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set out the increased force necessary to the bureau to properly conduct this work. It will, of course, be understood that the lower grade places and one or two of the higher grade places will continue to be filled in this and succeeding years in the same way as they were in the past year; that is, persons from other portions of the bureau will be assigned to fill out the division in the manner in which the work requires. As I endeavored to explain, this $30,000 is not sufficient to cover the entire amount of work entailed by the corporationtax law, but it covers the necessary increase of the force, the reorganization in the bureau having already enabled the bureau to provide for a portion of the force.

FIELD WORK.

I attach to this memorandum a statement showing the employees in the field paid from this appropriation. In every case where an expense allowance is indicated that means a field officer. You will note that the field officers are divided into three classes-general deputies, receiving $1.400, $1,600, or $1,800 rer annum according to their qualifications and the amount of work each does; inspectors, of which there are at present 3, receiving $5 per day; and agents, of which there are 12, receiving $6 per day. Probably all of the field deputies receiving $1.800 will be commissioned either as inspectors or agent in order that their field of usefulness may be increased.

The compensation of the office deputies follows the regular rules of the bureau-that is, based upon length of time in the service, qualifications, and duties. The increased appropriation asked for under “ Corporation tax" will be used to increase the number of inspectors and agents, the work in the offices of the various collectors having already been fairly well provided for. At present not half of the field work is being done that should be done on account of the lack of a sufficient number of agents. As indicated in the hearing, if the increased appropriation is given, so that the number of agents can practically be doubled, the bureau is confident a very large sum-probably a million dollars or more-that is now actually owing the Government under this law can easily be discovered and collected, the greater portion of it being paid without any protest on the part of the taxpayer as soon as investigation discloses that it is due.

The field force could not well be provided for by statutory provision, the corporation-tax field force standing in exactly the same position in this regard as does the regular internal revenue field force. It would appear that lumpsum appropriations would be necessary for both of these forces.

Very respectfully,

R. E. CABELL, Commissioner.

NAVY DEPARTMENT.

MONDAY, NOVEMBER 25, 1912.

STATEMENT OF REAR ADMIRAL H. I. CONE, CHIEF, BUREAU OF STEAM ENGINEERING, UNITED STATES NAVY.

BUREAU OF STEAM ENGINEERING.

PROMOTION OF CLERKS AND LABORERS.

Admiral CONE. I have asked, as you will note, for provision for the promotion of a number of clerks in my office. The total increase under the Bureau of Steam Engineering would be $1,980, and you will note there is a rearrangement. The rearrangement is rather confusing to me here, but it means, when tabulated, I want to promote one clerk from $1,400 to $1,600; I want to promote another clerk from $1,200 to $1,400; another one from $1,300 to $1,400; another one from $1,100 to $1,200; three from $1,000 to $1,200; one from $840 to $900; one from $900 to $1,000. You will note I also ask to change two to four laborers, leaving out two laborers at $600 and

a messenger at $600. I do not know why, sir, but I have in my bureau. some laborers paid $600 a year, and if I am not mistaken the statutory pay for a laborer is $660 a year, and these men are doing identically the same work as a number of other men, and I have simply asked to have them put on the same status as other laborers.

Mr. JOHNSON. The arrangement you have suggested here would promote practically everybody in the bureau, would it not?

Admiral CONE. No, sir. The most important promotion and the largest one is a recommendation to promote my chief clerk from $2,000 to $2,500. If you will remember, I think I have asked that every year since I have been there. Then this provision promotes 9 clerks out of a force altogether of clerks and draftsmen of 61. My main reason for asking for that, Mr. Chairman, is this: In the Navy Department we are handicapped by the transfer of clerks who become of any value to us, because we pay on an average a lower pay to clerks than some other departments of the Government. I think you will find on investigation that most of the other departments of the Government pay more, and as soon as a clerk that gets up to $1,200 a year becomes efficient he goes somewhere else. Mr. JOHNSON. How do you account for that?

Admiral CONE. I can not account for it, sir. I do not know. Mr. JOHNSON. Admiral, how long has this gentleman been occupying the position of chief clerk?

Admiral CONE. Since 1898.

Mr. JOHNSON. Has there been any increase in his salary since 1898? Admiral CONE. He was originally appointed a clerk in the equipment department of the Brooklyn Navy Yard in 1896 at $3.28 a day. He was promoted May 1, 1897, to $1,400 per annum; promoted and transferred to Washington as chief clerk of the Bureau of Equipment of the Navy Department, in 1898, at $1,800 per annum; that was the pay of the chief clerks in the different bureaus of the Navy Department, and in 1899 the salary of the position of chief clerk in the bureaus was increased to $2,000, and in 1910 he was transferred to the Bureau of Steam Engineering, but with no increase in salary. This particular individual is a capable man. He has 62 civilian employees under him; and there is a thing I would like to offer for your suggestions, because this man has helped a good deal in accomplishing it; when I came to Washington three years ago the current appropriations for running this bureau were $400,000 more than they are today. The Navy has increased, as you know, a great deal. Bureau of Steam Engineering is the one that is more actively engaged in the operations of the fleet than any other bureau in the Navy Department, especially from a financial standpoint, as we supply a large part of the supplies. As you can well imagine, the supplies to the battleships are largely machinery supplies.

The

Mr. JOHNSON. I notice you have had the same appropriation for five successive years for your clerical help. There has been neither

an increase nor a decrease.

Admiral CONE. There has been neither an increase nor a decrease, and I do not ask for an increase in numbers. I do not think it is necessary. I do not think it would help whether you raised the pay of them or not, whether you increased the numbers. That depends on the spirit there. I think you can really save money, however, by encouraging these men.

Mr. JOHNSON. How many clerks are in your bureau, Admiral? Admiral CONE. There are 61 clerks and draftsmen.

Mr. JOHNSON. The draftsmen are not paid out of this particular appropriation. We provide for the draftsmen on page 187.

Admiral CONE. Yes, sir.

Mr. JOHNSON. We appropriated $33,700 for the current year, and you are asking for $37,000, and that comes out of an appropriation which is made in the naval appropriation bill.

Admiral CONE. That comes out of the current appropriation for the bureau; yes, sir; and this is simply a limitation as to what can be expended.

ENGINE AND BOILER DESIGNER.

Mr. JOHNSON. You ask for about $4,000 more; is it proposed to employ additional men, or to raise the salary of men already employed.

Admiral CONE. The purpose is to employ one additional man at $10 a day.

Mr. JOHNSON. I suppose he is an expert whom you want to employ ? Admiral CONE. He will be an expert engine and boiler designer, what we call a leading draftsman, a man that can take charge of a great many computations now done by one officer in the bureau. We are growing and the work is getting more complicated all the time, and I think it is necessary to have two such men. It is purely for his technical services I want him. He will not contribute in any way to the financial conditions of the Bureau of Steam Engineering, but I think he will enable us to keep up a better design of machinery, and if this is approved the purpose is simply to take on one additional man at the highest pay of $10 a day. Then, as you will notice, there is a little left over, and that is provided for in case we work draftsmen overtime on Sunday. Sometimes we are conducting the trial trip of a battleship which may last over Sunday, once in a great while, and it may become necessary to work a man on Sunday. I do not think that has been true during the last year, but still it may become necessary.

Mr. JOHNSON. Is there any other item of the bill you are interested in?

BUREAU OF EQUIPMENT.

Admiral CONE. Yes, sir. I am interested in an item for the Bureau of Equipment. I presume you are familiar with the history of this Bureau of Equipment, which was suspended by the appropriation bill two years ago and divided up amongst the other bureaus. In that division I got a considerable part of the activities of the Bureau of Equipment into the Bureau of Steam Engineering, and a number of their clerks and technical employees. Now, in case the Bureau of Equipment is not abolished these technical employees and clerks will go back to the Bureau of Equipment. Of course, the technical employees will not add any more to the Bureau of Steam Engineering. They are doing now in the Bureau of Steam Engineering exactly what they did in the Bureau of Equipment, but the clerks are occupying positions in the organizations of the Bureau of Steam Engineering.

Mr. JOHNSON. In other words, the bureau is suspended but not abolished?

Admiral CONE. Yes, sir. If it is reestablished it will necessitate the employment of additional clerks in the Bureau of Steam Engineering, because, as I say, the activities of the Navy have grown so until these positions which would have been vacancies have been filled from these surplus clerks from the Bureau of Equipment, and there is very little additional work in running the activities of the Bureau of Steam Engineering and that part of the Bureau of Equipment which came to the Bureau of Steam Engineering over what would be necessary if we were simply running the Bureau of Steam Engineering. That is suggested simply provided this bureau is reestablished, in which event these clerks are wanted.

Mr. JOHNSON. I presume you have about the same argument to offer with regard to the chief clerk provided for there as you offered with reference to the other chief clerk?

Admiral CONE. Yes, sir; the same argument.

Mr. JOHNSON. In other words, all the chief clerks in the Navy Department get $2,000?

Admiral CONE. Yes, sir; I think there is one exception, but I am

not sure.

Mr. JOHNSON. And they are asking that they be uniformly raised to $2,500?

Admiral CONE. Yes, sir.

Mr. JOHNSON. And, ordinarily speaking, we ought to raise all or none; is not that about true?

Admiral CONE. Yes, sir; I think that applies as far as my knowledge goes. They are responsible positions.

MESSENGER BOY AND LABORER.

I think you will note there that I have left out a messenger boy and asked for a laborer. I have left out a messenger boy at $600 and I want a laborer put in his place. For the particular duties we have in the Bureau of Steam Engineering a messenger boy is rather misnomer.

a

Mr. JOHNSON. You do not have any messenger boys?

Admiral CONE. Yes; sir; I have one, but I use him as a laborer. Additional list showing the name, rank, pay, and position or duties to which assigned of officers on duty in the Nary Department proper at Washington.

[See p. 147.]

[ Officers given in this statement not included in statement submitted under date of November 26, 1912.]

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Additional list showing the name, rank, pay, and position or duties to which assigned of officers on duty in the Navy Department proper at Washington--Continued.

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13,500

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Duties.

8,000

5,000

Work in connection with proposed personnel legislation.

Recorder of departmental subboard on economy and efficiency.

Professor of mathematics, United

States Navy, member of special board on naval ordnance.

Member of special board on naval ordnance.

President of the General Board; also senior member of the Army and Navy joint board.

Member of the General Board and executive committee; also a member of the Army and Navy joint board.

Member of the General Board, first committee, and executive committee.

Member of the General Board, third committee, and executive committee.

5,000 Member of the General Board, second committee, and executive committee.

Work in connection with the General Board and member of second committee.

Secretary of the General Board. Work in connection with the General Board and member of second committee.

Work in connection with the General Board and member of the first committee.

Work in connection with the General Board and aid to Admiral of the Navy.

Work in connection with the General Board and member of the third committee.

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5,000

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4,500

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4,500
4,500

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4,000

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3,900

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3,900

BUREAU OF ORDNANCE, WAR DEPARTMENT.

[See also p. 85.]

PAY OF EMPLOYEES FROM LUMP APPROPRIATIONS.

NOVEMBER 22, 1912.

Hon. JOSEPH T. JOHNSON,

Chairman Subcommittee having in charge

the Legislative, Executive, and Judicial Bill,
Committee on Appropriations,

House of Representatives, Washington, D. C.

MY DEAR MR. CHAIRMAN: Referring to my hearing before the subcommittee of the Committee on Appropriations of the House having in charge the legislative, executive, and judicial bill, this morning, and to your request to submit a proposed amendment to section 3 of the legislative, executive, and judicial appropriation act approved August 23, 1912, in connection with that hearing, I have the honor to submit the following:

Section 3 of the act referred to, and more particularly section 7 of the act approved August 26, 1912, making appropriations to supply deficiencies for the fiscal year 1912, forbid the payment of a rate of compensation for personal services above that paid for the same or similar services during the fiscal year 1912. It is suggested, therefore, that the following provision be made in some act which will cover the point in question :

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