ADMINISTRATIVE EXPENSE REQUIREMENTS The following table summarizes obligations for all objects of expense, after which appears an analysis of each object classification: Senator PASTORE. Is there any desire on the part of committee mem bers to have these people return? Senator ALLOTT. Not on my own part, Mr. Chairman. have to have these people back later anyway. Senator PASTORE. All right. You are all excused, and thank you very much for coming. We will (Whereupon, at 10 a.m., Wednesday, April 29, 1964, the subcommittee recessed, to reconvene at 8:30 a.m., Friday, May 1, 1964.) INDEPENDENT OFFICES APPROPRIATIONS FOR 1965 FRIDAY, MAY 1, 1964 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met, pursuant to recess, at 8:35 a.m., in room S-128, U.S. Capitol Building, Hon. Gordon Allott temporarily presiding. Present: Senators Allott, Magnuson, Hayden, and Young. INTERSTATE COMMERCE COMMISSION STATEMENT OF ABE MCGREGOR GOFF, CHAIRMAN; ACCOMPANIED BY CHARLES A. WEBB, VICE CHAIRMAN; HOWARD FREAS, COMMISSIONER; KENNETH H. TUGGLE, COMMISSIONER; RUPERT L. MURPHY, COMMISSIONER; LAURENCE K. WALRATH, COMMISSIONER; JOHN W. BUSH, COMMISSIONER; WILLIAM H. TUCKER, COMMISSIONER; PAUL J. TIERNEY, COMMISSIONER; BERNARD F. SCHMID, MANAGING DIRECTOR; ERNEST WEISS, ASSISTANT MANAGING DIRECTOR; J. NEIL RYAN, BUDGET AND FISCAL OFFICER; GEORGE J. LOTITO, ASSISTANT BUDGET AND FISCAL OFFICER; HAROLD D. McCOY, SECRETARY; ROBERT W. GINNANE, GENERAL COUNSEL; MATTHEW PAOLO, DIRECTOR, BUREAU OF ACCOUNTS; IRVING J. RALEY, DIRECTOR, BUREAU OF FINANCE; GEORGE F. LYNCH, CHIEF, SECTION OF LOANS AND FINANCIAL ANALYSIS, BUREAU OF FINANCE; ASA J. MERRILL, DIRECTOR, BUREAU OF INQUIRY AND COMPLIANCE; GEORGE A. MEYER, ASSISTANT DIRECTOR, BUREAU OF MOTOR CARRIERS; BERTRAM E. STILLWELL, DIRECTOR, BUREAU OF OPERATING RIGHTS; ALVIN L. CORBIN, DIRECTOR, BUREAU OF RATES AND PRACTICES; CHARLES W. TAYLOR, JR., DIRECTOR, BUREAU OF SAFETY AND SERVICE; EDWARD H. COX, DIRECTOR, BUREAU OF TRAFFIC; EDWARD MARGOLIN, DIRECTOR, BUREAU OF TRANSPORT ECONOMICS AND STATISTICS; LEE R. NOWELL, DIRECTOR, BUREAU OF WATER CARRIERS AND FREIGHT FORWARDERS; AND HIRAM H. SPICER III, CONGRESSIONAL LIAISON OFFICER APPROPRIATIONS 1964, ESTIMATES 1965 Senator ALLOTT. Gentlemen, we will start. Today we have the Interstate Commerce Commission. 31-706-64-pt. 1-30 463 We will have the Chairman, Mr. Goff, who is present, and the Vic Chairman, Mr. Webb, Mr. Freas, Mr. Tuggle, Mr. Murphy, Mr. Wal rath, Mr. Bush, Mr. Tucker, and Mr. Tierney and the names of othe members present will be inserted in the record. For the sake of the record the appropriations in 1964 were $24,670. 000, the 1965 budget is $25,850,000, and this represents an increase o $1,180,000. Personnel wise for 1963 the total number of permanent position were 2,467; for 1964, 2,471, for 1965, projected to 2,523. Your justification statement and comparative summaries will b placed in the record at this point. (The justification referred to follows:) JUSTIFICATION FOR APPROPRIATION FOR THE FISCAL YEAR ENDING JUNE 30, 196 The estimate for appropriation for the Interstate Commerce Commission fo the fiscal year 1965 is $25,850,000. The budget estimate for $25,850,000 provide a total of 2,508 positions, an increase of $1,180,000 and 41 positions over th appropriation for the current fiscal year. The following statement shows the total appropriation for the current fisca year, the budget estimate for 1965, and the comparison of 1964 with 196 detailed to show special activity limitation included in the 1964 Appropriatio Act. In requesting the increase of $1,180,000, the Commission has been guide primarily by the following significant factors: (a) Continuing increase in ou formal casework involving motor carriers; (b) unprecedented number of larg rail merger cases; (c) substantial increase in court cases involving enforce ment as well as defense of Commission orders; (d) increased demand for mor current and additional cost data; (e) need to substantially increase our researc activity; (f) the urgent requirements to increase our enforcement and compl ance programs; and (g) the increased costs which are uncontrollable. The increase of $1,180,000 is reflected in the following main categories: INCREASES 1. Full year for pay increase_ 2. For 41 additional positions-- $512, 49 264, 22 3. Cost of within-grade salary advancements, overtime, terminal leave, and cost-of-living allowance__. 383, 03 4. Health benefits, life insurance, and retirement contributions related to items 1, 2, and 3 above, and accident compensation----. 81, 73 5. Equipment----. 48, 63 Office equipment for additional employees and replacement of equipment and automobiles. 6. Rent, communications, and utility services-- 8, 24 For increased communication costs (telegraph, telephone, and official mail). 9. Office supplies and transportation of things__. For office supplies for additional employees and to bring stock to normal level. Due to providing field employees with GSA rental vehicles in lieu of reimbursement for use of privately owned automobiles on official business. Total decrease___ Net increase_-_ $31,000 1, 285, 353 73, 633 31, 720 105, 353 1, 180, 000 During the past year the Commission continued to take significant steps for the improvement of its organization, operation, and procedures. The Commission completed a thorough study in depth of the whole fabric of its field organization, with the objective of eliminating for the future any shortcomings of the present organizational structure. An extensive realinement of its field establishment was put into effect on January 1, 1964. Seven regions have been established, in lieu of the 13 formerly in effect, to serve a basic geographical pattern for all ICC field activities. All field forces will be organized into a single staff and the field establishment will be one major organizational component for management purposes, including budget development and administration, personnel administration, program evaluation, manpower utilization, management improvement, and administrative supervision and support. This extensive field reorganization is the result of the Commission's constant review and evaluation of its operations and procedures and its internal organization, to assure that its workload is handled as effectively, efficiently, expeditiously, and economically as possible. While it is not possible, at this time, to evaluate manpower productivity. The Bureau of Rates and Practices was reorganized into four organizational sections instead of the former six sections. The purpose of the reorganizathe effectiveness of this field reorganization, it is expected to produce increased tion was to provide improved supervision and closer control over the increasing number of complex rate cases being presented to the Commission for resolution. On October 31, 1963, a plan for reorganization of the Bureau of Accounts was approved. The purpose of the reorganization was to obtain more effective utilization of the manpower resources available. Savings resulting from the reorganization are estimated at $28,000 on an annual basis. In recognition of the Commission's responsibility to fully utilize the rapidly developing advantages of data processing and related management sciences in carrying out its regular responsibilities to the public, a new organizational unit— the Section of Systems Development-was created in the Office of the Managing Director in April 1963, in order to place increased emphasis on these functions. The Section was established within the existing personnel ceiling by combining the staff of the automatic data processing study team with the staff of the Systems and Methods Branch. A major advantage expected to accrue from this merger is a closer coordination between development and improvement of management control systems and their practical application and operation. The Commission's overall analysis of its data collection activities is continuing. Our Staff Committee on Reduction of Paperwork Burden, which was created in 1959, has reviewed 98 reports. As a result, 20 reports were discontinued or consolidated with others; reporting incidence of 7 reports was changed from monthly to quarterly; and data content of 11 reports was reduced. The cumulative efforts of the foregoing has resulted in carrier respondents being relieved from filing some 453,000 reports annually including elimination of more than 33.8 million reportable items. Examination of our annual reporting requirements has thus far resulted in a reduction approximating 22.800 pages of these reports. To put more emphasis on this area of our data collection activities, the Commission obtained the services of the former Director of the Bureau of Accounts, who was, until his retirement at the end of 1962, an original member of the staff committee. Manpower savings, resulting from decreases in workload incident to examining and processing carrier reports, have been |