HOUSING AND HOME FINANCE AGENCY

Office of the Administrator.-The bill includes the amount of $2,500,000, a reduction of $900,000 in the budget estimate, for this agency. The regular annual bill for the fiscal year 1950 includes an appropriation of $1,200,000 for the Office of the Administrator. An additional amount is made necessary by the enactment of the Housing Act of 1949. Specifically, the budget estimate contemplates the utilization of $981,000 for administrative expenses in connection with slum clearance and urban development, $2,342,000 for the extension of research, and $77,000 for the supervision and coordination of Constituent agency activities. Owing to the fact that there has been no experience in connection with many of the programs called for in the Housing Act of 1949, the committee is not attempting to make specific allocation of the reduction effected. However, it is reasonable to assume that the slum clearance and urban redevelopment program will not have made extensive progress until much of the fiscal year has passed, and undoubtedly considerable savings can be made in the amount proposed for this purpose. With respect to the extension of research under the Housing Act of 1949, which has been conducted on a less extensive scale in previous years, the committee expects substantial savings. It does not consider the extension of authority in this field as a mandate for what seems to be an unreasonable expenditure of public funds. Much of the research work contemplated by the agency has for many years been conducted by private suppliers interested in selling their products. What is needed, more than initial research, is a coordination and classification of data that is at present available, and practical steps to encourage actual use of the information already developed. Accordingly, the committee believes that not less than $800,000 of the reduction in the budget estimate should be applied to this program. The remaining amount of $1,542,000 recommended for this purpose, when added to the $575,000 contained in the regular annual appropriation bill, will provide a total of approximately $2,100,000 for this activity. This sum should be ample to coordinate and utilize the known facts concerning the most efficient and economical methods of home construction as well as provide adequate funds for the conduct of additional research by private industry.

Federal Housing Administration.-The bill includes an increase in the authorization for administrative expenses for this agency of $2,000,000. This amount supplements the $22,860,750 authorized in the regular annual appropriation bill. Of the $2,000,000 recommended in the accompanying bill, $910,000, or the full amount contemplated in the budget estimate, is for additional administrative expenses in connection with title I and title VI activities. The remainder, or $1,090,000, is recommended for title VIII, or what is known as military housing activities. The amount of $1,790,000 was requested for this latter purpose. However, the committee feels that program will not generate administrative problems in excess of those which adequately can be discharged with the amount recommended. Much factual data must be gathered and many preliminaries must be disposed of in connection with the military program prior to the actual approval and servicing of loans under this title. The bill includes $5,000,000, a reduction of $5,000,000 in the budget estimate, for the military housing insurance fund, established by

the

Public Law 211, Eighty-first Congress. So little is known concerning the potential liabilities of the Government in this respect that the committee believes and the officials of the Federal Housing Administration have indicated that this amount may prove adequate, certainly during the first year.

Public Housing Administration.-The budget estimate of $4,750,000 requested as the result of the enactment of the Housing Act of 1949 is approved in the amount of $4,125,000, a reduction of $625,000. The amount recommended herein augments the appropriation of $8,054,600 contained in the regular annual appropriation bill. While it is recognized that the appropriation requested is to implement one of the most important segments of the Housing Act of 1949, testimony before the committee discloses that there are many and varied problems which must be resolved before the program becomes too significant from an administrative standpoint. It was testified, for example, that the Administration has set a target of 50,000 units to be placed under construction during the remainder of the current year. This, according to officials of the Administration, is an ambitious schedule. In addition, there is the problem of building a Nation-wide organization to carry out this program. With specific reference to slum clearance, there is no experience in the Federal Government for handling the program on the basis established by recent legislation. Plans and procedures must be established before any substantive work is embarked upon. While 27 States already have laws dealing with slum clearance, some of these laws must be amended in such manner as to conform to the Federal Housing Act of 1949 prior to the actual participation by the Federal Government. Testimony indicated that much organizational work and planning must first be completed. Although the problem with respect to public housing is less complicated owing to the past experience in this field, the committee nonetheless is not convinced that an increase of over 50 percent in the current total of personnel in this agency can be justified for the new programs in view of the difficulties and uncertainties that have been evidenced in its initiation.

NATIONAL CAPITAL SESQUICENTENNIAL COMMISSION

The bill includes the amount of $3,000,000 for this Commission. Revised plans more recently submitted to the committee reflect a sounder approach to the program than those submitted earlier in the present session of Congress. While this project should not, of course, be considered solely on the possibility of financial returns to the Government, it is, nonetheless, incumbent upon this committee, as always, to question a seemingly unwise expenditure of public funds. While the committee is desirous of at least a solvent operation, it now appears that there even may be some slight profit to the Treasury of the United States. Accordingly, the committee is recommending the full amount of the estimate in order that this national event may be carried out in accordance with the approved legislative authority.

DISTRICT OF COLUMBIA

The committee received budget estimates in the amount of $4,916,445.46 for the District of Columbia and recommends a total appropriation of $4,748,245.51. The itemized break-down of this

amount, as presented in the tabulation at the end of this report, includes $225,000 for alterations and additions at the Bell Vocational High School.

The committee also recommends the full budget request of $4,205,850 for retroactive pay increases in fiscal year 1949 pursuant to recently enacted legislation. The committee believes that the $3,474 requested by the Public Library for reallocation of positions can be absorbed by the Library and has accordingly denied this item. One hundred thousand dollars was requested for the continuation of the day-care centers. The committee is of the opinion that the appropriation for this work should be on an equal basis with the fees paid by those using the centers. These fees are estimated at approximately $48,000 for fiscal year 1950. Therefore an appropriation of $50,000 for the day-care centers is recommended.

The committee has not allowed the $103,065.95 requested for medical charities. While the hospitals involved entered into contracts with the District government for the care and treatment of indigent patients at given rates the total amounts available for such services were fixed by the annual appropriation and there was no authority to incur obligations in excess thereof. The above-mentioned amount represents bills presented to the District by the hospitals in excess of such sums.

When the committee considered the regular annual appropriation for 1950 the additional duties placed on the Office of the Corporation Counsel by the sales tax were taken into consideration in determining the appropriation for that Office. Accordingly, it does not feel that the additional amount of $11,660 requested for the Corporation Counsel because of these duties is warranted and it is therefore denied.

DEPARTMENT OF AGRICULTURE

Farm housing.-The budget estimate for this activity contains the amount of $25,000,000 for loans to be borrowed from the Secretary of the Treasury in accordance with section 511 of the Housing Act of 1949, an appropriation of $2,000,000 for grants and loans, and an appropriation of $4,000,000 for salaries and expenses necessary to administer those provisions of the Housing Act dealing with farm housing. With respect to the first two items, the committee is recommending the full amount of the budget estimates. The salary and expense item is approved in the amount of $3,000,000, a reduction of $1,000,000 below the budget estimate.

The additional amount requested for administrative expenses is, in a sense, for an extension of the activities currently engaged in by the Farmers' Home Administration. However, many of the aspects are completely new, necessitating the development of adjunct organizations and the training of new personnel. The budget estimate, for example, contemplates the rendering of assistance in farm and home operations to approximately 2,100 families in the fiscal year 1950. The committee, on the basis of testimony received, is not convinced that this can be accomplished during the remainder of the fiscal year. Furthermore, many of the work statistics supplied the committee in support of the estimate for administrative expenses seemed unrealistic and based on supposition rather than fact. One half, or $500,000, of the reduction of $1,000,000 is to be applied to the making and

servicing of loans and grants for which an estimate of $3,000.000 was submitted. The committee is not impressed with some of the research activities contemplated in the budget estimates for farm housing. Much of the testimony presented, as well as the information contained in the justifications, presumed an almost complete lack of familiarity on the part of farmers, architects, builders, material suppliers, etc., with farm housing. The history of rural development generally would tend to refute this presumption. Accordingly, the committee is recommending the amount of $500,000 for legal services, economic research, technical advice and assistance, and research and technical studies in the planning field.

Forest Service.-The bill includes the amount of $325,000, a reduction of $125,000 in the budget estimate, for emergency reconstruction and repair. The amount recommended is to be used for repair and reconstruction made necessary by the floods of June 1949 in the States of Georgia, North Carolina, Virginia, and West Virginia. This amount supplements the appropriation of $1,747,500 provided in the Second Deficiency Appropriation Act, 1949. While our forest roads and trails must, of course, be maintained in a reasonable condition, it appears to the committee that the estimates presented to it are to a great extent guesses and not based on firm engineering data. Greater effort toward economy should be made in this operation by allocating the funds to the projects most urgently needed and with a greater emphasis on practicability rather than convenience.

DEPARTMENT OF COMMERCE

Bureau of the Census.-The bill includes the amount of $7,500,000, a reduction of $2,000,000 below the sum requested for fiscal 1950, for the Bureau of the Census for the taking of the census of housing authorized by the Housing Act of 1949. It is estimated by Departmental officials that the ultimate cost of the census will be $18,500,000. It was testified that the census will be conducted in conjunction with the Seventeenth Decennial Census for which an appropriation of $41,885,000 is included in the regular act for the fiscal year 1950. The committee is surprised, in view of the nature of the debate on the House floor relating to the authorizing legislation for this activity, that such a large sum should be needed for the preparation and execution of one additional schedule by the regular decennial census enumerators. It was testified that approximately 46,000,000 dwelling units would be visited. The average piece-price rate is established at something under 10.6 cents, accounting for a total expenditure of approximately $4,870,000. This total cost appears excessive. The balance of the amount recommended is, in the main, for supervisory and clerical personnel, for the printing of forms, for certain current tabulations of information gathered, and for initial costs of the mortgage survey. The committee is of the opinion that the remaining amount of $2,630,000, together with substantial savings which reasonably may be expected in the field expenses, is entirely adequate for these last-named requirements. It is suggested to the Bureau of the Census that the committee is not recommending this reduction with the idea of eventually appropriating the remainder of the total estimated cost of $18,500,000. Gathering of the basic information should be completed within the amount herein recommended. Ap

propriation requests to cover costs of final tabulating requirements will be closely scrutinized.

Civil Aeronautics Administration, Claims, Federal Airport Act.The bill includes the amount of $300,421.92, the full amount of the budget estimate, for this item. This sum is in compliance with section 17 of the Federal Airport Act, as amended by Public Law 840, Eightieth Congress, which provides that the Administrator of Civil Aeronautics is authorized on behalf of the United States to ascertain, and certify for payment, costs of repair of damage to airports caused by Federal agencies.

Bureau of Foreign and Domestic Commerce, Departmental salaries and expenses.-The amount of $45,000, a reduction of $5,000 in the budget estimates, is recommended for this item. This additional amount for Departmental salaries and expenses is to provide funds necessary for the Department to carry out the responsibility of conducting a tin and tin-products allocation program extended under provisions of Public Law 153, Eighty-first Congress.

DEPARTMENT OF THE INTERIOR

National Capital Parks and Territory of Alaska.-The committee had before it an estimate for retroactive pay for the National Capital Park Police in the amount of $12,400 for fiscal year 1949 and an estimate of $1,600 for 1949 to cover Territorial cost of living allowance for the Governor and Secretary of Alaska. Approval of these estimates is recommended.

Indian reservation roads.-A supplemental estimate of $98,500 for fiscal 1950 to provide funds for repair of flood damage to two roads on the Coeur d'Alene, Idaho, Indian Reservation is approved.

Virgin Islands Corporation.-After the House had passed the Interior appropriation bill for fiscal 1950, which approved an interim budget program for the Virgin Islands Company, Public Law 149 establishing a new Virgin Islands Corporation was enacted. A revised budget program was submitted for this Corporation for fiscal 1950, and has been approved as submitted. The program includes an appropriation of $1,250,000 to provide initial installment of a $9,000,000 revolving fund authorized by section 6 (a) of Public Law 149. Also included is $1,026,000 to cover the anticipated $276,000 deficit of the new Corporation for fiscal 1950 and to retire $750,000 in obligations owed to the Treasury by the predecessor Virgin Islands Company. The committee recommends approval of these requests so that the recently enacted law can be implemented and that the new Corporation can initiate its programs of stimulating and improving economic activity in the Virgin Islands. Administrative expenses of not to exceed $121,480 are also approved as requested. The accompanying bill carries a provision revising the language of the authorization for administrative expenses of this new Corporation. Transfer of government of Guam and other Territories.-The committee also had before it estimates totaling $715,000 requested to finance a proposed transfer of governmental responsibility for the island of Guam from the Navy Department to the Department of the Interior and for preparing plans for similar transfer at later dates of American Samoa and the Pacific trust Territories. The government of the civilian population of Guam has been entrusted to the Navy Department for more than 50 years. There is evidence that the Navy