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collected about $8,000,000 in duties withheld, but we have other plans for the future to meet such a situation, which do not contemplate any immediate increase in the force here in Washington. Mr. GILLETT. Is that an unusually large amount? Mr. HALSTEAD. Oh, yes; that is about ten times what ordinarily would be collected in the same period. I would say that there is ordinarily $250,000 or $300,000 a year that we collect after the time. o o that amount included the sugar frauds and the weighing I’all CIS. Mr. GILLETT. The sugar frauds amounted to about $3,000,000? Mr. HALSTEAD. Yes, more than that; and it also included the Duveen undervaluations. On an average, there passes over my desk now, and has for the last year or two, from $10,000 to $25,000 every day that we are collecting in that same sort of way. However, these are things that I do not believe are to be corrected by close supervision from Washington. The immediate purpose here is to save our appropriation carried in the sundry civil bill for the expenses of collecting revenue from customs by standardizing methods, by sending out men to find out what useless work is being done, and wherein they are using wrong methods, to report to us, and then we will determine what should be done, and can send a man out to show them how to do it better; and I thoroughly believe that for every dollar spent in this way five dollars will be made every year for five years, and then after that the expenditures of our field service can be kept from increasing in this way, and it will not cost any more— Mr. GILLETT. Is that what these two people are wanted for? Mr. HALSTEAD. Yes, sir; it is to standardize our methods and bring them up to date. I can illustrate what things can be done by my own office. On the filing system, we went into the thing, and the result is we can get papers from our files now in about one-third the time we could four or five years ago, with one clerk less, by just putting in a good system. That was in our own division here. Of course, our work has increased, and we have tried to use the most scientific methods of doing routine clerical work. Mr. GILLETT. I suppose that was the suggestion of the Economy Commission ? Mr. HALSTEAD. Our work was done by ourselves, because this commission has not yet taken action on filing matters of this kind. At our ports of entry they have never had any close supervision. They have the most diverse ways of doing the same thing, of filing their papers, for instance; and at some ports they file their papers so unscientifically that they have to keep a complete record of everything they do, because they can never find their papers. Now, the thing to do is to file their papers and index them, so they can find them, and it will not be necessary to keep these records; but it takes men to show them how to do it. There are many similar improvements that should be made. It will not cost any more really, because it has been our practice to have the special agents make investigations of this kind and report it on paper, but there were always so many material facts left out in their reports, and if we gave the instructions we had nobody to send out to see that they were followed. The results have not, therefore, been good. We have tried to do some work of this kind with our present force, and we find we can not do it. While we are doing this work our other work, which is important, is neglected, and causes the general public to complain of delay in transacting business with them, and, as I said, the customs officers would carry out our instructions or not, just as they liked. They would say, “We do not understand the matter,” and that would end it. We are spending too much from our appropriation, and I thoroughly believe that this will much more than pay. Year before last we spent $10,867,000, and in the last fiscal year we cut it down to $10,807,000 without reducing salaries, but just from improving methods a little bit. They can be improved a great deal more if we only can have the force to do it. You see, there are only 32 people in the Customs Division of the Treasury Department altogether, and when you consider that we have 164 ports of entry and 8,000 customs officers altogether, and they are all writing to us asking us how to do this and that, and how do you construe this statute or that statute, and the general public is writing to us wanting similar information, you will see our force at present has not much time to make improvements or look for new work however important. For instance, a man desires to import something, and he wants to know the rate of duty; and all those things keep us working overtime, as my office force frequently does, and as I do habitually, to answer those propositions. And now we want to go out and initiate things ourselves and improve the efficiency by cutting out useless and wasteful processes which started perhaps 30 or 40 years ago and which nobody has ever corrected. Sometimes it seems to me these systems were devised with the object of seeing how many jobs they could create in the old days when the spoils system obtained. Mr. GILLETT. Why has not this been done before? Mr. HALSTEAD. I do not know. Mr. GILLETT. How long have you been in office? Mr. HALSTEAD. I have been there a year and a half. I started hammering at it right away, and also Assistant Secretary Curtis started the minute he came in. Mr. GILLETT. He has been there three years? Mr. HALSTEAD. Yes; and Mr. Curtis has been really the mover in these matters.
DIVISION OF PRINTING AND STATIONERY.
Mr. JoHNsoN. Mr. Weston, are there any changes in what you are asking this year over what you had for the current year? Mr. WESTON. Yes, sir. Mr. GILLETT. What is your position, Mr. Weston? Mr. WESTON. I am chief of the Division of Printing and Stationery of the Treasury Department. The estimates for the fiscal year 1914 are $15,150 less than the appropriation for this year. Mr. GILLETT. How are those-reductions made? Mr. WESTON. They are based on the experience of the fiscal year 1912 and the elapsed portion of the fiscal year 1913. Previous to the fiscal year 1912 we had appropriated only a certain sum for the Treasury Department proper, forty and forty-five thousand dollars usually, and purchases were made from that appropriation for the benefit of the outside service, which was reimbursed to the Treasury appropriation; and beginning with the fiscal year 1912 certain deductions were made from the different service appropriations and added to the appropriation for the department proper, making in that year a total of $136,150, which was continued during the present year. On experience gained in those years in administering the appropriation in this way a deduction has been made of $15,150, making the estimate for this year $121,000 for the entire service, including the department.
Mr. BAILEY. Might I interject right there the fact that we have already reduced these amounts in the contingent estimates of the various divisions. Last year Mr. Cabell got a double reduction. The committee took it out and then it was deducted after he got back down there again, so his $18,000 was taken out of him twice— out of the contingent expenses.
OFFICE OF THE COMMISSIONER OF INTERNAL REVENUE.
Mr. Jon Nso N. Mr. Cabell, on page 91 you are asking $349,900, which is $13,800 more than you have for the current year. All the increases asked for are on page 91, and you can make any statement you desire in regard to that matter.
SFCON to DEPUTY COMMISSIONER.
Mr. CABELL. That estimate is the same as the estimate that was submitted last year. The first increase asked for is that the Second Deputy Commissioner should be given an increase in compensation of $400, to make his compensation equal to that received by the First Deputy Commissioner. The work in the Bureau of Internal Revenue now is divided in such a way that the duties and responsibilities of those two offices are identical. An effort has been made, and I believe it has been successful, to make the division of their work exactly equal. They are quite responsible positions, fully worth $4,000 a year, calculated by any standard you might select.
Mr. Jon Nso N. We did not allow you any increases at all before, did we ?
Mr. CABELL. You allowed an increase of one $1,600 clerk and one $1,800 clerk last year; otherwise this estimate is exactly the same as was asked for last year.
CHIEFS OF DIVISION.
With respect to the changes of the chiefs of division, it is requested that the salaries of all nine of the chiefs of division should be $2,500 instead of three at $2,500 and six at $2,250.
Mr. Johnson. Is there any difference in the duties and responsibilities of those chiefs? Why is it that three are paid $2,500 and six ...!?" $2,250? Was there any reason why any difference was Ina Cie Mr. CABELL. I suppose that at the outset some of the positions were small, the amount of revenue received in them was comparatively small. But that does not hold, because, throughout, the chiefs of some of the largest divisions are getting the $2,250, and have been for a long, long time. There is really no god reason for any difference. For instance, a new division was created called the miscellaneous division. At first it was a section, and then when the work got so big that the section chief could not handle it, it was made a division of itself. I suppose if we could go back far enough we would find a number of divisions had been created that way, and the section chief had been made chief of a division, and the fact that the chief was a new man, rather than the amount of work, determined that he should receive a smaller compensation. The compensations of these division chiefs is less than the compensations of division chiefs in other branches of the Government, and is really less than they are worth commercially. For instance, the chief of a big division like the spirits division, who passes on the technical matters relating to the collection of over $150,000,000 a year, gets $2,250. The chief of the law division, who passes on thousands of legal cases, the technical parts of them, works them up and briefs them, gets $2.250 a year. A railroad would feel ashamed of giving an attorney in charge of such work less than a considerable amount more than that. And in the miscellaneous division, carrying all the technical matters of oleomargarine and matters connected with the adulteration of butter, the chief of that division gets $2.250. The chiefs have equal authority in their respective divisions, and their work and responsibility is as near balanced as possible, and they should all get $2,500. There is one other chief not included in this appropriation who gets $2,500, and that is the Chief of the Corporation Tax Division, for which you make a lumpsum appropriation, and which has settled down now practically fixed enough to make statutory those positions, if the Congress desires. The compensation of the chief of this division is $2,500 per annum. Mr. Joh Nso N. Up to this time they have been paid out of a lumpsum appropriation ? Mr. CABELL. Yes; because there was no way of telling what work there was for the first year or two. Mr. Joh Nso N. Will you send me the pay roll of that division. Mr. Cabell, and possibly we will put it in this bill? Mr. CABELL. Yes, sir.
Mr. Joi Nso N. Mr. Cabell, you ask for an increase of 10 clerks and a decrease of 7, which is an increase of 3. In other words, you ask for the promotion of seven people and for three more high-priced clerks.
Mr. CABELL. Yes, sir.
Mr. Joh Nso N. Is it the intention of the bureau to promote people who are already in that bureau ?
Mr. CABELL. Absolutely. The invariable policy of the bureau has been, except where legislative action has made the contrary necessary, to reward merit. We are willing to let our records go before any people in the country to pass on that. We never jump a grade. If you give us an increase in the upper grade that leads to seven or eight promotions, according to where you give it.
Mr. JohNsoN. I have very decided convictions along that line. I think that outside of a position that is purely technical, where you have to get some man from the outside, there are no divisions in this Government where there is not some man already on the roll who is worthy of promotion and ought to be promoted if there is a vacancy ahead of him which also would enable you, as you say, to promote six or seven others, whereas if you go outside to get a $2,000 man, you do not help anybody in your office. Mr. CABELL. You are undoubtedly correct. I have stated without any fear of contradiction that where you bring a person in from the outside into ordinary line employment for which any person who is fit to be head of a division ought to have educated somebody to fill, you do not gain anything; that the unrest and feeling of injustice that is occasioned, not only to the five or six men who would have obtained the promotiin, but to the whole office, so lowers the personnel and morale of that force that your increased man does not give you any increased results. Mr. JoHNSON. I am glad you take that view of it, because that coincides exactly with mine, that promotions, except in rare cases, should be made from the force in the division. Mr. CABELL. With reference to these $2,000 places, we have nine separate and distinct sections where the divisions are so large it is necessary to divide the divisions in sections or where they naturally fall into two sharp classes of work, which ought of necessity to be under a skilled man, fully informed in that work, who possesses administrative ability. Now, we do not think in those cases we should ask for new divisions, but we think those should be organized as sections, and the man who is in charge of that work and who by reason of his ability and efficiency and administrative capacity is able to show great increase in the work should be recognized by paying him increased compensation, and we think $2,000 is the minimum that people of that class are entitled to.
COLLECTION OF INTERNAL REVENUE.
Mr. Johnson. There is no change in reference to the collection of internal revenue, except you are asking for $50,000 more than you have for the current year. Mr. CABELL. Yes, sir; there is no other change. Mr. Johnson. What is your judgment as to how you will be able to get through the current year with what we gave you? Mr. CABELL. We will get through. We would get through if you did not give us anything. A certain amount of tax would be collected even if there were no officers; but I would say there is lying out now loose, just ready for somebody to go get it, several millions of dollars of internal-revenue tax. Mr. Johnso N. And you think if we give you $50,000 more you will be able to collect a great deal more revenue? Mr. CABELL. Within reasonable limits, for every dollar additional that you give the office we can turn in from $10 to $20 of revenue. That has been true for a good many years. We are not able to police the country as we should. We have only 15 months in which to collect by assessment special taxes and various other taxes, and if we do not collect this month we lose one-twelfth of the tax. It is just a ques