Arizona republican., 1913-02-03
Postmaster General Points With Pride to Achieve ment In Postal Depart ment and Makes Some Further Suggestions.
INCREASE SCOPE
 OF PARCEL POST
Tentatively Recommends
 That Rates Be Lessened,
 Limit of Weight Incrcas- ed and Consolidation of Third and Fourth Classes

|
 WASHINGTON, Feb. 2.-Postmas- ter General Hitchcock's annual re- port. made public today. tentatively suggests reduction of some parcel post rates and increasing the limit of weight beyond eleven pounds, re comments civil pensions for posta employees. an increase in rates on second class mail which may pave the way for one cent letter postage.
 the consolidation of the third and
 fourth classes so books and pare may be forwarded by Parcel Posr. and points out that during his ad- miristration. expense of operating the postal service has been cut down S45, 5,0oo O00
 In course Of st statement on tn" condition of postal finances, Nir. Hitchcock says in his report: Tn 1911. for the first time since 1883. postal receipts exceeded postal expenditures, leaving a surplus in stead of a deficit A heavy loss of revenue in 1912 due to the eNtrdord mary amount of franked matter mailed in the political campaign. created d temporary deficit. but since the close of the fiscal year | the income of the department again | outstripped expenses.
 i The year preceding the present
 atiministrtion was marked by the largest postal deficit on record | amounting to $17,5eO, ,O00 During the next two years the deficit was great | ly reduced and later eliminated. | When compared with the financia 1 showing of four years ago the re ports of income and expense fol 1 subsequent years indicated an asgre- gate saving of about $45.OO0.OOO. 1 The transformation of a deficit l into a surpus has been accomplished
 not by curtailing the service. but by ! developing it along profitable lines. While postal facilities have been greatly enlarged, extensions have moi | been made in a haphazard manner. but only when shown on investi- gation to be justified by conditions"
 The establishing of postal saving l banks at presidential postoffices was
 completed early in the fiscal year, ! ended June go, 1912-the year GOV ! system has been extended to 4.0ei 1 fourth class postoffices, as well as to 645 branch offices and stations in the l larger cities. There are now 12,812 1 postal savings banks at which pa 1 irons may open accounts. The num- Der of depositors is approximately 300, 900 and the deposits aggregate l about $2S.000.00O, not including ST. 1 31414d withdrawn and invested in | postal savings bonds.
 1 On the basis of the present l monthly net increase of deposits it
 is estimated that the gross income | of the postal savings system for the | fiscal year ending June 30, 1912. will amount to $700O00 aind the interest payable to depositors to $300.O00. The l income of the system for the fiscal year will the meet the interest pay ments and the total expenses of the 1 central office. but will be approXi mately S275.000 less than enough t0 cover the entire expense of the l service.
 | However. the postmaster general <
 report says It is expected that l when the deposits have increased t" l $50. .00O,O00 which at the present rate
 they will do soon. the system will be self sustaining
 The report contains no references to subjects which have developed since. December I, and. consequently the postmaster generals considera ? tion 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 recon
 mends not only thatthe parcel post rates be reduced. but that the weight packages be increased to a point
 above the maXilnun weight of II hounds on this subject the report says
 While the postage rates for the new parcel post system range con siderably lower than corresponding
 express charges, it is believed that | experience will show them to be higher in some instnces than is ne cesarv in order to maintain the
 service at cost. Likewise. the re-
 striction. that places an Ii pound
 limit on the weight of parcels mail
 ed should be regarded as merely
 tentative after the system is thor
 o,Ig-hly organized on that basis the
 scope of the service in it's useful
 ness to the public should be still
 further enlarged by increasing the
 weight limit. If properly developed,
 under efficient management, the par (Continued on Page 8