Evening star., 1947-05-20


manager IL still q member Of the
Presidents cabinet, has recon-
mended that rates be increased TO
Yield $i73,O00, 900 more, while the
House Post Once Committee now
favors rates that will yield about
an additional $4,000, 900 q year.
: Both the members Of the House
committee and Post Oh1ce officials
seem to overlook the advice 80 often
given By the CIO that wages can be
Increased and deficits can be abb
sorbed from profits. Here the Gov
ernment has been increasing wages
and Is about to end the fiscal year
with a surplus" or profit" OF
$4,000 900, 900 or more, and yet the
selfsame Government increases
prices to the public. One suspects
that the Government officials have
not been reading carefully all the
economic advice they have been get
ting from "left wing" quarters.
No Time to Raise Prices.
Certainly this is no time for the
Government itself TO be raising
prices and TO be arguing that 1t
must overcome deficit" In some
particular department. There are
other departments Of the Govern
ment operating at dehcit-as, for
instance, the Agriculture Depart
ment which serves the farmers and
the Labor Department which serves
the labor unions. One wonders why
the service performed by the Post
Office Department cannot be charged
UP, as all the other services are,
to the taxes paid by the people as
a whole.
Curiously enough, the postal rates
will operate as an increased tax on
many companies which already pay
heavy taxes to the Government. AS
for newspapers and periodicals, the
new tax in the form of posta rate
revision upward will cause the more
successful companies to ship In
bulk by express and mail their pub
locations from distribution centers
in local zones or counties where the
rates are lower. The smaller COM
panies will be penalized and thus
the advantage will 60, as usual, to
the bigger businesses.
Statistics have already been fur
nished Congress showing that the
Government will lose revenues by
reason of changes in methods OF
distribution and that the price in
crease will be boomerang. 1t re-
mains to be seen whether the ex-
pertinent in price-raising will work
out to reduce or increase the So
called postal deficit. -.-
' Politics in System. .- Isl
The trouble with the Post Office
Department is that it isn't operated
as efficiently as is private business.
The Post ONCE system is honey
combed with politics and affected by
political considerations. Much of the
mail that now goes free should be
paid for-the Post Office business
then would have not only balanced
budget but a profit besides.
The Government might well serve
all the people with better and better
communication facilities. Thus, the
special delivery rates-which would,
under the proposed legislation, 60
from the present rate Of 13 cents to
IS cents-would be worth it II the
delivery were prompt but in a city
like New York, for instance, the
special delivery letters are some
times delivered later than regular
mail There are parts of the
metropolis where special delivery is
not worth Is cents because of the
chances of delay. Under such cir
cumstances, it would not be sur
prising If patronage Of the special
delivery service were decreased.
II ever there was need for
lower rates and the stimulus Of
larger volume, 1t Is in a business
like the postal service. If the rates
were reduced, more mail would be
sent, especially by business houses
which now spend huge proportion
Of the money expended for postage.
Lower rates would increase volume
and at no proportionate increase in
cost of carrying 1t or delivering it.
Experience with the air mail, which
recently went from to 8 cents an
ounce, showed that the public is
sensitive to price changes. 1t was
changed to cents and revenue
increased Immediately.
There ought to be a commission
to study the efficiency Of the Post
Office Department and the impact
of postal rates on mail volume be-
fore new rates are legislated.
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