Jt m<, D03209692V K,E2FOPLT OF THE POSTMASTEE GENERAL. Postofpice Department, > Richmond, Jan. \1tk, 1863. ] g IR : I have the honor to submit the following report of the cur- rent operations of the Postoffice Department. The brief and irregu- lar intervals between the meetings of 58, to whic&reports havo been heretofore made, rec yofor me to recapitulate some of the matters embraced in former reports. .) EXPENDITURES. Thfc receipts for the month of June, 1861, were, !,384 67 E X [ ) e n '< \ it u r e s fi | e ribd, .135,02724 Excess of expenditiii ft43,542 57 Receiots fos the pear from July 1st, 1861, to Ju] ' S1,011.1S9 05 .Expenditures for the same period, 2,924,290 4$. Excess ofr expenditures, . $1,013,1#1 43 ■L Making a total excess of expenditures from 1st June, 1861, to June 30th, 1862, of $1,056,644 00 Grants from the General Treasury, in aid of the revenues of the Postoffice Department to June 3Uth, 1862, 1,739,450 93 Leaving an excess of revenues and grants to that dale of J682,8 06 J93-- This excess of revenue, over the estimated expenditures, resulted from the increase of revenue by the increased rates of our postage as compared with those of the United States, which formed the bases of my former estimates, and from the reductions of the cost of the- service by the various means mentioned in my former reports. I am now enabled to give the following comparison of the actual receipts and expenditures for the hist fiscal year under the govern- ment of the United States, and the first fiscal year under the govern- ment of the Confederate States. Amount of receipts under the government of the United States for the year which ended J h, I860, $1,517,540 65 Amount of receipts under the government be Confederate States, for the year which ended Juno 30th, 1862, 1,911, IS:) 05 Increase of receipts in Confederate States, Expenditures under the United States for the year which ended June 30th, 1860, $4,296,246 78 Expenditures under the Confederate States for the year which ended June 30th, 1862, 2,924,290 48 Excess of expenditures under the United States, $1,371,956 30 Which, added to increase of revenue under Confederate Government of 393,648 50 Exhibits an improvement in the finances of the Department of $1,765,604 80 DETAILED STATEMENT of the receipts and expenditures fir one month, from the 1st to the SOth June, 1861. EXPENDITURES. $W. transportation of the mails, S,073 C4 " ( Ltion of Postmasters^ 35,047 20 " " Clerks in Postoffices 8,17? 10 ■" Ship, steamboat and way letters, \ j (j gg W Advertising, 1.173 91 " %iil Bags, 1 75 " Blanks and printing, 3,000 00 " Wrapping paper, m 4*73 " Mail locks, keys and stamps, 73 67 " Mail depredations, • GG9 51 •" Miscellaneous payments, 8G I 26 §135,927 24 RECEIPTS. # From letter postage, ^ $79,458 38 Newspapers and pamphlets, 11,973 16 •Surplus of emoluments from box rents, 953 13 92 334 G7 Excess of expenditures, $43,542 57 A DETAILED STATEMENT of the receipts and exjindiivres for one year,fr^m July \st> 1861, to June 30^, 1862. EXPENDITURES. For transportation of the mails, compensation of Postmasters, " Clerks in Postoffices, Ship, steamboat and way letters, Advertising, Mail bags, Office furniture, Blanks and printing, \V rapping paper, Mail locks, keys and stamps, Mail depredations and special agents, Miscellaneous payments, Postage stamps, $2,052,953 76 671.727 G7 98,821 29 777 09 6.879 3 714' 77 81 81 23.6 \% 19 4,854 91 6S9 41) 20,21)6 50 17,112 7 22,869 53 $2,924,890 48 RECMPTS. From letter postage, $1,005,985 04 From newspapers and pamphlets, 205,200 87 From surplus of emoluments from "box rents, 7,935 30 From postage stamps, 692, 067 94 1,91 1,183 5 Excess of expenditure, §1,013.101 43 Add excess of expenditure for the month of June, 1861, . 43,5:2 57 Total excess of expenditures from June 1st, 1861, to 30th June, 1SG2. $1,056,644 00 To meet this deficiency of revenue the following grants have been made from the general treasury : By act approved March 6th, 1861, $320,060 3-6 By act approved August 29th, 1861, 500,000 00 By act approved April 3d, 1862, the amount of my estimate of March 5, • 1S62, 919,390 57 1,739,450 93 Leaving an excess of means over the expenditures from June 1st, 1861, to June 30th, 1862, of $623,806 93 4/97// DETAILED ESTIMATES of the Receipts and Expenditures for ths year ending June 30, 1863. EXPENDITURES. , For transportation of the mails, $2,493,889 86* for compensation of postmasters, 671.7 3? 67 For compensation of clerks in post offices,, 9S,821 For ship, steamboat and way letters*, 77? 09 For advertising, 6,879 OS For mail bags, 714 77 For office furniture, 81 81 For blanks and printing, . 80,001) 00 For wrapping paper and twine, 8,00'.) 00 Ftb of June last But I have no doubt, judging from such unofficial information' as I have received, that they will "produce an increase of revenue, though I have no information of a character which would authorize a change of the abore estimates. The revenue accounts of the department for the first quarter, end- ing the 30th of September last, since the above named acts went inW Effect, being the first quarter of the current fiscal year, will be audited by the 20th of this mouth. The returns for that quarter will sh<>\r the effect which these measures are to prodnce on the revenues of the Department; ami will serve as a^asis for estimates of receipts for the fiscal year from the 1st of July, 1863, tftthe 30th of June, 1-864. As soon as this information is obtained, I will prepare and submil detailed estimates for that year for the information of Congress ia making provisions for the postal service after the 30th of June next., RENEWAL OF SUGGESTIONS OF SPECIAL- REPORT.. I renew the suggestions of my special report of the 29th of Sep- tember last,, as to the difficulty of complying with the provision of the Coiisutution^which requires the expenses of the Department to be de- fray el out of irs own revenues, after the 1st of March next. Unless Congress can devise some way of giving aid to the department from the general treasury, it will become necessary, at an early day, to reduce and discontinue so much of the service as to bring the c ! within hs'accruing revenues. And ft is believed this cannot be done, without depriving portions of the country of necessary mail facilities. MEANS OF INCREASING' REVENUE. As a means of augmenting the revenues of the Department, afei overcoming to some extent the deficit of its receipts, I recommend at* increase of the rates of postage on newspapers to a uniform rate of one cent on each newspaper weighing not more {han three. ounces, and in the same proportion for those of greater weight, for any dis- tance, when sent to regular subscribers, and paid in advance ; and the repeal of the provision of the second section of the act o«f May 13th, 1881, prescribing the rate3 of postage, which authorizes the publish- ers of newspapers or periodicals within the Confederate States to' send and receive their exchanges free of postage. The propriety an 1 justice of the first of these recommendations will be seen by reference to the fact that, under the law as it now stands, a news- paper weighing three ounces is sent through the mails any distance for a fraction over three-fourths of a cent, while the postage on a •ingle letter, weighing one-half of an ounce, is ten cents, and six single Tatters, weighing in the aggregate but three ounces, pay sixty cents. Even at the rate of increase here proposed, which is a fraction less thin twenty-five per cent, on the present rates, ten newspapers, each weighing three ounces, would only yield the amount of postage paid on one letter of a half ounce weight. It is true that the cost of the department, in furnishing blanks, keeping accounts and in clerical Tabor, is greater in the lctt r than in the paper mail, but the cost per ounce of transportation, which constitutes the chief item of expendi- ture, is the same in each. The Constitution requires that the Depart- ment shall be self-supporVmg. And it can only be rightly made so by requiring all matter sent through the mails to pay its just proportion ©f the expense. The increase here proposed is but a partial remedy of the evil, which grew up under the old governujfent, of sending newspapers and other printed matter through the mails without re- quiring the payment on them of their just proportion of expense, and ef taxing the business and social correspondence, and the general treasury of the country, for the benefit of the readers and publishers of newspapers. The injustice of requiring newspaper exchanges to be carried free of postage is a still greater departure from the spirit and object of t%e provision of th2 Constitution above referred to, and from the Principles of right. Their publication and dissemination constitute one of lie; industrial pursuit's of the country. And while it is a, very* oae ait. it is not perceived why it should be fostered by trnment aid at the expense of other equally useful indus- trial interests. Allowing these exchanges to pass free of pos- !.:•. i through t^e postoffiees and mails is equivalent to granting to them, by act of Congress, a subsidy equal to the amount of postage at current rates, which would be derived from them if they were charged with postage as other papers, 1 am not aw r are of the exis- tence of any provision of the Consticution which, either by express grant of power, or by necessary" inference from a grant of power, would authorize the bestowal of such a subsidy, or of doing that which is its equivalent, allowing newspaper exchanges to^)ass through the postoiiijes and mails free of postage. I therefore recommend, as I did in a former report, the repeal of said provision. These two changes, while they would add but a trifle to the tax on each individual interested, would furnish an aggregate of revenue to the department of, probably, sixty or seventy thousand dollars per annum. I ask for no change of the rates of postage on other printed matter ; but think it probable, v/hen the report of receipts from postages, for the quarter which nded the 30th of September Last, is made, that it will show, in connection with the inflation of the currency, and the increased price of everything, that the rates of letter postage may be farther increased. PAE-P1YMFNT OF LETTER POSTAGE. By the first section of "An Act" No. 194, "relating o the prepay- ment of postage in certain cases," approved July 29th, 1801, officers, musicians and privates in the army are authorized to send their letters through the mails, upon making the required endorsements, without the pre-payment of postage, the payment of the postage being re- quired to be made at the office of deliv This departure from the correct principle of requiring the pre-pay- ment of p -stage in all cases was adopted by Congress to facilitate the correspondence of our officers and Boldiers, after the disappearance Tom circulation of small specie change, and before the Department had procured go mps. The condition of things which induced the adoption of this provision, has now passed away, and the Depart- ment is enabled to furnish postage stamps in any quantities which may be required, which secures the desired facility for the pre-payment W postage. In addition to which, there are other strong reasons for the repeal of the law authorizing the sending of these letters through the mails, without the pre-payment of the postage. The most im- portant of which are that the practical effect of the act is to defeat, in a great measure, the object for which it was passed, and to burden the maijj with large numbers of letters which are never received by the persons to whom they arc sent, but are forward:- i to the dead-letter- office and destroyed. A short time since, when our army fell back from Winchester, Vir- ginia., the postmaster at that place forwarded to this city at one time six thousand seven hundred and eighty-five letters, which had been i ranked under the authority of the act under consideration, and addressed by soldiers to other soldiers. Having been advised of the large number of such letters which failed to reach their destination, I directed special agent Word, of this department, to investigate and report the cause. A C' py of )g[s report is hereto annexed, marked (D). This investiga- tion disclosed the fact that the private soldiers, as well as many offi- cers, could not leave the lines of . the army to visit the postoffices for their letters, and that messengers from the different commands, when sent for them, refused to take letters out of the offices, on which the pqgage had not een paid, as in doing so they were required to pay the postage, while the letters, from various causes, would, in many cases, be left uncalled for in their hands, and they would lose the money advanced in payment of the postage on them. And in the case at the Winchester office, the large number of letters sent bacb were those which remained uncalled for, after the postmaster had no- tified the commanders of regiments and separate battalions and com- panies to send for them. A report on this subject, from the Postmaster of this city, discloses the fact that there arc now some ten thousand of these franked letters in his office; and he is of opinion that many of them are reports from surgeons in charge of hospitals to commanders of regiments of the death, discharge, &c. of soldiers, and that they are not taken out of the office on acsount of the ct n them. A copy of Ifis report is hereto annexed, marked (E). I respectfully call attention to this report, and to the one from special agent Word, for more de- tailed information on this subject. The repeal of this law will greatly benefit the revenues of the De- partment, relieve the mails of a largo mass of matter which only serves to encumber them, to the detriment of the service and detention of other matter, without conferring any real benefit on the persons for whose benefit it was passed, and to whom, at that time, it vis a con- venience. I would also call attention to the fact that the act works great injus- tice to those postmasters who happen to be in the vicinity of our armiea. Their compensation is derived from the per centage allowed by law on che amount of postage paid into their respective offices. Post- masters in the vicinity of bodies of troops have to receive and mail all the franked letters brought to them, making out the post-bills and keeping the accounts and making the required returns to this Dep r^ ment, without compensation The commissions due on these lettenr arc then collected at the offices of delivery where the postage is paid, and is thus transferred, by operation of this law, from the persons en- titled to it on account of the performance of the labor above named, to others who have done nothing to entitle them to receive it. And, as an aggravation of this wrong, the postmasters who deliver these letters, and receive the compensation, which, in the absence of this law, would have been paid to the postmasters mailing the letters, and who are rightfully entitled to it, also mail the return letters from per- sons not entitled to frank them; and as the postage on the return letters, not written by soldiers, is paid at the mailing office, they also get the commissions on them ; and the answers are returned to the posmasters who mailed the franked letters for nothing, and they have to deliver the answers without compensation. At many offices this has made a difference of thousands of dollars in their receipts, and a loss to the postmasters of the commissions on that (Inference. The Department, is constantly receiving letters of complaint from po::tmaster^ on account of this injustice, but is power- less to relieve them while the Jaw remains unrepealed. Its repeal would benefit the revenues of the Department, disencumber the mails of a great mass of matter which now finds its way, at last, to 4ie dead letter office, would avoid the above-mentioned injustice to post- masters, and would work no inconvenience to those for whose benefit it was designed, as they can now, at all times, obtain postage stamps with which to pre-pay their postage. PAYMENT OF POSTAGE BY AGENTS OF THE DEPARTMENT AND MAIL CON- TRACTOR *. My report of November the £7th, 1S61, contains the .following : " I must also call attention to the fact that the special and route and local agents of the Department are required to make frequent and some- times voluminous report to the Department, and to correspond with each other and with postmaster, in regard to the service; and there is no law to relieve them from paying the postage out of their private means, on this cDrrespondencer elating to official business. This condition of things must result in taxing these necessary agents, so as to drive them out of the service, or in causing them to omit the discharge of their most important duties, in order to avoid the expense of paying the postage on their communications. '•The contractors for carrying the mails are also* required to make frequent responses to communications sent them from the Department in relation to the service, and to return to the Auditor, quarterly, the evidence of payments made them for such service, and to report to the Department the cause of every failure and of all irregularities, in the service, on their several routes. 1 must therefore asl: that Con- gress make some provision to relieve them from the payment of this postage. This can be done by authorizing them to charge the amount to the Confederate States in their quarterly accounts for re-payment, under such restrictions as Congress may prescribe, or by authorizing them to frank such communications, under the same restrictions placed upon others connected with the Postofficc Department, who are authorized to frank their official correspondence." Again, in my report of the 2rtth of February, 1SG2, I made the /following reference to this matter : " I must call attention to the recommendation made in my last re- port, that Congress provide some means of relieving 9] ecial and route and local agents and contractors, from the payment of the postage on their official correspondence The agents are required to correspond with the Department, and with postmasters and others, on the business of the department. The correspondence of the special agents ^ is vo- luminous ; and contractors for carrying the mails are required to make frequent responses to communications sent them from the De- partment in relation to the service, and to return to. the Auditor, quarterly, the evidence of. payments made them for such service, to report to the Department the cause of every failure and of all irregu- larities in the service on their several routes. My recommendations on this subject were not acted on, and I beg respectfully to renew them, and to call attention to the reasons Etated in my last report for requesting this action ; and also to renew the suggestions contained in that report, as to the modes of remedying this d legislation." The subject has not yet been acted on, and I feel it to he my duty again To bring it to your attention, as deserving the consideration of Congress. 10 CONTRACT BUREAU TRANSPORTATION OF THE MAILS. On the 30th June last the post-routes in operation in the Confede- rate Stat en were 95,o?7 miles in length as fdlloi On 8*266 miles of railroads, at a cost of 10,6*25 25 as shown by tabular statement marked (FA On S 7 , 3 ] 1 miles of other classes of^posn- routes, at a cost of 1,234,4 \% 15 $2,135,027 40. Showing a reduction in the cost of transpor- • tation, a3 compared with the last fiscal year under the government of the United States, of • $1,278,252 GO The number of mail contractors in the service during the year was 1,519, of route agents. 128, local agents 2, and-mail messengers 165, connected with the mail service on railroads. At the lettings in the State? of Texas, Arkansas, Louisiana, Mis- sissippi, Alabama and Tennessee, for mail service tor four years from and. after the first of July last, the service was tak&n at greatly in- creased prices, resulting from causes which have been heretofore brought to your notice. The number of post-routes offered to bidders in those States was 980, and. proposals were accepted upon , •tracts have been properly executed for the faithful performance of service on 637, and on 126 the contracts have not yet been re- turned to the Department properly executed. 201 routes have not been let to contract. Of this number 114 are in the State of Ten- nessee, within the lines of the enemy. 22 were not let in conse- quence of the excessive compensation demanded for service thereon, and. upon 34 no bids were submitted, and 31 have been suspended for various causes. A tabular statement is appended marked (G) show- ing the number of mail routes (exclusive of railroads) let to contract under the advertisement of the Department of January 1st, 1862, to- gether with the aggregate number of miles, length of routes, amount of compensation, and mean rate of cost per mile in each State, with the exception of Tennessee. A full report will be submitted to Congress in the early part of the session, in conformity with the provisions of an act of Congress, ap- proved July 2d, 183G, of all offers for carrying the mails made within the year ending December 31st, 1862, and of all contracts made for the transportation of the mails within that year. The mail service in the States of Virginia. North Carolina, South Carolina, Georgia and Florida has been carefully revised, with a view to Economy and efficiency, and the necessary advertisements issued inviting proposals for mail service therein for the period of four years from and after the 1st- of July, 1863. Some estimate may bv formed of the labor required of the Contract 11 Bureau, in connection with the postal service, from the fact* that the manuscript correspondence of the Bureau, between the first of Juno, 1861, and the 31st December, 1862, covers 1,551 pages of the largest size letter books, independent of vast numbers of circular letters is- sued ; the great number of analogous cases rendering their use both convenient and necessary. Various efforts have been made by the Department to secure more certain connections of the mail trains on the Great Southern route between this city and Charleston, Savannah and Montgomery, by co- operating with the several railroad companies in the adoption of new schedules at a reduced rate of speed, but without success, and the Department is not possessed of the power to make schedules for mail trains upon railroads, without the consent of the companies, so that the evils arising out of the present irregularities in the arrivals and departures of the mails flpon that line, must continue to be felt by the public, until the railroad officers can agree to a new schedule that can be run with more certainty than the one now in use. Until this is done, the Department can only correct the- evils refer- red, to in a limited degree, by rigidly imposing penalties for not runr ning in conformity with existing schedules. O APPOINTMENT BUREAU. The whole number of postofficea in the Confederate Stat not including the States of Kentucky and Missouri, on the 3 1st December, 1365, was 8,613 Whole number of offices established from June 1st, 1361, to December 31st, 1862, 281 Number discontinued, 627 Number of resignations of postmasters, 2,034 Number of postmasters removed, 190 Number of postmasters who have diod, 144 Number of postmasters appointed, 8,431 Number of postmasters commissioned, 6,798 which will appear in detail by reference to tabular statement marked (H.) , Of these the number of postofficea established since the date of my ^eport February 28th, 1.862, is 165 Number discontinued, 370 Number of resignations of postmasters, 1.2*27 Number of postmasters removed, 75 Number of postmasters who have died, 64 Number of postmasters appointed, t 1,4-43 Number of postmasters commissioned, 1,532 The number of requisitions made by postmasters for post- office blanks, wrapping paper and twine, since the date of my report February 25th, 1862, to December 31st, 1862, is 8,625 Number of requisitions filled, 8,625 12 Post bills famished, Mails received, Tvlriils sent, Newspaper accounts, Accounts current, Prepaid matter. Signature post bills, Mails received for distribution, Mails sei&for distribution, Distribution signature post bills. Making an aggregate of Wrapping paper furnished to postmasters, Cotton twine, Hemp twine, Blanks remaining on hand for distribution: Post bills, Mails received, Mails sent, N e w a p ; i p e r accounts, Accounts current, Pre-paid matter, Mails received for distribution, Mails sent for distribution, Wrapping paper on hand, Cotton twine, ^ 93 pounds. Hemp twine, I 540 " which will appear in detail by reference to tabular statement marked (I.) All the requisitions on the Department for blanks, up to date, have been filled. Number of marking and rating stamps furbished to post- masters since my last report, 129 On the 9th of April last, a contract was entered into with Mr. John Ii. Seals, of Atlanta, Georgia, for the printing of the Department. In consequence of the repeated failures of the contractor to fill the orders made on him, and the embarrassments of the Department, re- sulting therefrom, this contract was annulled on the 3d of November last. And another contract was made with Ritchie and Dunnavant, of this city, on the 5th of November last. The postmasters throughout the Confederate States have been fur- Reams. Shrels, 311 52 215 00 129 364 S3 307 70 3 14 2 178 237 451 It) 26 27 360 8 J 00 1171 122 Rca^s. Qu'rcs. 1343 141 Pounds. 59 n 360 Reams. Sheds. 25 G 22 465 54 150 4:) 00 5Q 320 13 410 21) 00 20 00 224 00 13 nislied with printed copies of all the laws relating to the Fostoffice Department, passed by Congress from the organization of the govern- ment up to this date. FINANCE BUREAU. Amount of money placed in the various depositories of the Department, by postmasters, from the date of mv report of February 23th, to the 31st of December kst, was $479,172 49 Balance to the credit of the Department in the treasury . and its branches on the 28th of February last, 312,699 82 Amount appropriated by act of April 3d, 1862, in aid of the revenues of the Department, 1,451,602 31 By act of September 22d, 1862, 8UU,00U 00 $3,083,474 62 Between the 28th of February nnd 31st December last, 1764 warrants wetVissued on the treasury and its brandies in payment of postal service, amounting to 1 J $1,055,838 08 Leaving now in the treasury and its branches for the^ service of the department, §2.027,636^54 Number of warrants issued between the 28th February and 31st December last, was 1764, amounting to §1,055,833 08 Number of drafts issued for the same time was 2,091, amounting to 282,425 45 Total amount paid by warrants and draft?, $|,338,263 53 Of the $2,027,636.54 in the treasury and its branches, $653,386.97 is to the credit of the appropriation of $800,000 to pay contractors for services rendered pri6r to the 1st June, 1861, under " An act to provide for the payment of sums ascertained to be due for postal ser- vice, to citizens of the Confederate States, by the Postmaster General." There is also in the treasury, subject to the requisitions of the Department, and not embraced in the foregoing statement, the following amounts under act of 9th of October, 1862, S|*W f Under act of 13th of October, 1862, 130,60739 $261,214 78 The number and denominations of postage stamps supplied to postmMSters, from 28th of February to 31st of December last, was as follows : Number of f ct. stamps, 738,000 Value, $14,760 00 5 « 25,577,431 " 1,278,871 5o 10 " 4,886,611 " 488,661 10 Making, "31^202,042 $1,782,292 65 The number of dead letters opened, and containing $ 1 3,519 17 in money, registered and sent out to the 3 1st of December, was 1,720 Number of dead letters opened and filed, containing $14,438 32 in money not yet sent out, 1,G70 Number of dead letters, containing drafts, checks, bills of ex- change, and other enclosures of value, amounting to $2,344,- 240.37, registered and sent out, 4,220 Total number of dead letters containing money and valuables, 7,610 Number of unpaid letters held for postage/ 5!, 0.55 Number of drop letters held for postage, 29,452 Number of dead letters, 45 4,285 535,392 Total of* dead letters, %43*002 AUDITOR S OFFICE. The report of : lie Auditor shows that the gross amount of postage stamps sold, to the 30th of June, 1862, was, $692,067 94 The amount used in the pre-payment of postage, and cancelled, was 446,088 84 Leaving outstanding, $245,379 10 He also shows that the nett revenue from postages, being the ag- gregate amount of balances due the Confederate States by postmasters, on the adjustment of their quarterly accounts, to the 30th of June, 1862, was For the month of June, 1861, $48,431 41 For the quarter ending September 30th, 1861, 215,001 20 For the quarter ending December 31st, 1861, 275,979 29 For the quarter ending March 31st, 1862, 242,404 04 For the quarter ending June 30th, 1862, 395,798 46 $1,177,614 46 And that the number of accounts audited, from the first of June, 1861, to the 30th September, 1862, was For the month of June, 1861, 4,914 For the quarter ending September 30th, 1861, ^ 7,539 For the quarter ending December 31st, 1861, 7,063 For the quarter ending March 31st, 1862, 6,034 For the quarter ending June 30th, 1862, 5,098 Making an aggregate of 30,648 # That the number of postoffices in operation, as shown by the books of his office, from June 1st, 1861, to June 30th, 1862, was 7,163 Of which 104 are "draft offices," and paid during that period 2,984 drafts, amounting in the aggregate to $282. S3! 34 Ninety-six are " deposit offices,'' and during this period deposited with the treasury and its branches, 609,05 ) 29 Six thousand five hundred and fifty-five are " collection offices," and paid on collection orders, issued to con- tractors, during this period, 335,889 01 Four hundred and eight are "special" and "mail- messenger" offices, and derive their supply of mails chiefly from the revenues of the offices, the cost of which during the year w 23,280 40 Showing the amount paid into the treasury, for the use of the Fostoffice Department, by postmasters, after the retention of their personal compensation, and the incidental expenses of their offices, to have been, $1,301,101 04 Uncollected balances remaining in the hands of late postmasters, exclusive of the amount due to the United States, $19,773 99 The balance due to late postmasters for same period, exclusive of amount due by United States, -26,939 69 Amounts collected from late postmasters for same period, exclusive of sums due United States, 4,00] 50 INSPECTION OFFICE. The amount of fines imposed on mail contractors, for culpable negligence in the performance of their contracts, from the l»t of Jan- uary to the 31st of December, 1862, is $M44 60 Amount of deductions on account of failures and ir- regularities in the performance of their contracts for the same period is. 112,625 05 Making, SI 15,069 65 Amount of fines from 1st June to 3 1st December, 1861, 764 1.6 Amount of deductions for # same period, 31,283 13 Making an aggregate of §!47,1 16 84 which stands to the credit of the Department in the accounts for mail transportation. CHANGE OF FOSTM ASTERS AND CONTRACTORS. The Department has encountered much inconvenience, and some pecuniary loss, and has been subject to a heavy correspondence, on account of the frequent changes of postmasters and contractors for carrying the mails, in consequence of the existing war, as many of both classes had, from time to time, gone into the army, before the • 16 • date of the act of tin 1 lth of October last. " to exempt certain poi- sons from military duty," &c, which rendered all of each class be- tween the ages of eighteen and forty-five, except postmasters appointed by the President and confirmed by the Senate, liable to military duty, thus rendering new appointments land new contracts, or the rec tion of the transfers of contracts, necessary. The act above referred to will increase these difficulties, and by rendering the contractors and their drivers and riders liable to mili- tary service, seriously embarrass the postal service, and will al e the expenditures for the transportation of the mails during the existence of tha p ontract term. Another effect of thi the postal service, will be, by a reduction of the number of bidders, and of the competition for contracts to be let during the coming spring in the States of Virginia, North Carolina, South Carolina, Georg : a and Florida, for the ensuing term of four years, to enhance materially the cost of the service. . COMPENSATION OF ROUTE AND SPECUL AGENTS. The maximum rate of compensation alio ved to the route ngen.ts of the Department is ei^ht hundred dollars per annum. This, at the present prices of the means of living, is not sufficient; and I recom- mend that it be increased to one thousand dollars. The compensation of the special agents of the Department is six- teen hundred dollars per annum, andjjy act of March 3d, 1845, they were allowed the sum of two dollars per day, when actually employed as mail agents, to defray their, travelling and incidental expenses. None but men of superior business qualifications and integrity can be usefully employed as special agents. The services of such men as the good of the public service requires in these positions, cannot be commanded without allowing them a reasonable compensation. Their duties require them to be almost constantly travelling; ami their travelling expenses are now from three to four dollars per day. I re- commend that their per diem allowance for travelling and incidental expenses be increased to three dollars per day, while actually employed in travelling on the business of the Department. Very respectfully, ^our obedient servant, JOHN II. REAGAN, Postmaster General. •The President n STATEMENT exhibiting the receipts of tire Post Office Department, under their several heads, from the 1st June, 1801, to June 30th, 1802. c _rz Letter Postage 79,-158 OS 350,968 70 300,340 41 1102,711 20 125,967 70 1 ,035,443 42 Newspapers and Pam- phlets 11,978 16 60,440 02 50,17111 48,580 70 45,96274 217,174 03 Postage Stamps sold - . . . . 97,36110 179,258 8] 414,047 97 692,06794 950 10 2,6S9 6S 740 01 0,004 75 1,200 70 S,S8S 33 Surplus of Emolu- ments. 92,384 07 414,098 40 491,115 99 41S,S05 40 5 $•2,003,578 73 Respectfully submitted; Hon. J. H. Reagan. Postmaster General. Auditor's Ofpicb, P. O. Dipabtmebt, December 20, 1S02. ROLLING BAKER, Auditor. 18 B. STATEMENT exhibiting the Expenditure! of the Post Office Department, under their several heads, from the 1st June, 1861, to :>0th June, 18(32. Transportation Compensation of Post- masters Compensation of Post- office Clerks Ship, steamboat, and way letters Advertising Ma 1 Bags Office Furniture Blanks and Printing... "Wrapping Paper Mail Locks, keys and stamps Mail Depredations and Special Agents Miscellaneous pay- ments Postage Stamps 82 JOTS 155,041 8,17i 116 8,000 4.7:12 861 c- O'.-i 496,569 97 166,003 06 2>,977 7c 172 68 1,042 90 42 75 2 7i> 2.42s H5 1,814 69 114 49 4.714 87 5,918 76 8,473 20 1:55,927 24 715,7S1 17 588,654 1S4,G64 25,941 150 888 466 63 6 224 285 6,121 4,S01 4,327 492,250 42 17,3i:> 29 193 84 1,929 59 1S5 25 429 77 72 87 15618 4,174 87 2,258 80 8,828 00 811,544 7S ; 681,586 65 ;: as 4 N 1,479 (IT 168,818 04 30,726 18 260 09 8,252 1 1 2m 45 16 (III 23,7:!7 96 3,243 44 183 06 5,196 24 4,402 32 6,245 50 720.530 39 ,135,027 40 707,274 8 111,187 7S s9s41 S,247 28 L 716 52 si si 29,602 6s 9,5S7 45 763 07 20,876 01 1S,237 45 22,S69 5d "S ? $8,065,820 23 Respectfully submitted; IIou. J. H. Reacan. Postmaster General. Auditor's Oifice, P. O. Department, December 20, 1862. ROLLING BAKER, Auditor. 19 8 3 (Sft^cuM-;: — c: ' «c ~ cs cm o r u- x — „ » CM CM oo O0_i oo ucf ■ to ep o» —" O «o ■ ©«J!D3». e« x r~ oo r> r- OC CO ::-*3(Stt» cr cs cc ..-;«- t- co oo a-.' i~ w to c - r< c fn»o" 00 C O — -* os o eg <* ic oo as K3 i :: EC i t t- — cm co i— «■; r- ' cm so os 5Cmc <©,<» o_eq t- r< i sfVoe to iQiOrJaod sTeC t c o ; ^ x -f ; c; -t o I- CS t~ — Li CO — < Tj< K. o oo o op 55 eo ■**■ o h- ( CO N ■+ « «*i « S» 7j Cfi O ; D O - r - x ;•• — co ?j |.eo t-jo/ - «o '•". oo n so » I CS CM CO WHrnn r-t cn-^i I irt o cm -* -* .- ■/• = oo oo tH io « UO O X CV IM '-c j: I- X >- T « '- « * -o o^ a cj « ^ S , I : i -a »2 20 (D.) REPORT OF W. E. M. WORD, SPECIAL AGENT POSTOFFICE DEPARTMENT. Richmond, Nov. 28, 1862. Sir : I beg leave to call your attention to the fact, that very few of the unpaid letters franked by soldiers, and sent to other soldiers in the army in this State, are taken from the various postoffices to which they are addressed. As an instance of their rapid accumulation, I have only to mention the fact, that during the last six or eight woeks, while our army was at Winchester, very few of those letters were taken from that office, and the postmaster at that place, upon the " falling back" of the army, returned to the Richmond postoffice, for distribution, six thousand seven hundred and eighty-Jive unpaid franked letters. The postmaster at Winchester informed ice that the regular " mail messengers" from the different brigades, regiments, battalions, &c, refused to take those unpaid franked letters from the office, because the soldiers would not refund the amount paid back to them. This same excuse has been given by nearly all the " army mail messengers," at all the postoffices at or near which the army has been located. The postmaster at Winchester also informed me, that he had written to the different commanders of the regiments, that so many unpaid franked letters, (naming the number) were in the office for his men. After that, some few were called for, but the large majority were left in the office. To my own knowledge, thousands of these letters are sent quarterly to the Dead Letter office. It seems to me, now that we have plenty of postage stamps, that the law is of very little advantage to the sol- dier, and ought to be repealed, as the accumulation of these unpaid letters at any postoffice retards, very inucji, the business of that office. At the same time, the mailing and distribution of these letters is a very heavy expense to the PoBtoffice Department. With high respect, Your obedient servant, • W. E. M. WORD, Special Agent Postoffice Department. Hon. John II. Reagan, Postmaster General. 21 (E.) LETTER OF J. 0. 8TEGER, P. M. Richmond, Va. Richmond Postoffice, Jan.'^, 1863. Dear Sir : As near as can be ascertained, there are at this time in this office ten thousand letters addressed to soldiers in the army which have not been taken out of the office, either because the parties to whom they were addressed could not or would not pay the postage due on them. I feel very sure that I am largely within the mark in the number stated. At one time, six hundred and forty dollars of due letters belonging to soldiers were returned to this office from Winches- ter alone. A large number were sent here also from Gordonsville. A large number of these letters, I am informed by my clerks, have been travelling the rounds with the army, without ever having been taken out. Included in this list, are a large number of letters written by surgeons in the charge of hospitals, to commandants of regiments, giving information, doubtless, of the death or discharge from the hos- pital of soldiers, which are of the utmost importance, I should think, to the service. Some provision should be made by the War Depart- ment to have these letters delivered, as they are now not taken out of the office, because of the postal charges on them. The mail matter for the army is generally taken out of the office by officers or mail messengers, sent for the purpose. Neither the officers nor the mail messengers, will, as a general rule, take out letters upon which the postage is due, and as the private soldiers rarely have an opportunity to apply at the office themselves, it is certain that so long as the franking privilege is continued, a very large number of letters addressed to soldiers by other soldiers will remain as dead matter in the offices. In my judgment, the boon which Congress designed to bestow upon the soldier, by allowing him to send off his letters without prepaying the postage, has baen far more fruitful of inconvenience and injury to the soldier himself than of benefit; and it has been par- ticularly injurious to the service, inasmuch as a large number of letters from surgeons, quartermasters, commissaries, and other officers in the service, containing matter highly important to the service, have been permitted to lie as dead matter in the postoffice3 because they were franked. I regret that the numerous calls upo^ my time to-day, and the fre- quent interruptions to which I have been subjected while writing this hasty letter, have prevented my giving you a more detailed and satis^ factory account of the practical working of the act of Congress, allow- ing soldiers to frank their letters. Very respectfully, ^ Your obedient servant, J. 0. STEGER, postmaster Richmond City, Va. Hon* J* Hi Reagan, Pottmotfer Gemra!> • r> > A SUMMARY of Railroad Service in the Confederate States, on the GOlh of Jnne, L862. Statks. Alabama Aikansas Florida Georgia Louisiana Mississippi North Carolina. South Carolina. Tennessee Texis Virginia Distance. Annual Fay. Annual cost of Route Agencies. Annual cost of Mail Mtssengers. Total Annu- al cost. Av'rage cost per rolle i n each State. 822 95-100 109,067 50 7,850 00 1,888 00 11S.250 50 143 08 40 8 000 00 3,000 00 27,777 50 75 00 40S\- 24,887 50 800 03 140 00 68 81 1,374 1-12 144,032 25 14,550 00 1,893 00 100,475 25 189 00 804 43,800 00 4,000 00 1,000 00 4S.800 00 160 52 944 128,552 50 8,000 00 2,010 00 133,508 tn 141 50 no# 66,625 00 9,500 00 1,739 00 77,804 CO 109 66 119,325 00 13,900 0) 3,102 00 136,327 00 128 03 661 97-100 98,428 03 B,50D 00 2,312 00 104,240 CO 120 04 mx 84,787 50 1,000 00 350 00 30,743 50 89 72 1,827 8*260 4.12 180,170 00 19,000 00 1,892 00 157,062 00 US 78 900,625 25 88 300 00 15.7S3 00 1,004,708 00 Confederate States of America, Post Office Departmknt, Contract Bureau, January 9, 1S62. Respectfully submitted: H. St. GEO. OFFUTT, Chief of the Contract Bureau. CONDENSED TABULAR STATEMENT exhibiting the number of Mail Routes (exclusive of Railroad Routes) let under the advertisement of the Postmaster General, of January 31, 1863, together with the length thereof and compensation therefor, in each State, and the aggregate length and compensation of all, and the mean rate per mile, per State. States. Arkansas . . Alabama. . . Louisiana.. Mississippi. Texas Tenhessee*. Actual No. of miles. 6,011 6,471 3,743 5,.j6L 11,S45 No. miles travelled. Compensation, 20,002 2'2,562 14,126 17,984 87,816 $209, 6s9 0O 118,393 00 109,476 00 100,466 00 262,867 00 Aggregates. 85.681 11S.50U #800,891 00 Mean rate per mite bet'n the term'nl. points in each State. $10 09 10 49 15 49 11 20 13 90 Avg. mean rate $l3 53 • But few routes have been let in this State ; hence no details are attempted Respectfully submitted; II. St. GEO. OFFUTT, Chief of the Contract Bureau. Confederate States or America, Postoffice Department, Contract Burkac, January 9.1S68. Jl II. A TAl'.rr. \\\ STATEMENT Blowing thenuml Establishments, Disoontinuan gnations, & V.ppointi aii-l the niiinlH 1 med by this Department since June STiTK?. Alabama 765 M ' ' Flori.la J7J Georgia 348 I. mislana 819 • ),i 539 North Carolina 1,105 Fouth Carolina 605 Tennessee 1,021 Texas Ti 8 Vir^ioia 1,790 S| eg 28 IOC, 281 24 •-'•-' 107 19 19 •17 n 246 8 :;i •i'S ;:. 281 21 50 1'.':. 20 ::4 'M\ :3:» B4 189 25 69 •_'•_' I 28 07 •_"J1 618 281 <>J7 2,084 18 12 2" ;> 15 »', 86 19 •17 100 77" 610 1.881 617 7 7 558 111 ■ - Respectfully submitted: >. CLEMENTS, Chief of Appointment Bureau. Tost Ofpicb Deparimknt, Apponmonra Hl-reap, December ;:i»t, ls62. ji^led ; the quantity issued to each State, and exhibiting the total 63. | Account of wrapping paper iVfaUn «pnt for Distributing Showing the number of and twine issued. distributor u Si 8"»t»™ P° st b . laQ * s iwnedto each State; bills. in sheets and in reams. ~ Paper. Twine. -i. Cotton. Hemp Virj Noi Soul Geo Ala! Flor Miss Lou Ark; Tern Texi 240 220 4T0 160 11 . §8 . 17 127,980 70,658 81,178 109,153 56,925 8,786 49,765 12,549 6,564 29,746 39,049 266 146 106 227 US 18 103 26 13 i 300 47S 95 825 466 Aggi 360 ! 83 562,202 On •20 1,171 , 122 374 115 91 259 151 10 106 22 20 60 30 ! 1,243 1<5# 9 19 16 10 17 2 1 10 3 11 14X 120# ! 29X SO 47 60 75^ HO 94# 90 9H 8SJf *8% 30 34# 39 30 519# 360 ,j 224 98 540 B. N. CLEMENTS, Chief of Appointment Bureau. o * Hollinger Corp. pH8.5