efficiency, together with several reviews and studies, has Production standards for individual employees have been We have initiated a program of management audits of our staff offices to determine whether they can be more efficiently organized and whether their procedures can be improved. We shall continue to look for ways and means of improving our efficiency. CONTENTS OF ANNUAL REPORT TO CONGRESS (Recommendation No. 5): In keeping with the criteria established by this committee, the Civil Service Commission should review the contents of its annual report to Congress for the purpose of including information indicative of the efficiency and economy of operations. RESULTS.-The Civil Service Commission has advised the subcommittee that: Consistent with this recommendation, since 1964, the annual report has included statements outlining important accomplishments relating to greater efficiency of operations. These statements reflect the Commission's activities in establishing effective management manpower utilization programs. [H. Rept. 207, 88th Cong., 1st sess.] SURVEY OF SELECTED ACTIVITIES (PART 5-EFFICIENCY AND ECONOMY IN THE POST OFFICE DEPARTMENT'S METHODS OF TRANSPORTING MONEY) Second Report by the Committee on Government Operations (Submitted to the Speaker April 10, 1963) On the evening of August 14, 1962, a light panel postal truck was hijacked on Route 3 on its way to Boston from Hyannis, Mass. In this lightly guarded panel truck was $1,551,277 in unmarked, unserialized, used United States and Canadian currency. A virtual primer was written by the gang of six to eight criminals who planned and executed this complex and daring attack on a U.S. mail truck. The Postmaster General was invited to appear before the committee for the purpose of reviewing Post Office methods of shipping large sums of currency. He testified in a most forceful manner that the lapse in security in Massachusetts was unique and was not an indictment of overall Post Office procedures used to maintain the security of currency shipments. The Department's outstanding rec ord speaks for itself. Over a 10-year period prior to the Plymouth hijacking, billions in currency were shipped with losses from all causes less than $200,000. RECOMMENDATIONS PROTECTION OF LARGE CURRENCY SHIPMENTS (Recommendation No. 1): The Post Office should use commercial armored vehicles, when, in the opinion of responsible postal officials, traditional security arrangements may prove inadequate for the protection of large currency shipments. RESULTS. The Post Office Department has advised the subcommittee that: The Department has secured the cooperation of all Federal Reserve Banks in diverting to commercial armored vehicles the transportation of currency shipments in high density areas. Where it is necessary within cities to use postal vehicles for transportation of high value shipments emergency precautions have been taken. Security arrangements are reviewed by regional and Inspection Service officials from time to time and special arrangements are made for shipments needing extra protection. TRANSPORTATION OF FEDERAL RESERVE SHIPMENTS OF CURRENCY (Recommendation No. 2): The Post Office should continue to transport Federal Reserve shipments when more efficient and economical alternatives are not available. RESULTS.-The Post Office Department has advised the subcommittee that: The Department has continued to transport Federal Reserve shipments when more efficient and economical alternatives are not available. The Federal Reserve has contracted for the use of commercial armored car service generally in and between large metropolitan areas, with the Postal Service handling the balance. REVIEW AGREEMENTS WITH STATE AND LOCAL POLICE AUTHORITIES (Recommendation No. 3): The Post Office should review agreements with State and local police authorities so as to avoid, to the greatest extent possible, any future misunderstandings as to convoy responsibility as occurred in Massachusetts prior to the Plymouth hijacking. 61-207-66 RESULTS.—The Post Office Department has advised the subcommittee that: These agreements and understandings have been reviewed. Changes are made as required due to requests of local authorities or revision in transportation. This protection is in addition to armed postal employees and is used only when assurance can be given that the police convoys will continue with the shipment until delivery has been made at the postal facility to which it is being transported. POSTAL EMPLOYEES CARRYING FIREARMS (Recommendation No. 4): Postal employees carrying firearms should be fully trained and qualified in their use. RESULTS.-The Post Office Department has advised the subcommittee that: A comprehensive firearms training program was initiated designed to give maximum assistance to postal employees in affording security to mails while in postal custody. Employees assigned to convoy valuable shipments of registered mail must be selected from a group previously designated by name for this important duty. Such employees are required to be proficient in the handling, care, and firing of the revolver, and must qualify in the use of firearms. SHIPMENT OF WORNOUT CURRENCY (Recommendation No. 5): Federal Reserve and Treasury Department officials should study and review possible means by which local banks could "devalue" wornout currency prior to shipment. RESULTS.-The Post Office Department has advised the subcommittee that: The shipments of currency moving from commercial banks to Federal Reserve Banks do not necessarily involve wornout or unfit bills. It has been estimated that currently only about half of the bills so shipped are determined by the Federal Reserve Bank to be unfit. Authority for the determination of the fitness of currency for further circulation rests with the Federal Reserve Banks and it is doubtful at least whether it could be delegated to 14,000 commercial banks. In any event, the security problem attending currency shipments from commercial banks would not be changed materially by the proposed cancellation of some portion of the currency since the shipment of surplus or excess currency would continue as at present. There has been a very considerable diversion of these shipments from the Postal Service to private carriers and this has, of course, somewhat reduced the protection problems for the Postal Service. [H. Rept. 457, 88th Cong., 1st sess.] SURVEY OF SELECTED ACTIVITIES (PARTS 6 AND 7— EFFICIENCY AND ECONOMY IN THE CIVIL AERONAUTICS BOARD AND THE FEDERAL AVIATION AGENCY) Ninth Report by the Committee on Government Operations (Submitted to the Speaker June 25, 1963) Review of selected CAB operations indicated significant improvements in economy and efficiency. An improved class-type subsidy plan has been instituted which CAB officials believe will benefit local service airlines and at the same time make possible substantial reductions in subsidy payments. Testimony indicated, however, that local service airline operations continued to be handicapped by the widespread use of obsolete DC-3type aircraft. Testimony further indicated that the CAB expects to achieve a 25percent increase in administrative efficiency by June 30, 1963. Substantial reductions in case backlog and the time required for the processing of route, rate, and other applications have already been made. It Review of selected FAA operations indicated serious deficiencies in contract procedures and accounting methods. Agency officials testified, however, that corrective action has been taken. The testimony further indicated deficiences in the FAA internal audit system. is believed that the Administrator will continue to experience difficulty in the economical and effective operation of his Agency until he establishes a strong, centralized internal management system with Agency-wide jurisdiction, as recommended by the Comptroller General and this committee. It was in the realm of air safety, however, that the testimony concerning FAA operations took the most serious turn. Uncontroverted evidence in the form of two series of actual photographs taken on commercial airliners during routine flight operations with passengers aboard showed pilots or copilots asleep, reading newspapers or magazines, or with stewardesses sitting in their laps during "familiarization flights." These photographs were augmented by testimony of former airline stewardesses who told of either flying commercial airliners or were witnesses to other stewardesses flying them. The testimony further indicated that the management of at least two of the Nation's large commercial airlines had been indifferent to the needs of optimum air safety on several specific occasions. As stressed throughout the hearings, the committee's interest lies in optimum safety in the future. The committee is not interested in prosecuting or persecuting those who may have been negligent or lax in the past. This report recommends maintenance of the highest standards in air safety. RECOMMENDATIONS FLIGHT INSPECTIONS OF COMMERCIAL AIRLINER OPERATIONS (Recommendation No. 1): FAA should begin to make unannounced flight inspections of commercial airliner operations for the purpose of determining the extent to which aircrew members are applying themselves to their duties and responsibilities. RESULTS.-The Federal Aviation Agency has advised the subcommittee that: The Agency has implemented a program of unannounced en route inspections on air carriers. These inspections are conducted whenever practicable by air carrier operations inspectors who are traveling as fare-paying passengers on official Agency business. This new program supplements the normal en route inspection program under which advance notice of an intended inspection is provided to the air carrier. STANDARDS FOR PILOT-TRAINED FLIGHT ENGINEERS (Recommendation No. 2): The FAA, collateral to further implementation of the Feinsinger Commission recommendations, should increase the minimum standards for pilot-trained flight engineers to require more extensive engineering, mechanical, and maintenance education and experience. RESULTS. The Federal Aviation Agency has advised the subcommittee that: The FAA has taken no action to implement this recommendation. In 1965, FAA issued a notice of proposed rule making to revise the requirements for a flight engineer certificate, and after considering the many comments received on the proposal, concluded that general aircraft maintenance should not be included as a knowledge requirement for an engineer certificate. In the modern transport fleet of aircraft, the flight engineer is no longer used as an in-flight maintenance man. In fact, Agency regulations prohibit the performance of maintenance by persons who do not possess a mechanics or repairman's certificate or who do not perform such work under the supervision of the holder of such certificates. COMMERCIAL AIRLINER FLIGHT DECK OR COCKPIT DESIGN AND OPERATIONS (Recommendation No. 3): The CAB should undertake a fundamental study and review of commercial airliner flight deck or cockpit design and operations, |