Statement of— Merriam, Robert E., assistant to Director; accompanied by Paul F. Krueger, clearance officer, Office of Statistical Standards, Bureau of Robertson, Albert J., Assistant Postmaster General, Bureau of Fi- nance, and Controller; accompanied by Abe McGregor Goff, solici- tor; and Adam G. Wenchel, assistant solicitor, Post Office Depart- Letters, statements, etc., submitted for the record by- Dawson, Hon. William L., a Representative in Congress from the State of Illinois, and chairman, House Committee on Government Excerpt from an opinion survey for the United States Post Office Department by Wengel Service Corp., Princeton, N. J., January Excerpt from statement of Albert J. Robertson. Goff, Abe McGregor, Solicitor, Post Office Department: Letter from Jonas, Hon. Charles R., a Representative in Congress from the State of North Carolina: Excerpt of letter from Lindsay C. Warren, Comptroller General of the United States, to Hon. Albert Gore, Krueger, Hon. Otto, a Representative in Congress from the State of Merriam, Robert E., assistant to Director, Bureau of the Budget: Excerpt from Federal Reports Act of 1942... Partial list of surveys by United States Federal agencies of the opinion and attitude type since 1950 approved by Bureau of the Budget under Federal Reports Act of 1942 showing year first approved and whether carried out by agency (A) or under Pincus, William, associate general counsel, House Government Opera- Excerpt from an opinion survey for the United States Post Office Department by Wengel Service Corp., Princeton, N. J., Jan- uary 15, 1954 Excerpt from opinion of the Comptroller General_ Excerpt of letter from the Bureau of the Budget, June 5, 1956. Robertson, Albert J., Assistant Postmaster General: Excerpt from the Congressional Record re increase in postal rates- Letter from Albert J. Robertson, Assistant Postmaster General Letter from Stuart A. Rice, Assistant Director for Statistical Standards, to Charles R. Hook, Jr., January 21, 1954- Letter from the Deputy Postmaster General, to Hon. Rowland R. Wenchel, Adam G., Assistant Solicitor, Post Office Department: Excerpt from Post Office Departinent Appropriation Act of 1954. 777 Appendix No. 1-The Public Looks at Postal Rates Appendix No. 2-Opinion [B118409] by Comptroller General dated Feb- Appendix No. 3-List of surveys, approved by Bureau of Budget since 61 POST OFFICE DEPARTMENT CONTRACT FOR AN OPINION SURVEY MONDAY, JUNE 11, 1956 HOUSE OF REPRESENTATIVES, LEGISLATIVE REORGANIZATION OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D. C. The subcommittee met, pursuant to call, at 10:10 a. m., in room 1501, New House Office Building, Hon. William L. Dawson (chairman of the full committee) presiding. Present: Representatives Dawson (presiding), Harden, and Jonas. Also present: Representative Hoffman (Michigan); William Pincus, associate general counsel (full committee); Örville Montgomery, attorney, General Accounting Office; Elmer W. Henderson, subcommittee counsel; John B. O'Brien, Jr., David Glick, subcommittee staff; and Ann McLachlan, subcommittee clerk. Chairman DAWSON. The subcommittee will come to order. During the past year this subcommittee bas made an extensive study of the use of WOC and WAE consultants by the Government. In recent weeks we held several hearings on the subject which were confined largely to developing information concerning the individual advisers or consultants who serve the Government both with and without compensation. Another facet of this overall problem is the use by the departments and agencies of so-called nonpersonal service contracts. As far as we have been able to determine, there generally is no limitation upon the amount of money which may be paid to firms or organizations of experts and consultants, as distinguished from individuals. It well may be that many firms or organizations are employed, in order to avoid monetary limitations, when the services of an individual would be sufficient. So-called nonpersonal service contracts involve amounts ranging from a few hundred dollars to hundreds of thousands of dollars. Some consideration should be given as to whether such contracts should be budgeted and specifically appropriated for. In order to assist the subcommittee in obtaining the information it seeks, a representative of the Post Office Department has been requested to appear before us and explain the circumstances as to the negotiation, execution, and utilization of a contract made with the Wengel Service Corp. under date of December 21, 1953. The contract was entered into under section 15 of Public Law 600 (5 U. S. C. 55a), and pertains to a subject matter which is unique in the Federal Government. Accordingly, it was deemed advisable to hear testimony concerning said contract. 1 According to information furnished by the Post Office Department the survey was approved by the Bureau of the Budget pursuant to the Federal Reports Act of 1942. We have invited the Director of the Bureau of the Budget to appear and testify as to pertinent matters relating to the contract. We have with us today the following representatives of the Post Office Department: Mr. Albert J. Robertson, Assistant Postmaster General, Bureau of Finance, and Controller; and Mr. Abe McGregor Goff, Solicitor. STATEMENT OF ALBERT J. ROBERTSON, ASSISTANT POSTMASTER GENERAL, BUREAU OF FINANCE, AND CONTROLLER; ACCOMPANIED BY ABE MCGREGOR GOFF, SOLICITOR; AND ADAM G. WENCHEL, ASSISTANT SOLICITOR, POST OFFICE DEPARTMENT Mr. GOFF. If I might just make a very preliminary statement, Mr. Dawson: That this was a contract that arose before I came to the Department, only a few months before I arrived. I have brought with me Mr. Wenchel, Chief of the Opinions Division in the Solicitor's Office. He knows the whole background in regard to it, and it was our desire to give you every possible bit of information we could regarding it. Chairman DAWSON. We appreciate that very much, Mr. Goff. Mr. GOFF. So that I will not testify personally, unless the committee should desire to ask me questions. The two witnesses for the Department will be Mr. Albert J. Robertson, the Assistant Postmaster General in charge of the Bureau of Finance, and the Controller of the Department, and the other witness as to any legal phases involved will be Mr. Adam Wenchel, Chief of the Opinions Division in the Solicitor's Office. Both of them are here. Mr. Robertson has a prepared statement which he would like to make, preliminary to any questions you may ask. Unfortunately, we don't have enough copies for everybody, but I have called the office, and they will be here in a little bit. Chairman DAWSON. Thank you. I want to acknowledge the presence of my fine friend from Chicago, Mr. Robert Merriam. We are glad to have you down here in Washington. I hope you won't fall so much in love with Washington that you will forget Chicago. Mr. MERRIAM. Thank you. I have with me Mr. Krueger, clearance officer, Office of Statistical Standards, which handled this for our Bureau. Chairman DAWSON. Will you proceed, Mr. Robertson. Mr. ROBERTSON. My name is Albert J. Robertson. I am the Assistant Postmaster General and Controller in the Bureau of Finance of the Post Office Department. When the present postal administration took office it was faced with the prospect of a continuing annual deficit of more than $700 million. We soon became aware that economies and improved efficiency would not alone solve this deficit situation, but that rate adjustments were also necessary. In order to develop an effective program, it became apparent that the Department would require more information than was then available concerning: 1. Public opinion regarding the economic effect of postal rate adjustments on various broad segments of the economy and in various geographic areas; and 2. Public attitudes regarding the adequacy of the postal service being rendered. The Post Office Department had proposed a program of rate revisions in the summer of 1953 but we were repeatedly told that rate increases would prove highly unpopular with the general public and might have serious economic consequences. Our own observations and inquiries did not confirm this opinion, but we felt that we had a duty to explore this possibility. We therefore began an orderly investigation into ways and means of securing the desired information and soon reached the conclusion that much of it could be obtained only by an impartial scientific sampling of public opinion. The views of the Director of the Bureau of the Budget were requested with respect to this matter and that Bureau approved the proposed plan. Public opinion sampling is recognized to be a highly specialized field of work and it is used by industry as a guide to the conduct of its affairs and the marketing of its products. It is a scientific process. using techniques evolved from long experience that make it possible to appraise mass thinking from relatively small samples. It is considered by many to be the only sound way of measuring public opinion--and a point of knowledge which is almost a necessity to a public service operation. We were informed that other departments of the Government have employed this technique as a basis of establishing some of their policies. The post office cannot be oblivious to public opinion either in its financial policies or operating practices and public opinion cannot be measured from the individual or isolated criticisms or commendations usually received. In the polling of public opinion not only is the design of the questionnaire of great importance, but in order for the returns to be valid it is necessary that an accurate cross section of the population be reached by conducting interviews in cities, towns and rural areas and among respondents in all walks of life. Because of the complexity of polling, business concerns do not normally maintain their own sampling services but rely on the skills of outside firms specially trained and equipped in this field. The value of such a survey is dependent, of course, upon the expertness of the organization which conducts it. Objective specifications controlling the quality of the work cannot be written. When it was determined that a survey was desirable, inquiry was made as to organizations available to undertake the assignment. The Wengel Service Corporation of Princeton, N. J., was found to be qualified and available. We then discussed with it the nature of the survey desired and the kind of information to be developed. Under the direction of the Postmaster General and the Deputy Postmaster General, I carried on most of the discussions and negotiations with Arthur J. Wengel of the Wengel Service Corp. On the basis of these discussions Wengel framed the questions which were to be used and submitted them to us. Before proceeding |