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Mr. CANNON. We concede that it will cost that much to operate, but you are not taking into consideration the savings that will be effected.

Mr. REYNOLDS. The savings will be effected by the fact that if this space is not provided, large blocks of space in the central West must be rented or constructed for these people. This is the most economical way of handling the space problem out there. If they move into the Federal center, the amount of money that they have available for the rental of other quarters will be recovered by the Bureau of the Budget when they review their estimates.

Mr. CANNON. You must be evacuating a tremendous area of space if you are going to take up over 2,000,000 feet of space here. The space that you are giving up represents a corresponding saving.

Have you a statement that we can see or can you prepare a statement of the space that is being vacated or that will be vacated by reason of the availability of this facility in Denver showing by objects the maintenance and operation expense that will be saved? We would like to have that.

Mr. REYNOLDS. I should be very glad to submit such a statement. Mr. CANNON. That does not seem to have been taken into consideration at all here.

Mr. REYNOLDS. Not in this item. As a matter of fact, I raised the question myself in discussing this problem with the Budget and others. The need of 420,000 square feet by Veterans' Administration is practically a new requirement. A very high proportion of the Bureau of Reclamation space is in connection with their new reclamation program in the Missouri Valley, and so forth. Each of those agencies has had a tremendous growth as far as space in this particular area is concerned. We will give you a complete statement, Mr. Chairman. Mr. CANNON. I wish you would do that; submit a complete statement showing your savings both in rentals and in cost of operation. Mr. REYNOLDS. Yes, sir.

(The statement requested is as follows:)

Denver Federal center, Denver, Colo.

The following is a statement of space assignments in the buildings of the Denver Federal center for office, storage, and related uses:

Veterans' Administration for office, storage, and related uses.
Bureau of Reclamation for office, laboratory, and related uses.
Geological Survey for office, laboratory, and related uses.
Forest Service for storage and warehousing.

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War Assets Administration for office, storage, and related uses_
Space in the plant buildings presently unassigned and available for use
by other Federal agencies or activities.

Total..

2, 047, 885

The space assignment to the Veterans' Administration is for an entirely new activity of that Administration in the Denver area. The assignment to the Bureau of Reclamation is primarily to meet its expanded program of reclamation work in the Missouri Valley and Western States. The Geological Survey's expanded program of geologic and topographic surveys in the Western States increased that agency's space requirements. The assignment to the Forest Service is primarily an exchange for space presently leased. The War Assets Administration requires additional space for disposal purposes in connection with the sale of surplus war property and goods.

While almost all of the space assigned in the Denver Federal center is to provide for new or expanded activities of the agencies, it is estimated that these assign88442-46-4

ments will ultimately release approximately 250,000 square feet of leased office and storage space. No funds are included in the appropriations to the Public Buildings Administration for the payment of rent, maintenance, and operation of these leased quarters and it will be necessary that the full amount be appropriated to the Public Buildings Administration for the operation and maintenance of the center. The Bureau of the Budget will effect savings by reductions or reserves in the appropriations of the agencies affected by the space adjustments.

Mr. TABER. What was your appropriation for rentals this year; or does not that come to you?

Mr. REYNOLDS. We receive a portion of the appropriations for rentals. The balance is appropriated to the various departments and agencies of the Government.

Mr. TABER. Most of it is paid out directly by the departments? Mr. REYNOLDS. Yes; a great amount of it is.

Mr. TABER. Do you get much for rentals outside the District? Mr. REYNOLDS. It is small compared to the total of $11,383,300 included in the 1947 Budget for rents and utilities, only about $4,000,000 was for direct appropriation to us. The other $7,000,000 will come to us as reimbursements from appropriations made to various occupying agencies.

Mr. TABER. Space reimbursed to you by the other departments? Mr. REYNOLDS. That is right. We rent some space and are reimbursed for it.

Mr. TABER. Do you expect to save a very substantial part of that? Mr. REYNOLDS. No, sir. This reimbursement covers space all over the United States while the Denver project is a very localized situation.

EXPENSE OF MOVING VETERANS TO PLACES OF REEMPLOYMENT

Mr. CANNON. There is a new appropriation requested of $57,000 to save veterans the expense incident to reporting for reemployment with agencies that were moved from Washington after they had joined the armed services. Such expenses of employees who did not enter the armed forces have been defrayed by the Government. The estimate shows that there will be 246 beneficiaries. What justification would there be here for this additional amount?

Mr. REYNOLDS. This item was put in at the request of the Budget Bureau. We have the problem of these people reporting back for duty after termination of their military service. There are some 246 as nearly as we can tell now-which is a maximum number, incidentally-and it is considered that they should be afforded exactly the same treatment as those who did not go to war and were moved to Chicago or elsewhere under the decentralization program.

We have under the emergency funds for the President money to carry us not only through this fiscal year but also enough to take care of this item during 1947. As I recall, there was a limitation of some $5,000,000 put on the President's emergency fund for the fiscal year 1947 and we were told that the unobligated balance of our allocations would not be available after June 30, 1946.

Mr. CANNON. Well, the request is made here that this be made continuously available beyond the fiscal year 1947. What is the

reason for that? Why would that be advisable? Why should you continue its availability beyond the fiscal year 1947?

Mr. REYNOLDS. The availability of the allocations that we now have will expire on June 30 of this year, and this is an appropriation to take care of the situation thereafter.

Mr. CANNON. The provision you ask here will carry it into 1948. Why is that necessary?

Mr. REYNOLDS. There is a 2-year limit.

Mr. CANNON. There would be no serious inconvenience if that provision were omitted, then?

Mr. REYNOLDS. It may be that there would be a few veterans that would be affected in the fiscal year 1948, and it might be necessary to submit a request for reappropriation. Mr. CANNON. Thank you very much.

MONDAY, JUNE 3, 1946.

CIVILIAN PRODUCTION ADMINISTRATION

STATEMENTS OF J. D. SMALL, ADMINISTRATOR; J. W. HARRISON, ACTING BUDGET OFFICER

APPROPRIATIONS, 1946, AND ESTIMATES, 1947

Mr. CANNON. We will take up the Civilian Production Administration item on page 16 of the bill. We have a proposal here in House Document 607 containing the 1947 budget for the Civilian Production Administration. The amount is $20,600,000.

For the current fiscal year there was initially appropriated for the original agency, which was the War Production Board, $35,000,000. Of that amount $10,000,000 was rescinded in the first rescission bill of 1946; $1,500,000 of that rescission, in effect, was restored in the Urgent Deficiency Act approved March 22, 1946, resulting in a net availability for 1946 of $26,500,000.

Mr. Small, in that net amount you are absorbing the cost of overtime and the pay increase provided by Public Law 106, is that right? Mr. SMALL. Yes, sir.

Mr. CANNON. This was a matter of $3,023,961, according to Public Document No. 437. The amount, as I understand it, that you are requesting for 1947, excludes any provision on account of the new pay law, Public, No. 390, approved May 24, 1946.

Mr. SMALL. That is right.

SUMMARY OF THE ESTIMATE

Mr. CANNON. Do the 1946 figures shown in the table on page 1 of your justification represent approximately a portrayal of actual and prospective obligations?

Mr. SMALL. Yes, sir; I think we can say that safely.

Mr. CANNON. Then we will include in our hearings at this point page 1 of the justification.

(The matter referred to is as follows:)

Civilian Production Administration summary by object of expenditure budget estimates fiscal year 1947

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Civilian Production Administration summary by object of expenditure budget estimates fiscal year 1947-Continued

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Mr. CANNON. According to the present outlook, judging from this table, you have practically exhausted your 1946 availability? Mr. HARRISON. That is true.

TRANSFERS FROM NATIONAL HOUSING AGENCY FOR ADMINISTRATIVE

EXPENSES

Mr. CANNON. The National Housing Expediter is authorized by Public No. 336, until June 30, 1946, to transfer funds to your administration for administrative expenses occasioned by the authorization for the veterans' emergency housing program. Has any transfer been actually made, or do you expect any transfer to be made?

Mr. HARRISON. $600,000 was transferred on April 3.

Mr. CANNON. Is that the full amount that you expect, or will there be subsequent transfers?

Mr. HARRISON. There was a subsequent transfer of $1,500,000. Mr. CANNON. That has already been transferred?

Mr. HARRISON. That has already been transferred.

Mr. CANNON. Is there any prospect of further transfers?

Mr. HARRISON. We do not anticipate any further transfers. Those transfers are not included in the 1946 figures shown here.

Mr. CANNON. Changes in economic conditions and the emergency housing program, which led to the restoration of 11⁄2 million dollars to your current funds back in March, make necessary the continuation of your agency in the public welfare and until a definite trend toward a stable economy has set in.

GENERAL JUSTIFICATION OF THE ESTIMATE

I see that you have given us a general justification on pages 3 to 8 in this folder that is before us. We will insert that in the record at this point and then I wish you would give us, without reading it, a brief résumé of that.

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