The Birmingham age-herald., 1911-12-11
P0STOFF|CE MAKES A NEW RECORD For First Time Since 1883 Surplus own
 AZ AS TO 2,.o gELS POST 90
Summs . sse Report of Postmaster c shows Important Event On ear Organization of the
 Postal Savings System


 first time since 1888 the annual finan-
 cial statement of the postoffice depart ment shows a surplus instead of a defi- cit"
 This Is the burden of the annual re- port of Postmaster General Hitchcock ! made public today. He indicated that the placing of the postal service upon a self-sustaining basis meant an exten- sive of facilities and 1 cent letter post age.
 At the beginning of the present ad-
 ministration 1909, MT. Hitchcock point
 ed out the department showed deficit
 of $4S977O, the largest on record. In two years this deficit has been chang ed .rto a surplus of s219, 11S, despite in,- portant extensions throughout Inc service. These extensions include Si44 Lew postoffices, delivery of mall by car riers in 1S6 additional cities. 25l4 new
 rural mail routes. aggregating 60,79e
 miles, and 5000 additional postal en- ployes, with the salary roll greater by s14,O0O, ,0O0 than it was two years ago. The postal savings bank system, less .han a year old, now is in operation in practically all of the 7500 presidential postoffices. They will be established in about 10000 fourth class offices that do a money order business. In eleven months operation postal banks depos- it's aggregated $11,000,000 and they are expected to reach $4O,Ooo,Ooo or more ly July 1.
 In view of the successful operation of the postal banks, MT. Hitchcock strong ly recommended the establishment by Congress of an adequate parcel post which he said could be put in opera ton in a few months. Postmaster Gen eral Hitchcock feiteratea that the sec ond class postage rate should be cents instead of 1 cent pound, He also urged that by readjustment of the pay of railroads for transporting ethe mails, based on actual cost to the rail-
 rnent of at least s9O.000,Oo0 could be effected
 MT. Hitchcock said:
 "The progress in aviation encourages the hope that ultimately the regular conveyance of mail by this means may be practicable in many districts where the natural conditions preclude other means of rapid transportation"
 MT. Hitchcock recommended granting all postal employees 30 days annual leave: that "a civil pension based on length of employment be granted by the government" to superannuated em- ployes, and that presidential postmas- ters be placed in the classified service,
 For the first time since 1883 the annual financial statement of the postoffice de- partment shows @ surplus instead of a deficit The revenues for the fiscal year ended June 30, 1911, amounted to $237,- SIS, ,s23.eO, and the expenditures to $751;, G6O, 7O5. AS, leaving surplus of $219,11S12 At the beginning of the present admins
 tration in 1909 the postal service was in arrears to the extent of $17,479,77o 47, which was decidedly the largest deficit on record. In the brief space of two years this deficit has been changed into a substantial surplus.
 Extension of the Service The wipng out of the deficit has been accomplished without curtailment of pos- tai facilities. On the contrary, important extensions have been made in every branch of the service. Since the opening of the present administration there have been established 3744 new postoffices, de- livery by carrier has been provided in 1S6
 additional cities. and 25l6 new rural
 routes, aggregating 60,679 miles. have
 been authorized. Meanwhile the force
 of postal employees has been increased by more than 5000. In compepsating such employees the department follows a liberal policy. Last year the total amount ex- rended for salaries was approximately
 $14OoO0,000 greater than two years ago. The average annual salary has been in
 creased from $S69 to s967 for rural carriers,
 from $979 to s1oS2 for postoffice clerks.
 from si021 to $l0S4 for city letter carriers
 and from s116s to $l1S3 for railway postal
 clerks. Thus a marked extension of the
 postal service and higher compensation for it's employees have gone hand in hand
 with vanishing deficit.
 Postal Savings System An important event of the year was the successful organization of the postal savings system. On January 3. 1911, de- EOSitOrieS were opened experimentally at a single postoffice in each one of the 4s states and territories. After a careful test for four months at these offices the system was rapidly extended and now | comprises practically all of the 75oo presi- dential postoffices. Preparations are be- | ing made to establish the system also | in about 4O,OOO fourth class offices that do a money order business. 9f T In the establishment of Repositories only | such postoffices are selected as have a record for efficient management This plan has materially aided the department l in its efforts to improve conditions in the postal service.
 Under the method devised for the con duct of the postal savings system certif- | cates are issued as evidence of deposits and all accounts with depositors are kept | by the postoffices instead of by the de- partment. Compared with the universal | practice in other countries oT entering deposits in pass books and keeping at 1 the central office a ledger account with
 each depositor, the use of the certificate 
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