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The system inaugurated two years ago in regard to the distribution of stationery for first and second class offices has proved to be a great improvement over the former method. Proposals are now invited, and contracts made, for furnishing the Department with all the articles of this character now used in post-offices. The postmasters are supplied with them only on requisition. This system has proved both economical and satisfactory, and a great improvement over the former method by which postmasters were permitted to purchase stationery for the use of their offices, and submitted vouchers for the same to the Auditor.

The expenditures for this purpose for the past fiscal year amounted to $46,914.06, a decrease of $13,054.17, or 21.76 per cent., as compared with those for the previous fiscal year. This reduction is partly due to the low prices which prevailed during the past year, which enabled the Department to supply articles of stationery at greatly reduced rates.

In view of the above facts, the estimate for stationery in post-offices for the fiscal year ending June 30, 1887, has been fixed at $55,000, being a decrease of $10,000, or 15.38 per cent., as compared with the appropriation for the current year.

WRAPPING TWINE.

The estimates, appropriations, and expenditures for this item for the past two fiscal years were as follows:

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*Deficiency supplied from appropriation for railway transportation.

The estimate for this article for the next fiscal year has been placed at $80,000, which amount is $5,000 less than the appropriation for the current year.

The expenditures for this purpose for the past year amounted to $79,149.50, being 3.8 per cent. less than the expenditures for the previous year.

The estimate ($80,000) is fixed in the sum of $5,000 less than the appropriation for the present year on account of the reduction in the prices for this article.

Wrapping twine is required for the proper care of mail matter in transit, and also its speedy and safe distribution, especially by the Railway Mail Service employés.

WRAPPING PAPER.

The estimates, appropriations, and expenditures for this item for the past two fiscal years were as follows:

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The estimate for this item for the fiscal year 1886-1887 has been placed at $30,000, which is $5,000 less than the appropriation for the current fiscal year.

The expenditures for the past year amounted to $34,997.60, exceeding the expenditures for the previous fiscal year by $2,229.22, or 6.8 per

cent.

Wrapping paper is used in post-offices and in railway postal cars. Notwithstanding the growth and extension of the service the estimate of $30,000, which is $5,000 less than the appropriation for the current year, is deemed sufficient, owing to the fact that contracts are now made for writing paper and facing slip paper separately, thus enabling the Department to purchase paper suitable for the purposes required for less than the aggregate cost by the former system.

LETTER-BALANCES, SCALES, AND TEST-WEIGHTS.

The following were the estimates, appropriations, and expenditures for the past two years:

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The appropriation for this item for the current fiscal year is $20,000. The estimate for the next fiscal year has been placed at $10,000. The expenditures for the past fiscal year amounted to $17,802.20, being $2,196.15, or 10.98 per cent., less than those for the preceding year. Scales and test-weights are used generally in only the larger postoffices; but a letter balance is a necessity in each office, and many require several. Post-offices, however, have been very generally supplied with letter-balances and scales, and, therefore, the estimate for the next fiscal year has been placed at $10,000, which is deemed sufficient.

POSTMARKING, RATING, AND CANCELING STAMPS, AND INK AND PADS

FOR CANCELING PURPOSES.

The following were the estimates, appropriations, and expenditures for the past two years:

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The appropriation for postmarking, canceling, and rating stamps, and ink and pads for the current year, is $20,000.

The estimate for the next fiscal year has been fixed at $30,000.

The expenditures for the fiscal year ended June 30, 1885, amounted to $10,233.04, a decrease of 4.09 per cent. as compared with the previous

year.

The increased estimate for this item is occasioned by the fact that ink and pads are now authorized to be furnished to third and fourth class offices. Previous to July 1, 1885, these articles were not furnished to postmasters at offices of the third and fourth classes.

SUMMARY OF ESTIMATES.

The aggregate of the foregoing estimates is $22,908,531.25, which is $148,531.25, or 0.65 per cent., more than the appropriation for the current fiscal year.

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The preceding estimates have been prepared with due regard for the interests and increasing service of this Bureau, and it is hoped that the amounts asked for each item and the explanations following will be considered satisfactory.

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ESTIMATES OF AMOUNTS TO BE APPROPRIATED FOR THE OFFICE OF THE SECOND ASSISTANT POSTMASTER-GENERAL FOR THE FISCAL YEAR ENDING JUNE 30, 1887.

POST-OFFICE DEPARTMENT,

OFFICE OF SECOND ASSISTANT POSTMASTER GENERAL,

Washington, D. C., October 15, 1885.

SIR: In response to your communication of the 14th ultimo, I submit the following estimates of amounts to be appropriated for this office for the fiscal year ending June 30, 1887:

INLAND TRANSPORTATION BY STAR ROUTES.

The appropriation for the current year is.
The annual rate of expenditure on September 30, 1885, was
The sum estimated as necessary for the current year is

$5,900,000 5,522, 218 5,576, 218

The general advertisement of September 15, 1885, invites proposals for carrying the mails on all the star and steamboat routes in the fourth contract section, comprising the States of Arkansas, Louisiana, Texas, Kausas, Nebraska, Colorado, Oregon, Nevada, and California, the Indian Territory, and the Territories of Dakota, Montana, Wyoming, New Mexico, Arizona, Utah, Idaho, Washington, and Alaska.

The star service in operation in this contract section on June 30, 1885, aggregated 30,130,859 miles' travel per annum, and cost $2,453,744 per

annum.

The average cost per mile traveled was 8.14 cents.

The star service embraced in said general advertisement aggregates 29,604,992 miles' travel per annum, being 525,867 miles less than was in operation on June 30, 1885.

The estimated cost of star service under the general advertisement on the basis of rate for 1885 is:

29,604,992 × .0814....

The cost of this class of service under the general advertisement of September 15, 1884, was 50 per cent. in excess of the previous rates. Assuming that the same ratio of increase will exist in replacing service in the fourth section, and the additional cost will be...

$2,409, 846

121, 215

2,531, 061

The miscellaneous advertisement of September 15, 1885, invites proposals for the performance of star service aggregating 559,863 miles' travel per annum in other States than those included in the general advertisement.

Estimated cost at the rate of 5.6 cents per mile traveled, being the average rate on June 30, 18-5...

Add 58 per cent..

$31, 352

Estimated cost of service under an advertisement to be issued in February, 1886 ...

1,577

50,000

3, 154, 633

Cost of service in the first, second, and third contract sections, which embraces all the States not included in the general advertisement of September 15, 1885...

Estimated cost of all star service on July 1, 1886...
Allow for new service thereafter......

Estimate for the year 1887 .

Being .85 per cent. less than the estimate for the current year.

INLAND TRANSPORTATION BY STEAMBOAT ROUTES.

The appropriation for the current year is.....
The annual rate of expenditure on September 30, 18-5, was...
The sum estimated as necessary for the current year is......

5,768, 623 81, 377

5, 850,000

$615,000

511,669

536, 669

The average cost of steamboat service in the fourth contract section during the year ended June 30, 1885, was 23.18 cents per mile traveled. The general advertisement of September 15, 1885, embraces steamboat routes aggregating 1,231,317 miles travel per annum; but of this, 47,216 miles will not be let, leaving 1,184,101 miles to be estimated for.

The cost of such service on the basis of 1885 is

$274, 474

Cost of steamboat service in the first, second, and third sections, under contracts extending through the year 1887

264, 311

Other service hereafter to be ordered..

36, 215

Estimate for 1887

575,000

Being 6.5 per cent. less than the estimate for the current year.

MAIL-MESSENGER SERVICE.

The appropriation for the current year is

-$975,000

The annual rate of expenditure on September 30, 1885, was..
The sum deemed necessary for the current year is..

845, 648

870, 648

Cost of service on July 1, 1885..

Reduction to September 30, 1885.

Annual cost September 30, 1885...

849, 764

4.116 845, 648

The increase in the cost of this class of service will depend largely on the amount of new railroad service ordered.

The amount thought to be necessary for the next fiscal year is $900,000, being 7.69 per cent. less than the estimate for the current year.

MAIL BAGS, MAIL-BAG CATCHERS, AND MAIL-BAG LOCKS AND KEYS.

The number of mail bags of every description purchased and put into service during the fiscal year ended June 30, 1885, was 175,640, of which 22,840 were lock bags, being those that were principally used for letters and other matter of the first class, and 152,800 canvas tied sacks, also principally used for printed and other mailable matter not of the first class.

Compared with the preceding year, the demands of the service supplied amounts to a decrease of 2,000, or about 8 per cent., of lock bags, and an increase of 43,800, or about 40 per cent., of tied canvas sacks. The cost of mail-bag catchers was $3,031.70, or upwards of 64 per cent. less than that of the preceding year.

The expenditures for mail locks and keys during the year ended June 30, 1885, was $23,962.

Assuming no hindrance to the continued increase of matter for transportation by mail, and foreseeing no other causes of diminished wants, the demands of the mail service, with respect to the items of mail bags, mail-bag catchers, mail locks and keys, I estimate the sums required as follows:

For mail bags and mail-bag catchers, $275,000, being the same as the appropriation for the current year.

For mail locks and keys, $20,000, being the same as the appropriation for the current year.

It is estimated that the total amount of the appropriation for these items for the current year will be necessary.

INLAND TRANSPORTATION RAILROAD ROUTES.

The cost of transportation on all routes on which rates were fixed June
30, 1885, as shown by Post-Office Department books, was...........
First. Cost June 30, 1884..

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Add for 2,945.16 miles unadjusted on June 30, 1885, at $60 per mile, from
July 1..

Less amount earned by and withheld from Pacific roads, as per Auditor's books..

$14,758, 493 13, 273, 603

1,484, 890

14,758, 493

176, 709

14,935, 202

1,200,000

13, 735, 202

Following the practice of preceding years, the cost on June 30, 1885 -$13,735,202, as above ascertained-will be used as the basis upon which to estimate.

The rate of increase for 1886 was estimated in previous report at 7 per cent. Add this increase to cost on June 30, 1885, brings the cost for present fiscal year up to $14,696,666. Add 7 per cent. increase for fiscal year ending June 30, 1887, making amount required for service exclusive of Pacific roads, $15,725,432.

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