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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 en velopes of 148,000, or 18.9 per cent.

The requisitions upon which the foregoing supplies were issued numbered as follows:

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These supplies were made up and forwarded in the following number of parcels :

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

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POSTAGE ON SECOND-CLASS MATTER.

The weight of newspaper and periodical (second class) matter mailed during the year from regular offices of publication and from news agencies, not including free circulation within the county of publication, was 101,057,963 pounds, or 50,528883 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 the 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 princip.il post-offices in the United States:

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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 prepa rations for introducing the system for the special delivery of letters, provision for which was 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 the stamp: A line engraving on steel, oblong in form; dimensions, 1 by 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 shield bearing the numeral "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-quarters 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 Card," 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 received 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 meas ures 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 STAMPS.

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, use, 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 manufactured, and are at all times subject to the control of the Postmaster-General); the 6755 P M G-41

mode of manufacturing the stamps in all its several branches; the manner of packing, storing, and issuing the stamps; 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 disposition of the spoiled work and of the stock remaining on hand at the close of the 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 office 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 definite 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 specifications 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 specifications 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 extremely unsatisfactory work. It was claimed, however, just prior to the issue of the advertisement for the present contract, by parties proposing to enter the competition, that recent inventions aud improve 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 unsatisfactory to the Postmaster-General, he 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 show 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 made by a partnership the name of each partner thereof must be disclosed; and it must be accompanied with a guarantee, signed by at least two responsible guarantors, that the bidder shall, within ten days after being called upon to do so, execute a contract, with at least two good and sufficient sureties of the character, and to be certified as hereinafter required, to furnish promptly, and in quantities as ordered, the article or articles to be furnished by him, and faithfully and diligently to keep, perform, and abide by each and every of the requirements, provisions, and terms of such contract, 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 sureties shall covenant and agree that in case the said contractor shall fail to do or perform 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 and his sureties shall forfeit and pay to the United States of America the sum of $200,000, for which said forfeiture the said contractor and his sureties shall be jointly and severally liable, as fixed, settled, and liquidated damages, and not as a penalty to be sued for in the name of the United States. Such sureties shall justify their responsibility by affidavit, showing that they severally own and possess property of the clear 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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