Employment Service in a position where it can adequately serve the people who are applying for unemployment insurance, as well as others needing employment. So unless there is some adjustment made in this contingency, we cannot do the kind of job that has been planned for the fiscal year 1956. The total looks apparently as if we got a pretty good approval from the House, but you have to look into this transfer of contingency moneys to get the real effect. Secretary MITCHELL. That, Senator, and gentlemen, is our presentation. INTERSTATE CONFERENCE OF EMPLOYMENT SECURITY AGENCIES Senator POTTER. If I may, I would like to direct your attention to page 4 of the House report. I notice language there on which I would like to have your comments, beginning with the last paragraph on page 4. It states: In the early days of this program, the State agency heads created an organization known as the Interstate Conference of Employment Security Agencies. Costs incident to this organization's activities are financed from this appropriation. Then it goes on and requests that the Department of Labor secure from the agency heads data as to their out-of-State travel and I believe it even goes so far as phone calls that they make. In other words, I would assume that the intent of this language was to prohibit lobbying activities on behalf of the various State agencies; is that correct? Secretary MITCHELL. I do not know what the intent was, sir. We are meeting the request of the House, and we will have all the information that it is possible to acquire available to them on the date that they wish. Senator POTTER. What has impressed me is the fact that it would seem to be a little unusual. These men are State officials and even though the funds are funds from this appropriation, the House report is directing that the Federal agency request State officials to supply them data concerning their out-of-State travel. I would assume probably the same language could apply to your Department, to require the Federal agency to secure information as to your lobbying activities-if I may put it that way. I am a little curious as to how this language came into the report. Senator CHAVEZ. Not only to come to Washington for the purposes as you have indicated, Senator, but they have 1 or 2 annual trips elsewhere, where they have their conventions. As you say, they are employed by the State, by the individual State, paid by the Federal Government, to organize this organization, and they will go to Miami, to San Francisco, to Seattle, for a nice little trip. Senator POTTER. I am just wondering, though, whether or not we are invading some rights of the States in matters of this kind. Senator HILL. Surely the Federal Government ought to have a right to at least know where its Federal funds are going. If these were State funds I would say absolutely we have nothing to do with that. But these are Federal funds. Is that not right, Mr. Secretary? Secretary MITCHELL. These funds are grants-in-aid. They come from taxes imposed on employers in the States. Senator HILL. But we are the trustees of those funds, are we not? EARMARKED FUNDS Secretary MITCHELL. Yes, sir. As you may recall, last year the Congress passed the Reed bill, but up until that time these funds went into the General Treasury. They are now earmarked for this purpose only, for grants-in-aid to the States and also for the building of a reserve against which States may borrow. So they are earmarked for this purpose. Senator THYE. The whole purpose of trying to determine that we have some reporting here and some supervision is to make certain that there will be no unscrupulous administrative staff of a State that will say this is a fund accumulated through contributions from the employer. If it gets too big there is always then the agitation to cut it down by lessening the amount that will be levied as a tax, and they may decide they had better now attend some of these conferences, or that it would be nice if 6 or 7 of them went to the conference rather than only 2. I think there is a need to go in and scrutinize how these funds are spent, because it is the only way you are going to keep out abuse and that you are going to keep an administrative function out of an accumulation in the employers' contribution and the employees' contribution to his own employment compensation fund. ADMINISTRATIVE SCRUTINY I think that a good, clean administrative scrutiny of this, not with the intent of being punitive, but just to make certain that no abuses are permitted on the part of some irresponsible or careless supervisors; I think that is an excellent idea. Senator POTTER. I think, Mr. Chairman, probably that same thing should carry through with other groups of this kind. I do not think one group should be selected. Senator THYE. I think it is an overall function, because I do know that administratively, anyone who has had that responsibility will realize that you pick up that function and you find 7 or 8 of them that went to a conference. You ask them to give you a report about the necessity for 7 or 8. In some instances they could absolutely justify it, while in the next one they could not justify it. The minute that you put such a scrutiny on any of the administrative functions of different departments, you have a better and more consistent sound administrative practice initiated into the department's function. I think it is a good idea. Secretary MITCHELL. Mr. Chairman, may I comment on that? Secretary MITCHELL. It is certainly the function and the responsibility of administrators of departments, such as I am, to see to it that the people who are directly responsible to him-and that includes the 4,900 people in the Labor Department are properly supervised and are not wasteful of Government funds, and that they are dis charging their responsibilities in a proper, orderly, effective way. That is my job. That is one reason why I want some money to do the job better. LOBBYING ACTIVITIES But the background of this particular request-and I do not regard it as an improper one is that this group of men have been accused of lobbying, as the Senator pointed out. This is one way to determine whether that allegation is correct or not. That is the way I regard it. Senator HILL. Are you now gathering this information? Senator HILL. Have you made pretty good progress on it? Secretary MITCHELL. Our reports will be in May 1. Then we have to collate them and look at them. They are due to the House by the 30th of May. They will be in the House's hands before that time. Senator HILL. But you will have all your reports from which you make your report by the first of May? Secretary MITCHELL. Yes, sir. Those are all the particular items that I would want to address myself to, unless the committee has any questions on any of them. Senator HILL. Suppose we proceed to the next office, if there are no further questions, which is the Office of the Solicitor. Do you have anything else, Mr. Secretary? Secretary MITCHELL. Mr. Wilkins, who is assistant secretary of International Affairs, who is here, may want to supplement what I have said. INTERNATIONAL AFFAIRS Senator HILL. Do you want to supplement or add anything to what the Secretary has said about the international affairs, Mr. Wilkins? Mr. WILKINS. I would just like to add one statement, that we would welcome the investigation suggested by the House report, because we feel that investigation would more than justify our program. So I point out that in the language of the House bill there is a ceiling of $85,000 for the international phase of our work. We think that it is bad that the Secretary does not have the right to transfer funds to this agency for this operation, because if he does not and there is an increase in salaries passed by this Congress we will be still further hampered in our work. Senator HILL. Are there any further questions, gentlemen? If not, then we will hear from the solicitor. And, Secretary Mitchell, we want to thank you for your appearance before us this morning. We are happy to have had you and the other gentlemen before us. OFFICE OF THE SOLICITOR STATEMENTS OF STUART ROTHMAN, SOLICITOR; AND JAMES E. DODSON, ADMINISTRATIVE ASSISTANT SECRETARY APPROPRIATION ESTIMATE OFFICE OF THE SOLICITOR Salaries and expenses: For expenses necessary for the Office of the Solicitor, [$1,450,000] $1,500,000. Additional amount for coordination of enforcement of labor stand- Additional amount for employment security activity (salaries gross Total.. 50, 000 17, 900 5, 000 15, 100 12, 000 50,000 Senator HILL. We have a budget estimate in the amount of $1,500,000 for the salaries and expenses of your Office. This contemplates, I believe, an addition of nine positions. The House allowed $1,467,900, a reduction of $32,100 from the request. That is an increase of $17,900 above the current year's appropriation. The increase was allowed for the purpose of strengthening the enforcement of labor-standards provisions in statutes applicable to Federal construction. I have here your statement. If it is agreeable to you, suppose we put the statement in full in the record and have you make any comment you see fit. Mr. ROTHMAN. I would appreciate that, Senator. Senator HILL. Then we will do that and you may proceed to make any statement or comment you see fit. (The statement referred to follows:) STATEMENT OF STUART ROTHMAN, SOLICITOR OF LABOR It is a privilege for me again to appear before this subcommittee and to present justification for the 1956 budget estimate of the Office of the Solicitor of Labor. A year ago I pointed out the backlogs that confronted the Office of the Solicitor when I assumed office in July 1953, and that despite a decreased staff at that time our appropriation had been reduced by $289,600, which eliminated some 60 positions- a very substantial reduction had been effected in those backlogs and operating efficiency and productivity had been greatly increased. During the year past, our operations have been continued by a reduced staff with, we believe, a real measure of success. This is particularly gratifying because last year our appropriation was further reduced by $25,000. Nevertheless, it now appears that in certain areas a relaxation of the monetary limitations under which the Office is presently operating is necessary and will result in material improvement in the performance of our functions for the public and the Department. |