2 1935 CONTENTS Сорез 2 Page Hon. John J. Cochran, a Representative in Congress from Missouri__ Vincent C. Burke, Deputy First Assistant Postmaster General__ K. P. Aldrich, chief post-office inspector_-- E. A. Meeks, secretary and representative National League of K. P. Aldrich, chief post-office inspector_. Mrs. Mark Lansburgh, acting for Medical Women's National Associ- ation, National Board of the Young Women's Christian Association, National Council of Jewish Women, National Women's Trade Union League, and Women's Homeopathic Medical Fraternity-- Mr. Grover Ayers--. Page Miss Agnes G. Regan, National Council of Catholic Women_. OFFENSES AGAINST THE POSTAL SERVICE FRIDAY, MARCH 8, 1935 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE No. 8 OF THE COMMITTEE ON THE POST OFFICE AND POST ROADS, Washington, D. C. The subcommittee met at 10 a. m., Hon. William A. Ashbrook (chairman) presiding. Mr. ASHBROOK. We will hear from Mr. Cochran on his bill no. 154. (The bill is as follows:) [H. R. 154, 74th Cong., 1st sess.] A BILL To punish fourth-class postmasters who inflate their cancelations by mailing or causing to be mailed at their offices matter which would not have been so mailed but for the extra compensation accruing to the postmaster Be it enacted by the Senate and House of Representatives of the United States of American in Congress assembled, That section 208 of the act of March 4, 1909 (35 Stat. 1128; U. S. C., title 18, sec. 331), is hereby amended to read as follows: "Whoever, being a postmaster or other person employed in any branch of the Postal Service, and being intrusted with the sale or custody of postage stamps, stamped envelops, or postal cards, shall use or dispose of them in the payment of debts, or in the purchase of merchandise or other salable articles, or pledge or hypothecate the same, or sell or dispose of them except for cash; or sell or dispose of postage stamps or postal cards for any larger or less sum than the values indicated on their faces; or sell or dispose of stamped envelops for a larger or less sum than is charged therefor by the Post Office Department for like quantities; or sell or dispose of, or cause to be sold or disposed of, postage stamps, stamped envelops, or postal cards at any point or place outside of the delivery of the office where such postmaster or other person is employed, or induce or attempt to induce, for the purpose of increasing the emoluments or compensation of such postmaster, or the emoluments or compensation of any other person employed in such post office or any station thereof, or the allowances or facilities provided therefor, any person to purchase at such post office or any station thereof, or from any employee of such post office, postage stamps, stamped envelops, or postal cards; or mail or cause to be mailed at a post office of the fourth class primarily for the purpose of increasing the emoluments or compensation of the postmaster thereat any matter which otherwise would not have been so mailed; or sell or dispose of postage stamps, stamped envelops, or postal cards, otherwise than as provided by law or the regulations of the Post Office Department, shall be fined not more than $500 or imprisoned not more than one year, or both." STATEMENT OF HON. JOHN J. COCHRAN, A REPRESENTATIVE IN CONGRESS FROM MISSOURI Mr. COCHRAN. Mr. Chairman, about 2 years ago, I ran across what I call a racket among the fourth-class postmasters. I do not attempt in any way to indict all the fourth-class postmasters. It is only the 1 dishonest fourth-class postmasters that I am after. The country is full of honest men and women serving as fourth-class postmasters, and I think that each one of them would endorse the passage of this bill. Mr. ASHBROOK. If they are honest. Mr. COCHRAN. The fourth-class postmaster is paid upon the basis of the amount of stamps that he cancels. I have found, at the outset, that there was a large number of fourth-class postmasters who were using various means to advance their earnings by shipping eggs, and other things, by parcel post, that they otherwise would not ship if it were not for the fact that they were reimbursed for the amount of the stamps used. I called it to the attention of the Post Office Department and they immediately turned it over to the post-office inspectors, and they have merely scratched the surface. So far they have required fourth-class postmasters, I understand, to return to the Government over $50,000, where they admitted that they had purposely used the mails in order to cancel the stamps and increase their earnings. There is a very interesting story about how they would ship oyster shells, bricks, and have men in their home town send groceries through the parcel post to some customer, and would not charge the grocer, but they would put the stamps on and cancel them. They ran across a man up north who would write a large letter on a board two or three times a week, and send it through the mail and cancel the stamps on the board. In that way, of course, his earnings increased. The Department advised me that they have just merely scratched the surface, as I say. They have by regulation attempted to stop this, but there was no law by which you can punish them. They can be dismissed, and the purpose of this bill is approved by the Department, which is to stop this practice, which, as I say, has developed into a racket. No doubt some representatives of the fourth-class postmasters will oppose the bill, but I repeat, there is absolutely no reflection upon the honesty of the postmaster or postmistress, and they will not oppose the bill. In fact, many of them have told me that they will not oppose the bill. I feel that it is good legislation, and the chief post-office inspector is here to tell you what they have encountered. Mr. Burke knows all about it, and I would like to see the bill get a favorable report. I think, after you hear the evidence, you would feel justified in making a favorable report. For instance, you take a man in Louisville, and he is shipping eggs into Washington by parcel post, and it costs about three times as much to ship the eggs here by parcel post as it would cost to send them by express or truck. I do not say that it is the Louisville postmaster, but an outlying postmaster in Kentucky. At the same time, you might look into the number of fourth-class postmasters we have in this country, thousands and thousands more than we need. I understand that Kentucky has more than any State in the Union. A man out in my State, in the middle of Missouri, shipped 10 cases of eggs, and he can send them into St. Louis for 25 cents a case, 35 cents or 50 cents by express. But what does he do? He ships the 10 cases of eggs to New York City by parcel post, with probably $2 worth of stamps on each case of eggs. What for? Solely for the purpose of canceling those stamps in his office, so that his salary goes up. Mr. DOBBINS. You mean, Mr. Cochran, that that is actually done? Mr. COCHRAN. Wait until you hear the inspectors tell you. It is done, absolutely, from Missouri to New York. I made an examination up in the post office and went up there and saw the shipments of eggs come into the St. Louis post office, labeled for New York City, just covered with stamps. They found out where men were shipping oyster shells. Mr. DOBBINS. Has not his removal been recommended, if that has been established? Mr. COCHRAN. They have removed a large number of men, and they have made them pay. They will make their report to you. Mr. ASHBROOK. Does not the postmaster have to account to the Government for the stamps? Mr. COCHRAN. Yes; he is paid on that basis. Mr. ASHBROOK. I know he is, but where does he profit if he pays for the stamps himself? He is paid on cancelation? Mr. COCHRAN. The first $100 worth of stamps he sells, I believe he gets a certain amount, 85 percent. Mr. DOBBINS. He does not directly gain, but gets his mail transported for nothing? Mr. COCHRAN. He gets a very large proportion in money of the stamps he cancels. It used to be on the basis of the selling, but it was found out they would take several hundred dollars worth of stamps and ship them to somebody in a big city, and they would be paid, and now they pay them on the basis of the cancelation. Mr. ASHBROOK. I was a fourth-class postmaster under the Cleveland administration. I have learned something today I did not know anything about. Mr. COCHRAN. I think when you hear the reports from the representatives of the Department, you will feel that you are justified in reporting this bill, and I hope you can. Thank you very much. Mr. ASHBROOK. Is there anyone here who wishes to speak for or against this bill? Mr. COCHRAN. Mr. Burke tells me that the Postmaster General is not in favor of the bill, but the Department did draw the bill at my request. I cannot see why the Postmaster General would not be in favor of getting rid of a racket of this kind. Mr. DOBBINS. What office of the Department drew the bill, Mr. Burke? Mr. BURKE. The bill was drawn last year, Mr. Dobbins. Mr. ASHBROOK. Do you care to make a statement, Mr. Burke? Mr. ASHBROOK. We would be glad to have you. STATEMENT OF VINCENT C. BURKE, DEPUTY FIRST ASSISTANT POSTMASTER GENERAL Mr. BURKE. All of this legislation was considered carefully at a staff meeting in the Department, which included the Postmaster General and all of the assistants and the executive staff. The con |