laws. The actual increase, however, has been over 20 percent. This is partly the result of the work of some 5,500 new Internal Revenue employees authorized during the past 2 years, coupled with a vigorous new approach by Internal Revenue toward tax collection and enforcement.

Despite the unprecedented rise in taxwork, we are not seeking an increase in staff for this Division at this time. The Congress authorized a substantial increase for 1962 and the present request is limited to the funds needed to cover the salaries of the new people on an annual basis.

There is, however, every indication that the number of tax cases will continue to rise as the Revenue Service's program builds up more steam and as the automatic data processing program gets underway in 1962. In fact, it is possible that this program could produce an increase in tax litigation even more phenomenal than the one we are now experiencing.

CIVIL DIVISION

I continue to be impressed with the volume of work handled by the Civil Division, the variety and complexity of the legal problems which it encounters, and the splendid job which the Division does in representing the various departments and agencies of the Federal Government.

This Division always is faced with an ever-expanding caseload, caused in large part by the wide range of activities engaged in by the Government. Attempts have been made in previous years to cope with this problem by requesting additional appropriations for hiring more lawyers. This year, however, we are taking a different tack. We recently have reorganized the Division, consolidated certain sections, and centralized supervision over all sections in the Assistant Attorney General's Office. This reorganization should result in more efficient operation and lead to a reduction in the Division's caseload. At the same time it should enable the staff as now constituted to become more current in its role as the general litigation firm for the Federal Government.

INTERNAL SECURITY DIVISION

One of the most important developments in the internal security field for the past several years was the Government's final victory in its proceedings against the Communist Party. On June 5, 1961, the Supreme Court upheld the registration provisions of the Internal Security Act of 1950 requiring the party to register with the Attorney General as a Communist-action organization. When the party failed to register a grand jury returned a 12-count indictment against the party.

It is worth noting that the foregoing developments appear to have thrown the Communist Party of the United States as an organization into a state of confusion and turmoil. It has displayed a considerable amount of indecision; meetings have been cut to a bare minimum; and additional security measures surrounding its operations have been instituted.

All of this adds up to reducing its effectiveness.

Mr. Chairman, I would like to call the committee's attention to a critical problem which the Department has in retaining highly skilled

employes, particularly attorneys. It goes beyond pay allowed by the Classification Act. However, under the act, top trial attorneys can be paid only as much as certain lower level supervisors, even though the trial attorney's responsibilities are very great and exceptional skills are demanded.

Under the Classification Act, it is difficult to recognize unusual talent and reward exceptional lawyers over the average lawyer. We must solve this problem, and we are considering some legislation which we may suggest to Congress.

Mr. ROONEY. In this connection, you are not going to submit the same legislative bill you did last year, are you?

Mr. KENNEDY. No, we are not.

Mr. ROONEY. Our conversation the other day still goes, does it not? Mr. KENNEDY. That is correct.

In addition to seeking budget increases for most of our litigating divisions, it is necessary for us to seek substantial increases for the three bureaus of the Department.

FEDERAL BUREAU OF INVESTIGATION

The Federal Bureau of Investigation request represents an increase of $3,574,000, most of which would provide for 218 more full-year employees (145 agents and 73 clerks) for assignment to the Bureau's field service.

This additional personnel is needed to fulfill greatly expanded investigative responsibilities which the FBI has handled and will continue to handle in the drive against organized crime and racketeering.

In addition, the FBI has been receiving an increasing amount of work in its overall criminal and civil field of operations. Most major criminal offenses under its jurisdiction are on the increase, and the FBI has been called on to handle a rising volume of antitrust work. At the same time, the FBI has vital security and counterintelligence responsibilities safeguarding the internal security of the Nation. New legislation enacted since the submission of the FBI's request for the fiscal year 1963 will further add to its growing workloads during the current fiscal year 1962 as well as during the fiscal year 1963. No request has been made for additional funds and personnel to handle any of this new added work, which has been extensive.

IMMIGRATION AND NATURALIZATION SERVICE

The 1963 budget request for the Immigration Service includes an increase of $1,141,000 over the 1962 request.

Almost half of this would be for mandatory and statutory increases. An increase of $232,000 is budgeted for 47 new records personnel. The balance of $256,000 is needed for construction.

As in other parts of the Department, the workload of the Service has increased rapidly. Land entries to the United States have increased 24 percent in the past 5 years and new bridges and highways will help continue this increase. Air and sea arrivals have increased an average of 10 percent annually, and jet travel, more air routes, and improved ship service will continue this trend. Indeed, with passage of the International Travel Act, encouraging foreign tourism in the United States, it is fair to expect even greater increases.

Immigrant and nonimmigrant aliens admitted to this country during the fiscal year 1961 averaged over 124,000 monthly. Past experience shows that this volume will increase 20 percent by 1963.

It is our plan to improve inspections at land boundaries by replacing six inadequate border inspection stations with new ones to be constructed jointly with the Bureau of Customs.

In other activities during the past fiscal year the Immigration and Naturalization Service formally deported over 7,000 aliens while over 52,000 were required to depart from the United States. More than 132,000 persons were naturalized and approximately 170,000 petitions for naturalization were received.

The border patrol apprehends about 30,000 illegal aliens each year. The fact that the number is now remaining quite steady is indicative of control of the Mexican and Canadian borders.

BUREAU OF PRISONS

Our largest individual request is $5,336,000 for the Bureau of Prisons, principally to take care of the rapidly expanding prison population. Of this total, $1,895,000 would be used for new construction and $2,841,000 would be used for expenses and salaries-including those of 213 new personnel.

Our existing institutions already are overcrowded and more space must be provided for the housing and treatment of Federal prisoners. The committee is familiar with the general outline of our 5-year program for developing the Federal prison system, to provide facilities to care for approximately 800 more prisoners each year.

During the next fiscal year we will complete the construction of the maximum security institution at Marion, Ill. The planning phase of the new psychiatric hospital for Federal prisoners is well underway, and during the next year we also wish to begin work on a new National Training School for Boys. The proposed 5-year construction schedule would enable the Bureau of Prisons to accommodate the multiplying prisoner population in an orderly way.

I am sure the committee shares my particular continuing concern over the growing proportion of youthful prisoners. Inmates under 25 now total 8,000-a third of the total institutional population. In fiscal 1962, commitments in this age group totaled 37 percent. The youthful offender category has been growing at an average rate of 2.3 percent in each of the past 5 years.

All our youth institutions are badly overcrowded and it has been necessary to transfer many of the young inmates to institutions not specifically designed to treat youth problems. We propose to build a 200-man youth instiution for the midwestern area on our Terre Haute, Ind., reservation. By using inmate labor and by keeping security devices to a minimum, the entire institution can be built for $860,000. Another item of great personal interest to me is the replacement of the National Training School. This facility, parts of which are nearly a hundred years old, is in deplorable condition. We have attempted to recondition as much of the plant as possible, but deterioration is so extensive that it is simply not economical to proceed further. We request $250,000 in planning money.

In budgeting for the care and treatment of Federal prisoners the primary emphasis should be placed on the youth offenders. They

offer the more hopeful prospects for rehabilitation, and an investment in them is more likely to pay real dividends in the reduction of crime. In this connection I wish to express the Department's appreciation for the $500,000 authorized by this committee last year for the experimental "halfway house" projects for youths in the Federal prison system. From every present indication, the experiment has been an unqualified success. Sixty-five young men have been residents in the three centers in Los Angeles, Chicago, and New York. Counseling, recreational, and vocational assistance programs have been established for them and have been effective. To typify the progress made at these centers let me tell you about a youth who went to the Chicago guidance center from our institution at Chillicothe.

From the start, he displayed considerable resentment and hostility toward authority, particularly the staff, his probation officer, and his employer. Although he was involved in no serious rules violations, he presented continual problems.

After about a month, however, he began to talk out much of his hostility at the center's group counseling sessions. The other youths helped him see the causes of his resentment and by the time of his release, he had developed closer relationships with several members of the staff and his probation officer. Shortly before his release his employer reported a dramatic change in the youth's attitudes. His work habits had improved noticeably and he was being considered for a promotion to a job with more responsibility and more pay.

Admittedly, this is one of the more dramatic instances of success so far, but it is true that many of the youths have made significant gains. The probation officers in all three cities have reported to us that "graduates" of the guidance centers go back to society with a much more positive and realistic attitude than do youths released directly from institutions.

I visited the halfway house in Los Angeles just before it opened. It had been renovated by prisoners from Terminal Island. These men worked with unusual zeal to get the job finished in a week. Many expressed the wish that such a center had been in existence when they

were young.

These are only preliminary indications. The real test will be in the comparative return-to-prison rate between the two groups.

If the present progress is any indication, however, I think the $500,000 authorized for this purpose by this committee last year will turn out to be one of the best investments in this area ever made by the Government in saving people as well as money.

In conclusion I would like to say, Mr. Chairman, that I found my first year in the Department of Justice to be a gratifying and rewarding experience in every way. I have visited with more than 40 U.S. attorneys outside of Washington. At these meetings, we have conferred with all Federal law enforcement agency heads in the particular area to coordinate our work and make it more effective. I would say that I have been impressed tremendously by the caliber of the career employees in the Department of Justice. The Department has an excellent staff of dedicated and skilled employees and I feel it is a privilege to be associated with them. We have great problems and, as I said earlier, one of them is in the retaining of the more

talented people in all lines of endeavor. But we have made significant progress, in my opinion, and I submit our budget request to you with strong hope for the future.

Now I shall be glad to answer any questions.

CALIBER OF CAREER EMPLOYEES OF DEPARTMENT

Mr. ROONEY. Mr. Attorney General, when you say you have been impressed tremendously by the caliber of the career employees of the Department of Justice, I might say that on my recent visit to the west coast, Honolulu, and the Far East, I was very much impressed by the caliber of our people in the Federal Bureau of Investigation and the Immigration and Naturalization Service. They stand out as people of capability, and they certainly know their business.

Mr. KENNEDY. Looking back over my first year-as I said, I have been to many of these cities, and I met, I should think, with about 95 percent of all the attorneys of the Department of Justice here in Washington at various times, individually and in groups-the most singularly impressive thing to me is the caliber and the dedication of the career employees-the ones who have spent a great deal of time in the service, and who in my judgment receive very little credit for the effort that they put in, the kind of work they accomplish, and their dedication to their tasks. I have been most impressed.

NATIONAL TRAINING SCHOOL

Mr. ROONEY. At pages 12 and 13 with regard to the Bureau of Prisons, you make reference to the National Training School out here on Bladensburg Road. What are the plans with regard to that? Do you plan to dispose of that property or improve it?

Mr. KENNEDY. I think we shall try to start the institution in Indiana. We have asked for $250,000 to make a plan to see if we could open up an institution out in Indiana which would

Mr. ROONEY. That is the Terre Haute institution?

Mr. KENNEDY. Yes.

Mr. ROONEY. What would you do with this valuable property out here on Bladensburg Road?

Mr. KENNEDY. I think that is to be turned over to the Government, is that not true?

Mr. ANDRETTA. Yes.

Mr. ROONEY. Has this been firmed up yet?

Mr. ANDRETTA. It is firmed up to the point that Mr. Bennett wants to develop plans for a new institution. He has come to the point now that, instead of getting legislation and using the proceeds, we are going to turn it over to the Government and let the Government dispose of the proceeds.

Mr. KENNEDY. I think there has been a question back and forth for a number of years whether we would sell the property and use the proceeds to build a new institution, which I understand was the position of the Department of Justice for a number of years. That did not work out satisfactorily. We have not been able to work it out. So now the plan is to ask for an appropriation to build a new institution, at least to develop plans, and this will be turned over to