in number of trainees, the increase in local offices, and training centers. The following is an itemization of communication charges by districts for the past fiscal year: The CHAIRMAN. The next item is for miscellaneous: Last year you had an expenditure of $244,929.42, while for this year you estimate $247,630.68. What is miscellaneous, or what does it consist of? We would like to know about that. Col. FORBES. Miscellaneous expenses are made up of the following items: Crating of furniture, window cleaning, electric bulbs, lettering of doors, paper towels and drinking cups, dry cell batteries, repairs to typewriters and mechanical appliances, repairs to office fixtures, heat, light, and water, miscellaneous rental, job employees, retirement fund, repairs and renewals, building repairs. The following expenditures under the caption of miscellaneous expenses were made during the fiscal year 1921: The CHAIRMAN. For freight and express you had an expenditure last year of $69,626.30, while for next year you propose an expenditure of $90,047.52. What does that expense consist of? Col. FORBES. In part explanation of that, I will say we are taking over Government property from other departments and shipping it to the different schools and different regional centers in the country. The CHAIRMAN. Is that training material? Col. FORBES. Yes, sir; it is training material. Very frequently we find that it costs more to ship the material than it would to buy it locally and install it, but the law prohibits us from doing that now. Freight, express, and drayage. Under this caption $9,330.33 was expended for drayage and $60,295.97 was spent for freight and express. Large quantities of supplies are shipped to regional offices, suboffices and training centers. All furniture and supplies that can possibly be obtained from the general supply committee are shipped from Washington. Supplies for trainees, including books, mechanical devices, etc., can be purchased cheaper in large quantities; as a consequence such supplies are shipped largely from central office, with an additional charge in freight and express charges. The following table gives the freight and express charges by districts, as of July 1, 1921: The CHAIRMAN. The next item is for printing, and it appears that for 1921 you had an expenditure of $90,257.94, while for 1922 you propose an expenditure of $112,559.40. Why do you print so much? Col. FORBES. There are a great many necessary forms and pamphlets. It follows that there would be a great deal of printing for such a large population as we are providing for. The CHAIRMAN. Is this printing done at the Government Printing Office? Col. FORBES. Yes, sir. The CHAIRMAN. On bids? Col. FORBES. No, sir; it is turned over to the Government Printing Office. The CHAIRMAN. You do not take bids? Col. FORBES. No, sir. The CHAIRMAN. I would like to know what it consists of. Col. FORBES. Printing consists of forms printed by Government Printing Office and the mimeographing and multigraphing of forms by the bureau itself. To give some idea of the large number of forms required in this work, for the period September 1 to November 1, 22,000 No. 107 forms were received in central office from the districts. It is absolutely essential to use these forms, as it eliminates a large number of typists and stenographers and at the same time simplifies the procedure in expediting the claims of the trainees. Each case folder for the 440,000 men registered contains at least 1 manila jacket 18 by 12 inches; 1 Form 107, giving rate of maintenance pay, school where trainee is being trained, name of trainee and similar information; Form 213, giving personal history of the trainee; Form 119, contract with school to give training to the trainee; Form 116, application for dependency allowance; Form 502, complete medical history of the trainee, giving disability causing vocational handicap. This will give some idea as to the expense for printing and the large amount of work done along this line. The CHAIRMAN. The total administrative cost here is $12,021,343.92 as against an expenditure of $9,708,690.32 for 1921. The total expense according to the 1922 schedule appears to be $141,757,308, while the total administrative cost is $12,021,343.92. Do you not think that that is a large proportion for the administrative expense where you do not have to go out and hunt business, or manufacture stuff, or collect accounts, or look after bad debts, or sue people in the courts, or that sort of thing? You would not have any such overhead charges as that in any private business. If you had, it would not last 15 minutes. Col. FORBES. We have a much less overhead charge than any other institution of the country. It only costs the Government about 6 per cent to do business. The CHAIRMAN. The cost represented here is 9 per cent, as nearly as I can figure it; $12,021,343.92 is about 9 per cent of $141,757,308. Col. FORBES. I am speaking of the whole organization. The CHAIRMAN. We are dealing with this one thing, and this appears to be 9 per cent. Col. FORBES. Yes, sir. ALLOWANCES. The CHAIRMAN. That is outrageous. The next item is for the allowance, and that amounts to $111,388,782.24 as against an expenditure of $77,966,753.20 in 1921. In this connection, I wish you would be kind enough to give us the total number of men to whom allowances are being made, with the average allowance to each man, and a statement showing whether the $111,000,000 is an actual reality, or is just what you anticipate. If it is an anticipated amount we want to know how you reach it. Mr. ROUTSONG. The explanation I made a little while ago of this table applies to that figure that is to say, we used the total amount actually paid for allowances in 1921, and took the number of trainees per month, or the mumber of months of maintenance pay actually paid as the basis. That is an estimate. The CHAIRMAN. We would like to have it in detail, without, however, going into too much detail, because we will have to explain in the House. Of course, we can not state it in the House if we can not get it here. We would like to have you put the schedule of allowances in your answer in the record. Col. FORBES. The following statement shows the number of trainees to whom maintenance allowance checks were sent as of October 15, showing the number receiving each of the various amounts from $80 to $170 per month. Ninety thousand one hundred and fortythree men were receiving over $10,435,000 per month or at the rate of about $125,000,000 per year. In estimating $111,388,782 as the amount necessary for maintenance allowance this year, it was assumed that a policy which would assure prompt rehabilitation, without working an injustice either to the man or to the Government, would be inaugurated. Statement of the number of trainees receiving each of the various monthly amounts of allowances for maintenance as of Oct. 15, 1921. Man with no wife and no children but with 1 dependent parent. 150.00 Man with wife and I dependent parént. Man with no wife and no children but with 2 dependent parents. 110.00 120.00 Man with wife and 2 dependent parents. 125.00 Man with wife and 1 child and I dependent parent. 135.00 Man with wife and 1 child and 2 dependent parents. 135.00 Man with wife and 2 children and I dependent parent.. 145.00 Man with wife and 2 or more children and 2 dependent parents. 142.50 150.00 147.50 150.00 115.00 125.00 122.50 132.50 130.00 140.00 140.00 150.00 Man with no wife but 5 children and 1 dependent parent.... Per month. .$145.00 150.00 105.00 Effective July 1, 1920, the amount shown in the above schedule was increased(a) Ten dollars to all trainees residing where the average cost of lodging and table board for an individual is $40 or more per month and less than $45 per month. (b) Twenty dollars to all trainees residing where the average cost of lodging and table board for an individual is $45 or more per month. (c) The above schedule without change will apply to trainees residing where the average cost of lodging and table board for an individual is less than $40 per month. CONSTRUCTION AND LABOR. The CHAIRMAN. For construction and labor, the expenditure in 1921 was $75,661.72, while for 1922 your estimate is $56,279.70. What do they construct? Col. FORBES. That is construction work in the reconstruction of training centers. The CHAIRMAN. Do we own those centers? Do you mean in shops where the men work? Col. FORBES. Yes, sir; some of them. The CHAIRMAN. How many are under the jurisdiction of the Government? Col. FORBES. At the present time we have seven Government shops and seven Government training centers. They are not all owned by the Government. The CHAIRMAN. Do we construct shops that we do not own? Col. FORBES. No, sir. We alter some of the shops to suit the use to which they are to be put. The CHAIRMAN. Why. Col. FORBES. These were leases made before we took the Rehabilitation Division over. The CHAIRMAN. Do we pay the people whose shops we use? The CHAIRMAN. Will you be kind enough to state in your answer to this question the conditions under which those leases were made, how many of them exist, the length of time for which they were made, the amount of rent we pay in each instance, the names of the lessors, and the construction work that we are obliged to do in addition to the lease, and why we are obliged to do it. Col. FORBES. I would like to have the committee look at some of those leases when we bring this material up to you. I would like for you to see them. The Federal board allotted funds for alterations and repairs for each training center in accordance with the recommendation of the district vocational officer in whose district the center was located. No itemized record was kept in the central office at Washington either of the expenditures approved, following the allotment, by the district vocational officer, or of unexpended balances out of allotments. It was left entirely in the hands of the district officer. Immediately upon the organization of the Veterans' Bureau, this practice was stopped. I am now investigating the status of each allotment, but it will take some time. The following statement shows the centers to which such allotments were made, the date authorized by the board, and the amounts involved: |