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commission with respect to the methods of handling and filing of correspondence in the several offices as rapidly as practicable; the other to carry out the recommendations with respect to other matters which have been brought to his attention. The Secretary also states that in his opinion these reductions can be made without discharging any competent employee, provided the law is repealed which forbids details, since the natural separations from the service run from 7 to 10 per cent per year and it will take some time to make the installation. This conclusion is supported by the experience of the Treasury Department where the forces have been gradually reduced in this manner. An excerpt from the letter of the Secretary of War

follows:

As will be disclosed by these reports, the work of the commission has been extremely thorough and their investigation can not fail to be of immense benefit to the administration of these bureaus of the War Department. Their recommendations include not only the substitution of new and superior systems of administration for methods that are less economical and effective, but their investigation has in some instances disclosed wasteful and improvident details. Their investigation into The Adjutant General's Office in particular reveals that the methods of handling a large part of the correspondence of that office are antiquated and extremely complicated, and they estimate that under simpler and more modern methods a saving of over $300,000, or over 38 per cent, of its appropriations for employees' salaries can be ultimately saved to the Government. The commission recognizes that the work is done promptly and accurately, but finds that the cost is unnecessarily high, if not extravagantly so, and that great economies are possible without any loss of efficiency.

With the essential recommendations I am in hearty concurrence, and I am glad to say that most of the chiefs of the respective bureaus also concur as to these essentials. Some of the proposed reforms have already been introduced in some of the bureaus, and the experience thus achieved has been and will be most helpful in making the introduction general. A portion of the recommendations I am establishing at once by order. As to the remainder I have appointed a committee, taking representatives from the War Department and also from the commission, who will study further the question of applying the remainder of the recommendations as to which there is some difference of opinion in some of the bureaus.

After considering the reports which the various bureau chiefs concerned have made upon the recommendations of the Economy Commission, and conferring personally with these bureau chiefs, I feel satisfied that large economies can be effected in the War Department within the next two years. On the other hand, it must be remembered that the prompt and satisfactory manner in which these bureaus, as a general rule, handle their business must at all hazard be maintained, and it may well be that the total savings estimated by the commission may be fixed at too high a figure. I am quite clear that such savings can not be accomplished in the first year during which the proposed reforms are instituted. The experience of the Corps of Engineers in making similar reforms in their field offices has indicated that the extra effort of instituting the changes postponed the realization of the full amount of the economies until the second year.

I also believe that in making any such drastic changes as are contemplated in these reports, involving entirely new methods and a large ultimate reduction of the clerical force, a portion of the savings accomplished should be devoted toward increasing the salaries of the remaining clerks upon whom the accomplishment of the reform devolves. In no other way can the morale and esprit de corps necessary to realize the full benefit of the change be inspired in the personnel of the office. Finally, I do not believe that it will be necessary to accomplish the necessary reduction by arbitrarily dismissing any of the present force. The losses in the personnel of the War Department through deaths, resignations, discharges, and transfers amount to nearly 10 per cent of the force annually, and during the past year there has been accomplished a reduction of the entire classified force of 5 per cent. I believe that the same policy of taking advantage of this natural reduction could and should be carried out in the future in accomplishing the changes recommended by the commission.

In this connection, however, I desire to call especial attention to the provision of law which prevents details from The Adjutant General's Office to other offices or bureaus of the War Department. That provision of law serves no useful purpose of administration. It simply serves to make The Adjutant General's Office a favored

bureau whose employees at times of idleness can not be called upon for service in other bureaus where assistance may be greatly needed. I have previously recommended its repeal to Congress, and the same recommendation is now made by the Commission on Economy and Efficiency. Its repeal would greatly facilitate the reorganization of the War Department along the lines proposed and would help to minimize the inevitable stress and difficulties of instituting these salutary changes.

CHANGES IN METHODS WHICH WOULD EFFECT SAVINGS IN ONE OFFICE.

The direct savings which it is thought the recommendations pertaining to this office would effect, when computed on the basis of expenditures for the last part of the fiscal year 1912 and the first part of the fiscal year 1913, are:

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The estimated saving in printing represents the net decrease, after taking into consideration the saving to be effected by reducing the quantity of printing and the effect of abolishing the printing section in The Adjutant General's Office. The savings in salaries are set forth in a table in the report, which shows the present number employed, the number which would be required after up-to-date methods had been installed, and the number which might be dispensed with. For example, in the Mail and Record Division 105 clerks are employed, whereas, in the opinion of the commission, 35 are adequate; in the Tenth Street Division 124 clerks are employed, whereas with the adoption of up-todate methods it is thought 96 would be adequate; in the Publication Division 16 are employed, whereas 6 are thought to be a sufficient number to transact the business efficiently.

COMMENT OF COMMISSION ON THE ADJUTANT GENERAL'S OFFICE.

Commenting on the subject, the commission commends the work of the former Adjutant General for his achievement of bringing order out of chaos in the personnel records of the Army. In relation to the other branches of the work, however, the commission finds:

Force so organized as to make impossible economic handling of work.The office force was found to be widely scattered, and the personnel of the different units of organization so located that the work can not be done to advantage. As an illustration of defective organization, it may be stated that the work of subdivisions is so arranged that a constant interchange of communication between these subdivisions through the medium of an elaborate messenger service is necessary. The course taken by the average case, due to the bad organization and obsolete methods, necessitates 40 operations in the Mail and Record Division, besides 39 operations in those divisions which have to take administrative action in the case, a total of 79 operations in connection with the handling of the average piece of incoming correspondence from the time it is received in the office until the reply is prepared. Substantially all letters received in the office are

briefed on the back of the first fold, and the purport of each written on index and record cards, on which work nearly 60 clerks are engaged all of their time. In respect of outgoing correspondence this card recording is carried to a much greater extent. A verbatim card record is prepared of every communication, at an expense, of course, very much greater than that sustained in regard to incoming correspondence. Under this practice substantially all outgoing letters and indorsements are written twice; the first copy, written on the record card, frequently by hand, constituting the record of outgoing correspondence, and the second the final draft of the letter in form for transmission to the addressee. These same handicaps exist in each of the divisions and subdivisions, a consolidation of which would greatly simplify the work conducted therein.

Office methods 25 years behind the times.-That there has been an insistent adherence to an obsolete method of indorsing, recording, carding, and cross reference which has stood in the way of improving these practices; that there has been a slavish adherence to a system and to precedents established in previous years, as a result of which there has been built up in this office one of the most elaborate and expensive plants for doing some very simple things that is to be found anywhere in the Government service; that new methods have been resisted at every point, and that in all its work and methods except that related to the personnel records of the Army, The Adjutant General's Office is some 25 years behind the times; that by adopting an up-to-date method for handling the voluminous correspondence of the office alone, not less than a quarter of a million dollars each year could be saved.

Telegrams used when letters would serve better. It was found after detail inquiry into the use made of telegrams that frequently they are sent when letters would serve as well or even better; that day telegrams are sent when night rates could be obtained without affecting the efficiency of the service; that telegrams and cablegrams are sent in extenso when by use of the established code of the department the cost would be very much reduced.

Offices unfavorably located and wastefully used.-On the one hand many offices are widely scattered, while others are wastefully used. It was found that 76 good office rooms in the State, War, and Navy Building were used for the storing of old and infrequently used records, while the personnel had been forced to occupy quarters scattered in about six different buildings in different parts of the city.

Quarters unsafe and insanitary.-In many instances the office quarters are badly lighted, badly ventilated, and are insanitaryin some instances a constant menace to the health and personal safety of employees, one building being so unsafe as to be a continuing menace to life, having been condemned both by the building authorities and the health authorities of the District of Columbia. As an illustration of the insanitary conditions, the following statement is quoted from a health inspector's report:

This is used as a file room and eight men are employed in it. In the toilet room adjoining, five men are employed on printing presses. This room is provided with three windows and one door, but is very dark and contains the following fixtures: Three water-closets, automatically flushed; four washbowls with combined trap, and one slop sink. The floor around the closet bowl is covered with sheet iron, which at the time of inspection was in a foul condition. The entire floor is continuously lighted during working hours by artificial light.

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