Mr. TOLSON. The supplies and materials item for 1943, already authorized, totals $722,133. The request totals $270,000, which makes a total of $992,133. This item covers the cost of purchasing stationery, ammunition, chemicals, and similar items for our work. Mr. LUDLOW. Most of it is for firearms supply and stationery? Mr. LUDLOW. Suppose we go down the list and take the next item. STORAGE OF VEHICLES Mr. TOLSON. The next item is "storage." Mr. LUDLOW. Storage of vehicles, $36,000. Why do you need to expand your storage facilities? Mr. TOLSON. That is for the storage of the additional cars which we hope to get. Mr. LUDLOW. That explains that item entirely? Mr. LUDLOW. The next item is for communications service, $187,500, which is a very substantial item. That covers long-distance service? Mr. TOLSON. That item covers telephone, telegraph, and teletypewriter in the field and at the seat of government, and for the additional amount of work, due to the additional personnel and added jurisdiction of the Bureau. Mr. LUDLOW. That includes switchboard service? Mr. TOLSON. Yes. Mr. LUDLOW. You have a regulation regarding the use of longdistance telephone service, do you? Mr. TOLSON. We do not permit, at the seat of government, any person to make a long-distance telephone call unless the call is approved by one of two officials at the seat of government. We are keeping very close check on how that is used. The telephone calls are determined to some extent by the nature of our work. When a criminal case breaks we have to communicate promptly with our agents. Mr. LUDLOW. And use the quickest means of communication? Mr. TOLSON. Yes. Surveys are made of the telephone service from time to time, and we try to keep such expenses down to the absolute minimum. Mr. RABAUT. You have a check made on it? Mr. TOLSON. Yes. TRAVEL EXPENSES Mr LUDLOW. You have a half million dollars extra here for traveling expenses; is that because of the increased personnel? Mr. TOLSON. Yes. I would like to say this, that since 1937 we have reduced the average cost of travel per agent from $1,079 to $800 a year. Mr. LUDLOW. How did you bring that about; through reduction of subsistence allowance? Mr. TOLSON. Not in subsistence allowance, but through the establishment of what we call resident agents headquarters. When we determine there is enough work to keep a man busy for a certain length of time in a particular locality his headquarters are changed to that city and he does not get per diem when he is in that city. Mr. RABAUT. And you also cut down the per diem expense. Mr. LUDLOW. There has also been an increase in the subsistence allowance? Mr. TOLSON. Yes; from $5 to $6; covering the entire Department. But we have reduced the travel nevertheless down to $800 per man. When an agent is going to stay in a city for as much as 30 lays his headquarters are changed to that city. Mr. LUDLOW. That becomes his station? Mr. TOLSON. That is true and this policy has brought about a large savings in travel expense. Mr. RABAUT. How has it affected saving the travel; by reducing the amount of per diem under that system? Mr. TOLSON. Our policy of establishing resident agencies has reduced both travel and per diem expenses. Mr. RABAUT. And that cuts down the amount of travel? Mr. TOLSON. Yes. Mr. RABAUT. As well as the per diem. Mr. TOLSON. Yes. TRANSPORTATION OF THINGS Mr. LUDLOW. For transportation of things, $134,020. What is the explanation of that? Mr. TOLSON. This item covers the shipment of firearms, technical equipment as well as the shipment of supplies and equipment; and also for the transportation of the personal effects of agents who are transferred from one field office to another. RENTAL OF OFFICES Mr. LUDLOW. The appropriation for rental for the fiscal year 1943, in the regular bill, was $330,938. Mr. TOLSON. Yes. Mr. LUDLOW. While you are estimating in the supplemental, $262,500, which seems to be rather out of proportion, does it not? Mr. TOLSON. We have had to enlarge every office in the service, insofar as space is concerned. For example, the office that 2 years ago had 8 agents now has 30 to 40 agents in order to handle the national defense work. Mr. LUDLOW. Are you located in Federal buildings? Mr. TOLSON. We locate our offices in Federal buildings wherever possible, in many cases space is not available in those buildings. REPAIRS AND ALTERATIONS Mr. LUDLOW. For repairs and alterations, $30,046. Mr. TOLSON. This covers the repairs to automobiles and repair of firearms and the proper maintenance of technical equipment. CONFIDENTIAL FUND Mr. LUDLOW. For operation of miscellaneous, in the regular bill, $98,422. What does that cover? Mr. TOLSON. $98,422, of which $50,000 is to increase the confidential fund. Mr. LUDLOW. Is the confidential fund so confidential that you had rather not discuss it on the record? in very Mr. TOLSON. No; the confidential fund was set up and approved by this committee for the purpose of permitting payment of funds, limited cases, in instances where the name of the person to whom the payment is made cannot be divulged. None of the money can be withdrawn from this fund except with the approval of the Attorney General. It is not necessary to make a regular accounting such as is true with respect to the other items and purchases which are made by the Bureau. Mr. LUDLOW. That is a very important fund? Mr. TOLSON. Very definitely. We would not be able to procure information in many cases if we had to disclose the identity of the person furnishing the information. EMERGENCY FUND Mr. LUDLOW. You have an emergency fund in the regular bill of $100,000; nothing is provided in the supplemental? Mr. TOLSON. No. Mr. LUDLOW. What is the explanation of this item? Mr. TOLSON. That fund was set up several years ago in connection with kidnaping cases, upon the recommendation of former Attorney General Cummings, who felt that the funds should be available, so that if the Congress was not in session the funds could be used in the event of some big kidnaping case breaking. Mr. RABAUT. You do not recommend discontinuing it. Mr. TOLSON. No. Mr. JOHNSON of West Virginia. Kidnaping does not amount to a great deal now, does it? Mr. TOLSON. Yes. We had 20 cases, and solved all of them during the last fiscal year. Mr. JOHNSON of West Virginia. How much are you asking for here all told? Mr. TOLSON. We are asking for this fiscal year, $865,000, and for the next fiscal year, $9,200,000, all of which is predicated upon the national defense activities. D.STRIBUTION OF SUPPLEMENTAL ESTIMATE FOR ADDITIONAL PERSONNEL FOR FISCAL YEAR 1942 Mr. WIGGLESWORTH. Mr. Tolson, I have not examined or seen a break-down in detail, but the $865,000 item you are requesting by way of supplemental for the present fiscal year, is all for personnel? Mr. TOLSON. The $865,000 item was based upon an existing deficiency in our current appropriation as of March 1 of $483,521, and the balance of $381.479 for additional personnel and attendant expenses. Mr. WIGGLESWORTH. I understand that, but what is the explanation of the deficiency? Mr. TOLSON. The deficiency was caused by greatly increased operating expenses brought about by the war emergency. Mr. WIGGLESWORTH. What expenses? You say you have 145 departmental and 757 field, or 902 personnel. Mr. TOLSON. In addition to the increased personnel the war emergency made it necessary for us to increase our expenses relating to space, which had to materially increase to supplies and equipment which has made it possible to function in all areas regardless of emergency conditions. Mr. WIGGLESWORTH. Is that the explanation of the $865,000 deficiency? Mr. TOLSON. Yes. Had war not been forced on our country many items of expense absolutely essential to our proper functioning under war conditions would not have been necessary. Mr. WIGGLESWORTH. What else goes into the item of $865,000? Mr. TOLSON. Only the items for additional personnel and a sufficient amount to cover our deficiency was included in this item. Mr. WIGGLESWORTH. What was the cause of that? Could you nish us a detailed statement of why you ran over $865,000 in the present fiscal year? fur Mr. TOLSON. The items making up the $865,000 deficiency and supplemental item are reflected in the following itemized statement : Itemization of supplemental request as approved by Budget Bureau Mr. WIGGLESWORTH. What is the explanation of the balance of the $865,000? Mr. TOLSON. The balance is for additional personnel which was requested in the supplemental appropriation rather than in the deficiency. Mr. WIGGLESWORTH. When was that requested? Mr. TOLSON. Our original request went forward to the Bureau of the Budget on March 25, 1942. Mr. WIGGLESWORTH. It has never been acted upon by the Congress heretofore? Mr. TOLSON. No; it has not. Mr. WIGGLESWORTH. In other words, you are really coming to us and requesting additional personnel, 3 weeks before the end of the fiscal year, for persons you have had on the roll for perhaps 6 months? Is that not about the picture? Mr. TOLSON. A number of employees included in this estimate have been put on the rolls since the estimate was submitted to the Bureau of the Budget in March. Mr. LUDLOW. Since March? Mr. TOLSON. That is correct. It was felt that appointments should continue in view of the tremendous increase in work being received by us for attention. Mr. WIGGLESWORTH. Did you get any indication from the committee, or from the subcommittee before putting on this personnel, or did you just go ahead and put them on and then come up after you had acted? Mr. TOLSON. We went ahead on the basis of the request to the Bureau of the Budget. Mr. WIGGLESWORTH. When did the Bureau of the Budget approve the request? Mr. TOLSON. It was sent to Congress on May 28. Mr. WIGGLESWORTH. When did you have your first hearings? Mr. TOLSON. Our hearings at the Bureau of the Budget were held on April 14, 1942. Mr. WIGGLESWORTH. Even if this is an emergency matter could you not have come up here and told us the situation and gotten some kind of informal authority to go ahead rather than to just proceed without approval either by the Budget or this committee? Mr. TOLSON. In the past we have followed the procedure of going ahead after receiving an informal ruling of the Bureau of the Budget as to the status of our requests for supplemental appropriations. Mr. WIGGLESWORTH. It seems to me that you ought to get some kind of approval of the Congress; if there is something urgent about it it might be taken up in an informal manner, I suppose. Mr. TOLSON. The Congressman's suggestion will be borne in mind. In this particular instance the burden of national defense work covering urgent espionage, sabotage, and other investigative matters including the May Act were considered of such urgency in the successful prosecution of the war effort that it was believed most necessary to continue our program of appointments so that we could properly continue to handle the greatly increased work being constantly referred to us. |