The New York herald., 1921-12-09
HAYSTFOR SERVICE
FIRST in us. MAILS
Would Meet Increased Def
icits by Readjusting
Postage Rates.
NEED NOT RUN AT LOSS
Pension for Long Time En-
plOyees and Better Sala-
ries Recommended.
SEVERAL CHANGES URGED
Postmaster General Reviews
Work of Department in Re-
port-Savings Drop.
SEVERAL CHANGES URGED

WASHINGTON, Dec. S.-Pointing to
continuing deficits in his department
Postmaster-General Hays, in his first
annual report to the President, made
public to-day, declares that 'if the
present gauge OF expenditures shall
continue there should be such re-
adjustment of postage rates as will
together with the effects of increasing
volume of business. produce sufficient
revenue approximately to meet it,"
Mr. Hays makes no specific recon-
nendations as to the suggested adj
Justments, and declares emphatically
that "if 1t were question between the
best practical service on the one hand
and q poorer service with revenue
meeting cost on the other hand de-
cision should be resolved in favor OF
rendering the service" He adds that
the department should not be con-
Quoted for profit, but that it need not
ultimately be run at loss.
Revenues of the postal service for the
fiscal year ended last June, Mr. Hays
savs totaITed s463, ,491. .274 an increase of
s. .-.l.062 over the receipts Of the pre-
ceding fiscal year. Balanced against
s93.673, with the total audited deficiency
at s157517,6 ,6SS.
How Deficiency Increased.
The material increase in the deficiency
over that for 1920. Mr.. Hays states, is
due to large increases of expenditures
in two principal items without any cor
responding increase in the revenues.
The two principal items are SIG, ,S01
for increased compensation to railroads
on the basis of an order of the Inter-
state Commerce Commission. retroac-
tive to November /, 1916, and 81 ,S55 900
for added compensation allowed postal
employees by Congress
Approving this added compensation.
the Postmaster-G General tells the Presi-
dent that "the salaries provided by law
for those in the department are too low
to compensate those who continue in
the service or to attract and hold others
of the ability required in the conduct of
such an institution Pointing to the
inconsistencies in the salaries of en-
ployees in the department proper and
those who serve in the field, Mr.. Hays
says they emphasize tne Importance
and necessity Of immediate legislation
to readjust the departmental salaries
throughout"
The Postmaster General also recon-
mends legislation providing for the
changing of the name of the depart
ment to the Department of Communica-
tions and to authorize him to:
Collect a fee where directory SER
vice is given in post offices to mail
insufficiently or improperly ad-
dressed.
Fix a charge for a return receipt
for registered articles.
To restrict. within his discretion.
the application of the special deliv-
cry service to first class mail mat
ter.
To dispense with the surety bonds
now required of officers and en-
ployees accountable for funds or
property and to substitute therefor
guaranty fund established and
maintained by assessments against
such officers and employees.
To provide for the payment by the
advertisers of postage on replies to
advertising matter.