Mr. LIVINGSTON. Then you reach the markets of South American and other ports that you did not reach before?

Mr. WILSON. That is an export matter.

Mr. LIVINGSTON. You do not have anything to do with that?

Mr. WILSON. No, sir.

The CHAIRMAN. Have you finished your explanation with reference to the Bureau proper, on page 78? (After a pause.) While you are looking at it read the letter of Mr. Forman, Commissioner, because it bears directly on this. It is on page 79.

Mr. WILSON. (After reading letter referred to.) I beg your pardon; may I correct my statement in this other matter? Under the consolidation of work in the last few days we will be able to dispense with the services of one chief of division at $2,250.

The CHAIRMAN. Dispense with him entirely?

Mr. WILSON. Yes, sir. I forgot about that. That was just put on my desk.
Mr. MOODY. There will be four instead of five heads of divisions?

Mr. WILSON. Yes, sir.

The CHAIRMAN. That will cut down the expenditures to the extent of $2,250? Mr. WILSON. Five heads of divisions at $2,250, and with this change there will be four heads of divisions, a reduction of $2,250.

COLLECTING INTERNAL REVENUE.

The CHAIRMAN. You will run this year, Mr. Wilson, on your appropriation of $1,710,000 for 1898 for salaries and expenses of collectors, etc., without a deficiency? You are running now on that line and can keep within the limitation of the appropriation for the current year?

Mr. WILSON. Yes, sir; the first quarter of the current year showed a margin of possibly $40,000.

The CHAIRMAN. And you think you will get through with a saving of $40,000? Mr. WILSON. No, sir; I am not ready to say that. The expense of the administration of that Bureau in the heavy fruit season, which is the second quarter, is very heavy, and we are struggling with that now. A great many special deputies have to go into the field and have to travel great distances. It involves a great expenditure to get a little money. I am sorry to say that this is the case, but that is true. It is a dreadful problem. For instance, there are 3,000 fruit distilleries in the second district of Virginia, scattered all over the district. I submitted that statement by districts, but it is not here.

The CHAIRMAN. In what form have you that letter? When you say you sub

mit

Mr. WILSON. I submitted an estimate reducing the districts from 63 to 38.
The CHAIRMAN. Where is the letter?

Mr. WILSON. It is not a letter: it is an estimate I referred to.

The CHAIRMAN. Then this is the only general statement you make-that you can reorganize your Department on a basis of 38 districts instead of 63, 63 districts being the present number

Mr. WILSON. Yes, sir; anywhere from 38 to 43 districts instead of 63 districts. That Bureau can be reorganized with from 38 to 43 districts, cutting out the balance of the districts, and with that change we can administer the law with better facilities in a great many sections of the country than at the present time.

The CHAIRMAN. That is your judgment?

Mr. WILSON. Yes, sir.

The CHAIRMAN. What is the law?

Mr. WILSON. The present law provides for the President to do that by Executive order.

The CHAIRMAN. It rests with the impression your Bureau can make on the President as to its necessity?

Mr. WILSON. Yes, sir.

The CHAIRMAN. An Executive order can at any time reduce or increase

Mr. WILSON. It can not increase.

The CHAIRMAN. An Executive order can simply reduce?

Mr. WILSON. Yes, sir.

The CHAIRMAN. Therefore there is no necessity for a statute on the subject?

Mr. WILSON. No, sir; it does not of necessity require an additional statute. The authority for the President to act is ample.

Mr. MOODY. I suppose you could not tell us the likelihood of the President acting in this case?

Mr. WILSON. I am not inclined to think that he will not act.

Mr. LIVINGSTON. We can help him by putting the districts at 38 or 43 instead of 64. Mr. WILSON. It is good business for us to do that; that is all there is about it; that is flat-footed.

The CHAIRMAN. Under existing conditions, with 63 districts, the appropriations for 1898 are $1,710,000. That will be ample for 1899?

Mr. WILSON. Yes, sir; I think so.

The CHAIRMAN. Can there be any reduction?

Mr. WILSON. Not unless the districts are reduced.

The CHAIRMAN. I understand. You mean not unless the proposition you make is carried out?

Mr. MOODY. The result of consolidating the districts would be to put out of office the difference between the clerks in 38 offices and 63 offices?

Mr. WILSON. Yes, sir; it would reduce the office force very largely. Where there are five or six men, with a collector at the head of them, this change would only leave one or two clerks, and in a majority of cases only one clerk.

Mr. MOODY. Your proposition is substantially the same as was proposed to be done with the pension agents?

Mr. WILSON. It is on the same line; yes, sir.

The CHAIRMAN. What has been the preceding action on the part of the Executive in connection with the consolidation of districts?

Mr. WILSON. They have been reduced from their first number, when the number of collection districts equaled the number of Congressional districts, to 63 districts, which we have at the present time. This was done by three or four Executive orders. The CHAIRMAN. Have you any recollection of the years in which those orders were made?

Mr. WILSON. The last one which I recollect was in the year 1886. That is the only one of which I recollect the date. At that time the number of districts was reduced from ninety odd districts to 63.

The CHAIRMAN. That was in President Harrison's Administration?

Mr. WILSON. No, sir; that was in Mr. Cleveland's first Administration.

The CHAIRMAN. The same thing was done in Grant's Administration, was it not? Mr. WILSON. It possibly commenced then; yes, sir.

The CHAIRMAN. That is when they corresponded with Congressional districts? Mr. WILSON. Yes, sir; that was the first history of it.

The CHAIRMAN. Was not the work very much larger then than now?

Mr. WILSON. For the few years preceding the close of the war and after the close of the war, when the collections reached $360,000,000 'and taxes were upon everything, that was when it reached the maximum.

Mr. LIVINGSTON. Can not you give us the number of offices and their salaries likely to be dropped by this change which you suggest? If you haven't it here, can not you send that to us?

Mr. WILSON. Yes, sir; I can send to you such an estimate, just as I presented it to the Secretary.

The CHAIRMAN. Please go to the next paragraph, $1,900,000 for salaries and expenses of agents, etc., for the present fiscal year. Will you keep within the limitations of that appropriation and not ask for a deficiency?

Mr. WILSON. Yes, sir; I think we will.

The CHAIRMAN. Á similar appropriation for the next fiscal year will carry you through?

Mr. WILSON. Yes, sir; I think it will.

The CHAIRMAN. Can you reduce that?

Mr. WILSON. No, sir.

The CHAIRMAN. You think you will ask for no deficiency this year? You asked for none last year, did you?

Mr. WILSON. No, sir.

The CHAIRMAN. Kindly send us a memoranda of the clerks detailed from your department, the offices to which they have been detailed, and, if you can, the length of time of their assignments?

Mr. WILSON. Yes, sir; I will.

Hon. J. G. CANNON,

TREASURY DEPARTMENT,

OFFICE OF THE COMMISSIONER OF INTERNAL REVENUE,
Washington, D. C., December 2, 1897.

Chairman Committee on Appropriations, House of Representatives.

SIR: I have the honor to state that employees of this Bureau are detailed to other offices of the Treasury Department, as follows:

Beverly Tucker and W. W. Brown are detailed to this Bureau from other offices to make good the places of McDermott and Powers.

Very respectfully,

G. W. WILSON, Acting Commissioner.

LIGHT-HOUSE BOARD.

STATEMENT OF COMMANDER GEORGE F. F. WILDE, OF THE LIGHT-HOUSE BOARD.

The CHAIRMAN. Please look at page 64 of the bill. I see in the estimates of the Light-House Board you ask for an increase of $3,200.

Commander WILDE. Yes, sir.

The CHAIRMAN. Will you state to the committee why you desire that increase? Commander WILDE. The work, since there has been any increase in the clerical force of the Light-House Board, has in all respects doubled, and in a great many respects it has quadrupled.

The CHAIRMAN. Your estimates have run at that figure for a number of years? Commander WILDE. Yes, sir. That has been by reason of the assistance of detailed clerks from other bureaus. At times we have had as many as five detailed clerks to help us. At the present time we have but one, owing to the requirements of other Bureaus for the services of their own clerks.

The CHAIRMAN. You have only one detailed clerk at present. From what Department is he?

Commander WILDE. One of the Auditor's Departments-I can not say which—a copyist.

The CHAIRMAN. Please send us a memorandum of that and the length of time you have had that detail.

Commander WILDE. Yes, sir.

The CHAIRMAN. Has your work enlarged?
Commander WILDE. Very largely, sir.

The CHAIRMAN. By what legislation?

We

Commander WILDE. The natural increase of the duties and work in the LightHouse Service. For instance, referring back to the reports-take it in 1882—there were then 25 clerks and we have only 29 now. At that time there were 594 appointments made for the whole Light-House Service. At this time there are 5,000 made out, so the work of the office has increased in that way in every possible way. have found that having the work taken home at night or keeping the clerks there late in the afternoon has not been conducive to accuracy. Many of them work until 5 and half past 5 in the afternoon, earnestly and zealously. Many of the clerks have been in the service twenty-two or twenty-four years. They are conscientious and faithful employees, and they remain there until late in the afternoon or take their work home at night. As I have said, we have found this is not always conducive to accuracy. think we are asking for very little. It was very gratifying to the Light-House Board when Mr. Cannon stated last year that the estimates of the Light-House Board were the most conservative of any.

I

The CHAIRMAN. You have asked for $39,440. Your estimate since 1893 has been $36,240 each year. You have been appropriated from 1892 the amount of your estimate. Do you understand that?

Commander WILDE. For clerical force; yes, sir.

The CHAIRMAN. Turn to page 65. You will see there your estimates for each year since 1893. You will observe the appropriations from 1892 have been consistent with your estimates. Congress has appropriated according to your estimates? Commander WILDE. Yes, sir.

The CHAIRMAN. Now, give me directly a reason that from 1898 you should have this increase. What has been the change? You ask for no deficiency; you have kept within the limitation of your appropriation. I want a direct reason why there should be any increase.

Commander WILDE. Because of the lack of clerks that could be detailed to us. That has been the course we have hitherto pursued in order to get along-to have clerks detailed. As I have said, we have had five clerks detailed. We have but one

now.

The CHAIRMAN. Is not that because there has been simply an immediate pressure on the other Bureaus, and no unusual pressure on yours?

Commander WILDE. No, sir; there is a constant pressure on us. The whole amount of money we ask is only 1 per cent of the appropriation for the Light-House Board, which I think is a very small amount to pay for the clerical work.

The CHAIRMAN. How do you make that?

Commander WILDE. Our appropriation for the Light-House Board is $3,500,000,

and the appropriation for our office is not more than 1 per cent, or about 1 per cent, of that.

The CHAIRMAN. I am simply talking about your office.

Mr. MOODY. He says the appropriation is $3,500,000, but that is for the whole Light-House Board.

Commander WILDE. The amount of money paid out for office work is about 1 per cent of the money for the entire Light-House Establishment.

Mr. LIVINGSTON. The question is why you can not get along with the amount which has been appropriated, if you have gotten along so far without a deficiency. Commander WILDE. We have been able to get through by reason of obtaining other help, sometimes having as many as five detailed in our office; but now we have only one.

Mr. LIVINGSTON. If your clerks have been there so long they are getting old, could not you get along if you had younger clerks in place of the old ones? Commander WILDE. I do not think so; these old clerks are very familiar with the methods of the board, and this counts to a great extent.

Mr. LIVINGSTON. They must necessarily be slow clerks if they are old.

Commander WILDE. I do not think so, sir. I think they are doing their work very well.

The CHAIRMAN. What is your sum total of clerks?
Commander WILDE. Twenty-nine clerks at present.

The CHAIRMAN. How many divisions have you?

Commander WILDE. Just one division, practically. We have two or three rooms. The CHAIRMAN. Is there any additional statement you desire to make to the committee?

Commander WILDE. I would like to read something. I can not talk very well and I have written something out which I would like to read.

Mr. LIVINGSTON. Before he leaves that I would call attention-on page 64. Why is it you want two assistant messengers?

Commander WILDE. Those two are not only messengers but they copy a great many letters in the letter book, and they attend to all the mail, see that the mails are properly put in the office and made up, and do other work. Years ago they had three.

The CHAIRMAN. Please read what you desire.
Commander Wilde read the following:

The title and contract clerk has, as his title indicates, charge of the contracts made by the Light-House Board, and of the muniments of title to its many, say 1,200 light-house sites. He draws most of the contracts, and conducts the correspondence relative to them. He examines the abstracts of title and conducts the correspondence relative to the purchase of sites. From 1861 to 1882 the board made 357 contracts and acquired 353 titles, an average of nearly 18 contracts and 17 titles per year. Since then the work has increased so that last year the board made 313 contracts.

He is also acting chief clerk in the absence of the chief clerk, which is frequent, as the chief clerk is frequently sent away on duty.

The chief accountant has charge of all accounts and reports relating to the finances of the Light-House Establishment. The accounts are rendered by thirtytwo different disbursing officers, and the chief accountant is held responsible for the correct and legal expenditure of all funds by them.

The total amount of annual appropriations for the Light-House Establishment is approximately $3,250,000. These appropriations are for various specified purposes, and can only be expended under certain conditions and for certain specified objects. The chief accountant must be familiar with every point of law and every decision of the law and accounting officers of the Treasury Department, in order to direct the expenditure of these funds in a legal manner, and to decide, after such funds have been expended by the thirty-two different disbursing officers, whether or not they have been so expended.

The compensation of this employee never has been adequate to the responsibility and labors of his position. For several years the board earnestly asked that his position might be elevated from that of a clerk of class 4 to that of a chief of division.

There is probably not another office under the Treasury Department where a clerk classified as a clerk of class 4 has such responsibility, as well as the government or direction of other clerks who are placed under him.

This clerk is in charge of a room with eleven clerks under his supervision, and is, to all intents and purposes, a chief of division.

Corresponding duty and responsibilities in every other Department is rated as a division, and its chief is paid not less than $2,000 per annum.

The present occupant of the position has been twenty years in the office of the

Light-House Board. He entered the service at a compensation of $1,200, and has by good work and faithful service been advanced, grade by grade, to his present position, and it is his advancement and promotion that the board will ask for if the appropriation is made.

He is a veteran of the late war, having entered the service at the age of 17 years in 1861, and served four years, until discharged by reason of the close of the war. Although twice wounded and now suffering from the effects of such long-continued active service in the field, he has never applied for nor is he in receipt of a pension. It is also proposed to increase the pay of the assistant accountant from $1,600 to $1,800 per year, as he must take the place of his chief when the chief is absent on duty or otherwise.

It is proposed to increase the number of clerks of class 2 from two to three, that the contract and title clerk may have a proper assistant, and one who can take his place in his absence without too much detriment to the service. The last four persons who served in that capacity, despairing of promotion in the office befitting their merits, either left the service or easily obtained transfer and promotion in other Bureaus. A person having the needed knowledge of law and also of shorthand and the typewriter is well worth $1,400 per year in any office.

It is proposed that there shall be four clerks at $1,000 per year, and that but eight instead of ten clerks shall be paid $900 per year. This practically involves the promotion of four clerks who have been in the service since 1873-74, and the appointment of two at the rate of $900 each.

The need of an additional force in this office has been practically recognized in the Department by the detail of clerks-varying in number from five down to onefrom other offices. Of late, however, the needs of other Bureaus have reduced the detail down to the minimum, and now the Light-House Board finds it impossible to keep up its work with its present force.

In 1874 a similar condition arose. There were then but five clerks in the office all told. The Department then increased the board's force heavily, but temporarily, paying them from the appropriations for the maintenance of the Light-House Establishment. As the work was brought up the force was decreased until 188, when its present force, twenty-nine all told, was fixed by law. Since then the number of light-houses has been largely increased, the methods of accounting have been much changed, and the clerical work of the office has been almost, if not quite, doubled. Working the force over hours has not been found to be conducive to accuracy, and the board has therefore been forced to the conclusion that if its own high standard is to be kept up it must have an increase to its clerical force.

Commander WILDE. The man we propose to promote is a Mr. Max Hansman; he is a draftsman. I would like to read what I have written about him.

Was

Max Hansmann was born in Washington, D. C., July 24, 1856. Attended private school from eighth to tenth year. Entered the folding room of the House of Representatives as a folder in 1867. Was a page in the House of Representatives during the latter part of the Fortieth Congress. Entered the Treasury Department December 8, 1869, as a laborer in the loan division, office of the Secretary, at $600 per annum. Was detailed to the office of the Light-House Board in July, 1872. Was employed at tracing and drafting when other regular duties permitted. Was promoted to laborer at $720 per annum April 1 1873. Was dismissed in July, 1874, under act of Congress reducing the force in all departments 20 per cent. appointed draftsman in the office of the Light-House Board January 5, 1875, at $60 per month. Detailed to the office of the light-house engineer at Charleston, S. C., for about three months in the spring of 1881, to prepare drawings for the Savannah River lights. Appointed draftsman August 7, 1882, at $1,200 per annum. Sent to London, England, March, 1883, in charge of the Light-House exhibit at the Fisheries Exhibition; returned to the office of the board in September, 1883. Served at the exhibition on one of the international juries. Promoted to draftsman at $1,640 per annum January 14, 1884. Reappointed draftsman at $1,560 in July, 1884. Detailed to the Cincinnati Exposition, 1884, in charge of the Light-House exhibit. Promoted and appointed draftsman at $1,800 per annum February 26, 1887. Duties: In charge of drafting room of the board in the absence of the assistant civil engineer. Have charge and correction of the board's files of charts; plotting and verification of positions of aids to navigation of the Light-House Establishment; preparation of copy for the board's Notices to Mariners, Monthly Bulletin of Changes in Aids to Navigation, annual lists of lights and fog signals, and a part of the matter for the board's annual report.

Mr. MOODY. That is the one you propose to raise from $1,800 to $2,000 a year? Commander WILDE. Yes, sir.