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on account of unfavorable contract prices, as will be explained more fully hereafter. There was an increase in the issue of departmental envelopes of 148,000, or 18.9 per cent.

The requisitions upon which the foregoing supplies were issued numbered as follows: For ordinary postage-stamps

150, 1763 For postage-due stamps

14,519 For newspaper and periodical stamps.

10,046 For stamped envelopes, plain ...

75,731 For stamped envelopes, special request.

99, 156 For postal cards

70,008 For registered-package envelopes.

57, 304 For tag envelopes for registered parcels

1, 926 For official envelopes...

24,911 For newspaper and periodical receipt-books.

2,074 Total

505, 851 These supplies were made up and forwarded in the following number of parcels : Of ordinary postage-stamps

153, 420 Of postage-due stamps

14, 520 Of newspaper and periodical stamps.

10,046 Os stamped envelopes, plain..

111, 131 Of stamped envelopes, special request.

94, 400 Of postal cards....

77, 362 Of registered-package envelopes. Oftay envelopes for registered parcels.

61, 663 Of official envelopes.

29, 382 Of newspaper and periodical receipt-books. Total

554, 004 The following is a comparative statement of the number of requisi. tions filled during the past and preceding fiscal years:

2,080

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The weight of newspaper and perioilical (second class) matter mailed during the year from regular oflices of publication and from news agencies, not including free circulation within the county of publication, was 101,057,963 pounds, or 50,528.12

3,883 tons, the postage on which was $2,021,159.26, an increase of $131,567.12, or 6.96 per cent., over the amount of postage collected on such matter during the preceding year.

The number of post-offices at which this class of matter was mailed during the year was 6,085, an increase of 300, or 5.19 per cent., over the number for tbe previous year.

During the year the sum of $1,090.37 was collected at proper rates from publishers and news agents on matter mailed, but not entitled to go, as second-class matter.

In the following statement will be found the number of pounds of newspapers and periodicals mailed during the year, and the amount of postage collected thereon, at twenty of the principal post offices in the United States:

Post-office at

Year ending June 30, Year ending June 30,

Per 1881.

1885.
Increase for 1885.

centage

of total

amount Number Amount of Number Amount of Number Amount

Per collectof pounds postalo of pounds postage of

ot

centageled in the mailed. collected. mailed. collected

of in- United pounds. postage.

crease. States.

3.04+

New York, NY 23,529,581 $170, 591 62 24,805, 636 $196, 112 72 1, 276,055 $25,521 10 5.42+ 24.54+ Chicago, III

8, 887, 105 177, 742 10 10,311, 120 2016, 223 72 1,421,051 28.481 64 16. (12+10.20 Boston, Mass 6, 066, 420 121,328 40 6,078, 065 121, 561 70

11, 655

233 30

0.19 + 6.01+ Philadelphia, Pa 4, 800, 3-6 96,019 72 4,972, 161 99, 413 22 171, 175 3, 423 50

3. 56 + 4.92+ Saint Louis, ... 4, 413, 013 P8, 260 90 4.877, 101 97, 512 (2 461, 0176: 9,281 12 10.51+

4. 824
Cincinnati, Ohio 3, 336, 610 66, 732 20 3,077.0.0 61, 511 00 *_59.560 *5, 191 20 * 7.7
San Francisco, Cal. 1,721,513 31, 130 24 1,760, 176 35, 323 5- 4+, 661 893 28 2. 59+ 1.74+
Milwaukee, Wis 1, 46, 279 29, 245 58 1, 66, 719 32, 131 38 144, 4410 2, 888 80 9.87+ 1.59+
Detroit, Michi 1, 1:1, 770 28, 635 40 1,5 0, 801 30, 016 02 69, (31 1, 380 62 4.82+ 1. 48+
Louisville, Ky

1, 251, 155
25, 023 10 1, 461, 469

29, 229 38 2111,314 4, 206 28 16.80-7 1. 45Toledo, Ohio 994,702 19, 594 04 1, 277, 177 25, 519 54

5, 055 50 28.4%.+ 1. 20+ Washington, D. C.. 1,0-2, 924 21, 658 48 1, 269, 412 25, 388 24 186, 488 3,729 76 17. 22+ 1. 26Saint Paul, Minn. 1,032, 811 20, 656 22 1, 213, 123 24, 262 46 180, 312 3, 606 24 17.46 - 1. 20+ Cleveland, Ohio.. 1, 138, 9;8 23, 178 96 1, 166, 595 23, 331 90 7, 617 152 91 0.66 1. 15+ Kansas City, Mo. 1,0-3,317 21, 606 34 1, 106, 986 22, 139 72

23, 609 473 38

2. 18+ Ilgin, III.

1.09+ 1, 137, 042 22, 740 81 1,094, 756 21, 695 12 *52, 276'*1, 045 72 (*)

1.07+ Pittsburgh, Pa. 991, 68+ 19,833 68 1,037, 301 20, 7:46 08 45, 6.0 912 40

4.60+

1.03 A 11usta, Me 1,002, 019 20, 010 38

931, 160 18, 023 20 *70, 9*1, 417 18 (*) Baltimore, Jual

0.92 + 3, 1:37 10, 6112 74 $91, 018 17, 4036 60,81 1,217 62

0.88+ New Orleans, La. C:7, 199 13, 519 98 788, 403 15, 768 18

110, 910 2, 218
20 16.37+

0.78+ Total

60, 894,510 1, 337, 890 92 71, 225, 624 1, 424, 512 48 4, 331, 078 80, 621 56 6. 47 70. 48

7.30 +

Decreaso.

ONE-CENT NEWSPAPER AND PERIODICAL STAMP.

To provide for wants that were certain to arise from the change in the rate of postage on newspapers and periodicals sent by publishers and news agents to actual subscribers, authorized by the act of Congress of March 3, 1885, the Department began issuing, on the 3d of June, 1885, newspaper and periodical postage-stamps of the denomination of 1 cent, for use after July 1, 1885. This new denomination is of, the same design and color as the stamps of the denominations from 2 to 10 cents in the same series; the only difference is in the numeral and the word indicating the value.

SPECIAL DELIVERY STAMP. Soon after the close of the fiscal year the Department began preparations for introducing the system for the special delivery of letters, provision for which wils made in the post office appropriation act approved March 3, 1885. The special stamp required by this act was prepared by the contractor for furnishing stamps, and issue of the same was commenced on the 29th of August, 1885, in ample season for use on the 1st of October, the date on which the special-delivery system had been established to take effect. The following is a description of tbe stamp: A line engraving on steel, oblong in form; dimensions, 19 by 1,1 inches; color, dark blue. Design: On the left an arched panel bearing the figure of a mail messenger boy on a run, and surmounted

by the words “United States”; on the right an oblong tablet, ornamented with a wreath of oak and laurel surrounding the words - Secures immediate delivery at a special-delivery office." Across the top of the tablet is the legend “Special Postal Delivery," and at the bottom the words “Ten Cents," separated by a small shiell bearing the numeraal " 10."

NEW DESIGN OF POSTAL CARD.

Concurrently with the determination to procure a better quality of paper for use of postal cards, referred to in another place, it was decided to further add to the attractiveness of the cards by substituting for the old design of engraving a new one of finer style and workmanship. The new design was prepared, and the plates for printing executed, by the Bureau of Engraving and Printing of the Treasury Department, at the expense of the contractor. The issue of the new cards was begun August 24, 1885, under the new contract.

The design, printed in dark brown, is as follows: On the upper righthand corner of the card in an oval frame is the head of Thomas Jefferson), the face of which is three-qnarters full, looking to the left, and surrounded with a wreath of oak and laurel, tied with a ribbon bearing the words “One Cent” and the numeral “1." On the left at the top of the card are the words “United States Postal Carl," the words " United States” being in plain white letters on a curved and partly folded scroll, and the words “ Postal Card” being in dark, ornamental letters, inclosed in straight unshaded lines, with a rosette at each end. Immedi. ately under the scroll is a small white star, below which is a long tablet containing thirteen stars. Below the whole design are these words: “ Nothing but the address to be on this side.” The new design has re. ceived many expressions of popular favor.

REVIEW OF NEW CONTRACTS,

A great saving of money has been effected by new contracts, entered into near the close of the last fiscal year, for furnishing adhesive postagestamps, postal cards, and registered package, registered tag, official and dead-letter envelopes. This result was due very largely to a favorable condition of the paper market, but in no small degree to the careful measures taken under your direction and supervision to ascertain the just and reasonable wants of the public and the postal service, and to provide for them at a minimum of cost. It cannot fail to serve some good purpose to briefly record here the means through which the new contracts were secured, and the results accomplished by them.

NEW CONTRACT FOR ADHESIVE POSTAGE-STAUPS.

The late contract for furnishing adhesive postage-stamps expired on the 30th of June, 1885. Sealed proposals were invited by public advertisement of March 30, 1885, to be received until 12 m. on the 29th of April, for a new contract for the four years commencing July 1, 1885, The specifications attached to the blank form of proposals furnished to bidders recited in minutest detail every stipulation of the proposed contract. Among the more important conditions were those in relation to the preparation, renewal, 11.se, custody, ownership, and final disposition of the dies, rolls, and plates for printing (all of which are constitnted the property of the Government as soon as mamutactures, and are at all times subject to the control of the Postmaster-General); the

6755 PMG-441

mode of manufacturing the stamps in all its several branches; the mamer of packing, storing, and issuing the stainps; the sufficiency of the stock on hand to promptly meet the requisitions of postmasters; the right of inspection and rejection by the Government; and the disposi. tion of the spoiled work and of the stock remaining on hand at the close of thie contract.

It was provided that the stamps should be manufactured and stored in a fire-proof building, and in apartments to be devoted exclusively to the purpose. Suitable and properly furnished otlice rooms connected with the premises were to be provided for the use of the Government agency charged with supervising the execution of the contract. A deti. nite standard of paper to be used for printing the stamps was prescribed, the sample attached to the specifications having been made from an approved formula under the direction and supervision of the Department. It was provided that the specitications should be inserted in the contract and become a part of the same; in addition to which, it may be stated here, every requirement of the specitications was made a distinct article of agreement when the contract was subsequently drawn.

An important element of cost involved by the contract was the manner of printing the stamps. The two previous contracts expressly stipulated that the printing should be done on hand-roller presses, the use of steam presses under the contract immediately preceding the same, which was silent as to the mode of printing, having resulted in ex: tremely wsatisfactory work. It was claimed, however, just prior to the issue of the advertisement for the present contract, by parties proposing to enter the competition, Uiat recent inventions and inprove. ments in steam machinery had resulted in presses that were capable of producing work equal to that done on hand-roller presses, and at much less expense.

The claim involved two different styles of presses, on one of which the work was done partly by steam and partly by hand, and on the other wholly by steam.

The time remaining did not admit of such delay in the advertisement as was necessary to investigate and determine the suitability of the steam-power presses or the merits of their work as compared to each other and to that of the hand roller presses. Accordingly, to afford the widest scope to the competition, and at the same time to protect the interests of the Government in any contingency, it was decided to invite proposals separately for each of the three methods of printing, and supplemental bids for each of the two kinds of steam printing, with the proviso that if the work should at any time prove unsatisfactury to the Postmaster-General, le might thereafter require it to be done on hand-roller presses, without extra charge to the Government.

The right was reserved to the Postmaster-General to make the award upon any one of the several classes of bids, thus leaving the question to be settled by the disclosures of the bidding, and a subsequent examination of the merits of the different methods of printing. To determine the lowest bid in the aggregate for all the several kinds of stamps required, it was provided that the basis of award should be the actual issues for the year ended December 31, 1884, except as to the special delivery stamps just authorized by the act of March 3, 1885, the number of which was estimated at 5,000,000 for one year. It was provided, however, that the contractor should furnish all the stamps that might be required during the contract term; without reference to the numbers specified as the basis of award.

The following in the blank form of proposals furnished to bidders will sbow the several kinds and numbers of stamps constituting the ba is of award, and the classification of the bids for the various methods of doing the work, viz:

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To insure the good faith of bidders, and the just performance of the contract, it was provided as follows:

Each proposal must be signed by the individual or partnership making it, and when inade by a partnersbip the pame of each partner thereof must be dinclosed; and it wust be accompanied with a guarantee, signed by at least two responsible guarantors, tbat the bidder.sball, within ten days after being called upon to do so, execute a contract, with at least two good and suficient sureties of the character, and to be certified as hereinafter required, to furnish promptly, and in quantities as ordered, tho article or articles to be furnished by him, and faithtoully and diligently to keep, perform, and abide by each and every of the requiremenis, provisions, and terms of such covtract, and these specifications to be thereto annexed, the responsibility and sufficiency of the signers to such guaranty to be certified to by a district or circuit judge of the United States; and by such contract the contractor and his suretics shall covenant and agree that in case he said contractor shall fail to do or perforin all or any of the covenants, stipulations and agreements of said contract on the part of the said contractor to be performed as therein set forth, the said contractor avd his sureties shall forieit and pay to the United States of America the sum of $200,000, for which said forfeiture the said contractor and bis sureties shall be jointly and severally liable, as - fised, settled, and liquidated damages, and not as a penalty to be sued for in tho name of the United States. Such sureties shall justify their responsibility by affidavit, slowing that they severally owy and possess property of the lear value in the aggregate of $400,000 over and above all debts and liabilities and all property by law exempt from execution, to be sworn to before a district or circuit judge of the United States, and to be approved by him.

If the bidder to whom the first award may be made should fail to enter into a contract, as herein provided for, then the award may be annulled, and the contract let

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