The Colorado statesman., 1912-02-24
POSTAL SERVICE
SHOWS A PROFIT
First Time in History, According
to Report of Cabinet
Officer.
RAISE IN RATES is FAVORED
President Cohcurs In Recommends
tlon Of Commission on Second
Class Mall Matter-AgaIn sua-
sests Adoption Of Parcel
Post System.

Warrington. Feb. 22.-For the first
time In the history OF the postal serv-
Ice that department of the government
showed a profit for the fiscal year
ending June 80, 1911, according to the
annual report of Postmaster General
Hitchcock transmitted to congress to-
day. Accompanying the document
was the report of the commission on
second-class mail matter appointed by
Joint resolution of congress on March
4 Of last year and a brief message OF
the president, in which he called at
tention to the principal features of the
two reports.
Would Increase Second-CIass Rates.
The report of the commission on
second-class mail matter makes the
following recommendations:
1. The rate of cents pound on
copies mailed by publishers to sub
scribers, to news agents, and as sam
pie copies, and by news agents to their
subscribers or to other news agents.
2. The rate of 1 cent for each 4
ounces for copies mailed by other
than publishers and news agents; that
3. The present free-in-county priv
1lege retained, but not extended.
The commission also recommended
that the cent-a-copy rate for newspa-
pers other than weeklies and for Pc
riodicals not exceeding 2 ounces in
weight, and the 2-cent-a-copy rate for
periodicals exceeding 2 ounces in
weight, when mailed at city letter.
carrier office for local delivery, be
abolished.
AS to the effect and adequacy Of the
proposed increase of 1 cent a po.ud
in postage the commission says:
Such an increase will not, in the
opinion of the commission. bring dis
tress upon the publishers Of newspa-
pers and periodicals, or seriously in
terfere with the dissemination of use
ful news or information. 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 Sec
ond-class matter, it will to some ex-
tent relieve the existing burden and
result in a more equitable adjustment
of rates."
Both the president and the postmas-
ter general concur in the recommends
tions and regarding the proposed in
crease in newspaper postage the presi-
dent says: "The proposed increase of
/ cent a pound in the second-class
postage rate, believe. to be most
reasonable, and II sufficient time is al
lowed before the change goes into ef-
feet 1t should work little serious in
Jury to the business of the periodical
publishers. while equalizing. at least
in a measure, the burdens of postal
taxation"
Rates Should Be More Equal.
Commenting further on the pro-
posed increase. the president says:
"The postal service is now, for the
first time in years, operated upon a
self-sustaining basis, and in my 5udg-
ment this is a wise policy; but 1t
should not be carried out at the ex-
pense of certain classes of mail mat
ter that pay revenue largely in ex-
cess of their cost. 1t Is not just that
some classes of mail should be ex-
brilliantly taxed to meet deficiency
caused by other classes, the revenue
from which is much below their cost
of handling and carriage. Where such
inequalities exist they should be re-
moved as early as practicable. The
business enterprises of the publishers
of periodicals., however, have been
built up on the basis of the present
second-class rate, and therefore 1t
would be manifestly unfair to put into
Immediate effect large increase in
postage. That newspapers and maga-
zines have been potent agencies for
the dissemination Of public intelii-
gence and have consequently borne a
worthy part In the development of the
country all must admit; but 1t is like
wise true that the original purpose of
congress in providing for them a sub
yention by way of nominal postal
charges in consideration of their
value as mediums of public informa-
ton ought not to prevent an increase,
because they are now not only educa-
tional but highly profitable. There is
no warrant for the great disparity be-
tween existing postage rates on Pc
riodicals and the cost of the service
the government performs for them.
The aggregate postal revenues for the
fiscal year 1911 were $237 .879. .823.60,
derived mainly from the postage col
lected on the four classes OF mail
matter. 1t is carefully estimated by
the postcffice department that the
revenue derived from mail matter OF
the first class is approximately one
and one-half times the cost Of han
ding and carriage; that the returns
from third and fourth class matter are
slightly in excess Of their cost OF
handling and carriage; and that while
second-class matter embraces over 65
per cent. of the entire weight of all
the mail carried, 1t. nevertheless,
yields little more than per cent, OF