Evening star., 1953-07-16
The PoliticdI5MM.
Businessmen Helping
The Mails Go THROUGH
Shrewd Administration
Also Reducing Costs
By Gould Lincoln

BY Gould Lincoln
Postmaster General Arthur E. Sum-
merfield, aided by shrewd manage.
ment and reorganization, has already
knocked the (Truman) estimated 1854
deficit Of the postal service down from
$746 million to $315 million. And,
backed by President Eisenhower, he is
asking Congress for postal rate in
creases totaling $240 million. If granted,
these increases will reduce the deficit
to less than $75 million-or one-tenth
Of the original estimate. A still further
reduction, to approximately $40 mil
lion. is possible If other agencies of the
Government reimburse the Post Office
Department for "free mailing services"
they now receive.
Notwithstanding roars that have
arisen from a few members, it is be-
lieved that Congress will enact the nee
essary legislation for the increased mail
rates. There is good reason it should.
The accumulated deficits of the postal
service since 1945 total $38 billion,
which now forms part of the public
debt and on which the American tax
payers are forced to pay 500 million
year interest. The American public
will gain far more in the matter of tax
rellef. II the moderate increases in mail
rates now proposed are adopted, than
it will lose in the increased payment for
postal services. ''It's like trading an egg
for a whole chicken" Postmaster Gen.
eral Summerf1eld says.
So the drive is on to put the postal
rate bill through at the present session,
with the Republican leadership lined
up for it. and with the promise of back.
ing from Democrats in House and SEN
ate. The chief opposition comes from
the users Of Second-claSs mail-and
their supporters. Second-clasS mail
consists of newspapers, magazines and
periodicalS-and the loudest squawks
come from the magazines. 1t Is on
this class of mail that the Post Office
Department loses the greatest amount
of money each year. $240 million.
Only $40 Million.
The proposed increase in rates on
second-class mail, however, will add
only $40 million revenue. Rates on
this class of mail are generally lower
than they were in 1925. Postmaster
General Summerfield laid it on the line
when he told the congressional COM
mitteeS considering this legislation that
when publisher pays ST to send his
product through the mails, the tax
payer pays an additional 1892 to meet
the cost of handling that product"
The largest revenue increase is ex-
pected from the proposed new rates on
first-class mail-letters, $165 million.
including domestic airmail letters. 1t
should be understood however, that
the proposed increase of l cent Con the
first ounce) for letters is to be levied
only on non-local letters. Local letters
and postcards will pay no more. 1t
should be remembered. also, that only
about Is per cent of the letter mail
originates in the home. On third-clasS
mail, mainly printed matter and mer-
chandiSe up to ounces, the proposed
increase is approximately Is per cent.
and is expected to bring in $50 million
added revenue.
The postal service is a huge and
complex business. 1t spend $28 bill
lion year and takes in $22 billion.
It's service to the American people
and not expected to make profit. On
the other hand, the users of mail serv-
ice should certainly pay for 1t. In lis
years for which figures are available.
the Post Office Department has re-
ported surplus only 18 times, and only
five times during peace.
Businessmen Help.
To help handle this enormous busi-
ness-it is estimated that in fiscal year
1854 the service will handle 53.7 billion
pieces of mail, an increase in total VOL
ume in Is years of 81 per cent. The
Postmaster General, himself a success
full businessman, has brought into the
department team of businessmen en-
gagged in transportation and traffic
managing and industries for some of
the largest concerns in the country. In
the five months they have been on the
job they have made many adjust
ments and Improvements in the postal
service, reducing costs and increasing
efficiency and particularly the speed Of
mall delivery. 1t Is department in
which the wisdom of Gen. Eisenhower's
determination to bring Improvement
through management by practical busi-
neSsmen is assuredly paying off.
A balanced budget for the postal
oNA'AN0 WouAu NC real SLep toward q
balanced budget for the Federal Gov
ernment. Mr.. Summerf1eld explains
that economies and changes already
made in his department will cut $l52
million off the original Truman budget.
He has been further aided toward a
balanced budget by the transfer of
alrmal subSidies-$79 million-to the
Civil Aeronautics. Board, and by recent
revision in parcel post rates and other
ices, bringing in an added 5000 million
a year. His aim, however, is to do far
more than make the postal service a
pay-as-you-go affair. He seeks to give
oetter, quicker and more extended
service.