58 $11,000,000. In 1917 a surplus of approxi- by Private How much money, then, does the post office really make? The most recent annual audit shows a surplus of $9,887,397.96, but this financial exhibit credits nothing to Departmental revenues for the service it performs at a loss or for nothing. Neither does it take into consideration the item of rent of public buildings or custodian service, an expense now assumed by the TreasIf we are to follow priury Department. vate business standards and estimate success by the test of profit, then certainly these items deserve a place in such a tabGeneral Let us first review the testimony ulation. Postmaster Assistant of First Koons, submitted at the hearings before the House Post Office Committee, December 5, 1917: Mr. Koon's Testimony Mr. Madden. Based upon the cost price for handling second class matter, what approximate loss does the Department sustain In handling this class of mail at the 1-cent a pound rate? Mr. Koons. On an average of between 6 and 7 cents a pound. Mr. Madden. What approximate amount would such loss entail in the course of a year? Mr. Koons. It is mated at $72,000,000. Mr. Madden. taining? conservatively esti Áre rural routes self-sus Mr. Koons. They are not. What, in your opinion, is Mr. Madden. the expense of maintaining rural service as compared with the revenue received? While the rural service is Mr. Koons. not under my jurisdiction, the appropriation for that service is $53,000,000, and I am informed that the revenue derived from the mall originating on those routes amounts to approximately $17,000,000 a year. Mr. Madden. How many pounds of second class matter were handled last year by the Department for which no revenue was received? what 60,719,202 pounds. Mr. Koons. and under Mr. Madden. Where terms is such service granted? Such service is granted to Mr. Koons. second class mail mailed to subscribers in the county of publication other than the office of mailing and when not addressed to a city delivery office. Mr. Madden. In your opinion, assuming that franked matter was charged the regular postage rate, what would such service total in revenue during the last fiscal year? This information will be furMr. Koons. nished by the Third Assistant. (Note This figure, I learn, is approximately $20,000,000.) Mr. Koons. Has there ever been an inMr. Madden. ventory of the assets of the Post Office Department taken? I understand that such inventory was taken several years ago. What did such inventory Mr. Madden. total and what assets did it include? This information Mr. Koons. furnished later. will be Did it include Government Mr. Madden. buildings or that portion thereof used for postoffice purposes? During the fiscal year 1914, value of this property, based on the rental sults show that the rental value to the was If the Department Mr. Koons. The space occupied for post Mr. Madden. If, in auditing the postal I will ask the Third Assist- The foregoing testimony is worthy of a "But for the business depression occasioned by the European war the Department would have undoubtedly secured a surplus This is in of not less than $18,000,000. marked contrast with the deficits for the eight years of the two preceding administrations, which drained the Treasury of $48,739,639.34 and $24,927,657.40, respectively." As a matter of fact, from the standpoint of social economy it makes little difference in the long run what the price of postage The people are the Government may be. and the Government owns the Post Office. They are the stockholders and they are the patrons. Figuratively speaking, when they buy a stamp they buy it of themselves. If the rates of postage are too high, the people pay the high rates and pocket the surplus. If the rates are too low, the people gain the advantage of low rates and It is simply a matter later pay the deficit. of changing your money from one pocket to another. The Right and the Wrong Policy If the policy of "making it pay," as emphasized in editorial comment, becomes the dominating motive in the post office, then other considerations, whether it be all efficiency, welfare of the employees, or what not, will be twisted to this end. Here is how it would most likely work out in prac First, make a financial survey and estimate the probable amount of postal revThen enues for the ensuing fiscal year. tice: Seventy-four Per Cent Dividend Postal surplus (1917). Surplus $9,000,000 72,000,000 $101,000,000 A profit of $94.000,000 in As a matter of fact, you the surplus, because the men ought to be On the other hand, Postmaster General on by hook or crook in subsequent disbursements proceed to squeeze postal expenditures within the limit of the prospective receipts. Every month scan carefully the balance sheet and if such inventory is not altogether satisfying, twist the screws expenditures a little more. Through this policy the service would be shot through with the one idea of "making it pay," and schemes and plans and systems would be invoked, reaching out in a ramifying squeezing search to the last man in the most far-flung corner of the service, in the mad race for a surplus. The right policy is just the other way In a financial survey ascertain around. what it will cost to render efficient service to the people on terms of decent treatment and fair compensation to the employees, with equitable dealings to everybody else. Appropriations to cover such estimate being available, then go and render such service. If it is desired to make the postal service self-sustaining, to do the thousand and one things that can be done through a wise adjustment of postage rates, or even to create a postal surplus, then let postage rates be fixed accordingly. Efficient service comes first. It is all a question of the right policy. The success or failure of the service, the welfare of the employees, everything, hinges on a sound administrative public policy. As the Atlanta Constitution puts it: "Efclency or profit"; and I dare say that the American public will never endorse a policy of profit for the postal service. Such would be a grievous and unfortunate mistake indeed, founded on an utter misconception of the relations the postoffice bears to the people. A bill was adopted which it was declared "would best serve the interests of organized labor" and the legislative committee was instructed by the federation to work for its early passage as a need accentuated by the war. The measure, prepared by the committee on health, of which Commissioner James M. Lynch of the State Industrial Commission is chairman, provides for compulsory The health insurance, the employer to contribute equally with the worker to the cost. management of the mutual sick funds will be shared equally by the employer and the insured employee, under the general adminis tration of the State Industrial Commission. The development of trade union and fra ternal sick insurance is encouraged, but private insurance companies, operating for profit, are excluded. Result of Referendum on Affiliation with the American Federation of Labor 59 At the Twenty-first Convention of the National Association of Letter Carriers, held in Dallas, Texas, September 3 to 8, 1917, a resolution was adopted instructing the Sec- retary of the N. A. L. C. to apply at once to the American Federation of Labor for a charter for the National Association of Letter After the close of the convention the neces- sary nuber of Branches provided for in Article XV, Section 3 of the Constitution of the N. A. L. C., filed application for a referenclum vote on the question of affiliation with the A. F. of L. In accordance with the provisions of the Constitution the official call for a referendum was issued from the office of the National Secretary under date of referendum were to be made not later than membership was "Shall the action of the Dallas Convention, instructing the Secretary of the N. A. L. C. to apply a once to the American Federation of Labor fe. a charter, The action of the National Convention was sustained by a vote of 23.551 in favor of to 1,971 against. The vote by Branches follows. Those voting to sustain the action of the convention in making application for a charter 540 61 57. 30 597. 624. 916. 454. 8 954. 628. 2 780. 904. 934. 2 1274. 732. 935. 3 1433. 5 1518. 1569. 1746. 276232 184882 924. 4 2 1641. 48. 10 101. 42 4 115. 61 6 62. 419. 1561 735. 1622 1663- 1668. 1546. 870223 543 258. 60 3 264. 2 8 73 23. 504. 823. 222 226. 702 283. 404. 789980287 1423214 17 48 27 21 36 9 28 4 19 4 45 10 3 12 1558. UTAH 150. 13 1518 6 298. 6 Case 3 544. 14 557. 10 575. 2 970- 475 591. 622. VERMONT 696. 725. 37. 255. 16 2 426. 16 9 6 8 SOUTH CAROLINA 1 10 3 4 Majority for affiliation Short Paid and Overweight Mail for in Europe Postage on mail for the American Expe- Matter for the Expeditionary Forces A. M. DOCKERY. Examinations-Second Class Washington, Jan. 23, 1918. J. C. KOONS, 25,522 Recorded in Favor of Increase in Pay for Postal Employees The printed report of the hearings before the special committee of the House Post Office Committee on the question of increasing the salaries of employees in the postal service contains a volume of testimony. One hundred and forty Members of Congress addressed the committee or requested that they be recorded in favor of the Madden Bill (H. R. 1654) and increases in salaries for postal employees. A number of Representatives who favor the legislation called at the committee room, but could not wait to give their testimony, as they had other Congressional duties to attend to. Those recorded in the hearings are: Fraternal Philosophy at Work It may be considered by most of the readers of the POSTAL RECORD as a loss of time and effort to write an article impressing upon the members of the N. A. L. C. the necessity for life insurance. There are but few who do not fully realize that insurance against loss of wages, through accident, sickness or old age, and also insurance for the protection of loved ones when death calls us, is one of the necessities of our modern complex social system and should be classed in importance with the club, the lodge and the church. The great increase in the membership of fraternal insurance associations during the past thirty or forty years is due in a large measure to the displacement of the sordid, selfish cult of individualism by the nobler, more Christlike idealism as represented by collectivism. In former years, before the time of fraternal insurance, when a man died leaving little or no estate it was considered a matter of course that the wife and dependent children would suffer great hardships for years, and would most likely become objects of public or private charity. But when the spirit of fraternalism and brotherly love (the practical kind) began to exert its influence in the minds and hearts of the people, it was preached that no man bad fulfilled the solenin obligations placed upon him until he had made provision for the care of his loved ones when he should no longer be with them. So the idea of the fraternalist was, and is, to distribute the cost of curing for dependents among a large number of persons rather than have the burden borne entirely by those least able to bear it. In many respects the old line and the fraternal insurance companies fulfill the same purpose and the former has some good features not found in the latter. But It should be remembered that the policy holder in the old line pays, for the legion of officers and agents, many of them drawing down high salaries. A comparison of of the cost of management twenty-five leading old line companies and twenty-five fraternal orders shows that in 1914 the former had insurance in force to the amount of $11,987,546,543, at a cost of $46.307,854 for management. The latter carried $6,544,058,302, at a cost of $5,022,912 for management Now, brothers, no one will quarrel with you for carrying insurance in the old line companies or in the many first-class fraternal associations unless you have failed to give thoughtful consideration to the claims of our own Mutual Benefit Association, and for it I wish to make a plea. It is an organization of letter carriersyour organization--and as letter carriers you should give it your earnest and undivided support. Remember, you have a twofold reason for insuring in the M. B. A. You not only provide for the loved ones left behind when the time comes for your passing, but you give strength and power to the N. A. L. C., an organization which secures many benefits for you while you are still living. It certainly would appear to be your duty to give your own insurance order first consideration if you are contemplating taking out new insur ance. With a reserve fund of nearly one-half million dollars there should be no question as to its safety. It is true that a former trustee succeeded in looting the reserve fund of about $37,000, but the Dallas Convention placed such safeguards around the investment of the fund that it will be next to impossible for anyone to commit a like offense in the future. There has been such a shaking-up among those responsible for the funds during the past six or eight years that it is not at all likely that the present or future trustees will stand for any looseness in business methods or allow overconfidence in one man to run away with their sense of duty to the widows and orphans of our deceased brothers, whose future happiness and protection they have in their keeping. If you are not a member of the M. B. A. I would urge you to get in touch with the local collector, or if you have no organization in your Branch I am sure Chief Collector Swartz will be only too glad to assist you to form an M. B. A. in connection with the local Branch if you will write him. To those who are already members, I would ask you to use your best efforts in securing new members, so that you may have the satisfaction of having done a good turn for a brother carrier and at the same time will have strengthened the N. A. L. C. Important Department Order Postmasters Directed to Strictly Observe Eight-hour-inten Law, Compensatory Time Law and Other Laws Office of the First Asst. P. M. General, The attention of the Department has been directed to statements which have been made to the effect that some postmasters are not strictly observing the eight-in-ten-hour law; that, in some instances, the eight hours of duty extend over a period of more than ten consecutive hours; that employees are required to perform service of which no record is made; that employees are not paid for overtime; that they are not granted compensatory time for services performed on Sundays and holidays; and, that in some instances, services performed on Sundays and holidays are paid for as overtime or treated as auxiliary service and paid for at the rate of 35 cents an hour. The attention of postmasters is directed to Section 311, paragraphs 2, 6 and 7, and Section 700, paragraph 1, of the Postal Laws and Regulations, which read as follows: * Sec. 311-Par. 2. "In cases of emergency, or if the needs of the service require, . clerks in first and second class postoffices can be required to work in excess of eight hours a day, and for such additional services they shall be paid extra in proportion to their salaries as fixed by law." Par. 6. "Hereafter when the needs of the service require the employment on holidays of 'special clerks' in first and second class postoffices, they shall be allowed compensatory time on one of the thirty days next following the holiday on which they perform such service. (Act of March 3, 1917.)" Par. 7. "Hereafter when the needs of the postal service require the employ- ment on Sundays or holidays of foremen, watchmen, messengers, and laborers, they shall be granted compensatory time in the same manner as provided by law for clerks and carriers in first and second class postoffices. (Act of March 3, 1917.)" Sec. 700-Par. 1. " Letter carriers in the city delivery service shall be required to work not more than eight hours a day: Provided, That the eight hours of service shall not extend over a longer period than ten consecutive hours, and the schedules of duty of the employees shall be regulated accordingly. "In cases of emergency, or if the needs of the service require, letter carriers in the city delivery service can be required to work in excess of eight hours * a day, and for such additional services they shall be paid extra in proportion to their salaries as fixed by law. employment on holidays of * "Should the needs of the service require the employment on Sunday of letter carriers in the city delivery service the employees who are required and ordered to perform Sunday work shall be allowed compensatory time on one of the six days following the Sunday on which they perform such service. "Provided, That * when the needs of the postal service require the * and letter carriers in the city delivery service, the employees who are required and ordered to perform holiday work shall be allowed compensatory time on one of the thirty days following the holiday on which they perform such service: Provided, That for the purpose of this act holidays shall be New Year's Day (January first); Washington's Birthday (February twenty-second); Memorial Day (May thirtieth); Independence Day (July fourth); the first Monday in September, known as Labor Day; Christmas (December twenty-fifth); and such other days as the President of the United States may set apart as fast or thanksgiving days. (Act of July 28, 1916.)" The provisions of the law as set forth in the above-numbered sections must be complied with strictly by all postmasters of the first and second class. J. C. KOONS, First Assistant Postmaster General. (The above instructions to Postmasters were printed in the Daily Bulletin of Orders affecting the postal service, issued by the Post Office Department on January 31, 1918.) Let Majority Rule From the time of Adam, as the world daily grew older, the world daily grew progressive, and as the world progressed wonders came to light and innocent ideas became large movements, until today even our beloved nation, the guiding star of democracy, is employing methods that a few weeks ago would have been considered most too radical to be employed in amassing this nation in a wonderful harmonious machine to solidify itself to defend its democracy and the rights of its citizens on land and sea. Who, a year ago, would have thought of Government control of all our railroads, and yet, who is there today can say that this radical move is not a progressive move? And yet there are many other presumably radical actions being taken that are not in reality radical, but progressive propaganda, and so we must give all subjects, both those that affect us directly and indirectly, a wide scope of thought, with the one sole purpose, and that is to manage our interests in the most democratic way obtainable. We, as an organization, banded together to promote the interests of the Letter Carri ers, and simultaneously for the best interests of the Government, are no doubt proud of the National Association of Letter Carriers and its achievements in the past, but we are by no means a perfect organization, for we too can initiate new reforms that will have a tendency to bring the control of the Association directly to the membership at home and allow the majority to rule. Forgetting your favorites in the national official family, and forgetting the many favors this or that national officer has bestowed upon you as an individual, or anything else that might have a tendency to bind your undivided support for any man for a berth in the official family, and even, if you will, admit that our present national officers are the best that can be obtained to fill their positions, let us give the subject of the direct election of national officers a true, earnest and unbiased study, Then, of you consider some of the testimony you read herewith, and with noticeable happenings at conventions that we shall say might have come to your attention, I believe you too will say if it does no good, surely it can do no harm. It might interest the members of the National Association of Letter Carriers who have never attended a national convention to note how we really elect our national officers, and it will no doubt be interesting to the past representatives from small burgs to recall these facts, and those facts in a few plain words are these. Out of a membership of about 35,000 members we send about 600 to a convention, who represent approximately 2,000 votes on election of officers and roll call votes, etc. Out of these 600 delegates we have two or more rings, whose first thought and last thought at a conventions is politics. Two, three or four delegations from large cities get together, form a ring, generally called the administration, and name the ticket that goes through like greased lightning, and a few smaller cities form with a few one-man delegations and form a ring to fight the Big Slate, and in the meantime the balance of the delegates are hanging around with their mouths open, awaiting to see if the Standpatters are going down to defeat or if the Insurgents are going to get a wallop on the puss that will send them to sleep for two more years. This generally lasts three or four days, and then they all get together and push through the business of the convention with a whirlwind sweep to get home on their scheduled time or to continue on a tour of that particular section of the country. a This whirlwind business transacting is not the proper method of doing business, nor can the proper consideration be given the important issues that arise. The result is that after the convention is over the sentiment of the membership has not been expressed and there is much danger of delegates voting at the will of the successful candidates, so that in the future they will have a chance of special attention from these successful candidates. Then again; remember the membership of the N. A. L. C. is indeed too large to crowd into a hotel room about midnight, with scouts on duty to frame the ticket and elect them by passing a slice of pork here and there. The writer knows whereof he speaks, for he too has been in on these midnight caucus parties and has used the vote of the man back home to frame a slate. This condition, however, was forced one, in which it became necessary to fight fire with fire. The man who is fortunate enough to control the voting power is not to be blamed, but to be admired, for he is a politician and the power that he has is placed in his hands by you, and he will contine to use this power until you, the individual member, take it from him. He cannot be expected to ask for reform, for reform will clean him of this opportunity. Therefore, brothers, give this your most careful consideration and voice your sentiment. It may seem radical, but I contend that the membership at large has judgment enough to select the national officials by a direct vote. This will elininate politics from the convention and an official will be judged by his actions at the convention and the worthy deeds he bas performed in the past for the interests of all concerned. This will leave 24 hours out of each 24 hours of the convention to be used for the benefit of the whole Association and will urge national officers and also subordinates to give the best that is in them, so that efficiency will select them and not a hatful of proxies. It will also give a carrier in a small country town as much responsibility and power as a man in New York, Pittsburgh or Chicago. Then, and not until then, can the views and wishes of the majority be expressed. Let majority rule with its wand of power and with as much power as it has at its disposal. Pittsburgh, Pa. Notice BEN F. METZ. Washington, Jan. 16, 1918. Complaints continue to reach the Department from subscribers to the Official Bulletin that it fails to reach them with regularity. This publication is published by the Committee on Public Information, Washington, D. C., and is mailed daily by the Public Printer. It should be handled with the same care and expedition as are accorded daily newspapers, and all postal employees are directed to see that there is no delay in its dispatch and transmission. OTTO PRAEGER, Second Ass't P. M. Gen. How many families have you known who were kept together after the death of the bread-winner by reason of his thoughtfulness in providing life insurance? |