MONDAY, JANUARY 31, 1938.

DIVISION OF INVESTIGATIONS

STATEMENTS OF BRADLEY B. SMITH, DIRECTOR OF INVESTIGATIONS, AND D. H. ROSIER, JR., ASSISTANT DIRECTOR

Mr. SCRUGHAM. Mr. Smith, you have an appropriation of $436,100 for 1938, and the Budget has given you an allowance of $442,320 for 1939 for your work. Will you give a brief statement covering it?

JUSTIFICATIONS OF ESTIMATES FOR FISCAL YEAR 1939

Mr. SMITH. Yes, I will. Do you want me to read this statement or put it in the record?

Mr. SCRUGHAM. You can put it in the record.

Mr. SMITH. The following statement is submitted in justification of the increase.

This appropriation is required to conduct the regular investigative work of the Division of Investigations.

Since the formation of the Division of Investigations, there has been a steady and constant increase in the work to be accomplished. For example, on June 30, 1936, there were 7,295 cases pending; 10,492 cases were received for investigation during the fiscal year 1937; 7,890 cases were investigated and closed during the year, and yet, 9,897 cases were pending as of June 30, 1937. Therefore, although approximately 600 more cases were closed than were pending at the beginning of the year, the increase in pending cases was 2,602. It is impossible to handle the work, much of which provides revenue to the United States, with the existing force.

The principal reason for the enormous increase in the case load is the act of June 28, 1934, commonly known as the Taylor Grazing Act, the amendment thereto by the act of June 26, 1936, and the departmental regulations issued pursuant thereto. Section 15 of the act provides for the leasing of public lands for grazing purposes. Under departmental regulations, the Division of Investigations is required to make field investigations of applications for leases of disconnected and isolated tracts of public lands, located outside the grazing districts which are administered by the Division of Grazing. Investigation is necessary to determine preference rights, rental value of land, the stock-carrying capacity, and the settlement or adjustment of any conflicts as to priority of use among various applicants. As a result of these investigations, the United States will receive substantial revenue as rental for the lands mentioned.

Under section 8 of the above-quoted act, which provides for the exchange of State-owned lands for public lands, as well as for the exchange of privately-owned lands, it is necessary that this Division determine whether the lands are of equal value, and where so, that they are based upon equal acreage.

There has been a marked increase in the number of homestead entries to be investigated, due principally to the inauguration of the regulation of grazing on the public lands and the withdrawal of all unappropriated and vacant lands from entry. In the past the public generally was inclined to be passive in regard to alleged fraudulent entries. However, since the grazing regulations have been put into effect, potential users of public lands have made numerous complaints regarding such fraudulent entries. When a protest is filed, the law provides a

limited time in which to submit proof, based upon an investigation by this Division, otherwise patent will automatically issue. The withdrawal of public lands by the Executive order of November 26, 1934, has made it necessary to conduct field investigations relative to alleged settlements prior to withdrawal, by virtue of which exceptions from effect of withdrawal are claimed.

There has been an increase in the number of timber trespass cases, and with the necessity of protecting watersheds and grazing lands, particularly in grazing districts, for the proper conservation of grazing resources, it is extremely important that this work be given all possible attention. It has been necessary to conduct a large number of investigations for the Division of Grazing, both as to applications for grazing permits and as to grazing trespasses. For proper grazing administration it is necessary that investigations as to grazing trespasses be made promptly, as, unless steps are taken to stop a trespass without delay, the enforcement of the grazing regulations will be greatly hindered.

The large and extensive projects under the Bureau of Reclamation have also resulted in increased demands on the Division, especially with respect to obtaining data and information necessary to make appraisals of lands to be taken over by the United States.

The establishment of a headquarters field unit has been found necessary to handle special investigations directed by the Secretary, and other routine or regular investigations to be made in the eastern portion of the country. An increased burden has been placed upon the Division by reason of the expanding activities of the National Park Service with regard to recreational demonstration projects and State park projects. The work which this unit is required to perform was formerly accomplished to a great extent by employees of the Division of Investigations, Public Works Administration, but since the separation of the two Divisions in July of 1936, the responsibility for this work falls entirely upon the Division of Investigations, Interior Department.

The limitation of $34,000 for personal services in the District of Columbia provides for additional personnel in central office.

The increase requested for personal services, departmental, for 1939 is needed for the following:

Senior stenographer at $1,620.—This position is required to provide a stenographer for the reviewer who is now utilizing the services of a stenographer on temporary employment.

Two junior stenographers at $1,440 each.-One of these employees is needed to assist the senior clerk of the Division, in taking dictation and to be available as a replacement for the other secretarial and stenographic personnel when absent due to illness, vacation, and otherwise. The other is needed to meet the additional stenographic requirements of the reviewer and will be available to meet the additional stenographic needs of the Director and Assistant Director.

Assistant file clerk at $1,260.-There are at present two assistant file clerks being paid from emergency funds. It is believed, however, that by the end of the present fiscal year the filing will be on an approximately current basis and that the file clerk and one assistant can then keep abreast of the work. Approximately 8,000 cases per year pass through the file room, and it will be impossible for the file clerk alone to prepare the necessary cross-references and maintain card indexes and other necessary data, as well as take care of the actual filing.

Temporary employees at $460.-This amount is required to provide for employment of temporary personnel throughout the year, such as stenographers, clerks, file clerks, and messenger to handle the seasonal rush of work. As a result of the increased activity on the part of the field forces during the open summer season the number of reports being routed through the central office increases materially. Mr. SCRUGHAM. You might justify whatever increase is shown there.

INCREASE FOR PERSONAL SERVICES

Mr. SMITH. The increase recommended by the Bureau of the Budget is $6,220 and that increase is requested for personal services, departmental, for 1939, consisting of one senior stenographer at $1,620 per annum, two junior stenographers at $1,440 per annum each, and an assistant file clerk at $1,260 per annum, and the balance of $460 to be used for temporary stenographic services.

NUMBER AND STATUS OF FENDING CASES

Mr. SCRUGHAM. I take it there must have been a steady increase in the work to warrant such an increase in the force. Briefly, give the number of cases which have been passed and the number that you have pending at the present time.

Mr. SMITH. At the present time, we have pending for investigation 9,455 cases; or, rather, we had this number at the close of December 31, 1937.

Mr. SCRUGHAM. How many cases have you closed, or completed, during the past year?

Mr. SMITH. There were 7,890 cases investigated and closed during the year.

Mr. SCRUGHAM. And you have pending something over 9,000 at this time?

Mr. SMITH. We have pending 9,455 cases at the present time. Mr. SCRUGHAM. What force of people do you have, altogether? Mr. SMITH. We have 5 special agents in charge; 75 special agents; 23 clerks in the field, with one vacancy at Albuquerque, N. Mex., and there is 1 temporary employee in Washington, D. C.

Mr. SCRUGHAM. This additional force you have in Washington, D. C., I take it, is the reason for the increase in the District of Columbia allowance?

Mr. SMITH. Yes.

Mr. SCRUGHAM. And due to the fact you have more clerical help in handling the number of cases you have pending?

Mr. SMITH. I think, if you will permit me to say this, that as a result of the work under section 15 of the Taylor Grazing Act, during the months of September, October, November, and December 1937, we presented reports on 2,572 cases. That means the homestead work and some of our other activities have had to await investigation. We have not had the field force to carry on those investigations, because we endeavored to concentrate on section 15 cases.

Mr. SCRUGHAM. Otherwise, you have the same organization, the same set-up, as you have had in the past few years?

Mr. SMITH. Yes, sir, we have.

Mr. SCRUGHAM. Are there any questions?

NATURE OF PENDING CASES

Mr. LEAVY. These 9,455 cases that are pending. What is the nature of them, generally?

Mr. SMITH. I have a statement here that I would be glad to read, or to put in the record.

Mr. LEAVY. I think I will just have you put it in the record.
Mr. SMITH. Yes.