Evening star., 1924-12-17
CHARGE MAIL COST
FINDING IS WRONG
Publishers Say Postal Ex-
perts Make Improper
AlIocationS.

Incorrect ALLEGATION Of costs to sec
ond-class mail by Post once Depart
ment experts who prepared the cost
ascertainment report on handling OF
the mails is charged in a letter trans
mitted to Senator Dale of Vermont,
member of the Senate post office
committee, by the American News
paper Publishers Association. The
letter asserts that total of Ss2,-
S5756598 was allocated to second
class mail. which II Is claimed. ex-
ceeds by s7.794.6s7 the deficit charged
to that class of postage.
The letter sent through Elisha
Hanson, the associations Washington
representative, stated that the total
sum credited TO the cost OF handling
second class matter was arrived at
after improperly charging $29,125,-
097.11 for rural free delivery service;
$20,112,153 incident TO the country
free circulation privilege; 1851. 1858
for distributing favored rate" pub
lications and $1S,31S.457.87 for over
head in the handling of county free
and favored rate" publications.
Charge Overhead Ia Wrong.
The method of aIlocating overhead
charges to the paying users of second
class mail also was attacked IN the
letter. the rate of 1895 per cent be-
ing described as far out of proportion
not only to receipts from this class.
but to service rendered.
"If the department seriously de-
sires to increase Its revenues from
sornrd- class mail" the letter said.
"the proper method for il to follow
would ne to reduce existing rates TO
a point which would make 1t profit
able for those users of the second
class mail who have withdrawn their
publications from the mail, again to
avail themselves Of the mailing
privilege. This would enable the de-
partnrent fully to utilize the present
city post Office. clerical and delivery
service without increasing It's ex-
pense.
Would Drive DaiIIes From Mail.
IF. on the other hand" II continued
Congress should adopt the sugges-
tion Of the department for 100 per
cent increase in the first and second
zones such an increase would drive all
daily newspapers from the mails and the
department would be confronted with a
situation where II would be compelled to
maintain its present overhead, in
cluding the rural free delivery serv-
ice, and suffer a loss of between $50,
100000 and $50. 100000 In revenues"
Declaring the cost ascertainment
quired more than two years for COM
pletion, and is not yet available for
consideration either by the Senate
which has had 1t 10 days; a commit
tee of that body, the publishers or
the public, the letter asked that no
action be taken on the Sterling bill
proposing increased rates based on
the experts findings until the pub
fishers of the country are given full
nnnnTfnnffN n NyfA
1t asserted that only one section of
the report had been submitted to the
publishers up to this time, but that
this contained such absurdities in
accounting and the ALLEGATION of
costs that the American Newspaper
Publishers Association desires to call
your attention TO certain of these alb
Burdities." -s-
Proof OF Cententions. -s
To prove It's contention that the
Government profits instead of loses
on second-class mail, 1t was asserted
that Congress, In creating the rural
free delivery service took cognizance
of the fact tlfa2 this service repre-
sented expenditure and not income"
Had the department spread the
rural delivery cost over the general
postal service, apportioning to each
class its proper percentage, the letter
stated, 1t would have found the prop
er" charge to users OF second class
mail would have been only s per cent
instead of sc per cent OF the rural
free delivery cost or $3.50. 900 in
stead Of $34,375.0s7.11.
Regarding the departmental policy
of permitting free distribution Of
small weekly newspapers in the coun-
ties in which they are published, cal
culations placing the deficit from this
service at $40, 1878 annually were
cited. with a declaration that the
Postmaster General IN his letter to
Chairman Sterling oftthe Senate post
Office committee ignores this alleged
deficit, but in other communications
has insisted the county-free service
should be maintained"
Charges Misstated.
with this policy The publishers of
daily newspapers agree in FULL" the
letter asserted, but they most en-
phatically disapprove of his effort to
charge this special service cost to
their account, as he has done"
To add an additional overhead cost of
more than $lS,o0o,00o against news
paper publishers for allowing scien-
Jttic, agricultural. religious and fra
Jernal publications favored" rates
and for handling county-free publi-
cations. il was held, is not only i'm
proper and unfair" but entirely un-
just" since the ALLEGATION of such
overhead, added to the other costs
enumerated, brings the total i'm
properly assessed second-class mail
10 $S2,5055s5.9S," an amount in ex-
cess of the Departments reported
deficit.