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Appropriation Bill, 1947

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HEARINGS

BEFORE THE

SUBCOMMITTEE OF THE
U.S. Congress, Senate
COMMITTEE ON APPROPRIATIONS,

UNITED STATES SENATE

SEVENTY-NINTH CONGRESS

SECOND SESSION

ON

H. R. 5452

A BILL MAKING APPROPRIATIONS FOR THE TREASURY
AND POST OFFICE DEPARTMENTS FOR THE
FISCAL YEAR ENDING JUNE 30, 1947

AND FOR OTHER PURPOSES

Printed for the use of the Committee on Appropriations

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UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1946

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SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS

CARTER GLASS, Virginia, Chairman KENNETH MCKELLAR, Tennessee

WALLACE H. WHITE, JR., Maine MILLARD E. TYDINGS, Maryland

CHAN GURNEY, South Dakota PAT MCCARRAN, Nevada

CLYDE M. REED, Kansas
CARL HAYDEN, Arizona

RAYMOND E. WILLIS, Indiana
THEODORE F. GREEN, Rhode Island
BURNET.R. MAYBANK, South Carolina

Ex OFFICIO MEMBERS FROM COMMITTEE ON POST OFFICES AND Post ROADS

JOSIAH W. BAILEY, North Carolina

WILLIAM LANGER, North Dakota
DENNIS CHAVEZ, New Mexico

EVERARD H. SMITH, Clerk
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UNITED STATES SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D. C. The subcommittee met at 10:30 a. m., Hon. Kenneth McKellar (acting chairman of the subcommittee) presiding,

Present: Senators McKellar (presiding), McCarran, Green, Maybank, and Reed.

POST OFFICE DEPARTMENT

STATEMENTS OF J. T. GARTLAND, DIRECTOR OF BUDGET AND

ADMINISTRATIVE PLANNING; J. M. DONALDSON, FIRST ASSIST-
ANT POSTMASTER GENERAL; J. J. LAWLER, THIRD ASSISTANT
POSTMASTER GENERAL; ROY M. MARTIN, DEPUTY SECOND AS-
SISTANT POSTMASTER GENERAL; JAMES A. FAITHFUL, SPECIAL
ADMINISTRATIVE AIDE TO SECOND ASSISTANT POSTMASTER
GENERAL; J. A. BRENNAN, SPECIAL ADMINISTRATIVE AIDE TO
THIRD ASSISTANT POSTMASTER GENERAL; VINCENT M. MILES,
SOLICITOR; AND DANIEL J. KELLEY AND WILLIAM C. O'BRIEN
ATTORNEYS

Senator MCKELLAR. We will proceed, gentlemen. We will hear first from Mr. J. F. Gartland, the Director of Budget and Administrative Planning.

Mr. GARTLAND. The Postmaster General is unavoidably absent, but he wishes you to know that the restorations that he is asking for he feels are absolutely necessary, as do all of his staff. The cut made by the House Appropriations Committee was $19,177,750, and of that the Postmaster General is asking for the restoration of but $2,485,900. The Postmaster General is particularly interested in having the Department in Washington well-staffed.

LETTER FROM POSTMASTER GENERAL ON REQUESTED AMENDMENTS
I wish to present for the record the letter from the Postmaster
General, if that is permissible.

Senator McKELLAR. Do you want to read it or do you want it to
go into the record ?
Mr. GARTLAND. Just as you say.

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Senator McCARRAN. That probably covers the whole thing, does it not?

Mr. GARTLAND. It does, and I believe every member of the committee has a copy of it.

Senator McCARRAN. I suppose that you will discuss the various items in it as you go along?

Mr. GARTLAND. The heads of the several departments will do that. (The letter referred to is as follows:)

FEBRUARY 25, 1946. Hon. KENNETH MCKELLAR Acting Chairman, Subcommittee in Charge of Treasury and

Post Office Department Appropriation Bill, United States Senate DEAR SENATOR MCKELLAR:

This is in reply to your letter of February 12, 1946, requesting that I indicate by page and line any changes deemed absolutely necessary in the Post Office Department appropriation bill, fiscal year 1947, as reported to the House.

The estimates submitted to the Bureau of the Budget were prepared in August 1945, about the time hostilities ceased. It was difficult at that time to determine business trends.

The estimates of appropriations then totaled $1,336,554,040, of which $1,298,239,190 was approved by the Bureau of the Budget. The House Appropriations Committee has approved $1,279,061,440, a reduction of $57,492,600 from the original estimate. Of this amount a cut of $38,314,850 was made by the Bureau of the Budget and an additional $19,177,750 by the House Committee on Appropriations.

I am requesting restoration of $2,485,900 in the various appropriations, as follows:

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32 32 32 32 32 32 32 32 32 35

$335, 000
964, 600

774, 000
1, 183,000

659, 800
170,000
393, 000

544, 000
4,000,000

6 Salaries, Office of the Postmaster General..
14 Salaries, Office of the First Assistant..
16 Salaries, Office of the Second Assistant.
18 Salaries, Office of the Third Assistant.
20 Salaries, Office of the Fourth Assistant.
22 Salaries, Office of the Solicitor.
23 Salaries, Office of the Chief Inspector.
25 Salaries, Bureau of Accounts..
1, 2 Post office inspectors, salaries
17 Post office inspectors, travel and miscel-

laneous expenses.
22 Post office inspectors, clerks

2 Compensation to Assistant Postmasters.
13 Post office stationery, equipment, and

supplies --
15 Rent, light, power, fuel, and water
13 Operating force for public buildings
18 Operating supplies for public buildings.

Total...

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35 37 42

1,014, 000 1, 113, 500 12,011, 000

54, 000 40,000 571.000

43 45 45

6, 384, 000 12, 825, 000 37, 620,000 6, 797,500

384, 000 300,000 620,000 147, 500

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The general upward trend of business at the time the estimates were prepared for the Bureau of the Budget, August 1945, indicated revenues of $1,437,777,000 for 1947. These were reduced at that time to $1,300,000,000 by the Bureau of the Budget. In the light of present-day conditions and with present postage rates, I believe now that they will be $1,275,000,000 for 1947.

This reduction is brought about by the fact that first-class ordinary, and air mail to and from our armed forces overseas has greatly declined since the cessation of hostilities. The amount of this class of mail is being replaced by rapidly increasing amounts of second- and third-class mail matter, which is carried at lower rates; consequently, it is believed that the reduction in revenues will have little effect upon the volume of mail handled.

I also believe that as soon as industry begins to produce goods for which there is such a great demand we will see an expansion in the postal service. In other words, I believe that the present drop in postal revenues is but temporary. The same situation has existed for a short season after every war.

It is my policy to eliminate every unnecessary expenditure. However, as you well know, mail service was greatly curtailed for reasons beyond our control during the war. The public is demanding reestablishment of that service and it must be reestablished and improved. We operated with a shortage of equipment and supplies during the war. The economic operation of the service demands the replenishing of supplies and the replacement of worn and obsolete equipment. The personnel requirements in departmental service are of great concern to

The postal business has expanded for many years, and the number of departmental employees has not kept pace with that growth. Further, it was not possible to recruit the necessary personnel or to obtain experienced personnel during the war. Our financial transactions now approximate $17,000,000,000 a year. The expenditures for salaries is about 75 percent of the total expenditures.

me.

One of the primary functions of the departmental personnel is to examine and pass upon requests for allowances received from field officials, and it is of utmost importance to me that they be scrutinized carefully by trained and competent employees when there is an indication that business is on the decline. I believe that the best control I can have on field expenditures is an adequate and competent group of departmental employees.

As proof of the fact that our departmental personnel has not increased commensurate with the increase in postal business, permit me to call your attention to the fact that while postal revenues increased 71.4 percent from 1940 to 1945, postal expenditures increased 42.4 percent, financial transactions increased 93.5 percent, the number of first-class offices increased 83.7 percent, second-class, 59.1 percent, and third-class offices, 40.9 percent. The number of city delivery offices increased 18.6 percent, the volume of mail, 34.5 percent, special services, 33.2 percent. The number of persons employed in the Department increased but 6.7 percent.

In addition to these increases in business, the records of the Retirement Division show that there was an increase of 138.4 percent in separations of employees in 1945 over 1940. The increase in field personnel in 1945 over 1940 is at least 27 percent. Much work not reflected in the foregoing volume figures is caused by new.legislation and regulations resulting therefrom issued by other Government agencies.

The arrearages in the Department have mounted steadily the past year and, as of January 31, 1946, it amounted to 183,802 hours in the Department, the equivalent of about 90 employees.

The changes desired in the departmental items are as follows:

Change page 32, line 6, salaries, Office of the Postmaster, General, from “$319,900” to “$329,900.” This additional amount, $10,000, is necessary to provide for the reemployment of returning veterans at rates of compensation higher than those presently paid to war-service employees who have been serving during the absence of the veterans and to meet the cost of lump-sum terminalleave payments required by Public Law 525.

Change page 32, line 14, salaries, Office of the First Assistant Postmaster General, from "$940,000” to $964,600.” The restoration of $24,600 requested for this Bureau is vital to the adequate administration of the vast responsibility charged to the Bureau. As of January 31, 1946, there was an arrearage of over 26,000 hours of work. In spite of the fact the equivalent of 353 persons were used during 1945, the amount allowed by the House committee will provide for the employment of only 345 persons. Additional help is badly needed. It is in this Bureau that supervision is had of expenditures of over $800,000,000.

Change page 32, line 16, salaries, Office of the Second Assistant Postmaster General, from "750,000” to “$774,000.” This change is believed absolutely essential to provide $24,000 for the employment of 11 additional employees so that the work of the Bureau may be properly performed. These employees were requested for 1946 to restore the postal transportation service to a world-wide peacetime organization. They were not allowed and this has resulted in an arrearage of over 50,000 hours as of January 31. The work incident to all phases of postal transportation is increasing daily, and it is feared that the Bureau may be subjected to serious embarrassment if the personnel required to keep the work up to date and to eliminate expensive overtime is not provided.

Change page 32, line 18, salaries, Office of the Third Assistant Postmaster General, from "$1,148,000” to “$1,175,500.” The restoration of $27,500 of the $35,000 cut made by the House Committee on Appropriations will provide for 16 em

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