Middletown Transcript

ADMITS HEAVY LOSS
Postmaster-General Says The Sum Will Reach $17,270,482.00
ADVISES A PROMPT ACTION

Washington, D. C., Dec. 12-Operation of the United States postal service for the fiscal year 1920 resulted in a deficit of $17,270,482-the second largest in the history of the service- Postmaster-General Burleson shows in his annual report to-day to the President, in which expenditures of the Post Office Department are placed at $454,322,609 and revenues at $437,150,212.

The postmaster-general charges Congress with direct responsibility for the deficit, explaining that the expenditures included approximately $33,202,600 paid as a war bonus to postal employees and stating that but for this there would have been a surplus of $18,427,917. Mr. Burleson says he declined to approve the bonus action of the legislative department, adding he had offered suggestions of another plan for compensating the employees which would have served the purpose without at the same time giving a blanket increase in pay to thousands who were already amply compensated.

"For reasons that can be readily understood," he continues, "the legislative department rejected these suggestions made by the postmaster-general and hence is directly responsible for the deficit which inevitably followed the indefensible action. * * *

"The postmaster-general feels constrained to point out that if a prompt halt is not called and such a policy is persisted in, there will be a deficiency for the next fiscal year of approximately $36,000,000 and the postal establishment will cease to be self-supporting, as it should be, and will become a constantly increasing burden upon the general treasury."

Reference also is made to the decision of the Interstate Commerce Commission, granting the railways additional pay aggregating $8,103,889 for carrying the mails. This served likewise to offset increases in postal receipts, Mr. Burleson declares.