In consonance with the instructions applicable to the GPO bookstore in Chicago, Ill., the joint committee will appreciate receiving a report covering the first 10 months of the Kansas City store's operation. Yours very sincerely, CARL HAYDEN, Chairman. CHICAGO SALES OUTLET Mr. ANDREWSs. Mr. Yates. Mr. YATES. The statement says that the space for the Chicago branch bookstore is not adequate. Tell me what is wrong with it. Mr. BUCKLEY. It is on the 14th floor, Mr. Yates. It is very small. We have had several nasty complaints from customers who have torn their clothing and otherwise Mr. YATES. On what? Mr. BUCKLEY. On cabinets and shelving that were there because the area is simply too crowded and they did not have room enough to get around. The main difficulty is that it is not readily accessible and it is not visited by as many people as undoubtedly would have a chance to do so if it were located down on the first floor. Mr. YATES. If that argument prevails, all the agencies will want to nove to the first floor. I have an office on the 20th floor. It is comfortable. People find their way there. However, one of the Illinois Senators leaves his office on the upper floors occasionally and puts a desk down in the lobby where he can talk to people. Many line up and tell him their problems. How many agencies would be permitted to use the lobby because people are not visiting them on the upper floors? Why should the Superintendent of Documents have preference over other agencies in this respect? Mr. HARRISON. This is a service to the general public that these stores offer. Mr. YATES. The Senator offers service to the general public, too. They come in and give him their views. The Department of Interior, I am sure, would love to have conservation displays on the first floor. I am sure the Army would like to install a display like the one they have installed at the Museum of Science and Industry, showing Vietnamese villages with guns to shoot at them. The Federal Building is much better off when it is not cluttered up. Why not let the public go to the information center and find out where the documents office is? Mr. HARRISON. That is what we do here now. Mr. YATES. What you are saying is that you are not getting enough Lusiness? Mr. HARRISON. No. What we are saying is that we are receiving complaints about inaccessibility. Mr. YATES. Taking an elevator up to the 14th floor? Mr. HARRISON. Yes, sir. It is in the back corridor. It is difficult to ind and it is a small room. There is a Mr. YATES. You want more space? Mr. HARRISON. We want more space. We want to be more readily available. Mr. YATES. I have a staff working in my office and they are complaining to me about wanting to get more space. I talked to the GSA Superintendent there and he said, "I am sorry, Congressman, we don't have more space available.” I am sure that every agency in that building has the same problem. Another Federal building is being built across the street. There is a possibility of getting space in that, isn't there? Mr. HARRISON. Yes, sir. Mr. YATES. I must say that I appreciate the fine service your agency does, but I am afraid that you are too competitive with other agencies. It seems to me that you are starting a precedent here that may have many reverberations through many other agencies. Mr. HARRISON. Actually that was not initiated by us, but by the people out in Chicago themselves. Mr. YATES. Like whom? Mr. HARRISON. We expressed our willingness after GSA, Civil Service, and the general public who patronize this store came to us with these suggestions. Mr. YATES. How many people patronize the store? Mr. HARRISON. What was our total number last year? Mr. BUCKLEY. In 10 months we had 24,310 at the Chicago store. Mr. YATES. That is pretty good. Mr. BUCKLEY. The store is in a very small, narrow room on the 14th floor. The rest of the Federal Information Center as of the 15th of April, of course, will be in the lobby. Mr. YATES. Where in the lobby? Mr. HARRISON. We don't know. They are in the process of revising the layout of the lobby. It is a tremendous lobby, as you know; very beautiful. Mr. YATES. It is marvelous. That is why I oppose cluttering it up. Mr. DARLING. I believe plans have already been made. As of April 15, the GSA Federal Information Center is to be located right in the lobby. We have not seen the plans for it, nor do we know how large it is. We have already been led to believe that there will not be space for our bookstore facility in the lobby itself, but possibly on the second floor level immediately adjacent to the lobby. Mr. YATES. I don't want that lobby to look like the corridors of the Library of Congress with all the stalls in various corridors and open spaces because they don't have enough space for their activities. I think it is a beautiful building. I think the lobby is a beautiful lobby. I would rather see you get additional space in one of the upper floors of the building rather than use the lobby. Mr. HARRISON. We are only interested in providing service. Mr. YATES. I know that you are. I am not criticizing you for your effort. I know that most agencies of the Federal Government in Chicago are looking for expansion of their space because the business of the Federal Government as a whole is increasing. That is all I have, Mr. Chairman. Mr. ANDREWS. Mr. Wyman? Mr. WYMAN. In your appropriation summary you show for fiscal year 1969 an estimate of appropriations of $8,112,000 and receipts to the Treasury of $8 million. There is $112,000 roughly in the deficit side as compared with fiscal year 1968, which was practically a break even. Are there some rates that you charge that are subject to your discretion that can by you be increased administratively without statutory help from Congress to take up this slack? Mr. BUCKLEY. Exactly. Before you came in we did discuss, Mr. Wyman, the fact that a committee has been established to look into the cost factors of the publications to raise those. Mr. WYMAN. Thank you. Mr. BUCKLEY. Thank you. Mr. YATES. Mr. Chairman, may I ask one more question? What is the cost of the plans that you say are already completed for using the lobby on the first floor of the Federal Building? Mr. DARLING. We are not familiar with that. They are GSA plans for the Federal Information Center. This is entirely their project. Mr. YATES. Wouldn't you be charged with this cost? Mr. DARLING. No, sir. Mr. YATES. This is a GSA cost? Mr. DARLING. Yes, sir. Mr. BUCKLEY. Entirely, yes, sir. Mr. WYMAN. That is all. PURCHASE OF STATION WAGON Mr. ANDREWS. The revolving fund is shown on page 154 of the committee print. You want authority to buy a station wagon. What passenger vehicles do you have? Why do you want a station wagon? Mr. HARRISON. We have two passenger cars and one station wagon. They are just inadequate to take care of the transportation that we need. A station wagon would be much better for us because it can be used for dual purposes, not only carrying passengers but carrying materials. We are still, as you know, scattered. We have at 1111 North Capitol Street a large building completely stocked with publications that need to be rushed down to the main book store. We have the warehouse space in Franconia, Va., that has to be contacted back and fourth. I hesitated asking for this. It was recommended to me last year but I didn't ask for it. I was convinced this year that we should no longer put this off. We do need it. It is interfering with our operations, not having some additional help. PROFIT AND LOSS FROM PRINTING OPERATIONS Mr. ANDREWS. Page 32 shows your profit and loss statement from 1954 until 1968 through January 31. That is for the printing and binding operations, Government Printing Office revolving fund. I note that in 1967 you showed a profit of $4,406,239. Through January 31, 1968, you show a loss of $490,734. Can you bring us more up to date on your 1968 operation? Mr. HARRISON. Yes, Mr. Chairman. We had not adjusted our prices to absorb the wage increases of last year. The last rate adjustment we had in 1965. We keep a very careful eye on this by the month. When it became apparent in January that our monthly operations were showing a deficit, we immediately adjusted our prices, and February shows a profit. We expect to continue to wipe out this loss so that we will show a profit for the year's operations. Mr. ANDREWS. Going back to 1965, you show a profit of $1,573,889. For 1966, a profit of $5,887,210. For 1967, a profit of $4,406,239. Then as we stated, 1968, through January 31, a loss of $490,734. Mr. HARRISON. Yes, sir. Mr. ANDREWS. Is that loss due to increased prices, cost of production, and your failure up to that time to increase prices? Mr. HARRISON. Yes, sir. Mr. ANDREWs. You have corrected that situation? Mr. HARRISON. Yes, sir, we have. Mr. ANDREWS. What was your statement in February 1968 ? Mr. HARRISON. It was the first month after the adjustment in our prices. Mr. ANDREWS. Can you explain why your profit rose so high in 1966 over 1965? Mr. HARRISON. Yes. It was because of a fantastic increase in volume. In 1965 our volume was 137 million. The year before it had been 136. We assumed and the only basis that we can use in forecasting prices is on past operations. We assumed that we had hit a leveling-off period. Our prices were adjusted to recover our cost of operation on the basis of around 136-138 million. In 1966 the volume jumped to 175,878,000. This brought additional profits. General Accounting Office questioned us on this very closely. The same thing happened in 1967. We estimated that $175 million, must be the alltime high that we could handle. So our prices reflected this. In 1967 we hit $200 million. That brought about another larger percentage of profit than we had anticipated. Mr. ANDREWS. What do you project for 1968? You had as of January 31, $490,734 loss. Then in February, after you readjusted your prices, you had a profit of $130,000. Mr. HARRISON. $160,000. Mr. ANDREWS. $160,000. What do you project the profit and loss picture to be for 1968, 1st of July? Mr. HARRISON. We are convinced it will be on the black side of the ledger. Mr. ANDREWS. What happens to the profits made by the Government Printing Office? Mr. HARRISON. They are turned into the maintenance of our operation, new equipment. They go into the revolving fund. When the revolving fund reaches a point larger than we think it needs to be, then it is returned to the Treasury. Mr. ANDREWS. Who makes the determination of whether profits are large enough to go into the Treasury" Mr. HARRISON. We do, based on our operating expenses. Mr. ANDREWS. Can you put in the record at this point what you paid into the Treasury from the revolving fund in the last 5 years? Mr. HARRISON. Nothing. Mr. ANDREWS. How long has it been that way? Mr. HARRISON. This was brought about because of the increase in business. The more business you do, the more you have tied up in accounts receivable and materials and work in process. ACCOUNTS RECEIVABLE AND COLLECTIONS Mr ANDREWS. Do you do business only for Government agencies? Mr. ANDREWS. Do you lose any accounts? You shouldn't. Mr. ANDREWS. I think that you told us last year some of them were very slow in paying. Mr. HARRISON. That is right. Our accounts receivable-I don't have the book with me-I guess it is close to $23 million or $24 million today. It is all good. It is just a matter of getting it in. Work in process will run about $35 million, Mr. Chairman. Mr. ANDREWS. What do you do with a delinquent debtor? Mr. HARRISON. We send our Comptroller over to have a nice little talk with him. Usually he comes back with a check. Our accounts receivable as of the 22d of this month, $21,100,000. Our work in process was $33,500,000. We had $10 million in finished work, in the process of being billed. Mr. ANDREWS. Your revolving fund is in pretty good condition? Mr. HARRISON. Very good condition. Mr. LANGEN. Mr. Chairman? Mr. ANDREWS. Yes. Mr. LANGEN. How old are those accounts before you decide that you need to solicit? Mr. HARRISON. A computer report comes out every day on this. What actually happens, we add new bills on the top and get paid from the bottom. It is just a rotating operation. With this much work in process, it requires that sort of an operation. Mr. LANGEN. How much time is there between the top and the bottom? Mr. HARRISON. I would say 30 days probably, or sometimes it might run over that. Some of the agencies are paying very promptly. Sometimes we have a little trouble in getting the bills for our commercial printing. You wouldn't think this is possible, but we have trouble getting the commercial plants to bill us so that we can bill the agency. This ties up the billing to some degree. Mr. ANDREWS. I cannot understand a Government agency getting too far behind because they have money appropriated for this purpose. Mr. HARRISON. They don't. Mr. ANDREWS. All right, gentlemen. If there are no further questions, we will excuse you. Mr. HARRISON. Thank you, gentlemen. It has been delightful to be with you and share some of our problems. Mr. BUCKLEY. Thank you. 92-655-68- -13 |