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Mr. Bow. The case must have been well prepared.
Mr. Bow. I believe that is all, Mr. Chairman.
PROSECUTION OF JAMES HOFFA
Mr. CEDERBERG. General, how are you coming in regard to the prosecution of Jimmy Hoffa?
Mr. KENNEDY. Congressman, he has been indicted in Orlando, Fla. I will give you the background of it. He was indicted down there, Congressman, around the end of November of last year on an alleged fraudulent land scheme. There have been motions on that case, and it is supposed to come to trial within the next 2 or 3 months. That is all I could say now.
Mr. CEDERBERG. You have had a great deal of experience in this particular area because of your activities on the McClellan committee.
Mr. KENNEDY. Yes.
LABOR LEGISLATION ENABLING PROSECUTION
Mr. CEDERBERG. Are you convinced that there are sufficient laws on the books at the present time to take the necessary legal steps to prosecute as a result of these hearings?
Mr. KENNEDY. I do not think the laws are adequate dealing with this whole problem. That is why after our hearings we suggested legislation to deal with these problems and difficulties. I do not think they are anywhere near adequate to deal with the problem.
Mr. CEDERBERG. Do you anticipate requesting legislation to make them adequate?
Mr. KENNEDY. Of course, we did suggest legislation, and that legislation was passed in the Senate and it is now known as the LandrumGriffin bill. For the most part that legislation was suggested by our committee and refined by a committee of the Congress and a committee of the Senate and put in proper legislation. That legislation grew out of the work of our committee, and we felt that legislation was extremely necessary.
As far as further legislation is concerned, I think it is essential that we have further legislation in the field of pension and welfare funds. I think that is an extremely dangerous situation at the present time. The pension and welfare funds are far greater in volume than union funds, and yet the protection for the union member and the general public is completely inadequate.
May I talk off the record?
RELEASE GUIDANCE CENTERS
Mr. CEDERBERG. I am interested in your comments regarding the guidance centers. I think they could have some merit. However, are you sure that this is a job for the Department of Justice, or should it be done by HEW so as to take any possible stigma away from the individual who is being guided? As you are well aware, there are a number of activities in this field handled by HEW.
Mr. KENNEDY. The work has to be done while they are still under the supervision and control of the Department of Justice. The Bureau of Prisons is under us. Of necessity it must be under us. We are working out other programs, however, dealing with this whole question of juvenile delinquency in conjunction with HEW and Arthur Goldberg of the Labor Department. It should be a joint operation. This particular plan really has to be under the Department of Justice, but there are other things on a broader scale which would be under the three agencies.
Mr. CEDERBERG. I note that you have four centers planned, and they are to be pilot centers. Do you feel it is necessary to have four? Why could you not have one pilot center and then work out of it?
Mr. KENNEDY. I think four are necessary to get a cross section of the juveniles and not just take the group from one particular institution. I do not really think it would make a great deal of difference as far as the expense, but we will get a much better picture, Congressman, which I can report to you a year from now, as to what the situation is if we do it in a number of sections of the country.
Mr. Bow. Along that line, will you yield for one question ?
NUMBER OF JUVENILES WHO RETURN TO PRISON
Mr. Bow. You made a statement in your direct testimony about juveniles, that 50 percent came back. Is that a real figure or one you picked out of the air!
Mr. KENNEDY. It is a real figure. Mr. Bow. Fifty percent of the juveniles who have been confined in a Federal institution at some time come back?
Mr. KENNEDY. Yes.
CIVIL RIGHTS DIVISION ACTIVITIES
Mr. CEDERBERG. I was interested in your comment regarding the activities of the Civil Rights Division and the activities that you plan, especially in the area of voting and the actions which have been taken with regard to school segregation. These two seem to be the major problems at the present time. Is that correct?
Mr. KENNEDY. I would think they are. I think the voting is the primary problem. As far as the schools, at least at the present time it is mostly the action of the court and whatever steps are required of the Department of Justice after that. They are the ones who make the determination.
(Off the record.)
1961 JUSTICE DEPARTMENT BUDGET
Mr. Rooney. I have one or two more matters. First, I should like the record to indicate that the budget in the current fiscal year for the entire Department of Justice was in the amount $295,875,180. The total cost throughout the Department of the pay act increases of Federal employees came to how much?
Mr. Brown. $15,155,000.
OFFICE OF ALIEN PROPERTY
Mr. Rooney. One further question. This is with regard to the Office of Alien Property. What are your plans with regard to that?
Mr. KENNEDY. I have just started. I have had some conferences, Mr. Chairman. As to what we can do, I am not sufficiently familiar with its operations except on a general basis. Of course, I have had the big case, General Aniline, which takes a good bit of their time. Mr. ROONEY. Do you have new lawyers? Why is there delay? Mr. KENNEDY. I am studying that, too.
Mr. Rooney. It did not take the last new administration long to move on that one.
Mr. KENNEDY. You might be interested in this. The president of the company, who receives a salary of approximately $100,000, has been given a contract which is to extend for another, I guess, 10 years. A number of the officers, who were brought in over the period of the last 5 or 6 years, have been given contracts that go on for 15 or 20 years.
Mr. ROONEY. Who is the president!
Mr. KENNEDY. He has a rather nice position, speaking of patronage. The law firm also has done very well.
Mr. ROONEY. That is as good as anything I've heard here in a long time. Can they can get away with that?
Mr. KENNEDY. We are making a study of the whole situation at the present time. It has been suggested—and I do not know whether it is the best way of dealing with it—to move what is left of it into the Civil Division and let them take over control. Now it is answerable directly to me, and I do not think that is the best way to deal with the problem.
A lot of it is going to depend, the future of Alien Property—that Section is down to, I guess, about 17 lawyers at the present time_it is going to depend upon the Supreme Court decision as to whether they have the right to sell the General Aniline. I think we are going to give it some more attention and see what we can do with it. We would like to liquidate it, which is what should be done. It is a question of working it out the best way.
Mr. Rooney. If there are no further questions, I wish to express our thanks to the Attorney General for an informative and interesting discussion of the problems of the Department of Justice.
Mr. KENNEDY. Thank you, Mr. Chairman.
LEGAL ACTIVITIES AND GENERAL ADMINISTRATION
E. R. BUTTS, BUDGET OFFICER
Mr. ROONEY. Our first item is entitled "Salaries and expenses, general administration.” It appears at page 84 of the committee print and under tab 2 of the justifications. We shall at this point in the record insert pages 2–1 through 2–3 of the justifications.
(The pages referred to follow :)
SUMMARY ANALYSIS OF ESTIMATE
Salaries and expenses, general administration
4, 290.000 -50,000