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Senator KILGORE. I was in one place, for instance, where the seats in the auditorium were practically coming apart. They held church services and other things in that auditorium, and if they had money for materials they could make the seats themselves.

Attorney General BROWNELL. I think that in all good equity they are entitled to the fruits of the good work that they do.

Senator KILGORE. In other words, I believe it would be a morale builder in the penitentiaries if some system of that kind were built up so that they realize that when they work in the shop they are not only getting a little payment to send to their families but that also their general living conditions are being somewhat benefited. Do you think so?

Attorney General BROWNELL. I do. I would like to see that done. Senator KILGORE. Are there any further questions?

TRANSFER AUTHORITY FOR INTERCHANGE OF FUNDS

Senator BRIDGES. I have one question.

You remember that last year, Mr. Brownell, you asked the committee to put in authority to exchange 5 percent.

Attorney General BROWNELL. Yes.

Senator BRIDGES. I noticed that the House eliminated that from your bill this year and I notice that you did not mention it in your statement. I wondered if you still have an interest in that?

Attorney General BROWNELL. I do very much, and in the formal presentation we have given to the committee we have urged them to restore that 5-percent transfer authority. I am very glad that you brought it up.

The heads of the Bureaus, the FBI, and Immigration and Prison system, have that authority, which for some reason the Attorney General is not given, with respect to the legal divisions of the Department.

For example, you can see very well how it hampers our operations if we have a flood this year of FHA cases, and there is no authority granted now to transfer the appropriate amount of money, we will say, from the Antitrust Division to the Civil Division or the Criminal Division to take care of that. I think that it must be an oversight, because it is just a matter of good housekeeping.

I would appreciate it very much if I could have that authority. Senator KILGORE. Would that authority give an incentive to the overall administration of the Department to effectuate savings wherever possible, in order to be able to have a certain reserve that could be used in emergencies?

Attorney General BROWNELL. I would operate it that way, I can assure you.

Senator KILGORE. Are there any comments which you have on the overall prison industry setup? Do you need any law changes or language changes?

EXPANSION OF PRISON INDUSTRIES

Attorney General BROWNELL. I would like to call to the attention. of the committee that I have recommended to the Hoover Commission

that in its recommendations to the Congress it approve or affirmatively recommend the extension and expansion of the activities of the Federal Prison Industries.

For example, the mailbag and mail-lock business of the Government, it seems to me, might well be turned over to the Federal Prison Industries.

I am in favor of encouraging an expansion of the amount of work that other departments of the Government give to Prison Industries.

JUSTIFICATION FOR REDUCED DIVIDENDS FROM INDUSTRIES

Senator KILGORE. I notice in the budget for fiscal 1955 that actual dividends in 1953 were $4,100,000, whereas the estimated 1954 dividends were only $2,560,000 and for 1955, $2,100,000.

Attorney General BROWNELL. The decision is made by this independent board, which has representatives of industry, organized labor, agriculture, and so forth. I attended their meeting this year, at which they discussed the amount of dividend, and I believe you will find that outside of the question of increase in operating costs, the main factor there was that a sizable amount is being put into the improvement and maintenance of their own facilities. That is just a matter of good business judgment.

USE OF FARM SURPLUSES

Senator KILGORE. Would it be beneficial to amend the Agricultural Act to provide surplus foodstuffs to be used in your penal institutions? Attorney General BROWNELL. I am of the impression, although I would like to have you direct that question to Mr. Bennett, that that is not a problem for them because they raise a very substantial part of their food on the prison farms.

Senator KILGORE. They do not raise certain things in certain places, while in other places they do. I thought that if we do have an overflow of foodstuffs that that could be done.

Attorney General BROWNELL. It is well worth raising with Mr. Bennett. I will advise him that you are going to raise that question, so that he will be prepared.

Senator KILGORE. Are there further questions?

Senator HAYDEN. No questions.

Senator KILGORE. Is there anything further which you have? Attorney General BROWNELL. I think not, sir. Thank you very much.

Senator KILGORE. We will recess for 10 minutes.

(A short recess was taken.)

EFFECT OF HOUSE REDUCTIONS

Senator KILGORE. We will proceed.

Mr. ANDRETTA. Mr. Chairman, I would like to supplement the Attorney General's statement, which was in general terms pertaining to the whole Department, by pointing out what the effect of the House cuts would be in the way of personnel reductions and what the restoration would provide us in the way of personnel.

If the House cut stands, we will have to reduce 376 positions-that is exclusive of the FBI-under this year as follows: There would be a net reduction under "General legal activities" of 7 positions. The Immigration Service would drop 314, and the Office of Alien Property,

122.

IMMIGRATION POSITIONS AFFECTED BY HOUSE CUT

Senator KILGORE. What categories in the Immigration Service will be dropped?

Mr. ANDRETTA. They are mostly administrative personnel.
Senator KILGORE. In the various regional district offices?

Mr. ANDRETTA. In other words, 135 would be dropped in the administrative operations and 179 on detention and deportation, mostly closing up Ellis Island and some of the other detention and deportation stations. That number will be dropped irrespective of whether you put back the money, because that is mostly going into border patrol anyway.

The only actual net increase in personnel that has been allowed by the House is in the Bureau of Prisons, which is plus 67 jobs. If you restore these cuts, we will get back positions as follows: general administration will get 2 positions; general legal activities, 117 jobs; United States attorneys and marshals, 30; and the Office of Alien Property, 73. In other words, we would get back 222 jobs.

TOTAL PERSONNEL POSITIONS

Our overall estimates call for 32,100 positions as against 32,304 allowed in the present fiscal year, so even if we get the full estimate, we are still going to have fewer persons than we have in the present fiscal year.

Under the House allowance, we would get 31,878 jobs, which is 426 less than the present fiscal year. As to attorney positions, I would like to call your attention to the fact that in 1954 actually we had 1,887 attorney positions.

Senator KILGORE. You were here when the Attorney General testified. These positions are the ones that affect our legal activity in all the courts?

Mr. ANDRETTA. That is right. This is the law shop of the Department of Justice.

Senator KILGORE. Handles litigation, claim handling, and all that sort of thing.

Mr. ANDRETTA. Yes, sir.

Senator KILGORE. Both in the Department and in the field?

Mr. ANDRETTA. That is right. This is the whole Department, in the field and here in Washington.

Senator KILGORE. That applies to 94 judicial districts?

Mr. ANDRETTA. That is right. This year the estimate provided for 1,955 legal positions and, if you will note, if the House action stands, we will get 1,919 legal positions, which is a reduction of 36 legal jobs. If the full request is allowed, we would then have 2,037 positions.

EFFECT OF PERSONNEL REDUCTION

Senator KILGORE. That reduction in personnel will increase that backlog we were talking about a while ago, is that right?

Mr. ANDRETTA. Yes, it will. You would cut your production down and therefore you will have all you can do to keep up with current work and you will not have any spare personnel to cut into the backlog.

Senator KILGORE. Let us put this table of employees and the fiscal summary of fund requirements in the record at this point.

(The tables referred to follow :)

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Statement by appropriations showing the number of attorney positions and all other positions (authorized) for the fiscal years 1954, 1955, and 1956, also actual employment as of Mar. 31, 1955

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1,555 3,256 4,811 1,626

1,717 3,326

1,622 3,272 4,894 1,523

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