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0. Dept. Studies
Rural Carrier Costs
Postmaster General John A. Gronouski has announced the completion of a study which shows that an ultimate annual saving of between $25 million and $30 million could be realised by providing Rural Letter Carriers with leased automobiles instead of reimbursing them for use of their own car.
“This is an economy proposal,’ Mr. Gronouski said, “that can help us to carry our President Johnson’s mandate to reduce expenditures while maintaining the same high level of service to the American people.' During the last fiscal year, : the Department spent nearly $70 million to reimburse Rural Letter Carriers for the cost of using their own vehicles as required by law. This expenditure represented payments to more than 31,000 Rural Letter Carriers who last year traveled some 570 million miles. Congress has established the current rate of reimbursement to Rural Letter Carriers at 12 cents per mile. The Department’s 14-month study indicates that vehicles ca n be leased on a nationwide basis at a cost of between six and eight cents a mile. Among Federal agencies that already lease vehicles are the Civil Service Commission and the Internal Revenue Service. In addition, private industry is making increased use of leased vehicles.
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