Mr. WILBER. I think I should clarify the record by saying that in addition to these 31 people reflected here, there is a certain number of people who are also paid by the Voice of America under their own appropriation, to handle the work for them, so that this is not the total office. It is the total for the regular activities of the Department. Senator MCCARRAN. That has a certain definite function, though, with reference to the Voice of America?

Mr. WILBER. Oh, yes, sir.

Senator MCCARRAN. Together with the other functions that it performs?

Mr. WILBER. Yes, sir.

Senator MCCARRAN. All right, are there any other questions, Senators?

If not, we will pass on. What is the next item?

MISCELLANEOUS SALARY EXPENSES-DOMESTIC

Senator MCCARRAN. You are requesting $129,155 for miscellaneous salary obligations. Will you please justify to thee committee your request for this item? Please explain what comes under this item.

Mr. WILBER. There are five types of personal services costs, Mr. Chairman, that fall under the heading of "Miscellaneous salary expenses, domestic."

Those are part-time employees, those employees who are paid only when they are actually employed, commonly referred to as W. A. É. employees-temporary employees-overtime and holiday pay, and nightwork differential.

Chairman MCKELLAR. Will you tell me what the W. A. E. means? I have not learned this new language.

Mr. WILBER. That is the designation that we use, Mr. Chairman, for identifying those persons who are employed largely on a consulting basis or on a project basis by the Government, and who are paid so much per diem for a short period. The "W. A. E." means "when actually employed."

I might say that the funds for the night-work differential are provided for under the Classification Act of 1949.

We are asking for the same amount of money that we have this

year.

While there are some adjustments between those various categories of requirements, the total estimate is the same.

Senator MCCARRAN. What is the difference between a WAE employee and a temporary employee?

Mr. WILBER. Well, a temporary employee is one who is used on a continuing basis, usually on a seasonal basis, but his employment is purely temporary. He does not have permanent civil service status. Senator MCCARRAN. Is it intermittent?

Mr. WILBER. It is intermittent, largely.

Chairman MCKELLAR. Are these employees civil-service employees? Mr.. WILBER. They are hired under the civil-service rules. Chairman MCKELLAR. I mean, are they civil-service employees? Mr. WILBER. Yes, they are; but they do not have permanent civil service status.

Chairman MCKELLAR. I don't see how they can be civil-service employees unless they have a permanent status.

Mr. WILBER. Well, they do not have the retention rights of permanent employees. They are employed, however, under civil-service regulations.

Senator MCCARRAN. What does the night-work differential mean? That is for overtime, is it not?

Mr. WILBER. No; that is the bonus, you might say, for night duty. Senator MCCARRAN. It is a different rate of pay?

Mr. WILBER. Yes; a different rate of pay.

Senator MCCARRAN. All right.

Chairman McKELLAR. I note that as to some of these items you have increased amounts requested while as to others there are decreases. Will you go over these carefully and give us the figures as to where you think cuts would be best, if that can be estimated?

Mr. WILBER. We would be glad to review it.

Senator MCCARRAN. Your footings are the same for this year as for the current year.

Mr. WILBER. Yes, sir.

(The information requested appears on p. 1506.)

NONSALARY OBLIGATIONS-DOMESTIC

AMOUNT REQUESTED

Senator MCCARRAN. Under the heading of "Nonsalary obligations-Domestic" you are requesting an appropriation of $2,405.374, an increase of $153,983 over the current year figure. What is the money to be used for?

Mr. WILBER. This item, Mr. Chairman, covers all other than personal service expenses. Included under this head are travel, transportation of things, communications, rent and utility services, printing and reproduction, other contractual services, supplies and materials, equipment and refunds, awards, and indemnities.

The detail of that, Mr. Chairman, is set forth on page 223-A of the justifications.

Senator MCCARRAN. Now, do we not have these items elsewhere? I thought they appeared elsewhere as we came along through the various departments. We certainly had transportation of things. Chairman MCKELLAR. We certainly did.

Mr. WILBER. That was under the Foreign Service, Mr. Chairman. This item includes all domestic cost for operating the Department. Senator MCCARRAN. Now, as to communication services, we have just been listening to that at length. Why does that come in here separately?

Mr. WILBER. Mr. Wright was testifying on the personnel required to operate the communication facilities. Under this item, are the utility costs themselves.

Chairman McKELLAR. What is the utility cost?

Mr. WILBER. Mr. Wright, will you answer that?

Mr. WRIGHT. On communication services, Mr. Chairman, we are asking for $327,700. These are the communication services to operate in the Department, such as telephone services, and so forth.

Senator MCCARRAN. Is this the money that is paid out to the telephone companies?

Mr. WRIGHT. This is for telephone, telegraph, teletype, and so forth.

Mr. HUMELSINE. This is the total figure.

Chairman MCKELLAR. What about transportation of things? We get that so often. Why is that in here?

Mr. WRIGHT. That is a small item.

Chairman MCKELLAR. It is a small item, but we are responsible for all of it.

Mr. WRIGHT. Yes, sir.

This amount is necessary to defray the expenses of domestic shipments between Washington, New York, and other locations within. the United States.

The open-market procurement of essential articles on the f. o. b. basis, or free-on-board basis from the factory is included here. It also includes the transportation of materials within the United States in connection with conferences, the transportation by freight and express of bulk publications, displays, and so forth, for public liaison activities.

Chairman MCKELLAR. Will you explain how that comes under travel?

Mr. WRIGHT. If we had to transport some equipment or supplies for a conference, assuming that there would be an international conference away from Washington

Senator MCCARRAN. Will you give us an illustration.

Mr. WRIGHT. For example, if there were a meeting of the Council of Foreign Ministers in New York, we might load furniture into a truck and take it up to New York, and when the conference was over, we would bring it back.

If we did not have sufficient supplies there, we might transport supplies, such as coding machines, typewriters, carbon paper, and so forth. We would send a truck with those materials to New York. Chairman MCKELLAR. What are the communication services, where you are asking for $327,700?

Then you have transportation of things, $5,935. It seems that they are the same thing. Why are not they in the same category? Mr. WRIGHT. Possibly if I went through them one at a time, Mr. Chairman, this would be made clearer.

Senator MCCARRAN. Well, that is what I want you to do here. Would you tell us about the communication services?

Mr. WRIGHT. This estimate is based upon the experience of the Department, indicating a cost of approximately $63 per capita, which reflects the telephone rate increases effective in 1950. There was a charge there of about $286,000 to run our telephone switchboard; the installation, the cost of the telephone instruments and the toll charges.

On the telegraph and teletype, we have domestic telegrams for such items as personal activities of all kinds, transportation negotiations, supply negotiations, telegrams to foreign countries in connection with international conferences, and normal program activities and the costs of teletype between Washington and New York.

LIMITATION ON USE OF LONG-DISTANT TELEPHONE SERVICE

Senator MCCARRAN. Let me ask you a question there. Is there any limitation placed on any of your departments, as to how they may use the long-distance telephone?

Mr. WRIGHT. Yes, sir.

Senator MCCARRAN. How was that limitation effective and how is it put on? We have a limitation put on us here that is quite rigid. Mr. WRIGHT. We police that very carefully, sir. I have people keep a record of long-distance calls so that each call has a ticket that is prepared which comes back to the administrative officer, and a justification is required. If it appears to be, from the scrutiny by the people who watch these things, out of line, we ask for a specific justification of that individual telephone call.

Chairman MCKELLAR. Which item is that?

Senator MCCARRAN. It is involved in communication services here. Mr. WRIGHT. Further, sir, on long distance telephone calls coming into the United States we go back to the Embassies and require them to show, if there seems to be an excessive use of telephone service back to Washington, why they were using those telephone calls. I get written justifications whenever they are indicated and required.

Senator ELLENDER. Do you ever turn any of them down?

Mr. WRIGHT. You cannot, generally speaking, Senator, do that. This is a post-audit system because the telephone operator who is sitting at the switchboard is not in a position to interrogate the caller as to what the telephone call is for, and so forth, but we use a postaudit basis very carefully in this connection, that is, these telegraph, telephone and teletype calls.

Senator ELLENDER. What if you find that somebody is violating your rules and regulations? What happens then? You must find some who do that.

Mr. WRIGHT. We do, sir, and the chief of the division of communications and records goes to the Assistant Secretary of State who is involved in that particular operation, and speaks to him about it and gets directives issued from him that his people shall refrain from that practice.

Chairman MCKELLAR. Who in the Department has the right to make official calls? That is, what officers? I would like to have a list of them. The Secretary, of course, would be included.

Mr. HUMELSINE. Any officer, I think, generally speaking, Senator, that is, any officer has the right, but the only people that exercise it are those who actually have to make calls in connection with their work.

Chairman McKELLAR. What I want to know is: How many officers do you have who use the telephone on official business?

Mr. HUMELSINE. Do you mean overseas, sir?

Chairman MCKELLAR. Here and overseas.

Mr. HUMELSINE. I will have to supply that for the record. (The information requested is as follows:)

Generally speaking, the determination as to the employees who are permitted to make long distance telephone calls is limited to those employees whose work requires outside contacts. The chief of each division in the Department of State is responsible for the carrying out of this policy and in no instance are official telephone calls permitted by employees whose work does not fall within this category.

Long-distance telephone calls are limited strictly to official business. Before placing any long-distance call the caller must identify himself and state that the call is on official business. After the call is completed a ticket is prepared giving the details of the call. This ticket is then sent to the administrative officer in the division in which the caller is connected in order that a post audit can be

made as to the nature of the call, caller, etc. If an unauthorized call is made the caller is then disciplined by the chief of the organizational unit. In addition to these precautions, the Department has 219 restricted telephone instruments throughout the Department. This type of service is provided in each case where it is considered that the employee's work does not require the use of long distance or outside telephone calls.

Senator MCCARRAN. Well, that is what I was driving at. Can anyone in any department just pick up the telephone and call San Francisco, for example, or Dallas, Tex., or New York?

Mr. HUMELSINE. They could, Senator. I mean that it would be physically possible for a clerk, for example, to pick up the telephone and probably get a call through. The clerk might be able to get one through, but then we would have that information, and if it were a personal call he would have to pay for it. They would be reprimanded for using the telephone when they were not entitled to do so, and if there was a repetition of that, if they did it a couple of times, we would discharge the person concerned.

Senator MCCARRAN. Have you had occasions of that kind?

Mr. HUMELSINE. We have very little misuse of the telephone.
Chairman McKELLAR. Have you ever fired anyone?

Mr. HUMELSINE. We have fired people, but not, to my knowledge, for that specific reason.

Chairman MCKELLAR. Not for that particular violation?

Mr. HUMELSINE. That is right.

Chairman MCKELLAR. Now, you are asking for $153,983 by way of increase, that being made up by two items of increase, the first being $94,069 for travel and the second being $59,914 for printing and reproduction.

I want you to take those specific items, these nine items, and see if you cannot reduce them. I know that you people who work under the President want to obey him. He has made a recommendation, since these figures were prepared, that nonwar expenses should be reduced. Why can you not do that and come back and tell us where is the best place to cut, if there is to be a cut?

Mr. WRIGHT. I will do so, Senator.

RENTS AND UTILITY SERVICES

Senator MCCARRAN. All right, we go next to rents and utility services. If you please, will you tell us what that embraces?

Mr. WRIGHT. This estimate is for the rental of equipment and is based upon the retention of all specialized equipment now installed in the Department.

Senator MCCARRAN. Will you give us an illustration of that?

Mr. WRIGHT. Illustrations are various International Business Machines Corp. pieces of equipment used in the Division of Finance, the Division of Cryptography, and in the Division of Personnel.

Senator MCCARRAN. Those machines are all rented, and you cannot acquire them through ownership?

Mr. WRIGHT. That is correct with respect to the IBM machines.