Evening Star Newspaper, September 20, 1929, Page 6

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THE EVENING STAR, WASHINGTON, D. C; FKFRIDAY, SEP SENATOR EXPLAINS - POSTAL SHORTAGE McKellar, Committee Mem- ber, Tells of Service Over Radio Forum. Charging that the Interstate Com- merce Commission was ‘“exceedingly generous” to the rallroads in fixing postal rates, Senator Kenneth McKel- iar, member of the Senate committee on post offices and post roads, recom- mended over the Naticnal Radio Forum last night, repeal of the act giving the commission jurisdiction over such rates, and transfer to the Post- master General of that authority. Speaking _through station WMAL over a Nation-wide network of the forum, which is arranged by The Star and sponsored by the Columbia Broad- casting System, Senator McKellar also questioned the wisdom of giving to the Postmaster General the power to grant subsidies to the steamship lines for carrying foreign mail. | These two factors were charged by the Senator as being partly responsible for the large postal deficit, which, he said, had also been partly caused by building up the air mail service and by increasing and building up the rural Toute system. Deficit Not Alarming. Referring to the $95,000,000 postal deficit for 1929, the Senator said, ““There is nothing to get excited about in this particular post office deficit, and no Teason whatever for raising rates or cutting salaries.” i The speaker was particularly insistent that no salaries in the postal service be cut, as he felt that the relatively high salaries paid were well justified in the efficient service rendered to the whole American people. Praising the work of the postal service employes, Senator McKellar said, “There is no department in the Government that is as efficiently run as is the Post Office Department.” “Under no consideration,” he de- clared, “should there be a thought of cutting the salaries in our post office service.” The power of fixing postal rates, which the Senator would take away from the Interstate Commerce Commis- sion by repeal of the act, he proposed to give to the Postmaster General. ‘Would Be Efficient. “As every one knows,” said the Sena- for, “the Interstate Commerce Commis- sion as it is at present organized, is ex- ceedingly generous to the railroads in fixing rates. The Congress made & ‘mistake in granting the power to this commission to regulate the postal rates. | The service could be better served and ‘more efficiently served if the Postmaster General had the power to make rates by contract with the various rallroads carrying the mail.” The operation of a recent law giving the Postmaster General power to grant subsidies to the steamship lines for carrying foreign mail has been expen- sive, the speaker said, adding that “th: wisdom of this subsidy system is ex- ceedingly doubtful.” “This matter,” he| said, “should be carefuliy recanvassed by the Congress, and greater savings would be manifested by our Government.” Text of Address. The text of Senator McKellar's ad- dress follow: So much has been published in the papers lately about the tremendous postal deficit of $95,000,000 for the year 1929 and the probably large deficit for the year 1930, and so much has also been written about the increase in the cost of postage stamps that I have been asked to explain the postal situa- tion. I have served as a member of the post office and post roads com- mittee all during my 13 years' service in the Senate, and I suppose my. fa- miliarity with the workings of the Post Office Department is the reason for calling on me to make this talk. T want to state to you in advance that it is a dry subject, and for that reason T ask your indulgence. I want to make | the story as interesting as I can., I am simply the guest, so to speak, of | ‘The Evening Star, 1 am talking on | a subject that that splendid paper has | chosen. The Post Office Department of the United States is the greatest business institution of this or any other govern- ment. The year 1929 shows a postal business of over $700,000,000, and the activities of this department reach every corporation, every man, every woman and every child and every institution | in the United States. Its connection With the people is the most intimate | connection that the people have with their Government. The President of | the United States could go off for a| three-month trip, and the Government | would run just the same. The Con: gress could stand adjourned six months in the year, and the Government would run without material change. The Supreme Court of the United States could fail to hold sessions for a year, and only a few, would be delayed or injured. The Department of State and sundry other departments might cease | to function for a year, and not any one would be especially hurt, but if the Post Office Department were to cease jts operation for one single day, the in- | terests of more than a hundred millions | of people would be affected. Such are | the ramifications of this great institu- tion into every nook and cranny of this great Nation. I don’t believe the people of the United States realize the enor- ‘mous value and the almost perfect con- venience of our great postal system in the United States. By long odds it is | the greatest postal system ever insti- | muldd under any government in all the world, History of the Department. None other than Dr. Benjamin Frank- lin was the first Postmaster General in | the United States. He was appointed in 1775 for the Colonies, and he was given a compensation of $1,000 per an. num, with a secretary at $340 per an- num. mail service was by con- 'hy tract and on_horseback, as there were |’ few or no at that time. The | postage was almost prohibitive,. being about 25 cents to carry a letter from Georgetown to New York, and increas- ing 1 cent for every 12 miles. hen Mr. Washington appointed Samuel Os- good first Postmaster General under the new Government, the receipts from the Post Office Department that year amounted to only $25,000. At that time there were but 75 postmasters and 2,000 miles of post roads. It must be re- membered that it was very difficult to ! transport mail in the early history oll our country. There were no steamship | lines, there were no railroads and very few other kinds of passable roads. Of course, there were no_telephones, no telegraphs, no steamship mails, no | railroad mails, no air mails, and it is | easy to see what must have been the mz difficulty that our Government in transporting communications | from one part of the country to the | other. From the very beginning it was de- clared to be the policy of the Govern- ment not to make money out of the postal rates, Whenever money was made it was used for betterments and extensions and this has been so throughout our entire history. This fact is shown, ac- cording to the records, that in the 140 years of our country's history there have been postal surpluses in only 15 years. In all other years there have been deficits. The marvelous strides made by our postal service during our history may be shown by a few com- parisons. In 1789 there were 75 post offices in the United States. In 1929 there were more than 49,452 Post Office revenue in 1789 was about $25,000. The Post Office revenue in 1929 was over $700,000,000. Under the first Postmaster General there were 118 officials in the service. At the present time there are 370,988 officials in the service. In 1789 the post riders carried the mall bi-weekly through forests and across rivers, swamps and mountains. In 1029 the mails are carried ove STAR RADIO SENATOR M FORUM SPEAKER boat lines, over auto routes and over many million miles of improved post roads and there is a veritable network of airplane mail service throughout the Nation. The object of the Post Office Department from the very beginning has been to give the people service. It/ has been believed, and is still believed, | that intercommunication between the various parts of our country, the carry- | ing of news, the circulation of literature. has & wonderful educational effect, aids business and makes the people a hap- | pier, prosperous and more contented people. Widening Scope of Service. Not only has there been this mar- velous growth of the service and de-; velopment of the transportation facili- | ties of the mails, but there has been | an enormous growth and enlargement in the activities of the Post Office rtment. At first it was confined to! etters and then a few papers and then, as the years have gone by, it has prog: ressed step by step until we see it | todey in its splendid state. ‘ We have now almost every kind of | service. We have steamship mail serv- ice, we e steamboat mail service, rafiway mail service, star route mail | service, naval mail service, rural free, delivery service, motor car mail service, | foreign mail service and air mail serv- | ice. This mail is not only transmitted with the greatest expedition throughout | Continental United States, but to all of our insular possessions and throughout | the world. | In addition to this almost perfect mail service we have enlarged the scope | and activities of the matls. We have | mail insurance, we have a postal sav- | ings department and a money order | system and these last two are virtually a banking system. Again, we have the city delivery serv jce. In the business parts of cities, mails are delivered sometimes as often | as six times a day. In the residence parts of citles, it is delivered at least| once and sometimes twice. Letters are mailed from doors of residences and they are delivered to the doors of resi- dences. Again, we have the rural free deliver! system. This was established in 18 It was first established as an experi ment under a bill offered by the Hon orable Tom Watson of Georgia, now deceased. It became a success almost from the beginning and has been en- timated. It is of value to the city people and to the country people. The parcel post system is not yet absolutely self-sustaining, but in a short period of time there is no doubt it wWill become such, and even now the losses on it are comparatively small. The parcel post rates should not be increased, but the Congress should promote and foster this service as it promoted and fostered the rural free delivery service. The two go hand in hand. The transportation of everything that goes through the mail is never-ending. It goes on night after night, week after | | week, month after month and year after | yea 3 The malls never stop. The busi- ness of the department goes on forever. The marvelous thing about it is that out of the billions of pieces of mail transported every year, it is the rarest thing that a piece of mail or anything of value going through the mails lost. I believe that it s the moét per- fect system of transporting of mail and parcels in all the world. Employes of Department. To carry on this great business estab- lishment of the Government, it requires the services of over 371,000 employe: These employes are selected in competi- tive examinations conducted by the Civil Service Commission, with the strictest requirements for every part of the service. The result is, that under this Civil Service Commission, one of the most_efficient, most successful business personnels in' the world has been de- veloped, There is no department in the Government that is as efficiently run as is the Post Office Department of the Government. Irrespective of _politics. this department during the entire time that it has been established, has been uccessfully managed and controlied. 1 elieve there are no finer set of em- ployes ever gotten together than the employes under the Post Office Depart- ment. They are ambitious, they are industrious, they are intelligent. and are fmbued with a loyalty and zeal for the service that is remarkable. For a long time the Government did not per- | mit them to organize into societies, but | in 1912 this rule was changed by the Congress and now we have post office associations of every kind, and not only have the employes been benefitted | but the service of .the department has been made better and more efficient in a remarkable degree. larged from time to time. "n As I have already pointed out there | has been a deficit in the postal ravenues 25,000,000 Daily. | of the Government, 125 eity s o7 e Until now mail is delivered daily 0| 140 years of. our history. There was a over 25,000,000 people living in the 'smail surplus in one year of Andrew country, mostly farmers. The value of | johnson's administration; there was a this system for educational purposes,|small surplus in each of ths two years for news, for pleasure and for proft to of Arthur's administration. There was country people cannot be estimated. It a surplus in the one year of Taft’ is one of the wonders of the American |ministration. As I have pointed out be- Government. It cannot be excelled. | fore in Mr. Wilson's administration It costs a little more perhaps than its | there were very considerable surpluses revenues, but such a cost is infinitesimal | in six out of the eight years. -In 1918 and deserves no consideration by any |there was a surplus of $64,000,000 and intelligent person, in 1919 there was a surplus of $73,000,- Then comes the parcel post system.|000. However. in Mr. Wilson's last ad- This was established in 1912, when I | ministration thefe was a deficit of $17, was a member of the House of Repre- | 000,000. In the first year of Mr, Hard- sentatives. It saves the American people | ing’s administration there was a deficit many millions of dollars in freight rates | of $157,000.000. In the second there on parcels. It started out as a success was a deficit of $60.000,000. And since from the beginning and its value to the | that time there has 'been a deficit American people can hardly be e of from $30,000,000 to $40.000,000 every “My one idea was te keep off my feet I never knew when they'd fail me. Finally my doctor recom- mended these shoes. Now my Jeet never hurt me at all.” F your feet dre in a weakened con- dition . . . if they throb with pain, you’ll find quick relief with Ground Gripper shoes. Ground Gripper shoes are a positive assurance against painful, aching feet. Not only do Ground Gripper shoes provide complete freedom of movement to the foot muscles, but they permit you to walk naturally, as Nature intended. W ear Ground Gripper shoesand you’ Il enjoy slipper~time comfort all day long. . . OnlyGroundGripper shoes combine the following vital principles of the correctly built shoe: 1. The Flexible Arch, which allows the foot muscles to exercise and thus & strengthen themselves with every step. 2. The Straight Inner Line, permitting the toes to function with a free, strong, gripping action. 3. The Patented Rotor Heel, which helps you toe straight ahead, the normal, natural way. Ground Gripper shoes have helped thousands of foot sufferers. ..and they’ll help you, too. At the nearest Ground Gripper store is 2 man who will understand your feet and your shoe problems. Consult with . him today. That’s the surest way to % obtain immediate and permanent relief. Ground Gripper Shoes FOR MEN, WOMEN AND CHILDREN STACH’S GROUND GRIPPER SHOE SHOPPE l {year. In 1929 there was a deflcit of $95,000,000, so that we see even if there is_a $95,000,000 deficit and even if there should be a large deficit for 1930, it will be nothing unusual, and not as large as the deficit jn 1921, There is nothing to be alarmed about | over this deficit, and there is no trouble | in the department. It is still doing the | best and most efficlent work of any de- partment of the Government. ‘The pressnt officials of the Post Office Department are in no sense to blame nor were the former . officials of the Post Office Department to blame, I believe they have given at all times, in Democratic and Republican administra- tions, good, efficient, faithful and hon- est service. So far as I can determine | the present Postmaster General and his yofficial family are all rendering good | service. Cause of Deficit. The cause of the deficit is, in my udgment, due to several things. First, | t is due to an act of Congress putting |1t in the power of the Interstate Com- merce Commission to raise the rates of mail paid to the railroads. As every one knows the Interstate Commerce Commission, as it is at present organ- iz>d, i3 exceedingly generous to the rail- roads in fixing rates. The Congress made a mistake in granting the power lto this commission to regulate posta! { rates. The service could be better served | and more efficiently served if the Post- j master General had the power to make rates by contract with the various railroads carrying the mall, In 1909 the rallroads were paid $49,. 000,000 for carrying the mail. In 1919 they were paid $84,000,000; $113,000,000. These-increases are en- tirely out of line for the services ren dered and, in my judgment, the act giving the Interstate Commerce Com- mission_jurisdiction over postal rates should be repealed and in that way a very considerable part of this deficit could be wiped out. In the second place, the Congress passed a law & short time ago giving the Postmaster General the pover o grant subsidies to the steamship lines for carrying foreign mail. The wisdom | of this subsidy system is exceedingly doubtful, As now being carried on, it is very expensive. It has now_trebled the cost of our foreign mail. In 1929 we spent over $17,000,000 for this serv- jce. 'This matter should be carefully recanvassed by the Congress and greater savings would be manifested by our Government. In 1917, as I recall, I introduced into the post office committee of the Senate an amendment to the post office bill, providing for the appropriation of $100,000 to try out an air mail system between Washington and New York. After the act had been debated in the Senate this provision was adopted and became a law and the route establish- ed. From that humble beginning our r mail service has constantly grown | than $11,000,000 on our air mail. returns from the air mail service have bren very meager. and so it we deduct to have paid the railroads. the amount of subsidies for the foreign mail. amounts spent for the building up of our air mail from the deficit of $95.000 000 in 1929, it will be seen that we have reduced the deficit in a very large degree. Tn my judgment if anv changes are to be made in order to lessen the deficlt the chances should be made in these | three activities. However. the normal | increase in_the revenues from the mail { everv vear is about 7 per cent. and here | would be another $49,000.000 that would | | b> taken from next vear's deficit, pro- vided only that we did not increase the expense: Pay of Employes. It has been constantly urged at all| | times that the Congress has beem in, error in overpaying our postal employes. and that this is one of the causes of fhe defcit. Tn a sence that s true. In| another sense it is wholly untrue. Tt i8 true that the Government pavs its postal employes well. I think the aver- | age salary pald is something. like| 182.000, but the employe gives value received for his salary. These em- | ploves, drawing good ~salaries, have ! built up _the service in a marvelous de- | gree. and under no consideration should { there be a thought of cutting the sal- eries in our post office service. j have suggested that we increase first | | | class postage from 2 to 3 cents. course no one with knowledge of our BRAND STEEL COT COFFEE Leveming corFEES™ BALTIMORE, MO. in 1929, | and this past year we have spent more | our | the excess amounts that we ought not Others | stal system would suggest this for a | moment. At a 2-cent rate there is an enormous profit of about one hundred million dollars in first-class mail matter, and, of course, it would be unfair and unjust to place a greater tax “P"“ +his class. And there isn't a possibility of it. Others have suggested that the deficit could be lessened by making second and third class matter pay a greater rate. The Congress tried that in 1925 and raised the rates on second and third class matter, and instead of increasing the revenue that year it diminished it. In other words, this matter that had gone through the mails was taken out of the post office system and transport- ed by trucks and other methods of transportation. Frequently uninformed persons give as oné of the causes of the deficit the cost of free mail served to Representa- tives and Senators. The cost of this frank is just one-half million dollars. In other words, if Representatives and Senators were required to put stamps on the letters the deficit would be $94,- 500,000 instead of $95,000,000. The free malil service presentatives and Senators amounts to about $2.60 each per day. The mere answering of letters to my constituents requires on an aver- age of more than 130 letters a day.' It actually costs the Government to per-i form this service not over $250,000 a for all Representatives and Sen- ator: i Should Not Pay Subsidies. In my judgment the Post Office De- partment, under the decision of the In- terstate Commerce Commission, is pay- ing a subsidy to the railroads of not less | than $25,000,000. If the right to con- EMBER 20, 1929, year. Naturally these subsidies ought not to be charged up against the Post Office Department. If deducted from the loss, and these sums should be de- ducted, would reduce the deficit to about $55,000,000. The normal annual increase of revenue estimated by the late Mr. Stuart, at about 7 per cent an- nually, will next year wipe out' the deficit entirely. All that is necessary is for the department to hold its expenses down to what they were last year. My conclusion is that we have noth- ing to worry about in a deficit of $95, 000,000. Much of the deficit has been spent in building air mails, increasing our foreign mail service and in increas- ing and building up our rural route system. It is in the form of an lnvest-' ment by the Government and wiil be returned to our pecple many fold. Of course, I think the situation can prob- ably be improved by giving the Post- master General the right to make rates with all transportation companies. Hold him responsible for any deficit that may | occur. I believe this will show good re- | sults, and with the annual steady in-! crease of business within a year or two | there will be no deficit of any kind within the tal service. Again I say there is nothing to get excited about in this particular post office deficit, and no reason whatever for raising rates or cutting salaries, Ash Cans tract for rallroad mail rates were re- stored to the department I have no| doubt the department could obtain the same service from the railroads for $25,000,000 less. 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