, 1923-10-15
To Show With Accuracy

Under its present ADMINISTRATION the postotflce
department will conduct the business OF that
great department on a basis that will show IN
its annual reports something approximating its
actual status. While it will probably never De
possible to make an exact statement OF postal
business, MS it is possible to show an exact
statement of any private business yet the figures
in the future will be as correct as business sys.
tenn and good bookkeeping eau make them
y 1t has been the practice of some administra-
lions to manipulate the payment OF expenses IN
such n way as to show a surplus IN one year
by deferring payment of part OF the bills for that
wear. An outgoing administration, Tor instance,
or an administration approaching a political
campaign, desiring to make the records appear
as favorable as possible, hold up some accounts
for investigation or for minor corrections and
leave these accounts for the succeeding admin
istration or for payment In the succeeding year
of course, it is not practicable for any admin
istration to pay every last cent OF the expense
bills it has incurred. 1t is practicable, however,
to let the deferred payments accrue normally, so
that they will be about the same III amount each
year, or to make an account of expense incurred
SO that the real status of the posal business Will
be known.
The plan as adopted is to show the expend1-
lures and obligations for each year as contrast
ed with the revenues for the same year. That is,
if the department has incurred a dept whlch is
due in a certain year, it is to be charged as a
pnrt of expense even If the amount mas not ae-
tualIy been paid. That is a fair and honest way
of keeping accounts. =
Heretofore it has ben the practice to charge
the expenses of the postoffice department at
Washington-the office of the postmaster gem
eral and his assistants-to the general expenses
of the government, just as the expenses of the
department of labor are charged. The expense
of the department here has not heretofore been
charged as part of the expense of running the
postal system. Yet, in reality, this is a real and
necessary part of the expense of handling mail,
Just as the general corporation offices OF a rail
road are a necessary part of the operation OF the
road. In the fiscal year which ended June 3o,
1923, the overhead expenses were for the first
time charged as a part of the postal service
There is one feature of postal expense which
cannot be exactly stated each year-the rental
value of public buildings owned by the govern
ment and used by the postoffice. In many in
stances the public buildings are occupied joint
ly by the postal service and other branches of
the government. Any apportionment of the rem
tai value to the different services would be but
an approximation as, also, would the estimate of
the total rental value of the building. Federal
buildings are of special design, usually con-
ural beauty instead of usefulness exclusively,
and the cost is often out of proportion to actual
present necessities. 1t would be unfair to charge
the postal service on the basis of cost of the
building and yet an annual statement that does
not take into consideration the rental value of
public buildings is obviously incomplete.
Because of faulty systems of accounting used
in the past, comparisons of ono year with an
other have been OF little real value. With the in.
auguration Of the system now employed, such
comparisons will serve as q basis for determin-
ing actual charges in postal revenues and dis
b~ursements.