cost of such work, both as to cost of construction and maintenance, to the public commercial interests involved, and the public necessity for the work and propriety of its construction, continuance, or maintenance at the expense of the United States."

The bill would define the word "commerce," as used in the provision quoted above, to include the use of waterways by "yachts, house boats, fishing boats, motor boats, and other similar water craft, whether or not operated for hire.' The purpose of the proposed legislation is to provide that due consideration be given to the benefits to pleasure craft in considering the advisability of a proposed improvement.

It is the view of this department that the present provisions of the law do not preclude the consideration of benefits to pleasure craft in arriving at a conclusion on the advisability of a proposed improvement. Principal weight is and should be given to the benefits to commercial navigation in the direction of prospective economies in transportation costs, since these ordinarily constitute the real and tangible benefits from an improvement.

The enactment of the legislation is not considered necessary to the due consideration of the benefits of a proposed improvement to pleasure craft, but the department does not oppose the proposed legislation should Congress regard its enactment as advisable.

Mr. LA FOLLETTE, from the Committee on Manufactures, submitted the following

REPORT

[To accompany S. 3045]

FEDERAL COOPERATION IN UNEMPLOYMENT RELIEF

The Committee on Manufactures, to whom was referred the bill (S. 3045) to provide for cooperation by the Federal Government with the several States in relieving the hardship and suffering caused by unemployment, and for other purposes, have considered the bill and report favorably thereon with amendments:

On

page 5, line 20, after the word "apportioned," insert the words "or allocated."

On page 10, line 10, after the word "by," strike out the word "the" and insert the word "any."

On page 10, line 10, after the word "moneys," strike out the words "apportioned to the State" and insert the words "paid or to be paid to the State from the apportionment."

S. 3045 was introduced as a substitute for the bills S. 174 and S. 262 which had been earlier referred to the committee, and which have been indefinitely postponed.

The bill reported is based upon the declaration that it should be the policy of the Congress "to cooperate with the several States in furnishing relief to their needy and distressed people, and in relieving the hardship resulting from unemployment. The share of the joint burden which it is accordingly proposed that the Federal Government shall assume is placed-conservatively, in the light of the evidence considered by the committee-at $125,000,000 until the end of the present fiscal year, and at $250,000,000 in the fiscal year beginning July 1, making a total of $375,000,000 for the entire period. The Federal contribution is divided into two parts: 40 per cent of the total amount appropriated pursuant to the bill is to be apportioned

among the States in accordance with their population, while the balance is to be allocated in accordance with need and with certain standards set up in the bill.

The maximum available to the States from that portion of the Federal funds to be distributed on the basis of population is shown in the following table:

To give an incentive to a maximum of effort on the part of State and local relief agencies, the payments to individual States from time to time in any one calendar year on the basis of population are limited to an amount not in excess of two-thirds of the amounts made available by the agencies within the State in that calendar year, and not in excess of 40 per cent of the increased expenditures for emergency relief within the State in the calendar years 1932 or 1933, respectively, as compared with the more normal year 1929. In computing the amount made available within the State, the State is to be credited with the total amount expended for emergency relief by the State, its various civil subdivisions, and by private contributions or organizations within the State.

The remainder of the Federal contribution, except for necessary administrative expenditures, is placed in a reserve fund, to be allotted to the States on the basis of need. Payments are to be made out of this fund to States which present satisfactory evidence that the moneys available from local and State sources, and the payments obtained from the Federal Government on the population basis, will not meet relief needs.

To assure effective administration of the funds thus made available to the States, and to make certain that they will be applied to the ends contemplated by the bill, the States applying for assistance are required to (1) designate the agency preferably an existing department of welfare or unemployment relief commission-through which the Federal funds are to be reallocated to localities within the State, (2) set up satisfactory rules and regulations governing the use of the

funds, (3) make provision for effective administration, (4) submit evidence showing actual relief expenditures within the State and estimates of the probable needs, (5) indicate the methods through which the Federal funds are to be disbursed.

Full control over the allocation of funds and the administration of the act is vested in a Federal emergency relief board, to consist of two persons appointed by the President, by and with the advice and consent of the Senate, and of the three Federal officials who have had the greatest amount of experience in administering cooperative arrangements with the States-the Chief of the Children's Bureau, the Director of Extension Work in the Department of Agriculture, and the Chief of the Vocational Rehabilitation Service of the Federal Board for Vocational Education. The life of the board is limited to not over two years, and it is required to submit and publish monthly a report showing its activities and expenditures and the condition of the fund administered by it.

For its guidance upon technical questions, the board is authorized to appoint advisory committees, whose members are to serve without salary.

Subject to the supervision of the board, all necessary administrative and supervisory work is to be performed by the chief and the personnel of the Children's Bureau, supplemented by such additional personnel as the board may find necessary. Administrative expenditures on the part of the Federal Government are definitely limited to $350,000, or less than 1 per cent of the total authorization.

The restricted scope of the Federal administrative organization contemplated by the bill is made possible by the emphasis throughout upon State administration, and the bill specifically states that it "shall be construed as intending to secure to the several States control of the administration of this act within their respective territorial limits," subject only to the safeguarding provisions which are to govern the allocation of funds out of the Federal appropriation. In harmony with what the committee believes to be sound public policy, and in accordance with the necessity for rapid action in the emergency, the bill anticipates that the States will make full use of existing State and local relief agencies.

In view of the difficulties experienced by certain States in coping with the problem of feeding and housing migratory workers and their families, who are unable to establish legal residence within any one State, the Federal board is given full power to deal with this problem, out of the reserve fund, either through special grants to the States or through such other means and agencies as it may find feasible.

The bill reported herewith was written after the conclusion of hearings, conducted by a subcommittee, which were begun on December 28 and concluded on January 9.