last four months has been at the rate of $100,000 per annum. This rate of expenditure will make necessary a deficiency appropriation of $75,000 for the current year, and an appropriation for the fiscal year ending June 30, 1885, of $1,100,000.

FINES AND DEDUCTIONS.

The amount of fines and deductions from all branches of the service for the year ended June 30, 1883, was $214,992.70, and the remissions for the same period amounted to $21,475.77, leaving the net amount of fines and deductions for the year $193,516.93. (See table marked F.)

MAIL EQUIPMENTS.

During the year ended June 30, 1883, $199,489.04 was expended for mail bags and mail catchers, including repairs and mail-bag labels and label cases, the appropriation therefor being $200,000.

The appended table (marked O) shows a detailed statement of such expenditure. By reference to that table it will be seen that the total number of mail bags of every description purchased amounted to 130,000, of which 15,000 were locked pouches for letters and other mailable matter of the first class, and 111,500 were mail sacks for printed and other mailable matter included in the second, third, and fourth classes; that $45,212.53 was expended for repairs (the total number of mail bags repaired being 529,320), and $4,938.75 for mail catchers, including repairs.

Mail bags, from their peculiar and distinctive character of manufacture, necessarily consume considerable time for making. Their material, whether leather or canvas, being manufactured, as it is, for that purpose and no other, they are not to be had at any time and in any desired quantity already made, as if they were common commodities in the market, but can only be procured some months after previous orders for their manufacture and delivery. Hence a suitable surplus or reserve stock, made in advance of immediate wants, was hitherto prudently kept collected at depositories convenient for speedy distribution, when drawn upon by requisitions from the Department to promptly supply all sudden emergencies and immediate requirements of the service. But the appropriations made in the last few years for mail bags proved to be madequate to replace the continual reduction from wear, tear, and decay, and at the same time supply the rapidly-increasing demands occasioned by the unceasing and extensive growth of the service, especially on railways, without depleting the reserved stock. The speedy replenishing and future maintenance of such reserved stock, now almost exhausted, is a necessity which will require an appropriation for mail bags and mail catchers for the ensuing year, exceeding that of the current year, the amount of which being $220,000.

The continually increasing quantities of documents, blanks, blank books, and official supplies sent daily from the several executive departments to different and often distant places in the United States, besides the public documents sent from the Capitol, contribute in no small degree to the growing demands for canvas mail bags, and to their wear, tear, and destruction. By reference to the appended table (marked P) it will be seen that $24,999.52 were expended for mail locks and keys during the year ended June 30, 1883, the appropriation for the same being $25,000.

During the year all postmasters and postal clerks were furnished with keys, safety chains, and full instructions for the new general mail locks which went into use on September 1, 1883, simultaneously throughout the postal service, in place of all the old locks withdrawn as unfit for further use. Accompanied herewith is a tabular statement (marked N) of all contracts for mail equipments in operation on the 30th of June, 1883.

It is estimated that for the year ending June 30, 1885, the following amounts will be necessary for expenditure:

For mail bags and mail catchers.
For mail locks and keys

$250,000 25,000

CLERICAL FORCE.

In my preceding report and estimates an addition to the clerical force of this office was not asked for, because I believed that the work could be performed up to June 30, 1884, with the present quota.

On account of the increase of business I am obliged to request that the following additional clerks be furnished: One clerk of class four, who, in addition to his other duties, shall have charge of the library; one clerk of class three; two clerks of class two; two clerks of class one, and one assistant messenger, at $600 per annum.

The importance of the duties required of the principal clerk in charge. of the division of mail equipments justifies the recommendation that he be designated as chief of the division of mail equipments, at a salary of $2,000 per annum. If this recommendation is adopted, one clerk of class four can be dispensed with.

RAILROAD SERVICE.

The most potent factor in the phenomenal development of the vast resources of the United States is the railroad system. It has released the great wealth of the mountain-locked regions, and brought to market the already immense and growing productions of the broad and fertile prairies of the great West, thus making these sections of the country desirable and profitable fields for the employment of energy and capital. The railroad system was inaugurated in 1830, with a span of 23 miles; it has grown for the subsequent decades with the population of the country. From 1830, at an increase of 281 miles per annum, to 2,818 miles in 1840; from 1840, at an increase of 620 miles per annum, to 9,021 miles in 1850; from 1850, at an increase of 2,142 miles per annum, to 30,635 miles in 1860; from 1860, at an increase of 2,227 miles per annum, to 52,914 miles in 1870; from 1870, at an increase of 1,075 miles per annum, to 93,761 miles in 1880; and from 1880, at an increase of 10,000 miles per annum, to 123,671 miles in 1883.

The use of the system for the transportation of the mails has been nearly equal to its mileage; and the cost of such service now constitutes about one-third of the total expenditure of the Post-Office Depart ment. At first sight it might appear that there was growing up a very expensive branch of the postal service, constantly ramifying, adding to its cost, and eating up the largest share of the postal revenues. But we must keep in mind the fact that it is the extension of the railroad system that is the very cause, in great part, of the increased revenue of the Department. And what is more significant is this further fact that an examination of the figures here with presented will reveal that there

CHART SHOWING THE RATE OF INCREASE IN THE RAILWAY SERVICE, AND COST OF THE SAME. inch to 1,000 miles.]

[Scale

N. P.-The increase in mileage in past two years is but a trifle under the total mileage in 1862.

has been no material proportionate increase. Indeed, considering the volume of the mails, and greatly increased facilities provided, there has been an actual diminution in the cost of railroad service as compared with the revenues of the Department. The situation may be clearly understood by reference to the preceding chart, from which may be seen at a glance the relative increase of the service and cost.

It is therefore worthy of note in this connection that the rapid displacement by railroad transportation of other modes of conveyance is concurrent with the most satisfactory proportion that has ever existed between the revenues and expenditures of the Post Office Department. The cost of railroad service has increased from June 30, 1879, to June 30, 1883, from $9,567,590 to $13,888,799-about 45 per cent. The revenues of the Department for the same period grew from $30,041,982 to nearly $45,500,000-about 50 per cent.

It will thus appear that increased use of the railroads for postal purposes is consistent with increased postal revenues. Therefore, accepting the experience of the past as a guide to the future, it may be concluded, other things being equal, that the relative proportion of increased railroad service and increased postal revenues will continue. For general but almost indefinite governmental protection society must respond in taxes, and for the assertion of personal rights in the courts the individual must pay roundly. But in the superior postal facilities enjoyed by the widely spread population of this country at so small a cost is found the one governmental relation in which the citizen is constantly reminded that a great establishment is maintained for his convenience and interest without any sacrifice on his part. And so viewing the postal service, I have extended it to every point where needed, and exercised vigilant care to advance its efficiency and increase its useful

ness.

The railroad service now aggregates 109,827 miles, of which 24,500 miles, or 20 per cent., has been established since June 30, 1880. The increase for these three years is greater than the total railroad service in operation on the 30th of June, 1858, the close of the first 28 years of the system. These data show not only the enormous growth of the service, but also indicate the great care and responsibility devolving upon this office in the arrangement of the routes, the adjustment of the rates of pay, and the conduct of the business incident to the expenditure, through so many channels, of more than a million dollars a month, or, as already stated, about one-third of the total expenditures of the Department. The items for which this expenditure is made are given in detail in table. The complete publicity thus given to the details of this business is the outgrowth of a sentiment prevalent in this country as to the right of the people to a full knowledge of all transac tions affecting the public welfare.

PACIFIC ROADS.

The decisions of the courts, and the First Comptroller relinquishing to the Pacific Railroad companies operating subsidized lines all sums earned on subsidized lines leased or operated by them, requires a direct expenditure out of the appropriation for railroad transportation of over $600,000 per annum. This item has been particularly explained in the late annual reports, but was not included in the estimates; consequently these decisions carry with them the necessity for an additional appropriation for the current fiscal year, 1884, and also constitute an im

portant element of cost to be provided for in the estimates and appropriation for 1885.

STATEMENT.

First. Cost of transportation on all routes, on which rates have been
fixed, to June 30, 1883, by Post-Office Department books..
Cost June 30, 1882 .

Increase for 1883 over 1882 ...

Rate of increase, 8.77 per cent.

New routes June 30, 1883, unadjusted, 7, 234 miles.

Second. Cost June 30, 1883.

Estimated on 7, 234 miles

Less amount earned by and withheld from Pacific roads indebted to the United States

Total..

This total represents the cost for which direct payment must be made. Third. Appropriation for 1884

Cost June 30, 1853....

Excess available for increased service for 1884

Fourth. Cost, Auditor's statement:

To June 30, 1883, paid $11,579,172.66; unpaid, $423,992.92
Cost June 30, 1882

Increase for 1883 over 1882.

Rate of increase, 12.57 per cent.

ESTIMATES.

$12, 288, 799

11, 297, 333

$991, 466

$12, 288, 799 225,000

$12, 513, 799

823,748

$11,690, 051. $11,725,000 11,690, 051

$34,949

$11,579, 172 66 10, 286, 085 00

$1,293, 087 66

The increase length of routes for the year ending June 30, 1883, was 9,264 miles, or 9 per cent. more than the mileage June 30, 1882, and the system continues to expand in about the same proportion. The total increase for the three years ending June 30, 1883, reaches the enormous result of 24,500 miles, about equal to the circumference of the world. It should be borne in mind that this unprecedented extension of the service represents a corresponding distribution of population, and tends to greatly increase correspondence and consequently the postal revenue. By the decisions mentioned the actual cost is not increased as the sum involved was placed to the credit of the companies indebted to the United States. Now, however, such earnings are to be paid to the companies, and must therefore be considered and provided for in the estimate and appropriation.

1884.

It is clear therefore that the $11,725,000 provided for the current year is insufficient, being but about the cost on June 30, 1883. Adding thereto 8 per cent. (or $935,200) for extension of routes and expansion of service on old routes, and $12,625,200 is reached, which is the amount that will probably be required for the current year.

ESTIMATE FOR 1885.

Accepting $12,625,200 as the proper basis, being in accordance with the experience of recent years as to the growth of the service and cost, and allowing for the usual increase at 8 per cent., and the amount re