iBnv 
 ^336 
 
 Duke University Libraries 
 Report of the P 
 Conf Pam #336 
 
 DTTDEDflmx 
 
11 E p o n T 
 
 OF THE 
 
 POSTMASTER GENERAL. 
 
 POSTOFPICE Dr.PARTMr.XT, ) 
 
 Richmond, J'a., November 7, 1861. ) 
 To THK Pbesidcxt : 
 
 Sir : I have the honor to submit the follo'.ving report of the opera- 
 tions of the Postoffice Department since my report of the 2d of May 
 last, and to ask for such alditional legislation as will meet the exi- 
 gencies of the public service : 
 
 The accounts of this Department for the fiscal year which cndleil the 
 30th of June, l&6(, cannot be settled so as to enable the Auditor to 
 make a full exhibit of its receipts and expenditures for the past year 
 before the latter part of this month. 
 
 He has prepared, however, tabular statements (A, V> and C.) here- 
 with subraittc'l, showing the receipts and expenditures of the Depart- 
 ment for the first, second and tliird quarters of the fiscal year. This 
 exhibit of the condition of the finances of the Department is imperfect, 
 on account of the fact that the returns from tho States beyond the 
 Mississippi have been but partially received, and do not exhibit the 
 full amount either of the receipts or expetiditures for those States. 
 
 From these tables it will be seen that the whole amount of the re- 
 ceipts for those three quarters from letter postage, newspiipcr postage, 
 sales of postage stamps, surplus of emoluments from box rents and 
 miscellaneous receipts, was two millions niae hundred an 1 sixty eight 
 thousand one hundied and sixty-four dollars and sixtr-three cents, 
 (§2,CGS,l(;i 6J.) And that the total of expendi«-.urci' for the sime 
 period was one million five hundred and seventy thousand three hundred 
 and eighty-seven dollars and ninety four cents, (§1.57 1), 387 9 1) Of this 
 sum sixty-two thousand five hundre-i an*! twenty-seven dollars and three 
 cents (!$')2,537 03) was paid for postal service performed in tho Con- 
 federate States before this Department took charge of the postal ser- 
 vice, and under the authority of ">-l'i nd to jvcindz for the pai/nient of 
 sums ascertained to be due fur postal service to dti.zais of the Vovfudcrun' 
 
2 
 
 Sttilfs by the Postmaster General,''' approved September 27, 18G2. It 
 ^ ill be seen that, excluding this latter sum, the exces3 of the revenues 
 over the oxpenditures of the Department for these three (juurters ia 
 one million four hundred and sixty thouoaml three hundred and three 
 dollars and seventy-two cents, (Si ,46(1, 3(i3 72.) This large excess 
 of receipts over expenditures will be materially reduced on the coming 
 in and settlement of the accounts for the service beyond the Missis- 
 sippi. But there will still be a large excess of receipts over expendi- 
 tures, • 
 
 By comparing this with the former reports of the Au'litor, it will be 
 seen that the financial condition of the Departnjcnt exhibits a grati- 
 fung increase of its revenues over its expenditures. 
 
 As the account of the receipts and expenditures of the Department 
 for the past year cannot now be made up, I have submitted no esti- 
 mates for the appropriation of its revenues for the year ending June 
 S(\ 1866, but as soon as this account can be prepared, which will 
 probably be during the ensuing session of Congress, I will submit the 
 iiccessary estimates. 
 
 Finance Bureau. 
 
 The report of the Chief of the Finance Bureau shows that there was 
 in the Treasury and its branches, to the credit of the Postoffice 
 Department, on the 3tlth of June, 18C3, $2,109,237 93 
 
 The amount depositi d by postmasters east of the Mis- 
 sissippi river, in the Treasury and its branches, to 
 the credit of this Department, from the Istof July, 
 1863, to the 30th of June, 1864, was, 2,814,720 74 
 
 Leaving ia the Treasury and its branches, on the 30tb 
 
 of June, 1864, $4,923,953^67 
 
 This Department has not yet been advised of the amounts deposited 
 by postmasters in the branches of the Treasury, west of the .Mississippi 
 river, since the Istof July, 1863, and the above sum will be increased 
 on the coujing in of the necessary information by the sums deposited 
 there. 
 
 The number of warrants on the Treasury and its branches, issued 
 
 by this Department in payment of its liabilities from the 1st of 
 
 July, 1863, to the 3Uth of June, 1864, was 1,248, amounting 
 
 to, $ 844,334 05 
 
 Leaving in the Treasury and its branches to the credit 
 
 of this Department ou 30th of June, 1864, 4,079,624 04 
 
 Which is distributed as follows, to wit : 
 
 Augusta, S 68,067 72 
 
 Charleston, 652,838 71 
 
 Chattanooga. 182,.545 76 
 
 Montgomery, 63,088 83 
 
 Carried forward, $966,341 03 
 
Brought forward. 
 New Orleans, 
 Raleigh, 
 Richmond, 
 Savannah, 
 Selma, 
 Wilmington, 
 Galveston, 
 Little Rock, 
 Amount transferred by warrant from Richmond to 
 
 Shrevcport, December 12, I8G1, 
 Amount placed in depositories of the Treasury to be 
 
 retired from circulation, and to be substituted by 
 
 new notes, under the " Act to reduce the currency 
 
 and to authorize a new issue of notes and bonds," 
 
 Making, as above, $4,079,6 24 04 
 
 
 r-rr 
 
 
 -■- 3 
 
 $966,341 
 
 02 
 
 196,130 
 
 09 
 
 67,212 
 
 46 
 
 1,853,223 
 
 04 
 
 101.358 
 
 64 
 
 35,51)3 
 
 31 
 
 26,599 
 
 SO 
 
 93,107 
 
 43 
 
 4,656 
 
 22 
 
 100,000 
 
 00 
 
 635,492 53 
 
 Number of drafts drawn on postmasters in payment of the liabilities 
 of the Department from the Istof July, 1863, to the 30th of June^. 
 1861, was 1,631, amounting to, $238,723 82 
 
 Amounts paid by warrants, as above stated, 844,334 63 
 
 Making a total of payments by drafts and w^ar- 
 
 rants of 
 
 $1,083,058 45 
 
 The number, denominations and value of the postage stamps sent 
 out from the 1st of July, 1SG3, to 30th June, 1864, was as follows: 
 
 Quarters. 
 
 2 cents. 
 
 5 centa. 
 
 10 cents. 
 
 20 cents. 
 
 Value. 
 
 From Ist July to :iOih 
 
 >c(jfem'i'T, I8(i3... 
 From l.st 'tober to 
 
 aisr, Dec. 18(5;; , 
 
 From lot January to 
 
 3l9t Maroh, 1S64... 
 FroinLit Auriltoaoth 
 
 June, 1S6) 
 
 $199,300 
 211, .100 
 249,100 
 209,500 
 
 $360,800 
 501,200 
 
 2,419,400 
 3i5,200 
 
 $6,994,400 
 7,077,200 
 8,718,800 
 
 10,6fi0,0eo 
 
 $39,000 
 211,400 
 1,120,90 
 461,400 
 
 ja.T 1,850 00 
 
 779,286 00 
 
 1,222.012 00 
 
 1,180,230 00 
 
 
 Total 
 
 $S69,200 
 
 $3,626,600 
 
 $3.'<,450.400 
 
 $1,833,300 
 
 $3,743,378 00 
 
 
 
 
 
 Making an aggregate of 39,779,500 atampsi, amounting to $3,713,378. 
 
 The number of dead letters opened, and containing $20,705 58 in 
 money, registered and seat out for delivery from July 1st, 1853, to. 
 June 30tb, 1804, was, 1,995- 
 
 Number of dead letters opened and filed, containing 
 
 $18,995 19 in money, not sent out during the year, 1,529 
 
 Carried forward, 
 
 3,524 
 
Brought forward, 3,524 
 
 Number of dead letters containing drafts, checks, bills 
 of exchange, and other enclosures of value, amount- 
 ing to $665,6 1 1 95, registered and sent out for deliv- 
 ery, 871 
 
 Tftal number of dead letters containing $39,700 77 
 
 in money, and $6G5,()11 05 in other valuables, 4,U95 
 
 2sumber of unpaid letters held for postage and return- 
 ed to the dead letter office, 15,100 
 
 Number of drop letters held for postage and returned 
 
 to the dead letter office, 2,815 
 
 Number of dead letters without enclosures of value, 5GO,673 
 
 Total number of dead letters opened from July 1st, 
 
 1863, to June 30th, 1864, 5^2.983 
 
 The number of quarterly returns from Postmasters re- 
 ceived and passed to the Auditor for adjustment, 
 from the Ist of July, 18U3, to the 30th of June, 
 
 1864, was, ' 15,815 
 
 Military Telegraphing. 
 
 Th<f superintendent of military telegraphing has submitted a de- 
 tailed report of that branch of the service, for the year which ended 
 June 30ih, 1864, of which the following is a summary. The only 
 preliminary explanation neces^iary is that I had instructed him to keep 
 ::n account, at current rates, of what would have been the cost of all 
 messages sent free on account of the Government over these lines, for 
 the purpose of ascertaining to what extent the (jrovernment is being 
 remunerated for their construction. This will explain the causo of 
 the introduction of figures on this subject. 
 
 Number of agents and operators in service July 1st, 1863, 33 
 Number of agents and operators appointed since July 1st, 
 
 1863, ' 71 ' 
 
 Total number employed during the year, 104 
 
 Number of operators resigned, 50 
 
 Number of operators dismissed, 3 
 
 Total number of operators' services discontinued, 53 
 
 Leaving in service June 30th, 1864, 51 
 
Number of watclimen in service July 1st, 1863, 9 
 
 Number of watchmen appointed since July 1st, 1863, 2 
 
 Total number employed during the year, 11 
 
 Number of watchmen resigned, ' 2 
 
 Number of watchmen dismissed, 1 
 
 Total number of watchmen's services discontinued, 3 
 
 LeaTing in service June 30th, 1864, 8 
 
 Number of military offices in operation July 1st, 1863, 33 
 Numbet of military offices opened since July Ist, 1863, 7U 
 
 Total number of offices operated during the year, I (''3 
 
 Number of offices discontinued, o8 
 
 Leaving in operation June 3i)th, 1864, 4o 
 
 Number of miles of line in operation July 1st, 1863, 447 
 Number of miles of line constructed since July 1st, 18G3, 197 
 
 Total number of miles operated during the year, 644 
 
 Number of miles taken down, 36 
 
 Number of miles abandoned, 147 
 
 Total number of miles abandoned and taken down, 183 
 
 * - 
 
 Number of miles in operation June 30th, 1864, 461 
 
 Cost of operators and agents from July Ist, 
 
 1863, to June 3(Uh, 1864, §28,037 45 
 
 Cost of watchmen from July Ist, 1863, to 
 
 June 30th, 18G4, 6,216 66 
 
 Total cost of operators, agents and watch- 
 men, $34,254 11 
 
 Cost of instruments and materials, 32,841 45 
 
 Cost of repairs of lines and instruments, 1,685 89 
 
 Cost of construction of 197 miles of line — 
 
 average glo5 85 1-2 per mile, 20,683 45 
 
 Cost of incidental expenses, offices, &c., 1,690 07 
 
 Total cost of building, operating, kc, for 
 
 the year, <^91,154 97 
 
6 
 
 Receipts from offices for the J ear, $8,659 63 
 
 Government busineps sent free, which, if it 
 
 had been paid for, would amount to, 87,729 84 
 
 Total business during the year, $96,389 47 
 
 Less expenditures, 91,154 97 
 
 Excess of actual business over expenditures, S5.234 50 
 
 Value of Propertv on H ^nd and in use June 30th, 1864 — Estimated. 
 
 461 miles of line in operation, $495,520 00 
 
 Instruments and materials, 111,232 05 • 
 
 Total value of property on hand June 30ih, 
 
 1SG4, $606,752 05 
 
 Recapitulation of Military Telegraphing — Receipts. 
 
 Balance on hand from last annual report, $6,369 S7 
 
 Receipts from offices, $3,659 63 
 
 Receipts from Treasury -warrants, 1 1(1,000 00 
 
 '. 118,659 GS 
 
 Total receipts, $l!^5,0-29 00 
 
 Expenditures. 
 
 Amount paid operators and agents, $28,037 45 
 
 Amount paid watchmen, 6,216 66 
 
 Amount paid instruments and materials, 32,841 A5 
 
 Amount pnid repairs, 1,685 89 
 
 Amount paid construction, 20,683 45 
 
 Amount paid office expenses, etc., 1,6'Jil 07 
 
 Total expenditures, $91,154 97 
 
 Old issue deposited with C. S. Treasurer, 17,028 57 
 Balance on hand to next account, 16,845 46 
 
 $125,029 00 
 
 Trans-Mississippi Postal Agency. 
 
 The organization of a branch of the postal service west of the 
 Mississippi river, under the authority of the act of Februnry 10th, 
 1864, has, under the efficient management of Dr. James li. Starr, the 
 ^agent of the Department, been completed, and much has been dono 
 
towards the restoration of the service there. Sufficient time has not 
 elapsed to cn;ible hira and the Auditor for that Department to complete 
 the settlement of all the accounts for past service there ; but it is be- 
 lieved they have all the material necessary to enable them to settle 
 these accounts without much more delay 16 the creditors of the De- 
 partment. 
 
 The large number of books, and amount of postage stamps, sta- 
 tionery, blanks, etc., and the instructions furnished by this Depart- 
 ment, preparatory to the organization of a branch of the service 
 there, as shown in my last report, reached the agent at Marshall, 
 Texas, without loss or injury; and considerable amounts of blanks, 
 stationery and postage stamps, and some additional books, have since 
 been forwarded. 
 
 Increase of Commissions to Postmasters. 
 
 Owing to the increased cost of clerk hire, house rent, fuel, lights, 
 etc , the commissions allowed to postmasters by •' An act regulating 
 the compensation of deputy postmasters," approved April 2l3t, 1862, 
 are found insufficieat to cover the necessary expenses of the post- 
 offices. The present rates of commissions were adopted in view of the 
 increase of the rates of postages under the act of April 19th, 1862, 
 in lieu of the higher rates which were allowed by law before that 
 time, and would have been sufficient to meet the expenses of the 
 post-offices but for that depreciation. These commissions, together 
 with the emoluments derived from box-rents, furnish the fund out of 
 which the compensation of postmasters and their clerks, office rent, 
 fuel, lights, and other expenses of the post-offices are paid. And I 
 recommend, as necessary to the efficiency of the service, the increase 
 of the rates of commissions, to be allowed to compensate postmasters, 
 and pay the expenses of the offices as follows, to wit : 
 
 On any sum not exceeding one hundred dollars, sixty per centum, 
 and, where the mails arrive regularly between the hours of nine 
 o'clock at night and five o'clock in the morning, seventy per centum. 
 On any sum over one hundred dollars, and not exceeding four hun- 
 dred dollars, fifty per centum. On any sum over four hundred dol- 
 lars, and not exceeding twenty-four hundred dollars, forty per cen- 
 tu.-n, and on all sums over twenty-four hundred dollars, twenty per 
 centum ; leaving the rate of commission on matter for distribution 
 as it now stands. 
 
 Increase of Maximum Compensation to Certain Postmasters. 
 
 And I recommend an increase of the maxmum rate of compensation 
 to the postmaster of the city of llichmon<l, Virginia, to six thousand 
 dollars per annum. And that the niixiiDum rate of compensation of 
 the postmasters at Petersburg, Virginia, Kaleigh and Wilmington, 
 North Carolina, Charleston and Columbia, South Carolina, Augusta 
 iind Sivaunah, Georgia, and at Montgomery and Mobile, Alabama, be 
 increased to five thousand dollars per annum. 
 
Increase of CoMrKNSAriON allowkd to SptciAL Agents. 
 
 The compensation now allowed by law to the special agents of this 
 department is sixteen hundred dollars per annum, with a per diem 
 allowance, in ad<lition, of ton dollars for travelling; expenses. The 
 annual pay and per diem allowance together are not sufficient to pay 
 their travelling expenses, leaving out of view their necessary cloth- 
 ing and the support of thi'ir families. They are charged with very 
 important and re.«!ponsible dutit'S, which can only be performed properly 
 by men of good ability and business qualiGo.itions. There are but nine 
 of these special agents ; and I respectfully recommend thiit their 
 :innual compensation be increased to three thousand dollars per 
 annum, in addition to the present per diem allowance. 
 
 I.NCKF.A?!: OK CoMFF.NSATIO.N ALLOWr.I) TO RoiTK AcL.NTS. 
 
 The route agents of this deportment are now allowed a compensa- 
 tion of eighteen hundred dollars per annum. Good business (jualifi- 
 cations are essential to the efficient an<i proper disch irgo of their 
 duties. And no class of officers under the Government is taxed with 
 iDorc unremitting and laborious duties. Theircompensation is inade- 
 quate ; and I respectfully recommend that their salaries btj iticreased 
 to such sum as shall be allowed by the J'ostmaster General, not 
 exceeding three thousand dollars per annum. 
 
 I.NCREASL OF CojlPENSATION OF AgeNT OF TIIF, PosTOFFICE DePART- 
 y.lLST FOR THE StaTES WEST OF THE MISSISSIPPI. 
 
 The compensation of the agent of the Postoffice Department for the 
 States west of the ^Mississippi, appointed under the act of February 
 ID, 18G4, is four thousand dollars per annum. The duties of this 
 officer are arduous, and his responsibility is next in importance to 
 that of the head of the ('epartmeut. His compensation is the same 
 as that now allowed, by law, to ordinary clerks in this city. I 
 recommend that it be increased to six thousand dollars per annum — 
 the amount allowed by the act of June 1-1, l8Gt, to the Assistant 
 Secretary of War, the A.ssi.-tuit Secretary of the Treasury, Assist- 
 ant Attorney General, and to the Comi'troller. 
 
 IiNCREASE OF Co.MTENSATlO.N OF IIkaDS OF BlREAUS. 
 
 The compensation of the heads of bureaus of this department, no-.r 
 allowed by law, is four thousand five hundred dollars per annum. 
 And without further legislation, it will be reduced to three thousand 
 dollars per annum after the first of January next, as the law giving 
 them this increase of salary above three thousand dollars expires, 
 by its own limitation, on that date. 
 
 Their compensation is, at this time, but five h*undred dollars more 
 
than that of the clerks in the several departments. It shouM be 
 increased to such an amount as will meet their ordinary expenses, 
 and the salaries of the heads of bureaus should be equalized. 
 
 Frauds on Rkvenues of the Department. 
 
 In my report of February 28th, 1862, and in a supplemental report 
 dated the luth of April, 1862, I called attention to the frauds then 
 being perpetri^ted on the revenues of this department by what is 
 known as the Southern Express Company, and to supposed difhoulties 
 in the way of their successful prosecution and punishment. By ihe 
 law of the 19th of April, 1862, entitled "An act to repeal certain 
 laws therein named, and to declare others in full force, in relation to 
 conveyance of mailable matter outside of the mail," the laws of the 
 Confederate States theretofore enacted, relating to the carrying of mail- 
 able matter by expre?s or other companies, were repealed, and the 
 laws which were in force on the same subject, prior to their enact- 
 ment were revived and put in force. Under the laws so revived, such 
 companies were forbidden to carry "any letters, packets or packases 
 of letters, or any other matter properly transmittible in the Confede- 
 rate States mail, except newspapers, pamphlets, magazines and period- 
 icals" ar;d excepting letters and packages enclosed in stampeii envel- 
 opes. And under this hitter exception, letters and packages, the 
 postage on v»-hich was prdd by stamps, cjuld not bo carried out of the 
 mail. So that, under those laws, if not changed or qualified by our 
 subsequent legi.slation, express and other companies are forbidden, 
 under a penalty of one hundred and fifty dollars for each offence, to 
 carry letters or packages, &c., other than newspapers, pamphlets, 
 magazines, and periodicals. Notwithstanding this state of the law, 
 the Southern Express Company continues to carry large numbers of 
 letters and packages over the post routes, in violation of the law, and 
 to the extent to which they do so, abstract from the revenues of the 
 department. This is generally done in bold defiance of the law and 
 of the constant eflforts of this department to prevent it. But more 
 recently they have, in numerous cases, adopted the subterfuge of 
 advising persons, who propose to send letters by them, to value them 
 as letters containing so much money, when it is known to both them 
 and the senders of such letters that they contain no money. Under 
 the supposition that they have the right to carry money-packages, 
 they adopt this device for the double pu^-pose of evading the law, and 
 of extorting a larger price for the conveyance of such letters. 
 
 It is a violation of law for express or other compa'.iies to carry 
 scaled packages, containing money or other mailable matter, along 
 the post routes ; and by the provisions of the law of the 29th of 
 April, 1SG3, "to presciibe the rates of postage on newspapers," &,c., 
 it is provided, "that the rates of postage on newspapers published 
 in the Confederate States, and sent to regular subscribers, shall be at 
 the rate of one cent for each paper not weighing over three ounces," 
 &c. * * "And the inland postage on every other newspaper, 
 and on each circular not sealed, hand-bill, engraving, pamphlet, peri- 
 
10 
 
 odical, magazine or other pnper, which shall be unconnected with any 
 manuscript or written matter, and not exceeding one ounce in wi.'ight, 
 shall be ons cent," &c. 
 
 The postage on newspapers and periodicals sent to regular subscri- 
 bers is required by the above named act'to be paid tjuarterly in advance, 
 either at the postoffice of the place where they are publi«hc<l, or at 
 the postoffice where they are delivered ; and the postage on all other 
 newspapers and periodicals, (that is, transient matter,) is required to 
 be pre-paid at the office at which they are mailed. It is not certain how 
 far the law above referred to qualifies the' laws of the United States, 
 which were revived and put in force by theactof April I9th, 18»i'i, re- 
 pealing the law8 of the Confederate States, and reviving those previous- 
 ly in force in relation to the crrrjing of mailable matter by express 
 and other companies. It has been the constant object of the Depart- 
 ment, from the first, to secure such legislation as would prevent all 
 competition with it, by express or other companies, in the carrying 
 of mailable matter over the post routes. And such was the effect of 
 our legislation, except as it was specilly limited to matter which such 
 companies were allowed to carry on the pre-payment of the postage ; 
 unless by inadvertence and without so intending it, the law of the 
 19th of April, above referred to, give to such companies the right to 
 carry newspapers, pamphlets, magazines and periodicals. 
 
 I copy so much of my report of November 27th, l.s61, as relates 
 to the discussion of this subject, and as sets forth reasons for making 
 the Department the exclusive carrier of all mailable matter. 
 
 ** This Department has encountered many complaints because, under ' 
 our legislation, postage is ro(>uired to be paid on all newspapers and 
 periodicals, (except those authorized to be sent free of postage, as 
 exchanges between publishers.) 
 
 '* Under the laws of the United States, as they stood up to Feb- 
 ruary last, newspapers and periodicals could be sent as freight by ex- 
 pressmen or others, along the post roads, free of postage. Under 
 our laws, all newspapers and periodicals are mailable matter, and can- 
 not be sent along the post roads without the payment of postage. 
 
 *' If Congress should allow them to be carried by expressmen and 
 others as freight, along the railroads and principal thoroughfares, it 
 will thus deprive the Department of the principal, or, at least, of a 
 very large part of the revenue derived from the postage on such mat- 
 ter, and would relieve the readers of p:ipers and periodicals, who 
 happen to be fortunate in living on these great thoroughfares, and 
 who, on that account, enjoy special advantages in obtaining the earliest 
 news, from the payment of that cl'>ss of postage, while that c'ass of 
 readers, not residing on those thoroughfares, and who, from that 
 cause, encounter greater delays and diffioullies in getting news, are 
 compelled, from the necessity of the case, to pay postage on such 
 papers and periodicals. This would be to compel one class of citi- 
 zens to contribute newspaper and periodical postage for the support 
 of the mail service, an<i" to e.-iempt another and more favored class 
 from that burden. And it is no just answer to this to say they all 
 
11 
 
 have the same privilege of employing expressmen. This may be 
 theoretically, but it is not practically, true. 
 
 *' It is believed to be true, however, that these complaints come 
 from the publishers and expressmen, and not eo much, if at al!, from 
 the rea'lers of papers and periodicals. And it is a sufficient answer 
 to ihem that class legislation is contrary to the theory of our Govern- 
 ment, and 'n violation of the cherished principles of equality and 
 justice, on which our institutions are founded. 
 
 *• On this subject justice requires it to be said that the legislation 
 of the United States, in relation to postage on newspaper.^ and peri- 
 odicals, cannot be accounted for on any principle of reason or fair- 
 ness. But it may be accounted for by the vast iniluence of those 
 publications over the popular mind, and especially over elections. It 
 is easily understood how a man might propitiate their favor by prom- 
 ising exemptions and gratuities to them, and how another might fail 
 to obtain that favor, who would steadfastly adhere to just and sound 
 principles, and refuse to purchase popular favor at the expense of 
 principle and of treasure which belongs to others. 
 
 " Our legislation on this subject is a marked improvement on that 
 of the old Government; and when the rates of postage on newspa- 
 pers and periodicals shall be made to approximate more nearly to an 
 equitable proportion with the postage on letters and sealed parkages, 
 it will be more in harmony with reason and fairness, and less obnox- 
 ious to the charge of class and partial legislation, than at present. 
 
 *' The Government has been vested with certain functions which it 
 was believed could be discharged with greater benefit to the public by 
 it than hy private (nterprise. 
 
 "Among these, was the establishment and management of our sys- 
 tem of postal communication, which is so necessary in conducting 
 the civil administration of the Government, and its military and 
 naval affairs, and of so incalculable importance to the public as a 
 means of conveying intelligence. Our theory is, that the Govern- 
 n*nt must provide the machinery of this Department and conduct its 
 operations, but at the expense of those who make use of its facilities. 
 That is, that this Department shall be self-sustaining. To make it 
 so, and to make its revenues secure, and their accrual steady and re- 
 liable, we declare letters, sealed packages, newspapers, periodicals, 
 pamphlets, tfec, to be mailable matter, and make their transmission 
 along the post-roads, otherwise than through the mails, unlawful. 
 The Government, ha\ing been charged with the heavy expense of 
 affording postal facilities to the country, is fully justified by reason 
 and necessity in adopting this means of making itself the exclusive 
 carrier of certain classes of matter at fixed and reasonable rates of 
 compensation, to re-imburse that expense. And if the Government 
 should be required to carry the newspaper and periodical mail in the 
 sparsely settled portions of the country, where the matter to be car- 
 ried is too limited to justify express or other private companies in 
 doing it, and where it can only be done by the Department at a loss 
 of itti revenues, and if, at the same time, it shall allow this class of 
 mail matter to be carried by express or other private companies along 
 
12 
 
 the railroa«l3 and other preat thorouglifures, where its amount wouW 
 incicase the rcvcnnes of the Departmeat, it is difficult to understand 
 why we shall not also allow the express and other companies to carry 
 the letter-mail on the railroads and other great thoroughfares, where 
 it is profitable, and allow the Government to be the exclusive carrier 
 of all classes of matter on such routes only as pass through sparsely 
 settled portions of the country, which affords but little revenue. 
 
 ♦' To do this would end in breaking down the Department, or in 
 keeping it in operation at the expense of the general Treasury. The 
 policy of allowing mail matter to be carried as freight, wherever it 
 may be profitable to private carriers, creates rivals who are invited 
 by their interests to contend with the Department for its revenues on 
 all the most important lines of postal communication; those which 
 are most expensive to the Department, and most difficult to control. 
 Such a policy would be both unwise and disastrous, and I cannot too 
 strongly recommend the continuance of the policy of refusing to al- 
 low newspapers and periodicals to be carried over the post-roads as 
 freight, and of requiring the payment of postage on them as on all 
 other mail matter." 
 
 To this end, and to prevent, in future, all pretext for the frauds so 
 constantly perpetrated by the Southern Express Company, I recom- 
 mend the enactment of a law providing that it shall be unlawful, in 
 future, for any express or other company, or person, or association, 
 running regularly or periodii.ally over post routes, to carry any 
 mailable matter; and that such penalties, by both fine and imprison- 
 ment, be prescribed as will effectually prevent its violation, or im- 
 pose on those so ofiendiug adequate punishment. And to avoid such 
 doubts as have heretofore grown out of questions, as to the corporate 
 existence and identity of offenders, the law should be so framed as to 
 reach them, whether incorporated or not, and to reach all persons 
 acting for such corporations, associations, or persons, as agents, em- 
 ployees, or servants ; and, also, all persons who procure, or attempt 
 to procure, such parties to violate the law, and such as, in any wjnr, 
 aid or assist them. Experience has shown that nothing short of the 
 most stringent and thorough legislation, excluding all doubts and 
 guarding against evasions, will correct this evil. 
 
 CoMPENS.VTrOX TO R.V1LR0AD3. 
 
 By the law of the Olh of May, 18G1, amending an act vesting cer- 
 tain powers in the J'ostmaster General, the railroads in the Confede- 
 rate States were divided into three classes; and the maximum rate of 
 compensation for carrying the mails, allowed to those of the first 
 class, was one hundred and fifty dollars — to those of the second class, 
 one hundred dollars — and to those of the third class, fifty dollars per 
 mile per annum; and to the rate of compensation allowed, twenty • 
 five per centum is allowed to any railroad on which one-half of the 
 service is required to bo performed in the night time. These rates 
 were a'^'reed to between the Department and a Convention of railroad 
 
13 
 
 officers, and were a considerable redaction of the maximum rates of 
 compensation previously allowed to first class railroads. But the 
 Department took upon itself, at the same time, the expense of the 
 messenger service between the railroad depots and the postoffices not 
 immediately on the railroads. This arrangement was consented to 
 by the railroad companies, in a spirit of patriotism, to aid the De- 
 partment to meet the requirement of the Constitution, that its ex- 
 penses should be paid out of its own revenues. Since that time, the 
 depreciation of the value of our currency has been such, that the 
 sum now paid railroads for carrying the mails bears no just propor- 
 tion to the value of the services performed. An<l, at the present 
 value of our currency, no sum that the revenues of the Department 
 would now enable it to pay, and, at the same time, meet its other lia- 
 bilities, woulil probably furnish an adequate compensation. But I 
 recommend that the law be so changed as to make the maximum com- 
 pensation to first class railroads two hundred and twenty-five dollars 
 — of second class railroads, one hundred and fifty dollars — and of 
 third class railroads, seventy-five dollars per mile per annum, with 
 the addition of twenty-five per centum for night service. 
 
 On account of the absence of the larger number of the clerks of 
 this Department, and of the First Auditor's office in the trenches, in 
 defence of the city, for several weeks past, I have not been able to 
 submit as full and satisfactory a report of the condition of the busi- 
 ness in the several bureaus as usual. 
 I have the honor to be. 
 Very respectfully, 
 
 Your obedient servant, 
 
 JOHN H. REAGAN, 
 
 Postmaster General. 
 
u 
 
 [A] 
 
 STATEMENT Erhihitinf^ the Receipts of the Tos'nffice Bcparlimnt, 
 under their respective heads, during the Sd ajid 4th quarters, 1868, 
 and \st quarter, 186-1. 
 
 
 
 8J Qimrler.l 4!li 
 
 Qn:irter, 
 
 litis. 
 
 iBt Qniiner, 
 
 1S04. 
 
 Tolhl under A({grcft«tB. 
 • nch tH^nvl . 
 
 X.•^ - 
 
 Po- 
 
 iifiniphlfU, .. 
 -,ila, 
 
 1 IM 911 ri7i| 
 f.!» i S OS' 
 «98,B29 M.l 
 
 8711 10 
 
 ;42 HUG 7ii 
 
 02 958 70 
 
 716 Oil) 6.-. 
 
 .^43 25 
 
 1 1;-.0;}S4 94 
 
 K 9B8 77 
 
 679. 00 64 
 
 2 3(4 81 
 
 191,851 j-a 
 
 1 4IS.I!<.S m 
 
 ItH.S.VI fS 
 
 «,14»2.')U 79 
 
 8.518 16 
 
 I91,ii:<l 8-i 
 
 
 em; 
 
 :mpn's, 
 
 
 
 
 
 
 
 T 805 789 35 $ 
 
 9^^.21* 80 
 
 $ 1.0S0.210 9S 
 
 
 f 2,6«S,I64 68 
 
 Reiipect fully Bulimltled, 
 Hon. J. n. Hi:.lGA5, Postmaster Gcnfrnl. 
 
 ACDITOS'S OpFIC", POSTOFFIOI T>II'AIIT5I«»T, i 
 
 Jk'oBcmbcr 1st, ISC*. I 
 
 A. MOTSE, Jb., 
 
 Jlcting .111 (lit or. 
 
 [B] 
 
 STATEMENT exhibiting the Expenditures of the Posf.nfJce Department 
 under thtir lespective heads, for tJie third and fourth quarters, 1863. 
 and first quarter, 1864. 
 
 Classifleation of Expenditures. 
 
 1 
 3d Quarter, 4iL Quarter, 
 
 let Qiinrtor, 
 
 ise4. 
 
 Total under 
 each hi-ad. 
 
 Aggregate. 
 
 Tr^iiiBpiirtit on of tnlHiid ninlls, 
 
 Oomp -iiHiil^oii of pi)8tiiia»ter(> 
 
 Compi-iihiii oil of )iiHlcilHce clerkH,.. 
 Ship, Bloitnl.oat and way litlerB 
 
 $ 240 438 41 $ 2.')0,782 M 
 
 236,.S77 39 212,8l8 87 
 
 28 5^3 14 31 973 52 
 
 J63 f.4 121 73 
 
 1,^.91-. 08 l.l: 4 tU 
 
 8-4 10 68 50 
 
 2 00 
 
 $ 144 7-.'6 18 
 
 23ri,()T7 81 
 
 15 014 84 
 
 144 .M 
 
 C4o 91) 
 
 20 57 
 
 \W8.'>,S97 47 
 
 0^/),7; 57 
 
 75,071 .-,4 
 
 4-'9 78 
 
 3 l7i: 62 
 
 479 17 
 
 2 (iO 
 
 2S 057 2/) 
 
 25 (-34 -.0 
 
 1 fiO 
 
 ]S.:-,24 94 
 
 23 l;"4} 48 
 
 73,70.^ 76 
 
 
 
 
 Oflic" (umilure 
 
 Rl:iiik» and p' inline, 
 
 Wr.p|.in« p..I"T 
 
 Mni looli-, kc\H uim! olanipH, 
 
 Mail d«prf(l:ilioii8 and xpixial ai;eiili<, 
 
 
 l.Ui 75 VT 910 M 
 3,071 26, 12,3:M1 9 . 
 
 1 1 GO 
 
 6.373 22 8,r.(3 f)7 
 9fj6. 8i; 2,1 'S4 .'jS 
 64,220 17 7,9 9 IS 
 
 liUi 2 00 
 
 ""h,?44 1.^ 
 11 4S2 0(i 
 11,551 43 
 
 
 Miscuiluiieuutf pu> lUfUls, 
 
 
 
 5.^81.227 89 »^50,T44 65 
 
 i 438.415 4" 
 
 < 1 670 3<«7 94 
 
 ♦ Of thiH fliiiii, 882,527 08 wag paid f.ir postal service rerdercd in the S'ates of tho Cor>r deracy un- 
 der conirai'i or uppoliitineni uindo Vy thi> Jnilcd S'.Hteh Govonniiei.t b'fore tho Confederate Statea 
 look charge uf blcIi service. [See act approved Bej tctiibur 27, 18132, chapter 15]. 
 
 Respeetfully eubmitted 
 Hon. J. n. Rbioa^i Postmaster General. 
 
 Aci;:tou'3 Offick, PosTorFirR Dtahtmk.nt, > 
 Ji'ovember 1st, 1S64. \ 
 
 A. MOISE, Jb., 
 Acting yjuditsr. 
 
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ESTIMATES 
 
 For Service of the PcsUffice Depcrtment, avd fur Military TeUgraphing^ 
 from JcTiUary \st to June 30, 18G5. 
 
 PoSTOKFICE Df.PARTMKNT, ) 
 
 Rkhmond, Oct. 2l), 1864. \ 
 To THE President : 
 
 Sir : I have the honor, herc\\ilh, to submit duplicate copies 
 of estimates for appropriations for the service of the rostoflice 
 Dej)artment, for the period of six months from the let of January to 
 the ui'ih of June, ISGa ; and for additional appropriations for the ser- 
 vice of this department for the six months ending the Slst of Decem- 
 ber, 1864, made necessary by the act of the 14th of June, 1861, "to 
 increase the compensation of the heads of the several Executive 
 Departments, and the Assistant Secretary of War and the Treasury, 
 and of the Assistant Attorney General, and the Comptroller of the 
 Treasury, and other officers therein named.'' And also of estimates 
 for appropriations for the service of military tolcgraphini;, for the six 
 months from the 1st of January t) the 3Uth of June, 1865. 
 With great respect, vour obedient servant, 
 
 JOHN II. REAGAN, 
 
 Postmaster General. 
 
 PoSTOKFrCE Dki'art.mf.nt, ) 
 J'ijuuire liureau, Oct. 19, 1864. > 
 
 Hon. John II. Peagan, 
 
 Postmaster General : 
 
 Siu : I have the honor to submit the following estimates of the 
 sums required for the compensation of the Postmaster General, 
 Chiefs of Bureaus, clerks, messengers, and laborers of the PostolKce 
 Department for the six months from January Ist to June 3nth, 1865, 
 under the following named acts of Congress, to wit: "An act to 
 determine the salaries of the Vice President and the heads of depart- 
 ments," approved Ist February, 1861 ; "An act further to provide 
 for the organization of the PostolVice Department," approved 9th 
 March, 1861 ; "An act to amend an act further to provide for the 
 organization of the Postoffice Department," approved 11th 
 May, 1861 ; "An act continuing the provisions of an act approved 
 
17 
 
 13th October, 1862," approved 13th January, 1864; **An act to 
 increase the compensation of certain civil officers and employees in 
 the President's office and in the Executive and Legislative Depart- 
 ments, in Richmond, for a limited period," approved Silth January, 
 1864 ; "An act to continue in fierce and amend the provisions of an 
 act approved oDth January, 1864," approve I I3th May, 1864, and 
 "An act to increase the compensation of the heads of the several Execu- 
 tive Departments, and the Assistant Secretaries of War and the Treas- 
 ury, and of the Assistant Attorney Greneral, and the Comptroller of 
 the Treasury, and other officers therein named," approved 14th June, 
 1864. 
 For compensation of the Postmaster General at $9,000 per annum, 
 
 from 1st January to 14th June, 1865, $4,104 39 
 
 At $6,0y() per annum, from the loth to the 3Uthof June, 
 
 1865, 263 73 
 
 For three Chiefs of Bureaus, at §3,000 per annum, 4,500 00 
 
 For one chief clerk, at $4,000, from 1st January to 14th 
 
 June, 1,824 17 
 
 For one chief clerk, at $1,750, from 15th to the 3iith of 
 
 June, 76 92 
 
 For one disbursing clerk, at $4,000, from Ist January to 
 
 14th June, 
 For one disbursing clerk, at $1,500, from 15th to 30th 
 
 June, 
 For one topographer, at $4,000, from lat January to 
 
 14th June, 
 For one topographer, at $1,750, from 15th to 30th of 
 
 June, 
 For four principal clerks, at $4,000, frcm Ist January to 
 
 14th June, 7,296 70 
 
 For four principal clerks, at $1,500, from 15th to 3(lth of 
 
 June, 263 73 
 
 For forty-one clerks, at $4,000, from Ist January to 14th 
 
 June," ' 74,791 20 
 
 For forty-one clerks, at $1,500, from loth to 30th of 
 
 June,' 2,703 29 
 
 For two messengers, at $2,000, from 1st January to 14th 
 
 June, 1,824 18 
 
 For two messengers, at $750, from 15th to 30th of June, 65 94 
 
 For one messenger, at $1,600, from let January to June 
 
 14th, 729 67 
 
 For one n^sscnger, at $600, from 15th to 30th June, 
 For four laborers, at $6 per day, from Jan. 1 to June 14, 3,984 00 
 For four laborers, at $2 25, from 15th to 30th June, 144 00 
 
 1,824 
 
 17. 
 
 65 
 
 93 
 
 1,824 
 
 17 
 
 76 
 
 92 
 
 Total, $106,389 48 
 
 For contingent and miscellaneous expenses, from Ist January to 30th 
 June, 1865, twenty thousand dollars, $20,000 
 
18 
 
 I also respectfully ask an appropriation of twenty thousand dollars 
 ($20,0011) for rent,' fuel, gas lights, candles and water, for the post- 
 office for the city of Richmond, from 1st July, 1S64, to 30th June, 
 1RG5, under an act approved Ist May, 18(13. 
 
 I have the honor to he, very respectfully, kc, 
 
 J. L. LANCASTER, 
 Acting Chief nf Finance Biirenn. 
 
 PosTOFPicE Department, ) 
 Jiirhmond, October 19, y<64. S 
 
 lion. J. U. Rkagan, 
 
 Postmaster General : 
 
 Sir : I have the honor to submit the following estimates of the 
 auras required for the compensation of the Agent and clerks for the 
 Postoffice Department of the country west of the Mississippi river, 
 from 1st January to the 30th June, 1865, under the following named 
 acts of Congress, to wit : 
 
 ** An act authorizing the appointment of an agent of the Postoffice 
 Department and such clerks as may be necessary to carry on the 
 postal service in the States west of the Mississippi river," approved 
 ICth February, 1864 ; " An act to increase the compensation of 
 certain civil officers and employees in the President's office, and in the 
 Executive and in the Legislative Departments,"* approved 30th Jan- 
 uary, 1864, and " An act to increase t!ie compensation of the heads 
 of the several Executive Departments, and the Assistant Secretary of 
 War and the Treasury, and of the Assistant Attorney General and 
 the Comptroller of the Treasury and other officers therein named," 
 approved 14th June. 1864. 
 
 For compensation of the Agent oi uie i Dsuimcc [>(.;p;iniiii.;iu. wjst of 
 the Mississippi, at SlJ'iH) per a.inum, i'^^jOOO UO 
 
 For compensation of ten clerks in said l^epartmeut, at 
 
 $3,750 per annum, from 1st January to 14th June, I7,l<)0 50 
 
 For compensation of same at $l,50U per annum, iioui 
 
 iOtb to 3iith June, 65i) 35 
 
 ll 19,759 85 
 
 There will also be required an appropriation of $20,000 for the con- 
 tingent and miscellaneous expenses of this branch of the Department. 
 i have the honor to be, verv respectfully, c<:c., 
 
 J. L. LANCASTER, 
 ■■■' Acting Cuiff of Finance Bureau. 
 
19 
 
 POSTOFFICE DErARTMENT, 
 
 Bichmond, October 19, 1864. 
 
 Hon. J. 11. IJeagan, 
 
 ^ostiiimteo- General : 
 
 Sir : [ have the honor to submit the following estimates of the 
 sums required for the increased compensation of the Postmaster Gen- 
 eral, clerks and employees of the Postoffice Department in Richmond, 
 and for the clerks in the branch of the Department west of the Mis- 
 sissippi river, from the 1 iih June to 3ist December, li364, under 
 *' An act to increase the compensation of the heads of the several 
 Executive Departments, and the Assistant Secretary of War and the 
 Treasury, and of the Assistant Attorney General and the Comptroller 
 of the Treasury, and other officers therein named," approved 14th 
 June, 1864. 
 
 For increased compensation of the Postmaster General at ^;S,()(l() per 
 
 annum, $1,640 11 
 
 For one chief clerk at $1,000 per annum, 546 70 
 
 For three principal clerks at §!,oOO per annum, 1,64U 11 
 
 For one disbursing clerk at !$ 1,000 per annum, 546 70 
 
 For one topographer at $1,000 per annum, 546 70 
 
 For forty-one clerks at $1,000 per annum, 22,214 70 
 
 For two messengers at ^wOO per annum, 546 70 
 
 For one messenger at .$400 per annum, 218 68 
 
 For four laborers at $1.50 per day, 1,200 00 
 
 For compensation of ten clerks in the branch of the 
 
 Postoffice Department • west of the Mississippi, at 
 
 $750 per annum, 4,100 20 
 
 Making, $33, 200 60 
 
 I have the honor to be, very respectfully. 
 
 Your obedient servant, 
 
 J. L. LANCASTEPt, 
 Acting Ckief of Finance Bureau. 
 
 Office of C. S. Military Telegraph, > 
 Richmond, Va., Oct. 18th, 1864. J 
 
 lion. John II. Heagan, 
 
 Postmaster General : 
 
 Sir : I have the honor to submit the following estimates of the 
 sums required for tho compensation of agents, operators, and watch- 
 men, and for the cost of materials, construction, repairing and operat- 
 
to 
 
 ing military telegraph linet< for six u^onths from the let of Janunry, 
 1865, to June 3(lih, Ibtio, under the provisions of the act "relative 
 to telegraph lines of the Confederate States," approved May I 1th, 
 1861. 
 
 The actual expenditures for theso purposes for the six months 
 ijhich ended September SOth, 1.SG4, were as follows : 
 
 Amount paid agents and operators, ;S32,5(*9 83 
 
 Amount paid watchmen, 3.375 HO 
 
 Amount paid oifice expenses, 228 85 
 
 Amount paid office material, 22,'il)v) 33 
 
 Amount paid construction, 48,023 30 
 
 Amount paid repairs of lines and instruments, 2,126 85 
 
 Amount paid incidental expenses, 1,151 85 
 
 $99,616 01 
 
 The actual expenditures for the (juarter ending September 3()th, 1864, 
 were, $71,886 89 
 
 The probable expenditures for the quarter ending De- 
 cember 31st, 1864, will be, 36,390 49 
 
 Probable expenditures for six months ending December 
 
 3l8t. 1864, $108,277 38 
 
 The expenditures for the ensuing six months will be somewhat 
 decreased, as it is probable that it will not be necessary to establish 
 as many new offices, nor will it be necessary to purchase any wire 
 for new lines, having a good supply on hand. 
 
 The probable cost for the six months ending June 30th, 1865, will 
 be— 
 
 For agents and operators, $37,050 
 
 For watchmen, 4,860 
 
 For office expenses, 300 
 
 For office material, 25,050 
 
 For construction, 30,900 
 
 For repairs of lines and instruments, 1,000 
 
 For incidental expenses, 840 
 
 $100,000 
 Amount on hand June 30, 1864, • $55,027 38 
 
 Amount of appropriation for six months ending 
 
 December 31st, 78,250 00 
 
 Amount of available funds for six months end- 
 ing December 31st, 133,277 38 
 
 Carried forward, $133,277 38 
 
81 
 
 Carried forward, $133,277 38 
 
 Amount of probably expenditures for the six 
 
 months ending December 31, 108,277 38 
 Probable amount on hand January 1, 1865, 25,000 
 
 Amount required for the six months ending June 30, 18(35, ^75,000 
 
 Respectfully submitted, 
 
 J. T. COLOWELL, 
 Sup't C. S. Military Telegraph Lines. 
 
'^ 
 
p6Qmalip64 
 
 pH8.5