Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-25
lCUT IMP. 0. LEASE
z BILL TO Be SOUGHT
Brown, in Forum, Bares Plan
to Buy or Build 800 Sta
tionS Now Rented.

Discussing the question OF pOSta
leases, concerning which there has
recently been much uniformed public
comment" Walter F. Brown, the Post
master General. announced in radio
address last night that the Post Office
Department will make definite recon-
mendations to the next session OF
Congress for authority to undertake the
purchase or construction of 300 branch
stations and garages which the Govern
nent now leases in the larger cities.
The annual rent bill for these build
ings is almost $8,000,000. he said, an
average of about $4,000 for each build
ing. Speaking in the National Radio
Forum arranged by The Washington
Star and broadcast over the coast-to-
coast network of the Columbia Broafi-
casting System, the Postmaster General
said it is in connection with these
buildings that eve encounter our great
est difficulties and incur the greatest
expense"
Pointing out that it has been neces-
sary to use the leasing system since
the Government suspended building
operations during the World War period
and did not resume until 1926, Mr..
Brown said I'VE are quite aware of the
disadvantages of the leasing system"
The general building program in effect
since 1926 and the supplemental pro-
gram instituted by President Hoover
has helped, he said.
Partial Remedy Is Seen.
"As a practical matter, however" he
added. 1.-THE public building program
will remedy the situation only as far as
main post Offices are concerned
we now lease but II buildings to house
main post offices where the annual
rental is in excess of $4,000, while there
are 272 branch Offices and 81 garages
for which the rental exceeds that fig
ure AS a matter of economy and good
business, the Government should own
the most, If not all, of these buildings"
The fair value of these buildings is
approximately S75,000,000. according
to the appraisals of the Department.
I'VE are annually paying the leSsers
about 10la per cent of the capital
vaue of their property" he pointed
out, adding that the Government was
acquire these properties or similar ones
at an interest rate of less than per
cent per annum, and as real estate
owner be immune from taxation.
Mr.. Brown pointed out that when
the Government leases the buildings
the taxes are figured as part of the
bill.
While I am not prepared to say
that this is an exorbitant rental rate
from the viewpoint of the lessons, TAX
ing into considerable their risks and
their costs and difficulties of financing,
beyond any question it is poor business
from the standpoint of the Govern
ment."
$500 Buildings Leased.
There are about $4,000 post Offices in
the United States, Mr.. Brown said, 49,
600 of this number being rated first,
second or third class. The total num-
Der of buildings leased he estimated at
$500 with the rental ranging from few
dollars year TO $780, 900, which is the
amount paid for the Van Buren, street
postal station in Chicago
We are hopeful that the most per-
picking of our leasing problems will
shortly be at an end" he said, that
the Government will adopt policy of
occupying any important or extensive
quarters which il may require for
postal purposes, not as tenant but as
owner"
The address of Postmaster General
Brown follows, in full:
Fellow citizens of the radio audience"
All OF you are well acquainted with
the United States Postal Service. You
not only know its facilities for the
tA0A4OAllAooAOL Va 4CbbEI6, uEhSQdDEI6,
articles Of merchandise and money, but
you know something, am sure, of its
history and the details of its organiza-
ton. It is the only service maintained
by the Federal Government with which
practically every one comes into daily
contact. In peculiarly personal sense,
1t is your service. There is every rea-
son, therefore. for you to follow its
activities. closely, just as you would If
the department were business enter
prise in which you we're stockholder
In the hope of contributing some
accurate Information with respect to
the policy and practices of the Post
ONCE Department in leasing quarters
for postal operations subject con-
corning which there has recently been
much uniformed public COMMENT
shall occupy the time allotted to me
tonight in discussing post Office leases.
$1,000 are Presidential.
There are about $4,000 post Offices
in the United States. OF this mum
Der about $4,000, rated by their postal
receipts and designated as post Offices
OF the flrst, second and third classes
are known as presidential post Offices
80 called because the postmaster is an
pointed by the President for a definite
term OF four years from an eligible
register furnished by tie Civil Service
Commission. These include the Offices
In all the cities and the larger towns
and villages. The remaining post Of
f1ces-ahout $4,000 in Misunderstanding
postal receipts of less than $1,000 a
year: are designated as post Offices OF
the fourth class. Located in the smaller
communities, they are administered by
postmasters who are appointed by the
postmaster General from the civil
service lists and hold their Offices for
indefinite periods. in accordance with
the laws and regulations relating &C
civil service appointees.
quarters for the fourth class Of
noes are provided by the postmaster
Tney are necessarily primitive. usually
being portion of a general store con-
oucteo by the postmaster as his prin-
cipal means of livelihood. On the
other hand, quarters for all presidential
post offlceS--main Offices. branches anc
garaeeS-must be provided by the Pos,
once Department. Space must also
be provided at large railway centers fol
the separation and distribution of tbs
Through" railway mail. At the present
time, in addition 10 the $1,000 presi.
Genital main post Offices, there are about
1900 branch Offices. 900 garages anc
81 railway mail stations, for which tn,
Government must furnish quarters
This requires total of about IB,0OC
buildings.
In 1900 of the larger cities anc
towns, the Government owns the pos
once buildings. and buildings are be.
ing constructed in additional cities II
accordance with the Presidents build
tng program, as rapidly as suitable site,
can be procured and building plan
drawn. Eventually, IL is the purpost
of the Government TO own a main nos
ONCE building in every cornmunit,
having postal receipts Of $4,000 O
more year-a total of about 2.2Ol