THE JUDICIARY

WITNESSES

WARREN OLNEY III, DIRECTOR, ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS

JOHN C. AIRHART, DEPUTY ASSISTANT DIRECTOR

DARWIN H. ANDERSON, BUDGET AND ACCOUNTING OFFICER

Mr. THOMAS. It is nice to have such distinguished gentlemen with us this morning from the judiciary, Mr. Warren Olney III, Director, Administrative Office of the U.S. Courts; John C. Airhart, Deputy Assistant Director, and Darwin H. Anderson, budget and accounting officer.

We have two or three items that we are interested in. One is "Fees of jurors and commissioners, U.S. courts"; No. 2 is "Travel and miscellaneous expenses, U.S. courts"; "Salaries and expenses, Administrative Office of the U.S. Courts"; and "Expenses of referees, U.S. courts."

FEES OF JURORS AND COMMISSIONERS

Let us take the first one, "Fees of jurors and commissioners." You are requesting $180,000: Tell us about it, please, sir.

Mr. OLNEY. Mr. Chairman, that is an item over which we have little control. It is to pay the additional costs of jurors and U.S. commissioners. We need more money than we had asked for because of statutory increases in the amounts of their fees.

Mr. THOMAS. Mr. Reporter, we will insert pages 17 and 19 of the justifications in the record at this point.

(The pages referred to follow :)

COURTS OF APPEALS, DISTRICT COURTS AND OTHER JUDICIAL SERVICES
Fees of jurors and commissioners, U.S. courts, 1959

1 The sum of $55,000 of this appropriation was obligated in 1958 under a special provision in the text.

PURPOSE AND NEED FOR SUPPLEMENtal funds

Fees of U.S. commissioners

Payments to commissioners for services in 1958 are expected to aggregate $760,000 and will include fees at higher rates under Public Law 85-276 for the last 10 months of the year. Because the higher rates will be in effect for the full year 1959 it is estimated that fees will total $780,000. The sum of $725,000 presently is available for fees of commissioners. To meet the estimated cost, an additional sum of $55,000 will be required.

Fees, expenses and costs of jurors

The costs for juries in 1958 amounted to $4,196,300 and included higher statutory fees which were in effect only from September 7, 1957. The estimate for 1959 is $4,315,000, or an increase of $118,700 of which approximately $30,000 is estimated to cover the difference between higher fees being in effect for the full year 1959 as compared with 10 months of 1958, while the remainder, $88,700, will provide funds for a slight increase in payments to jurors. The sum of $4,191,000 presently is available for costs for juries and an additional amount of $124,000 will be needed to complete estimated payments to jurors serving in 1959. A supplemental sum of $124,000 together with funds now available will allow an average increase in payments in 1959 of 2.8 percent over 1958. Expenditures to November 30, 1958, totaled $1,185,295 as compared with $1,128,353 for the same period a year ago, or an average increase in payments of 5 percent. It is recognized that payments for the first 5 months of this year include the higher rates of fees for the full period whereas the same period last year was made up of payments at old rates for 2 months and new rates for 3. It is believed that as the year progresses the current percentage of increase will gradually decrease to the point where funds requested (for a 2.8 percent increase) will be sufficient. Taxes and assessments

To pay the Government's share of FICA taxes on fees paid to U.S. commissioners, it is estimated that an additional sum of $1,000 will be needed in 1959. Mr. OLNEY. The fees were increased early in 1958 and were in effect for about 10 months of that year. The higher rates are payable for the full year 1959.

Mr. THOMAS. How much guesswork is in this figure by the very nature of the proposition, Mr. Olney?

Mr. OLNEY. Considerable.

Mr. THOMAS. When did you make up your estimates?

Mr. ANDERSON. May I answer that, Mr. Chairman?

Mr. THOMAS. Yes.

Mr. ANDERSON. We made up the estimate in late December and I have reviewed it and we are pretty close.

Mr. THOMAS. You are hitting the nail on the head.

Mr. ANDERSON. We are within a few thousand dollars of the additional amount requested.

Mr. THOMAS. This is customarily a deficiency item every year, is it not?

Mr. ANDERSON. Nearly every year, sir.

Mr. THOMAS. It makes sense to handle it that way because it is dependent on matters that are beyond your control; in other words,

on how much work is in the courts. You cannot control it and it gives you a shorter period to look at it.

Mr. ANDERSON. That is correct.

Mr. THOMAS. What is your next item?

Mr. OLNEY. "Travel and miscellaneous expenses."

Mr. THOMAS. You are requesting $178,000. Put pages 23 through

26 in the record at this point.

(The pages referred to follow :)

103, 000

133,000

+30,000

372,000

372,000

2,975,000

3, 153, 000

178,000

3,500

3,500

2,978, 500

3,156, 500

178,000

The "Miscellaneous expense" portion of this appropriation provides the funds with which to purchase the supplies, equipment, lawbooks, printed forms, and communication services for the U.S. circuit and district courts (except for the offices of referees in bankruptcy). As the fiscal year 1958 progressed it was

noted that the costs of communications, transcripts, printing opinions, and commodities were advancing rapidly; also, in their efforts to keep abreast of the increasing volume of business the courts required more of these facilities and equipment. Funds were inadequate to meet all the demands and it therefore became necessary to defer the purchase of numerous essential items of equipment and, lawbooks. Fiscal year 1959 thus began with a backlog of unfilled requests from court officials totaling nearly $80,000. A review of the needs of the courts in the way of physical facilities and the policies of administering the appropriation concerned indicates that every effort is being made to effect economies of operation, but yet additional funds are needed to provide the courts with necessary tools and equipment. The following requests for additional funds, except for penalty mail, are presented for the purpose of providing funds to eliminate the backlog and to meet current needs from the current appropriation. Communication services

An additional amount of $39,000 will be required in 1959 to meet the current rate of payment for communication services. The estimate is comprised of two elements: (1) $18,000 for telephone rate increases authorized by competent authority: (2) $21,000 for increases in reimbursements to the General Services Administration resulting from changes in billing procedure under GSA Circular 93, revised May 13, 1957.

The increases in rates and reimbursement to GSA are changes over which there is no administrative control on the part of the courts and the cost to the courts rises in the same proportion as to other Government agencies.

Penalty mail

The passage of the Postal Rate Increase Act, 1958, effective August 1, 1958, places an additional burden upon the appropriation through the payment at higher rates for the use of the penalty mail privilege. It is estimated that the additional cost in 1959 will be $28,000, or about one-third more than funds presently available.

Printing opinions of courts of appeals

An increase in the number of opinions produced by courts of appeals and the rising contract rates therefor indicate that an additional sum of $11,000 will be required in 1959. Obligations for the first 5 months of this year total $5,000 more than for the same period a year ago. It is requested that the sum of $11,000 be included in the supplemental appropriation.

Transcripts allowed by the courts

At its two most recent meetings, March 1958 and September 1958, the Judicial Conference of the United States authorized increases in maximum rates to be charged by court reporters for transcripts.

In March, the ceiling on ordinary transcript was increased from 55 cents to 65 cents per page for the original and from 25 cents to 30 cents per page for copy. Maximum rates for daily transcript were increased in September on a 'sliding scale basis from $1.30 to $1 per page for the original and from 50 cents to 35 cents per page for copies as the number of copies ordered increased. The cost to the Government for furnishing transcripts on appeal in forma pauperis has therefore increased by approximately $12.000 per annum and a supplemental appropriation will be needed to cover these increases.

Photocopy paper

By turning to mechanical means of producing copies of documents requested of offices of clerks of court, the clerks have been able, to a large degree, with present staff to handle the increase in volume of this phase of their work. It Is necessary, however, to furnish these offices with supplies required to produce the copies. In order to fill requests for photocopy paper for use in preparing such copies an additional appropriation of $10.000 will be required. It is requested that this sum be included in the supplemental appropriation for 1959. Equipment and lawbooks

The fiscal year 1958 closed with pending unfilled orders for lawbooks, general office equipment, and furniture totaling approximately $80.000. Since that time numerous orders have been filled but the more recent requests have been placed on the pending list. The lawbooks should be furnished to the courts without delay. Items of office equipment and furniture are required for normal operations and should be provided when the need arises. In order to close the fiscal

year 1959 with no backlog other than current requisitions and to foresee the possibility of providing the courts with these items during 1960 with funds appropriated for that year, it is urgently requested that an additional sum of $78,000 be appropriated for 1959.

MISCELLANEOUS EXPENSES

Mr. THOMAS. You have an item for $80,000 for lawbooks and general equipment.

Gentlemen, turn to page 23 and read the last paragraph:

The miscellaneous expense portion of the appropriation provides the funds with which to purchase the supplies, equipment, lawbooks, printed forms and communication services for the United States circuit courts and district courts (except for the offices of referees in bankruptcy). *** Fiscal year 1959 thus began with a backlog of unfilled requests from court officials totaling $80,000. What is that item?

Mr. OLNEY. That is for lawbooks, equipment of all kinds that the courts need, even including such things as copy machines.

Mr. THOMAS. Is that an annual expenditure, a recurring item every year?

Mr. OLNEY. Yes. We have annual expenses for these items. But, the sum we are requesting here will not be required again in 1960 because it is for the purpose of clearing up a backlog of orders.

VOLUNTARY REDUCTION IN REQUEST

Might I say at the outset we were asking for a total of $178,000 and that can well be cut to $160,000. We have been able to pick up a considerable part of this backlog and there is $18,000 that can be cut off of that.

Mr. THOMAS. This represents a cut in your 1959 appropriation of $178,000?

Mr. OLNEY. Yes.

Mr. THOMAS. What was your budget estimate?

Mr. OLNEY. The amount we are requesting can be reduced from $178,000 to $160,000.

Mr. THOMAS. I mean what was the amount you requested before the regular committee for 1959, $3.2 or $3.7 billion?

Mr. ANDERSON. The appropriation for 1959 is $2,975,000.

Mr. THOMAS. What was your request? Your appropriation was $2,975,000. What did you request of the committee for 1959? You made a reduction of $123,300.

Mr. ANDERSON. $123,300 more, that is correct.

Mr. THOMAS. If we were to give you that much, do you think we would all be getting in trouble here?

Mr. OLNEY. Might I explain the reason for this?

During the year we have had increases in communication costs.

Mr. THOMAS. $39,000 for the payment of communications services, comprised of $18,000 for telephone rate increases, $21,000 for increases in disbursements to the General Services Administration. How much was your penalty mail, $28,000?

Mr. ANDERSON. That is right.

Mr. THOMAS. What is your next one, printing of opinions of courts of appeals; obligations for the first 5 months were $5,000 more than the same period last year. It is requested that the sum of $11,000 be included.