have voted then to extend the provisions of the classification to the field service, but the then President thought that such would not be wise; that it would be too expensive to make a study looking to the extension of the Classification Act to the field service. He thought we would better try it here in Washington and, if it worked well, we could spread it out in time. That is all the pending bill seeks to do, Many studies have been made of this matter. The Civil Service Commission today has many volumes of reliable information that would help in connection with the extension of the Classification Act. Why not use that relevant material and make the service in fact what we proclaim it to be, namely, a merit system?

Mr. HARTER Is there any way by which we may ascertain how many of these positions among the 250,000 or 300,000 are being held by appointees who have passed appropriate Federal civil-service examinations?

Mr. STENGLE. You mean in the so-called emergency agencies?
Mr. HARTER. Yes.

Mr. STENGLE. I imagine you can get that information from the Civil Service Commission. There are many of them, because I have come in contact with them. They have a civil-service status and they come to me and want to be transferred from a temporary agency to a permanent agency.

Mr. HARTER. I am frank to say that if I were convinced that many of these employees in the emergency agencies had taken and passed competitive examinations whether for their present positions or like positions, my idea might be changed.

The CHAIRMAN. We can undertake to learn whether the information you, Mr. Harter, desire is available.

Mr. STENGLE. Since the set-up of these emergency agenc es in 1933, even though persons were appointed through political preference, more than 50 percent of the incumbents have been eternally taking other civil-service examinations in order to qualify for positions.

The CHAIRMAN. That is true of those in the civil service all the way through, is it not?

Mr. STENGLE. I know many who have taken a dozen examinations, although they are doing temporary work now.

Mr KUNKEL. Have you any suggestions looking to improving this bill without interfering with the practical advantages of it that have been pointed out?

Mr. STENGLE. I have this notion, Mr. Congressman, although it may not be popular: That we give a qualifying test. I believe that this bill should provide that if competitors fail in a test that they should within a reasonable time thereafter be required to vacate their positions. After they shall have been given an opportunity to qualify, and they do not do so, and this law is then on the statute books, we could fill their jobs from eligible registers of the Commission.

Mr. MILLS. So that the record may be clear, you have stated that the American Federation has endorsed the pending bill, as I understand?

Mr. STENGLE. It endorsed the principle at its Houston convention. Mr. MILLS. I believe you stated that you would favor some amend

ments.

Mr. STENGLE. The gentleman asks if there was any way to improve the bill.

Mr. MILLS. Referring to the position of the C. I. O., does it offer any amendments to this particular bill?

The CHAIRMAN. The only ones are those Mr. Baker suggested, which will appear in the record.

Mr. BAKER. We suggest minor amendments only.

STATEMENT OF MARY T. DENMAN

Miss. DENMAN. I am national legislative chairman of the National Federation of Business and Professional Women's Clubs, Inc.

Long on record in favor of extension of the merit system, the National Federation of Business and Professional Women's Clubs, Inc., earnestly favors the enactment of H. R. 960, introduced by Mr. Ramspeck and the subject of public hearing at this time.

The extension of the civil-service system to more than 200,000 exempted positions in the Federal Government is long overdue, in the judgment of 70,000 business and professional women in 1,600 clubs allied with the national federation.

It is essential to the development of a career service, so necessary to administer efficiently the many and increasing functions of Government today.

As for the achievement of classified status by present incumbents of positions, the bill's provisions seem to us to offer the only practicable way of dealing with so large a number of employees without considerable disruption of the services affected. We are aware that open competitive examinations offer a proper method for the selection of public personnel in most circumstances, and point out that even present incumbents to advance their status will usually be required to take competitive examinations.

The passage of this bill is an essential step in developing a permanent public-career service.

STATEMENT of anna F. DAVIDSON, NATIONAL SECRETARY OF THE ASSOCIATION OF NONCLASSIFIED FEDERAL EMPLOYEES

Miss DAVIDSON. The Association of Nonclassified Federal Employees of America appears before your committee and states that it is in wholehearted accord with the aims and objectives of H. R. 960, a bill to extend the classified civil service to all nonclassified Federal employees through noncompetitive examinations.

This association feels that the best interests of the Government would be served by the granting of noncompetitive examinations to all nonclassified employees, in view of the fact that economy, the present watchword, will be conserved, and that the giving of such a noncompetitive examination will keep in the Government service people who have already proven their aptitude for the work for which they would be given examinations.

At the time these emergency employees were taken into the Government service the Civil Service Commission was unable to certify eligibles to fill the vacancies created by the emergencies at that time existing. Hence the positions filled by these emergency employees were exempted. Every agency, however, gave the applicant a test, in some instances comparable to tests of the Civil Service Commission. The majority of these nonclassified employees have been with the Government from 2 or upward of 5 years. It is needless to say that

these men and women in most cases have proven their value to the Government. It can hardly be stated that any head of a department would continue to carry these nonclassified, emergency employees on the pay rolls indefinitely if the work done by them had not been of the highest degree of efficiency.

On the economy side of the picture, a reading of the hearings on H. R. 2700 has shown us that approximately 14.5 people would apply in an open examination for each position now filled by an emergency employee; that total number of applicants applying for all the nonclassified positions would approximate 4,350,000, at a cost of approximately $2 to $3 for each applicant. You can readily see, therefore, that the cost of such competitive examinations would be over $8,000,000. Mr. Yaden stated on October 28, 1934, that the cost of giving competitive examinations would be exorbitant, and that it would take 5 years to complete competitive examinations, which is as long as some of these nonclassified employees have already served the Govern

ment.

It is needless to state that at this time the giving of a competitive examination, open to so many millions of people, would naturally have an ill effect upon the minds and workings of some people who have already spent so much of their time in the Government service. Most of the entrants for examinations for positions in the Government service today are just out of schools and colleges, and are, naturally, in a better position to take a competitive examination, but the incumbent of a position has been away from school for many years; and while his work at the present time might be of the highest standard, nevertheless he might not stand a good chance in a competitive examination.

If a competitive examination were given at this time, those who might qualify by means of a competitive examination would in no way be as well qualified for the position that they might ultimately fill; they have had no experience in the work, no matter how well they withstood the examination; hence their probationary period would be an added expense to the Government. The people now holding such positions have long since passed their probationary period, and the giving of a noncompetitive examination to them would insure the continuance of the splendid work that has been done by the nonclassified employee.

The nonclassified employee, no matter how long he has served, today has no status whatsoever, no retirement privilege, no social security. The majority of these men and women are today of an age where it would be almost impossible for them to go out again into the business world, from where most of them have come, and get a position. They are estopped by reason of their age, but their age has been no barrier to their doing outstanding and splendid work for their Government.

The nonclassified employees do not wish to come into the Government service under a blanket order; they want to come in through the front door, by taking a noncompetive examination for the job they are holding today; they are willing to take their chance on passing. We feel that if they cannot make the passing mark they should not be permitted to hold their positions; but we do feel that they should be given an opportunity through noncompetitive examinations to hold the jobs they now have. They want sécurity for themselves and their

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families. It would, therefore, be only fair to these worthy employees, who, while in the first instance, did not take a civil-service examination, have nevertheless loyally served the Government, that they be given the privilege of taking a noncompetitive examination.

Competition between a man or woman who has served competently and fulfilled his or her job to the satisfaction of his or her superior should not be called upon to take a competitive examination with thousands of young men and women who, while qualified to take examinations, would not serve the Government any better than the man or woman who has already shown what he or she can do.

The Civil Service Commission, as is shown at page 2 of the hearings before the Committee on the Civil Service on H. R. 2700, has gone on record as favoring the noncompetitive examination, by reason of the fact that it will bring into the service in an orderly fashion the persons to be brought into the classified service, and it will not disrupt the existing agencies as a competitive examination would.

This association, on behalf of the thousands of nonclassified Federal employees, asks this committee to consider the effect upon the morale of the nonclassified employees who would be compelled to take a competitive examination and the effect it would have upon the minds of these persons; the cost to the Government, and the effect it would have on the Government agencies in the way of overturn of help, insofar as training these new employees would be concerned, if competitive examinations were given.

This organization, representing only nonclassified employees in the Government service, asks, in the name of fair play to the Government and the employees, that the nonclassified employees be granted the privilege of taking a noncompetitive examination, thereby continuing to give the Government the outstanding services which it has to date received from the nonclassified employees.

STATEMENT OF FRANK G. MORRISON

Mr. MORRISON. Mr. Chairman and gentlemen of the committee; on behalf of the National Association of Nonclassified Federal Employees I wish to express appreciation of the courtesy extended to me to be present at the public hearing on H. R. 960, which proposes to extend the classified civil service to all employees in the Federal service.

It is a well-known fact that many intelligent, clear-thinking persons interested in the extension of a classified service civil status are convinced, beyond a question of doubt, of the feasibility of such an extension. Therefore anything that I might add would to a large extent be a corroboration of the facts already known.

At this time it appears that the trend of the Congress leans toward economy. With this in mind it appears that, since we have experienced an extraordinary period of experiment in search of efficient methods, it is time to realize the profits of that experience. In my mind, there is no better way of cashing in on our endeavors than to take advantage of the experience gained by the emergency employees in the last several years.

The Government has spent large sums of money to train employees in the Federal way of doing business. Is it along the regular orthodox systems as set up in private business and other enterprises outside of the Federal Government? I believe not.

While time will not permit going into detail of the various Governmental activities, such as accounting, law, engineering, and so forth, I believe it would be well to bring out some of the pertinent facts concerning one of these fields, such as accounting.

Accounting, as we know it in general practice, is a highly standardized profession. The requirements are fairly standardized as to education and study, and there has been little change in the established courses. Any business firm, from a small corner store to a large industrial corporation, can set up its accounting functions along generally accepted lines, depending upon the needs of its particular business. While a small firm may only require a bookkeeper, had a large corporation may require several bookkeepers, clerks, accountants, and auditors, all are trained along established accounting lines. This is not, however, exactly true of the Government. For example, in the emergency set-up we have the Treasury Accounts offices, General Accounting Office, and the various administrative offices performing what is known as appropriation-fund accounting, and which applies to the Federal Government.

This accounting is based upon legislation such as the Constitution and the Budget and Accounting Act of 1921. The account is set up by procedure to carry out the intent of the Congress, and, strange as it may seem, few of our schools and colleges have specific courses covering this form of accounting. It is something they know little about, which is evidenced by the fact that our schools and colleges today are clamoring for information and assistance along this line. The American Institute of Accountants and other accounting societies have set up special committees endeavoring to create an interest in governmental accounting.

The March issue of Accounting Review presents a fine example, wherein Mr. Carl Chatters, executive director of the Municipal Finance Officers' Association and also executive director of the National Committee on Municipal Accounting, writes as follows:

There seems to be a great need, as far as the Government field is concerned, for integrating a knowledge of the political sciences with governmental accounting. This comes about because the type of accounting is dictated by the type of governmental organization and by the laws in force. It would be well, however, to impress on students the fact that they should not confuse procedures required by law with procedures required by sound principles-they must always follow the law, but at the same time they need not be able to recommend legal changes that would permit or encourage sound accounting practices.

At the present time, and for the future as well, there will be a wide field open to the universities in teaching governmental accounting to people already in the public service through their extension divisions. In those universities which consider adult education an important part of their work the Accounting Department might well look toward the governmental field.

In another of his theses he writes:

At present the general accounting precedure of the Federal Government is utterly inadequate to present factual information about assets and liabilities. Neither does it provide the basis for current reports usable for administrative purposes. However, a recent order of the Secretary of the Treasury indicates that he is studying the feasibility of establishing a system of general-ledger accounts which will reflect all financial transactions and form the basis for financial reporting. It is believed that the departments and agencies of the Federal establishment will be unsympathetic to any centralized control and will resist change. But these deficiencies in the Federal Government's accounting should not obscure one excellent piece of work now being done.

The Commissioner of Accounts and Deposits in the United States Treasury Department, by Executive order, is charged with the responsibility of accounting