The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-02-03
Letter Rate May Be Re,
duced to One Cent
an Ounce.
INCREASE CHARGES
IN SECOND CLA"S
Policy Outlined by Postmaster
General Hitchcock in His An
nual Report - Recommends
Lower Rates on Parcel
Post-Postal Facilities
Greatly Enlarged.

Washington. February 2.-Postmas-
ter-General Hitchcock's annual report.
made public to-day. tentatively sug
gests reduction of some parcel post
rates and increasing the limit of weight
beyond eleven pounds; recommends
civil pensions for postal employees; an
increase in rates on second-c.ass r1S H.
which may pave the way for l-cent
letter postage; the consolidation OF the
third and fourth classes. so books ana
papers may be forwarded by parcei
post: and points out that during his
administration, expense of opera tins
tie postal service has been cu- dowr
SIS, 100000.
In course of a statement on t3e con
dition of postal finances. MY HITCH
cock says In his report: 800.
I'm 1911, for the first time since 1888,
postal receipts exceeded postal eXpen-
ditures, leaving a surplus instead OF
a deficit a heavy loss of revenue In
1912. due 70 the extraordinary amounts
OF franked matter mailed III the po-
iit.cal campaign. created temporiL':
deficit; but since the close OF the MS
cal year the income of the department
again has outstrippeG expenses
The year preceding the present ad-
minisrration was marked by the lara
est postal deficit on record, amount
ing TO $I7.50e. GOO. During the next
two years the deficit was greatly 20
duced and later eliminated When
compared with the financial showing
Of four years ago the reports or IN
come and expense for subsequent years
indicate an aggregate saving OF abe VI
$45. 1000. oc0.
Profitable Line. Developed.
The Transformation of deficit into
a surplus has been accomplished. not
fof g.
veloping IL along profitable lines
While postal facilities have been great
" enlarged. extensions have not been
made in hlphazard manner, but oniy
when shown on investigation 10 De
justified by conditions
The estab lishing. OF postal savings
banks at presidential post-offices was
compile ed early in the fiscal year, end
ed June 90. 19i2-the year covered by
the report Since then the system has
been extended to 1904 fourth class
post -offices as well as to 645 branch
offices and stations. in the larger cities.
There are now 12.s12 postal savings
banks at which patrons may open ac-
counts The number of depositors is
approximately 900. 00o. and the depos-
its aggregate about s2s.00o,ooe, not
including s1.314.140 withdrawn and In
vested in postal savings bonds
On the basis of the present monthly
net increase of deposits, il is estimated
that the gross income of the postal
savings system for the fiscal year end
ing June 80. 1912. will amount to $780,
coo, and the interest payable TO de-
positors to 100000. The income OF
the system for the fiscal yea will meet
the interest payments and the total eA-
penses of the central office. but Will
be approximately S275,0O0 less than
enough to cover the entire expense OF
the service
However. the Postmaster-Gen
report says, 1T is expected that when
the deposits have increased to $4,000
0Oe. which. at the present rate. they
will do soon, the system will be self
sustaining
Parcel Post Not Covered.
The report contains no references to
subjects which have developed since
December I, and. consequently. the
Postmaster Generals consideration OF
the parcel post has to do only with the
preliminary work of establishing the
new system, which went into effect on
January l. Tentatively, however. he
recommends not only that the parcel
post rates be reduced, but that the
weight of packages be increased TO
point above the maximum weight of
eleven pounds. On this subject, the
report says:
while the postage rates for the new
lower than corresponding express
charges. il is believed that experience
will show them to be higher in some
instances than is necessary in order
TO maintain the service at cost Like
wise the restriction that places an
eleven pound limit on the weight OF
parcels mailed should be regarded as
merely tentative. After the system
is thoroughly organized on that basis
the scope OF the service in its use
fuIness TO the public should be still
further enlarged by increasing the
weight limit II properly developed
under efficient management. the parcel
post will prove to be "A most important
factor in reducing the cost OF living.
Perhaps the most important recon-
aendation contained in the report is
that the third and fourth classes OF
mail he consolidated so that books and
CONTINUED on Sixth Pags-)