Mr. THOMSON. In the fiscal year 1911 this appropriation was $23,000 and there was an unexpended balance of $11.62. During the fiscal year 1912, $25,000 was appropriated, from which there was an unexpended balance of $146.65. The appropriation for the fiscal year 1913 is $20,000. Under this appropriation must be purchased all articles not specified in some particular item of the contingent appropriations, including typewriters, telephone service, floor coverings, all the supplies needed in the care and maintenance of the building and repairs to the building. It has never been sufficient to properly care for the actual needs of the department. There are on file in this office requisitions for adding machines alone amounting to $5,000, a majority of which are over 2 years old. During this period the department expended about $1,000 for the rental of adding machines.

TYPEWRITERS.

There are approximately 500 typewriters in use in the department, over one-third of which should be exchanged and machines capable of doing efficient work purchased in place of them.

Mr. JOHNSON. What are you now paying for typewriters?

Mr. THOMSON. $50.

Mr. JOHNSON. What do you get in exchange for your old ones? Mr. THOMSON. There is a scale of prices to conform with the ages of the machines.

Mr. JOHNSON. Could you give us the contract you have with the typewriter people?

Mr. THOMSON. The purchasing agent, Dr. Holmes, can give you that. Doctor, we have not any existing contract, have we?

Dr. HOLMES. We have one with the Royal, which we can annul at any time.

Mr. JOHNSON. Is there any uniformity as to the prices that are paid in your department and all the other departments? Have you a uniform price?

Mr. THOMSON. I do not believe we have. The Underwood typewriter is quoted to us, I believe, at something like $78, and in the Navy Department there is a contract that has been in existence for a number of years at $62.50. We can not get the Underwood typewriter for $62.50, but have to pay $78 or $80.

Mr. JOHNSON. Is there a combination of those typewriter concerns? Mr. THOMSON. Well, that is a pretty hard thing to say.

Mr. JOHNSON. What is your belief about it?

Mr. THOMSON. I think there was, so far as some of them are concerned. The fact of the matter is that only recently there has been a merger of the Remington, the Smith Premier, and the Monarch typewriters. They are all in one agency in Washington now.

Hon. JOHN J. FITZGERALD,

OFFICE OF THE POSTMASTER GENERAL,
Washington, D. C., November 26, 1912.

Chairman Committee on Appropriations,
House of Representatives.

MY DEAR CONGRESSMAN: With reference to your request of the chief clerk of this department during the recent hearing before your committee for a statement showing the amount of money expended for stationery for the Postal Savings System during the fiscal year ended June 30, 1912, I beg to inform you as follows:

A total of $31.315.25 represents the expenditures from the appropriation for establishing postal savings depositories, that would have been a proper charge against the appropriation for stationery if the Postal Savings System had been provided for under the appropriation for contingent expenses.

Also, in compliance with the request of your committee, I am sending with this letter a copy of the existing contract between the Post Office Department and the Royal Typewriter Co. for furnishing typewriting machines, together with a schedule showing the exchange prices offered by that company. Under this contract the department is able to purchase typewriters at a cost of $50 each, less the exchange prices named in the list.

Sealed proposals, subject to the usual conditions, will be received at this office until 2 o'clock p. m., August 19, 1912, at which time and place they will be publicly opened, for furnishing and delivering at and within the doors of any post offices in the United States the articles named below.

Bidders have the right to be present, either in person or by attorney (sec 69, P. L. & R.; sec. 3710, R. S.), and to examine and inspect all bids (33 Stat. L., 440).

The department reserves the right to reject any or all bids.

Proposal must be signed by the bidder and inclosed in the accompanying envelope.

Purchasing Agent.

THE PURCHASING AGENT,

Post Office Department:

In accordance with the above advertisement, inviting proposals for supplies, and subject to all the conditions thereof, the undersigned propose to furnish and deliver the articles below specified, at and within the doors of any post offices in the United States, at the prices set opposite each article, and within the time specified; and further agree to furnish subsequently any additional quantities of the supplies listed, as often as requested during the current fiscal year, at the same prices, unless otherwise stated herein.

Price for each item must be specified as well as total amount of bid.

Post Office Department, Washington, D. C.

SIR: We beg to advise you that we have made a reduction of 50 per cent on the allowances for Remington typewriters Nos. 8 and 9 in our current allowance list (dated Jan. 10, 1912).

Very respectfully,

67260-12-15

(Signed)

ROYAL TYPEWRITER Co.
C. A. CONRARD, Manager.

THE PURCHASING AGENT,

ROYAL TYPEWRITER CO., Washington, D. C., August 19, 1912.

Post Office Department, Washington, D. C.

SIR: We inclose your circular proposal (File No. S-21) dated the 12th instant, and submit our bid of $50 each for Royal Standard typewriters, correspondence size. This price includes rubber cover as well as delivery to any post office within the United States proper.

Should the contract be awarded to our company we guarantee to keep all machines purchased thereunder in good working order for a period of three years from date of purchase-platens, ribbons, and breakages through accident or carelessness excepted.

We will accept typewriters of other makes than the Royal, as part payment on the purchase of Royals, at the exchange price of our company in effect at the time of exchange.

Very respectfully,

THE PURCHASING AGENT,

C. A. CONRARD, Manager.

ROYAL TYPEWRITER Co., Washington, D. C., August 22, 1912.

Post Office Department, Washington, D. C.

SIR: We have the honor to inform you that the allowances for Royal Standard typewriters that may be purchased by the Post Office Department during the present fiscal year will be the same as those in effect last year, as stated in our letter proposal of July 18, 1911, namely:

Machines not listed on above schedule, no value.

The above applies to machines fitted with pica type and regular keyboards, complete parts, and in working order.

FURNITURE AND FILING CABINETS.

Mr. JOHNSON. The next item is for the purchase of furniture and filing cabinets. You had $5,000, and you are now asking for $13,000, which is a rather large increase.

Mr. THOMSON. In the fiscal year 1912, $10,000 was appropriated for this item, and there was an unexpended balance of $1.46. During the present fiscal year the appropriation is $5,000. The constant changing from book and ledger forms of filing to the card-index system, necessitating the use of filing cabinets of various sizes, de

mands a larger sum than $5,000 to successfully meet the actual growth of the service, together with the changes of system.

There has been an earnest effort made to dispense with old-fashioned cloth-covered and roller-top desks, larger than is needed for efficient work and for the saving of space, by installing smaller desks of a sanitary type. The department is overcrowded in all of its divisions, and conditions would be greatly improved if modern types of desks were installed in place of the old ones.

That is the reason pure and simple, Mr. Chairman. We want to secure some more space if it is at all possible.

Mr. JOHNSON. If we were to give you money to buy the new desks, which you think more desirable, what would become of the old ones? Would you throw them out as junk?

Mr. THOMSON. A good many of them would be sold at auction. Mr. JOHNSON. They would not bring very much, would they?

Mr. THOMSON. I think if we were to move some of them they would fall to pieces.

STORAGE OF FILES.

Mr. JOHNSON. Why is it necessary to pay more for rent of suitable buildings for storage of files for 1914?

Mr. THOMSON. That connects right up with the statement I have just made. We want more space in the department building, and we are anxious to move some of the files stored there, in order to get more space for the clerks.

Mr. JOHNSON. Have you made any investigation to see if you can find any building that is now owned by the Government that would answer your purposes?

Mr. THOMSON. I have not recently, but we have made inquiry within the past few years.

Mr. JOHNSON. Are you aware of the fact we have recently purchased this property just north of B Street, the idea being that some day we will tear down those houses and make that a part of the Capitol Grounds, but that will probably be a good many years in the future. We have two or three blocks of buildings over there. Of course, I am not an architect, and do not know anything about your needs.

Mr. THOMSON. Any good fireproof building would be all right for the storage of files.

Mr. JOHNSON. I do not know whether any of them are fireproof

or not.

Mr. THOMSON. If you are referring to any of these buildings here being used for filing purposes, I should say no, because they are nothing but dwelling houses, are they not?

Mr. JOHNSON. Dwelling houses, hotels, and apartment houses.

Mr. THOMSON. I doubt very much if it would be a safe proposition to put files in any of those buildings.

Mr. JOHNSON. We are building a new city post office here. Could you not secure space there?

Mr. THOMSON. All that space is going to be taken up. We are going to give up two buildings at the corner of First and K Streets NE., for which we pay $30,400 a year, when we go into the new city post office.