The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1913-02-03
FAvORS PENNY LETTER POSTAGE
Recommends an Increase in Sec
Ond Class Mail Rates
HAS CUT EXPENSES $45,OOO,OOO

General Hitchcock's annual report,
made Lublic today, tentatively sug-
gests reduction of some parcel post
rates and increasing the limit of
weight beyond eleven pounds; rec
ommcnds civil pensions for postal
employees; an increase in rates OF sec
ond class mail which may pave the
consolidation of the third and fourth
classes so books ANA papers may be
by parcel post; and points
out that during his administration.
expense of operating the postal scrv-
ice has been cut down $i5,OOO,OOO.
Has Wiped Out Deficit.
In course of statement on the
condition of postal finances, Mr., Hitch
cock says in his report:
In 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 extra.
ordinary amount of franked matter
mailed in the political campaign, Gre
ated 4 temporary deficit, but since
the close of the fiscal year, the in
come of the department again has
outstrippcd expenses.
"The year preceding the present ad-
was marked 10y the larg-
est postal deficit on record amounting
to $115U0,0OO. During the next two
years the deficit was greatly reduced
and later eliminated. When compar
ed with the financial showing of four
years ago the reports of income and
expense for subsequent years Indicate
an aggregate saving of about $4,000,
900.
Service Not Curtailed.
"Thc transformation of a deficit in
to a surplus has been accomplished
not by curtailing the service, but by
Geyclo9ng it along profitable lines.
While postal facilities have been
greatly enlarged. extensions have not
leen made in haphazard manner,
but only when shown on investiga-
ton to be Justified by conditions"
The establishing of postal savings
banks at presidential postofices was
completed early in the fiscal year.
ended June 80, 1912-the year COW
cred by the report. Since then the
system has been extended To 1904
fourth -class postofiiccs, as well as TO
CAS- branch Offices and stations in the
larger cities. There are now 12,s12
postal savings banks at which pa
irons may open accounts. The num-
Der of depositors is approximately
800 600 and the deposits aggregate
about s2S,0O0.0 .0OO, not including $1,314.-
tiO withdrawn ana invested in postal
savings bonds.
System Not Yet Profitable.
ON the basis of the present month
~ net increase of deposits IL Is csti-
mated that the gross income of the
Postal Savings system for the fiscal
year ending June 30. 1872, will amount
to 100000 and the interest payable
to depositors to 100000. The income
of the system for the fiscal year will
meet the interest payments and tht
total expenses of the central office, but
will be approximately $275,000 less
than enough TO cover the entire ex-
pense of the service. However. the
postmaster generals rcport says, "it
Is expected that when the deposits
have increased to $4,000. which at
the present rate they will do soon, the
system will he self sustaining"
The report contains no references
30 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 eff
feet on January T., Tentatively, how
ever. he recommends not only that the
parcel post rates bc reduced, but that
the weight of packages be increased
10 q point above the maximum weight
of eleven pounds ON this subject the
report says;
The Parcel Post.
while the postage rates for the new
parcel post system range consider
ably lower than corresponding ex-
press charges. II Is believed that ex-
perience viii show them to be higher
in some instances than is necessary
In order TO maintain the service at
cost. Likewise. the restriction that
places an ii-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 usefulness to the public should