MESSAGE FROM THE HOUSE

A message from the House of Representatives, by Mr. Maurer, its reading clerk, announced that the House had agreed to the amendment of the Senate to each of the following bills of the House:

H. R. 5158. An act for the relief of Sgt. Welch Sanders; and

H. R. 5433. An act for the relief of the estates of Opal Perkins, and Kenneth Ross, deceased.

The message also announced that the House had agreed to the report of the committee of conference on the disagreeing votes of the two Houses on the amendment of the House to the bill (S. 3378) to revise the Organic Act of the Virgin Islands of the United States.

The message further announced that the House had disagreed to the amendments of the Senate to the bill (H. R. 6725) to reenact the authority for the appointment of certain officers of the Regular Navy and Marine Corps; asked a conference with the Senate on the disagreeing votes of the two Houses thereon, and that Mr. ARENDS, Mr. SHAFER, Mr. JOHNSON of California, Mr. VAN ZANDT, Mr. VINSON, Mr. KILDAY, and Mr. RIVERS were appointed managers on the part of the House at the conference.

The message also announced that the House had disagreed to the amendments of the Senate to the bill (H. R. 9242) to authorize certain construction at military and naval installations and for the Alaska Communications System, and for other purposes; asked a conference with the Senate on the disagreeing votes of the two Houses thereon, and that Mr. ARENDS, Mr. SHAFER, Mr. JOHNSON of California, Mr. VAN ZANDT, Mr. VINSON, Mr. KILDAY, and Mr. RIVERS were appointed managers on the part of the House at the conference.

The message further announced the House had disagreed to the amendment of the Senate to the joint resolution (H. J. Res. 534) to authorize the Secretary of Commerce to sell certain warbuilt passenger-cargo vessels, and for other purposes; asked a conference with the Senate on the disagreeing votes of the two Houses thereon, and that Mr. TOLLEFSON, Mr. ALLEN of California, Mr. RAY, Mr. BONNER, and Mr. SHELLEY were appointed managers on the part of the House at the conference.

ENROLLED BILLS AND JOINT

RESOLUTION SIGNED

The message also announced that the Speaker had affixed his signature to the following enrolled bills and joint reso

lution, and they were signed by the President pro tempore:

H. R. 733. An act for the relief of Hildegard H. Nelson;

H. R. 734. An act for the relief of Mihai Handrabura;

H. R. 944. An act for the relief of Mr. and Mrs. Zygmaunt Sowinski;

H. R. 1115. An act for the relief of Mrs. Suhula Adata;

H. R. 1762. An act for the relief of Sugako Nakai;

H. R. 2899. An act for the relief of Igor Shwabe;

H. R. 3333. An act for the relief of Julia N. Emmanuel;

H. R. 3624. An act for the relief of Peter M. Leaming;

H. R. 4496. An act to authorize and direct the conveyance of certain lands to the Board of Education of Prince Georges County, Upper Marlboro, Md., so as to permit the construction of public educational facilities urgently required as a result of increased defense and other essential Federal activities in the District of Columbia and its environs;

H. R. 6342. An act to amend the Public Buildings Act of 1949 to authorize the Administrator of General Services to acquire title to real property and to provide for the construction of certain public buildings thereon by executing purchase contracts; to extend the authority of the Postmaster General to lease quarters for postoffice purposes; and for other purposes;

H. R. 6422. An act to authorize the Secretary of the Army to convey to the Government's grantors certain lands erroneously conveyed by them to the United States;

H. R. 6650. An act for the relief of Joseph Gerny;

H. R. 6998. An act for the relief of Erna White;

H. R. 7125. An act to amend the Federal Food, Drug, and Cosmetic Act with respect to residues of pesticide chemicals in or on raw agricultural commodities;

H. R. 7132. An act to exempt from taxation certain property of the Veterans of Foreign Wars of the United States in the District of Columbia;

H. R. 7158. An act authorizing the United States Government to reconvey certain lands to S. J. Carver;

H. R. 7468. An act to amend certain provisions of part II of the Interstate Commerce Act so as to authorize regulation, for purposes of safety and protection of the public, of certain motor-carrier transportation between points in foreign countries, insofar as such transportation takes place within the United States;

H. R. 7500. An act for the relief of Kurt Forsell;

H. R. 7802. An act for the relief of Hanna Werner and her child, Hanna Elizabeth Werner;

H. R. 8247. An act to provide for the restoration and maintenance of the United States ship Constitution and to authorize the disposition of the United States ship Constellation, United States ship Hartford, United States ship Olympia, and United States ship Oregon, and for other purposes;

H. R. 8692. An act to permit the payment of certain trust accounts to the beneficiary on the death of the trustees by savings and loan, and similar associations in the District of Columbia;

H. R. 8973. An act to amend paragraph 31 of section 7 of the act entitled "An act making appropriations to provide for the government of the District of Columbia for the fiscal year ending June 30, 1903, and for other purposes," approved July 1, 1902, as amended;

H. R. 8974. An act to permit investment of funds of insurance companies organized within the District of Columbia in obliga

tions of the International Bank for Reconstruction and Development;

H. R. 9143. An act to repeal the provisions of section 16 of the Federal Reserve Act which prohibits a Federal Reserve bank from paying out notes of another Federal Reserve bank;

H. R. 9561. An act to correct typographical errors in Public Law 368, 83d Congress; and

H. J. Res. 459. Joint resolution to designate the lake to be formed by the completion of the Texarkana Dam and Reservoir on Sulphur River, about 9 miles southwest from Texarkana, Tex., as Lake Texarkana.

OUTSTANDING INVESTMENT OPPORTUNITY FOR THE UNITED STATES

Mr. WATKINS. Mr. President, the Congress recently has been asked to appropriate some $32 billion to aid deserving friendly countries in various parts of the world.

Today, I would like to direct the attention of this body to a meritorious project in an area not embraced in this projected program of international aid to social and economic development. In my opinion, it is eminently deserving of support by the Government, and I hope that this body will act favorably upon it when the project comes before it in the near future.

The area involved is semi-arid, with many sections of it receiving less rainfall in a whole year than this eastern seaboard area receives in a couple of heavy storms. Agriculture is confined largely to irrigated farming, which provides 71 percent of the area's total agricultural income, and to livestock raising. The area is rich in natural resources, and many processing and fabricating industries have recently been established there to supplement the older extractive industries. Residents of the area are frugal and hard-working, and the local governments are eminently sound and financially solvent. An insular location, behind encircling mountains, gives the area a high degree of geographic security in the event of a major international disturbance.

The growth and development of this potentially rich area is limited by the availability of one great natural resource-water. It needs water not only for irrigation, but also for power, for municipal purposes, and for industrial use. This area already has invested heavily in water utilization facilities. Small reservoirs dot the watersheds accessible to communities and valley farmlands, and canals lace across valley floors, some of them tying into tunnels drilled through mountains.

However, the major source of water in this 110,000-square-mile area is a large river system, which flows through deeply eroded canyons some distance from population and agricultural centers. Residents of the area have a clear proprietary interest to half the water in that river-around 7,500,000 acre-feet annually. Yet at the present time, the area is able to put to use only about one-third of that assigned water supply, in spite of its heavy local investment in water utilization facilities.

To utilize additional water, the area is obliged to build some tremendous storage dams on the main stem of that river and supplement them with smaller reservoirs and diversion works on the high watersheds.

The project plan was conceived by some of the world's foremost water re

source engineers, who have been engaged in engineering investigations in this area for a half century. These experts have studied more than 250 reservoir sites, and produced reports on all phases of an overall program to develop the water resources of the area. Probably no river system in the world has had such a thorough-going engineering study by internationally recognized experts.

Unlike some of our foreign neighbors, these people do not expect Uncle Sam to finance this development program and pick up the check. They are injecting a new, independent note in aid programs. They ask assistance only in the financing and have very adequate plans to repay Uncle Sam in full before the project facilities have been in use slightly more than half their estimated life.

This repayment program is made possible by utilizing the large water storage dams for the production not only of water for irrigation, but for hydropower. The power generated is required to meet population and industrial growth in the area, and, by its use, the people who will benefit from the water also will pay for both the water and the power. Furthermore, engineering estimates show that after the project is completely paid for, the facilities, which will remain in the ownership of the Federal Government, will be capable of producing a revenue of 15 to 20 million dollars a year for many years.

This land of which I speak-an area roughly the size of New York, Pennsylvania, and New Jersey combined-is not in some faroff place, subject to revolutionary strife or subversion by enemies of this country. It is here in the United States. The project described is—if you have not already guessed it-the upper Colorado River storage project.

In addition to these attractive financial aspects, I must point out that the project itself would produce billions of dollars in new property and wealth, most of which would be subject to Federal taxes. This project therefore, is a real investment in national developmentone of the soundest that any of us will see during our terms in the Senate.

This project is currently under review in the Senate Committee on Interior and Insular Affairs. It also has been subjected to 2 weeks of hearings by the com

Mr. SALTONSTALL. What is the is the business now pending before the Senate?

The PRESIDING OFFICER. House bill 7664, to provide for the development of the Priest Rapids site.

Mr. SALTONSTALL. I understand there is now ready for action by the Senate a conference report, as to which all parties are in agreement. The majority leader with the approval of the minority leader, is desirous of having the report submitted and considered at this time. The distinguished junior Senator from California [Mr. KUCHEL] is in charge of the report.

Mr. KUCHEL. Mr. President, I submit a report of the committee of conference on the disagreeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 5731) to authorize the Secretary of the Interior to construct, operate, and maintain certain facilities to provide water for irrigation and domestic use from the Santa Margarita River, California, and the joint utilization of a dam and reservoir and other waterwork facilities by the Department of the Interior and the Department of the Navy, and for other purposes.

I ask unanimous consent for the present consideration of the report.

The PRESIDING OFFICER. (Mr. CRIPPA in the chair). The report will be read for the information of the Senate.

to the same with an amendment as follows: In lieu of the language inserted by the Senate amendment insert the following:

"That the Secretary of the Interior, acting pursuant to the Federal reclamation laws (Act of June 17, 1902, 32 Stat. 388), and Acts amendatory thereof or supplementary thereto, as far as those laws are not inconsistent with the provisions of this Act, is authorized to construct, operate, and maintain such dam and other facilities as may be required to make available for irrigation, municipal, domestic, military, and other uses the yield of the reservoir created by De Luz Dam to be located immediately below the confluence of De Luz Creek with Santa Margarita River on Camp Joseph H. Pendleton, San Diego, California, for the Fallbrook Public Utility District and such other users as herein provided. The authority of the Secretary to construct said facilities is contingent upon a determination by him that

"(a) the Fallbrook Public Utility District shall have entered into a contract under subsection (d), section 9, of the Reclamation Project Act of 1939 undertaking to repay to the United States of America appropriate portions, as determined by the Secretary, of the actual costs of constructing, operating, and maintaining such dam and other facilities, together with interest as hereinafter provided; and under no circumstances shall the Department of the Navy be subject to any charges or costs except on the basis of its proportional use, if any, of such dam and other facilities, as determined pursuant to section 2 (b) of this Act;

"(b) the officer or agency of the State of mits for the appropriation of water shall California authorized by law to grant perhave granted such permits to the United States of America and shall have granted permits to the Fallbrook Public Utility District for rights to the use of water for storage and diversion as provided in this Act; including, as to the Fallbrook Public Utility District, approval of all requisite changes in

points of diversion and storage, and purposes

and places of use;

"(c) The Fallbrook Public Utility District shall have agreed that it will not assert against the United States of America any

prior appropriative right it may have to water in excess of that quantity deliverable to it under the provisions of this Act, and will share in the use of the waters impounded by the De Luz Dam on the basis of equal priority and in accordance with the ratio prescribed in section 3 (a) of this Act; this agreement and waiver and the changes in points of diversion and storage, required by the preceding paragraph, shall become effective and binding only when the dam and other facilities herein provided for shall have been completed and put into operation: Provided, however, That the enactment of this legislation does not constitute a

The committee of conference on the disa

greeing votes of the two Houses on the amendments of the Senate to the bill (H. R. 5731) to authorize the Secretary of the Interior to construct, operate, and maintain certain facilities to provide water for irrigation and domestic use from the Santa Margarita River, California, and the joint utilization of a dam and reservoir and other waterwork facilities by the Department of the and for other purposes, having met, after Interior and the Department of the Navy,

full and free conference, have agreed to recommend and do recommend to their respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate numbered 1.

Amendment numbered 2: That the House recede from its disagreement to the amendment of the Senate numbered 2, and agree

Fallbrook Public Utility District has any rights to the use of water in the Santa Margarita River, which rights, if any, exist only by virtue of the laws of the State of California; and

"(d) the De Luz Dam and other facilities herein authorized have economic and engineering feasibility.

"SEC. 2. (a) In the interest of comity between the United States of America and the State of California and consistent with the historic policy of the United States of America of Federal noninterference with State water law, the Secretary of the Navy shall promptly comply with the procedures for the acquisition of appropriative water rights required under the laws of the State of California as soon as he is satisfied, with the advice of the Attorney General of the United States, that such action will not adversely affect the rights of the United States of America under the laws of the State of California.

"(b) The Department of the Navy will not be subject to any charges or costs in connection with the De Luz Dam or its facilities, except upon completion and then shall be charged in reasonable proportion to its use of the facilities under regulations agreed upon by the Secretary of the Navy and Secretary of the Interior.

"SEC. (3) (a) The operation of the dam and other facilities herein provided shall be by the Secretary of the Interior, under regulations satisfactory to the Secretary of the Navy with respect to the Navy's share of the impounded water and National Security. In that operation, 60 per centum of the water impounded by De Luz Dam is hereby allotted to the Secretary of the Navy, 40 per centum of the water impounded by De Luz Dam is hereby allotted to the Fallbrook Public Utility District. The Department of the Navy and the Fallbrook Public Utility District will participate in the water impounded by De Luz Dam on the basis of equal priority and in accordance with the ratio prescribed in the preceding sentence: Provided, however, That at any time the Secretary of the Navy certifies that he does not have immediate need for any portion of the aforesaid 60 per centum of the water, the official agreed upon to administer the dam and facilities is empowered to enter into temporary contracts for the delivery of water subject, however, to the first right of the Secretary of the Navy to demand that water without charge and without obligation on the part of the United States of America upon 30 day's notice as set forth in any such contract with the approval of the Secretary of the Navy: Provided, further, That all moneys paid in to the United States of America under any such contract shall be covered into the general fund of the Treasury, and shall not be applied against the indebtedness of the Fallbrook Public Utility District to the United States of America. In making any such temporary contracts for water not immediately needed by the Navy, the first right thereto, if otherwise consistent with the laws of the State of California, shall be given the Fallbrook Public Utility District. "(b) The general repayment obligation of the Fallbrook Public Utility District (which shall include interest on the unamortized balance of construction costs of the project allocated to municipal and domestic waters at a rate equal to the average rate, which rate shall be certified by the Secretary of the Treasury, on the long-term loans of the United States outstanding on the date of this Act) to be undertaken pursuant to section 1 of this Act shall be spread in annual installments, which need not be equal, over a period of not more than 56 years, exclusive of a development period, or as near thereto as is consistent with the operation of a formula, mutually agreeable to the parties, under which the payments are varied in the light of factors pertinent to the irrigators' ability to pay. The development period shall begin in the year in which water for use by the district is first available, as announced by the Secretary, and shall end in the year in which the conservation storage space in De Luz Reservoir first fills but shall, in no event, exceed 17 years. During the development period water shall be delivered to the district under annual water rental notices at rates fixed by the Secretary and payable in advance, and any moneys collected in excess of operation and maintenace costs shall be credited to repayment of the capital costs chargeable to the district and the repayment period fixed herein shall be reduced proportionately. The Secretary may transfer to the district the care, operation, and maintenance of the facilities constructed by him under conditions satisfactory to him and to the district and, with respect to such of the facilities as are located within the boundaries of Camp Pendleton, satisfactory also to the Secretary of the Navy.

"(c) For the purposes of this Act the basis, measure, and limit of all rights of the United States of America pertaining to the use of water shall be the laws of the State of California: Provided, That nothing in this Act shall be construed as a grant or a relinquishment by the United States of America of any of its rights to the use of water which it acquired according to the laws of the State of California either as a result of its acquisition of the lands comprising Camp Joseph H. Pendleton and adjoining naval installations, and the rights to the use of water as a part of said acquisition, or through actual use or prescription or both since the date of that acquisition, if any, or to create any legal obligation to store any water in De Luz Reservoir, to the use of which it has such rights, or to require the division under this Act of water to which it has such rights.

"(d) Unless otherwise agreed by the Secretary of the Navy, De Luz Dam as herein provided shall at all times be operated in a manner which will permit the free passage

of all of the water to the use of which the United States of America is entitled accord

ing to the laws of the State of California either as a result of its acquisition of the lands comprising Camp Joseph H. Pendleton and adjoining naval installations, and the rights to the use of water as a part of said acquisitions, or through actual use or prescription or both since the date of that acquisition, if any, and will not be administered or operated in any way which will impair or deplete the quantities of water to the use of which the United States of America would be entitled under the laws of the State of California had that structure not been built.

"SEC. 4. After the construction of the De Luz Dam, the official operating the reservoir shall deliver water to the Fallbrook Public Utility District, pursuant to regulations isUtility District, pursuant to regulations issued by the Secretary of the Interior, as follows:

"(1) One thousand eight hundred acrefeet in any year until the reservoir attains an active content of sixty-three thousand acre-feet;

"(2) Not in excess of four thousand eight hundred acre-feet in any year after the reservoir attains an active content of sixtythree thousand acre-feet and until said reservoir attains an active content of ninetyeight thousand acre-feet; and

"(3) Not in excess of eight thousand acrefeet in any year after the reservoir attains an active content of ninety-eight thousand acre-feet and until the conservation storage

space of the reservoir has been filled.

"SEC. 5. The Secretary of the Army through the Chief of Engineers, acting in accordance with section 7 of the Flood Control Act of 1944 (58 Stat. 887) is authorized to utilize for purposes of flood control such portion of the capacity of De Luz Reservoir as may be available therefor.

"SEC. 6. There are hereby authorized to be appropriated, out of any money in the Treasury of the United States not otherwise appropriated, $22,636,000, the current estimated construction cost of the Santa Margarita River project, plus or minus such

amounts as may be indicated by the engineering cost indices for this type of construction, and, in addition thereto, such sums as may be required to operate and maintain the said project.

"SEC. 7. From time to time the Attorney General, the Secretary of the Interior, and the Secretary of the Navy shall report to the Congress concerning the conditions specified in section 1 of this Act, and the first report thereon shall be submitted to the Congress no later than one year from the date of enactment of this Act."

And the Senate agree to the same. Amend the title so as to read: "An Act to authorize the Secretary of the Interior to construct facilities to provide water for irrigation, municipal, domestic, military, and

other uses from the Santa Margarita River, California, and for other purposes."

EUGENE D. MILLIKIN,

ARTHUR V. WATKINS,

THOMAS H. KUCHEL,

JAMES E. MURRAY,

CLINTON P. ANDERSON,

Managers on the Part of the Senate. A. L. MILLER,

WESLEY A. D'EWART,

JOHN P. SAYLOR,

CLAIR ENGLE,

WAYNE N. ASPINALL,

Managers on the Part of the House.

The PRESIDING OFFICER. Is there objection to the present consideration of the report?

There being no objection, the Senate proceeded to consider the report.

Mr. KUCHEL. Mr. President, I am delighted to be able to present to the Senate the conference report on H. R. 5731 which has been agreed to unanimously by the members of the conference from the Senate and the House of Representatives. Senators may recall that this is the bill which authorizes the erection and the building of a dam at De Luz on the Santa Margarita River in California, under specific conditions.

This will bring to a happy and agreeable conclusion the long-drawn out and, at times, unfortunately violent controversy, known in my State as the Fallbrook controversy.

As the conferees were able to resolve the differences between the two Houses, I am glad to say that the bill preserves inviolate all the rights which the Government of the United States may have with respect to water in the area. At the same time the bill preserves to the citizens of my State who live in that area such rights to water as they have. Of great importance is the fact that the provisions of the conference report make crystal clear that the laws of the State of California shall determine the question of rights to water and the use of water.

On that score, I am most happy to say that in all of the deliberations which the committee of conference held, my friend, the able and distinguished junior Senator from New Mexico [Mr. ANDERSON] and I were able to come into complete agreement with respect to all questions which were raised. Therefore, I can truly say that the report represents an honorable means of legislating upon and, at long last, resolving an extremely controversial subject. controversial subject. I urge that the Senate approve and confirm the conference report.

Mr. ANDERSON. Mr. President, will the Senator from California yield?

Mr. KUCHEL. I yield to the Senator from New Mexico.

Mr. ANDERSON. I appreciate the kind words of the Senator from California. In turn, I wish to congratulate him especially upon one fact, namely, that when we entered into the final conference, every time an effort was made which, I thought, would have jeopardized the rights of the United States, he stood for those things which, it seemed to me, were fair to all parties and essential in the bill.

We did not agree upon the general premise in the beginning, but I must say

that I believe the final solution of the bill is a good one. So I am happy to have participated with the Senator from California, and other Members of Congress, in reaching the solution which has been achieved.

This was a difficult matter to resolve. There are many of us who think we must be extremely careful never to jeopardize the water rights throughout the

to the Armed Services Committee of the United States Senate, and it was in turn forwarded to the Comptroller General.

UNITED STATES MARINE BAND

In checking the procedure followed by

the United States Marine Band we found

lation with a very careful look when it involves long-time water rights.

I must say that I started with the conviction that it would not be possible to harmonize the views of the departments of the Government and my own individual views with the views of the

State of California, but I am happy to

say that that result finally was achieved. I want the Senator from California [Mr. KUCHEL] to know that his attitude in the matter was appreciated.

This is a report which the Senate can accept, and which the people of the United States can be certain adequately protects the needs of the United States, while at the same time it assures some rights to the people who felt they had very substantial rights in the area, and who wanted their rights preserved.

Mr. KUCHEL. I sincerely thank the statement, and I am deeply appreciative

of his personal comments.

The PRESIDING OFFICER (Mrs.

BOWRING in the chair). The question is on agreeing to the conference report. The report was agreed to.

REIMBURSEMENT

OF POSTMASTERS OF DISCONTINUED POST OFFICES

Mr. SALTONSTALL. Madam President, I ask unanimous consent that the unfinished business be temporarily laid aside, and that the Senate proceed to the consideration of Calendar 1758, Senate bill 3028, for the reimbursement of postmasters of discontinued post offices.

The PRESIDING OFFICER. The clerk will state the bill by title.

The LEGISLATIVE CLERK. A bill (S. 3028) to require the Postmaster General to reimburse postmasters of discontinued post offices for equipment owned by the postmaster.

The PRESIDING OFFICER. Is there objection to the unanimous-consent request of the Senator from Massachu

setts?

There being no objection, the Senate proceeded to the consideration of the bill (S. 3028) to require the Postmaster General to reimburse postmasters of discontinued post offices for equipment owned by the postmaster.

COMMERCIALIZATION OF CERTAIN MILITARY BANDS

Mr. WILLIAMS. Madam President, several months ago there came to the attention of the Senator from New Mexico [Mr. ANDERSON] and myself a situation wherein it appeared that certain of our military bands were being commercialized.

We reported this situation along with the documents supporting the allegation

for all appearances of the marine band on its annual 9-week tour.

Under this authority a contract was negotiated by Lieutenant Colonel Santelmann, leader of the band, with Mr. O. W. Trapp, 1507 M Street NW., Wash

ington, D. C., and it provided that Mr.

Trapp as the tour manager was to receive a management fee while the band was on tour of $875 per week plus travel expenses, and then upon completion of the tour Mr. Trapp was to receive onehalf of the profit left after expenses had been paid.

Lieutenant Colonel Santelmann, under the same contract, as the leader of the band, was to receive $632 per week and travel expenses plus a portion of the other half of the profit of the trip. Under the terms of the contract the re

in the bonus, as follows: 22 bandsmen at $140.25, 12 bandsmen at $148.30, 7 bandsmen at $156.40, 5 bandsmen at $172.50, 1 bandsman at $204.75, 1 bandsman at $237, 1 bandsman at $293.40.

In 1951 the payments received by Lieutenant Colonel Santelmann as band leader was for 9 weeks, at $632 per week, a total of $5,688, plus $1,018.45 representing his proportionate share of the profits, making a total of $6,706.45 for

the 9 weeks. As mentioned before, during this same 9-week period he and the other members of the band received their regular military pay and allowances.

I do not have a breakdown for the 1952 earnings; however, it should be noted that the net profit was about 20 percent higher than in 1951.

During each of the years 1951 and 1952 Mr. Trapp received as management fees for the 9-week tour a salary of $7,875. In addition, his one-half of the net profits in 1951 was $8,577.25, and in 1952, $10,732.69, bringing his total earnings for the 2 years under this arrangement to $16,452.25 and $18,607.69, respectively.

All other general expenses, including office salaries, payroll taxes, publicity, booking costs, transportation, band sal

members.

In addition the other members of the band while on tour were paid as follows:

22 bandsmen at $87 per week, 12 bandsmen at $92 per week, 7 bandsmen at $97 per week, 5 bandsmen at $107 per week, 3 soloists at $127 per week, 1 soloist at $147 per week, 1 soloist at $182 per week.

All of these payments were made each week during the 9-week tour. Transportation of the band members while on

tour, including the costs of transporting their persons and baggage from one location to another, was paid by the tour manager and deducted from the gross income of the tour; however, each band member paid out of the money allotted to him his own expenses for hotels, meals, and laundry.

All these salaries of the tour manager, the band leader, and the members of the band were paid from the income received on the tour, or from charges made to the various civic organizations before which they appeared.

In addition to these extra payments the members of the band, including the leader, continued during the actual tour to receive regular military pay and the usual allowances.

The contract as negotiated by the bandleader, Lieutenant Colonel Santelmann, and the tour manager, Mr. O. W. Trapp, provided that upon the conclusion of the tour the gross income be computed, the expenses of the tour, including the salaries referred to above, deducted, the resulting net profit distributed equally between Mr. Trapp and Lieutenant Colonel Santelmann. Lieutenant Colonel Santelmann took his proportionate share of this net profit and then distributed the balance as bonuses to each member of the band who accompanied him on the tour.

In 1951 Lieutenant Colonel Santelmann's share of this bonus was $1,018.45. Other members of the band participated

the gross income before the division of the net profits referred to above.

Thus we have the highly questionable situation where an officer of the United

States Government has been given the instructions and the authority to negotiate a contract with an outside indi

vidual wherein under the terms of that contract his own salary and the salary of the other members of the service can be greatly enhanced. This practice, if carried to an extreme, could result in a complete breakdown of the contractural responsibility of the United States Government, and it represents a condition which should be corrected immediately.

To show the details of how this arrangement was inaugurated and how it operates, I ask unanimous consent to have incorporated in the RECORD at this point a report prepared by the Comp

troller General of the United States.

There being no objection, the report was ordered to be printed in the RECORD, as follows:

MARINE CORPS BAND Information concerning the Marine Corps Band was obtained from Lt. Col. James C. Short, Office of the Commandant, United States Marine Corps, Room 2004, Navy Annex, Arlington, Va.

The Marine Corps Band is comprised of approximately 80 to 85 musicians, primarily enlisted men, with 2 or 3 officers. One of these officers is Lt. Col. William F. H. Santelmann, the leader of the band.

Lieutenant Colonel Short stated that the Marine Corps Band operates under the

authority of title 34, United States Code, said band shall not, as an individual, furnish music, or accept an engagement to furnish music, when such furnishing of music places him in competition with any civilian musician or musicians, and shall not accept or receive remuneration for furnishing music except, under special circumstances when authorized by the President (Aug. 29, 1916, ch. 417, 39 Stat. 612)."

section 702, which reads: "A member of the

Although Lieutenant Colonel Short felt that this section did not specifically state that they could accept remuneration for

tours and outside performances, he did feel that the legislative history indicated that the band could accept such remuneration. Lieutenant Colonel Short said that, in fact, this legislation was intended to remove a previously existing evil.

Lieutenant Colonel Short agreed that this was an exception to the general practice concerning service bands and, to his knowledge, no other bands could accept remuneration. He advised that each year a tour is arranged for the band. Also, all members of the band continue to receive pay and allowances during the actual tour even though the cost of the tours are at no expense to the United States and no appropriated funds are involved. All of the expenses are paid from the income received from the tour.

Lieutenant Colonel Short advised that at the present time a civilian tour director named Mr. O. W. Trapp, 1507 M Street NW., Washington, D. C., arranges the bookings 1 year in advance and has been booking the band since about 1949. The usual procedure in connection with a tour is the preparation of a letter requesting authority for the tour, outlining the various points at which the band will play. This letter is forwarded by the Secretary of the Navy to the President of the United States for his approval. When the approval is granted, which is invariable, a tour contract is negotiated between Mr. Trapp and Lieutenant Colonel Santelmann, acting as the band representative. In addition to Lieutenant Colonel Santelmann's approval, and prior to acceptance by the Marine Corps, this contract must be approved by the Commandant's Office and by the Office of the Judge Advocate General of the Navy. During the period of the tour, the band is under the control and command of Lieutenant Colonel Santelmann. Escape clauses are contained in the contract so that at any point within the course of the tour Lieutenant Colonel Santelmann could order the band back to Washington, D. C., and Mr. Trapp would have no recourse for breach of contract. Mr. Trapp is required to be bonded in a stated amount, usually $7,500, to cover the transportation of the personnel and their baggage back to Washington, D. C., in the event the tour is terminated.

After approval of the contract between Lieutenant Colonel Santelmann and Mr. Trapp, contracts are then negotiated between Mr. Trapp as tour director and supporters of various charitable and civic organizations. After arrangements have been agreed upon by Mr. Trapp and the other parties, the contracts are then submitted to Lieutenant Colonel Short and to the Commandant's Office of the Marine Corps for final acceptance. These contracts are also reviewed by the Office of Judge Advocate General of the Navy. The Commandant's Office gives the final decision for the actual itinerary of the band. In order that the majority of the areas of the United States might benefit from the band's performances, the Commandant's avoids returning to areas in which the band has played during the past several years. For this reason, it frequently happens that areas which have proved very beneficial to the band are not acceptable to the Commandant's Office.

Office

Lieutenant Colonel Short stated that no sponsor could make any profit from the appearances of the band and that all profits, after the guarantee to the band has been paid, must be turned over to a charity or for some civic purpose. No individual sponsoring the band's performance can benefit from the tour. Lieutenant Colonel Short advised that the Marine Corps and the other armed services clear with each other prior to the initiation of a tour of the areas in which they propose to appear so that the activities of the band would be spread as far apart as geographically possible.

According to the contract entered into between Mr. Trapp and the band, he must pay

to the band leader the sum of $5,320 per week. This amount is shown on their profitand-loss statement as weekly salaries. For the years 1951 and 1952, this amount is broken down into certain payments allowed to each member of the band and is scheduled in the following manner: 22 bandsmen at $87 per week, 12 bandsmen at $92 per week, 7 bandsmen at $97 per week, 5 bandsmen at $107 per week, 3 soloists at $127 per week, 1 soloist at $147 per week, 1 soloist at $182 per week.

In addition, the band leader, Lieutenant Colonel Santelmann, is paid $632 per week. All these payments are made each week during the 9-week tour. Since the band operates at no expense to the United States insofar as travel money is concerned, each band member must pay his own expenses for hotels, meals, laundry, etc., out of the money allotted to him. The only reimbursement they receive other than this amount is the cost of transporting their persons and baggage from one location to another, which is paid for by the tour director and is deducted from the gross income of the tour. Federal and old-age tax deductions are made for each member of the band who accompanies the tour. Only 1 tour a year is made and approximately 48 to 50 men go on the tour.

For his performance in arranging the tour, accompanying the band, and other activities, Mr. Trapp received a weekly allotment of $875, under a controlling clause in the contract, which is shown on the profit and loss statement as a management fee. For each of the 9-week periods in 1951 and 1952, Mr. Trapp received a total amount of $7,875 as management fee. Upon conclusion of the tour, the gross income is computed, the expenses of the tour deducted and the resulting net profit is distributed equally between Mr. Trapp and the leader, Lieutenant

Colonel Santelmann. After Lieutenant Colonel Santelmann deducts his proportionate share of the net profit, he distributes the balance, pro rata, to each of the band members who accompany him on the tour. The distribution of this bonus for the 1951 tour was as follows: 22 bandsmen at $140.25, 12 bandsmen at $148.30, 7 bandsmen at $156.40, 5 bandsmen at $172.50, 1 bandsman at $204.75, 1 bandsman at $237, 1 bandsman at $293.40. Lieutenant Colonel Santelmann's share was $1,018.45.

During the progress of the tour, no outside musicians are allowed to play in or with the band so that there is no complaint of local musicians. The only exception to this procedure, according to Lieutenant Colonel Short, is that occasionally Lieutenant Colonel Santelmann will, out of courtesy, allow a band leader living in the area where the band is playing to conduct the band. This is a matter of professional courtesy that usually extends to only one person during the program of the band and has never, to Lieutenant Colonel Short's knowledge, been objected to by the Musicians' Union.

No specific amount is requested from appropriations on an annual basis for the band. The budget of the band is prepared as a part of the Commandant's Office of the Marine Corps and an amount is inserted for equipage. This is the only reference made in the budget to the band. The pay. and allowances of the personnel of the band are shown with the overall pay of enlisted personnel and do not appear on the budget allotment of the Commandant's Office or of the band. For the purpose of computing the cost of the band, it would be necessary to audit the salary, pay and allowances of each individual, which information is being prepared by Lieutenant Colonel Short for this office.

In addition to this band, the Marine Corps has nine other bands located in posts Corps has nine other bands located in posts

UNITED STATES NAVY BAND

Mr. WILLIAMS. Madam President, in reviewing the procedure followed by other service bands, we found that, with the exception of the United States Navy Band, the tours are arranged by officials connected with the service, and when charges are made they are strictly on an expense basis, with no profit resulting either to the service or to the members of the band.

The Navy Band, while not permitting the members of the band to receive any remuneration other than their regular military pay, does, however, contract with a civilian tour manager to make arrangements and to determine the charges for their annual tours.

The Navy negotiated their contract with Mr. G. B. Sandefer, 1092 National Press Building, Washington, D. C. The 1952 contract-the one which was examined-provided for a maximum profit of $20,000 which could be retained by Mr. Sandefer. In that year his net profit as the tour director was $19,994.37.

Under the terms of the contract, while receiving no extra pay, the members of the band received an expense allowance. covering hotel, meals, laundry, and so forth, which were paid by Mr. Sandefer out of the gross receipts as collected from the various sponsors.