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SEC. 3. The portion of subsection (k) of such section 203 which precedes subparagraph (A) is amended by inserting immediately after "classroom," the following: "library,”.

Whereupon, at 12:05 p. m. the subcommittee was adjourned.) (Statements of Members of Congress follow :)

STATEMENT OF HON. THOMAS L. ASHLEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF OHIO

Mr. Chairman, I am indeed grateful to you and the members of this committee for the opportunity to testify in behalf of my bill, H. R. 5448, which would amend the Federal Property and Administrative Services Act of 1949 to make rehabilitation facilities and sheltered workshops eligible for donations of surplus real and personal property.

As you know, the present law authorizes the donation of surplus Federal property "for purposes of education, public health, or civil defense, or for research for such purposes;" the provision relating to civil defense having been enacted in the last session of Congress is not relevant to our concern. The present law, however, restricts such donations to "tax-supported or nonprofit medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities."

Under the administration of the law, very few public and private nonprofit rehabilitation facilities have been deemed eligible due to what I regard as a strained and narrow construction that has been placed upon the statute by administrative regulation of the Department of Health, Education, and Welfare-a regulation which requires that a facility must be devoted "primarily to health and medical services" or "primarily to approved academic vocational or professional study and instruction."

A great many rehabilitation facilities, as you can appreciate, have educational and health aspects as well as employment and general physical rehabilitation aspects, but under the present interpretation of the law, they are not deemed to be within either of the categories of eligible facilities, because they are not "primarily" devoted to educational or health purposes. I have, in fact, been reliably informed that the Office of Vocational Rehabilitation of the Department of Health, Education, and Welfare has been trying to get more Federal surplus property into the hands of rehabilitation agencies, but that amendatory legislation is necessary before any substantial number of rehabilitation agencies could become eligible for such property. The purpose of this legislation is to broaden the restrictive definition of eligible institutions to include "rehabilitation facilities, centers, or sheltered workshops," so that Federal surplus property now standing idle and in many cases deteriorating, can be put to this most worthwhile and constructive use of restoring to economically and socially productive lives our handicapped citizens.

Certainly the restoration of intellectual competence and health through medical treatment and psychological therapy are vital to economic and social independence, but the rehabilitation process is incomplete without adequate and expert vocational direction and training and to deny the use of available Federal property to those institutions which devote their resources to the development of potentially employable persons is both shortsighted and inhumane.

I am sure there is little need for me to dwell here on the tremendously important role and contribution which vocational rehabilitation has played in helping to change one of our Nation's economic problems into one of promise. A recent detailed and objective study conducted in Kansas City reveals conclusively that 65 percent of all disabled persons can be aided by rehabilitation services. About 40 percent are under the age of 18, and it is estimated that about the same number could with proper facilities be rehabilitated to the point of remunerative employment. If this bill is enacted into law, the limited funds of these institutions now used to purchase property and equipment could be released for much needed expansion and development of existing centers and workshops as well as for the hiring and training of critically needed additional personnel.

It has been scientifically estimated that the cost of rehabilitation services to the Federal Government has been more than repaid by the revenue received from increased earnings of disabled men and women who have been rehabilitated. The cumulative record of earnings of rehabilitants for the past decade increased nearly $3 billions, the income taxes on which was $300 million. Yet the total ex

penditure for public programs for the same period were only $225 million, not to mention the dollar savings to the public through eliminating their public dependency.

Nor are there any statistics to portray the full depth and meaning in human terms of individual rehabilitation, for no one can assess in dollars and cents the personal reward and inner satisfaction that comes from being restored to human dignity and achieving self-sufficiency and economic independence through vocational rehabilitation.

Were I not so disturbed I would be mildly amused by the transparent effort of the Department of Health, Education, and Welfare to minimize the significance of vocational rehabilitation in its recent report on this bill. The Department states, and I quote, “Any proposal for an extension of eligibility under the donation program immediately raises the question of extension to other activities and organizations equally deserving but not now eligible—e. g., mosquito districts, nurseries, museums, 4-H clubs, fire-fighting organizations, life-saving squads ***thus creating new lines which would be difficult to justify on grounds of equity."

Now it is not my intention to deride the worthwhileness or importance of these organizations and activities. Certainly they fill a need and are deserving of our support. But I resent, and deeply, the Department's implication that the objectives of vocational rehabilitation are so trivial or its scope so narrow and limited as the activities of these "equally deserving claims upon Federal surplus property."

I note too that the General Services Administration recommends against H. R. 5448 because it "would inevitably result in increased administrative costs and a complication of disposal operations." Moreover, say they, it would "jeopardize orderly procedures for surplus property disposal now being carried out under the act." I am not unmindful of some ill-conceived efforts in the past to promote economy at the expense of human welfare, and while I have consistently opposed any profligate waste of taxpayers' money. I submit that human needs must be fulfilled even if it means an increase in administrative costs or the possible complication of operations or a mild disruption of orderly procedures. If your consideration of the measure I propose is to be resolved into a question of values, surely we cannot establish a pattern of sacrificing human needs and aspirations and their fulfillment to shortsighted principles of pennywise, pound-foolish economy.

I earnestly urge that this committee give prompt and favorable consideration to H. R. 5448 to make rehabilitation facilities and sheltered workshops eligible for donations of surplus Federal property.

STATEMENT OF HON. ALVIN M. BENTLEY, A REPRESENTATIVE IN CONGRESS

FROM THE STATE OF MICHIGAN

Mr. Chairman and members of the committee, it is a pleasure to submit this statement on behalf of my bill, H. R. 5451, introduced by me on February 28, 1957, and which would amend section 203 of the Federal Property and Administrative Services Act of 1949 to permit the disposal of surplus property to municipalities. This legislation was introduced by me in respect to resolutions from various communities in my State, including several in my own congressional district, that municipalities be accorded these surplus property disposal preferences under the Federal Property and Administrative Services Act of 1949. My bill, if passed, would permit the disposal of Federal surplus property to municipalities on the same basis as it is now offered to certain local public health agencies, school boards and civil defense organizations.

Prior to enactment of this act in 1949, surplus property was available to a multitude of nonprofit institutions and organizations with various priorities, resulting in many delays, confusion and extra warehouse storage expenses. The 1949 limitations were designed to simplify the situation and reduce costs. Since that time, exceptions have been enacted for public health and educational programs and civil defense purposes. Recently, a movement was initiated by Michigan communities to extend the disposal priorities to municipalities for general civic purposes, although individual divisions of civic governments such as fire departments, water, and gas systems, and so forth, have sought preferences since the 1949 limitations.

It appears to me that the purposes for which priorities are now allowed by the Federal Government would justify their extension to civic purposes in general. Water and gas systems and police and fire departments operate just as much in the public interest as schools and health agencies and I believe they should be treated the same in their requests for Federal surplus property when it is to be used for the public health, safety or welfare.

I wish to include with my statement the copy of a resolution dated January 3, 1957, from the City Council of St. Louis, Mich., and a resolution from the city council of Corunna, Mich., dated January 21, 1957.

I sincerely believe that the passage of this legislation would provide a very real service to a great many municipalities throughout this country and, therefore, would urgently request its favorable consideration by your committee. CITY OF ST. LOUIS, MICH.,

Hon. ALVIN M. BENTLEY,

Representative, Eighth District, Michigan,

Washington, D. C.

January 9, 1957.

DEAR SIR: This is to certify that at a meeting of the City Council of the City of St. Louis held January 3, 1957, the following resolution was adopted:

"Whereas there is presently at surplus depots equipment and supplies which can be utilized by municipalities, but are prohibited from acquiring them because of exclusion from the preference list, and

"Whereas it is the feeling of this body that municipalities should enjoy the same preference, in respect to acquisition of surplus items which could be used in the operation of local government, as granted to school boards and civil defense organizations: therefore be it

"Resolved, That the city of St. Louis, through its city council, does hereby request that legislation be enacted which would enable municipalities the same rights and preferences as granted school boards and civil defense organizations in respect to acquisition of surplus items at Federal surplus depots; and be it further

"Resolved, That a copy of this resolution be forwarded to the Office of the President, the Governor of the State of Michigan, and the district Representatives in Congress."

It would be appreciated that you give the foregoing resolution your support.
Respectfully yours,
KENNETH V. BARNUM, City Clerk.

RESOLUTION FROM THE CITY OF CORUNNA

"Whereas there is in the United States considerable Federal Government surplus equipment and supplies; and

"Whereas the schools and colleges enjoy the right to acquire this surplus property from the Federal Government; and

"Whereas if the municipal corporations have the right of access of purchase of this property, hundreds of thousands of dollars could be saved by municipal corporations, thereby releasing funds for other much-needed projects in the areas of each corporation:

"Therefore, it is hereby resolved upon motion made by Councilman Leo Brown and supported by Councilman Clark Ross, That we, the governing body of the city of Corunna, Mich., hereby request that municipal corporations be granted the privilege of obtaining Federal surplus materials and supplies in the same manner as now enjoyed by the schools and colleges to acquire this property.

"Yeas, all.

"Motion carried."

I hereby certify that the foregoing is a true and correct copy of a resolution duly adopted by the City Council for the City of Corunna at a regular meeting held on Monday, the 21st of January 1957, at 9 p. m., at the city hall in the city of Corunna, Mich.

BERNICE HAGADON,
City Clerk, City of Corunna.

STATEMENT OF HON. HORACE SEELY-BROWN, Jr., a REPRESENTATIVE IN CONGRESS FROM THE STATE OF CONNECTICUT

Mr. Chairman, I am indeed grateful to you and to the members of the Special Subcommittee on Donable Property for permitting me to appear here this morning in support of H. R. 2504, to provide that Government surplus property may be donated to 4-H clubs for the construction, equipment, and operation of camps and centers.

As we all know, 4-H clubs are organized groups of young people who are engaged in farming, homemaking, or community activities under the guidance of cooperative extension workers and local volunteer leaders trained by them. Any boy or girl between the ages of 10 and 21 years who agrees to "learn to do by doing" may enroll. The group elects its own officers, plans and conducts programs based on the needs and interests of the young people, holds regular meetings, and takes part in community activities. The number of boys and girls who are members of the 4-H clubs in the United States and its Territories exceeds 2 million.

4-H Club work is part of the national system of cooperative extension work of agriculture and homemaking in which the United States Department of Agriculture, the State land-grant colleges, and the county participate. These clubs have helped to develop 10 million young citizens. The 4-H program has been a definite help in increasing farm incomes, in improving standards of living, in increasing the satisfaction which comes from community living, and in preparing young people to meet the challenges of citizenship in the world in which we live. The expression "4-H" used in connection with these clubs typifies the training of head, heart, hands, and health which the club program provides. The national 4-H emblem is a four-leaf clover with the letter "H" on each leaf.

In many of the States 4-H Clubs have undertaken the job of building and operating camps and centers so that they may better carry out their work. I know from firsthand observation of the splendid work done in these centers.

I am sure the legislation which I introduced has a significant meaning not only to the young boys and girls who actively participate in 4-H work today, but also to those who are better citizens today because of their previous training in 4-H work. In view of the value of 4-H Club work to farm youth and the entire Nation, I firmly believe that the entire membership of the House would unanimously approve H. R. 2504.

I respectfully urge your favorable consideration of this pending legislation.

STATEMENT OF HON. A. S. J. CARNAHAN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MISSOURI

Mr. Chairman and members of the committee, I appreciate the opportunity of appearing before you in behalf of my bill, H. R. 13085, to include public libraries in the list of institutions eligible to receive donations of certain surplus personal property and for the purpose of purchasing or leasing surplus real property.

There is a great need in public libraries for this surplus property, and I know this is particularly true in the State from which I come, Missouri. Our county and regional libraries have extremely limited funds and they now operate with insufficient desks, typewriter chairs, vertical files and catalog cases, all basic to proper functioning. Tables, shelving, book carts, fans, typewriters, and vehicles which could be converted into bookmobiles are also needed. Surplus books are needed in these libraries and can be put to good use and could be the means of releasing funds of these institutions for extension of library service to the some 25 million rural Americans who are now without public library service.

Public libraries are so closely allied with education and educational institutions that it appears to me they should qualify for authorization of property transfers for educational purposes. I am pleased to note that the Comptroller General of the United States has rendered a report that public libraries appear to make an appropriate recipient for these benefits, and I urge the committee to favorably consider H. R. 13085, to include public libraries in the list to receive donations of this property.

A. S. J. CARNAHAN,
Member of Congress.

30975-58-5

STATEMENT OF HON. CHARLES E. CHAMBERLAIN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN

I am pleased to have this opportunity to appear before your subcommittee in behalf of H. R. 5460, which I introduced on February 28, 1957. This bill is designed to correct the inequities presently contained in the Federal Property and Administrative Services Act of 1949, as amended. H. R. 5460 would modify the existing legislation to provide a priority to States and local governments to purchase Federal surplus property after the Federal agencies have had an opportunity to do so and after the donable program for health, education, and civil defense purposes has been satisfied. Under the provisions of my bill the cost of this property to State and local governments could not exceed that at which property was made available to Federal agencies before it was declared surplus. H. R. 5460 also provides that the Administrator of General Services may impose reasonable terms, conditions, reservations, and restrictions upon the use of any single item of personal property sold under these provisions which has an acquisition cost of $2,500 or more.

Under the procedures presently employed, an item which is no longer needed by a Federal agency is first made available to other Federal agencies. Once it is determined that no other Federal agency is interested in a surplus item it is offered on a donable basis for educational, public health, and civil defense purposes. The Department of Health, Education, and Welfare handles distribution of materials distributed under the donable program through a series of State supported surplus disposal agencies.

Items which are not needed by other Federal agencies and are not desired under the donable program are then offered to the highest bidder at public auction. It is at this point that the present law has been subject to severe criticism. It was in response to these sound criticisms that I introduced H. R. 5460. The Federal Property and Administrative Services Act of 1949 in providing for a public auction after the needs of Federal agencies and the donable program have been met in effect discriminates against State and local governments. Municipalities, for example, are precluded by law from appearing at a public auction or submitting a sealed bid. In practice, therefore, the only way that a municipality can obtain a surplus item is to buy it from a middleman or private organization which has purchased it from the Federal Government. This, of course, means that the municipalities must pay a higher price than would be the case if it were possible for them to purchase it directly. Thus, virtually none of the nearly $2 billion worth of Federal property which is made surplus annually is made available to local governments.

Clearly this is an unjust situation which should be corrected immediately. Certainly there is every justification for granting units of government the privilege of purchasing Federal surplus property before such property is released for sale to the general public. It does not seem proper-or understandable-that private dealers should receive preferential, or even equal, consideration to governmental units in purchasing these materials which were originally bought with tax dollars, or that such dealers should be able to realize a profit by trading between the levels of our governmental system. To require local and State governments to obtain from middlemen at increased cost surplus items of the Federal Government which would prove extremely valuable to the local governments is nothing short of ridiculous.

Much is heard these days about the desirability of bringing about closer relationships between the Federal and State and local governments yet the present law serves as a barrier to cooperation in this particular sphere of activity. Much is heard, too, about the increasing complexity of government and the expanding services which local governments are called upon to perform. The rapid increase in such services has necessarily meant sharply rising costs of government. Passage of H. R. 5460 would assist these governmental activities to meet their obligations to those they serve by facilitating the purchase of Federal surplus items by them and by eliminating the need to obtain these items at increased cost. If the experience of municipalities in my home State of Michigan is at all representative there is every indication that adoption of my proposal would result in a significant saving to local governments. In Michigan, even the limited opportunity to purchase for civil defense purposes has saved municipalities considerable sums.

Criticism of the proposal has centered around the idea that it might be difficult to administer. It is not surprising that governmental agencies are reluctant to assume additional responsibilities. I recognize that certain aspects of the proce

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