Postal Pay

Like the Deficiency, the Naval Appropriation, and the Muscle Shoals Bills, the bill to increase the salaries of postal employes is left over from the last session of Congress. Whereas the first three remained over owing to the failure of Congress to function, the Postal Pay Bill remained as the result of a late Presidential veto (TIME, June 16).

The President vetoed the bill, saying that it would entail extra expenditures of $68,000,000 for the Post Office. One of his chief objections to it was that it provided no means of recovering this expense by additional postal revenues. Now the bill lies on the desks of the Speaker of the House and the President pro tem. of the Senate waiting to be called up. In the Senate, it is delayed only until the Muscle Shoals question can be disposed of.

All groups admitted that, if the bill were called up soon, it would be likely to secure in both Houses the necessary two thirds vote to pass it over the veto. In the House, it is expected to pass anyhow. In the Senate, only three members voted against it last session; 32 must oppose it now if the veto is to be sustained. Under certain conditions, it is possible that this number can be obtained.

The President's strength in the election has won over a few members to his side. A few, for example Senator Curtis, the new floor leader, who voted for the bill originally, will reverse their vote because of better relations with the White House. Most of the Senators are pledged, however; and the only way they can be prevented from overriding the veto is by offering a substitute acceptable both to the President and to themselves--in other words, a measure providing for both the pay raise and an increase of postal revenue. Senator Sterling, Chairman of the Committee on Post Offices and Post Roads, is now preparing a bill of this sort.

The introduction of the revenue element presents a new problem--the question of which postal rates shall be raised. As an aid in answering this question, Postmaster General New submitted a report on the costs and revenues of the several divisions of the postal service. The report, prepared on the authorization of Congress, cost $500,000 to assemble.

The following table shows the gains or losses per year for each branch of the service (based on 1923):

CLASSES GAIN

Paid First Class Mail $80,418,000

Postal Savings 4,701,000

Total Gain $85,119,000

CLASSES Loss

Second Class $74,713,000

Third Class 16,291,000

Fourth Class 6,917,000

Franked Matter 358,000

Penalty Matter 6,214,000

Free for Blind 27,000

Foreign 4,604,000

Money Order 9,541,000

Registry 10,374,000

Special Delivery 122,000

Insurance 1,146,000

C. O. D 1,825,000

Treasury Savings 222,000

Total Loss $132,354,000

Net Loss $47,235,000

Deducting from this loss some items of unassignable revenue, the actual loss is about $40,000,000 a year, according to this calculation. The obvious thing to do, under such circumstances, is to boost the rates on services which show large losses--wipe out the deficits on second and third class mail and on registered matter. Then not only would the deficit be made up, but also nearly enough revenue would be provided to make possible the proposed pay increase of $68,000,000.

Second class mail, which is the big loser ($74,000,000), consists of newspapers and magazines. On the face of it, this mail is paid for at ridiculously low rates. It constitutes by weight nearly 25% of the matter handled and furnishes only a little more than 5% of the revenue received. It is a part of public policy, however, to grant specially low rates as a subsidy to the press to aid in the dissemination of truth and journalism and all the other benefits of the printed word.

Perhaps this consideration would not prevent Congress from increasing rates so as to wipe out, at least partially, the second class deficit, were it not for the fact that the newspapers and magazines are run by human beings who very urgently resent any curtailment of their profits. The suggestions for raising second class postal rates have been generally confined to increases on the rates for advertising matter* on which publishers receive revenue; but the publishers are no whit appeased. Already, the press is crying aloud that it is abused, saying "the estimate of the second class deficit is too large" and "all other postal rates have been decreased since the War, but we still pay War rates." If the movement to increase second class rates becomes definite, the howl will rise in crescendo.

The Republicans in Congress are faced by a quandary: "We have promised the post office employes to increase their pay. If we don't, they will do for us certainly. We have promised to stand by Coolidge and economy--that means raising rates, second class in particular. If we do that, the press will jump on our necks. Oh, woe is us! Ah, woe is us!"

At Senator Sterling's request, Postmaster General New submitted a proposal for increasing postal rates. His proposal was designed to take only about $10,000,000 from the grumbling publishers, collecting about $66,000,000 additional from the mail-using public as a whole. Publishers at once cried out that even the increase proposed would be ruinous to many a publication. He suggested increase of rates:

FIRST CLASS

Letters (now 2c. an ounce)--no change.

Post cards--from 1c. each to 1 1/2 c.

SECOND CLASS--READING MATTER

Newspapers (now 1 1/2c. a lb.)--no change.

Non-profit papers (now 1 1/4c. a lb.) --no change.

Other publications--from 1 1/2c. a lb. to 2c.

SECOND CLASS--ADVERTISING MATTER

Increase of 2c. per lb. for first, second third zones, of 1c. per lb. for fourth, fifth, sixth zones. No change for seventh and eighth zones.

THIRD CLASS Increase from 1c. for two ounces to 1 1/2c.

(Books, catalogs, seeds, etc. -- no change.)

FOURTH CLASS

Increase of about 2c. per package for each zone, greatest increases in the nearer zones.

INSURANCE

Increase of minimum fee from 3c, to 5c.

C. O. D.

Increase of fees from 10 to 25c. to 12, 15 and 25c.

MONEY ORDERS

Increase of minimum fee from 3c. to 5c.

REGISTERED MAIL

Increase from 10c to 15c. with 3c. fee for return receipt.

SPECIAL DELIVERY

Packages up to 2 lbs.--no change.

Packages 2 to 10 lbs.--from 10 to 15c.

Packages more than 10 lbs.--from 10 to 20c.

* Second class postal rates are composed of two parts: A low flat rate on editorial matter; a higher rate, increasing by zones, on advertising matter. An issue of a publication is brought to a post office and weighed in bulk. The percentage of editorial and advertising matter is then calculated from a single copy. The rates are assessed in proportion and charged to the publisher.