The Mena weekly star., 1913-02-06
REDUCTION OF THE
 PARCEL POST RATES
Postmaster General Suggests Lower Rates and Increasing Limit of Weight Beyond fl Pounds
 Receipts Exceed Expenses.

suggests reduction of some percel post rates and increasing the limit of weight beyond fl pounds; rec Ommends civil pensions for postal employees; an increase in rates on second-cass mail matter which may pave the way for 1 cent letter postage; the consolidation of the third and fourth classes so books and papers may be forwarded by parcel post, and points out that dur ing his administration expense Of operating the postal service has been cut down S45,000,0O0.
 In course of statement on the condition of postal finances, MT. Hitchcock says. in his report:
 Tn 1911, for the first time since 1883, postal receipts exceeded pos tai expenditures, leaving a surplus instead of a deficit A heavy loss of revenue in 1912 due to the eX- traordinary amount of franked mat ter mailed in the political campaign, created a temporary deficit; but since the close of the fiscal year the income of the department again has outstripped eXpeness.
 'The year preceding the present administration was marked by the largest postal deficit on record, amounting to $l7,500000. During the next two years the deficit was greatly reduced and later eliminat- ed. When compared with the finan- cial showing of four years ago the reports of income and expense for subsequent years indicate an az gregate saving of about S4500O,0OO.
 "The transformation of deficit into a surplus has been accomplish ed not by curtailing the service, but by developing it along profitable lines. While postal facilities have been greatly enlarged, extensions have not been made in a haphazard manner, but. only when shown on investigation to be justified by con- dition."
 The establishment of postal sav- ings banks at presidential postof- fees was completed early in the fiscal year, ending June 30, 1912 the year covered by the report. Since then the system has been eX- tended to 4O0l fourth class post offices and stations in the larger cities. There are now 12,8i2 postal savings banks at which patrons may open accounts. The number of de- positors is approximately 300000 and the deposits aggregate about S2S. 100000, not including Si,3i4,iH withdrawn and invested in postal saving bonds.
 On the basis of the present monthly net increase of deposits 1t is estimated that the gross income of the postal savings system for the fiscal year ending June 30, 1912, will amount to S700.000 and the interest payable to depositOrs to S300,000. The income of the system for the fiscal year will meet the interest payments and the total expenses of the central office, but will be ap- proximately $275,OOO less than enough to cover the entire expense of the service.
 However, the postmaster generals report says: Tt is expected that when the deposits have increased 10 S50O00000. which at the present rate they will do soon. the system will be self-sustaining.
 On parcel post 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 main tain the service at cost. Likewise, the restriction that places an H. pound limit on the weight of parcels mailed should be regarded as mere ly tentative. After the system is thoroughly organized on that basis the scope of the service in it's use- fulness to the public should be still further enlarged by increasing the weight limit If properly developed under efficient management, the parcel post will prove to be a most important factor in reducing the cost of living"
 Perhaps the most important rec Ommendation contained in the re- port is that the third and fourth classes of mail be consolidated so that books and other printed mat ter may be forwarded by parcel post. At present the postage charg- es for these two classes of mail bear no fixed ratio to each other.
 This condition" it is pointed out in the report, lis likely to result in much confusion and should not eX- ist. Packages containing books or catalogues do not differ in any es- sential particular from other par cels and they should be handled by parcel post. Prior to the enactment of the parcel post law the depart ment urged that these two classes of mail be consolidated, and the recommendation of such action is now renewed"
 The report directs attention to the approval of the commission headed by Associate Justice Hughes of the United States Supreme court of the postoiflce departments rec- ommendation that the postage rate on second class mail be increased from 1 cent to cents per pound In the opinion of the postmaster general favorable action by con- gress on the report of the commis- sion would be a step towards tho proper adjustment of posta charges.
 Dnrino fha fsral vaar tOIo nor,