COMMITTEE ON GOVERNMENT OPERATIONS WILLIAM L. DAWSON, Illinois, Chairman CHET HOLIFIELD, California L. H. FOUNTAIN, North Carolina 1 JIM WRIGHT, Texas FERNAND J. ST GERMAIN, Rhode Island FLORENCE P. DWYER, New Jersey 68, 109 Bright, Dr. R. Louis, Associate Commissioner for Research, Office of Howe, Harold, II, Commissioner of Education, Office of Education, Department of Health, Education, and Welfare-- Warner, O. Ray, Division of Plans and Supplementary Centers, Bureau of Elementary and Secondary Education, Office of Educa- tion, Department of Health, Education, and Welfare... Wickline, Lee, Chief, Innovative Centers Branch, Office of Education, Department of Health, Education, and Welfare.. Letters, statements, etc., submitted for the record- Bright, Dr. R. Louis, Associate Commissioner for Research, Office of Education, Department of Health, Education, and Welfare: Application of Federal conflict-of-interest statutes and regulations to employees of Research and Development Centers, statement. Bureau of Research obligations by program, fiscal year 1967... Estes, Dr. Nolan, Assistant Commissioner for Elementary and Second- ary Education, Department of Health, Education, and Welfare: Biographical data concerning Office of Education witnesses_ Circumstances of approval of mini-grant proposals by Charles Information concerning the Kettering Foundation_ 124 Title III grant proposals approved during the last 2 weeks of 1967, Travel expense breakdown for Division of Plans and Supplement- Fountain, Hon. L. H., a Representative in Congress from the State of Article from the Washington Post, June 18, 1967, entitled “A Text of title 18, section 208, United States Code. Letters, statements, etc.-Continued Howe, Harold, II, Commissioner of Education, Office of Education, Admission policies of Kamehameha schools, statement_ Office of Education involvement with the Kettering Foundation, Office of Education position on hiring of project applicants as Ownership of Westinghouse stock, statement.. Naughton, James R., counsel, Intergovernmental Relations Sub- Excerpt from minutes of Advisory Committee on Supplementary Page 168 125 142 144 153 140 167 93 Letter from A. A. Gruber, superintendent, Joint School District 123 APPENDIXES Appendix 1.-Correspondence between Intergovernmental Relations 171 178 Appendix 3.-Expenses and honorariums, directors and speakers, Hawaiian seminars... 187 Appendix 4.-Proposed agreement between Office of Education and 188 Appendix 5.-Correspondence between R. Louis Bright and Alanson W. 192 193 Appendix 7.-HEW memorandum concerning Westinghouse attempts to obtain patent rights.. 210 Appendix 8.-HEW press release announcing appointment of R. Louis 212 Appendix 9.-Former employees of the Office of Education now associated with organizations receiving OE grants or contracts_ 213 Appendix 10.-Conflict-of-interest questions which have come to the attention of the Office of Education. 215 Appendix 11.-March 19, 1967, letter from Gary Orfield to Commissioner 216 Appendix 12.-April 18, 1967, letter from the National Congress of 217 Appendix 13.-Correspondence concerning appointment of Charles F. Appendix 14.-Report by the General Accounting Office relating to Appendix 16.-Correspondence between Commissioner Howe and Ray 218 221 226 228 OPERATIONS OF THE OFFICE OF EDUCATION THURSDAY, JUNE 29, 1967 HOUSE OF REPRESENTATIVES, INTERGOVERNMENTAL RELATIONS SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D.C. The subcommittee met at 10:10 a.m. in room B-374, Rayburn House Office Building, the Honorable L. H. Fountain (chairman of the subcommittee) presiding. Present: Representatives Florence P. Dwyer and Robert Dole. Staff members present: James Naughton, subcommittee counsel; Thomas Smith, minority staff; and Delphis Goldberg, professional staff member. Mr. FOUNTAIN. Let the committee come to order and the record show that a quorum is present. Under the rules of the House of Representatives, the Committee on Government Operations has responsibility for studying the operation of Government activities at all levels with respect to economy and efficiency. That responsibility, insofar as it relates to the Department of Health, Education, and Welfare, and certain other departments and agencies, has been delegated by the committee to its Intergovernmental Relations Subcommittee. During the past few years, funds expended for activities administered by the U.S. Office of Education have increased tremendously. The increased amounts being spent by the Office of Education consist, to a considerable degree, of funds made available for grants to State and local educational agencies, to educational institutions, and— in some cases to other organizations. Our hearing today is for the purpose of examining the manner in which the Office of Education is administering these grant programs, with particular emphasis on grants made to support supplementary educational centers and services under title III of the Elementary and Secondary Education Act of 1965. Today's hearing will be particularly concerned with the use of title III funds for the purpose of cosponsoring a series of seminars in Hawaii next month and with possible conflict of interest questions arising in connection with title III grant funds. I might mention that we had originally planned to take some testimony today concerning a conflict of interest question involving a grant application under which a substantial amount of money would go to Westinghouse under a subcontract with a school district in Wisconsin. However, the Commissioner of Education has assured me that no action to approve this application will be taken before August 1 at the earliest. Consequently, it is expected that we will take that matter up at another hearing after the congressional recess instead of discussing it today. Before we begin asking questions, I think it might be helpful if each of our witnesses would identify himself for the record and give a very brief statement of any responsibilities he may have for administering grant programs authorized under title III of the Elementary and Secondary Education Act of 1965. We have with us as the lead witness today Dr. Nolan Estes, Associate Commissioner for Elementary and Secondary Education, and along with him is Norman E. Hearn, Acting Assistant Director, Division of Plans and Supplementary Centers, Frederick H. Hundemer, Chief, Elementary and Secondary Section, Contracts Branch, and Albert L. Alford, Assistant Commissioner for Legislation. Dr. ESTES. Thank you, Mr. Chairman, and members of the subcommittee. We are delighted to be here today. Let me just briefly introduce these gentlemen and tell what their responsibilities are before we go into our formal responsibilities. To my left, we have Albert L. Alford, who is the Assistant Commissioner for Legislation for the Office of Education. He is a staff officer and assists us in a number of activities with regard to legislation. To my right, we have Mr. Norman Hearn, who is the Acting Assistant Director, Division of Plans and Supplementary Centers. He is responsible for assisting in the administration of title III of the Elementary and Secondary Education Act as well as title III and title V-A of the NDEA and of the Arts and Humanities Act. Frederick H. Hundemer is to my left and is the Chief of the Contract Section in the Contract Office which is in the Commissioner's Office. He is responsible for the negotiations of all the contracts in our bureau and particularly as relates to this hearing, the contracts relating to title III of the Elementary and Secondary Education Act. Mr. FOUNTAIN. Thank you, Doctor. You might submit for our record further details concerning their qualifications, educational background and experience so people who will read it will know the training and experience of these men. (The information was supplied as follows:) BIOGRAPHICAL SKETCH OF DR. NOLAN ESTES, ASSOCIATE COMMISSIONER, BUREAU OF ELEMENTARY AND SECONDARY EDUCATION Dr. Nolan Estes, Associate Commissioner of the Bureau of Elementary and Secondary Education since January 1967, first came to the U.S. Office of Education in 1965 as a Ford fellow Washington intern in education. In April 1966, he became Director of the Division of Plans and Supplementary Centers which administers five Federal assistance programs including the innovative PACE program under title III of the Elementary and Secondary Education Act. Six months later, he was appointed Deputy Associate Commissioner of the Bureau of Elementary and Secondary Education and held this position until January. A native of Texas, Dr. Estes was born on June 22, 1930. He was graduated from the University of Corpus Christi with a bachelor of science degree shortly before his 20th birthday, and received his master of education from the University of Texas in 1954. He did graduate work at Baylor University in 1956 and earned the doctor of education degree from Harvard in 1959. He has since done postdoctoral work at Columbia University Teachers College in New York City. The Washington internship followed 3 years in which Dr. Estes was superintendent of schools in Riverview Gardens, Mo. Formerly, from 1959 to 1962, he had been assistant superintendent for instruction in Chattanooga, Tenn. He also |