JUSTIFICATION OF THE ESTIMATE Mr. CANNON. Then it will be unnecessary to bring them down. (The following justification will be inserted in the record:) JUSTIFICATION FOR SUPPLEMENTAL APPROPRIATIONS (PENALTY MAIL) FISCAL YEAR ENDING JUNE 30, 1946 The end of the war has brought about a very large increase in work for the Federal Power Commission and as a result the Congress approved a supplemental appropriation of $275,000 for these increased activities. When the supplemental appropriation was considered it was believed that the present appropriation for penalty mail would be sufficient as our first quarter experience did not indicate a deficit. The increased work load, however, has resulted in a general rise in the cost of our penalty mail and now that the Commission's activities in connection with its various functions have increased, the present appropriation is not sufficient. Every effort has been made to control the use of penalty mail in order that we might stay within the amount appropriated by the Congress for this purpose. Actually, however, a large part of the cost of the penalty mail is the result of the legal requirements in connection with the Commission's work and therefore not subject to the Commission's control. There has been a marked increase in activities in connection with the work under section 7 of the Natural Gas Act, which has made it necessary that a large number of notices of applications filed for certificates for public convenience be mailed. The natural gas investigation is another major reason for the increased cost of our penalty mail. It was necessary to postpone several of the hearings in this investigation in order that interested parties be allowed more time to furnish information. The postponement of the hearings necessitated mailing subsequent notices to all interested parties. While part of this cost was budgeted, it has exceeded our original estimate. The return to normal activities has greatly increased the mailing of all our publications which are sold to the public and the money deposited in the Treasury under miscellaneous receipts. Bills have been received from the Post Office Department for penalty mail in the amounts of: $1,098 for the first quarter and $1,390 for the second quarter. The estimated cost for the third quarter is $1,560, and for the fourth quarter, $1,452, which indicates a deficit of $1,000 for this fiscal year. Every effort has been made to exercise administratvie control in the use of penalty mail, but the greatly accelerated activities of the Commission make it necessary that this request be made. Otherwise, important work of the Commission will have to be delayed on account of insufficient penalty mail funds. WEDNESDAY, MAY 22, 1946. OFFICE OF DEFENSE TRANSPORTATION Mr. CANNON. The next item is for the Office of Defense Transportation contained in House Document No. 556. The CLERK. A limitation on printing and binding of $14,000 is contained in the current appropriation language. It is requested that the limitation be raised to $20,000 for the purpose of printing a report of their wartime activities, the cost of which is estimated at $6,000. The report is already prepared and it is stated that it will be of considerable value to have a permanent record. That is the sole purpose of this request. The information is ready for printing. Mr. TABER. All they want to do is to raise the limitation? This report consists of approximately 900 typewritten pages and should be printed, as other forms of duplication will be more expensive and less satisfactory. While we have sufficient funds in our appropriation to pay the cost of printing and binding, approximately $6,000, that part of our appropriation earmarked by the Congress for printing has been exhausted. Mr. CANNON. The limitation has been exhausted? The CLERK. Yes, sir. Mr. CANNON. In view of that fact, I hardly see why it is necessary to have them down here. Mr. TABER. I do not believe it is necessary. Mr. CANNON. The justification will be inserted in the record at this point. (The justification follows:) HOUSE COMMITTEE ON APPROPRIATIONS, (Attention of Mr. Pugh.) Washington 25, D. C. MAY 20, 1946. GENTLEMEN: Referring to the President's letter of May 4, 1946, to the Speaker of the House of Representatives enclosing draft of a proposed provision relating to an existing appropriation for the fiscal year 1946 for the Office of Defense Transportation reading as follows: "OFFICE OF DEFENSE TRANSPORTATION "Salaries and expenses: The limitation under the head 'Office of Defense Transportation' on the amount available for printing and binding fixed at $14,000 by the First Supplemental Surplus Appropriation Rescission Act, 1946, is hereby increased to $20,000." This increase in the limitation for printing and binding is necessary in order to permit the printing of a report about wartime transportation and the activities of the Office of Defense Transportation. The report, which has already been prepared, describes the transportation emergencies that arose during the war and discusses the steps taken by the carriers, the shippers, and the Government to meet those emergencies. It relates, among other things, facts about the economies that were instigated in order to make maximum utilization of the domestic transportation system. This report will be an invaluable guide to the carriers and to the Government agencies charged with their regulation during any transportation crisis that may occur in the future. In addition, it will be of interest to carriers and students of transportation in that it will aid in carrying over into peacetime some of the advancements made under the pressure of war. This report consists of approximately 900 typewritten pages and should be printed, as other forms of duplication will be more expensive and less satisfactory. While we have sufficient funds in our appropriation to pay the cost of printing and binding, approximately $6,000, that part of our appropriation earmarked by the Congress for printing has been exhausted. We respectfully request that the limitation on the amount that may be expended for printing and binding be raised by $6,000. Yours sincerely, JOSEPH L. WHITE, Executive Officer. WEDNESDAY, MAY 22, 1946. DEPARTMENT OF JUSTICE STATEMENTS OF S. A. ANDRETTA, ADMINISTRATIVE ASSISTANT TO THE ATTORNEY GENERAL; AND E. R. BUTTS, CHIEF, BUDGET AND PLANNING SECTION PERSONAL SERVICES, TAX DIVISION Mr. CANNON. We will take up now the items contained in House Document No. 550 for the Department of Justice. On page 9 of the bill, we have an item for an additional amount, for the fiscal year 1946, for personal services, for the Tax Division, $9,000. We had previously given you $696,060. You are now seeking an amount to cover deficit on account of terminal leave of $6,234 and for the employment of veterans during the remainder of the year of $2,706, a total of $9,000. Does that mean veterans returning from the service? Mr. ANDRETTA. Yes, sir. All of these items, Mr. Chairman, arise on the following basis: These are very small appropriations, strictly for salaries only. We have a very limited staff under most of them. They are the smaller appropriations of the Department. What has happened is that in trying to keep pace with reductions in force and bringing the veterans back has meant that heavy terminal leave payments have had to be made, which has encroached upon our appropriations to such an extent that we could not save this money. Ordinarily we have been able to take care of these appropriations for these small items up until this year under the 5 percent transfer clause. We do not have that this year at all. It went out on a point of order. Our regular subcommittee indicated to us that we would have to come back for this sort of money, which we are doing now, to straighten out these small items. Ordinarily we would have had it available elsewhere and could have transferred it from those other items. Mr. CANNON. Have you canvassed the situation thoroughly to see if there are not lapses sufficient to take care of these items? As a rule, there are lapses which do occur. Mr. ANDRETTA. That is what we hoped would happen in the course of the year, that we would have lapses. For instance, here is the pardon attorney's office, for which we are asking only $392. Every year we were able to take care of that office under the 5-percent transfer clause, because the estimate was rounded off in the first place in anticipation of lapses. But those things do not happen any more, particularly on a small roll, where everybody works the full year, such as the nine persons on that roll. The only way we could create lapses was for somebody to take leave without pay or by somebody being dropped from the roll and then not fill the position. We have created some savings in these appropriations through lapses, but not quite enough to come out. Mr. CANNON. Will you require the full amount of $9,000? Mr. ANDRETTA. Yes, sir; we will. We have calculated this as closely as we could. Mr. CANNON. And you have estimated up until the end of the fiscal year? Mr. ANDRETTA. Yes, sir. There is another thing in connection with the Tax Division, and that is that we have not had a head of the Tax Division for some time. He has now been confirmed be the Senate and is entering on his duties tomorrow. So we will have to take care of that salary which we had hoped we would be able to do through lapses. But he will have to go on the roll as well as his secretary. STATEMENT OF SURPLUSES IN OTHER ITEMS FOR THE DEPARTMENT Mr. TABER. Mr. Chairman, why would not the same rule apply here that we made for the Post Office Department? Why should not the Department of Justice tell us where they have surpluses that we might apply to these particular items instead of taking new money out of the Treasury? Mr. CANNON. Yes. Have you figured any surpluses that you might have in other items which are not covered by this estimate up until the end of the fiscal year? Mr. ANDRETTA. We do have, but as I understand the Budget preferred not to go through the transfer route but preferred sending in new items. We could have submitted items for transfer. Mr. CANNON. Will you submit for the record a tabulation showing what surpluses you have or will have to the end of the fiscal year, approximately? Mr. ANDRETTA. For example, last year we turned back $8,000,000. Mr. CANNON. Just include as part of your remarks a tabulation showing approximately how much you expect to turn back this year. Mr. ANDRETTA. Yes, sir; we shall be glad to do that. (The matter referred to is as follows:) Appropriation: Salaries: Estimated unobligated balances as of June 30, 1946 Estimated balance Office of Attorney General.. Claims Division, Department of Justice.. $1,000 5, 000 Traveling expenses, Department of Justice.. Penalty mail costs, Department of Justice.. Salaries and expenses, Customs Division, Department of Justice. Examination of Judicial Offices... Salaries and expenses: Lands Division, Department of Justice.. Federal Bureau of Investigation (national defense). Penal and Correctional Institutions.. Medical and hospital service, penal institutions. Support of United States prisoners.. Total. 1 Includes $300,000 to be rescinded, pending before Congress, H. R. 5604. In addition to the above $2,038,000 estimated unobligated balance, $5,803,382 was applied toward the cost of Public Law 106. Mr. TABER. Those are all the questions I have on this particular item, except I would like to know how much you have actually spent out of the previous appropriation. Mr. ANDRETTA. For the period ending May 17, the Tax Division on an actual encumbrance basis has an overcommitment of $5,341. That does not include, Mr. Taber, the anticipated return of some veterans, and we will have to figure on a certain amount of terminal leave that we are going to have to make from now to the end of the year. Mr. TABER. To take care of the people presently on the roll you have already paid out $5,341 more than you have? Mr. ANDRETTA. We have encumbered $5,341 more than we have on an annual basis. CRIMINAL DIVISION Mr. CANNON. We will take up the next item which is for personal services for the Criminal Division, $20,000, for the fiscal year 1946. This is in addition to the $911,300 previously appropriated. You are asking here for additional personnel from April 22 to June 30, 1946, for the Foreign Agents Registration Section, 10 attorneys, 6 political analysts, and 11 nonprofessional employees. What is the ground for requesting these additional services, Mr. Andretta? Mr. ANDRETTA. Mr. Chairman, when the Attorney General abolished the War Division, he abolished it effective January 1. time we advised our regular appropriations subcommittee that there were certain functions that would be continued. In fact, that appeared in the testimony before this committee when the $100,000 rescission hearing was had. At that time we indicated that certain functions were permanent functions irrespective of whether they were in the War Division or not. For example, the Foreign Agents Registration Act is still on the books and has to be enforced; likewise these other activities that we have, that you will come to later on, which were transferred to the Assistant Solicitor General. When that was broken up, in anticipation of the dissolution of the War Division, your committee took $100,000 away in the rescission bill and then $40,000 more was taken away by means of absorbing the cost of Public 106. So we lost $140,000. It so happens that terminal-leave payments in reducing force and dissolving this organization after January 1 took about $20,000. However, we did at that time, in the rescission bill, estimate that the continuing functions would run into substantial money, at least $25,000 for the rest of this year and we are now preparing a regular estimate for next year. We were not able when we submitted our regular estimates to anticipate what it was going to cost, and, at the time, we were hoping to reduce organization. Mr. CANNON. Have you anticipated any of these positions? Have the persons already been appointed? Mr. ANDRETTA. They have been on for some time. Mr. CANNON. All of them? Mr. ANDRETTA. Yes, sir. Mr. CANNON. Tell us what positions and how much they are to be paid. Mr. ANDRETTA. We have had 58 persons engaged in this particular work. Mr. CANNON. Include in your statement a tabulation of the positions and the pay for each position. You have it completely set up, then, at this time? Mr. ANDRETTA. Yes. Under the War Division it was 58 persons and when the Criminal Division took it over we reduced force and now we have determined that it will function with an organization of 27 for the rest of this year. Mr. CANNON. And you have all of the 27 now on the pay roll? |