In An additional amount of $25,500 is requested for the fiscal year 1955. creases in the salaries of a number of the referees were authorized by the Judicial Conference of the United States at the regular annual meeting of that body in September 1954. The salary increases were authorized effective January 1, 1955. The Judicial Conference also created two additional full-time positions at annual salaries of $8,000. The changes so authorized increased the annual salary obligation in an amount of $47,100. It is expected that $500 of this cost can be absorbed and that one-half of the remainder will be needed in the fiscal year 1955. To this amount should be added the cost of group life insurance under Public Law 598 of the 83d Congress, approved August 17, 1954, estimated at $2,200, making the total estimate $25,500. The supplemental funds requested in this estimate should be made available out of the referees' salary fund, which is composed entirely of payments by parties to bankruptcy litigation for the services of the referees in bankruptcy. The added cost will be well within the receipts into the referees' salary fund in the current fiscal year. It is requested that a supplemental amount of $34,575 be authorized for the expenses of referees for the fiscal year 1975. This additional sum is necessary because of the increase in the number of bankruptcy cases in the courts which it is believed will exceed original estimates by 10,000 cases in the fiscal year 1955. At the time the 1955 budget estimates were prepared it was estimated that 55,000 cases would be referred to the referees in the year ending June 30, 1955. It now seems clear that the number will equal or exceed 65,000 cases. PERSONAL SERVICES Because of this increase, the Judicial Conference of the United States authorized the appointment of two additional full-time referees, effective January 1, 1955. Each of these officers will need a secretary and it is requested that the personal services allotment be increased by an amount of $3,175 to provide for the employment of two grade GS-4 secretaries during the last half of the year. In order to provide for increased service in the bankruptcy courts and to enable the referees to handle the increased volume of bankruptcy litigation, it is requested that the following allotments in the referees' expense appropriation be increased in the amounts indicated: Travel-- Communications services (penalty mail). Supplies and materials_-_ Total----- $7,000 15, 000 2,500 3, 500 28, 000 During the first 5 months of the fiscal year 1955, 23,987 bankruptcy cases were riled as compared with 19,443 cases in the comparable months of 1954, an increase of 23.4 percent. Under the Bankruptcy Act (sec. 55a), the court must cause the first meeting of creditors of a bankrupt to be held not less than 10 nor more than 30 days after the adjudication of bankruptcy. At least 10 days' notice by mail must be given to creditors of the bankrupt of the first meeting and all subsequent meetings of creditors, of all sales and other actions enumerated in the section involving the rights of the creditors. The increasing volume of cases has caused a corresponding increase in the travel expenses of the referees, who must travel to the various places of holding court in their territories, and in the expense of penalty mail, printed forms and office supplies, used in the referees' offices. The increase in this expenses is in direct relation to the increase in volume of new cases. There is also included in the estimate an amount of $3,400 to provide for the cost of group life insurance for employees of referees' offices, which was authorized in Public Law 598 (83d Cong., approved August 17, 1954). No appropriation from the general funds of the Treasury is required in this estimate. It is requested that the supplemental funds needed be made available out of the referees' expense fund, which is composed entirely of filing fees and special charges paid by the parties to bankruptcy proceedings. The added cost will be well within the receipts into the referees' expense fund in the cur rent fiscal year. Amounts available for obligation Request.. JUSTIFICATIONS OF ESTIMATES IN SENATE DOCUMENT 19 COURT OF CUSTOMS AND PATENT APPEALS Salaries and expenses, Court of Customs and Patent Appeals Appropriation to date_ Obligations to Feb. 28, 1955 Expenditures to Feb. 28, 1955. Budget estimate next fiscal year__ PURPOSE AND NEED FOR SUPPLEMENTAL FUNDS $13, 300 210, 160 137, 747 123, 073 285, 460 Under the act of March 2, 1955, Public Law 9, 84th Congress, the salaries of the judges of the United States Court of Customs and Patent Appeals were increased effective March 1, 1955, from $17,500 to $25,500 per annum or by $8,000 each annually. The annual additional cost of the higher salaries authorized by the act will be $40,000 for the 5 judges of the court. The added cost in the current fiscal year will amount to $13,333 or one-third of the annual increase since the higher salaries will be in effect only during the last 4 months of the fiscal year 1955. It is necessary to request the appropriation of an additional sum of $13,300 (rounded from $13,333) to pay the increased salaries in the current year as the current appropriation is not sufficient to absorb this new item of cost. Additional funds are required in this appropriation for the fiscal year 1955 to meet the cost of the higher salaries authorized for judges effective as of March 1, 1955, by the act of March 2, 1955, Public Law 9, 84th Congress. The annual increases in the salaries of circuit and district judges and the proportionate cost in the current fiscal year of the higher salaries are shown in the following table: Chairman HAYDEN. I think this committee would want to make sure that you have enough money for clerical assistance, probation officers operations, travel costs, and other things like that for other years. I do hope you will ask for it. Generally, do you feel that the House allowance in this supplemental bill will be sufficient to overcome any deficiencies in your normal operation based on the present number of judges? Mr. CHANDLER. I do. OBLIGATIONS AND EXPENDITURES STATEMENT Chairman HAYDEN. The record will show at this point the obligations and expenditures statement of funds as of February 28, 1955: (The statement referred to follows:) Statement showing obligations and expenditures for certain appropriations of the judiciary as of Feb. 28, 1955 Mr. CHANDLER. Thank you, Mr. Chairman. $123, 073 3,571,346 8, 222, 034 2,078, 367 1,025, 636 712, 808 880, 787 Chairman HAYDEN. The committee will stand in recess until 10. o'clock tomorrow morning. (Thereupon, at 11:20 a. m., Wednesday, March 23, 1955, the committee was recessed, to reconvene at 10 a. m., Thursday, March 24, 1955). |