New Britain herald., 1930-12-02
POSTMASTER ASKS POSTAGE INCREASE
Brown Alarmed by Deficit Of
 S58,779,000 This Year

Washington, Dec. P>-Post- master General Browns prescription for that old aggravation-the postal 1 deficit-is to charge a half cent mere to deliver those letters now | mailed outside the locality for two cents.
 Appalled, by the s5S.779.000 by l which the department found itself behind for the year ended last June, he spoke out today 10 President , Hoover in his annual report.
 The recommendation was for a two-and half cents per ounce rate for first class mail of q non- local destination, while the two-cent rate would remain in effect for local deliveries. This "only practicaf' remedy, under the legislation pro- posed, would so into effect next April l.
 Deficit Increase Last years receipts reached s705,- ASA 900. Despite that tremendous total, the deficit exceeded that of 1929 by s1,91S,000.
 The department should conduct it's strictly postal operations with out a financial loss" was Browns s starting point. He estimated the in crease would boost income S55, 000 annually: and recommended nominal revision of fees for money orders, insured and registered classes of mail to net an additional $S,o00,000 yearly. Postcard rates would remain as at present.
 The postmaster general also tcrm- cd leasing of postal quarters at an nual rentals exceeding s6.000 "un- economical" The general subject has been under senate Investigation, with report in the offing. Mean while, the post office department was shown in it's report to have for mulated plan for ultimate owner ship of all quarters now costing more than s6,000 a year.
 Noting that present first class rates have been the same since 1885, except during the war, Brown ar gued for the increase as follows;
 Lists Increases
 Since 1916 there has been an in crease of & per cent in the second- class rate, an increase of q per cent in the third class rate, and an aver age increase of 10 per cent in the parcel-post rate.
 When there is taken into ac- count the reduced purchasing power Of the dollar, the 2-cent postage rate of 1885 is equivalent to 31a cents at the present time. If there is taken into account the relative wages paid to labor, the 2-cent rate of 1885 is equivalent to [ cents at the present time. XXX
 While a higher rate than 2l2 cents would be justified, neverthe- less the F cent increase will take care of the deficit and balance the post office budget. except, of course for extraordinary and non-postal expenditures"
 To increase the rates on second. third and fourth class matter fn- stead of first class, Brown contend ed. would drive much of it out Of the mails, the net result being to in- crease rather than decrease the de- ficit."
 The total excess of expenditures over receipts was $98.215,U00, as compared with SS5.461,0O0 for 1929. Deduction of $39,G69.000 from this total deficit is allowable by congress for expenditures chargeable to non postal activities. such as ocean and air mail subsidies, free mailing etc,
 Places Blame
 To the 1928 congressional read justment of rates on cards and sec Ondary matter was attributed re- sponsiblity for much of the deficit.
 As to the departments general welfare" functions. Brown said ob- viously there should be no rate in