VOL. XXXVI

"The closed fiscal year finds not only
the usual expectations of service well met,'
states Postmaster General Work in his an-
nual report recently made public, "but
records many advances towards increased
usefulness." Thus the general tone and
temper of this report is aptly reflected in
its opening statement. It is a well bal-
anced and comprehensive document. In
proportion to their relative importance
the various activities comprising the postal
service are given thoughtful consideration,
and a studied purpose is manifest to keep
well within the facts in each particular
case. The moderate phrasing that dis-
tinguishes this report, coupled with its
encouraging analysis of postal conditions
and postal progress for the past fiscal year
is such as to inspire confidence and gives
added weight to its several timely recom-
mendations for service improvements. On
the whole, it is an excellent presentation
of postal conditions, well considered in
tone and progressive in outlook, that
promises well for the future of the ser-
vice and the employees.

Postal Finances

While the postoffice is an institution for
service and not for profit, nevertheless the
high importance of postal finances can not
be gainsaid and the report gives first con-
sideration to this item. "In the last an-
nual report special mention was made of
the large deficit," says the Postmaster
General, "and concern was expressed as
to the results of the balancing of revenues
against expenditures of the service."

The

net postal deficit for the preceding fiscal
year amounted to $81,387,387.08. This large
deficit, it is pointed out, was chiefly due
to "legislation justly increasing salaries
and of adjustments of railroad transporta-
The reported postal deficit
tion rates."
for the fiscal year ended June 30, 1922,
totaled $60,815,400.36 or a reduction of
$20,517,986.72 in this item as compared with
the preceding fiscal year. This is a re-
markable showing, when we note that be-
cause of the recent business depression,
postal revenues increased only 4.61 per
cent, during the past year, an increase
measurably below the annual
average.

This 4.61 per cent increase stated in dol-
lars amounts to $21,362,266.01. During the
same period the increase in postal ex-
penditures, according to the report, was
This tabulation explains
only $780,835.92.
how the postal deficit of the preceding year
was so notably reduced and likewise in-
dicates that a sweeping policy of retrench-
ment has been observed.

There is a point, however, beyond which
postal economies may not go without se-
riously injuring the service and the evi-
dence indicates that that point is close at
hand. Summing up the situation in a

single paragraph regarding postal policy
and postal revenues, this report states:

"The Department should not be con-
ducted for profit and should serve the peo-
ple fully, efficiently, and economically, and
should support itself. But if fixed charges
continue at the present level, the revenues
may approximately balance expenditures
only by just and equitable revisions and
readjustments of the rates that produce
the income."

The problem of adequate postage rates
is an essential item in the wise administra-
tion of the postal service, and it is in-
conceivable to the ordinary layman, how
the service can be made self-sustaining on
the present revenue basis.

Postoffice Building Program

a

Directing attention to the steady growth
of the postal service with its present and
anticipated requirements and the urgent
need of enlarged quarters as the only es-
cape from congestion, the Postmaster Gen-
eral renews
for
his recommendation
sweeping postoffice building program. As
the report points out, the adoption of this
building program will not only result in
a vast financial saving to the Government,
but it will also mean better work room and
swing room facilities for the employees.
"The Government may not ask employees to
work under conditions injurious to health,"
says the Postmaster General, "and the
first step this Department must take to
conserve the health of its employees is to
provide better work rooms."

City Delivery Service

On June 30, 1922, according to the re-
port, there were 39,485 regular letter car-
riers in the service. This figure represents
an increase of 953 carriers over the pre-
ceding year which approximates the av-
erage annual numerical increase for the
past ten year period, but 1,437 less than
the preceding year. During the year, the
average annual salary of city carriers in-
creased from $1,697.63 to $1,729. On June
30, 1922, there were 27,853 carriers in the
$1,800 grade.

"The total expenditures for salaries of
city carriers including those in offices
where the service was established during
1922 was $66,986,322, an increase of $3,633,-
861 or 5.9 per cent over that expenditure
of 1921. This is $3,149,479 less than the
increase in expenditures for 1921. For
auxiliary or temporary carrier service the
expenditure was $8,023,068, including $2,-
606,252 for vacation service. This is a de-
crease of $774,380, or 9.65 per cent as com-
pared with the expenditure for this ser-
vice in 1921." Village delivery service is
now in operation in 756 villages employing

NO. 1

1,120 carriers. This service is past the
experimental stage and legislation is ur-
gently need to define its status.
Employment Conditions Concerning
Letter Carriers

The report addresses itself to a num-
ber of questions of particular interest to
letter carriers. In the matter of over-
time the report shows that this practice,
which was stimulated by the shortage of
experienced help during the war, reached
its peak in 1920, when the amount paid
carriers for overtime service totalled $1,-
450,000. In 1922 the same item of carrier
overtime pay amounted to $862,007, a con-
siderable reduction, but still a total much
larger than would appear to be justified
by ordinary emergency requirements. "The
Department has directed the discontinu-
ance of this practice," says the Postmaster
General, "and the restriction of the use
of overtime to emergencies when substi-
tutes are not available, as provided by
law." The report also carries a recom-
mendation urging the enactment of legis-
lation that will increase the hourly rate of
overtime pay by using 306 days of eight
hours as a divisor in determining the rate
as against the present method of computa-
tion.

"Fitness is pre-eminent and should be
considered first in selecting men for as-
signment or promotion, but it should be
closely joined with seniority as a matter
of justice." This is a sound policy whose
observance should be regulated without
discrimination against any postal group.

The report accords recognition of the
undesirability of night as against day
work and conceding the justice of some
compensating differential states that "the
Department is studying some plan by
which a time or rest advantage may be
accorded to those who must work at
night." This is a step in the right di-
rection.

The report also directs attention to the
six months probationary period of new
employees which prior to last March dated
from an appointment as a reglar employee,
but since then begins on the date of ap-
pointment as substitute. The report like-
wise refers to the more liberal regulations
concerning reinstatements which may now
be effected within a five-year period as
against the one-year limitation, hitherto
imposed. Both of these changes are im-
provements over former methods.

Under the caption of conference-conven-
tions, the report refers to the aims and
purposes of these gatherings. The past
year has seen the development of the wel-
fare movement in the postal service, and
the report in dealing with this subject,
emphasizes the importance of the item of
health and comfort of the employees, the
need of adequate work room facilities, the
difficulties of providing same under exist-
ing conditions, and the opportunities ac-
corded
the
employees by
Department
through cooperation with the United
States Public Health Service for periodic
physical examination. Speaking of the
growth of the welfare movement, the re-
port says:

"There are in existence 713 local welfare
councils representing the employees in post-
offices. There is no office with more than