Show POSTAL SERVICE SHOWS A PROFIT first time in history according to report of cabinet officer RAISE IN RATES IS FAVORED president concurs in recommendation of commission on second data class mall matter again sug coati ceta adoption of parcel pot post system washington feb 22 for the first time tile in the history of 04 the postal servi I 1 tee that department of the government showed it a profit for or the tha fiscal year ending June 30 1911 according to the annual andua report p of po postmaster fitemaster fit master general hitchcock trans transmitted to congress to toi day accompanying the document was the report af pf p tho commission ott on beconi class cla mall baale mitter matter appointed by joint resolution of congress on march 4 of last year and a brief message of the president in which he ha called at bentt to the principal features of the two vo reports i would in increate crease second class clab rates rt the report of the commission on second class clasa mall mail matter makes the following recommendations 1 the rate ot of 2 cents a pound on copies coplea mailed by publishers to subscribers bers to news agents and aa sample copies and by news agents to their subscribers or to other news agents 2 the rate ot of 1 cent for or each 4 ounces for or copies mailed by other than publishers and news agents that Is the present transient rate 3 the present tree free ln in county privilege retained but not extended the commission also recommended that tho the cent a copy rate tor for newspapers other than weeklies and tor for periodicals not exceeding 2 ounces in weight and the 2 cent a copy rate tor for periodicals exceeding 2 ounces in weight when mailed at a city letter carrier office for local delivery be abolished As to the effect and adequacy ot of the proposed increase of 1 cent a pound in postage the commission says such an increase will not in the opinion ot of the commission bring distress upon tho the publishers ot of newspapers and periodicals or seriously interfere with tho the dissemination ol of useful news or information A reasonable time should bo be allowed after the rate Is fixed before it is Is put into effect while the new rate will be very tar far from compensating the government tor ir the ige carriage and 11 handling of sec e ond class clas 11 matter it will to some extent relieve the e existing burden and result in a more equi adjustment 0 of rates both the president and the postmaster general concur in the recommendations and regarding the abo proposed increase in newspaper postage the president says the proposed increase ot of 1 cent a pound in the second class posture rate I 1 believe to be most reasonable and it sufficient time Is allowed before the change goes into et ef ett t act feet it should work little serious injury to the business of the periodical publishers while equalizing at least in a measure the burdens of prial p tal taxation rates should be more equal commenting further on the proposed increase in crease the president says the postal service la is now for the first time in years operated upon a self sustaining basis and in my judgment this Is a wise policy hut but it should not be carried out at the expense of certain classes classe ot mall mail matter that pay reve revenue nue largely in excess of their cost it Is not just that some classes of mall mail should be exorbitantly orbit antly taxed to meet a deficiency caused by other classes the revenue from which Is much below their cost ot of handling and carriage where such inequalities exist they should be removed as early as practicable the business enterprises of the publishers of periodicals however have been built up on the basis ot the present second class rate and therefore it would be manifestly unfair to put into immediate effect a large increase in postage po stige that newspapers and magazines have been potent agencies tor for the dissemination of public intelligence ll and have consequently borne a worthy part in the development ot of the country all must admit but it 11 Is likewise true that the original odgie aal purpose of congress in providing tor for them a subvention by way vay ot of nominal postal charges in consideration of their value as mediums of public informs information ought not to prevent an increase because they are now not only educational al but highly profitable there Is no wa warrant arant for or the great disparity between existing postage rat lutcs on periodicals and the cost ot of the service tho the government performs for them the aggregate postal revenues for to the fiscal year 1911 were CU derived mainly dalny from the postage collected on tho the four classes of mall matter it la its carefully estimated by tho the department that the revenue derived from mall matter of the first class is approximately one and and one half times the cost of handling bandling and carriage that tho the returns from third and fourth class matter are slightly in excess of 0 their cost ot of handi handling lug and carriage and that while second class matter embraces over 55 65 per cent of the tha entire weight of all the mall carried it yields little mori mor i than 5 per cent ot of the abe postal ro revenues venues the tb commission on second econ class dIar mall matter consisted ot of lie lion charles E hughes associate justice of the supreme court of the khe united states president A lawrence lowell ot 0 harvard university and sir mr harry A wheeler president ot of the association of 0 commerce of 0 the city of chicago in commenting on oa their findings fhe president saya I 1 the report discloses t a ex haust hau stive lve tind and critical inquiry into the subject of second class claar ril matter matte after adequate notice cotar the parties la in interest extensive hearings were held by the commission rt at which the postmaster general and the sew sec ond end and third assistant postmasters general appeared and submitted for 1 mat statements presenting the various contentions of the post poet office department together with nil all the relevant relo vanti official data and evidence relating to the cost coat of handling and transporting second class mail mailer iader fi certain ofa of the leading magazines were rap represented by counsel while various othet publications b licati ons appeared by I 1 the findings of the commission c on fam the view that the co cost t of I 1 handling itna and transporting a second cond olasa class mall mail matter js greatly in excess of the postage paid and that an increase in the rate la Is not only Ju stilled by the facts but Is destra desirable blei cot cost inquired into tho the commission reports that the evidence submitted for its consideration la Is sufficient to warrant a finding of the approximate cost coat of handling and transporting the several classes of second class clasa mall mail known as paid at atle pound rate tree free ln in county and transient matter in so ao far an aa relates to the services of transportation post office cars cara railway distribution rural delivery land and certain other items of cost coat but that it Is without adequate data to determine the cost coat of the general post office service and also what portion of the cost of certain other aggregate services Is in properly algal assignable agn to second class mall mail matter it finds that in the fiscal year 1908 the period for which the statistics tor for the post poet office department were compiled the cost of handling and transporting second class mall mail in the items of transportation post office cars railway distribution rural delivery and certain miscellaneous charges was approximately 6 cents a pound for paid at atthe the pound rato rate matter and tor for f treo ree in county and transient matter each approximately 6 5 cents a pound and that upon this basis aa modified by subsequent reductions ln in the cost of railroad transportation the cost of paid at the pound rate matter for the services vices mentioned Is now approximately 6 5 cents cent a pound while the cost of tree free ln in county and transient matter remains as formerly namely each at approximately 6 5 cents a pound A the commission suggests that the department maintain an adequate cost system so BO that the effect of the rie new rates to may bo be closely observed and a proper basis may be secured for the consideration of any future propos ahr president talt taft again concurs in the recommendation of the postmaster general for the adoption of a varcel parcel post system suggesting the inauguration nau gurs of such a service on rural routes and in the city delivery service first ownership of telegraph opposed Hitch cocks recommendation for government ownership of 0 the telegraph lines under the supe supervision of the postal service Is in not approved 0 of f by the president regarding this h he e says there Is only ono one recommendation in which I 1 can not agree that Is ono which recommends that the telegraph lines in the united states stales should be made a part of the postal system and ote operated rated in conjunction with the mall mail syl system stem this presents a question of government ownership of public utilities which are now being conducted byr by private enterprise under francel franchises sea from the government I 1 bellevo believe that the true principle Is that private enterprise ter prise should be oe permitted to carry on such public utilities under tinder due regulation as aa to rates by proper authority tather rather than that the government should itself conduct them this principle I 1 favor because I 1 do not think it in accordance with the best beat public policy thus greatly to increase the body of public servants of course it if it could be shown that telegraph service could be furnished to the public at a less price than it to Is now furn furnished labod to the tha public by telegraph companies and with equal efficiency the argument might bo be a strong one in favor of the adoption of the proposition but I 1 am not satisfied from any evidence that it these properties were taken over by the government they could be managed any more econom economically lemIlY or any more efficiently or that this would enable the government to furnish service ice at any smaller rate than the public are now required to pay by private companies the report of the postmaster general Is full of statements of changes in the organization land and met methods lods of the postal service made since the last annual report and of tentative drafts of legislation embodying certain recommendations ions lons of the department which nees legislation to carry them out it I 1 also calls attention to the tha fact that the revenues tor for the fiscal year ended june 30 1911 amounted to and that the expenditures expenditure amounted to making a surplus of the report shows that the postal savings system wax wao begun experimentally in january 1911 and that it has now been extended no fio as to include presidential post offices which includes Inc lodea practically all of the post pont offices of that class preparations preparation are also being made to establish theses the system at about fourth class offices the deposits in it 11 months have bare reach ed ad ft a total of distributed among 2710 national fuad and state tat banks |