operations, that had been, during the worst years of the depression, dormant or suspended; their plants were closed down.

At any rate, my own knowledge prompts me to say that as to the distribution of the business of the Government Printing Office, more different paper manufacturers are getting part of the business than in previous years.

Mr. GIEGENGACK. That is right.

Mr. LAMBETH. I think that is undoubtedly correct.

Mr. ZIONCHECK. At this point, if I may interject one further thought; there were not very many bidders in the last few years, or in the last 2 or 3 years, because there was not any reason to bid, particularly, was there?

Mr. GIEGENGACK. I was just going to make that statement. Before the depression there were only a small number of bidders on Government work because certain mills had stepped up their production in such a way as to enable them to be very low bidders on Government business; and other mills, maybe higher class mills, were not interested in bidding as they could not bid low enough to get the business. But when the depression came along the paper industry found that many mills were operating away below cost. Under the N. R. A., however, they had to operate at cost or above, and that brought the price up to the point where practically all of the mills wanted to bid on Government work.

Mr. ZIONCHECK. Were all the bids about the same?

Mr. GIEGENGACK. For a while they were, and then they broke down.

Mr. ZIONCHECK. How long were they the same?

Mr. LAMBETH. About 2 years, I think.

Mr. GIEGENGACK. Was it that long?

Mr. LAMBETH. Yes; during the life of the N. R. A. We have been following that for a brief period. I believe it was only in December that they really broke down, was it not?

Mr. GIEGENGACK. There were a few breaks before that, I believe. Mr. LAMBETH. Yes.

Mr. GIEGENGACK. It was on the last bids however, that several of the mills broke down in price.

Mr. SNYDER. In other words, during the period of 2 or 21⁄2 years, the amount of business to be done was very limited and the plants would put in bids just so that they could operate, let us say, on a very small margin, or at no profit at all, in order to keep their plants running; because they were put to the expense of maintaining the plant whether it was running or not, they had so much overhead to carry, and they thought it better to operate even at some cost rather than to close down.

Mr. GIEGENGACK. Some of them were operating at cost and some below cost, and it did result, in some cases, in very low wages for the help.

Mr. LAMBETH. Of course, Mr. Chairman, in connection with the expenditures for paper, it is needless for me to reiterate what we all know: that there has been a tremendous increase in the volume of printing for these agencies of the Government, particularly the numerous recovery and relief agencies.

Mr. SNYDER. That has been brought out.

52006-3618

Mr. LAMBETH. Indeed, I am sure the committee knew that without anybody saying it.

Mr. GIEGENGACK. The last paper contracts that were let would show you the spread of the contracts. I think the last awards covered 62 mills, so that they were spread around quite a bit.

Mr. SNYDER. We are glad to have that explanation for the record.

PURCHASES OF MATERIALS OTHER THAN PAPER

Mr. SNYDER. Are you able now to take advantage of discounts? Mr. GIEGENGACK. We are and we do.

Mr. SNYDER. You make purchases of other materials, amounting to over a million dollars. What are the principal commodities entering into those purchases, and how do prices for these sundry articles compare with prices of last year?

Mr. GIEGENGACK. I will supply that information from our purchasing department, for the record, Mr. Chairman.

Mr. SNYDER. I would suggest that you pick out some of the principal items and insert the comparative cost, if you will, please. (The statement requested is as follows:)

Comparative statement showing cost on orders of principal materials, other than paper, for the fiscal years 1934 and 1935

COST OF WORK DONE OVER 10-YEAR PERIOD

Mr. SNYDER. I wish at this point in the record you would please insert a table similar to that that we have had in previous years, showing a 10-year cost of all work accomplished at the Government Printing Office, arranged by departments and establishments. Mr. GIEGENGACK. We shall do that.

7

Charges for work produced by the Government Printing Office in fiscal years 1926-35, inclusive-Continued

Customs Court

District of Columbia:
Government.

Emergency

Employees' Compensation
Commission

Executive Council.

Export-Import Bank.

Farm Credit Administration..

Federal Alcohol Control

Federal Aviation Commis

Federal Board for Voca

Federal Communications
Commission.

Federal Coordinator