Mr. CAMP. A $1,900 inspector would get $2,300. The average salary of an inspector is slightly more than the average salary of all customs employees.

Mr. WATSON. Is the overtime reckoned on the 8-hour law?

Mr. CAMP. The overtime law provides when a customs officer is called on to perform service in connection with the unlading of cargo or baggage from a vessel or vehicle, after 5 o'clock at night, or on Sundays and holidays, he shall be entitled to overtime pay.

If the service is less than an hour, no overtime pay is allowed;. if it is more than an hour, a minimum of half a day's extra pay is allowed and, if it continues for three hours, a full day's extra pay is granted. The maximum that an inspector might receive in one night in extra compensation is two and one-half times a day's pay and, on Sunday, he receives double pay and, at night on Sunday, he receives double his overtime. So, on Sunday an inspector might receive, by working day and night, four and a half days extra pay. That is the maximum-on Sundays and holidays.

Mr. BACHARACH. Of course, it is rather unusual for a ship to come in on Sunday

Mr. CAMP. It is very unusual for an inspector to be called on to work all that time, but not unusual for a boat to arrive on Sunday.

Mr. CRISP. Are the salaries of inspectors and appraisers at all of the ports of the United States the same? I mean these inspectors and appraisers who are doing the same work in the different ports, do they get the same pay, or is there a higher salary allowed at some ports than at others?

Mr. CAMP. The classification has endeavored to pay equal salaries for work of equal importance, and has not taken into consideration the higher cost of living at certain points. Of course, some of the larger ports, where an inspector is in charge of the unlading of cargo at a very important pier, his responsibilities are much greater than the responsibilities of an inspector at a place where they have no comparable work.

Mr. CRISP. Of course, I recognize the difference in the cost of living, and that is why I asked you the question if the salaries were uniform in the port at the small place and at New York, for instance.

Mr. CAMP. At New York the opportunities for promotion to places of higher responsibility are greater, and for that reason the top salaries are higher than at the smaller ports, but the averagesalary at New York is about the average salary of the entire customs service. The average is nineteen hundred and some odd dollars for the entire service, and $1,990 is the average for the port of New York. Generally speaking, I would say the difference in the cost of living at the various places has not entered into the question of salary adjustments to any appreciable extent.

Mr. BACHARACH. Which is the next largest port to New York from the standpoint of money received from customs-Boston?

Mr. CAMP. Boston, generally. Philadelphia was second one year. New Orleans is fourth.

Mr. BACHARACH. Suppose you put that in the record-the comparative standing.

Mr. CAMP. Yes; I will prepare a statement based upon the collections.

Mr. BACHARACH. Of the customs duties.

Mr. CAMP. Yes.

Mr. BACHARACH. Because that is a thing that will probably concern us more than anything else.

Mr. CAMP. I would suggest that Mr. Keddy be called upon to make a statement with reference to the survey of the customs. salaries.

Mr. BACHARACH. We are going to have that.

Mr. CAMP. My statement this morning with regard to possible administrative changes has been very sketchy; it was not my purpose to make it complete.

Mr. BACHARACH. You may take ample time to revise your remarks for the benefit of the committee, particularly. That is the thought entirely of the committee.

Mr. CRISP. We are seeking light; that is what we are after; to get a picture of the whole situation as the department views it.

Mr. CAMP. I think it would be advisable for this committee, after it has made some study in the field-and I understand it is the purpose, or is it the purpose to make some study in the field?

Mr. BACHARACH. We are going to ask to be allowed to do that and I think it is the purpose of the committee to take advantage of it. Mr. CAMP. The department would be pleased to be called upon after it submits its recommendations for administrative changes and be afforded an opportunity to appear and explain its views. Mr. BACHARACH. Thank you very much, Mr. Camp.

Mr. WATSON. Are there now many small ports where but few boats enter during the year?

Mr. CAMP. The oldest customhouse in the United States, or the first customhouse in the United States, was at Yorktown. been closed for a long time.

Mr. WATSON. Have you closed all.

That has

Mr. CAMP. There are some customhouses and customs stations that transact practically no business. Their only justification is the preventive work that may be performed.

Mr. WATSON. Does the Government employ inspectors at those places?

Mr. CAMP. We have some one-man ports and some two-men ports. A one-man port is not a very desirable thing if it can be avoided. The title of these men generally is deputy collector and inspector. Mr. WATSON. Their salaries, of course, are not as large as paid in more important ports of entry.

Mr. CAMP. No, sir. I desire to thank you, Mr. Chairman and gentlemen of the committee.

STATEMENT OF JOHN L. KEDDY, INVESTIGATOR, UNITED STATES BUREAU OF EFFICENCY

Mr. KEDDY. About a year ago General Andrews requested our bureau to make a survey of the salaries in the customs service and, in keeping with that request, I had the personnel section of the customs division send out the old field form of the Personnel Classification Board, which was sent out to all of the field services of the Federal Government in 1923. We utilized that form so that it would eliminate the expense of printing any new forms. The forms were sent out to the 47 customs districts with proper instructions to fill them out in duplicate and transmit both the original and duplicate to the customs division in Washington so that a classification of the various positions described therein could be made.

After these forms arrived, I made a cursory survey of the several districts; that is, of the sheets submitted by the several districts, and then I studied the volume of business conducted by the 47 districts throughout the United States and set up a table showing the income of the district, the salaries paid to the collector and the assistant collector, the total of the administrative expenses for the conduct of the customs activities within that district, the total revenues collected in 1926, the number of subports (both the permanent ones and the seasonal ones), the total value of imports for 1926, and the number of vessels cleared. Then, after I got that information together, I studied it and determined on a proper grouping of the 47 districts in order of importance; that is, in the order of the amount of revenue

collected, the enforcement activities that were carried on, and the number of vessels cleared.

Mr. BACHARACH. When you say "enforcement activities," you mean prohibition?

Mr. KEDDY. I mean stopping smuggling.

Mr. BACHARACH. Just smuggling?

Mr. KEDDY. Yes; I considered all of these different factors. I did not go on revenue alone as has been the custom in handling salaries of the Postal Service, for instance; that is, in respect to the salaries of postmasters and their important assistants, they apparently go on revenue solely. I felt that certain ports with large revenues, but much less than at other ports, had a problem in my opinion far more important in enforcing the customs laws than another port with larger revenue.

I will give you a good illustration of that. You take New Orleans: New Orleans had a revenue of $29,000,000 in 1926; San Francisco only had $12,000,000, yet I placed San Francisco in the same group with Philadelphia and Boston, immediately next to New York, and I dropped New Orleans down in the third highest group along with Seattle, Chicago, Baltimore, Detroit, Los Angeles, and Buffalo. I put more stress on size of organization than on revenues.

Mr. CRISP. On what?

Mr. KEDDY. On the size of the administrative organization rather than on the revenues collected. For instance, if we will take Chicago and take Portland, Oreg.: Portland, Oreg., has a small organization in comparison with Chicago. They are two entirely different types of districts; one is a maritime district. Chicago is more of an internal port even though it is a big lake port and has a great deal of lake traffic that it clears. So I grouped all of these 47 districts into 8 groups. The highest was New York and the lowest was Salt Lake City-the Utah-Nevada district. There are 3 people there in that district and there are about 3,000 in New York. There are the two extremes.

Mr. BACHARACH. What, for instance, do they take in in Salt Lake City?

Mr. KEDDY. There are three people there; the administrative expense amounts to $7,000 and the revenues amount to $42,000; whereas, in New York, the administrative expenses are $7,000,000, instead of $7,000, and they take in $323,000,000 in the way of

revenues.

Mr. BACHARACH. It costs 16 per cent to collect in Salt Lake City; I have not figured out the basis of cost in New York.

Mr. WATSON. What is the difference between New Orleans and San Francisco? You said San Francisco collected $12,000,000 and New Orleans $29,000,000.

Mr. KEDDY. Yes. San Francisco has an administrative expense of $800,000 and $12,000,000 in revenue; while New Orleans has $500,000 of administrative expenses and $29,000,000 in the way of

revenues.

Mr. WATSON. Then why should San Francisco be placed so far below New York and other places?

Mr. KEDDY. Because San Francisco has a much bigger problem of administering the affairs of the customs service than New Orleans has. New Orleans revenues are largely made up of sugar duties;

whereas San Francisco has a tremendous variety of merchandise coming in from the Far East.

Mr. BACHARACH. And probably there is more smuggling attempted at San Francisco than there is at New Orleans.

Mr. KEDDY. Yes. There is, of course, some smuggling in New Orleans, as there is at every port, like narcotics.

Mr. BACHARACH. That is what I had in mind particularly at San Francisco.

Mr. KEDDY. Yes. San Francisco is a very difficult point to handle. As to the size of the administrative expense, of course there are far more men employed there than there are at New Orleans and, naturally, it seems to me to be reasonable that a man who has a great variety or activities and 50 per cent more employees to supervise, has a more responsible position than the other man, even though the revenues are just the other way. It is a comparatively simple matter to collect revenue from sugar; but it is not so easy to collect revenue from a million and one things that the United States imports from China, Japan, and the Far East. The examining of the merchandise shipped is much more difficult.

As I was saying, the Postal Service salaries are regulated more by the amount of revenues, and that is an entirely different type of service and I presume it is a perfectly logical thing to go by receipts there, because there is a direct indication of volume of business; it is all one type of business. I just wanted to bring that out to show you why you can not follow any general principle for two different types of service.

Mr. BACHARACH. I think you are absolutely correct in your deduction.

Mr. WATSON. Do you know the amount of duty collected through the post office?

Mr. KEDDY. You mean for the different large cities?

Mr. WATSON. Yes.

Mr. KEDDY. The collections are $700,000,000, I understand.

Mr. WATSON. In the Post Office Department alone.

Mr. KEDDY. Yes, sir; I think that is the correct amount$700,000,000.

Mr. WATSON. Not through the post office?

Mr. KEDDY. I thought you were referring to the collecting of the

revenues.

Mr. WATSON. Oh, no; I mean the amount of duties we collect through the Post Office Department.

Mr. KEDDY. Through parcel post, you mean?

Mr. WATSON. Yes; through parcel post.

Mr. KEDDY. It is about $27,000,000, is it not, Mr. Camp?

Mr. CAMP. It is about $28,000,000, I think.

Mr. WATSON. I asked that because there are a great many foreign parcels that go through the post office.

Mr. KEDDY. Yes, sir. In the large cities they have special bureaus what they call customs parcel-post bureaus.

Mr. CRISP. Mr. Keddy, in your recommendation, did you recommend any difference in the salaries of inspectors and appraisers at the different ports? As I understood from your remarks a while ago, you were dealing with the administrative officers in charge.