Mitesser Vis an alloca

I do not know. I am ask

ing for TMJL 10a i got this letter, and I will be very glad to put the lecce IV DE Teech.

Secretary Is Tendd the to have the letter, and we will look (The lettererred to is as follows:

it up:

Hon. KENNEE 2. MCKELLAR,

THE KIWANIS CLUB, Chattanooga, Tenn., June 5, 1934.

nini Settes Senate, Washington, D.C.

DEAR SEXAR MCKELLAR: Last year the funds allocated to the State of Tennessee vuch the Federal Public Works Administration could not be contracted for many localities for want of proper legislation enabling them to do so; the caracted portion being withdrawn and redistributed to other States within 5 or months after initial allocation.

authority, cities and counties of the State of Tennessee were in position to was allocated to Tennessee about 1 year ago, and on account of lack of legislative As you know, the sum of $44,000,000 from the original P.W.A. appropriation authority $11,000,000 of this money and approximately $33,000,000 were diverted to other sections of the country. Chattanooga and Hamilton County, as well as other cities and counties of the

State, have

on for some time sadly in need of major repairs and improvements

along the lines and purpose for which the P.W.A. and T.V.A. funds are created, but are unable to contract for same until proper legislation is passed.

The fact that the new allotment of P.W.A. funds embodied in the bill now before the Congress may also be withdrawn from Tennessee for distribution in other States before our legislature meets in regular assembly, prompted 22,000 citizens of this city and county to sign petitions to the Governor of this State to summon a special session of our legislature.

The Governor of Tennessee having declined to call a special assembly of our legislature, we, the Chattanooga Kiwanis Club, on behalf of the 22,000 citizens, appeal to you to have embodied in the bill now before Congress, a provision for the lapse of 9 months' time before P.W.A. moneys allotted to the several States can be reallotted in other States.

Such a provision will allow sufficient time for our legislature to pass necessary legislation at their next regular assembly and our people to hold the necessary referendum before the funds can be withdrawn for use elsewhere. We are awaiting with interest your reply. Very truly yours,

S. RUSSELL DOW, Secretary Chattanooga Kiwanis Club.

CONFIDENTIAL FUND, BUREAU OF INVESTIGATION

Secretary ICKES. There is another matter that I would like to bring to the attention of the committee. There was omitted from the general-deficiency bill language submitted by the Bureau of the Budget which would establish a confidential fund of $10,000 for the Division of Investigations. The draft of the proposed provision relates to the appropriation "Salaries and Expenses, Division of Investigations, Department of the Interior, 1935", and would read as follows:

Not to exceed $10,000, of the appropriation "Salaries and Expenses, Division of Investigations, Department of the Interior, 1935", shall be available to meet unforeseen emergencies of a confidential character, to be expended under the direction of the Secretary of the Interior, who shall make a certificate of the amount of such expenditure as he may think it advisable not to specify, and every such certificate shall be deemed a sufficient voucher for the sum therein expressed to have been expended.

Similar authority limited to $20,000 is carried in the deficiency bil for the Division of Investigations, Department of Justice. The same need prevails in the Department of the Interior. In the course of an investigation special agents are sometimes called upon to make expenditures beyond the ordinary run which under the present procedure would not be approved by the Comptroller General. They are for strictly official purposes and the expenditures would be examined administratively before reimbursement was made. For example, special agents are sometimes required to use a taxicab for an entire day or use their own cars within the limits of their headquarters; they must occasionally stop at expensive hotels, and in one instance they have had to rent an apartment for a short time. The Division of Investigations is engaged, among other things, in safeguarding the expenditure of the portion of the $3,300,000,000 that is being spent for public works, which includes collusive bidding, kick-back in wages, and other frauds against the Government.

We are merely asking to be put on a par as to principle but not amount of appropriation with the Department of Justice in this

matter.

Senator BYRNES. Have you now a corps of investigators?

Secretary ICKES. Yes, sir.

Senator BYRNES. For the Department, and also for the Public Works?

Secretary ICKES. We have a corps of investigators and this is for all a these activities, not only public works, but for the Interior Department which includes the Oil Administration. Without corns atvestigators in connection with oil, they would loot us in a very short time and necessarily there are some times when expendi tures she be made, where there ought to be some administrative discretion, and we are asking for $10,000 to be allowed to us, up to $10 000, for this purpose.

Senator BYRNES. This Bureau has been rendering effective and efficient service?

Senator ICKES. Splendid service under the direction of Louis R. Glavis.

Senator MCKELLAR. How much is it costing you now?

Secretary ICKES. We can supply those figures. There are three divisions, the Department of the Interior, the Public Works, and Oil. Senator ADAMS. The expenses for those are carried under the general allocation of funds for those divisions?

Secretary ICKES. They are charged to the Interior appropriation, against Public Works, and against the Oil Administration, and I appeared before this committee and asked that a special tax be put on oil, as you recall, and that it pass, so that the oil industry, when that money is received and appropriated, will be financing itself, but it has got to go through the regular routine of tax collections, be covered into the Treasury and appropriated.

Senator MCKELLAR. Will you give us the accounts of all three of them?

Secretary ICKES. We will be very glad to do that.

Investigation expenditures by months from date of inception through May 1934

72, 452. 51

This item contains Washington direct charges not made in previous months.

264, 552. 79

52,692.56 76,069. 74

337, 005.30

If I may, at the conclusion, I would like to read these proposed amendments to the committee.

Senator ADAMS. Mr. Secretary, my attention has been called to the fact that you also asked for a special fund of $5,000 for the reclamation fund which was not allowed by the House. Have you anything you wish to say about that?

Secretary ICKES. Reclamation?

Senator ADAMS. Yes; appraisal and sale of vacant public lands.

Secretary ICKES. We have not come prepared on that. We can the send that down.

L

Senator ADAMS. You presented that to the House.

PREFERENCIAL USE OF FUNDS

Secretary ICKES. Oh, yes, sir.

Deficiency estimate of appropriations on page 3. Covers Document No. 364. Appropriation of $5,000 payable from and reimbursable to the reclamation fund to cover the expenses incident to the appraisal and sale of such vacant public lands during the fiscal year 1934-35.

About 50,000 of the approximate 300,000 acres of land which were designated as temporarily or permanently unproductive under the Adjustment Act of May 25, 1926 (44 Stat. 636) are vacant public lands. The act of May 16, 1930 (46 Stat. 367), authorizes the Secretary of the Interior to sell unproductive public lands on Federal irrigation projects to resident farm owners and resident entrymen under terms and conditions to be fixed by him.

Senator BYRNES. Mr. Secretary, in the House you were asked a question as to what you proposed to do with the funds made available to you, and you stated that you gave preference to non-Federal projects. What is your policy with reference to the various States in endeavoring so far as possible now to equalize the assistance rendered?

Secretary ICKES. We give first preference to those States which do not seem to have an equitable share in the funds so far. They would have the first consideration.

Senator BYRNES. For instance, if the State of Maine should adopt a different attitude, its municipalities, and send in projects which were approved, you would give them first consideration?

Secretary ICKES. We would have to take into account the amount of Federal money furnished the State, and to be subject to that. Senator Byrnes. Did you take that into consideration?

Secretary ICKES. Yes; we had to, because it all comes out of the same Treasury in the end.

Senator MCKELLAR. That is the amount of money spent in the Navy; that would have to be taken under consideration?

Secretary ICKES. Yes. Of course, that is charged against the States.

Senator MCKELLAR. Of course, the States get very little out of the money expended for those purposes.

Secretary ICKES. For labor.

Senator HALE. I do not think that they have materially increased the forces at the Portsmouth yard than were already on hand. Secretary ICKES. Well, can we disregard that amount?

Senator HALE. No; I do not think that ought to be allocated to the State, though. I do not think the State gets the benefit of it. Senator BYRNES. Let me ask if this be true, Mr. Ickes, if it is a fact, and I think it is in the case of the State of Maine, that you are constructing a ship and the greatest amount of work, or the greatest part of the material, is purchased elsewhere

Secretary ICKES (interposing). Pennsylvania, for instance.
Senator BYRNES. Yes; and it has to be.

Secretary ICKES. We are trying to work that out.

Senator BYRNES. It is taken to the place where they assemble it, and where the labor costs come in or at the place where the material is fabricated, and there would not be any increase to any extent at all

sassed. I am wondering if it is fair to charge up an hord te which goes, 85 percent elsewhere and 15 percent on that

tears. We would take that into account and we are also to break down our own figures. Take the case of these We are trying to apportion that more justly as between Pennsylvania or New York, or those States where the

sabricated.

Senator ByRXES. Where the money actually goes.

Sviecary lKES. Yes.

CH OF BYRNES. I think that that is fair.

Senator HALE. If that were done, with our naval allotment, you weald and that it would take up most of the allotment.

Secretary leKES. And, I might add that you have not asked for any money These are Federal projects. We cannot press a favor upon an unwilling bride, you know.

Senator HALE. That is quite true.

Senator GLASS. I think though that in Virginia

DISBURSEMENTS TO DATE

Senator DICKINSON. I would like to refer to page 244 of the hearings of the House covering the actual disbursements to date.

As I understand it, there has been paid out on non-Federal projects only $105,127,310.

Secretary ICKES. Actually paid out.

Senator DICKINSON. Actually paid out.

Secretary ICKES. The actual allocations have been far in excess of

that.

Senator DICKINSON. I understand that, but you do not put any money to work until you get it out of the Treasury.

Secretary ICKES. That is very true.

Colonel WAITE. That is 60 days behind the estimates.

Senator DICKINSON. Is this figure correct, where you have paid out on Federal projects $972,300,000.

Colonel WAITE. That is about right.

Senator DICKINSON. In other words, the total expenditure from all of your operations, both Federal and non-Federal, have approximately reached a little over a billion dollars.

Secretary ICKES. Yes, but it will go much faster from now on, Sonator. It is slow to start, necessarily. We started from scratch. There was no program of public works when this administration took office. There was no program of public works begun or attempted until last July. We have been in operation less than a year. It takes time on any construction job to prepare your plans and specifications And let your contracts, and then other questions are involved in a great many instances, as there have to be new ordinances, or maybe How laws; or maybe the municipalities have to go to the legislature for enabling acts. There have to be referendums on bond issues. It is not as simple as it looks. It is not a case as between two private individuals, where, for instance, I am a banker and you come to me to borrow money to go out and start the building of a house. You do not have to ask anyone's consent except the banker, and if he will lend you the money, you could start building. You do not have