Evening star., 1932-09-16
RATE CUT
URGED BY BROWN
Tells Postmasters' Conven-
tion Retrenchment Should
Come First, However.
Special Dispatch to The Star.

Special Dispatch to The Star.
SPRINGFIELD, Mass, September 16.
Restoration of the 2-cent postage rate
"at the earliest possible moment" pre-
ceded by q retrenchment policy that
would make the Post once Department
self sustaining on such revenue basis.
is advocated by Postmaster General
Brown.
His views were outlined last night
before the National Association Of Post
masters in a speech, in which he said
that the postal rate increases. including
the boost to 3 cents for letter mail,
which went into effect in July. had, as
anticipated. curtailed the volume Of
business
The Postmaster General also forecast
q gross postal deficit this year OF only
S24 .OC0, 900. in comparison to that OF
s2o4 00O, 900 for the fiscal year ended
June 80 last, as the result OF the hlgner
the employees. This figure would not
take in additional administrative econ
onies the department is obligated to
eject where possible, the speaker said
Opposes Thoughtless Expension.
In arguing for a reduction in the
services set up by the department,
Brown criticized expansion without re-
gard to the future.
1T is INV observation" he said, that
the Postal Service in the past may have
been guilty, at least to some extent, OF
the same overexpansion which industry
has contributed largely to our present
economic difficulties. In prosperous
times, when our mills are operating at
full capacity. when all our people are
employed, when the Governments reve-
nues are plentiful, there has been q
tendency to 60 forward too rapidly in
the extension and expansion Of postal
facilities. The department has re-
sponded promptly and ungrudginely to
all plausible demands for additional IA
cilities and additional service, whether
they have involved the establishment OF
new stations and branch ofiices, the ex-
tension of city or rural delivery, or
expedited transportation by rail or star
route. The results Of this tendency are
well illustrated by the fact that up to
two or three years ago delivery service
in the residential areas OF many OF our
cities was provided on the basis OF three
trips daily, while as many as seven de-
nveries were made each day IN some
business districts--far exceeding the
needs, and possibly even the wishes OF
the vast majority Of our patrons.
This leads me to speak again OF the
manifest wisdom of keeping at all times
the closest possible balance between
postal revenues and postal expenditures.
In my opinion, the only sound theory
for the administration Of the Postal
Service is that, broadly speaking. exten-
sions of the service and the multiplied
tion of facilities for the convenience OF
postal patrons should at all times walt
upon the adequacy of the revenues to
support them"
Losses Not Yet Known. -
when this is not DONE" Brown con-
tinued, 1.-The taxpayers suffer"
On the matter Of rates driving away
business, Postmaster General Brown
said, because the trend has been down.
ward for many months, 1t has not yet
been possible to determine more than
approximately to what extent rate ad-
justments have contributed to our
present lowered volume, or, in other
words, to what extent losses OF volume
have offset the revenues resulting from
the higher schedule of rates"
THE revenue return for July and Au-
gust has been about the same as last
year." he said, but added that this, Of
course, meant less volume, inasmuch
as the rates were up
Reviews Years Work.
Reviewing operations for the last
fiscal year. Brown put expenditures at
$797 900 900, which was 4.OOO. 900 less
than the appropriation, $6 900 900 un-
der the figures for the previous year
and II air and sea mail subsidies are
not included $11 ,000, 900 under the pre-
vious IL months. Further, the shorten-
ing Of work hours had cost the depart
ment $1,000, 900, he said.
The Post once head. defended the
pay cut, saying it was necessary either