Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-25

building program instituted by Presi-
dent Hoover. Main post Office build
ingS will be provided under this pro-
gram in all stable towns where the
Government does not already own a
building, and hundreds of the present
buildings will be remodeled and en-
larged. AS a practical matter, how
ever, the public building program will
remedy the situation only so far as
main post Offices are concerned. The
program does not apply to buildings for
post Office branches and garages in the
large cities, in connection with which
We encounter our greatest difficulties
and incur the greatest expense.
1--WE now lease but II buildings to
house main post Offices where the an
nual rental is in excess Of $4,000, while
there are 272 branch Offices and 81 ga
RACES for which the rental exceeds that
figure. AS a matter of economy and
good business, the Government should
own most, If not all. of these buildings.
Our rent bill for these 309 stations
and garages is almost $8,000,000 a year
AN average of approximately $4,000
for each building. According to ap-
praisals made by the department, the
fair value of these buildings Is approx
imately $4,000, 900, so that we are an
nually paying the lessons about 1919
per cent of the capital value of their
property. While am not prepared to
say that this is an exorbitant rental
rate from the viewpoint of the lessons,
taking into consideration their risks
and their costs and difficulties of financ-
ing, beyond any question it is poor bus
mess from the standpoint of the Gov
eminent, which is in a position to Dor
row the money to acquire these prop
critics or similar ones at an interest rate
Of less than 4 per cent per annum and
as real estate owner is immune from
taxation.
Purchase Move Planned.
Buildings which 1t has been the pol
icy of the Government to lease can
only be acquired by congressional action
whether recourse Is had to increased
appropriations or to using the Govern
ment's credit.
The Postofice Department will make
definite recommendations to the next
session of Congress for authority to
undertake the purchase or construction
of the branch post Offices and garages
under lease in the larger cities. In the
meantime we are making no new leases
on large station or. garage projects I'M
less the same are located, constructed
and equipped so as to be suitable for
permanent acquisition by the Govern
menr and unless the lease contains an
option to purchase the property upon
reasonable terms.
I'VE are hopeful that the most per-
picking of our leasing problems will
shortly be at an end; that the Gov
eminent will adopt policy Of occupy
ing any important or extensive quar-
tiers which it may require for postal pur-
poses, not as tenant but as owner
This would seem a substantial saving in
money! saving which in Is CT 20
years would be sufficient to pay the full
purchase cost of the necessary proper
ties. It would mean buildings better
suited to the special needs Of the postal
service. It would mean greateS operat-
ing efficiency, bettr working conditions
for postal employees and 1t would free
the department. from the embarrassment
andN criticism which has naturally re-
suit Nd from the practice of negotiating
| with individuals and corporations FOL
the lease of extensive and valuable
PROPERTIES for Government use.
IN conclusion may I say that 1t Il
a satisfaction to be able to take oul
postal problems directly to you who use
and support the postal service. thank
you for your interest and your atten'
tion."