Los Angeles herald., 1910-12-12
POSTAL DEFICIT
CUT Sl1,500,O00
Postmaster Generals Annual
Report Shows Service Is
Being Extended
WAGES OF MEN INCREASED
Federal Banks Being Established
and Parcels Post Is Rec
commended
WAGES OF MEN INCREASED


postoffice department of $11,500,000, ac-
cording to the annual report of Post
master General Frank H. Hitchcock,
made public today.
While a year ago the fiscal records
of the postal service disclosed a deficit
of SIT, 500, 900, the largest in the history
of the country, the excess of eXpend1-
lures over receipts for the year ended
June 80 last amounted to only S584S,566.
Tn commenting upon this reduction,
Postmaster General Hitchcock says in
his report:
ut is most gratifying to report that
this unprecedented reduction has been
made without any curtailment of post
al facilities. On the contrary, the serV-
ice has been largely extended.
1.-THE policy of the present admins
tration has been to wipe out losses by
increasing the postal business along
profitable lines, and while thus enlarS-
ing the departments income to reduce
as far as possible the rate of eXpendi-
ture by cutting out wasteful processes
by simplifying and rendering more ef-
fective the methods of handling postal
business. and by raising to the highest
possible standard the efficiency of Of
ficers and employees.
SPEED SAVES MONEY
IQo more quickly man ilcilANA Nt'ii
be handled the less expansive Is the
process. The department accordingly
has devoted itself with great earnest
ness to the work of increasing the ef-
fciency of the mail service, considering
this the surest method of making the
postal establishment self-supporting."
The departments policy is to extend
the service as rapidly as is warranted
by increasing population. In further
ance of this policy 1900 new postoff1ces
were established during the last year,
and Sis new rural delivery routes, traV-
ersing altogether 1926 miles, were In
stituted. Nearly $500 new employees OF
various classes were placed upon the
rolls of the department, whose agSre-
gate salaries were more than $2,OOO'OOO
annually. In addition to this sum,
81 75O 000 was added to the salaries of
postoffice clerks, 81, 226,000 to the salar-
les of letter carriers and $25O,OO0 to the
salaries of railway mail clerks. All in
creases in salary were based upon ef-
ficiency ratings.
In the discussion Of second-class mail
Postmaster General Hitchcock points
ont the constant growth of this class
of matter. 1t is carried at a loss. ana
he urges that a remedy should be
promptly applied by charging more
postage
RAISE RATES FOR ADS
ON levying the higher rate" the re-
mort suggests, 'it is believed that q
distinction should be made between ad-
vertising matter and what is termed
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 secondclass
publications. including educational
and religious periodicals, that derive
little or no profit from advertising.
1t is the circulation of this type OF
publications, which aid so effective
iv in the educational and moral ad-
vancement 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 depart
ment favors a continuation of the
present low postage rate of one cent
n pound, and recommends that the
proposed increase in rate be applied
only to magazine advertising mat
ter.
I'm view of the vanishing postal
deficit il is believed that if the maya
zines 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 Olc NCllt pOoNoSS
on first class mail.
Newspapers are not included in the
plan for a higher rate on advertis-
ing matter because, being chiefly of
local distribution, they do not en-
ploy the mails to any such extent as
the widely circulating magazines"
RURAL SERVICE COSTLY
While the loss resulting from the
low postage rate ON second-class mail
is the greatest in the postal service
the loss on rural delivery service is
very considerable. The appropriations
annually granted to maintain the
pointed out in the report, are eX-
pended in the interest of vast pop
ulaton. MT. Hitchcock urges the
wisdom of further extension of this
system even at a considerable loss to
the government. He points out, also,
the business wisdom of the consolida-
ton during the last year of the star
route and rural delivery system, the
consolidation having been the means
of effecting large saving and of in
creasing the efficiency Of the SER
vice
Mr.. Hitchcock reviews the work al
ready accomplished looking to the es-
tablishment Of postal savings banks.
A trial of the new system viii be
one postoftice in each state and ter
ritory of the Union. The amount ap-
propriated by congress for this trial
was 100000 All of the offices Sc
Iected for the trial are of the second
class, wage earners being particular
Iy benefited. 1t is expected that the
new postal savings system will be
extended to many other offices before
the end Of the current fiscal year.
RECOMMENDS PARCELS PosT
A renewal of the previous recon.
mendation for a limited parcels post
service on rural routes is made. Mr.
Hitchcock expresses the hope that con-
gress will authorize the delivery on
rural routes of parcels weighing as
high as eleven pounds This scheme
can be put into operation with little If
any expense to the government.
A recommendation is made that con-
gressional authority he given the de-
partment for the issuance of postal
notes in amounts not exceeding $40, at
a. lower fee than is charged for many
orders.
Mr.. Hitchcock believes that many
abuses of the franking system could
be prevented, With marked economy,
by supplying special official envelopes
and stamps for free mail of the gov
ernment. In the present circumstances
IL Is impossible to determine the cost