(The material referred to follows:)

Chronology of events relating to GAO audit on 1959 and 1960 cotton purchase programs

Sept. 13, 1962.

FBI report..
do.
.do..

Do.

Do.
Do.

Department of Justice. General Counsel requested status of

Department of Justice. General Counsel

USDA.

Office of Adminis-
trator.

matter and whether further assistance from USDA is required. A cotton Company.

Do.
Do.

In answer to a letter from General
Counsel dated Sept. 4, 1962. The
Department of Justice advised that
Anti-Trust Division had received
copies of audit report and bid ab-
stracts from USDA and that Depart-
ment of Justice was continuing
investigation with Anti-Trust Divi-
sion and Criminal Division. They
also stated that USDA would be
called upon as the need arose.
General Counsel advised of response
from Department of Justice.
A cotton company.

Covered details of survey made by
former Internal Audit Division-
ASCS of bid openings on CCC
owned cotton under 1959 cotton
purchase program.

A cotton company.

Do.

Do.

Do.

Do.

Do.
Do.

The Criminal Division of Department of Justice advised that no prosecution could be made under Criminal Division statutes and that the case was referred to Anti-Trust Division.

CONSOLIDATED APPROPRIATION FOR ADMINISTRATIVE EXPENSES

Mr. WHITTEN. Mr. Godfrey, I wish you would describe the various programs now covered by this new consolidated appropriation created last year, and indicate the amounts for each fiscal year, 1963 and 1964. We would be glad to have a table inserted in the record at this point. Mr. MICHEL. Is that with the amount?

Mr. GODFREY. We can put the amounts in.

Mr. WHITTEN. It might be done for 1963 and 1964. (The tables are as follows:)

Expenses, Agricultural Stabilization and Conservation Service

1 The increase of $11,408,000 in appropriated funds is composed of-
(1) Funds to complete measurement of acreage designated as diverted under the 1963 feed
grain program and to make a second farm visit, on a spot check basis, to determine
ultimate use of acreage designated as diverted..

$3,136,000

(2) Funds for work on the 1964-65 wheat programs comparable to that financed by advances of Commodity Credit Corporation capital funds in fiscal years 1962 and 1963. 8, 272, 000

Total..

11, 408, 000

The decrease of $30,000,000 eliminates advances of Commodity Credit Corporation capital funds to finance work in connection with the feed grain and wheat stabilization programs. At the present time there is no legislation authorizing a program for the 1964 crop of feed grains and funds for work to be done in fiscal year 1964 on the 1963 feed grain program, and the 1964 and 1965 wheat programs are included in the appropriation request.

Increased pay and postal costs pursuant to Public Law 87-793.

* Increase of $780,000 to provide funds for additional workload resulting from a change in the marketing year to a calendar-year basis. Payments for the 1962 and 1963 marketing years (the latter a 9-month period) are to be made in fiscal year 1964. In addition, payments will be made for the first time under the mohair program.

Net decrease of $28,500 in transfer of CCC funds for National and State offices consisting of-
(1) An increase, primarily for secretarial assistance to State defense boards...
(2) Decrease for expenses in connection with self-help stabilization programs, the responsi-
bility for which has been transferred to the Agricultural Marketing Service...
Total..

+$22, 500

-51,000

-28, 500

The Department of Agriculture and Related Agencies Appropriation Act, 1963, authorized the transfer of certain CCC funds to the appropriation "Expenses, Agricultural Stabilization and Conservation Service." However, the authorization did not include funds for supply and foreign purchase, International Wheat Agreement, sale of stockpile cotton, and that portion of Wool Act administrative funds, which formerly were direct allotments. The estimate proposes that these funds be included in the transfer authorization in order to further streamline accounting, fiscal, and budgetary work in line with the intent of the Congress.

JUSTIFICATION OF THE ESTIMATES

Mr. WHITTEN. We shall insert now the summary tables and status report for this appropriation from the justifications. (The material follows:)

(a) Expenses, Agricultural Stabilization and Conservation Service

NOTE. The budget estimates propose an increase in direct appropriations of $19,521,000 over the amount appropriated in 1963. This is offset by a decrease of $28,772,000 in the transfer from CCC funds. The following justifications are presented on the basis of funds available and reflect a decrease of $14,092,463. The 1963 column reflects the proposed use of $4,841,863 of funds from other accounts (primarily loan service charges) for increased pay and postal costs in that year.

Summary of increases and decreases, 1964, on basis of available funds

Increase in direct appropriation for administering the
wheat stabilization program (partially financed with
CCC funds in 1963).
Decrease due to expiration of the feed grains land diver-
sion program and financing of the wheat stabilization
by direct appropriation...

Increase for land-use adjustment program under sec.
101 of the Food and Agriculture Act of 1962.
Net decrease for administering Commodity Credit
Corporation activities (other than feed grain and
wheat stabilization programs).

Increase in the contingency reserve to enable the Com-
modity Credit Corporation to meet unforeseeable
increases in workload.

Increase for aerial photography, printing, and other expenses previously paid from program funds. Decrease to reflect estimated savings due to installation of a centralized data processing operation (MODE) for payroll and personnel data..

Subtotal......

Increased pay costs pursuant to Public Law 87–793.
Increased postal costs pursuant to Public Law 87-793..

Subtotal, increased pay and postal costs.

Total net decrease..