In the recommendation for pay of clerks and carriers ample provision is made for all compensation under the automatic-promotion scheme of the classification act and for the advance, consistent with the proper record of efficiency and a year's service in the next lower grade, of 50 per cent of the clerks and carriers in first-class offices of the $1,100 grade.

Ample provision has also been made to equalize the pay of railway postal clerks now employed in the $1,200 grade on apartment-car service upon lines where full railway post-office car service is also in operation by promotion of such clerks to the $1,300 grade.

Your committee has also recommended an increase in the appropriation for the Rural Delivery Service, so as to fully care for the increased service, as evidenced by existing applications, and has made available for the installation of routes during the remainder of the present fiscal year by making $163,000 immediately available for such installation. Following is a detailed table showing the appropriations for the fiscal year 1909 and the estimates of the department and the recommendations of the committee for the fiscal year 1910:

60TH CONGRESS, HOUSE OF REPRESENTATIVES. 2d Session.

NAVAL APPROPRIATION BILL. ·

JANUARY 16, 1909.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed.

Mr. Foss, from the Committee on Naval Affairs, submitted the

following

REPORT.

[To accompany H. R. 26394.]

The Committee on Naval Affairs, to whom was referred so much of the President's annual message as relates to the naval establishment, together with the annual estimates of the Navy Department, submit herewith H. R. 26394, making appropriations for the naval service for the fiscal year ending June 30, 1910, with the following statement:

The amount carried by this bill is $135,662,888.25.

The estimates of the department (including supplemental estimates), amounted to $134,869,527.71, exclusive of new construction. The amount carried by this bill, exclusive of new construction, is $119,860,116.25.

The committee, after careful consideration of these estimates, made deductions to the amount of $15,009,411.46, and under "Increase of the navy" recommend the following appropriations:

On account of hulls and outfits of vessels and steam machinery of vessels heretofore and herein authorized...

$22, 766, 823

Toward the armor and armament of vessels heretofore and herein authorized.....

12, 452, 772

Toward the completion of the equipment outfit of vessels heretofore and herein authorized..

On account of submarine boats heretofore and herein authorized...

600,000 3, 000, 000 38,819,595

Total appropriation of "Increase af the navy" Of this amount, $15,802,772 is for the armor and armament, construction and machinery, and equipment, which will be required during the next fiscal year for the vessels recommended in this bill.