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time on a standard 11-inch typewriter the retail list prices and taxes are as follows: Woodstock.

Tax_

Royal___

Tax

L. C. Smith.

Tax_ Underwood. Tax_ Remington.

Tax_

$142.50 8.55 142.50

8. 55 147.50

8.85

149.50

8.97

149.75

8.99

It is the opinion of this Bureau that the price for each model of typewriter be arrived at by taking the lowest published retail list price for each model of all the companies who desire to sell typewriters to the Federal Government, deduct 30 percent, and add the tax applicable to the retail list price used. While the retail list price might vary during the fiscal year, the price which we would be authorized to pay would be limited to 30 percent off the lowest published retail price of any of the participating companies as determined as of the date of purchase. Accordingly, all companies could sell typewriters at this price if they so desired. For example, on a standard 11-inch typewriter at the present time the lowest retail price is $142.50 and the tax is $8.55. Using the above method the price would be $108.30, which would be arrived at by deducting $42.75 from $142.50 and adding $8.55. If this method is followed I believe that the Government will assure itself of reasonable prices, would be able to make multiple awards, and the typewriter companies would receive a fair and reasonable price in line with the type of business involved.

If the committee thinks favorable of this suggestion, this Bureau will be glad to submit the appropriate language to be included in the Appropriation Act which will make it effective.

Very truly yours,

CLIFTON E. MACK,

Director, Bureau of Federal Supply.

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Hon. GUY CORDON,

TREASURY DEPARTMENT,

BUREAU OF FEDERAL SUPPLY, Washington 25, D. C., April 14, 1948.

Chairman, Subcommittee on Treasury and

Post Office of the Senate Appropriations Committee,

United States Senate, Washington, D. C.

MY DEAR SENATOR: Further reference is made to my letter of April 14, 1948, in connection with the language included in the Treasury and Post Office Departments appropriation bill, 1949 (H. R. 5770), relative to typewriting machines. In the last paragraph of my letter I stated that this Bureau would be glad to submit appropriate language to be included in the bill which will make effective the proposal outlined in my letter. Accordingly, the following is submitted:

On page 22 delete the language beginning on line 11 and ending on line 16, as follows:

"In the event the Director of Bureau of Federal Supply is unable to furnish any such agency with suitable typewriters of special type out of stock on hand, he may purchase such manually operated machines at the average list price of the industry less 30 per centum out of funds specifically appropriated for that purpose."

In lieu thereof insert the following:

"In the event the Director of the Bureau of Federal Supply is unable to furnish any such agency with suitable typewriters out of stock on hand, he may purchase such manually operated machines at the lowest published retail list price for any such typewriters offered for sale to the Federal Government less 30

per centum to which shall be added the amount of Federal excise tax applicable to the lowest published retail list price out of funds specifically appropriated for that purpose."

Very truly yours,

CLIFTON E. MACK,

Director, Bureau of Federal Supply.

BUREAU OF INTERNAL REVENUE

STATEMENT IN REFERENCE TO NUMBER OF PERSONS ON CIVIL SERVICE REGISTERS FOR DEPUTY COLLECTOR AND AUDITOR'S POSITION

(See page 64)

The Washington office of the Civil Service Commission does not have readily available the number of eligibles on registers established as the result of deputy collector-auditor examinations, but has obtained the following information from the regional offices indicated.

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The registers now in use were established as the result of examinations given in July, August, and September, 1947, the dates varying with the regions. The Bureau is informed that preparations are now being made to reannounce the examination at an early date in those regions in which the registers are depleted. Senator REED. If there are no further statements to be made, the hearing is adjourned.

(Whereupon, at 1:30 p. m., April 9, 1948, the subcommittee adjourned to reconvene at 10 a. m., Monday, April 12, 1948.)

74288-48- -12

TREASURY AND POST OFFICE APPROPRIATIONS

BILL, 1949

MONDAY, APRIL 12, 1948

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D. C.

The subcommittee met at 10: 10, pursuant to recess, Senator Cordon (chairman) presiding.

Present: Senators Cordon, Bridges, Knowland, McKellar, Hayden, and Green.

Senator CORDON. The hearing will come to order.

POST OFFICE DEPARTMENT

STATEMENT OF J. M. DONALDSON, POSTMASTER GENERAL, ACCOMPANIED BY V. C. BURKE, FIRST ASSISTANT POSTMASTER GENERAL; C. N. BRUCE, ADMINISTRATIVE ASSISTANT; AND A. B. STROM, COMMISSIONER OF THE BUDGET

GENERAL STATEMENT

The committee has requested the Post Office Department to present its request for any changes that it feels should be made in the appropriation items as passed by the House.

Mr. Donaldson, the committee will be glad to hear from you.

I have before me your letter of March 24 which will be made a part of the record at this time.

(The letter referred to is as follows:)

Hon. GUY CORDON,

OFFICE OF THE POSTMASTER GENERAL,
Washington, D. C., March 25, 1948.

Chairman, Subcommittee in Charge of the Treasury and Post Office Appropriation Bill, United States Senate.

DEAR SENATOR: I have your letter of March 9, 1948, concerning changes which I deem absolutely necessary in the Treasury and Post Office appropriation bill for 1949 as reported to the House of Representatives.

There are transmitted herewith mimeographed copies of justifications of each appropriation item reduced by the House committee. These have been arranged in two groups; first, those for which restorations and changes are requested, and, secondly, those for which restorations are not requested for the present.

ANALYSIS OF REDUCTIONS

The 1949 estimates of appropriation prepared in August 1947 and submitted to the Bureau of the Budget in September 1947 amounted to $1,714,376,550, of which $1,710,644,500 was approved by the Bureau of the Budget, a reduction of

$3,732,050. The House Appropriations Committee has approved $1,691,269,250, a reduction of $23,107,300 from the original estimate and $19,375,250 from the estimate approved by the Bureau of the Budget.

The following is a summary of the budget requests, the bill as reported by the House committee, restorations, and other changes requested and the amount of the bill if such requests are granted:

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Of the $19,375,250 reduction by the House, restoration of $10,213,850 is requested. There has been added to this amount $500,000 for modern mechanical postal devices and mechanized devices for separation of mails not requested in the estimate as submitted to the Congress. The proviso in the bill requiring that this amount shall be available exclusively for the purposes designated has the effect of reducing the amount available for necessary postal equipment by the amount of $500,000. Therefore, it is requested that a total of $10,713,850. be added to the bill as reported to the House.

The reductions for which restoration is not requested amount to $9,161,400. A further reduction of $79,200 is suggested since it recently has been decided that sea post service cannot be resumed in 1949. This makes a total of $9,240,600 for which the Department is not requesting a restoration at this time.

The net result is a reduction of $8,740,600 from the estimate of $1,710,644,500. submitted to the Congress, instead of the $19,375,250 proposed by the House committee.

REVENUES AND VOLUME OF BUSINESS

The Department's estimate for 1949 of $1,710,644,500 was based on revenues. of $1,384,732,000 and a volume of 39,972,960,000 pieces of mail matter and 882,297,000 special service transactions. The 1949 estimates represented slight gains over estimates of $1,368,905,000 in revenue, 39,132,350,000 pieces of mail matterand 856,098,000 special service transactions for 1948.

The revenues for the first 7 months of the fiscal year 1948 show a gain of 11.52 percent over the same period for 1947, and the indications are that instead of revenues of $1,368,905,000 for 1948, they will exceed $1,400,000,000, or approximately $16,000,000 more than the estimates submitted for 1949. If there is a 3-percent revenue gain in 1949, which normally is not excessive, the revenues will amount to $1,442,000,000, instead of the $1,384,732,000 upon which the estimates were based.

It now appears that it will be necessary for the Department to request supplemental appropriations in 1949 for certain items after the trend in revenue and volume of mail can be more accurately determined. The report, No. 1532, indicates the Congress will grant supplemental appropriations when the actual needs of the service are better known.

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