Comparative statement showing total length of railroad routes, &c.—Continued.

*No separate appropriation for R. P. O. cars prior to 1880.

The appropriation for special facilities having been increased by the Congress at its last session with a view to increase the rapidity of transit to Tampa, Fla., and facilitate the Cuban service, arrangements were made accordingly to begin on the 8th day of August, since which time the northern mails have been delivered at Tampa in the evening of the day of their arrival at Jacksonville, instead of the afternoon of the following day as heretofore. The addition thereby of annual cost to this item is $39,281.49. Otherwise the appropriation is disbursed in the same manner as last year, the particulars of which are stated in the appendix. There ought to be a still further reduction in the time between Washington and Tampa, so that arrival at the latter place of the mail train should not occur later than 3 o'clock in the afternoon of the second day from New York, enabling the mail steamer to reach Havana before sunset of the following day. It is believed this may be soon effected. Unless it shall be, continuance of this appropriation is of questionable expediency.

In the report of last year it was stated generally that an examination had shown me that for years extra payments had been made to some railroad companies for the use of apartments less than forty feet in length and in other than railway postal cars; that they were believed to be unwarranted by law, and that the Second Assistant had been directed to prepare a tabular statement of the facts, to be annexed as an exhibit to that report. That inquiry, when carefully pursued, developed payments of this kind to a greater number and amount than was supposed when that report was written, and it proved impossible to satisfactorily complete the investigation in time to prepare the promised statement for annexation to it. The tabulation was subsequently finished and submitted to the Congress, and is appended hereto in con

nection with the Second Assistant's report. It was disclosed that pay ments aggregating, up to the 30th of June, 1885, $979,959.67, had been thus unwarrantably made, and that the annual rate of charge then borne by the Department on this account was $80,161.73. This expenditure was at once discontinued, and the Congress approved the action by reducing the appropriation accordingly. Some discussion arose between the Department and the companies concerned, but with one exception all acquiesced when they ascertained the state of the law, and continued to furnish the service as it had theretofore been. The Boston and Providence Railroad Company has denied the use of apartment cars, in disregard of the obligation of the statute.

Another correction in the practice of the Department was made during the past year by giving full effect to the thirteenth section of the act of July 12, 1876 (19th Stat., 82). which requires that every railroad, constructed in whole or in part by a land grant of the United States on condition that the mails should be transported thereon at such price as the Congress should by law direct, shall receive but 80 per cent. of the compensation authorized to be paid to others. Inquiry disclosed that many roads within the purview of the act had been erroneously paid full rates, and careful examination and computation fixed the amount of such excessive payments since the enactment at $69,647.91. This sum has been deducted from the amounts due for current service to the roads affected, in the amounts respectively recoverable from each of them, and their rates of compensation adjusted in accordance with the statute. The saving in annual expense so effected is $12,176.07. The details of this reclamation and reduction in annual charge, with the numbers of the routes and names of the companies affected, are set out in the appended report of the Second Assistant.

On the other hand, the rate of money expenditure for railroad transportation has been enhanced by the decision of the Supreme Court that the mail earnings of the lines of road which constitute a part of the holding of the Central Pacific Railroad Company, but which were not part of its subsidized road, cannot be claimed for credit upon its indebtedness to the Government, but must be paid. The annual rate of charge within this determination is above $231,000 on account of the Central Pacific Company alone. In view, however, of the action of Congress at the last session, no payments have been made on this account.

The conviction will force itself upon the mind of every careful inquirer, it may be safely affirmed, that the present method of measuring the compensation to railroads for mail transportation is clumsy, unequal in effects, difficult of satisfactory adjustment, and by no means fixed upon a true basis. The subject deserves early consideration. The evils and inequalities of the present system increase with the increase of railroads and mails, the difficulties of adjustment become more trying, and the

peril of serious inconvenience to the service is far from inconsiderable. There appears no just reason to believe that a law may not be devised which shall give a proportionable uniformity of compensation to actual service, at a rate alike just to the carriers and the Government, and free, by its simplicity, from difficulty of application or liability to abuse. The desirability of the object, promising, if fairly attained, both satisfaction to the carriers and economy to the Government, renders it an urgent duty of the Department to press its consideration.

The Steamboat Service naturally diminishes in usefulness as railroads are built upon competing lines, affording the peculiar advantages to mail carriage of speed and regularity. An especial attention was due and has been rendered to this species of transportation. The compensation was found to be excessively disproportionate to the value of the service in some cases, and in others a substitution of different methods of supply proved more useful and economical. A reduction of $148,133.04 in the annual charge has been effected since the 1st day of July, 1885, so that on the 1st day of July, 1886, 123 steamboat routes on all our coasts and inland waters, amounting in total length to 10,512 miles, required an annual outlay of but $405,945.68.

The changes of the year added seven to the number of routes of this kind, but decreased the aggregate length by 1,337 miles, as well as the gross cost by the sum mentioned, realizing the expectation expressed in the report of last year, from the partial insight at that time obtainable of the service. The review which has now been made is sufficiently complete to leave opportunity for little, if any, reduction during the current year. Upon the whole, some increase in the totality of cost will probably ensue because of the comprehension within this class of the foreign mail route to Havana.

The act of March 3, 1885, authorized a contract for combined inland and foreign steamboat mail service in one route, when not more than two hundred miles intervened between ours and the foreign office, upon the same terms and chargeable on the same appropriation as a contract for inland steamboat service. If the statute can be made applicable to any other, it was without doubt designed wholly for the Gulf route between the coast of Florida and the island of Cuba. Pursuant to its purpose an attempt was made during the last year to negotiate such a contract, and proposals were duly advertised for. Two only were returned for service between Tampa and Havana, both tendering a semiweekly service, the one for $100,000 a year, the other for $66,000. The price was deemed excessive, and both proffers were declined.

The purpose of the Congress, further manifested during the last session, and the desirability in every aspect, that a highly efficient mail service should be established with Cuba in connection with our Atlantic coast line from New England and New York, induced a renewal of nego tiation, and resulted in a contract for service between Tampa, Key West, and Havana by the new steamer Mascotte, and a consort of equal

excellence, from August 1, 1886, to June 30, 1887, to be rendered three times a week between November 1 and April 30 and twice a week during the residue of the year, on schedules to be fixed by the Department, carrying all mails both ways for $54,450. This service covers and dispenses with that before maintained between Tampa and Key West, at an annual cost of $22,565.74; performs our foreign mail carriage to Cuba and Porto Rico, which, computed in the foreign-mails office at sca and inland postage on the quantity estimated by the weights of 1885 and ordinary increase, amounts to $24,159.07, and also the carriage of the open and closed mails of European countries to Cuba, for which we receive now about $3,500.

In addition, it is anticipated that arrangements will be made to transport the Cuban mails to this country, and to some extent their European mails, and thus add a substantial sum to the receipts of this route. Performance of the trip each way in twenty-five hours is stipulated, and the time between New York and Cuba is already reduced from the four and one-half days required by the sea voyage to three days by this service, besides a greater expedition for all mail originating in the South; and it is confidently expected that within no long period the railroad time will be so accelerated between Washington and Tampa that but sixty hours will separate Havana and New York. So soon as such celerity shall be acquired, in addition to the regularity and security of the new service, it must command the transportation of all mails both ways, and prove not only of high value to business correspondence, but perhaps directly remunerative. Before bringing this negotiation to a conclusion, the two lines of steamships which ply weekly between New York and Havana were solicited to undertake the carriage of our outward mails to the latter port, but refused it at any less price than $500 per trip, leaving the Department little choice.

The arrangements now made are experimental, limited to a short period, and submitted with particularity of detail, in order that, with an easy view of all the circumstances, the Congress may readily provide such other or further directions as shall be deemed most expedient.

The Star Route Transportation has been both improved in character and amount, and reduced in cost during the year past, in a satisfactory manner, by judicious changes and arrangements under the direction of the Second Assistant Postmaster-General. The reduction in the annual rate of cost effected by orders between July 1, 1885, and June 30, 1886, was $301,479, besides other changes to take effect July 1, 1886; and contracts were made during the year for four years, beginning July 1, 1886, in the fourth contract section, by which an annual saving of $238,175.10 was accomplished. The value of this work will be apparent from a few comparative statements. During the year ended June 30, 1885, the increase in annual cost of this service had been $324,863, and on the 30th of June, 1885, it stood at the annual rate, for 12,371 star routes, aggregating 232,222 miles in length, of $5,414,804.

Contracts had been made that took effect on the 1st of July, 1885, which operated to make the annual rate of charge on that day to stand, for 13,428 routes, of a total length of 237,528 miles, at $5,653,660.95. On the 1st day of July, 1886, there were 13,961 routes, aggregating in total length 237,444 miles, at the annual rate of charge of but $5,091,225.28. Thus, between the 1st day of July, 1885, and the 1st day of July, 1886, there was an increase of 533 in the number of routes, a decrease of but 84 miles in their aggregate length, but a decrease of $562,435.67 in the annual cost of maintenance.

During the year 1885 the cost per mile traveled was 6.52 cents; during the year 1886 it was 6.43; and during the current year it must be still further reduced under the provision made for this service:

Contrasting the fiscal year 1886 with the average of the preceding seven years, there was an increase of 5,522,485 miles in the total travel performed on star routes, or 7.11 per cent., a decrease in yearly expense for the service of $573,356, or 9.68 per cent., and of $1.24 per mile of route, or 16.17 per cent.

The results have been attained by careful examination of the service and systematic effort to effect improvement and economy.

The Mail-Messenger Service, though not so great in extent, yet exhibits like good effects of the business care which has been be stowed upon it. On the 1st day of July, 1885, the annual rate of cost for 5,317 routes, aggregating 4,079 miles, was 8879,217. On the 1st day of July, 1886, there were 5,339 routes, an increase of 22, in total length 4,136 miles, an increase of 57, at the annual rate of cost of $831,223, a reduction of $47,994.

Fines and Deductions were imposed on contractors and others in the service, for faults and omissions, as follows:

The Railway Mail Service, its extent, changes, operations, and condition, are so fully presented by the report of the general superintendent, with numerous tabular exhibits, as to require no extended or special comment. "These clearly show," as the superintendent says, "that the service, through the earnest efforts and hearty co-operation