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(1949 estimate, $42,914,000; 1948 act, Public Law 147, $36,500,000; Second Supplemental Appropriation Act, Public Law 299, $2,000,000; Pending Supplemental, H. Doc. 502, $3,277,000)

(House hearings, Treasury and Post Office Departments Subcommittee, pp. 805 to 829)

(P. 36, line 8)

Page 36, line 8, strike out "$42,000,000" and insert in lieu thereof "$42,914,000" or an increase of $914,000 in the appropriation.

House report

The House Appropriations Committee in its report (Document 1532) of March 9, 1948, relating to the Treasury and Post Office Departments appropriation bill, 1949, reduced the estimate for vehicle service, 1949, in the sum of $914,000. The report in part states:

"The early delivery of trucks ordered in fiscal 1947, and the prompt procurement of trucks for which funds have been appropriated in 1948 and recommended for 1949, will permit the Department to replace more than half its present fleet. The estimate of $42,914,000 for 1949 has been reduced in the accompanying bill to $42,000,000 in anticipation of a reduction in maintenance costs and other economies which can be effected."

Justification

For the fiscal year 1947, the truck miles traveled increased 16,890,667, or 17.18 percent, and the truck hours 2,263,926, or 8.58 percent, as compared with 1946. Since June 30, 1947, rate increases have been granted the Railway Express Co., which actions have increased the volume of parcel-post mail. In 1948, the amount appropriated and estimated supplemental funds required for the year will total $41,777,000. The estimate for 1949 is $42,914,000, an increase of only $1,137,000 or 2.72 percent, which is less than the 1949 estimated increase in mail volume. This does not allow for increases in prices of supplies, materials, and

contract services which have occurred since the estimates were prepared last July.

Because of continued increases in the cost of rents, contract vehicle service, gasoline, and supplies and materials required in the operating of motor vehicles, it is not possible to effect any reduction in the cost of these items. Therefore, the entire cut of $914,000 has been applied to personal services and reduces the estimate of paid employment as follows:

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Notwithstanding a constantly increasing volume of mail, if the reduction is not restored the service will be required to handle it with less employees in 1949 than provided for in the appropriation for 1948. This does not appear to be possible inasmuch as there is every indication that the 1949 volume will be greater than that of 1948.

The following table shows the number of trucks per maintenance employee in the service:

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To take care of the 1,820 new trucks added to the fleet in 1948 and 1949 there should be added 158 employees. The Department is requesting 90 and will endeavor to get along with that number.

Increased in authorized positions, $273.000.-Presently, 10 units, Austin, Tex.; Arlington, Va.; Evanston, Ill.; Long Beach, Calif.; Oklahoma City, Okla.; Tacoma, Wash.; Wichita, Kans., and Stockton, Calif., are on a space basis in public garages and the available space is wholly inadequate to house and service the vehicles. Therefore, provision is being made to obtain quarters to be used for the housing and servicing of Government-owned vehicles. Presently, no personnel is assigned to these offices and 40 of the new positions requested are for assignment at these units. The 90 additional employees will be required to operate, service, and maintain the 1,820 new trucks purchased in 1947, all of which will be in operation in 1949.

Vacancies filled.--The reduction in this item will adversely affect the service because it will not be possible to fill vacancies as they occur and, therefore, the service will be affected and the trucks will not receive adequate attention to assure continued operation.

Substitute service.-All indices show a constantly rising volume of mail to be handled and it is necessary that we have an adequate substitute force to fill during peak periods and also to cover annual and sick leave and compensatory time of regular employees and substitutes. Without an adequate force of substitutes it is impossible to transport the mails promptly and expeditiously. Transportation of carriers.-Page 20 of the House report, No. 1532, under the heading "Carfare and bicycle allowance" states that the committee desires the 74288-4817

Department to use the vehicle service to transport the carriers to their routes in order to reduce payments to public-transportation systems. The Department uses this service wherever practicable. No provision is made in this estimate or the House bill for additional service of this type, consequently should such a program be extended it will be necessary to request funds in addition to those included in this estimate for 1949.

Mr. BUCKLEY. In connection with our statement on the vehicle service, Mr. Chairman, the superintendent of this Division is off sick. Mr. Gehman is the assistant superintendent, and he will do the best that he can. I will try to help him.

Senator REED. Will you proceed, Mr. Gehman?

Mr. GEHMAN. Mr. Chairman and members of the committee: This is my first appearance before your committee.

The estimate for the vehicle service for fiscal 1949 was $42,914,000. Present indications are that very close to that figure will be required to complete the current fiscal year.

VOLUME OF PARCEL POST ATTRIBUTED TO INCREASE IN EXPRESS RATES

The upward revision of express rates during the current fiscal year have caused a vast increase in the volume of parcel post not contemplated at the time the estimates were prepared. In fact, as of the present, the parcel-post problem has exceeded all expectations, and the Department is besieged with numerous requests for additional vehicle-hire authorizations at high rates to cope with the situation. At many points the volume is so great that the limited space in post offices for parcel post necessitates prompt delivery of the parcel post to avoid congestion.

1948 APPROPRIATION

Senator MCKELLAR. What was your appropriation last year? Mr. GEHMAN. The vehicle service appropriation last year was $39,404,000.

EFFECT OF PARCEL-POST VOLUME ON OTHER ITEMS

Every effort is exerted to move the parcel-post mail as expeditiously as possible. The parcel-post situation naturally increases our transportation service between depots and post offices and between post offices and stations and branches.

This increases the need for more personnel to haul the mail, more gasoline, maintenance, and a greater amount of truck service, both contract and Government owned, for the delivery of mail.

Moreover, the Railway Express strike during the latter part of 1947 and severe snowstorms during the past winter, particularly along the eastern seaboard, resulted in unforeseen additional demands upon the motor-vehicle service. Not only was truck service retarded because of inclement weather conditions but our equipment was affected adversely mechanically. Snow and ice results in much wear and tear on equipment, hence the need for more servicing and repairs.

CONTRACT VEHICLE SERVICE

It should also be stated that it is becoming increasingly difficult to secure vehicles on a contract basis, and rates show a continual upward trend.

The cost of supplies, materials, and labor are likewise mounting, due, undoubtedly, in part to heavy demand.

Under present conditions, it is necessary to use the Governmentowned equipment long hours, which adds to wear and tear and to the repair bill; and yet it is more economical to make repairs than to pay the unprecedented high rates demanded for contract equipment. Senator REED. About how many of your vehicles are on a contract

basis?

Mr. GEHMAN. The cost of screen wagon service amounts to about $1,539,775. There are about 2,348 annual contracts, costing about $2,291,448. There are about 4,950 quarterly contracts costing about $4,361,330.

QUARTERLY CONTRACT

Senator REED. What is the quarterly contract?

Mr. GEHMAN. That is a contract by the hour. The postmaster gets his bid every quarter for the necessary equipment to augment the equipment on an annual basis and also the Government-owned equipment.

Senator REED. Who furnishes the personnel to handle that equipment?

Mr. GEHMAN. The contractor furnishes the vehicle and we furnish the driver.

Senator REED. You furnish the driver?

Mr. GEHMAN. Yes, sir. The contractor furnishes the vehicle and pays for all operating expenses.

ANNUAL CONTRACTS

Mr. BUCKLEY. In the case of an annual contract, we contract for the full time of a truck, 7 or 8 hours a day. The quarterly contracts provide for short days where an office needs a truck for 3 to 5 hours a day.

Senator HAYDEN. That would vary with the time of year, would it not? You would need trucks at peak periods such as Christmas. Mr. BUCKLEY. That is right.

Mr. GEHMAN. That would be true of the Easter season, Mother's Day, and periods of that kind.

SPECIAL-DELIVERY VEHICLES

We have an item of special delivery automotive equipment; that is for the delivery of special-delivery mail at the rate of 75 cents an hour. That rate is fixed by Public Law 134. That runs close to $5,000,000.

The total item for transportation of things run around $13,185,000.

SITUATION RESPECTING INCREASE IN EXPRESS RATES

Senator HAYDEN. When did the Interstate Commerce Commission increase the express rates?

Mr. GEHMAN. I believe that was in the latter part of 1947.
Mr. BUCKLEY. They have raised those rates three times.

Mr. GEHMAN. As I recall it, the minimum rate now is about 74 cents. I think the Postmaster General testified the other day on that

matter. That is the rate for 1 pound within an area of 150 miles, I believe.

Senator HAYDEN. Probably the best cure that we could apply to this problem at the moment would be to raise the parcel-post rates and get them up on a basis where they would be equal to the express rates. The business would then be divided in the way it was before.

Mr. GEHMAN. I believe the Postmaster General has indicated that a revision of the parcel-post rates is being considered and that recommendations to that effect have been made.

Senator HAYDEN. The express company can go to the Interstate Commerce Commission and get three increases without any trouble at all, whereas the Post Office Department cannot get even one.

AMOUNT OF HOUSE REDUCTION

Mr. GEHMAN. The House Appropriation Committee, in its report, Document 1532, dated March 9, 1948, relating to the Treasury and Post Office Departments appropriation bill, 1949, reduced the estimate for vehicle service, 1940, in the sum of $914,000.

TRUCK MILEAGE, 1947 OVER 1946

For the fiscal year 1947, the truck miles traveled increased 16,890,667, or 17.18 percent, and the truck hours 2,263,926, or 8.58 percent, as compared with 1946.

Since June 30, 1947, rate increases have been granted the Railway Express Co., which actions have increased the volume of parcel post mail.

COMPARISON OF FUND REQUIREMENTS, 1949 WITH 1948

In 1948, the amount appropriated and estimated supplemental funds required for the year will total $41,777,000. The estimate for 1949 is $42,914,000, an increase of only $1,137,000 or 2.72 percent, which is less than in 1949 estimated increase in mail volume. This does not allow for increases in prices of supplies, materials, and contract services, which have occurred since the estimates were prepared last July. Because of continued increase in the cost of rents, contract-vehicle service, gasoline, and supplies and materials required in the operation of motor vehicles, it is not possible to effect any reduction in the cost of these items.

APPLICATION OF REDUCTION

Therefore, the entire cut of $914,000 has been applied to personal services and reduces the estimate of paid employment as follows: New positions, man-years, 97.5; amount $273,000.

Vacancies, man-years, 119.2; amount $341,000.
Substitutes, man-years, 130; amount $300,000.

The total in man-years is 346.7, and in amount is $914,000.

The net personal services in 1948 were 6,281.1 man-years. The estimated man-years for 1949 are 6,220.5, representing a decrease of 60.6 man-years.

Notwithstanding a constantly increasing volume of mail, if the reduction is not restored, the service will be required to handle it with

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