[Footnote G: Data indicating some of the increases in wages and taxes are given in Appendices D and E.] The foregoing shows that the Post Office Department expended for railway transportation, in 1901, $34.18 in order to earn $100.00 in gross and that by 1911 this expenditure had been reduced 37.8 per cent. to $21.26. This notable reduction was the consequence (first) of the operation of the law fixing mail pay under which the average payment per unit of service decreases as the volume of mail increases; (second) of the Acts of Congress of March 2, 1907, and May 12, 1910, and (third) of administrative changes effected by the Post Office Department which, without decreasing the services required of the railways or enabling those services to be rendered at any lower cost, greatly reduced the payment therefor. Chief among these administrative changes was the Postmaster-General's order known as the "Divisor" order (No. 412 of June 7, 1907, superseding Order No. 165 of March 2, 1907) radically lowering the basis for calculating the annual payments for transportation. No official estimate of the reduction in the aggregate annual payment produced by the operation of the law fixing the scheme of payment has been made but from time to time the Department has published estimates of the reductions otherwise effected. None of these estimates is now up to date, and to make them comparable with the present volume of mail substantial increases would be necessary, but they are given below as representing an amount substantially less than the lowest possible statement of the total present annual reduction. Cause of reduction Amount of annual reduction. Natural operation of the law No estimate. Acts of March 2, 1907, and May 12, 1910 $2,723,658.90 Withdrawal of pay for special facilities 167,005.00 Postmaster-General's divisor order 4,941,940.34 Other administrative changes 699,544.51 -------------- Total (with no allowance for the first item above) $8,532,148.75