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tion must be exercised to protect the Government from bandling, at a great loss, publications which are in reality skillfully disguised advertising sheets or circulars.

The correspondence of this office, as compared with the past fiscal year, has increased more than 12 per cent.

When it is considered that every letter written in this division involves an, examination to ascertain the exact bearing of the laws or regulations upon the particular question submitted, and the careful preparation of an answer that shall be in entire conformity with all other rulings which may have been sent to any other postmaster or private individual upon the same subject, some idea of the clerical labor performed may be had.

SALARY AND ALLOWANCE DIVISION.

The volume of postal business transacted by this division during the past year exceeds in many respects that for the previous year, though the increase of postal work for that year was unprecedented.

With a view of giving a succinct statement of the important duties assigned to this division the following summary has been prepared, viz:

DUTIES ASSIGNED TO THE SALARY AND ALLOWANCE DIVISION.

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 applications for allowances for clerk-hire, rent, fúel, light, furniture, miscellaneous and incidental expenditures; the examination of the quarterly returns or accounts of postmasters at offices of the first and second 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 supervision and regulation of box-rent rates and deposits for keys for lock-boxes, and the management of the large correspondence incident to the transaction of the important duties as above stated.

The duties of this division have been largely increased 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. The second annual adjustment of the salaries of Presidential postmasters was made upon the basis of the gross receipts accruing at the respective offices for the four quarters ended March 31, 1885.

In addition to the regular duties of the division, as hereinbefore stated, 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, 1882, was assigned to it by verbal order of Postmaster General Gresham, April 7, 1884. This work, which is of considerable magnitude and importance, has been carried on under the personal supervision of the chief as rapidly as possible with the limited additional force of detailed clerks at command.

The various operations of the division within the past year have been tabulated as follows:

Tabulated statement of the operations of the salary and allowance division, for the fiscal

year ended June 30, 1885.

Total Aggregate number. allowance

Items, fiscal year 1884-'85.

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Number of letters received..
Number of letters written.
Number of circular lettore sent out.
Number of allowances for clerk-hiro made.
Total amount allowed for clerko in post-offices.
Number of allowances for clerk-hire declined..
Number of allowancos for rent, fuel, and light made.
Total amount allowed for rent, fuel, and light..
Number of allowances for rent, fuel, and light declined.
Number of allowances for miscellaneous items mado
Total amount allowed for miscellaneous items..
Number of allowances for miscellaneous items declined.
Number of allowances for furniture made.
Total amount allowed for furniture...
Number of allowances for furnituro declined
Number of allowances for stationery declined
Number of allowances for advertising made..
Total amount allowed for advertising
Number of allowances for advertising declined
Number of cases sent to Chief Post-Office Inspector for information
Number of fourth-class offices reported by the Auditor, where the annual

compensation of the postmaster amounted to $1,000, exclusive of monoy-order

commissions
Number of fourth-class offices assigned to the Presidential class
· Aggregate amount required to pay the salaries of postmasters at the above

Presidential offices (44) for one year
Number of special adjustments of postmasters' salaries..
Aggregate sum required to pay the above increased salaries for one your.
Number of postmasters' salaries reduced and discontinued
Aggregate amount saved by salaries reduced and discontinued as above
Total number of salaries of postmasters adjusted during the year
Aggregate adiount of salaries involved in the (2,435) adjustments as above..
Number of tirst-class post-offices (salary of postmaster $3,000 to $6,000 a year).
Number of second-class post-offices (salary of postmaster $2,000 to $2,900 á

year)..
Number of third-class post-offices (salary of postmaster $1,000 to $1,900 a year).
Total number of Presidential post-ottices June 30, 1885.
Total amount required for salaries Presidential postmasters as above (2, 233)

for one year...
Allowances for clerk-hire reduced and discontinued
Amount saved by clerk-hire reduced and discontinued
Allowances for rent, fuel, and light reduced and discontinued
Amount saved by rent, fuel, and light reduced and discontinued
Number of applications for readjustment of postmasters' salaries andor act

of March 3, 1883, received and placed on file
Number of applications under act of March 3, 1883, reviewed to date...
Number found below the 10 per cent. requirement of law
Total number allowed to dato
Aggregate amount allowed for back pay of postmastors to date.
Namber of employés (average)
Number of employés, review of postmastors' salaries (average)

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The number of letters received for the fiscal year ended June 30, 1885, amounted to 21,873; an increase of 4,036, or 22.6 per cent., as compared with 1884, and 16,975, or 346.6 per cent., more than the number received during the year 1880.

The number of letters written amounted to 28,332, an increase of 6,939, or 32.4 per cent. over 1884.

Twenty-four thousand nine hundred and forty-four circular letters were sent out, an increase of 3,716, or 17.5 per cent., over 1884.

The allowances made for clerk-bire were 3,352; a decrease of 565, or 14.4 per cent., as compared with 1884. This decrease was occasioned by the limited appropriation for clerks in post-offices.

The total number of applications for clerk hire declined was 1,688, an increase of 369, or 27.9 per cent., as compared with the year 1884.

There were made 1,690 allowances for rent, fuel, and light; a decrease of 828, or 32.8 per cent., as compared with 1884.

Applications for allowances for rent, fuel, and light, to the number of 507 were declined, a decrease of 460, or 47.6 per cent., over 1884.

The allowances for miscellaneous items made, numbered 4,709; and 1,356 applications for allowances for miscellaneous items were declined. As compared with the year 1884, this is a decrease of 257, and for the year 1883, a falling off of 1.145. This satisfactory exhibit is largely owing to the operation of the regulation requiring postmasters at the larger post offices to make application for each quarter in advance, for authority to make expenditures for miscellaneous purposes.

The allowances made for furniture numbered 578; and 595 applications for furniture were declined ; a decrease of 181, or 23.6 per cent., as compared with 1884.

There were 50 applications for stationery declined These requests all related to amounts disallowed for stationery for the fiscal year ended June 30, 1883.

There were 232 allowances for advertising made the aggregate amount allowed being $10,314.87. One hundred and thirty applications for advertising were declined.

Only 44 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 oftices (44) were assigned to higher grades, the aggregate salaries of the postmasters thereat making a total of $47,000.

The special adjustments of postmasters’ salaries numbered 82, involv. ing an aggregate amount of $71,000 for salaries. There were 134 salaries of postmasters reduced and discontinued, making a saving of $139,300.

The total number of salaries of Presidential postmasters adjusted during the year announted to 2,435; and the aggregate amount involved for salaries in all of the adjustments amounted to $3,701,600.

The allowances for clerk-hire reduced or discontinued during the year numbered 720, making a saving of $110,530. One hundred and ten allowances for rent, fuel, and light were reduced or discontinued, making a saving of $24,457.90.

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 by the Postmaster-General, April 7, 1884; and since that date 32,400 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 was 16,521; and 5,900 were allowed, involving the additional amount for compensation or back-pay of postmasters of $378,922.96. There were 10,6:applications reviewed and found to be below the 10 per cent. requirement of law.

The following tabulated statement showing the operations of this division for the fiscal years 1880, 1881, 1882, 1883, 1884, and 1885, and the increase of work since 1880, is submitted, viz:

Table showing rolume of business transacted in the salary and allowance division, office of

the First A8sistant Postmaster-General, for the fiscal years ended June 30, 1860, 1881, 1882, 1883, 1884, and 1885, and increase of work since 1880.

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Number of letters received
Number of letters answered..
Number of circular letters sent out.
Number of allowances for clerk hire

madle....
Number of allowances for clerk hire de-

clined Number of allowances for rent, fuel,

and light made Number of allowances for rent, fuel,

and light declined Number of allowances for miscellane.

ous items made Number of allowances for miscellane

ous items declined Number of allowances for furniture

made Number of allowances for furniture de.

clined Number of allowances for stationery

made Number of allowances for stationery

declined Number of allowances for advertising

made Number of allowances for advertising

declined Number of cases referred to chief post

office inspector Number of special adjustments post

masters' salaries Number of biennial adjustments post

masters' salaries Number of fourth-class post offices re.

ported by the Auditor where the an. | nual coinpensation of the postmaster amounts to $1,000, exclusive of money. order commissions Number of Presidential offices relegated

to the fourth class.....
Number of fourth-class offices assigned

to the third clase;..
Number of lease cases prepared...
Number of leases in operation.
Number of cases of all kinds made

special
Discontinued rent
Discontinued clerk-bire.
Number of Presidential post-offices
Number of claims for readjustment of

postmasters' salaries under act of
March 3, 1883
Number of Railway Mail Service allow.

ances made. Number of employés (average).

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* Decrease.
+ Transferred to the office of Second Assistant Postmaster-General.
Transferred to Division Post-Office Supplies.
Eight employés on review of postmasters' salaries.

ADJUSTMENT OF PRESIDENTIAL POSTMASTERS' SALARIES.

In compliance with the requirements of the act of Congress, approved March 3, 1883, making provision for annual instead of biennial adjustments as heretofore, the second annual adjustment of the salaries of Presidential postmasters or postmasters at offices of the first, second, and third classes was made upon the basis of the gross receipts which accrued at the respective offices for the four quarters ended March 31, 1885, to take effect July 1, 1885.

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 2,353 post offices were reviewed 71 offices were assigned to the first-class, 383 to the second class, and' 1,765 to the third-class, from July 1, 1885. There were 14 new offices (all third-class) added to the Presidential list from July 1, 1885, making the total number of Presidential offices July 1, 1885, 2,233; 134 offices were relegated to the fourth-class from July 1, 1885.

The aggregate amount required to pay the salaries of Presidential postmasters was $3,630,600; and the grand total of gross receipts which accrued at the same offices for the four quarters ended March 31, 1885, amounted to $31,792,220.55. The aggregate salaries of the postmasters will absorb 11.42 per cent. of the revenue of the Presidential offices. The grand total of gross receipts which accurued at these offices for the four quarters ended March 31, 1885, is 75.36 per cent. of the revenue of the Department for the same period.

With a view of showing in a concise form a comparative statement of the adjustments of Presidential salaries made in accordance with the requirements of the act of Congress approved March 3, 1883, which took effect October 1, 1883, July 1, 1884, and July 1, 1885, the following tabulated statement has been prepared, viz:

Comparative statement of the adjustments of salaries of Presidential postmasters which

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

Date.

Per cent. of

Per cent of

entire Aggregate Average Aggregate re- aggregate

revenue of Number of salaries salary ceipts which receipts ab. Presiden- of Presiden-of Presiden. accrued at sorbod for

Departtial offices. tial post

tial post-
Presidential postmast-

ment which

officos. masters. mastors.

ers'

accrued salaries.

at Presiden. tial offices

October 1, 1883.
July 1, 1884
July 1, 1885.

2, 195 $3,707, 500
2, 323 3, 828, 700
2, 233 3, 630, 600

$1, 689 $33, 535, 253 95
1, 648 33, 031, 697 33
1, 625 31, 792, 220 55

11. 06
11.59
11. 42

74.28 74.80 75. 36

A tabulated statement by States and Territories, showing the num. ber of Presidential post-offices, the aggregate salaries of postmasters, and the aggregate receipts for the four quarters ended March 31, 1885, is also submitted.

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