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The price of the leather strap was being continually raised until we were compelled to pay 35 cents each for them, and we were informed that at the next purchase they would cost 45 cents. It was necessary to renew the strap every two years. In handling the bundles so strapped the files would be much worn and abraded, because the strap did not afford a sufficient support and protection the entire length of the bundle. The bundles were very difficult to handle by reason of the flexibility and insecure support of the strap.

Seeking some method to remedy the numerous difficulties in the old system, and to facilitate the handling of cases, our people finally hit upon a galvanized steel file box. We now have installed 2,900 of these boxes and 3,100 more are ordered. Unless restrained by some superior authority, we will continue to supply these steel file boxes as fast as the straps now holding the bundles wear out and it is necessary to replace them. The boxes are 6 inches in height, 27 inches in depth, and 4 inches wide. They will hold from 40 to 80 cases, depending on the size, or 33 per cent more than were contained in the single bundles held by straps. The boxes cost us 37 cents apiece, which is less than the cost of a strap.

Under the strap, when it was necessary to remove the files of one case, the entire bundle was drawn, placed on a table or rest, unstrapped, the case drawn, the bundle again strapped and placed on the shelf. Now by reason of the rigidity of the box, the same may be partially drawn and a case removed from any part of it and then the box shoved back. The handling is very much easier for the employees, thus enabling them to do better and more rapid work. The chief of the files estimates the labor saving at about 40 per cent. The boxes will endure permanently, while, as stated, the life of an average leather strap is only about two years. The saving in space we estimate at 26 per cent, thus decreasing the number of shelves, removing huge desks before required on which to place the strapped bundles, and thus allowing better ventilation and more sanitary care of the rooms where the files are kept and the employees compelled to work.

In addition to these advantages, the metal boxes afford better protection as against fire and the ravages of time. Last, but not least, the uniformly neat appearance of the boxes gives a touch of beauty and cleanliness to the rooms where they are stored.

Altogether the improvement is very excellent, and I thus call special attention to it, both because of its value and because, I have no doubt, there are many other places in the governmental departments where the same change would be beneficial and much appreciated.

CLEARANCE SECTION.

Last year I reported to you having inaugurated a system of accounting by which the exact status of the work of the bureau, day by day or at any given day, might be known. It made a constant check upon the work of all divisions and rendered it possible to present in definite form in my annual report reliable figures as to the work accomplished and that still pending for action.

Exhibit 23 shows complete information as to cases pending. The actual counts, with the comparative check of the daily bookkeeping, have been the most careful and most satisfactory ever made in the bureau, and the discrepancies are very small. Heretofore the counts have been largely haphazard by reason of the fact that there existed no ready means of testing the reliability thereof. Large variances between the actual and the required count were not reconciled.

The primary object of the clearance system has been achieved to my satisfaction. It has operated to remove some causes of duplication of work. It has aided examiners in handling claims. Fewer face-brief errors occur. Fewer consultations of section chiefs are necessary. It has secured equalization of work among the examiners. Each examiner receives a certain number of claims daily, known to be pending, whereas under the former plan one examiner might out of a bundle of ten cases get only two pending claims ready for the action of the Board of Review, and another examiner seven or eight; consequently charges of discrimination and favoritism were frequently made, which no longer occur. The distribution of claims and removal after action has been facilitated. There is no longer idleness awaiting distribution. The fact that the actual count on the 1st day of July, 1915, and succeeding days shows a discrepancy between the bookkeeping and the actual count of five in number is really marvelous, compared with the former experiences where the discrepancies ran up into the thousands.

We congratulate ourselves on having installed such an excellent system for keeping track of the files.

EMPLOYEES.

We began the year with 1,275 employees. This year the Congress by its appropriation required a reduction in number to the extent of 93, and that leaves us 1,182 employees. Acting under your benevolent instructions, vacancies occurring during the year caused by death, resignation, and transfer were not filled, so as to save dropping employees to satisfy the requirements of the law. Officers at department headquarters and bureau chiefs very kindly aided us in helping secure transfers, which made other vacancies. Altogether we had vacancies in number equal to the reduction required, but the vacancies

were not of the grades required, and, therefore, we were compelled to make demotions from one grade to another to accommodate the situation. There were 110 reductions, usually of one grade, but sometimes two transfers in grade.

By reason of the foregoing facts we were saved the sad necessity of dropping anybody from the service.

In this connection I desire to report that the employees in the bureau are busy at the tasks assigned to them; that they uniformly observe the rules of discipline prescribed by the department; that, as a whole, they are devoted to the interests of the Government committed to their care, loyal to superiors, and otherwise praiseworthy in their conduct.

Very respectfully,

The SECRETARY OF THE INTERIOR.

G. M. SALTZGABER,

Commissioner.

STATISTICAL TABLES.

EXHIBIT 1.-Pensioners on the roll June 30, 1915, and June 30, 1914.

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