Postal Pay

Congressmen, working in the shadow of the gavel which terminated the last session of the 68th Congress, finally passed a bill to increase postal pay and postal rates.-- The last fierce struggle took place in the Senate. A score of Senators rose to denounce the bill. Particularly bitter were they because it provided a two-cent service charge on every parcels post package--a charge which they declared was robbery of the farmers. A roll call was taken. The bill passed 69 to 12. The twelve negatives came from Senators Borah, Brookhart, Howell, Norbeck--Republicans ; and Bruce, Dial. George, Glass, Harrison, Pittman, Swanson, Underwood--Democrats. The Bill. The chief features of the bill are: 1. Pay increases for postal employes, averaging $300 each and totaling $68,000,000 a year, to become effective retroactively as of Jan. 1. 2. Increases of postal charges, estimated to yield $60,000,000 a year, effective Apr. 15, and consisting, in chief, of an increase from 1c to 2c on postcards; practically no change on second-class mail (newspapers and periodicals) except that the rates on religious, educational, scientific, etc., publications was increased 1/4c a pound to equal the rate on reading matter in other publications; an increase from 1c to 1 1/2c on each two ounces of third-class matter (books, circulars, etc.) ; a service charge of 2c apiece on parcels post.

The Strategy. The President having declared his opposition to an increase in postal pay without a corresponding increase in revenue, it was incumbent upon Congress to provide an approximately equal increase of revenue if the bill was to become law. Congressmen had a choice of passing a bill which would fulfill their promises to postmen-voters, which every one knew the President would veto, or of passing a bill which would satisfy the President's demand for revenue, but would offend various users of the mails. The House favored the latter course. The Senate was inclined to the former. The publishers had risen in violent protest when it was suggested that their rates be raised. Both Senate and House yielded to them. Farmers' organizations protested against raising parcels post rates. The House decided to risk the farmers' wrath. The Senate was less inclined to. The House had its way.

So the bill went to the President. He summoned General Lord, Director of the Budget, to tell how much the bill would cost. Because the pay increases are effective as of Jan. 1 and the rate increases of Apr.15, General Lord calculated that the bill would cause a deficit of about $22,000,000 this year. Nonetheless, the President decided that it was the better part of political discretion to sign. The bill became law.

-- History of the measure: Pay increase (without rate increase) passed by Congress in the spring of 1924; vetoed by the President last June; veto sustained by the Senate in January. Senate prepared a pay and rate bill to provide $40,000,000 revenue increase to meet $68,000,000 pay increase; rejected by the House on the grounds that the Senate had no right to initiate a revenue bill. House passed a new pay and rate bill, providing the same pay increases and rate increases of about $60,000,000; Senate amended this bill by substituting the bill which the House had rejected; joint conference held and the House provisions in large part were reincorporated; passed by the House; finally accepted by the Senate.