Summary data on available labor by county, July 15, 1957

15.19

Summary data on available labor by county, July 15, 1957-Continued

Chairman, Committee on Banking and Currency,
United States Senate, Washington, D. C.

DEAR MR. CHAIRMAN: This letter is in further reply to your request, addressed
to the Secretary, for comments of the Department of Commerce on the report
from the General Accounting Office on S. 1433, a bill to assist areas to develop
and maintain stable and diversified economies by a program of financial and
technical assistance and otherwise, and for other purposes.

In connection with comments therein on the portion of the bill providing for
benefits of the House act to areas of substantial and persistent unemployment,
it is the intention of the bill to limit the benefits to such areas but, once areas
have been so designated, to entitle them to such additional benefits. The geo-
graphical scope of S. 1433 has been considered thoroughly, and it is our present
opinion that coverage of the bill is appropriate.

It is suggested that provision of the bill relating to payments of civil-service
retirement and disability funds and requiring business-type budgets and account-
ing are unnecessary. The proposed loan program is the type of Federal pro-
gram which under current organization concepts should be administered in a
manner which makes clear its costs, direct and indirect. The language of these
provisions is intended to carry out this intention with certainty and is com-
parable to provisions in amendments to the Government Corporations Control
Act proposed by the administration.

Objections are also made to provision for the Secretary to determine the char-
acter and necessity for obligations and expenditures. Not only should the Sec-
retary answer to the Congress with respect to loans made, but he (or his
designate) should also be the sole person to whom any area suffering from
chronic unemployment need look for an answer as to whether or not funds are
forthcoming for its assistance. Such a provision is not unusual in a business-
type program. The Comptroller General would, as in the case of other such
programs, present to the Congress in connection with the report on the annual
audit any instance of actions under the program which appears to be incon-
sistent therewith or otherwise inappropriate.

For these reasons, we urge that these recommendations of the Comptroller
General with respect to S. 1433 be not incorporated therein.

Sincerely yours,

91201-57-pt. 1-59

FREDERICK C. NASH, General Counsel.

Hon. J. W. FULBRIGHT,

DEPARTMENT OF JUSTICE,
Washington, D. C., August 15, 1957.

Chairman, Committee on Banking and Currency,

United States Senate, Washington, D. C.

DEAR SENATOR: This is in response to your request for the views of the Depart-
ment of Justice concerning the bills (S. 104 and S. 1433) to assist areas to develop
and maintain stable and diversified economies by a program of financial and
technical assistance and otherwise, and for other purposes.

The purpose of the bills, which are substantially similar, is to enable the Fed-
eral Government to help, through cooperation with the States, the economically
depressed urban and rural areas of the United States to achieve lasting improve
ment in their domestic prosperity by the establishment of stable and diversified
local economies. To carry out this purpose, the Secretary of Commerce would
be authorized by section 101 of the bills to assist areas in the United States,
designated by the Secretary of Labor as areas of substantial and persistent unem-
ployment, through grants for technical assistance, loans, or participation in loans,
assistance to rural areas to develop manufacturing and other activities to supple-
ment agricultural activities, technical assistance and field consultation in estab-
lishment of new industries based on local resources, in expansion of existing in-
dustries, and in economic diversification, and coordinating Federal programs
affecting local economic conditions. The Federal Government would supply no
more than 25 percent (35 percent in S. 1433) of the overall cost of the program
and would require not less than 15 percent of the overall cost be supplied by
local sources.

Whether legislation of this general character should be enacted involves a
question of policy concerning which this Department prefers to make no recom
mendation. It is believed however that consideration should be given to amend-
ing the bills in two respects.

Section 111 (c) of S. 104 (sec. 111 (e) of S. 1433) would authorize the Secre-
tary of Commerce to sell any real property acquired in connection with the pay-
ment of loans granted under the measure. It is suggested that the bills be
amended to provide that sales of Government property by the Secretary in those
instances in which such property had an acquisition cost to the Government of
over $1 million, should be referred to the Attorney General for advice as to
whether such sales to private interests would tend to create or maintain a situa
tion inconsistent with the antitrust laws. This is the same procedure outlined
in section 207 of the Federal Property and Administrative Services Act of 1949,
as amended, where the acquisition cost to the Government of surplus property
sold under such section is over $1 million.

Section 114 of S. 104, providing penalties, begins with the words "With respect
to lending activities authorized by this Act." The corresponding section of S.
1433 begins "With respect to financial assistance authorized by this Act." If the
purpose is to reach any conduct in the administration of the measure intended to
be proscribed by the penalty provisions, it is suggested that the above quoted
introductory words of section 114 of the bills be deleted.

The Bureau of the Budget has advised that there is no objection to the sub-
mission of this report.

Sincerely,

WILLIAM P. ROGERS,
Deputy Attorney General.

INDEX

BILLS AND RESOLUTIONS CONCERNING LEGISLATION

S. 104.

Other references....

Report of:

Page

3

2,

67, 112, 122, 126, 144, 247, 272, 379, 402, 495, 544, 647, 745, 764

S. 964

Agriculture Department--
Air Force Department...
Bureau of Indian Affairs__

Area Redevelopment Administration_
Comparison with S. 1433.
Digest of provisions_.
Other references.

Report of:

24

26

745

898

27, 45

29

25

896

919

25

26

29

9

9

49

892

1,

2, 53, 61, 64, 72, 95-96, 105, 118, 120, 122-124, 134, 145-146, 157,
168, 179, 192, 200, 246–247, 249, 251, 254, 264, 266, 269, 270, 276,
306, 307, 315, 379, 402, 411, 434, 444, 457, 461, 465, 466, 483, 489,
502, 519, 521, 544, 549, 556, 558, 569, 594, 632, 640, 643, 647, 655,
663, 671, 673–680, 689, 721, 739, 741, 744, 745, 762, 767, 781, 788,
792, 805, 807, 815, 817, 825, 830-832, 835, 842, 860, 862, 867, 881

Agriculture Department__

Army Department

Civil Service Commission____

General Accounting Office_-_-

General Services Administration___

Health, Education, and Welfare Department_

Housing and Home Finance Agency..

Labor Department_-.

Office of Defense Mobilization_

Small Business Administration..
Treasury Department.

S. 1433___.

Comparison with S. 964-

Other references..

Report of:

Agriculture Department---

Budget Bureau__.

31

29

899

34

36

33, 42

37

32

26

35

31

18

49

2, 56, 67, 70, 126, 144, 149,

151, 157, 247, 262, 265, 267, 328, 363, 379, 402, 407, 495, 544, 580,
632, 640, 647, 663, 680, 696-697, 741, 745, 764, 867.

25, 31, 41

Air Force Department__

42

42

255, 266, 276, 279, 286, 334, 411, 420, 569, 597, 632, 676, 781, 842, 860