Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-27
Committee of U. S. Body 0p-
poses Raise of FirSt-CIaSs
Rate and Other Boosts.
SALARIES rs PER CENT
OF 5000, 100000 OUTG0
Report Says Revenue From Higher
Letter Rate Would Be Dis
appointing.

Downward revision Of salaries should
be considered by the Post ONCE De-
partment to cope with the mounting
deficit, the Committee on Postal Serv-
ice Of the Chamber of Commerce of the
United States said today in a report
in which 1t went on record against the
increase in first-class rates proposed
by the department as a measure of
relief, and argued against other boosts
as detrimental to the public.
Efforts to improve the financial sit
uation Of the Post Office Department
should be directed to economies, eff
ficiency measures and increase in
volume Of business rather than pri-
marily to general increases in rates, -
the committee holds.
The committee points out that sal
aries account for nearly $500, 1000, 900,
or rs per cent of the total depart
mental expenditures Of 1903 ZOO, 900,
and says ut Is obvious, therefore, that
any economy involves the most careful
scrutiny Of all matters of expenditures
for postal salaries"
Rural Delivery Contracts.
lieves, would lie in putting rural de-
livery on a contract basis similar to
the star route service, which, it says,
costs 11.12 cents a mile. Rural de-
livery costs 25.19 cents per mile and
involves estimated losses of SIS, 600, 900
annually, the report says.
Salary increases since 1925, the re-
port shows, have increased the annual
expenditures OF the postal service by
about $90,000.0o0, but in this connec-
ton the committee reiterateS the
National Chambers attitude against q
general fiat level Of postal salaries on
the grounds that employment condi-
tions and living costs vary widely In
different parts of the country.
"DisparitteS In postal, as compared
with private salaries" the report saws,
have become of special importance not
only because Of the excess amounts
paid to postal employees as compared
with private employment, but also be-
cause, with increased postal deficit, the
burden is more. serious.
The committee also expresses the
opinion that further increase in postal
salaries, such as are occurring now
under the. system of automatic in
creaSeS, should be discontinued for a
time and readjustment of salaries on
a differential scale rather than on a
uniform Nationwide basis should be
given consideration.
Disappointment Feared.
In opposing higher flrst-claSs rates
the committee says that revenue from
an increase In the rate to 21a or 3
cents would probably be disappointing
Over q period Of years, the committee
says, the higher rate would be disad-
vantageouS to the postal service and
contrary to the principle Of reducing
postal costs by increasing volume.
Another objection, the committee
states, is the adverse effects 1t might
have on general business under present
conditions. The committee believes it
would curtail business promotion ac-
Invites, reduce the business of indus
tries supplying material for such activi-
ties, require readjustment of CONNER
cial processes at particularly disad-
vantageouS time and add substantially
to unemployment.
The committee also argues against
increasing second and third class rates,
seeing in this a probable exclusion from
the mails of desirable publications. 1t
suggests, however, that as a source of
additional revenue, suitable fees might
be charged for entry or re-entry of
second-clasS publications and for news
agents registration.
The opinion is expressed that the
passing of the depression will see the
postal deficit lowered.