Mr. TABER. Your operation covers a little less than 3 percent of the South American movie set-up; is that about right? Mr. HARRISON. No; we cover all of the other republics. Mr. TABER. You have 6,500 commercial theaters, and you have an average of 230 showings a day. Now, maybe my arithmetic is wrong. (Discussion off the record.) PERSONAL SERVICES Mr. TABER. In this set up here you have roughly an increase from $169,000 to $172,000, indicating quite a little more help. Now, I think it really means probably 8 or 10 more people, maybe more. I am wondering why you need more people for this activity. You are expanding instead of contracting. Mr. ALSTOCK. There are two new positions, that is all. Mr. TABER. Two new positions? Mr. ALSTOCK. Yes, sir. Mr. TABER. You have 6 extra man-years in the field and a lot of this extra stuff. I do not know how many positions you have. It does not exactly tell. Mr. HISLE. That information is given at the bottom of page 4. On a position basis we have 40 positions allowed now, and we are asking for 42, or an increase of 2 positions. Mr. TABER. You have 46 man-years down for next year. Mr. HISLE. Yes. Mr. TABER. It is generally about 80 percent of the number of positions, and on that basis I was figuring you probably had 8 or 10 more positions. Mr. HISLE. We have 6 man-years in for W. O. C. employees in the field. Mr. TABER. Yes. Mr. ALSTOCK. We use as many men from the industry as we can without any charge to our division. Mr. HISLE. On page 1 the increase in administration is analyzed. Congressman Taber. It is $11,494 for increased man-year requirements and two new positions. The cost of the two new positions is only $5,600. Mr. TABER. But you have not included your overtime, which runs about $17,000. Mr. HISLE. It is $18,500. Mr. TABER. $18,500? Mr. HISLE. Yes, sir. Mr. TABER. That means a bigger figure than I gave you. Mr. HISLE. No; $11,494 is the increase over 1945 on a comparable basis, that is, after deducting overtime from 1945. Mr. TABER. Now, what other country is there that is doing this sort of thing in the movie business or the news reel business down there? Mr. ALSTOCK. In Latin America their efforts so far are confined to theatrical operations in Argentina, Mexico, Chile, and Brazil. Mr. TABER. Who is doing it? Mr. ALSTOCK. The commercial privately owned companies. Mr. HARRISON. The British news reel is given freely to every theater in South America for nothing. Mr. TABER. You are doing that too, are you not? Mr. HARRISON. No, sir; we are not. Mr. ALSTOCK. We make them pay for it. The United States motion-picture companies have a regular standard booking procedure, under which the theaters pay for our reels as contrasted with the British policy of giving the news reels away. Mr. HARRISON. Our news reels are commercial news reels which are sent down by four or five of the major companies. We have an agreement with these companies that we can include in the news reels for distribution in the other republics material of special interAmerican significance. RADIO DIVISION Mr. CANNON. Turning to the Radio Division, you have I see here a reduced estimate for each item under the Radio Division with the single exception of your third item, Facilities. There the increase is rather substantial, $283,390. I wish you would tell us briefly the purpose for which this fund is used, and let us know what is the need for the increase. TRANSMITTER FACILITIES Mr. OGILVIE. The break-down, Mr. Chairman, is found on page 10, as follows: The estimate for the fiscal year 1946 to provide funds for facilities amounts to $1,490,750, an increase of $283,390 over the funds available for the fiscal year 1945. This estimate is for the operation of 36 transmitters which are shared with the Office of War Information. The Office of War Information pays $1,773,492 for two-thirds of the total cost and this Office pays $886,746 for onethird of the total cost of $2,660,238. Transmitter facilities.-The hours of transmission for the three language services during the 1946 fiscal year will be as follows: English language transmissions_ Portuguese language transmissions Spanish language transmissions_ Eastern War Time 10:00 a. m. to 2:00 a. m. 6:00 a. m. to 7:15 a. m. 11:30 a. m. to 12:45 p. m. 5:00 p. m. to 11:30 p. m. 6:45 a. m. to 10:30 a. m. 11:45 a. m. to 3:30 p. m. 5:30 p. m. to 2:00 a. m. The above transmission schedule provides for a total daily transmitter time of 178 hours (24%1⁄2 hours Portuguese, 80 hours Spanish, 74 hours English) for the 1946 fiscal year. Station time.-Local station time for rebroadcast of short-wave programs in the other American republics purchased through the contractual arrangements with the National Broadcasting Co. and the Columbia Broadcasting System is estimated at $333,000 for the 1946 fiscal year, an increase of $15,000 over the previous year's estimate, due primarily to increased time rates of some of the affiliated stations of the National Broadcasting Co. and the Columbia Broadcasting System. Point-to-point facilities.-This estimate includes the facilities for special programs in Argentina and Brazil, overseas battle-front pick-ups, and contemplated special events such as VE-day, world conferences, etc. Mr. OGILVIE. You will notice that the primary increase there comes in the item "Transmitter facilities." Transmitter facilities represent the short-wave transmitters in the United States which, you will recall, were taken over in 1942 and are operated by the licensees for O. W. I. and ourselves on a one-third and two-thirds basis. The increase that is represented this year in our budget is due to the fact that the transmitters which were ordered in 1942 and have been under construction since that time came into operation during the 1945 fiscal year, so that in the 1946 fiscal year we will have a full complement of 36 transmitters working. Mr. TABER. Does this mean the purchase of facilities? Mr. OGILVIE. No, sir; that is the actual cost to the United States Government for the operation of 36 short-wave transmitters jointly used by the O. W. I. and O. I. A. A. Mr. WIGGLESWORTH. How do you get your frequencies? Mr. OGILVIE. The frequencies are assigned to us through the Federal Communications Commission, through a joint board with the Army, and the Navy, and the Federal Communications Commission. Mr. WIGGLESWORTH. And how did you get these facilities? Mr. OGILVIE. Some of these facilities were taken over from private licensees and 22 transmitters were obtained by the Government through the Office of War Information. Mr. WIGGLESWORTH. From private companies? Mr. OGILVIE. There were 14 original transmitters which were taken over from the private licensees. Mr. WIGGLESWORTH. I wish you would give us a statement for the record that would show the amounts paid for the purchase or lease of facilities by the concerns from which they have been acquired. Mr. OGILVIE. Fourteen of the transmitters, sir, were taken over from the private licensees and are now operated under cost contract for the Government. Likewise, the additional 22 transmitters are operated by licensees under cost contracts for the Government through O. W. I. and O. I. A. A. Mr. WIGGLESWORTH. I would like to see a list of the companies and the rental that is paid in each instance. Mr. HISLE. We have a list showing the transmitters, what the O. W. I. pays and what we pay. (The list referred to is as follows:) Mr. WIGGLESWORTH. This is a joint operation with the O. W. I.? Mr. HARRISON. The O. W. I. has about two-thirds of the time and we have about one-third. Mr. WIGGLESWORTH. Does the O. W. I. broadcast to South America? Mr. HARRISON. No; they use the transmitters about two-thirds of the time broadcasting to other parts of the world. They do not broadcast to South America. The O. I. A. A. does that. AVERAGE OF SALARIES PAID Mr. CASE. I have just been making a little quick calculation of the average salaries paid in the Radio Division and other divisions, some of which we have not come to yet, but it seems to me in running through a description of the various positions that the average salaries run higher here than they do in the average Government agency. If my quick figuring is correct, the average salary for 84.7 man-years for the Radio Division is $3,300; the average salary for the Motion Picture Division for 30.4 man-years, is $3,510; the average salary for 35.7 positions or man-years in the Guidance and Reference Division is $3,700. Do you know how those average salaries compare with like personnel in other Government agencies? Mr. HISLE. I am familiar with one other war agency, the Foreign Economic Administration, and I think theirs run around $2,900 or $3,000. The over-all average salary in our estimates here in $3,049. Mr. HARRISON. We have one major problem that we have to meet, and that is the problem of getting people to work for us who speak Spanish and Portuguese. It means that we have to employ generally a higher caliber of, or higher priced personnel, than the average agency which can hire clerks and stenographers to do their work in only the English language. Also, we are dealing with highly technical and professional operations, radio, press, and motion pictures, which require highly skilled and experienced personnel. Mr. CASE. Does that apply to such things as the Radio Division and the Motion Picture Division where most of your work is here in the United States? Mr. HARRISON. Yes; it does. The Radio Division personnel generally must be able to speak Portuguese and Spanish. Mr. OGILVIE. Yes; because most of our programs are broadcast in Spanish and Portuguese. Mr. CASE. In all of these sections, too, it appears that you have quite a group of writers and editors, and in all of them chiefs of the economic section, and chief economic assistants or economic analysts. Have you tried budgeting your work so that your economic analysts, for instance, might serve the Radio Section as well as the Motion Picture Section, and also the Guidance and Reference Section, for example? Mr. HARRISON. Yes, sir; we have. If you will look at this year's estimate of personnel, you will see that we are tightening up in all of our departments. Permanent positions decrease from 847 to 705, man-years from 827 to 670, and total salaries, excluding overtime, from $2,407,452 to $2,043,666. I would like to make another point here. You will find that generally our salaries are far below the average radio or motion-picture industry salaries. Mr. CASE. That is true of a good deal of the Government, as far as that is concerned. Mr. HARRISON. We have had to go more or less into their own field, sir. ACTIVITIES OF COMMERCIAL ADVERTISERS Mr. TABER. I have a question or two that I would like to ask Mr. Harrison, or somebody on this thing. Is there a practice in this territory of folks who have a commercial interest down in South America and who want to sell some of their goods, to hire radio news folks and commentators to talk over the radio? Mr. HARRISON. Yes, sir. United States firms today are spending between $14,000,000 and $16,000,000 in the other Americas for radio and other advertising. Mr. TABER. I am wondering why they do not take over this particular activity so that we could gradually be working out of it. It is to a certain extent a promotion activity, and we should begin to work out of it, instead of holding it up. Mr. HARRISON. We have worked very closely with them, Mr. Taber. In a great many cases United States advertisers have done a great deal of good for the program. They have included interAmerican material in their programs, and, as a matter of fact, we have already turned over something like 23 or 27 of our local programs to them. On the question of decrease, we feel today that we are only able to do an adequate job with the funds requested here, and that we have cut back as far as we can at the present time. INTERNATIONAL RADIO BROADCASTING Mr. TABER. You know there is going to be, and there is bound to be, resentment on the part of these countries against radio broadcasts that are paid for by another government, shooting into them all of |