The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1913-06-01
RECENT SURVEY
REVEALSFACTS
POSTMASTER GENERAL BuRLE-
SON DECLARES FIGURES
- WERE JUGGLED.
llDEF|CIT AND NOT SURPLUS
The Report Declares That "Efficien-
cy and Morale of the Service
Were Sacrificed to Policy of False
Economy" Il

Washington, May POSTMASTER
General Burleson today made public
the report of the special investigation
of fiscal affairs of the postal service,
charging that during Hitchcock's ad-
miniStratiOn as head of the depart
ment, the service did not become self
supporting, as has often been assert
ed, but that in 1911, there was more
than seven hundred and fifty thou
sand dollars deficit.
The report charges that IAN appar-
ent surplus was attained by unjusti-
fable me- hods of bookkeeping; that
the efficiency and morale OF the serv-
ice were sacrificed to ruthlessly en-
forced policy of false economy to
make a self-maintenance showing"
Hitchcock, in his reports, claimed
that in 1909, a $17,50O,OOO deficit had
been eliminated, and that in 1911 a
surplus exceeding 100000 was at
tanned.
In order to ascertain the true cost
of the service, the various administra-
tive officers of the department hav-
ing jurisdiction over the several
branches of the service were called
upon to submit statements showing
the obligations incurred by them for
the service of the fiscal years 1909
to 1912, inclusive, irrespective of the
time when payments of the obliga-
tions were or are to be made. Upon
compilation of these statements it
was found, the postmaster general
states, that the cost of the service
for these years, as compared with the
expenditures reported for those years
by the Hitchcock administration was
as shown.
1t Is pointed out by the committee
that the published financial reports of
the department stated the revenues
and the cost of the service on dissim-
liar, and therefore Incompatible bases
Revenues of the postal service are al
most entirely collected in cash, and
consequently relate properly to the
fiscal year for which the report is
made. But, the committee finds, it
Aloo bCOh lhC ~ dCtlSC W NOupdl
these only with payments actually
made during the fiscal year, regard
less of the obligations incurred in
that year, but not to be paid until sue
ceeding years.
An explanation included among the
papers accompanying the report re-
marks that "It has been sought. to JUS
tify this procedure on the ground that
the overlapping payments approx
mately compensate for all practical
purposes; but when the reported ex-
penditures were subjected to mathe-
matical analysis it was found that the
immense and constantly increasing
volume of postal transactions made
under statements of expenditures pos
sible when the lesser expenditures of
a previous year are included in the
transactions of given year and
part of the greater transactions of
given year go over to succeeding
year,
The present report made at Burle-
sons direction, states that there has
Deen no legitimate surplus in postal
revenues since 1888, and that the de-
partment under Hitchcock was er
a deficit The report charg tat
Hitchcock, just before Presids, IL
son took office, filled long standl..g va
cancies, made promotions and sad
died on the new ADMINISTRATION
greatly increased expense" The fiscal
statement of the service for 1892 pur-
ports to show a deficit of more than
sl.7Oo, p. but inve ytigators say that
the sun is iintieTstated 100000.
/ The report is signed by the four as.
Instant postmasters general, and the
Sief Clerk, Who made the investiga-
N.
NnrAEn ANIArNn KuIEn