these institutions is expressed in Senate Report No. 351, may 17, 1955, accompanying H.R. 3322 (84th Cong., 1st sess.), as follows: Since the end of World War I the Congress has enacted some 15 separate provisions of law making available to educational and health institutions quantities of surplus property acquired largely for war activities. Recognizing that sufficient property has not been available for essential public welfare purposes because of wartime requirements and expenditures, the Congress has repeatedly approved the donation of surplus property to educational and public health institutions when found to be useful and needed for educational and health purposes. The Congress has been fully aware of the small return to the Treasury from the sales of surplus property made to date and the large profits made by speculators, and has found that the general public good is best served under this procedure. These bills would make Indian tribes equally eligible to receive donations of federally owned surplus personal property for beneficial purposes. The proposed legislation can be justified on the same grounds as the law already in effect. In addition, passage of the bill clearly seems desirable in view of the special relationship of the United States as guardian and trustee for Indian tribes and the special interest of the United States in Indian welfare. Certainly, there is no reason why Indian tribes should not be on a par with State agencies and private, nonprofit organizations in receiving grants under the act. The need of Indian tribes to become elegible for donations of federally owned surplus personal property cannot be disputed. According to the Department of Health, Education, and Welfare, the "poorest, sickest, and least educated" of any racial group in the United States are our Indian citizens. Immeasurable benefits to a deserving people thus would be worked by the distribution of surplus Government clothing to the tribes, perhaps in the same manner as the surplus commodities program now operates. Other obvious benefits can be achieved by the distribution of surplus equipment for use in tribal youth employment programs, which are doing so much to combat juvenile delinquency, and for use in tribal range improvement programs, which are doing so much to rehabilitate the economy of Indian communities. Indeed, the potential benefits are limited only by the availability of surplus property for distribution. At the same time, S. 2244 amply protects the interests of the Government. In the first place, the Administrator is authorized to promulgate regulations governing the donation of property to the tribes and, secondly, no donation can be made unless the Secretary of the Interior shall first have determined that such property is needed by such tribe, band, or group for an approved program, and that tribal funds cannot reasonably be made available for the acquisition of such property. Thus, the interests of the United States, the tribes, and the public all demand that the proposed legislation be enacted. AMERICAN ASSOCIATION FOR STATE AND LOCAL HISTORY, Senator ERNEST GRUENING, Chairman, Committee on Government Operations, DEAR SENATOR GRUENING: The American Association for State and Local History respectfully requests that the Senate Committee on Government Operations carefully consider its recommendations for extending the surplus property donation program to State and local historical societies and agencies. This aid would help historical agencies immeasurably in carrying out their important work of preserving the heritage of their communities. These organizations, both statewide and local, collect and preserve manuscript and archival records. Scholars of American history throughout the Nation are indebted to them for building important research libraries. Historical agencies restore and safeguard historic houses and buildings, mark historic sites, and commemorate the anniversaries of historic events. The work of promoting State and local history in the schools has reached enormous proportions. Museums of history, traveling exhibits, pageants, popular publications, and radio and televsion programs bring to the general public the great story of the American experiment in political and economic democracy, at a time when conflicting idealogies stand ready to challenge the nature of American institutions. It is a well-known fact that most historical societies and agencies in the United States operate on very modest budgets. Some depend entirely upon private contributions for their operations, while most rely on both public and private financial support. Competition for State and local government funds has increased drastically in the past few years. State and local historical agencies are finding it more difficult to finance their important adult educational programs; at the same time, the demand for these services continues unabated. The use of personal surplus property would certainly be helpful in alleviating the usually tight budgets for projects of this type. There is no question that historical societies and agencies are educational institutions. However, within the narrow framework of the definitions worked out by the Department of Health, Education, and Welfare, historical societies and agencies are denied eligibility for surplus property. Section 203 (j) (3) of the 1949 law provides, in part, for the distribution of surplus property to "(A) tax-supported medical institutions, hospitals, clinics, health centers, school systems, schools, colleges, and universities, and (B) other nonprofit medical institutions, hospitals, clinics, health centers, schools, colleges, and universities which are exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954." Yet, in most States the historical society, commission, or department of archives and history is a State agency, and is specifically designated an educational institution by statute. All are incorporated as nonprofit educational institutions and are exempt from taxation under section 501 (c) (3) of the 1954 Internal Revenue Code. While some historical agencies conduct formal classroom courses, with regular faculty, most stress the multifaceted and far-reaching work that needs to be done in the field of informal education for both children and adults. Strangely enough, the inability of historical societies to receive surplus property has interferred with normal collecting activities. About a year ago the State Historical Society of Wisconsin was declared ineligible to receive the surplus presidential car, the Ferdinand Magellan, for its National Railroad Museum at Green Bay, Wis., because it did not meet the narrow requirements of the law. There are several proposals now pending before your special Subcommittee on Government Operations. Although none directly involves historical societies and agencies, the council of the American Association for State and Local History strongly advises that either the present law governing the distribution of Federal surplus property be amended to qualify historical societies and agencies to receive Federal surplus property, or that section 203 (j) (3) of the law be interpreted more broadly so that historical societies and agencies could qualify as educational institutions to receive surplus property under the present law. Your consideration of this request, and its incorporation into the written reports of the hearings, will be greatly appreciated by the members and council of this association. Sincerely yours, CLEMENT M. SILVESTRO, Director. Hon. ERNEST GRUENING, NEWARK, N.J., July 28, 1959. Chairman, Subcommittee of the Senate Committee on Government Operations, U.S. Senate, Washington, D.C.: May we for the record present the following statement: We regret exceedingly our current attendance at the First International Conference on Mental Retardation being held in Portland, Maine, prevents us from appearing in person at this hearing to testify in behalf of Senate bill 1365 which would authorize the donation of surplus property to certain welfare agencies. We understand that there is some opposition to the passage of this bill based on existing administrative problems which may be faced in the disposition of surplus property. Notwithstanding we believe that the amount of benefit which can be derived from the donation of surplus property in support of our local recreation and the welfare programs will far outweigh these administrative problems. Many of our local member units find themselves struggling to maintain themselves and few have any sure fiscal or tax base under which they operate. Enabling our member units which provide both recreational and vocational rehabilitation training programs through sheltered workshops and the like to qualify for Federal surplus property would further and extend their programs and aid in their efforts to rehabilitate an increased number of the mentally retarded in our country. This is in keeping with the public interest and the intent of the law. The activities of our local units will in the future save governmental assistance agencies millions of dollars. We submit that aid to at least one million retarded is of sufficient national interest to make it advisable to discount any administrative difficulties which may be encountered. NATIONAL ASSOCIATION FOR RETARDED CHILDREN, Senator GRUENING. The committee will recess until tomorrow at 10 o'clock in the morning. (Whereupon, at 12:45 p.m., the committee was recessed until 10 a.m., Thursday, July 30, 1959.) EXPANSION OF DONABLE PROPERTY PROGRAM THURSDAY, JULY 30, 1959 U.S. SENATE, SPECIAL SUBCOMMITTEE OF THE Washington, D.C. The special subcommittee met, pursuant to recess, at 10 a.m., in room 3302, New Senate Office Building, Senator Ernest Gruening (chairman of the subcommittee) presiding. Present: Senator Ernest Gruening. Also present: Walter L. Reynolds, chief clerk and staff director; Ann M. Grickis, assistant chief clerk; and Glenn K. Shriver, professional staff member. Senator GRUENING. The hearing will be in order. Senator Stennis, we shall be happy to hear you on S. 1018, a bill to authorize the donation of surplus property to certain agencies engaged in cooperative agricultural extension work, and for other purposes. Senator STENNIS. Mr. Chairman, I certainly want to express my appreciation for having a chance to be here with you and your subcommittee. I am going to be fairly brief. I am going to ask permission, Mr. Chairman, to, if I may, insert my statement in the record as an orginal, and then save time for you by summarizing the major points in it. Senator GRUENING. That would be very kind, if you do it that way. STATEMENT OF HON. JOHN STENNIS, U.S. SENATOR FROM THE STATE OF MISSISSIPPI Senator STENNIS. Mr. Chairman, my distinguished and good friend, Senator Kerr of Oklahoma, has expressed a very special interest in this proposed legislation and asked me to urge the committee in his behalf to favorably report a bill which will permit the extension service to receive surplus property. Senator GRUENING. Thank you, Senator Stennis. Senator STENNIS. Mr. Chairman, I appreciate this opportunity to appear before your subcommittee in support of my bill S. 1018. The primary purpose of this bill is to simplify the procedures for distributing surplus property to the cooperative agricultural extension service. Under existing law, the extension service is eligible to receive Federal surplus property as an educational agency, provided qualifications established by the Department of Health, Education, and Welfare are 65 |