DEPARTMENT OF COMMERCE AND RELATED
AGENCIES APPROPRIATIONS FOR 1956

61922

HEARINGS

BEFORE A

SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES

EIGHTY-FOURTH CONGRESS

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON: 1955

BOCUMENTS

COMMITTEE ON APPROPRIATIONS

CLARENCE CANNON, Missouri, Chairman

GEORGE Y. HARVEY, Staff Director KENNETH SPRANKLE, Assistant Staff Director

HON. SINCLAIR WEEKS, SECRETARY OF COMMERCE

WALTER WILLIAMS, UNDER SECRETARY

LOUIS S. ROTHSCHILD, UNDER SECRETARY FOR TRANSPORTATION SAMUEL W. ANDERSON, ASSISTANT SECRETARY FOR INTERNATIONAL AFFAIRS

LOTHAIR

TEETOR,

AFFAIRS

ASSISTANT

SECRETARY FOR DOMESTIC

GEORGE T. MOORE, ASSISTANT SECRETARY OF COMMERCE
OSCAR H. NIELSON, DEPARTMENTAL BUDGET OFFICER

Mr. PRESTON. The committee will come to order. This is the first meeting of this subcommittee and our first witness on the Commerce bill will be the Honorable Sinclair Weeks, Secretary of Commerce, whom we are delighted to have with us today. We realize, Mr. Secretary, that you are operating under a rather tight schedule.

Secretary WEEKS. Yes.

Mr. PRESTON. And that you wish to depart for New York this afternoon and to fly, sail, or whatever method you expect to use, to Europe.

Secretary WEEKS. I am leaving tomorrow, but I have a White House meeting at 4 o'clock.

Mr. PRESTON. We will endeavor to excuse you as early as possible, giving everyone who wishes the opportunity to ask any questions he may have in mind.

GENERAL STATEMENT

I suppose you have a written statement to file at this point in the

record?

Secretary WEEKS. Yes.

Mr. PRESTON. And you can brief it orally for us.
Secre.ary WEEKS. Yes.

(The statement is as follows:)

STATEMENT OF SECRETARY OF COMMERCE WEEKS

Mr. Chairman and gentlemen of the committee, I appreciate the opportunity to present to the Department of Commerce and Related Agencies Subcommittee, the justifications in support of the President's request for the Department of Commerce. From this side of the table, it would appear that this new subcommittee designation is a recognition of the importance of this agency and its programs. We shall continually make every effort to warrant this belief.

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There are certain characteristics of this request which I would like to point out in order to acquaint you with the problems which were faced in arriving at its determination.

Approximately 66 percent, or $842.5 million, can be classified as permitting little or no administrative discretion through the budget process. The level of these expenditures depends upon the provisions of the legislation which authorized the programs and on other factors independent of Executive control. For examples, the highway grants to States are made under formulas fixed in legislation; operating-differential subsidies of the Maritime Administration are determined in large part by long-term contracts and the general economic condition of the shipping industry.

This $842.5 million is summarized as follows:

Liquidation of prior contract authority for the Bureau of Public Roads, $707 million;

Operating differential subsidies and liquidation of prior contract authority for repair of reserve fleet vessels in the Maritime Administration, $121 million;

Liquidation of prior contract authorization for the establishment of air navigation facilities and Federal-aid airport programs of the Civil Aeronautics Administration, $14.5 million.

This $842.5 million for 1956 does not create additional authorization; it represents the best estimate of cash requirements for projects previously authorized and forecast for completion and payment in 1956.

The amount of $842.5 million estimated requirements for fiscal year 1956 for these items represents an increase of $85.4 million over the amount anticipated for 1955 for comparable items. This is principally attributable to the increased requirements of the Bureau of Public Roads.

The remaining 34 percent, or $438.2 million, of the 1956 requirements for controllable items represents a net increase of $100.9 million over the comparable amount of $337.3 million for these items for 1955. The major increases are attributable primarily to the accelerated completion of the Inter-American Highway; the maritime ship construction program at a level of approximately $20 million above the current year's program; an expanded establishment of air navigation facilities program in the Civil Aeronautics Administration and provision for modernization of Weather Bureau observational facilities; an approximately $3 million increase is attributable to needs of the Office of the Secretary, the Coast and Geodetic Survey, Business and Defense Services Administration, the Office of Business Economics, the Patent office and the National Bureau of Standards. Decreases in the 1956 estimates from the total anticipated for 1955 are primarily related to a decrease in Census Bureau activity in the agriculture and economic censuses, as well as a small decrease in the Bureau of Foreign Commerce.

By way of recapitulation, I wish to point out that of the $1,280.7 million, approximately 66 percent, or $842.5 million, is for relatively uncontrollable items. The remaining 34 percent, or $438.2, relate to controllable programs.

In advance of a more detailed presentation of these requests to be made by my assistants and Bureau officials directly concerned, I will summarize briefly the highlights of these requests:

OFFICE OF THE SECRETARY

The request of the Office of the Secretary reflects a net increase, after adjustment for certain nonrecurring costs, of $128,000 over the current fiscal year. Provision is made for full-year financing of positions in executive direction which were filled only a part of 1955. In order to provide more adequate coverage by staff services supporting the operation of my immediate office, I propose some strengthening in the areas of security control, budget and management, personnel management, and administrative operations.

I am sure you will appreciate that the management of the Department, with its variegated programs and activities, is not a simple and personal matter. I have utilized all possible sources, particularly the staff offices, to aid me and my immediate assistants in acquainting ourselves with the complexities of our operations. I regard the additional amounts required to strengthen this area as an investment which will ultimately and continually return dividends in the form of efficiencies and general improvement of operations in all areas of the Department.

OFFICE OF STRATEGIC INFORMATION

In accordance with a request by the National Security Council, I have established in the Office of the Secretary an Office of Strategic Information for which

funds are requested in this estimate. The purpose of this Office is to establish policies governing the voluntary protection of strategic information, publication of strategic information within the Government, and international exchange of information to assure maximum return to the American public, industry and the United States Government. I believe that the work of this office is of great national importance and urge the approval of funds for its continued operation.

AVIATION WAR-RISK INSURANCE REVOLVING FUND

Request is made for approval of language for an aviation war-risk insurance revolving fund. This is a renewal of a request made by the President February 16, 1954, in House Document 332. This item was not allowed at that time, because the House and Senate committees apparently did not believe the item warranted consideration as a supplemental. The authorization for this activity is found in Public Law 47, 82d Congress, 1st session, approved June 14, 1951. This authorization is submitted pursuant to the provisions of section 1307 (f) of the act.

Commercial war-risk insurance cannot be obtained on reasonable terms and conditions from authorized companies. Under the proposed program, binders would be issued at a fee of $100 per aircraft to provide coverage of the aircraft and the operator's liability, other than liability to cargo; and $10 per aircraft to provide coverage for the operator's liability to cargo. These binders would become war-risk insurance automatically on the outbreak of war. Administrative costs for preparing, printing, and issuance of these binders will be paid out of fee receipts. It is anticipated that binders will be issued on 100 aircraft during 1956.

BUREAU OF THE CENSUS

The decrease in the total estimates for the Bureau of the Census from $30,630,000 in 1955 to $18,555,000 in 1956 results from a reduction in the second year's appropriation requirements for the 1954 agriculture and economic censuses initiated in 1955. Additional appropriations, amounting to $1,700,000, are being requested for improvements in the regular program of current statistics, for electronic equipment development, and for an intercensal housing survey as a part of a Governtmentwide effort endorsed by the President to improve statistics in those areas where additional information is needed to maintain an appraisal of our national economy.

One of the problems of most concern in recent months has been the nature of changes in unemployment and various kinds of employment in response to changes in Government and business programs. The need for greater detail and further. improvement of statistics on employment and unemployment has become apparent during this period. It is proposed to double the size of the sample of the monthly current population survey to provide more accurate measurement of the changes chich occur in employment and unemployment, and to provide supplemental information on subjects such as occasional and part-time workers, persons holding two or more jobs, and people who change jobs frequently.

In the area of manufacturing, existing programs provide data on many specific commodities from month to month, but provide no direct measures for many other products or for total manufacturing between the 5-year census periods. The budget estimates include provision for an annual survey of manufactures to provide the needed measures. An annual survey of retail trade is also needed and

provided for in the budget.

The State and local governments in total represent an important segment of the national economy, spending over $30 billion a year. The existing program provides national estimates of aggregate receipts and expenditures of State and Îocal governments, and individual figures for the governments of each State, and most of the larger cities. There are no reliable State-by-State aggregate figures, however, covering the finances of counties, municipalities, school districts, and the like. The proposed program provides for initiating a biennial survey which would provide reliable data for the aggregate of local governments in each State.

The experience of the Bureau of the Census with electronic equipment has proved its value in speeding the tabulation of statistical data and in reducing unit costs. It is anticipated that the rapid advances in the general technology of electronic data processing systems will continue for several years at least. If the very large potential of savings in the 1960 Decennial Census is to be realized, such developments, which will be taking place within industry and government, must undergo a process of adaptation to be most effectively applied to census problems. In addition, pilot models of new electronic devices must be built or purchased.