Sociologists and psychologists have always insisted that inmates of penal institutions cannot be maintained in idleness if a due regard is had for their mental, physical, and spiritual well-being. Useful employment, or training for employment, is absolutely essential to rehabilitation, which is, of course, one of the chief aims of incarceration. By good management, Federal Prison Industries, Inc., has accumulated a cash balance of approximately $11,000,000, most of which has been returned to the Treasury Department. Future surpluses could be used, in part, for the training purposes authorized by S. 1648. In the opinion of your committee, this would be entirely justified, and would permit greater freedom of management than now exists. All this without the necessity for appropriations by the Congress and without additional cost to the taxpayer. Federal Prison Industries, Inc., would still be held accountable for all expenditures in this direction and the funds so spent would be subject to audit by the General Accounting Office. The audit report of the Comptroller General submitted June 4, 1947, states: The non-revenue-producing program of the corporation for the vocational training of prison inmates and for their employment upon release is believed by us to be without specific authority of law. The corporate management has administratively justified the program through broad interpretations of the corporation's powers and duties, and because the entire program heretofore has been brought to the attention of the Congress in the corporation's annual report. The cost of this program for the year ended June 30, 1946, was approximately $238,000, and it was paid from net income (exhibit 6). The amendment to the bill was adopted at the recommendation of the Comptroller General and is designed to confine expenditures by the corporation to limits imposed by the annual Government corporations appropriation act. The committee believes this limitation to be a salutary one. The following letter from the Attorney General to Senator George D. Aiken and report from the Comptroller General to this committee are made a part of this report. Hon. GEORGE D. AIKEN, United States Senate, Washington 25, D. C. MY DEAR SENATOR: This is in response to your letter of June 13, 1947, relative to the audit report prepared by the Comptroller General of the United States on Federal Prison Industries, Inc., for the fiscal year ending June 30, 1946. You raise several questions in your letter and request my comments. take up these questions in order: I shall 1. The report indicates that the Federal Prison Industries, Inc., is engaged in two major programs, namely, (a) establishment and operation of diversified industries, including necessary training within industry; and (b) special nonproductive vocational training of inmates and securing employment for inmates upon release. tional training in Federal institutions and the related service of securing employA question has been raised in the report as to the legality of vocament for inmates on release. For this reason the committee would appreciate your opinion on this matter. I am of the opinion that the expenditures referred to are authorized by the act of May 27, 1930 (46 Stat. 391; 18 U. S. C. 744a-h), as supplemented by the act of June 23, 1934 (48 Stat. 1211; 18 U. S. C. 7441), and Executive Order 6917, dated December 11, 1934 (18 U. S. C. A. 7441). These acts and the Executive order provide for the diversification of employment of Federal prisoners, for their training and their schooling in trades and occupations, and for other purposes. For a period of at least 8 years the basic statute has been administratively construed to authorize such expenditures. This administrative construction has been repeatedly brought to the attention of the Congress through the annual reports of the corporation and in other ways. The Congress, by the passage of the Governnent Corporations Appropriations Act, 1947, has affirmatively approved the carrying on of this activity as a proper function of the corporation. The question was not raised by the Budget in connection with appropriations for Government corporations for the fiscal year 1948. The matter was fully presented to the subcommittee of the Committee on Appropriations of the House of Representatives at the hearing on the Government corporations appropriations bill for 1948, and the legality of such expenditures was not questioned by the committee in its report (H. Rept. No. 544, 80th Cong., 1st sess., pp. 16–17). This appropriation bill (H. R. 3756) is now before the Senate Committee on Appropriations. As it passed the House it would specifically authorize_the corporation to carry on the vocational training and employment program. further confirms the correctness of our conclusion that it was the intention of Congress that this program should be conducted by Federal Prison Industries, Inc. This 2. The Comptroller further indicated that the training of inmates in occupations such as aircraft mechanics, welding, handicraft, etc., and charging the cost of such training to income derived from normal operations are entirely unrelated to the corporation's mission. Your opinion as to the feasibility of continuing this program under the present arrangement and the method of accounting for the cost thereof is desired. The act of May 27, 1930, is the only statute which relates specifically to the trade and occupational training of prisoners. No question has ever been raised as to the power and duty of the corporation to carry on the trade and occupational training of prisoners actually employed in the Industries operated by it. The board of directors of the corporation was faced with the problem of accepting responsibility for the training and schooling for all prisoners, or leaving the training and schooling of prisoners not employed in the Industries to the institution staff and denying the use of Industries funds for that purpose. This would have meant either that the inmates not employed in the Industries would receive no trade or occupational training, or if funds were appropriated therefor it would be necessary to duplicate to a considerable extent the staff and facilities the corporation would have to set up for the training of inmate industrial employees. This the board considered to be uneconomical and impractical. In this conclusion I concur, as have my predecessors, and I see no reason to make any change in the present way of handling this very important phase of our prison rehabilitation program. I do not think any change in the statute is necessary unless the Congress should decide that the program should be carried on in a different way. As the basis for further study of the question, if you think such study is advisable, I am enclosing the draft of a bill, which would specifically confirm the present practice. Sincerely yours, TOM C. CLARK, Hon. EARL C. MICHENER, GENERAL ACCOUNTING OFFICE, Washington 25, D. C., March 3, 1948. Chairman, Committee on the Judiciary, House of Representatives. MY DEAR MR. CHAIRMAN: In reply to your letter of February 26, 1948, relating to S. 1648, an act to authorize the expenditure of income from Federal Prison Industries, Inc., for training of Federal prisoners, the following information is submitted: It is the opinion of this Office that the vocational training and placement program has been conducted without specific authority of law, since it embraces the furnishing of training, including employment classification, guidance, and placement services, for inmates not directly employed in the industries and the financing of the cost of the program out of profits realized in the course of the corporation's authorized operations. There is no question that this program is proper if conducted by the Federal penal institutions; however, there appears to be no legal authority for its transfer to the corporation. The corporate management has administratively justified the program through broad interpretations of the corporation's powers and duties and because the entire program heretofore has been brought to the attention of the Congress in the corporation's annual reports. A review of the proposed bill (S. 1648) indicates that Federal Prison Industries, Inc., would be given unquestionable authority to conduct the program and pay expenses for its operation from revenues derived from the industry operations. However, since this program is essentially non-revenue-producing and is expanding, it is recommended that the corporation be authorized to make expenditures within the limits of funds available to it, not to exceed limitations placed on amounts for this purpose in the annual Government corporations appropriations acts. This may be accomplished by adding, after the word "schooling", on line 12 of S. 1648, the words "within the limits of amounts specifically authorized annually in the Government Corporations Appropriations Act”. The trend of expenditures for this program may be comprehended from the following comparison: Year: 19451946. 1947. Net erpendi tures $183, 000 238, 000 368,000 Senate Report No. 691, Eightieth Congress (to accompany S. 1648), contains the following statement: "The act is necessary because the Comptroller General believes that present statutes do not confer this authority for this use of the funds. The matter has been complained of several times in the course of audits performed by the Comptroller General." This Office would not be required to continue reporting this activity as being without authority of law if this bill were passed. We do not believe it necessary for a representative of this Office to appear as a witness in this matter; however, we will be glad to have a representative appear if the committee wishes further information from this Office concerning Federal Prison Industries, Inc. Sufficient background may be found available in the audit reports for the corporation for the fiscal years 1945 and 1946, enclosed herewith. Sincerely yours, LINDSAY C. WARREN, Comptroller General of the United States. AUTHORIZING THE POSTMASTER GENERAL TO WITH- APRIL 1, 1948.-Committed to the Committee of the Whole House on the State of the Union and ordered to be printed Mr. STEVENSON, from the Committee on Post Office and Civil Service, submitted the following REPORT [To accompany H. J. Res. 347] The Committee on Post Office and Civil Service, to whom was referred the joint resolution (H. J. Res. 347) to authorize the Postmaster General to withhold the awarding of star-route contracts for a period of 60 days, having considered the same, report favorably thereon without amendment and recommend that the joint resolution do pass. STATEMENT It is the purpose of this resolution to extend the time in which the Postmaster General must accept bids received on star routes in the second contract section. The Congress presently has under consideration extensive revision of laws governing star-route carriers. In order to preserve the rights of existing star-route carriers in whatever legislation may be approved by the Congress this extension of time is recommended. Approximately one-fourth of the star-route carriers are affected. No expenditure of funds is involved. |