Mr. GODFREY. It gives you an idea of how we are actually operating. To begin with, we thought that all programs in ASCS fall in two categories, one actually working with farmers; the other working with commodities which we acquire through farm programs or for use under school lunch or welfare distribution.

ROLE OF THE SALES MANAGER

Mr. WHITTEN. Where does the sales manager of the Commodity Credit Corporation fit in? We created that position some years ago, and now it appears that he hasn't got as much authority as a girl selling safety pins in a 10-cent store. Where does he figure there?

Mr. GODFREY. The sales manager functions under the Foreign Agricultural Service and still has the title of sales manager.

Mr. WHITTEN. Has he anything to do with his title?

Mr. GODFREY. Yes.

Mr. WHITTEN. What?

Mr. GODFREY. He has the same authority that he previously had. His activity

Mr. WHITTEN. We never have been too happy about his having had enough previously.

Mr. GODFREY. I can call on one of the deputies of Foreign Agricultural Service. His sales are in the foreign field. Domestic sales are handled in our domestic setup.

Mr. WHITTEN. So the thing to do is get Foreign Agricultural Service here.

pea

Mr. GODFREY. He has been doing a very effective selling job in the last year. I might add that plug for him. Our work deals primarily with farmers, with commodities, and then in the management field. We have an Associate Administrator, Ed Jaenke, who was with us yesterday, and an Executive Assistant to the Administrator. Then the small policy staffs. You met some of these: Joe Moss heads up the cotton policy staff; Don Anderson, livestock and dairy; Art Thompson, the grain staff; Larry Myers, the sugar policy staff; nuts, Jim Thigpen; tobacco, Claude Turner; conservation and land use, Fred Ritchie who is here. We have combined from the old Commodity Divisions one policy and Program Appraisal Division. They do all the economic work and statistical work for all of the commodities and for all of the work of the Agency. This is headed by Murray Thompson who is not with us. This Policy and Appraisal Division, is what you would commonly call the workshop for preparing dockets to go forward to the CCC Board, and the statistical and economic analysis of our programs that backs them up.

If I could move over to the other side, one important aspect is dealing with programs with farmers. Here we have the Deputy Administrator for State and County Operations. He would have been here but he is out of town attending some meetings. We have his assistant with us, Mr. Charles Cox, and Mr. Chuck Frazier is another assistant. Under them we have the six area directors. This is one more than we had before. The six area directors supervise our State offices, and county offices.

Mr. WHITTEN. I think that speaks for itself.

Mr. GODFREY. Then the Deputy Administrator for Commodity Operations, with two principal divisions: Procurement and Sales, en

tirely separate from the managing of our inventories. Sales here means domestic sales. Procurement means the procuring of commodities that we acquire in price support and for food distribution and so forth. The other Division is the Inventory Management Division.

The big item here is the fact that we were able to consolidate several of our commodity offices. We have actually consolidated the Dallas Commodity Office with the Kansas City Commodity Office; grain activities from the Portland Commodity Office also went into Kansas City. We consolidated the Evanston and Minneapolis Commodity Offices into Evanston, and transferred the Cincinnati and Portland processed activities to Minneapolis. We wound up with three less grain commodity offices.

Mr. WHITTEN. I have had a number of people contact me, disturbed about rumors that you plan to divide up the cotton office in New Orleans into two sections, one having to do with all this equipment and the other to do with the other work. The folks who contacted me feel that that would be most unsound. In fact, I have heard nothing that would indicate it, other than the rumors and reports. They have been disturbed by it. Do you have any such plan?

Mr. GODFREY. We have no such plan for dividing the office. The Department has created a central office for handling payroll and personnel documents. It is separate and apart from the New Orleans Commodity Office, and there is no such plan to divide the office. Here we have a cotton office in New Orleans, a grain office in Kansas City, and a grain office at Evanston, and a processed commodity office at Minneapolis. This is what we now have. We were able to do this primarily because of two reasons: The reduction in stocks of grains; and the creation of a central Data Processing Center at Kansas City which we discussed with you last year.

You know Mr. Bob Beach here, with whom you are familiar, heads up our management shop. Under the management shop we have our Data Processing Center at Kansas City and a Management Field Office in Kansas City also, which handles all management problems for all field offices.

The other offices here are housekeeping offices. We are making tremendous progress in eliminating paperwork on CCC activities.

Mr. WHITTEN. I think that pretty well covers that.

Mr. GODFREY. I didn't want to take too much time to talk about organization but I did want to point out a few things to you so that you would be familiar with it.

Mr. WHITTEN. I think that is fine.

Mr. ADDABBо. Mr. Chairman.

Mr. WHITTEN. Mr. Addabbo.

SALE OF TOBACCO

Mr. ADDABBO. We were discussing yesterday the sale of tobaccocould you possibly trace on that board the procedure you went through on the sale of tobacco?

Mr. GODFREY. To begin with, tobacco that was sold was still in loan stocks. It never had been acquired by Commodity Credit. It was still in loan stocks. The tobacco co-ops are supervised under this Farmers Programs Division. The tobacco co-op made a recommenda

Mr. GODFREY. It gives you an idea of how we are actually operating. To begin with, we thought that all programs in ASCS fall in two categories, one actually working with farmers; the other working with commodities which we acquire through farm programs or for use under school lunch or welfare distribution.

ROLE OF THE SALES MANAGER

Mr. WHITTEN. Where does the sales manager of the Commodity Credit Corporation fit in? We created that position some years ago, and now it appears that he hasn't got as much authority as a girl selling safety pins in a 10-cent store. Where does he figure there?

Mr. GODFREY. The sales manager functions under the Foreign Agricultural Service and still has the title of sales manager.

Mr. WHITTEN. Has he anything to do with his title?

Mr. GODFREY. Yes.

Mr. WHITTEN. What?

Mr. GODFREY. He has the same authority that he previously had. His activity

Mr. WHITTEN. We never have been too happy about his having had enough previously.

Mr. GODFREY. I can call on one of the deputies of Foreign Agricultural Service. His sales are in the foreign field. Domestic sales are handled in our domestic setup.

Mr. WHITTEN. So the thing to do is get Foreign Agricultural Service here.

Mr. GODFREY. He has been doing a very effective selling job in the last year. I might add that plug for him. Our work deals primarily with farmers, with commodities, and then in the management field. We have an Associate Administrator, Ed Jaenke, who was with us yesterday, and an Executive Assistant to the Administrator. Then the small policy staffs. You met some of these: Joe Moss heads up the cotton policy staff; Don Anderson, livestock and dairy; Art Thompson, the grain staff; Larry Myers, the sugar policy staff; peanuts, Jim Thigpen; tobacco, Claude Turner; conservation and land use, Fred Ritchie who is here. We have combined from the old Commodity Divisions one policy and Program Appraisal Division. They do all the economic work and statistical work for all of the commodities and for all of the work of the Agency. This is headed by Murray Thompson who is not with us. This Policy and Appraisal Division, is what you would commonly call the workshop for preparing dockets to go forward to the CCC Board, and the statistical and economic analysis of our programs that backs them up.

If I could move over to the other side, one important aspect is dealing with programs with farmers. Here we have the Deputy Administrator for State and County Operations. He would have been here but he is out of town attending some meetings. We have his assistant with us, Mr. Charles Cox, and Mr. Chuck Frazier is another assistant. Under them we have the six area directors. This is one more than we had before. The six area directors supervise our State offices, and county offices.

Mr. WHITTEN. I think that speaks for itself.

Mr. GODFREY. Then the Deputy Administrator for Commodity Operations, with two principal divisions: Procurement and Sales, en

tirely separate from the managing of our inventories. Sales here means domestic sales. Procurement means the procuring of commodities that we acquire in price support and for food distribution and so forth. The other Division is the Inventory Management Division.

The big item here is the fact that we were able to consolidate several of our commodity offices. We have actually consolidated the Dallas Commodity Office with the Kansas City Commodity Office; grain activities from the Portland Commodity Office also went into Kansas City. We consolidated the Evanston and Minneapolis Commodity Offices into Evanston, and transferred the Cincinnati and Portland processed activities to Minneapolis. We wound up with three less grain commodity offices.

Mr. WHITTEN. I have had a number of people contact me, disturbed about rumors that you plan to divide up the cotton office in New Orleans into two sections, one having to do with all this equipment and the other to do with the other work. The folks who contacted me feel that that would be most unsound. In fact, I have heard nothing that would indicate it, other than the rumors and reports. They have been disturbed by it. Do you have any such plan?

Mr. GODFREY. We have no such plan for dividing the office. The Department has created a central office for handling payroll and personnel documents. It is separate and apart from the New Orleans Commodity Office, and there is no such plan to divide the office. Here we have a cotton office in New Orleans, a grain office in Kansas City, and a grain office at Evanston, and a processed commodity office at Minneapolis. This is what we now have. We were able to do this primarily because of two reasons: The reduction in stocks of grains; and the creation of a central Data Processing Center at Kansas City which we discussed with you last year.

You know Mr. Bob Beach here, with whom you are familiar, heads up our management shop. Under the management shop we have our Data Processing Center at Kansas City and a Management Field Office in Kansas City also, which handles all management problems for all field offices.

The other offices here are housekeeping offices. We are making tremendous progress in eliminating paperwork on CCC activities.

Mr. WHITTEN. I think that pretty well covers that.

Mr. GODFREY. I didn't want to take too much time to talk about organization but I did want to point out a few things to you so that you would be familiar with it.

Mr. WHITTEN. I think that is fine.

Mr. ADDABBO. Mr. Chairman.

Mr. WHITTEN. Mr. Addabbo.

SALE OF TOBACCO

Mr. ADDABBO. We were discussing yesterday the sale of tobacco— could you possibly trace on that board the procedure you went through on the sale of tobacco?

Mr. GODFREY. To begin with, tobacco that was sold was still in loan stocks. It never had been acquired by Commodity Credit. It was still in loan stocks. The tobacco co-ops are supervised under this Farmers Programs Division. The tobacco co-op made a recommenda