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HOUSE No. 800 
 
 REPORT 
 
 State Administration and ExpfeiDiTUEEs 
 
 SUBMITTED TO THE 
 
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 10 1931 
 
 GENERAL OOUR^^ 
 
 COMMISSION OX STATE ADMINISTRATION AND EXPENDtfmiES 
 
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 January, 1922 
 
 S^Jb<:tKA^ (K^<.WtJ 
 
 BOSTON 
 
 WRIGHT & POTTER PRINTING CO., STATE PRINTERS 
 
 32 DERNE STREET 
 
 1922 
 
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 BOCmENTX 
 
 CONTENTS. ^^- 
 
 t 
 
 PAGE 
 
 Personnel of Commission . . . . . . . . .5 
 
 Chapter 53, Resolves of 1921 7 
 
 Introduction . . ' . . . . . . . . . .9 
 
 Summary of Report ......... 11 
 
 Section I: 
 
 Waste and Duplication . . . . . . . . .16 
 
 Organization ........... 17 
 
 Departmental Reorganization ........ 23 
 
 Section II: 
 
 Budget . . .31 
 
 Section III: 
 
 Abandonment of Activities . . . . . . . .34 
 
 Curtailment of Activities . . . . . . . . . 36 
 
 Section IV: 
 
 Departmental Comments . . . . . . . . .40 
 
 Organization and Management ........ 41 
 
 Accounting System .......... 56 
 
 Section V: 
 
 Construction Forecasts . . . . . . . . .61 
 
 Section VI : 
 
 Personnel Matters .......... 63 
 
 Changes in Civil Service Regulations ....... 66 
 
 Section VII: 
 
 Centralized Purchasing ......... 71 
 
 Section VIII: 
 
 Registration Fees . . . . . . . . . .75 
 
 Charges for Special Examinations ....... 77 
 
 Fees for Institutional Cases ........ 77 
 
 Miscellaneous Charges ......... 79 
 
 Conclusion ............ 83 
 
 543 
 
COMMISSION ON STATE ADMINISTRATION AND 
 EXPENDITURES 
 
 Of the Senate. 
 
 Hon. GARDNER W. PEARSON . . / . Lowell. 
 
 Hon. LEONARD F. HARDY Huntington. 
 
 Hon-. CARL C. EMERY Newburypokt. 
 
 Of the House. 
 
 Mr. BERNARD EARLY, FiceCteVwiaw. . . Newton. 
 
 Mr. harry C. WOODILL Melrose. 
 
 Mr. JOSEPH L. LARSON Everett. 
 
 Mr. EBEN S. draper Hopedale. 
 
 Mr. JOHN MITCHELL Springfield. 
 
 Appointed by the Governor. 
 
 Mr. EDWIN S. WEBSTER, Chairman . . . Chestnut Hill. 
 
 Mr. CHARLES F. WEED ....*.. Brookline. 
 
 Miss MARION CHURCHILL Arlington. 
 
 Mr. GEORGE U. CROCKER Boston. 
 
 Mr. ADOLPH EHRLICH Brookline. 
 
 Mr. ROBERT T. BRADY, Secretary. 
 
^[)t Commonroealtl) of ifla00atl)xi0ett0 
 
 Chapter 53, Resolves of 1921. 
 
 • 
 
 Resolve establishing a Special Commission to investigate Prob- 
 lems RELATING TO THE ORGANIZATION, WORK AND EXPENDITURES 
 
 OF THE Existing Administrative Departments of the Com- 
 monwealth. 
 Resolved, That a special commission is hereby established, to consist of 
 three members of the senate to be appointed by the president, five mem- 
 bers of the house of representatives to be appointed by the speaker and 
 five persons not members of the general court to be appointed b}^ the 
 governor with the advice and consent of the council. The commission 
 shaU choose its chairman, and shall be known as the Commission on State 
 Administration and Expenditures. It shall be the dutj'' of the commission 
 to investigate and consider the administrative organization of the state 
 government, the functions and duties of the several departments, and 
 the possibihty of promoting greater efficiency and economy, including: 
 
 (1) Whether the provisions of Article LXVI of the amendments to the 
 •constitution and of the laws for the reorganization of the executive and 
 administrative work of the commonwealth into not more than twenty 
 departments have been carried out in letter and spirH, and what, if any, 
 administrative changes should be made to promote efficiency and to pre- 
 vent waste and duplication of effort and unnecessary expense. 
 
 (2) The method of administering the provisions of the constitution and 
 the laws with reference to the budget, and whether any changes are 
 advisable in method, procedure or law governing the appropriation and 
 expenditure of public money. 
 
 (3) Whether, having in view the entire programme of the state's under- 
 takings, the needs of the state, and the cost and relative importance of 
 each undertaking, there are any which it is advisable that the state should 
 curtail or wholl}^ give up. 
 
 (4) Concerning departmental and institutional business organization 
 and management, and the method of handling and auditing departmental, 
 institutional and other accounts of the commonwealth. 
 
 (5) Ways and means whereby comprehensive plans may be made in 
 advance concerning the needs of the several departments for a series of 
 j^ears, especially with respect to construction of new buildings, highways, 
 harbor improvements, development of state forests, and other pubUc 
 works. 
 
8 STATE ADMINISTRATION. [Jan. 
 
 (6) "V\^iether any chanp-es are desirable in the number of positions in 
 the services of the several departments or in the amounts and method of 
 classification and standardization of salaries, including those established 
 by law, having a view to economy on the one hand and to the value of 
 the services performed and to efficiency of management and operation on 
 the other. 
 
 (7) What changes in the method of purchasing supplies, disposing of 
 the products of the state's institutions and disposing of property not in 
 use and fit for salvage are desirable, with a view to the greatest economy. 
 
 (8) The advisability of taking further steps toward placing any of the 
 activities of the state on a self-supporting basis, through the charging of 
 fees or otherwise. 
 
 The commission shall report its findings, with such recommendations 
 and drafts for such legislation as it may deem expedient, to the next 
 annual session of the general court by filing the same with the clerk of 
 the house of representatives on or before the first Wednesday in January, 
 nineteen hundred and twenty-two. Upon the filing of such report, the 
 existence of the commission shall terminate. The commission shall be 
 furnished with rooms in the state house. The commission may give 
 pubhc hearings, and may require by summonses the attendance and testi- 
 mony of witnesses and the production of books and papers relating to any 
 matter under investigation, and may administer oaths to witnesses 
 testifying before it. Such summonses shall be issued and such oaths 
 administered by the chairman of the commission. A witness who gives 
 false testimony or who fails to appear when duly summoned shall be 
 subject to the same penalties to which a witness before a court is subject 
 when so offending. 
 
 The commission may expend such sums for expenses, travel, clerical 
 and other assistance as may be approved by the governor and council, 
 not exceeding such sum as the general court may appropriate; provided, 
 that the members of the commission shall not receive compensation 
 except for expenses actually incurred in the discharge of their duties. 
 The commission may avail itself of the services of the department of the 
 supervisor of administration. [Approved May 27, 1921. 
 
1922.1 HOUSE — No. 800. 
 
 REPORT ON STATE ADMINISTRATION AND 
 EXPENDITURES. 
 
 To the Honorable the Senate and House of Representative^ of the Common- 
 wealth of Massachusetts in General Court assembled. ^ 
 
 The Commission on State Administration and Expenditures, 
 created by chapter 53 of the Resolves of 1921, which is here- 
 with given, has undertaken the investigations provided for 
 therein, and hereby respectfully presents its report. 
 
 Chapter 53 was approved May 27, 1921. The personnel of 
 the Commission was selected about one month later, and its 
 first meeting was held on July 7, 1921. An appropriation of 
 $5,000 was made to carry on the work of the Commission. 
 
 Pursuant to the duties assigned to it, the Commission has 
 made studies of the functions and activities of the various 
 State departments, has held numerous meetings at which State 
 officials and others have appeared, and one public hearing. It 
 has visited various State institutions and other undertakings, 
 and has otherwise assembled as full information regarding .the 
 administrative activities of the State as the limited time at its 
 disposal has permitted. 
 
 The Commission early came to the conclusion that the 
 magnitude of the State's business was such that all branches 
 could not be covered in detail without sacrifice of their broader 
 aspects and neglect of the more helpful consideration of funda- 
 mental principles and practices. The Commission, therefore, 
 with some regret has had to confine its report largely to matters 
 of fundamental importance in the efficient administration of the 
 State's business. The controlling effort in its studies has been 
 to adopt a business point of view as far as is consistent with 
 the character of the activities. So far as possible, also, the 
 general questions of administration have been considered with- 
 out reference to the personnel of the existing organization. 
 
10 STATE ADMINISTRATION. [Jan. 
 
 The Commission is duly impressed by the great increase in 
 general taxes in recent years, and the burden of such taxes 
 upon individuals and industries. The logical important sources 
 of reduction in tax burdens are: (1) greater efhciency of ad- 
 ministration; (2) curtailment of non-essential activities; and 
 (3) increased charges for certain special activities so that their 
 cost will be fully met by the particular parties benefited instead 
 of being partly met by general taxation. The Commission has 
 given careful attention to these primary sources of saving, and 
 has reached the conclusion that material results can be ob- 
 tained from each. 
 
 Increased efficiency would follow from greater co-ordination 
 of the various activities, more sustained personal effort, and 
 concentration of specialized functions in expert agencies. Very 
 few of the State's undertakings would under normal conditions 
 be considered as extravagant, unwise, or beyond the usual scope 
 of governmental functions; but under the stress of existing tax 
 bm-dens, some can be abandoned without serious sacrifice and 
 with appreciable reductions in expenditures. A reduction of 
 considerable magnitude in general taxes from increases in fees 
 or other charges for special services can be made if the State 
 will adhere more fully to a policy of self-support for the activi- 
 ties involved. The recommendations contained herein for in- 
 creased fees or other charges are solely for the purposes of 
 equalization through which general taxes may be reduced, and 
 not for providing additional revenue for new or enlarged activi- 
 ties. 
 
 Public comment has been made to the effect that the cost of 
 State administration has substantially increased since the de- 
 partmental reorganization in 1919, intimating that this reorgani- 
 zation has failed to accomplish its intended purpose. It should 
 be recalled that prices and the costs of carrying on all business 
 have increased very much since the reorganization date. The 
 cost of conducting the State's business, excluding war bonuses 
 and other new functions, has not increased as much as have the 
 costs of other enterprises, and the Commission finds no basis for 
 an opinion that the administrative reorganization of 1919 has 
 not been beneficial. 
 
 In preparing its report the Commission has had particularly 
 in mind the eight lines of investigation to which its attention 
 
1922.] HOUSE — No. 800. 11 
 
 has been specifically directed by the terms of chapter 53, under 
 which it was created. Its general conclusions and recommenda- 
 tions are accordingly grouped into the eight following sections 
 corresponding to the sections of the resolve. 
 
 Some of the recommendations contained herein require new 
 legislation or changes in existing laws. An Appendix to be filed 
 later will contain the drafts of certain acts necessary to make 
 effective the more important recommendations. 
 
 As the various significant conclusions and recommendations 
 of the Commission are necessarily distributed throughout the 
 body of this report, a brief summary thereof is here inserted 
 for ready reference. 
 
 Summary. 
 I. Findings of the Commission. 
 
 1. That a reduction of approximately $10,000,000 per year in 
 general State taxation can be made if the recommendations 
 herein contained are put into full effect, a material part result- 
 ing from consolidations, abandonment of activities, and in- 
 creased efficiency; the balance from assessing costs of special 
 activities upon the beneficiaries. 
 
 2. That increases in administrative expenditures since 1919 
 have not been due to departmental reorganization. If these 
 increases had kept pace with general living and industrial costs, 
 they would have been more than double the actual amount. 
 
 3. That State departments are functioning in conformity 
 with the reorganization act of 1919, but not in full accord with 
 the intent of Constitutional Amendment LXVI, in that certain 
 departments, having no single head, do not act as coherent 
 units. 
 
 4. That the present executive budget system is satisfactory, 
 if modified to conform to modern accounting methods and to 
 permit limited expansion of productive activities beyond budget 
 limits if offsetting revenue is thereby assured. 
 
 II. Recommendations of the Commission. 
 1. That further consolidations of State activities be made 
 into nine major administrative departments, four others under 
 constitutional officers, two others with limited duties, and four 
 
12 STATE ADMINISTRATION. [Jan. 
 
 executive activities, — a total for all activities of nineteen in- 
 stead of the present thirty. 
 
 2. That the heads of the nine major departments constitute 
 an Administrative Cabinet, with the Governor as chairman. 
 The purpose of this, the Commission's most important recom- 
 mendation, is to effect co-ordination in place of isolation of de- 
 partments, to encourage discussion of common interests and 
 policies, and to continue the work for which this Commission 
 was appointed, — of determining ways and means of conducting 
 the State's business with maximum economy and efficiency. 
 
 3. That the departmental consolidations include the follow- 
 ing:— 
 
 (a) A Department of Administration and Finance, to include the 
 Supervisor's functions, a purchasing bureau, an accounting bureau under 
 a Comptroller,, and a division of personnel and standardization. 
 
 (b) A new Welfare Department, to include present departments of 
 Mental Diseases, Correction, Welfare, and health sanatoria. 
 
 (c) A Department of Corporate Activities, to include present depart- 
 ments of Corporations and Taxation, Banking and Insurance, and Public 
 'Utilities. 
 
 (d) Other smaller consolidations and transfers of activities. 
 
 4. That the present obsolete accounting system be replaced 
 by a standard system based on commitments rather than cash 
 transactions, the new system to be designed and administered 
 by the Comptroller, the Auditor to do auditing only in the 
 future, and the Treasurer to do only cash and fund accounting. 
 
 5. That civil service regulations be changed to curtail exist- 
 ing exemptions, to provide for non-competitive examinations in 
 certain special cases, and to transfer appeals from discharge 
 from the courts to a board of review. 
 
 6. That a central purchasing agency be established to take 
 responsibility for all State purchasing, to standardize depart- 
 mental requirements, and to make blanket purchases where 
 practicable. 
 
 7. That fees and other charges for activities and facilities of 
 special rather than general benefit be increased, so far as possible, 
 to cover the full cost of the service. Included therewith is a 
 revision of motor-vehicle fees and a tax of two cents per gallon 
 upon gasoline or other fuel. 
 
1922.1 HOUSE — No. 800. 13 
 
 SECTION I. 
 
 The first group of matters to which the attention of the 
 Commission was directed is as follows: — 
 
 (a) Whether the provisions of Article LXVI of the Amendments to 
 the Constitution and of the laws, for the reorganization of the executive 
 and administrative work of the Commonwealth into not more than twenty 
 departments, have been carried out in letter and spirit. 
 
 (6) "V\niat, if any, administrative changes should be made to promote 
 efficiency and to prevent waste and duplication of effort and unnecessary 
 expense. 
 
 Commenting first upon paragraph (a) of the above, the 
 Commission finds that the several administrative departments 
 of the Commonwealth are functioning substantially in accord- 
 ance with the provisions of chapter 350 of the General Acts of 
 1919, under which the activities of the State were reorganized. 
 The Commission is not convinced that the reorganization is in 
 accordance with the spirit of Article LXVI. This amendment 
 requires that every administrative office, board, and commis- 
 sion, except those officers serving directly under the Governor 
 and Council, shall be placed within not more than twenty de- 
 partments to be designated by the General Court. It was pre- 
 sumably the intent of the Constitutional Convention, which 
 drafted the amendment in question, that when an activity was 
 "placed" within a department it should become an integral 
 part of an administrative unit having a responsible head and 
 functioning under his direction. 
 
 In certain respects chapter 350 does not fully carry out such 
 an interpretation of the constitutional amendment. Sections 
 45 to 50, inclusive, of this chapter provide for the establishment 
 of the Department of Banking and Insurance, organized into 
 three divisions, as follows: (1) Banks and Loan Agencies, (2) 
 Insurance, (3) Savings Bank Life Insurance. Each division is 
 in charge of a commissioner, responsible for the activities of the 
 division, but no one of these commissioners, or any other 
 officer, is responsible for the department as a whole. Under the 
 above conditions these three divisions of the department have 
 functioned substantially as separate and distinct departments. 
 
14 STATE ADMINISTRATION. [Jan. 
 
 Sections 63 to 67, inclusive, of chapter 350 provide for the 
 creation of a Department of Civil Service and Registration, 
 organized into two divisions of Civil Service and Registration, 
 respectively. Each division, as in the case of the Department 
 of Banking and Insurance, has an officer responsible for the 
 activities of the division, but neither responsible to the other, 
 and therefore with no head to the department. 
 
 The sections of the act under which the above two depart- 
 ments were created both provide that the commissioners in 
 charge of the several divisions shall act as a board in all 
 matters affecting the department as a whole, but such matters 
 have so far been negligible in the activities of these depart- 
 ments. 
 
 Sections 123 to 129, inclusive, of chapter 350 provide for the 
 consolidation of existing metropolitan district activities under 
 a new Metropolitan District Commission. This commission is 
 in charge of a commissioner and four associate commissioners, 
 all appointed by the Governor, the commissioner being desig- 
 nated as the executive and administrative head of the commis- 
 sion, with authority to determine the subdivisions of the com- 
 mission's activities and to appoint and remove a director in 
 charge of each. Other employees of the commission, including 
 the secretary, engineers, purchasing agent, inspectors, police 
 force, clerks, etc., are appointed by the commission as a whole. 
 Other functions of the associate commissioners are not clearly 
 defined, and their compensation is not sufficient to insure their 
 full service. For the above or other reasons the several activi- 
 ties which have been brought together under the jurisdiction of 
 this commission have apparently not been administered with as 
 complete co-ordination as exists in other departments with a 
 more definite scheme of organization. 
 
 In some other departments which are combinations of a 
 number of previously independent activities there has not been 
 full co-operation between division directors (who may, prior to 
 the reorganization, have been heads of independent divisions) 
 and the commissioner in charge of the new department. 
 
 The natural reason for such lack of co-operation as exists is 
 the fact that the reorganization program contained in chapter 
 350 left the appointment of these now subordinate officials in 
 
1922.] HOUSE — No. 800. 15 
 
 the hands of the Governor and Council. It is generalh^ ac- 
 knowledged that maximum administrative efficiency can be 
 obtained only through direct responsibility of all officials and 
 employees to their immediate superiors, and that authority over 
 subordinates is effective largely through power of appointment 
 and removal. It follows that, fully to accomplish the purpose 
 of Constitutional Amendment LXVI, and to promote co-opera- 
 tion and efficiency, authority to appoint and remove depart- 
 mental subordinates (subject to approval of the Governor and 
 Council) should be lodged in the department heads, except 
 where advisory or quasi-judicial functions are involved. The 
 Commission is of the opinion that if chapter 350 had lodged 
 full administrative authority in single department heads, the 
 departmental activities would have functioned with materially 
 greater smoothness and efficiency. 
 
 As far as the remaining departments are concerned, the Com- 
 mission has found no noteworthy evidences of failure to observe 
 the provisions of both the constitutional amendment and the 
 legislative acts under which they are functioning other than 
 are involved in the appointment policy referred to above. 
 Certain minor activities were not assigned by chapter 350 to 
 any of the newly organized administrative departments, but 
 were placed in the Executive Department under the direct 
 supervision of the Governor. In most cases these activities are 
 not of an executive nature, and should be attached to appro- 
 priate administrative departments. 
 
 The Commission is not unmindful of the difficult task con- 
 fronting the General Court of 1919 in carrying out the require- 
 ments of Article LXVI of the constitutional amendments. The 
 reorganization of more than one hundred independent depart- 
 ments, commissions, boards, and other agencies having State* 
 wide activities into twenty co-ordinated departments was a 
 formidable problem, and the Commission is not disposed to be 
 critical of the results so far accomplished. On the contrary, 
 these results reflect the wisdom of the General Court in pre- 
 scribing a reorganization which, while comprehensive, was not 
 so drastic as to cause excessive temporary confusion. 
 
16 STATE ADMINISTRATION. [Jan. 
 
 (' > Waste and Duplication. 
 
 ^ iWith regard to that portion of paragraph (6) of this section 
 referring to changes "to prevent waste and duplication of 
 "1 effort and unnecessary expense," the Commission has found, 
 in its studies of the activities carried on by the various depart- 
 ments, that in a number of cases similar activities are inde- 
 pendently carried on in different departments, some of them 
 involving duplication of work. There are also cases of wholly 
 unrelated activities combined within one department. 
 
 Separation of similar activities into different departments 
 
 ma^'- be illustrated by the disposition of licensing or registration 
 
 V functions which, for professional and other occupations, are 
 
 handled in four separate departments. It would appear that 
 
 ;, ^ most, if not all, of the sixteen or more occupations and pro- 
 
 I ■ fessions requiring State licenses could be handled more efficiently 
 
 by one department. 
 
 Illustrations of overlapping or duplication of activities which 
 ^' have come to the attention of the Commission include the 
 . following: — 
 
 The construction and maintenance of highways and bridges is 
 divided between two State departments,, supplementing the 
 work of this character done by cities, towns and counties. 
 
 Forestry and pest control activities are carried on by four 
 different departments and'in two separate divisions of two of 
 these departments. 
 
 Police functions are performed by five different agencies. 
 Engineering in connection with construction work is carried 
 on by at least three departments, and in three separate divisions 
 of one of these departments. 
 
 Rainfall records are kept by two State departments, in addi- 
 tion to those compiled throughout the country by the Federal 
 government. 
 
 Americanization activities are carried on by two departments, 
 including three divisions of one of these departments. 
 
 Inspections of new buildings and their appurtenances are 
 made by three different departments. 
 
 Food is inspected by two departments, and there is over- 
 lapping in other miscellaneous inspection work. 
 
1922.] HOUSE — No. 800. 17 
 
 There is also overlapping or duplication of statistical worl^ 
 done by various departments, either between the departments 
 themselves or between the departments and the Federal gov- 
 ernment. 
 
 All departments whose activities are located outside the 
 State House carry on their necessary purchasing independently,, 
 and State House purchasing is divided between two depart- 
 ments. 
 
 The above enumeration does not include all the matters of 
 this character that have come to the attention of the Commis- 
 sion, but they are sufficient to illustrate the possibilities of 
 saving in administrative costs through more logical rearrange- 
 ments. The specific recommendations which the Commission 
 makes to bring about better co-ordination are set forth in de- 
 tail in Section IV cf this report, which deals more specifically 
 wdth departmental activities. 
 
 Organization. 
 With reference to that portion of paragraph (6) of this sec- 
 tion which deals with "the administrative changes which should 
 be made to promote efficiency," the Commission is of the 
 opinion that there are advantages in a further consolidation of 
 existing activities into a smaller number of administrative de- 
 partments. Attention is directed to the fact that the present 
 number of departments is the maximum permissible under the 
 recently amended Constitution, with a considerable number of 
 detached activities assigned to the Executive Department. It 
 will be recalled that the committee on administrative reorgani- 
 zation of the recent Constitutional Convention recommended 
 that all the administrative activities of the State be combined 
 into not less than seven nor more than fifteen departments, and 
 the proceedings of the convention indicate that the committee 
 favored an approach to the lower rather than the higher limit. 
 With due appreciation of the practical difficulties attending any 
 consolidation of administrative activities, the Commission feels 
 that the success with which the greatly reduced number of de- 
 partments has functioned during the past two years suggests 
 the serious consideration of further consolidations. 
 
18 STATE ADMINISTRATION. [Jan. 
 
 The Commonwealth has endorsed the policy of adminis- 
 trative responsibility vested in the Governor, and, through him, 
 in department heads, who, with few exceptions, are appointed 
 and may be removed by him, subject to approval of the Council. 
 Real responsibility of this kind requires that the Governor 
 should have immediateh^ responsible to him only such number 
 of department heads as will permit the necessary intimate con- 
 tact. In the most successfully conducted private businesses the 
 number of subordinates immediately responsible to the execu- 
 tive is rarely much greater than the minimum of seven, sug- 
 gested by the Constitutional Convention committee. 
 
 It may be impracticable at this time fully to carry out such 
 an extensive further reduction in number of departments, but 
 it is apparent that a substantial step in that direction should be 
 taken without delay. The Commission is not unmindful of the 
 objection which is frequently raised to concentration of au- 
 thority and responsibility in the hands of single government 
 officials whose compensation is usually less than that obtainable 
 from private employment, thus making equal ability available, 
 if at all, only through personal sacrifice. While there is risk in 
 lodging responsibility in positions which may be filled by un- 
 qualified agents, experience has shown that executives exercise 
 special care in appointments to positions involving large re- 
 sponsibilities. Failure to do so would seriously reflect upon 
 their own fitness for office. If the changes recommended herein 
 with respect to salaries, method of appointment, and tenure of 
 office are adopted, the advantages of further consolidations of 
 departments will be measurably increased. 
 
 The Commission accordingly recommends a reorganization of 
 the existing twenty administrative and ten executive depart- 
 ments into fifteen administrative and four executive depart- 
 ments. Of the fifteen new administrative departments nine 
 only are to be charged with broad and comprehensive functions, 
 four have special duties in charge of constitutional officers, and 
 two are also limited as to their scope or field of activity. It 
 will be noted that the total number of administrative depart- 
 ments is within the upper limit fixed by the committee on re- 
 organization of the Constitutional Convention, and that the 
 number of large and broadly active departments is not far above 
 the minimum limit fixed by that committee. 
 
1922.1 HOUSE — No. 800. 19 
 
 Administrative Cabinet. 
 
 The Commission recommends that the heads of the nine 
 large administrative departments constitute, with the Governor, 
 an Administrative Cabinet. It considers this to be the most 
 important and far-reaching of alj its recommendations. One of 
 the s^ious and inevitable defects in the present scheme of 
 organization is the tendency of each department to magnify its 
 own problems and importance, continually to expand its activi- 
 ties, and to work for and expend as large appropriations as it 
 can obtain in competition with other departments. There are 
 few incentives to real economy and no established avenues of 
 mutual interest and co-operation. 
 
 The proposed cabinet is designed to remedy this fundamental 
 defect. Through such a cabinet the Governor would be brought 
 into more intimate contact with the administrative problems of 
 the departments; and the heads of the departments would at 
 the same time learn of each other's problems, would have the 
 opportunity to adopt common administrative policies, and 
 maintain co-operative relations rather than the present spirit of 
 isolation. x 
 
 It should be the first duty, and also a continuing duty, of 
 the cabinet to consider the most economical and efficient ways 
 of conducting the State's business, to discuss common or related 
 activities in the several departments, and to develop ways and 
 means whereby the administrative organization can be made 
 more simple and coherent. In a number of places throughout 
 this report the Commission has recommended investigations, 
 reports, and readjustments of existing practices. Such of these 
 as involve single departments or unimportant matters might be 
 settled by the^ head of the department, with the advice and 
 consent of the Governor. Other matters more important or 
 involving more than one department, but not of such a nature 
 as to require legislative action, might properly be referred to the 
 cabinet for consideration and decision. 
 
 It is recommended that the commissioner in charge of the 
 proposed new Department of Administration and Finance be 
 made the vice-chairman of the cabinet, to preside in the absence 
 of the Governor. Stated meetings of the cabinet should be 
 
20 STATE ADMINISTRATION. [Jan. 
 
 held at least once each month, and special meetings should be 
 held at any time upon the call of the Governor or the idce- 
 chairman, or at the request of a. majority of the cabinet mem- 
 bers. 
 
 Organization Principles. 
 In connection with the proposed changes in administrative 
 organization, it has been found necessary to employ with con- 
 sistency a wider range of terms to designate the increased range 
 of functions to be brought together in one department. Start- 
 ing with the term "department,'' which is fixed by the Consti- 
 tution, the word "bureau" is applied to the major grouping of 
 departmental activities, usually in charge of an associate com- 
 missioner; the groups within a bureau are called "divisions," 
 usually in charge of directors, as at present; the activities next 
 lower in the scale are called "subdivisions." This nomenclature 
 is used herein with reference to the new organization plan, and 
 is recommended for general use because it seems to involve the 
 least confusion of titles and duties. The Commission also 
 recommends certain fundamental regulations with respect to 
 appointment, tenure, and service, and certain other standard 
 methods and practices, as follows: — 
 
 1. All commissioners in charge of administrative departments 
 should be appointed by the Governor, with the advice and con- 
 sent of the Council, and those who are members of the Ad- 
 ministrative Cabinet should have a term of office terminating 
 with that of the Governor, but should continue in office until 
 their successors have been appointed. 
 
 2. Commissioners who are not cabinet members, associate 
 commissioners, and members of the quasi-judicial and advisory 
 boards should be appointed by the Governor, with the advice 
 and consent of the Council, and should in general retain the 
 tenures of office now provided by law. 
 
 3. Directors or otherwise entitled officials in charge of 
 divisions in administrative departments should be appointed, 
 without limitation to their ' tenures of office, by the associate 
 commissioner in charge of the bureau in which the division is 
 located, confirmed by the commissioner in charge of the de- 
 partment, and approved by the Governor and Council. 
 
1922.] HOUSE — No. 800. 21 
 
 4. A department having extensive and complex adminis- 
 trative duties should have a commissioner in charge "without 
 portfolio," having under him associate commissioners respon- 
 sible for tjie several bureaus of the department. 
 
 5. A department having comparatively simple administrative 
 functions may have at its head a commissioner who will also 
 have direct charge of a bureau, other such bureaus being 
 assigned to associate commissioners. 
 
 6. Each department should have a single administrative head, 
 w^hether or not, like his associate commissioners, he has direct 
 charge of a bureau. He should be responsible for the general 
 administrative w^ork of the department, the co-ordination of 
 clerical and other activities of its bureaus, and the general 
 conduct of its work. He should not, however, assume responsi- 
 bility for the official acts of quasi-judicial boards which may be 
 within his department. 
 
 7. Appointments to subordinate positions within the depart- 
 ments, subject to civil service regulations revised as herein pro- 
 posed, should be made upon nomination of the immediate 
 superior of the appointee, with the endorsement of intermediate 
 superiors and the final approval of the head of the department. 
 
 8. Departments in charge of a commissioner, without asso- 
 ciate commissioners in charge of its bureaus, should have a 
 deputy or other authorized substitute to perform his functions 
 in his absence. Provisions of this kind are now lacking in 
 certain cases. 
 
 9. All commissioners, associate commissioners, directors, and 
 other employees of the administrative departments who are 
 paid salaries intended to be commensurate with the full value 
 of their services should devote substantially their entire time to 
 the service of the Commonwealth. 
 
 10. A commissioner in charge of a department "withqut- 
 portfolio" should in general organize his associate commis- 
 sioners into an advisory board, which should meet frequently to 
 discuss matters of common interest. The actions of such boards 
 should not be formal except in the event that all associate com- 
 missioners unite in opposing a plan or policy of the commis- 
 sioner. Under such circumstances the associate commissioners 
 should have the right to suspend action on the part of the com- 
 
22 
 
 STATE ADMINISTRATION. 
 
 [Jan. 
 
 missioner, and, through one of their number, to present the case 
 before the administrative cabinet for review and reference back 
 to the commissioner with recommendations. 
 
 
 
 
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 11. When serving in certain designated cases as adminis- 
 trative (as distinct from advisory) boards, the commissioner and 
 associate commissioners should have equal voice in the de- 
 liberations. In case of a tie vote upon any matter, the board 
 
1922.] HOUSE — No. 800. 23 
 
 should call upon the Governor, or, by agreement, upon a com- 
 missioner or associate commissioner from another department, 
 to decide the matter at issue. 
 
 12. It' appears to the Commission that some of the advisory 
 boards and boards of trustees of institutions are so large as to 
 be unwieldy and inefficient. Certain of these boards contain 
 as many as eighteen members. It is recommended that, by 
 failure to fill vacancies, the membership of these boards be re- 
 duced gradually to seven. , 
 
 The above statement of principles will serve to assist in the 
 understanding of the details of the proposed administrative re- 
 organization which are set forth in an accompanying diagram. 
 The heads of the nine heavily outlined departments at the 
 bottom of this diagram constitute the members of the Adminis- 
 trative Cabinet. The following pages contain brief descriptions 
 of the functions and scope of the reorganized departments. 
 These descriptions are accompanied by charts showing the im- 
 portant new functions and lines of responsibility. It has not 
 been the intention of the Commission to include in its de- 
 scriptions or charts details of the subsidiary functions or 
 organization of the new departments. The most efficient 
 arrangement and functioning of the subsidiary activities are 
 matters requiring extended study and knowledge of the par- 
 ticular activities. It has therefore been assumed that these 
 activities would continue to function at the beginning of the 
 reorganization substantially as at present unless otherwise indi- 
 cated, and the Commission recommends that the heads of all 
 new departments make a careful study of the initial functioning 
 of their organizations, and if, or as soon as, need of changes is 
 apparent, report to that effect, with recommendations to the 
 Governor for attention of the Administrative Cabinet. 
 
 Departmental Reorganization. 
 Administration and Finance. 
 The central feature of the new organization is the establish- 
 ment of a Department of Administration and Finance, to take 
 the place of the present executive division in charge of the 
 Supervisor of Administration. The new department, in charge 
 
24 STATE ADMINISTRATION. [Jan. 
 
 of a commissioner, would assume the various functions now per- 
 formed under the Supervisor of Administration, and provision 
 is made for expanding and intensifying the work now per- 
 formed. 
 
 In addition to these duties, this department would contain 
 two new activities, — the purchasing agent recommended in 
 Section VII, with the duties therein defined, who would be an 
 associate commissioner; the Comptroller recommended in Sec- 
 tion IV, vrith ,the duties therein defined, who would also be an 
 associate commissioner; and it is proposed to have a third 
 associate commissioner primarily in charge of the budget activi- 
 ties now handled by the Supervisor of Administration. 
 
 In addition to these three associates, it is proposed to place 
 under the commissioner a director or other administrative 
 agency, who should be qualified to carry on a wide range of 
 departmental research tending to greater co-ordination and 
 standardization of administrative activities. This division might 
 properly contain technical advisers, who would assist the budget 
 commissioner in solving engineering problems, and would also 
 undertake engineering investigations in behalf of departments 
 not organized to do such work for themselves. It is the con- 
 viction of the Commission that there are Avide opportunities for 
 improvements in efficiency of the departments, such as power 
 plant and other technical operations, co-ordination of engineer- 
 ing and laboratory functions, etc., Avhich would yield substantial 
 financial results. With carefully selected personnel and proper 
 encouragement and co-operation from other departments, the 
 achievements of this proposed new activity might early reach 
 proportions which would justify the title and compensation of 
 associate commissioner at its head. 
 
 It is proposed to transfer to this department the responsi- 
 bility for the State House, which duty is now lodged in the 
 Superintendent of Buildings. The purchasing and store-room 
 duties of this office would be assumed by the new purchasing 
 bureau. The care and maintenance of the State House building 
 and grounds should be in the hands of a custodian reporting to 
 the commissioner or to the director of personnel and standardi- 
 zation, as the former may elect. Such jurisdiction as the Super- 
 intendent of Buildings now has over rented quarters of State 
 
1922.] HOUSE — No. 800. 25 
 
 activities should be transferred to this department and made 
 more comprehensive. The assignment of space in the State 
 House should be in the hands of the commissioner and asso- 
 ciate commissioners of this department acting as a board for 
 this purpose. Appeal from a decision of this board should be 
 had to the Governor, as at present. 
 
 The commissioner and associate commissioners should also 
 act as a board on matters relating to accounting standards and 
 practices (other than the establishment of the proposed new 
 system) and the approval of important contracts negotiated by 
 the associate commissioner in charge of purchases. 
 
 t 
 Public Welfare. 
 
 Under the above title the Commission recommends the con- 
 solidation of the Departments of Correction, Mental Diseases, 
 the present Department of Public Welfare, and the institutional 
 activities of the Department of Public Health. The remaining 
 activities of the Public Health Department, including its miscel- 
 laneous inspection and educational work and engineering of 
 water supplies and sewerage systems, are not disturbed, and 
 are left in a separate department retaining the present title. 
 
 It is proposed to place the full administrative responsibility 
 of the new welfare department in the hands of a commissioner, 
 who should be a man of unquestioned executive ability and 
 broad business experience. Under him should be associate com- 
 missioners in charge of the following groups of activities: 
 Mental diseases, correction, hospitals and schools, aid and re- 
 lief. These associate commissioners should all be competent 
 professional men, familiar with the duties of their respective 
 divisions, and with full .authority in matters relating to treat- 
 ment and welfare of inmates, but relieved of the business and 
 mechanical details of operation, so that their time may be de- 
 voted primarily to medical or corrective treatment and other 
 professional functions of their respective institutions. 
 
 It is proposed to include in the department, directly re- 
 sponsible to the commissioner, a director of business affairs, 
 who would supervise all business details and financial matters 
 incident to the operation of the various institutions, and direct 
 the maintenance and construction of institutional equipment, 
 
26 ^ STATE ADMINISTRATION. [Jan. 
 
 buildings, and grounds. Under him should be such purchasing 
 or supply requisition clerks as are needed to function in con- 
 nection with the central purchasing agency in the procuring o? 
 necessary supplies for the institutions. There should also be 
 under this director a subdivision of technical assistants, who 
 would supervise the operation of power plants and other me- 
 chanical equipment of the institutions to insure sustained maxi- 
 mum efficiency. 
 
 Directly responsible to the associate commissioners in charge 
 of the various groups of institutions should be the staff activities 
 and the superintendents of the various institutions. It is not 
 proposed that the director of business activities should interfere 
 with the responsibility of the s uperintend ents over the operation 
 of their respective institutions, but rather that the director 
 should serve in an advisory capacity to the associate commis- 
 sioners and the various superintendents, relieving them of re- 
 sponsibility for details foreign to their professional duties. Such 
 interlocking activities might suggest possibilities of friction, but 
 they exist in all large business organizations and work har- 
 moniously. If the recommendations of the director are not ac- 
 cepted by the superintendent of an , institution or his subordi- 
 nates, the matter should be referred to the associate commis- 
 sioner, or, if necessary, to the commissioner for final settlement; 
 but it is not anticipated that such reference will be necessary 
 except under unusual conditions. It is recommended that the 
 commissioner be given authority to/ determine and adjust the 
 many details of responsibilities and activities of the other divi- 
 sions, to the end that the entire subsidiary organization may 
 work together harmoniously and efficiently. An accompanying 
 diagram shows the general organization of the department as 
 outlined above, and a subsidiary diagram sets up in iurther de- 
 tail a proposed organization with personnel of the division of 
 business activities. The organization of the other divisions, 
 except as otherwise set forth in the above general description, 
 will remain substantially as at present. 
 
 In creating a new administrative head for this group of insti- 
 tutions, and adding a new division for handling its business 
 affairs, the Commission is not unmindful' of the expense im- 
 mediately involved, but finds that present departmental organi- 
 
1922.] HOUSE — No. 800. ' 27 
 
 zation and other costs can be reduced more than enough to off- 
 set this expense, leaving the saving in operating cost effected 
 through the consoHdation, estimated at $887,500, as a net \ 
 saving. 
 
 Corporate Activities, 
 
 Three entirely separate departments now have charge of the 
 regulation of the affairs of corporations doing business within 
 the Commonwealth. These three departments are Corporations 
 and Taxation, Banking and Insurance, and Pubhc Utilities. It 
 is proposed to combine all these kindred activities into a new 
 department with the above title. At the head of this depart- 
 ment should be a coxtimissionerj^in charge of the general adminis- 
 trative work of the department, having full responsibility for its 
 successful and efficient functioning, with the exception of the 
 work of any quasi-judicial boards which are included within the 
 departments to be combined. The decisions of such boards 
 should not be subject to review by the commissioner. The com- 
 missioner should have under his supervision, as far as practi^ 
 cable, the clerical, stenographic, and filing activities of the en- 
 tire department for the purpose of co-ordinating all such work 
 in the hands of the smallest practicable number of persons. 
 
 Under the commissioner should be' four associate commis- 
 sioners, in charge, respectively^ of the bureaus of Corporations 
 and Taxation, Banks, Insurance, Public Utilities. 
 
 The Commission recommends that the present Division of 
 Savings Bank Life Insurance be made a division in the Bureau 
 of Insurance, with the understanding that the Bureau of Bank- 
 ing would co-operate and assist in any functions of the division 
 involving banking interests. Associated with the Bureau of 
 Banking should be the Board of Bank Incorporatioi> as now 
 organized. Associated with the Bureau of Insurance should be 
 the Board of Appeal on Fire Insurance Rates as now organized. 
 The Bureau of Corporations and Taxation should have divi^ons 
 handling the following activities: Corporations, income taxes, 
 inheritance taxes, local taxation, accounts, collateral legacy 
 taxes. 
 
 The Bureau of Public Utilities should be organized with an 
 associate commissioner as the administrative head, havitig re- 
 sponsible to him a secretary and the administrative and tech- 
 
28 STATE ADMINISTRATION. [Jan. 
 
 nical staff of the division, including engineers, inspectors, ac- 
 countants, clerks, etc. Within the bureau should also be the 
 Public Utilities Commission, of which the associate commis- 
 sioner should be chairman. The associate commissioner should 
 be authorized to assign to other members of the Utilities Com- 
 mission such administrative duties, in addition to their quasi- 
 judicial duties, as he may find expedient. 
 
 Labor and Industries. 
 
 .' . . This new department, bearing the same name as the present 
 Department of Labor and Industries, includes the activities of 
 the present department and also those of the Department of 
 Industrial Accidents. 
 
 . ' The new department should be in the charge of a commis- 
 
 sioner, with responsibility for its entire activities other than the 
 quasi-judicial decisions of subsidiary, boards. Two associate 
 commissioners are designated to have charge, respectively, of 
 the Industrial Accident Bureau, comprising the activities of the 
 present Department of Industrial Accidents (which it is not 
 proposed to disturb), and the Bureau of Service and Standards, 
 including the Divisions of Standards, Inspections, Employ- 
 ment, and Statistics, as now conducted. It is proposed that the 
 Minimum Wage Board and the Board of Conciliation and Arbi- 
 tration, having a common membership, should continue to 
 function as at present, reporting directly to the commissioner 
 with respect to such of their functions as may be within his 
 , province. 
 
 Agriculture and Conservation. 
 
 This new department is a combination of the existing De- 
 
 < partments of Agriculture and Conservation. The functions of 
 
 7.V< the two bureaus of the new department are not changed othei 
 
 >than for some incidental transfers of minor activities referred 
 
 ; '^^- to in Section IV. The new department should have at its 
 
 head a commissioner, in charge of the general administrative, 
 
 clerical, and filing systems of the department. Responsible to 
 
 r him should be two associate commissioners, in charge of the 
 
 Bureaus of Agriculture and Conservation, respectively. 
 
1922.] HOUSE — No. 800. 29 
 
 Public Works. 
 
 The general organization of this department is not affected. 
 There has been added to its Highway Bureau the maintenance 
 and construction of bridges and improved highways, now 
 under the jurisdiction of the MetropoUtan District Commission. 
 This transfer does not include the care of bridle paths, lanes, 
 and unimproved dirt roads within the metropolitan park 
 system. 
 
 Public Safety. 
 
 The new Department of Public Safety includes the present 
 department of that name and the Registration Division of the 
 Department of Civil Service and Registration. This new de- 
 partment should be in charge of a commissioner, who would be 
 responsible for the conduct of its administrative and office 
 affairs. Under him and reporting directly to him should be the 
 various existing safety and registration functions. Certain 
 incidental transfers of registration functions affecting the new 
 department, and the transfer of certain inspection functions 
 to the Department of Labor and Industries, are defined in 
 Section IV. 
 
 Public Health. 
 The new Department of Public Health, in charge of a com- 
 missioner, without associate commissioners, retains jurisdiction 
 of the functions of the present Department of Public Health, 
 except for the conduct of its sanatoria, which are included . 
 within the new Department of Public Welfare. The com- 
 mission has recommended that there be added to the Engineer- 
 ing Division of this department responsibilities for engineering 
 problems connected with the metropolitan district water and 
 sewer systems, corresponding with similar responsibilities which 
 the division now has with respect to other parts of the State. 
 
 Education. ' ' " 
 
 -^ 
 
 The functions, scope, and organization plan of this depart- 
 ment are not affected by the general reorganization. Transfers, 
 of certain incidental activities to or from this department, or 
 their discontinuance, are referred to in Section IV. 
 
30 STATE ADMINISTRATION. [Jan. 
 
 Cinl Service. 
 This department, in charge of a commissioner, retains the 
 functions now performed by the Division of Civil Service in 
 the Department of Civil Service and Registration. The com- 
 missioner should continue the general executive responsibility 
 for the department, having associated with him two associate 
 commissioners, acting as a board of civil service, as at present. 
 
 Metropolitan District. 
 • The Commission recommends that, in the interests of more 
 efficient administration, the supervisory organization of the 
 department be simplified by a reduction in the number of its 
 commissioners. It is proposed to place the full responsibility 
 for the administration of the department in the hands of a 
 commissioner, with two associate commissioners under him, 
 the commissioner to take charge of one of the three bureaus of 
 the department's activities, and the associate commissioners 
 each to have one of the remaining bureaus. 
 
 Aside from this simplification, the responsibilities of this 
 department are reduced by the transfer of the maintenance and 
 construction of^ its bridges and improved highways to the 
 Department of Public Works, and of engineering functions in 
 connection with the design of water and sewerage system ex- 
 tensions to the Department of Public Health. 
 
 Departments under Constitutional Officers. 
 
 The departments under this heading are those of the 
 Treasurer, Auditor, Secretary, and Attorney-General. 
 
 The functions of the Treasurer are simplified under the re- 
 organization by transfer of bookkeeping functions to the 
 Department of Adnjinistration and Finance, and of tax collect- 
 ing functions to the Department of Corporate Activities. The 
 Treasurer should retain his functions as custodian of cash and 
 trust and other funds, and should keep at least one of his 
 deputies and an appropriate subsidiary force. 
 
 The functions of the Auditing Department are also curtailed 
 by the transfer of all accounting duties to the Department of 
 
1922.] HOUSE — No. 800. 31 
 
 Administration and Finance, leaving only auditing activities, 
 which should be performed by a very much smaller and 
 simpler organization than is now required. 
 
 The Department of the Secretary of the Commonwealth is 
 not affected by the reorganization other than by the addition 
 of responsibility for the State Library, and the association of 
 the Ballot Law Commission with the department. 
 
 The organization of the Department of the Attorney- 
 General and its functions are not in any way affected by the. 
 reorganization. 
 
 Executive Activities. 
 
 In order to reduce the activities of this character as far as 
 possible, it is proposed to attach to the Adjutant-General's 
 Department (referred to in the general organization diagram 
 as "Military") the x\rmory Commission and the Commission 
 on State Aid and Pensions. 
 
 The only other executive activities, all of which remain 
 unchanged, are the Commission on Uniformity of State Legis- 
 lation, the Board of Appeal from Decisions of the Tax Com- 
 missioner, and the Art Commission. 
 
 SECTION II. 
 
 Budget. 
 
 In this section the Commission reports upon the budget 
 system and procedure governing appropriation and expenditure 
 of public money. 
 
 The principle of the executive budget has been endorsed and 
 adopted by many governments, and is approved by this Com- 
 mission. As applied in this State it has show^n many advantages 
 and few defects. The latter are the subject of the following 
 comments and recommendations: — 
 
 A number of administrative departments carry on activities 
 from which revenue is received. In some cases the revenue is 
 expected to cover the cost of conducting the activity. In the 
 present form of budget the revenues and costs of the activities 
 are so widely separated as to make comparisons difficult. If 
 the budget figures were rearranged to bring these two classes of 
 items together, and the net loss, if any, from conducting each 
 
32 STATE ADMINISTRATION. [Jan. 
 
 activity intended to be self-supporting were added, the need of 
 revision of fees or charges would be clearly shown. It is sug- 
 gested that this change in form of the budget statement be 
 given consideration in connection with the general changes in 
 accounting practice herein recommended. The General Court 
 has not exercised its right under the law to fix the form of the 
 budget, and so the proposed change will require no new legis- 
 lation. 
 
 In certain cases productive activities, such as agriculture, 
 fluctuate materially with weather or other conditions. Budget 
 appropriations for such activities (which must not be exceeded) 
 are usually based on normal or average conditions. Under more 
 favorable conditions greater expenditures might yield increased 
 revenue to an extent that the net cost of the activity would be 
 reduced. This, however, is not permitted beyond the limits of 
 the budget appropriations, the added revenue is wholly or in 
 part lost, and a desirable incentive for productive efficiency and 
 business activity is denied. In other cases opportunities for 
 helpful services or publications, which would be fully covered 
 by added revenue, are forfeited. 
 
 The Commission recommends that this limitation be cor- 
 rected. The remedy is not uniform. In some cases the flexi- 
 bilities of a "materials and supplies" appropriation, which js 
 recommended herein, would give necessary relief. In other 
 cases, where additional services are involved, a contingent ap- 
 propriation would probably be necessary. Recognizing the 
 dangers of such appropriations, the Commission would surround 
 those here recommended with very definite restrictions. No 
 such appropriation should be drawn upon without approval of 
 the head of the department in which the activity is located and 
 of the budget commissioner, which approval should be given 
 only upon a specific showing that the revenues of the activity 
 would be increased by at least the amount of the proposed ex- 
 penditure. If the extra expenditures and revenue were both 
 within the same fiscal year, as would ordinarily be the case, the 
 net cash requirements of the activity would be decreased rather 
 than increased. In any event, there would be no loss. 
 
 The present budget, together with the general accounting 
 system of the State is, in principle, upon a cash basis. Section 
 
1922.] HOUSE — No. 800. 33 
 
 IV of this report deals at length with accounting matters, and 
 recommends that a modern system be substituted, differing 
 fundamentally from the present system in that the accounting 
 entries for a given fiscal period will represent the commitments 
 of that period (services rendered and materials used) instead of 
 the cash transactions. 
 
 The proposed accounting system will require a corresponding 
 change in the budget so that it will cover appropriations for the 
 service rendered and materials and supplies actually used during 
 the fiscal year instead of the cash which may happen to go 
 out from the treasury, some of which would be applicable to 
 another fiscal period. 
 
 The revenue items in the budget should be changed in the 
 same manner as the expenditure items above discussed, the 
 revenues of a given year being represented by bills rendered 
 rather than by bills paid. 
 
 The new system provides for a "supply" account, which will 
 be charged with supplies purchased in large quantities or for 
 extended use, and credited for each fiscal period with whatever 
 is taken out for current use. As no such account is now in use, 
 it will be necessary in the new budget to make supplementary 
 appropriations for "increase in materials and supplies." In 
 some years after the initial one, the supply account might be 
 drawn down and the net budget requirements thereby reduced 
 instead of increased. It may be found advisable, in v^'orking 
 out the details of the new accounting system, to provide also 
 a budget appropriation for materials and supplies for the general 
 purchasing agent, recommended herein, so that quantity ptir- 
 chases, which he may make and not immediately allocate to 
 specific activities, may be temporarily provided for. 
 
 The Commission sees no objections to changes in the budget 
 system of the character above proposed, and accordingly recom- 
 mends that they be put into effect coincident with the estab- 
 lishment of the new accounting system designed on a similar 
 basis. 
 
 Attention is called to the fact that budget estimates are now 
 necessarily made up before the end of the prior fiscal year and 
 contain a statement of expenditures for that year, which, in 
 part, is estimated. The appropriations for the following year 
 
34 STATE ADMINISTRATION. [Jan. 
 
 are judged in large measure from this mixed statement of facts 
 and estimates. Furthermore, the budget appropriation bill for 
 a given fiscal year is not passed until at least one third of that 
 year has gone by, making it difficult for the departments to ad- 
 just themselves to any radical change in appropriations or 
 policy. By ending the fiscal year on June 30, corresponding to 
 Federal practice, the actual expenditures of the year would be 
 available for budget studies, and the appropriation bill would 
 be passed only a short time before the beginning of the new 
 year to which it would apply. There may be objections to such 
 a change which are not within the scope of the Commission's 
 work, and so attention is called to the matter without definite 
 recommendation. 
 
 SECTION III. 
 
 Under this section the Commission was instructed to 
 determine — 
 
 Whether, having in view the entire programme of the state's under- 
 takings, the needs of the state, and the cost and relative importance of 
 each undertaking, there are any which it is advisable that the state should 
 curtail or wholly give up. 
 
 Abandonment of Activities. 
 
 The Commission is impressed with the need of a substantial 
 reduction in the administrative expenditures of the State. 
 The per capita annual cost of the State government is high as 
 compared with other similar States. The latest available 
 figures of this character are those compiled in 1919 by the 
 United States Bureau of the Census. The Massachusetts 
 figure for State-wide activities, applicable to the fiscal year 
 ending Nov. 30, 1918, was S8.06 as compared with $5.42, the 
 average of all forty-eight States. These figures are exclusive 
 of capital expenditures, but include interest and amortization 
 charges. Some of the special reasons for the high per capita 
 cost in Massachusetts will be set forth in the later departmental 
 discussions (Section IV). 
 
 After a careful study of the activities within the various 
 administrative departments, the Commission has come to the 
 
1922.] HOUSE — No. 800. 35 
 
 conclusion that a number of these activities can be abandoned 
 or materially curtailed without serious detriment to the interests 
 of the State. The activities in question, with the Commission's 
 recommendation applying thereto, are set forth in the following 
 paragraphs : — 
 
 Every ten years, midway between the Federal censuses, the 
 Secretary of the Commonwealth is required to take a census 
 of the inhabitants of the cities and towns, with particular 
 reference to legal voters. Each such census involves an ex- 
 penditure of approximately $500,000, or an average of $50,000 
 per year. Its real purpose is to fix the apportionment of 
 representatives in the Legislature. The Commission sees no 
 reason why all necessary data cannot be determined from lists 
 of legal voters regularly compiled by the several cities and 
 towns, and it therefore recommends the collecting of such lists 
 by the Secretary in 1925, and at ten-year intervals thereafter 
 as a basis of the apportionments then required. Such procedure 
 would not be in full conformity with constitutional require- 
 ments, and the Commission accordingly recommends that 
 immediate steps be taken to bring about the necessary con- 
 stitutional amendment so that it may be effective in 1925. 
 
 The Adjutant-General's Department contains a Bureau of 
 Military Intelligence, which served a useful purpose during the 
 war, but is now engaged in so-called ''Americanization" 
 work, which duplicates w^ork of this character done by the 
 Department of Education. The latter department being the 
 logical agency for handling such work, the Commission recom- 
 mends that the activities of the Bureau of Military Intelligence 
 be abolished except as to purely military affairs. 
 
 The Department of Education carries on so-called "Ameri- 
 canization" work in three separate divisions, handling, re- 
 spectively, immigrant aid, adult alien education, and library 
 facilities for aliens. This work has all been helpful during the 
 recent war period in w^hich it has been carried on, but it is the 
 opinion of the Commission that the reception of immigrants 
 and the necessary attention to their needs prior to their be- 
 coming established should be taken care of by the Federal 
 government or by other agencies. The Commission therefore 
 recommends that the Division of Immigration and Ameri- 
 
36 STATE ADMINISTRATION. [Jan. 
 
 canization, in charge of this work, be continued only until 
 economic conditions have been restored to a reasonable degree 
 of stability, or until other agencies can assume its functions. 
 
 The Commission understands that certain State appropria- 
 tions now available for aid to veterans are expended under the 
 supervision of the American Legion, and recommends that this 
 practice be discontinued as being inconsistent with prescribed 
 limitations upon State expenditures. 
 
 The Department of Labor and Industries contains a Bureau 
 of Foreign and Domestic Commerce, which compiles statistics 
 and publishes reports along such lines as its title implies. 
 This department also takes an annual census of the manu- 
 facturing industries of the State, and publishes bulletins and 
 reports containing voluminous statistics of industrial activities 
 and labor conditions. It is the opinion of the Commission that 
 the needs of the State for information of this character can be 
 satisfactorily met in most cases by the census and other 
 statistical publications of the Federal government. The 
 abolishing or radical curtailment of these activities is therefore 
 recommended. 
 
 The Department of Education conducts the so-called Nautical 
 School for the training of merchant seamen and navigators. 
 The net cost of this undertaking, after deducting a Federal 
 grant of $25,000, is approximately $70,000 per annum. It 
 would appear that the training of the necessary personnel for 
 a merchant marine is logically a Federal or a private, rather 
 than a State, function. In spite of the history and traditions 
 of the Nautical School, the Commission feels that this annual 
 expenditure of $70,000 of State funds is unwise. The present 
 time, with its need of economy and a minimum usefulness of the 
 School, seems to offer more convincing reasons and opportuni- 
 ties for abandoning this activity than will again occur. The 
 Commission therefore recommends that steps be taken to 
 this end, or to effect a transfer of the school to Federal or 
 other agencies. 
 
 Curtailment of Activities. 
 In addition to the above list which covers abandonments of 
 activities, the Conwnission makes the following suggestionsfor 
 curtailment: — 
 
1922.] HOUSE — No. 800. 37 
 
 The volume and cost of state printing have for some time 
 been a matter deserving serious consideration. Noteworthy re- 
 ductions in the numbers and scope of departmental reports 
 have been made through the authority vested in the Supervisor 
 of Administration, but further reduction should be made. 
 
 As an illustration of superfluous distribution of publications, 
 the Commission calls attention to a copy of the latest annual 
 report of one of the State hospitals, which has come into its 
 possession. This report was mailed to a person who was for- 
 merly one of the trustees of this institution. He resigned from 
 that position about twenty-five years ago, and had no subse- 
 quent connection with the institution. He died sixteen years 
 ago. Copies of the annual report have been mailed each year 
 since his resignation from the board. 
 
 It is the custom of business establishments that maintain 
 mailing lists for distribution of advertising or other literature to 
 issue periodical notices to all persons on such lists to the effect 
 that their names will be removed unless a specific request is 
 received for continuance of the mailing service. Such procedure 
 is an obvious means of keeping printing and mailing costs within 
 reasonable limits. 
 
 In its study of the State printing situation, the Commission 
 has made a collection of State publications, with the size of each 
 and number of copies printed during the past year. If these 
 copies wxre stacked one upon another, the pile of this one year's 
 issue would reach the astounding height of about three and one- 
 half miles, or thirty-six times the height of the custom house 
 tower. If placed end to end they would make a narrow foot- 
 path from the State House in Boston to Trenton, N. J., or 
 well into Canada on the north. The cost of these publications, 
 together with stationery, printed forms, etc., is approximately 
 three quarters of a million dollars per year. The Commission 
 has been advised that by standardization and systematic han- 
 dling alone, without curtailment of quantity, the cost could be 
 reduced by about 25 per cent. 
 
 Inquiry regarding methods of distributing publications indi- 
 cates that there is little system or effort toward economy in the 
 distribution made through the departments. On the other 
 hand, the public document room has recently developed an 
 
38 
 
 STATE ADMINISTRATION. 
 
 [Jan. 
 
 admirable system for that part of the distribution for which it 
 is responsible. The number of copies of documents ordered 
 each year for the document room is carefully determined on the 
 
 u. 
 
 h 10 
 
 u. 
 O 
 
 h 9 
 
 a 
 
 -I 8 
 
 (/) 
 
 D 
 
 27 
 
 GRAPHIC REPRESENTATION 
 OF VOLUME OF 
 
 ANNUAL STATE PRINTING 
 
 PREPARED BY 
 
 Commission on state Administration 
 AND Expenditures 
 
 Boston Mass Dec 1921 
 
 Comparison of Height of 
 
 Custom House Tower 
 
 WITH All State Printed Matter 
 
 Piled One Volume Upon Another 
 
 Based Upon 
 
 Latest Complete Collection 
 
 SUMMARY OF PRINTING 
 
 APPROX NO. TOT NO. 
 PAGES FEET 
 
 Printing through the Sec. of State 22.653000 6,740 
 
 Legislative Prlnting....„ .9.677000 2,880 
 
 Department Bulletins & Misc. Printing ...18.697000 4.450 
 
 Public Documents (Annual Reports) 12.880.000 3.830 
 
 Totals 63,907000 17900 
 
 CUSTOM 
 HOUSE 
 TOWER 
 
 1 
 
 basis of the previous year's actualHssue.' Back numbers are 
 systematically reduced from year to year^and sold. No docu- 
 ments are issued except upon request. 
 
1922.] HOUSE — No. 800. 39 
 
 The Commission makes the following recommendations re- 
 garding State printing : — 
 
 1. That the distribution of departmental publications be re- 
 moved from the departments and handled exclusively through 
 the public document room. There should be no standing mail- 
 ing lists for annual reports, although any recipient of a report 
 might, by acknowledging its receipt and filing a request, receive 
 the next succeeding issue. 
 
 2. That arrangements be made with postal authorities for 
 mailing permits under which the handling of postage stamps in 
 large numbers by State employees without adequate check 
 would be avoided. 
 
 3. That promiscuous furnishing of public documents to 
 casual visitors to the State House be discontinued. Deserving 
 inquirers should be sent by the departments to the document 
 room with wTitten authorizations for publications. School chil- 
 dren should bring written requests from teachers or parents. 
 
 4. That the number of distinct publications be reduced in 
 accordance with the intent of section 8, Part I, chapter 350 of 
 the General Acts of 1919, which provides that all reports re- 
 quired by law from any State agency be made by the head of 
 the department within which such agency was thereafter to be 
 located. Separate reports are still published by subsidiary 
 agencies, containing much wholly worthless matter, or matter 
 which is duplicated in the required reports of the departments. 
 
 5. That the matter included in annual and other reports of 
 the departments be further systematically rearranged and con- 
 densed. 
 
 6. That all printed forms be standardized and an appropriate 
 quality of paper be used therefor and for general printing. 
 
 7. That the Commissioner of Administration and Finance 
 (proposed herein) undertake, through the organization recom- 
 mended for such purposes, a thorough study of the printing 
 situation as outlined in the above recommendations, and trans- 
 mit his recommendations in detail to the Governor, for con- 
 sideration and action by the Administrative Cabinet. 
 
 Section VIII of this report recommends that charges be de- 
 termined and systematically applied for valuable State publica- 
 tions to persons not entitled to free distribution, to the end 
 
40 STATE ADMINISTRATION. [Jan. 
 
 that further curtailment may be effected or compensating 
 revenue received. 
 
 The Commission has viewed with concern the workings and 
 tendencies of a policy whereby the State agrees to reimburse a 
 city or town, wholly or in part, for the cost of undertaking 
 certain activities of a local nature. This policy undoubtedly 
 tends to stimulate the undertaking of needed local improve- 
 ments, but also tends to increase general taxation to the extent 
 that the good accomplished may be far exceeded by the burden 
 upon the State as a whole. The burden of taxation, created by 
 •constantly increasing activities, is placing Massachusetts citizens 
 and industries at a distinct disadvantage, compared with similar 
 industries carried on in other States. 
 
 The Commission is therefore of the opinion, and accordingly 
 recommends, that further local activities should be financed by 
 the cities and tow^ns without State aid. However, this recom- 
 mendation shall not be construed as being opposed to the pres- 
 ent policy of State aid to certain activities conducted under the 
 direction of the Departments of Education and Public Welfare. 
 
 In Section I of this report recommendations are made cover- 
 ing consolidations of certain departments and activities. If 
 these recommendations are made effective, there will follow a 
 substantial reduction in organizations necessary for carrying on 
 the purchasing, engineering, construction, police, and miscel- 
 laneous clerical functions of the State, without, however, any 
 necessary accompanying curtailment of the activities involved. 
 
 SECTION IV. 
 
 This section offers opportunity to the Commission to dis- 
 cuss — 
 
 (a) Departmental and institutional business organization and manage- 
 ment. 
 
 (b) The method of handling and auditing departmental, institutional, 
 and other accounts of the Commonwealth. 
 
 Departmental Comments. 
 The alphabetically arranged departmental comments con- 
 tained herein will in general be limited to the activities of the 
 departments as now organized, with certain suggestions looking 
 
1922.] HOUSE — No. 800. 41 
 
 to the transfer of incidental functions from one department to 
 another in which they would be more logically located. Further 
 suggestions with reference to more extensive reorganizations of 
 the existing departments have already been made in Section I. 
 This discussion covers not only the administrative departments 
 but certain of the so-called "executive" departments whose 
 activities are largely administrative in character. 
 
 It may appear that some of the interdepartmental transfers 
 and readjustments recommended are unimportant as compared 
 with other matters not fully discussed, but the Commission has 
 been influenced in its studies by the fact that any needed re- 
 organization and refinement of intradepartmental activities are 
 matters for which department heads are properly responsible; 
 but interdepartmental relations and reorganizations are beyond 
 the scope of department heads, and should therefore be given 
 more extensive attention herein. 
 
 Organization and Management. 
 
 AdjutanUGeneral. 
 
 This department has charge of the military affairs of the 
 Commonwealth, including its units of the National Guard 
 organization. The Commission has not studied' the military 
 activities of the department; but in view of the unsettled 
 status of the National Guard and the confusion existing be- 
 tween State and Federal governments with respect thereto, it 
 recommends that the military affairs committee of the General 
 Court give the matter careful attention. 
 
 It is recommended in the preceding section that the Military 
 Intelligence Bureau of this department be abolished except for 
 purely military functions. 
 
 Agriculture. i r^.) 
 
 This department is charged with the development of the 
 agricultural resources of the State. Its activities do not require 
 special comment other than that certain minor ones might more 
 effectively be administered by other departments. It is ac- 
 cordingly recommended that certain food inspections, including 
 milk, butter, and other dairy products, be transferred from this 
 
42 STATE ADMINISTRATION. [Jan. 
 
 department to that of Public Health, which has other extensive 
 similar duties. 
 
 This department also conducts certain extension courses for 
 education of farmers in agricultural matters. It appears that 
 the Department of Education could properly add such courses 
 , to its extension work, to be administered with the assistance of 
 the Agricultural College. The basis of such transfer is the 
 principle that in general the Department of Agriculture should 
 do administrative work, leaving educational activities to the 
 Department of Education. 
 
 Auditor. 
 This department now has the responsibility of prescribing 
 and handling the general accounting work of the State depart- 
 ments, but does not do real auditing in a thorough and com- 
 plete manner. The second part of this section deals with the 
 general subject of accounting, and recommends that all book- 
 keeping be done in another department. It is here sufficient to 
 say that the auditing functions of this department, which it is 
 not proposed to disturb, should be extended to include all de- 
 partments and institutions, the accounting records of which 
 should be accessible at all reasonable times. Work of the above 
 character would not require the keeping of any books of ac- 
 count, and could be covered in a very brief annual report, in 
 place of the present voluminous but not enlightening one. 
 
 Banking and Insurance. 
 
 This department, engaged in supervision of corporate activi- 
 ties, consists of three major divisions. Banking, Insurance, and 
 Savings Bank Life Insurance. It has already been pointed out 
 that these divisions are practically distinct, and that the de- 
 partment has no responsible head. 
 
 With reference to the Division of Banking, it appears that 
 the work under its jurisdiction has so increased during recent 
 years as to justify the appointment of a deputy commissioner. 
 We believe that this added official would assist in more prompt 
 and efficient functioning of the organization. 
 
 In its studies of the existing methods of supervision of fire in- 
 surance companies, the Commission has become impressed with 
 
1922.] HOUSE — No. 800. 43 
 
 the desirability of more extensive regulation of the activities 
 . and methods of these companies. It is therefore recommended 
 that a deputy commissioner or otherwise entitled assistant be 
 appointed or assigned to make a thorough investigation of the 
 practices of all fire insurance companies doing business within 
 the Commonwealth, with particular reference to methods of 
 fixing rates and classification of risks, and with power to require 
 the presence and testimony of witnesses and the production of 
 books and records. This deputy commissioner should be au- 
 thorized to employ the assistants necessary for carrying on this 
 investigation, and to prepare a report of findings to be sub- 
 mitted to the General Court in 1923. 
 
 In furtherance of the proposed study of insurance rates and 
 classification of risks, it is suggested that a representative of 
 this department be delen:ated to attend meetings of the associa- 
 tion of fire insurance companies at which such matters are con- 
 sidered. 
 
 It is recommended in Section VIII of this report that the fees 
 charged for examinations of banks, insurance companies, and 
 other corporate activities supervised by this department be in- 
 creased to cover the cost of the service. 
 
 Corporations and Taxation, 
 
 This department, in charge of one commissioner, has two 
 divisions, Corporations and Taxation, respectively. 
 
 The income tax activities of the latter division are located in 
 offices outside the State House, on which a substantial rental is 
 paid. The separation of this division from the rest of the de- 
 partment involves a larger clerical organization than would 
 otherwise be necessary for carrying on its work. It is recom- 
 mended that space be found in the State House for this divi- 
 sion. The saving in rental and clerical services from such a 
 move would amount to about $70,000 annually. 
 
 The Tax Division should assess and collect all taxes, including 
 the collateral legacy tax now administered by the Treasurer, 
 and should employ all reasonable means of collecting amounts 
 due before calling in the Attorney-General for legal proceedings. 
 
 A further substantial saving in clerical cost, estimated at 
 
44 STATE ADMINISTRATION. [Jan. 
 
 from S25,000 to $40,000 per year, would be effected by requir- 
 ing advance payment of income taxes in connection with the 
 returns now filed early in the year. This would save a second 
 handling of the returns, after the original filing, for the purpose 
 of rendering bills, and a third handling in October, when the 
 bills are now paid. The Income Tax Division advises that com- 
 paratively few original returns are in error, so that the adjust- 
 ments required on account of incorrect payments of income tax 
 would be unimportant. 
 
 As opposed to the advance payment of these taxes is the 
 argument that the taxpayers would lose the use of their money 
 for more than six months, the average return on this money 
 while in their hands being presumably greater than that which 
 the State would save through relief from present temporary 
 borrowings, or would earn from* investment of any surplus 
 funds received. Since the income taxes are assessed for the 
 benefit of the cities and towns, and are distributed to them after 
 deducting administrative costs, the saving from advance collec- 
 tion would ultimately accrue to the cities and towns rather 
 than to the Commonwealth. After consideration of the matter, 
 the Commission recommends that income taxes be paid at the 
 time of filing returns instead of in arrears, as at present. , 
 
 This department also includes a Division of Accounts, which 
 has developed standard accounting systems for cities and towns 
 of the State, which systems are put into effect by this division 
 upon application. The importance of uniformity of municipal 
 accounting in permitting intelligent comparisons of administra- 
 tive costs is such that the Commission recommends the uniform 
 adoption of the standard system throughout the State, and to 
 this end proposes that the cities act upon the matter through 
 their governing bodies during 1922, and that all towns include 
 it in their warrants during 1923. 
 
 The director of this division should also be empowered to 
 prepare and publish a book of instructions covering the standard 
 system of municipal accounting now in effect, with such modifi- 
 cations as may be found desirable for consistency with the new 
 system of State accounting proposed herein. Such instructions 
 would facilitate the introduction of the standard system and re- 
 duce the required supervision. 
 
1922.] HOUSE — No. 800. 45 
 
 The Commission recommends that the accounts of the Income 
 Tax Division, which are not now examined by the Auditor's 
 Department, be subject to its audits in the future. 
 
 Civil Service and Registration, 
 
 This department contains two distinct divisions, which have 
 no definite relations with each other. 
 
 The Civil Service Division is discussed at considerable length 
 in Section VI of this report, and recommendations for im- 
 portant changes in its functioning are made. Briefly, these 
 changes include a curtailment of the exemption list, the creation 
 of a class of duties for which competitive examinations will not 
 be required but otherwise included in the classified service, and 
 the substitution of a Board of Review ha\ing final responsibility 
 over contested cases of discharge of employees. 
 
 It is also recommended elsewhere that moderate fees be 
 charged for examinations, for the partial support of the division. 
 The Commission has been unable to obtain from this di\ision 
 any definite information regarding the cost per applicant of 
 preparing and conducting examinations, but it has gained the 
 impression that this cost is excessive, and recommends that this 
 department be called upon to analyze its activities, with a view 
 to possible greater efficiency. 
 
 The Commission, charged as it is with the duty of bringing 
 forward any suggestion that would tend to improve the ad- 
 ministration of State affairs, has considered the matter of the 
 preference now accorded by law to veterans applying for State 
 employment. 
 
 The majority of the Commission is of the opinion that, viewed 
 solely from the standpoint of securing the best qualified appli- 
 cant for a State position, the preference law is undoubtedly 
 detrimental. The minority of the Commission is of the opinion 
 that the law has not proved detrimental in this respect. 
 
 This, however, is not the only standpoint from which the 
 preference law should be viewed. It is, in its essence, a recog- 
 nition by the State of services rendered in times of national 
 stress and a measure of reward for such services. It is a ques- 
 tion of State policy whether this is a proper method of recog- 
 
46 . STATE ADMINISTRATION. [Jan. 
 
 nizing and rewarding these services, and on this question the 
 Commission as such expresses no opinion. 
 
 The Division of Registration carries on a wide range of activi- 
 ties, but does not handle all the registration work provided for 
 by the statutes. Most of the licensing activities now carried 
 on in other departments should be transferred to the Division 
 of Registration, including the following: engineers, firemen, 
 hoisting engineers, elevator operators, and plumbers. 
 
 In Section VIII of this report it is recommended that regis- 
 tration fees be standardized to avoid a considerable number of 
 existing inconsistencies, and that increases be made where 
 practicable to place the registration activities upon a self- 
 supporting basis. 
 
 The Commission believes that it should be possible to simplify 
 the registration organization through a combination of its ad- 
 ministrative and clerical forces so that the cost of examinations 
 would be reduced. The recommendation of the Commission is 
 that the registration boards be brought together, so that a joint 
 clerical organization may handle their combined work instead of 
 having independent clerical staffs and office space, as is, in 
 part, the case at present. The routine functioning of the 
 organization, aside from actual examination of applicants, 
 should be in the hands of an executive secretary. 
 
 There is at present some inconsistency in the amount and 
 method of compensation of the members of the registration 
 boards. The Commission recommends that the commissioner 
 in charge of this division be called upon to report a revised plan 
 of organization and of compensation for registration super- 
 vision. 
 
 Conservation, 
 
 This department carries on activities which are in many re- 
 spects closely related to the Department of Agriculture, and a 
 more intimate relation between the two departments is recom- 
 mended in Section I. 
 
 The transfer to this department of responsibility for the so- 
 called "province" lands from the Department of Public Works 
 is recommended; also that all pest control activities now 
 carried on by several departments, except the metropolitan dis- 
 trict, be concentrated in this department. 
 
1922.1 HOUSE — No. 800. 47 
 
 Corrections. 
 
 As the result of its surveys of this department, the Commis- 
 sion has reached the conclusion that it has under its supervision 
 too many separate institutions, none of which is fully occupied. 
 The State Prison at Charlestown is obsolete, and there appears 
 to be no question but that it should be abandoned as soon as it 
 is practicable to do so. The property on which this prison is 
 located has a value for other purposes which has been estimated 
 between S750,000 and $1,000,000. 
 
 As to the disposition of the Charlestown prisoners, it is the 
 opinion of the Commission that they should be transferred to 
 Bridgewater. The facilities at this point could be made suitable 
 for the safe confinement and proper housing of the prisoners by 
 comparatively simple alterations in the buildings and the 
 erection of a custodial wall. It is estimated that this work 
 should cost not exceeding $400,000. The custodial wall should 
 include, not only the buildings now to be used for prison pur- 
 poses, but also sufficient space for future new buildings. Under 
 this plan, consolidation of prisons could be effected at a cost 
 (including the custodial wall) less than the estimated sale value 
 of the Charlestown property; and if at a later date new and 
 more modern prison facilities should be needed, they could be 
 provided without material loss on account of the work now 
 done. It is estimated that the annual saving in prison opera- 
 tion from the proposed consolidation would be not less than 
 $150,000. To this amount should be added the substantial re- 
 duction in commissary expense which would result from the 
 further cultivation by prisoners of the fertile but now unde- 
 veloped land owned by the State in connection with the Bridge- 
 water plant. 
 
 The Prison Camp and Hospital at West Rutland is an ex- 
 pensive institution to maintain, due to its small population, but 
 it serves a useful purpose and is well managed. It is p'robable 
 that a substantial saving in operating cost would result if a 
 small separate hospital for the care of these tubercular prisoners 
 were built within the proposed custodial wall at Bridgewater, 
 but the Commission makes no recommendation with respect to 
 such transfer. 
 
48 STATE ADMINISTRATION. [Jan. 
 
 In brief, the Commission's recommendations with reference 
 to correction institutions are as follows : — 
 
 1. That the construction of a new State Prison or the acquisition of 
 the plant at Deer Island for remodeling into a State Prison not be under- 
 taken at this time. 
 
 2. That the State Prison at Charlestown be abandoned and sold at 
 the earliest possible date, and that the prisoners be removed to Bridge- 
 water. 
 
 3. That for the present the only modifications in the Bridgewater 
 plant be the addition of a custodial wall, the renovation of existing build- 
 ings, with slight changes to isolate the new prisoners from the present 
 inmates, and the addition of some shop space if necessary. No present 
 buildings should be destroyed. 
 
 Education. 
 
 This department conducts a wide range of activities, including 
 supervision of the Agricultural College, ten normal schools, 
 three textile schools, the Nautical School, university extension 
 courses, continuation courses, adult alien education, and immi- 
 grant aid. The following comments apply to these various 
 activities : — 
 
 The Agricultural College, in addition to its courses which 
 have a direct bearing upon agricultural pursuits, offers a con- 
 siderable number of courses in literature, modern languages, 
 music, etc., which appear to be somewhat outside the proper 
 scope of an institution of this character. The Commission is 
 not able to make specific recommendations with respect to this 
 matter, but recommends that the Commissioner of Education 
 be called upon to make a report to the Governor upon the 
 character of the instruction in question, the extent of its pat- 
 ronage, the fields of activity which the graduates enter, and 
 other pertinent matters, all with a view to possible curtailment 
 of such instruction to keep it within proper limits for an agri- 
 cultural college. 
 
 A study of the normal schools shows that there is a wide 
 range of attendance and per capita cost of operating the 
 schools. The smaller institutions, such as Hyannis and North 
 Adams, show a per capita cost very much higher than the 
 larger schools. If the normal instruction could be concentrated 
 into a smaller number of schools, with a per capita cost not ex- 
 
1922.] HOUSE — No. 800. 49 
 
 ceeding that of the largest and most economically operated 
 present school, the total annual cost of operating the group of 
 schools would be reduced by more than $200,000. As against 
 such consolidation, however, it is contended that a less ccn- 
 venient geographical distribution would curtail the number of 
 students in the schools, and that in some cases students would 
 not return to teach in the outlying sections from which they 
 come. The Commission makes no definite recommendation 
 with respect to reorganization of the normal school system, but 
 is convinced that the possibilities of saving from such reorgani- 
 zation justify a further careful study. 
 
 Elsewhere in this report (Section III) will be found recom- 
 mendations for curtailment or abandonment of some of the 
 other activities of this department, including the Nautical 
 School and immigrant aids. 
 
 Public Health. 
 
 The activities of this department include two fairly distinct 
 groups, viz.: (1) the conduct of certain sanatoria; and (2) 
 other miscellaneous professional, educational, and adminis- 
 trative work concerned with food, general public health, and 
 engineering of water supplies, sewerage systems, etc. 
 
 The Commission's examination of the sanatoria shows a 
 much higher service personnel per patient than in other institu- 
 tions, which, in part at least, seems to be unnecessary. Else- 
 where in this report (Section I) the Commission recommends 
 a business organization available to supervise the operation of 
 these institutions by combining them with other institutions in 
 a new Welfare Department. 
 
 The fees charged by this department for sanatoria patients 
 are wholly inadequate to cover the cost, and collections of fees 
 due from patients are not systematically followed up. The 
 Commission recommends in Section VHI that higher fees be 
 charged. 
 
 The sanitary inspection staff of this department has ap- 
 parently not been as thorough in its examination of the condi- 
 tion of State institutions as in the case of private property. 
 This condition should not continue. 
 
50 STATE ADMINISTRATION. [Jan. 
 
 This department has an Engineering Division of high stand- 
 ing for consultation and designing in connection with water 
 supplies and sewage disposal. The statute authorizes this divi- 
 sion to initiate studies of the future needs of cities and towns 
 with respect to sewerage systems, so that necessary future de- 
 velopments will not be unduly delayed. Similar provisions with 
 reference to water systems are not embodied in the statutes, 
 although they are of greater importance. It is recommended 
 that this department be authorized by law to act as a consult- 
 ing agency of all cities, towns and districts within the State 
 with respect to both sewer and water systems, with the right to 
 initiate studies which appear to be in the public interest. Such 
 general provisions would bring the metropolitan district activi- 
 ties of this character, like those of the balance of the State, 
 within the scope of the Health Department's engineering service; 
 and the Commission is of the opinion that this is desirable, 
 leaving to the Metropolitan District Commission responsibility 
 for the construction of the new systems and their operation 
 when completed. 
 
 Industrial Accidents. 
 
 The work of this department is confined to the administration 
 of the workmen's compensation act, and its conduct of this 
 work has met with the approval of all interested parties. 
 
 The Commission's examination of this department led to the 
 impression of a complicated system of records and a correspond- 
 ingly liberal clerical organization. The publications of the de- 
 partment also appear to contain unnecessarily voluminous de- 
 tails of the cases handled. 
 
 In Section I of this report the Commission recommends the 
 inclusion of this department in the proposed new Department 
 of Labor and Industries without changing its present functions. 
 
 Labor and Industries. 
 The duties of this department include the adjustment of 
 labor controversies, the recommending of minimum wages for 
 certain industries, and investigations of industrial conditions. 
 Its activities also include the compilation of extensive data and 
 statistics bearing upon commerce and manufactures, which the 
 
1922.] HOUSE — No. 800. 51 
 
 Commission, in Section III, recommends be abolished or largely 
 curtailed. 
 
 Several activities conducted by other departments are closely 
 allied with the work of this department, and might more 
 efficiently be carried on in connection therewith. The following 
 transfers to this department are accordingly recommended: 
 smoke inspection from Public Utilities; building inspection 
 from Public Safety; elevator regulations from Public Safety; 
 boiler inspection from Public Safety. 
 
 The purpose of these transfers is to concentrate so far as 
 possible inspection activities involved in building construction 
 into one department, where the inspection service can be simpli- 
 fied. This department, for example, can undertake the smoke 
 inspection now carried on by the Public Utilities Department 
 without an}' increase in its own personnel. 
 
 Mental Diseases. 
 
 This department spends a much larger amount of money than 
 any other State department. The amount of money collected 
 for the support of inmates in its institutions is, however, com- 
 paratively small, and the Commission is of the opinion that a 
 larger organization for the collection of fees, particularly through 
 recurrent investigation of the financial standing of relatives, 
 would result in a substantial increase in revenues. Further sug- 
 gestions looking to increased revenue will be found in Section 
 VIII. 
 
 The appalling extent of mental deficiency within the Com- 
 monwealth and the enormous sums of money expended for the 
 care of patients suggest the need of careful stud}^ of preventive 
 measures. Such studies have been made in the past, and indi- 
 cate that the root of the problem is prevention, and that early 
 treatment will keep many prospective patients out of the insti- 
 tutions. It is hoped that further increase in mental disorders 
 has been checked by the work already done. It is, however, 
 by no means certain that all reasonable efforts looking to cur- 
 tailment of existing deficiencies and prevention of further de- 
 velopments by education, isolation, and otherwise have been 
 taken. A further careful study of preventive measures is recom- 
 mended. 
 
52 STATE ADMINISTRATION. [Jan. 
 
 Metropolitan District. 
 
 The metropolitan district activities include the administra- 
 tion of parks and the water and sewerage systems serving the 
 metropolitan area. It has been a serious question with the 
 Commission whether the functions and activities of the Metro- 
 politan District Commission are not becoming State problems. 
 The Commission is clearly of the opinion that the problems of 
 routes of travel, of the character of roadways, and of the loca- 
 tion, width, and strength of bridges should be studied and de- 
 termined with reference to the needs of the State as a whole. 
 It therefore recommends that the laying out, construction and 
 maintenance of improved highways and of bridges be placed 
 under the Department of Public Works. 
 
 The question of whether the metropolitan district police 
 should be transferred to the Department of Public Safety was 
 raised in the Commission, and decided in the negative by a 
 divided vote. The minority felt that the metropolitan district 
 police should properly be considered in the same category with 
 the State police and the State constabulary, and placed under 
 one control, namely, the Department of Public Safety. 
 
 The Commission is not prepared to recommend at this time 
 that other important functions of the Metropolitan District 
 Commission be allocated to other departments. It does, how- 
 ever, recommend that minor functions, such as laboratory work, 
 forestation, and engineering problems of water and sewerage, be 
 handled through other existing State agencies. 
 
 The Commission recommends that the offices of this depart- 
 ment, now in two separate office buildings, be combined and 
 condensed, thereby effecting a substantial saving in rental. 
 
 It further recommends, in the interests of more efficient ad- 
 ministration, that the Metropolitan District Commission be re- 
 organized with one commissioner and two associate commis- 
 sioners, one to be a director of parks, one a director of water 
 works, and one a director of sewers, the commissioner to be the 
 responsible administrative head of the commission. 
 
1922.1 HOUSE — No. 800. 53 
 
 Public Utilities. 
 
 This department is primarily engaged in the supervision and 
 regulation of public service companies. A recommendation that 
 smoke inspection, a function foreign to this department, be 
 transferred to Labor and Industries, has been made elsewhere. 
 
 The Commission has also recommended that the cost of 
 supervision of public utilities be assessed against these utilities 
 in all cases, to prevent discrimination which now exists. 
 
 Public Welfare. 
 
 This department conducts two distinct classes of activities, — 
 institutional and general aid and relief. 
 
 Among the institutions under this department one, namely, 
 the State Infirmary at Tewksbury, has a heterogeneous collec- 
 tion of inmates and general conditions attending it which need 
 earh' correction. By transferring this department to a larger 
 new department of the same name, it is proposed to make 
 available to these institutions the business supervision referred 
 to in Section I. 
 
 Attention is also called to the large amounts of State money 
 disbursed by the Division of iVid and Relief through city and 
 town agencies without adequate State supervision. The Com- 
 mission has not formulated any definite plan for correcting any 
 abuses which may arise in this connection, but recommends 
 that the matter be given further attention. 
 
 The laws of Massachusetts provide for a five-year residence 
 in a particular locality before ''settlement" is recognized. The 
 care of certain settled cases falls upon the cities and towns, but 
 unsettled cases are supported by the State. In many cases it is 
 very difficult to solve the question of settlement because of the 
 five-year period. Most other States have adopted a much 
 shorter period, usually one or two years. It is recommended 
 that the matter of a similar change in Massachusetts be given 
 attention, to the end that the splution of settlement problems 
 be simplified and the responsibility for support placed where it 
 belongs. 
 
54 STATE ADMINISTRATION. [Jan. 
 
 Public Works. 
 
 The highway and other construction work of this department 
 is carried on in an efficient manner and with due regard for 
 future needs. The Commission has elsewhere recommended 
 that the metropohtan district highway and bridge construction 
 and maintenance work be transferred to this department to se- 
 cure the advantage of its efficient methods. 
 
 It is also recommended that the care of the "province" lands 
 be removed from this department to Conservation. 
 
 Safety. 
 
 It is proposed to transfer from this department the following 
 incidental activities: boiler, building, and elevator inspections 
 to Labor and Industries. 
 
 It is recommended also, in Section VIII, that the fees of 
 certain remaining activities be increased. 
 
 Secretary of State. 
 
 Aside from supervision over State elections, the functions of 
 this department are largely of a routine nature. In Section III 
 it is recommended that the decennial census be abolished, that 
 the Ballot Law Commission be attached to this department in- 
 stead of remaining a separate executive function, and that 
 certain fees charged by this department be increased. The 
 establishment of a central purchasing agency, elsewhere recom- 
 mended, would remove from this department the duty of pur- 
 chasing paper for printing and general use. 
 
 This department contains the archives in which the State's 
 valuable papers and documents are preserved. The State Li- 
 brary, now classed as an executive division, also contains many 
 valuable State records. There appears to be no wholly distinct 
 division between the archives and the library, and search is 
 sometimes necessary in both for a desired document. It is 
 recommended that the State Library be placed under the super- 
 vision of the Secretary of State, so that the resources of both 
 may be more conveniently accessible. 
 
1922.1 HOUSE — No. 800. 55 
 
 Superintendent of Buildings. 
 
 This executive agency has charge of the State House build- 
 ing, the assignment of space therein to the various departments, 
 and the purchase and distribution of suppHes for the occupants. 
 
 The condition of certain pubHc, but not prominent, parts of 
 the State House are not fully up to standard, due to storage of 
 miscellaneous materials, which introduces an undesirable fire 
 risk. No fire-alarm boxes are to be found in or immediately 
 accessible to the building. The fuel used in the heating plant 
 is of an unnecessarily expensive quality. 
 
 The Commission has elsewhere in this section recommended 
 that certain activities now housed in Boston office buildings be 
 brought into the State House. This could be accomplished 
 without removing other activities if a careful and consistent 
 assignment of space was made to all departments. 
 
 Section I of this report recommends the transfer of the care 
 of the State House, space assignment therein, and purchasing 
 and storeroom functions to the Department of Administration 
 and Finance. 
 
 While the post office in the State House is not under the 
 supervision of the Superintendent of Buildings, the Commission 
 takes this opportunity to point out that the distribution of the 
 morning mail is not made sufficiently early to facilitate the 
 work of the departments. The lost time of clerks waiting at 
 the post-office windows, and the more important loss to the 
 balance of the clerical and administrative organization in the 
 State House from delay in mail distribution, involve a material 
 amount of money. 
 
 Supervisor of Administration. 
 The duties of this executive agency are to prepare budget 
 data for the Governor and Les^islature, to supervise and 
 standardize salaries, to supervise the printing work of the State, 
 and other incidental activities. The Commission is of the 
 opinion that there is room for a substantial enlargement of 
 functions of this character, and recommends in Section I a re- 
 organization which will accomplish this purpose. 
 
56 STATE ADMINISTRATION. [Jan. 
 
 Treasurer. 
 
 The Treasurer and Receiver-General now not only acts as the 
 custodian of the State funds, but carries on extensive account- 
 ing work which logically belongs elsewhere. He also assesses 
 and collects collateral legacy taxes, which function should be 
 transferred to the Commissioner of Taxation. 
 
 The disposition of the accounting work of this department 
 (of which it should be relieved) is discussed in the second part 
 of this section. 
 
 Accounting Methods. 
 
 Because of the fundamental importance of proper and ade- 
 quate accounting records in the administration of any business, 
 the Commission has made a careful study of the system now 
 used by the Commonwealth to record its financial activities. 
 This system is an evolution from the practice in the early days 
 when the State's business was comparatively simple. It is 
 wholly inadequate to provide for the more complex require- 
 ments of the present vastly increased activities. 
 
 One of the vital objections to the present system is that it is 
 based, in theory, upon cash receipts and expenditures. In 
 practice, the cash basis is not strictly followed, particularly at 
 the end of the fiscal year, resulting in a confusing, unsystematic 
 and misleading mixture of ancient and modern methods. 
 
 One of the fundamental purposes of accounting records is to 
 set forth the cost of conducting an activity during any fiscal 
 period so that the efficiency of operations may be clearly shown 
 to responsible executives. This purpose is not accomplished by 
 a cash statement, as will be seen by an illustration from the 
 latest published reports of one of the hospitals. This report 
 shows monthly costs of caring for patients, varying between 
 $16.90 and $46.10 per patient. There was, of course, no such 
 variation in actual cost of current operations, and the figures 
 are wholly misleading. Similar conditions exist throughout the 
 entire accounting system. It is impossible to determine from 
 the Auditor's voluminous reports the total annual expenditures 
 of the State without an exhaustive analysis of several appar- 
 ently conflicting summary statements. 
 
1922.] HOUSE — No. 800. 57 
 
 The distribution of accounting functions between different de- 
 partments is also wholly unsystematic. Certain records initiated 
 by the Treasurer are duplicated by the Auditor. The Auditor 
 also duplicates certain budget activities of the Supervisor of 
 Administration. On the other hand, the actual auditing work 
 done by the Auditor is superficial and incomplete. Audits are 
 made at intervals of one to three years, and the time spent is 
 not sufficient to insure thorough work. 
 
 Defects in the present system of accounts and audits will not 
 be considered in further detail because it is obvious that the 
 whole system should be abandoned at the earliest possible 
 moment, and be replaced by a standard system adapted to 
 present and future requirements and administered along dif- 
 ferent organization lines. The fundamentals of the new system 
 which the Commission recommends will first be considered, then 
 the organization necessary to administer it in a most efficient 
 manner. 
 
 System. 
 
 It is of vital importance that administrative officials have 
 accurate records of the current costs of carrying on their 
 activities. This requires a Statement of "expenses" as distinct 
 from "expenditures," the former being the commitments for 
 the period in question for services rendered and materials and 
 supplies actually used, whether or not paid for within that 
 period. This is the system now universally used for accurate 
 and adequate accounting. Expense accounts should be set up 
 under this system in such detail for different departments, 
 divisions, and institutions, or other specific activities, as will 
 clearly show any significant departure from normal or budgetary 
 standards. In order that statements of current operating ex- 
 penses may not be distorted by abnormal charges, the new 
 system should provide distinct accounting for extraordinary re- 
 pairs or replacements and expenditures made for additions to 
 property or equipment. 
 
 Accompanying this form of expense accounting should be a 
 similar set of revenue accounts based upon bills rendered rather 
 than cash collections. If any bills become uncollectable, they 
 should be an expense charge against the collecting agency. 
 
58 STATE ADMINISTRATION. [Jan. 
 
 A condensed cash account would also be required, showing 
 only the general sources of receipts and general character of dis- 
 bursements. 
 
 Essential to the functioning of the proposed system is a 
 *^ materials and supplies" account, to which would be charged, 
 when purchased, articles not wholly needed for current con- 
 sumption. These articles would be credited to the supply ac- 
 count, and charged to expenses when taken out for actual use. 
 Other necessary balance sheet accounts would include accounts 
 payable and receivable, agency accounts, sinking funds, re- 
 serve accounts, and miscellaneous items. Through such ac- 
 counts there should be set up in the annual report of the 
 Comptroller an accurate and carefully computed statement 
 showing any balance in the treasury which is subject to appro- 
 priation by the incoming Legislature, or any deficiencies which 
 must be met by appropriation. It is practically impossible to 
 determine these facts from the present system of accounting. 
 
 The balance sheet of a business corporation would also include 
 a property account, made up of the revenue-producing fixed 
 assets, and a corresponding liability account including outstand- 
 ing securities. Such items cannot be included in the proposed 
 State accounting system at the present time because records of 
 the cost of property acquired many years ago are not available 
 readily, if at all. 
 
 It will serve the practical purposes of the new system if, in 
 the initial balance sheet which may be set up, the amount of 
 the item on the debit side which represents State-owned prop- 
 erty is an arbitrary sum equal to the amount of permanent 
 State indebtedness outstanding on account of such property, 
 and is accompanied by a notation showing that fact. Subse- 
 quent charges to "State-owned property" should be in accord- 
 ance with a standard system of accounts, and should be charged 
 only upon written order issued by the Commission of Adminis- 
 tration and Finance, upon a majority vote of the full commis- 
 sion, and all reductions on account of depreciation or otherwise 
 should be made only after similar vote and order. 
 
 The above provisions with respect to changes in the property 
 item furnish a check, customary in all modern practice, against 
 any improper charges or credits. It would be desirable to 
 
1922.] HOUSE — No. 800. 59 
 
 assemble in one complete statement, and maintain in some con- 
 venient form, an accurate inventory of all surviving State 
 property, such as is now required by law from certain depart- 
 ments, with its actual original cost and the source of the funds 
 involved therein, whether from bond issues or taxation. This 
 would safeguard movable property against loss, and afford a 
 basis of suitable provisions for upkeep and replacement of all 
 depreciable property. The absence of such records, however, 
 will not affect the preparation of necessary balance sheets or the 
 functioning of other features of the proposed system. 
 
 This report does not undertake to work out the details of the 
 new system of accounts which it recommends for adoption by 
 the State. The designing of the complete new system and the 
 preparation and publication of a comprehensive instruction 
 book relating thereto will require months of labor and research. 
 It is recommended that the new accounting officer herein pro- 
 posed be appointed promptly, and that he be assigned the 
 initial duty of taking charge of the design and installation of 
 the new system. There should be made available to him the 
 services of trained accountants now serving various State de- 
 partments, and he should further be empowered to employ such 
 expert assistance as may be necessary to insure the develop- 
 ment of accounting standards which will meet, not only present 
 needs, but also, with minor modifications, will take care of 
 future developments. The Commission has had prepared for 
 its information a comprehensive report on the present and pro- 
 posed accounting systems, including suggested forms of new 
 standard accounting and other details which may be of interest 
 to the new accounting organization when assembled, A copy 
 of this report will be filed in the State Library. 
 
 Organization. 
 The Commission is clearly of the opinion that the Auditor 
 (or any other accounting agency) should not do both auditing 
 and accounting. The Auditor should be relieved of all account- 
 ing duties, and should keep no books or records other than re- 
 ports of the auditing work of his staff. All departments and 
 activities should be audited annually with care, including the 
 
60 STATE ADMINISTRATION. [Jan. 
 
 Income Tax Division, which has never been examined by the 
 Auditor. 
 
 The new auditing staff should preferably have two divisions, 
 of receipts and disbursements, respectively. The former divi- 
 sion should contain men qualified, not only to check actual re- 
 ceipts, but also to study other possible sources of revenue. The 
 duties of the latter division are of a more routine character. 
 
 The Treasurer should be relieved of accounting duties other 
 than those connected with the cash which he handles. He 
 should retain the custody of all trust funds now in his posses- 
 sion, and be primarily responsible for their wise investment. 
 Because of the large sums now in the sinking and other trust 
 funds requiring investment and reinvestment from time to time, 
 the Treasurer should have available, for assistance in such 
 transactions, a group of administrative officials acquainted with 
 such matters, including the Commissioner of Administration and 
 Finance, the Comptroller, the Commissioner of Corporate Activi- 
 ties, the Associate Commissioner of Corporations and Taxation, 
 and the Auditor. The written approval of at least two of these 
 advisers should be secured in each case of investment or rein- 
 vestment of substantial amounts. 
 
 It is recommended that a new bureau be created in charge of 
 a Comptroller, to handle the accounting work of the State. He 
 should first design and install the new system, prescribing all 
 forms and books of account to be used by the several depart- 
 ments, and no other forms or books should thereafter be used 
 without his specific approval. From time to time as may be 
 expedient he should revise such forms or books, or the account- 
 ing system under which they are used. He should approve all 
 vouchers, pay rolls, and other documents calling for expenditure 
 of State money, check them against budget appropriations for 
 consistency therewith, and forward them to the Governor and 
 Council for the issue of warrants on the Treasurer. He should 
 be in possession of all contracts, salary lists, and standards, and 
 other data pertinent to such functions. 
 
 The Comptroller should keep all general books of account, 
 and determine the extent and character of subsidiary accounts 
 kept by his office and by the several departments. He should 
 be equipped promptly to furnish all accounting statements re- 
 
1922.] HOUSE — No. 800. 61 
 
 lating to financial status, funds, reserves, appropriation control, 
 and cost of operation, not only at the close of the fiscal year, 
 but at all intermediate monthly periods when such information 
 is needed in effecting economies before appropriations have been 
 exhausted, or for other purposes. 
 
 The Comptroller's annual report should contain in logical 
 sequence all essential data relating to the financial history of 
 the State. Annual reports of other departments and institu- 
 tions may include pertinent financial data in detail, but in 
 accordance with the standard system of accounts, and in full 
 agreement with summary statements in the Comptroller's annual 
 report. The Comptroller should verify all accounting state- 
 ments of other departments before their publication. 
 
 The Budget Commissioner should perform the duties of this 
 character now lodged in the Supervisor's Department, having 
 available the records and resources of the Comptroller's office 
 and its full co-operation. 
 
 The relations of the various officers and accounting agencies, 
 herein considered, to each other and to other activities are set 
 forth in Section I of this report, dealing with departmental re- 
 organization. 
 
 SECTION V. 
 
 Under this heading are included suggestions as to — 
 
 Ways and means whereby comprehensive plans may be made in advance 
 concerning the needs of the several departments for a series of years. . . . 
 
 Construction Forecasts. 
 
 The advantages of such a program are beyond question. 
 Capital expenditures of a department or of the State as a whole 
 in any particular year should be inffuenced by the extent of 
 necessary expenditures in future years and the probable busi- 
 ness conditions in those years. A considerable proportion of 
 the State's construction work, particularly highways, can be 
 done when conditions are favorable, which is generally during 
 periods of industrial depression, with low costs of material and 
 plentiful labor. 
 
 Aside from such considerations, if the State is to adhere to 
 a pay-as-you-go policy, stable taxes can best be maintained 
 
62 STATE ADMINISTRATION. [Jan. 
 
 without bond issues, through careful study of suggested con- 
 struction needs of all departments for a considerable term of 
 years, and adjustment of the totals from year to year to such 
 uniformity as may be desirable. Furthermore, a long-range 
 program of development may disclose unwise tendencies or 
 policies not clearly evidenced in any single annual budget. 
 
 The recommendations of the Commission do not include any 
 detailed studies of the future needs of the several departments 
 or of the way in which they should be distributed and financed, 
 but are limited to a system of forecasts under which each year 
 the various departments responsible for any considerable 
 amount of physical property would submit estimates of probable 
 annual construction expenditures for a period of not less than 
 five years. For highways, water or sewer systems, and institu- 
 tional activities, the period might be considerably longer, at 
 least with respect to specific major developments. 
 
 The recommended forecasts should be submitted by the de- 
 partments with their annual budget estimates, and should be 
 subject to the same consideration as the budget items up to and 
 including the ways and means committee. Each year items in 
 prior forecasts would require some modification, in th^ light of 
 new developments and of changes made in the current part of 
 the program by appropriation acts. 
 
 In addition to the usual budget classification by items, the 
 forecasts should embody a further classification on the basis of 
 importance or necessity for the time being of the proposed 
 work. It is suggested that three classes of construction items 
 be provided for each year, to be called "necessary," "de- 
 sirable," and "contingent," respectively. The first class would 
 include parts of a fixed, continuing program or other unavoid- 
 able needs; the second class would include items advantageously 
 provided for at that time, but which might be postponed or 
 possibly advanced; the third class would include work de- 
 pendent upon some other developments which cannot be defi- 
 nitely predetermined, such as population or traffic increases, 
 and the results of sociological or health researches. A "de- 
 sirable" piece of work for a certain year might be postponed 
 and become, in the following year, a "necessary" item of the 
 then revised forecast. A "contingent" item of a certain future 
 
1922.] HOUSE — No. 800. 63 
 
 year might be changed to a "necessary" item of another 
 year. 
 
 Forecasts of this character are in common use in private busi- 
 ness, and are helpful in determining financing and construction 
 policies. They would be similarly helpful in State activities, in 
 spite of the numerous changes which would doubtless be made 
 from year to year in unmatured projects. 
 
 For departments which have no technical staffs for construc- 
 tion activities, some assistance would be required for forecast 
 estimates. Some other State department, preferably Public 
 Works or Administration and Finance, should be equipped and 
 designated to furnish approximate data of this character. It is 
 not probable that definite plans and specifications would be 
 either practicable or desirable for other than immediately 
 necessary work. 
 
 SECTION VI. 
 
 Personnel Matters. 
 
 This section deals with the personnel problems of the several 
 departments, the number of positions, classifications, salaries, 
 and other matters bearing upon efficient service. 
 
 The Commission has not undertaken to make a sufficiently 
 detailed study of the exact duties performed in the different 
 offices to determine whether or not the number and character 
 of the employees therein are closely and efficiently adjusted. 
 In some of its general observations of the workings of the de- 
 partments it has gained the impression of an inactive and ex- 
 cessive organization. In other cases very commendable activity 
 has been apparent. Because varying degrees of diligence may 
 have some relation to seasonal character of departmental work, 
 the Commission does not feel justified in making specific com- 
 ments based upon its general observations. Later comments re- 
 garding the underlying principles of the existing employment 
 system might justify the inference that, if lack of proper dili- 
 gence exists, it is primarily the fault of the system rather than 
 its direct administration. 
 
 It is common belief that there is less output per unit in gov- 
 ernment service than in private enterprises. The substitution of 
 civil service in place of the spoils system has measurably de- 
 
64 STATE ADMINISTRATION. [Jan. 
 
 creased the difference in efficiency, but civil service has not yet 
 fulfilled all its possible functions. As usually organized, civil 
 service finds a man qualified for a job, sees that he gets it, and 
 thereafter leaves him a fixture, regardless of capacity for syste- 
 matic promotion or possible better qualifications for an entirely 
 different occupation. Under such conditions an employee loses 
 energy and ambition, or secures another job in private service 
 with opportunities for advancement. In either event the classi- 
 fied job suffers. 
 
 Civil service should be expanded to keep continuous records 
 of its appointees, with their successful characteristics, am- 
 bitions, and weaknesses, thereby determining the best line of 
 advancement for each. Advancement should be made possible 
 by civil service certificate upon the employee's record, without 
 examination or regard for departmental boundaries. Such a 
 follow-up system would go far in bringing about better morale 
 and greater efficiency in government work. This system is in 
 successful use in private business, where large sums are profitably 
 spent in personnel activities. It is recommended that the Civil 
 Service Commission be given appropriations sufficient to expand 
 its service to include such activities which are authorized by 
 existing laws. 
 
 Even with assurances of a working organization of a suitable 
 character, the responsibilities for its efficient administration 
 must remain upon the heads of the several departments. Such 
 responsibilities are continuous, and cannot be replaced by 
 occasional investigations. Because continuous attention has 
 been lacking in some cases, the Commission, in the absence of 
 adequate studies of its own, recommends that a careful investi- 
 gation of the personnel resources and needs of each department 
 be made by its administrative head, with a view to possible 
 rearrangements and economies. It will be found that in a 
 number of the departments the requirements for clerical service 
 vary to a considerable extent at different periods. It is the 
 general practice to employ a permanent clerical force to handle, 
 not only the regular work, but a large part, at least, of the 
 seasonal work. This necessarily involves lack of full employ- 
 ment at times of minimum activity. The rush periods in the 
 different departments are not all at the same time, and it has 
 
1922.] HOUSE — No. 800. 65 
 
 occurred to the Commission that a clearing house for cleiical 
 assistants might be established from which the various depart- 
 ments would take care of their temporary n^eds. A careful 
 analysis of the fixed and temporary service of the several de- 
 partments would show the extent to which employees could be 
 transferred from one department to another without any surplus 
 in the clearing house, and it would seem desirable to reduce the 
 permanent forces by at least the amount which could be taken 
 care of by such transfers. The administrative reorganizations 
 recently made in at least one other State (Illinois) have pro- 
 vided for a transferable clerical force of this character. 
 
 The results of the studies here proposed should be reported in 
 detail to the Governor, who might properly call upon the De- 
 partment of Administration and Finance to analyze the results, 
 make such further recommendations and take such further 
 action as the conditions might warrant. 
 
 The Commission finds that regular employees at the State 
 House have a one-month vacation each year, and are also 
 granted, if sickness requires, an additional absence of another 
 month with pay. The latter privilege is subject to material 
 abuse, particularly during inactive periods. Such extended ab- 
 sences with pay are more liberal than could be obtained else- 
 where. They require a larger pay roll either directly or through 
 the laxity which they encourage, and they further lead to 
 similar tendencies in the various political subdivisions of the 
 State. The Commission is of the opinion that vacations and 
 sick leaves should be adjusted to agree with standard business 
 practice. It holds the same opinion regarding daily hours of 
 service, which are now slightly less than general office standards. 
 
 The Commission is in accord with the general method of 
 salary standardization now in effect and administered by the 
 Supervisor's office. It has, however, listened sympathetically 
 to certain protests which have been made against too rigid and 
 comprehensive applications of this system. These protests 
 apply particularly to professional positions, the claims being 
 made that no talary-standardizing agency can properly judge of 
 the actual or relative qualification existing or required in the 
 higher grades of professional service, and that the officers who 
 are intimately acquainted with the incumbents and their work 
 
66 STATE ADMINISTRATION. [Jan. 
 
 are best qualified to grade and fix their salaries. The Commis- 
 sion has not been able to formulate a plan to this end which 
 would have logical, consistent, and necessary limitations to its 
 applicability. 
 
 The Commission has not made a careful study of the question 
 of the extent to which salaries may properly be fixed by law. 
 It calls attention, however, to the fact that there is now less 
 stability in salaries, as well as wages, than in earlier years, and 
 that unnecessary statutory limitations may prevent the employ- 
 ment of a specially qualified person at a particular time when 
 he is needed and available. 
 
 Changes in Civil Service Regulations! 
 
 As to the general level of salaries for positions in adminis- 
 trative departments, the Commission finds that in the more re- 
 sponsible positions, at least, the prevailing compensation is less 
 than that obtainable in private employment for similar func- 
 tions. Because of this, and, further, because these positions are 
 of uncertain tenure, they do not as a rule attract men of the 
 caliber needed to fill them to the best advantage to the State. 
 This Commission is of the opinion that it would be good 
 economy for the State to make the compensation of these 
 positions more nearly commensurate with the responsibilities in- 
 volved, to the end that competent men may be secured for and 
 retained in the public service. 
 
 In the classified service it is perhaps proper that a somewhat 
 lower scale of compensation should prevail than in private em- 
 ployment because of the exceptional assurances of continued 
 employment and the retirement pension plan. But here again 
 the Commission is of the opinion that the compensation should 
 be adequate to secure and hold employees of equal competence 
 to those occupying similar positions in high-grade private em- 
 ployment, and then to require from such employees the same 
 full measure of service. 
 
 There remains under this section a further consideration of 
 some provisions of the civil service. While Stattf officials agree 
 that the civil service appointment system is unquestionably far 
 better than the earlier employment methods, most of them have 
 some complaint against its operations. The more important of 
 
1922.] HOUSE — No. 800. 67 
 
 these complaints, together with criticisms resulting from the 
 Commission's own studies, may be summarized as follows: — 
 
 1. Civil service lists do not in some instances furnish satis- 
 factory persons, particularly for positions requiring special 
 training and experience, or where particularly confidential rela- 
 tions are to exist. It is apparently for this reason that so many 
 exemptions have been provided by law. 
 
 2. In the case of provisional appointment where no civil 
 service list is available, the provisional appointee is required to 
 take a competitive examination after six months of service, and, 
 if not at the head of the list, cannot retain his position, although 
 from experience therein or otherwise he may be most satis- 
 factory. Such conditions make it difficult to induce satisfactory 
 persons to accept provisional appointments, and the time re- 
 quired to train such appointees may be wasted. 
 
 3. The provision permitting a discharged employee to have a 
 hearing before the ofHcial who makes the discharge, with a 
 further appeal to the courts if necessary, does not tend toward 
 the enforcement of discipline with unruly employees or those 
 who are not faithful and diligent. Heads of departments 
 naturally dislike the publicity and annoyance attendant upon a 
 trial in court, and the employees are fully aware of this fact. 
 
 4. The preference given to veterans, by which, after passing 
 an examination, they are placed at the head of the eligible list, 
 operates to some extent to prevent desirable applicants from 
 seeking employment under civil service. 
 
 5. The exemptions from the provisions of the civil service 
 law provided by statute are illogical and inconsistent, and have 
 resulted in some instances in the placing of incompetent and 
 untrained persons in important positions. 
 
 Because of the obvious merit of most of these criticisms and 
 the importance of the subject, the Commission has undertaken 
 to formulate, and here recommends, a plan which would result 
 in partial remedy. This plan is intended to apply only to ad- 
 ministrative departments of the State and certain specified 
 activities classed as "executive," and does not affect other 
 executive or legislative or judicial employees or employees of 
 counties, cities, and towns. In substance the plan is as fol- 
 lows : — 
 
68 STATE ADMINISTRATION. [Jan. 
 
 1. Retain existing exemptions from the provisions of the 
 civil service laws applicable to the following positions : — 
 
 (a) Commissioners or otherwise entitled heads of departments. 
 (6) Associate and deputy commissioners or otherwise entitled officers 
 with like duties. 
 
 (c) Directors or otherwise entitled heads of administrative divisions. 
 
 (d) Members of quasi-judicial boards. 
 
 (e) Members of ad-\dsory boards. 
 
 (/) Members of boards of appeal and parole. 
 
 (g) State constabulary (now under two-year enlistment and special 
 regulations). 
 
 2. Except for the exemptions above designated, abolish all 
 those affecting the administrative departments and affecting the 
 executive departments in charge of — 
 
 (a) Supervisor of Administration. 
 (h) Superintendent of Buildings. 
 
 (c) Trustees of the State Library. 
 
 (d) Commissioner of State Aid and Pensions. 
 
 3. Waive the requirements of a competitive examination 
 (but retain other general civil service regulations) in specific 
 cases of persons to be employed for certain special purposes or 
 under certain special conditions, upon certification to the Civil 
 Service Commission by the Governor, with the advice and con- 
 sent of the Council, that such waiver is in the public interest. 
 
 The character of duties and the special conditions under 
 which such certification might be issued* by the Governor are 
 not subject to exact definition, and should not be so closely 
 defined as to create, in effect, a class of positions free from com- 
 petitive examination. On the contrary, each case should be 
 considered on its own merits, but in the light of some general 
 description of duties and conditions which might justify an 
 application to the Governor for a certification of waiver such 
 as is contained in the following schedule : — 
 
 (a) Secretaries, assistants, or others employed in confidential capacities 
 (one exemption now allowed for each department). 
 
 (b) Highly specialized or technical positions such as expert or designing 
 engineers, expert chemists, superintendents of institutions, or other 
 
1922.] HOUSE — No. 800. 69 
 
 supemsory positions requiring special technical or administrative quali- 
 fications; physicians and medical advisers; professors, instructors and 
 teachers in agricultural, normal, textile, military, and other educational 
 activities. 
 
 (c) ^Miscellaneous special duties such as the following: actuarial, super- 
 vision of pubhc records, direction of State census, supervision of accounts, 
 boards of registration, registrar of motor vehicles, Boxing Commission, 
 fire warden, inspection of fish, and supervision of loans. 
 
 (d) Any position in the classified service for which, at the time of a 
 required appointment, no civil service list is available. 
 
 The procedure under which appointments of the character 
 herein contemplated would be made is as follows: — 
 
 Application for the appointment, containing the name of the 
 proposed appointee, with the recommended salary, the character 
 of the duties to be performed, and a statement that the ap- 
 pointment should be made without competitive examination 
 for reasons such as are set forth above (to be given in detail), 
 would be transmitted to the Governor from the head of the 
 department in which the appointee would be employed. The 
 Governor and Council would pass upon the question of the 
 special character of the duties involved and the proposed salary, 
 and certify to the Civil Service Commission that a special ap- 
 pointment without competitive examination was in the public 
 interest. 
 
 The commission would thereupon consider w^hether the pro- 
 posed appointee was qualified by education, training, character, 
 and experience to perform the duties of the position. If the 
 commission should so certify within thirty days after the name 
 of the proposed appointee was received, the appointment to the 
 position would be made, subject to all provisions of law relating 
 to acceptance of office, oath of office, and filing of bonds, and 
 having all the rights and privileges of persons holding office in 
 the classified civil service of the Commonwealth. 
 
 4. Existing exemptions not above retained or modified, w^hich 
 are therefore abolished, include the following: — 
 
 Employees in Treasury Department. 
 Employees in Bank Commissioner's Department. 
 Emploj-ees of Superintendent of Buildings. 
 Laborers. 
 
70 STATE ADMINISTRATION. [Jan. 
 
 Institutional employees: 
 Attendants and nurses. 
 Janitors and matrons. 
 
 Culinary, laundry, and miscellaneous house workers. 
 Engineers, firemen, plumbers, steam fitters, electricians, and other 
 
 mechanics. 
 Laboratorj^ assistants. 
 Farmers and gardeners. 
 Watchmen. 
 
 Coachmen and chauffeurs. 
 Miscellaneous unclassified labor. 
 
 5. The removal of civil service employees, other than police 
 forces in the employ of the State, whether appointed by regular 
 or non-competitive examination, should be under the following 
 conditions instead of those now provided by law : — 
 
 A discharged employee should first have the right of a hear- 
 ing before the head of the department in which he is located. 
 If the head of the department sustained the removal, the em- 
 ployee would have an appeal to a special board of review 
 (instead of the courts), this board of review consisting of three 
 members, as follows : — 
 
 (a) The chairman of the Civil Service Commission, or an associate 
 commissioner whom he might delegate to sit in any particular hearing. 
 
 (6) A citizen appointed by the Governor, with the advice and consent 
 of the Council. 
 
 (c) A person nominated by the association of State employees and 
 appointed by the Governor, with the advice and consent of the Council. 
 
 The member or members of this board already in the State 
 service should receive no additional compensation. The com- 
 pensation of the other members or member should be fixed by 
 the Governor and Council. 
 
 The decision of the majority of this board in any case re- 
 viewed should be final. 
 
 The board should be required to confirm the discharge of an 
 employee for any of the following causes, or other just causes 
 which it might find to exist: abolition of position or duties; 
 dishonesty; insubordination; lack of diligence or attention to 
 duty; incompetence; failure efficiently to perform administra- 
 tive duties or to co-operate in administrative policies or methods 
 of superior officers. 
 
1922.1 HOUSE — No. 800. 71 
 
 SECTION VII. 
 
 Centralized Purchasing. 
 
 Under this section the Commission is called upon to report 
 upon the State's purchasing methods and the changes therein 
 necessary to bring about the greatest economy, and also to con- 
 sider methods of disposing of the products of institutions and 
 of salvage material. 
 
 There is now no uniformity in purchasing practice among the 
 departments, nor any standardization of supplies purchased. 
 Several departments purchasing large quantities of commissary 
 or other supplies have well-organized and efficient purchasing 
 bureaus. Other similar departments permit the stewards or 
 other subordinate agents of their different institutions to buy 
 supplies as they see fit, usually locally and from day to day. 
 It is inevitable that haphazard purchasing involves much 
 higher costs than systematic purchasing. 
 
 The Commission has made a study of the differences in re- 
 sults under the two methods with respect to certain commodities, 
 and is able to present approximate estimates of annual saving 
 (based upon 1921 conditions) if the most efficient methods now 
 in use were universally applied. If the system used by the 
 Mental Diseases Department were used throughout, the saving 
 in commissary supplies in the four large departments conducting 
 institutions would be $90,000. If coal for all State activities 
 were purchased under best practice, the annual saving would 
 be $100,000. By purchasing under blanket or long-term con- 
 tracts when advantageous, further substantial savings could be 
 made. 
 
 It is not practicable to make similarly definite estimates of 
 saving from uniform, standardized purchase of the wide range 
 of other materials required in the State's activities. That it 
 would be a considerable amount is beyond question. In paper, 
 miscellaneous printed forms, and office supplies alone, the saving 
 would be in excess of the cost of all purchasing. 
 
 In all large private enterprises centralized purchasing is al- 
 most uniformly in effect. In the considerable number of State 
 administrative reorganizations which have become effective, or 
 been under consideration in recent years, centralized purchasing 
 
72 STATE ADMINISTRATION. [Jan. 
 
 is more uniformly in evidence than any other consolidation 
 feature. Central purchasing bureaus are operating successfully 
 in Illinois and Washington, and have been recommended in at 
 least thirteen other States. 
 
 In view of the advantages and precedents above set forth, 
 the Commission recommends that all materials and supplies 
 needed by the various departments and other activities of the 
 Commonwealth (except military supplies) be purchased by or 
 under the direction of a central purchasing bureau, having as 
 its head a person of ability and extended experience in such 
 matters. Because of the conspicuous success of certain existing 
 departmental purchasing organizations, it would be logical, and 
 the Commission so recommends, to transfer the members of 
 these organizations who are responsible for their successful 
 functioning to the proposed central bureau. This would insure 
 the application of methods found effective in one department 
 to all other similar activities as well. 
 
 It is essential that centralized purchasing should not interfere 
 with the prompt delivery of commissary or other necessary 
 supplies. The bureau should therefore be permitted to au- 
 thorize a department or institution to place local orders, at 
 least for special or unimportant materials on which centralized 
 purchasing w^ould show no advantage. Furthermore, the bureau 
 should have authority to make blanket contracts for standard 
 supplies, under which, during a specified period, deliveries would 
 be made at designated points under requisitions issued there- 
 from direct to the contractor, subject to the terms, specifica- 
 tions, and prices of the contract. This would combine the 
 advantages of centralized quantity purchases with local arrange- 
 ments for delivery. The bureau should be provided with such 
 supply account appropriations (in addition to the departmental 
 supply accounts) as might be needed in connection with blanket 
 contracts or advance orders placed to take advantage of favor- 
 able market conditions. 
 
 The duties of the purchasing bureau should not cease with 
 the execution of single or combined orders from the depart- 
 ments. It should see that the real needs of these departments 
 are met with the smallest practicable number of different things. 
 To this end an advisory standardization board should be organ- 
 
1922.] HOUSE — No. 800. 73 
 
 ized, with the purchasing agent as its head, to consider the 
 needs of the various State activities, how far they can reason- 
 ably be harmonized and covered by standard specifications, and 
 what, if any, materials are so lacking in importance or uni- 
 formity as to warrant blanket authorization for their local pur- 
 chase. The other members of this advisory board should be 
 representatives designated by the heads of the several depart- 
 ments most affected by centralized purchasing. Their hearty 
 co-operation with the purchasing bureau would result in im- 
 proved quality of materials, regularity of supply, and reduction 
 in cost. 
 
 It does not appear necessary to create a new administrative 
 department to handle this new activity alone. On the other 
 hand, its necessary intimate contact with all existing adminis- 
 trative departments makes it undesirable to attach it to any of 
 them having extensive supply requirements. It is therefore 
 proposed to include it in the new^ Department of Administra- 
 tion and Finance, the organization details of which are given in 
 Section I. This department will have functions in connection 
 with printing and budget procedure which would be aided by 
 the purchasing bureau. All important contracts negotiated by 
 the purchasing agent should be approved by a purchasing board, 
 made up of the purchasing agent and the commissioner and 
 other associate commissioners of the Department of Adminis- 
 tration and Finance. 
 
 The products of State institutions are used largely to meet 
 State needs of such materials. To that extent, at least, the 
 central purchasing bureau should see that the quality is suitable 
 for such needs and the prices reasonable. The bureau should 
 also recommend new products or services of the institutions 
 where it would appear of advantage to the departments as a 
 whole. 
 
 This bureau should also be authorized to call upon all State 
 departments for inventories of excess, unsuitable, waste, or 
 
 obsolete supplies or materials in their custody, and to require 
 the transfer of such supplies or materials to other departments 
 where they can be advantageously used, or to offer them for sale 
 at opportune times. 
 
74 STATE ADMINISTRATION. [Jan. 
 
 SECTION VIII. 
 
 This section deals with — 
 
 The advisability of taking further steps toward placing any of the 
 activities of the State on a self -supporting basis, through the charging of 
 fees or otherwise. 
 
 The Commission looks upon the activities of the State as of 
 two general classes: (1) those which are of general effect or 
 benefit, such as protection of person and property, education, 
 maintenance of public works, etc.; (2) those which directly 
 affect or benefit certain individuals or organizations, this class 
 including hospitals, charities, registrations, supervisions, etc. 
 
 Activities in the first class are almost universally supported 
 by general taxation. Those in the second class have no uniform 
 method of treatment. In Massachusetts the principle of self- 
 support for special activities has been endorsed in part, but its 
 application is by no means consistent or complete. A study of 
 the policies of other States shows that in general they have 
 established self-support or support by political subdivisions to 
 a greater extent than has this State. 
 
 Comparative statistics for the year 1918, taken from the 
 latest United States census report previously referred to, show 
 that Massachusetts spent $2.89 per capita for charities, hos- 
 pitals, and corrections, which is more than any other State in 
 the United States, and more than twice the average of all 
 State's, which is $1.28. The greatest difference lies in the care 
 of the insane, for which Massachusetts spent more money than 
 any other State except New York, although it ranked sixth in 
 population. 
 
 The Commission is of the opinion that the State should collect 
 more revenues from its special activities, and that, so far as 
 possible, they should be made self-supporting. It is obviously 
 not possible that this result can be wholly accomplished in the 
 departments of Mental Diseases, Public Health, or Welfare; 
 but other departments do not have similar limitations. Fore- 
 going sections of this report have called attention to certain 
 additional or increased fees or charges which should be con- 
 
1922.] HOUSE — No. 800. 75 
 
 sidered. The important cases, with the Commission's recom- 
 mendations, are here assembled, classified as follows: — 
 
 1. Registration fees and licenses. 
 
 2. Fees for examinations and supervision. 
 
 3. Charges for support of inmates of institutions. 
 
 4. Miscellaneous charges. 
 
 1. Registkation Fees. 
 
 The fees in effect for registration of persons in certain occu- 
 pations and professions are, as a whole, nearly sufficient to 
 cover the direct expenses of examination, but there are some 
 inconsistencies in the schedules. The fees for examination of 
 embalmers and pharmacists are small as compared with those 
 for other occupations of similar qualifications or importance. 
 Dental applicants are re-examined free, whereas others pay an 
 additional charge lower than the initial fee. The latter practice 
 should be uniform. Fees for registration of persons previously 
 examined in other States are to some extent inconsistent, that 
 for optometrists being excessive. The fees for examination of 
 electricians and plumbers are not in accord, the latter being too 
 small. The same is true of the annual renewal fees or licenses 
 in these occupations. 
 
 There is no uniformity among the occupations and professions 
 with respect to such annual license charges. None is required 
 from doctors, dentists, pharmacists, and veterinaries; but' 
 nurses, embalmers, chiropodists, optometrists, electricians, and 
 plumbers are required to make annual payments not wholly 
 consistent with each other, at least if the registration fees are 
 considered. It has been suggested that annual or other periodic 
 registration fees be established for all such professions, to serve 
 as a check upon the continued practice of unsuitable persons. 
 
 The fees now charged for examination of engineers and fire- 
 men are nominal, and do not cover the cost. They should be 
 at least double the present amounts, and might properly be 
 classified, so that the charges for certificates for the higher grades 
 would be still greater. 
 
 No fees are charged for inspection of buildings, for which the 
 greater part of an appropriation of approximately $75,000 is 
 
76 STATE ADMINISTRATION. [Jan. 
 
 annually expended. A schedule of fees has been proposed 
 covering buildings, public halls, theaters, hotels, and miscel- 
 laneous structures, which would cover the cost of the service, 
 and such a schedule should be put into effect. 
 
 No fees are charged for the licensing or inspection of buildings 
 or premises used for the storage of explosives and inflammables. 
 It is recommended that fees be established for this service to 
 cover fully its cost. 
 
 It is recommended that the fees for notary, justice of peace, 
 and special commissioners now collected by the Secretary of 
 State be increased to not less than $10, for greater consistency 
 with the worth of these commissions. 
 
 Fees for licensing drug stores, dispensaries, private hospitals, 
 and cold-storage warehouses are small; but the revenues ob- 
 tainable therefrom are unimportant except in the case of cold- 
 storage warehouses, which should pay substantially larger 
 amounts proportional to the volume of their business and the 
 costs of inspections. It has been suggested that there be put 
 into effect a graduated schedule of charges, with a minimum of 
 $15 per year for 500,000 pounds or less of material stored or 
 its equivalent, and, after suitable intermediate steps, a maxi- 
 mum of $500 per year for 100,000,000 pounds or more of ma- 
 terial stored or its equivalent. Without careful analysis, this 
 appears to be a reasonable schedule. 
 
 The Department of Public Safety now inspects steam boiler 
 installations and pressure tanks, charging therefor fees which 
 do not cover the cost of the service. It is recommended that 
 the fees be increased to approximately double their present 
 amounts, in order fully to cover the inspection costs. Work of 
 the same character is also done by private boiler inspection and 
 insurance agencies, and the certificates of these agencies are 
 accepted by the State as evidence of the safe condition of the 
 installations. A large proportion of the total boilers within the 
 State are so inspected. The increase of State inspection fees 
 would automatically result in an increase in privately inspected 
 and insured boiler installations, and by a progressive adjustment 
 of examination fees the necessity of State inspection might in 
 time wholly disappear, to the advantage of all parties con- 
 cerned. 
 
1922.] HOUSE — No. 800. 77 
 
 The Commission in most cases has not undertaken to make 
 specific recommendations in connection with the above miscel- 
 laneous matters, for the reasons that this would involve an ex- 
 tended study of the costs and character of the activities. It is 
 not wholly convinced that the occupations and subjects covered 
 or proposed to be covered by the above-mentioned fees and 
 licenses include all the matters that should be covered, nor 
 that all the matters which have been covered are properly sub- 
 jects for supervision. The subject is too broad to be fully 
 covered in an investigation such as the Commission has under- 
 taken, but it recommends that further careful consideration be 
 required at the hands of the administrative oflficials concerned. 
 
 2. Fees for Examinations and Supervision. 
 Activities of this character are primarily included within the 
 Departments of Corporations and Taxation and of Banking and 
 Insurance. They include examinations of banks, trust com- 
 panies, and other banking institutions; insurance companies, 
 brokers, and agents; and other corporate activities. The fees 
 now charged are in most cases admittedly inadequate, and 
 should be increased to cover the cost of the service rendered. 
 At least some of the institutions affected are ready to assume 
 the full cost of this service, and have recommended that it be 
 made more complete and effective than has heretofore been 
 practicable. The determination of suitable fees for this service 
 is also a matter for the attention of the heads of the depart- 
 ments affected, after due consideration of the needs for im- 
 proved and more extended service. The Commission recom- 
 mends that such attention be required. 
 
 3. Charges for Support of Inmates of Institutions. 
 
 The Commission has pointed out in Section IV that the 
 collections from patients in mental disease and health institu- 
 tions are very small as compared with the cost of conducting 
 the institutions. How to increase the collections has been one 
 of the problems of the Commission. The Commission is unani- 
 mous in its belief in the wisdom of the policy of State control of 
 mental cases, and would not favor any plan \yhich would inter- 
 
78 STATE ADMINISTRATION. [Jan. 
 
 fere with this policy. The Commission is likewise unanimous 
 in its behef that sufficiently active effort has not been made to 
 collect through the machinery now provided by law. 
 
 A majority of the Commission is of the opinion that the 
 present machinery is inadequate, and that, if the cities and 
 towns could in some way be called upon to bear a proportion of 
 the unrecovered cost of caring for patients, the amount of collec- 
 tions from them and their relatives would be increased more 
 than in any other way. 
 
 To the end that all possible revenues from these sources may 
 be collected, the majority recommends that, with respect to the 
 Department of Mental Diseases, one third of the unrecovered 
 cost to the State of supporting patients be assessed back upon 
 the cities and towns in which those patients have a settlement. 
 
 This will not increase local taxes, as there will be a corre- 
 sponding reduction in the State tax. It is solely to secure the 
 benefit of having local authorities aid in the collection. 
 
 A minority of the Commission is opposed to this recommen- 
 dation, primarily for the reason that they fear that any return 
 to the system of part payment by cities and towns may result 
 in less efficient care of the patients, and may be detrimental to 
 measures looking to the prevention of further increase in the 
 number of mentally defective. 
 
 Incidentally they feel that the extra amount which can thus 
 be collected is problematical, especially when it is offset against 
 the cost that would be entailed in determining the settlements 
 of the patients. - 
 
 The minority is in hearty accord with the majority in de- 
 siring to see increased collections, but they feel that no radical 
 deviation from the present policy, which has proved successful 
 and has been followed by thirty-four other States, should be 
 made except with the certainty that the benefits will more than 
 offset the disadvantages. 
 
 It is further unanimously recommended that the total cost 
 of support in these institutions at the present time, including 
 general administrative costs, be fixed at $9 per patient per 
 week. This would permit relatives of patients who could so 
 afford to pay the full cost of service, and relieve them of any 
 feeling of financial obligation to the State. 
 
1922.] HOUSE — No. 800. 79 
 
 With respect to patients in public health sanatoria, the Com- 
 mission unanimously recommends that a new schedule of fees 
 be established to cover the average future cost of conducting 
 the sanatoria, estimated to be $12 per patient per week, and 
 that, if full collections cannot be made from the patients or 
 their relatives, one third of the unpaid balance in each case be 
 assessed back upon the cities and towns in which the patients 
 have settlement. This payment would be in lieu of the $4 per 
 week now paid by the cities and towns. 
 
 4. Miscellaneous Charges. 
 
 Under' this general heading is included a miscellaneous collec- 
 tion of services of specific rather than general interest which are 
 not paid for or for which the charges are insufficient to cover 
 the cost of the service rendered. The Commission's recom- 
 mendations with reference thereto are necessarily not specific. 
 
 The Department of Public Utilities supervises the operations 
 of gas and electric utilities, collecting from them the cost of 
 such supervision, but makes no similar charges against rail- 
 roads, electric railways, and other supervised utilities. The 
 Commission sees no reason why there should be such discrimi- 
 nation in the practice of the department, and believes that 
 either all or none of the utilities should contribute to the main- 
 tenance of the department. It has been the general policy of 
 Massachusetts to assess the cost of supervision upon the activi- 
 ties concerned, and the Commission is not convinced that there 
 is any adequate reason for departure from this practice in the 
 case of public utilities. It therefore recommends that all 
 utilities supervised by this department contribute toward its 
 support under provisions similar to those now in effect with re- 
 spect to gas and electric utilities. 
 
 The Department of Education conducts extensive work in 
 the field of advanced education. The Commission has not 
 given careful consideration to the subject of fees or tuition for 
 such service, and. makes no recommendations with respect 
 thereto other than to urge that, where commissary service is 
 furnished, its actual cost should be determined and collected. 
 It appears that the Agricultural College makes numerous 
 analyses of soils, fertilizers, etc., and examinations of diseased 
 
80 STATE ADMINISTRATION. [Jan. 
 
 farm animals. To the extent that such services are of benefit 
 to specific individuals it would seem logical to make a reason-^ 
 able charge therefor, and the Commission so recommends. 
 
 The fees now charged for university extension courses and 
 for the publications used therein are nominal, and might be ma- 
 terially increased without impairing the effectiveness of this 
 work. The Commissioner of Education should be authorized to 
 make such increases as are necessary to cover the full cost of 
 the services and material involved, including a proper propor- 
 tion of the general administrative costs of the department. 
 
 Nominal charges are now made for the distribution of legis- 
 lative bulletins and documents. A vast number of State publi- 
 cations of various kinds is distributed without charge. It would 
 seem proper to make charges for State publications sufficient to 
 cover their cost, except to legislative members, other State 
 officials, libraries and other institutions and exchanges, and 
 other parties entitled thereto. The Commission does not feel 
 qualified to make more definite recommendations regarding such 
 charges, but recommends that specific schedules and provisions 
 for their application be prepared and put into effect. This 
 work should preferably be done by the Department of Adminis- 
 tration and Finance, with the advice and assistance of the Ad- 
 ministrative Cabinet. 
 
 The Civil Service Commission conducts without charge 
 examinations of applicants for State employment. It is sug- 
 gested that fees be charged for such examinations, to cover at 
 least a part of their cost. 
 
 The Department of Labor and Industries conducts employ- 
 ment offices through which positions may be secured without 
 charge. The Commission thinks that, if a nominal charge for 
 this service were made, its standing might be improved. 
 
 The Department of Public Works collects license fees for the 
 registration of motor vehicles, the proceeds being used for high- 
 way maintenance and construction. The Commission is con- 
 vinced that in the near future a very large increase in the 
 expenditures for such purposes will be necessary. The Depart- 
 ment of Public Works estimates that the amount thus to be 
 expended will average S15,000,000 per year for the next twenty 
 years. The larger part of this great sum, if the estimate is 
 
1922.] HOUSE — No. 800. 81 
 
 correct, should be provided through taxes upon those who use 
 the highways, and who thus make necessary this expenditure. 
 This tax should be as nearly as possible proportionate to the 
 use of the roads. 
 
 The Commission advises a revision of the motor vehicle 
 registration fees, in order that they shall be made more equitable 
 and proportionate to the wear and tear upon the roads. At 
 present a Ford runabout may pay the same fees as a seven- 
 passenger limousine. Special attention should be given to fees 
 for motor trucks, and in determining these fees some distinction 
 should be drawn between trucks which are used as delivery 
 wagons and those which are used as common carriers of freight 
 *or passengers. Weight, loaded and unloaded, speed, width and 
 kind of tires are also elements to be considered in determining 
 ratings and fees. Other States have laws governing these 
 matters, which show on the whole a much higher average of 
 fees than those in Massachusetts. 
 
 In addition to a revision of fees, the Commission has investi- 
 gated the subject of a tax upon gasoline and other fuels used in 
 propelling motor vehicles. Such a tax has been adopted in 
 fourteen States of the Union, and similar laws are contemplated 
 in many other States. In passing these gasoline tax laws, it 
 has been the theory that the amount of gasoline used bears a 
 very direct proportion to the use and wear and tear upon the 
 roads. It is obvious that the large car, in constant use, tears 
 up the roads more than does the small, light car, and the 
 amount of fuel used in each varies in proportion to use, size, 
 and weight. Thus the tax proposed bears proportionately on 
 each. The man with the small car, using little gasoline, and 
 perhaps using this car only a small portion of the year, would 
 pay a much less tax than the owner of the big car, using it 
 continuously. 
 
 Such a tax also puts a burden upon the car which is operated 
 but not registered in this State, and also relieves the Massa- 
 chusetts owner when out of the State. 
 
 The Commission recommends a tax of two cents per gallon 
 upon gasoline and other motor vehicle fuel brought into the 
 State or manufactured therein, to be collected by the Tax 
 Commissioner from the wholesale distributors, who would pass 
 
82 STATE ADMINISTRATION. [Jan. 
 
 it along to the motor vehicle owners. The distributors should 
 be compensated for their services by retaining 1 per cent of the 
 taxes collected. 
 
 It is further recommended that 75 per cent of the amount of 
 this tax remaining after deducting the cost of its collection and 
 administration be expended by the Department of Public Works 
 upon the maintenance and construction of State highways, the 
 remaining 2.5 per cent to be distributed among the cities and 
 towns of the Commonwealth in proportion to the State tax, to 
 be expended upon the maintenance and construction of high- 
 ways within their limits under specifications furnished or ap- 
 proved by the Department of Public Works. The local high- 
 ways thus improved or built would doubtless in many cases be * 
 parts of through routes of travel, but no such requirement is 
 provided. More specific details of this proposed tax on motor 
 vehicle fuel are contained in the draft of a law which is sub- 
 mitted. 
 
 Billboards along public highways are now erected under the 
 supervision of the Public Works Department, which collects fees 
 or excise taxes amounting to $2 for each billboard erected, the 
 collections covering approximately the cost of the required 
 attention. The Commission recommends that such fees charged 
 for billboards be substantially increased, and that they be pro- 
 gressively increased with the size of the board, the rate per 
 square foot being greater for large boards than for small ones. 
 The purpose of this recommendation is not primarily to secure 
 additional revenue, but to discourage the erection of objection- 
 able structures along the public highways. 
 
 The Commission is also of the opinion that greater or addi- 
 tional revenue might be collected from properly regulated con- 
 cessions or other private activities located upon property owned 
 or administered by the State, and recommends that the matter 
 be given attention by those ofiicials charged with the care of 
 such property. 
 
1922.] HOUSE — No. 800. 83 
 
 CONCLUSION. 
 
 The Commission realizes that there is more work to be done 
 along the lines above suggested, and it finds satisfaction in the 
 belief that it has laid a foundation, through an Administrative 
 Cabinet and otherwise, for the future automatic handling of 
 these matters. 
 
 The Commission is particularly gratified in being able to 
 present a report that in all essential respects is unanimous. Its 
 recommendations are unanimous, with the one exception of that 
 covering the charging back to cities and towns of a part of the 
 unrecovered cost of caring for settled mentally diseased cases. 
 It is unanimous upon all other subjects herein discussed, with 
 two exceptions, namely, whether the metropolitan district police 
 should be placed under the Department of Public Safety, and 
 whether the veteran's preference law as it now exists is detri- 
 mental to securing best qualified State employees. 
 
 The Commission desires to express its appreciation of the 
 assistance and co-operation freely extended to it during its 
 inquiries and deliberations by all State departments. 
 
 EDWIN S. WEBSTER. 
 BERNARD EARLY. 
 GARDNER W. PEARSON. 
 LEONARD F. HARDY. 
 CARL C. EMERY. 
 HARRY C. WOODILL. . 
 • JOSEPH L. LARSON. 
 EBEN S. DRAPER. 
 JOHN MITCHELL. 
 CHARLES F. WEED. 
 MARION CHURCHILL. 
 GEORGE URIEL CROCKER, 
 ADOLPH EHRLICH. 
 
 Jan. 4, 1922. 
 
84 STATE ADMINISTRATION. [Jan. 
 
 The undersigned members of the Commission desire as indi- 
 viduals to express their deep appreciation of the great assistance 
 rendered by the chairman, not only personally, but through his 
 office organization, and to apprise the Legislature of this assist- 
 ance. 
 
 Through the courtesy of Mr. Webster, and without expense 
 to the State, a corps of engineers and specialists from his office 
 was placed at the service of the Commission and its subcom- 
 mittees early in August, and has been in constant attendance 
 ever since. 
 
 These men, able and impartial, have rendered the Commission 
 invaluable assistance. 
 
 BERNARD EARLY. 
 
 GARDNER W. PEARSON. 
 
 LEONARD F. HARDY. 
 
 CARL C. EMERY. 
 
 HARRY C. WOODILL. 
 
 JOSEPH L. LARSON. 
 
 EBEN S. DRAPER. 
 
 JOHN MITCHELL. 
 
 CHARLES F. WEED. 
 
 MARION CHURCHILL. 
 
 GEORGE URIEL CROCKER. 
 
 ADOLPH EHRLICH. 
 
1922.] HOUSE — No. 800. 85 
 
 Appendix. 
 
 Draft of Bills. 
 The resolve under which this Commission has functioned 
 authorized the presentation of drafts of bills; and while the 
 preparation of such drafts is well under way, the Commission 
 has been unable to complete the same, and therefore expresses 
 the hope that the General Court may make such provision as 
 may be necessary to have these drafts completed and duly 
 presented. 
 
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