The above statement of the treasurer's internal-revenue stamp account (new series) agrees with the balance admitted by him, and as shown by the books of his office.

Internal-revenue stamps, old series, balance on hand March 31, 1901.

The accounts of the several collectors of internal revenue for the old series of internal-revenue stamps have been balanced and closed upon the books of this office by crédits for the respective amounts called in and received by the treasurer, which are made a corresponding charge to the treasurer's internal-revenue stamp account (old series).

The above statement shows the denomination and value of the internal-revenue stamps of the old series which stand charged to the treasurer, agreeing with his statement.

These stamps (old series), having been called in, will be destroyed in the presence of a committee appointed to witness and verify their destruction, and upon the certificate of such committee the treasurer will receive credit for the stamps destroyed.

PRINTING AND SUPPLY DIVISION CONNECTED WITH THE AUDITOR'S

OFFICE.

On June 1, 1900, by order of the governor, a division of printing and supplies was established, to be operated under the direction and supervision of the auditor's office, subject to the approval of the governor, for the purpose of doing necessary official printing for the several executive departments of the insular government and the bureaus and offices connected therewith, and also for furnishing to them such stationery supplies as might be required for official use. A printing plant owned by the Post-Office Department of the United States, located in the building occupied in part by the San Juan postoffice, was purchased at a cost of $1,000, and a stock of paper for $300. A printer and a printer's assistant were employed. Later, in September, 1900, the increased work made it necessary to secure the services of another printer. Stationery supplies have been purchased at very reasonable rates, a portion from the Treasury Department of the United States, the Secretary of the Treasury having kindly authorized the furnishing of such supplies at the prices of the Treasury Department stationery contract. Other supplies of stationery required have

been procured on competitive bids from dealers in the United States. The cost of official printing done for the departments and bureaus of the insular government, including the courts, the internal-revenue offices, the commission to compile and revise the laws of Porto Rico, the commission to represent Porto Rico at the Pan-American Exposition at Buffalo, N. Y., the executive council, and the house of delegates has been at rates greatly below the prices which have been paid to local printers in San Juan, the reduction in cost in many cases averaging from 50 to 60 per cent below local prices. In the matter of stationery supplies furnished, the reduction in cost below prices formerly paid to local dealers on the island has been even greater. The work turned out by the printing office has been neat, correct, and satisfactory in every respect.

Owing to the limited capacity of the printing plant and the large amount of printing required for official stationery and various forms and blanks required for the several departments, it has not been practicable to do the larger jobs of official printing, such as printing the bills and laws of the legislative assembly.

A systematic book account is kept of all stationery received in the printing and supply division and issued therefrom. Issues of stationery supplies are made upon requisitions signed by the head of the proper department or office, and requisitions of like character are required for printing ordered. The cost price of stationery supplies issued and of printing done is charged up in a ledger account to the respective departments and offices.

The following statement of the transactions of the printing and supply division, showing actual expenditures as against cash receipts, cost value of printing done and stationery furnished, and present worth of plant and stock, shows an actual gain from June 1, 1900, to February 28, 1901, of $1,180.82. This is based upon credits for cost values of work done and stationery supplies issued, without taking into consideration the great saving effected in expenditures by reason of reduced prices already referred to.

Printing and supply division.
DR.

To amount paid Post-Office Department for printing plant and stock of

To amount paid Farmer & Son, New York, for new stock of type

and printers' supplies..

525.75

Paper for printing office:

To amount paid Whiting Paper Company, New York, for paper purchased for printing office.

$1,696. 10

To amount paid Treasury Department for stationery and stationery supplies purchased for issue, at prices of Treasury contract..... 2,806.83 To amount paid to Tower Manufacturing and Novelty Company, New York, for blank books purchased for issue to the several departments and bureaus

810.62

To amount paid Remington Typewriter Company for stationery (typewriting paper) purchased.

84.41

To amount paid for freight and cartage in transportation of paper and stationery supplies

265.68

To cost of printing and preparing books for use in keeping accounts of the printing and supply division.......

17.80

To salaries of printers from June 1, 1900, to February 28, 1901
To incidental expenses of printing office, June 1, 1900, to February
28, 1901.

1,614.87

72.46

Total...

9, 322.82

CR.

By amounts deposited with the treasurer of Porto Rico to credit of miscellaneous receipts on account of sundry sales, printing and supply division:

For unserviceable paper sold.

For boxes sold....

$50.25

13.60

$63.85

By amount of printing completed and delivered, stationery furnished upon requisitions to the several departments, bureaus, and offices of the insular government, as charged up to the same, at actual cost of work and supplies...

By amount of partially completed jobs of printing, for the month of
February, at actual cost of time and value of material entering into
the work

By value of the stock of paper for printing on hand in printing office
February 28, 1901, as per inventory -

6, 374.84

400.00

600.00

By value of stationery and stationery supplies on hand in printing
and supply division February 28, 1901, as per inventory
By present worth of cases for stationery and stepladders, cost price.
By present worth of printing plant, $1,000, and new stock of type
since purchased, $525.75...

1, 385.90

128.30

By present worth of tables, ladders, and desk procured since purchase of plant

Total credits

Less expenditures as herein charged..

Net gain from June 1, 1900, to February 28, 1901.

1,525.75

25.00

10, 503. 64

9, 322.82

1, 180.82

This statement is brought down only to February 28, 1901, for the reason that the last inventory of stock was taken on that date.

ORGANIZATION OF AUDITOR'S OFFICE AND ASSIGNMENT OF WORK.

.

The present organization of the auditor's office consists of the auditor, the deputy auditor, fifteen clerks, one messenger, and a janitor. The office has its rooms in the intendencia building, where it has

been located since its original organization under the late military government.

The auditing regulations promulgated by the War Department to carry into effect the Executive order of May 8, 1899, providing for the appointment of an auditor and treasurer of Porto Rico, and the establishment of a system of audit, were prepared by myself early in May, 1899, at the request of the Assistant Secretary of War, and approved and adopted by the War Department. These regulations embody the principles and rules which now govern and regulate the system of auditing, and are made part of General Orders, No. 87, dated June 26, 1899, which were issued to carry them into effect. A copy of said regulations is herewith submitted, marked “Exhibit A."

On May 23, 1899, I accepted the appointment of auditor for Porto Rico, under the military government, which had been tendered to me by the Secretary of War, and qualified by taking the oath of office in Washington. I arrived at San Juan May 29, 1899, and immediately began the preliminary work of organizing the auditor's office, and was busily engaged from that time until July 1, 1899, in securing and equipping the necessary office rooms, preparing and having printed the necessary forms and blanks for auditing and for the rendition of accounts by the various civil officers under the military government, and devising and having prepared and printed the books required to inaugurate the auditing system, both in the auditor's and treasurer's offices.

Everything was completed in time, and on July 1, 1899, the beginning of the fiscal year in Porto Rico, as in the United States, pursuant to the provisions of General Orders, No. 87, already referred to, the auditing system was carried into effective operation without any friction, and it has been found, by nearly two years' practical test, to work smoothly and satisfactorily in every respect.

Under the act establishing a civil government in Porto Rico, approved April 12, 1900, an auditor for the island is provided for, to which office I was appointed by the President and confirmed by the Senate of the United States, my commission being dated April 28, 1900, for the term of four years from the date thereof.

On April 30, 1900, not having received official notice of my appointment by the President as auditor, I was temporarily appointed acting auditor of Porto Rico by General Orders, No. 102, dated April 30, 1900, issued by command of the military governor, and late in the afternoon of said day, together with other officials temporarily appointed by said General Orders, I took an oath of office as acting auditor.

The day following (May 1, 1900) was set apart for the inauguration of the civil governor, and the departments of the insular government were closed. Early on the morning of May 2, 1900, the governor received official notice by cable of my appointment by the President

and confirmation by the Senate as auditor under the civil government, and I at once qualified under this appointment by taking the oath of office, and on said date notified the President (through the governor) of my acceptance of the office and qualification. Hence no official act was performed by me and no official signature made as acting auditor during the period of one day (May 1, 1900), for which I held the office of acting auditor under the temporary appointment conferred by General Orders, No. 102, of April 30, 1900.

Under the provisions of the Executive order of May 8, 1899, there were in the auditor's office, under the military government, an assistant auditor for customs accounts and an assistant auditor for postal accounts. The positions of assistant auditor of customs and assistant auditor of posts were discontinued pursuant to telegraphic orders from the War Department, by Special Orders, No. 45, issued March 1, 1900, by the military governor of Porto Rico, and the auditor was directed to assume the duties of said offices, which he continued to discharge without any assistant or deputy to June 30, 1900.

An appropriation is provided in the budget for the current fiscal year for the salary of a deputy auditor in the office of the auditor of Porto Rico, and pursuant to section 18, of the act of April 12, 1900, Mr. E. S. Rockwell was appointed deputy auditor from and after July 1, 1900.

While the auditor is present all certificates on the settlement of accounts and claims, all warrants, requisitions, official correspondence and other official papers are signed by him in person. During the absence of the auditor the deputy assumes the duties of the auditor,* and signs as acting auditor.

The following is the general assignment of the work of the office: DISBURSING ACCOUNTS AND MISCELLANEOUS CLAIMS.

To the deputy auditor, with one assistant clerk, and a stenographer and typewriter (who also performs work for the auditor and for other branches of the office), is assigned the examination and stating of the accounts of disbursing officers, other than those pertaining to the internal-revenue service, the settlement of miscellaneous claims, and the keeping of an account of the subheads of appropriations. The deputy also assists the auditor in any special matters which may be assigned to him.

CUSTOMS REVENUE ACCOUNTS.

The examination and settlement of the accounts of revenues from customs receipts collected under the act of April 12, 1900, are assigned to one principal clerk and five assistant clerks.

INTERNAL-REVENUE SERVICE.

The accounts of the collectors of internal revenues for receipts and disbursements, and of internal-revenue stamp agents for revenues collected and for compensation, are examined and stated by one principal clerk and one assistant clerk.