchment, and these measures are
being put into effect with substantial re-
suits.
Service to Be Kept Up.
1T should be stated with emphasis,
however. that economy is not to be en-
forced at the cost of efficiency. There is
to be no impairment of the service. Un-
doubtedly the people desire that all de-
partments Of the government shall be ad-
ministered with economy. but they also
desire and expect that postal facilities
will be afforded in keeping with the grow
Ing needs of the country, and facilities of
this character the department intends to
furnish.
only such measures of economy will
| be adopted. therefore. az can be made
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.
I'm considering the departments re-
trenchment plan 1t should be remembered
that while the postal service is so closely
interviewer with the commercial interests
OF the country as to reflect Immediately
in reduced revenues any financial depres-
sion, 1t is almost impossible to make a
corresponding reduction In the cost of
maintaining the postal organization, for
that organization must be capable at all
times of meeting without delay the
heaviest demands of constantly fluctu-
atfng mail business.
Loss on Second-Class Matter.
OF second-class mail the report states
that while it provides a revenue of a
little more than 1 cent pound. the cost
to the government for transporting and
handling 1t amounts to 9.23 cents a
pound. Last year the bulk of such mail
amounted to over 7OO.OO0OOO pounds.
constituted about 63 per cent of all do
mestic mail and yet it yielded but ) per
on 1t was greater than the profits on
all other mail combined.
Magazines and other periodical pubIi-
cations. exclusive of daily newspapers
mail, the report states Magazines proper
because of the long average haul OF
1000 miles. show a cost of transporta-
ton of 5 cents a pound as against 2 ceEts
for daily newspapers.
The Postmaster General states that
several months ago he appointed a spe-
cial committee Of departmental officers
qualified to deal with the subject with
instructions to review the information
collected informer investigation and, If
possible, devise a method Of reducing.
without injury to the public or unfair
ness to publishers, the enormous losses
chargeable to this class of mail matter.
1t has not yet finished it's work. but will
do so shortly in way that 1t Is hoped
will be helpful TO Congress in making re-
medal legislation.
The suggestion of doing away with the
ranking privilege and of making the
other executive departments Of thu gov
eminent bear the cost of their mail mat
ter so that the Post Office Department
may not be saddled with it all is left
by the Postmaster General to Congress
for consideration.
Growth Of Rural Service.
The rural delivery service, the Post
twelve years from an experiment, costing
about $4,000 a year, to one of the larg-
est branches of the postal establishment
with an annual expenditure exceeding
So, 600 600. 1.-THE Importance of this serv
ice to a large number OF people is
fully appreciated. 1t brings the farms
and villages into closer communication
with the commercial and educational cen-
tiers. 1t encourages the improvement OIL
country roads BY making rural lie
more attractive it stimulates agrlcu ture
and no doubt it is partly responsI ale for
the increase in farm values" But the
report states its cost Is far greater than
1t should be. for the postage mailed on
rural routes is estimated to amount to
but 100000 against a cost of $S5. 10000
for the service.
The charge for railroad mail transporta-
ton during the past fiscal year Is stated
at nearly $5OOOO.OOO. Effort is now being
made to have the companies furnish such
data relating to their receipts. operation
and expenditures as may be necessary to
enable the Postmaster General to ascer-
tain the cost Of the service to the COM
panies and the proper compensation to be
paid them, that Congress may be advised.
ION the whole" the report states, ut
ia believed that the post offices perform