The Birmingham age-herald., 1912-02-23
Does Not Think That the Public Would Be
 Benefited
MUCH TO COMMEND
 IN THE DEPARTMENT
The President Also Submits With His Approval Postal Commissions Recommendation That Maga-
 zine Rates Be Raised

Washington. February 2i-Presideut Taft today informed Congress that he did not approve of Postmaster General Hitcheocks suggestion that the govern- ment buy and operate all telegraph lines an adjunct of the postal sys- tenn Mir Taft said that if 1t could he shown that the public would benefit by receiving at less price than Is now paid he might think differently of tho plan. but that he was not convinced such would be the effect
 After referring to the practical wip ing out of the postal deficit and other features of Mir. Hitehcock's administra- tion of affairs, Mir Taft in transmitting the Postoffice Departments report 10 Congress today said
 Disapproyes Plan
 There is only one recommendation in which cannot agree-that is one which recommends that the telegraph lines in the United States should be made a part of the postal system and operated in conjunction with the mall system. This presents d question of government own ership of public utilities which are now being conducted by private enterprise ! "I believe that the true principle is that private enterprise should be per mitted to carry on such public utilities under due regulation as to rates by proper authority rather than that the government should itself conduct them. This principle I favor because l do not think it in accordance with the best public policy thus greatly to increase | the body of public servants.
 "Of course, if 1t cannot be shown that telegraph service could be fur nished to the public at a less price than l 1t is now furnished to the public by tell egraph companies and with equal eff eiency the argument might be strong one in favor of the adoption of the pro- position. But I am not satisfied from any evidence that if these properties were taken over by the government l they could be managed any more eco lnomically or any more efficiently or that this would enable the government to furnish service at any smaller rate than the public are now required to pay by private companies"
 1 More than this, it seems to me that the consideration of the question ought | to be postponed until after the postal 1 savings banks have come into com- plete and smooth operation and after a parcels post has been established, not only upon the rural routes and the city deliveries, but also throughout the | department. It will take some time to perfect these additions to the activities of the postoffice department and we may well await their complete and sue cessful adoption before take on Il new burden in this very extended de- partment."
 Finds Much to Commend | The President found much, he said, to commend in MT Hitchcocl1's depart ment. "I cannot speak with too great emphasis" he said, Of the improve ment in the postoffice department un- der the present management" said the President. He showd that there Il surplus of S219,11S.12 at the end of tho last fiscal year, compared with d deficit of $17.479,770.47 two years before This was not to be accounted for. the President pointed out, by reductions of force or numbers of postoffces or salaries, but by scientific economy.
 Mir Taft approved the adoption of a parcels post recommended by Mir Hitch- cock; said that the placing of assistant postmasters in the civil service should be followed by placing under the classi- fled services of postmaster and com lmended the postal savings system. Preparations are being made he said. to establish this system at about 10000 fourth class offices
 Approves Rate Increase
  warded to Congress the report of the commission second class mail matter and recommending that the postal rates on magazines and newspapers be raised from cent to cents pound.
 Postmaster General Hitchcock original ly recommended a cent rate, DwA later changed this to 2. The conl- missions finds that the cost of handling second class matter is about 5is cents a pound. In approving the cent rate. how- ever, President Taft declares that the bus mess enterprises of the publishers of peri | odicals have been built up on the basis oe the cent rate and therefore it would be manifestly unfair to put into immediate effect n larger increase in postage.
 As to the effect of the proposed in- crease from one to two cents a pound President Taft quoted from the report of the postal commission the following paragraph:
 Will Not Bring Distress
 such an increase will not in the | opinion of the commission, bring distress upon the publishers of newspapers and periodicals. or seriously interfere with the dissemination of useful news in- formation. A reasonable time should be allowed after the rate is fixed before 1t Is put into effect While the new rate will be very far from compensating the government for the carriage and handling of second class matter. it will to some extent relieve the existing bur den and result in a more equitable ad- justment of rates"
 That newspapers and magazines have been potent agencies for the dissemina- tlon of public intelligence and conse-. quently have borne a worthy part in the development of the country. Mir. Taft says. all must admit.
 No Warrant for Disparity
 But" he adds, it is likewise true that the original purpose of Congress in pro- vidng for them a. subventon by way of nominal postal charges in consideration of their value as medium of public in- formation ought not to prevent an in- crease, because they are not only educa- tional but highly profitable. There Is no warrant for the great disparity be- tween existing postage rates on periods calls and the cost of the service the gov ernment performs for them. The aggre- gate postal revenues for the fiscal year 1911 were s231, s23.6o, derived mainly . from the postage collected the four classes of mail matter. It is carefully estimated by the postoffice department