Mr. CASE. So that the picture of comparison between World War I and World War II is not given by simply saying that we have so many fewer freight cars, and so many fewer locomotives.

Colonel JOHNSON. But this statement shows it. We shipped more in March to Germany, in one month, than we shipped in the entire First World War.

Mr. CASE. When the railroads were under Government operation. Colonel JOHNSON. Well, they were under Government operation in the First World War, but we shipped more stuff to Germany in the month of March, when we were paralyzed by this freeze, from the New York group of ports, than we shipped in the entire First World War, and in addition to what we did there in March what we did in the Pacific and the other ports.

USE OF ALLOCATION FROM THE PRESIDENT'S EMERGENCY FUND

Mr. CASE. You stated you got $5,000,000 from the President's emergency fund. Has that been used for any purpose other than in connection with the operation of these truck lines?

Colonel JOHNSON. Ño; none whatever.

Mr. CASE. Are you receiving any other emergency funds from any other source?

Colonel JOHNSON. None whatever.

Mr. CASE. Or any other transfers from any other source?

Colonel JOHNSON. As to transfers, there may be some little transfers.

Mr. HOLMES. We have some lend-lease money, which amounts to $1,000,000.

Mr. CASE. $1,000,000?

Mr. HOLMES. Yes.

Mr. CASE. Does that pay any of your personnel?

Mr. HOLMES. No.

BASIS OF ESTIMATES, 1946

(See p. 765)

Mr. CASE. You referred to the estimate you prepared in the fall o the basis of a one-front war, and then the revision on the basis of a

two-front war, and now a further revision on the basis of a one-front

war.

Colonel JOHNSON. The first statement for a one-front war is just like the Budget passed it, $7,700,000.

Mr. CASE. So, the estimate now before us is the one you made up last fall, and you have gone back to that?

Colonel JOHNSON. That is right.

Mr. CASE. In the figures that you gave us of a total for this year of $17,000,000, approximately

Colonel JOHNSON. No; $7,000,000.

Mr. CASE. No; for the current year, $17,000,000; is overtime for your personnel allowed in that figure?

Mr. HOLMES. Yes, sir.

Mr. CASE. Does the estimate of $7,700,000 for 1946 include over time?

Colonel JOHNSON. The $700,000, I understand is overtime.

Mr. HOLMES. There is no provision for overtime in that estimate. Mr. CASE. So that overtime would have to be added to it, if it is continued, to make a comparative figure?

Mr. HOLMES. Yes; approximately $1,200,000 for overtime.

Mr. CASE. I have one question with respect to these people that are being paid by the railroads.

Mr. CANNON. Do you want to ask that of Colonel Johnson?

OFFICE OF DEFENSE TRANSPORTATION OFFICIALS PAID BY RAILROADS

Mr. CASE. Yes; I want to ask Colonel Johnson, as he was the one who testified that the railroads were setting some directors up and paying them $25,000 a year and their expenses. Will you place in the record a list of these persons who are being paid salaries for Government work by the people who are paying them, the names of the persons and the names of the railroads, and the duties to which they are assigned?

Colonel JOHNSON. Yes; I will.

(The matter referred to is as follows:)

In answer to your question, it must be stated that the Washington staff employees that I referred to do not receive salaries for services performed for the Office of Defense Transportation. These individuals are on leave of absence from their respective railroad companies and the railroad companies are continuing to pay their former salaries while in this leave of absence. This list follows:

Mr. CANNON. Thank you, Colonel Johnson. We appreciate your testimony, and we appreciate your service to the country.

Mr. RABAUT. Colonel, you are as familiar with this subject as you were with aeronautics.

Colonel JOHNSON. Yes.

RATE OF EXPENDITURES BY MONTHS

Mr. TABER. I want a break-down of your monthly expenditures. Mr. CANNON. That can be supplied by the staff, I take it.

Mr. TABER. Can you give it to me now?

Mr. WHITE. I think we can give it to you for the current fiscal year. Mr. TABER. For the current fiscal year as far as you have gone.

Mr. HOLMES. July, $1,442,000; August, $1,379,000; September, $1,313,000; October, $1,313,000, in round figures; November, $1,348,000; December, $1,055,000; January, $942,000; February, $979,000, and March, $1,023,000.

Mr. TABER. Do you have April?

Mr. HOLMES. No; we estimate April at $1,025,000.

Mr. TABER. What do you estimate the rest of the year at?

Mr. HOLMES. About $1,025,000 for the rest of the fiscal year.

Mr. TABER. What are you going to do the first 3 months of the following year?

Mr. HOLMES. There would be a slight cut-back to a little less than $1,000,000 a month, naturally, with a reduction in force.

Mr. TABER. I notice the estimate calls for "approximately."

Mr. HOLMES. I will qualify that, Congressman. During July, beginning July 1, we will not pay overtime to employees unless a new law is passed.

Mr. TABER. I appreciate that.

Mr. HOLMES. That will make a great deal of difference there. It would be approximately $875,000 a month for the first quarter. Mr. TABER. You figure the overtime to run about $100,000?

Mr. HOLMES. Approximately.

Mr. SNYDER. Mr. Taber, overtime for whom?

Mr. HOLMES. Government employees.

Mr. TABER. Their employees.

I think those are all the questions I have.

UNEXPENDED BALANCE

Mr. WIGLESWORTH. Your overtime for the fiscal year 1945 is estimated at $1,850,000, and judging from what you say, you hope to realize an unexpended balance of about $3,000,000 in the current year; do you not?

Mr. HOLMES. That is correct.

Mr. WIGGLESWORTH. So, that means your estimated expenditures for this year would run around $12,200,000? Mr. HOLMES. Yes; without overtime.

Mr. WIGGLESWORTH. EX overtime, yes.

Mr. HOLMES. That is correct.

WORK OF OFFICE OF DEFENSE TRANSPORTATION IN PUERTO RICO

Mr. WIGGLESWORTH. What are you doing down in Puerto Rico? I see you have a force there.

Mr. WHITE. We have had a force there since 1942.

Mr. WIGGLESWORTH. What are they doing down there? You have 38 people there.

Mr. WHITE. We have a very critical truck situation and taxicab situation down there. We have had large quantities of material to move for the Army and the Navy down there.

Mr. WIGGLESWORTH. There are no railroads down there?

Mr. WHITE. Yes; there is a railroad running around the fringe of the island that moves a great deal of military personnel between camps and so forth.

Mr. RODDEWIG. We ran the railroad a little over a year.

Mr. WHITE. Yes; but that has been turned back to the owners without any expense to the Government.

Mr. WARREN. There is, of course, a justification statement in with our budget. I think that is included in the message already in the record; is that correct?

Mr. WIGGLESWORTH. I do not believe it is in the record unless it was inserted.

Mr. WHITE. It is in the original budget.

Mr. WARREN. Yes; in the original budget. Would you care to have that submitted for the record, sir? It explains the functions and the operations of that.

PERSONAL SERVICES

Mr. CASE. Further, with regard to this Puerto Rican Transport, I note that the man-years for 1945 are given as 33, and the man-years for 1946 are 36. There is only one other place that I have noted where there is an increase in man-years as between the two years 1945 and 1946, and that is in the Office of the Director, where you go from 21 to 23. With the general reduction you have here, why should it be necessary to have an increase in personnel in Puerto Rican Transport, and also in the Office of the Director?

Mr. HOLMES. The statement from which you are obtaining those figures reflects the 1945 appropriation as approved by the Congress last year, but does not reflect the present staff of the present Puerto Rican Transport Division or the other divisions. In an agency such as ours, constant adjustment is necessary within the year. As indicated, we have abolished two divisions. There have been other similar adjustments and consolidations, and every effort is constantly made for that. Therefore, there is no increase in the Office of the Director as compared against the present force or in the Puerto Rican Transport Division in the request for next year.

Mr. CASE. I am looking at the page where you give the revised estimate of positions.

Mr. HOLMES. That is correct.

Mr. CASE. I am looking at the man-year column, not the positions, and the increase shows up in the man-years and I was wondering why there should be an increase.

Mr. HOLMES. As I say, this statement, if compared with the former budget as submitted to the Congress, shows it for the man-years. Mr. CASE. You mean you have been operating differently from the Budget which gave you the money?

Mr. HOLMES. To the extent of consolidation of this division. Mr. CASE. In the matter of personnel does that increase your personnel so that you are paying money for personnel on a different basis than what you got it for from the Congress?

Mr. HOLMES. That is necessary only to this extent over-all we do not. However, within the organizational changes it is necessary to shift personnel around, and on all of these consolidations they were submitted to the Bureau of the Budget for their consideration before that was done.

Mr. CASE. Do you think you could make use of money that you get, perhaps, for highway purposes and use it for information?

Mr. HOLMES. No. You will find that in all of the divisions the expenditures have been below the estimate for the specific divisions submitted to you for consideration.

Mr. CASE. Are you going to save some money this year?
Mr. HOLMES. Definitely.

Mr. CASE. In what amount?

Mr. HOLMES. We will revert almost $3,000,000 of our appropriation. Mr. CASE. For fiscal 1945?

Mr. HOLMES. For the fiscal year 1945.

INFORMATION DIVISION

Mr. WIGGLESWORTH. What do you need this information set-up for? I see you are asking for 28 people. You say information assistants, 3 information managers, and 8 information specialists. Apparently it involves your work on films, transcriptions, and press releases. Mr. WHITE. Can you answer those detailed questions on this, Mr. Warren?

Mr. WARREN. Congressman, our program, as the colonel has said, should place emphais on the need of regulatory orders and on information programs and education, and it is in furtherance of those programs that we have our information set up there.

Mr. WIGGLESWORTH. Why do you need all of that personnel? Mr. WARREN. That includes both the field and the Washington office.

Mr. WIGGLESWORTH. I can see where you have some major policy coming along that you want to get across to the public that you must have some releases on it, but I cannot see that this is an agency that must have much publicity, or why you need to carry a force of that size for any publicity that might be properly involved in your work.

Mr. WARREN. Congressman, it is a staff that we have needed in the past there to properly explain and further those programs. Our personnel has declined year by year in the Information Division, and we have effected economies and reductions as the programs have changed.

Mr. WIGGLESWORTH. Why do you need to put out publicity about the discontinuing of horse racing or the midnight closing of places of entertainment, and so forth?

Mr. WARREN. I would say that it is absolutely necessary, Congressman, that the public understand such programs, such as the convention ban. In other words, we are placing reliance on the effectiveness of these programs, the effectiveness of the operation of the O. D. T. in discharging its responsibility under the Executive order, on the conscience of the public and the understanding by the public of the reasons for those orders, and the necessity for staying off of trains, for example.