exchange of information. When they receive anything that needs prompt attention, it is not forwarded by letter. It is handled orally. In addition, teletype facilities operate directly between the headquarters of the CIA and the FBI. I would say there is practically no delay in urgent cases.

Senator MCCARRAN. Do you wish to pursue that course any further, Senator?

Senator SALTONSTALL. No; I do not think so, except to ask this: How far, if any, is the duplication of effort of manpower brought about because of that? You told us last year you had a certain number of FBI agents in England and elsewhere.

Mr. HOOVER. That is correct.

Senator SALTONSTALL. Are they known to the CIA? I assume not.

NUMBER AND FUNCTIONS OF AGENTS ABROAD

Mr. HOOVER. Yes; they are. Their function is solely as liaison in London, Paris, Madrid, Ottawa, Havana, Mexico City, and Brazil. They merely serve in a liaison capacity. They do no investigative work. There is no duplication in the work at all.

Senator SALTONSTALL. Approximately how many men have you in other countries?

Mr. HOOVER. I have 1 at London, 1 at Ottawa, 1 at Paris, 1 at Madrid, 2 in Cuba, 3 in Mexico City, and 1 in Brazil-which makes 10. Senator SALTONSTALL. That is comparatively few.

Mr. HOOVER. It is just 10.

Senator SALTONSTALL. So we can say on the floor of the Senate there is no duplication of effort; that there is intense cooperation? Mr. HOOVER. Certainly. There is satisfactory cooperation between the two agencies.

FRAUDS AGAINST THE GOVERNMENT

An additional volume of work that has created tremendous responsibility has arisen from investigations pertaining to frauds by or against veterans. Offenses under this category are those in which veterans, their beneficiaries, or other individuals make fraudulent claims in connection with benefits provided by the Government: pensions, unemployment benefits, hospital and educational services. The increased scope of investigative activity is reflected in the Bureau's record of investigative accomplishments. There were 679 convictions during 1950, with sentences totaling 1,115 years, an all-time high. That group would include the investigations and such prosecutions as have been taken against these fake schools that have been charging the Veterans' Administration great sums of money for attendance of veterans when they did not actually attend the school and meet their standards and qualifications.

APPREHSION OF FUGITIVES

Another important phase of our criminal work is the apprehension. of fugitives, criminal fugitives. During the fiscal year 1950, 6,097 such fugitives were apprehended by agents of the FBI. This number: included 2,745 deserters and selective-service fugitives. The remaining

3,352 general criminal fugitives represented an all-time high in this category: 35 percent greater than in 1949.

CIVIL RIGHTS AND DOMESTIC VIOLENCE

The workload in civil-rights and domestic-violence cases has shown substantial and persistent increases over the past 3-year period. During the past year we have been commended frequently by Federal grand juries and by the courts for the thorough and imparital handling of such cases by our investigators.

As I have mentioned before to the committee, the civil-rights field is a fertile breeding spot for Communist activity. They infiltrate · areas where civil-rights problems exist for the purpose of aggravating existing conditions. Whenever there is a civil-rights case in the country, there generally appears at the scene of the violation some delegate or representative from one of these Communist-front organizations that tend to inflame the community with propaganda of all types and make it far more difficult to investigate the problem in an objective way and get the result desired.

COURT OF CLAIMS INVESTIGATIONS

There are many types of investigative activity of a civil nature which have continued to increase during the postwar period. The most notable are those associated with Court of Claims matters.

The passage of the Federal Tort Claims Act gave us a very large increase in investigative responsibility. On March 19, 1947, the Bureau was vested with investigative jurisdiction under the Federal Tort Claims Act. Since that date the number of cases in this category has attained remarkable proportions.

I will cite just one case for the information of the committee. The Texas City disaster. That case involved the investigation of 1,938 cases with a minimum of 5,300 claims aggregating in excess of $213 million.

In another case, the Vanport City, Oreg., disaster, as an outgrowth of which this city was completely destroyed with a loss of 22 lives and 5,300 homes, there has been filed to date a total of 962 civil suits, with claims aggregating in excess of $4 million and involving 1,700 individual plaintiffs.

Senator ELLENDER. There was a decision rendered against the Government on that case.

Mr. HOOVER. Yes; in the Texas City case, which is on appeal.
All of the claims have to be investigated by the Bureau.

Since the inception of its jurisdiction under the Federal Tort Claims. Act, the Bureau has investigated 509 cases resulting in savings to the Government amounting to $17,686,735. Savings were effected in 98 percent of all cases investigated by the FBI. That is, through the investigative work of the Bureau claims that were originally filed were either reduced or disallowed.

Similarly, settlements in favor of the Government during the fiscal year 1950 amounted to $55,162,900 by reason of FBI investigative activity under the Renegotiation Act. This figure exceeds the entire cost of FBI operations during the year.

I would now like to turn to some of the work of the Bureau in the internal security operations field.

Senator FERGUSON. About the renegotiation, that is investigation for the Renegotiation Board?

Mr. HOOVER. That is correct.

Senator FERGUSON. Where you suspect fraud or something of that nature?

Mr. HOOVER. That is correct; when they are referred to us for attention.

INTERNAL SECURITY OPERATIONS

Turning to the responsibilities of the Bureau in the internal-security field, that, of course, is the most important phase of our work at the present time. The international situation has intensified the problems we have had to handle in that field.

Predominantly outstanding is the immediate and pressing need of keeping abreast of the activities of the Communist Party of America, the subversive activities of Communist-directed nationality groups sympathetic to the cause of Soviet Russia and its satellite countries, and the expected increase in the clandestine espionage networks now functioning within the confines of our country.

Senator KILGORE. On that same line, you mention the fact that whenever there was a civil liberty situation that arose, they usually found representatives of Communist groups going in there trying to incite trouble.

Did you not also find that wherever possible they use that to collect money ostensibly as contributions to the defendant but which actually goes into the Communist Party war fund?

Mr. HOOVER. That is absolutely true. The Communists are the most astute and ingenious individuals.

Senator KILGORE. Do you know the figures of the Sacco-Vanzetti case?

Mr. HOOVER. No. I understand it ran into hundreds of thousands of dollars.

Senator FERGUSON. How about the Communist trial in New York?

Mr. HOOVER. Most of the money collected there was filtered through various other front organizations. They function under Communist Party domination. As a result it is almost impossible to get an accurate statement of the total amount of money spent. Obviously it has to run into hundreds of thousands of dollars. Their propaganda their agitation and counsel all ran into a great deal of

money.

As Senator Kilgore indicated whenever any of these problems. arise that constitute a violation of law as in civil-rights cases and which require very thorough and objective investigation they are usually complicated and made more difficult by the sudden arrival of some agitator.

The Federal Government through the FBI has been able to make excellent progress in the handling of civil-rights cases. Such investigations are very difficult.

At the same time we have had excellent cooperation from most of the authorities. Most of these cases arise in the South. I will say

80513-51-pt. 1-6

the authorities in many of those communities have cooperated wholeheartedly. There has to be gradual reeducation in order to meet the problem. You just cannot go in and arbitrarily demand this or that. There has been throughout the South in the period of the last 10 or 15 years a gradual awakening on the part of many of the great newspapers that have carried articles and editorials reflecting the need for leaving these problems to the constituted authorities of the country, the courts and the investigative agencies. These are the proper methods for handling such cases.

When agitators move in, knowing any particular case to be a very inflammatory issue at a local level, they will agitate and then, of course, they go out and collect money in the name of trying to help this particular group, maybe a group of Negroes that has been arrested for some offense. They agitate and send out inflammatory circulars and cause a great deal of difficulty and never serve the purpose for which the money is collected.

Senator KILGORE. Has the Bureau checked up any further-I know you did at one time-on these beneficial societies, so-called, for insurance for the foreign groups in which they group them according to nationalities, and ostensibly write up insurance policies for them, particularly in hazardous occupations like coal mining and steel mills, the funds of which are all filtered right through the New York office which is run in conjunction with their Communist headquarters? Mr. HOOVER. There have been several investigations.

Senator KILGORE. The head of that was in Atlanta Penitentiary about 12 years ago.

Mr. HOOVER. There are two investigations of that character going on at the present time in regard to what you might call fake insurance rackets.

Senator ELLENDER. You mentioned agitation in the South a moment ago. This agitation, is it not a fact that a lot of this agitation for anti-poll-tax legislation and antilynching legislation originates from the group of people you are now referring to?

Mr. HOOVER. I do not know whether it originates there, but they certainly cash in on it.

Senator ELLENDER. That is what I am talking about.

Chairman MCKELLAR. They get busy as soon as it is started.
Mr. HOOVER. Very definitely.

I have here a statement concerning the Communist Party of America. The activities and operations of the Communist Party, I believe, are the greatest threat to this nation from within, and I have here for the information of the committee, a chart showing the origin and the continuity of the Communist Party and its various changes and names through the years.

From our investigations over the years inquiring into Communist activities, they certainly can be very accurately termed a fifth column. During recent months, particularly since the North Korean Communist aggression and the Soviet Russian encroachments, it has been shown how the Party will always conform to the line enunciated by Moscow.

Senator KILGORE. Is there any reason why a copy of that chart could not be put in the record? Is that a secret document?

Mr. HOOVER. I will be happy to put it in the record.

(The chart referred to follows:)