APPROPRIATION BILL FOR 1946 HEARINGS BEFORE A SUBCOMMITTEE OF THE U). S. Congress. Senate, THE LIBRARY OF JUL 4 194 Copy VI SOURCE COMMITTEE ON APPROPRIATIONS UNITED STATES SENATE SEVENTY-NINTH CONGRESS FIRST SESSION ON H. R. 3368 AN ACT MAKING APPROPRIATIONS FOR WAR 73858 Printed for the use of the Committee on Appropriations UNITED STATES WASHINGTON: 1945 NATIONAL WAR AGENCIES APPROPRIATION BILL FOR 1946 82 WEDNESDAY, JUNE 13, 1945 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D. C. The subcommittee met at 10:30 a. m., Hon. Kenneth McKellar (chairman of the subcommittee) presiding. Present: Senators McKellar, Hayden, Bankhead, Overton, Bridge, Burton, Ball, and Ferguson. Also present: Senator Chavez. Senator MCKELLAR. The committee will come to order. The first matter we have for consideration this morning is the War Production Board, to be found on page 17 of the bill. All right, Mr. Krug. WAR PRODUCTION BOARD STATEMENT OF J. A. KRUG, CHAIRMAN, ACCOMPANIED BY G. LYLE BUDGET ESTIMATE AND AMOUNT ALLOWED BY HOUSE Senator BRIDGES. Before you start, Mr. Krug, would you tell us, with the permission of the chairman, what your request was of the Budget, what the Budget recommended, what the House committee recommended, and what the House finally passed? Mr. KRUG. Yes, we asked for $40,804,510. That was a revision of our previous figure for a two-front war. The Budget approved $39,148,000, and the House gave us $35,000,000. Senator MCKELLAR. Wait one moment. The Budget recommended $39,148,000. Now you asked for $40,804,510 and the Budget cut you to $39,148,000. Mr. KRUG. To $39,148,000 and the House approved a bill for $35,000,000. Senator MCKELLAR. Will you tell us how that reduction will affect your establishment? Mr. KRUG. Mr. Chairman, I have a brief statement and I will summarize it briefly. I think I can do it in just a moment. The House cut off $4,148,000 in travel, penalty mail, printing and binding, research, timber production war project, and all others. 1 2 NATIONAL WAR AGENCIES APPROPRIATION BILL, 1946 HOUSE REDUCTION IN AMOUNT FOR TRAVEL Senator MCKELLAR. Now let us take up those in order. That is, give, for instance, the amount for travel. Mr. KRUG. $456,000 for travel. Penalty mail, $43,700. The travel is the first item. Senator McKELLAR. You will have to have the mail. There is not anyway around that, so you need not worry about that. What is the next? Mr. KRUG. $456,000 for travel. Senator MCKELLAR. Could you get along with less than last year? What did you have last year? Mr. KRUG. I would like to summarize these various items for you. Senator MCKELLAR. Go ahead. Mr. KRUG. You know the situation we are in now. This war situation is developing and nobody knows how it will go. I have been over this personally and carefully. We would like to go along with what the House recommended, if we could. All of our officials down the line feel this cuts us very tight. Personally, I think we will find a way through most of these items. TIMBER PRODUCTION PROJECT I think this mail is going to be very difficult and that should be restored, but the one that has me really concerned is the timber production war project, this being the cost of a joint program we have with the Department of Agriculture for stimulating timber production and getting the maximum out in the shortest possible time. If the House cut is sustained it will mean we will have to abandon it. The amount approved by the House will carry us about 5 months since many of the men on this project have been working for some time and have accumulated annual leave. Senator HAYDEN. Timber is just as critical as it ever was. Mr. KRUG. It is more critical than ever. During the war we have suffered from a labor shortage, equipment shortage, particularly tires, and we have got to do everything we can to build lumber production up again. It is not only important in the continuing of the war, but it is also important in getting a smooth transition to civilian production. AMOUNT OF HOUSE REDUCTION IN TIMBER PRODUCTION PROJECT Senator MCKELLAR. How much did they cut? Mr. KRUG. They took $600,000 out of that budget. Senator MCKELLAR. How much did you ask for? Mr. KRUG. $1,100,000. They approved $500,000, taking $600,000 off. Now, frankly, I think if those two cuts could be restored we will find some way of living with the balance of it. I certainly have a personal appreciation of how uncertain things are and all I can do is give you my own forecast of what we can do, but I do not think those two things can be eliminated. I think they are so important we would like to have them restored. Senator MCKELLAR. That is a very reasonable statement. I wish all of our witnesses talked that way. ITEM FOR RESEARCH Senator HAYDEN. I want to ask you about the $1,000,000 for research. Are you of the opinion we are near the end of the war and you do not have to do that kind of work any more? Mr. KRUG. Frankly, we would like to do it. The House has felt, however, that it should not be further pursued at this stage of the war because it would probably contribute little to the war effort. Some of the work might be done in some other branch of the Government such as the Department of Commerce. Senator MCKELLAR. That is very sensible. Senator HAYDEN. With all the great corporations having research staffs and continuing to work on that and other important processes, I cannot make up my mind why the Government should abandon it. If the research is to be done in another place that is a different question. I think we are short-sighted when we say we know all we need to know and that we can stop all Government research. Senator BRIDGES. I agree with you we would not stop the Government research, but I think the attitude Mr. Krug has taken is very fair. Senator HAYDEN. That would not have been developed if I had not asked the question, and if you think the Department of Commerce can take this over, that is where it belongs. Senator BRIDGES. Let me ask you, to get this straight. The House appropriated $35,000,000. Mr. KRUG. That is right. TWO ITEMS REQUESTED TO BE RESTORED Senator BRIDGES. Now you are asking for the addition of two more items. To repeat, they are what? Mr. KRUG. Penalty mail, $43,700, and our timber project, $600,000. Mr. KRUG. Thank you very much, gentlemen. SATEMENT OF J. A. KRUG, CHAIRMAN, WAR PRODUCTION BOARD, TO THE SENATE APPROPRIATIONS COMMITTEE IN CONNECTION WITH 1946 BUDGET ESTIMATES The President submitted a budget to the House of Representatives for the War Production Board for fiscal year 1946 in the amount of $39,148,000. The House Appropriations Committee reported and the House passed an appropriation of $35,000,000, a reduction of $4,148,000. Specifically, the following reductions were made by the committee: |