May 2, 1960, to participate in any application proceeding arising under sections 5, 207, and 209 of the Interstate Commerce Act "upon its determination that it has information tending to put in question. the fitness of an applicant." This authorization increased the number of application proceedings in which the Bureau is participating, and it was anticipated that the Commission's action will result in a general trend toward participation by the Bureau in a substantial number of application proceedings.

In addition to these enforcement measures, the Bureau participated in a general rulemaking proceeding proposing to revise most of the provisions of section 195 of the Motor Carrier Safety Regulations.

MOBILIZATION PLANNING FOR DEFENSE

Under working agreement, the Office of Civil and Defense Mobilization transferred $20,000 to the Interstate Commerce Commission for the performance of services in connection with defense mobilization functions. Through these limited funds the Commission has (1) maintained working contact with OCDM in order to keep advised as to current actions and mobilization planning; (2) continued Commission representation on several OCDM committees and boards; (3) participated in Operation Alert exercises; (4) initiated a plan for organizing the Commission's Unit of the National Defense Executive Reserve on an effective regional basis; and (5) designated one staff member to devote full time to mobilization activities.

The Commission participated in tests of mobilization plans in three exercises sponsored by OCDM. These included Operation Alert 1959, in which selected field employees and reservists participated during the regional and national phases. The Commission was also represented at a special transportation exercise sponsored by OCDM in September. Two Commissioners and 10 employees represented the Commission at the OCDM classified location, and key field staff personnel participated at the regional sites of OCDM during Operation Alert 1960 in May 1960.

The Commission has a major role in developing proposed emergency actions relative to transportation and providing training for industry and Federal officials in connection with emergency plans. Commission representation has been maintained on five OCDM interagency committees or boards at the national level and on each of the OCDM Regional Civil and Defense Mobilization Boards. In accordance with the current concept of a possible nuclear attack, with little if any warning, an interim plan provides that selected officials and employees of the Commission will relocate at a site where there are protected facilities. The designated officials would form the nucleus of a headquarters group to assure continuity of Commission activities and would function in executive capacities in an emergency transportation agency, upon its establishment.

In developing the emergency plans, stress was placed upon the need for an adequate field organization, in being, to give guidance to the reconstruction of facilities and to insure the continued operation of surface transportation during a survival period. Delegations of au

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thority to regional officials and several standby emergency transport orders have been prepared.

Progress has been made on a plan to organize the Commission's executive reservists into strong regional units. The 86 members of the Commission's Unit have been requested to report, in emergencies, to regional relocation sites to serve with designated regional officials of the Commission in their emergency assignments. Senior reservists are being designated to function as leaders for the transportation modes (rail, motor, and inland water), in each of the OCDM regional areas. Sixteen senior executive reservists were nominated for rail transportation.

The extent to which mobilization readiness measures of the Commission and the domestic surface transportation industry can be continued is dependent upon the allocation of funds and designation of program priorities, by OCDM.

MANAGEMENT ACTIVITIES

Several reorganizations during the year brought about general improvement in supervision and realignment of technical functions. A new Section of Investigations was created in the Bureau of Inquiry and Compliance to relieve the bureau director of line supervision of special agents. New Sections of Hearings were established in the Bureau of Operating Rights, the Bureau of Finance, and the Bureau of Rates and Practices to consolidate the hearing and related functions of the hearing examiners assigned to the respective bureaus. Financial analysis functions of the Bureau of Finance and the Bureau of Accounts were combined in a newly organized Section of Loans and Financial Analysis under the Bureau of Finance, and various management functions were reassigned among the sections in the Office of the Managing Director to increase management efficiency.

There was also a further refinement of the mechanical payroll system. Procedures were installed to balance time and attendance. records against payroll control totals. On April 1, 1960, a revised examiner work-reporting system was installed to make possible the development of examiner staffing ratios as a means of improving controls over workloads. A revised electronic computer system was installed during July 1959, featuring a card punch coupled to a mechanical posting machine, which allows a speedup of approximately 8 days in completing monthly financial statements.

Significant progress also was made in employment planning, training, recruiting, and employee relations. A new overall training program, developed in February 1960, places greater emphasis on training in supervision, in technical skills, in reading and writing improvement, and orientation of new employees. This program was intensified in conjunction with our recruitment efforts to fill vacancies created by the retirement of a large number of Commission employees. Personnel management surveys were accelerated in most of the bureaus and offices to identify approaches by which staffing needs may best be met in order more effectively to exercise the responsibilities of the Commission. Informational pamphlets and lectures were given to employees to acquaint them with promotional, pay, and health programs. A study also was made of attorney positions in the Commission in connection with the development and issuance of new classification standards issued by the Civil Service Commission.

Further efforts were made to reduce the time required to process proceedings by improved operations related to the typing, reproduc

tion, and service of Commission reports, orders, notices, certificates, and permits. The service of the bulk of Commission reports, certificates and permits (some 6,000 items) were drawn into a closely controlled time schedule designed and operated so as to insure completion of typing, reproducing, and mailing within 3 workdays.

Through records disposition, supply management, and space management activites 4,090 square feet of building space was converted to office use. Such space has an annual recurring value estimated at $18,000. Through participation in GSA's excess personnel property program, 1,416 items of furniture and equipment valued in excess of $52,000 were acquired and converted to Commission use.

A files handbook outlining a subject-numeric filing system was issued as an aid to recordkeeping. A review of public reporting requirements also was begun. Changes in reporting frequency eliminated the filing of some 11,000 report forms each year by the railroads, and similar reductions in reporting requirements were made for some 16,000 small motor carriers.

APPROPRIATIONS AND EMPLOYMENT

The following statement shows average employment and total appropriations for the fiscal year 1940 to 1961 for activities included under the current appropriation title "Salaries and Expenses."

Does not include estimated cost of $1,313,700 for pay increase under Public Law 86-568. Includes $662,375 for cost of pay increase under Public Law 85-462.

2 Estimated.

The appropriation of $19,650,000 for the fiscal year beginning July 1, 1959, represented an increase of $902,200 over the appropriation for the previous fiscal year.

This increase covered increased operational costs, annualization of positions provided as a result of the Transportation Act of 1958, and 60 additional positions. The additional positions were provided primarily to assist in handling the increased workload in formal casework involving motor carriers, strengthen enforcement activities, develop essential economic and current cost data, and augment the staff engaged in handling protested rate adjustments.