sure that the questions asked conform as closely as possible to the most typical business records. To be able to compile statistics described in terms of the most typical kinds of records does require that some multiplant companies; i.e., those not maintaining profit-and-loss estimates, have individual plants perform some special work. The Census of Manufactures has been compiled on this basis for more than 100 years-long before most of the multiunit companies came into existence.

Question 4. Harry Westerfield, director of member relations, Illinois Manufacturers Association, suggested in Chicago a "task force operation calling upon the talents of executives familiar with accounting practices and businesses and industries of all types and sizes be enlisted to refine and systematize all Federal Government information gathering." What is your reaction to Mr. Westerfield's suggestion?

Answer 4. We believe that Mr. Westerfield's suggestion is a good one. However, a great deal is already being done in this regard. The Advisory Council on Federal Reports, a privately financed organization representing various business groups was established more than 20 years ago for the purpose of considering proposed statistical surveys in relation to the reporting burden. This organization advises the Budget Bureau with respect to the reporting problems involved in all important surveys proposed by Federal agencies. The Census Bureau always consults with leading companies, trade associations, or other organized industry groups such as statistical committees before initiating a survey. Perhaps still more could and should be accomplished, but it should be kept in mind that the simultaneous review of all Government reports would be an enormous undertaking.

Question 5. Mr. Kratville of the Link Belt Co. told us in Chicago that "Form MA-100, Annual Survey of Manufacturers," when considered with the 5-year census forms, is the most difficult Federal form his company prepares. He said also he is constantly amazed at the growth of different types of information reports.

Mr. H. C. Simmons of Gopher Grinders, Inc., of Anoka, Minn., in his letter of May 1964 to Congressman Ancher Nelsen, which I have inserted in the record, raises strenuous objections to annual manufactures forms.

What is your opinion of these forms? What can be done to reduce the burden they impose on the companies filling them out?

Answer 5. The annual Survey of Manufactures (form MA-100) does contain a considerable amount of information. It has been only slightly modified since it was initiated in 1949 and does contain less information than has been requested in the Census of Manufactures for many decades. Each question has been very carefully reviewed to achieve a balance between the needs for data on industrial America and the burden of providing it. The survey is conducted on a sample basis so that only one out of every five establishments is required to report.

It is our belief that this is one of the most valuable statistical surveys in the conutry and that it is well worth the cost to business and Government that its compliation requires. The staff of the Census Bureau stands ready to consult with the relatively few companies that find the report especially burdensome with the expectation that there could be established a simplified basis for reporting that would meet the statistical objectives of the survey.

Question 6. It seems to me that the Federal Government in general is not communicating effectively with the public in regard to the ultimate use of information the public furnishes. In regard to essential data, what can be done to improve this situation?

Answer 6. It may be appropriate to discuss, first, what the Bureau is doing to make its respondents aware of the value of the statistics and, second, what it might do to improve the situation.

What the Bureau is doing.-The Bureau of the Census communicates with its respondents in the following ways: Through various media, such as newspapers, magazines, television, and radio; by dealing with respondents directly either by writing letters to them or by having its field staff call on them; by explaining uses of its statistics in its general publications; and by encouraging others to show how they use the statistics.

Using communication media.-Before it takes a census or major survey, the Bureau uses all types of media to let respondents know that they will be asked to provide information. For the censuses of population and housing, which reach every person, intensive promotion is obtained through newspapers, magazines,

and television and radio stations. In the economic censuses, which reach a much smaller part of the population, trade magazines and newspapers carry the story. Press releases describe the items included and their uses.

The Bureau provides information concerning its censuses and surveys to the Nation's approximately 1,900 daily newspapers, 500 television stations, 5,000 radio stations, 2,500 business and trade publications, 300 farm magazines and to other media, attempting to tailor and distribute its information to the interests of each medium of communication.

In advance of the 1963 Economic Censuses the Bureau prepared special releases for each of 133 classes of business and trade publications, by major industrial classification. Results of the censuses will be reported on the same "tailored" basis.

During 1963, wire news services and daily papers in each State received a report on volume of business and manufacturing in each State.

Results of the 1962 Survey of Manufacturers were reported in 20 releases, each one to a separate category of business and trade publications.

All releases are available to the press and to trade associations through the Department of Commerce News Bureau.

Dealing directly with respondents.-In dealing directly with respondents, the Bureau is more specific about uses. In the current population survey, for example, the Director of the Census writes a letter to new households in the sample and tells them that an enumerator will call on them. He goes on to say, "On the other side of this letter are answers to some of the questions most frequently asked about this survey." One question deals with, "Who uses this information? What good is it?" When the CPS enumerator calls, he leaves with the household a brochure entitled "Facts About America," which gives 25 pieces of information collected in the survey and points out that Government and business use them in planning better services-better schools, health programs, job training for the unemployed, better supplies of things families need, etc. the retail trade survey, enumerators are trained to answer questions on how the data are used, and they arrange to have free copies of the survey results sent to respondents who request them.

In

In its request to respondents in the 1963 Economic Censuses, which were taken by mail, the Bureau limited its shipment to the barest essentials, feeling that any additional material might represent a paperwork burden. For respondents who raised questions, it provided a leaflet entitled, "Facts About the Economic Censuses," which shows uses and users of census reports. (This leaflet was printed on pp. 2-4 of the 1964 hearings on "The 1963 Economic Census.")

Publishing information on uses.-The Bureau puts out for general distribution some information on uses of its statistics. For example, one chapter in its informational pamphlet, "Fact Finder for the Nation" is on "Uses of Census Bureau Statistics," and this chapter has been reprinted for general distribution. One section of its "Census Tract Manual" describes uses of population and housing statistics for census tracts. The Bureau also prepared a leaflet for the Small Business Administration on "New Census Information for Your Business" and showed how the small businessman could use this information.

Encouraging users to explain their uses.-The Bureau encourages users to tell how they use the statistics. This has been especially effective at the annual census tract conferences; the Bureau publishes the papers presented there.

What the Bureau can do to improve the situation.-Obviously, the Bureau is not communicating with maximum effectiveness on the use of its statistics, since some respondents still see no need for the data they furnish. Plans are being developed for further work on the problem.

Find out more about uses of the statistics.-As was mentioned earlier at these hearings, the Bureau is planning to make studies and surveys to get more specific information on uses of its statistics. Although its resources for this activity are limited, it may be able to find out more specifically who uses different types of statistics and how they use them. This information will help the Bureau to plan its programs as well as to convince respondents that census data are useful. Determine the respondents who most need to know about uses.-From the complaints that have been received, it appears that all groups are not equally informed about the need for the data. The small retailer or manufacturer who does not read a trade magazine, who misses the item on the census in his newspaper, and who receives a request for data that gives him no information on their usefulness, may have been neglected. The information program will be more effective and less costly if it is directed at the areas of greatest need.

Find out what kinds of publicity are most effective.-Various types of publicity may be tested to find the best ones for making respondents aware of the value of the statistics. Perhaps the Bureau can reach respondents through more intensive campaigns in newspapers and magazines. Workshops may be organized and talks given at meetings of industry groups.

The most effective way of convincing the small businessman of the usefulness of the statistics may be to get him to use them. At the very minimum, he could compare the change in his sales with the change in the sales of all stores in his kind of business in the community; he could then tell if he is doing better or worse than the average. Cases are frequently reported of businessmen who would greatly benefit from the use of the statistics but who are unaware either of their existence or of the way to use them.

The task of convincing all respondents that statistics are useful to them is not an easy one. The Bureau deals with millions of businessmen who vary widely in their interests and in their channels of communication. A message that reaches one group of businessmen and convinces them either may not reach another group or may not impress them. More can be accomplished and the Bureau is constantly seeking means of improving its information services.

Question 7. Looking ahead into the future, don't you see a time when it will be possible to do away with the quinquennial economic censuses completely and substitute tax forms, social security reports, and other data for the census? Does the Census Bureau have people planning ahead for something like this?

Answer 7. The Census Bureau has under constant examination the possibility of broadening its use of administrative records and wherever possible substituting such records for the reports which it otherwise might directly collect. It is a matter of record that the Bureau has already eliminated direct economic census coverage for almost a million companies by substituting data from their business tax returns. We have also eliminated the need for a field enumeration of the economic census by utilizing the mailing lists developed in connection with the social security system. Several of our samples are kept up to date by the use of the tax records. We are presently exploring the possibility of using the personal income tax returns as a source of population estimates and income distributions. Looking ahead, it is almost certain that as our ability to extract information from administrative records on a timely basis increases (with the computerization of the various administrative agencies) our use of such records will increase. We look forward to a substantial reduction in the number of reports required, particular from smaller business, in the next economic census. Broadly speaking, we conceive of the ultimate role of the Census Bureau as not one of duplicating information already collected, but rather that of using its facilities to obtain information needed but not already available.

For example, it is unlikely in the foreseeable future the income tax system will call for the kind of detailed information nedeed about the production of individual products: the consumption of specific materials; man-hours worked, etc., which the census operation will continue to provide. It is also likely that the Census Bureau will use its facilities to supplement administrative records or otherwise fill gaps in the information they conveniently provide. present annual county business patterns report illustrates a well-developed form of this approach. The Census Bureau limits its direct data gathering to the approximately 1,000 firms out of over 3 million which do not furnish the needed data as part of their social security reporting.

The

Question 8. Dr. Eckler, in testimony yesterday (June 1), Mr. John Marshall, executive vice president of the National Association of Dairy Equipment Manufacturers, said he has been trying for 5 years to have the Federal Government furnish import statistics for his industry. Why can't this be done?

Answer 8. There are numerous users of the import statistics who are interested in obtaining more and more detailed reporting of import data in their particular areas of specialization. If the many requests for such additional detail (often involving commodities with very small volumes of trade) were granted, the reporting burden on the importer-who is usually not the manufacturer or user of the statistics-would be overwhelming. In order to prevent the proliferation of the number of detailed classifications for which importers are required to report information on their import entries, it was necessary to set forth certain basic requirements for the establishment of additional import commodity classifications.

Accordingly, the three agencies which are charged with the responsibility for establishing statistical classifications for imports under section 484 (e) of the Tariff Act of 1930; namely, the Tariff Commission, Bureau of Customs, and Bureau of the Census developed criteria for setting up new classifications. Among these are (1) imports of the specific product for which a new classification is requested should be of such volume as to be economically significant, (2) the product for which the classification is requested should be readily identifiable as such, (3) the release of the data should not violate the disclosure rules of the Bureau of the Census, and (4) any new statistical classifications to be established in the Tariff Schedules of the United States Annotated must, of course, be within the legal framework of the Tariff Schedules of the United States. Mr. Marshall's requests were examined within the framework of these criteria. Studies made to date by the Foreign Trade Division, Bureau of the Census, supported by the work of the other agencies indicated that Mr. Marshall's specific requests did not meet one or more of the above criteria. For example, in order to provide Mr. Marshall with the statistical detail he desires on dairy equipment, it would have been necessary to specifically break out dairy equipment items from among as many as 12 different multipurpose product classifications (because of the legal framework of TSUS it is not possible to set up a single classification for dairy equipment). With such fragmentation the dollar volume of the individual classifications would have been economically small. In addition, there is serious doubt as to the ability of a customs examiner to readily identify an item under some of these multipurpose product classifications on the basis of "end use," i.e., as dairy equipment. Other requests involved the question of disclosure.

As much as the agencies concerned wish to be helpful in these matters, the established criteria must be followed in order to insure that additional reporting burdens are not imposed through the creation of additional classifications unless fully justifiable in terms of statistically meaningful and economically significant data.

Mr. OLSEN. We will move over to Mr. Reynolds now and finish up with the Department of Commerce.

STATEMENT OF EDWIN L. REYNOLDS, FIRST ASSISTANT PATENT COMMISSIONER, PATENT OFFICE, WASHINGTON, D.C.

Mr. REYNOLDS. We have filed a prepared statement.

Mr. OLSEN. Your statement will be inserted at this point in the record.

(The prepared statement of Mr. Reynolds follows:)

PREPARED STATEMENT OF EDWIN L. REYNOLDS, FIRST ASSISTANT COMMISSIONER OF PATENTS, PATENT OFFICE, U.S. DEPARTMENT OF COMMERCE

Mr. Chairman, I appear at your invitation to present the views of the Patent Office with respect to the subcommittee's investigation of governmental reporting and paperwork requirements.

The chief functions of the Patent Office are to administer the patent laws as they relate to the granting of letters patent for inventions and the trademark laws as they relate the the registration of trademarks. These laws are codified in title 35 and chapter 3 of title 15 of the United States Code, respectively. They set forth the legislative standards of patentability and registrability, define the responsibilities of the Commissioner of Patents, and prescribe conditions which must be fulfilled by persons who seek to obtain the benefits afforded by these laws.

Certain of these conditions relate to the form and manner of making application for a patent or trademark registration. In the case of patents, 35 U.S.C. 111 provides as follows:

"Application for patent shall be made by the inventor, except as otherwise provided in this title. in writing to the Commissioner. Such application shall include: (1) a specification as prescribed by section 112 of this title; (2) a drawing as prescribed by section 113 of this title; and (3) an oath by the

applicant as prescribed by section 115 of this title. The application must be signed by the applicant and accompanied by the fee required by law."

By an amendment to title 35 enacted by Public Law 88-292, approved March 26, 1964, the Commissioner may permit a written declaration to be accepted in lieu of an oath in cases where an oath is now required by law or regulation. In the case of trademarks, 15 U.S.C. 1051 prescribes the form and content of an application for trademark registration as follows:

"The owner of a trademark used in commerce may register his trademark under this Act on the principal register hereby established: (a) By filing in the Patent Office (1) a written application, in such form as may be prescribed by the Commissioner, verified by the applicant, or by a member of the firm or an officer of the corporation or association applying, specifying applicant's domicile and citizenship, the date of the applicant's first use of the mark, the date of the applicant's first use of the mark in commerce, the goods in connection with which the mark is used and the mode or manner in which the mark is used in connection with such goods, and including a statement to the effect that the person making the verification believes himself, or the firm, corporation, or association in whose behalf he makes the verification, to be the owner of the mark sought to be registered, that the mark is in use in commerce, and that no other person, firm, corporation, or association, to the best of his knowledge and belief, has the right to use such mark in commerce either in the identical form thereof or in such near resemblance thereto as might be calculated to deceive ***."

Certain other conditions relating to the form of applications are prescribed by the Commissioner of Patents pursuant to the authority conferred upon him by 35 U.S.C. 6 which provides, in part, as follows:

"He (the Commissioner) may, subject to the approval of the Secretary of Commerce, establish regulations, not inconsistent with law, for the conduct of proceedings in the Patent Office."

These requirements, as they concern applications, are set forth in certain of the "Rules of Practice in Patent Cases," and in the "Trademark Rules of Practice of the U.S. Patent Office." The effect of these requirements is that the applicant must, as in the case of an application for patent, describe his invention with sufficient clarity, precision, and completeness as to enable the examiners in the Patent Office to determine whether the subject matter is novel and otherwise complies with the requirements of law so as to warrant the issuance of a patent. The adequacy of this description is important because it defines what others are excluded from using while the patent is in force and after which the public may freely use. It is this disclosure for which the patent system operates and in consideration for which the inventor is rewarded with a temporary monopoly. The scope of the patent is defined in the claims which the applicant must clearly set forth as representing what he regards as his invention. The claims, accordingly, are the primary subject matter for consideration by the Patent Office in its examination, and also the focal point of controversy in patent litigation.

Most of the requirements concerning the making of application for patent or trademark registration set forth in the rules of the Patent Office relate specifically to matters of form, the arrangement of papers in an application, questions of procedure in filing papers, and the sufficiency of the application with respect to its component parts and other particulars prescribed by law. Examples of such requirements from the Rules of Practice in Patent Cases are as follows: "Rule 52: (a) The petition, specification, and oath must be in the English language. All papers which are to become a part of the permanent records of the Patent Office must be legibly written or printed in permanent ink. (b) The specification and claims, and also papers subsequently filed, must be plainly written on but one side of the paper. A wide margin must be reserved on the left-hand side and the top of each page and the lines must not be crowded too closely together. Legal paper, 8 to 81⁄2 by 12% to 13 inches, typewritten and double spaced with margins of one and one-half on the left-hand side and top is deemed preferable. Typewritten or printed papers suitable for use by the Office may be required if the papers originally filed are not correctly, legibly and clearly written. (c) Any interlineation, erasure, or cancellation or other alteration, made before the application was signed and sworn to should be clearly referred to in a marginal note or footnote on the same sheet of paper, and initialed or signed by the applicant to indicate such fact.