Federal property. So, there is about 35 square miles here in the District. And that 35 square miles is dotted with Federal reserves. We know that.

Out of the total national income, and there is only one national income, do not forget that, and I do not care whether the Government spends it or John Jones or John D. Rockefeller, or the corporations or whoever it is that spends part of that national income, it is out of the total of our national wealth that comes from our sweat and toil. Here in the District and its immediate environs, there are 6,300 policemen of one type and another. There are at least seven complete separate systems. One of them only has 18 privates, but they have got a captain and I believe two lieutenants and four sergeants.

The same thing is true of the White House Police and the Park Police, and so forth.

I have a high regard for the individuals who compose the District Government, and nothing I am saying this morning is intended as personal criticism of anybody. But if you are looking for duplication, you do not have to look very far. You have got captains here in policemen's uniforms, here in the District, who are fine men, maybe, as individuals, and I am not criticising them, but they are doing a sergeant's work and should be paid as a sergeant is paid.

And I hope that the Congress of the United States will have courage and wisdom enough to attack this thing even though it is fraught with patronage from one end to the other. If we are going to set an example for the world, the place to begin is right in Washington, D. C.

That is about all I have to say.

Senator CAIN. Well, Mr. Horan, we are delighted that you are here. We are of the opinion that you have not been here in person before, since you have no illusions whatsoever as to what these hearings of a joint character are designed to do.

We are endeavoring to investigate the past, present, and future needs of every division of administrative government locally. We shall, after having listened to the several departments, not in the order of their importance but in the order of their convenience, because all of them are important, we shall examine as thoroughly as we can into the obvious need and time for each of the proposed legislative tax-revenue bills.

We listened thoughtfully yesterday to one proposal, the O'Mahoney proposal, which intends to make possible a formula which will permit of an administrative excellence that, in my opinion, has not been possible before; namely, if the Federal Government owes to the District government something on an annual basis, and this is not subject to contradiction or doubt, it is to be hoped by all of us, including yourself, obviously, that we can determine a formula which will make certain what that is going to be, so that future planning can be done on the basis of what they know they will get as the result of a particular formula.

We do not know whether that O'Mahoney formula is the best that can be conceived. We are going to be faced with meeting the job, as I see it, after these hearings are over, and they have been very worthwhile so far and will be more so in the future.

The two Appropriations Committees and the two District Committees can somehow sift the good from the bad and make a substantial future improvement.

This seems to me to be the one year of all years in the recent past when this approach should be followed because, to my knowledge. there has not in the past decade been a portion of the number of revenue tax measures to be considered by the Congress that we have in front of us now. It has been our purpose and our aim, and we feel that the people of this District have appreciated this approach, because through it we are evidencing a respect for their integrity and their intellect and their industry and awareness of their own problems, and that is where the meeting stands.

We have two or three more days. This morning, if your time premits, we know you will enjoy listening to those who will present the school boards' problem. After that, we will get into the engineering side. We will do our best to listen and understand the police side, following which has already been made clear to everybody interested that, first, we will hear from the proponents of each one of the bills like the sales tax, gasoline tax, and all of the rest, and then give an adequate opportunity for those who have something constructive to say, to sit here in the presence of their fellows and deny the validity which lies behind the proponents' support of their particular

measure.

A couple of months from now, coming out of that, there should be on paper what, for example, Mr. Bates and I were not able to find on paper, a résumé and summary of what the District thinks it is. It is going to be our responsibility to dig out of what the District thinks it is, what we concur that it may or may not be, and what

agrees.

Just a sidelight on that sales tax and all other revenue measures, I do not, in heaven's name, see how you can justify a serious consideration of imposing additional taxes on the residents of the city of Washington until you know beyond a question of a doubt what the Federal Government's contribution, if any, is to be. It is from your calculated items of income that you can determine how you must go about seeking additional revenue. So, our approach to this thing mentally has been in the order of its importance, from our point of view.

We hope, Walt, that you can be with us as much as you can.

Mr. HORAN. Mr. Chairman, that is impossible. Right now, I am sitting on Appropriations for the State Department and for the Department of Agriculture.

Senator CAIN. That is right.

Mr. HORAN. I want to say here and now, however, that I am keeping up on the whole operation of the District, not from the standpoint of wanting to crucify anybody or even to criticize, but if there was ever a tower of Babel in the modern sense, it is here in the District.

Senator CAIN. In a word, we can say, as a joint committee, that we have already found things to criticize. We have already found many things to compliment. And it is a confusing picture which has been

consistently drawn, over a great number of years, but our immediate problem, as Mr. Bates and I see it, is a serious consideration of the financial needs of the District for the year 1948, but the approach we are taking to it is not only to solve that temporary need, but to lay down a premise and a background and a pattern to consider long-range future needs and improvements.

Mr. HORAN. Well, I want to summarize before I leave now. Yesterday, we appropriated $1,750,000,000 for labor and social security. Ninety percent of that was for relief. I think it is not only true here, but our own State, Mr. Senator, is one of the worst offenders, but fortunately our State government made some corrections in the legislature of this last session just adjourned.

Senator CAIN. That is right.

Mr. HORAN. I think they moved in the right direction.

Funds for relief, and you folks know this, have not decreased, even though we have had prosperity that has almost shocked the world. The whole world is envious of America because of the prosperity that we have had here, and yet appropriations and expenditures for relief have not decreased with prosperity.

That is not difficult for anybody to think through. You know and I know it has got to be decreased, and it has got to be decreased not by the Federal Government, although I want them to do everything they should, but it has got to be decreased by wise administration at the local levels.

We just cannot have people making relief a way of life. And you folks that come before the Appropriations Committee, and some of you are planning to, when we have our hearings, and you will be invited to come, are going to come there with the idea that your request is special; thinking that it is sacred. It has got to be allowed. And each item you will have rationalized in your minds.

Whenever you come before my Appropriations Committee with a demand, I am going to throw the gamut of responsible citizenship back at you. I shall ask you for the tax formula to support it. If we want anything in this world, it is worth a sacrifice.

If we want to have the Federal city expenditures, where many of you think they should be, and I think it is with justification, we have got to practice thrift and wisdom in our civic life and the management of our civic affairs.

It seems to me that under our present system, that resides on the shoulders of those on the Appropriations Committee. It should, in all justice, be on yours too. We could not possibly be popular.

And I promise you I am not trying to be, but I do insist I am going to be just and honest and fair as my wisdom will permit.

Senator CAIN. Well, these hearings, Mr. Horan, will provide you with much information on which you can make decisions in the midst of your consideration.

Mr. HORAN. Thank you.

Senator CAIN. Thank you for coming, sir.

I wonder if we may ask Mr. Hobart M. Corning, the Superintendent of Schools of Washington, D. C., to come forward and sit with us.

STATEMENT OF HOBART M. CORNING, SUPERINTENDENT OF SCHOOLS, DISTRICT OF COLUMBIA; ACCOMPANIED BY CARL F. HANSEN, EXECUTIVE ASSISTANT TO THE SUPERINTENDENT OF SCHOOLS, DISTRICT OF COLUMBIA

Mr. CORNING. May I ask the privilege of having Dr. Hansen sit by me?

Senator CAIN. You may, indeed.

I think that you, Dr. Corning, have been at some of these hearings, so you pretty well know what we are looking for.

Mr. CORNING. Yes; I think so.

Senator CAIN. We would like to have your best advised counsel in order that we may be helpful.

Mr. CORNING. Yes, sir.

Senator CAIN. In connection with that, I think Mr. Bates and I would appreciate your proceeding as you think you can be most helpful to us, and we trust you will not mind our asking a few questions as you go along.

Mr. CORNING. I would be happy if you will.

At one of the former hearings, I heard that you wanted a one-page summary of any presentation the Departments would make, and I therefore put into your hand a one-page summary of the points which I hope to raise with you this morning.

Senator CAIN. I might stop you right there.

Mr. Fowler, that is the point I raised the other day for Mr. Bates and myself. We would appreciate a one-page summary from all Departments, covering the entire testimony, and Mr. Corning has just submitted such a summary to us.

Mr. FOWLER. Yes, sir.

Senator CAIN. And obviously it will be very helpful, because we can go back through that when we are checking items on which we are in doubt.

Mr. FOWLER. That is what we are preparing for you, Mr. Chairman. Mr. CORNING. Then, if I may expand that statement, I would like to do so.

Senator CAIN. Certainly.

Mr. CORNING. I will be glad to have you stop me at any time.

I will say one thing: we have the officers of the school system here this morning for the reason that we are in a rather embarrassing situation because our Budget Officer, who has at his finger tips all of the information about our budget, past and projected into the future, is critically ill, and not able to be here. We are a little bit embarrassed, and there may be some fumbling for papers.

Mr. BATES. That is all right.

Senator CAIN. That is quite all right.

Mr. CORNING. As superintendent of schools of the District of Columbia, I am submitting herewith information concerning the increase in costs of the public schools for the 10-year period 1937 to 1947, inclusive. In commenting upon these costs may I direct your attention to the fact that in the operation of public schools, just as in the operation of any business, costs have materially increased during this period. This applies to the construction of buildings. Experience with building projects shows an increase over the original estimates of 100 to 200 percent.

It also applies to the general operation of the schools. Everything we purchase, and all services which we employ cost very much more now than they did in 1937. The dollar which we use today produces less in the way of service to the children of the District than it did in 1937. In spite of the fact that the dollar now purchases so much less, the total cost of operating the schools has increased during the 10year period only 40.5 percent. On the capital outlay side there has been no appreciable increase. The annual appropriations for new construction, equipment, and sites have hovered around the $2,000,000 mark for each of the years in this period, except for the two war years, 1943 and 1944, when these appropriations were only approximately half a million dollars. It is true that the 1947 appropriation for capital outlay was $915,880 higher than the 1937 appropriation. However, in 1948 the budget estimates now before Congress drop again to $2,123,000.

The average for the 10-year period for capital outlay was $1,734,611 a year.

The increase above referred to of 40.5 percent for the 10-year period is in the general operation costs of the schools. In further explanation of these increases I submit for your consideration and for the record, tables I, II, and III, which I should like to go into with you. in just a moment, if I may. The young lady will hand them to you. Senator CAIN. Thank you.

Mr. CORNING. Table I refers to the list of operating expenses of the schools for the 10-year period under consideration, the capitaloutlay cost, and the total for the public schools. If I may direct your attention for just a moment to the capital-outlay item, you will see there that the statement which I made is correct that the average for capital outlay, which hovered around the $2,000,000 mark, except for the 2 years 1943 and 1944, for the 10-year period is $1,734,611 ̄a year.

Senator CAIN. Well, it might be safely construed that your averages in 1946 and 1947 are in part to compensate for a lack of capital outlay which you spent during the two middle war years.

Mr. CORNING. That is true, and it is also true that the money appropriated in recent years provides much less in the way of building than the same would have provided in former years.

Senator CAIN. The capital outlay actually represents the dollars appropriated?

Mr. CORNING. That is right.

Senator CAIN. Thank you.

Mr. CORNING. The 40.5 percent that I referred to is entirely in the column "Operating expenses," where the increase in cost has been from $10,702,460 in 1937 to $15,037,972 in 1947.

Senator CAIN. How much of that 40.5 percent is represented by wage and salary increases through those 10 years?

Mr. CORNING. In answering that, may I refer you to table II, which follows imediately.

Senator CAIN. If you are ready to go to table II.

Mr. CORNING. I am quite ready, yes, sir.

There we find that the increase in personal services amounts to $3,448,018. In other words, 32.2 percent of the total 40.5 percent increase was attributable to personal services. That represents increases in wages and some increase in the amount of personnel, which I will go into a little bit later.