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Mr. WHITTEN. Gentlemen, we thank you.

RELATIONSHIP OF SUPPLEMENTAL ESTIMATE TO CONTINGENCY FUND

Mr. WHEELER. Before we leave the forest-pest item, Mr. Chairman, there is an item explained in the justification that I think we ought to call to your attention orally too, and that is the relationship of this supplemental estimate to this so-called contingency fund that was provided last year.

Mr. WHITTEN. We will be glad to have that in the record. I had checked that, but we will be glad to have you present it.

Mr. WHEELER. While the supplemental estimate for the fiscal year 1951 which is before the committee is in the amount of $370,000, the financial requirements to June 30, 1951, total $1,045,000, as follows: Spruce-bark-beetle project in Colorado..

Spruce-budworm project in Oregon and Washington.

Total

$345, 000

700, 000 1,045, 000

If the committee agrees, the Budget Bureau will permit the use for this work of $675,000 of the $750,000 contingency fund established in the 1951 appropriation act, leaving only the $370,000 to be supplied in the supplemental appropriation. We all recognize that these two projects, on which considerable work has been done in past years, do not involve new pests or unforeseen infestations, and hence do not meet the qualifications of the contingency fund as stated in House Document 495, Eighty-first Congress. However, by this late in the fiscal year, we can determine with reasonable safety that this amount. of the contingent fund will not be needed for such emergencies, and can be used in lieu of including a similar amount in the supplemental estimate. This will be done only if the supplemental estimate is approved or agreement is otherwise expressed.

Mr. Chairman, we still have for discussion the other phase of the forest-pest-control item, namely the white-pine blister-rust project. Mr. HORAN. Frankly, I am very much interested in a full explanation of these layers of supervision on the blister-rust control because I am interested in the blister-rust control and not necessarily too much supervision. I think that has been brought to your attention. You fellows are ready to testify on that; are you not?

Dr. POPHAM. That question is being dealt with in reply to the investigator's comments.

Mr. HORAN. It is?

Dr. POPHAM. Yes.

Mr. HORAN. I think you can see my point there.

MONDAY, MARCH 5, 1951.

RELATIONSHIP BETWEEN FISCAL YEAR APPROPRIATIONS AND PROGRAMS

Mr. STIGLER. Mr. Granger, we are glad to have you and your associates back with us this morning. When we recessed last night we were discussing forest pest control. I wonder if you have a further statement to make on that before we go on to another item.

Mr. WHEELER. Mr. Chairman, I believe we had finished consideration of the Forest Pest Control Act. But we have prepared, and we suggest for insertion in the record at this point, if the committee is agreeable, a table which shows the relationship between the fiscal year appropriations and the crop year or control year programs. This is somewhat complicated, and I believe the table will help to clarify it. The table also shows the relationship of the funds spent and requested to the workload involved, and also, in response to the questioning of yesterday, there is an indication of the additional funds that would be needed to complete these two main programs. We would be glad to insert that, and unless there are further questions, I would suggest that project 2, white pine blister rust, is the subject for discussion this morning.

Mr. STIGLER. It may be inserted.
(The material referred to follows:)

[graphic]

Estimate of amount of funds appropriated for forest pest control under Forest Pest Control Act used for various activities during fiscal year 1950; estimated expenditure during fiscal year 1951 from available funds, including estimated additional requirements by activities during 1951; and estimated requirements by activities during fiscal year 1952

Approved June 23, 1949.
Approved Mar. 27, 1950.

1 Second Deficiency Appropriation Act, 1949; funds to be available until Sept. 30, 1949.
Urgent Deficiency Appropriation Act, 1950; funds to be available until Dec. 31, 1950.
Deficiency Appropriation Act, 1950; funds to be available May 29, 1950 through June 30, 1950. Approved June 29, 1950.
NOTE.-Estimated requirements for control in 1951 may be modified when results of spring check-up made just prior to initiation of spring 1951 control work are available.
Estimated activity requirements for control in 1952 will for the most part depend on the results of surveys conducted during the summer and fall of 1951. For fiscal year 1952, the
amount indicated to specific activities is preliminary and based on currently available data.
Revised Feb. 26, 1951.

Source: Prepared Jan. 22, 1951, by Forest Service and Bureau of Entomology and Plant Quarantine after consultation with Department of the Interior.

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Mr. GRANGER. I would just like to make one additional comment on that, if I may.

Mr. STIGLER. All right, sir.

Mr. GRANGER. The question was raised yesterday as to the financing of this and the extent to which that characterizes it as a defense undertaking. As I said yesterday, this began long before there was any defense situation, and it was projected by those who propose to undertake this mill, and by the Forest Service, as an ordinary development, designed to utilize this valuable Englemann spruce timber for pulp and paper.

It is proceeding as an ordinary development, with financing to be sought in the customary ways, through a combination of private capital and perhaps they had in mind borrowing from the RFC in the regular manner.

I am not sure whether or not they did. But, in any event, it, like a great many other proposed undertakings at the present time, has now turned in part to the possibility of a loan under the Defense Production Act.

So that it is in the same category as a good many other undertakings with respect to the place where they are looking for funds at this time. But, in essence, it was not started as a defense project.

Mr. HORAN. What is the reason for the change-over from private sources to a defense production loan?

Mr. GRANGER. I cannot tell you just exactly what impelled them to seek it as a possible source of funds, except that I say it does seem to be common to a great number of other undertakings.

There are two proposed projects now on the books in Alaska. They are endeavoring to get some financing in the same way, particularly this newer one, which has recently been revised, up in Petersburg.

As to the other one, I am not sure whether that has in mind any defense financing or not. I think not, at the moment.

WHITE PINE BLISTER RUST

Mr. STIGLER. We will now turn to the white pine blister rust. We will be glad to hear your statement on that, Mr. Granger. Mr. GRANGER. As you will observe, there is a slight decrease this year in the requested amount.

Mr. STIGLER. $22,000, I believe.

Mr. GRANGER. Yes. In general, it is proposed to carry along the program in the same way as it has been carried on for a number of years, substantially at the same level-the same nature of operation.

It is focused more directly during recent years on the protection of the areas of highest value and highest potentialities.

The committee may remember that we made a pretty careful study, particularly on the national forest part of it, in the white pine territory in the West, to determine the economic justification for the undertaking and came out with a pretty careful selection of the general area and nature of areas in which we would continue the program.

It is focused on those areas at the present time, and will continue so to be.

Mr. ANDERSEN. May I ask a question, Mr. Chairman?

Mr. STIGLER. Yes, sir.

Mr. ANDERSEN. How much have we expended on this work since the inception of the program? I am referring to white pine blister rust control.

Mr. GRANGER. I do not have that figure at hand.

Does anybody here have the figure?

Mr. ANDERSEN. You can put the correct figure in the record, but can you give us an approximate idea of that now?

Mr. SHEALS. We have it here from 1916 on. In all it totals

Mr. ANDERSEN. Has the program been in operation since 1916?

Mr. SHEALS. Yes. The total shows $10,071,214

Mr. ANDERSEN. You are referring to State contributions?

Mr. SHEALS. That is State contributions alone. The grand total of all the Federal funds is $62,308,029. That includes over $20 million of the emergency funds, including NRA, WPA, and so forth.

Mr. ANDERSEN. I understand that approximately $60 million has been expended over this period, then, on this line of work? Mr. SHEALS. Yes.

Mr. ANDERSEN. And you say that the investigation, Mr. Granger, has shown it to be economically feasible; is that correct?

Mr. GRANGER. Yes. At the level at which it is being carried on now, and with reference to the area in which the work is being prosecuted, the values are so high that there is not any question about that in the way of justification.

Mr. ANDERSEN. The quantity of timber that it attacks is so vast that the expenditure of this money each year is justified, in your opinion; is that right?

Mr. GRANGER. We think so. The danger is not so much to the old growth timber, Mr. Andersen. This disease attacks primarily the young timber. The perpetuation of the white pine timber, particularly in the Inland Empire, is dependent upon keeping control of

this disease.

Mr. ANDERSEN. Is this going to be a continuous program from

now on?

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