New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-05
Hays Checking
SO Million Loss
On Parcel Post
Installing Cost Accounting
System to Show Classes
of Business Which 1t
Does Not Pay to Handle
Present Plan Is Faulty
Joint Congressional Com
mission and Efficiency
Engineers Aid in Work

WASHINGTON. July 4.--Loss to the
government in handling parcel post
shipments, estimated by some experts
70 be as much as $4,000 900 a year-or
roughly equivalent to the extra revenue
provided by three-cent postage instead
Of two during the warts to be gone
into by q thorough cost accounting
system.
With the cooperation OF the Joint
Congressional Postal Commission and
the assistance of efficiency engineers,
Postmaster General Hays is installing
system Of cost accounting which will
give him, it is hoped accurate informa-
ton as to the profit and loss on each
class OF business. Incidentally the new
budget system. it is believed. will be of
great assistance in this work.
At present the auditor Of the Post
Office Department is q Treasury official
and the accounting system has been
shaped on Treasury lines-excellentl
designed for the purpose of checking
each individual employee carefully for
honesty, but not we'll designed to az
fora
wishing to make adjustments and i'm
proveUents.
The need for this sort Of thing has
been demonstrated to the satisfaction
Of the Administration by several in
stances which have been brought TO
its attention. For instance, even
without the system, it is obvious
that the government handles GER
tain shipments in the West at g ter
rife loss. Mining companies have dis
covered that they could effect large saw
ings, n many sections of the West, by
shipping ore by parcel post
Must Accept Business
The department is obliged to accept
whatever business is offered at the
rates laid down, no matter what the
physical difficulties Of hauling bulky
shipments over the mountains on some
Of the Western star routes. Seventy
pounds must be hauled up to $50 miles
TOR "A cents, and taking up to the third
zone the department must haul 10
pounds up to 800 miles for S1.44
1t requires neither complicated
figuring nor vivid imagination to
see how much the government loses
On such ore shipments, nor is there
any particular desire, at a time when
every nerve is being strained for
economy so that taxes may be kept
down, to extend a subsidy to these
mining corporations.
Added t. this is another feature,
which results in the fourth-class post
masters doing everything in their
power TO encourage incoming ship
ments because their compensation is
computed through postal cancellation.
Some of them have boosted their sti-
ponds enormously by inducing con-
Germs in their communities to use the
parcel post on incoming shipments in
stead of private carriers.
Turning from the Rocky Mountain
section to New York there is some
wonder by posto1ice officials as to Just
how the government comes out in tax
ing over g considerable fraction of the
local deliveries of department stores.
This applies also to Chicago, Philadel-
phia and other large cities, though it
is estimated that the government
probably loses more on the operation
N New York than anywhere else, be-
cause Of the physical conditions. Small
packages up to ten pounds may be
moved by parcel post for 10 cents.
The parcel post will handle package
weighing fifty pounds in the local
zone for 30 cents, and a maximum of
seventy pounds for 40 cents.
No great rush will be made on
changes. for it is believed that con-
siderable time will be required to get
the cost accounting system under way.
But certainly, as a result of it, changes
may be expected.
1t may turn out that some of the
items now suspected pay their own
way, but there is confidence that as
soon as all the information Is in and
the changes made that millions of
dollars will be saved the govern
ment, and the parcel post made self
supporting.