INCREASES REQUESTED

Mr. ROONEY. It would appear, of the $42,900 increase requested for the Civil Rights Division, $10,300 is for within-grade promotions required by law and personnel benefits such as retirement and insurance; $18,300 of it would be to annualize the additional personnel allowed in the last supplemental appropriation bill; and $20,300 of it would provide the requested three GS-5 analysts.

Is that a correct statement?

Mr. MARSHALL. That is correct, Mr. Chairman.

Mr. ROONEY. These analysts are going to travel, are they?

Mr. MARSHALL. No, Mr. Chairman.

Mr. ROONEY. I would not expect they would.

Mr. MARSHALL. They will be in Washington.

Mr. ROONEY. So they would not need this $1,000 for travel, would they?

Mr. ANDRETTA. That is a general travel increase.

Mr. ROONEY. Oh, no. That is under "New positions."

Mr. ANDRETTA. I am sorry.

Mr. ROONEY. You have $3,000 for rent to be transferred to GSA. Do you have enough room down there for the three analysts so we can save that $3,000?

Mr. MARSHALL. We are very crowded, Mr. Chairman, I can tell you that.

Mr. ROONEY. Where will you put these three analysts? Will you put them up here on Capitol Hill or in Foggy Bottom or keep them in the outfit?

Mr. ANDRETTA. We will keep them in the outfit. We will have to move some out.

Mr. ROONEY. To make room for these three?

Mr. ANDRETTA. The Civil Rights Division is in an awful shape. This is really one of the places in tough shape.

Mr. MARSHALL. These people also work with machinery which is very large and crowds the room.

Mr. ANDRETTA. They have readers which take up a lot of room.

Mr. ROONEY. Is that the equipment mentioned at page 19-4 in the amount of $2,000?

Mr. HOLLORAN. No.

Mr. ROONEY. This is in addition to the microfilming readers?
Mr. ANDRETTA. We already have those.

Mr. ROONEY. This is an automatic matter when you add someone to the payroll. You add this GSA rent you do not need, and the travel you do not need because they will not be in travel status, and also the supplies and equipment. That is about it, is it not?

Mr. ANDRETTA. Yes, sir.

Mr. ROONEY. Thank you very much, gentlemen. We shall meet again at 10 o'clock in the morning.

CRIMINAL DIVISION

TUESDAY, JANUARY 23, 1962.

WITNESSES

H. J. MILLER, JR., ASSISTANT ATTORNEY GENERAL

W. E. FOLEY, FIRST ASSISTANT

H. W. ABELL, ADMINISTRATIVE ASSISTANT

S. A. ANDRETTA, ADMINISTRATIVE ASSISTANT ATTORNEY GENERAL

E. R. BUTTS, CHIEF, BUDGET AND ACCOUNTS OFFICE

J. C. BROWN, ASSISTANT CHIEF, BUDGET AND ACCOUNTS OFFICE

Mr. ROONEY. The committee will please come to order.

The first item with which we shall concern ourselves this morning is for the Criminal Division, which is part of the overall appropriation, "Salaries and expenses, general legal activities, Department of Justice."

The details are to be found under tab 14 in the justifications book. It appears that the request is in the amount $3.1 million, which would be an increase of $629,000 over the amount appropriated to date in the current fiscal year.

We shall insert at this point in the record pages 14-1 through 14–50. (The pages follow:)

Appropriation, 1962--
Estimate, 1963-

Increase_.

AMOUNT REQUESTED

$2,471, 000 3, 100, 000

629, 000

The Criminal Division requests an appropriation of $3,100,000 to continue the stepped-up program in the organized crime field and to meet new responsibilities as the result of recent legislation increasing the scope of the Division's activities. This represents a net increase of $629,000 as follows:

Maintenance of currently authorized staff at higher average employment level to handle increased workload:

Salaries__--

Personnel benefits.

Nonrecurring provision for rent (to be budgeted for by GSA in 1963).

Net increase___.

30, 900

285, 900 21, 500 60,000 33, 000 9,000

17, 600

427, 000

169, 000

42, 600

2,500

45, 100

-43, 000

629, 000

GENERAL STATEMENT

The Assistant Attorney General in charge of the Criminal Division has general supervisory responsibility over the enforcement of Federal criminal laws, with the principal exception of the antitrust and tax laws, and directs the Federal enforcement effort against organized crime in the United States. Thus, the Criminal Division has general direction and supervision over the States attorneys with respect to the conduct of criminal prosecutions involving violations of more than 900 Federal statutes covering approximately 2,800 sections of the United States Code.

To implement these responsibilities during fiscal year 1962 the Criminal Division has been authorized 247 positions, 146 attorneys and 101 nonprofessional employees, organized into 5 principal sections. These sections, whose duties will be detailed below, are the Organized Crime and Racketeering Section, the Administrative Regulations Section, the Appeals and Research Section, the Fraud Section, and the General Crimes Section. In addition, there is a Trial Staff and the necessary executive and administrative personnel to supervise and service the Division.

In light of the increased workload reviewed in the subsequent portion of the request, the Criminal Division requests that 280 positions be authorized, consisting of 174 attorney positions and 106 nonprofessional staff. This represents an increase of 28 attorneys and 5 nonprofessionals. The additional legal personnel is necessary primarily to discharge the complex and significant responsibilities assumed by the Federal Government in recent months in the organized crime field and to implement new legislation increasing the scope of the activities of the Criminal Division.

Another significant increase requested for fiscal year 1963 is the expenditure for travel. This is necessitated entirely by the travel undertaken in pursuance of the organized crime and racketeering program. Experience has clearly demonstrated that in order to maintain effective liaison with and direction of investigators engaged in the comprehensive investigations of organized criminal activities in specific localities, frequent personal direction by the attorneys charged with responsibility in the particular areas is essential. In many instances these attorneys are required to conduct grand jury proceedings in conjunction with the investigation. As a result, travel expenditures have been increasing and if the program is to achieve the desired results, the present travel expenditures will not only continue but increase during fiscal year 1963. This will be particularly true when the trial stages of cases now in progress are reached. Although it is hoped that wherever possible, U.S. attorneys will be able to try the cases now being developed, there will undoubtedly be many instances in which assistance will be required from the attorneys who have developed the cases. During the first 5 months of fiscal year 1961 travel for organized crime purposes has approximated $13,700 per month. Travel expenditures for organized crime represent 91.6 percent of all travel expenditures of the Criminal Division. It is believed that the full amount requested for fiscal year 1963 will be essential for the continued expansion of this program.

ORGANIZED CRIME AND RACKETEERING SECTION

The Organized Crime and Racketeering Section of the Criminal Division is the prinicpal vehicle through which the Federal Government is seeking to curtail the activities of interstate criminal syndicates.

As of December 15, 1961, 54 attorneys were assigned to the Organized Crime and Racketeering Section, including a Section Chief, Deputy Chief, and executive assistant. This represents an increase from a professional staff of 23 attorneys during fiscal year 1961 as authorized by supplemental funds furnished by the Congress. Of the attorneys assigned to the Section, 14 attorneys have been assigned to the analysis, preparation and trial of cases in the labor-management field. In the key areas of New York, Chicago, and Los Angeles, permanent units have been maintained in the U.S. attorneys' offices to lead antiracketeering efforts in those cities. The salaries and expenses of the staffs in the New York and Los Angeles offices are paid from the funds appropriated to maintain the U.S. attorneys' offices, whereas the personnel of the Chicago staff is paid from the funds appropriated to the Criminal Division.

The remaining attorneys in the Section are primarily engaged in the evaluation of evidence developed by the diverse Federal investigative agencies pertaining to leading racketeers or aggravated criminal situations. Experience has

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indicated that Section attorneys are more productive when assigned responsibility for following all phases of specified investigations. Section attorneys analyze reports from all the concerned investigative agencies, suggesting further investigation where allegations indicating possible Federal violations are disclosed, and conduct appropriate grand jury proceedings. Under this plan of operation the attorneys are in the field at frequent intervals where they become closely familiar with the racketeering situation under investigation, as well as maintaining close liaison with the agents and investigators working on the cases and, where feasible, with State and local enforcement officers.

Investigations currently in progress under the coordination of the Organized Crime and Racketeering Section pertain to potential violations of numerous Federal statutes. The subtle complexity of much of the criminal activity under investigation often requires the expenditure of considerable time on a single investigation. For example, in one large Midwestern city investigation of some undocumented allegations regarding a few seemingly isolated racket violations yielded evidence of tightly organized criminal activity throughout the city. Further extensive investigation in preparation for grand jury presentation occupied one Section attorney on the scene for approximately 8 months. In other areas, initial allegations relating to notorious rackets figures have disintegrated upon Section investigation but have yielded substantial evidence of public corruption which must necessarily be pursued vigorously.

During fiscal year 1961, attorneys of this Section have, in the course of supervising these investigations, spent 2,469 days in the field. In that period court actions accounted for 372 man-days; grand jury investigations accounted for 553 man-days.

Court actions supervised by the Section during recent months included the 8-week trial of Frank Carbo and associates for conspiracy to violate the Hobbs Act, and contempt proceedings for the failure to honor subpenas issued by officials of the Internal Revenue Service and the Labor Department concerned with investigations of racketeer cases being coordinated by attorneys of this Section. A pending grand jury investigation into organized criminal activity in the Newport, Ky., area resulted early in the proceedings in the indictment for perjury of three witnesses subpenaed to appear before the grand jury and has stimulated extensive State action directed at criminal activity and public corruption in Newport. In New Orleans an indictment was returned against Sam DiPiazza and 12 other gamblers and associates charging conspiracy to defraud the United States stemming from the securing of free unauthorized long-distance telephone service.

Intensified investigation into potential violations of the labor statutes has been undertaken by Section attorneys. Matters have been presented to Federal grand juries in 16 cities throughout the country. In the 8 months prior to December 15, 1961, 14 indictments have been returned against individuals charged with violations of the labor laws and related offenses, including indictments against Thomas Keegan, powerful Teamster business agent in Chicago, for accepting money in violation of the Taft-Hartley Act, and against Edward J. Donovan and Ralph J. McLaughlin, officials of a Teamster local in Chicago, also charged with similar violation. Two lengthy proceedings, the Dranow case in Minneapolis involving 51 days in court and the Hucks case in Washington involving 42 days in court, resulted in the convictions of three individuals.

In all these investigations and prosecutions the attorneys coordinate their activities with the U.S. attorneys. Maximum emphasis has been placed on obtaining the full participation of U.S. attorneys or their designated assistants in the investigations into syndicated criminal activities in the territory under the jurisdiction of the U.S. attorney. In many instances Section attorneys have presented cases to the grand jury or assisted in the trial of important cases at the request of the responsible U.S. attorney.

In addition to participating actively in these diverse investigations and prosecutions, the Organized Crime and Racketeering Section maintains supervisory jurisdiction over statutory violations involving areas often related to organized criminal activity. Illustrative violations are the following: narcotics, liquor, wagering tax, lotteries, Hobbs Act, and Slot Machine Act. In each of these areas investigative reports are referred by the agencies directly to the U.S. attorneys, who are instructed to inform the Section when any case suggests the involvement of a syndicated operation extending beyond the confines of a single judicial district or State. Alleged violations of the Labor-Management Reporting and Disclosure Act of 1959 are now processed in similar fashion, in accordance with