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Mr. SHERWOOD. They will be divided up between the east coast and the west coast and they will be located preferably at locations of existing transmitters, so as to cut down on the need for engineer personnel in operation.

The CHAIRMAN. They will be built new, from the ground up?
Mr. SHERWOOD. Yes, sir.

The CHAIRMAN. On Government land, or will you have to buy land? Mr. SHERWOOD. No; they will be built on the land of the present licensees.

The CHAIRMAN. That is all included?

Mr. SHERWOOD. Yes, sir.

The CHAIRMAN. What equities will you have in all of this material after the war?

Mr. SHERWOOD. It is a question of complete Government ownership, but with each company, where the transmitter is located at its location and the technical operation conducted by that company, there is provision for an option to buy by the private company.

The CHAIRMAN. That is all arranged for by contract?

Mr. SHERWOOD. Yes, sir.

The CHAIRMAN. What are those unvouchered and unallotted funds? What do you mean by "unvouchered" or "unallotted" funds? (After discussion off the record:)

BREAK-DOWN OF ESTIMATE FOR OVERSEAS BRANCH

The CHAIRMAN. We will include in the record here this page 34, and also page 33.

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AVERAGE SALARY OF OVERSEAS BRANCH PERSONNEL

The CHAIRMAN. Are there any questions before we leave page 34? Mr. TABER. Yes. I notice your salary rate is running moderately liberal in these set-ups. For instance, it is somewhere around an average of $2,700 or $2,800 for the most of it; but the thing that gets me is this Eastern Press and Radio Bureau. Your average there on that set-up, as of today, is $1,900, and your average on the proposed set-up, as of June 30, is $2,860. What is the reason for that?

Mr. SHERWOOD. Because of the expansion that has to go on in that bureau, which is largely specialists in foreign languages and in specialized knowledge of foreign territories.

Mr. TABER. Where can I find the green sheet that shows the breakdown of either one of those groups?

Mr. SHERWOOD. Page 15.

Mr. TABER. The large items of employees are still in the more moderately priced groups, as a general rule, and those set up on your page 17 of these green sheets show $1,233,000; whereas your item there on that page shows $823,000.

Mr. EISENHOWER. There must be some mistake; because I just calculated from the green sheet that the average is almost identical in both cases-about $2,700 per year. Where did you get the other?

DISCUSSION OF AMOUNT OF ESTIMATES FOR OVERSEAS BRANCH

Mr. TABER. On page 34. In that column it says "444, Eastern Press and Radio, $823,000." Now, you have that same thing on page 17 of the green sheet schedule as $1,233,000.

Mr. EISENHOWER. There is something wrong. We will check that. Mr. TABER. There is no use spending any more time on that until you find out.

Now, your personal services are down at $5,457,000 net, with a notation that there will be some delay in filling these new positions; but your communications are away up in the air-$2,833,000. Why are they so high?

Mr. DAVIS. We have to send a lot of news overseas, sir.

Mr. SHERWOOD. Also, we have a great volume of communications back and forth with all of the outposts-information coming back and the news from here going out.

Mr. TABER. Then you have printing and binding, $2,235,000. That is made up of what? Where is there a break-down on that?

Mr. EISENHOWER. There is a complete break-down in the book before you. You will find that item mainly under overseas publications, under "Other objects of expenditure."

Mr. TABER. Where?

Mr. SHERWOOD. Page 229.

Mr. TABER. That shows $2,184,000 for the fiscal-year rate. Then what is this Special projects?

Mr. DAVIS. You mean in the Bureau of Overseas Publications, page 234, or special projects of the whole?

Mr. TABER. Special projects, on page 234.

Mr. SHERWOOD. The cost there is for purchase of photographs, radiophoto charges, and overseas motion picture costs. For the Overseas Branch as a whole; the largest item under Special projects is the leasing of time of the short-wave radio stations.

Mr. TABER. That is the foreign radio, or here in this country?

Mr. SHERWOOD. No; this has nothing to do with any broadcasting in this country; this is all broadcasting from this country to overseas points.

The CHAIRMAN. You pay nothing for any broadcasting in this country?

Mr. SHERWOOD. No, sir; not in this branch.

Mr. DAVIS. With one exception.

The CHAIRMAN. What is that one exception?

Mr. DAVIS. There is an item to cover time on four stations in Alaska. That is for our programs on four commercial radio stations in Alaska which have no business any more and which are practically the only means of general public communication in Alaska. The CHAIRMAN. This is merely to maintain them?

Mr. DAVIS. We buy time on these stations to provide news and entertainment to American troops stationed there.

The CHAIRMAN. Otherwise they would not be self-sustaining?
Mr. DAVIS. No.

Mr. SHERWOOD. We have done very much the same thing in Hawaii.
Mr. TABER. Now what is "Other contractual services"?

Mr. SHERWOOD. That is on page 245.

Mr. EISENHOWER. Under each of the five bureaus, Mr. Taber, there is an 07.2 item. The biggest one is on pages 245 and 246, amounting to $60,000 for the first 4 months and $179,836 for the next 8 months for warehousing charges.

Mr. TABER. Where is the "Special projects"?

Mr. EISENHOWER. Under 07.1?

Mr. TABER. Yes.

Mr. EISENHOWER. The largest item starts on page 90. That is one of the largest items there-$1,650,779 for leasing of time and facilities. The other large item is on page 234, under "Special

projects."

Mr. TABER. Well, it says "Recording services."

Mr. EISENHOWER. The actual leasing of time starts at the bottom of page 91.

Mr. DAVIS. $733,000.

Mr. TABER. Then you have some other communications in here. You have some wireless communications that seem to be in here.

Mr. DAVIS. That is a subitem under "Special projects"; specifically, it is for leasing transmitters for sending radio programs. Mr. EISENHOWER. This is done by contract.

Mr. TABER. Now, where do I find any break-down on this "Equipment" business, or is there not any?

Mr. EISENHOWER. The largest item starts on page 97-$5,655,986. Several items on equipment also appear in the justification notes of other bureaus.

Mr. LUDLOW. Is there any uniformity as to your communication field, or does it fluctuate considerably?

Mr. SHERWOOD. It fluctuates very considerably.

Mr. LUDLOW. About how much wire news do you file abroad a day, or a week?

Mr. SHERWOOD. How many words?

Mr. LUDLOW. Just an estimate.

Mr. SHERWOOD. We file about 31,600 words daily now, but not more than 3,000 words to any one country. The average is about 1,000. The estimates call for 7,500 additional words a day.

Mr. TABER. Do you have any more information on that employee business?

Mr. EISENHOWER. Yes, sir. The figure on the master sheet is correct; the figure on the green sheet is correct; the figure on page 34 is wrong.

Mr. TABER. What is the figure on page 34 that is wrong?

Mr. EISENHOWER. If you will run down to the third line, it should be 444 people, at a total cost of $1,223,220. And down at the bottom, the total should be $4,416,152, which checks with the over-all total on the green sheets.

Mr. TABER. Now you have some other items like "Overseas publications." That looks like a pretty good size, in your salary set-up, and your outpost bureaus look like a pretty good size, on the average.

Mr. DAVIS. The Outpost Bureau is scheduled for 750 employees, 675 of whom will be in foreign countries. Many of these people can be hired on the spot. The number of Americans we send abroad is not more than two or three hundred.

Mr. EISENHOWER. About 300 out of a total of 675.

Mr. TABER. I believe that is all I have in mind now.

Mr. EISENHOWER. May I say just a word before we leave this?
The CHAIRMAN. Yes.

Mr. EISENHOWER. We have prepared these estimates so that each bureau's costs can be found in one place. We thought this would be most helpful to the committee. However, this makes it impossible to find in any one place the details of all communication costs, for example-except a figure showing the total. If we had put all communication costs together, then you could not find out what a particular bureau costs. I hope it will be satisfactory this way.

DOMESTIC BRANCH, ADDITIONAL PERSONNEL

The CHAIRMAN. Turning to page 303, "Domestic Branch," you have an increase of personnel there of 96 departmental and 81 in the field. What is the organization and function of your News Bureau there, Mr. Davis?

NEWS BUREAU

(See p. 448)

Mr. DAVIS. That News Bureau, as it is listed on page 303, includes Washington and the field as well. The primary function of the News Bureau is to collect and disseminate war information to the news media of the Nation. The fundamental purpose of the News Bureau is to perform this function in the manner and by the means best calculated to achieve the most widespread understanding of the war and its ramifications.

In pursuit of this purpose, the News Bureau operates as a headquarters service bureau, whose information facilities are available to press and radio 24 hours a day-7 days a week.

The News Bureau reviews, edits, and issues domestically most of the Government news related to the war effort, with particular attention to such material as may be broader in scope than the authority of a single department or agency. It serves as a consultant and collaborator with agencies which issue their own material through their own press divisions, such as the Navy Department and War Department. The Bureau likewise services the Overseas Branch, O. W. I., and undertakes to analyze and process the informational requirements of the United Nations as well as enemy propaganda.

In order to best achieve these several functions the News Bureau is organized into five main divisions. These divisions are the News Division, the United Nations Division, the Foreign Sources Division, the Overseas Division, the Field Operations Division.

In the field, our news work is principally covering news of the O. E. M. agencies-W. P. B., O. P. Á., O. D. T., and so on. We believe that this service needs considerable expansion in order to deal with local stories that come out of these agencies.

The requested increase of 77 positions in the field at a $217,020 per annum rate is to provide the Office of War Information sufficient staff to meet current demands by other Government agencies for war information services. In the interests of efficiency and economy in the cost of the total information program of O. E. M. agencies, the estimates seek to provide a centralized over-all field service that will make unnecessary the development of separate field information services by each agency.

The additional positions will provide personnel for branch offices where none now exist; will permit the full-time assignment of information specialists to local programs of O. P. A., W. P. B., and other agencies in areas where operating needs warrant such assignments; will furnish writers to handle feature stories, campaigns, and radio activities; and will provide essential administrative and clerical assistance.

Mr. LUDLOW. How are these stories cleared through the local newspapers? Do you send them out or do you have a central distribution point where they come and get them?

Mr. EISENHOWER. That is done in several ways, Mr. Ludlow. About 50 Washington representatives of wire services and newspapers are stationed at our pressroom. They handle the main distribution. We are connected by teletype to the field offices and if a story has regional interest rather than national interest it is sent by teletype to the appropriate local offices.

Of this total personnel, 209 are in Washington and 380 are in the field. I think I should say, Mr. Chairman, that the Bureau of the Budget in allowing 380 positions for about 60 field offices understood that there would be no increases in the constituent agencies for information work in the field.

NUMBER OF NEWS FIELD OFFICES

The CHAIRMAN. How many field offices will you have?

Mr. EISENHOWER. We now have 42 and 17 additional branch offices

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