Mobilization and Demobilization Problems

Yesterday afternoon, by unanimous vote, the Senate approved and sent to the House of Representatives the contract termination bill which Senator George and I have been working on for almost a year. In passing this bill as a separate measure, however, the Senate stands pledged to legislation at this session of Congress on the broader aspects of post-war adjustment. Perhaps the most important of these other subjects is the post-war utilization and disposition of Government-owned war property. The handling of such property can have a profound effect on the level of post-war improvement, on the concentration of economic power, and upon our relations with other nations. The country is looking to Congress for decisive legislative action on this subject without any more delay. The Baruch-Hancock report of February 15 recommends that the Surplus Administrator report to Congress as soon as possible on legislation needed for surplus Government property.

Today we have the privilege of receiving the recommendations of Mr. Clayton, who was appointed Surplus Property Administrator shortly after the Baruch-Hancock report. While I understand Mr. Clayton is not submitting specific recommendations this morning, I hope that such recommendations can be offered within the next 2 weeks at the latest.

We shall also hear from M. P. Moe, on behalf of the National Education Association, who will testify on the board's use of Government-owned property of the American educational institutions.

Mr. Clayton will be the first witness, if Mr. Clayton will come forward, please.

Before starting the testimony, I wish to insert in the record a letter from the American Farm Bureau Federation to Hon. Scott W. Lucas in reference to Senate bill 1794 and House Resolution 4457. (The letter referred to by Senator Murray is as follows:)

Re S. 1794 and H. R. 4457
Hon. SCOTT W. LUCAS,

AMERICAN FARM BUREAU FEDERATION,

United States Senator, Washington, D. C.

Washington, D. C., May 4, 1944.

DEAR SENATOR LUCAS: It is our best information that since January 1, 1939, approximately 50,000 farm families have been displaced from their homes in the acquisition of their farm lands for war purposes. It is our further best information that possibly 3,000,000 acres of land so purchased by the Government for war purposes should be considered as arable for farm use after the war. There is probably an equal amount of submarginal lands that probably in the future should be devoted to nonfarm use.

The American Farm Bureau Federation is interested in the approximate 3,000,000 acres of arable farm land that can be used for farm purposes after the war. The board of directors of the American Farm Bureau Federation at its regular meeting in Chicago on March 3, 1944, stated its position in a resolution, which reads as follows:

"That the officers and the Washington office be requested at an early date to have prepared and introduced into Congress legislation having for its purpose the requirement upon Government to offer, just as soon as war conditions will permit, all farm land taken over during this war, returned to its original owner, at the price paid for the land adjusted to cover any damage that if not purchased by such former owner within a reasonable time that such land be offered at public sale, with preference to veterans, after wide advertisement, to the highest bidder and in offering such land in public sale and in determination of acreage to be offered, that due consideration be given to the peculiar requirements in various sections of the country as to what constitutes desirable units of land operated." We are not advised, of course, as to what part of these possible arable farm acres can be disposed of by the Federal Government at the present time. Within a reasonable time after the Army and Navy may determine that they have no further need for such possible arable farm land, disposal of same should be made by the Federal Government and under a practicable formula laid down by the Congress. The dominant reasons for these conclusions are as follows:

1. Persons dispossessed of their farm homes, even though they have been compensated therefor, should have an opportunity, on a reasonable basis, to repossess their former farm lands after, of course, the need for public use is past.

2. The farming community from which such farm land was taken is entitled to have its community restored to the fullest extent possible so that the character of the community will not be permanently destroyed or its social order radically changed.

3. Local taxing districts, from which such arable farm land was taken, are entitled to the same being restored to private hands so that the tax systems within such taxing districts will not remain disrupted for too long a period.

4. The restoration of such lands for arable use will assist in the production problems of agriculture.

It seems to us that the bill introduced by you in the Senate, S. 1794, and its companion bill in the House, substantially conforms to the action of the board of American Farm Bureau Federation as set forth in the foregoing resolution. The American Farm Bureau Federation therefore heartily endorses S. 1794 and H. R. 4457 with the following reservations:

1. The last line of section 1 reads as follows: "In the event the right to purchase such land under this act is not exercised, such land is to be disposed of as otherwise provided by law." We assume that such land shall be offered for sale in public sale after the previous owner shall have had the right to exercise his option. If this assumption is not correct, this part of section 1 should be amended accordingly.

2. Section 3 provides that the President shall have the right to designate such departments or agencies of Government as he may deem appropriate, for the administration of such sales of arable farm lands. It will be noted from reading the resolution that the sales of such land at public sale, after the previous owner has opportunity to exercise his option, shall be in units as the respective section shall peculiarly require. It should not be offered in a way that it would permit corporation farming. The act should be amended to require that sales of arable farm lands to persons other than the original owner, should be restricted to persons engaged in agriculture, but corporations should be excluded from purchasing such lands. The act should further require that due consideration be given to the requirements in various sections of the country as to what constitutes desirable units of land operated.

It is appreciated that after the land has been purchased for the Army or Navy that certain degrees of improvements have been placed upon the land, that in some cases improvements have been made covering several farms, which improvements and the land upon which they are located, might serve the public more fully by maintaining such improvements for industrial purposes. In such cases, of course, the Government should not be required to break up such land, that is reasonably connected with such improvement, into farm units.

It is also recognized that certain of the lands that have been purchased for Army and Navy use have had improvements placed thereon and that such improvements have been used and operated by war industries with options to purchasers. In such cases, of course, if such options were exercised Congress, it appears to the American Farm Bureau Federation, should not direct that the contract obligation be voided.

With the foregoing reservations the American Farm Bureau Federation endorses and, with the amendments as defined in the reservations, will support S. 1794 and H. R. 4457.

Very truly yours,

Senator MURRAY. Mr. Clayton?

Mr. CLAYTON. Coming, Mr. Chairman.

EDW. A. O'NEAL, President.

Senator MURRAY. We are very glad to have you here this morning Mr. Clayton. Have you a statement you wish to present?

Mr. CLAYTON. Yes, sir, I have.

Senator MURRAY. Í am sorry that I am going to be called away for minutes to another meeting, but I will get back as quickly as I possibly can, and, of course, will read your first statements later. I will be back before you finish. Mr. Gwynne will handle the meeting while I am gone.

STATEMENT OF W. L. CLAYTON, SURPLUS WAR PROPERTY

ADMINISTRATOR

Mr. CLAYTON. I much appreciate Senator Murray's invitation to appear before you this morning. In that invitation I was requested— to describe the basic problems of national policy involved in surplus property utilization, the policy problems that call for congressional decisions, related matters that also require legislative action, and the activities of (my) office since its inception.

With your permission I will deal first with the activities of my office to date, because I think that my views as to the major problems of legislative and administrative policy, and particularly as to the all-important time factor in relation to those problems, will be much clearer to you when you know the nature of the immediate questions which are pressing us and what we have done and propose to do about

them.

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Mobilization and Demobilization Problems: Hearings Before a ..., Parts 1-16