In addition to the amount for claims, $5,502,583.75, deficiencies for 1949 are $51,273,100 against estimates of $51,627,000, and appropriations for 1950 are $67,055,560, against estimates of $102,360,490.

THE JUDICIARY

Court of Claims, repairs and improvements.-The supplemental estimate for fiscal 1950 in the amount of $130,000 for repairs and improvements, Court of Claims, is disallowed. It is believed that the additional improvements contemplated are not of sufficient urgency to necessitate their immediate construction. The committee is not convinced of the propriety of spending $130,000 for the repair and improvement of a $35,000 structure. The request, however, will be made a basis of further study by the committee and pending that study the expenditure of funds previously appropriated for repairs to the rear building is deemed inadvisable.

FUNDS APPROPRIATED TO THE PRESIDENT

CARE, HANDLING, AND DISPOSAL OF SURPLUS PROPERTY ABROAD

The bill includes a reappropriation of $7,500,000 of the unobligated balance of $18,300,000 previously appropriated for this purpose. This amount is to be used for the reconditioning, packing, and shipping of certain surplus military equipment to the Government of Iran in pursuance of an agreement entered into between that country and the Department of State. The contract price as well as the cost of handling and shipping this property is to be repaid to the United States over a period of years at a specified rate of interest. It was anticipated that this transaction would have been completed by the end of the current fiscal year but unforeseen obstacles encountered in the gathering, reconditioning, and shipping this equipment make the reappropriation necessary.

DEFENSE AID, LIQUIDATION LEND-LEASE PROGRAM

The amount of $100,000, a reduction of $100,000 below the budget estimate of $200,000, is recommended for the continued liquidation by the Treasury Department of accounts and activities under the original lend-lease program. Testimony before the committee last year indicated some possibility that the entire liquidation would be completed by the end of the current fiscal year However, an unexpectedly sustained volume of freight and other claims as well as General Accounting Office exceptions make it necessary to extend this program into the ensuing fiscal year The committee does not feel that sufficient effort has been exerted in this activity and wishes to impress upon the Treasury Department the necessity of completing this liquidation at the earliest possible date. The necessary procedures for the handling of these claims have been firmly estab lished, the bulk of the claims have been disposed of, and the gradually diminishing number of claims can in the opinion of the committee, be handled with the $100,000 appropriation recommended in the accompanying bill. Moreover, it would seem that rather than maintaining a separate unit for the handling of these claims much of the

work can and should be integrated with the regular work of the Treasury Department.

The bill also includes a reappropriation of $1,000,000 for the payment of claims under a patent interchange agreement entered into by this country and the United Kingdom under provisions of the Lend-Lease Act. It was testified that, at the present time, there is a total of approximately $1,600,000 in pending claims which, after adjustments, can be settled within the reappropriation of $1,000,000 being recommended.

INDEPENDENT OFFICES

DISTRICT OF COLUMBIA REDEVELOPMENT LAND AGENCY

The committee has disallowed the budget request of $2,180,000 for this agency for use in the assembly of real property by purchase or condemnation for redevelopment of the Marshall Heights area in accordance with a plan approved by the National Capital Park and Planning Commission and the District Commissioners. The committee heard the opponents and proponents of the development program and was impressed by the divergence of opinions and the conflicting information expressed by those who favored and disapproved the project. For instance, proponents of the plan estimated that the ratio in favor of it was 65 to 35, while opponents reported that disapproval was practically unanimous. There must be a middle ground between these conflicting opinions.

Testimony was given to the committee that 90 percent of the property was in the hands of individual home owners and that these homes were largely paid for. Representatives of the Park and Planning Commission testified that many of the existing homes are located on lots 25 feet wide and about 100 feet deep, that the assessed value was 3 cents per square foot, and in general, would bring two times the assessed valuation, or about $150. It is obvious that this sum would not be sufficient for the dispossessed home owner to make a down payment on a new home either in the new development or elsewhere. It necessarily follows that many of these unfortunate people would be dispossessed without any prospect of securing a home.

It is the recommendation of the committee that the District Commissioners withdraw their approval of the Marshall Heights plan and proceed to assist the residents of the area through development and improvement of the community by providing essential services. The Commissioners should extend every assistance such as the grading of streets, and the installation of water and sewer and other improvements in the same manner that other areas have been developed. The Engineer Commissioner of the District testified. that where a new subdivision is being developed the District is automatically required to provide such facilities. The same recognition should be given to the Marshall Heights area.

Finally, the committee urges that the Commissioners lift a freeze order which has been in effect for several years as to utilities and now prohibits all repairs and improvements in the area. This order has stifled and retarded development and should be lifted immediately. Also, testimony was given that there are substantial acreages in this

locality already owned by the Government which are not in use and which could be used for a development program in the event such a plan is essential.

FEDERAL MEDIATION AND CONCILIATION SERVICE

Salaries and expenses. For expenses of this agency during fiscal year 1950, the committee recommends $2,700,000, a reduction of $40,000 below the budget estimate. The 1949 appropriation was $2,940,000 but approximately $179,000 will not be spent due to savings attributable largely to a reorganization effectuated by the Director of the agency early in fiscal year 1949.

This agency functions independently pursuant to authority of and for the purposes set out in title II of the Labor-Management Relations Act of 1947. Budgetary provision for the agency is normally made in the Labor-Federal Security appropriation bill but was omitted when that bill for 1950 was reported to the House on account of the then-existing legislative situation with respect to the basic law under which the service operates. Although the legislative situation is substantially unchanged, it is necessary to make provision for operation of the service in the year beginning July 1. As far as the committee can determine at this time, the amount recommended should be adequate for the coming fiscal year.

Boards of inquiry.-The bill includes $25,000 for expenses of boards of inquiry appointed to work on labor disputes in which the national health or safety is imperiled. This item rests on section 206 of the Labor-Management Relations Act of 1947 This appropriation is nothing more than a stand-by fund for expenses of such boards as may be appointed by the President; no one is in position accurately to forecast what the requirements will be. The 1949 appropriation was $150,000 of which only about $10,000 will be expended. The budget included an arbitrarily determined amount of $75,000 for 1950. amount of money needed is a case of one guess against another and that is the sole reason for the reduction below the estimate.

FEDERAL SECURITY AGENCY

The

For the various items under the Federal Security Agency a total of $33,350,000 is recommended as supplemental to appropriations pending for fiscal year 1950 in the regular Labor-Federal Security bill. The total recommended is a reduction of $8,146,500 below estimates of $41,496,500. Comments on the individual items are set forth in the following paragraphs.

Office of Education, salaries and expenses.-Against the supplemental estimate of $60,000 for 1950 for this item, the committee recommends $50,000. This will provide for continuation on a reduced basis during 1950 of the surplus property donation program for educational institutions as authorized by Public Law 889, Eightieth Congress. Approximately $140,000 was expended for this program in fiscal year 1949. There is pending in the regular 1950 bill $75,600 which together with the $50,000 now recommended by the committee would provide a total of $125,600. This is a worth-while program and should have the funds necessary for its implementation. The committee's

reduction of $10,000 is based in part on the belief that the Washington office staff can be reduced even more than proposed.

Grants to States for employment security program.-For administration of the unemployment compensation and employment service programs in the States during 1950, the committee recommends an additional appropriation of $33,000,000, of which $8,000,000 is earmarked as a contingency reserve to provide for increases in work loads or State costs unforeseeable at the present time. This is in accord with the budget recommendation except that the contingency fund has been reduced from $16,000,000 to the afore-mentioned figure of $8,000,000. When added to the $135,000,000 now pending for these grants in the regular appropriation bill for 1950, the $25,000,000 additional recommended for basic State allocations will provide a total of $160,000,000 for immediate allocation. This compares with $150,000,000 adopted by the House and Senate in the regular bill for 1950 based on estimated work loads and costs as they appeared in February. The evidence now available convinces the committee that a total basic allocation of $160,000,000 should be made available. On the other hand, while there is no doubt that some provision should be made for dealing swiftly with such emergency situations in State operations as may arise out of unforeseeable work load or cost changes, there is no magic in the 10 percent contingency heretofore suggested and again proposed in the instant budget estimate. Under present conditions it is impossible to accurately forecast for this program but under all the circumstances, the committee believes that no more than $8,000,000 should be set aside at this time as an emergency fund.

Salaries and expenses, Bureau of Employment Security.-The committee recommends $300,000, a reduction of $136,500, as a supplement to the regular 1950 appropriation for this Bureau which administers the Federal position of the joint Federal-State employmentsecurity program. Of the amount recommended, $160,000 is for operating interstate information stations as a part of the migratory agricultural labor program. That particular function has heretofore been handled by the States but for various reasons can be better handled by the Federal agency and in the revised estimate has been deducted from the State grants appropriation.

The remaining $140,000 allowed will enable the Bureau to make some increases in staff-though not to the extent proposed-to intensify its work with the States in formulating and reviewing the make-up of State operating budgets to the end that a more equitable distribution of funds to the States, within the total Federal appropriation available, can be achieved. The matter of equitable distribution has for some time been a subject of controversy. It will also permit the Bureau to concentrate attention on working with the States in reexamining certain aspects of their operations which loom as more important and pressing under the current upswing in demands on the State services and benefit funds.

MOTOR CARRIER CLAIMS COMMISSION

The bill contains $150,000 for salaries and expenses of this Commission, which is $50,000 less than the budget estimate. At the time of hearings on the item, June 17, the committee was advised that

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members of the Commission had not been appointed or confirmed and that no office organization had been set up. Furthermore, no definite information was available as to when the Commission would be organized. The budget estimate was set up on the basis of approximately 11 months' operation. In view of this uncertainty the committee feels justified in effecting the reduction of $50,000 in the estimate of $200,000 for this purpose.

NATIONAL LABOR RELATIONS BOARD

For salaries and expenses of the Board, the bill includes $8,550,000, a reduction of $450,000 in the budget estimate of $9,000,000. The 1949 appropriation for the Board was $9,400,000 for administration of functions assigned under the Labor-Management Relations Act of 1947. Because of the many imponderables inherent in the situation at that time, the 1949 appropriation was necessarily based on a highly speculative case-load forecast-so much so that in addition to absorbing approximately $500,000 Public Law 900 pay increases there will be an unexpended balance of about $800,000. The committee is recommending approximately the same amount as the agency will use in 1949.

Provision for this agency is normally made in the regular LaborFederal Security appropriation bill but on account of the legislative situation then existing with respect to the basic law under which the agency operates, it was omitted when that bill was reported to the House last March. The exact scope and status of the functions of the agency in the future are still pending legislative determination but in the meantime provision must be made for its financing as now constituted. Although fiscal year 1949 work load experience affords a more reliable basis for forecasting requirements for 1950 than was possible a year ago when the 1949 appropriation was made, experience in administration of the Labor-Management law is still somewhat limited. Evidence presented to the committee reflects an estimated over-all decrease in the number of cases presently expected to be filed in 1950 as compared in 1949 and within these totals, the volume for some categories of cases is expected to decline while others are estimated to increase. A number of uncertainties are in the picture at this point and in all the circumstances, the committee believes that the amount recommended should prove to be adequate.

NATIONAL MEDIATION BOARD

National Railroad Adjustment Board, salaries and expenses.-The bill includes the full amount of the supplemental estimate of $207,700 to provide for servicing two supplemental boards established in May 1949 under the Railway Labor Act to assist the Adjustment Board in working off more than a 2-year backlog of grievance cases pending before the Board involving the railroads and certain branches of organized railroad labor. The division of the Board handling this category of dispute cases has had a work backlog for several years which has been a source of threatened tie-ups of important railroads