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HEARINGS

BEFORE THE

COMMITTEE ON APPROPRIATIONS

UNITED STATES SENATE

EIGHTY-FIFTH CONGRESS

SECOND SESSION

ON

H. R. 13450

AN ACT MAKING SUPPLEMENTAL APPROPRIATIONS FOR
THE FISCAL YEAR ENDING JUNE 30, 1959, AND

FOR OTHER PURPOSES

Printed for the use of the Committee on Appropriations

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1958

28995

COMMITTEE ON APPROPRIATIONS

CARL HAYDEN, Arizona, Chairman RICHARD B. RUSSELL, Georgia

STYLES BRIDGES, New Hampshire DENNIS CHAVEZ, New Mexico

LEVERETT SALTONSTALL, Massachusetts ALLEN J. ELLENDER, Louisiana

MILTON R. YOUNG, North Dakota LISTER HILL, Alabama

WILLIAM F. KNOWLAND, California JOHN L. MCCLELLAN, Arkansas

EDWARD J. THYE, Minnesota A. WILLIS ROBERTSON, Virginia

KARL E. MUNDT, South Dakota WARREN G. MAGNUSON, Washington

MARGARET CHASE SMITH, Maine SPESSARD L. HOLLAND, Florida

HENRY C, DWORSHAK, Idaho JOHN STENNIS, Mississippi

EVERETT MCKINLEY DIRKSEN, Mlinois LYNDON B. JOHNSON, Texas

CHARLES E, POTTER, Michigan
JOHN O. PASTORE, Rhode Island

IRVING M. IVES, New York
EVERARD H. SMITH, Clerk

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V. 24

DOCUMENTS

DEPT.

THE SUPPLEMENTAL APPROPRIATION BILL, 1959

TUESDAY, JULY 22, 1958

UNITED STATES SENATE,
PUBLIC WORKS SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS,

Washington, D. C. The subcommittee met, pursuant to notice, at 2 p. m., in room F-82, the Capitol, Hon. Lister Hill, chairman of the subcommittee, presiding:

Present: Senators Hill, Ellender, Robertson, Anderson, and Saltonstall. Also present: Senators Dworshak and Barrett.

ATOMIC ENERGY COMMISSION

OPERATING EXPENSES

STATEMENTS OF JOHN F. FLOBERG, HAROLD S. VANCE AND JOHN S. GRAHAM, COMMISSIONERS; PAUL F. FOSTER, GENERAL MANAGER; A. A. WELLS, ACTING GENERAL COUNSEL; DON S. BURROWS, CONTROLLER; J. C. JOHNSON, DIRECTOR, DIVISION OF RAW MATERIALS; E. J. BLOCH, DIRECTOR, DIVISION OF PRODUCTION; BRIG. GEN. A. D. STARBIRD, DIRECTOR, DIVISION OF MILITARY APPLICATION; W. K. DAVIS, DIRECTOR, DIVISION OF REACTOR DEVELOPMENT; DR. J. H. WILLIAMS, DIRECTOR, DIVISION OF RESEARCH; DR. C. L. DUNHAM, DIRECTOR, DIVISION OF BIOLOGY AND MEDICINE; DR. A. J. VANDER WEYDEN, ACTING DIRECTOR, DIVISION OF INTERNATIONAL AFFAIRS; E. R. GARDNER, DIRECTOR, OFFICE OF SPECIAL PROJECTS; O. S. SMITH, DIRECTOR, DIVISION OF ORGANIZATION AND PERSONNEL; M. SALISBURY, DIRECTOR, DIVISION OF INFORMATION SERVICES; J. A. DERRY, DIRECTOR, DIVISION OF CONSTRUCTION AND SUPPLY; F. K. PITTMAN, DIRECTOR, OFFICE OF INDUSTRIAL DEVELOPMENT; F. J. MCCARTHY, Jr., ASSISTANT CONTROLLER FOR BUDGETS; AND J. A. MILLER, DEPUTY ASSISTANT CONTROLLER FOR BUDGETS

OPENING STATEMENT BY CHAIRMAN Senator Hill. The committee will be in order. This

year the appropriations for the Atomic Energy Commission are contained in the supplemental appropriation bill for 1959. The bill was reported last Friday and is presently being considered by the House. We are therefore hearing from you gentlemen of the Atomic Energy Commission on the basis of the bill as reported to the House. If any changes are made in the bill on the floor of the House, you will supplement your request in statements accordingly. If you see fit to make some change in your statements, we will have you

do so.

367

As usual we will have the reporter take the proceedings in full and then the Commission will review the transcript for the classified material in order that we may print a hearing as fully as it is possible to release.

SUMMARY STATEMENTS

In that connection we will place in the record the summary statements from the budgetary documents and any additional information that may be helpful to the committee.

(The information referred to follows:)

GENERAL STATEMENT FOR OPERATING EXPENSES

ESTIMATE OF APPROPRIATION

This book contains the budget estimates for the appropriation “Operating expenses, Atomic Energy Commission” for fiscal year 1959. The estimates provide for total obligations of $2,467,594,000 to be funded by (1) a new appropriation of $2,418 million and (2) the reappropriation of $19,594,000 in unobligated balances remaining at the end of fiscal year 1958.

ESTIMATES OF COSTS AND OBLIGATIONS

The estimates for the appropriation, "Operating expenses,” are stated in terms of accrued costs for each of the AEC's 11 operating programs. “Accrued costs” denotes the actual application of labor, materials, equipment, and services to the program during the year, but excludes depreciation of facilities used in the operation. The AEC does, however, maintain accounts for depreciation for the purpose of determining total costs of production and for use in establishing prices for services rendered or products sold to others.

Revenues are obtained from the operation of AEC-owned communities and housing, from the sale of products and services performed for others, and from other miscellaneous sources. These revenues are identified and summarized under the section titled, “Revenues applied." Revenues are deducted from the total of the accrued costs for the operating programs in determining the amount of the net costs to be financed by congressional appropriations.

The net costs of operation are reconciled to the total obligations to be incurred during the year by estimating the buildup or decrease during the year of the resources that are to be applied to future years' operations. These estimates are included in the section titled, “Increase or decrease (-) in selected resources" and include inventories and undelivered orders.

The table on the next page summarizes the accrued costs for each program and the total obligations for the fiscal years 1957, 1958, and 1959. The detailed justifications beginning on page 13 present the programs in the same order as they appear on this sumn

ry table.

Summary of accrued operating costs by program reconciled to obligations

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