The Sidney herald., 1958-02-13


Meet Emergency Defense Costs;
Balance the Federal Budget
WHY POSTAL RATE
INCREASES ARE
NEEDED NOW
Postal rates are the same today
as they were in 1882 for First
class letter mail; only 3 percent
greater for Second-class mail; and
38 percent greater for Third
class mail.
Meanwhile, everything the Post
Office Department buys and uses
has more than doubled in cost
since 1882, just as household and
| business expenses have.
The Post Office Department
will lose at least $500 million in
the next fiscal year. Postal losses
since 1945 including estimates
for the current year - total more
than So billion and now cost the
taxpayers over $3.50 million a
year in interest alone on this. part
of our national debt.
Large drains on the General
Treasury to support the Post Or
flee Department are actually a
postwar phenomenon, due pri-
marily to higher costs of operat-
ing the Department.
From 1900 to 1910 postal losses
averaged only $33 million a year.
Between 1946 and 1857 losses In
creased almost fourteen fold -
to about $3.50 million year. I'm
less present trends are halted,
postal losses may soon be 5 bill
lion or more a year.
In this period of national en-
ergency additional Government
revenues are rightfully needed
for missiles and other defense
items. This is no time TO con-
tinue give-away postal subsidies,
especially TO the large business
users of the mails. They hould
pay their fair share of the costs.
Do present postal losses in
clude franked mail, airline sub
sides and public services?
The present huge postal losses
no longer include the subsidies
formerly paid the airlines ap-
proximating $40 million yearly.
These costs were transferred TO
the CAB by law In June 1853.
Since August 1853, the Depart
ment has been paid in full Tor
handling 'franked" Congressional
mail (approximating 50 million
yearly and penalty" mail of
Government agencies (approxi-
mating SIS million yearly which
were formerly carried free.
Under current rate proposals
mail patrons are not being asked
to pay for the costs Vt public SER
vices (such as free mail for the
blind, preferential rates for re-
| ligious, fraterna1 and educationa
publication, etc. The Department
fully recognizes that such SER
vices should be supported from
the General Fund of the Treasury
and not from users of the mail.
WHAT RATE INCREASES
ARE NOW PROPOSED
The Department endorses the
specific rates contained in H. r.
536 exclusive of the Rhodes
Amendment) as approved by the
House of Representatives on Au-
gust l3 Of last year. However, be-
cause of the pressing financial
needs of both the Post Office and
the Federal Government, the De-
partment is recommending that
this Bill be amended to include
SC rate for non-locaI letters.
The proposed rates on first
class mail would produce addi-
tional revenues of $500 million
from the Sc non-local letter rate,
s146 million from the 4c local
letter rate, and $34 million from
the &c post card and drop letter
rates.
Increases from &c to 7c an
ounce on Air Mail letters and
from &c to Sc on Air Mail cards
would yield SIT million a year In
new income.
Second-class zone rates on mag
azines and newspapers would be
increased by four successive an
nual Is percent increases to pro-
vide additional revenue of ap-
proximately 81 million IN Fiscal
Year 1859 and total of S31.5
million at the end of the fourth
year. Adjustments in the mini
mum per piece rate and In tram
sient rates would produce So mil
lion of new revenues in Fiscal
Year 1859.
Rates on Third-class mail
(largely direct mail advertising
circulars and small parcels up to
8 ounces) would advance to yield
S133 million in the next fiscal
year. These include a 1c increase
in the minimum piece rate under
bulk mailings and various adjust
ments in the rates applicable to
single-piece mailings.
Increases in book rates from Sc
to 10c for the first pound and
from 4c to SC for additional
pounds would provide no new
revenues since this category
would be broadened to include
manuscripts and other materials
which now pay higher rates OF
postage. Increases in controlled
publications from 10c
for ounces or under and lie
for over ounces to a uniform