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Mr. Croxton. That is all; there was no financial interest.

The CHAIRMAX. On that statement of facts this recommendation comes from the Secretary of the Treasury?

Mr. CROXTON. Yes, sir.
The CHAIRMAN. Through the President?
Mr. CROXTON. Yes; through the Budget Bureau.

The CHAIRMAN. And it is desired that the money be returned to this bank?

Mr. Croxton. Yes, sir. There is no other way to get it back to them.

SATURDAY, FEBRUARY 18, 1922.

BUREAU OF INTERNAL REVENUE.

STATEMENT OF MR. C. P. SMITH, ASSISTANT COMMISSIONER OF

INTERNAL REVENUE.

TAX SIMPLIFICATION BOARD.

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The CHAIRMAN. You appear in behalf of the item of expenses,
Tax Simplification Board ?
Mr. SMITH. Yes, sir.
The CHAIRMAX. The item reads:
For expenses of the Tax Simplification Boarel established in the Treasury
Department under the provisions of section 1327 of the revenue act of 1921,
approved November 23, 1921, during the fiscal year ending June 30, 1922, as
authorized under paragraph 2(e) of said act and section.

The CHAIRMAN. How do you know it will be $10,000 ?
Mr. Suth. I do not.

Mr. Smith. The Tax Simplification Board was organized right after the revenue act of 1921 was approved.

The CHAIRMAN. Was it provided for in the act ?

Mr. Suth. Yes; section 1327, revenue act of 1921. The revenue act of 1921 in that same section authorized an appropriation of $10,000, the wording of the statute being :

For the expenditures of the board for the fiscal year ending June 30, 1922, there is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $10,000.

The CHAIRMAX. For how long a period ? Mr. Suth. From the time of the creation of the board up to June 30, 1922.

The CHAIRMAX. Of what does this $10,000 consist?

Mr. Suith. Of course, the only expenses which will be paid out of this $10,000 are the traveling expenses of the members of the board who represent the public.

The CHAIRMAX. How much will they amount to? Mr. Suth. They have not asked for anything. I took this matter up specifically with Undersecretary Gilbert and find they have not asked for a cent to date.

Tell us about that item.
The CHAIRMAX. How do you know it will be $5,000?

Mr. Smith. I do not. The CHAIRMAN. Then, why do you ask us for $10,000? Mr. Smith. Undersecretary Gilbert stated that this item was put in because it was authorized.

The CHAIRMAN. Because it was authorized does not mean that an appropriation is going to be made. We are not going to appropriate for it unless we know what we are appropriating for.

Mr. SMITH. Undersecretary Gilbert stated this morning that he could not estimate the amount, and in the absence of Mr. Beal, who is away on ccount of illness, having suffered an accident in Pittsburgh, he could not tell just how much should be estimated for these espenses.

The CHAIRMAN. Does this continue during the next year?
Mr. Smith. Yes, sir.

The CHAIRMAN. Suppose we let it go for 1922, as long as you do not think you will have any expenses in connection with it, and take a chance on it in 1923. The mere fact that the law authorizes an appropriation does not mean that it is going to be made, or that if you do not spend it we ought to appropriate it.

Mr. Smith. These three individuals-Mr. Beal, Mr. Sterrett, and Mr. Abbott

The CHAIRMAN (interposing). You know they will not want a cent.

Mr. Smith. It was the thought of the Treasury Department that they ought to be reimbursed for their actual expenses.

The CHAIRMAN. When you know their actual expenses send in a bill for them, but in the meantime we will just forget this item.

SATURDAY, FEBRUARY 18, 1922.
BUREAU OF ENGRAVING AND PRINTING,
STATEMENT OF MR. A. P. RUTH.

INCREASE OF LIMITATION OF NUMBER OF DELIVERED SHEETS.

The CHAIRMAN. You are asking for the following item :

The limitation for the fiscal year 1922 as to the number of delivered sheets of checks, drafts, and miscellaneous work is increased from 6,132,037 to 7,500,000 sheets.

Mr. Ruth. That is to meet the demands of the various depart. ments for checks, drafts, commissions, warrants, and miscellaneous work of that sort as ordered from the bureau in the present fiscal year. In the first six months the actual deliveries on orders have exceeded the pro rata of the limit. We delivered up to the end of December 3,494,511 sheets against the allotment of 6,152,037 for the year.

The CHAIRMAN. That means that you want to keep going at the same rate? That is all there is to it? Mr. RUTH. Yes, sir. The CHAIRMAN. It is not because they need the checks? Mr. Ruth. Yes; it is because they need the checks. In the month of January we delivered 757,754, which is a little larger than the average had been for the first six months.

Thephe CHam. We keep all

The CHAIRMAN. What will happen if you do not get this authority?

Mr. Ruth. I imagine the Pension Bureau, some of the disbursing clerks, and maybe the Veterans' Bureau, will not have sufficient checks.

The CHAIRMAN. They generally have a supply of checks for six months in advance, do they not? Mr. RUTH. No; we have current orders.

The CHAIRMAN. I know you have current orders, but they always have a supply in advance.

Mr. RUTH. But I do not think they have a supply for more than a month or two.

The CHAIRMAN. What is your experience about that? You ought to know.

Mr. PLATT. Well, when I was disbursing clerk—and that is the only knowledge I would have about it-I simply kept just about one month's supply ahead and not more than two months.

The CHAIRMAN. Well, if you had two months' supply ahead, would you still have enough to carry you to the 1st of July ?

Mr. RUTH. Based on the present rate of delivery, and the small supply that the officers carry, I do not think they would have sufficient to carry them over to July. You take the Veterans Bureau. They pay, I understand, their allotments monthly?

The CHAIRMAN. They pay every two weeks. Mr. RUTH. We are delivering just about as rapidly as the several officers use them, keeping just enough ahead to avoid having them without any supply at all.

The CHAIRMAN. What will be the extra cost of this increased authority?

Mr. RUTH. There is no additional appropriation asked for. The appropriation already made is sufficient to pay this additional cost. · There is a slight reduction in the deliveries of internal stamps which is more than sufficient to pay this additional cost.

The CHAIRMAN. There has been a large reduction in the internal revenue stamps ?

Mr. Ruth. Probably about 10 per cent, based upon the deliveries in the first six months.

The CHAIRMAN. Why do you need this additional authority? Is it because the law provides a limit?

Mr. RUTH. The law limits the maximum number that can be printed and delivered.

The CHAIRMAN. You say there is a likelihood of a shortage of
checks, drafts, blanks, and so on?
Mr. Ruth. Yes, sir.
The CHAIRMAN. If you do not get this authority?
Mr. RUTH. Yes, sir.

The CHAIRMAN. At the rate you are going now does it require
this authority to keep it up?
Mr. Ruth. Yes, sir.

The CHAIRMAN. It is not for the purpose of keeping additional . people employed ? Mr. RUTH. No, sir. The CHAIRMAN. It is just for the purpose of meeting urgent needs?

Mr. Ruth. That is right. We have not furnished anything except that for which we have had actual orders on hand.

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SATURDAY, FEBRUARY 18, 1922.

MINTS AND ASSAY OFFICES.

STATEMENT OF MR. RAYMOND T. BAKER, DIRECTOR OF THE MINT.

CONTINGENT EXPENSES, MINT AT NEW ORLEANS.

The yog, at the base is a

The CHAIRMAN. For incidental and contingent expenses, fiscal year 1922, at the New Orleans Mint, you are asking $48.70.

Mr. BAKER. That is a deficiency in the gas and electric current account for 1920.

The CHAIRMAN. What is this about? Mr. BAKER. It is for electrical current and gas used at the New Orleans assay office.

The CHAIRMAN. What did they want with gas at the New Orleans assay office ?

Mr. BAKER. We use gas in the melting operations.
The CHAIRMAN. Is this a proper bill?
Mr. BAKER. It is a proper bill, and it should have been presented
long before.

The CHAIRMAN. Has it been audited ?
Mr. BAKER. It has been audited, approved, and submitted.

SATURDAY, FEBRUARY 18, 1922.

COAST GUARD.

STATEMENTS OF CAPT. WILLIAM. E. REYNOLDS, COMMANDANT

THE COAST GUARD; MR. K. J. MINOT; AND LIEUT. LEROY REINBURG.

AUTHORITY FOR TRANSFER OF FUNDS.

The CHAIRMAN. Captain, you are asking for the following item: Not to exceed $20.5,000 of the amount appropriated for the fiscal year 1923 under the subhead “Rations " is transferred and made available for expenditure luring the fiscal yer under the following subheads: " Fuel and water." $180,000 ; " Contingent expenses," $25,000.

This does not require any money but is simply a transfer of funds!
Capt. REYNOLDS. It is a transfer of funds only.
The CHAIRMAN. Why is this necessary?

Capt. REYNOLDS. When the appropriations for the present fiscal year were made under the subheads of "fuel and water” and “ contingent” we realized that, as they were so much below our estimates. we should not be able to get through with them. In July and again in October we wrote the Budget officer of the Treasury Department to that effect, and in December we wrote the Secretary of the Treasury requesting that steps be taken to have certain funds transferred from the subhead of “rations” to these other two subheads in order to get through, it having developed at that time that we would hare a surplus in the ration account.

The CHAIRMAN. Is that due to the fact that you were able to ration the men for less money than you estimated?

Capt. Reynolds. Yes, sir. And I will say, Mr. Chairman, that in the light of events, and as we have actual figures up to a later date than we had at that time, we find that we can reduce the estimate for fuel and water to $150,000 instead of $180,000, but at the same time we find that we require probably $5,000 more for contingent expenses.

The CHAIRMAN. What do contingent expenses consist of? Mr. Minot. Under the law, Mr. Chairman, any expense that is not specifically covered by the other subheads is charged to contingent expenses. There are three principal subheads: Communication service, which cost in 1921, $29,395; repairs to station apparatus—that means station boats, etc.

The CHAIRMAN. Equipment ? Mr. MINOT. Yes, sir; $30,034; transportation of things, which includes our freight, expressage drayage, and so on, $50,172.

The CHAIRMAN. Those were the expenditures in 1921 ? Mr. MINOT. Yes, sir; there are other miscellaneous items of smaller amount, which I can give you, amounting to $37,444. The total expenditure for 1921 was $147,045.80.

The CHAIRMAN. And this $205,000 will bring you up to that? Is that what you want ?

Capt. REYNOLDS. We are transferring $30,000 to the $105,000 which was appropriated, making $135,000, which we estimate it will take for the entire fiscal year.

The CHAIRMAN. At what amount did you estimate the cost of rations at the time you made your estimates for this fiscal year? Mr. Mixot. For the current year? The CHAIRMAN. Yes. Capt. REYNOLDS. $1,627,000. The CHAIRMAN. I mean per man. Mr. Minor. Eighty cents.

Lieut. REINBURG. In January the ration cost 56 cents, and in December about 58 cents. It is still going down on account of the reduction in wholesale prices.

The CHAIRMAN. How much will probably be saved in rations for the vear under the lowering rates?

Capt. REYNOLDS. $230,000 is our estimate.
The CHAIRMAN. And you want to get it all back by this process?
Capt. REYNOLDS. We want to get $180,000 of it back.

The CHAIRMAN. Tell us whether you think that is a good practice or not.

Capt. REYNOLDs. It has been absolutely impossible to restrict our expenses in fuel and water and contingent below what we have spent.

The CHAIRMAN. Fuel is a thing you can not control if you are cruising.

Capt. REYNOLDS. We can not control the contingent expenses completely, either, because they include the shipment of things, as Mr. Minot has just said, besides a number of other expenses. Sometimes we must have supplies, and we must have boats; sometimes we lose a boat, or stave one, and have to supply it, and it is quite an item of expense to ship a boat out. In the recent storm off the coast one of our ships lost two boats; she was out in that hurricane assisting a vessel. Fortunately we had a cutter right at hand at Baltimore

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