SECTION OF SURETY BONDS.

[See also p. 74.]

We are asking to transfer one clerk at $1,600 from the roll of the Secretary to the bonding section.

Mr. JOHNSON. Suppose we did not create the division you are asking for?

Mr. BAILEY. We do not ask for a division. We ask for a section. Mr. JOHNSON. Well, if we do not fix it in the bill like you have asked for it, then you would want to carry the law back here as it is? Mr. BAILEY. Yes, sir; because this $1,600 clerk does work in that section now by detail, and his services are needed.

Mr. JOHNSON. The reduction in the force is apparent rather than real, is it not?

Mr. BAILEY. It is a transfer of a $1,600 clerk from the roll of the Secretary's office to the proposed bonding section.

DIVISION OF BOOKKEEPING AND WARRANTS.

The next item is on page 67, the Division of Bookkeeping and Warrants. We are asking that the salary of Dr. Miller, chief of the division, be increased from $3,500 to $4,000, and that his assistant, Mr. Ward, be increased from $2,700 to $3,000.

Mr. JOHNSON. How long has it been since either one of these gentlemen has had an increase in salary?

Mr. BAILEY. It has been years.

Mr. COURTS. Not since 1894.

Mr. JOHNSON. But in course of time these other chiefs of divisions have come up.

Mr. COURTS. The Customs Division has become the highest paid division in the department now.

Mr. BAILEY. The facts are that Dr. Miller and Mr. Ward have to work incessantly. Both these increases are merited because of the important and exacting character of the duties of the places and the exceptional manner in which they are filled.

Mr. GILLETT. Why is it that they have to work overtime? Is the force inadequate?

Mr. BAILEY. It is because they can not detail their work to others. Mr. GILLETT. The entire force does not have to work overtime, does it?

Mr. BAILEY. No, sir.

In the next item we ask to create the position of executive clerk in the Division of Bookkeeping and Warrants at $2,500 and to drop one bookkeeper at $2,000. It is a new title, and the proposed change will add $500 to the expense of the division.

Mr. GILLETT. It is new to all the departments, is it not? There is no precedent for it, is there?

Mr. COURTS. There are one or two others.

Mr. GILLETT. Well, what is intended in this case?

Mr. BAILEY. The clerk in question is now really the executive clerk in the division. The position is an indispensable one, but would be more effective if given a title as proposed and a commensurate salary.

Mr. BAILEY. We are asking for one messenger boy in that same division at $480. These items make an increase of $1,780. The decrease in that office last year was $1,200.

DIVISION OF PUBLIC MONEYS.

Mr. BAILEY. Last year a $900 clerk was dropped from the Division of Public Moneys and we are asking to have the place restored.

Mr. JOHNSON. Do you think that you can not get along without him?

Mr. BAILEY. I believe the place should be restored.

DIVISION OF LOANS AND CURRENCY.

Mr. BAILEY. The Division of Loans and Currency. Last year quite a good deal of work was transferred to this division from the office of the Register of the Treasury, and we are asking an increase in the salary of the bond and interest clerk from $2,000 to $2,400; and to add one clerk at $1,600 in lieu of one at $1,000 dropped. Both of these changes are earnestly recommended in the interest of good administration.

Mr. JOHNSON. Is it the purpose to promote somebody already there? Mr. BAILEY. Yes, sir; in both instances. In this same item there was an increase last year in this division of $16,720, which was offset by a decrease in the register's office of $20,120. We shifted the work over and made a net saving of that difference.

DIVISION OF PRINTING AND STATIONERY.

[See p. 55.]

Mr. BAILEY. The next item is on page 71, the division of printing and stationery. There is no change. Is there any necessity of taking up those items in which there is no change?

Mr. COURTS. I have noted here the hearings for last year that relate to every one of these items, and where there are no changes the hearings for last year will apply.

DIVISION OF MAIL AND FILES.

Mr. JOHNSON. What is the next item?

Mr. BAILEY. On page 71, the Division of Mail and Files. We are asking you to restore the salary of the mail messenger to $1,200, which was cut last year in the estimates through inadvertence to $1,000; and also to drop a document clerk at $1,000. A reduction of $12,440 was made in this division last year, and this makes a net decrease of $800 this year. The restoration asked is for an efficient employee, who works over hours every day and also has duties to perform every Sunday.

OFFICE OF DISBURSING CLERK.

The Secretary has recommended an increase from $3,000 to $3,500 in the compensation of the disbursing clerk of the Treasury Department. This increase is based on the increased work and responsibility of this officer. A change in the method of making disbursements on public buildings has resulted in a saving to the Government of between $30,000 and $40,000 a year by abolishing special disbursing officers and putting this work entirely into the office of the disbursing clerk of the Treasury. This officer now disburses over

$25,000,000 annually and makes collections to the amount of nearly $200,000 annually. A comparison with the compensation of some of the other disbursing officers of the Government is hereby given, showing that the disbursing officer of the Treasury disburses over twice as much as any other disbursing officer and receives the lowest compensation:

Mr. BAILEY. On page 81, office of Auditor for the War Department. We made a decrease last year of $26,680 in this office, and are asking for some changes making a further net decrease of $1,600. We want to increase the salary of the auditor in this bill from $4,000 to $5,000. He gets $4.000 in this bill and $1,000 in the sundry civil bill.

The next change is in the same office. We want to change the chief of division to assistant and chief clerk and add two assistant chiefs of division at $1,900 each in lieu of a chief of division at $2,000 and one clerk at $1,800. In other words, we are abolishing one division and adding two assistant chiefs in the two remaining divisions.

We want to add a chief transportation clerk at $2,000 in lieu of the clerk at $1,800 dropped. The rate board is under the jurisdiction of the Auditor for the War Department. This board is represented by members from each auditing office that has to audit transportation accounts, and it has grown into a tremendously important function. The administrative officer can route his freight by applying to that board for information, and the board can give him the most economical way of routing the freight. It results in a saving of considerable money. Besides getting one judgment in the auditing of transportation, it saves money. You do not want to have several rates in effect. This office is developing in importance. We drop one clerk at $1,000 and two at $900, making, as I say, a net increase in the office of $1,600.

OFFICE OF AUDITOR FOR NAVY DEPARTMENT.

On page 82, the office of Auditor for the Navy Department. We recommend some increases in salaries and the dropping of five clerks at $1,000 and three clerks at $900, with a net increase of $4,700. The Secretary has approved the recommendation on the auditor's demonstration that the average rate of pay in his office is lower than it is in the other auditing offices. This is true with the exception of the office of the Auditor for the Post Office Department, where a comparison is hardly fair, because a large number of his employees are graded as skilled laborers. For instance, nearly 400 of his 600 employees are skilled laborers in the grades of $660, $720, $780, $840, etc. The average rate of pay in the office of the Auditor for the Treasury is $1,364; in the office of the Auditor for

the War Department, $1,372; in the office of the Auditor for the Interior Department, $1,377; in the office of the Auditor for the State and Other Departments, $1,429; while in the office of the Auditor for the Navy Department the average rate of pay is $1,313, making it the lowest. This increase is recommended in order to bring up the standard in this office.

Mr. JOHNSON. The promotions will be made from the force now employed, if made at all?

Mr. BAILEY. Yes, sir.

OFFICE OF AUDITOR FOR INTERIOR DEPARTMENT.

Mr. BAILEY. On page 83, office of Auditor for the Interior Department. Here we recommend the dropping of one chief of division at $2,000. That place is now vacant, as we are consolidating two divisions. Two clerks, at $1,400; six clerks, at $1.200; and six clerks, at $1,000 are dropped, making a net decrease of $18,000. This saving is made possible by a change in the method of the payment of pension checks and their auditing, to take effect soon.

OFFICE OF THE TREASURER.

On page 86, office of the Treasurer of the United States. We are asking to increase the salary of the Deputy Assistant Treasurer from $3,200 to $3,500. The Deputy Assistant Treasurer was before you this morning-Mr. Fort. He is a very valuable employee in that office, and it is the genral concensus of opinion that his salary should be increased.

Mr. JOHNSON. How does it happen that the number of employees here at $900, 24 in number, can be reduced to 19? You will find it. near the bottom of the page? What were they engaged in doing that you can dispense with their services?

Mr. BAILEY. We have been working on methods of economy in the Treasury Department throughout this administration through committees, and we have frequently found that the methods can be shortened and employees dispensed with. When we get to the end of the year, we figure up the places that can be abolished and reduce the estimates accordingly.

Mr. JOHNSON. And you take care of these reductions by not filling the vacancies?

Mr. BAILEY. Yes, sir.

Mr. JOHNSON. That is what I have been advocating in every department of the Government. If they really want to reduce their forces, they can do it by leaving places vacant when they become

vacant.

Mr. BAILEY. We have made a reduction in the Treasury Department in Washington of something over 500 places during the present administration and have not discharged the people. This has been done by not filling vacancies. The decrease in the treasurer's office last year amounted to $14,050, and we are making a net increase this year of $800.

LAUNDRY MACHINES.

In the present fiscal year an appropriation of $60,000 was made with which to purchase laundry machines, install and operate them. We have under contract 12 machines, which will supply the Sub

treasuries, with the exception of the one at San Francisco. We are estimating this year for a force of four people to each machine, at $900 each, and $100 each for operating expenses and repairs, making a total of $49,300. The saving to be effected by reason of the operation of the machines will appear in the estimates for the Bureau of Engraving and Printing. It will be approximately $400,000.

Mr. JOHNSON. Have you any means of calculating what the saving will be in the matter of purchasing new paper?

Mr. BAILEY. The estimates this year-in Mr. Ralph's estimatesindicate a saving on account of the machines of about $400,000 for the next fiscal year.

Mr. GILLETT. How many machines will there be?

Mr. BAILEY. Fifteen-1 in the Treasury and 1 for each subtreasury, except San Francisco, where no machine is needed, and at New York, where there will be 4, and at Chicago, where 2 are required. Mr. JOHNSON. What are these machines going to cost us the next fiscal year?

Mr. BAILEY. $49,300, which is for the operation of the machines. There will be no expense next year for new machines.

Mr. JOHNSON. If you have $49,000 for operation, that will leave you about $11,000 to buy 12 machines.

Mr. BAILEY. The 12 machines will be bought this year.

Mr. FORT. It would astonish you to see what the money looks like when it comes through.

Mr. BAILEY. Yesterday we took 1,000 notes from Chicago, which the redemption division said was unfit even to assort for laundrying. We laundered the 1,000 notes and got nearly 500 fit to go back into circulation. We laundered a package of notes from the Shawmut Bank, of Boston, and 75 per cent of them were fit to go back into circulation. The percentage of notes made fit for circulation by this process will be greater than our anticipation. Mr. GILLETT. Is any of it mutilated?

Mr. BAILEY. The mutilated money is thrown out.

Mr. GILLETT. Does that laundrying process increase the mutilation of the notes?

Mr. BAILEY. No, sir.

REGISTER OF THE TREASURY.

Mr. JOHNSON. What is the next item.

Mr. BAILEY. The next item appears near the top of page 89, office of the Register of the Treasury. There we drop one $1,600 clerk. We decreased that office $20,120 last year.

POSTAL SAVINGS SYSTEM.

Mr. COURTS. The item relating to the postal savings system appears on page 88.

Mr. BAILEY. That is the identical force employed under the lumpsum appropriation, estimated for in detail, in accordance with current law.

Mr. JOHNSON. At the same salaries?

Mr. BAILEY. Yes, sir.