The net effect would be to disqualify as judges disqualify themselves in certain cases-any proprietor, partner, or responsible officer or employee, of any segment of private industry, from acting on behalf of the United States in any of its dealings with such segment of private industry. CHAPTER 93 § 1901. Collecting or disbursing officer trading in public funds or property The section would be made to cover employees as well as officers, and the words "or of any agency" is added after "of the United States." Previously, only "collection and disbursement of the revenues" of the United States, and tracing in funds, debts, or public property of the United States or of any State were concerned. New language would extend the application of the section to any officer or employee "whose official duty or assignment includes the performance of any function with respect to the receipt, handling, custody application or disposition of public funds, trust funds, or other funds coming into his hands in the course, or as the result of the performance of such official duty or assignment." Also, the ban on trading in funds, debts, or public property of the United States or any State would be extended to trading in any funds or property so coming into the hands of such officer or employee. This would cover many situations such as were pointed out in the report of the Comptroller General of the United States on income activities of the Government for which there are no adequate controls, sent to Congress August 10, 1949. As shown in that report, those situations badly need corrective action. The old fine of $3,000 (fixed three-quarters of a century ago, when it represented a heavy one) would be brought up to date by an increase to $10,000, and the maximum term of imprisonment would be increased from 1 to 2 years. § 1905. Disclosure of confidential information and speculation generally As indicated in the changed title for this section, language would be added-in the form of a new second paragraph-to penalize any Government officer or employee who, other than in the proper discharge of his official duties, uses or causes, aids, or permits others to use for purposes of speculation any confidential information about the affairs of any person or firm such officer or employee may obtain in his official capacity. The new third paragraph would ban such officer or employee, while handling the matter concerning any person or firm and for 1 year thereafter, from speculating in securities of such person or firm. § 1911. Receiver mismanaging property The out-dated $3,000 fine would be increased to $10,000 (as in sec. 1901) and offenders would be replaced in their posts and disqualified from holding any other post under the United States. SECTION F RULES OF PROCEDURE WAYS AND MEANS COMMITTEE, SUBCOMMITTEE ON ADMINISTRATION OF THE INTERNAL REVENUE LAWS 1. No major investigation shall be initiated without approval of a majority of the subcommittee. A preliminary report upon any case based upon information from available sources not requiring assignment of investigative staff to field inquiry shall be made upon the request of any two members of the subcommittee. 2. Public hearings shall be held only with the approval of a majority of the subcommittee. Executive sessions shall be held at the call of the chairman. 3. Attendance at executive sessions shall be limited to members of the subcommittee and of the staff and such other persons whose presence is requested or consented to by the subcommittee. 4. An accurate stenographic record shall be kept of the testimony of all wit nesses in public and executive hearings. Any witness may have a stenographic transcript of his testimony at cost. 5. All evidence received in executive hearings shall be secret. It shall not be released without the approval of a majority of the subcommittee, except as provided in rule 9. 6. Any witness summoned at a public or executive hearing, unless the subcommittee by a majority vote determines otherwise, may be accompanied by counsel who shall be permitted while the witness is testifying to advise him of his rights. Counsel shall not testify or make any statement without consent of a majority of the subcommittee present. 7. In a public hearing any person who is the subject of an investigation may at such hearing cross-examine witnesses giving testimony relating to him by submitting questions in writing to the chairman. Such of these questions as may be consented to by a majority of the subcommittee present will be put to the witness by a member of the subcommittee or by a member of counsel to the subcommittee. 8. Any person who believes that testimony or other evidence given in a public hearing tends to defame him or otherwise adversely affect his reputation may file with the subcommittee his sworn statement, concerning such testimony or other evidence, which shall be made a part of the record of such hearing. Such person may testify in person before the subcommittee with the consent of a majority of the subcommittee. 9. No subcommittee report shall be made without the approval of a majority of the subcommittee, provided, however, that at the time any such report is made, one or more members of the subcommittee may make reports supplementary to or dissenting from the majority report. Evidence received in executive hearings may be included in any such report. 10. No summary of a subcommittee report, prediction of the contents of such report, or statement of conclusions concerning any investigation prior to a subcommittee report thereon, shall be released by a member of the subcommittee or of the staff prior to the issuance of the report of the subcommittee. Any member of the subcommittee, however, may, at any time, make statements concerning the subcommittee or its activities to the Ways and Means Committee of the House of Representatives sitting in executive session. 11. No member of the subcommittee or of the staff shall publish or release any report or statement alleging misconduct by any person in any matter under investigation by the subcommittee unless and until such person has been advised of the alleged misconduct and has been given a reasonable opportunity to present to the subcommittee his sworn statement with respect thereto. 12. No member of the subcommittee or the staff shall, for compensation, publish any article or deliver any speech or lecture concerning the subcommittee or its activities while such person is a member of the subcommittee or the staff. 13. For the purpose of taking sworn testimony at public or executive hearings two members of the subcommittee shall constitute a quorum under the provisions of House Resolution 78, Eighty-second Congress, first session. However, if the chairman and the ranking minority member of the subcommittee so agree, one member of the subcommittee shall constitute a quorum for such purpose at any particular hearing. 14. All witnesses at public or executive hearings shall be sworn. 15. Subpenas may be issued by the chairman of the subcommittee or by any other member of the subcommittee specifically authorized by the chairman. August 17, 1951. |