New-York tribune., 1910-04-12
REDUCTION IN DEFICIT
Hitchcock Predicts Decrease Of
S1n-00O.OOO for Year.

Washington. April 11.-Bssing his con-
clusions on the auditors return OF postal
receipts and expenditures for the first half
of the current fiscal year and on prelirni-
nary returns for the third quarter OF the
wear. which closed on March 81, Postmaster
General Hitchcock predicted to-day that
the first year OF the present administration
would show a decrease Of over SOO"o00
In the deficit Of i7.fSO.0lo handed down
from the preceding year. The deficit for
the first half OF the current year was ~
O72 90 as against SO, 2s5. 90 for the first hall
of last year a reduction of over 100000 In
six months.
The recent publication OF the auditors
returns for the quarter ended December 81
disclosed the fact that the service had oeen
conducted during that period az an actual
profit OF S2l15O0c the largest surplus re-
corded. il IS stated. for any quarter In the
history of the department Postmaster
General Hitchcock expressed the belief that
the final figures for the quarter ended
March 81 also would show a surplus OF
close TO 100000
The hnaI quarter OF the year, that endlns
June 20 next. In which certain heavy ex-
penses Of the service will fall. Is likely MI
Hitchcock said. TO show deficit. but as
that deficit to be exceptionally small. The
Postmaster General said he would not De
surprised If the excess Of expenditures over
receipts for the entire year fell as low as
& 10000. which would mean. he said. the
viplng out of over s12.OOoOOO Of deficit in the
period OF twelve months
The officers of the department attribute
the extraordinary reduction shown in the
rate of expenditure TO certain radical re-
forms that were introduced at the open
ing OF the year in the methods of handling
the postal business. During the first
months of the administration the Post
master General assembled al Washington
the most experienced officers in the regis
try service the money order service and In
general pOstoffice management. Each set
OF officers remained in conference for sew
eral weeks and before adjourning submit
ted definite recommendations for better
ment Of their respective services. These
recommendations were Immediately put
into effect
Mr. Hitchcock said further:
The work Of reorganization is still in
progress. and the Postmaster General be
iieves that with certain changes he has
postal laws that now hamper the depart
ment it will be possible in another year
10 place tne pOStal service OH StIl-Su7t
ing basis Notwithstanding the tremendous
losses resulting from the low rate OF post
age on second class matter. During the
first half of the present fiscal year, Tor
which the auditors returns are now avail
able, second class matter constituted In
weight fully two-thirds of all mail hand ed,
but the receipts from 1t amounted 10 about
100000. or less than per cent OF the
total receipts for the half-year.
In view OF the large reduction already
made I'm the rate of postal expenditures,
am now firmly Of the opinion that proper
postage charge on periodical matter would
wipe out not only the postal deficit. but
would cause a sufficient surplus OF receipts
to warrant one-cent letter postage.