Mr. JENNINGS. The Department of Commerce, as we understand it, could not move them completely this fiscal year with their funds because they have exhausted their resources to make available the amount necessary to bring about 50 percent of those people back to Washington. Mr. LUDLOW. You have no appropriation available now to return these activities to Washington? Mr. JENNINGS. That is correct. I may say, sir, the expenditure of Patent Office funds for this purpose was cleared by both the House and Senate Appropriation Committees before they were moved back to Washington. Mr. LUDLOW. How much is included in the 1947 budget for this type of operation? Mr. JENNINGS. There is nothing in our 1947 budget. This is the total amount that would be available to us for the balance of this fiscal year and for 1947. Mr. LUDLOW. Now, the Rural Electrification Administration has absorbed part of the cost of its removal. Mr. JENNINGS. Yes, sir. Mr. LUDLOW. How much? Mr. JENNINGS. $179,234. Mr. LUDLOW. What is estimated will be the total cost of moving the Rural Electrification Administration back to Washington? Mr. JENNINGS. $238,634. Mr. LUDLOW. And you propose to pay the residue of that cost out of this appropriation? Mr. JENNINGS. Yes, sir. Mr. LUDLOW. How about the Farm Credit Administration; is it proposing to pay anything? Mr. JENNINGS. The total cost to remove is estimated to be $295,020. Mr. LUDLOW. Does it propose to pay anything? Mr. JENNINGS. They have indicated that they have no money because most of their administrative funds are derived from levies on constituent agencies, such as the Federal Land Banks, the Production Credit Corporations, the Federal Intermediate Credit Banks, and the Federal Farm Mortgage Corporations. Mr. LUDLOW. The Rural Electrification Administration is certainly well financed. Do you think it is contributing all that it can to this operation? Mr. JENNINGS. We have no means of determining that other than from the information we get from the Bureau of the Budget but I feel sure that the Bureau has gone into that item quite thoroughly. Mr. LUDLOW. When do you expect to accomplish completely the move of the three agencies in question? Mr. JENNINGS. That is hard to answer. It has been anticipated that the three agencies would be completely moved by next fall. AGENCIES PREVIOUSLY TRANSFERRED FROM WASHINGTON Mr. LUDLOW. How many agencies were moved in the period of the emergency to other cities from Washington? Mr. JENNINGS. Approximately 40 activities. We have those listed and we will put them in the record. Approximately 16,720 employees accompanied the decentralized activities to the new locations. (The list of decentralized activities follows:) Federal Works Agency-Public Buildings Administration statement showing decentralized locations of certain Federal agencies Labor: Wage and Hour Division and part of Solicitor's Office. New York, N. Y..... Treasury: Bureau of Public Debt (part)__ Cleveland, Ohio. Chicago, Ill.. 711 17th St. Franklin Trust; Pennsylvania, 338 North Broad St. 1560 Broadway. Higbee and Annex; Women's Club. City Bureau of Internal Revenue (part) ..... War: Adjutant General's Office (part) Army Airways Communications System.. Greensboro, N. C.... Charlotte, N. C. Asheville, N. C. Demobilized Records Branch, Adjutant General's Office. High Point, N. C..... Directorate of Photography. Office of Chief of Finance (part)...... St. Louis, Mo. Offices of Chief Signal Officer and Chief of Ordnance Philadelphia, Pa.. (part). Office of Chief of Transportation.. Alien Property Custodian..... Civil Service Commission: Fourth District Office. Employees' Compensation Commission.. Cincinnati, Ohio.. Merchandise Mart; 500 West Trade St. Southern Furni- New Prudential. 135 South LaSalle St. Winston-Salem, N. C. Nissen. Federal Deposit Insurance Corporation: Credit Union Chicago, Ill.... Federal Security Agency: Bureau of Old-Age and Survivors Insurance... General Counsel's Office (part)....... Various... New York, N. Y. Murray Hill: Murray Hill Annex; 232 Madison Ave. 135 South La Salle St. 115 East 44th St. Equitable. Federal Works Agency-Public Buildings Administration statement showing decentralized locations of certain Federal agencies-Continued Mr. LUDLOW. Is it your present thought that a considerable number of the other agencies will move back to Washington? Mr. JENNINGS. I think that will depend upon the conditions, sir.. At the present time it is rather indefinite. I am sure that we could not take care of more than are listed in this estimate before you. The space situation would not allow it. SALARIES AND EXPENSES, CENTRAL OFFICE Mr. LUDLOW. Regarding the item of central office, salaries and expenses, $42,138, you have engaged in that sort of activity since the beginning of the war. Why do you feel the need of an additional appropriation now? Mr. JENNINGS. The appropriation at the beginning of the war was for the movement of these people from Washington and those funds are not available to us for this purpose. Mr. LUDLOW. Did you take on special personnel at that time? Mr. JENNINGS. Yes; we had quite a large force employed specifically for that purpose at that time. Mr. LUDLOW. That reminds me of the old story about the right-leg doctor and the left-leg doctor. Why would not the same personnel be able to handle it? Mr. JENNINGS. There has been a long period of time between the moving of these activities from Washington and any thought of their return. All of those employees engaged in decentralization have been separated from our pay roll for over a year. Now we have to build up a new organization. We are trying to get as many as possible of the people that have had previous experience working with our organization. Mr. LUDLOW. Have you any information as to the immediate prospect of returning any other activities? Mr. JENNINGS. Not a thing. We did have a list of about 15 activities that were under consideration. In studying this estimate it was reduced to the three listed with a miscellaneous item to take care of some that are not identified at the present time. BASIS OF THE ESTIMATE Mr. LUDLOW. On what basis did you arrive at this amount of $883,000? Mr. JENNINGS. That is based on a rather close study of actual costs at the time of the decentralization, moving people by activities, and the average cost per person. BREAK-DOWN OF EXPENDITURES Mr. LUDLOW. Now, the expenditures under this are broken down under different categories. It covers the return of persons and it covers the return of household effects, furniture, and office equipment. You might go into that a little bit. Mr. JENNINGS. You will notice the estimate is broken down for activities to show the total number of positions in each activity and the estimated number of employees that would return to Washington, realizing that some of those will not transfer here. That is estimated pretty much on a survey of the activity to determine how many would return. Mr. LUDLOW. In that connection is it not true that a great many of them were very reluctant to leave Washington and some protested very vocally at the time. Is there much reluctance to come back to Washington? Mr. JENNINGS. I think there is a feeling on the part of the employees in some instances that they would prefer to stay in their present locations for a while until the situation adjusts itself here, realizing the difficulty of moving at this time and finding places to live. Mr. LUDLOW. Do you anticipate a considerable percentage decline in those that will come back? The alternative would be that they would lose their positions? Mr. JENNINGS. That is indicated by the smaller number of employees listed for return as compared to the number of people that they have on their rolls. Mr. LUDLOW. What percentage did you deduct? Mr. JENNINGS. That is more or less on the basis of an actual survey of each activity. Mr. LUDLOW. Rather than a flat percentage? Mr. JENNINGS. Yes sir. MOVEMENT OF HOUSEHOLD EFFECTS Mr. LUDLOW. What do you do for the employee-do you pay for the return of his household furniture? Mr. JENNINGS. Yes sir. That is contemplated in the language. Mr. LUDLOW. On what standard is that to be done? Mr. JENNINGS. That is based on the standard included in a socalled omnibus bill now before the House, H. R. 4586. Mr. LUDLOW. Is there a ceiling on the amount? Mr. JENNINGS. Seven thousand pounds per individual for household effects. CONTINGENT EXPENSES Mr. LUDLOW. After having computed your costs here you add 10 percent for a contingent expense. Is that customary? Mr. JENNINGS. We thought we better do that because this is the type of estimate that cannot be exact. There may be changes in the number of people at the time the move is made. A greater number of employees might decide to come back and that cost would be covered by the contingency item. Mr. LUDLOW. How many would this involve, altogether? Mr. LUDLOW. In all of these? Mr. JENNINGS. Yes, sir. PROSPECT OF HOUSING RETURNED EMPLOYEES Mr. LUDLOW. What is the prospect that they will find living quarters when they come to Washington? Mr. JENNINGS. I think that is a matter of some concern. Regarding the Patent Office, many of the people involved never moved from their homes. It is only a short distance from Richmond to Washington and many of them commuted. About 50 percent of that office has already returned. I think the housing situation will not be too acute for that particular agency. Regarding the other two that are listed here, the question of housing, of course, is something that the individual will have to consider in connection with his return. Mr. WIGGLESWORTH. He will have to do something more than consider it. Mr. JENNINGS. It is a real problem, sir. RELEASE OF SPACE OCCUPIED IN OTHER CITIES Mr. LUDLOW. When these activities were removed to these three cities, did you enter into lease contracts for office quarters? Mr. JENNINGS. Yes, sir. Mr. LUDLOW. Are you bound with those contracts? Can you vacate the premises? Mr. JENNINGS. That situation is working out all right, especially in Richmond. The Veterans' Administration was ready to move into the vacated space. As a matter of fact, they were pressing the Patent Office to get out of the space. Mr. LUDLOW. There would be no problem there. How about Kansas City and St. Louis. Mr. JENNINGS. In Kansas City the Farm Credit Administration occupies an auditorium building that I believe could be vacated. I think that the lease provision specifies a 30-day notice but that would have to be checked. In most of these places they want to get the space back. Mr. LUDLOw. How about St. Louis? Mr. JENNINGS. At St. Louis about 118,000 square feet are involved and the space has been assigned to the Veterans' Administration for use as a branch office. Mr. LUDLOW. How soon is it anticipated that you will be able to accomplish the move of all of these activities? Mr. JENNINGS. Within a reasonably short period of time. It depends on how soon the activities can move and what arrangements could be made for finding homes here. SPACE TO BE OCCUPIED IN WASHINGTON Mr. LUDLOW. The Patent Office will go back into the Department of Commerce Building. Where would the Farm Credit Administration and the Rural Electrification Administration go? |