Will you give us a statement on this item?

Mr. DEMARAY. Mr. Chairman, the expenditure program for 1943 and the proposed estimates for 1944 have been changed somewhat from the presentation last year, due to two facts: With the widening of Independence Avenue west from Fourteenth Street, the Executive Mansion greenhouses, which were west of the Bureau of Engraving and Printing, have been demolished as of July 1, and there has been an addition to the White House through the construction of a new building on the east wing. The appropriation estimate shown for 1943, compared to the expenditure program, shows that there have been savings in the amount of $5,360, which have been compensated by increases of $18,483, which includes $13,123 of the special fund of $50,000 carried over from 1942 for expenditure this year. So, on that basis, to arrive at a base for 1944, we eliminate nonrecurring items of $4,500 for temporary employees and for greenhouse supplies. That really should have been "Fuel for greenhouses." That was the item eliminated. Then $4,500 is set up in a new recurring item for flowers and florist's supplies. It is the present practice to buy flowers from commercial greenhouses, instead of growing them. The other increases amount to $5,930, and provide $2,040 for administrative promotions, $2,000 for electricity needed at the new office building on the east wing, and $1,890 for miscellaneous supplies and repairs, making the estimate for 1944, $151,500.

JUSTIFICATION OF ESTIMATES

Mr. WOODRUM. You may insert this justification of the estimate in the record.

Deduct nonrecurring and other items not required in 1944:

$145, 570

145, 570

1. An increase of $2,040 is requested to provide administrative promotions for certain deserving employees. The employees covered by this appropriation are not subject to the Uniform Within Grade Salary Advancement Act of August 1, 1941, or the amended Classification Act, approved August 1, 1942.

2. An increase of $2,000 is requested to provide additional funds for an increase in the consumption of electric energy, and to provide electricity for the new east wing.

3. An increase of $1,890 is requested to provide funds for the increased cost of supplies and materials, and for the recent addition of the east wing of the Mansion. 4. Due to demolition of Executive Mansion greenhouses, an increase of $4,500 is requested for the purchase of flowers and florist's supplies.

GENERAL JUSTIFICATION

The work under this appropriation consists of maintaining the Executive Mansion and grounds. Following the project estimate sheet, the items by activities are explained as follows:

1. The personnel is divided into two classes according to assignments. The sum of $12,056 is estimated for temporary employees for social functions and other work of a temporary character.

2. The sum of $7,500 is allotted for flowers, floral and horticultural supplies and materials. This amount is needed for the purchase of flowers, florist's supplies, grass seed, shrubs, and other items needed for the maintenance of the White House and White House grounds.

3. The amount allotted for telephone, electricity, and laundry compares favorably with the average annual expenditures for these purposes, and includes the recent addition of the east wing.

4. The amount estimated for equipment is in line with previous expenditures for this purpose.

5. This item is to provide for miscellaneous purchases and repairs in connection with the operation of the Mansion, such as the purchase of soaps, cleaning materials, hardware, gasoline, oil, etc., and repairs not usually performed by regular employees.

Mr. WOODRUM. Are there any questions, gentlemen?

Mr. WIGGLESWORTH. Is that $1,890 for supplies and repairs also for the east wing?

Mr. DEMARAY. Mr. Crim, the chief usher of the White House, can answer any questions in detail.

Mr. CRIM. Yes. We have this building and it is a matter of cleaning up, buying soap and things of that nature, and other supplies, such as a few mops, carpet sweepers, and a few things like that to clean this building.

Mr. WIGGLESWORTH. I did not understand your explanation of the item of flowers and florist's supplies, $4,500.

Mr. CRIM. We used to grow the flowers, sir; now we have no greenhouse and have to purchase them, and we will still have to have grass seed for those 16 acres of ground, shrubs, trees, and things of that

nature.

Mr. WIGGLESWORTH. Have you any idea what it costs to grow your own, compared to the present practice?

Mr. DEMARAY. It costs considerably more than this, because part of the expenses of the operation of the greenhouses was borne out of the National Capital Parks appropriation, under the D. C. bill, because the greenhouses, in addition to supplying flowers for the White House, provided bedding plants and annual flowering plants for use in the parks.

Mr. FITZPATRICK. So, in fact, we are saving money now by buying the flowers outside?

Mr. DEMARAY. I am sure, Congressman Fitzpatrick, that we are saving money on this item.

Mr. WOODRUM. How many offices are there in this east wing which was built? It is a two-story building, is it not?

Mr. CRIM. It is a two-story building. The first floor at the present time is being occupied as offices; but, the original intent was to have a better place to receive guests who come there to social functions, and more space and room on the first floor to check wraps and things of

that nature. We have reconverted those rooms temporarily into offices.

Mr. WOODRUM. You have put partitions in there?

Mr. CRIM. We have put plywood partitions in there.

Mr. WOODRUM. And they can be removed?

Mr. CRIM. Yes, sir; and they will be removed at the expiration of this war, or emergency.

TEMPORARY EMPLOYEES

Mr. DIRKSEN. I notice, Mr. Demaray, that in the committee print these additional positions aggregating $12,056 are marked "Temporary employees, field". Those are not field positions, are they? That is on page 10 of the committee print.

Mr. WIGGLESWORTH. The justification says those are temporary employees for social functions.

Mr. DEMARAY. We did not have it that way in our submission; we had it "Temporary employees," and someone has added the word "field."

Mr. DIRKSEN. I wondered why the Budget Bureau put that word "field" in there, because they certainly are not field employees.

Mr. DEMARAY. No; they are here in Washington. They are employed at the White House. We did not have that word in our green sheets as we submitted them.

Mr. WOODRUM. If there is nothing further, thank you, gentlemen.

MONDAY, JANUARY 11, 1943.

NATIONAL RESOURCES PLANNING BOARD

STATEMENTS OF FREDERIC A. DELANO, CHAIRMAN; CHARLES W. ELIOT, DIRECTOR; CHARLES E. MERRIAM, GEORGE F. YANTIS, HENRY S. DENNISON, AND BEARDSLEY RUML, MEMBERS AND ADVISERS

GENERAL STATEMENT

Mr. WOODRUM. Mr. Delano, we will be glad to have a general statement from you.

Mr. DELANO. Mr. Chairman, we are here this morning to present our request for operating funds for the work of the National Resources Planning Board for the next fiscal year. You have already received the justification statement, and you are, of course, aware that the President has requested an appropriation totaling $1,400,000 for our work.

Speaking for myself, I believe that the research work we have been and are engaged on is important in times like these and that the definition of war aims and the elaboration of plans for worth while undertakings in the post-war period are essentially interrelated. In the conduct of war, our national hopes and intentions, of course, play an important role, not only in the maintenance of our own morale but also in respect to the appeal made even to enemy nations. In the World War there is little doubt that Mr. Wilson's fourteen points had.

much to do with causing the enemy to lay down his arms.

I was on

the ground, you might say, in France, for 18 months and I saw that very clearly. The misfortune was that he had not succeeded in convincing his own people nor the Allied Nations of the wisdom of his plan.

Mr. Eliot, the Director of the Board, is here this morning to answer any questions you may have as to administrative matters. My colleagues and I shall be glad to do what we can to explain matters of policy which our request for funds may prompt you to ask.

Mr. WOODRUM. You want us to hear Mr. Eliot also.

Mr. DELANO. Yes.

Mr. WOODRUM. We will be glad to hear you, Mr. Eliot.

WORK OF THE BOARD

Mr. ELIOT. I have a short general statement which summarizes the matters which it seems to us should be presented to you.

Mr. WOODRUM. Yes.

Mr. ELIOT. The National Resources Planning Board bases its request for funds for the next year on the need for the preparation now of plans not only for winning the war but also for winning the peace. Our organization is engaged in various aspects of wartime planning in cooperation with a great many Federal and State agencies, as is shown in the justification which we previously submitted. At the request of the President and in the terms of the Federal Employment Stabilization Act, we are primarily engaged, however, in post-war planning. The problems which the Nation will face at the end of hostilities loom now as difficult and as critical as those which faced the Nation in preparation for national defense against foreign armies and navies.

As a part of the Executive Office of the President, the Board is a staff agency and not an operating agency. That is the same distinction that is made between the Army General Staff and the line commands. It is our job to make proposals or plans for the elected representatives of the people to use or modify as they may consider appropriate. In other words, the Board serves as a general staff in anticipating the kinds of emergencies and problems which we may face and suggesting ways of handling such situations. Right now our immediate responsibility under the President's directive is to correlate post-war plans.

The Board has organized this work in two ways, both of which we would continue and expand under the appropriation requested for 1944.

First, we are making what we call functional studies, chiefly here in Washington, and in close collaboration with other agencies of Government and with private agencies like the Committee for Economic Development and the National Planning Association. These functional plans deal with the demobilization of military and civilian personnel, the conversion of industrial plants and facilities to peacetime use, a shelf of large-scale developmental projects which might be undertaken by private enterprise or with various kinds of public assistance-a whole series of problems concerning the stabilization of employment and the development of an expanding economy. These problems are going to be difficult to deal with, both in the transition period immediately following cessation of hostilities and also in the longer reconstruction period after the war.

The second group of activities we call area planning projects, assisting communities or groups of communities to make plans now for the adjustment which faces their State or locality at the end of the war. These projects are undertaken with local sponsorship, and our part is to provide technical consulting assistance. We believe that many more of these projects should be undertaken during the coming year than we have thus far been able to finance in order that these communities can make their own plans for their own future.

In one sense the appropriation for planning might be regarded as a kind of insurance. The studies and plans prepared by the Army General Staff in peacetime were provisions against contingencies we all hoped would never arise. Like those plans, some of the postwar plans which the Board prepares may never have to be used because the problem may develop quite differently from what we now may fear.

It is, of course, a matter of judgment as to the degree of responsibility which the Federal Government should assume for preparations to meet what more and more of our people seem to feel will be a critical transition from war to peace. The National Resources Planning Board believes that adequate provision should be made for the consideration now of these possibilities so that the President and the Congress will not be suddenly faced with a situation without any background of data, plans, or proposa's ready for action.

It is in that spirit that we have developed our justification and the outline of the kinds of work which we would expect to do under the appropriation requested by the President. We would hope to continue the Board's policy of decentralized planning, with the participation in plan-making of State, local, and private groups and citizens; and, of course, in harmony with whatever committees of the Congress may be working in the, same fields.

NATURE OF SERVICES RENDERED BY NATIONAL RESOURCES PLANNING

BOARD

As is shown in the justification previously sent to your committee, the work of the Board results in various services to the President, the Congress, the Budget, war agencies, industry, and business; to States and localities and thus to your and our constituents. We have brought here this morning some examples or evidences of these services.

Here for instance, is a copy of a secret and confidential report to the President on the development and location of new industrial facilities for the war effort. It consists of a series of maps showing the location of new industrial plants which have been added to our industrial facilities, by totals and by industries.

Mr. FITZPATRICK. Is this for the whole country?

Mr. ELIOT. All over the country.

Mr. FITZPATRICK. All over the country?

Mr. ELIOT. Yes. We have been making reports like this to the President on industrial and on other construction programs at periodic intervals for the last 2 years at his request.

This same document, and I must again stress its highly secret character, also illustrates a second kind of service which we have been rendering to the war agencies. The War Production Board, the Army, and Navy have referred to our Industrial Section almost every one of these expansions of industrial plant, and Mr. Donald Nelson