The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1912-08-11
SENATE D|SAGREES
WITH HITCHCOCK
SAYS POstoffice Department
Not Self-Supporting
WHAT BOURNE SAYS
Rental Values, Investments and Many
Other Small Items Not Placed in
Statement Showing AL
legged Surplus
By JONATHAN WINFIELD


Postmaster General Hitchcock has been
banding himself verbal boquets in the
form of carefully prepared statements
showing that the postoffice department
under his management, has changed the
usual deficit in the operation of the mails
into a surplus and the service now is
self-sustainirg
But these statements set the Senate
committee on rostoffice and post roads
to figuring, with the result that the COM
n1ittee has Just announced that Post
master General Hitchcocks methods of
accounting are incomplete and that the
department is not self-sustaining by any
means.
In a report filed with the Senate. SEN
ator Bourne of oregon, chairman of tho
committee, insists and the report is proved
by the committee, that the postoffice
department is not making as much money
as 1t costs to operate. The methods of
bookkeeping employed in the department
are found to be faulty and to these de-
fects is attributed the fact that the heads
OF the postoffice department have been
led to believe that the postal service has
become a money-making venture.
Senator Bourne in his report calls at
tention to the fact that for many years
the postoffice department has reported
deficits annually and that recently it has
been claimed to the credit of Postmaster
General Hitchcocks administration that
he has overcome the deficit and now has
a surplus. Senator Bourne adds
I'VE deem 1t apt to call attention to the
fact that all computations which indi-
cate a surplus overlook several important
items which should be Included il. the
financial statement and would be if 1t
We're run as any private enterprise"
1t appears from the report of Senator
Bourne thai the pestoffiee department
statisticlans, in making out the statements
showing a surplus of receipts over expen-
ditures, failed to take into consideration
as items of expenditure such matters as
the rental value of the buildings occupied
by the department throughout the coun-
try, as we'll as the interest on the invest
ment I'm federal buildings.
There are many other little items, Sen
ator Bourne says, that the postmaster
general neglected to charge against his
department and which properly should
ne SO t0hIRtu III IlldkliE up Il
of the financial operations of the depart
ment.
Referring to the matter of federal build
ings the report says that these are under
the control of the treasury department,
which is charged with the expenditures
for their maintenance. The report has
this to say in addition:
These items are properly chargeable
to the postal service and should be taken
tt,tr fdaro ion, in linz Hpar n
cial statement showing the revenues and
expenditures of the postoffice depart
'ment. This is no reflection on the pres
ent administration. but is commentary
on the antiquated and unbusfnessike
methods which have been in vogue for
decades, making II impossible to give a
correct balance
Another feature that does not appear in
the Hitchcock statement of surplus,
Senator Bourne asserts, is the fact that
the government receives especially low
rates for transportation of postal matter
over railroads that received land grants
from the government. He admits that 1t
would be impracticabe to try TO indicate
in an annual report the actual value In
figures of the reduction In rates of trans
portaton in exchange for the land grants
But" he urges "t should not be for
gotten to include this question in con-
clusion as to whether the department be
self-sustaining or not"
Then there also is the item of transpor-
tation of government documents, which
the postmaster generals report has over
looked, says the committee. Many OF
these government documents are carried
free of charge. the report points out, that
some allowance for this business should
be made in making out a statement Of
the financial status of the department
Just as if there had been an actual out
lay of cash for this business.
The committee sums up the report in
this fashion:
"IJnder present methods of accounting
employed by the government satisfac-
tory statement of revenue and expendi-
lures cannot be made.
Ard thus are the proud claims of the
postmaster general dashed to the ground.
and that. too. by committee OF the SEN
ate, which politically, is favorable to the
administration.
The committee. however. offers some
sslve to heal the wounds inflicted on the
postal chiefs dignity by approving his
scheme for a PARCELS post. II is admitted
that the plan of the postmaster general
for a parcels post by zone system does
not promise rates as low as the express
rates recently proposed by the Interstate
Commerce Commission. but the rates are
found to be lower than the present ex-
press rates, and that the committee sug-
gests that the reduced charges as pro-
posed by the Interstate Commerce Com
mission may never be imposed.
Consequently it Is argued that 1t vsull
be better to accept the parcels post plan
and to insure to the shipper of small
packages a reduction of the present
charges on such business. The commit
tee also finds that the postal service Is
much more extensive than that Of the ex
press companies. In that there Is rural
delivery and more extensive city deiv-
cry of postal packages than can be OBJ
tanned from any or all of the express
companies. Consequently, the COMMITTEES
argues that with all elements duly con"
sidered the parcels post charges Will COM
pare favorably with express charges
present or proposed"