Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1925-12-07
POSTAL AFFAIRS
GEN, NEWS REPORT
Deficit, Salaries

Washington, Dec. (AP)-Gcneral
economies and increased efficiency
were reported today by Postmaster
General New as having marked the
years operations of the nations
largest single business enterprise. the
postal service, but there was large
deficit, due principally, he said, TO
salary increases.
Sending his annual accounting to
President Coolidge, the Postmaster
General placed the operating deficit
as $49,453,090 for the fiscal year of
1925, compared with S24,362. 491 for
the previous year. Responsibility
for this deficit he laid on Congress
for failure TO heed the Post once
Department. recommendations for
rate increases which would meet the
salary raises.
The present increased postage
rates voted by Congress, Mr.. New
said. have netted less than half the
total of the salary increases. n
special Congressional Joint Sub
commit sc is az work on recommend
atoms for permanent postage rates.
The Postmaster General made a
number of recommendations Tor
legislation. including provisions Tor
higher retirement annuities for post
al employees, for group insurance
and for relieving the President OF
the duty of appointing third class
postmasters. He would reduce the
rate on newspapers and periodicals
mailed by the general public and eX-
clude firearms from the mails.
Steadily increasing efficiency and
tn,
been shown since 1921, the POST
master General said. The growth of
the service as shown by postal
revenues was ass percent over the
previo Is year while in 1924 the in
crease was 1853 percent. Total
revenues we're S599, 591,477, or $26.-
ca, 500 mere than in 1924. Expend-
.itures together with undischarged
liabilities. amounted to s649,044,567.
The Humble Postage Stamp
The humble postage stamp ac-
counted for the largest portion of the
revenues. Each person in the coun-
try spent on an average S4.69 for
postage during the year and the
total thus received WAS $537, 50l ,34O,-
90. or 1854 percent of the total
postal revenues.
Salary increases voted by Congress
and made retroactive for the last six
months of the fiscal year required
payment of $32,2976 $50 over the
previous regular salaries. 1t was
estimated S70,S60,133 would be re-
quired for the fiscal year of 1926 to
pay the increases. The probable in
crease in revenues on account of the
new postage rates was placed at $780,
100000 for the. fiscal year of 1926.
Retired government employees are
being paid annuities entirely too
small to meet the requirements OF
ordinary living conditions, Mr.. New
said in recommending that the maxi
mum of $720 be increased, Modifi
cation of the law would be justified
by every consideration of humanity
and justice, he declared. and would
result in ultimate economy to the
government.
AS to group insurance he asked
for permisSive legislation allowing
him to contract for such insurance TO
the extent the employees desired TO
participate, and without any APP
preparation by the government for
payment,
In recommending that the detail OF
making of appointments and signing
of commissions of third class post
masters be taken off the hands of the
President. the Postmaster General
recommended legislation transferring
the appointiyc authority to himself
as is now the case with fourth class
postmasters. Postmasters of the first
and second classes, numbering about
1000, still would be appointed by the
President.
Recommendation
Owing to the necessity for check
ing each piece of air mail handled
in the contract air mail service. a
recommendation was made that the
law be amended SO payment to con-
tractors might be made on fixed
rates Per pound instead of so per-
cent of the excess postage under the
present law.
The present postage rate on news
papers and periodicals mailed by the
general public is excessive, the re-
port said, and as a result there has
been a great falling off in mailings of
this character. A rate OF one cent
Tor each two ounces was urged.
Other recommendation include:
To authorize the charging of fee