Mr. HANSON. That increase in the warehouse is due to the tracks now being inside the building instead of, as under the original plan, being outside the building. So the actual net increase in storage space in the warehouse is not so great.

The actual dimensions of the H Street building are exactly the same as originally contemplated, that is, as to length and width.

There is also increase of size resulting from the fact that what is now an alleyway between the two buildings will be made into basement space. This is 30 feet in width and 384 feet in length, and gives additional floor space added to what we call the H Street, or no. 3 building.

REASONS FOR INCREASED COST OF BUILDINGS NUMBER 1 AND NUMBER 2

Mr. WOODRUM. Admiral, will you proceed with your statement? Admiral PEOPLES. On the buildings no. 1 and no. 2 the original estimate was $100,000 for changes. The estimated cost of work in buildings no. 1 and no. 2 is $265,000; the estimated cost of added powerhouse facilities in building no. 3 to serve buildings no. 1 and no. 2 is $259,500.

At the time the original estimate was prepared, information with respect to what might be found to be necessary was limited, and with the concurrence of the Public Printer an arbitrary sum was set up.

A. Development of mechanical studies showed that to secure the economical operation of buildings no. 1, no. 2, and no. 3 as a unit it would be desirable to change the existing 25-cycle electrical installations to 60 cycles to be installed in new buildings, thus effecting material economies and greater efficiency in operation. This required the rewiring of old buildings for light and power, and changes in motors and other mechanical equipment.

B. The moving and reconnecting of existing mechanical equipment and tie-in to present buildings.

C. Miscellaneous betterments in existing buildings urgently needed to be made and more appropriately made while this building operation was in progress.

D. Additional lifts were found to be necessary for economical operation.

Moving, rent, furniture, and work originally contemplated to be done by the Government Printing Office, and not included in the estimate, amounted to an estimated cost of $613,125.

This item was never included in the original estimates as it was stated it would be taken care of by the Government Printing Office. This item, however, was included in the bill authorizing the appropriation, as stated, to give authority to make any unobligated balances after the award of construction contracts available for this purpose.

The following is a summary of deficits over the original estimate: Warehouse, building no. 4, $267,768; building no. 3, $1,269,607; buildings no. 1, and no. 2, $424,500; additional drawings and specifications, $50,000; moving, rent, furniture, and equipment, $613,125; and for new elevators required in old buildings, $288,000, making a total of $2,913,000.

Throughout the preparation of the drawings and specifications for this project the Procurement Division has worked in constant collaboration, and with the approval of the Public Printer and his assistants. Every effort to meet the requirements of the plant in the most econom

ical way, both from the standpoint of arrangement and construction, has been made and is reflected in the drawings and specifications.

At the time the preliminary drawings and estimates were made information was limited, and as the studies were advanced and complete analyses were made it was found that in the interests of economy, efficiency of operation, and the demands of increased production, major changes in space requirements, relocation of machinery, increased power plant facilities, air-conditioning, insulation, and a large number of important changes and additions were required.

Each has been given careful consideration and engineering study. The results presented are believed to set forth the least expenditures that will provide the facilities immediately required.

GENERAL ANALYSIS OF ENTIRE PROJECT

A general analysis of the entire project shows a total limited cost of $5,885,000.

The details of the general analysis are as follows:

Additional power-house facilities provided in building no. 3 for buildings no. 1 and no. 2..........

Increase in cost of drawings and specifications (spent to Sept. 15, 1936, $121,762.50).

Moving, rents, furniture, and equipment, and work to be done by Government Printing Office_

Total estimated cost, exclusive of new elevators. Available for construction. etc...

Estimated deficit.

Additional amount required for new elevators for old buildings.____.

Estimated deficit for the entire project--

That accounts for the difference between the original limit of cost, $5,885,000 plus $2,913,000, the estimated deficit, and the revised estimate of cost of $8,798,000.

$265, 000

259, 500

50,000

613, 125

6,852, 232 4, 227, 232

2, 625, 000 288, 000

2, 913, 000

Mr. WOODRUM. What is the status of the warehouse now? Mr. MARTIN. It is scheduled for completion this October, and the other building is ready to go on the market or on the market now.

Mr. REYNOLDS. The increase in cost in the District of Columbia from the time this estimate was made affects this group of buildings by the amount of about $1,300,000.

Mr. MARTIN. The bids for the annex will be opened on June 29.

VALUE OF AIR-CONDITIONING

Mr. SNYDER. Let me make this one observation concerning the air-conditioning. You said with reference to the storage and care of paper in the past, that some of this storage of paper was affected by the atmospheric conditions within the plant.

Mr. GIEGENGACK. Yes.

Mr. SNYDER. If you get air-conditioning there will be a general saving?

Mr. GIEGENGACK. Yes, sir.

Mr. SNYDER. In other words, if you had a $100 job, if you get this plant completed as has been outlined here, with the consequent efficiency, the saving from paper would amount to about 10 percent, would it not?

Mr. GIEGENGACK. Yes, sir; I should say there would be efficiency and some saving in the use of paper. At the present time in the press rooms we have not sufficient time to get the paper properly ready for the presses for a particular job. Ordinarily, the paper has to be seasoned for a few days before it is ready for use in the press room in which it is to be run.

At the present time, under our present arrangement, we bring the paper in from the warehouse and put it on the presses on the same day. We have no facilities for seasoning the paper for use in the atmosphere in that particular press room.

There will be a saving of time in the running of the presses, but it is very hard to estimate just what that will be. The figure of 10 percent, I should say, is rather conservative, and I think it is reasonably correct.

Mr. TABER. What percentage of all the Government Printing Office work is regular stuff and what percentage of it is propaganda, colored literature, and all that kind of monkey work?

Mr. GIEGENGACK. Well, Mr. Taber, the Government Printing Office does not do any color work.

Mr. TABER. They get that done outside?

Mr. GIEGENGACK. That is all done outside, by outside agencies, mostly.

Mr. TABER. How do they get that out? For instance, how does the Bureau of Reclamation get out all of that boloney that they publish?

Mr. GIEGENGACK. They submit the job to us for production, but we are not equipped to do that class of work. We give them permission to go out and get competitive bids and get it produced outside because we have no equipment with which to do color work.

We have no control over the printing. We cannot say whether it is to be produced or not.

Mr. LUDLOW. You printed a cow at one time in the Congressional Record, but it was not in colors.

Senator Tillman had a cow printed in the Record. The udder was in Wall Street and the head of the cow was in California, illustrating the point that Wall Street was milking the cow while people in other parts of the country were feeding it.

Mr. WOODRUM. Coming back to the question of the amount of money again, how much money have you got now; what is the status of your funds?

STATUS OF CURRENT APPROPRIATION AND PROPOSED EXPENDITURES FOR 1938

Mr. MARTIN. The amount of $2,200,000 was appropriated, and the expenditures up to May 14, 1937, totaled $867,727.66.

The appropriation asked for continuance is $1,500,000, which, if granted, will make available $3,700,000, in all.

Mr. WOODRUM. How are you going to spend that?

Mr. MARTIN. There will be an expenditure required for the completion of the annex building, scheduled for about this fall.

Mr. WOODRUM. Do you mean the warehouse?

Mr. MARTIN. The warehouse; and the annex building will require expenditures because we are asking for bids on June 29, indicating that we will have that building under contract in the early part of the fiscal year 1938.

Mr. WOODRUM. How much will it take to complete the warehouse? Mr. MARTIN. In money?

Mr. WOODRUM. Yes.

Mr. MARTIN. According to the estimate we have just had, the amount is $1,442,768, exclusive of the cost for plans on this particular job.

The $1,442,768 will pay for the site, for the construction, and for any minor work that has to be done after the main contract.

Mr. TABER. How much have you spent so far?

Mr. MARTIN. We have spent so far $867,727.66.

Mr. TABER. That means you have about $600,000 to pay?
Mr. MARTIN. Yes, sir.

Mr. TABER. How much will you pay out on the annex building next year?

Mr. MARTIN. The estimate is that the annex building will require $5,664,607, which includes the site, the general construction, mechanical equipment, elevators, and lifts, and reservation for contingencies.

Mr. TABER. How much will you spend next year?

Mr. MARTIN. We estimate we will spend the difference between $3,700,000-about $2,700,000.

Mr. TABER. About $2,700,000 next year?

Mr. MARTIN. Yes, sir.

Mr. TABER. And you will let the contract about the 1st of September?

That

Mr. MARTIN. We have one contract under way now. Mr. WOODRUM. How long will you be working on that? sounds like a pretty heavy expenditure in a short space of time. Mr. MARTIN. There will be an amount of $600,000 on account of the warehouse.

Mr. WOODRUM. After the warehouse is completed you will have about $2,200,000 left?

Mr. MARTIN. About $2,000,000.

Mr. WOODRUM. How will you spend all of that in 1 year if you do not let the contract until September or October?

Mr. MARTIN. The cost of 8 months of construction would probably run close to $2,000,000 for the annex building.

Mr. TABER. You do not need as much money as you are asking for here, according to that, by about $500,000.

Mr. MARTIN. Then there is also the amount for rent of temporary quarters while they are preparing for the demolition of the old building. Mr. TABER. Can you not get along all right if we cut five or six hundred thousand dollars out of this figure?

Mr. MARTIN. I would doubt that.

Mr. WOODRUM. Mr. Giegengack, do you have anything you wish to say to us in addition to what has been said?

Mr. GIEGENGACK. No, sir; I think Admiral Peoples has covered the case completely.

Mr. WIGGLESWORTH. There are no additional temporary employees provided for under this item, in addition to those you told us about, Mr. Martin?

Mr. MARTIN. No, sir.

Mr. WIGGLESWORTH. It is all one force?

Mr. MARTIN. Yes, sir.

TREASURY BUILDING, WASHINGTON, D. c.

RENEWING ELECTRIC WIRING SYSTEM

Mr. WOODRUM. The next item appears in House Document No. 215, for the Treasury Building, Washington, D. C., as follows:

For renewing the electric wiring system of the Treasury Building, except elevators, and changing said system from direct current to alternating current, including feeders, switches, transformer vaults, switchboards, panelboards, and other requisite equipment, fiscal year 1937, to remain available until June 30, 1938, $100,000.

Let us have your statement in justification of that item.

Mr. REYNOLDS. The electrical system now in the Treasury Building is inadequate to meet present demands. The wiring is old and patched and incapable of carrying the loads now imposed upon it and which must be further added to. This condition results not only in insufficient and unsatisfactory operation but constitutes a dangerous fire hazard. It is desired to renew the entire wiring system, exclusive of that affecting elevators, and to change from direct to alternating current. This should result not only in better service, but should materially reduce the cost of operation. A copy of the report of the inspecting engineers recommending the replacement of the present system, together with their estimate of the cost of the same, accompanies this submission.

Mr. WOODRUM. Is that a short statement?

Mr. REYNOLDS. Yes, sir.

Mr. WOODRUM. You may put it in the record at this point. (The matter referred to is as follows:)