Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-03
DEFICIT IN POSTAL
. SERVICE IS LARGER
Loss of se5, 461,176 Report
ed, Against $32,121,095
for Preceding Year.
81 the Associated Press.

! BY the Associated Press.
How the romantic duties of the pony
| express have finally devolved upon the
| airp1ane was set forth in cold figures
today by Postmaster General Brown in
reporting to President Hoover that al
most eleven and quarter. million dol
lars was expended last year in sending
mail by air over nearly ten and a
| quarter million flying miles.
But the deficit which has ridden the
back of the Post ONCE Department fol
decades also touched this new method
| of transporting a share of the postal
load. Congress had appropriated $12,-
430, 1000 for hiring private lines to do
! the work which was begun several years
! ago by the Government. The expendi-
ture was 11,207, 957.07, and the mileage
was 10,212,511 up to June 80 last.
Nevertheless, it was estimated that the
| cost of the service was 100000 more
than the postage revenue.
Has Conservative Policy.
Postmaster General Brown said the
demands for new routes were far above
the annual appropriations. but that the
department had followed a conservative
but progressive policy with regard to
this service. He informed the President
that, while the expenditures for the air.
mail were above the estimated revenues,
steps were being taken to adjust equi-
tably the rates paid airmail contractors
to square with existing legislation on
the subject.
The department, on the whole, was
far from making both ends meet for
the year. In fact, the burden of deficit
grew noticeably heavier, the outgo ex-
ceeding the income by $35, 46l 49, "a.
For the previous year the unfavorable
balance was $50, 121 ,095.8 The differ
ence was explained by the Postmaster
General as having been due to expendi-
lures ordered by Congress, such as in
creased postal pay, free mailing privi-
leges, ocean mail contracts and other
such items.
1t was shown in the report that the
American people bought 1927, 706, 100. 20
worth of postage stamps and that other
sources of revenue brought the total
receipts up to $685., ga, 577.69. The ex-
penditureS were 1882, 408, 1888.
Free Mail for Blind.
In the maze of big sums set down
in the report 1t was disclosed that the
department spends annually more than
$4,000 in handling free mail for blind
persons. This sum was the smallest
listed for non-profitable services. The
906.52, which, If paid for, would reduce
the actual deficit to $56,752,934.61.
The Postmaster General listed other
items contributing to the deficit as in
GLIDING handling and transporting sec
ond class matter free within counties of
origin, $S,781 ,530.83, and differentials
favoring vessels of American registry
under the merchant marine act, $8,787,-
1881.
Mr.. Brown frankly said that he did
not like the idea of having the Post
once Department charged up with the
cost of handling free mail and recon-
mended that legislation be passed ap-
propriatfng 1891 ,240 TO the depart
ment to cover such cost.
Much Postage.
A total of 76,773, 1856 pieces of mail,
weighing 35,998, 676 pounds, was mailed
by departments other than the Post
ONCE Department on which no postage
was paid. The revenue which would
have been derived from such mail
would have totaled So, 1853, ITO. In addi-
ton, members of Congress franked
37,273,2 70 pieces of mail, which would
have brought revenue of $685., 1854 had
postage been paid on it.
Not content with setting down
astonishing figures about stamps and
deficits, the Postmaster General turned
mathematical again and informed
President Hoover and Congress there
had ben a total of 1858, ISL ,272 distri-
buttons and redistributions of pieces, ex-
elusive of registered mail, by railway
postal clerks
The vast extent Of the post office
business had no better yardstick than
the fact that the motor vehicle service
purchased more than 100000 gallons
of gasoline during the year, to say
nothing of oil.