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This favorable showing is the result of the good contracts made by the Department for stationery supplies.

TWINE. During the fiscal year 1884–85 840,000 pounds of twine were used, while during the fiscal year ended June 30, 1886, but 836,000 pounds were used–4,000 pounds less than were required duriug the fiscal year 1884-85.

This decrease in the number of pounds of twine used, while there was a considerable growth of the service, is accounted for by the fact that during the fiscal year last past the Department insisted on, and got, the number of yards to the pound to which it was entitled under its contracts. It is estimated that by this means 140,000 pounds of twine have been saved to the Department, which would have cost about $11,600. Owing to this saving and the good contracts made by the Department, only 869,632 of this appropriation of $85,000 was expended.

The twine on hand at the close of the fiscal year 1885–86 exceeded in value that on hand at the close of the preceding fiscal year by $1,700, which shows that only 80 per cent. of the appropriation was used.

BLANKS AND BLANK BOOKS.

There were furnished during the fiscal year 1885–86 57,674,302 blanks, as against 51,469,447 for the previous year, an increase of over 6,000,000, equal to 12 per cent.

The number of blank books furnished during the fiscal year 1885–86 was 125,414, as against 87,107 the year preceding, an increase of over 38,000, equal to 40 per cent.

FACING SLIPS.

The Department has a record of 120,644,680 facing slips furnished during the fiscal year 1885–86 as against 65,141,760 for the previous fiscal year. This was an increase of over 55,000,000, or 85 per cent. This does not show the whole number of slips used, nor are the

data at hand from which it can be ascertained, as some of the larger offices, notably New York City, print their own slips, no report of which is made to the Department. It is estimated from the amount of paper furnished that the number must be about 200,000,000.

Contracts were made in September, 1885, by which these slips were printed for 7 cents per 1,000 for the remainder of the fiscal year ending June 30, 1886.

Contracts have been made by which these slips will be printed for 4! cents per 1,000 for the fiscal year ending June 30, 1887.

CANCELING INK. Under existing law, canceling ink should be furnished to all fourthclass offices. These offices numbered, July 1, 1886, 51,349. This ink is put up, usually, in half pound cans, and during the past year 3,600 balfpound cans were ordered and supplied from the Department. It will be observed, therefore, that about 47,749 post-offices were not supplied. This, no doubt, is due, largely, to the fact that postmasters have not inforned themselves that they are entitled to and should be furnisheci with canceling ink. A circular letter has been prepared and mailed to all fourth-class postmasters, embodying in a concise form the rules and regulations on this subject.

PRINTING, BINDING, ETC., FOR THE DEPARTMENT. The following are appropriations and expenditures for the past six fiscal years for printing, binding, &c.:

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The average yearly appropriations have been $164,768.75, and of ex. penditures thereunder, $155,082.27.

SALARY AND ALLOWANCE DIVISION.

As stated in my last report, the most important duties of this division are the adjustment of the salaries of Presidential postmasters, or postmasters of the first, second, and third classes; the consideration of appli

. cations for allowances for clerk-hire, rent, fuel, light, furniture, miscellaneous and incidental expenditures; the examination of the quarterly returns or accounts of postmasters at offices of the first and secoud classes before they are finally passed by the Auditor of the Treasury for the Post-Office Department; the regulation of the salaries and duties of the employés necessary for the proper transaction of the postal business in the larger post-offices; the superintendence and regulation of box rent rates and deposits for keys for lock-boxes; and a supervision of the large and increasing correspondence relative to the subject matters stated.

In addition to the regular and routine duties of the division, the work of reviewing and readjusting the salaries of postmasters at offices of the third, fourth, and fifth classes under the act of Congress approved March 3, 1883, was assigned to it by verbal order of Postmaster-General Gresham, April 7, 1884. This large and important work has been continued under the personal supervision of the chief, and bas been carried on as rapidly as possible with the limited additional force of detailed clerks at command.

The duties of the division have been largely increased, also, by the act of Congress approved March 3, 1883, which requires an annual adjustment of the salaries of Presidential postmasters, to take effect at the beginning of each fiscal year (July 1) instead of a biennial adjustment as heretofore authorized. The third annual adjustinert of the salaries of Presidential postmasters was made upon the basis of the gross receipts accruing at the respective offices for the four (4) quarters ended March 31, 1886. The work of this division has also been increased by the act approved June 29, 1880, to take effect July 1, ISS, which provides that clerks doing money order business at ofiices of the first and second classes shall be compensated from the allowance for clerk-hire as made by this office, and that the commissions accrning on money-order business from the date named shall be returned as a part of the revenue of the Department.

The number of letters received during the fiscal year ended June 30, 1886, amounted to 24,031; an increase of 2,158, or 09.8 per cent., as compared with 1885, and 6,194, or 34.7 per cent., more than the number received for the year 1884.

The number of letters written amounted to 30,105; an increase of 1,773, or 06.2 per cent., over 1885.

Fifteen thousand and eighty-six circular letters were sent out; a decrease of 9,858, or 39.5 per cent., as compared with 1885.

Three thousand four hundred and twelve allowances for clerk-hire were made; an increase of 60, or 01.7 per cent., as compared with 1885.

The number of applications for clerk-hire declined was 1,727; an in. crease of 39, or 02.3 per cent., as compared with the year 1885.

One thousand three hundred and fifty-three allowances for rent, fuel, and light were made, being a decrease of 337, or 19.9 per cent., as compared with 1885.

Six hundred and eighty-eight applications for allowances for rent, fuel, and light were declined, an increase of 161, or 31.7 per cent. over 1885.

The total number of allowances for miscellaneous items made num. bered 4,983, and 2,130 applications for miscellaneous items were declined.

Five hundred and twenty-three allowances for furniture for post offices were made, and 720 applications for furniture were declined.

There were 28 applications for stationery declined. (See page 34 of this report relative to these accounts.)

There were 240 allowances for advertising made, the aggregate amount being $10,376.18, and 214 applications for advertising were declined.

Fifty-seven post offices of the fourth class were reported by the Auditor where the annual compensation of the postmaster amounted to $1,000 for four consecutive quarters, exclusive of money-order commissions. All of the said offices (57) were assigned to the third class, the aggregate salaries of the postmasters thereat making a total of $61,000, an increase of 13 offices and $14,000 for compensation of postmasters as compared with 1885.

The special adjustments of postmasters' salaries numbered 62, involving the aggregate amount of $62,675 for salaries. There were 46 salaries of postmasters reduced and discontinued, making a saving of $47,200.

The total number of salaries of Presidential postmasters adjusted during the year was 2,328, and the aggregate amount involved for sal. aries in all the adjustments was $3,796,375.

The allowances for clerk-hire reduced or discontinued during the year numbered 122, making a saving of $32,864.

One hundred and seven allowances for rent, fuel, and light were reduced or discontinued, making a saving of $40,263.

Since the work of reviewing and readjusting the salaries of postmasters of the third, fourth, and fifth classes, under the act of Congress approved March 3, 1883, was assigned to this division, April 7, 1884, 49,851 applications for review of salaries under the said act have been received and placed on the files of the Department.

The number of applications reviewed and readjusted to date number 28,418; of this number, 10,763 have been allowed, involving the aggregate additional amount for compensation or back-pay of postmasters of $615,479.96.

There were 17,655 applications reviewed and found to be below the 10 per cent, requirement of law.

ADJUSTMENT OF PRESIDENTIAL POSTMASTERS' SALARIES.

Under the act of Congress approved March 3, 1883, making provision for annual instead of biennial adjustments, as heretofore, the third annual adjustment of the salaries of Presidential postmasters or postmasters at offices of the first, second, and third classes, was made apou the basis of the gross receipts which accrued at the respective offices for the four quarters ending March 31, 1886, to take effect July 1, 1886. This adjustment was made upon the gross receipts for one year or four quarters upon the new or reduced rate of postage. The salaries of postmasters at 2,265 post-offices were reviewed. As a result of the adjustment 75 offices were assigned to the first class, 400 to the second class, and 1,769 to the third class, from July 1, 1886. This was an increase of 4'first-class offices, 17 second-class offices, and 4 third-class offices from the date named. There were 24 new offices (all third class), added to the Presidential list from July 1, 1886, and 45 offices (all third class) were relegated to the fourth class from the same date, making the total number of Presidential offices July 1, 1886, 2,244. The aggregate amount required to pay salaries of Presidential postmasters was $3,685,500, and the grand total of gross receipts which accrued at the same offices for the four quarters ending March 31, 1886, amounted to $32,491,551.58. As compared with the receipts as shown by the ad. justment of 1885, this is an increase of $699,331.03.

The aggregate salaries of the postmasters will absorb 11.34 per cent. of the revenue of the Presidential offices, being .08 per cent. less than the percentage shown by the adjustment which took effect July 1, 1885.

The grand total of gross receipts which accrued at these offices for the four quarters ended March 31, 1886, is 74.07 per cent. of the revenue of the Department for the same period.

The several adjustments of the salaries of Presidential postmasters made in accordance with the requirements of the act of March 3, 1883, to take effect October 1, 1883, July 1, 1884, July 1, 1885, and July 1, 1886, are herewith tabulated, viz:

Comparative statement of the adjustments of salaries of Presidential postmasters which took

effect October 1, 1883, July 1, 1884, July 1, 1885, and July 1, 1886, in compliance with the requirements of the act of March 3, 1883.

Date.

Number of Presi.

dential offices.

Aggregate salaries

of Presidential

October 1, 1833
July 1, 1884
July 1, 1885
July 1, 1886

2, 195
2, 323
2, 233
2, 244

3,707, 500
3,828, 700
3, 630, 600
3,685, 500

1, 689
1, 648
1, 625
1,642

33, 535, 253 95
33, 031, 697 33
31, 702, 220 55
32, 491, 551 58

11.06
11. 59
11. 42
IL, 34

I also submit a tabulated statement, arranged by States and Territories in alphabetical order, showing the number of Presidential postoffices, the aggregate salaries of postmasters, and the aggregate receipts for the four quarters ended March 31, 1886, as follows:

Statement showing the number of Presidential post-offices in the several States and Territo

[graphic]

...............

rics, and the aggregate salaries of the postmasters thereat, as adjusted to take effect July 1, 1886.

States.

Number of Presiden

tial post-offices, ad.
justmen tof July 1,
1886.

16
62
29
54
43
6

15 28

6
176
84

Alabama
Alaska.
Arizona ..........
Arkansas.
California
Colorado
Connecticut
Dakota..
Delaware.
District of Columbia
Florida...
Georgia
Idaho
Illinois
Indiana..
Indian Territory
Iowa ...........
Kansas
Kentucky
Louisiana
Maino.....
Maryland
Massachusetts
Michigan..
Minnesota...
Mississippi.
Missouri
Montana
Nebraska
Nevada
New Hampshire..
New Jersey
New Mexico
New York..
North Carolina.
Ohio...
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee...
Texas ..........
Utah.
Vermont
Virginia..
Washington
West Virginia.
Wisconsiu...
Wyoming

Total...

120 99 38 12 35 19 121 102 47 23 74 12 61

6, 900 25, 100 101, 500

4, 800 94, 400 63,200 9, 900 5,000 27, 100 46, 500

7,700 276, 100 136, 900 191, 700 156, 700 61, 900 18,300 57, 100 31, 100 211, 800 167, 400

75, 700 32, 900 115, 700 19,000 89, 400 10,000 45, 900 113, 400 11, 900 870, 300 35, 800 231, 100 20, 600 268, 700 22, 400 24, 700 40, 500 112, 300

7, 700 40, 600 52, 200 19, 600 22, 000 121, 200

8, 100

23, 480 03 104, 033 81 920, 864 41 279, 280 12 643, 626 28 194, 396 09

63, 235 38 302, 884 77 123, 815 21 325, 034 96

18,192 03 3, 078, 116 38

700, 466 94 865, 862 68 617, 594 66 437, 544 82 308, 798 84 321, 204 26

585, 693 30 2,638, 088 90

998, 267 09 645, 115 58

103, 314 19 1,438, 392 46

76,054 29 894, 925 20

28, 634 38 193, 061 03 702, 110 81

40, 066 69 7, 135, 363 43

133, 040 18 2,093, 467 37

115, 925 13 3, 054, 266 38 276, 829 04 128, 633 78 318, 901 09 497, 037 47 49,875 09 154, 658 93 335, 629 50 62, 263 79 96, 143 69 687, 048 28 31, 502 31

28
64

7
216

22 133

13 159 11 16 25 71

4 25 30 13 14 76 5

2, 244

3,685,500 32, 491, 551 58

..................

Grand total gross receipts......
Grand total postmasters' salaries

................ $32, 491, 551 58

3,685, 500 00 Percentage of gross receipts absorbed by salaries..

11. 34 The grand total of gross receipts of Presidential offices for the four quarters ended Maroh 31, 1886, amoonte to 74.07 per cent. of the revenue of the Post-Office Department for the same period.

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