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Statement showing the effect of increased postal rates, by classes of mail and special services, as proposed in H. R. 3519 and as submitted by the Post Office Department, when applied to 1947 cost ascertainment revenues, based on the volume of business in 1947

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3 No amounts included for additional compensation to railroads due to increased rates resulting from petition filed with Interstate Commerce Commission, Feb. 19, 1947, or for temporary rates on air routes in Alaska, set by the Civil Aeronautics Board after June 30, 1947.

281,896, 380 7,486, 084

93, 500,000 4,700,000

10, 199, 840 101,866 906, 878 5, 280

300, 596, 328 1,291, 008 301, 887, 336

105,200,000 600,000

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Statement showing the effect of increased postal rates, by classes of mail and special services, as proposed in H. R. 3519 and as submitted by the Post Office Department, when applied to 1947 cost ascertainment revenues, based on the volume of business in 1947-Continued

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1 Air mail to and from the armed forces overseas and outlying possessions of the United States included with "Air mail, domestic" for 1947-include 1 with "Air mail, foreign" in
prior years. Expenditures for 1947 include $11,880,429 for estimated additional cost of permanent rates pending establishment by the Civil Aeronautics Board on June 30, 1947, and
also $4,418,703, the estimated cost of transportation of domestic air mail over foreign air-mail routes.

2 Air mail to and from the armed forces overseas and outlying possessions of the United States included with "Air mail domestic" for 1917-included with "Air mail, foreign" in
prior years. Expenditures for 1947 include $10,460,357 for estimated additional cost of permanent rates pending establishment by Civil Aeronautics Board on June 30, 1947.

This concludes the hearings for today, and we will adjourn until tomorrow.

(Whereupon, at 12: 15 p. m., Tuesday, April 13, 1948, the committee adjourned, to reconvene at 2 p. m., Wednesday, April 14, 1948.)

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The subcommittee met, pursuant to call, at 2 o'clock p. m., Senator

Clyde M. Reed presiding.

Present: Senators Reed (presiding), Cordon, Saltonstall, Hayden, and Green.

Also present: Congressman Rees.

POST OFFICE DEPARTMENT

OFFICE OF THE FOURTH ASSISTANT POSTMASTER GENERAL

Senator REED. The subcommittee will now proceed to a discussion of House Resolution 176 of the Post Office and Civil Service Committee of the House.

We have with us today Congressman Rees, the chairman of the House Post Office and Civil Service Committee.

LETTER FROM CONGRESSMAN REES ON RESEARCH AND DEVELOPMENT STUDY

The committee has received a letter addressed from Congressman Rees to Senator Cordon, the chairman of the Subcommittee on Treasury and Post Office.

The letter will be inserted in the record at this point. (The letter referred to is as follows:)

Hon. GUY CORDON,

HOUSE OF REPRESENTATIVES,

COMMITTEE ON POST OFFICE AND CIVIL SERVICE,

Washington, D. C., April 6, 1948.

Chairman, Subcommittee on Treasury and Post Office Appropriations,

United States Senate, Washington, D. C.

DEAR SENATOR: At the time the Post Office appropriation was considered in the House of Representatives, an item of $100,000 was approved for research and development in the mail separation functions of the postal service. This appropriation was based upon recommendations contained in House Report No. 1242, a Preliminary Report on the Survey and Study of the Postal Service, issued by the House Post Office and Civil Service Committee.

The committee has continued its study of the operations of the postal service along the lines set forth in the preliminary report and arranged for Remington Rand, Inc., to examine the present system of the postal service as it relates to mail separation in post offices. Based on their study, it is the view of Remington Rand that sorting methods now general in use in large business organizations are readily adaptable to the postal service.

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