Once the normal retention period for the type of mail was reached, the item was either return to sender, or bearing no return address, sent to the dead letter office for final disposition. A second notice was required to be made after 5 days (generally) so the customer knew the item was still available at the post office. At the end of the carrier's day, they had to be cleared of accountable items by either having a delivery receipt (and any money required for postage due) or return the actual item to be filed by clerks for later pick up by the customer.
Mail is sorted by clerks, any mail determined to be "accountable" was handled/marked and signed out to the responsible carrier. As I said, mail handling was very meticulous and structured. The fact that the other stamps are not present (RETURNED FOR POSTAGE/POSTAGE DUE) tells me that the package did not go through normal handling. Since there is no "repair" in evidence, this makes me think that the package was opened by Inspector Holmes and the "damage" stamp was used afterward to cover the fact that he opened it. The "damaged" stamp was to let the customer know that the package reached the post office already damaged. However, it was common practice to reseal/repair a damaged package in order that the contents would make it through delivery. This would be correct if the tear near the edge was present when the package was sorted. People have noted the "received in damaged condition" stamp. This package exhibits none of the expected markings. Postal clerks were trained to watch particularly for mail bearing no, or too little postage as this could be a big revenue loser.
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This was done on a sign out sheet, thereby making the carrier "accountable" for either its delivery and collection of the fee(s) or its return and filing for later pick up by the customer to whom the carrier had left a notice giving the customer instructions as to how to obtain the referenced mail. Any item sent to the accountable clerk was then assigned to the carrier to make delivery. All mail was sorted by clerks and then given to the carrier afterward. These markings were applied by an "accountable clerk" and then given to the carrier. If no return address was present, the package was marked "POSTAGE DUE" with the amount due written on the package. During the time I worked at USPS, a package found in the mail without any postage was returned to the sender marked, "RETURNED FOR POSTAGE". Most of the rules, regulations and policies remained the same or very similar, but some were updated or streamlined for more efficiency. policies and procedures were in 1963 as I worked for the USPS after 1978. I cannot say for sure what the Post Office Dept. I will just add this, as additional information on the package.
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