The Life-Saving Service does not manufacture its equipment, but has it constructed under special contract. Power lifeboats are built under contract at Bayonne, N. J., and power surfboats under contract at Greenport, Long Island. To supervise this construction work and that of certain other apparatus, the service maintains at New York a special office known as "Superintendence of construction of lifeboats, apparatus, etc." This office is in charge of a retired captain of the Revenue-Cutter Service and is located in the customhouse in New York City. The organization and personnel of this office are shown in the following statement: 1 superintendent (captain, retired, Revenue-Cutter Service)... 1 assistant.. 1 clerk.... 1 repairman.. $2,200 1, 200 1, 200 4, 620 If the compensation of the superintendent, which is paid from the appropriation for the support of the Revenue-Cutter Service, is included, the cost in salaries alone of maintaining this office is not less than $8,000 annually. If to this is added the rental value of the quarters occupied, and other office expenses, the total annual cost of maintaining this service can not be less than $10,000. In the opinion of the commission, practically this entire sum can be saved by placing the two services under the same general administration. It will be noted that the office of superintendence of construction of lifeboats, apparatus, etc., itself does no construction work; its duties are exclusively those of supervising work done elsewhere. There would seem to be no reason why this work can not be taken over by the Tompkinsville depot and manufacturing plant of the Lighthouse Service. It is quite possible that it will be found feasible and advantageous to have the power boats constructed there, or, as suggested by the committee of the Treasury Department which made an investigation of the Life-Saving Service, at the navy yards of the Navy Department. Whatever is done in respect to this, the Tompkinsville office can certainly take charge of the supervision of the work. Even granting that in order to do this work some addition to the force of this office is required, the annual saving to be effected by having the work done here instead of maintaining a separate office for its performance should be at least $6,000. MAINTENANCE OF DEPOTS. The purchasing, warehousing, and distribution of supplies to the hundreds of lighthouses and light vessels, to the 19 district offices, and other points at which supplies are used requires an elaborate organization on the part of the Lighthouse Service. For the warehousing of supplies and equipment the service maintains 30 depots. The operation of these depots requires the services of 220 persons and entails a total cost of $246,139.65 annually. In the detailed description of the service, given in Exhibit No. 4A, is given a statement showing the number of employees at and the cost of operating each station, the cost being shown in each case under the four heads, (1) salaries of persons in charge, (2) other salaries and wages, (3) rent, (4) other items. For warehousing and distribution of supplies to life-saving stations the Life-Saving Service maintains at New York City a general storehouse, and at Grand Haven, Mich., and San Francisco, Cal., subsidiary storehouses. The warehouse in New York is located in a building (379, 381, and 383 Washington Street) specially rented for that purpose at an annual rental of $8,000. A small part of this building is used as quarters by the superintendent of construction of life-saving stations. The person in charge of this depot is also head of the service of inspection of life-saving stations. The organization and number and compensation of the personnel at this depot and at the two subsidiary depots are given in detail in Exhibit No. 3A, "History, organization, and activities of the Life-Saving Service.' From this statement it will be seen that the number of employees concerned with the storehouse proper at New York is 12 and the aggregate of their annual compensation, not including that of the inspector in charge, who is a captain of the Revenue-Cutter Service, is $13,440. To determine the total cost of maintaining and operating this depot, there should be added to this amount, (1) the salary of the captain of the Revenue-Cutter Service, (2) the $8,000 rental paid for the building, and (3) all items of expense other than salaries. The addition of these items would certainly bring the total annual cost of the depot to not less than $25,000. The cost of maintaining the two subsidiary depots is relatively small, each requiring the services of but one employee, known as shipping clerk. The shipping clerk at the Grand Haven depot receives an annual salary of $1,500 and the one at the San Francisco depot $1,200. It is the opinion of the commission that if the two services are placed under the administration of a single bureau it will be entirely feasible for the large Tompkinsville depot of the Lighthouse Service to take over and discharge all the duties now being performed by the New York depot of the Life-Saving Service. In support of this opinion it should be noted that the supply problem of the Life-Saving Service is a relatively simple one. Although the Government pays for the subsistence of the keepers and crews of life-saving stations, this is done by a commutation of rations at the rate of 30 cents per man per day. Other supplies, as distinguished from equipment, which, under the proposed plan, will be furnished through the manufacturing branch of the main depot of the Lighthouse Service which, as stated, is likewise located at Tompkinsville, are few and simple in character. In the same way it will probably be feasible for the work now done by the Grand Haven and San Francisco depots to be taken over by the depots of the Lighthouse Service located in the same general neighborhood. The cost of maintaining these two depots, in view of the fact that $2,700 is paid for salaries alone, can not be less than $5,000. If this recommendation is carried out, the expense now sustained in operating the three depots of the Life-Saving Service, which, as has been shown, amounts to at least $30,000, will be eliminated. Ten thousand dollars is a liberal estimate of the additional cost that would be entailed on the part of the Tompkinsville depot to handle this work. The net saving that would result from the consolidation here suggested would thus be at least $20,000 annually. DISTRIBUTION OF SUPPLIES. The maintenance of depots constitutes, however, but one of the items of expense connected with the handling of supplies. There remains the very important item of transportation of supplies from the depots to the stations where they are to be used. For this and other purposes the Lighthouse Service had in commission, in 1910, 40 inspectors' tenders and 17 engineers' tenders, the total cost of whose maintenance and operation during the year was reported as $1,270,185.91. The total cost of maintenance and operation of these vessels is not chargeable to distribution of supplies and equipment, since the vessels are used by the inspectors in making their inspections, in planting buoys and other aids to navigation, and, generally, for all purposes for which they are adapted. The Life-Saving Service, as a rule, delivers its supplies to stations by railroad, though use for this purpose is to a certain extent made of a few motor boats belonging to the service. The annual report of the service for 1910 mentions $10,013.54 as being expended during the year for "freight, packing, storage, telegraphing, etc." It is impossible to state how large a part of this sum is chargeable to the single item of freight. It is fair to assume, however, that at least $8,000 is due to this item. It is the opinion of the commission that the greater part of this expense will be saved if the two services are administered by a single bureau. As shown in Exhibit No. 2A, "Statement showing location of life-saving stations in relation to nearest lighthouse," practically all of the life-saving stations are in close proximity to a fighthouse. Supplies for the stations can thus be delivered at the same time and by the same agencies as are employed in delivering supplies to lighthouses. The net economy to be thus realized may be estimated at $4,000 annually. FIELD ADMINISTRATION AND INSPECTION. In all cases where numerous stations are maintained in the field, provision is required for an inspection service. This can be made by providing for a corps of traveling inspectors attached to the central office, or by dividing the territory to be covered into districts, and placing in charge of each an official with the duty of exercising immediate direction, control, and supervision over the work done at the stations within his district. The latter policy has been adopted by the Lighthouse Service. For purposes of direct administration of work in the field, the country has, in accordance with provision of law, been divided into 19 districts. The boundaries, headquarters, number of persons employed, and the expense of maintaining and operating each of these districts are given in Exhibit No. 4A, "History, organization, and activities of the Bureau of Lighthouses." As has been pointed out elsewhere, all but four of these districts are in charge of oflicers of the Army or Navy, detailed for that purpose. Under the terms of the act of 1910 reorganizing the Lighthouse Service, civilians must be substituted for these officers not later than July 1, 1913. The total personnel at the headquarters of these 19 districts numbers 167, and the total cost of maintaining and operating these offices in 1910 was $277,648.90. This, however, does not include the salaries of the 15 Army and Navy 37542°-H. Doc. 670, 62-2-5 officers now discharging the duties of inspector in charge. The inspectors in charge are assisted by officers known as superintendent and assistant superintendent, clerks, and certain other employees. The regulations prescribe that the inspectors, superintendents, or assistant superintendents shall visit and inspect all light vessels, tenders, depots, light stations, fog-signal stations, beacons, and post lights and buoys four times a year, and unlighted beacons twice each year, if practicable; and if impracticable, to make a report of the facts to the commissioner, with reasons for failure to make the required inspections. The further duty that the superintendents and assistant superintendents have of inspecting and supervising construction and repair work has already been mentioned. For the performance of the work of field supervision the Life-Saving Service maintains two subservices or branches: (1) For general administration and inspection of the field stations, and (2) for inspection through officers of the Revenue-Cutter Service. For purposes of general administration the country is divided into 13 districts. At the head of each district is a "district superintendent," who, except in the case of the eighth district, is assisted by a clerk. The following statement shows the number of persons and their compensation embraced in this division of the service: District superintendents conduct the general business of their districts, look after the needs of the stations, make requisitions, for repairs, etc. They also act as disbursing officers and paymasters and are ex officio inspectors of customs. They are required by the regulations to visit the stations in their districts at least once a quarter and on these occasions they pay off the crews and make such other disbursements as are authorized. In addition to this service of general field administration and inspection, the Life-Saving Service maintains, in connection with its storehouse at New York, an office of inspection, which is presided over by an officer of the Revenue-Cutter Service. The work of this officer as head of the general storehouse has already been described. To assist him in his duties as inspector he has nine other officers of the Revenue-Cutter Service serving under him as assistant inspectors. The inspector makes no inspections personally, that work being done by the assistant inspectors. These officers are apparently given wide discretion in the performance of their duties. During the fiscal year 1911, the nine assistant inspectors made a total of 750 inspections. The average salary of each officer was $3,588.02, and the average expense per officer was $1,418.61, a total per officer of $5,006.63. The cost for this extra inspection by officers of the Revenue-Cutter Service exceeded $45,000. The character and duties of the systems of field administration and inspection maintained by the two services under consideration have been given with some particularity, since the commission is impressed with the fact that in the system maintained by the Lighthouse Service there exists an organization and personnel that are in every way equipped to perform all of the work of field inspection required in respect to both services, if, in accordance with the recommendation. of the commission, the administration of the two services is placed under a single bureau. The cost of maintaining the 13 district offices is, as has been shown, $38,700 in salaries alone. Other items of expense, including that for travel, would bring the total cost of these officers to not less than $45,000. It is probable that the total cost is much more than this sum. If to this we add the cost of the inspection work performed by the officers of the Revenue-Cutter Service, $45,000, we have a total of $90,000 for cost of field supervision and inspection. The discontinuance of these two services would mean a corresponding saving. It is impossible to say how great an additional force would be required in the 19 district offices of the Lighthouse Service to take care of the extra work that would be thrown upon them if their duties included the general supervision and inspection of life-saving stations and houses of refuge. It is believed, however. that no great addition to their present force will be required. As has been repeatedly pointed out, the life-saving stations are in practically all cases located in close proximity to lighthouses. The same officer could thus inspect both establishments at the same time. The chief need for additional employees would be at district headquarters to handle routine matters of general administration. The commission believes that $30,000 would be an extremely liberal estimate for such purpose. This would leave a net saving in this particular, as a result of placing the two services under the same bureau, of $60,000 annually. RECAPITULATION AND GENERAL CONCLUSIONS. In the foregoing the attempt has been made to indicate, in as great detail as circumstances permit, the manner in which, in the opinion of the commission, proceedings should be had looking to the administration by a single bureau in the Department of Commerce and Labor of the two services under consideration, and the economies that could be realized by so doing. These economies are recapitulated as follows: Economy in respect to: 1. General administration, Washington offices. 2. Construction and repair work. 3. Provision of equipment.. 4. Maintenance of depots.. 5. Distribution of supplies.. 6. Field administration and inspection.. Total...... $20,000 40,000 6,000 20,000 4,000 60,000 150,000 The commission does not claim that these figures are more than approximate. At the same time it believes that they represent conservative estimates. It may be that, owing to factors and conditions with which it is not familiar, it has neglected to point out obstacles to be overcome in placing the two services under the same administrative head and has failed to make allowances for certain expenses. On the other hand, to offset such omissions there are undoubtedly opportunities for saving that it has not taken |