you have an income, and we are merely authorizing you to utilize the money that you received to this extent.

Mr. BOUTIN. That is correct.

Senator MAGNUSON. All right. On 52 you have got the average employment of 1964 as 496.6 people, and 1965, 510.8, but your total employment in that service is 530.6 in 1964 and 542 in 1965.

Mr. BOUTIN. Here we are talking man-years.

Senator MAGNUSON. Man-years.

Mr. TURPIN. Mr. Chairman, you were looking at the column which relates only to the field. The total

Senator ALLOTT. What page are we on?

Senator MAGNUSON. Fifty-two.

Mr. BOUTIN. Actually we are talking about 652.9 man-years in 1964, 664.3 man-years in 1965; total.

Senator MAGNUSON. Oh, yes; I see, because that is the total. So you are up a very slight amount.

Mr. BOUTIN. 11.4 man-years.

Senator MAGNUSON. And that would-ratiowise that would coincide with the increase in activities.

Mr. BOUTIN. Actually we are absorbing much of this through increased productivity.

Senator MAGNUSON. Any questions on that?
Senator ALLOTT. No.

NATIONAL ARCHIVES AND RECORDS SERVICE

STATEMENT OF DR. WAYNE C. GROVER, ARCHIVIST OF THE UNITED STATES, ACCOMPANIED BY DR. ROBERT H. BAHMER, DEPUTY ARCHIVIST, AND WALTER ROBERTSON, JR., ADMINISTRATIVE OFFICER

OPERATING EXPENSES, 1965

Senator MAGNUSON. All right. Operating expenses, National Archives and Records Service. You want plus $770,000. You want plus $770,000. Is that for Archives or for the Records Service?

Mr. BOUTIN. Actually it is the increase for the total Service. That has been adjusted by the amendment that the President sent up, so we are actually talking about an increase of $680,000 net for a total appropriation of $15,410,000. Of that total, $150,000 is for reproducing some negative microfilm that proved to be defective. This was microfilm not processed by GSA but processed by others, mostly commercial firms, and this microfilm, all of highly important records, has turned up with spots on it. This [indicating] is a very good example of what has happened to it. Eastman Kodak and other of the large companies are trying to find out what the cause of it is, but to preserve these records which have long-term requirements, they have to be reproduced.

Of the increase, $101,000 is for Presidential libraries, and $202,400 is pay act increase.

So actually we are talking about a very little more money for the increased workload that we have in the whole National Archives system.

RELEASE OF FILING CABINETS AND SPACE

I would like to point out, Mr. Chairman, and members of the committee, something that really is not understood, the tremendous service this group performs; the number of filing cases that are released, the amount of space that is released, and the amount of shelving that is released. By taking records from Government space and putting them into the records centers, Wayne Grover's shop is saving the Government directly about $4.5 million a year, is that correct, Dr. Grover?

Dr. GROVER. Yes. Savings in space and equipment only.

PRESIDENTIAL LIBRARIES

Mr. BOUTIN. Of course, we have four Presidential libraries now. We had transferred to us by Interior last year the maintenance and guarding of the Roosevelt Library. We have now the Eisenhower Library going full speed ahead, the Hoover Library, and, of course, the continuation of the Truman Library. In addition to that we have $60,000 in this budget to start work on the Kennedy Library. We are doing a great deal of work with the Foundation on that at the present time, gathering information, microfilming, helping with the oral histories, doing all of the different work that has already been reported in the newspapers.

I personally have been working very closely with the family as well, and so has Dr. Grover, on the planning of the library, the institute, the memorial, the archival section, all of which will be located at Harvard University on the banks of the Charles.

AMOUNT FOR ARCHIVES PROPER

Senator MAGNUSON. How much is for the Archives proper, other than this one item.

Mr. BOUTIN. For the main Archives here in Washington? Dr. Grover?

Dr. GROVER. About $3 million.

Senator MAGNUSON. But that is within

Dr. GROVER. Within the total request of $15.4 million.

Senator MAGNUSON. Within the $15.4 million.

contracted for privately?

Was this microfilm

PRESERVATION OF MICROFILM

Dr. GROVER. Those were films that were transferred to us from various Government agencies, and the processing of the film had been done commercially, yes.

Senator MAGNUSON. Why wouldn't they do them over for nothing if they did not do a good job?

Mr. BOUTIN. Some of these date back a good long while, and no one at this time could identify the reason.

Dr. GROVER. 25 years.

Senator MAGNUSON. Well, but they paid something to do the original job.

Dr. GROVER. That is right. The reprocessing of the film itself would not remove the spots. As a matter of fact, no one yet knows

what causes the microfilm spots on this negative microfilm. The Bureau of Standards has a research project going on it, but so far they cannot identify the chemical character of the spots precisely. Senator MAGNUSON. Well, wouldn't the original company that

made them know what

Dr. GROVER. The original company that made a good deal of this film, of course, is the Eastman Kodak Co., and they have spent several hundred thousand dollars in research trying to identify these spots and see how to cure them.

Mr. BOUTIN. What we are talking about is while there is still time

Senator MAGNUSON. I understand that. But why shouldn't they just do it over again if they did not do it right in the first place?

Dr. GROVER. Well, it is a defect, Senator, in the microfilm process that scientifically the causes for which are not known. I do not know whether you could force these companies to do it over or not either, but I doubt it.

Senator MAGNUSON. You mean the original contract put it that loose because you were dealing with unknowns-

Dr. GROVER. That is right.

Senator MAGNUSON (continuing). That you probably would find them with a defense that they did the best they could under the contract, and it did not turn out right.

Dr. GROVER. This is a wholly unexpected development.

COST OF ORIGINAL AGENCY REPROCESSING

Mr. BOUTIN. I would guess, Mr. Chairman, that we would spend considerably over $150,000 in personnel costs if we were to go back and try to reconstruct with the agency that turned these records over to us exactly what the processing was at that time, who the contractor was, how it was handled, litigation costs, and so forth. We would probably spend a half million dollars.

Senator MAGNUSON. And you may get a little mileage out of it because they are now working on it to stop it for the future.

Mr. BOUTIN. They are really sensitive about this. They are very worried about it.

Dr. GROVER. Very much.

PROTECTION AND MAINTENANCE OF EXCESS AND SURPLUS

PROPERTIES

Senator MAGNUSON. All right. Now to go back on the surplus again, on 11-61, is that the list of real property you are maintaining? Mr. BOUTIN. In the right-hand column you will see the amount of money that we anticipate spending this year, fiscal 1965, for the protection and maintenance of the various properties we expect we will have at least part of the year in our inventory. That list is already antiquated because there have been changes made in it; but at the time the budget was put together that was the best list we could develop. Since then there have been additional properties where we have received notification they will be declared excess and some that are on this list have been withdrawn or have already been sold.

Senator MAGNUSON. The great bulk of this is Defense properties, is it not?

Mr. BOUTIN. That is right. Defense properties and some post office properties.

Senator MAGNUSON. Well, now, for example, you have got here the port of Whittier, Alaska. You are going to spend $200,000 on that in 1965.

Mr. BOUTIN. That is a military establishment which was turned over to us. Fortunately we had not disposed of it because it will be needed again as a result of the tremendeus damage from the earthquake up there.

PROPERTIES UNDER REVIEW

Senator MAGNUSON. But it is costing you $200,000 normally to maintain it. And then you have got—I just happened to turn to region 10 which is out in our area. You have got the Manchester Annex, but all of these properties are under review by the Defense Department, aren't they?

Mr. BOUTIN. No; all of those have already been reported, and we are confining the 1965 request to the right-hand column. We just put the other two columns in for comparison purposes.

Senator MAGNUSON. So in 1965-let's take in region 10 it is going to cost you $6,000 next year to maintain the Manchester Annex, $200,000 in the port of Whittier, and the chemical plant in Seattle, $25,000.

Mr. BOUTIN. The chemical plant has been disposed of. That is one of those military

Senator MAGNUSON. But these might be sold in the meantime, is that correct?

Mr. GREENBERG. That Seattle chemical plant has been disposed of, Senator.

Senator MAGNUSON. So that these figures may not be but you will be getting some more in.

Mr. BOUTIN. We are getting others.

Senator MAGNUSON. So if you lose one they give you another one, so you are just about in the same boat. Can you transfer these funds?

Mr. BOUTIN. Oh, yes; between projects.

Senator MAGNUSON. OK. Now, operating expenses, "Transportation and communications services."

TRANSPORTATION AND COMMUNICATIONS SERVICE

STATEMENT OF ROBERT B. CONRAD, COMMISSIONER, ACCOMPANIED BY MALCOLM D. MILLER, DEPUTY COMMISSIONER, M. LLOYD BOND, ASSISTANT COMMISSIONER, OFFICE OF COMMUNICATIONS, AND J. W. FLATLEY, ASSISTANT COMMISSIONER, OFFICE OF TRANSPORTATION

REQUESTED INCREASE FOR 1965

Senator MAGNUSON. You are up $1,050,000.

Mr. BOUTIN. Almost all of this, Mr. Chairman, is in the area-
Senator MAGNUSON. Where is that in the book? II-106.

Mr. BOUTIN. The best breakdown is on page 108. And there it shows that almost all of this increase is in this new telecommunica

tions program, including the advanced records system that we have testified before this committee about, and I can give you a status report of exactly where we stand.

Senator MAGNUSON. I was going to say, put in the record a progress report as from your testimony from last year; how you are moving along.

Mr. BOUTIN. Very good.

(The information requested follows:)

PROGRESS IN COMMUNICATIONS PROGRAM

Since our last appearance before this committee, significant progress has been made in our communications program as evidenced by the following facts.

In 1962, GSA managed approximately 10 percent of the total Federal civil agencies' voice and record communication traffic. By July 1964, the FTS voice system will be serving 355 cities, or a 400-percent increase over 1962, with a capability of carrying all civil agencies' long-distance telephone calls at an annual savings to the Government of approximately $5 million as well as providing an emergency capability and a compatibility with military networks.

The number of switchboards which GSA will be operating or managing during fiscal year 1965, following the cutover of FTS phase II, will be approximately 300 for a combination of local and intercity service as opposed to the current figure of 142, of which only 43 are for FTS intercity service. The number of primary and secondary switching centers of the FTS intercity system will increase from 4 to 32. The number of telephone circuits interconnecting the switching centers and the telephone switchboards in the various cities will increase from approximately 2,300 to approximately 7,500. The number of telephones served by the FTS intercity system will increase from approximately 260,000 to 420,000.

In 1965, the advanced record system, for which a contract was awarded in December 1963, will be serving Federal agencies at 1,100 teletype and data stations, an expansion of 500 percent over the 1962 system of GSA. Furthermore, this system will have the capability of serving a total of 4,000 stations with no change in design. It is estimated that use of this system will reduce current record communications costs to using agencies by 10 percent and that the rate of savings will increase as the traffic volumes expand.

In fiscal year 1965, the subsidy of $5.4 million previously provided under the operating expenses, PBS appropriation will be eliminated. The fact that oper

ators' costs were previously subsidized and will now be paid by using agencies should be the main reason for agencies' requests for increased communications funds in 1965. We would like to point out that there are other factors also responsible.

One factor is the increase in the voice traffic, and this has not been confined to our present 43-city intercity network. Traffic reports indicate that many large agencies are increasing their use of commercial toll facilities.

It is significant that departments and agencies using FTS local and toll services to the maximum extent possible have been able to reflect savings in their 1965 communications budgets. The Civil Service Commission will be paying an additional $96,500 as a result of the elimination of the $5.4 million subsidy, but estimates an increase of only $67,000; the Veterans' Administration an additional $201,000, with an increase of only $179,000. In GSA, which naturally is a heavy user of our network, the additional cost of $637,000 is being absorbed with a requested increase of only $257,000.

The program to reduce costs is a continuing one. Recently in Washington, D.C., several agencies were cut over to a special flat rate nationwide service for all their toll calls at a saving of more than $45,000 per month from their costs in the previous 3 months. This was made possible by negotiations and special engineering efforts of our staff.

In summary, we are presently generating substantial savings for the Government through the using agencies. Our objectives are better service and greater savings. In order to achieve this we are planning, implementing, and operating systems designed to provide for the increased communications needs of Federal agencies and, at the same time, hold costs down to the most economical level possible.