Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-31
POSTMASTER GENERAL
PUBLISHES STATEMENT
SEQUEL to Committees Probe of
Hitchcock's Claim of Balance in
Lieu of Big Deficit.


The statement is based on report Of
a committee of post official officials. who
made a detailed investigation Of former
Postmaster General Hitchcock's 5 claim
that deficiency of approximately $17.-
5Go,GaO in 1909 had been entirely eliminat-
ed, and that a surplus of Sauto was
attained for the year 1911
The report is signed by Daniel &. Roper
Joseph Stewart. A. NJ. Dockery, James |.
Blakslee and Merritt o. Chance. respec-
lively, first. second, third and fourth as
sistant postmasters general and chief
clerk OF the department
An apparent surplus. the statement
says, was attained by unjustifiable meth
ols of bookkeeping.
Policy of False Economy.
1t is also stated that the general morale
and efficiency of the postal service were
sacrificed to ruthlessly enforced policy
of false economy for the sole purpose Of
presenting a showing OF self-maintenance
and after the attainment of this end
just before the inauguration of the new
administration, the policy was reversed
Long-standing vacancies were filled and
postponed promotions made: commit
ments to fixed charges for long terms
We're assumed in such a way as to sad
die the new administration with the
greatly increased expense during months,
if not years, to come.
The reports of the survey are de-
clared to show that at no time has there
been legitimate surplus in the postal
revenues since the fiscal year 1888, and
that instead of a surplus of approximate
Iy S219,OOO in 1911, there was, in fact, an
actual deficiency of considerably more
than three-quarters Of million dollars.
In order to ascertain the true cost OF
the service. the various administrative
officers of the department having juris-
diction over the several branches of the
service were called upon to submit state
ments showing the obligations incurred
by them for the service of the fiscal years
1909 to 1912, inclusive. irrespective of the
time when payments of the obligations
were or are to be made.
Discrepancies Shown.
Upon compilation Of these statements it
was found. the Postmaster General
states, that the cost of the service for
these years, as compared with the ex-
penditures reported for those years by
the Hitchcock administration, was as fol-
lows:
Expenditures Cost of the
shown in pub service as de-
Fiscal lished annual ternined by Di>crep-
year. reports Of de- present in ancy
1909 s2!l oaa lo2 50 s22l 2ss s24 q s2s4 se1 80
1910. 2299172 224.50 go 231 .041.90 259 S23 40
lsl s1a sas sS ss 90 sic$ g
II is pointed out by the committee that
the published financial reports of the de-
partment stated the revenues and the cost
of the service on dissimilar, and there
fore Incompatible bases Revenues of the
postal service are almost entirely COL
loot tn1 In, nnS-I nv,1 1nHr
properly to the fiscal year for which
the report is made. But. the committee
finds, it has been the practice to COM
pare these only with payments actually
made during the fiscal year, regardless of
obligations incurred in that year, but not
to be paid until succeeding years.
Attempt to Justify Procedure.
An explanation included among the
papers accompanying the committees re-
port remarks that 1T has been sought to
justify this procedure on the ground that
the overlapping payments approximately
compensate for all practical purposes: but
when the reported expenditures We're sub
jected to mathematical analysis ii was
found that the immense ana constantly
increasing volume of postal transactions
made under statements of expenditures
possible when the lesser transactions of
a previous year are included in the trans
actions of a given year and a part of the
greater transactions OF given year go
ever to a succeeding year
This matter is held to have a very
direct bearing upon the alleged course
of the former administration i'm holding
back all manner of commitments for the
future: filling the vacancies and promo
tions, extension of city delivery and rural
free delivery routes and star routes, until
the very close of the las administration.
SO as to keep expenses to the minimum
and then filling every available position,
by appointment and transfer, making
long-term contracts. authorizing large
number of free delivery and star routes,
and otherwise saddling the department
with fixed charges which would not affect
the reported expenditures for the current
year but would immensely magnify those
of the first year of the new administra
tion.
The all-absorbing program of the last
| administration was the placing of the
Post Office Department on paying
basis, says the report THE policies
plan were overworked and resulted in de-
| fective administration and just criticism
on the part of the public.
Facilities Not the Best.
That efficiency and economy should be
! substituted for wastefulness and ex-
| travasance needs no argument but the
postal service affects so vitally the inter
ests of the entire population of the coun-
try that economy which means a curtail-
ment of postal facilities operates as a
check to the social and industrial progress
of the country The people are entitled
! to the best facilities administered in the
most efficient manner That the facilities
4 furnished during the last four years were
not the best is clearly established by tn,
/ facts
1t appears that the departments prac-
/ tice has been to base its statements oil
! the cost of the service upon payments
! made during the year. as shown by the
accounts settled by the auditor for the
Post Office Department. irrespective OF
the years in which obligations were In
Cured In this connection the report
| says.
/ Notwithstanding the great zeal dis
| played in the effort to place the depart
ment on the so-caled paving basis. and
the resultant injuries To the service, the
claim of the former Postmaster Genera
that the service actually yielded a prof
in 1911 has no foundation in fact, as is
! shown herein.