Arizona republican., 1910-12-12
ITS FACILITIES EXTENDED
Recommendation of Post master General Hitch cock for Higher Postage on Magazine Advertising Matter.

space of twelve months a reduction had been made in the deficit of the Postoffice Department of $11,50O,0O0. according to the annual report of Postmaster General Frank H. Hitch cock made public today.
 While a year ago the fiscal re- cords of the postal service disclosed a deficit of 7,5OO, ,00O, the largest in the history of the country. the ex- cess of expenditures over receipts for the year ended June S0th. last, amounted to only $5,S4S,566. In commenting upon this reduction Postmaster General Hitchcock says in his report:
 Tt is most gratifying to report that this unprecedented reduction has been made without any curtailment of pos tai facilities. On the contrary, the service has been largely extended
 The policy of the present admin istration has been to wipe out losses by increasing the postal business along profitable lines, and while thus enlarging the departments income to reduce as far as possible the rate of expenditures by cutting out waste full processes. by simplifying and rem dering more effective the methods of handling postal business, and by rais- ing to the highest possible standard the efficiency of officers and em- ployes.
 The more quickly mail matter can be handled the less expensive is the process. The department-a Accordingly has devoted itself with great earnest ness to the work of increasing the efficiency of the mail service, consid- ering this the surest method of mak ing the postal establishment self supporting"
 The departments policy is to eX- tend the service as rapidly as is war ranted by increasing population. In furtherance of this policy, 1500 new postoffices were established during the last year and 515 new rural de- livery routes traversing altogether 12.235 miles, were instituted. Nearly 3600 new employees of various classes were placed upon the rolls of the de- partment whose aggregate salaries were more than $2,00O,000 annually. In addition to this sum, $1,75O,00O was added to the salaries of postoffice clerks, s1,226,00O to the salaries of letter carriers, and $25O.O00 to the salaries of railway mail clerks. All increases in salary were based upon efficiency ratings.
 In the discussion of second class mail, Postmaster General Hitchcock points out the constant growth of this class of matter It is carried at a loss, and he urges that a remedy should be promptly applied by charg ing more postage.
 Tn levying the higher rate" the report suggests, fit is believed that a distinction should be made between advertising matter and what is term ed legitimate reading matter.
 Under present conditions an in crease in the postage on reading mat ter is not recommended. Such an in- crease would place a special burden on a large number of second-cla publications, including educational and religious periodicals. that derive little or no profit from advertising It is the circulation of this type of publications. which aid so effec- lively in the educational and moral advancement of the people, that the government can best afford to en- courage. For these publications, and also for any other legitimate reading matter in periodical form, the de- partment favors a continuation of the present low postage rate of one cent a pound. and recommends that the proposed increase in rate be applied only to magazine advertising matter.
 In view of the vanishing, postal deficit it is believed that If the mag azines could be required to pay what it costs the government to carry their advertising pages the departments revenues would soon grow large enough to warrant one cent postage on first-class mail.
 Newspapers are not included in the plan for a higher rate on adver- tising matter because, being chiefly of local distribution, they do not employ the mails to any such extent as the widely circulating magazines. :"
 While the loss resulting from the low rate on second class mail is the greatest in the postal service the loss on rural delivery service is very con- siderable. The appropriations annu- ally granted to maintain the rural delivery system. however, as pointed out in the report. are expended in the interest of a vast popula~son. MT. Hitchcock urges the wisdom of fur ther extension of this system even at a considerable loss to the govern