In other words, it shows, in the lower right-hand corner, the amount of $399,455 which we believe is a conservative estimate of our needs for the full year, and our supplemental estimate has been more or less based upon that figure. BREAK-DOWN OF GRAIN FUTURES ADMINISTRATION COSTS AS OF JULY 1, 1937 Mr. TABER. Could you give us a break-down of what you had before, alongside of this break-down? Mr. STRACK. Yes. (The statements above referred to are as follows:) Break-down of activities under the Grains Futures Administration and estimated costs as of July 1, 1937 PERSONNEL AND MISCELLANEOUS EXPENSES AT THE VARIOUS OFFICES Mr. TABER. How many have you in your New York office now, or did you have under the old set-up? Mr. STRACK. In the New York office? Mr. TABER. Give me the number and the amount. Mr. STRACK. One of these abstract sheets gives you the break-down of the personnel and miscellaneous expenses at the various offices. For instance, at the top there is an item for Chicago, 36 employees. That is the number of people we have there now, and the salary and expenses amount to $81,360, with $12,660 for miscellaneous expenses, or a total of $94,020. Mr. WOODRUM. What date is that you are referring to? Mr. WOODRUM. Do you propose to have that many people there? Mr. STRACK. Thirty-six employees is right. That is the regular estimate. This is the organization for which the $196,500 was appropriated. Mr. WOODRUM. How many do you propose to have in Chicago when you get to functioning on the act, as amended? Mr. STRACK. We plan to have 50. Mr. CANNON. These employees are the total personnel in the office, are they, or are they merely personnel in addition to the number previously employed? Mr. STRACK. In other words, one sheet gives you the break-down of what we will need in the way of additional personnel and miscellaneous expenses, in addition to that which has been carried on under the old Grain Futures Act, provided for with the $196,500 appropriation. Mr. CANNON. You have been maintaining offices at all these places except at New Orleans? Mr. STRACK. Yes, sir. We may find out, and find out right soon, that it will be necessary for us to establish offices at other points wherever there are contract markets, where we do not now have offices. We do not know what the extent of the work will be at these points, namely, Portland, Oreg., Duluth, Minn., and St. Louis, Mo., or whether or not we will be actually justified in establishing offices. BASIS FOR ARRIVING AT ESTIMATED EXPENSES FOR REMAINDER OF 1937 Mr. WOODRUM. On what date, when these salaries are to begin, is the estimate based on? Mr. STRACK. That was on the basis of the figure that was used in arriving at the $150,000, and the idea was to base it on a 5 months' requirement for the entire estimate. From that we have deducted an additional one-twelfth for salaries, believing that we will meet certain obstacles in getting qualified personnel. Then we have added to that a small amount of money that we believe will be required for temporary help, which will be greatly needed in connection with our reorganization work, and then added $6,000 to carry out our obligations under the Grain Futures Act, and this is the amount that we will actually need for the remainder of the current fiscal year for this purpose. Mr. WOODRUM. What will be the amount of your expenditures under this estimate for the remaining months of the fiscal year, in the event this appropriation is allowed, as requested? Mr. STRACK. We have not worked out the figures on the basis of monthly expenditures. Of course, the expenditures will increase as we build up the organization. Mr. JUMP. The salary estimates are based on a 5 months' program; and on the assumption that there would be delays in organizing the force the Commodity Exchange Administration arbitrarily has then deducted one-twelfth of a year's salary for the period of 5 months, for which the estimate is made. ESTIMATED EXPENSES FOR 1938 AND SELECTION OF TRAINED PERSONNEL Mr. WOODRUM. What will be the expenditure for 1938? Mr. STRACK. Our estimates, as they have already been submitted for 1938, are $590,000. Mr. WOODRUM. Is that for the full fiscal year? Mr. STRACK. Yes, sir. Mr. LUDLOW. This must be a trained personnel. Mr. LUDLOW. Therefore, it must be staggered, or you cannot recruit the force all at once. Mr. STRACK. No, sir; we cannot get them all at once. We feel that it is essential and important that we go into the market and find out what is going on, but we are hopeful that we will be able to quickly secure qualified men, or men who know the inside work of the trade. Mr. WOODRUM. Will they be civil-service employees? Mr. STRACK. Yes, sir. Mr. LUDLOW. The building up of such a force as this must be a matter of time. Mr. STRACK. Yes, sir. Mr. LUDLOW. Has that been taken into consideration in making up the estimates? Mr. STRACK. We have people in mind whom we believe we can obtain by transfer or reinstatement. Others will be procured from existing Civil Service registers and as the result of special examinations. Mr. LUDLOW. There must be considerable time involved in that. Mr. STRACK. Yes, sir; that is true. We have figured on that in the estimates, which are on a 5-month basis, with the additional deduction of one-twelfth to make allowance for the savings that would ordinarily be effected. We have deducted that additional 1 month from the salaries, so that the estimate is actually worked out on the basis of 4 months' salaries. Mr. WOODRUM. If a man does not go on for 2 months, it will mean a saving of 2 months' pay. Mr. STRACK. Yes, sir; there would be a saving for each month of delay. The CHAIRMAN. You had $196,500 under the old law before it was amended at the last session. BREAK-DOWN OF BASIS FOR SUPPLEMENTAL ESTIMATES Mr. STRACK. Yes, sir. We will insert in the record a break-down statement which may better picture the basis upon which this supplemental item is constructed with brief explanation as to purposes for which funds are being requested. Estimated savings in personnel due to evident impossibility of obtaining all required personnel by Feb. 1, 1937, one-twelfth of additional personnel estimate.. -27,965 Net basic estimate. Estimated amount required for temporary help to assist in reorganization work. Estimate of amount (in part) expended from regular appropriation for activities incident to the Commodity Exchange legislation which is required to carry out certain obligations under the basic law during the remainder of the fiscal year 1937. 1 New York office, $41,400.-Supervision over future trading in cotton on New York Cotton Exchange, largest cotton market in the world, and over future trading in butter and eggs on merchants located in New York territory. the New York Mercantile Exchange-all new commodities-and for enforcement of new provisions of law applying to commodity futures trades routed through futures commission 2 Chicago office, $18,385.-Supervision over future trading in butter, eggs, and potatoes on Chicago Mercantile Exchange, cotton on Chicago Board of Trade, and mill feeds on St. to grain on Kansas City Board of Trade. Enforcement of new provisions of law applying to grains on Seattle Grain Exchange and Portland Grain Exchange. 6 New Orleans office, $23,170.-Supervision over future trading in cotton on New Orleans Cotton Exchange-new commodity-and establishment of field office at that point. Division of Designation and Registration, $7,520.-Devoted principally to examination of applications and follow-up procedure incident to registration by futures commission 11 Division of Analytical Survey, $14,490.-For expert study, research, and analyses concerning trading operations in separate commodity fields by men trained in economics and preparing and presenting cases involving violations of the Commodity Exchange Act. 14 Division of Information and Statistics, $10,595.-Assembling, preparation, and publication of statistical data and material relating to future trading in all commodities in all markets and providing a central clearing place for information bearing upon all phases of future trading in commodities. |