MAIL-BAGS, CATCHERS, LOCKS, AND KEYS.

A tabular statement (G, page 172) appended hereto exhibits in detail the number, description, and cost of all mail-bags and mail-catchers, and of all mail locks and keys purchased under contracts during the year ended June 30th last.

The total number of mail-bags procured and put into service was 79,898, of which 72,100 were for the transmission of printed and thirdclass matter, and 7,798 were chiefly for letters or first-class matter. The number of new mail-catchers procured was 400.

The entire quantity of mail-bags repaired was 344,619, the cost of which was $38,468.22. Under a long-continued system of repairing mailbags, abolished by my predecessor, who established the present system, the cost of the same repairs would have amounted to $90,230.11.

The total expenditure for mail-bags, mail-catchers, repairs, &c., was $140,275.54, or $25,365.75 less than that of the last preceding year. The total expense for mail locks and keys was $5,890; $7,585 less than the expense of the previous year.

OPERATIONS OF SPECIAL AGENTS.

The special agents of this department have rendered efficient service in'investigating irregularities, securing safety to the mails, and increasing the efficiency of all branches of the postal service.

MAIL DEPREDATIONS.

The action of Congress in authorizing, in the appropriation for the service of the Post-Office Department for the fiscal year 1879, the expenditure of $20,000 in rewards for the apprehension of mail robbers, has been fully justified by the results. Through the inducements thus held out the energetic action of the special agents of the department has been supplemented by the earnest efforts of others who, in hope of securing the rewards offered, have rendered most efficient aid in suppressing the unlawful acts so frequently complained of in the Western Territories.

Inasmuch as the appropriation for this purpose is limited to the fiscal year ending June 30, 1879, I have directed the offers of reward to be made in such form as not to involve the department in any liabilities after that date.

The amount provided for rewards was made a part of the appropriation for mail depredations and special agents, and consequently diminishes to the extent of the sum used, the amount available for the salaries and expenses of the special agents. Furthermore, as the amount to be expended for rewards cannot be accurately estimated, the department is obliged to limit the number of agents employed, in the efforts to maintain the reserve for rewards which the exigencies of the service may render necessary.

I would recommend, therefore, that the appropriation be renewed for the ensuing year, and that either it be not included in the appropriation for mail depredations and special agents, or that the latter appropriation be increased by a corresponding amount.

ARRESTS AND CONVICTIONS.

The total number of persons arrested during the year was 554, of whom 442 were prosecuted in United States courts and 132, being cases of highway mail robberies, burglaries of post-offices, &c., in the State courts. Of the former, 205 were convicted, 13 acquitted, 50 otherwise disposed of, and 154 are awaiting trial. Of the cases of arrest, subject to the jurisdiction of the Federal courts, 166 were salaried employés of the department and classed as follows:

The number of cases made up for investigation by special agents during the year was 14,511, of which the loss of registered letters was 2,582, of unregistered letters, 9,574; and miscellaneous cases, being the location of post-offices, effecting leases, investigation of postmasters' bonds, &c., 2,355; of 1,957 registered letters reported as lost in transit 1,117 have been recovered without loss; of 840 registered letters reported as actually lost, contents of which are estimated at $23,631.97, 304, valued at $6,248.12, were made good, and amounts paid to the rightful claimants. Registered letters numbering 611, and valued at $17,510.57, are reported as having been rifled of their contents in transit, of which 96, aggregating in value $6,311.13, have been recovered and amount of contents restored to the owners. Only 627 cases of registered letters are outstanding and under investigation. Of 9,574 complaints of the loss of ordinary or unregistered letters, estimated value of which in bonds, drafts, and money is $412,925.40, 6,383 have been reported on satisfactorily, and 3,191 are still under investigation. Of the 2,355 classed as miscellaneous, 1,993 have been investigated and 362 are yet in the hands of special agents.

A considerable portion of the time of the special agents has been devoted to examinations of the solvency of the sureties of postmasters, and, so far, this service promises to be of incalculable benefit to the government in guarding it against loss from defaulting postmasters.

RAILWAY POST-OFFICE LINES.

A tabular statement, hereto appended, shows that the number of railway post-office lines in operation on the 30th of June, 1878, was 59, ex

tending over 16,980 miles of railroad routes, a decrease of 5 lines and 781 miles as compared with the preceding year.

The number of clerks in the service at the end of the fiscal year ending June 30, 1877, was 1,051, whose annual salaries aggregated $1,222,690. The number of clerks in the service at the end of the fiscal year ending June 30, 1878, was 1,081, whose annual salaries aggregated $1,260,590, showing an increase of 30 clerks and of $37,900 in salaries.

The actual expenditures for railway post-office clerks for 1877 were $1,223,569.41; the actual expenses for 1878 were $1,236,524.39; an increase of $12,954.98.

The annual mileage of service performed by railway post-offices was 17,933,910 miles, an increase of 1,008,860 miles.

POST-ROUTE MAPS.

The topographer's office has been occupied in noting upon the postroute maps for the use of the department the daily changes of routes and post-offices, and in the preparation and publication of new maps and revised editions of those previously issued. The increased appropriation granted by Congress has permitted the publication of revised editions of 17 maps (43 sheets), and compilation and publication of new maps of Kentucky, Tennessee, Texas, the Western Territories, and Oregon in 11 sheets. Maps of Georgia, Arkansas, the Indian Territory, and part of Minnesota will be completed during the present fiscal year, and other needed revisions of maps will be taken up as the appropriations may

admit.

In addition to the requirements made on this office by the Post-Office Department, it is called upon to answer daily inquiries of all the other departments for information upon which their mileage and telegraphic accounts are adjusted.

APPOINTMENTS.

The report of the appointment office shows the following:

Number of post-offices established during the year.

Number discontinued....

Increase

Number in operation June 30, 1877.

Number in operation June 30, 1878.

Number filled by appointments of the President

Number filled by appointments of the Postmaster-General..

Appointments were made during the year

On resignations and commissions expired......

2,784

871 1,913

37,345

39, 258

1,570

37, 688

On removals

On changes of names and sites.

On deaths of postmasters

On establishment of new offices

Total appointments

Number of cases acted on during the year.

5, 117

748

184

338

2,784

9, 171 10,276

SPECIAL AGENTS AND RAILWAY MAIL SERVICE.

The number and aggregate compensation of special agents, railway post-office clerks, route agents, mail-route messengers, and local agents in service during the year ended June 30, 1878, were—

The following table shows the number of employés in the Post-Office Department, also the number of postmasters, contractors, clerks in post offices, route-agents, railway post-office clerks, and other officers in service June 30, 1877, and June 30, 1878:

Chief of Division of Postage Stamps, Stamped Envelopes, &c.

Chief of Division of Free Delivery Service..

THE FREE-DELIVERY SYSTEM.

Owing to the reduction in the appropriation, this system was not extended to any additional cities, except to Georgetown, D. C., which office was made a branch of the Washington office January 1, 1878.

It was also found impracticable, within the appropriation, to meet the demands for increased service from the cities where the system was * Other special agents charged to separate appropriations.

already in operation; hence, in some instances, the service, though regular and reliable, was slow and unsatisfactory, especially as it affected local correspondence.

The results, however, show a large increase in the number of pieces handled and in the amount of postage on local matter, and, at the same time, a large decrease in the cost of service. These results were due to increase in the work and a reduction of 5 per centum per annum in the salaries of carriers.

The increase in postage on local matter over last year was 8.7+ per cent., and the decrease in expenses 3.6+ per cent.

The postage on local matter exceeded that of last year by $197,653.68, and the entire expense of the service by $628,084.53.

The average cost per piece of handling the matter was 2.50 mills; a reduction of .33 of a mill as compared with last year.

STATISTICS OF THE FREE-DELIVERY OFFICES.

The aggregate results for the fiscal year were as follows:

AGGREGATE RESULT OF FREE-DELIVERY SERVICE FOR THE FISCAL YEAR ENDING JUNE 30, 1878.

*Based on the aggregate ($1,817,896.96) paid carriers, including incidental expenses at the several offices, less $6,270 paid special agents.

NECESSITIES OF THE SERVICE.

The urgent need of this service is greater frequency in deliveries and collections in several of the larger cities; and, in view of the large excess of postage on local matter over the cost of the service-due mainly to the carriers' delivery-a wise policy would seem to justify more liberal appropriations for the purpose suggested above, and also for the extension of the service to other cities having the population (30,000) entitling them to it under the law.

In regard to the pay of carriers, I desire merely to renew my recommendation of last year.