The daily sentinel., 1909-12-07

- AAf-' VI buAAtlluk Tue fdudls III
crease the cost by s75. .435 900. to 4
total Of $375.2O1,O 900.
The increase in the cost OF engin-
eering and construction Is due to
substantial enlargement OF the plan
OF construction by widening the ca
nal 100 feet in the Culebra cut and
by increasing the dimensions OF the
locks. to the underestimate of the
quantity of the work to be done un-
der the original plan, and to an un-
derestimate of the cost of labor and
materials, both Of which have greatly
enhanced in price since the original
estimate was made
I'm order to avoid a deficit for the
ensuing fiscal ye-., i directed the
heads OF departments in the prepara-
tion of their estimates to make them
as low as possible consistent with i'm
peratiye governmental necessity. The
result has been, as / am advised by
the secretary of the treasury, that
the estimates for the expenses of the
government for the next fiscal year
ending June 80. 1911, are less than
the appropriations for this current
fiscal year by S42,S1S,O0O. So far as
the secretary of the treasury is able
to form a judgment as to future in
come. and compare it with the ex-
penditure for the next fiscal year
ending June 80. 1911. and excluding
payments on account OF the Panama
canal, which doubtless would be tax
en- up by bonds. there will be a sur
plus of $35,931.O0O
In the present estimates the
needs Of the departments and of the
government have been cut to the
nrtflF n NJ
tion on the part Of congress, so Of
ten made in times past. that the esti-
mates have been prepared with the
expectation that they may be re-
duced, will result in seriously ham
pering proper administration.
The secretary of the treasury
points out what should be carefully
noted in respect to this reduction In
governmental expenses for the next
fiscal year, that the economies are OF
two kinds: First. there is a saving in
the permanent administration of the
departments, bureaus and offices OF
the government; and second. there il
a present reduction in expenses by a
postponement of projects and i'm
provements that ultimately will have
TO be carried out. but which are now
delayed with the hope that additional
revenue in the future will permit
their execution without producing a
deficit.
at has been impossible in the
preparation of estimates greatly to
reduce the cost of permanent admin
istration. This cannot be done with
out thorough reorganization of bu-
reaus, Offices and departments. For
the purpose of securing information
which may enable the executive and
the Legislative branches to unite in
plan for the permanent reduction
of the cost of governmental admins
tration, the treasury department has
Instituted an investigation by one of
the most skilled expert accountants
in the United States. The result of
his work in two or three bureaus,
which, II extended to the entire gov
ernment, must occupy two or more
years, has been to show much room
for improvement and opportunity for
substantial reductions in the cost
and increased efficiency of adminis-
tration. The objection OF the invest
igation is to devise means to increase
the average efficiency of each en-
ploye. There is great room for i'm
provement toward this end, not only
by the reorganization of bureaus and
departments and in the avoidance of
duplication, but also in the treat
ment OF the individual employe.
Under the present system 1t con-
stantly happens that two employees re-
ceive the same salary when the work
OF one is far more difficult and i'm
portant and exacting than that of the
other. Superior ability is not re-
warded or encouraged. AS the classi-
fication is now entirely by salary. an
employe often rises to the highest
class while doing the easiest work for
which alone he may be fitted. An in
vestigation ordered by my predeces-
sor resulted in the recommendation
that the civil service be re-classified
according to the kind of work, so
that the work requiring most appli-
cation and knowledge and ability
shall receive most compensation. Il
believe such a change would be fair
er to the whole force and would per-
manently improve the personnel of
the service.
More than this, every reform di-
rected toward the improvement in
the average efficiency of government
employees must depend on the ability
of the executive to eliminate from
the government service those who
the degree of efficiency in all the de-
partments is much lessened by the
retention of old employees who have
outlived their energy and useful
ness, 1t is indispensable to any proper
system of economy that can be made
so that their separation from the ser
vice shall be easy and inevitable 1t
is impossible to make such provisions
unless there is adopted a plan of civ
II pensions.
Most of the great Industrial or
ganiZations and many of the we'll
conducted railways Of this country
are coming to the conclusion that
system of pensions for old employees.
and the substitution therefor OF
younger and more energetic servants
promotes both economy and efficiency
of administra ton
81 am aware that there is n strong
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