Mr. BUCKLEY. Yes, sir.

Mr. ANDREWS. You turn that into the Treasury of the United States?

Mr. BUCKLEY. That is right, sir.

OVERALL INCREASE REQUESTED

Mr. ANDREWS. You are requesting a total of $7,447,700 for 1968, as compared with $6,155,900 for 1967, which is an increase of $1,291,800, including the supplemental of $1,198,000.

Mr. BUCKLEY. The increase including the salary supplemental of $93,800 is $1,198,000. This does not include the requested supplemental which is now pending.

NUMBER OF POSITIONS AND EMPLOYEES

Mr. ANDREWS. How many people do you have on your payroll? Mr. BUCKLEY. 492 as of today.

Mr. ANDREWS. Are you requesting additional positions for 1968? Mr. BUCKLEY. We have included five positions for the established programs.

Mr. ANDREWS. You are requesting five new positions.

Mr. BUCKLEY. Yes, we have five new full-time positions.

Mr. ANDREWS. That will give you a total, if allowed, of 497. Mr. BUCKLEY. We have 537 as our authorized total and have filled 492 as of today.

Mr. ANDREWS. How many vacancies?

Mr. BUCKLEY. 537 is authorized.

Mr. ANDREWS. 537 and you have 492?

Mr. BUCKLEY. There are 45 vacancies, sir.

NEW POSITIONS REQUESTED

Mr. ANDREWS. What will these new people do, these five you are requesting?

Mr. BUCKLEY. We have established the position of an operations

manager.

Mr. ANDREWs. At what salary?

Mr. BUCKLEY. It will be at the grade 12 level. We have a financial manager at the grade 13 level, and assistant financial manager at grade 12, a sales planning coordinator at grade 12 level, the manager of our bookstores at the grade 9 level.

Mr. ANDREWS. Why haven't you filled the 537 authorized positions? You have 45 vacancies, you only have 492 on the payroll. Is it because you cannot get them, or you do not need them?

Mr. BUCKLEY. We could use the complete 537, but we have never been completely filled at any time. We would not as of today be able to get 45 people to meet our particular needs for those vacancies.

DETAILED JUSTIFICATION OF ESTIMATE

Mr. ANDREWS. We shall insert the statement supporting the 1968 estimate for salaries and expenses, Office of Superintendent of Docu

ments.

(The information follows:)

The Office of the Superintendent of Documents operates under a separate appropriation which provides funds for the performance of the four functions with which the Office is charged by law. They are (1) the sale of Government publications produced by the Government Printing Office; (2) the compilation of catalogs and indexes of Government publications; (3) the distribution of Government publications to designated depository libraries; and (4) the mailing for members of Congress and other Government agencies of certain Government publications authorized by them.

As is true of other operations of the Government Printing Office, all of the functions required of the Office of the Superintendent of Documents are of a service nature and there is no control over the volume of work that we are called on to perform.

PUBLICATION SALES

The only function which produces revenue is the sale of Government publications, from which we realized income last year for return to the U.S. Treasury of $7,642,000, an amount which exceeded our appropriation by approximately $1.812,000. Our total appropriation for the current year, including salaries supplemental of $93,800 is $6,249,700. Based on sales to date, which are about 8 percent ahead of the comparable period last year, we expect the income from the sales program for fiscal 1967 to reach $7,800,000, which would exceed the entire 1967 appropriation for all programs, by approximately $1,550,000.

For fiscal year 1968, we must provide for a continuation of the steady growth in the demand for the purchase of publications which has been evident in every recent year. We know, also, that there must be a continued expansion of the depository library program as authorized by the Depository Library Act of 1962. To the limit of our available space and facilities, we must also be prepared to meet the heavy demands made on us by other agencies and the Congress for the mailing of publications, a demand which is continuously increasing and which we have not always been able to meet as fully or as promptly as desired.

BRANCH SALES OUTLETS

As part of the President's Program for Improving Government Service to the Public, and with the approval of the Joint Committee on Printing, we are inaugurating during the current year as an experiment, two retail branch sales outlets for Government publications in Chicago, Illinois and Kansas City, Missouri. There has been an overwhelming response to the first branch outside Washington, which was opened in Chicago on March 21, 1967. The latest branch within the local area, situated in the new department of State Building, opened on January 11, 1967 and has also attracted steady patronage. If the present interest in this service continues, we should be prepared in fiscal 1968 to participate along with the General Services Administration and Civil Service Commission, in the extension of this decentralized publications sales service as an important part of the Government Information Centers being established in other principal cities throughout the United States.

MODERNIZATION

Several of our work programs are overdue for major modernization. The ZIP Coding of the addresses on the 1,300 mailing lists that we must maintain, which total between 2,500,000 and 3,000,000, is only about 60 percent completed, despite the special effort we are making. To complete this important task by December 31, 1967, we will require the rental of necessary equipment and the hiring of temporary personnel. Funds for this are included in our request.

We have also reached the point where we could realize undoubted advantages through improved service and ultimately, a reduction in cost, by converting one or more of our largest mailing lists to magnetic tape, and programming for updating and addressing. Such an operation would also accomplish the ZIP Coding simultaneously. Our tentative plans for 1968 call for this improvement for, at least, our single largest mailing list of 875,000 names. In this estimate we have included $225,000, which would enable us to contract for the necessary services and to purchase the additional mailing machine that this conversion would require.

The total requested appropriation for 1968 is $7,447,700, which is greater than that for 1967 by $1,198,000. With public interest in Government publications

greater than ever before, there is every reason to anticipate a continued increase in sales during 1968 which will be comparable to that of every recent year. Based on this, we expect that our income for return to the Treasury will reach $7,900,000 in 1968, which would exceed the requested appropriation by about $450,000, despite the inclusion in this appropriation of a number of non-recurring expenses necessitated by the need for modernization of our programs.

INCREASES BY MAJOR PURPOSES

Of the requested increased amounts over 1967, $436,231 would be applied to the continuation of the established programs of publications sales, compilation of catalogs and indexes of Government publications, and distribution of publications for other Government agencies and members of Congress. Operation of the depository library distribution program would require $353,700 of the increase. The remaining $408,069 would be used to finance the completion of the ZIP Coding operation, conversion of the list of 875,000 names to an electronic data processing system, continued operation of the two experimental retail publications sales branches in other cities and provision for expansion of this service to not more than three additional cities in 1968, the determination of which would be made on the basis of the additional Government Information Centers to be established by General Services Administration and the U.S. Civil Service Commission.

A long-overdue modernization of a different nature has resulted, during the current year, in a reorganized and improved top administrative structure to better carry out the heavy work programs of the Office of the Superintendent of Documents. With the approval of the Public Printer, this is the first such reorganization since 1947, despite the tremendous changes and growth in all of our functions since that time. The new branch-type organization provided, has combined related work of a number of sections, distributed the span of control more equitably at the higher levels and has permitted the separation of work production operations from complementary staff functions. The five new positions established by the Division of Personnel to accomplish these goals, represent $64.365 of our requested increase of $352,314 for Personnel Compensation.

Completion of the ZIP Coding of our mailing lists required by the Post Office Department will necessitate the hiring of temporary clerks, to the equivalent of 16 full-time employees, for this task. Provision for the expansion of retail sales outlets will require 10 additional bookstore clerks, which are also included in this estimate.

INCREASES BY OBJECTS OF EXPENSE

The part-time program utilizing W.A.E. employees for not more than two nights each week, which we have had since 1951, has proved so effective that a major portion of several types of work production are now handled largely by this group. All of those presently employed are clerks or clerk-typists, but there is a critical shortage of personnel having the physical qualifications to perform the heavy work such as handling filled mail bags, trucking loads of publications, and other heavy lifting. We have included in this estimate $83,500, which would enable us to hire part-time laborers to the full-time equivalent of 17 employees. We can provide better service if we are able to overcome existing backlogs of work, by supplementing the W.A.E. force to this extent.

The limitation of $1,500 for Travel that has been included for many years in our appropration, is no longer adequate to permit us to train personnel for bookstore operations in branches established in other cities, or to provide for setting up and initially stocking these branch outlets. With the anticipated increase of our retail sales operations through bookstores in other cities and the continuing responsibility for investigating depository library operations for an increasing number of depositories, we have requested an additional $8,500 for Travel, with the limitation raised to "not to exceed $10,000."

The requested increase under "Rent, Communications and Utilities," includes the rental cost of six additional Recordak Microstrip Readers needed for completion of the ZIP Coding of our mailing lists by December 31, 1967.

The estimates for Printing and Reproduction show an increase of $425,100 over the amount for 1967. The principal use of this part ($325,000) of the appropriation is for supplying the publications required for distribution to the deposi tory libraries. It is in this area that we required the use in fiscal 1967 of a portion of the Reserve for Contingencies plus a supplemental appropriation of $200,000. We shall be required to distribute this year more than 10,000,000 copies

of publications to these depositories. There have been 63 new libraries designated since February 28, 1966 and we estimate an additional 42 during fiscal 1968. There are now 903 depositories and the ultimate number possible under the present law is about 1,350. Interest in the depository program is also greater than we have ever noted before and I am sure the inquiries which we are receiving, along with the Offices of virtually all members of Congress, are indicative of this interest. More and more, public, college and university libraries are realizing that Government publications are indispensable in serving their patrons and the depository collection is increasingly recognized as a valuable resource of the libraries participating in this program.

While the number of depository libraries and the publications printed by the Government Printing Office which must be distributed to them continue to increase, even beyond our expectations, we are also planning to continue the steady extension of the depository program to include certain non-G.P.O. publications of other Government agenices, also provided for by the Depository Library Act of 1962. Printing costs of these publications are borne by the issuing agencies, with the cost of necessary postage and mailing supplies defrayed by our appropriation. During the current year, we have added the publications of the Department of Labor to those of the Department of the Interior and Census Bureau that we were already distributing. Our estimate for 1968 includes funds for an additional 150,000 non-G.P.O. publications to be distributed during that year. Tentative discussions have been held with several departments and agencies and we are now hopeful that one additional executive department and possibly an independent agency as well, can be participating in the program during fiscal year 1968. Under Printing and Reproduction we also have included a request for an increase of $18,600 for printing the Monthly Catalog of United States Government Publications, a necessary requirement of our Office for which the amounts allotted in previous years have not been sufficient to cover the cost.

Finally, $81,500 of the estimate for Printing and Reproduction would enable us to accelerate the schedule revising the 47 subject price lists so that each list could be revised at least once a year. It would provide also for sufficient additional issues of the List of Selected Government Publications during the year to overcome a situation where there is insufficient space in the present 26 issues to list promptly as many of the newly-issued publications as should be listed. These are both areas in which our service to the public can and should be improved. The list in question is, undoubtedly, the most effective means we have of stimulating a greater demand for Government publications.

Estimated requirements for Supplies and Materials, in addition to those increases which normally accompany the growth in work programs generally, include also $10,000 which will be needed to provide the stencils or address plates to be used in the completion of the ZIP Coding operations.

In making preparation for the anticipated establishment of other branch publications sales outlets outside Washington in 1968, we expect to assume the cost of the equipment and fixtures necessary for those branches. Our request for this item for the three additional branches estimated in 1968 is $19,800.

Other requests for equipment are non-recurring items. In order to realize the full advantages of our rented publications-storage warehouse located near the Government Printing Office, we need two electric trucks, which will cost $15,000. The amount of $18,900 requested for replacement and addition to existing addressing operations would be used to replace obsolete and worn-out dick strip and envelope addressing machines, and to acquire two additional tying machines. The $35,000 provided for purchase of a new and improved mailing machine to utilize the labels from the magnetic tape print-out is part of the overall-cost estimated for the new program of converting mailing lists to an EDP System.

The foregoing requested increases do not affect the need for or value to the Office of the Reserve for Contingencies which has been included in our appropriation in recent years. Although it has been necessary to use all of the $200,000 provided this year, in other years we have had to utilize only a portion of it, if any. Except for the current year, this reserve has proved adequate and extremely effective in avoiding the necessity for an amended budget. Our 1968 estimates have been prepared with the assumption that the amounts requested should avoid the use in that year of the reserve of $200,000, which is again included in our requested appropriation.

78-653-67-41

Mr. HARRISON. Yes, sir.

Mr. ANDREWS. How do you derive these profits? Explain that for us briefly.

Mr. HARRISON. The law says that we shall not operate at a loss and at the same time we should not make a profit. It is a kind of tightrope to walk. As long as we are prohibited from operating at a loss we attempt to make a small profit which enables us to keep our plant modern. We do not include in your congressional appropriation, as you know, money for replacing equipment in our plant. We do this out of the earnings that we are able to make.

Mr. ANDREWS. Give us an example of a Government agency ordering printing. You do the printing and then send them a bill for it. Mr. HARRISON. Yes, sir.

Mr. ANDREWS. That bill reflects a modest profit.

Mr. HARRISON. Generally about 112 percent.

Mr. ANDREWS. These profits that we are talking about come from printing work that you do for Government agencies and the Congress.

Mr. HARRISON. That is right.

Mr. ANDREWS. The Congress printing bills are paid from this ap propriation here under the title "Printing and binding," for which you are asking in 1968, $26,700,000, to pay for the printing to be done for Congress in 1968 and to pick up the deficits in prior years. Mr. HARRISON. Yes, sir.

Mr. ANDREWS. What becomes of these profits?

Mr. HARRISON. These profits become a part of the revolving fund, the working capital fund. They are used to replace equipment and keep our plant as modern as possible.

CONDITION OF GPO REVOLVING FUND

Mr. ANDREWS. As of today or some recent date, what is the status of the revolving fund? It is on page 143.

Mr. HARRISON. Our revolving fund is sound, sir. The profits so far this year runs about 2.69 percent again because of the increase in volume which has flowed into the plant.

Mr. ANDREWS. What was the total assets of the fund in 1966, actual? Was it $86,385,000?

Mr. HARRISON. Yes, sir, that is actual.

Mr. ANDREWS. You estimate in 1967 it will be $100,760,000?

Mr. HARRISON. Yes, sir.

Mr. ANDREWS. And in 1968 you estimate $101,216,000.

Mr. HARRISON. Yes, sir.

Mr. ANDREWS. Are you asking for additional funds for the revolv ing fund for this year?

Mr. HARRISON. No, sir.

Mr. ANDREWS. So then the committee last year was not too far off base when they gave you $15 million rather than the $20 million!

Mr. HARRISON. That is right, because of this increased earning which the increased volume brought about. It enabled us to keep our head just above the water.

Mr. ANDREWS. Are there any questions on printing and binding?
Mr. WYMAN. No, Mr. Chairman.