to see if it meets the basic requirements of title IX of the act and can be certified by the Board for credit offset against the Federal excise tax.

Upon request for funds as provided under title III, each State law is checked by this Bureau and the Office of the General Counsel to determine whether it contains the provisions which are necessary if the State is to receive Federal funds for administrative purposes.

The Bureau also maintains a technical staff to advise with States and State agencies on problems of organization and administration of State unemployment compensation laws, including questions of general policy, cooperation with employment offices, claims procedure, deposit of funds, expenditure of funds, statistical reports, reports to public-works agencies, reciprocal agreements among States, and form of reports.

This Bureau cooperates with the United States Employment Service of the Department of Labor on problems relating jointly to unemployment compensation and placement service.

OFFICE OF THE GENERAL COUNSEL

The duties of the Office of the General Counsel include legal advice to the Board, the Executive Director, the directors of the operating bureaus, and the regional directors concerning proposed and enacted unemployment compensation laws, public assistance laws and plans, and all legal aspects of the old-age insurance program. This office cooperates with the Department of Justice in litigation involving the Social Security Act and with States in litigation involving State laws enacted to carry out the terms of the act. It also renders legal advice to the Board and to its bureaus and offices with respect to the legal aspects of methods proposed for providing social security.

BUREAU OF ACCOUNTS AND AUDITS

The Bureau of Accounts and Audits maintains fund accounts covering the Board's appropriations, prepares budgetary data, and conducts an administrative audit of Board expenditures. This Bureau also conducts field audits pertaining to expenditure of Federal grants by State public assistance and unemployment compensation agencies. It advises the Board as to the availability of State and local funds for matching public assistance grants, and as to the adequacy of State accounting and fiscal procedures to account for funds granted by the Board.

BUREAU OF RESEARCH AND STATISTICS

The Bureau of Research and Statistics plans and conducts the statistical service and cooperates with the operating bureaus in the research and analytical work necessary for the administration of the Social Security Act. It conducts research regarding factors causing insecurity, the adequacy of existing legislation, and the problems connected with the accommodation of the Federal and State social security programs to different population groups. In conjunction with the operating bureaus, it carries on special studies related to public-assistance and unemployment compensation administrations in the States and to old-age insurance in its long-range and broad financial aspects. This Bureau also renders continuing consultative service to State statistical organizations concerning statistical reports required by the Board covering public assistance and unemployment compensation, and concerning uniform statistical organization and practice.

BUREAU OF BUSINESS MANAGEMENT

This Bureau is responsible for servicing the Board and its bureaus and offices with respect to procurement of supplies and equipment, selecting quarters and allotting space, furnishing centralized stenographic and typing assistance, maintaining centralized files and records, preparing travel orders, itineraries, vouchers, and other business operations. It conducts personnel training classes covering the basic substantive phases of the Board's work. It is responsible for formulating for the Board's action a consistent personnel policy and for executing this policy, providing the analytical service essential for the recruitment, transfer, and promotion of personnel, classifying positions and maintaining contacts with other Government agencies concerning appointments and retirements. The library of the Board is a part of this Bureau.

INFORMATIONAL SERVICE

The Informational Service is responsible for the dissemination of information and the answering of inquiries from the public as to the provisions of the Social

Security Act which are administered by the Board, and of the public's rights, benefits, and responsibilities under these provisions. This program is conducted through publications of the Board, the direct answering of inquiries, and through other channels of public information and education. The Informational Service also cooperates with States in planning and conducting their informational programs essential for proper administration of public assistance and unemployment compensation.

OFFICE OF THE ACTUARY

The Actuary of the Board is consultant and adviser to the Board with respect to technical actuarial analysis on a long-range basis of all data pertaining to population, employment, wages, and other subjects which are necessary for the Board in planning its operations under the Social Security Act, and in considering proposals concerning the social security program.

REGIONAL OFFICES

The Social Security Board has established 12 regional offices for the purpose of maintaining close relationships with the cooperating States, and of supervising the work of the representatives of the various bureaus and offices of the Board located within each regional area. Each regional director is a representative of the Board in his region and is responsible to the Executive Director for relations between the Board and the States within his region.

FEDERAL DEPOSIT INSURANCE CORPORATION

The Federal Deposit Insurance Corporation was organized under authority of the Banking Act of 1933, approved by the President on June 16, 1933 (Public, No. 66, 73d Cong.). This act was amended by Public, No. 362, approved June 16, 1934 (73d Cong.), by Public Resolution No. 38, approved June 28, 1934 (74th Cong.), and by the Banking Act of 1935, approved August 23, 1935 (Public, No. 305, 74th Cong.).

The management of the Corporation is vested in a board of directors of three members, two of whom are appointed by the President by and with the advice and consent of the Senate, the third member being the Comptroller of the Currency. The capital stock of the Corporation, according to the requirements of law, is as follows: The Treasury of the United States has subscribed $150,000,000. Each Federal Reserve bank has subscribed to stock in an amount equal to onehalf of the surplus of such bank on January 1, 1933, the total amount of such subscription being $139,299,556.99.

The chief function of the Corporation is to insure the deposits of all banks which are entitled to the benefits of insurance under the law, to the extent of $5,000 for each depositor. All national banks and all Federal Reserve member banks are insured under the law, and any bank located in the States of the United States and the District of Columbia which is not a member of the Federal Reserve System, may become insured upon application to and examination by the Corporation, and approval by the board of directors. The benefits of insurance are also extended to banks in Hawaii, Alaska, Puerto Rico, and the Virgin Islands. The creation of an insurance reserve is provided for through annual assessment at the rate of one-twelfth of 1 percent upon the average deposits, less authorized deductions, of each insured bank.

A second function of the Corporation is to act as receiver for insured banks which fail. The Corporation is appointed receiver for all national banks which fail and may be appointed receiver for closed insured State banks if such appointment is tendered by the State banking authority and is permitted by State law. Upon the closing of an insured bank, the Corporation immediately assumes the insured deposit liability of the closed bank and makes available the funds needed to discharge such liability. For this purpose the Corporation may, if it finds that it is advisable, organize a new national bank. The claim of each insured depositor is paid upon assignment to the Corporation by him of all rights to dividends and recoveries on account, and to the extent of his insured deposit.

Further, the Corporation may, until July 1, 1938, make loans secured by assets of an open or closed insured bank, or may purchase such assets, or may guarantee any other insured bank against loss by reason of its assuming the liabilities of another open or closed insured bank, whenever, in the judgment of the board of directors, such action will reduce the risk or avert threatened loss to the Corporation and facilitate a merger or consolidation of an insured bank with another insured bank.

Of the 15,585 operating banks in the United States and possessions on June 30, 1937, deposits in 13,943 banks, including 56 mutual savings banks, were insured by the Federal Deposit Insurance Corporation. As of that date 6,357 banks, members of the Federal Reserve System, had been automatically admitted to membership, and 7,586 nonmember banks, other than mutual savings banks, had made application and had been accepted for membership.

FEDERAL FIRE COUNCIL

The Federal Fire Council was organized in April 1930 by collective action of Government departments and establishments and established by Executive Order No. 7397 of June 20, 1936, as an official advisory agency in matters relating to the protection of Federal employees and property from fire.

The council is authorized to develop standards, procedures, and forms, and, on request, to conduct surveys or such other investigations as may be necessary to determine what measures should be taken to safeguard life and property from the hazards of fire, including review of plans for new construction. The council is also authorized to make such independent studies of Federal buildings and property as it may deem desirable from the standpoint of fire protection, and to maintain a record of fire losses on Government property.

The membership of the council consists of such officers or employees of the various departments and establishments of the Federal Government and of the District of Columbia as are designated by the respective heads thereof. These are organized into standing committees concerned with matters such as fire-hazard surveys, requirements for fire-protection equipment, establishment of fire-loss prevention procedures and organizations within Government establishments, development of inspection forms and manuals, and fire-loss statistics.

Reports of surveys and other committee actions are submitted for adoption at periodic meetings of the council. Reports and recommendations involving matters of general policy are subject to the approval of the governing body. These reports and other informative material are distributed to the membership, to the heads of bureaus and establishments, and to other interested Federal, State, and city officials. A manual covering the general subject of fire-loss prevention has been issued together with a fire report and self-inspection forms, the latter for use within departments and establishments in connection with inspections.

UNITED STATES MARITIME COMMISSION

The Merchant Marine Act, 1936, approved June 29, 1936 (Public, No. 835, 74th Cong.), declares the policy of the United States to be to foster the development and encourage the maintenance of a merchant marine (a) sufficient to carry its domestic water-borne commerce and a substantial portion of the water-borne export and import foreign commerce of the United States and to provide shipping service on all routes essential for maintaining the flow of such domestic and foreign water-borne commerce at all times, (b) capable of serving as a naval and military auxiliary in time of war or national emergency, (c) owned and operated under the United States flag by citizens of the United States insofar as may be practicable, and (d) composed of the best-equipped, safest, and most suitable types of vessels constructed in the United States, and manned with a trained and efficient citizen personnel.

The act created the United States Maritime Commission to consist of five members as the agency which should carry out its provisions.

The terms of office of the members are fixed at 2, 3, 4, 5, and 6 years, respectively, the successors to be appointed for terms of 6 years. Three members were appointed by the President and took oath of office on September 26, 1936. A full Commission was appointed and took office April 16, 1937.

All of the functions, powers, and duties vested by the various acts of Congress in the former Shipping Board and by Executive order of June 10, 1933, in the Department of Commerce were transferred to the Commission, as were also all moneys, notes, bonds, mortgages, securities, contracts, choses in action, vessels, and all other property of whatever kind controlled by the Department of Commerce through the Shipping Board Bureau. It was also provided by the act that the United States Shipping Board Merchant Fleet Corporation should cease to exist when the Commission assumed its complete functions.

The duties of the Commission include the investigation and determination of the ocean services, routes, and lines from points in the United States to foreign markets essential for the development and maintenance of the foreign commerce

of the United States and the determination of what additions and replacements of the American merchant marine are required to create an adequate and wellbalanced merchant fleet to provide shipping service on all routes essential for the flow of the foreign commerce of the United States, the vessels to be so designed as to be capable of serving as naval or military auxiliaries in time of war or national emergency; and investigation of other maritime problems arising under the act.

Ocean-mail contracts made by the Postmaster General were terminated effective June 30, 1937. The holder of any such contract was authorized to file an application with the Commission to adjust and settle all the rights of the parties under the contract, subject to appeal by the Attorney General.

To aid a citizen of the United States in the construction of a new vessel to be used on a service, route, or line in the foreign commerce of the United States determined to be essential, the Commission is empowered to have the vessel constructed in a shipyard in the United States, to pay such construction cost, and to sell the vessel to the applicant for an amount equal to the estimated cost of the construction of the vessel if it were constructed in a foreign shipyard. The plans and specifications are required to be approved by the Secretary of the Navy, the Commission being directed to cooperate with the Navy Department as to national-defense needs and the adaptation of the merchant fleet to nationaldefense requirements. The difference between the cost of constructing the vessel in the United States and the estimated cost of constructing the vessel in a foreign shipyard is termed a construction-differential subsidy. The applicant is required to pay 25 percent of the construction cost of the vessel paid by the Commission (excluding the cost of national-defense features which is to be paid by the Commission), and the balance, payable in 20 years at 31⁄2 percent interest per annum, must be secured by a first preferred mortgage upon the vessel.

Aid may be extended to any citizen of the United States in the construction of a new vessel to be operated in the domestic trade (excepting vessels engaged solely in the transportation of property on inland rivers and canals exclusively). Other conditions of such aid are similar to those involving vessels to be used in the foreign trade, but no construction subsidy will be allowed except for the cost of national-defense features. The applicant is required to pay not less than 25 percent of the cost of the vessel and the balance, payable in 20 years at 31⁄2 percent interest per annum, must be secured by a first preferred mortgage and otherwise as the Commission may direct.

The Commission is empowered to grant an operating-differential subsidy to aid a citizen of the United States in the operation of a vessel to be used in an essential service, route, or line in the foreign commerce of the United States. The operating-differential subsidy, which is intended to place the proposed operations of such vessels on a parity with those of foreign competitors, is the excess of the cost of items of operating expense in which it is found the applicant is at a substantial disadvantage in competition with foreign vessels over the estimated cost of the same items of expense if the vessel were operated under registry of a foreign country whose vessels are substantial competitors of the vessels covered by the contract. Certain reserve funds are required to be set up by the vessel operators, and no operating-differential subsidy may be paid for the operation of vessels engaged in coastwise or intercoastal trade.

If it is found that the national policy declared in the act and the building program contemplated by the act cannot be realized within a reasonable time, after approval by the President, the Commission may have new vessels constructed and old ones reconditioned. The act provided that operation of the Commission's vessels by private operators under operating agreements be discontinued within 1 year after the passage of the act if satisfactory bids for the charter of such vessels could be obtained by the Commission. All vessels transferred to or otherwise acquired by the Commission may be chartered or sold. Charters are restricted to bare-boat charters.

The Commission is directed to investigate employment and wage conditions in ocean shipping and to incorporate in contracts for operating-differential subsidies minimum-manning scales, minimum-wage scales and reasonable working conditions for all officers and crews employed on vessels receiving an operating differential subsidy. All licensed officers of vessels documented under the laws of the United States must be citizens of the United States, and the act contains provisions in respect to the citizenship of members of crews of subsidized vessels. Citizenship requirements of officers and crews are enforced by the Secretary of Commerce.

The Commission is vested with regulatory power over common carriers by water engaged in the interstate, foreign, and intercoastal commerce of the United States, and over persons carrying on the business of forwarding or furnishing wharfage, dock, warehouse, or other terminal facilities in connection with such common carriers, as provided for by the Shipping Act, 1916, as amended.

COMMITTEE FOR RECIPROCITY INFORMATION

The Committee for Reciprocity Information was created by Executive order in June 1934 to carry out the provisions of section 4 of the act entitled "Promotion of Foreign Trade", under which the President is authorized to enter into trade agreements with foreign countries. This section provides that before any foreigntrade agreement is concluded public notice of the negotiations shall be given in order that any interested person may have the opportunity of presenting his views to the President or to such agency as the President may designate.

The President designated the Committee for Reciprocity Information as the body to receive the views of interested parties. This Committee is composed of representatives from those Government departments or agencies concerned with the operation of the Trade Agreements Act. Its chairman is one of the members of the Committee and is named by the Executive Committee on Commercial Policy. Under the rules promulgated by the Committee for Reciprocity Information, those wishing to present information or requests for consideration in connection with announcements as to proposed negotiations may file their material with the Committee, and may request permission to present supplementary information at the hearing which the Committee holds on each trade agreement.

The Committee also receives information on any phase of the trade agreements program, whether relating to the operation of an agreement already made or to one under consideration, and such views may be presented verbally or by letter.

THE RAILROAD RETIREMENT BOARD

The first Railroad Retirement Board was created under the first Railroad Retirement Act passed by Congress in June 1934 (Pub. No. 485, 73d Cong., S. 3231), which act was declared unconstitutional by the United States Supreme Court in May 1935. A second Board was created by the provisions of the second Railroad Retirement Act (Pub. No. 399, 74th Cong., H. R. 8651), passed in August 1935; and this Board was continued by the provisions of the Railroad Retirement Act of 1937 (Pub. No. 162, 75th Cong., H. R. 7519), which act is an amendment to the Railroad Retirement Act of 1935. The Board comprises three members appointed by the President, by and with the advice and consent of the Senate one upon recommendation of representatives of employees, one upon recommendation of representatives of carriers, and one, who is the chairman of the Board, without specific recommendation. The Railroad Retirement Board is charged with the duty of administering both the Railroad Retirement Acts of 1935 and 1937.

The Railroad Retirement Act of 1935 is still in force and effect with respect to claims of individuals (and of their spouses and dependent next of kin) who relinquished their rights to service and became eligible for annuities before the enactment of the act of 1937 (June 24, 1937). The two acts provide for the payment of annuities and pensions to the superannuated and disabled employees of the railroad industry of the United States and for the payment of death benefits on their account. The act covers the employees of (1) express companies, sleepingcar companies, and carriers by railroad, subject to part 1 of the Interstate Commerce Act; (2) companies which are directly or indirectly owned or controlled by or are under common control with one or more of such express companies, sleepingcar companies, or carriers by railroad, and which perform a service (with certain exceptions) in connection with the transportation of passengers or property by railroad; (3) certain associations, bureaus, and agencies engaged in services incidental to or in connection with railroad transportation; (4) railway_labor organizations, national in scope, organized in accordance with the Railway Labor Act, and certain of their subordinate units; and (5) railway labor organizations, not national in scope, with respect to certain of their employees.

Payments under the two acts are made from the "Railroad Retirement Account," which was created under the 1937 act, and to which is appropriated each fiscal year an amount actuarially determined by the Board to be sufficient as a premium to provide for the payment of all annuities, pensions, and death benefits under both acts; part of this premium is used for the payment of current liabilities