Summary

SPEAKER: ENCLOSED IS OUR REPORT ON THE REVIEW OF MANAGEMENT OF LEASED PRIVATE LINES TELEPHONE FACILITIES IN THE DEPARTMENT OF DEFENSE AND SELECTED CIVIL AGENCIES. THESE EXCESSES HAVE BEEN THE RESULT OF (1) THE ERRONEOUS APPLICATION OF CERTAIN RATES AND (2) INEFFICIENT ADMINISTRATIVE PRACTICES ON THE PART OF THE GOVERNMENT DEPARTMENTS AND AGENCIES. WE ARE NOT IN A POSITION TO MAKE A FIRM PREDICTION AS TO THE TOTAL AMOUNT OF SAVINGS THAT COULD BE ACCOMPLISHED BY THE CORRECTIVE ACTIONS WHICH WE ARE RECOMMENDING HEREIN. PART OF THE EXCESSIVE COSTS WHICH HAVE BEEN AND ARE BEING INCURRED CAN BE ATTRIBUTED TO THE FACT THAT THE AMERICAN TELEPHONE AND TELEGRAPH COMPANY (AT&T) HAS NOT FULLY APPLIED TARIFF FCC NO. 231.