and lack of funds and personnel, were Federal Trade Commission excuses for its inactivity. Notwithstanding the 1946 decision, the subcommittee found that, since 1955 alone, the Post Office Department had successfully proceeded against over 40 of these products. Again the committee concluded that the Federal Trade Commission had failed to discharge its statutory enforcement responsibilities, and estimated that consumers were "being bilked" out of an estimated $100 million annually. The committee further found an indifferent attitude by the Commission exemplified by the statement at the hearings by a Federal Trade Commissioner that "it takes a person who is really gullible to believe many of these ads." The report was also critical of the time taken by the Federal Trade Commission to proceed against falsely advertised products generallyan average of 2 years for the total Federal Trade Commission enforcement process, and urged expedition in Federal Trade Commission administrative proceedings. Further, the committee suggested a number of areas for legislative change for consideration by appropriate legislative committees. 4. False and Misleading Advertising (Dentifrices). House Report 2667, August 18, 1958 (38th report of committee, 85th Cong.). The American Dental Association presented examples of alleged false and misleading advertising in dentifrice promotion. The last Federal Trade Commission enforcement action in this field was a ceaseand-desist order in 1951. The Federal Trade Commission, under subcommittee questioning, said that it would consult with the American Dental Association and attempt correction of dentifrice advertising abuses. Lack of funds and personnel were cited as reasons for Federal Trade Commission inactivity in this field. Without passing on the specific advertising presented, the committee found that the Federal Trade Commission was not discharging its statutory enforcement responsibilities. It recommended that the Commission require scientific proof of advertised dentifrice claims as it is now doing with respect to cigarette claims. It further recommended that the Commission institute fair-practice conference procedures to effect codes of fair advertising for dentifrices. The committee also recommended consideration by appropriate legislative committees to determine whether legislative changes are required in this field. Additional views were filed. 5. False and Misleading Advertising (Prescription Tranquilizing Drugs). House Report 2668, August 18, 1958 (39th report of committee, 85th Cong.). This report related to the advertising of prescription tranquilizing drugs directed only to the medical profession. Instances of deceptive advertising in professional journals and in direct-mail advertising to doctors were cited. Since the hearings disclosed that the Federal Trade Commission had never proceeded against any type of professional medical advertising, the committee again concluded that the Federal Trade Commission had not discharged its statutory responsibilities. Recently the ethical drug industry issued a code of advertising standards. The committee recommended that the Federal Trade Commission institute trade con ference procedures to effect a code of fair advertising practices for ethical drug promotion. One of the difficulties in this field is the apparent conflict within the Federal Trade Commission itself as to Federal Trade Commission authority with respect to professional medical advertising. Consideration of legislative changes by the appropriate legislative committee is also suggested in this report. Additional views were filed. 6. Federal Role in Aviation (1958). House Report 2679, August 20, 1958 (40th report of committee, 85th Cong.). This report was a followup to the 1956 report of the committee entitled "Federal Role in Aviation." In the current report matters of air safety and Government preparations for the acceptance of commercial jet aircraft are discussed. The committee found that various matters involving air safety, particularly separation of civilian and military aircraft and cockpit visibility standards, had not been resolved-that airport operators were not being kept sufficiently apprised of airport commercial jet requirements, and that personnel matters affecting controllers had not been resolved since the 1956 hearings. Additional views were filed. 7. Internal Revenue Service (Levies on Unemployment Compensation Benefits and Denial of Travel and Away-From-Home Expenses to Construction Workers). House Report 2680, August 20, 1958 (41st report of committee, 85th Cong.). The report enumerates instances of inefficiency in the operations of the Internal Revenue Service with respect to levies on unemploymentcompensation benefits and disallowance of away-from-home expenses. The committee found that the legality of levies had been challenged by the States; that some States had not honored these levies; that the Internal Revenue Service had done nothing to resolve the legal issues involved and had no explanation for the fact that half of the levies had occurred within the area served by 1 of the 9 regional offices of the Service. A provision to exempt these benefits from levy is contained in legislation (H. R. 13549) recently enacted. With respect to disallowance of "away-from-home" expenses it was found that a letter-ruling sent to the subcommittee over 2 years ago (May 4, 1956) on this matter had not been disseminated to its field offices. This resulted in varying interpretations by the majority of IRS district offices. Nor had the service issued, as it had promised in said ruling, a "comprehensive" ruling on this subject. After the hearings, the Commissioner of Internal Revenue notified the chairman that the 2-year-old letter-ruling was now being disseminated with instructions for its adherence by district offices. Minority views were filed. (G) General Government Activities Subcommittee This subcommittee presented no formal investigative reports. It should be noted, however, that of the 40 bills reported by the Government Operations Committee in the 85th Congress, 19 emanated from the General Government Activities Subcommittee. In addition to many other activities, as later discussion will show, this subcommittee performed an invaluable function in reviewing proposed negotiated sales of surplus real property, resulting in direct savings to the Government of approximately $2 million and indirect savings of very much more. (H) Special Donable Property Subcommittee This small group presented no formal investigative reports. It did, however, monitor a tremendous and growing program of donating surplus property for certain public purposes. In addition, work done by this subcommittee in connection with the SAGE communication contracts has led to savings amounting to $11 million a year for a 10-year period. Both these items are discussed later in this report. (I) Special Government Information Subcommittee 1. Availability of Information from Federal Departments and Agencies (Progress of Study, July-December 1956). House Report 157, February 22, 1957 (2d report of committee, 85th Cong.). This report covers the activities of the Special Government Information Subcommittee in the period of July-December 1956 and summarizes the action and inaction of the various Federal agencies during the period with respect to improving information practices. 2. Availability of Information from Federal Departments and Agencies (Scientific Information and National Defense). House Report 1619, April 22, 1958 (23d report of committee, 85th Cong.). This report resulted from the subcommittee's study of the availability of scientific and technological information, particularly from the Defense and Commerce Departments. The study was based on the directive, in the charter letter from Congressman William L. Dawson, to investigate charges that "pertinent and timely information" was being denied to "trained and qualified research experts." The report covered 29 categories of restrictions on such scientific information, concluding that excessive restrictions were stifling the national effort to improve its technological position. The report recommended the abolition of the multiple-clearance system for access by scientists to information, the removal of the "need to know" criterion and an end to the classification of information involving only the basic laws of nature. 3. Availability of Information from Federal Departments and Agencies (Department of Defense). House Report 1884, June 16, 1958 (27th report of committee, 85th Cong.). This report resulted from the subcommittee's continuing study of the information practices and policies of the Department of Defense. It covered all information restrictions imposed by the Department exclusive of restrictions on scientific information covered in House Report 1619. The report covered 14 areas of restrictive action by the Defense Department, each broken down into numerous categories of specific restrictions on information. The report arrived at nine seperate conclusions on the information operations of the Department of Defense and recommended specific action by the President, the Secretary of Defense and the Congress to remove unjustifiable restrictions. A minority report was filed. 4. Availability of Information from Federal Departments and Agencies (Progress of Study, February 1957-July 1958). House Report 2578, August 13, 1958, (35th report of committee, 85th Cong.). This report covered the investigative work of the Special Subcommittee on Government Information exclusive of the scientific information and Defense Department areas. It presented details on 40 specific cases or general areas of restrictions on information from the Federal executive and independent agencies. The report points out that unjustifiable restrictions were removed in 27 cases, there was a partial improvement in the availability of information in 4 cases, and restrictions still were imposed in 9 cases. The report arrived at conclusions, based on the detailed cases, in 7 categories covering restrictions of information involving more than 20 Federal departments and agencies. Additional views were filed. DOCUMENTS PUBLISHED AS COMMITTEE PRINTS In addition to the formal committee reports made to the House of Representatives, the committee also publishes certain documents of a background nature for committee use and as a matter of general information. The titles of these are self-explanatory. The committee prints published in the 85th Congress are as follows: Title Questionnaire on Administrative Organization for Public Information Activities. The Budget Process in the Federal Government. Actions taken by Departments and Agencies on the Lending Agencies Recommenda- Legislation Introduced and Action Taken by the 84th Cong. and 1st sess. of the 85th Federal Real and Personal Property Inventory Report (Civilian and Military) of the Survey and Study of Administrative Organization, Procedure, and Practice in the Federal Agencies by the Committee on Government Operations-Agency Response to Questionnaire: Part 1-Department of Agriculture. Part 2-Department of Commerce. Part 3-Department of Defense. Part 4-Department of Health, Education, and Welfare. Part 5- Department of the Interior. Part 6-- Department of Justice. Part 7-Department of Labor. Part 8-Post Office Department. Part 9-Department of State Part 10-Department of the Treasury. Part 11A-Independent agencies. (Atomic Energy Commission) (Export-Import Bank of Washington) (Federal Home Loan Bank Board) Part 11B-Independent Agencies.. (Federal Deposit Insurance Corporation) Date issued February 1957. December 1957. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Do. Title Survey and Study of Administrative Organization, etc.-Continued (Housing and Home Finance Agency) (Indian Claims Commission) (Interstate Commerce Commission) (National Advisory Committee for Aeronautics) (National Labor Relations Board) Part 11D-Independent Agencies. (Railroad Retirement Board) (Securities and Exchange Commission) (Small Business Administration) (Subversive Activities Control Board) (Tennessee Valley Authority) (U. S. Information Agency) (U. S. Tariff Commission) Executive Orders and Proclamations: A Study of a Use of Presidential Powers. reedom of Information Legislation During the 85th Congress. Federal Real and Personal Property Inventory Report (Civilian and Military) of the U. S. Government Covering Its Properties Located in Continental United States, in the Territories and Overseas, as of June 30, 1958. Date issued December 1957. Do. Do. THE FEDERAL REAL AND PERSONAL PROPERTY INVENTORY REPORT Listed among the committee prints is a document which represents a continuing study of great value conducted by the committee. This is the Federal Real and Personal Property Inventory Report (Civilian and Military) of the U. S. Government, Covering Its Properties Located in Continental United States, in the Territories and Overseas as of June 30, 1957. The committee inaugurated its Federal real and personal property inventory report in 1955 under the direction of the chairman. It is brought up to date and reissued annually. Every effort is made to assure its accuracy and reliability. It is certainly one of the most widely used documents published by the committee and provides the only authoritative compilation of statistics relating to Federal property generally. The committee is currently working on improving the report by getting up-to-date valuations for the Federal properties listed. It has, as yet, been unable in this endeavor to secure the full cooperation of the agencies affected. SIGNIFICANT COMMITTEE ACTIONS NOT RESULTING IN FORMAL REPORTS OR COMMITTEE PRINTS A considerable amount of the committee's work results in solid accomplishments which do not find their way into the formal reports made to the House of Representatives or into committee prints. Perhaps the most significant of these efforts are (1) the systematic review of the reports of the Comptroller General to the Congress, and (2) the followup on recommendations made in committee reports. Both of these activities are discussed under separate headings elsewhere in this report. There were also a number of other individual efforts of interest and significance which are worthy of mention. These are discussed below. It should be noted that the list is not exhaustive, but merely sets out some of the highlights of this type of committee action. |