Douglas Daily Dispatch

President Hoover Probes Deficits In Post Office Dept.

WASHINGTON, July 8 (P)—Uncle Sam's unprofitable postal business engaged the attention of President Hoover today at a conference with Postmaster General Brown and the four assistant postmasters general but raising mail prices was not discussed as a means of reducing the huge annual deficits.

The president called for a more accurate determination of what the White House referred to later as the mounting deficits," and for means of effecting economies. To Assistant Postmaster General Tilton, who supervises the department's fiscal affairs he entrusted the task of a thorough survey in the interest of reducing expenses.

After the meeting, Postmaster General Brown said problems had been discussed, especially as they related to means of making the department more self-supporting and to the air mail. As to the first, he suggested two solutions—increased mail volume and cheaper contracts for its transportation.

In announcing what had occurred, the White House emphasized there had been no discussion of the possibility of meeting deficits by increases in postal rates.