committee on that, unless you want to ask some questions about it. The written statement covers other points that I have not mentioned but they are mechanical in character.

I am also going to discuss this with Mr. Sheild, in order to explain to him how this is coordinated with the Procurement Division's work. I have talked with the Procurement Division about it, and they understand it, and as Mr. Sheild handles the Treasury Department bill, I promised Captain Collins of the Procurement Division that would explain this to Mr. Sheild.

RENT OF BUILDINGS IN THE DISTRICT OF COLUMBIA

Mr. TARVER. The next item is for the rent of buildings in the District of Columbia, and it reads:

For rent of buildings and parts of buildings in the District of Columbia, for use of the various bureaus, divisions, and offices of the Department of Agriculture, $63,000.

Mr. JUMP. In that connection, the following is presented for the record:

No change is recommended in this item for the fiscal year 1937. Due to delays in the building program, more than a year will elapse before the completion of the new South Building. Construction is just now about to start on the final portions of the building (major parts of wings 2 and 3 and the connecting headhouse on Independence Avenue between wings 2 and 4). The housing plans of the Department were completely disrupted by the necessity of providing approximately one-sixth of the new agricultural building for occupancy by the Agricultural Adjustment Administration, the space utilized for this purpose having been originally designed for the use of other branches of the Department. It will not be possible, therefore, for the Department to effect any material reduction in the space occupied in leased structures during the fiscal year 1937.

WORK DONE UNDER THIS APPROPRIATION

This appropriation provides funds for the rental of office, laboratory, and storage space for the several bureaus, offices, and units of the Department in the District of Columbia for which no quarters are available in Government-owned structures.

In the following statement are shown the buildings under rental during the fiscal year 1935, and the estimated rentals for the fiscal years 1936 and 1937:

Mr. JUMP. You will notice that there is no change in that. Mr. UMSTEAD. There will be a change, however, when the permanent units of the South Building are ready for occupancy.

Mr. JUMP. Yes; there will be, but just how much change there will be in it I am unable to say until we know more about the status of the A. A. A.

Mr. UMSTEAD. What bureaus of the Department are occupying rented space, other than the Bureau of Roads and the Soil Conservation Service and its various units?

Mr. JUMP. On page 14 of the justification, Mr. Umstead, you will see a list of the buildings, their occupants, and the rents paid under this appropriation. That building on F Street still is used by part of the Forest Service. We have now the main administrative part moved in the South Building, but it is just squeezed in with a shoe horn for the time being.

Mr. UMSTEAD. Why is it that you have not included in this list the Soil Conservation Bureau?

Mr. JUMP. Because it is not paid from this appropriation.
Mr. UMSTEAD. It will be for the year 1937?

Mr. JUMP. No; it will not. I am glad you brought that up, because it involves a general principle about the Soil Conservation Service that I had intended to mention previously.

We have not had enough experience with the requirements and finances of the Soil Conservation Service to enable us to estimate for it on such items as rent, or printing, personnel in the general departmental offices, such as accounts, telephone, personnel, or any of these miscellaneous things.

So, when you get to that item, you will notice that we have included language in there that will authorize the use of the Soil Conservation Service appropriation for printing, for rent in the District of Columbia, and so on. It will have to be used for a number of these overhead things. For instance, if the Soil Conservation Service involves a great expansion in the number of vouchers passing through the departmental channels. Consequently, the necessary employees in the Division of Accounts, will have to be paid in 1937 direct from the Soil Conservation Service funds. We thought that the best thing to do would be to handle it in that way until all of us get more information as to about the requirements will be. Then, next year or year after, when we know what to provide on printing, rent, and these other things, this and the other specific funds would have to be increased, and the Soil Conservation fund could be reduced. They are paying their own rent now for the Standard Oil building.

EMERGENCY FUNDS

Mr. TARVER. Will you make some reference to the emergency funds, as set out on page 15 of the justification?

Mr. JUMP. That statement is submitted for the record, and is as follows:

Mr. JUMP. The first one is the funds transferred from the Agricultural Adjustment Administration. That shows the amount of money that has been transferred into a working fund for the office of the Secretary to meet these increases that I have been referring to in my testimony, for the burdens placed on the Secretary's office on account of agricultural adjustment work. In includes employees in the immediate office of the Secretary, in the personnel office, the accounting office, and telephone operators, and all of that type of employee, and it is running, as you can see, something over $400,000 a year. The largest item is that for accounting work in connection with A. A. A. funds transferred to the Extension Service.

Mr. TARVER. And the availability of the $457,770 for 1937 might be open to serious question at this time?

Mr. JUMP. Yes, sir; although this particular money is taken from the $100,000,000 in the original A. A. A. Act, and that is one of the questions that we hope to get decided in the next few days. It is a question, all right.

The second allotment, for public works, relates to Beltsville, and there was put in under the office of the Secretary, because at the time the allotment was made we did not have the central management unit set up out there. This is for the sewage system, $147,000, that has been installed out there and they say that it is a model sewage system and a very fine piece of work.

That completes the items for the Office of the Secretary.

FRIDAY, JANUARY 10, 1936.

STATUS OF PAYMENTS TO COTTON FARMERS UNDER SECTION 32 OF ACT ACT APPROVED AUGUST 24, 1935

Mr. TARVER. What organization is handling the cotton subsidy payments?

Mr. JUMP. That is handled by the Treasury emergency disbursing office.

You know, when this $4,000,000,000 fund came along, two things were done in connection with accounting that are important. A central Treasury accounting office was set up to keep the actual detailed accounts in connection with the 4 billion dollars. That is all kept in a central Treasury accounting office, which has a branch in each State, called the Treasury State accounting office.

Then, for the actual disbursements, a staff of emergency disbursing officers was set up all over the country, one in each State, and when the cotton payment matter came along, fortunately they were able to plan to make use of the emergency disbursing officers.

Mr. Fuchs knows just how those things are being handled.

Mr. TARVER. As a matter of fact, they are not being paid. Do you know why?

Mr. JUMP. No, I thought they were starting to move. Mr. Fuchs may know about it.

Mr. FUCHS. No, they are not being paid. We have not gotten under way as yet. Of course, I do not know what effect this hold-up on account of the Supreme Court decision will have on disbursements. Mr. TARVER. But these are not A. A. A. funds. They are part of the tariff receipts.

Mr. FUCHS. I agree with you that these are not A. A. A. funds. Mr. JUMP. I was going to suggest this: Do you know Paul Porter, down at the A. A. A.?

Mr. TARVER. Yes.

Mr. JUMP. He has the whole situation on that cotton matter in hand, and he will be up here when we reach the A. A. A.

Mr. TARVER. You know that is a matter of such vital importance that I believe we should take it out of order and hear him.

Mr. JUMP. All right. I will ask Mr. Porter to come up. You want to know why they are not getting the money?

Mr. TARVER. Yes. I would like to know whether or not this subsidy payment has been stopped and, if so, for what reason, so that if additional legislation is necessary to secure it being made, the legislation may be enacted.

Mr. JUMP. When would you like to have somebody on that?

Mr. TARVER. I think at our next meeting.

Mr. JUMP. Would that be this afternoon or tomorrow?

Mr. TARVER. Tomorrow.

Mr. JUMP. We will bring somebody up.

STATEMENT OF PAUL A. PORTER, EXECUTIVE ASSISTANT TO THE ADMINISTRATOR, AGRICULTURAL ADJUSTMENT ADMINISTRATION

Mr. CANNON. Judge Tarver, you asked for special information on

cotton.

Mr. TARVER. That is correct.

Mr. CANNON. Mr. Porter is here from the A. A. A.

Mr. TARVER. Shall I question him now?

Mr. CANNON. If you please..

Mr. TARVER. Mr. Porter, first state your position, please, in the Department?

Mr. PORTER. Executive assistant to the Administrator, Mr. Davis. Mr. TARVER. Of the A. A. A.?

Mr. PORTER. Yes, sir.

Mr. TARVER. Do you have available, for insertion in the record at this point, the language of the statute under which the cotton subsidy was to be paid?

Mr. PORTER. That is section 32 of the act of August 24, 1935. I have that here, a file copy, and I will insert it.

(Section 32 of the Act approved August 24, 1935, reads as follows:) SEC. 32. There is hereby appropriated for each fiscal year beginning with the fiscal year ending June 30, 1936, an amount equal to 30 per centum of the gross receipts from duties collected under the customs laws during the period January 1 to December 31, both inclusive, preceding the beginning of each such fiscal year. Such sums shall be maintained in a separate fund and shall be used by the Secretary of Agriculture only to (1) encourage the exportation of agricultural commodities and products thereof by the payment of benefits in connection with the exportation thereof or of indemnities for losses incurred in connection with such exportation or by payments to producers in connection with the production of that part of any agricultural commodity required for domestic consumption; (2) encourage the domestic consumption of such commodities or products by diverting them by the payment of benefits or indemnities or by other means, from the normal channels of trade and commerce; and (3) finance adjustments in the quantity planted or produced for market of agricultural commodities. The amounts appropriated under this section shall be expended for such of the above-specified purposes, and at such times, in such manner, and in such amounts as the Secretary of Agriculture finds will tend to increase the exportation of agricultural commodities and products thereof, and increase the domestic consumption of agricultural commodities and products thereof: Provided, That no part of the funds appropriated by this section shall be expended pursuant to clause (3) hereof unless the Secretary of Agriculture determines that the expenditure of such part pursuant to clauses (1) and (2) is not necessary to effectuate the purposes of this section: Provided further, That no part of the funds appropriated by this section shall be used for the payment of benefits in connection with the exportation of unmanufactured cotton.

Mr. TARVER. Now, the payment of the subsidy which has been provided for the producers of cotton has not been made, and the committee is interested in determining what reasons exist for the failure to begin execution of the program in that respect, and what action is contemplated in the immediate future with reference to it. Mr. PORTER. I might say that on August 23, I believe it was, this program was agreed upon and adopted. It was in the closing days of the last session of Congress, as you recall.

When it was approved, the Cotton Division of the A. A. A., and the Administrator's office or the administrative officials there, immediately began to implement the program that had been approved by providing the proper administrative procedure and forms.