DEPARTMENT OF LABOR Bureau of Labor Statistics, revision of consumers' price index.-The budget estimate before the committee was for a 3-year appropriation of $4,326,000 (including $126,000 already pending in the regular 1950 appropriation bill) to make a complete revision of the consumers' price index, more commonly known as the cost-of-living index. The committee recommends $1,126,000, including the $126,000 above referred to, for expenses of the project in fiscal year 1950. The index is used extensively for general economic planning and for manufacturing and marketing purposes. Wages of several million workers depend on the index either directly or indirectly in connection. with determination of wage rates. The present index is based on income, expenditure, and consumption patterns of moderate-income urban families during the years 1934-36. It is known that those patterns have changed markedly in the past 12 years. Because of the wide usage of the index, the committee agrees that it is of first importance that the index be maintained on as sound a basis as possible. On the other hand, the committee believes that it would be more appropriate in the first year to provide only the amount necessary for preliminary plans for the project and for those parts of the over-all program which can be undertaken immediately. The budget was set up on a 3-year basis but the Secretary of Labor testified that it was his desire to have the project completed in a shorter period of time, and the committee hopes that will be possible. The project as proposed involves a number of future cost factors which appear to be somewhat speculative at this point and that is an added reason for granting only a portion of the funds at this time. The committee expects to review carefully the status and further requirements of the project when the 1951 budget is submitted. POST OFFICE DEPARTMENT FIELD SERVICE The bill provides new appropriations in the amount of $20,301,000, a reduction of $386,000 in the amount requested, of which $19,301,000 is to pay for increased rates authorized by the Civil Aeronautics Board for the air mail carriers. The remaining amount recommended for appropriation, $1,000,000, is for an additional amount for the star route service, 1949, made necessary as a result of the enactment of Public Law 669 (80th Cong.) which authorized the Postmaster General to adjust the terms and rates of star-route contracts. The committee, in making a reduction of $386,000 in the amount requested for this purpose, is expressing its belief that there has been an entirely too rapid rise in the rate of obligations incurred for this purpose believes that the Department should be a bit more cautious in passing on applications for relief under the above-mentioned act. and In addition to the amounts appropriated, the committee has approved requests for the transfer of a total of $1,482,200 from balances of amounts previously appropriated. Of this amount, $1,257,200 is to provide for rate in creases granted to carriers by the Interstate Commerce Commission and the Civil Aeronautics Board. The committee is approving a requested transfer of $225,000 in 1950 appropriations from domestic air-mail service to the railway mail service to enable the Department to put into effect its plan for coordination of air and surface transportation of the mail. The committee was somewhat hesitant to approve this request as it felt that the proposal was only a piecemeal attempt at reorganization rather than a bold approach by the Department to come forth with a plan to improve the entire postal service at one time. The officials of the Department have assured the committee that this plan, when put into effect, will result in considerable improvement in efficiency. Such aims are most laudable and the committee hopes to see savings result from its adoption. The results which flow from the operation of this plan will undoubtedly have considerable bearing on whether or not approval is given to future requests for reorganization. The committee would like to see the Department, in the presentation of its 1951 estimates, be in a position to lay before the Congress a complete set of plans for whatever changes it might contemplate in the near future, rather than coming in with such requests one at a time on a supplemental basis. DEPARTMENT OF STATE United States participation in international organizations.-The committee recommends that not to exceed $1,595,000 of the amount made available under this head in the Second Deficiency Appropriation Act, 1948, for the International Civil Aviation organization shall remain available until June 30, 1950. Of the amount of $3,750,000 appropriated in the Second Deficiency Appropriation Act, 1948, it is estimated that $1,450,000 will be obligated by the end of the fiscal year 1949, leaving a balance of $2,300,000, which is the amount the Bureau of the Budget recommended be continued available until June 30, 1950. The reduction of $705,000 by the committee is recommended since no international action has yet been taken with respect to that amount. It was testified that requests for the full amount might materialize in the future. If and when they do materialize, they will be considered by the committee. International information and educational activities.-The committee recommends the additional amount of $1,800,000, a decrease of $155,000 in the budget estimate for the fiscal year 1950 for this item. This amount will provide for a continuation of the information and educational program in Korea, the responsibility for which was transferred from the Army to the Department of State on January 1, 1949. During the 6-month period from January 1 through June 30, 1949, funds for the program have come from the appropriation for "Government and relief in occupied areas." Although the amount recommended for the Korean program is somewhat larger than that provided. for the information and educational program in many other countries, it is believed justified since Korea has become a testing ground in which the validity of democratic principles is being matched against the practices of communism. It is important that the continued United States interest in, and the support of, the Korean Republic be publicized throughout Korea. It is to be noted that approximately onethird of the amount of this appropriation represents the dollar equivalent of the Korean won to be spent in Korea. The appropriated funds. covering this local currency will be paid into the Treasury as miscellaneous receipts. TREASURY DEPARTMENT The requests considered by the committee for the Treasury Department totaled $5,492,400 against which the committee has approved $4,992,400. Refunds under Renegotiation Act.-A request was made for an additional amount of $4,500,000 for the fiscal year 1950. The sum of $1,800,000 is carried for this purpose in the regular 1950 supply bill and the committee believes that the sum of $4,000,000, which it recommends in the accompanying bill, will be sufficient to provide the necessary payments until a further review of the matter can be made at the next session of Congress. Payments under this program are made pursuant to title VII of the Revenue Act of 1943 and during the course of the hearings it was developed that there is no terminal date under the law for filing of claims. The committee recommends to the Department that it initiate legislation to establish a terminal date at as early a date as practicable after the Bureau of Internal Revenue closes its accounts with the taxpayers for the years in question. Bureau of Accounts.-A request was made for $257,000 to reimburse the Federal Reserve banks for expenses incident to handling deposits of taxes collected under the Federal Insurance Contributions Act. The witnesses before the committee indicated that a considerable saving in money will accrue to the Federal Treasury as a result of this new plan for handling these collections. At the time the estimate was submitted it was thought that the program would start on October 1, 1949, but subsequent planning has resulted in a delay until January 1, 1950. It is therefore apparent that $175,000 will be sufficient to inaugurate the program and carry it for the last half of the fiscal year 1950, and the committee recommends this amount. Two additional estimates for 1950 totaling $735,400 were made and approved for the disbursement and issuance of checks in connection with the program of the Veterans' Administration for paying refunds of excess premiums on national service life insurance. Testimony indicated that this additional work load will fall upon the Division of Disbursement and the Office of the Treasurer sometime between November 1, 1949, and the end of this calendar year. The employees will be hired on a temporary basis and will probably be needed for about 4 months. LIMITATIONS AND LEGISLATIVE PROVISIONS The following limitations and legislative provisions not heretofore carried in any appropriation act are included: On page 9, beginning in line 4, under the United States Maritime Commission: : Provided further, That no part of the foregoing appropriation shall be available for surveys and inspections of vessels by the American Bureau of Shipping. No additional vessels shall be allocated under charter, nor shall any vessel be continued under charter by reason of any extension of chartering authority beyond June 80, 1949, unless the charterer shall agree that the Commission shall have no obligation upon redelivery to accept or pay for consumable stores, bunkers, and slop chest items, except with respect to such minimum amounts of bunkers as the Commission considers advisable to be retained on the vessel and that prior to such redelivery all consumable stores, slop chest items, and bunkers over and above such minimums shall be removed from the vessel by the charterer at his own expense. On page 10, beginning in line 12, under the War Claims Commission: : Provided, That no part of the foregoing appropriation shall be available for carrying out the provisions of section 8 of said War Claims Act of 1948. On page 13, beginning in line 18, under Claims, Federal Airport Act: : Provided, That for the purposes of section 17 of the Federal Airport Act, as amended, the date of enactment hereof shall be considered as the date of termination of war as contemplated by such section. On page 14, beginning in line 15, under General Provision, Department of Justice: After the date of enactment hereof any claim (not in excess of $500), settled for payment by the Comptroller General, for fees, storage or other items of expense, related to litigation, which is beyond the control of the Department may be paid out of the appropriation currently available for such purpose at the time of settlement of such claim. Increase (+) or THIRD DEFICIENCY APPROPRIATION BILL, 1949 Comparative statement of the amounts of the budget estimates and of the amounts recommended to be appropriated by the bill 230 Capitol Buildings and Grounds: House Office Buildings, 1950. Total, legislative branch.. THE JUDICIARY Court of Claims: Repairs and improvements, 1950. 218 District of Columbia Redevelopment Land Agency, 1950. 2, 180, 000. 00 -2, 180, 000 |