The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1913-02-03
HITCHCOCK REPORT
IS INTERESTING
POSTMASTER GENERAL RECON-.
MENDs LOWERING OF RATES
IN THE PARCEL POST.


Washington. Feb. 2.-Postmaster
Hitchcock's annual report,
public today, tentatively sug-
reduction of some parcel post
and increasing the limit of
weight beyond IL pounds; recommends
,ivil pensions for postal employees: an
Increase in rates on second-class mai
which may pave the way for one-cent
letter postage; the consolidation of
the third and fourth classes so books
and papers may be forwarded by par
eel post; and points out hat during
his administration, expense of operat-
ing the postal service has been cut
down $45, 900. 900.
In course of a statement on the con-
dition of postal finances, Mr.. Hitch
cock says in his report:
In 1911, for the first time since
1883, postal receipts exceeded postal
leaving a surplus instead
of a deficit. A heavy loss OF revenue
amount of ranked matter mailed in the
polltlCal campaign, ltateu Il ttlIllo-
rary deficit; but since the close of the
fiscal year the income of the depart
ment again has outstriped expenses.
The year preceding the present ad-
ministration was marked by the larg-
est postal deficit on record. amounting
to SIT, 500, 900. During the next two
years the deficit was greatly reduced
and later eliminated. When compared
with the financial showing of four
years ago the reports of income and
expense for subsequent years indicate
an aggregate saving of about $45.-
600, 900.
The transformation of a deficit into
a surplus has been accomplished not
by %curtailing the service, but by de-
veloping it along profitable lines.
While postal facilities ave been
greatly enlarged, extensions have not
been made in a haphazard manner,
but only when shown on investigation
to be justified by conditions
Postal Banks.
The establishing of postal savings
banks at presidential postoffices was
completed early in the fiscal year,
ended Tune 80, 1912-the year covered
by the report. Since then the system
has been extended to 4.004 fourth class
Ices 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 300, 600 and the deposit.
aggregate about $2S, 900, 900, not in.
! Guiding $1,314,l40 withdrawn and in.
vested in postal savings bonds.
On the basis of the present MONTH.
net increase OF deposits it Is estimat,
ed that the gross income of the posta
savings system for the fiscal yea
ending June 80, 1912, will amount t.
100000 and the interest payable t
depositors to $500, 900. The income o
the system for the fiscal year vii
total expenses of the central office, bu
will be approximately s275,000o les
thai enough to cover the entire eX
pense of the service.
However, the postmaster general
report says. lit is expected that whe1
the deposits have increased to $50,
100000, which at the present rate the.
will do soon, the system viii be self
sustaining
Parcel Post.
The report contains no reference
to subjects which have developed sine
December /, and. consequently, tn
postmaster generals consideration o
the parcel post has to do only wit
the preliminary work "of establishin
the new system. which went into eff
feet on January l." entatively, how
ever, he recommends not only that tn
parcel post rates be reduced. but tina
the weight Of packages be increase
to a point above the maximum
weight Of II pounds. on this sub
ject the report says:
f while the postage rates for tn
new parcel post system range consid
j. erably lower thar corresponding eX
, press charges, it Is believed that expo
rience will show them to be higher /
: some instances than il necessary !
; order to maintain the service at cos
!, Likewise, the restriction, that place
J an 11-pound limit on the weight
. parcels mailed should be regarded 6
9 merely tentative. After the system
O thoroughly organized on that basis II
8 scope of the service In it's usefulne!
0 to the public should be still furth'
enlarged by increasing the weigl
limit. If properly developed under g
!, ficient management, the parcel pc
h will prove to be a most important fa'
e tor in reducing the cost of living"
Perhaps the most important recon
: mendation contained in the report
that the third and fourth classes
- mail be consolidated so that books al
o other printed matter may be forward
= ed by parcel post. At present Il
postage charges for these two class
of mail Dear no fixed ratio to ea'
e other. For certain weights and 2on
the parcel post rates are lower tn;
n the third-class rates. while in 9th
It cases they are higher.
This condition." 1t Is pointed o
in the report, us likely to result
much confusion and should not ext
Packages containing books or cat