REVIEW OF SALARIES OF POSTMASTERS OF THE THIRD, FOURTH, AND FIFTH CLASSES, UNDER THE ACT OF MARCH 3, 1883.

In my report of last year (see pages 217, 218, and 219, Report of the Postmaster-General for the fiscal year ended June 30, 1885) relative to the review of the salaries of postmasters and ex-postmasters of the third, fourth, and fifth classes, as required by the act of Congress ap proved March 3, 1883, as construed by the Attorney-General of the United States under date of February 13, 1884, and reaffirmed June 14, 1884, a complete and concise history of the work of reviewing the said salaries was given from the time the subject-matter was assigned to the Salary and Allowance division of this Bureau by PostmasterGeneral Gresham, April 7, 1884, to and including the completion of the first schedule of claims for the State of Ohio.

Since that report was made the work has progressed as rapidly as possible with the limited clerical force assigned to said division, and the first schedules of claims for the following States and Territories have been completed, viz: Pennsylvania, Rhode Island, South Caro lina, Tennessee, Texas, Utah, Vermont, Virginia, Washington Territory, West Virginia, Wisconsin, Wyoming, and Idaho; and the second sched ules of claims for the States of Alabama and Arkansas have also been completed.

The second schedules for the other States and Territories will be taken up in alphabetical order and completed as soon as possible.

At the present time the claims included in the second schedules for the States of California, Colorado, and Connecticut are in process of review.

Twenty-eight thousand four hundred and eighteen claims have been reviewed, and 10,763 have been allowed; 17,655 were found to be below the 10 per cent. requirement of the law, or for periods outside of the dates defined by the act.

The total amount allowed as additional compensation to date is $615,479.96. This sum exceeds the amount appropriated by Congress to date by $11,575.47, the aggregate amount appropriated by Congress being $603,904.49, as follows:

The appropriation approved August 4, 1886, was made by Congress in the "Act making appropriations to supply deficiencies in the appropriations for the fiscal year ending June 30, 1886, and for prior years, and for other purposes," and as persistent efforts were made to cast doubt upon the construction of the act of March, 3, 1883, as affirmed by the Attorney-General of the United States, as hereinbefore stated, Congress enacted the following additional legislation confirming the adjustments of the salaries of postmasters and ex-postmasters of the third, fourth, and fifth classes as made by the Department, and also limited the time for the presentation of claims of this character to January 1, 1887. The text of section 8, as approved by Congress August 4, 1886, is as follows, viz:

Compensation of postmasters readjusted under act of March 3, 1863.

For compensation of postmasters readjusted because of the act of March think eighteen hundred and eighty-three, and to pay the several amounts reported by the Auditor of the Treasury for the Post-Office Department as due and unpaid, payable

from deficiency in the postal revenue for eighteen hundred and eighty-three and prior years, three hundred and eighty thousand two hundred and nine dollars and forty-six cents: Provided, That the method of reviewing and readjusting the salaries of postmasters and late postmasters of the third, fourth, and fifth classes, under the classification of the act of July first, eighteen hundred and sixtyfour, during the period between July first, eighteen hundred and sixty-four, and July first, eighteen hundred and seventy-four, which has been practiced in the Post-Office Department under and since the act of March third, eighteen hundred and eighty-three, entitled "An act authorizing and directing the Postmaster-General to readjust the salaries of certain postmasters in accordance with the provis ion of section eight of the act of June twelfth, eighteen hundred and sixty-six," by which all such reviews and readjustments have been made prospectively for the biennial periods provided for in the said act of July first, eighteen hundred and sixty-four, upon the basis of the quarterly returns of postmasters during the preceding biennial periods, respectively, whenever the salary actually paid was ten per centum less in amount than such salary should have been if adjusted correctly upon such returns by computing what the commissions upon the same would have been under the act of June twenty-second, eighteen hundred and fifty-four, and averaging the amount thereof annually, as directed by the act of July first, eighteen hundred and sixty-four, for fixing salaries, is approved and ratified as a correct administration of the aforesaid act of March third, eighteen hundred and eighty-three, and of all other acts applicable thereto; and that the several readjustments which have been made are ratified as a correct disposition of the several claims which have been considered and disposed of, and for which this appropriation is made; and the several persons to whom amounts have been respectively found due are declared the rightful persons entitled to the same, and such amounts to be the full sums due upon any and all such claims; and that all claims in excess thereof, and all other claims for readjustment which have been examined and found by the proper officers of the Post-Office Department not entitled to readjustment within such rule of administration, are disallowed and barred. That no claim for review or readjustment of any such salary shall be hereafter considered unless the same shall be presented to the bost-Office Department before the first day of January, eighteen hundred and eightysoven; and that in considering all claims not yet readjusted the same method shall Pe pursued which is hereby approved; and any and every different method of readjustment of salaries of such postmasters and late postmasters during the period between July first, eighteen hundred and sixty-four, and July first, eighteen hundred and seventy-four, than is herein approved, is hereby prohibited; and no action or suit shall be maintainable in any court against any officer of the United States by reason of his action in reviewing or refusing to review, or allowing or disallowing, any application for readjustment of any such salary: And provided further, That payment of all sums hereby appropriated shall be made by warrants or checks, as provided by the said act of March third, eighteen hundred and eighty-three, payable to the order of and transmitted to the persons entitled respectively thereto.

Date of schedule.

A tabulated statement, showing the progress of the work of reviewing the said salaries from April 7, 1884, to date, is herewith submitted, viz: Statement showing progress of the work of reviewing the adjustment of the salaries of postmasters at offices of the third, fourth, and fifth classes, in compliance with the requirements of the act of March 3, 1883.

Post-office boxes serve a threefold purpose, to wit: First, as an ac commodation to patrons of the office; second, as a convenience to postmasters, and, third, as a source of revenue. They are classed as callboxes, lock-boxes, and lock-drawers; and are provided, as a rule, by post

masters, except at post-offices located in Government buildings, which are furnished with box outfits by the Treasury Department, and at such post-offices of the first and second classes, located in buildings leased for a term of not exceeding five years, where an outfit of boxes is included under the provisions of the lease.

The revenue derived from the rent of boxes at Presidential postoffices is included in the gross receipts accruing at the said offices, in making the annual adjustment of Presidential postmasters' salaries. The said postmasters, therefore, receive, indirectly, a part of the boxrents in the sum allowed as compensation. At fourth-class offices all the box-rents practically go to the postmasters, the Government deriving no revenue therefrom.

The supervision of box-rent rates by the Department during the past fiscal year has continued the improvement of this branch of the service. From the statements furnished by postmasters at the request of this office, relative to the number of boxes in their offices, number in use, and rental price for each class of boxes, extreme rental prices have been adjusted to conform to the local requirements of the respective offices, due regard being given, at the same time, to the benefits afforded box-renters, thus securing greater uniformity of prices.

This fact, and the careful supervision given to this subject, has, I am pleased to state, reduced the number of complaints relative to box-rent rates to the minimum.

KEY DEPOSITS.

During the year a large number of letters relative to key-deposits were received and mailed, also a large number of circular-letters of instructions and blank forms for use of postmasters in making their reports.

The modified regulations requiring postmasters to make reports relative to key deposits semi-annually, instead of quarterly as heretofore, and also allowing postmasters who provide their own boxes to exercise their discretion in collecting a deposit for keys, has simplified the work to some extent; but, notwithstanding these changes, the reports accumulated faster than the limited force assigned to the work could dispose of it.

LEGISLATION RECOMMENDED.

ALLOWANCES FOR RENT FOR THIRD-CLASS OFFICES.

I renew the recommendation heretofore made by this office, that the Government pay the office rent at post-offices of the third class. As stated concisely by the Postmaster-General (see Report of the Postmaster-General for the fiscal year ended June 30, 1884, page 20), "there. is no reason why these expenses should not be paid at third-class postoffices as well as at first and second class offices."

I beg to state that this matter was fully considered in my report of last year (see report of the Postmaster-General for the fiscal year ended June 30, 1885, page 225), and therefore it is unnecessary to add any. thing further at this time than the fact that in the appropriation act for the service of the Post-Office Department for the current fiscal year the discretionary authority given to the Postmaster-General to lease premises for the use of post-offices of the third class, which was incorporated in the appropriation act for the postal service for the fiscal year ended June 30, 1886, has been omitted.

I submit here with a tabulated statement showing the number of these offices of each grade, by States and Territories, in effect July 1, 1886:

Statement showing the number of third-class post-offices July 1, 1886, arranged to exhibit the number in each grade from $1,000 to $1,900, in each State, Territory, and District.

Postmasters' salaries.

States and Territories.

$1,000. $1, 100. $1,200. $1, 300. $1,400. $1,500. $1, 600. $1, 700. $1,800. $1,900. Total.

RENT FOR POST-OFFICE, WASHINGTON, D. C.

I beg to call attention to the fact that rent for the premises used for the post-office of Washington, D. C., has not been provided for by Congress for the current fiscal year.

In the "Act making appropriations for the service of the Post-Office Department for the fiscal year ending June 30, 1887," provision is made for the rent of a suitable building for the "Capitol Hill" branch of the Washington office, but payment of the rent of the main office has not been provided for; and, therefore, from July 1, last, no rent for the said