Except as to the listed extension and remodeling projects the foregoing does not include the numerous contracts, large and small, entered into for the proper maintenance and repair of occupied public buildings, now numbering over 1,000.

Economies.

During the fiscal year ended June 30, 1916, unexpended balances on completed building work, aggregating $391,404.66, were covered into the Treasury.

The aggregate sum available for the principal contracts for publicbuilding work let during the year was $14,232,605.83. The contracts let did not include all expenditures necessary for completion, but conservative reservations indicate that the total cost will approximate $12,100,000, thus resulting in a saving equal to the cost of fortytwo $50,000 post-office buildings.

Standardization.

Noteworthy progress in standardization has been made. A type of building has been designed for a post office which, with minor modifications to meet local conditions, can be utilized during the fiscal year 1917 in over 30 communities.

New Patent Office building.

No action has been taken under the authority contained in section 17 of the omnibus public-building act approved March 4, 1913, for the preparation of plans and estimates for "a building to accommodate the Patent Office of the United States," for the reason that the limit set for the cost of such work, viz, $5,000, is insufficient for the purpose, and the additional amount estimated for the purpose was not appropriated. The department is ready, whenever the necessary appropriation is provided, to proceed promptly with this work, as it can be carried forward independently of and without interference with the regular building program of the Supervising Architect's Office.

National archives building.

In conformity with the provisions of section 21 of the omnibus public-building act approved March 4, 1913, designs and estimates have been prepared for a national archives building, and have been submitted for the approval of the commission created by said act.

Interior Department office building.

The contract for the Department of Interior office building was let during the period covered by this report, and work is progressing at a rate indicating the probability of its completion within the time. stipulated therefor, and well within the limit of cost fixed by the Congress.

Government buildings in Washington.

It becomes increasingly evident with the passing of each year that the additional buildings, departmental and otherwise, required in the city of Washington for the proper conduct of the Government's business ought to be constructed. The real estate for the most important of the departmental buildings was bought years ago. Not only is the Government carrying these expensive lands at a large annual cost, but it is paying high rentals for insufficient and unsatisfactory quarters in private buildings throughout the city. There is a loss of efficiency and a lack of economy in conducting the Government's business in these circumstances. Moreover, the erection of the necessary Government buildings in Washington will greatly beautify the city, while more satisfactorily serving the actual necessities of the Government. I earnestly recommend that the Congress give consideration to these important projects and grant the necessary authority to begin work upon them.

COAST GUARD.

The organization of the Coast Guard has been completed. New regulations to govern the service have been prepared and promulgated and arrangements have been made whereby the operation of the Coast Guard may be promptly transferred to the Navy Department in time of war or whenever the President shall so direct.

Ice patrol to promote safety at sea.

Two Coast Guard cutters have continued the patrol of the ice regions in the North Atlantic, in accordance with the terms of the International Convention for Safety at Sea, which was approved by the Senate December 16, 1914. The total cost of the patrol for 1915 was $69,236.39, and up to September 1, 1916, the proportionate amounts due the United States in accordance with article 7 of the convention have been received from Belgium, Canada, Denmark, Great Britain, Italy, Norway, Russia, and Sweden. Through the usual diplomatic channels the several powers will be advised of the sums due from them to defray the cost of the patrol for 1916.

New ships.

In addition to the new cutters recommended in last year's report, it will be necessary to provide three new cutters during the next fiscal year. The 35-year old Thetis, formerly stationed at Honolulu, having become unfit for further use, has been condemned and sold

to the highest bidder. This important station is thus left without the services of a Coast Guard cutter, and it is recommended that authority be given to construct a new vessel at a cost of $400,000. The Morrill, stationed at Detroit, Mich., is now over 27 years old and entirely incapable of performing efficient service on the Great Lakes. The vast amount of commerce on these great inland seas makes it imperative that a suitable cutter be maintained there. I therefore ask for authority to construct a new cutter to replace the Morrill at an estimated cost of $350,000. The vicinity of Cape Hatteras, as well known, is one of the most dangerous stretches of coast along our entire seaboard. More marine disasters occur and more derelicts originate on this section of the coast than on any other. The Seminole, stationed at Wilmington, N. C., covers the coast from Hatteras south to Charleston; the Onondaga, stationed at Norfolk, Va., covers the coast from Hatteras north to the capes of the Chesapeake, but frequently these two vessels alone are unable to cope with the amount of rescue work the Coast Guard is called upon to perform in those waters. It is therefore urged that a new cutter be authorized for this vicinity at a cost of $350,000 and stationed at Beaufort, N. C., to operate off Cape Hatteras, and to carry on derelict work along the Atlantic coast generally.

Coastal communications.

There can be no question as to the absolute necessity for adequate means of communication between and with Coast Guard stations along our coasts, both for saving life and property and to aid in the national defense. Present facilities are entirely inadequate, and I heartily concur in the recommendation of the Captain Commandant that the communication service of the Coast Guard be put in an efficient condition along the lines suggested.

Pay of seamen.

It is becoming increasingly difficult to enlist sufficient men to man properly the various cutters of the Coast Guard because of the low rates of pay in the Coast Guard as compared with the existing rate of pay in the merchant marine for like services. Between the years 1863 and 1908 the law authorized the Secretary of the Treasury to fix the pay of the enlisted force on the cutters at rates not to exceed those paid for like services in the merchant marine, and the practical operation of this law was most satisfactory. In 1908 a law was passed increasing the rates of pay of the enlisted force of the Coast Guard 20 per cent, and the law officers have held that the rates thus fixed can not be changed by administrative act. Meanwhile the pay of the

men in the merchant service has advanced, and in the past two years has increased to a considerable extent. Since the Coast Guard must obtain its seamen in competition with the merchant marine, it is earnestly recommended that the Congress either increase the present rates of pay in the Coast Guard or reenact section 2754 of the Revised Statutes, which latter action would enable the Secretary to increase the rates of pay of enlisted men to meet the wages paid in the merchant marine for like services. Action in this important matter is imperative.

Aviation.

The provision in the naval appropriation act approved August 29, 1916, authorizing aviation facilities for the Coast Guard, was very gratifying to this department. One of the chief functions of this service is the saving of life and property from the perils of the sea. It is obvious, therefore, that nothing should be left undone that will contribute to the complete fulfillment of this purpose, and the Coast Guard should be able to avail itself of every reasonable and practicable means which has this end in view. Aviation has now advanced to such a stage that air craft can be advantageously used to supplement the present equipment of the Coast Guard in saving life from shipwreck and searching for derelicts, and as the service must operate as a part of the Navy during national emergencies the aviation equipment and personnel of the Coast Guard can not fail to be of value as a military asset in any plan of national defense that may be adopted by the Navy. Unfortunately in the closing hours of the last session the Congress failed to provide the necessary funds in the general deficiency bill to carry out the requirements of law for aviation in the Coast Guard. I therefore strongly recommend that ample funds be provided in the first deficiency appropriation bill that may be passed at this session of the Congress.

WAR RELIEF WORK.

The accounts of many of the officials who were charged with this work have not yet been received and settled. Over 11,500 obligations, aggregating $666,633.40, have been received by the Treasurer of the United States, and on October 25, 1916, $343,070.99 had been collected. Many of the obligations remaining unpaid will never be collected, for in some instances it has been impossible to locate the signers, others are unable to pay, some are dead, and a few have refused to reimburse the Government for funds advanced to them in their distress. Nevertheless, the work of collecting these obligations is proceeding in the office of the Treasurer with a fair degree of success. From January 1 to October 11, 1916, $10,033.53 was collected at a cost of $5,210.88, notwithstanding the fact that the Treas

vrer's office is not equipped, and therefore has poor facilities, as a collection agency.

RETIREMENT OF CIVIL SERVICE EMPLOYEES.

The need for an adequate civil service retirement law is becoming more imperative each year. The Treasury Department bears upon its rolls a large number of aged employees whose efficiency is gradually waning. The introduction of new and improved methods of performing the constantly increasing volume of work in the department has served to emphasize the need for making some provision for the older employee who is unable to keep step with progress. It does not seem humane or fair to discontinue arbitrarily the services of superannuated employees who have given their entire energies and spent the best years of their lives in the service of the Government. To do so would in most cases leave the employees without any source of income and result in serious hardship. To reduce aged employees does not entirely meet the needs of the case, as it leaves. the employees still on the rolls of the department.

I believe that the enactment of an equitable retirement law for superannuated and disabled employees of the civil service in the Treasury Department would result in actual economies and increased efficiency in the handling of the business of the department, and I therefore recommend this subject to the Congress for its serious consideration.

ROCK CREEK AND POTOMAC PARKWAY COMMISSION.

The Congress has authorized a total expenditure of $1,300,000 to acquire the land necessary to connect Zoological Park and Potomac Park in order to carry out the project of opening up Rock Creek Valley for the beautifying of Washington, and has made an appropriation of $50,000 to get the work under way. The project is under the charge of a commission composed of the Secretary of the Treasury, the Secretary of War, and the Secretary of Agriculture, who are pushing it as rapidly as possible. It has made a report to the Congress describing the land which, in its opinion, should be acquired, which report was approved by the act of July 1, 1916. The commission is engaged in private negotiations with the owners-many of whom have indicated their willingness to dispose of land at reasonable prices-with a view to securing the completion of the entire project without unnecessary delay. Every effort is being made to insure the artistic development of the entire parkway scheme, and in this connection the Commission of Fine Arts has been freely consulted. The lands in the entire parkway will comprise an area of about 162 acres, 42 per cent of which is already