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and made ready for sea. In a similar manner, on April 9, 1917, guards were placed on board 14 Austrian vessels, lying in 8 different ports, and the same procedure was employed to prevent their further injury or deterioration, until they were purchased by the Shipping Board or by other American owners. The total cost to the Customs Service of these operations was $188,595.20, which has been reimbursed to the appropriation and is not included in the figures herewith submitted. A great part of the work was, however, performed by persons regularly employed in the Customs Service, and all overhead expenses were borne by that service, the cost above given being only that necessary for the employment of persons not available in the regular force of the Customs Service.

In addition to its usual and ordinary duties, the Customs Service is now charged with the duty of preventing the shipment of unlicensed cargoes which require a license under the act of June 15, 1917, and the proclamation of the President, dated July 9 last. Customs officers take up or cancel the passports of all American citizens returning from abroad, and they examine the passports of all persons departing from the United States to prevent persons leaving without a passport or under a false passport. They act as local agents of the War Risk Insurance Bureau and are generally employed in the enforcement of those regulations governing the movement of vessels, which have been adopted as war measures and for the enforcement of which no other service is available.

By reason of the fact that there are in the service a number of examiners of merchandise who are experts on questions relating to the values of various classes of merchandise, the service is also rendering great assistance to the Medical Supply Department of the Army in the purchase of supplies, preparing the specifications, examining and valuing samples, and seeing that the goods delivered comply with the specifications. Collectors of customs have been acting in numerous instances as disbursing agents of the Shipping Board, and the department is now, by means of the special-agency service, investigating and reporting on the bills submitted to that board for the repairs to vessels.

These increased activities have all been efficiently performed within the limits of the appropriations made by Congress for the ordinary activities of the Customs Service. Indeed, the expenditures for the fiscal year 1917 were $38,203.56 less than those for the fiscal year 1916. This was made possible by a continuation of the installation of improvements in the customs organization and the routine processes employed in the various customhouses. The most extensive betterment of this kind was the reorganization of the work

in the New York customhouse, made in pursuance of an investigation and report by a committee of the efficiency board. The principal features of this reorganization were the transfer of the warehouse, accounts, and disbursing divisions to the main floor of the customhouse and a better coordination of the work of those divisions with that of the entry division; the installation of a new system of receiving and handling entry papers; and the adoption of a new set of blank forms of entries, bonds, and related papers, which result in great convenience to the importers and a saving of time and unnecessary work in the routine processes of the customhouse. To carry out to its fullest extent the plan of reorganization, it will be necessary to make some alterations in the rotunda on the main floor of the customhouse and to install a mechanical system, either by the use of pneumatic tubes or overhead carriers, for the transmission of papers. The estimated cost of these various changes is $35,000, and it is urged that the money be secured and the changes carried into effect as soon as possible, since the completion of the plans adopted will make the New York customhouse a model upon which it is proposed to base the organization of the work in the other large customhouses, a similar reorganization having already been made in the Boston customhouse with good results. When it is considered that the changes already effected have reduced the floor space necessary by more than 15,000 square feet and will permit the same work to be more quickly and efficiently performed with a reduction of 10 per cent in the cost thereof, the advisability of completing the reorganization is obvious.

While there has been a steady decrease in the operating expenses of the Customs Service for the past four years, due to the adoption of improved methods, it is not believed to be advisable to endeavor permanently to decrease the operating expenses of that service below $10,000,000 per annum. While there is no question but what there is still room for improvement in the methods employed, and further economies may be made, any savings resulting from such economies should be devoted to an increased efficiency in the service. The operations of the Customs Service come immediately in contact with commercial activities, and business interests are directly affected by an increased or decreased efficiency of the Customs Service. The dutiable value and classification of merchandise are frequently predicated upon an examination made by one man. A dishonest importer, by collusion with one or two customs employees, may evade for a considerable period of time the payment of duties legally accruing upon his merchandise, thus not only defrauding the Government of its revenue but giving him an unfair advantage that will enable him to

ruin the business of his competitors. A few hours' delay in the passing of merchandise or in the clearance of a vessel may cause a loss of many thousands of dollars. It is therefore important, both to the revenue and to the business interests of the country, that the Customs Service be both honest and efficient. The compensations now paid to many of those employed in that service are wholly inadequate to the technical knowledge required and responsibilities imposed upon those receiving them. It is therefore recommended that the savings resulting from any economies effected in the Customs Service in the future be applied to an upward standardization of the salaries paid, in order that the service may secure and retain men of the requisite technical skill and of the highest integrity.

There should be a complete revision of all the customs administrative laws. These laws have never been completely revised since 1799, and consist of enactments passed at various times from that date to the present time. The Customs Service is, therefore, now operating under laws many of which are over 100 years old and are entirely inappropriate to modern business conditions. While the payment of compensations upon a fee system has been abolished and all customs officers are paid a fixed compensation from the Federal Treasury, some of the features of the organization provided for and adapted to the old fee system still remain. In some customs districts there are three independent principal officers and a fourth who, while subject by law to direction by the collector, yet has statutory duties to perform. This is not calculated to bring about efficient service. There should be one principal officer in each customs collection dis trict and one only, directly subordinate to the Treasury Department, and all other officers in such district should be subordinate to this one, except that an auditing and inspection service should be maintained, directly subordinate to the Treasury Department and independent of this organization. A proper revision of the customs laws, carrying with it a modern up-to-date business organization of the Customs Service, would result in a greatly increased efficiency and a decrease in expenditures of at least $500,000 per annum.

By an Executive order dated March 3, 1913, which was made in pursuance of an authorization by Congress carried in the act of August 24, 1912, the service was partially reorganized. This reorganization has resulted in an increased efficiency and a reduction in the operating expenses of approximately $1,000,000 per annum. At the time of its adoption a much more extensive reorganization was considered, and it is recommended that the necessary authority to carry this into effect be granted by the Congress.

OFFICE OF THE SUPERVISING ARCHITECT.

The following statements show in general the projects authorized by Congress and in detail the financial operations of the Office of the Supervising Architect for the fiscal year ended June 30, 1917:

BUILDINGS.

New bulidings completed (occupied or ready for occupancy) at the close of the fiscal year ended June 30, 1916-----

Purchased completed (Galveston, Tex., appraisers' stores) ––
Number of marine hospitals and quarantine stations____.

1,008

1

54

63

New buildings completed during the fiscal year ending June 30, 1917---

Net total number of buildings (completed) under the control of the
Treasury Department June 30, 1917-----.

Buildings placed under contract during the fiscal year ending June 30,
1917
Buildings placed under contract prior to the commencement of the fiscal
year 1917 and not completed June 30, 1917--

1, 126

76

45

Contracts for new buildings in force July 1, 1917.

121

Total number of buildings completed and in course of erection
June 30, 1917___.

1,247

Buildings authorized prior to the act of Mar. 4, 1913, not under contract
June 30, 1917____

18

Buildings authorized in acts of Mar. 4 and June 23, 1913; July 26, 1916; and Mar. 4, 1917, not under contract June 30, 1917.

177

Total

195

Total buildings completed, in course of erection, or authorized
(not including extensions)_.

1,442

EXTENSIONS.

Extensions completed (occupied or ready for occupancy) during the fiscal year ending June 30, 1917.

5

Extensions placed under contract during the fiscal year ending June 30, 1917.

Extensions placed under contract prior to July 1, 1916, not completed
June 30, 1917__

3

Contracts for extensions in force July 1, 1917.

10

Extensions authorized prior to act of Mar. 4, 1913, not under contract
June 30, 1917----

2

Extensions authorized in acts of Mar. 4, 1913, and Mar. 4, 1917, not under contract June 30, 1917‒‒‒‒‒

12

Extensions not under contract---.

14

RECAPITULATION.

Contracts completed during the fiscal year ending June 30, 1917:
New buildings__

Extensions.

Total_

Contracts awarded during the fiscal year ending June 30, 1917:
New buildings_.

Extensions

Total_____

Contracts awarded prior to July 1, 1916, not completed June 30, 1917:
New buildings..

Extensions

Total

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Contracts in force July 1, 1917, regardless of date of award:
New buildings..

Extensions

Total

The above statement does not include the following: Major miscellaneous contracts awarded from July 1, 1916, to June 30, 1917

Miscellaneous projects placed under contract during the fiscal year 1917, all of which required the preparation of specifications and in many instances drawings and which involved in some instances contract liabilities exceeding $20,000, approximately--.

121

10

131

15

1, 132

Summary of acts carrying appropriations for the fiscal year 1917. The sundry civil act approved July 1, 1916, carried appropriations

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