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Mr. CANNoN. But the Government would be under no obligation under that contract in the event that Congress failed to provide an appropriation for that purpose? Mr. McKEEvER. I think that it would not. Mr. CANNoN. It would be automatically canceled without a charge against the Federal Government? Mr. McKEEveR. I think so. But we do need that space for an unknown portion of the next year, or perhaps the entire year. There is no other space available in Miami. Mr. CANNoN. Under the terms of the contract when does the lease

“so r. McKEEvER. On June 30. Mr. CANNoN. Of what year? Mr. McKEEveR. Of this year, June 30, 1945. It expires then, but we have the option of renewal for another year. Mr. CANNoN. That is your option; they have no control over it? Mr. McKEEvER. That is right. Mr. LUDLow. What are the terms of your standardized cancelation clause? How quickly can you get out? Mr. McKEEveR. Most of our leases have 30-day cancelation clauses. There are some leases with 60-day cancelation clauses, but this particular one has no cancelation clause. Mr. CANNoN. But do you have to pay the lessor anything? How do you § out of your contract? Mr. McKEEver. It is a standard contract, similar to those entered into by the Public Buildings Administration. We give them a written 30- or 60-day notice as required by the lease. There is a provision that if the Government makes alterations, we have to restore the premises to the original condition, less wear and tear. In some cases we can avoid that by getting the landlord to waive it. Mr. LUDLow. Have you in your censorship seen any evidence of sabotage as a result of your examination of the mail? Have you had many glaring instances of that kind? Mr. PRICE. Of sabotage? Mr. LUDLow. Planned sabotage. *. PRICE. No, we have ifery few references to that in the Illall.

COOPERATION OF THE PRESS IN DISSEMINATION OF NEWS

Mr. SNYDER. Mr. Price, the over-all picture since since you have taken charge of this business 3 years ago would lead me to think that you had pretty well found 100-percent cooperation on the part of the press in carrying out the wishes as to what should be released and what should not be released. Mr. PRICE. That is true of the press and also of the broadcasters. Mr. SNYDER. The same, you say, is true of radio? Mr. PRICE. Yes, sir. Mr. SNYDER. Both of those institutions have devoted a lot of space and time it carrying out the wishes of the Government, through you as its agent, in giving to the American people proper messages? Mr. PRICE. Yes. What we have been more interested in is that they have left out of the papers and off the air literally thousands of news dispatches which would have been printed in normal times, disclosing military information. Mr. SNYDER. I suppose sometimes they were unconscious of the fact that the news had gone into the pressroom or to the radio station? Mr. PRICE. Yes. In the beginning there was a great lack of infor: mation on that subject, but as time has gone on I think editors and broadcasters are now quite alert to the necessity of not disclosing military information. Mr. SNYDER. And they themselves can discriminate much better now as to what is military information and what is not? Mr. PRICE. That is true. Mr. SNYDER. And you find very few, I would imagine, if any, throughout the Nation, in charge of a paper or magazine or radio broadcasting station, who would deliberately give out such news? Mr. PRICE. I think that is absolutely true. Of course, it is done inadvertently. They make mistakes, the same as anybody else; and I have been surprised that they have not made more, with their manpower situation the way it is. But even those instances have been comparatively few.

CENSORSHIP IN FOREIGN COUNTRIES

Mr. SNYDER. I think I understood you to say that the German prisoners here have Hitlerism so instilled in them that they would put stuff out if it, was not censored. How about a lot of people who have not been taken prisoner in Germany, the underground people of Hitler? There are some few highly trained Nazis who, underground, would like to carry on their communications with South America, Argentina, or some other place where they have underground centers. What about them? Mr. PRIgE. We will do what we can to intercept those communications and find out who those people are. As far as censorship inside Germany is concerned, we will have nothing to do with that. It will be military responsibility entirely. Mr. SNYDER. Whenever these nations start in Germany to take over affairs, to supervise them, you will move out? Mr. PRICE. We are not in Germany at all. Mr. SNYDER. You will not move in, in other words? Mr. PRICE. That is true. General Eisenhower's command, and the Russians, and later on the Allied Control Commission, will have that responsibility for censorship in Germany. We have no connection with it except to cooperate with them. Mr. SNYDER. Thank you. Mr. RybAUT. You say you are not going into Germany. Did you go into France? Mr. PRICE. No. The French have a censorship organization of their own which onerates under the direction of General Eisenhower's headquarters. . We have liaison with that organization; that is all. We exchange information with them. Mr. RABAUT. Are you going to the Philippines? o: PRICE. No, sir. That is General MacArthur's operation entirel V. (Discussion off the record.)

SCREENING OF PERSONNEL

Mr. LUDLow. Your personnel is very carefully screened, is it not? Mr. PRICE. As carefully as the machinery exists for it. We asked the F.B.I. in the beginning to investigate every person that worked for us, but they could not do it; they did not have the manpower. The Civil Service Commission does make an investigation and certifies to each person. ... I have not had a single instance where I had any convincing proof of disloyalty. It is a case where many loose charges have been made, but I have not found any disloyalty. (Discussion off the record.) Mr. TABER. Perhaps the most outstanding case of censorship in the last couple of years has been the taking of a certain gentleman of the air who wanted to deliver some facts about the reciprocal trade agreements. He had his time bought and paid for, and it was canceled as soon as they saw his speech, which was a proper speech and which was later delivered in full before the Ways and Means Committee. I am wondering if your office in any way had anything to do with that operation. Mr. PRICE. I have never heard of it. I would like to know more about the case. Mr. RABAUT. What case is it? Mr. TABER. It was the head of the Hamilton Watch Co. We are going to hear a lot more of that. The Federal Communications Com: mission did it absolutely, and it is perhaps the most outstanding case of censorship that I know of. Mr. PRICE. I had not heard of it. If he was talking only about reciprocal trade agreements and was not dealing in military information in any way, I am certain that our office had nothing to do with it. I wood like to know more about it. Mr. TABER. I do not know that your office had anything to do with it. I know it was done. (Discussion off the record.)

SALARIES AND EXPENSES

Mr. CANNoN. We will put into the record at this point your revised page 1 with reference to salaries and expenses, Office of Censorship. That is a revision in accordance with a new estimate which has recently come to us.

(The statement is as follows:)

Salaries and earpenses, Office of Censorship

Regular appropriation, 1945 act-------------------------------- $29,700,000
Supplemental appropriation for 1945––––––––––––––––––––– -
Total appropriation, 1945--------------------------------- 29,700,000
Deduct:
Activities transferred to War Department-------- $777,222
Overtime --------------------------------------- 4,450,000
5, 227, 222

Base for 1946––––––––––––––––––––––––--------------------- 24, 472, 778

Appropriation, 1945 Base, 1946 By objects or projects Positions Man- Amount Positions' Mo amount * - years years Persoxal services Office of the Director---------------- 500 495. 5 $992, 976 495.5 $992,075 Press Division.------------------ 14 13.4 * 14 13.4 59, to Broadcasting Division 21 19.8 81,751 21 19.8 81,751 Cable Division: Postmental -------------------- 56.0 104,808 60 56.0 104.88 ield----------------------------- 1,356 1,333.4 2,298,793 1,336 1,314.0 2,251,138 Postal Division: IDe mental.-------------------- 115 115.0 322,393 115 115.0 3.22.3% Field-------------------- ------ 10,666 10,297.4 18,811,456 10,346 9,990.6 18, 12.7ll Technical Operations Division--- 39 36, 8 86,241 39 36.8 86,241 Overtime-----------------------------|----------|---------- 4,450,000 ----------|---------- ---------Total, personal services.-------- 12,771 12,367.3 27, 206,616 12,431 12,041.1 22,018,215 other objects Travel---------------------------------------------------- 165,000 ---- 160.7% Transportation of things. 33,3 Communication services--- 42,511 Rents and utility services-- 670,3to Printing and binding-------- 275,000 Other contractual services. 449.7% Supplies and materials-- - - - 356,441 Equipment--------------------------- - $4,465 Total, other objects-------------|----------|--------- 2,493,384 ----------|---------- 2,454,5: Total appropriation-------------|----------|----------| 29,700,000 ----------|---------- 24,47-s: Estimate, 1946 Increase (+) or decrease (-) from base By objects or projects Positions : Amount | Positions : Amount personal servicks Office of the Director- -$452.505 Press Division----. –24,9. Broadcasting Divis –22.999

Cable Division:

ponental
Fie
Postal Divisi
Departmental-

1elci - - -
Technical
Overtime.----------------

Total, personal services--------- –9,207,782

Other objects

Travel--------------------------------|----------|----------! 90,000 -------------------- –70,778 Transportation of thi - —18,23) Communication services- - –92,541 Rents and utility services ..] –187.3% Printing and binding-- ..] –170,000 Other contractual servi I| –95,755 Supplies and materials –214,341 Equipment--------- –65,965

Total, other objects-------------|----------|----------| 1,539, 546 || ---------|---------- –915,016

Total appropriation-------------|----------|----------| 14,350,000 ----------|---------- —10, 122,778 Total changes from 1946 base--------------------------------- —$10,122, II: Base for 1946–----------------------------------------------- 24,472, 778

Total estimate for 1946

14, 350,000

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REDUCTION IN PreRSONNEL

Mr. CANNoN. I notice you request funds for 6,691.4 man-years as against 6,048 positions. I understand that the excessive figure of man-years is due to the fact that you do not set up positions of people who are in leave status as of or after July 1. Mr. PRICE. I have tried to explain that in the next-to-the-last aragraph of the letter which you have before you. It is due to the act that the reduction has to be gradual for various reasons. A certain number of people will be working during the first 2 or 3 months, for whom we do not ask for positions. Mr. CANNoN. What amount of money will be necessary to carry your organization through the year on the permanent basis that you expect to reach after reduction? - Mr. PRICE. I would expect, after the termination of those employees. who will go out, that it would bring us down to the point where we would be spending at the rate of about $13,000,000 a year. of Cassos. What naval and military personnel do you have on etai Mr. PRICE. We have 6 Army and 1,030 naval personnel. We expect about 932 naval personnel next year. Mr. CANNoN. When do you expect to get down to 932? Mr. PRICE. Not later than 3 months after the beginning of the fiscal year. Mr. TABER. I would like to have you bring that down the way it is broken down here [indicating]. Mr. CANNoN. Will you check through and give us your break-down on each figure there? Mr. PRICE. You mean, military and civilian? Mr. TABER. The way this page is [indicating]. Your present employment broken down by Office of Director, #ks Division, Broadcasting Division, and so forth. Mr. PRICE. We will have to put that into the record later. (The information requested is as follows:)

Recruitment as of April 21, 1945

Civilian Military personnel | personnel Total

274 21 295 11 I------------ 11 15 ------------ 15

42 135 177

843 874 1,717

70 1 71

7,772 2 7,774

34 3 37

9,061 1,036 10,097

Mr. TABER. How many have you got, all together, if you have that

information here?
Mr. Price. As of April 21, we have 10,097, including military.
Mr. CANNoN. That is your present number of employees?
Mr. Price. As of April 21.

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