filled, will be $71,110, and assuming that all positions will remain filled during the 1943 fiscal year, the pay roll for that year will aggregate $71,915. It will be seen that if the limitation remains as suggested in the Budget estimates, it would be impossible to make the promotions contemplated by the law. It would therefore seem that the limitation should be increased rather than reduced.

This appropriation is to enable the Commission to carry out the objects of the act approved March 1, 1913, and amendments thereto. The primary function performed by the Commission under section 19a of the act is the investigation, ascertainment, and reporting of the value and use of all property owned or used by every common carrier subject to the provisions of the act.

The original valuations having generally been completed, the Bureau's activities are mainly centered in keeping informed, as required by the act, of all new construction, extensions and improvements, retirements or other changes in the condition, quantity, use, and classification, and investment in, and cost and value of, the properties, and in having available at all times the information necessary to revise its inventories, classifications, and values; also responding to calls for valuation exhibits and testimony in various investigations and litigations. Among such calls are requests for consultation, exhibits and expert witnesses in cases involving the fixing of rates; cost-of-service analyses as a basis for just and reasonable rates; division of line haul and switching rates and terminal charges; joint rail and barge-rate adjustments; reorganization of carriers in bankruptcy proceedings; providing the basis for opening books of reorganized or new companies; adjusting deficit settlements with carriers under section 204; studies of maintenance, depreciation, and service; adjusting oil gathering charges and trunk-line transportation rates by pipe lines; furnishing valuation basis for analyses of earnings of carriers; and responding to calls of various Government departments— now, more particularly, from the Army, Navy, and Treasury in connection with national defense.

The functions of the various sections or groups into which this Bureau is divided are as follows:

GENERAL OFFICE (INCLUDING ADMINISTRATION)

The Director is in charge of all activities of the Bureau, reporting directly through a commissioner to the Commission (Division 2). He is in general supervision, as to properties subject to the Interstate Commerce Act, of the work of investigating, ascertaining, and reporting the various elements of value and condition of the property and other factors enumerated in section 19a of the Interstate Commerce Act or impressed as the law of the land by the Supreme Court. He submits valuation reports and recommendations to the Commission (Division 2) and, on direction, to its various bureaus, and serves as consultant. Under the amendment of the act by the Seventy-third Congress, June 16, 1933, requiring the Commission to keep itself informed of such matters, he directs the work of keeping continuous inventories and records to the end that the Commission may

have available at all times information deemed by it to be necessary for revision or correction of previous inventories, classification, cost, investments, and values, or for guidance in its various regulatory duties. The duties of the general staff are as follows:

Administrative: Conducts administrative audit of public vouchers, maintains time and leave records, handles matters relating to personnel, mails and files, serves underlying reports, and performs other duties as directed by the Director. Examining: Conducts all hearings in valuation cases; drafts final valuation reports for consideration by the Commission; does research and analytical work; and acts as legal adviser in certain matters.

The work of the Bureau under the general office falls into three technical groups known as sections, whose duties are as follows:

ENGINEERING SECTION

This section's duties, all departmental, involve: Constant revision of inventories of physical properties other than land to keep them current as to changes in quantity, condition, and classification as to use; keeping current price indices to apply to the corrected inventories; preparation of estimates of cost of reproduction new and cost of reproduction less depreciation; holding conferences with representatives of the carriers or other interested parties in connection with protested matters or matters being perfected; revision of engineering reports to accord with findings of the Commission; preparation of engineering data for use in compilation of valuation reports; examination and coordination of returns to various valuation orders; aiding Accounting Section in determining original cost; field inspections and office studies of depreciation; acting as technical advisor on engineering matters; presentation of expert testimony; preparation of data in answer to requests from the public, State authorities, and Federal agencies, and now largely in making investigations in response to national-defense agencies.

ACCOUNTING SECTION

General: Checking and policing returns to valuation orders.

Departmental force: Preparing reports of original cost and investment of carriers; digesting reports of field examiners covering check of returns to valuation orders; preparing statements of discrepancies in reports of carriers; preparing statements for Engineering and Land Sections covering cost of property changes for periods not yet covered by returns to valuation orders; preparing reports on corporate history, results of corporate operations, capitalization, aids, gifts, grants, and donations; determination of working capital; holding conferences with carriers with respect to adjustments in their reports and other matters; acting in an advisory capacity and as expert witnesses in valuation and other hearings; preparation of data in answer to requests from the public, State authorities, and Federal agencies.

Field force: Auditing the records and reports covering property changes and their costs since basic valuation dates, including the making of appropriate field checks and inspections; checking cost data reports and preparing other special valuation data required from time to time.

LAND SECTION

Departmental force: The duties are to keep current the inventories of lands owned or used by common carriers, recording changes in quantities and conditions of ownership and use; to apply to the inventory revised unit land values developed by the field force; to prepare reports in such detail as may be required, showing lands classified according to ownership and use and their value; to report the value of rights in public domain and private lands, values of noncarrier physical property, and to report the areas and values of lands obtained through aids, gifts, grants, and donations, etc.; to prepare exhibits, confer with interested parties, and present expert testimony as may be required on controversial land matters; preparation of data in answer to requests from the public, State authorities, and Federal agencies.

Field force: The duties are to study and report changes, within their several districts, in values and use of land of common carriers, such studies being supported by personal investigation, sales and assessment data of similar lands, and interviews with individuals qualified to give expert opinions; to make detailed land appraisals and to present expert testimony. The estimate for this purpose,

approved by the Bureau of the Budget for the 1942 fiscal year, is in the exact amount of the appropriations for the past 3 years. Calls for land appraisals for the Army and the Navy in national-defense plans are very heavy on this section. The amount included in the Budget estimates is $12,405 in excess of the appropriation for the current fiscal year. $2,500 of this increase is to cover rental of office space at Buffalo, N. Y.; Cleveland, Ohio; and St. Paul, Minn. Formerly we occupied space in Government-owned buildings in these_cities. We were required sometime ago to give up this space to the Bureau of Internal Revenue, which Bureau will assume the rental until June 30, 1942. It will be necessary that we assume the rental for the 1943 fiscal year. The balance, or $9,905, is for administrative promotions under the Ramspeck bill. However, by applying the same formula that has been applied to other appropriations for administrative promotions, the amount to be included for this item should have been $10,405 and the total increase in the appropriation should be $12,905.

1 Excludes $144,920 covering salaries of employees provided for in this appropriation, but assigned to Bureaus under the appropriation for "General administrative expenses.'

2 Excludes $131,180 appropriated in 1942 under this title and transferred to and estimated for under "Gen eral administrative expenses."

This appropriation is for all authorized expenditures under part II of the Interstate Commerce Act, and section 5, part 1, of the Interstate Commerce Act insofar as it applies to common carriers subject to part II, providing for the regulation of the transportation of passengers and property by motor carriers operating in interstate or foreign commerce.

The act is to be administered by the Interstate Commerce Commission, in cooperation with State commissions, and is generally applicable to upward of 29,000 separate carriers and brokers and to more than 250,000 vehicles operating throughout the country. The regulation embraces (1) certificates, permits, and licenses of public convenience and necessity, (2) standards for safety of operation and equipment, including hours of service of employees, (3) surety bonds and insurance policies, (4) service requirements, (5) uniform system of accounts and reports, (6) tariffs and charges, (7) consolidations or mergers and issuance of securities, (8) investigations as to size and weight of vehicles as related to safety of highway operation. The safety provisions of the act apply also to privately operated trucks, as well as to common and contract carriers. It is estimated that there are in excess of 750,000 of these privately operated trucks.

Due to the large number of carriers subject to the Motor Carrier Act, it is necessary to have a substantial field force, and at present field offices are maintained at 79 different points.

The budget estimates are $3,586,240, a reduction of $103,760. This reduction is accounted for by the transfer to appropriation for general administrative expense of $131,180 previously mentioned; a reduction of $26,000 in travel expenses, and a reduction of $5,000 for equipment, or a total reduction of $162,180.

There has been added for administrative promotions $58,420, leaving the net reduction $103,760. In addition the estimates provide for five additional safety inspectors in the field at an aggregate annual salary of $13,000, which amount, however, will have to be absorbed out of lapses.

Includes $1,600 transferred from U. S. Maritime Commission under pt. III of the Transportation Act of 1940.

This appropriation covers all printing and binding for all the activities of the Commission.

The amount allowed in the Budget estimates is $800 less than the appropriation for the current fiscal year. The reduction is in the item for miscellaneous.

This appropriation is to cover the further needs of the Commission for the 1943 fiscal year of those objects included in the supplemental appropriation for the 1942 fiscal year relating to the promotion of national security and defense insofar as they relate to the adoption of measures for preventing shortages of railroad equipment and congestion of traffic, etc. This activity of the Commission is centered upon the enforcement of the provisions of section 1 (10) to (16) of the Interstate Commerce Act, and the necessity for additional funds for carrying on the work under these subsections may be summarized as follows:

The defense program will throw a heavy burden upon the carriers by railroad; and their facilities will be taxed to the utmost. It will be necessary, therefore, that necessary precaution be taken to see that the facilities of the carriers are used to the best advantage in the interest of national defense. Section 1 (15) and (16) of the Interstate Commerce Act are as follows:

(15) Whenever the Commission is of opinion that shortage of equipment, congestion of traffic, or other emergency requiring immediate action exists in any section of the country, the Commission shall have, and it is hereby given, authority, either upon complaint or upon its own initiative without complaint, at once, if it 80 orders, without answer or other formal pleading by the interested carrier or carriers, and with or without notice, hearing, or the making or filing of a report.

according as the Commission may determine: (a) to suspend the operation of any or all rules, regulations, or practices then established with respect to car service for such time as may be determined by the Commission; (b) to make such just and reasonable directions with respect to car service without regard to the ownership as between carriers of locomotives, cars, and other vehicles, during such emergency as in its opinion will best promote the service in the interest of the public and the commerce of the people, upon such terms of compensation as between the carriers as they may agree upon, or, in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable; (c) to require such joint or common use of terminals, including main-line track or tracks for a reasonable distance outside of such terminals, as in its opinion will best meet the emergency and serve the public interest, and upon such terms as between the carriers as they may agree upon, or, in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable; and (d) to give directions for preference or priority in transportation, embargoes, or movement of traffic under permits, at such time and for such periods as it may determine, and to modify, change, suspend, or annul them. In time of war or threatened war the President may certify to the Commission that it is essential to the national defense and security that certain traffic shall have preference or priority in transportation, and the Commission shall, under the power herein conferred, direct that such preference or priority be afforded.

(16) Whenever the Commission is of opinion that any carrier by railroad subject to this part is for any reason unable to transport the traffic offered it so as properly to serve the public, it may, upon the same procedure as provided in paragraph (15), made such just and reasonable directions with respect to the handling, routing, and movement of the traffic of such carrier and its distribution over other lines of roads, as in the opinion of the Commission will best promote the service in the interest of the public and the commerce of the people, and upon such terms as between the carriers as they may agree upon, or in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable.

It is highly probable that in the near future the Commission may be called upon to exercise these emergency powers by the issuance of service orders and to police those orders.

Pending the exercise of such emergency powers every effort should be made to have the carriers promptly furnish the cars for the transportation of commodities generally and to meet the extraordinary needs of our Government as well as for shipments of supplies furnished under the Lend-Lease Act. Our service agents are doing much to assist the carriers in meeting their present needs by inducing industries to load and unload cars promptly. A close check is likewise being kept to see that there is no undue delay in the movement of such cars by the carriers through terminals. The Bureau of Service, which handles matters of this kind, has but 16 permanent service agents in the field to cover the entire country.

We have, in prior emergencies and for short periods of time, used the inspectors of our Bureau of Safety and Locomotive Inspection to assist in this work. However, with the large increase in the number of cars and locomotives being put into service and in the interest of safety, it is necessary that the inspectors assigned to those Bureaus be not detached from their present assignments. We did, temporarily, have a makeshift arrangement under which persons from other bureaus were temporarily assigned to assist the service agents, but these persons, with one exception, have since been returned to their regular duties. Under the second deficiency appropriation bill, the amount appropriated for this activity was $110,000. Twenty-three additional service agents have been added to the staff. The Budget estimates for the fiscal year 1943 provide for an increase in the appropriation for this activity to $238,165. This will permit of 25 additional service agents being added to the force. They will be located at strategical points throughout the country. The estimates also provide for two additional grade 3 clerks. The position of service agent calls for much travel since he will be assigned to certain territory. The amount for travel is on a conservative estimate of $100 per month for each service agent and $150 per month for each of the two Assistants to the Director and the Assistant Director of the Bureau of Service.