The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-02-03
PAYING ITS WAY
Postal Service Produces Reye-
nue. Exceeding the Expenses.
General Hitchcock Makes Pub
lie His Annual Report.

Washington. Feb. 3.-Postmaster
General Hitchcock's annual repof i
tentatively suggests reduction OF souAe
parcel post rates and increasing liz
limit OF weight beyond eleven pouhuS
recommends civil pensions for postai
emnIovaes. an increase in rates on
second class mail which may pave the
way for one-cent letter postage; the
consolidation of the third ana Iourlh
classes, SO books and papers may ue
forwarded by parcel post; anu polIe9
out that during his administration, eX-
pense of operating the postal service
has been cut down $4o,00O.0OO.
In course of a statement on the con-
dition of postal finances, Mr.. Hltch-
cock says in his report;
In 1911, for the first time since 1856
postal receipts exceeded postal expen-
ditures, leaving a surplus instead OF a
deficit. A heavy sloss of revenue III
1912 due to the extraordinary amount
of franked matter mailed in the politl-
cal campaign, created a temporary
deficit: but since the close of the fiscal
year the income of the department
again has outstripped expenses.
1.-The year preceding the present ad-
ministration was marked by the larg-
est postal deficit on record, amounting
to Sl750O,000 During the next Two
years the deficit was greatly reduced
and later eliminated. When compared
with the financial showing OF four
wears ago the reports of income ana
expense for subsequent years indicate
an aggregate saving of about $45,OOO-
000
..The transformation of a deficit into
a surplus has been accomplished, not
by curtailing the service, but by de-
yeloping it along profitable lines. While
postal facilities have been greatly en-
Iarged, extensions have not been made
in a haphazard manner, but only when
shown on investigation to be justified
by conditions.
Postal Savings Banks.
The establishing of postal savings
banks at presidential postoftices was
completed early in the fiscal year,
ended June 80, 1912-the year covered
by the report. Since then the system
has been extended to 1904 fourth class
postoffices, as well as to GAS branch
offices and stations in the larger cities.
There are now 12S12 postal savings
banks at which patrons may open ac-
counts The number of depositors is
approximately 100000 and the deposits
aggregate about $29, 100000, not includ-
ing $1.314, 140 withdrawn and invested
in postal savings bonds.
On the basis of the present monthly
net increase of deposits it is estimated
that the gross income of the posta
savings system for the fiscal year
500, 600 and the interest payable to de-
positors to 100000. The income of the
system for the fiscal year will meet
the interest payments and the total eX-
penses of the central office, but will
be approximately $275,000 less than
enough to cover the entire expense of
the service.
However, the postmaster generals
report says, 1T is expected that when
the deposits have increased to $780,
600, 900, which at the present rate they
will do soon, the system will be self
sustaining
During the fiscal year 1912 more than
SOC, OOO, 900 pieces of mail, having an
aggregate weight of about 81, 900, 900
pounds, were carried free through the
mails under the franks of congressman
and of various government establish
ments. Had postage at the ordinary
rates been paid on this matter the rev.
enues of the department would have
been increased by more than $200000Ot
Postmaster General Hitchcock declares