Subtracting from this amount the additional cost of work billed to June 30, for which no estimate had previously been received, plus the estimated cost of work sent down since June 23 Leaves a balance of- The estimated cost of printing and binding to be done to Dec. 31, Leaves the sum of__ 85,000.00 137, 929. 82 512, 036.00 137, 929. 82 374, 106. 18 The $150,000 appropriation for printing manuals, etc., provided in the sundry civil bill was not considered as a credit account in connection with this estimate for the reason that The Adjutant General did not include it in his estimate of cost of printing to be done for his office. If it is to be added to the credit account, then the estimated cost of printing and binding submitted by chiefs of bureaus should be increased $150,000, as Gen. McCain advises me that he expects the entire appropriation to be required. This appropriation was not included for the additional reason that the deficiency estimate of $374,500 was for printing and binding to be done at the Government Printing Office, and chargeable to the allotment of the War Department out of appropriation for printing and binding to be executed under the direction of the Public Printer. Attention is invited to the fact that there is at his time an unusual demand upon the allotment for printing and binding for the War Department, due to the very large amount of printing that is being required by the Provost Marshal General's Office in connection with the work of registration and the selective draft. JOHN C. SCOFIELD, Assistant and Chief Clerk. GUILFORD COURTHOUSE NATIONAL MILITARY PARK. The CHAIRMAN. There is an item in the bill calling for $8,100 for the Guilford Courthouse National Military Park? Mr. SCOFIELD. We put this estimate in some time ago; we did not put it in recently. I put this estimate in once and Congress did not act on it. This was not submitted recently, was it? It was recently brought to my attention for the purpose of having it resubmitted, and I said I did not think Congress would be appropriating for purpose at this time. this The CHAIRMAN. It came in May 8. Mr. SCOFIELD. I do not think so. matter; we did not originate it at all. we put it in the estimate because of that. other estimates. Is this an urgent matter? FRIDAY, JULY 20, 1917. PAN AMERICAN UNION. STATEMENT OF MR. FRANKLIN ADAMS, CHIEF CLERK AND EDITOR. PRINTING AND BINDING. The CHAIRMAN. For printing and binding for the International Union of American Republics, you are asking $3,000? Mr. ADAMS. Yes, sir; for publishing magazines belonging to last year. The Public Printer stopped the work on those publications. 4400-17 -14 last year, and now they have started again to take it out of this year's appropriation, making a deficit for 1916. The CHAIRMAN. If you are going to pay it out of this year's appropriation, you can not pay it out of a deficit of last year. It is chargeable to this year's appropriation if the work is being done now. Mr. ADAMS. They started the work last year, but they notified us that there was no money and they stopped it. MONDAY JULY 16, 1917. BUREAU OF ENGRAVING AND PRINTING. STATEMENT OF MR. J. E. RALPH, DIRECTOR. INCREASE OF LIMITATION ON DELIVERED SHEETS. The CHAIRMAN. You ask us to take off the limitation upon the amount of work to be done during the fiscal year 1917. That is not necessary, is it? Mr. RALPH. Yes, sir. I have a deficiency estimate of $125,000. ENGRAVERS AND PRINTERS MATERIALS, ETC. The CHAIRMAN. For what-engravers and printers materials? Mr. RALPH. Yes, sir; for engravers and printers materials and miscellaneous expenses. The CHAIRMAN. Except distinctive paper? Mr. RALPH. Yes, sir; except distinctive paper. The CHAIRMAN. You had $959,500. How do you get at that? Mr. RALPH. That is for materials and some machinery. The CHAIRMAN. How could there be that much deficit? Mr. RALPH. Do you mean the $125,000 deficit? The CHAIRMAN. Yes. Mr. RALPH. We submitted an estimate on May 31, 1917, for a deficiency of $125,000. The CHAIRMAN. But you did not get it. Mr. RALPII. No, sir; but we have spent it. The CHAIRMAN. You went ahead and spent it out of another appropriation, did you not? Mr. RALPH. No, sir; we have not paid those bills; and, inasmuch as we did not do all the work we estimated in the way of plate printing, you could transfer $125,000 from that appropriation. The CHAIRMAN. We do not want to do any transferring. Mr. RALPH. But the money is there. We The CHAIRMAN. That money can not be used for this purpose. will let that go back to the Treasury, and we will have no trouble about transferring it. How does this arise? Mr. RALPH. There is an increase in the limit by 7,000,000 sheets of regular revenue stamps. We are compelled to print 7,000,000 sheets of internal-revenue stamps in excess of the estimated quantity, and, therefore, the limitation will have to be changed to permit the au thorization of that 7,000,000 sheets of internal-revenue stamps. In addition thereto we printed 4,000,000 sheets of war-revenue stamps and 200,000 sheets of checks, drafts, and miscellaneous, amounting to $50,000. Then there has been an increase in prices after contracts had expired amounting to $23,000, and there is an item of offset, typographic, and power plate presses amounting to $52,000, making a total of $125,000. The CHAIRMAN. How do you get the auditor to pass your accounts for payment for work done in violation of the law? I would like to know how that is done. Mr. RALPH. The auditor does not audit these bills until they are paid and go into his possession. The auditor has not audited the bills for the expenses incurred in the work under this deficit. The bills do not go to the auditor until after they have been paid and the contract closed up. He does not audit any anticipated amount due on a contract when the contract is entered into. The CHAIRMAN. Under whose direction was this increased work done? Mr. RALPH. The Secretary of the Treasury, to meet an urgency. The CHAIRMAN. When? Mr. RALPH. In June. In the latter part of May and in June. The CHAIRMAN. Before the matter was submitted to Congress? Mr. RALPH. No, sir; at the time. It was about the time it was submitted to Congress. The CHAIRMAN. What authority has he to direct you to do work that the law does not authorize? Mr. RALPH. None whatever. There is no authority other than that the needs of the Government and the demands of the Internal Revenue Bureau demanded that these things should be done. The CHAIRMAN. That does not justify anybody in violating the law. Mr. RALPH. I know it does not, Mr. Fitzgerald; but if we had not violated the law the Government would have been embarrassed very seriously. The CHAIRMAN. Well, what about it? I think the practice that you have commenced and are developing in the bureau is an absolutely indefensible one. Mr. RALPH. I do not think so. The CHAIRMAN. You do just as you please down there. Mr. RALPH. I wish to tell you that when I was up here I told you that I did not think there would be enough money, and you said to go ahead and bring in a deficiency. Then, if Congress does not act on the deficiency Congress assumes some responsibility for the embarrassment of the Government. The CHAIRMAN. We assume all of it; but you nor any other official of the Government has the right to do as he pleases. Mr. RALPH. I am not doing as I please. Mr. Fitzgerald. I am representing the Government's interests the best I can. The CHAIRMAN. You are not, Mr. Ralph. You are not representing nor protecting anybody's interest when you do something that the law prohibits you from doing. The most important thing for officials of the Government to do, no matter how important their positions may be, is to obey the law. Mr. RALPH. Well, suppose we assume that the Bureau of Engraving and Printing did not execute this work, what would be the result? Congress did not act. The CHAIRMAN. You are not responsible for that. Mr. GILLETT. What would have been the result? Mr. RALPH. The Internal-Revenue Bureau and the Government would be embarrassed very largely in the receipt of revenue. The CHAIRMAN. Suppose it was embarrassed, that is not your business. Mr. RALPH. Mr. Chairman, I do not want to be impertinent to you or personal, but when I have come before you with the Assistant Secretary of the Treasury, you have told me that the best thing that could be done would be to anticipate a deficiency. The CHAIRMAN. On this item? Mr. RALPH. No, sir; not on this particular one. The CHAIRMAN. I do not think so. Mr. RALPH. I know you did not on this item. I did not say you did on this particular thing, The CHAIRMAN. I do not think you ever spoke to me about this one. Mr. RALPH. It was not on this item. It was absolutely not on this one. The CHAIRMAN. There were other matters that came before me, and, after consulting with other people, I said that, because of the conditions that existed, if certain work was done, a recommendation would be made that an appropriation be made. Now, in acting in these matters, when there is no authority, the department has gotten into the attitude of going ahead and doing as it pleases. Mr. RALPH. No, sir; I did not go ahead and do as I pleased. The CHAIRMAN. I did not say you did in that particular thing, but in this Mr. RALPH (interposing). I had to execute the work as a matter of good business policy. On compensation and plate printing, I turned into the Treasury $200,000, because I did not execute all the work that I anticipated. The CHAIRMAN. We have gotten to the point where Congress is either a part of the Government, and an important part of it, or that it does not amount to anything. It makes no difference whether we pass your estimates or not, you go ahead and do the work as you please. Mr. CANNON. Mr. Ralph, you are a subordinate in the Treasury Department? Mr. RALPH. Yes, sir. Mr. CANNON. You did not do this work without instructions? Mr. RALPH. The Secretary of the Treasury approved my recommendation upon my statement that it was necessary to print those stamps. Primarily I am responsible for the whole thing. The Secretary simply approved my request that I be authorized to anticipate a deficiency and submit the estimate to Congress. It was submitted in 1917, in May, and by the latter part of July, if Congress took no action in the matter, the business of the Internal-Revenue Bureau would be seriously embarrassed if we did not execute this work. Mr. CANNON. Those facts you reported and you made your estimate? Mr. RALPH. Yes, sir. Mr. CANNON. And it was approved? You went on with the work? Mr. RALPH. The Secretary immediately transmitted it to Congress. Mr. CANNON. Do I understand that prior to this time you took similar action touching other matters, in which, or in some of which, as the case may be, you came down here, as is frequently done, especially during these emergency times, and consulted with Mr. Fitzgerald, or with the committee, as the case may be, and went ahead. violating the law? Mr. RALPH. Yes, sir. Mr. CANNON. And that has been done in many cases during this period of emergency? Mr. RALPH. Yes, sir. Mr. CANNON. Now, as I gather from you, it was absolutely necessary, if the revenues were to be collected, that this printing should be done? Mr. RALPH. Absolutely; yes, sir. Mr. CANNON. That is all I want to say. I wanted to say that in fairness to Mr. Ralph. Mr. RALPH. I am not an adviser of Congress, but Congress has passed-or the House has passed and the Senate is at work upon ita war-revenue bill, and there are certain stamps provided for under that bill. Now, I have no means of knowing whether that bill will be passed in 30 days or 60 days, but in the interest of good business policy and to meet the demands of the people there should be stamps placed in the possession of the Bureau of Internal Revenue, so that when the bill becomes operative, immediately on its passage, those stamps can be sold to the people who will use them. A part of this is brought about by that condition, or it is to the extent of the 4,000,000 sheets of war-revenue stamps that I had printed late in June, and they are being shipped now to the postmasters throughout the United States. They are being shipped to 59,267 postmasters. Mr. GILLETT. What kind of stamps are those? Mr. RALPH. Documentary stamps and stamps for the Parcel Post Service. Mr. GILLETT. You do not know whether the documentary stamps will be in it or not? Mr. RALPH. I do not, but, as a matter of good business policy, I take it for granted, and we have the Secretary's order for them. In 1914, there was a great hue and cry throughout the country because the railroads and business men could not get documentary stamps for bills of lading, notwithstanding the fact that I had 85,000,000 stamps delivered before the bill passed, and they were in the possession of the Internal Revenue Bureau; but it was inadequate to meet the demands for the stamps, where, for instance, a railroad would buy a couple of million stamps at one time. This is in the interest of good business policy. That is all the defense I can make. I would be derelict in my duty if I did not anticipate these things. There is no provision in the bill to pay for these stamps, but the Senate and House might have passed that in a month, and if it became operative there would be no stamps for the people to do business with under that act. Mr. GILLETT. I supposed that what was keeping your bureau busy was the liberty bonds. |
