Evening star., 1951-02-27
Truman Urges
Mail Rate Boost
ToCut Deficit
5-Point PIun Calls for
2-Cent Postcards and
Special Delivery Jump
By Joseph A. Fox

President Truman today asked
Congress to raise postal rates to
provide 1851 million in additional
revenue and cut down a deficit
that in the next fiscal year will
come to an estimated $521 million
The President proposed a FIVE
point program as follows:
/. An increase Of from l to 2
cents for postcards.
2. A doubling of the second
class mail rates applied to news
papers and magazines. The rate
is now 11a cents pound without
regard to distance for the reading
matter they contain plus a grad
uated rate for advertising matter
which ranges from 11a cents a
pound to Z cents pound.
8. An increase of from / to 2
cents on circulars and advertis-
ing matter which make up the
bulk of third-class mail.
4. An increase for fourth-class
mail (parcel post) which would
put it on pay-as-you-go basis.
5. An increase in rates for
registry, insurance, c. o. D. mail
and special delivery that would
raise about $25 million.
Deficit May Be Larger.
In forecasting deficit in ex-
cess of a half billion dollars, the
President said this may even be
larger if the Interstate Com
merce Commission and the Civil
Aeronautics Board approve a re-
quested railroad and airline mail
increase.
Declaring that the large deficits
of the past several years have
had to be made up from the gen.
eral revenues the President said:
"Or, to put it bluntly, the gen.
eral taxpayer has been giving
large subsidies to certain users
of the postal system.
"a postal deficit of more than
one half billion dollars is obviously
unsound when every effort must
be made to reduce the size of the
Federal Budget. The taxpayers
of this country are faced with an
unavoidably large burden in
financing our defense program. It
is unreasonable and unfair that
they should also have to pay for
postal costs which should be born
by those who receive the direct
benefits of postal service"
Most Services Run at Loss.
| Mr.. Truman, who has frequently
urged Congress to boost postal
rates, said that at present all ma
jor types of postal service except
first-class mail-for which no in
crease is sought-are operated at
a loss.
The losses, he said, are espe-
cially heavy for the second and
third class mail-newspapers,
magazines, circulars and adver-
tising matter-adding that the
deficit there is expected to run
over $500 million in the next year.
Postwar increases in salaries
and carrying costs have boosted
these deficits, the President said.
adding that the pay cost has
jumped about $500 million as a
result of increases in 1945 '48
and '49.
Cannot Be Eliminated Entirely.
The President said, however,
that these increased costs. lob
viously could not have been
avoided"
Mr.. Truman said postal reve-
nues for the fiscal year 1852 are
expected to be about 81 ,840, 900, 900
with expenditures of about ST.
361 900, leaving a deficit of about
$521 million.
1.-THE deficit should not be elm
mated completely" he explained,
some postal costs are incurred
to carry mail on official business
by the executive, legislative and
judicial branches of the Govern
ment. The airline subsidies, the
amounts paid to the airlines over
and above the cost Of carrying air
mail are also charged to the post
Office.
These, and a few other special
expenses, amounting in all to about
$160 million are incurred for gen.
eral purposes of the Federal Gov.
(See POSTAL, Page AS.