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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?

Nr. 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.

We have some types of machines that we are able to buy on a price basis. Other rental examples would be the Remington card-punching machines, mail equipment which we have to rent and which puts air-mail stamps on letters, for example, the Recordac machine, which is a machine that takes a picture of a piece of paper when you want to microfilm. Those kinds of equipment are all rented.

PRINTING AND REPRODUCTION

Senator McCARRAN. All right, let us go now to printing and reproduction. That is an item in which you have asked for an increase.

Mr. WRIGHT. Mr. Thompson, will you speak to that, sir?

Senator McCARRAN. Tell us why there is the increase requested, if you please.

Mr. WILBER. Mr. Thompson, the Chief of the Publications Division, is here to discuss this item, Mr. Chairman.

Senator McCARRAN. I take it we may get the same answer in this instance, that there has been an increase in the cost of paper and printing and so forth? Is that about it?

Mr. HUMELSINE. That is about right. Then there are some additional items. That is one point, Senator. Mr. Thompson will explain this item.

Mr. THOMPSON. A considerable portion of that increase is due to our desire to put the foreign relations volumes and the German war documents volumes on a pay-as-you-go basis. In other words, as we were discussing here this morning, we are trying to close the gap, that 17year gap in our publication of the foreign relations volumes.

If these additional funds are supplied us, we can send materials that are now ready for publication to the Government Printing Office for publication.

Senator McCARRAN. What item on page 228 covers that?

Mr. THOMPSON. That comes under the heading of documentation where you have the plus $59,914.

Senator McCARRAN. That is to pick up some of the volumes that you have not yet printed ?

Mr. THOMPSON. That is right; yes, sir.

Mr. WILBER. On page 232, at the top of the page, there is a rather complete outline of the volumes that are presently in the Government Printing Office and those that are ready to go there.

Chairman McKELLAR. Now, as to those books that have been testified to this morning, there is no reason in the world why they cannot be printed next year just as well as this year. Why do you want an increase of $59,914 to publish those books when we are at war and we need every dollar we can get and when we are paying the biggest taxes ever paid by any nation in the world!

Mr. THOMPSON. Mr. Chairman, those volumes are used every day by officers in both the Foreign Service and the domestic services of the Department of State. If we did not have those volumes to refer to, we would have a great mass of papers that would have to be gone through in order to get any kind of a correct picture, shall we say, of what our relations were with the American Republics in the year 1931.

Here it is all brought together in a single convenient volume which we use as a business book just the same as any lawyer, for example, would use the various legal volumes in the conduct of his business.

In addition, of course, to that, these volumes are invaluable to scholars throughout the United States who are interested in foreign relations.

Senator ELLENDER. They are sold to them, are they not?
Mr. THOMPSON. Those are sold at $3 each.

Senator McCARRAN. That does not come anywhere near paying the cost of them, does it?

Mr. THOMPSON. Nothing like the complete printing cost, Senator.
Chairman McKELLAR. What do they cost ?
Mr. THOMPSON. The cost is $3 each.
Chairman MCKELLAR. I mean, for the cost of printing each volume.

Mr. THOMPSON. The cost of printing the volumes—and this is an estimate because it varies with the size of the volume—will run approximately $11,200 per volume. These are extensive volumes. There are a lot of pages in each one.

Chairman McKELLAR. And how many copies are printed of each volume?

Mr. THOMPSON. About 3,700 copies are printed for the entire run. Senator ELLENDER. And they are sold at $3 a volume?

Mr. WILBER. That is the price established by the Government Printing Office when they sell them, and that represents slightly more than their actual printing cost.

CONTRACTUAL SERVICES

Senator McCARRAN. All right. Will you go to the contractual services and tell us what that embraces?

Mr. WRIGHT. On the contractual services, sir, can I give you a breakdown of the items that go into that?

It is on page 235 of the justifications. We have there the Public Buildings Services item which we must reimburse the Public Buildings Services for; the repair of office and reproduction machines, contractual services in connection with the United States National Commission for UNESCO, the repairs of duplicating equipment, stenographic reporting which is used when our court reporters are overloaded and we have some nonsecret item as to which we can go out and contract for reporters, automobile maintenance, translating services that cannot be taken care of in the regular language services division, foreign service examination, the microfilming of the German war documents, a pro rata share of the Air Coordinating Committee, and some other items, for which we are asking a total of $316,578.

Chairman McKELLAR. Does anybody have the right to pay out these sums for these services, any officer in the Department? Who does it?

Mr. WRIGHT. That is all under my jurisdiction, sir.
Chairman McKELLAR. Do you look after all of it?

Mr. WRIGHT. The Division of Central Services, where we have the procurement authority of the State Department, does the actual spending. They are under my supervision.

Senator McCARRAN. And it is paid for by check and voucher?
Mr. WILBER. Yes, sir.

Mr. HUMELSINE. Actually we get a contract on everything except the very small items. We put out requests for bids, and we accept the lowest bid.

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