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Whether or not he actually said that this similarity of opinion had some reference to the relative degree of democratic thinking as between the two peoples is not quite clear, because he did make some interpolations from the written document.

Senator DWORSHAK. If he is your authority on Soviet research and made such a remark, was it not only a natural reaction that people would think he was expressing an honest conviction based on research, and in doing that was reflecting the viewpoint of the USIA!

Mr. SCHMIDT. As I said, although he appeared as a private citizen, we recognize that it is difficult for people to separate in their minds an expression made in public as between his personal views and those of an official agency. We consider it very difficult.

Senator DWORSHAK. What action, if any, has been taken by Mr. Murrow? I am sure that he felt keenly that this was an occurrence that reflected adversely on the Agency.

Mr. SCHMIDT. He thinks that it was an unfortunate occurrence, and we are taking this under advisement at present.

Senator DwORSHAK. How old is Dr. White?

Mr. LOOMIS. In his 50's.

BACKGROUND OF DR. WHITE

Senator DWORSHAK. What is his background? Just read a few of the pertinent parts.

Mr. IRWIN (reading):

Stanford University, Ph. D.; research fellow at the University of Iowa; instructor and assistant professor at Cornell University, acting associate professor at Stanford University.

And that was 1945-46. And then Government service from 1946 to 1961.

Senator DwORSHAK. Where did he start out in Government service? Mr. IRWIN. The Department of State, Senator.

Mr. LOOMIS. The Voice of America at that time.

Mr. IRWIN. He transferred to USIA in 1953.

Mr. SCHMIDT. His connection with the Department of State and the USIA portion of it was continuous from that time.

Senator DwORSHAK. I certainly would have no knowledge of the accuracy of the comments he made, but if he felt that way personally, he certainly should have made it very evident that he was expressing his own personal views, and not acting in an official capacity for USIA.

Mr. SCHMIDT. He did make that point.

Mr. IRWIN. I believe he did, Senator, but I think particularly at this time it was something that you could not have said often enough in a speech like that.

Senator DwORSHAK. Of course, if I had made some comments, I would say I was doing so not as a Senator, but as a private citizen. But I might not succeed in convincing people that that was true. Senator MCCLELLAN. Thank you, gentlemen.

DEPARTMENT OF JUSTICE

STATEMENT OF ELMER R. BUTTS, CHIEF, BUDGET AND ACCOUNTS

OFFICE

HOUSE ALLOWANCE

Senator MCCLELLAN. The next item relates to the Department of Justice.

According to the letter of September 18, 1961, the letter of the administrative Assistant Attorney General to Chairman Hayden, the Department is satisfied with the House allowances on the three items involved. These were $460,000 for salaries and expenses, and general legal activities, which is $155,000 below the estimate; $375,000 to the Antitrust Division, which is $125,000 below the estimate; and $150,000 for expenses of the Administrative Conference of the United States, which is $65,000 below the estimate.

The letter of September 18, to which I have referred, and the supporting justifications, will be printed in the record at this point. (The letter and justifications referred to follow :)

U.S. DEPARTMENT OF JUSTICE, Washington, D.C., September 18, 1961.

Hon. CARL HAYDEN,

Chairman, Appropriations Committee,

U.S. Senate, Washington, D.C'.

DEAR SENATOR HAYDEN: The supplemental appropriation bill, 1962 (H.R. 9169) as passed by the House, allows approximately 75 percent of the budget request. On the premise that the funds would be available for 9 months of the fiscal year 1962, the amounts approved should be adequate for our purposes.

The items allowed for this Department are acceptable and no review by the Senate is requested.

Sincerely,

S. A. ANDRETTA, Administrative Assistant Attorney General.

SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

Amount requested

TAX DIVISION

It is estimated that the Tax Division will require an additional $525,000 to cover the salaries and related costs of 42 attorneys and 20 stenographers and clerical personnel during fiscal 1962. The present estimate is for $3,028,000 which includes a request for an increase of $345,500 over fiscal 1961, to cover the salaries and related costs of 21 additional attorneys and 13 additional clerical employees. Thus, the total amount requested is $3,553,000 and the increase over 1961 is $870,500 and will cover the salaries of 63 additional attorneys and 33 additional stenographers and related costs.

781

The supplement herein provides for the following increases: Cost of new personnel:

Salaries:

42 attorneys GS-11 at $7,560_

20 stenographers GS-4 at $4,040_
Less delays in appointment_

Total for salaries_

Personnel benefits (retirement, health benefits and life insurance

contributions) ‒‒‒‒‒

Increase in travel costs..

Increase in miscellaneous expenses:

Rent and communication services.

Printing

Contractual services.

Supplies___.

Equipment--

$317, 520

80, 800 -38, 320

360, 000

27,000 31, 400

63,000

8,000

2,000

9,000

24, 600

Total supplemental increase for 1962..

Justification

525,000

General.-42 additional attorneys and 20 additional stenographers are required if the Tax Division is to carry out its responsibilities in the enforcement and interpretation of the tax laws. The original request for 21 additional attorneys and 13 stenographers was based principally upon the expanded enforcement program of the Revenue Service authorized by the 86th Congress which called for 2,000 additional enforcement employees in fiscal 1961 and the installation of an extensive automatic data processing system of detecting deficiencies. Now, because of the expanded enforcement program of the Treasury Department as outlined by the President in House Documents No. 97 and No. 120 which calls for additional Revenue Service personnel and under which Treasury will develop additional criminal and civil tax cases, the needs of the Tax Division will enlarge again.

Tax litigation rose an additional 7 percent in 9 months of this year and advice from the Revenue Service indicates a further substantial increase. If this trend continues, the climb in the past 10 years will exceed 150 percent by the end of the current fiscal year. In the second year of its expanded enforcement program the Revenue Service is requesting 4,500 additional employees. (2,000 were allowed by the House Appropriations Committee.) For this year, 2,000 new revenue employees were added.' Thus, in the first 2 years of the new program there will have been a minimum increase of 8 percent in the total personnel of the Revenue Service and a 29 percent increase in enforcement personnel. In addition, the President has submitted a request for supplemental funds to speed the electronic data processing program; and the Commissioner of Internal Revenue has created a new IRS Division of Automatic Data Processing and placed a top official in charge thereof. The Department must be in a position to receive and handle with efficiency and dispatch the new litigation, civil and criminal, generated by this enlarged staff and expanded program in Revenue. The present staff of the Division is overburdened and overworked to the point of reduced efficiency. Each attorney has an average of 43 active cases which is more than twice as many cases as can be handled properly in the best interest of the United States and its citizens. The staff of the Division performs more than 2,000 hours overtime each week, a staggering burden for a staff of about 150 lawyers. This means that on the average each attorney works 56 hours per week rather than the 40 provided by law.

In order to protect the interest of the Government and in fairness to employees it is essential that the Tax Division staff be increased by approximately 20 percent. Such an increase will bring the expansion of the personnel more in line with the enlarged workload over the past 15 years. Since 1946, new tax work has increased 300 percent while the staff has increased 115 percent.

1 Treasury estimates that each additional employee will result in $42,000 of additional revenue. Of course this depends to a great extent upon the adequate and expeditious processing of court cases by the Department. It is not possible to determine the exact monetary return for each additional employee in the Tax Division inasmuch as the Division has no control over the volume or type of cases it will be called upon to handle. However, the expeditious handling of law suits has inestimable value to the courts. the parties and the public and the successful handling of even one typical refund or collection suit could return the total cost of this supplemental request.

The Tax Division has obtained excellent results in tax litigation generally. However, it is apparent that these results can be improved with a return to the Government many times in excess of the costs of such improvement. Because

of the overload situation in this Division, which means that Division attorneys can direct their attention only to matters facing an immediate court deadline, private attorneys know that they will have an opportunity to present cases in the form selected by them without aggressive discovery procedures and counterclaims by the Government. It is imperative that the Division's staff have the time to take such actions as this will immediately produce much better results in pending cases and in the long run will force more taxpayers to settle their differences with the Internal Revenue Service rather than resort to litigation.

The Division must have enough manpower to assign more than one attorney to cases involving important issues or large amounts for money. It is unfortunate and costly to the revenue to assign only one man to a $15- or $20-million case where the taxpayer will be represented by a battery of attorneys. Yet with the present staff, it is just not possible to assign more than one attorney.' The Division has been able in the past to avoid angering courts by the inevitable delay caused by the overload because the courts themselves have been overloaded. Now that it appears likely that a great many new Federal district judgeships will be created, excuses for failure to prepare promptly for trial will obviously not be tolerated. If increase in personnel is not granted, this will mean that the judges will force the Government to go to trial without preparation.

Details of request.—(a) Criminal Section: There are 16 attorneys in this section, and a request is pending for five additions. The pending increase is based up a 20-percent rise in regular criminal cases over the next 2 fiscal years and does not take into account the new enforcement program of the Revenue Service. Six additional attorneys are needed to process the cases developed in the current drive against organized crime and racketeering and to handle special and important trials throughout the country, bringing the total to 27 attorneys.

While it is impossible to foretell the exact number of criminal tax cases to be developed from the drive against organized crime, it seems certain that the coordinated efforts of the several Federal agencies involved will require the review of at least 150 investigative reports. The experienced attorney can on the average complete action on two cases of this type each month with the result that the six additional attorneys requested herein could be expected to conclude the review phase in some 12 cases per month. After prosecution is decided upon, the average criminal tax case requires 2 months for preparation, presentation, and trial by two attorneys.

man.

(b) Trial Section: This Section, which handles the civil refund suits, has 60 attorneys. The pending request is for five additional attorneys and is based upon a 5-percent upward trend in this type of litigation. The attorneys in this Section are responsible for 50 active cases involving more than $8 million per In order to reduce the average workload to 35 cases per man (3 times the average handled by private practitioners), 18 additional attorneys are requested, bringing the total to 83 attorneys. With these additions the refund work will be brought under manageable control resulting in better preparation, savings in court time and expense, better service to taxpayers and their counsel, and additional savings of millions of dollars.

(c) Claims Section: This Section, which handles general civil litigation in the Federal and State courts, has 26 attorneys. The pending increase calls for five more attorneys. Six additional attorneys are needed to handle the work of this Section which is assuming extreme importance in the Government's drive against delinquent taxpayers. This will bring the total to 37 attorneys. Vigorous use of civil process to collect taxes from those reluctant to pay their fair share, coupled with criminal sanctions, strengthens the system of self-assesment and at the same time returns millions of dollars to the Treasury at a time when revenue is essential to survival of the Government.

(d) Appellate Section: There are 38 attorneys in this Section, and a request is pending for 3 additions. An increase of nine attorneys is urgently needed to relieve a heavy workload per attorney which is so out of proportion to what should be expected as to be detrimental not only to the interest of the United

2 A prominent district court judge. with experience in the trial of an unusually large number of civil tax cases, has been reported to have said that the Government loses millions of dollars due to the lack of sufficient staff and sufficient time to properly prepare cases for trial.

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States but to the health and well-being of the individual attorney. This will bring the total to 50 attorneys. Over the past 10 years this division has produced more briefs on the merits than any other legal division and, but for a few cases, more than all of the legal divisions combined. The increase would reduce the average workload of each attorney from 16 to 14 briefs on the merits each year and allow some time (which is now borrowed from brief-writing time) to prepare appeal and certiorari memorandums and orally argue cases.

(e) Compromise Section: This Section has 11 lawyers and a pending request for 3 additions. Three more attorneys are needed to handle the increased settlement load which will be generated by the increased staffs in the litigating sections. This will bring the total to 17 attorneys.

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Other expenses and conclusion. In addition to funds for personnel the Division will require funds to cover travel, printing, communications, supplies, and equipment, etc. The total cost of the increase outlined herein, including salaries and related costs and other expenses, amount to $525,000. This is less than could be saved the Government by more vigorous defense of just one refund suit and a fraction of what would be saved by the whole program.

While the staff increase will create problems of space here in Washington, there is under active consideration a plan to decentralize to some extent by setting up regional offices to handle courtwork in specified areas. This would minimize Washington space requirements. It is also hoped that the vigorous defense outlined here will in the long run make the litigating process less attractive to taxpayers, which would enable this Division to hold the line or even cut back on staff in a few years. It would be recognized in this Division that an increase of those dimensions in Washington might have to be housed ontside the main Justice Building.

CIVIL RIGHTS DIVISION

Justification for increased funds, 1962

It is requested that an additional $90,000 be granted to the Civil Rights Division for fiscal year 1962, to enable it to enforce the Civil Rights Acts of 1957 and 1960 in line with new policies recently announced by the Attorney General: to carry out the duty of the Department to protect the integrity of court orders in school desegregation cases: and to permit the enforcement of the President's Executive order relating to job discrimination. These responsibilities and activities were not contemplated when the regular 1962 budget estimates were submitted.

The additional funds are needed to employ five attorneys and three clerical assistants. This will increase the authorized staff to 40 attorneys and 38 clerks, totaling 78 employees. The sum of $64,000 will be required for salaries of the eight new positions and the cost of related employee benefits, and $26,000 will be needed for travel, communications, printing, and other miscellaneous expenses.

Investigative and trial activities in voting cases impose duties and obligations which cannot properly be performed with our present personnel. These duties include the detailed analysis of complex factual situations and the preparation for trial and direction and conduct of court actions and subsequent appellate activities. This must be done on a county-by-county basis, through separate actions in each county where evidence of discrimination exists, and requires substantial field preparation as well as courtroom trial time.

This Division has eight cases under the Civil Rights Acts of 1957 and 1960 in pending litigation. In two of these (United States v. Alabama, United States v.

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