FUNDS TRANSFERRED TO BUREAU OF CUSTOMS

Mr. ROONEY. I note that while there is a reduction in the amount transferred or being transferred in the current fiscal year to the Bureau of Customs of $397,000, that there is still a request for the coming fiscal year in the amount of $828,000. What about this?

Mr. NIELSON. Mr. Chairman, Mr. Gatchell of the Treasury Department, Bureau of Customs, is here to explain that item.

Mr. GATCHELL. Mr. Chairman, as indicated briefly in the justification, the Bureau of Customs serves as the enforcement arm of the Department of Commerce.

Mr. ROONEY. We understand that.

EFFECT OF REDUCTION IN FUNDS

Mr. GATCHELL. And the reduction in the amount will necessarily result in a reduction in the degree to which we are able to carry out that enforcement.

Mr. ROONEY. We understand that, too, but let us have some particulars about it. How many employees do you have and how many do you contemplate during the coming fiscal year, and how much in "Other objects," and so forth?

PERSONNEL

Mr. GATCHELL. I am sorry, I did not understand. We have approximately 300 people on the rolls now. We expect to have an average of 231 on the rolls during the next fiscal year if this appropriation estimate is approved.

Mr. ROONEY. Where will those people be employed?

Mr. GATCHELL. They will be employed at these places, Mr. Chairman: In the port of Boston, 2; New York, 124; Philadelphia, 8; Baltimore, 6; Norfolk, 2; Tampa or Miami, 10; Mobile, 2; New Orleans, 6; Galveston, 6; Laredo, 30; El Paso, 6; San Diego, 6; Nogales, Ariz., 3; Los Angeles, 6; San Francisco, 8; Portland, Oreg., 2; Seattle, 4.

Mr. ROONEY. At a total personal service cost of how much?

Mr. GATCHELL. Of $780,000 including $28,000 pay increase cost.

Mr. ROONEY. Are there any upgrade classifications in the work sheet with respect to this?

Mr. GATCHELL. None whatever. In fact, we have cut out many of the higher-grade employees because with the number of employees being reduced it is not necessary to provide the supervision that would otherwise be necessary with a larger number.

COSTS FOR OTHER OBJECTS

Mr. ROONEY. Does the difference of $48,000 between the $780,000 personal service you have just mentioned and the $828,000 in the total requested appropriation consist of "Other objects"?

Mr. GATCHELL. That is correct.

Mr. ROONEY. Do you have a break-down of that?

Mr. GATCHELL. Yes, I do. Travel expenses, $7,000; transportation of things, $500; communications services, $6,000; rents and utilities

services, $2,000; other contractual services, $13,000; supplies and materials, $14,000; equipment, $5,000; security evidence and awards, $500.. Mr. ROONEY. What are the particulars of this $13,000 for other contractual services?

Mr. GATCHELL. That consists very largely, sir, of expenses of photostating records and cases for use in connection with prosecution of possible export violations.

PROSECUTIONS OF EXPORT LAW VIOLATIONS

Mr. ROONEY. Do you have a statement with regard to the prosecution of export law violations?

Mr. GATCHELL. No, sir; I do not. We will be glad to furnish it to you.

Mr. ROONEY. Will you furnish that for the record?

Mr. GATCHELL. We will.

Mr. ROONEY. Showing the number of cases handled and the number of successful prosecutions and the amount, if any, realized in fines and other such pertinent information?

Mr. GATCHELL. We will be glad to.

(The information requested is as follows:)

EXPORT CONTROL ENFORCEMENT ACTIVITY CALENDAR YEAR 1949

The Export Control Act provides for a criminal penalty of not more than $10,000 fine and not more than 1 year in jail. In addition, by regulation, administrative sanctions are authorized to be imposed against violators in the form of complete denial of licensing privileges for stated periods of time consistent with the seriousness of the offense. Also, under the customs laws, collectors of customs are authorized to seize and confiscate property being or about to be exported in violation of the export control law or regulations.

During the calendar year 1949 a total of 10 cases were referred to the Department of Justice for criminal prosecution. During that same period 30 cases, involving altogether approximately 45 individuals and firms, were handled administratively by way of the suspension or cancellation of licensing privileges. Finally, there were altogether during the calendar year 1949, 220 separate seizures of goods, valued at over half a million dollars, by the Bureau of Customs for export-control violations.

SUPPLIES AND MATERIALS

Mr. ROONEY. What about this $14,000 item for supplies and materials?

Mr. GATCHELL. That is for the usual day in and day out needspapers, pencils, export declaration blanks, all the types of things that go into the day-to-day operations of the work.

Mr. ROONEY. How much do you have for that operation in the current fiscal year?

Mr. GATCHELL. Seventeen thousand dollars, sir.

Mr. ROONEY. It would appear that is a very modest reduction, in view of the substantial reduction in the personnel.

Mr. GATCHELL. Well, let us see. It is slightly less than a propor

tionate reduction.

Mr. ROONEY. "Slightly," did you say?

Mr. GATCHELL. Well, the average reduction is about one-third; that is, the personnel is being reduced by about one-third and this is being reduced approximately one-fifth, so it is not in proportion, as you say.

Mr. ROONEY. I have already asked you to insert in the record a list of other objects, have I?

Mr. GATCHELL. You did, sir, and I quoted that for the record. Mr. ROONEY. And will you insert for other objects the 1949 actual and the 1950 and 1951?

Mr. GATCHELL. I will be very glad to.

(The information requested is as follows:)

Other obligations by object

Mr. ROONEY. Now, you are in here again, are you not, Mr. Cawley? Mr. CAWLEY. Yes, sir.

Mr. ROONEY. $68,000?

Mr. CAWLEY. That is correct.

Mr. ROONEY. That is merely for housekeeping functions of Export Control?

Mr. CAWLEY. Yes, sir. That compares with $105,000 allowed by the committee for the current, exclusive of pay raises.

Mr. ROONEY. My attention has been called to the fact that the reduction in personnel, over-all, in Export Control is approximately 50 percent; $68,000 is not 50 percent of $122,000, is it?

Mr. CAWLEY. Not quite, sir. It is $122,000 when you allow the pay increase for the current year; half of that would be about $61,000. It is not quite proportionate, but it is in accordance with the workload standards for accounting, pay rolling, personnel, and so forth, allowed by the Bureau of the Budget.

Mr. ROONEY. The item of "Salaries and expenses, Bureau of Foreign and Domestic Commerce," contains no increase in the current fiscal year. What was that formerly for, that item of $3,558 ?

Mr. NIELSON. That item, Mr. Chairman, of $3,558 is the executive pay bill for the Assistant Secretary of the Bureau of Foreign and Domestic Commerce.

REDUCTIONS IN COST OF PERSONNEL AND OTHER OBJECTS

Mr. ROONEY. The same situation that we have been discussing with regard to proportion of reductions applies to the chart showing other objects of expenditures at page 680 of the justifications. Although there has been a decrease of 50 percent in personnel, nevertheless, many of the items which make up these other objects of expenditure are not proportionately reduced; is that correct?