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Two special items of construction are recommended, namely, $1,250,000 for construction of a 2-story vault in the north court of the Treasury Building to provide modern facilities and a rearrangement of the storage accommodations of that department. The sum of $55,000 is allowed for protection of the shore line and removal of certain temporary buildings at the Fort Monroe, Va., quarantine station.

For the prosecution of work on the public building program the amount for the acquisition of sites and construction work is increased from $48,000,000 to $60,000,000. This sum will be applicable to any and all buildings on which limits of cost have been fixed or may be fixed in the future. This sum, in conjunction with a balance on November 1 of $72,558,379 in existing appropriations would make available $132,558,379 for the prosecution of work on all authorized projects for the 20 months ending June 30, 1932, at the most expeditious rate now deemed possible. In the event of the program moving forward at a more rapid rate additional funds would be asked at the next regular session of Congress to supplement those now granted. The Budget estimates do not contain any recommendations for the establishment of limits of cost on any new projects under the public buildings act as amended. It is expected, however, that the "fifth installment" of new projects will be ready for submission to Congress later at this session for inclusion in a deficiency appropriation bill.

The following tables give the total authorizations under the entire public building program in the first table and a subdivision of that program in the three following tables between the District of Columbia and the field and also show the status of 1913 projects:

Status $480,000,000 program as of November 15, 1930

(Statement A, $315,000,000, sec. 5.)
(Statement B, $15,000,000, sec. 3.)

(Statement C, $150,000,000, sec. 5, D. C.)

Completed, 93 buildings, total limit_.

Under contract, 92 projects, total limit_.

Bids in, on market, or in specification stage, 26 projects, total limit...

Drawing stage:

Supervising Architect, 92 projects, total limit..
Private architect, 22 projects, total limit..

Sites acquired, drawings not yet taken up, 12 projects, total
limit...

Sites accepted, waiting title, 46 projects, total limit..

Sites or additional land under condemnation, 23 projects, total
limit....

Site reports in, awaiting selection, 77 projects, total limit..
Agents inspecting sites, 45 projects, total limit..

Data being collected, 1 project, total limit.

Held, 8 projects, total limit.

Allocated to Seattle, Wash__.

Total limit...

Total specification authorization.

Sent to surplus fund on Economics Building, Department of

Agriculture...

$31, 561, 362. 00

69, 748, 948. 00

13, 123, 971. 00

51, 480, 647. 00 111, 667, 000, 00

4, 026, 741. 00 18, 161, 300. 00

23, 100, 100. 00 37, 548, 000, 00 14, 957, 800, 00 85,000.00 2, 320, 000. 00 900, 000. 00

378, 680, 869. 00

368, 516, 551 80

25,000. 00

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$315,000,000 program, section 5, outside of Washington, D. C.

Status November 15, 1930:

Completed 32 buildings, total limit.

Under contract 88 projects, total limit.

Bids in, on market or in specification stage 26 projects, total
limit__

Drawing stage

Supervising architect, 87 projects, total limit.
Private architects, 13 projects, total limit__.

Sites acquired, drawings not yet taken up, 11 projects, total
limit_

Sites accepted, awaiting title 45 projects, total limit..

Sites or additional land under condemnation 21 projects, total
limit...

Site reports in awaiting selection 74 projects, total limit_
Agents inspecting sites 45 projects, total limit..
Held, 7 projects, total limit.

Total....

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STATEMENT B

$15,000,000 program—Section 3 (1913 projects) act May 25, 1926

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A statement is also included in the hearings on the bill (pp. 480 to 489) for each project for which a limit of cost has been established by law showing the limit of cost, status, etc,

POST OFFICE DEPARTMENT

The estimates for the Post Office Department aggregate $848,844,057 for the fiscal year 1932.

The appropriations for the fiscal year 1931 aggregate $836,826,297. The amount recommended in the accompanying bill for the fiscal year 1932 is $841,803,917.

The amount recommended compared with the budget estimates for 1932 and with the 1931 appropriations is as follows:

It is $4,977,620 more than the 1931 appropriations, and it S $7,040,140 less than the Budget estimates.

The business depression affecting the country reflects itself in the appropriations made in this bill for the Postal Service. The appropriations for the fiscal year 1931 were based upon an estimated postal revenue for that year of approximately $754,000,000. Due to decrease in business the revenues will not reach that point and in consequence of a decline in the amount of postal matter to be handled it has not been necessary to expend during the current fiscal year large portions of the appropriations made for that period. Unexpended balances in the present year's appropriations will probably exceed $15,000,000. It will therefore be possible during the fiscal year 1932 to carry on a much larger volume of business with accompanying increased expendtures to accomplish it with the same or somewhat smaller appropriations than were provided for the present fiscal year. Consequently most of the appropriations for the fiscal year 1932 will show decreases under 1931, a number are recommended without any change, and a very few show slight increases. In two cases, however, there are large increases due to matters of governmental policy which are not governed wholly by the necessities of the Postal Service, namely, ocean mail contracts in furtherance of the policies under the merchant marine act of 1928 and the carrying of domestic air mail under contract under the provisions of the Watres Act. Eliminating the increases under these items of $7,100,000 and $5,000,000, respectively, the rest of the department as a whole shows a decrease under 1931 appropriations of approximately $7,000,000.

The largest decreases effected occur in the appropriations for personnel where large unexpended balances will remain for the fiscal year 1931, the principal decreases being as follows: Clerks and employees at first and second class offices, $2,500,000, compensation of postmasters, $500,000, letter carriers in the City Delivery Service, $500,000, and employees in the Railway Mail Service, $2,000,000. The appropriation for the transportation of mail by railroads is decreased by $1,750,000 and the appropriation for payment of indem nities for the loss or injury of domestic registered and insured matter is reduced by $300,000. Major increases, aside from the merchant. marine and air mail, include $500,000 for payment of fees to special delivery messengers, $300,000 for contracts for carrying the mail by star routes, and $620,000 for equipment and supplies to cover the installation of furniture in leased quarters and in third-class post offices.

The appropriation for transportation of foreign mail is increased from $29,500,000 to $36,600,000, an apparent increase of $7,100,000. There was available during the current year, in addition to the direct

appropriation of $29,500,000, an unexpended balance from the previous year of approximately $3,000,000, making the total available for 1931 of $32,500,000. The actual increase, therefore, of 1932 over 1931 is $4,100,000. The increase in the appropriation is wholly on account of new merchant marine contracts and the transportation of foreign mail by air. Included in the recommended appropriation is $20,500,858 for the payments on 37 contracts already entered into under the merchant marine act of 1928 as follows:

No.

Termini

4 New York-Buenos Aires...

Contractor

Munson Steamship Line...
Export Steamship Corporation..

New York-Beira, Portuguese East Africa... American South African Line..
New York-Valparaiso...

5

New York-Mediterranean and Black Sea ports.

6

8

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22 New Orleans-Progreso.

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Grace Line (Inc.).

New York and Porto Rico Line.
Eastern Steamship Lines..
American Scantic Line.

American West African Line..

Atlantic & Carribbean Steam Navigation
Co.

Colombian Steamship Co..

Galveston and Port Arthur-Santo Domingo | Lykes Bros. Steamship Co.............
City.

San Francisco-Sydney..

Annual

rate

$1, 253, 200 1,855, 490

285, 522

1,404, 586

46, 176

225, 624

583, 700 287,850

375,878

Gulf Mail Steamship Co.

New York & Cuba Mail Steamship Co..
do...

280, 410

616, 720

419, 536

23, 619

274, 974

24

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25

San Francisco-Manila..

Dollar Steamship Lines..

1,262, 664

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Admiral Oriental Line..

Dollar Steamship Lines.

1,070, 784

1, 492, 464

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States Steamship Co..

399, 540

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do..

184, 440

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Oceanic & Oriental Navigation Co..

169, 740

Los Angeles-Melbourne..

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32 New York-Balboa..

American Line Steamship Corporation...

418, 496

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In addition to the foregoing routes there is included in the recommended appropriations $2,331,647 for seven additional proposed contracts.

Under the agreements for carrying the mail over these routes there will be constructed under the 37 contracts already let a total of 54 new vessels and the remodeling of 36 vessels is required, a total of 90 new and reconstructed vessels for the upbuilding of the American merchant marine. The estimated construction and remodeling cost of such vessels in American shipyards is in excess of $270,000,000. In addition to the vessels for routes already under contract the additional seven routes for which funds are provided in this bill will bring into the merchant marine 10 more new vessels.

The merchant marine act of 1928 placed upon the Post Office Department the duty of building up the merchant marine of the country through the making of mail contracts, and while the cost of so carrying the foreign mail is more than what it can be transported for on a weight basis, the excess is more properly chargeable to a governmental policy of merchant marine development than to the operations of the Postal Service. The excess charge to the department due to preferences to American vessels and merchant marine policy is $14,355,000 for the fiscal year 1930 and will be larger for 1931 and 1932.

The allocation under the foreign mail appropriation for the transportation of mail by aircraft is $7,000,000. The following table shows the routes now in operation and the estimated annual compensation of each, together with additional routes now under contract but not in operation:

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The data which the committee has been able to obtain shows that for the fiscal year 1930 the expenditures for transportation of foreign air mail by contract were $4,300,000 and the revenues derived from that source totaled $332,988.03, an estimated excess of the cost of service over the revenues of $3,967,011.97. While the foreign air mail lines have been in operation a comparatively short time and the business is increasing the Post Office Department here, as in the case of the merchant marine, is charged with an expense in connection with the foreign commercial policy of the Government which is not strictly a postal item.

The appropriation for the transportation of domestic air mail by contract is increased from $15,000,000 to $20,000,000. Of this increase of $5,000,000 the sum of $3,000,000 is due to the establishment since the current appropriation was made of routes as follows: Atlanta to Los Angeles, New York to St. Louis, St. Louis to Kansas City to Los Angeles, and Amarillo to Oklahoma City to Tulsa to St. Louis.

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