higher in 1949, payments from this appropriation could be considerably lower in 1949. All airlines now have rate applications pending with the Civil Aeronautics Board, and the budget estimate is little more than a guess. A reduction in the estimate is reflected in the bill, it being understood that rate rulings by the Civil Aeronautics Board might require supplemental appropriations. The requested increase for the printing of postal cards appears justified. Testimony reveals that commercial establishments are among the heaviest users of 1-cent postal cards. The Department is required by statute to sell and accept for delivery 1-cent cards, but the committee doubts that it was the intent of the Congress to require the handling of such cards at less than cost for commercial and advertising purposes. The total cost of printing, handling, and delivery of such cards is in excess of the revenue obtained from their sale, and it is presumed that the legislative committee on postal matters will take cognizance of this fact. Although there has been a 10percent decrease in the sale of stamped envelopes in 1948, the estimate for 1949 contemplates the manufacture of 79,000,000 more envelopes in 1949 than in 1948. Metered mail, which does not require funds from this appropriation, is increasing by leaps and bounds, and although in very small proportion, sales of stamps have decreased in 1948. Therefore, no adequate justification for an increased appropriation has been made with respect to this item, and the amount provided in the bill represents a small decrease below the 1948 amount. POST-OFFICE SUPPLIES AND EQUIPMENT Appropriation, 1948.......... Supplemental estimate, 1948.. Recommended in bill, 1949.. $6,500, 000 815, C00 7,850, 000 7, 158, 000 The supplemental estimate for 1948 is based upon the increased cost of supplies and equipment since the original 1948 estimate was prepared more than a year and a half ago. The increase in the estimate for 1949 reflects price increases with respect to the supplies and equipment requested, and exceeds the 1948 appropriation plus the estimated 1948 supplemental by $535,000. The Department had 18,748 typewriters on hand as of July 1, 1947, and the estimate includes funds for the purchase of 2,500 typewriters in 1949 at a cost of $207,700. This amount is unnecessary in view of the provision in title I of the bill. The data furnished in support of the estimate also indicated increased purchases of other office machines, and increased amounts of a miscellany of supplies. Although recognizing that increased prices on purchases must be paid, no adequate justification of the need for increased quantities of such equipment and supplies has been made, and the amount provided in the bill is a reduction of $692,000 below the budget estimate. The requested elimination of the provision earmarking funds for the purchase of modern postal devices does not seem advisable. This proviso was originally inserted at the request of the Third Assistant Postmaster General, according to testimony by the Department, and if it is eliminated, it is most likely that no new mechanical devices will be obtained. It is highly important that labor-saving devices be installed to reduce the cost of operations. The committee has observed that certain elements in the Office of the Fourth Assistant Postmaster General appear to be consistently opposed to modernization of postal operations, which is lamentable. The Post Office Department of the United States is one of the largest business operations in the world, and its costs are mounting faster than its revenues are increasing. Every effort to mechanize and streamline its operating methods must be encouraged to the maximum, and it is hoped that officials who do not advocate improvements will not be permitted to obstruct progress. In its preliminary report, entitled "Survey and Study of the Postal Service" (H. Rept. No. 1242, 80th Cong., 2d sess.), the Committee on Post Office and Civil Service indicated that important savings might be effected by the mechanization of mail-separating operations, and $100,000 has been earmarked in the bill for initiating such a program. Appropriation, 1948... Supplemental estimate, 1948.. Recommended in bill, 1949- EQUIPMENT SHOPS $6, 700, 000 These shops, which are used for the manufacture of mail bags and locks, have produced savings compared to purchases of such equipment from commercial suppliers. During the war large numbers of bags and pouches were lost and damaged in the transmission of mail to the armed forces overseas, and the shortage of sacks is a serious problem to the Department. The need for new mail sacks and repairs to old sacks is thoroughly justified, and providing the funds requested for this purpose should lead to very large savings next year. Some difficulty was experienced in fiscal 1947 and preceding years in securing competent personnel. The committee believes that competent personnel will not be available to carry out the ambitious program the Department has planned, and a reduction of the estimate has been effected on this account. The Department desires to expand its shop facilities for the manufacture and repair of sacks and locks. Legislative authority is necessary before an appropriation for this purpose can be made, and the legislative committee now has the matter under consideration. As evidence of the economy involved in the operation of such shops, the Department points out that it is currently paying for one class of sack an average of $3.20 each. Their shops can manufacture the same type sack at present for $2.32. Considering the millions of sacks needed by the Department, it would appear that additional shop facilities would be a sound investment. Appropriation, 1948. Supplemental estimate, 1948.. Estimate, 1949_.. Recommended in bill, 1949 VEHICLE SERVICE $38, 500, 000 The total truck fleet of the Department is 10,218 units, of which 7,733 are more than 10 years old, 6,856 are more than 15 years old, 189 are more than 20 years old, and 90 are more than 25 years old. Obviously, the cost of operating vehicles which have been in service for such periods of time is entirely uneconomical. The Department recommends that the entire fleet be replaced as soon as possible, and estimates that the present cost of replacing all vehicles is $22,700,000. Of the total sum required, $4,514,000 is available in 1948, and the estimate of $4,400,000 for 1949 is recommended by the committee in the bill. The balance necessary to effect complete replacement is $13,786,000. The committee is in general agreement that the entire fleet should be replaced with new vehicles in the interest of economy. However, there are many other factors in the operation of the Vehicle Service which need attention in the interest of economy and efficiency. The officials in charge of this service seem to be inordinately reluctant to discuss this Service from a constructively critical point of view. It is well known that the Vehicle Service has performed in a highly commendable manner. During the war especially it had a remarkable record of maintaining difficult schedules and operating under the most trying conditions. However, the Service is not operated in such manner that unit costs are ascertainable, and it is impossible without adequate cost data to eliminate inefficient operations and take advantage of modern improvements in repair and maintenance methods. The Vehicle Service operates 90 service garages without the benefit of hydraulic lifts for greasing and repairs. Greasing equipment is reported to be not the most economical type. First-aid facilities in garages were testified to be of "standard types," and the Public Health Service has never been requested to survey such facilities for their adequacy. The director of the safety program should put the Vehicle Service at the top of his list in undertaking his new program in the Department, and the committee desires to have a thorough and objective report on the safety standards in garages and all other operations of the Vehicle Service. Although funds were made available on July 1, 1947, for the purchase of approximately 2,000 trucks, no orders had been placed as of December 11, 1947, when the committee held hearings on the bill. In view of the urgent need for new vehicles, it is difficult to understand why bids were not solicited much sooner. The committee has been informed that the Department rigidly adheres to specifications which have been in effect for many years when purchasing trucks, which prevent some manufacturers who have modernized their designs from bidding. This reduces competition in the bidding on Government purchases, and denies the taxpayers price advantages inherent in a competitive system. Bids were opened in January 1948 for supplying approximately 1,400 trucks for which appropriations were available on July 1, 1947. Only one supplier bid to supply these trucks. as complete units, obviously owing to the arbitrary insistence of the Department on outmoded specifications. The early delivery of trucks ordered in fiscal 1947, and the prompt procurement of trucks for which funds have been appropriated in 1948 and recommended for 1949, will permit the Department to replace more than half its present fleet. The estimate of $42,914,000 for 1949 has been reduced in the accompanying bill to $42,000,000 in anticipation of a reduction in mainte nance costs and other economies which can be effected. The Postmaster General should see to it that the oldest and most uneconomical trucks are completely disposed of when new equipment is obtained. The committee will not look with favor upon deficiency or supplemental estimates for operating the Vehicle Service in the future unless full advantage has been taken of all possible economies. LIMITATIONS AND LEGISLATIVE PROVISIONS The following limitations and legislative provisions not heretofore carried in the bill are recommended: On page 8, lines 7 and 8, under "Bureau of the Public Debt, Treasury Department": including not to exceed $3,750,000 for promoting the sale of savings bonds On page 21, beginning at line 10 and continuing through line 25, page 22, under "Bureau of Federal Supply, Treasury Department": No part of any money appropriated by this or any other Act shall be used during the fiscal year 1949 for the purchase, within the continental limits of the United States, of any typewriting machines (except bookkeeping and billing machines). Each agency in the executive branch of the Government (which shall include all departments, independent establishments, and wholly owned Government corporations) is authorized and directed (1) to report within thirty days after the enactment of this Act, or by July 1, 1948, whichever is the later, to the Director of the Bureau of Federal Supply the total number of typewriting machines in the possession or custody of such agency and the number thereof surplus to its requirements, and (2) to surrender and ship such surplus typewriting machines as the Director of the Bureau of Federal Supply may direct. Costs of packing and shipping hereunder shall be charged to the general supply fund. Each agency shall furnish the Director of the Bureau of Federal Supply such information regarding typewriting machines as he may from time to time request. The Bureau of Federal Supply is authorized and directed to receive and hold all typewriting machines surrendered to it hereunder and to distribute same to any of such agencies as the Director of the Bureau of Federal Supply may determine. The Director of the Bureau of Federal Supply is authorized and directed at such times as he may determine to be necessary to survey and determine the number and kinds of typewriters which are at any time surplus to the requirements of any agency. Upon such determination the Director of the Bureau of Federal Supply is authorized to direct, upon such notice and in such manner as he may prescribe, the head of any agency to surrender to the Bureau of Federal Supply any and all typewriting machines, surplus to its requirements, and such determination and direction by the Director of the Bureau of Federal Supply shall be final and conclusive upon all agencies, officers, and employees of the executive branch of the Government of the United States. The Director of the Bureau of Federal Supply is authorized to charge each agency to which typewriting machines are supplied hereunder amounts equal to the fair value thereof, as determined by him, and such amounts shall be credited to the general supply fund. On page 32, lines 10 through 20, inclusive, under "Balances due foreign countries, Post Office Department": Provided, That there shall be established immediately, by transfer of $5,000,000 from the appropriation for "Balances due foreign countries" for the fiscal year 1948, a revolving fund which shall be available without fiscal year limitation for advances to air carriers for the transportation of air mail from foreign countries to the United States as authorized by section 2 of the Act of July 27, 1940 (49 U. S. C. 485b), and payments hereafter received from foreign countries on account of air carriers for the transportation of air mail from foreign countries to the United States shall be credited to such fund. On page 34, lines 9 and 10, under "Miscellaneous supplies and equipment, Post Office Department:" and of which $100,000 shall be available exclusively for mechanizing devices for separation of mails |