Salt Lake Tribune | 1911-08-16 | Page 9 | Hitchcock Plans a Large Saving

HITCHCOCK PLANS A LARGE SAVING- To Keadjust Methods of Computing Pay to Bailroadfl Carrying the Mail. WASHINGTON. Aug. 15. Radical readjustment re-adjustment of tho methods of computing the pay of railways for transporting tho malls, which will effect an annual saving sav-ing of approximately $9,000,000, was recommended rec-ommended to congress today by Postmaster Post-master General Hitchcock. Mr. Hitchcock proposes to effect such saving by paying the railroads on the basis of cost with G per cent profit. The plan provldos that all railways shall report annually to the postmaster general the expensos Incurred In carrying carry-ing the malls, In order that the department depart-ment may determine the cost to the railways rail-ways and a fair rate of profit. The mothod of fixing railway mall pay In accordance with weight has proven expensive ex-pensive and unsatisfactory, says Mr. Hitchcock. He suggests the substitution of tho method of fixing compensation in accordance with tho amount of space required re-quired In cars. Mr. Hitchcock sent to congress a draft of a bill which could carry tho new plan Into effect.