Evening star., 1949-02-17

from the political party In power
A deleterious effect has been tx
create a political barrier to pro.
motion within the service anc
thus deprive it of a great incentive
to good work"
The primary responsibility fol
personnel selection should rest ir
the service. the commission said
It recommended that postmasters
should be selected as far as pos
sible from the local community
and in consultation with COM
munity leaders, but subject tc
standards approved by the Civil
Service Commission.
Structure Called Obsolete.
The latest recommendations fol-
low a section in the report listing
what is wrong with the Post Office
Department. The report says:
The administrative structure is
obsolete and overcentralized.
A maze of outmoded laws, regu-
lations and traditions freezes
progress and stiles proper ad-
ministration.
Although the Post Office is a
business-type establishment. it
lacks the freedom and fexibility
essential to good business op-
Grafton.
Rates have not kept pace with
wages and other costs and rate
making machinery is inadequate.
The service is used to hide sub
sides.
Political appointments produce
inefflciency and initiate against
the incentives of promotion.
Operated at Loss.
Accounts are kept by the Gen.
eral Accounting Office outside the
department and are available to
the Post Office for management
purposes only after months of de-
lay. Methods of budgeting and
appropriation are entirely unsuited
to a business with revenue of more
than ST. 300, 100000 a year.
In recent times, except for a few
years, the department operated at
a loss. In 1948 only the first class
mails, certain categorieS of foreign
mails and the Postal Savings Sys-
tenn more than met their own ex-
penses. In 1949 the deficit will
probably exceed $5O0,0O0,000, OF
more than 80 per cent of the
revenues.
The report pointed out that the
Government Corporation Control
Act of 1945 provides for a "busi-
ness form" of budget, accounting
and audit for Government corp
orations and gives them modern
business f1exibility. The commits
sion does not recommend that the
Post Office be incorporated under
the law, but does recommend that
the provisions in respect to busl-
ness management, budgeting, &C
counting and audit be applied tc
the department.
Hidden Subsidies Opposed.
This, the commission said, will
bring the department into step
with modern business methods,
but will not lessen executive or
congressional controls. 1t was in
dicated that in a forthcoming re-
port on budgeting and accounting
recommendation would be made
that the Post Office keep its own
accounts and make its own dis
bursements, subject to audit by the
controller general in accordance
with procedures. determined by an
accountant general in the Treas
ury Department.
Payments for carrying airmail,
the commission said. are fixed by
the Civil Aeronautics Boayd at a
level to provide a subsidy to avia-
ton. This may be most desir-
able" the commission said, but 1t
recommended that the subsidies
be paid to the Post Office by open
appropriations from tax funds and
not imposed on the department or
the mail users in this hidden
manner.
Certain rates should be fixed to
make the services provided self
supporting, the commission said
At present. it pointed out. some
rates are fixed on the basis OF
public policy and to provide serv-
ices not otherwise obtainable by
the people.
So Separate Appropriations.
The commission holds that
final determination of rates for
frst-class Including air maiD
second, third and fourth class
mail should be made by Congress,
But it says these services should
be self-supporting: Registered
mail, insured mail. money orders,
postal notes, postal cards. special
delivery and collect-on-delivery
mail. The increased cost is esti-
mated at $113,000,0o0 yearly.
Effective last January rates
were raised for all of these serv-
a.