New-York tribune., 1921-12-09
Hays Asks New
Rates ON Mail
To Stop Deficit
REIMBURSEMENT to Increase
Both Volume of Busi-
ness and Revenue Dis
cussed i'll His Report
Marines To BE Replaced
Postoffice Department Re-
cruiting Its Own Force
to Take Over Guard DUTY

WASHINGTON, Dec. S.~Pointinr to
continuing deficits in his department,
Postmaster General Hays, in his an
nual report to the President made
public to-day, declares that "if the
present gauge Of expenditures shall
continue there should be such a re-
adjustment of postage rates as will,
together with @the effects of increas-
ing volume of business, produce suffi-
cient revenue approximately to meet
it,"
Mr.. Hays makes no specific recon-
mendations as to the suggested adjust
ments, and declares cmphatically that
"if it were a question between the
best practical service on the one hand
and a 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 says, totalled SAGE, ,491 ,274, an in
crease of $26,341 ,O62 over the receipts
of the preceding fiscal year. Balanced
against this were audited expenditures
of $620,993,673, with the total audited
deficiency at s157,517,6SS.
The material increase in IKE def
cheney over that for 1920, Mr.. Hays
states, is due to large increases of
expenditures in two principal items
without any corresponding increase in
the revenues. The two principal
items are s76,13o,3o1 for increased
compensation to railroads on the
basis of an ordar of the Interstate
Commerce Commission retroactive to
November /, 1916, and Sal ,S55 900 for
added compensation allowed postal en-
ployees by Congress.
Expenditures Forced Up
Approving this added compensation.
the Postmaster General tells the Presi-
dent that "the salaries provided by
law for those in the department are
too low to compensate those who CON
tinue 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 employees in the depart
ment proper and those who serve in
the field, Mr.. Hays says they "empha-
size the 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 to the Depart
ment OF Communications and to au-
thorize him to:
Collect Zee where directory service
is given in postoffices to mail INSULT
ciently or improperly addressed.
Fix charge for return receipt for
registered articles.
To restrict, within his discretion, the
application of the special delivery serv-
ice to first-class mail matter.
To dispense with the surety bonds
now required of officers and employees
accountable for funds or property and
to substitute therefor a guaranty fund
established and maintained by assess
ments against such officers and en-
ployees
To provide for the payment by the
advertisers of postage on replies to ad-
vertising matter
Postoffice List Grows
Mr.. Hays also recommends service
pensions for those who have been in
the ser : more than thirty years and
that Sundays and holidays be excluded
from sick-leave granted employees OF
the department and service.
Discussing briefly the detailing of
marines to guard valuable mails in.
transit against "hold-up men," the
Postmaster General informs the Presi-
dent that there is being recruited from
the department itself to take the place
of the marines an armed guard as
permanent branch of the postal service
At the end of the fiscal year, Mr..
Hays reports, there was a total Of 52,-
1873 postoffices, an increase of 2,522
First-class Offices numbered 799, an in
crease of 90; second class numbered
2,779, an increase of 1854; third-class,
10,4S0, an increase of 2,259, and fourth
class Offices totalled 39,110 The aver
age salaries of clerks were increased
from $l.536 to SLIT and OF carriers
from S ,o31 TO S1,697