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APPROPRIATION BILL FOR 1944

HEARINGS

BEFORE THE

SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS
HOUSE OF REPRESENTATIVES
SEVENTY-EIGHTH CONGRESS

FIRST SESSION

ON THE

NATIONAL WAR AGENCIES
APPROPRIATION BILL FOR 1944

PART 1
OFFICE OF CENSORSHIP

OFFICE OF CIVILIAN DEFENSE
OFFICE OF COORDINATOR OF INTER-AMERICAN AFFAIRS

OFFICE OF DEFENSE TRANSPORTATION
OFFICE OF SCIENTIFIC RESEARCH AND DEVELOPMENT

OFFICE OF WAR INFORMATION

WAR PRODUCTION BOARD
WAR SHIPPING ADMINISTRATION

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COMMITTEE ON APPROPRIATIONS
CLARENCE CANNON, Missouri, Chairman

CLIFTON A. WOODRUM, Virginia JOHN TABER, New York
LOUIS LUDLOW, Indiana RICHARD B. WIGGLESWORTH, Massachusetts
MALCOLM. C. TARVER, Georgia WILLIAM P. LAMBERTSON, Kansas
JED JOHNSON, Oklahoma D. LANE POWERS, New Jersey
J. BUELL SNYDER, Pennsylvania J. WILLIAM DITTER, Pennsylvania
EMMET O'NEAL, Kentucky ALBERT E. CARTER, California
JAMES M. FITZPATRICK, New York CHARLES A. PLUMLEY, Vermont
LOUIS C. RABAUT, Michigan EVERETT M. DIRKSEN, Illinois
JOE STARNES, Alabama ALBERT J. ENGEL, Michigan
JOHN H. KERR, North Carolina KARL STEFAN, Nebraska
GEORGE H. MAHON, Texas FRANCIS CASE, South Dakota
HARRY R. SHEPPARD, California FRANK B. KEEFE, Wisconsin
BUTLER B. HARE, South Carolina NOBLE J. JOHNSON, Indiana
ALBERT THOMAS, Texas - ROBERT F. JONES, Ohio
JOE HENDRICKS, Florida REN F. JENSEN, Iowa
MICHAEL J. KIRWAN, Ohio H. CARL ANDERSEN, Minnesota
JOHN M. COFFEE, Washington HENRY C. DWORSHAK, Idaho
W. F. NORRELL, Arkansas WALTER C. PLOESER, Missouri

ALBERT GOIRE, Tennessee

ELMER H. WENE, New Jersey

CLINTON P. ANDERSON, New Mexico

JAMIE L. WHITTEN, Mississippi

THOMAS J. O'BRIEN, Illinois

JAMES M. CURLEY, Massachusetts
MARCELLUs C. SHEILD, Clerk

SUBCOMMITTEE ON DEFICIENCIES

CLARENCE CANNON, Missouri, Chairman

CLIFTON A. WOODRUM, Virginia JOHN TABER, New York
LOUIS LUDLOW, Indiana RICHARD B. WIGGLESWORTH, Massachusetts
J. BUELL SNYDER, Pennsylvania WILLIAM P. LAMBERTSON, Kansas
EMMETT O'NEAL, Kentucky J. WILLIAM DITTER, Pennsylvania

LOUIS C. RABAUT, Michigan
JED JOHNSON, Oklahoma

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NATIONAL WAR AGENCIES APPROPRIATION BILL, 1944

HEARINGS CONDUCTED BY THE SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS. HOUSE OF REPRESENTATIVES, IN CHARGE OF DEFICIENCY APPROPRIATIONS, MESSRS. CLARENCE CANNON (CHAIRMAN), CLIFTON A. WOODRUM, LOUIS LUDLOW, J. BUELL SNYDER, EMMET O'NEAL, LOUIS C. RABAUT, JED JOHNSON, JOHN TABER, RICHARD B. WIGGLESWORTH, WILLIAM P. LAMBERTSON, AND J. WILLIAM DITTER, ON THE DAYS FOLLOWING, NAMELY:

THURSDAY, APRIL 15, 1943.

OFFICE OF DEFENSE TRANSPORTATION STATEMENTS OF JOSEPH B. EASTMAN, DIRECTOR; BRIG. GEN.

CHARLES D. YOUNG, DEPUTY DIRECTOR; JOSEPH L. WHITE, EXECUTIVE ASSISTANT; V. V. BOATNER, DIRECTOR, RAILWAY TRANSPORT; H. F. MCCARTHY, DIRECTOR, TRAFFIC MOVEMENT; GUY A. RICHARDSON, DIRECTOR, LOCAL TRANSPORT; OTTO F. BEYER, DIRECTOR, TRANSPORT PERSONNEL; P. W. HOLMES, BUDGET AND FISCAL OFFICER; J. L. ROGERS, DIRECTOR, MOTOR TRANSPORT; A. S. McEVOY, ASSOCIATE DIRECTOR, FIELD OPERATIONS, MOTOR TRANSPORT; S. C. SKEELS, HEAD ADMINISTRATIVE OFFICER, OFFICE OF DEFENSE TRANSPORTATION; AND COL. LEO M. NICOLSON, DIRECTOR, STORAGE DIVISION

SALARIES AND EXPENSES

The CHAIRMAN. Mr. Eastman, we have before us an estimate in House Document No. 138 for the Office of Defense Transportation, as follows:

EXECUTIVE OFFICE OF THE PRESIDENT

OFFICE FOR EMERGENCY MANAGEMENT

Office of Defense Transportation Salaries and expenses, Office of Defense Transportation-For all necessary expenses of the Office of Defense Transportation, including traveling expenses (not to exceed $1,500,000, including reimbursement, at not to exceed 3¢ per mile, of employees for official travel performed by them in privately owned automobiles within the limits of their official stations) ; printing and binding (not to exceed $250,000, including not to exceed $10,000 for printing and binding outside the continental limits of the United States without regard to provisions of law governing printing and binding (44 U, S. C. 111)); $14,900,000.

The amount of this estimate is $14,900,000. You received for 1943, under the first supplemental national defense appropriation, $7,000,-..

000; under the second national defense appropriation, $5,000,000, 11, round figures; and in the allocation from the Office of Emergency Management, $2,000,000. That is, you received a total for the year 1943 of $14,416,515. The estimate which comes to us this morning asks for an increase of $483,485 over the amount granted for this purpose for the current year. Will you give us a statement on that, Mr. Eastman?

GENERAL STATEMENT

Mr. EASTMAN. I will make a general statement, Mr. Chairman, quite brief, and then, of course, you and the other members of the committee . ask any questions which go to the things you may be in some doubt about.

At the beginning of this year I asked all the directors of my divisions to study very carefully their expenditures for the purpose of cutting them down in every possible way. In addition to that, I appointed a committee consisting of General Young, my Deputy Director, Mr. White, my executive assistant, and Mr. Skeels, my administrative officer, to sit down with each director and go over the proposals with respect to the next fiscal year.

That was done, with the result that many cuts were made. But when we went before the Bureau of the Budget, we still were asking for more than we had last year. I told the Bureau of the Budget would be very glad, indeed, if they could find a basis for cutting us down, because I wanted to spend as little money as possible. They did cut us down, they made their estimate, as I understand it, on the basis of the expenditures which were actually in sight. They did not allow, as we did, for expenditures which we believe may well be necessary during the coming year, but of which we are not yet sure.

We are very glad to try to make our expenditures conform to what they have recommended and will do our level best to make them meet our needs. The Bureau of the Budget, however, did give us permission to tell the committee why we think it may possibly be necessary to come back for more.

APPROPRIATIONS AND EXPENDITURES FISCAL YEAR 1943

As you have said, there was more than one appropriation last year, and on the basis of those appropriations, as you also have said, we could have spent $14,416,515. However, if you figure it another way, if you take the appropriation which was finally granted and put that on an annual basis that amount would have been $16,826,736. In other words, the $14,416,515 was partly on the lower basis covered by the first appropriation, and if you reduce the final amount to an annual basis, you get this figure of nearly $17,000,000. So that on one basis, the Bureau of the Budget is recommending about $500,000 more than last year, and on another basis it is recommending nearly $2,000,000 less than last year.

When I came before the committee last year, I told you we would keep our expenditures on as low a basis as possible, and that we would not expend all that we were allowed, if we did not have to. As a matter of fact, we have kept our expenditures within such

bounds.

In comparison with the $14,416,515 which we could have spent, our actual estimated expenditures for the year will be $13,035,773. Putting the average expenditures for March on an annual basis, the amount is $13,341,564. So that we are below, on actual expenditures, what we could have spent, and taking the last monthly basis (March) and putting that on an annual basis, the amount recommended by the Bureau of the Budget for the next fiscal year allows an apparent leeway of over $1,000,000.

However, upon analysis and I have had some difficulty with that analysis—that additional amount is not in personnel, which actually shows a decrease of $50,000. Most of it relates to other expenditures, for travel, and so forth. That apparently is accounted for by the fact that our March expenditures for travel were on an abnormally low basis. So that there is not much room for expansion in the proposed Budget compared to what we now have.

WORK OF THE OFFICE OF DEFENSE TRANSPORTATION

I should like to make a few general remarks about our work. I think you understand that we cover every form of domestic transportation, not only the for-hire carriers, the common and contract carriers, but also the private carriers. And we have some responsibility even for private automobiles.

In addition to that, we have a very large responsibility with respect to the storage situation throughout the country, in connection with all the Government departments.

Our work relates chiefly to the operation of these transportation facilities, and in one case we actually operate a railroad; that is the Toledo, Peoria & Western. We are managing and operating that railroad.

In addition to the matter of operation, we have the problem of procuring materials and equipment for all of the transportation agencies, including private automobiles, through the War Production Board. We have duties in connection with the negotiation of rates. We cannot fix rates, but we have the duty of negotiating rates for traffic in which the Government has an interest, where that appears necessary under war conditions. And we have all the problems related to manpower in connection with all these forms of transportation.

The basic problem, in brief, is to make transportation facilities which are depleted, compared to pre-war conditions, carry by far the greatest transportation load in the history of the country. When I say “depleted,” I mean we have lost the use of the intercoastal and most of the coastwise ships, and because of the rubber situation we have list to some extent the use of highway automotive facilities.

In its struggle with that problem, up to date, transportation, ai you know, has not failed. It has met the sitaution adequately, notwithstanding the shortages of rubber, the shortages of critical materials other than rubber, the shortage in the East of gasoline, the shortage of repair parts, and now a shortage, which is becoming every day more critical, in manpower.

VOLUNTARY HELP IN TRANSPORTATION WORK

In addition to our own forces, I may say that we have had a great deal of aid from voluntary sources. In the case of our local transport

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