REGULATING SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES OF CIVILIAN OFFICERS AND EMPLOYEES OF THE GOVERNMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R000400130001-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 53
• Document Creation Date: December 20, 2016
• Document Release Date: September 10, 2001
• Sequence Number: 1
• Publication Date: April 5, 1949
• Content Type: REGULATION

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81sT CONGRESS HOUSE OF REPRESENTATIVES I REPORT
1st Session No. 389
REGULATING SUBSISTENCE EXPENSES AND MILEAGE
ALLOWANCES OF CIVILIAN OFFICERS AND EMPLOYEES
OF THE GOVERNMENT
ArniL 5, 1949.-Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed
Mr. DAWSON, from the Committee on Expenditures in the Executive
Departments, submitted the following
REPORT
The Committee on Expenditures in the Executive Departments to
whom was referred the bill (H. R. 3005) to regulate subsistence ex-
penses and mileage allowances of civilian officers and employees of the
Government, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Page 2, line 18, strike out "$10" and insert in lieu, "$9".
The principal effect of the bill is to raise from $6 to a maximum of
$9 the per diem allowance to Government employees traveling on
official business away from their designated posts of duty.
Your committee feeling that an allowance of $9 per day will prove
adequate in most cases, under normal travel conditions, therefore
amended the bill for that amount. It is believed to be a conservative
but fair figure for maximum allowable travel costs.
The $9 per diem allowance provided for in the bill, as amended,
is not an absolute figure, but is a maximum which is to be allowed only
when the conditions of travel justify the expectation that it will be
required to reimburse the traveler for his actual out-of-pocket expenses.
Testimony before your committee indicated that it is the practice to
provide in travel orders for a per diem allowance below the maximum
whenever feasible, and the existing regulation requires that adminis-
trative officers exercise care to authorize only such per diem rates
H. Rest. 389, 81-1--1
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2 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
(within the maximum fixed by law) as are justified by the nature of
the travel in each instance.
A report was requested from the Bureau of the Budget on H. R.
3005 and that Department recommended favorable action on the $10
per diem, the amount contained in the bill as introduced, based upon
increased costs of subsistence items occurring since its prior survey
made in the latter part of 1946. The Bureau reports that the prin-
cipal item of increase is in cost of hotel accommodations, which rose
sharply within a few months after price controls were removed in
1.946 from an average of $4.05 per day to an average of more than
$5.25. Prices of meals in hotels and restaurants and on trains have
also increased, and records of the Bureau of Labor Statistics indicate *Not
rises of 8 percent and 9 percent, respectively, for laundry and dry-
cleaning costs.
The recommendation of the Bureau of the Budget contemplated
that a $10 per diem allowance would be distributed approximately as
follows: Hotel accommodations, $5.25; meals, $3.75; and incidental
expenses, $1. Under present regulations the traveler must provide
under the head of "incidental expenses" all fees and tips to porters,
stewards, waiters, etc., as well as laundry, dry cleaning, telegrams
reserving further hotel accommodations, and local transportation
within a city between his place of lodging and his duty station at the
beginning and end of each day's work.
The Bureau of the Budget also submitted data indicating that the
average amount paid by States for subsistence expenses is $8.91 per
day, upon the basis of a survey of State employment security agencies.
Actual limitations established by the agencies vary from $6.50 per day
to $14 per day with provision in some States that top officials may re-
ceive from $1 to $3 per day in excess of the rate provided for other
employees. Of the figures included in this survey, slightly more than
one-half were based upon State law or regulation, while others were
established by agreement between the State agency and the Federal
Bureau of Employment Security upon a showing that the rate re-
quested by the State agency was not in excess of that paid in other
agencies of the State concerned. The data submitted also indicates
that the average cost of subsistence for employees in a representative
group of 135 companies in 22 different industries is $10.42 per day.
(See charts in appendix, p. 13.)
In addition to testimony and data supplied by the Bureau of the
Budget, your committee heard representatives of the Civil Service
Commission, the Departments of Agriculture, Commerce, Interior,
Justice, Labor, Post Office, and Treasury. The testimony of these
witnesses contains numerous examples of actual cases in which
employees, particularly those required to visit large cities under
crowded conditions, actually have been required to spend amounts
considerably in excess of $10 per day for lodging and meals. Your
committee also heard testimony from various employee unions to the
same effect.
The testimony and supporting data presented served to demonstrate
conclusively that the present maximum subsistence allowance of $6
per day is substantially below the actual average cost to a traveler for
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lodging, meals, and other necessary incidental expenses. It shows
that the Federal Government does not provide reimbursement to its
employees in proportion to that allowed State employees and those in
private industry.
Data furnished by the Bureau of the Budget in justification of
the increase from 5 to 7 cents in mileage allowance for use of privately
owned automobiles by employees on official business is based on the
following: Bureau of the Budget study, 7.23 cents per mile; report of
the American Automobile Association, based on data submitted by a.
firm of cost-accounting engineers, 834 cents per mile for a postwar car
and just over 7 cents per mile for a prewar car; and average payments
by State agencies of 6 cents (including a minimum of 444 cents and a
maximum of 8 cents). Your committee feels that there is no question
but that the 7-cent figure is required to adequately reimburse the,
traveler for expenses of operation of a privately owned automobile.
Data submitted by the Bureau of the Budget indicate that the
maximum cost of the bill, as amended, would be $52,800,000 per year,
based upon total estimated cost for civilian travel of $151,000,000 for
the fiscal year 1949. Of that total, slightly more than 54 percent
would be chargeable to the per diem for subsistence, or approximately
$40,800,000, while almost 20 percent or $12,000,000 would be required
for the increased automobile mileage allowance. Again, the estimate
of $52,800,000 is a maximum, and the actual expenditures under the
bill would be less than the maximum to whatever extent travel orders
authorize rates below the maximum.
Your committee was concerned over testimony to the effect that
travelers frequently remain in one place for extended periods and draw
the full per diem allowance each (lay for several months, It is under-
stood, however, that the practice in many agencies is to reduce the
per diem allowance periodically during an extended stay in one place,
and the committee expects that this practice will be continued and
extended under the increased maximum per diem provided for in
H. R. 3005. It is expected that the Bureau of the Budget in drafting
its regulations will require specific attention to this feature by adminis-
trative officers.
A significant feature of the bill is its comprehensiveness. At the
present time the principal items of the bill, namely, per diem allow-
ances, and mileage for use of privately owned automobiles are covered
by separate general laws and. by a variety of special laws, applicable
to specified groups, which have produced unwarranted discriminations
and inequities. It is believed that the embodiment in a single bill,
as in H. R. 3005, of provisions covering subsistence, mileage for use
of privately owned automobiles, and traveling expenses generally of
Government officers and employees, together with the related factors
of advance of funds and regulatory powers, constitutes a more realistic
approach to the problems of official travel than taken heretofore and
will not only serve to reduce the possibility of inequities but also
should materially simplify the administration and audit of travel
accounts.
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The bill continues authority to allow higher rates of per diem for
travel abroad. The committee recognizes the impracticability of set-
ting a per diem rate ceiling for foreign travel and concurs in the state-
ment in the Senate committee report on S. 544, Eightieth Congress,
which contained a similar provision, that---
Due to fluctuating prices and international rates of exchange, it is impossible to
establish flat rates which would for very long render justice to the traveler.
With respect to travel outside of the continental. United States,
section 4 of the act of August 2, 1946 (60 Stat. 808), provided that
until June 30, 1948, when authorized in an appropriation or other
act, money available for travel expenses could be paid, without regard
to the Subsistence Expense Act of 1926, as amended, at a sum for
per diem as determined by the head of the department, concerned, but
not to exceed the maximum fixed by Presidential regulations for the
locality in which the travel was performed. The only available Gov-
ernmcnt travel regulations _(as amended, January 30, 1942) show the
per diem for foreign travel to be $7. The present rates vary from $6
per day in countries such as Australia and Creenland to $18 per day
in countries such as Lithuania and Estonia.
Section 1. Short title. --"Travel Expense Act of 1949."
Section 2. Definitions, coverage, and exemptions.- --This section defines
the term "departments and establishments" as well as the terms
"subsistence" and "per diem allowance" and specifies the exemptions
from the provisions of the bill.
The bill embraces not only the executive branch of the Government
(including the postal service), but the judicial and legislative branches
as well. The inclusion of the judicial and legislative branches would
assure uniformity in the Federal service with respect to reimburse-
ment for travel expenses incurred. The coverage of judicial employees
will operate in. part to displace 28 United States Code 962, which em-
powers the Director of the Administrative Office of tlLe United. States
Courts to promulgate regulations covering travel and subsistence ex-
penses of officers and employees of the courts of the United States and
of the Administrative Office of the United States Courts. Traveling
expenses of justices and judges themselves will be controlled by the
provisions of this bill, except section 3, below. The provisions of
28 United States Code 456, authorizing allowances of "necessary
traveling expenses" to judges and justices will be modified to the
extent to any inconsistency or conflict with the provisions of this bill.
The Director of the Administrative Office of the United States Courts
has expressed the view that the inclusion of judicial employees in
this bill is most desirable. As for the legislative branch, Members
of Congress and offices and committees of the Senate and House of
Representatives are exempted from the bill.
Section 3. Per diem allowances.-The maximum per diem allowance
for travel within the limits of the continental United States is to be
raised from $6 to $9 in recognition of the substantial increase in
subsistence costs since January 30, 1942, the date of the last amend-
ment to the Subsistence Expense Act of 1926. It is to be rioted that
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 5
the bill sets $9 as a maximum. only and does not require that it be
allowed in all cases. The rate to be authorized in individual instances
is for departmental determination, according to the circumstances,
but in no event may it exceed the statutory maximum.
The bill would reenact present statutory language which has been
held to require the bona fide designation of the true headquarters or
post of duty, for service away from which a subsistence "per diem"
can be paid. It does not permit the designation of a fictitious post of
duty, at which no services are to be performed, solely for the purpose of
paying a per diem. Fidelity and Deposit Company of Maryland v.
United States ((CCA) 55 Fed. (2d) 100; 19 Comp. Gen. 347; 27 id. 657).
Justices and judges are exempted from this section of the bill and
payment of subsistence expenses to them still will be controlled by the
provision of 28 United States Code 456 authorizing allowances of
"reasonable maintenance expenses actually incurred, not exceeding
$10 per day."
Section 4. 41ileage.-The present law authorizes mileage to be paid
for the use of a private car either for local driving at the employee's
station or for trips away from that point. In the former case the
maximum rate is 4 cents, and in the latter, 5 cents. This section of the
bill would allow the same maximum rate in either case, and would
raise the maximum rate to 7 cents. For private motorcycles, the pro-
posed rate change is from 2 to 4 cents and for private airplanes from
5 to 7 cents. The 7-cent rate for auto travel restores the rate which
was in effect under the original act of 1931, until its amendment in
1933. Also, it is consistent with Public Law 673, approved last June,
which allows 7 cents per mile for the auto travel of United States
marshals and their deputies, also Public Law 900 of July 3, 1948,
which authorizes 7 cents mileage to rural mail carriers.
Mileage may not be allowed under the current law except where it
be determined that the use of a private car, motorcycle, or airplane
is more advantageous to the Government. That requirement is
retained in the proposed legislation, except that a specific determina-
tion of advantage will not be required where payment on a mileage
basis is limited to the cost of travel by common carrier.
Section 5. Travel advances.-Administrative officials have doubted
their authority to attempt recovery by deduction from salary of travel
advances not otherwise fully accounted for. Also, Treasury regulations
under the present law require a bond in all cases in which a travel
is made. It is felt that by perfecting the means of recovery of ad-
vances made, it will be possible to omit the bond requirement, under
normal circumstances, with its accompanying burden on the employee
who pays the premium.
Section 6. Regulations.-This section vests the Director of the
Bureau of the Budget with authority to prescribe regulations covering
mileage and per diem. allowances, reimbursement of travel expenses,
and travel advances, and recovery thereof. This will centralize that
function, now performed in part by the Bureau (with the concurrence
of the President) and in the Treasury (with respect to travel advances).
Reference in this section to the Travel Expense Act of 1875, which
limits payment of travel expenses generally to the actual expenses
incurred, is made solely for the purpose of dispelling any existing doubt
as to the legality of coverage by regulation of travel expenses as a
whole. It places no new duties upon the Bureau of the Budget.
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Section 7. Travel acts not affected.----It is provided that the bill shall
not modify or repeal any act providing for traveling expenses of the
President of the United States, President of the Senate, of Senators,
Representatives, Delegates, and Resident Commissior,ers. With re-
spect to the President, the language is identical to that now contained
in section 10 of the Subsistence Expense Act of 1926.
Section S. Inconsistent acts repealed.--(a) The adoption of this sec-
tion will repeal the Subsistence Expense Act of 1926, the Auto Mile-
age Act of 1931, and will modify all other acts, general or special,
covering the type of expenses and allowances embraced by this bill,
including those acts authorizing travel without regard to the Sub-
sistence Expense Act of 1926 and/or the Standardized Government
Travel Regulations, and those authorizing reimbursement of actual
and necessary expenses, and those using similar language, except as
noted below, but only to the extent of inconsistency or conflict with
its provisions. A similar repeal clause is found in section 9 of the
Subsistence Expense. Act of 1926. However, appropriation items for
examination of estimates in the field and inconsistent provisions now
contained in appropriation acts for the fiscal year 1949, and .any similar
provisions which may be contained in appropriation acts presently
being considered for the fiscal year 1950, will be retained. This will
preserve certain existing exceptions to the general travel expense laws
until the respective committees on appropriations shall have had an
opportunity to consider whether such exceptions are necessary or de-
sirable under those laws as changed in the bill. This section is not
designed to disturb or affect certain special travel provisions of the
Foreign Service Act of 1946 or section 1 of the Administrative Expense
Act of 1946, Public Law 600.
(b) Section 8 (b) provides that the rates prescribed in this bill
shall apply in those cases where the law now or hereafter authorizes
payment, of per diem allowances to officers and employees in any
branch or establishment :not covered by this act, in accordance with
the rates provided in the Subsistence Expense Act of 1926.
Section 9. Effective date.-The effective date of the bill is postponed
until the 30th day after its enactment for the purpose of allowing time
for the promulgation of the regulations required thereunder.
Prior to 1932, the per diem allowance in lieu of expenses for sub-
sistence was $6 per day within the continental United States and $7
per day beyond the continental limits. Subsistence Expense Act of
1926, sections 3, 6, 44 Stat. 689. The Economy Act of June 30, 1932,
47 Stat. 405, lowered these figures to $5 and $6, respectively. This
reduction occurred at a time when economic conditions generally
throughout the country had reduced the cost of living to a point where
a permanent decrease in subsistence allowances was warranted. In
1942, by the act of January 30, 1942, 56 Stat. 39, the original figures
were restored. In this connection, the Bureau of the Budget stated
(as contained in H. Rept. No. 954 on H. R.. 6220, 77th Cong., 2(l sess.
(1942) 2):
This permanent reduction of allowances now appears to be highly inequitable
in the light of the very greatly increased living costs which have come about as a
result of war conditions. The Bureau of the Budget has secured information from
the Federal Security Agency, The Federal Works Agency, the J-)epartment of
Labor, and numerous independent establishments which indicates tht persons
traveling on official business for the Government are meeting with increases in
charges for hotel rooms which are, on an average, 25 percent higher than the rates
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 7
prevailing a year ago. In towns which are engaged in defense production, the
rates are sometimes as much as 1.00 percent higher than a year ago. Furthermore,
the cost of meals has increased from 20 to 25 percent.
With regard to the increased cost of living since the passage of the
1942 act, the statistics of the Bureau of Labor Statistics are relevant.
These statistics include a figure popularly called the consumer cost-of-
living index. This index is an all-items figure; that is, it represents a
compound figure based on the wholesale commodities index and. other
similar separate indices for particular goods or services. The index
is based upon the years 1.935-39 as representing 100 percent. On
this basis, the consumer's cost-of-living index for December 15, 1941,
was given as 110.5 percent and for December 15, 1948, as 171.4 per-
th
i
e
n
cent. This represents approximately a 55-percent increase
cost of living since the end of 1941. The proposed $9 figure for per
diem is only slightly higher than a 55-percent increase of the present $6
allowed, and thus correctly reflects the increased cost of living since
the passage of the act of January 30, 1942.
Your committee feels that for the foregoing reasons H. R. 3005
should be enacted into law in order to relieve an inequity which has
existed for several years.
Attached hereto and made a part of this report are reports from the
Bureau of the Budget and the Comptroller General. The appendix
contains supporting statements and exhibits.
In compliance with paragraph 2a of rule XIII of the Rules of the
House of Representatives, changes in existing law made by this bill
are shown as follows (existing law proposed to be omitted is enclosed
in black brackets, new matter is printed in italics, existing law in
which no change is proposed is shown in roman) :
Sac. 1. [of the Subsistence Expense Act of 1926 (Act of June 3, 1926, 44 Stat.
688; 5 U. S. C. 821)] To regulate subsistence expenses and mileage allowances of
civilian officers and employees of the Government.
f 1926"
]
A
t
E
"
.
o
xpense
c
Subsistence
That this Act may be cited as the [
"Travel Expense Act of 191P."
Sac. 2. When used in this Act-
(1) The term "departments and establishments" means (A) any executive
department, independent commission, board, bureau, office, agency, or other
establishment, including wholly owned Government corporations and the municipal
government of the District of Columbia[.], and (B) any once, agency, or other
establishment in the legislative branch of the Government (except Members of Congress
and offices and committees of the Senate and the House of Representatives), and (C)
any once, agency, or other establishment in the judicial branch of the Government.
(2) The term "subsistence" means lodging, meals, and other necessary expenses
incidental to the personal sustenance or comfort of the traveler.
[The term "actual expenses" means the actual amounts necessarily expended
by the traveler for subsistence and itemized in accounts for reimbursement.]
(3) The term "per diem allowance" means it daily flat rate of payment in lieu
of actual expenses.
Si, c. 3. Civilian officers and employees of the departments and establishments
(except justices and judges), while traveling on official business and away from
their designated posts of duty, shall be allowed, in lieu of their actual expenses for
subsistence and all fees or tips to porters and stewards, a per diem allowance to
be prescribed by the [heads of the de artments and establishments) department
or establishment concerned [at a rate, not to exceed the rate of $9 C$6] within
the limits of the continental United States [, ] and [not to exceed an average
of $7 beyond the limits of the continental United States.] in case of travel beyond
the limits of the continental United States not to exceed rates established by the Director
of the Bureau of the Budget for the locality in which the travel is performed.
[Appropriations for the executive departments and independent establishments
for the fiscal year 1949 available for travel expenses shall be available for the
payment of per diem allowances in lieu of subsistence expenses without regard
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
to the Subsistence Expense Act of 1926, as amended (5 U. S. C. 821-833), to
civilian officers and employees of such departments and establishments while
traveling on official business outside the continental limits of the United States
and away from their designated posts of duty: Provided, That the amount of such
allowances shall be deter-dined by the head of the department or independent
establishment concerned or by such official as he may designate for the purpose,
but shall, in no case, notwithstanding any other provision of law, exceed the
maximum established by regulations prescribed by the President for the locality
in which the travel is performed.]
Snc. 4. Civilian officers or employees of departments and establishments or others
rendering service to the (iovernment shall, under regulations prescribed by the
[President, and unless otherwise provided in the appropriation concerned or other
law,] Director of the Bureau, of the Budget, and whenever such mode of transporta-
tion is authorized or approved as mcre advantageous to the Government (except
that no determination of advantage is required where payment on a mileage basis is
limited to the cost of travel by common carrier, including per diem, be paid in lieu of
actual expenses of transportation not to exceed [2] 4 cents per mile for the use
of privately owned motorcycles or [5] 7 cents per mile for the use of privately
owned automobiles or airplanes,] when engaged [in necessary travel] on official
[trips from] business within or outside their designated posts of duty or places of
service.], or 2 cents per mile for the use of privately owned motorcycles or 4 cents
per mile for the use of privately owned automobiles when used on official business
wholly within the limits of their official stations or places of service.] In addition
to the mileage allowances provided for in. this section there may be allowed reim-
bursement for the actual cost of ferry fares, and bridge, road, and tunnel tolls.
SEC. [8] 5. The [heads of] departments and establishment,, [, under regula-
tions which shall be prescribed by the Secretary of the Treasury or the protection
of the United States,] may advance
through the proper disbursin
officers [from
,
g
applicable appropriations] to any person entitled to [actual expenses or] per
diem or mileage, allowances [allowance] under this Act, such sums as may be
deemed advisable considering the character and probable duration of the travel
to be performed. Any sums so advanced and not used for allowable travel expense
shall be [recovered] recoverable by set-off or salary due, retirement credit, or other-
wise, from the person to whom advanced, or his estate, by deduction from any
amount due from the United States, or by such other legal method of recovery as
may be necessary.
SEC. [7] 6. The fixing and payment [, under section 3, of per diem allowance,
or portions thereof, shall be in accordance with regulations which shall be promul-
gated by the heads of departments and establishments and which shall be stand-
ardized as far as practicable and shall not be effective until approved by the
President of the United States.] under this Act of travel allowances, of advances and
recovery thereof, and reimbursement of travel expenses under the Act of March 8, 1875
(5 U. S. C. 73), shall be in accordance with regulations which shall be promulgated by
the Director of the Bureau of the Budget.
SEC. [10] 7. This Act shall not be construed to modify or repeal [the] any
Act providing for the traveling expenses of the President of the United States
for any Acts (including appropriations for the fiscal year 1927) specifically fixing
or permitting mileage rates for travel and/or subsistence expens-ss.], President of
the Senate, of Senators, Representatives, Delegates, and Resident Commissioners.
SEC. [9] 8. (a) The Subsistence Expense Act of 1926 and the Auto Mileage Act
of February 14, 1931, are repealed. All [laws or parts of laws] Acts (other than
the Act of March 3, 1875, 5 ft. S. C. 73), and appropriation items for reimbursement
of actual travel or transportation expense; and all other Acts, general or special,
which are inconsistent, with or in conflict with the provisions of this Act (except
such [laws] Acts or parts of [law] Acts as [specifically] fix or [now] permit
rates higher than the maximum rates established [in] under this Act) are hereby
[repealed or] modified, but only to the extent of [stich] inconsistency or
conflict[.] with the provisions of this Act: Provided, however, That Acts making
appropriations for the fiscal years 1949 and 1950 (whether approved before or after
the approval of this Act) which authorize or permit, in either general or specific
terms, the payment of travel or transportation expenses without regard to the Sub-
sistence Expense Act of 1926, as amended, or the Standardized Government Travel
Regulations, shall be construed to authorize payment of such expenses from the appro-
priation eon.eerned without regard to this Act.
[SEC. 11] (b) Wherever provision is made in any law for the payment of [This
Act shall not be construed to modify or repeal the] per diem [travel] allowances
[granted railway postal clerks, acting railway postal clerks, and substitute
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
railway postal clerks in section 7, title I, of the Act approved February 28, 1.925
(Forty-third Statues, p. 1062).] to officers and employees in any branch or establish-
ment of the Government not covered by this Act, in accordance with the rates provided
in the Subsistence Expense Act of 1926, such law is hereby amended to provide for
payment at the rates prescribed in or under this Act.
SEC. [13] 9. This Act; shall take effect on [July 1, 1926, but any increases
deemed necessary to be made in the rates of actual expenses or per diem allow-
ances under the authority of this Act shall not be authorized by heads of depart-
ments and establishments to the extent of incurring a deficiency in appropriations
available for the payment thereof during the fiscal year 1927.] the thirtieth day
after the date of its enactment.
EXECUTIVE OFFICE OF TIIE PRESIDENT,
BUREAU OF THE BUDGET,
Iion. WILLIAM L. DAWSON, Washington 25, D. C., March 17, 1949.
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, Washington 25, D. C.
M DEAR MR. DAWSON: This is in reply to the informal request of your com-
mittee for the views of the Bureau on 11. R. 3005, a bill to regulate subsistence
expenses and mileage allowances of civilian officers and employees of the Gov-
ernment.
As indicated by the short title provided for in section 1, the Travel Expense
Act of 1949, the bill would bring together in one act various provisions now
contained in separate laws providing for travel expenses of certain officers and
employees of the Government. The coverage of the bill, as outlined in sec-
tion 2, would include officers and employees of the executive, legislative, and
judicial branches, as well as those of the municipal government of the District of
Columbia. However, Members of Congress and offices and committees of the
Senate and House of Representatives would be specifically excluded by section
2, and section 7 would provide that the act should not be construed to modify
or repeal any act providing for travel expenses of the President of the United
States, the President of the Senate, or Senators, Representatives, Delegates, and
Resident Commissioners. Justice and judges, for whom per diem allowances
are provided by other laws, would be excluded from the provisions of section 3.
Section 3 would raise from $6 to $10 the maximum amount which may be
prescribed as a per diem allowance in lieu of actual expenses of subsistence of
Government personnel traveling away from their designated posts of duty. As
stated in the Bureau's letter of January 27, 1949, in response to your request for a
report on H. It. 828, the desirability of an adjustment of subsistence allowances
has become increasingly apparent and a maximum of $10 per diem is believed to be
fair and adequate in the light of current living costs. Section 3 of the bill embodies
substantially the suggestions contained in the above-mentioned letter of January
27, 1949, regarding certain technical aspects of the allowance.
Section 4 would increase from 5 to 7 cents per mile the maximum allowance for
use of privately owned automobiles or airplanes on official business, and would
increase from 2 to 4 cents per mile the maximum rate for use of privately owned
motorcycles. The principal feature of this section is the return to the 7-
cent-per-mile rate for the use of privately owned automobiles which was Originally estab-
lished in 1931, but which was reduced to 5 cents in 1933. It seems obvious that
present costs of operation justify a rate higher than was necessary in 1933, and the
7-cent rate is consistent with legislation enacted during the last Congress which
fixed such a rate for the use of automobiles by United States marshals (Public
Law 673, approved June 19, 1948) and rural mail carriers (Public Law 900,
approved July 3, 1948). The 7-cent rate would apply to travel both within
and without the limits of an employee's official station, thus removing the disc
tinction which exists between the present rates for travel within the limits of an
official station (4 cents per mile) and beyond the limits (5 cents per mile). The
removal of the distinction is desirable inasmuch as it is not supported by any
difference in operating costs to the employee.
Section 5 would permit advances to persons entitled to mileage or per diem
allowances under the act. The provision that any such advances not used for
allowable travel expenses should be recoverable by set-off against salary, retire-
ment credit, or otherwise, presumably is intended to make unnecessary the fur-
nishing of bond by employees to whom such advances are made. This section
II. Rept. 389, 81-1-2
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10 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
would remove any doubt that adequate remedies are available to the United
States for recovery of such advances, and the elimination of the requirement for a
bond would do away with considerable unnecessary paper work and expense to
the employees concerned. The section is sufficiently broad to permit the requiring
of bonds in those few cases where a bond might be necessary or desirable.
Section 6 would provide for issuance of regulations by the Director of the
Bureau of the Budget for the fixing and payment of travel allowances and advances
under the bill, and for reimbursement of actual travel expenses under the act of
March 3, 1875 (5 U. S. C. 73). This section would not increase the present duties
of the Bureau of the Budget except with respect to the prescribing of regulations
for advances, a function which is now in the Treasury Department. The cen-
tralization of authority to prescribe regulations for matters of this nature is
believed to be desirable.
In general, it is believed that the rates provided for in H. R. 3005 are equitable,
and that the technical features of the bill provide the basis for a constructive
approach to the problem of consolidating and simplifying laws and regulations
relating to reimbursement for official travel. Consequently, the Bureau of the
Budget recommends favorable action on the bill.
As indicated in the Bureau's above-mentioned letter of January 27, 1949,
appropriations for the fiscal year 1949 and budget estimates for the fiscal year
1950 were prepared on the basis of the present maximum of $6 per diem for ex-
penses in lieu of subsistence. Also, such appropriations and estimates were
based on allowances of 4 cents and 5 cents per mile for travel by privately owned
automobile within and without the limits of official stations. Since section 9
would make the bill effective on the thirtieth day after the date of its enactment,
additional appropriations likely would be required for the current fiscal year if
the bill were enacted before June 1949, and additional appropriations would be
required for the fiscal year 1950 if the bill were enacted during the present session
of the Congress.
Sincerely yours,
F. J. LAWTON, Acting Director.
COMPTROLLER GENERAL OF T
Washington, HE UNITED STATES,
Hon. WILLIAM L. DAWSON,
Chairman, Committee on Expenditures in the Executive Departments,
11ouse of Representatives.
My DEAR MR. CHAIRMAN: In response to the informal request of your com-
mittee, there are set forth herein my comments on H. R. 3005, Eighty-first
Congress, entitled "A bill to regulate subsistence expenses and mileage allowances
of civilian officers and employees of the Government," which bill, inter alia,
retains all of the essential and desirable provisions of H. R. 828 and S. 352,
Eighty-first Congress, covering the same subject matter.
In my report of January 28, 1949, B-5019, to you, on H. It. 828, I suggested
that several changes be made in that bill. The instant bill satisfies each of the
objections expressed by me in the above-mentioned report, and, if enacted into
law, will be a notable stop forward in that it will to a great extent equalize the
reimbursement rights of Government employees for traveling expenses incurred
on official business. Accordingly, I recommend favorable consideration of the
bill H. It. 3005.
A copy of General Accounting Office draft of explanation by sections for travel
expense bill, H. R. 3005, is enclosed herewith in accordance with your committee's
informal request.
Sincerely yours, LINDSAY C. ~' WARRE-K
N ,
Comptroller General of the United States.
GENERAL ACCOUNTING OFFICE DRAFT OF EXPLANATION BY SECTIONS FOR
TRAVEI: EXPENSE BILL
Section 1. Short title.-"Travel Expense Act of 1949."
Section 2. Definitions, coverage, and exemptions.-This section defines the term
"departments and establishments" as well as the terms "subsistence" and "per
diem allowance" and specifies the exemptions from the provisions of the bill.
The bill embraces not only the executive branch of the Government (including
the postal service), but the judicial and legislative branches as well. The inclusion
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SUBSISTENCE EXPENSES AND M[LEAGE ALLOWANCES 11
of the judicial and legislative branches would assure uniformity in the Federal
service with respect to reimbursement for travel expenses incurred. The cover-
age of Judicial employees will operate in part to displace 28 United States Code
962, which empowers the Director of the Administrative Office of the United
States Courts to promulgate regulations covering travel and subsistence expenses
of officers and employees of the courts of the United States and of the Adminis-
trative Office of the United States Courts. Traveling expenses of justices and
judges themselves will be controlled by the provisions of this bill, except section 3
below. The provisions of 28 United States Code 456, authorizing allowances of
"necessary traveling expenses" to judges and justices will be modified to the
extent of any inconsistency or conflict with the provisions of this bill. The Di-
rector of the Administrative Office of the United States Courts has expressed the
view that the inclusion of judicial employees in this bill is most desirable. As for
the legislative branch, Members of Congress and offices and committees of the
Senate and House of Representatives are exempted from the bill.
Section 3. Per diem allowances.-The maximum per diem allowance for travel
within the limits of the continental United States is to be raised from $6 to $10 in
recognition of the substantial increase in subsistence costs since January 30 1942,
the date of the last amendment to the Subsistence Expense Act of 1926. it is to
be noted that the bill sets $10 as a maximum only and does not require that it be
allowed in all cases. The rate to be authorized in individual instances is for
departmental determination, according to the circumstances, but in no event may
it exceed the statutory maximum.
The bill would reenact present statutory language which has been held to
require the bona fide designation of the true headquarters or post of duty, for
service away from which a subsistence "per diem" can be paid. It does not permit
the designation of a fictitious post of duty, at which no services are to be per-
formed, solely for the purpose of paying a per diem. Fidelity and Deposit Company
of Maryland v. United States ( (CCA) 55 Fed. (2d) 100; 19 Comp. Gen. 347;
27 id. 657).
Justices and judges are exempted from this section of the bill, and payment of
subsistence expenses to them still will be controlled by the provision of 28 U. S. C.
456 authorizing allowances of "reasonable maintenance expenses actually incurred,
not exceeding $10 per day."
Section 1. Mileage.-The present law authorizes mileage to be paid for the use
of a private car either for local driving at the employee's station or for trips away
from that point. In the former case the maximum rate is 4 cents, and in the
latter, 5 cents. This section of the bill would allow the same maximum rate in
either case, and would raise the maximum rate to 7 cents. For private motor-
cycles, the proposed rate change is from 2 to 4 cents and for private airplanes
from 5 to 7 cents. The 7-cent rate for auto travel restores the rate which was in
effect under the original act of 1931, until its amendment in 1933. Also, it is
consistent with Public Law 673, approved last June, which allows 7 cents per
iwo,o mile for the auto travel of United States marshals and their deputies, also Public
Law 900 of July 3, 1948, which authorizes 7-cent mileage to rural mail carriers.
Mileage may not be allowed under the current law except where it be deter-
mined that the use of a private car, motorcycle, or airplane is more advanta eou
y Section 5. Travel advances.--Administrative officials have doubted their author-
ity to attempt recovery by deduction from salary of travel advances not otherwise
fully accounted for. Also, Treasury regulations under the present law require a
bond in all cases in which a travel advance is made. It is felt that by perfecting
the means of recovery of advances made, it will be possible to omit the bond
requirement, under normal circumstances, with its accompanying burden on the
employee who pays the premium.
Section 6. Regulations.-This section vests the Director of the Bureau of the
Budget with authority to prescribe regulations covering mileage and per diem
allowances, reimbursement of travel expenses, and travel advances, and recovery
thereof. This will centralize that function, now performed in part by the Bureau
(with the concurrence of the President) and in the Treasury (with respect to
travel advances).
Reference in this section to the Travel Expense Act of 1875, which limits pay-
ment of travel expenses generally to the actual expenses incurred, is made solely
for the purpose of dispelling any exi.,ting daubt as to the legality of coverage by
regulation of travel expenses as a whole. It places no new duties upon the
Bureau of the Budget.
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12 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
Section 7. Travel acts not affected.-It is provided that the bill shall not modify
or repeal any act providing for traveling expenses of the President of the United
States, President of the Senate, of Senators, Representatives, Delegates, and
Resident Commissioners. With respect to the President, the language is identical
to that now contained in section 10 of the Subsistence Expense Act of 1926.
Section 8. Inconsistent acts repealed.-(a) The adoption of this section will repeal
the Subsistence Expense Act of 1926, the Auto Mileage Act of 1931, and will
modify all other acts, general or special, covering the type of expenses and allow-
ances embraced by this bill, but only to the extent of inconsistency or conflict with
its provisions. A similar repeal clause is found in section 9 of the Subsistence
Expene?e Act of 1926. However, appropriation items for examination of estimates
in the field and inconsistent provisions now contained in appropriation acts for the
fiscal year 1.949, and any similar provisions which may be contained in appropria-
tion acts presently being considered for the fiscal year 1950, will be retained.
This will preserve certain existing exceptions to the general travel expense laws
until the respective committees on appropriations have an opportunity to consider
whether such exceptions are necessary or desirable under those laws as changed in
the hill. This section is not designed to disturb or affect certain special travel
provisions of the Foreign Service Act of 1946 or section 1 of the Administrative
Expense Act of 1946, Public Law 600.
(b) Section 8 (b) provides that the rates prescribed in this bill shall apply in
those cases where the law now or hereafter authorizes payment of per diem allow-
ances to officers and employees in any branch or establishment not covered by this
act, in accordance with the rates provided in the Subsistence Expense Act of 1926.
Section 9. Effective date.--The effective date of the bill is postponed until the
30th day after its enactment for the purpose of allowing time for the promulgation
of the regulations required thereunder.
oft
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APPENDIX
This teletype message was received by the American Hotel Association March
16, 1949:
MARd 117, 1949.
Harris, Kerr, Forster & Co., states that the 1.948 room average rate based on
over 300 hotels will be approximately $5.60 per room.
Horwath & Horwath states their trend study shows average of $5.27 per room..
Larger metropolitan hotels in New York City, Boston, Chicago, etc., averaging
over $6.
Allowing for factor of double occupancy, Harris, Kerr, Forster recommends
basis for single rate of not less than $5 even and feels that between $5 and $5.50
would be a reasonable allowance for single room.
It must be remembered that allowances at hearings are being fixed for 1949 and
the future and some upward adjustments in hotel rates is still likely. Therefore
the allowance rate should take this factor into account.
Harris, Kerr, Forster and Horwath & Horwath both agree on this last paragraph.
Exssiurr A.-State Employment Security Agency maximum per diem or subsistence
rates for interstate travel
Existing maxi-
mum rates
Actual
expense
Per
diem
Alabama:
Others
$9.00
-
-----------------
Director
-
10.00
}Agreement.
-
-
Alaska------------------------
--------
State statute.
Arizona -------------------------
10.00
Do.
Arkansas:
Others
9.00
----------------------
Administrator______________
10.00
}Agreement.
California:
Others------------ ---------
11.00
}State board of control rules.
commission on members_______
12.00
Colorado:
Others
0.00
t
------- - -------
Administrative head --------
10.00
.
}Agreemen
-------------------
Connecticut
8.00
State rules.
-
--------------------
Delaware-
10.00
6
Agreement.
--
FFlorida-------------------------
10.00
State statute.
Georgia:
Others
9.00
-------- - --------
Administrative head --------
10.00
}Agreement.
Ilawaii ---------------------- ..--
--------
10
State statute.
Idaho:
r
Oth
9
n
i
i
l'
A
t
G
e
s-------- - -------
Administrative head--------
--------
--------
10
.
n
enera
s op
o
orney
t
}Agreement-based on
Illinois--------------------------
6.60
Rules of State Department of Finance.
Indiana-----------------------
--------
9
State rules.,
Iowa:
Within Regulation VII
7
00
-_.__
Outside Regulation V11 -----
.
9.00
}Agreement.
Kansas:
Others--------------------
9.00
} Do.
Executive director I_________
___
Kentucky---------------------
Do.
------ ____
Louisiana -
6.50
State rules.
-
Maine--------------------------
9.00
Agreement (a recent order of the Governor and council
allows $8 for hotels on out-of-State travel).
Maryland----------------------
9.00
Rules of State comptroller.
Massachusetts ------------------
11.75
Based on statement furnished by Budget Commission.
Michigan:
Executives ------------------
10.90
--------
as to State-wide limitation.
}Rules of State administration board.
Others ---------------------- 8.25 --------
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14 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
EXHIBIT A.-State Employment Security Agency maximum per diem or subsistence
rates for interstate travel--Continued
Administrator
_______-.______ 10.00
Tennessee:
South Dakota:
Others--------------------
.
Oklahoma
Oregon_________________________ _____
Pennsylvania --------------
-------
Rhode hland10.00'
South Carolina__________10,00
Administrative head________ 10.00
New Ycrk---------------------- 9.50
North Carolina_________________ 3,00
North Dakota__________________ 7.00
Ohio:
Others ______--_ 9.00
Executive Director ----- __-_ 10
00
New Mexico:
Others---------------------
Executive director---------- ._______
Missouri:
Director or his represents- 10.00
ti ve.
Others------------------- 8.00
Mon tar a----------------------- 7.00
Nebrasl; a:
Others--------------------- 9.00
Administrative head -------- 10,00
Nevada -------------------------
New Hampshire---------------- 9.00
New Jersey-------------------- 7.00
Mississippi:
Others-------------------
Existing maxi-
mum rates
Actual. Per
expense diem
(Agreement--State rules of department of administra-
tion allow $5.50 a day for meals--silent on allowance
for lodgings.
I}Agreement.
}Agreement.
J State statute.
Minnesota:
Others--------- -- -- 9.00
Administrative head -------- 10,00
-
_--
Texas______
Utah:
Others---------------------
Executive Director ---------
Vermont ------------------------
Virginia -----------------------
Washington____________________
West Virginia:
Oth(rs- --------------------
Dirertor___--______________
Wisconsin______________________
Wyoming:
Others--------------------
Executive director and
members of commission.
9.00
10.00
9.00
8.00
9.
0000
10.
9.00
Others----------------- --- 9.00
Corrmissioner---------
-
10.00
}Agreement.
Rules of State board of examiners.
Agreement.
,Ila,ed
on rules approved by Governor.
Agency actually has no limitation in its regulations but
has stated it will pay amounts in excess of top limits
specified in fiscal standard from Special Administra-
tion Fund.
Rules of State comptroller.
State statute.
State rules.
}Agreement.
State statute.
State rules.
Do.
Rules of State department of 11 nance.
State statute.
}Agreement.
Do.
Do.
Do.
Do.
Do.
}Agreement.
State rules.
2 Averc;ge. ---- - --
1State statute.
The average maximum amount allowed by the 50 States and Territories for
subsistence of their employees, as indicated by the above-mentioned list, is $8.91
per day. That figure does not include extra allowances which. are provided, in
19 juri3dictions, for top officials, in amounts ranging from $1 rro $3 in excess of
the maximum established for other employees.
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 15
Information obtained from administrative regulations and travel orders, effective
during the fiscal year 1918 for certain areas of the United States, shows that the
following departments, agencies, establishments, and bureaus or other organizations
within departments reduce the authorized rate of per diem in lieu of subsistence
and/or limit the period for which the per diem may be paid
Department of Agriculture:
Plant Industry and Soils____________
Forest Service -----------------------
Farmers Home Administration.------
Federal Crop Insurance Corporation-
Production and Marketing Admin-
istration.
Soil Conservation Service _________-__
Entomology and Plant Quarantine__
Agricultural and Industrial Chem-
istry.
Commodity Exchange Authority----
Human Nutrition and Home Eco-
nomics.
Office of Experiment Stations ----____
Department of Commerce:
Civil Aeronautics Administration____
Region 1--------------
Region 2-----------
Region 4---_______-.___
Regime 5-----------
Region 6-------------
Region 8--------------
Region 9______________
NorthPaciflc Region__
Deeriodge National
Forest.
Pike National Forest-
Various ---------------
----- do ---------- - -----
----do-----------------
Tennessee, Kentucky,
North Carolina,
South Carolina, and
Virginia.
Wisconsin ............
Tennessee, Kentucky,
and Ohio.
Texas -----------------
Various---------------
----- do ----------------
----- do ----------------
Georgia and Alabama
Tennessee, Louisiana,
North Dakota, and
North Carolina.
Maryland, Pennsyl-
vania, and Virginia.
Various_______________
$5; $6 for 6 days, $4.60 thereaf~cr; $6 for
5 days, $2 thereafter, not to exceed 20
days; $5.60 within a 100-mile radius;
$5 while traveling and $4.60 for 2
weeks.
$4.
$4.
$4.40.
$5; $4.40; $5 fire emergency, $3 for travel,
$2 at Government camp.
$1 and $3.40.
$4.40.
$5.60.
$4.
$2.
$2.60.
$6 and $5.
$6, $5, and $4.
$6 for first 30 days and $5 for next 30
days; $4 for travel wholly within a
day.
$6 for 10 days, $2 for the next 50 days
and no per diem in excess of 60 days
except by special authority.
$5 for 30 days; $4.50 for the second 30-
day period; $4 for the next 30-day
period; $3.50 for next 30-day period;
and no per diem in excess of 120 days
except by prior written authority.
$6 while traveling not to exceed 10 days
at $6 at any one point at any one time.
$6 for 30 days, no per diem allowed at
any one time at any one place in
excess of 30 days.
$6, $5.60, $5.40, $5, $4.60, and $4.
$3.60 for travel of less than 24 hours.
$1 for each 6-hour period for travel less
than 24 hours when lodging is not
involved.
$3 when departure and arrival are on
the same day.
$4; $2 when departure and arrival are
on the same day.
$5; $2 when departure and arrival are
on the same day.
$6 for 60 days, no per diem thereafter
except by special authority.
$5; $6, for first 30 days and $3 for all
other time not spent in traveling.
United States_________
Alaska and the Pacific-
acific.
Alaska----------------
Alaska ----------------
cording to locality, consioermg type
cording
of work and length of period of duty.
$7, authorized rate to be reduced ac-
cording to locality, considering type
of work and length of duty.
$6 for 60 days, $5 for the next 30 days,
and $4.50 thereafter.
$7 for 60 days, $6 for the next 30 days,
and $5.50 thereafter.
$7 en route and for the first 15 days, $4
thereafter; $3 for travel by way of
airplane or boat when berth and
meals are included in price of ticket,
otherwise $6.
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Department of the Interior:
Bureau of Mines------_------------
Gcolegical Survey ---------------__
Offco of Indian Affairs--------------
Federal Security Agency: Food and
Drug Administration.
Federal Works Agency: Public Roads
Administration.
National Housing Agency: Federal
I3ousin?i Administration.
Area Rate authorized and/or other limitation
Regions 1, 2, 3, 4, 5,
and 6.
Various---------------
---- do---------------
Eastern, central, and
western districts.
New Orleans _-------.
Authorizations issued
in Washington D.
C., Kansas ~ity,
Mo., Denver, Colo.,
Portland, Oreg.,
and San Francisco,
Calif.
Various.--------------
$6 for trip of 2t . hours or more; $3 for
trips of less than 24 hours, unless
overnight travel is involved and no
per diem for an absence between
hours of 6 a. in. and 6 p. in.; $6 for
30 days unles extended by specific
authorization.
$6 except that $3 will be allowed for
travel of less than 24 hours where no
lodging is involved.
$5.50, $4, and $3.50.
$6 and $3.50 when Government quar-
ters are occupied.
$6 or lower as authorized by district or
station chief: $5; $,1.
$6 and $4 for absence of Less than 24
hours.
$6 except that $1 will be paid for trips in
excess of 10 hours providing over-
night travel is not involved.
$6 for each of first 00 days; $5 for next 30
days; $4 for next 30 days; $3 for next
30 days.
No per diem when departing and re-
turning on the same day, no per
diem when place of duty can be
renehect within 1 hour by common
carrier.
STATEMENT OF REPRESENTATIVE RUSSELL V. MACK, THIRD WASHINCTON DIS-
TRICT, ON H. R. 3005, MADE BEFORE E'XPENDITirRES OF TILL EXECUTIVE
DEPARTMENT COMMITTEE
I favor H. R. 3005 because the present $6 a day allowed Federal Government
workers for subsistence while traveling on official business is entirely inadequate
and unrealistic in the light of present-day travel costs.
A Gcvernment executive worker, who travels a good deal on Government
business, told me recently that he spent for hotel rooms, meals, and out-of-pocket
travel expenses during 194:8, about $900 more than he received back from his
$6 a day subsistence allowance. We cannot expect to retain competent help in
the Government if we continue this imposition upon them.
Every Member of Congress knows that no one, while traveling, can live at.
even second- or third-class hotels nowadays on $6 a day.
Furthermore, the present law allows internal-revenue collectors and other Fed-
eral employees who use their own automobiles when traveling on public business
only 4 cents a mile when traveling within their posts of duty and 5 cents a mile
when traveling outside their posts.
This I- and 5-cent alloNi ance for use of a car is substantially that allowed
private employees by most private businesses. It is totally inadequate to meet
the costs of gas and oil, insurance, storage, and upkeep on the Federal employee's
car, to say nothing of depreciation on it.
STATEMENT OF LUTHER C. STEWARD, PRESIDENT, NATIONAL FEDERATION OF
FEDERAL EMPLOYEES
Mr. Chairman and members of the committee, I am appearing in support of
H. R. 3005, a bill introduced by Representative Karsten to regulate subsistence
expenses and mileage allowances of civilian officers and employees of the Gov-
ernment.
This is a comprehensive proposal covering as it does the allowances in lieu of
subsistence for civilian officers and employees while in travel status; the adjust-
ment of mileage allowances of privately owned vehicles used by civilian officers
and employees in travel status and a provision for advancement of funds in antici-
pation of official travel with the necessary safeguards as to recovery of unex-
pended Dortions of such advanced funds.
Ak
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 17
The need for this legislation is overwhelming. One has only to recall their own
personal experiences to convince one's self beyond per adventure of a doubt
that the existing $6 per diem for civilian officers and employees in travel status
is so woefully inadequate as to compel expenditure of personal funds by every
civilian officer and employees in travel status, which is in effect, not only a reduc-
tion in salary, but puts the employer-the Government of the United States--
in the position of expecting its employees while engaged in its official business to
carry as a personal obligation a portion of the expenses. A more unfair or absurd
situation can hardly be imagined.
Increasing the mileage allowances for privately owned vehicles used by civilian
officers and employees in travel status is equally necessary. This use of such
privately owned transportation is in the interest of the Government, and again
the unfairness of such an individual civilian officer or employee to bear a portion
of the cost load is indefensible.
Even with the rates proposed in H. R. 3005, civilian officers and employees to
stay within $10 a day will have to exercise care and prudence and confine them-
selves to second-class hotels: and modest eating places. It would seem unneces-
sary to labor the point or to offer detailed figures to support the rates proposed
in H. R. 3005. Conditions speak for themselves and in order to put itself into a
position where it is no longer abusing its civilian officers and employees in travel
status by requiring personal expenditures from them while engaged in Govern-
ment business, this bill should be promptly enacted into law.
ST&TEMENT OF ROBERT E. MCLAUGHLIN, WASHINGTON COUNSEL, NATIONAL
ASSOCIATION OF STOREKEEPER-GAUGERS
My name is Robert McLaughlin of 805 G Street NW., of this city. I am
Washington counsel for the National Association of Storekeeper-Gaugers, who
are all field employees of the Alcohol Tax U nit of the Treasury Department.
This association has a membership approximating about 50 percent of the eligible
employees of their vocation; and their civil service classifications range from
CAF-6 to CAP-11.
During the past year an investigation and hearings were held by the Civil
Service Commission which demonstrated that a great majority of the 1,400
gaugers were underclassifled, and they are being raised into the above grades
effective April 1.
The most critical problem of this group, until recently, was pay. That has
been substantially improved. But the problem that has always run it a close
second is per diem and attendant items incident to travel and duties away from
home. .
As demonstrated by treatment of some members of this group, a serious need
in this type of legislation is standardization. There is too great a diversity in the
standards followed by the various bureaus and agencies. Some agencies always
favor the working conditions of their employees as much as possible within the
clear meaning of the laws and regulations; whereas others habitually inflict upon
their workers arbitrary actions which are detrimental to their financial and moral
po.itions. Travel orders under which per diem is paid are sometimes minimized
by brief transfers of permanent posts of duty (for periods as short as about 30
days), as a punishment or to express disfavor with an employee. Particularly
indefinite assignments (which might range from a few days to 6 months) are he'd
over the heads of a whole division of employees, under circumstances where the
employees selected cannot possibly move their famhies--even if houses were
avaiiablc-yet without per diem, except for the time actually in transportation
between regular post, of duty and interim tocat.ion,
These are vicious instrumentalities in the hands of some bureaucrats. They
should be regulated as far as possible by law. In this way much can be added
to the stability and efficiency of our civil servants. The helpless, and frequently
underpaid, employee should riot be submitted to bureau rulings of clever young
lieutenants who are eager to ingratiate their superiors by saving a few precious
dollars on out-of-the-way assignments which are made for the convenience of the
bureau and at the expense of the employee and his family.
Another unfair angle of this same proposition is the fact that the employee
not only does not receive his per diem allowance for these relatively short periods
of duty; but it is maintained that by this same change of post of duty (whether
for saving per diem, or other bureau purnose or convenience) the employee's
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"home" is technically transferred and he is denied the right of deducting from his
income tax the extra expenses of maintaining his necessary second place of abode.
Perhaps a district court would not agree; but the Bureau of Internal Revenue has
ruled t'bat these employees may not deduct such expenses.
Furthermore, although the terms of 11. R. 3005 are regarded as wholly adequate
as to amount of per diem and mileage reimbursement, and it is obviously the
intent of the committee that justice be done in these matters, would it not be
wise to assure that equal treatment be accorded all employees under the terms of
the act by designating the exact amounts and conditions involved and eradicate
spite and favoritism in this connection as elements in the efficiency and morale of
our Government employees? These conditions have recently--or do yet-
exist; they can still be reverted to under this bill in its present form; and only the
Congress can assure their discontinuance.
STATE.VENT OF CONGRESSMAN IITJCH B. MITCHELL OF WASHINGTON BEFORE THE
HonsE COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS ON
H. R. 3005
Gentlemen of the committee, I appreciate this opportunity to make a few
observations in support of increased travel allowances for our Government
workers. Present payments of $6 a day and 5 cents a mile are totally inadequate,
as any analysis of the facts will conclusively show. Those Government employees
who must travel on the job are digging into their own pockets and cutting down
their too-meager incomes to do necessary work for the Government.
Increased travel allowances are a small part, but an important part, of the
wage and salary adjustments that should be made to enable our Government
workers to meet the present high costs of daily living. For the individual worker
and his family, salary adjustnibnt is a "bread and butter" necessity. For the
Government it is a necessary means of acquiring and retaining skilled and trained
personnel to carry on the biggest and the most important enterprise in the world.
A per diem allowance not to exceed $10 within the limits of the continental
United States, as provided in H. R. 3005, is a realistic figure in the light of present
costs. A decent hotel room and one square meal just about take up the present
per diem allowance. For the other two meals, for tips, for newspapers, for coffee
and the incidental expenditures which are very common since night work is often
required while on the road, the proposed increase will properly make up the
difference.
Traveling in Alaska requires special consideration because of the greatly in-
creased prices for essentials in that Territory. Employees now traveling on official
duties in Alaska suffer substantial loss of income. I assume that H. R. 3005 takes
account of this problem by providing in section 3 for per diem rates to be estab-
lished by the Director of the Budget Bureau in case of travel outside the limits of
the cornninerrtal United States. The National. Association of Employees of Collec-
tors of Internal Revenue, by resolution adopted at their 1948 convention in
Oklahoma City, September 21 to 25, 1948, recommended that an additional $3
per day be paid for travel in Alaska. An alternative method for per diem travel
in Alaska has been suggested: The payment of actual costs on each trip, with
provisions set by the proper Government agency for computing such costs.
From the information available to me, the provision in sectior. 5 of H. R. 3005
for 7 cents per mile to be paid in the case of privately owned automobiles, is rather
low. Mr. Cliff Mosby, president of local 30, National Association of Employees
of Collectors of Internal Revenue, informs me that deputy collectors who travel
for the Government in connection with the collection of Federal taxes are now
paying costs of 10 cents per mile to own and maintain their cars. In part these
are out-of-pocket costs because the deputy collectors are now paid 5 cents per
mile for traveling outside their post of duty and 4 cents within their post of duty,
using their own privately owned automobiles. I understand that last year the
National Rural Letter Carriers' Association was given an increase to 7 cents per
miler Resolution 10 of the National Association of Employees of Collectors of
Internal Revenue proposed the payment of 8 cents per mile for travel both inside
and outside the city limits of posts of duty.
A study of the experience of National Labor Relations Board examiners in
the Northwest (Washington, Oregon, Idaho, and Montana) shows that 8 cents
per mile is a moderate estimate of automobile costs. This mileage cost was
made no of the following:
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Per mile
Gas and oil------------------------------------------------------ .$0.02
Storage and parking--- - ------------------ ---------------------- .01
Depreciation---------------------------------------------------- .03%
Servicing and insurance ------------------------------------------- O1 a
Total--------------------------------------------------- .08
This mileage cost was based on an estimated car use of 12,000 miles per year
on official business, although examiners using automobiles in the regions west
of the Mississippi travel substantially more than 12,000 miles a year. The
depreciation estimate was based on 20 percent of cost of 1948 or later models,
set at $2,000. Insurance was based on 1948 or later models having minimum
legal liability coverage and $50 deductible collision. For older automobiles,
cost would be less but the difference would be made up by increased servicing
and gas and oil costs. Automobiles used substantially more than. 12,000 miles
a year depreciate at a much greater rate, of course. In the Northwest, due to
the amount of travel required on logging roads, etc., depreciation and servicing
costs are enhanced. The above component estimate of $0.02 per mile for gasoline
and oil possibly is too low, in view of increasing prices for these items. Two
cents is based on gasoline consumption of 15 miles to a gallon at $0.28 a gallon
and 350 miles for a quart of oil-including oil changes and filter changes.
It is my earnest hope that the Congress will do justice to our Government
workers in the matter of salary increases. This committee can perform a valuable
service in line with that objective by approving increased travel allowances to
make up the loss of income suffered by those who must go from place to place to
do the Nation's business.
UNITED STATES CUSTOMS COURT,
New York 14, March 10, 1949.
Hon. WILLIAM L. DAwsoN,
Chairman, House Committee on Executive Expenditures,
House Office Building, Washington, D. C.
DEAR CONGRESSMAN: Chief Judge Webster J. Oliver, under date of March 8,
has written you a letter expressing an interest in your bill, H. R. 828, and a wish
that the bill be amended or extended to cover the court reporters of the United
States Customs Court who are designated to attend with the judges the court's
sessions at ports other than New York City.
Our court reporters have no option but must accept the assignments on all
out-of-town circuits, and as a consequence they have been subjected to a heavy
financial burden and hardship because of the necessary excess expenditures made
by them over and above the regular per diem allowance of $6 per day. I join with
"fir' Judge Oliver in the hope that this important and necessary bill is speedily passed
and that it will be amended to as to include officers and employees of this court
necessarily absent from their official station on official business.
I understand that Hon. Henry P. Chandler, Director of the Administrative
Office of the United States Courts has been in communication with you and also
with Senator McClellan, and has called to your attention the omission of any
provision for per diem in lieu of subsistence for judicial personnel. My informant
did not know whether corrective action would be taken through the amendment
of your bill, H. R. 828, or whether a separate bill Would be introduced.
I would greatly appreciate your interest in this matter, and hope that the
financial relief which is being granted civilian officers and employees of the execu-
tive departments and establishments can also be granted to the officers and
employees of our court. I would appreciate any, information that you can give
me on the legislative condition of your bill and any possible amendments thereto,
or other bills which may have been introduced covering the situation.
With warns personal regards, I am,
Yours very truly,
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20 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS,
SUPREME COURT BUILDING,
Hon. WILLIAM L. I_)Awsox Washington 13, 1). C., -March 17, 1949.
,
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, Washington, D. C.
DEAR CONGRESSMAN DAWSON: I am writing in behalf of the personnel of the
Federal courts to urge favorable action by your committee upon the pending bill
to regulate subsistence expenses and mileage allowances of civilian officers and
employees of the Government (H. It,. 3005). The Judicial Conference of the
United States, consisting of the Chief Justice of the United States, Chairman, and
the chief circuit judges of the 11 judicial circuits of the country, at its last annual
meeting held in September 1948 recommended increases in the present provisions
for reimbursement of personnel of the courts for expenses incurred for subsistence
and for the use of privately owned automobiles while engaged in official travel.
The pending bill conforms with the recommendations and if enacted will redress
serious injustices in the present rates of reimbursement.
The present allowance for expenses of subsistence of officers and employees
of the judicial establishment, other than judges, is a per diem sum of not to exceed
$6 within the limits of the continental United States (5 U. S. C. 823). In this the
suppor'.;ing personnel of the courts share with Government officers generally.
The allowance for subsistence of Federal judges is presently fixed by section 456
of title 28 of the United States Code at their "reasonable maintenance expenses
actually incurred, not exceeding $10 per day." The rate of reimbursement to
all personnel of the courts including judges, for the use of privately owned auto-
mobile in official travel is. fixed at not to exceed 5 cents a mite outside of their
official stations, and 4 cents a mile within them (5 U. S. C. 73a).
The -vending bill would assimilate the allowance for subsistence of officers and
employees of the courts, other than judges, while engaged in official travel, to the
similar allowance for other personnel of the Government as at present, but, would
increase it to "a per diem allowance to be prescribed by the department or estab-
lishment concerned, not to exceed the rate of $10 within the limits of the con-
tinental United States and in case of travel beyond the limits cf the continental
United States not to exceed rates established by the Director of the Bureau of
the Budget for the locality in which the travel is performed. The bill leaves the
allowance for subsistence of judges in official travel to be separately provided for
as at present, and another bill has been introduced and is pending (H. R. 2166)
which would continue the present plan of reimbursement for subsistence of judges
on the basis of their actual expenses, but would raise the maximum limit from
$10 to 815 a day. The bill before your committee, H. R. 3005, would also raise
the rate of reimbursement for the use of privately owned automobiles for official
travel by all personnel of the courts, including judges, from 5 cents a mile as at
present to 7 cents.
The increases in the rates for both subsistence and mileage for which the bill pro-
vides, have been urgently needed for a number of years. It needs no argument
that $6 a day, which is the rate prescribed by the present law (5 U. S. C. 823), is
much below the cost of transient accommodations in many if not most places in
this country at the present time. A suitable room in a hotel and modest meals
cannot be procured in a large number of places in which the supporting personnel
of the courts, including clerks and their deputies, secretaries and law clerks to
judges, court reporters, and probation officers are called upon to stay within a
limit of $0 a day. Section 62b (1) of the Bankruptcy Act as amended allows to
referees their actual expenses for lodging and subsistence not to exceed $7 per day
while in a travel status. But this amount, too, is insufficient in most places, and
for the referees as for most other personnel of the Government, a flat allowance in
an adequate amount, for which the pending bill provides, is needed.
There is equal necessity as a matter of justice for the increase ir the mileage rate
for the use of privately owned automobiles for official purposes provided for in the
pending bill. The act fixing the present rate of 5 cents (47 Stat. 1516, 5 U. S. C.
73a) was enacted in 1933 when prices generally were on a low level. It is well
known that since then the cost of operating automobiles has increased very much.
The prim of gasoline, the cost of amortization due to the sharp advance in the
price of automobiles, which has almost doubled in recent yearn;, the cost of re-
placements and repairs, and virtually all substantial elements of cost involved,
have gone up very much. Court personnel who are limited to payment of 5 cents
a mile, have a deficiency to make up out of their personal funds every time they
use their automobiles for official travel. The court personnel who have occasion
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 21
to do this include many judges and clerks of court and their deputies, secretaries
and law clerks of judges, court criers acting as bailiffs and messengers, court
reporters, referees in bankruptcy, and probation officers.
The need of the supporting personnel of the courts, other than probation
officers, occurs principally in districts in which terms of the district courts are
held from time to time at a number of different locations. In such situations
there would be much loss of time and energy in using common carriers. Frequently
a number of officers travel togetlier in one automobile for use of which only the
officer who owns the car is reimbursed. Travel by automobile under these condi-
tions makes for efficiency and results in a saving for the Government. Clearly
the officers who use this method should be made whole for their ~xpense.
The Federal probation officers use automobiles not only to attend terms of
courts at which they have duties to perform as do other officers, but to make
numerous calls upon persons in scattered locations whom they are supervising
or whom they need to see in connection with their presentence investigations
under criminal rule 32 (c) (1). Many probation officers have occasion to run their
automobiles anywhere from 10,000 to 25,000 miles a year. The present rate of
reimbursement, 5 cents, is conservatively believed to be 2 cents per mile below
cost, and upon this basis such officers are required to contribute anywhere from
$200 to $500 a year out of their salaries. This plainly is not just.
The present bill would correct the deficiency by raising the maximum rate of
7 cents. It also would do away with the distinction in the present law between
travel outside of the official station and travel within it, for which a lower rate of
only 4 cents is allowed. This is anomalous because travel within the official
station on account of the numerous stops and starts involved, is obviously more
expensive than travel outside. The pending bill corrects this.
I desire to express in behalf of the Judicial Conference and of the Federal courts
my gratification that the personnel of the courts have been included with Govern-
ment personnel generally in the relief which is proposed. If granted it will
remedy what has been a glaring injustice and be very beneficial to the morale of
the court service.
With kind regards, I am,
Sincerely yours,
HOUSE OF REPRESENTATIVES,
Hon. WEBSTER J. OLIVER Washington, D. C., March 11, 1949.
,
Chief Judge, United States Customs Court,
201 Varick Street, New York, N. Y.
My DEAR JUDGE: Chairman Dawson of the House Committee on Executive
Expenditures has referred to me your letter of March 8 in reference to legislation
providing for an increase in subsistence expense of officers and employees of the
Government.
This matter has been referred to the Subcommittee on Public Accounts and it
is planned to hold hearings on it within the very near future. I am enclosing a
copy of a bill I recently introduced on the subject and under the terms of this
legislation employees of the judicial branch of the Government would be included.
I appreciate your letter and will bring your views to the attention of the sub-
committee when the legislation is under consideration.
Sincerely yours,
FRANK. M. KARSTEN,
Chairman, Subcommittee on Public Accounts.
UNITED STATES CUSTOMS COURT,
Hon. WILLIAM L. DAWSON, M. C., New York 14, March 8, 1949.
Chairman, House Committee on Executive Expenditures,
House Office Building, Washington, D. C.
MY DEAR CONGRESSMAN: In connection with your bill H. R. 828, providing for
increase of subsistence expenses of officers and employees in the executive branch
of the Government while absent from their designated posts of duty on official
business, we note that this bill contemplates increase of the per diem allowance
under such conditions to not in excess of $10 per day. The purpose of this
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letter, which is sent you under the advice of my colleagues on this court, is for
the purpose of requesting that this increased travel allowance be extended to
cover the court reporters in the United States Customs Court when on official
duty outside New York City.
Whenever our out-of-town circuits are held throughout the year a court reporter
is designated to attend with the judge and an attorney from the office of the
Assistant Attorney General in charge of Customs. The court :reporters have no
option but must accept the assignments and on every docket they are paying
part of their expense out of their pocket, which is obviously improper and a
great injustice to them. This is particularly so on the extended Pacific coast
dockets, which run from Portland, Oreg., as far south as San Diego, and the
Texas dockets, which start at New Orleans and run as far.weett as Laredo. It
requires no extended argument to demonstrate that at the present per diem rate
these reporters cannot pay the minimum hotel rates and eat three meals a day.
I hope this most necessary piece of legislation goes through and that it will
be amended so as to include our court reporters, as requested above.
With kindest personal regards, I remain,
Sincerely yours,
WEBSTER J. OLIVER, Chief Judge.
FEDERAL EMPLOYEES UNION No. 3,
Milwaukee 7, Wis., March 12, 1949.
Hon. ANDREW J. BIEMILLER,
House Office Building, Washington, D. C.
DEAR MR. BIEMILLER: Local No. 3 of the National Federation of Federal
Employees, having a membership of approximately 1,300 Federal employees
throughout the State of Wisconsin, adopted a resolution at a meeting last week
to urge favorable action on the part of the Senators and Members of the House
of Representatives from this State upon a bill which is presently in subcommittee
providing for an increase in travel allowance for Federal officials and employees.
It has repeatedly come to the attention of Local No. 3 that at the present
authorized per diem rate, officers and employees who are required to perform
official travel must necessarily do so at considerable financial loss.
It was further resolved by Local No. 3 that, in the event you should be so dis-
posed, you kindly contact Mr. Karsten, chairman of the House subcommittee,
which has charge of this proposed legislation, as well as Mr. Dawson, chairman
of the House Committee on Expenditures in the Executive Departments? with a
view to expediting favorable action.
Will you kindly advise as to your views concerning this matter so that Local
No. 3 may inform its membership.
Sincerely yours,
GE]RALDINE'i A. KUCHARSKI,
Secretary, FEU No. S.
AMERICAN FEDERATION OF GOVERNMENT EMPLOYEES,
Washington 4, D. C., March 16, 1949.
Hon. WILLIAM L. DAWSON,
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, Washington, D. C.
DEAR MR. DAWSON: While you and I have never met formally, I have been
keeping pretty close tabs on you; particularly your work in behalf of the United
States Government employees and especially in behalf of H. R. 3005.
I think it is only fair to you and fair also to the American Federation of Gov-
ernment Employees that [ write this commendation to you. I certainly trust and
wish that you will continue to keep behind the bill, H. R. 3005, and see that it is
reported to the House by the full committee.
I de not see how any fair-minded man or woman can oppose the passage of this
bill. I have traveled and so have you, and we both know that generally speaking
it will cost at. least l10 per day for subsistence and I oftentimes have to pay more.
This bill, as you know, has a green light from both the Budget Bureau and
General Accounting Office and it was recorded by the United States Civil Service
Commission and so far as I have heard it has the endorsement of every depart-
ment and agency of the Government.
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I trust that you will lay bare your mighty arm and see to it that the Committee
on Expenditures in the Executive Departments in the House of Representatives
reports this bill favorably to House.
Very sincerely,
J. G. YADEN,
National President.
BUREAU OF THE BUDGET,
Washington 25, D. C., March 17, 1949.
Hon. WILLIAM L. DAWSON,
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, Washington 25, D. C.
MY DEAR MR. DAWSON: This is in reply to the informal request of your com-
mittee for the views of the Bureau on H. R. 3005, a bill to regulate subsistence
expenses and mileage allowances of civilian officers and employees of the Gov-
ernment.
As indicated by the short title provided for in section 1, the "Travel Expense
Act of 1949," the bill would bring together in one act various provisions now
contained in separate laws providing for travel expenses of certain officers and
employees of the Government. The coverage of the bill, as outlined in section 2,
would include officers and employees of the executive, legislative, and judicial
branches, as well as those of the municipal government of the District of Columbia.
However, Members of Congress and officers and committees of the Senate and
House of Representatives would be specifically excluded by section 2, and section
7 would provide that the act should not be construed to modify or repeal any act
providing for travel expenses of the President of the United States, the President
of the Senate, or Senators, Representatives, Delegates, and Resident Commis-
sioners. Justices and judges, for whom per diem allowances are provided by
other laws, would be excluded from the provisions of section 3.
Section 3 would raise from $6 to $10 the maximum amount which may be pre-
scribed as a per diem allowance in lieu of actual expenses of subsistence of Gov-
ernment personnel traveling away from their designated posts of duty. As stated
in the Bureau's letter of January 27, 1949, in response to your request for a report
on H. R. 828, the desirability of an adjustment of subsistence allowances has be-
come increasingly apparent and a maximum of $10 per diem is believed to be fair
and adequate in the light of current living costs. Section 3 of the bill embodies
substantially the suggestions contained in the above-mentioned letter of January
27, 1949, regarding certain technical aspects of the allowance.
Section 4 would increase from 5 to 7 cents per mile the maximum allowance for
use of privately owned automobiles or airplanes on official business, and would
increase from 2 to 4 cents per mile the maximum rate for use of privately owned
motorcycles. The principal feature of this section is the return to the 7-cent-per-
mile rate for the use of privately owned automobiles which was originally estab-
-4V"' lished in 1931, but which was reduced to 5 cents in 1933. It seems obvious that
present costs of operation justify a rate higher than was necessary in 1933, and the
7-cent rate is consistent with legislation enacted during the last Congress which
fixed such a rate for the use of automobiles by United States marshals (Public
Law 673, approved June 19, 1948) and rural mail carriers (Public Law 900, ap-
proved July 3, 1948). The. 7-cent rate would apply to travel both within and
without the limits of an employee's official station, thus removing the distinction
which exists between the present rates for travel within the limits of an official
station (4 cents per mile) and beyond the limits (5 cents per mile). The removal
of the distinction is desirable inasmuch as it is not supported by any difference in
operating costs to the employee.
Section 5 would permit advances to persons entitled to mileage or per diem
allowances under the act. The provision that any such advances not used for
allowable travel expenses should be recoverable by set-off against salary, retire-
ment credit, or otherwise, presumably is intended to make unnecessary the fur-
nishing of bond by employees to whom such advances are made. This section
would remove any doubt that adequate remedies are available to the United States
for recovery of such advances, and the elimination of the requirement for a bond
would do away with considerable unnecessary paper work and expense to the
employees concerned. The section is sufficiently broad to permit the requiring
of bonds in those few cases where a bond might be necessary or desirable.
Section 6 would provide for issuance of regulations by the Director of the
Bureau of the Budget, for the fixing and payment of travel allowances and advances
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under the bill, and for reimbursement of actual travel expenses under the Act of
March 3, 1875 (5 U. S. C. 7:3). This section would not increase the present duties
of the Bureau of the Budget except with respect to the prescribing of regulations
for advances, a function which is now in the Treasury Department. The central-
ization of authority to prescribe regulations for matters of this nature is believed
to be desirable.
In general, it is believed that the rates provided for in H. R. 3005 are equitable,
and that the technical features of the bill provide the basis for a constructive
approach to the problem of consolidating and simplifying laws and regulations
relating to reimbursement for official travel. Consequently, the Bureau of the
Budget recommends favorable action on the bill.
As indicated in the Bureau's above-mentioned letter of January 27, 1949, appro-
priations for the fiscal year 1949 and budget estimates for the fiscal year 1950 were
prepared on the basis of the present maximum of $6 per diem for expenses in lieu
of subsistence. Also, such appropriations and estimates were based on allowances
of 4 cents and 5 cents per mile for travel by privately owned automobile within
and without the limits of official stations. Since section 9 would make the bill
effective on the thirtieth day after the date of its enactment, additional appropria-
tions likely would be required for the current fiscal year if the bill were enacted
before June 1949, and additional appropriations would be required for the fiscal
year 1950 if the bill were enacted during the present session of the Congress.
Sincerely yours,
F. J. LAWTON, Acting Director.
DATA S1'7BMITTED BY THE BUREAU OF TIIE BUDGET IN RESPONSE TO QUESTIONS
OF THE COMMITTEE DURING HEARINGS ON H. R. :1005
Per diem of $10 in lieu of subsistence
The recommendation of the Bureau of the Budget for favorable action on
H. R. 3005 is based-with respect to the $10 per diem in lieu of subsistence--upon
a survey made late in 1946, and a revision thereof which takes into account increases
in living costs since that survey was made. The survey-a copy of which is
attached-indicated that $8 per day was a conservative maximum allowance for
subsistence, based upon costs as follows:
Hotel .-------------------------------------------------------------
$4.05
Meals-------------------------------------------------------------
3.00
Tips, telegrams, laundry, local transportation- - _ - -
. 95
Iotal ---------------------------------------------------------
8.00
Since that survey was made, hotel costs have increased to an average of $5.27
as indicated by a survey made in 1948 by Howarth & Howarth, or $5.60 as indi-
cated by a survey made by Harris, Kerr, Forster & Co. Both of these firms are
hotel accountants, and the first-mentioned survey covers 142,759 hotel rooms.
A copy of that survey was submitted to the committee at the hearing on March 18,
1949. The second survey was based on a study of more than 300 hotels.
The foregoing information was submitted by these accounting firms to the
American Hotel Association on March 16, 1949, and a copy of the report to the
association also was furnished to the committee on March 18. Based on this
information, it appears that. $5.25 would be a conservative estimate of the average
cost of hotel accommodations.
Reports from Government agencies, as indicated by testimony before the
committee, have indicated ;% substantial rise in cost of meals since the survey was
made in 1946. Such testimony shows that, particularly when a traveler encounters
crowded conditions, allowances of $0.75 for breakfast, $1 for luncheon, and $2
for dinner, or $3.75 per day, are substantially below the average.
An allowance of $5.25 for hotel accommodations and $3.75 for meals would
leave the traveler $1 per day for incidental expenses such as tips, laundry or dry
cleaning, telegrams, and local transportation. Since the traveler is required to
furnish out of this amount transportation from his hotel or other lodging to his
duty station and return to his hotel and telegrams reserving further hotel accom-
modations, the sum of $1 per day for such items is obviously a conservative
figure. Further, the Bureau of Labor Statistics, upon the basis of a study of
prices in 34 large cities, has reported that laundry and dry cleaning costs increased
8 and 9 percent, respectively, between December 1946 and September 1.948.
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 Approved For Release 2006/09/27: CIA-RDP57-00384R000400130001-4
SUBSISTENCE EXPENSES AND M[LEAGE ALLOWANCES 25
Upon the foregoing basis, the Bureau of the Budget's letter of March 17, 1949,
stated that a $10 per diem allowance was fair and equitable, comprised approxi-
mately as follows:
Hotel --------------------_---------------- $5.25
Meals--------------- ---------------------- ----- 3. 75
Tips, laundry, telegrams, local transportation----------------------- -1_00
Total ------------------------------------------- 10.00
INFORMATION REQUESTED BY MR. LOVRE
A survey compiled by the Bureau of Employment Security in the Federal
Security Agency, covering State employment security offices, establishes that
these States agencies allow susbistence expenses ranging from $6.50 per day in
Louisiana to $14 per day in California, with an average of $9 to $10. In the case
of these agencies, the State is reimbursed by the Federal Government for the
expenditure, but the rate is fixed either by law or by agreement made upon the
basis of a showing by the State auditor or comptroller that the amount agreed
upon is not in excess of the rate paid by other agencies in that State. A copy of
this survey was submitted to the committee at the hearing on March 21.
A survey of costs in private industry, published in the July 1, 1948, issue of
Sales Management, is based upon a study of 135 representative companies in 22
different industries. This study indicates that the average cost of maintaining
an employee in a large city is $11.75 per day, and in a small city, $9.09, or an
average of $10.42 per day. These amounts are in addition to actual costs of
tips, laundry, taxis, and telegraph and telephone. A copy of this survey is
attached.
Automobile allowance of 7 cents per mile
The favorable recommendation in the Bureau of the Budget letter of March 17,
1949, with respect to the allowance of 7 cents per mile for the use of a privately
owned automobile, is based upon three factors:
(1) A study made in the Bureau of the Budget in 1948 which shows an average
cost of 7.23 cents per mile for a car operated for 12,000 miles per year.
(2) A report of the American Automobile Association, dated April 13, 1948, on
a study by Runzheimer & Co., cost accountant engineers. This study indicates
an average cost of 8/ cents per mile for a postwar car driven 10,000 miles per year,
and just over 7 cents per mile for a prewar car under the same conditions.
(3) A compilation of mileage rates by the Bureau of Employment Security,
showing rates paid by State employment security agencies which reflects a maxi-
mum rate of 8 cents, a minimum of 4% cents, and an average of 6 cents.
Copies of each of these three items are attached.
As stated in the Bureau's letter of March 17, 1949, the mileage section of the
bill provides for a "return to the 7-cent-per-mile rate for the use of privately owned
automobiles which was originally established in 1931, but which was reduced to
5 cents in 1933. It seems obvious that present costs of operation justify a rate
higher than was necessary in 1933, and the 7-cent rate is consistent with legislation
enacted during the last Congress which fixed such a rate for the use of automobiles
by United States marshals (Public Law 673, approved June 19, 1948) and rural
mail carriers (Public Law 900, approved July 3, 1948) * * *."
Use of maximum rates
Both the per diem and the mileage rates are maximum allowances, and adminis-
trative officers are expected to set appropriate rates within the maxima for
individual cases.
In connection with the mileage rate for use of privately owned automobile, the
conditions under which the employee travels have little effect upon cost of opera-
tion, and because of the increases in such costs the maximum in recent years has
tended to become a flat rate. If costs of operation continue as at present, the
7-cent rate would also tend to become a flat rate. However, if such costs should
decrease, administrative agencies would be expected to return to the prior practice
of allowing less than the maximum where a lesser amount would adequately
reimburse the employee.
In connection with the per diem rate for subsistence, testimony before the
committee has indicated that per diem allowances are now fixed at rates which
vary considerably below the maximum. For example, in the Department of
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26 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
Agriculture during the fiscal year 1948, with a wide variety of travel conditions,
rates varied as follows:
Percentage
Per diem rate: travel orders
$6.00--------------------------------------------------------- 60. 1
$5.01 to $5.99------- ------------------------------------------- 14.5
$4.01 to $5.00------- ------ -----. 16. 0
$3.01 to $4.00--------------------------------------------------- 3. 7
$0 to $3.00---------------------------------------------------- 5.7
INFORMATION REQUESTED BY MR. BOLTON
There is presently no requirement in law or general regulations issued thereunder
which limits the period for which a maximum per diem allowance may be paid.
However, individual administrative agencies have sharply curtailed the allowances
payable when a traveler stays in one place for an extended period. A tabulation
prepared originally by the General Accounting Office and now in possession of the
committee covers a representative group of Federal agencies, including the
Departments of Agriculture, Commerce, and Interior, the Federal Security
Agency, the Federal Works Agency, the General Accounting Office, and the
National Housing Agency, and shows in detail the restrictions imposed by regula-
tions of those agencies in 1948.
Estimate of cost of bill
Total travel cost for fiscal year 1949 (based on 1949 budget) ------
$317,000,000
Less: Travel cost for military personnel --------------------------
166, 000, 000
Total for civilian personnel-.---------------------------
151, 000, 000
hstimaled increase in cost of per diem and mileage allowance:
Per diem cost 54.01 percent of $151,000,000X66.7 percent--
54, 400, 000
Mileage allowance for auto travel 19.82 percent of $151,000,000
X 40 percent------------------------------------------
12,000,000
Total----------------------------------------------
66, 400, 000
The 54.01 percent for per diem and 19.82 percent for mileage allowance for auto
travel represent the portion of total travel costs chargeable to these allowances.
The information was developed by the General Accounting Office in an analysis
of 10,256 vouchers.
The total cost of $66,400,000 is high to whatever extent rates authorized by the
agencies are below the full $10 per diem and 7 cents per mile provided in the bill.
Also, the additional appropriations required will be less than t:!re adjusted total
cost figure to whatever extent agencies absorb the increased cost,
The principal reason why many agencies do not maintain a break-down of
travel costs to show amounts relating to subsistence and amounts relating to
transportation is that appropriations for these purposes are based on an over-all
figure for travel, without reference to the component parts. For this reason,
also, appropriation estimates ordinarily are made up without specific reference
to the components, except in the case of new activities.
The consideration of appropriation estimates for travel are approached from
two slightly different angles. For activities or functions which have been carried
on for a considerable period of years, experience has shown that the cost for per
diem and transportation averages a certain number of dollars per day. To deter-
mine the amount of travel funds to be included in the estimate, the approximate
man-days of travel time required to accomplish the work are determined and
mnltipLed by these average costs. The average cost per day may vary somewhat
from time to time as public-carrier rates increase or a higher mileage rate for per-
sonally owned cars is authorized.
For newly proposed or authorized activity or program, a detailed analysis
is required of the organizational set-up and of the contemplated plan of operation-
which employees will be required to travel, reasons for their travel, approximate
days or percent of time in travel status, whether intra- or inter-county or State,
percentage of rural travel, and other factors affecting the actual cost of per diem
and transportation.
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 27
PROJECT COMPLETION REPORT-STUDY OF DOMESTIC PER DIEM TRAVEL ALLOW-
ANCE (PROJECT No. 47-18)
ORIGIN AND PURPOSE
This project of reexamining the domestic per diem travel allowance had as its
origin the recognition of current increases in cost of living, the increasing pressure
from agencies to set higher rates, and a need felt within the Bureau itself that
readjustment might be warranted in the present maximum per diem allowance of
$6 established by the Subsistence Expense Act of 1926, as amended by the act
of January 30, 1942. The objectives of the project were defined as follows: "To
determine if changes in the present rates are valid, to formulate a basis for com-
putation of fair rates, and from time to time during the course of the project to
make appropriate recommendations to Congress." This study was carried on
during November and December 1946.
METHOD
A review was made of a prior study of per diem allowances under Project No.
83 for leads on sources of information on hotel and restaurant costs. Conferences
with the Division of Statistical Standards disclosed other data on cost-of-living
studies. To get a cross section of actual travel expenditures a form was designed
on which the traveler could record his subsistence expenditures and give additional
information on hotels, e. g., availability of rooms, time limits on occupancy, rates,
etc. Copies of this form were completed by employees of several agencies in
travel status during the latter part of November 1946. These employees were
chosen from different salary ranges traveling in different parts of the country so
that we could have a representative cross section of travel costs. The data from
these forms was carefully analyzed and considered in connection with statistical
material published by restaurant and hotel associations.'
FINDINGS
Actual expense data were secured from travelers in the following agencies:
Bureau of the Budget, Bureau of Labor Statistics, Justice, Social Security Board,
Treasury, OSRD, and Post Office. We found that a group of 34 attorneys in
Justice who travel intermittently average $8.52 per day while a group of 87 BLS
investigators, many of whom travel almost constantly average $6.96 per day.
One factor that causes this difference is that the experienced traveler knows where
to find reasonably priced food and lodging. Another factor that must he taken
into account is that the Federal employee who travels frequently can't afford to
spend much more than $6 per day even though this may force him to put up with
substandard food and lodging. The travel regulations state that "Employees
traveling on official business * * * are expected to exercise the sanie care in
incurring expenses that a prudent person would exercise if traveling on personal
business." Comparisons with travelers in private industry are not conclusive as
per diem allowances sometimes vary with the size of the city visited, sometimes
with the organizational status of the individual, and an actual expense basis is
sometimes used. For example, one company makes the following per diem
allowance in accordance with the population of the city visited:
Up to 100,000 population- _ --- - - - ------- _ $8. 00
- - - - - - - - - - _____--------- 9. 00
100,000 to 500,000 population ---_ -_-- - - - - ----------------------- -
500,000 to 1,000,000 population ----------- 9. 50
--------------------------
1,000,000 and up population----------------------------------------- 11,00
A recent survey made by the Dartnell Corp. of salesmen's traveling expenses
shows that among the private industrial commercial concerns establishing limits
on expenditures for lodging and meals the averages are:
Hotel ---- --------------------- - $4.22
Breakfast---------------- - - - - - - - - - - - - - - - - ------------------------
Lunch---------------------------------
------------_-_ -------- - - 1.0
------ ----- - -
Dinner --------------------------------------------------------- 1.91
Total------------- ------------------------ 8.04
1 Trends in the Hotel Business, Harris, Kerr, Forster & Co.; Hotel Operations, Horwath & Horwath;
Trend of Business in Hotels, ilorwath & Horwath.
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28 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
The average cost of a hotel room in 1942, when the $6 per diem was established,
was $,3.24. In 1945 it had risen to $4.05, and is still rising. There is no figure to
show the cost of three adequate restaurant meals in 1942 as compared with 1946,
but estimates from the Restaurant Section, Food Price Division of OPA, were that
restaurant prices rose 50 percent between January 1942 and October 1946 and
could he expected to rise another 25 percent over the 1942 base by January 1947.
The increased costs of the other items covered by the travel allowance (tips,
laundry, cleaning, etc.) are apparent but not easily calculable. For example,
every traveler knows there is pressure for larger tips; because of the tight hotel
situation, the traveler spends more money on telegrams reserving space than he
(lid when hotel occupancy was 75 percent or less--it is now well over 90 percent.
RECOMMENDATION
Thai, the maximum per diem allowance for domestic travel be increased from
$6 to $8.
[ From Sales Management, July 1, 19481
COST OF KEEPING SALESMEN IN THE FIELD RISEs 40-50 PERCENT SINCE 1939
A new survey reveals that average cost of operating a man in a large city is
now $11.75 per day; in a small city $9.09. The findings suggest study of more
selective selling, improved routing, and plans for getting men to make better use
of their time.
The cost of keeping a salesman in the field is now at an all-time high.
In a new survey made during late May and early June among 135 representative
comparies in many industries, operating in all parts of the United States, Sales
Management learned that the average cost of keeping a man on the job in a metro-
politan center (exclusive of his traIportation in and out), is now $11.75 per day.
This compares with a 1945 figure of $10.82, and a pro-war (1939) figure of $8.37.
The increase since 1945 is 8.6 percent, since 1939, 40.3 percent.
The cost of keeping a man in a small city is now $9.09 per day, compared with
$7.95 3 years ago, and $5.99 in 1939. This increase since 1945 is 14.3 percent,
since 1939, 51.7 percent.
Averages quoted here are based on all comparable returns from all companies
participating in the survey; because of space limitations, not all reports are de-
tailed in the accompanying table.
As usual, the editors caution subscribers to use judgment in the use of the figures
and the tabular report. Naturally, the figures for a company whose men travel
mostly in small cities will seen low; suitable allowances must be made also for
disparities in the cost of living between various sections of the country.
The increase in reported costs of operating salesmen's automobiles is 8.4 percent.
Average per mile now is $0.0579, as compared with $0.0534 in 1945. However, cost
accounting on salesmen's automobiles in the majority of companies is exceedingly
slipshod, and in reporting per-mile costs, many sales managers say they haven't
made detailed calculations, are merely making a good guess.
Among the companies reporting, five use standard expense allowance plans.
One in the building materials field allows a flat $175 a month. One in drugs, $55
a week; another, $167.50 per month. One in the food field, $42 a week; another,
$40-$60 a week, depending on the territory.
About two-thirds of all the companies participating report that they are check-
ing salesmen's expense accounts much more carefully now than during the war.
About two-thirds say their men are having some substantial amount of trouble
obtaining hotel rooms at the price the company feels the men ought to pay.
Nearly half complain that salesmen are being inconvenienced by early check-out
rules in hotels, a hold-over from the war * * * "It spoils half a day's work,"
they say.
About tips: Substantially half of the companies set some limitation on the
amount of money spent for tips * * * either in a dollar-figure per day or per
week, or a percentage of total, or merely the rule of good judgment. A dozen or
more tell Sales Management, that this item must be kept in line through "periodic
check-up and discussion." Smallest amount reported as allowed per day for tips
was 40 cents; largest, $4. Seven reported figures ranging from 50 cents to under
$1; 16 reported figures between $1 and $2. Six say 10 percent.
About entertainment: This item is being watched carefully, or specifically
limited, by more than half the companies reporting. Many comments such as
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 Approved For Release 2006/09/27: CIA-RDP57-00384ROO0400130001-4
29
"limited to good judgment," "must be itemized," "limited to lunches and drinks,"
and "we check carefully" appeared in the reports. Of those who limit the enter-
tainment budget to a specific amount per week, 10 allow from $2 to $10; 11, from
$10 to $20; 4, from $20 to $30; 1, $45.
In the accompanying table the checks shown under railroad, pullman, and plane
fares are academic in most instances, because salesmen travel mostly by car.
However, in some cases the report covers not only salesmen, but supervisors,
missionary men, promotion men, service men and others not assigned to a specific
territory for routine coverage, where other-than-auto transportation is used and
allowed as a legitimate expense. Travel by air is accepted now as a commonplace
in most companies.
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 Approved For Release 2006/09/27: CIA-RDP57-00384R000400130001-4
I
Auto allow-
Industry
Tele-
Enter-
Maxi-
Maxi-
ante, or
Railroad
fare
Pullman
fare
Plane
fare
Taxi
Valet
Laundry
Stenog-
rapher
graph
and tele-
Tips (L-
limited)
taro-
ment (L-
mum
expense
mum
expense
estimated
expanse tier
phone
limited)
per day-
perdoy-i
mile unless
b,g city
small
otherwise
4
^
city
indicated
Auto parts and accessories:
I
Company 1---------- ------------
J
J
J
J
J
J
J
J
J
$10.00
$8.00
$0.06
Company 2--------------?----------
(
J
J
J -
-------- --
-
J
J
-
JL
JL
12.00
9.00
1235.00
company 3---------------------
J
J
J
___------
J
J
---------
J
JL
JL
11.00
8.00
.06
Building materials and supplies:
Company 1-----------
(
I
J
i
J
I
---------
----------
---------
J
J
J
10.00
8.00
75.00
to 90. 00
Company 2-__-____--___-___--_----?)
J
J
J
J
J
J
J
J
JL
JL
15.00
12.00
.06
Company 3-----------------------1
J
J
J
---------
J
J
J
J
---- -----
------ --
-----------
C ompauy 4-------------------------
J
J
J
---------
-
I
J
----------
J
JL
. J
8.50
7.00
---------
Company 5----------------------
J
J
J
J
-----
J
J
JL
10.00
8.00
3 42.00
to 3. 00
Company 6------------------------
J
J
J
J
J
J
J
J
J
1
12.00
12.00
-
J
J
J
-
J
-
J
J
JL
12.50
9.50
.0304
Company s------------------------
J
J
J
J
J
J
J
J
J
J
7.50
6.50
2 6 27.50
Company 9------------------------
J
J
d
J
----------
----------
---------r
J
---------
J L
10.00
7. W
80.00
Chemicals:
Company 1------------------------
J
J
J
-
--------
---------
J
J
JL
JL
10.00
7.00
--------..---
Company2--------------------- ----
J
J
J
J
J
J
J
J
J
v'
12-00
10.00
.07
Company 3------------------------ -
J
J r
J
J
J
J
J
J
J
J
10.00
9.00
__._____---
Company4------------------------
Clothing:
J
d
J
J
J
J
J
J
JL
J
12.00
10.0u
.07
companyL ------------------------
J
J
J
J
J
J
---------
J
JL
JL
8.00
7.00
362.
00
Company 2---- ---------------- -----
J
J
J
J
---------
---- -----
-
---------
J
J
J
12.00
9.00
---
-------
-
Company 3------------------------
J
J
----------
----------
J
J
__ -- ---
-
J
J
12.00
9.00
06
Company 4----------------------
J
J
J
J I
J
J
--------
J
J
J
12.00
9.00
.045
Electrical equipment and supplies:
company 1------------------------
J
` J
J
J
J
J
J
12.00
8.00
.05
Company 2-------------------------
J
1
4
J
` J
J
- -------
J
J
J
10.00
7.00
.055
Company 3------------------------
C
4
J
%
J
J
'
J
J
J
--------
J
J
J L
15.00
10.00
.06
ompany
-----------------------
Food and beverages:
;
J
J
v
J
---------
J
JL
JL
10.00
8.00
.05
Company 1
J
J
J
---------
----------
-----------
---------
-I
-
17.00
15.00
.06
Company 2----------------------
J
J
J
J
J
J
J
J
J L
12.75
9.50
.05
Comppny 3----------------------
J
J
J
-
-
----------
----------
---------
-
----------
J
J L
------
10.00
8.00
.05
Company 4-?----------------------
--?------
---------
-
----
----
----- -----
2 9. W
79.00
.05
Company 5------------------------
J
J
J
J
---------
----------
J
J
J
J
7. W
6.00
-0325
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 Approved For Release 2006/09/27: CIA-RDP57-00384R000400130001-4
Company 6---------------- -------
Company 7------------------------
Company 8-----------------------
Company 9------------------------
Hardware:
Company 1------------------------
Company? ------ ----------------
Company 3---- -------------------
House furnishings:
Company I ---------------------
Company 2-----------------------
Company 3------------------------
Company 4-------------------------
Company 5---------...------------..
Company 6------------------------
Company 7------------------------
Company 8---------------------
Industrialequipment and supplies:
Company 1--------------------
Company 2-------------------------
Company ! -----------------------
Company4 --------- --- ------ --- .
Company 5---- ------------------ I
Company 7- ------------------
Company 9-------------------------
Company 9------------------------
Company 10________________________
Company 11-----------------------
Company 12.---------------------
Company 13________________________
Company 14-----------=-------------
Company 15-----------------------
Company 16--------------------?-
Company 14 -------------------------
Company 18------------------------
Company 19----------------------
Company 20-----------------------
Ofiice equipment and supplies:
Company I------------------------
Company 2-------------------------
Company 3-------------------------
Company 4----------------------j
Company 5-------------------------
Testiles:
Company I_-------- -------------
Company 2------------------...._
11/iseellaneous-Clocks and watches:
Company I---------------------------
See footnotes at end of table, p. 32.
J
J
J
J
Ii y
J
J
J
J
" J
J
J
J
J
J
L
-L 7.50 7.50
.04
J
L 10.25 9.50
.052
JL
JL 11.00 9.00
J
J 15.00 12.50
.075
J
J 10.00 8.00
.07
J
J 15.00 12.00
.08
JL
JL 8.00
6.00
.05
J JL 10. 00
9.00
.06
J J 12.00
9.00
.07
J JL 8.00
6.50
.05
I VL 10.00
.06
12.00
8.00
.06
JL JL 10.50
7.50
.07
J i J 20 00
15.00
.015
J J 11.00
7.50
.05
J 10:00
____ 8.00
10 $12 to05$21
10.00
8.00
.05
10.00
L
-
.051
IL 15.00
J
20.00 1
10.00
15.00 I
.05
.08
JL JL 10.00
7.50 I
At
15.00
10.00
.07
J J 14.00
10.00
.06
14.00
8.00
.04
10.00
8.00
11010.00
JL JL 15.00
10.00
.06
15.00
8.50
.06
15.00
12.50
.07
,I L
4L
12.
50
I
.065
12.0
0
10.00
.06
J
J
12.00
8.50
.06-.07
JL
JL
10.00
8.00
.04
J
J
8.00
7.00
.06
12.00
8.00
.065
J
JL
8.50
7.50
12.06
9.00
7.50
13.05
I
-V L
10.00
8.00
.07
J
J
25.00
15.00
2 65.00
J
JL
12.00
10.00
J
J
15.00
15.00
.06-.06
J
J
12.00
9.00
. 06
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 Approved For Release 2006/09/27: CIA-RDP57-00384R000400130001-4
Confectionery:
Company 1 ----------------------
Company 2_
Dentalsupplies: Com
Drugs: Company.l_ ------------------
Jewelry and silverwar-: Company 1____'
Lighting: Company 1____ _____________I
Notions:
Company 1----------------------
Company 2------------------------'
Optical goods:
Company 1----------------------
Company 2------- ----------
Paper products:
Company 1-----------------------
Company 2----------------------
Smoker'srequisites: Company l------ _
!
Sporting goods: Company 1--_______..
J
1 Plus 334 cents per mile.
2 Per month.
2 Per day.
4 $3 a day away from headquarters, $2 per day in headquarters city.
5 Plus $0.0273 per mile.
B Company absorbs one-half of expense.
7 Company pays flat allowance of $9 a day to corer stye nees.
Lsgtripsonly.
9 Allowed if men are away from home more than 1 week.
t0 Perweek.
Railroad Pullman
fare fare
Plane
fare
Taxi
Valet
Laundry
Stenog-
rapher
Tele-
graph
and ele-
phone
Enter-
Tips L) - tarn-
lfmfted moot (L
limited)
Maxi-
mum
expense
per day-
big city
Max!-
mum
expense
per day-
small
city
Auto ante, or allow-
estlmated
es}iense per
mile unless
otherwise
indicated
----------
---------.
--------
----------
I
--
o
v
J
$10.50
$10.50
2$70.00
v
;
---- -- I
----
--- - _I
d
JL
dL
10.00
8.00
14.04
----
I
----------
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y
d
10.00
9.00
------
ti
d
'IL
162.50
9.50
07
1t
v
A/
d
1 v
'
---------
-V
4
1150
----------
-----
------
4
---------
---------
----------
---------
d
J
10.00
8.00
It
.06
----------
---------
----------
----------
---------
---------
114
----------
11 4
----------
--------
---------
d
---------
IL
---------
v`L
10.00
9.00
.08
--------
'I
J
d
----------
JL
dL
10.00
8.50
.04
V
xl
'
v
J
----------
'I
-
-
12.50
8.50
.07
----------
J
----------
8,00
6.50
.05
r
d
-4
'I
'1
J
-1
'! L
15.00
12.00
I k07
0 a
v
y
f
v
v
'I L
I 12.50
10.00
20.055
I v
I y
I
I
I
l
~L
dL
I 11.00
8.50
5.0
11 Allowed if men are away from home more than 1 week.
12 Company pays one-half of liability and property damage insurance.
13 Plus parking, storage, tolls.
14 Company-owned cars; 4 cents per mile is estimated cost without insurance.
16 Men located in all large cities; allowance covers only lunch and incidentals.
16 Company nays also do and
tusurauce.
17 Company pays two-thirds of insurance.
18 For first 2,000 miles each month; then 4 cents per mile.
19 Requires authorization.
20 Company-owned cars.
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 33
Rates for operation of personal automobiles
5,000
7,000
il
s
900
mile
0
s
11,00
mile
0
s
13,30
mile
3
s
18,000
miles
mile
per ye
s
ar
m
e
per ye
ar
par ye
ar
per ye
ar
per ye
ar
per ye
ar
A
v
A
u
p
u
p
v
A
v
Mileage costs:
20 cents per gallon-----
Gasoline
64.00
1
89.60
1. 28
115. 20
1.28
140.80
1.28
166.40
1. 2S
230.40
40
41
1.28
23
,
Oil 25 cents per quart____________
11. 50
.23
23
16.70
.23
20.70
.23
48
25.30
52
80
. 23
48
29.90
62
40
. 23
48
.
81.40
.
.48
Tires and tubes_______________
24.00
50
71
.48
1
43
33.60
100.10
.48
1.43
43.23
128.70
.
1.43
.
157.30
.
1.43
.
186.90
.
1.43
25240
1..43
Maintenance___________________
.
50
2:
00
775
50
2
225,
00
2
50
0e
275
2.50
325. 00
2. 50
450.00
2
50
Depreciation_____________________
120.00
.
.
.
.
.
-
-
-
_
Total ---------- _____dillars__
--
296.00
-
-_
-
414.40
--
__
--
53'2.80
---
-_
--
651.20
-___
769.60
__-_
92
5
1,065.60
____
92
5
Per mile ----------- _---- cents--
____
5.92
------
5.92
5.92
_____
5.92
------
.
-------
.
Fixed costs:
23
54
43
54
23
.30
54
.25
23.54
.21
23.54
.18
23.54
.13
License__________________________
_______
Garage
.
48.00
.
.96
.
48.00
.69
48.00
.53
48.00
.44
48.00
.37
48.00
54
9
.27
33
________________
Interest at 6 percent -----------
57.17
1.14
50. 88
.73
52.66
.59
54.17
. 49
26
55.67
29
30
.43
23
5
.
31
17
.
17
Insurance________________
28.19
.56
28.19
.40
28.96
.32
29.58
.
-
.
-
.
-
.
--
.
-
Total ----------------- dollars-._
----
116.90
--
___
--
150.61
--
___
---
153.16
--
-
155.29
____
157.50
____
21
1
112.13
____
9
Per mile ---------------- cents--
______
3. 14
______
2.15
______
42
1.70
______
43
1.41
______
43
.
-------
44
.
----
Per day-----------------do----
Per month ------------ dollars- _
43
13.07
----
41
12.55
----
___
12.76
-___
12.94
---
___-
13.12
--
13.51
____
Total costs:
Mileage and fixed dollars --------
---
452.90
---
____
--
565.01
-
-
685.96
806.49
927.10
____
13
7
1,227.73
___
'.
Mileage and fixed cents/mile -----
______
9.06
______
______
.
_______
Automobile mileage rates paid State employment security agency employees
Cents
Alabama -----------
5.
Montana---------- _
7.
Alaska
-----------
7.
Nebraska .:-------- _
5.
--
Arizona ------------
5.
Nevada ------------
7%.
Arkansas -----------
5 and 6.
New Hampshire-___-
5.
California----------
7 for first 300,
New Jersey---------
7.
6 for next 400,
New Mexico--------
7.
5 thereafter.
New York ----------
7.
Colorado
7.
North Carolina- - _ - - 6.
-----------
Connecticut--_-----
5.
North Dakota ------
734.
Delaware -----------
7.
Ohio----------------
6
Florida-------------
6.
Oklahoma ----------
6.
Georgia------------
5.
Oregon --------------
5.
-----------
Hawaii
6.
Pennsylvania- _--..--
6.
--
Idaho
------------
5.
Rhode Island -------
5.
--
Illinois-------------
6.
South Carolina------
5.
Indiana
6.
South Dakota -------
5.
------------
Iowa
5.
Tennessee ----------
5.
---------------
Kansas
5.
Texas-------------- 5.
-------------
Kentucky ----------
7.
Utah--------------
6.
Louisiana ----------
4-6.
Vermont-----------
6.
Maine
------------
8.
Virginia------------
5.
--
d
l
M
7
Washington-___--_-
5.
.
----------
ary
an
Massachusetts _ - - ._ - - 7.
West Virginia------- 7.
- 6.
Michigan
Wisconsin ----------
4% for first 1,000,
----------
Minnesota ---------- 5.
4 after.
Mississippi------_-- 6.
Missouri --_-_-_--_--
Wyoming----------
7.
Highest, 8; lowest, 41/2; average, 6; 7 cents or better, 16.
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34 SUBSISTENCE; EXPENSES AND MILEAGE ALLOWANCES
[From Information Bulletin No. 43, American Automobile Association]
ALLOWANCES FOR EMPLOYEE-OWNEI) CARS
(NOTE.-This is a third report issued in the AAA's continuing study of costs of
car operation. It brings up to date one phase of the original What Does It Cost
to Drive? folder, namely, the question of fair allowances for employees operating
their own cars on company business.)
Costs of car operation vary with make and model of car, with geographical
Iocation, with age of vehicle, with driving practices, and with ether factors. This
tends to make very difficult the problem of granting proper allowances to salesmen
or other employees who operate their cars either Lull-time or part-time on company
business.
In prewar years, a large number of companies granted flat mileage rates; 5 cents
to 6 .,cuts a mile was the usual allowance. The increase in cost of practically
every item going into car operation has made necessary a reappraisal of automo-
bile allowance practices.
There are some objections to granting a flat mileage allowance. Evidence
indicates that a flat mileage rate often results in overallowances or underallow-
ances Another method is to grant a daily or yearly allowance covering the fixed
costs of owning the car plus a mileage allowance to cover operating costs.
This method was developed by Runzheimer & Co., cost accountant engineers,
who have spent many years in gathering data on expenses incurred in operating
passenger-car fleets. Companies operating large fleets of employee-owned cars
may ftnd it advisable to contact this company which will work out individual cost
figures. For smaller operations, it is believed the following allowances will prove
fair tc both company and employee:
1. For employees operating prewar cars, grant $1 per day plus 3Y2 cents per
mile.
2. For employees operating postwar cars, grant $1.30 per day plus 3% cents
per male.
These allowances are based on operating costs of the lighter cars-Ford,
Chevrolet, Plymouth, etc. The recommended daily allowances in the Runz-
heimer master schedule for prewar cars ranges from a low of 87 cents per day (at
the Michigan basing point) to a high of $1.13 (in Montana). For postwar cars,
the range in daily allowance is from $1.18 (Michigan) to $1.46 (Montana). The
per mile operating costs vary from 2.8 cents per mile (at several basing points)
to 3.8 cents per mile (Idaho).
HEAVIER CARS
The costs of owning and operating heavier cars are obviously greater than the
costs shown above. Whether to grant additional allowances for larger cars is
largely a matter for company policy and would depend to a great, extent on the
question whether a larger car is actually needed for the operation in question or
is simply a matter of employee's choice.
REPAIRS
The above allowances are predicated on a yearly expenditure of $25 in repairs;
if repair costs run above that figure, the employee is justified in making claim for
refund based upon the extent to which the car is used in company business.
EXTRA MILEAGE
The above allowances are based on anticipated yearly mileage of not to exceed
18,000. Above that figure, a special depreciation allowance is recommended:
On prewar cars, $7 for each thousand miles above 18,000 is roughly correct, and
on postwar cars, $9 for each thousand miles above 18,000.
ELEMENTS OF CAR COSTS
Following are cost estimates on a postwar model car as compiled by Runz-
heimer for a Inidwestenl city:
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 35
14
Miles per gallon ------- ..----------- -
cents-- 22. 5
Normal gas price--------------------- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -
---------do---- 1. 83
Gas and oil per mite------ ----------------- ---
Tires per mile------------ ----------------- _ - - - - - - - - - - - - do---- 0.67
6.00
- ---------------- _ $2606
Fire and theft insurance.__ -_- - --- -------- --------------------
Property-damage and personal-liability insurance-- - --- _ _ _ _ _ _ _ -----------$12$60.. 06
License fees--------------- ------------------------ $382.00
Annual depreciation ------------ --------------------------------- $480.21
Total annual fixed costs ----------- -- ------------------------------ $1. 32
Fixed allowance per day --------- --------------- ---------cents- - 3. 2
Additional per mile allowance-___-_- --------- ---------------
MILEAGP; ALLOWANCE
If it is found desirable to work out a flat mileage allowance in place of the
method outlined above, this can be done by using the figures presented in relation
to total mileage per year as follows:
Assume a postwar car that is driven 10,000 miles annually, the national aver-
age. The fixed cost for the year will be $475 and the mileage cost $350--for a
total of 8825 or 81/ cents for each of the 10,000 miles driven. Similar computation
for a prewar car gives a mileage cost of just over 7 cents per mile.
EFFECT OF SPEND
The above costs are based upon average driving speeds. However, it is worth
noting that speed has a very marked effect upon mileage costs. Following
are rough estimates as to car operating costs at various average speeds (mileage
elements only) :
,total cost
per mile
Speed (miles per hour) : (cents)
25------- - - - - - - - - - - - ------------------------ 2.1
--
----------- 3.4
55----------------- --------------------------------- 4.5
--------- 5
It follows, then, that employees compensated at, the rates recommended above
will find themselves several dollars to the good at the year's close by driving at a
moderate pace. R. W. TUPPER,
Assistant Director, Department of Public Relations.
THE ORGANIZATION OF PROFESSIONAL EMPLOYEES
OF THE UNITED STATES DE
Washington, D. C., PARTMENT OF AGRICULTURE, iryE,194-9.
Hon. WILLIAM L. DAWSON,
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, United States, Washington, D. C.
DEAR MR. DAwsoN: As your committee approaches the final stages of its con-
sideration of the bill 11. R. 3005, a bill to regulate subsistence expense and mile-
age allowance of civilian officers and employees of the Government, it might per-
haps he disposed to consider a letter regarding the present costs of travel on
official business which I recently have received from Mr. James K. Knudson, a
member of the Office of the Solicitor of the Department of Agriculture.
Mr. Knudson has reduced to fairly concise form the gist of the declarations
on the subject by most members of the Department of Agriculture who have to
engage in official travel. The price levels that have to be met, the experiences
encountered, the excess of actual cost over the $6 per diem maximum now in effect,
as cited by Mr. Knudson, are the rather common experiences of the average
traveler on official business under current conditions. The establishment of a
maximum rate of $10 per diem within the limits of the continental United States
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would not mean that all per diem allowance would be fixed at that rate but it
would make possible equitable adjustments where the reasonable costs of travel
approached or exceeded $10 per day. As executive officer of the Organization
of Professional Employees of the United States Department of Agriculture, I
strongly urge that this proposed maximum rate of $10 per day be approved by
your committee and by the Congress.
Another point of interest to the members of this organization is that covered
by section 4 of the bill, through which the maximum allowance for the use of
privately owned automobiles would be increased from the present rate of 5 cents
to the proposed rate of 7 cents. In a minority of cases the 7-cent rate would be
fully justified by all equitable considerations. Where private ownership of an
automobile is primarily for personal use, the use for official purposes being minor
and incidental, the present maximum of 5 cents per mile normally is reasonably
satisfactory because in such instances the private owner would in any event
assume the cost of depreciation, taxes, interest, etc., leaving as official reimburs-
able items merely gasoline, oil, tires, and unusual maintenance.
This organization is advised, however, that in some of the Federal agencies,
notably the Rural Electrification Administration, a different situation prevails.
Such organizations require a large proportion of field travel frequently remote
from the main facilities for mass public transportation. At the same time such
organizations are limited by statute or by finance to numbers of official cars which
are completely inadequate to the requirements of the work.
In consequence, field of eers whose duties require extensive travel, as, for exam-
ple, engineers or appraisers, are required to purchase automobiles in order effi-
ciently to perform their duties and not primarily for private use. Ills represented
that in some such cases 80 to 90 percent of the total use of a car is exclusively for
official purposes. In this circumstance, the basic costs of depreciation, taxes,
interest, etc., combined with the normal costs of operation, markedly exceed the
present maximum rate of 5 cents per mile and subject the owners of such cars to
definite financial loss every time they are used for official work.
Were section 4 of H. R. 3005 enacted into law, there is every probability that
in the majority of cases rates of 5 cents per mile or less would continue to prevail.
Under present conditions the mileage rates in the least expensive territories are
understood to be less than the now authorized 5 cents per mile. An abuse of the
increased authorization seems quite improbable. On the basis of the information
I have derived as executive officer of this organization, my feeling is that the
adoption of section 4 is fully justified and I hope it receives the approval of your
committee.
Cordially,
ARLINGTON, VA., March 14, 1949.
Mr. L. F. KNEIPP,
Executive Officer, Organization of Professional Employees of the Department
of Agriculture, South Building Post Office, Washington 25, D. C.
UEen MR. KNErrr: I believe that you are to appear before a congressional
committee in behalf of the Professional Employee Organization of the Department
to make representations concerning the inadequacy of the present per diem al-
lowed Government employees in a travel status. Over the past several years
I have been in a travel status out of Washington in most parts of the United
States. My work as a lawyer requires me to associate with lawyers, witnesses,
and other court and hearing personnel who are generally involved in the same
proceedings to which I am assigned. However, even though many of the lawyers
representing private parties have the advantage of large expense accounts, I do
not consciously try to maintain the same standards of expenditure that they do.
On the contrary, even though I am required to associate with theri, I find it neces-
sary to curtail my expenses to the bone in order to make it even possible for me
willingly to represent the Government in a travel status.
In 1941 or thereabouts, a $6 per diem was not unreasonable. It did allow one
to break about even if he watched his miscellaneous expenditures. As the war
progressed and accommodations became less selective, and as priees went up, the
$6 per diem became more and more inadequate, and during the past 2 years, it
has been but a token payment so far as actual expenses are concerned unless the
traveler is willing to make many personal sacrifices. I, for instance, stay at
middle-class hotels, such as the Sherman and Morrison in Chicago, the Ansley in
Atlanta, the Cosmopolitan in Denver, the Temple Square in Salt Lake City, and
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37
I have generally found it impossible in these or any of the other hotels to secure a
room during the past 2 years for less than $4.50 a night, and on many occasions
the rooms I have had to secure have been $6 a night. I usually write in advance
asking for the kind of a room that would be generally sought by a Government
employee in a Government travel status, and the reservations that have been
made have been for single rooms with a shower and generally on a light court.
I find it impossible to obtain breakfast for much less than $1, not including
the tip, although by eating in cafeterias it is possible to reduce this expenditure
on occasion to 75 cents. Lunch, if one wishes to dine alone at some selective
place, generally costs about $1.50, including a tip, but if one goes to lunch with his
associates who are thrust upon him as a result of his Government activity, more
often than not lunch costs $2 and up. Dinner is at least a $2 enterprise nowadays
and if one desires to eat in the style of his business associates this figure would
also be conservative. So that it can be said that meals cost about $5 a day at the
least. There are miscellaneous other items that are not collectible on an expense
account, such as most taxi and streetcar fares, porter service, redcap service, valet
service occasioned by living out of a suitcase, and other incidbntal items directly
connected with travel, which add at least another dollar to a day's financial outlay.
I have reported to the income tax authorities that it cost the between $10 and
$11 a day for every clay I traveled for the Government in 1948. Seventy-five
days in travel status would mean that the privilege of traveling for the Govern-
ment costs me $375 more than the per diem allowed.
I wish also to state that one of the worst features about the bobtail per diem
is that to the average Government employee it might well increase the ever-
present temptation to accept treats, drinks, dinners, and other minor gratuities
from the ever-present clan of expense account travelers who cross the Government
traveler's path. The conscientious Government employee when treated courte
ously in this respect will endeavor to repay in kind so that no obligations will
arise. This conscientiousness, of course, imposes a further strain on the Govern-
ment traveler's pocketbook.
The only alternative to escape the difficulties cited above would be to take a
room in some louse-ridden hotel, eat hot dog.,, wear wrinkled clothes, and make
his purse an abiding place for moths.
I might add that the situation is not much better on the train, even though a
pullman berth, is furnished as part of the travel account, for the reason that
diner-car meals have rocketed to scandalous heights and the honorarium that one
is required to give to porters, etc., more than eats up the balance.
On the whole, I should think that a $11 per diem would be realistic but by no
means extravagant.
Very truly yours,
JAMES 1C. KNUDSON.
lion. WILLIAM L. 1)Awsore, MARCH 17, 1949.
Chairman, Committee on Expenditures in the Executive Departments,
House of Representatives, Washington, D. C.
DEAR CONGRESSMAN DAwsoN: I am writing in behalf of the personnel of the
Federal courts to urge favorable action by your committee upon the pending
bill to regulate subsistence expenses and mileage allowances of civilian officers
and employees of the Government (l3. It. 300:i). The Judicial Conference of the
United States, consisting of the Chief Justice of the United States, chairman,
and the chief circuit judges of the 11 judicial circuits of the country, at its last
annual meeting held in September 1948 recommended increases in the present
provisions for reimbursement of personnel of the courts for expenses incurred for
subsistence and for the use of privately owned automobiles while engaged in
oUlcial travel. The pending bill conforms with the recommendations and if
enacted will redress serious injustices in the present rates of reimbursement.
The present allowance for expenses of subsistence of officers and employees of
the judicial establishment, other than judges, is a per diem sum of not to exceed
$6 within the limits of the continental United. States (5 U. S. C. 823). In this
the supporting personnel of the courts share with Government officers generally.
The allowance for subsistence of Federal judges is presently fixed by section 456
of title 28 of the United States Code at their "reasonable maintenance expenses
actually incurred, riot exceeding $10 per day." The rate of reimbursement to
all personnel of the courts including judges, for the use of privately owned auto-
mobiles in official travel is fixed at not to exceed 5 cents a mile outside of their
official stations, and 4 cents a mile within them (5 U. S. C. 73a).
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38 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANTCES
The pending bill would assimilate the allowance for subsistence of officers and
employees of the courts, other than judges, while engaged in official travel, to the
similar allowance for other personnel of the Government as at present, but would
increase it to "a per diem allowance to be prescribed by the department or estab-
lishment concerned, not to exceed the rate of $10 within the limits of the conti-
nental United States and in case of travel beyond the limits of the continental
United States not to exceed rates established by the Director of the Bureau of the
Budget for the locality in which the travel is performed."
The bill leaves the allowance for subsistence of judges' in official travel to be
separetely provided for as at present, and another bill has been introduced and is
pending (H. R. 2166) which would continue the present plan of reimbursement
for subsistence of judges on the basis of their actual expenses, but would raise the
maximum limit from $10 to $15 a day. The bill before your committee (II. R.
3005) would also raise the rate of reimbursement for the use of privately owned
automobiles for official travel by all personnel of the courts, including judges,
from'5 cents a mile as at present to 7 cents.
The increases in the rates for both subsistence and mileage for which the bill
provides, have been urgently needed for a number of years. It needs no argu-
ment that $6 a day, which is the rate prescribed by the present law (5 U. S. C. 823),
is much below the cost of transient accommodations in many if not most places
in this country at the present time. A suitable room in a hotel and modest meals
cannot be procured in a large number of places in which the supporting personnel
of the courts, including clerks and their deputies, secretaries, and law clerks to
judges, court reporters, and probation officers are called upon to stay within a limit
of $6 a day. Section 62b (1) of the Bankruptcy Act as amended allows to referees
their actual expenses for lodging and subsistence not to exceed $ 7 per day while
in a travel status. But this amount, too, is insufficient in most places, and for
the referees as for most other personnel of the Government, a flat allowance in an
adequate amount, for which the pending bill provides, is needed.
There is equal necessity as a matter of justice for the increase in the mileage rate
for the use of privately owned automobiles for official purposes provided for in the
pending bill. The act fixing the present rate of 5 cents (47 Stat. 1516, 5 U. S. C.
73a) was enacted in 1933 when prices generally were on a low level. It is well
known that since then the cost of operating automobiles has increased very much.
The price of gasoline, the cost of amortization due to the sharp advance in the
price of automobiles, which has almost doubled in recent years, the cost of replace-
ments arLd repairs, and virtually all substantial elements of cost involved, have
gone up very much. Court personnel who are limited to payment of 5 cents a
mile, have a deficiency to make up out of their personal funds every time they use
their automobiles for official travel. The court personnel who have occasion to
do this include many judges and clerks of court and their deputies, secretaries
and law clerks of judges, court criers acting as bailiffs and messengers, court
reporters, referees in bankruptcy, and probation officers.
The need of the supporting personnel of the courts, other than probation officers,
occurs principally in districts in which terms of the district courts are held from
time to time at a number of different locations. In such situations there would be
much loss of time and energy in using common carriers. Frequently a number of
officers travel together in one automobile for use of which only the officer who owns
the car is reimbursed. Travel by automobile under these conditions makes for
efficiency and results in a saving for the Government. Clearly the officers who
use this method should be made whole for their expense.
The Federal probation officers use automobiles not only to attend terms of
courts at which they have duties to perform as do other officers, but to make
numerous calls upon persons in scattered locations whom they are supervising
or whom they need to see in connection with their present investigations under
Criminal Rule 32 (c) (1). Many probation officers have occasion to run their
automobiles anywhere from 10,000 to 25,000 miles a year. The present rate of
reimbursement, 5 cents, is conservatively believed to be 2 cents per mile below
cost, and upon this basis such officers are required to contribute anywhere from
$200 to 5500 a year out of their salaries. This plainly is not just.
The present bill would correct the deficiency by raising the maximum rate to
7 cents. It also would do away with the distinction in the present law between
travel outside of the official station and travel within it, for which a lower rate of
only 4 cents is allowed. This is anomalous because travel within the official
station on account of the numerous stops and starts involved, is obviously more
expensive than travel outside. The pending bill corrects this.
I desire to express in behalf of the Judicial Conference and of the Federal courts
my gratification that the personnel of the courts have been included with Govern-
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
ment personnel generally in the relief which is proposed. If granted it will remedy
what has been a glaring injustice and be very beneficial to the morale of the court
service.
With kind regards, I am,
Sincerely yours,
The following supplements the information contained in the list dated June 11,
1948, showing departments, agencies, bureaus, etc., which reduced the authorized
rate of per diem in lieu of subsistence and/or limit the period for which the per
diem may be paid
Organization
Department of Agriculture:
Plant Industry and Soils ___--___-_-_
Production and Marketing Admin-
istration.
Soil Conservation Service ___-----____
Office of Agricultural Research----__
Department of Commerce:
Civil Aeronautics Administration __-
Weather Bureau---------------------
Geological Survey -------------------
Federal Works Agency: Public Roads
Administration.
National Housing Agency: Federal
Housing Administration.
Region 1--------------
Region 2--------------
Region 3-------------
Region 4--------------
Region 6-------------
Region 6_________
Region 7--------------
Region 8--------------
Region 9--------------
Region 10 (Alaska) - _ _ -
Region 12-------------
Va lous_______________
Tennessee, Kentucky,
North Carolina,
South Carolina, and
Virginia.
California, Mississippi,
Oregon, Georgia,
Louisiana, Alabama,
and Texas.
Various States----_----
Region 1---------- -----
Regions 6, 10, 11, 12,
15, 17.
Regions 1 and 12-_----
Various--------- -___
Various---A u t h o r i z a-
tions issued in Wash-
ington, D. C.;
Kansas City, Mo.;
Denver, Colo.; Port-
land, Oreg.; and San
Francisco, Calif.
Rate authorized and/or other
limitation
$5; $5 for 5 days and not to exceed $3
and $4 thereafter; $6 on route and
$4.50 for 20 days; $6 for 5 days, $4
thereafter, not to exceed 20 days.
$2 to $5.60.
$2.60 to $4.
$2 to $6.
$5 to $6.
$2 to $6.
$2 to $6.
$3 to $4.40.
$3 to $5.40.
$4 to $5.60.
$3 to $7.
$4.60.
$6 for first 30 days, and $5 for next 30
days; $4 for travel wholly within a
day.
$6 for 15 days, $2 for the next 45 days,
and no per diem in excess of 60 days
except by special authority.
$6 for first 30 days, and $5 for next 30
days, and no per diem thereafter.
Orders provide that no per diem will
be allowed between 7 a. in. and 7
p. m., or 7 a. in. and 6 p. M.
$6 $2$ and $2 50 while in camp. d $4,40;
$8; authorized rate to be reduced ac-
cording to locality considering type
of work and length of period of duty.
$6 for 60 days; $5 for the next 30 days;
and $4.50 thereafter.
15
$7 on route and for the first ]
$4 aboard ship for days;
purposes.
No per diem on Navy vessel.
$6 that 30 days and $5 thereafter, $3 on
vessel where meals and lodgings are
included in price of passage.
$6 within and without continental
limits of United States; $4 aboard
ship for observation purposes.
Various rtes from $2 toi6 authorized,
except that $1 or $2 will be paid for
trips in excess of 10 hours, providing
overnight travel is not involved.
$6 to and from temporary-duty station;
$6 for each of first 90 days; $5 for next
30 days; $4 for next 30 days; $3 for
next 30 days; $6 for travel from tem-
hours. Effective oJan, m 949, $6 for
180 days, none thereafter.
Limitation referred to rescinded Sept.
6, 1946.
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40 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
There are no administrative regulations or travel orders on file to indicate that
there has been any change in the rate of per diem. and/or limit of time the per diem
may be paid as shown on the list of June 11, 1948, for the following departments,
agencies, bureaus, etc.: Department of Agriculture-Federal Crop Insurance
Corporation, Agricultural and Industrial Chemistry, Commodity Exchange
Authority, Human Nutrition and Home Economics.
Administrative regulations and travel orders on file indicate no change in per
diem and/or time limit that per diem may be paid for those agencies, bureaus,
etc., not included herein.
DEPARTMENT OF LABOR, OFFICE OF BUDGET AND MANAGEMENT
DATA ON COSTS OF SUBSISTENCE AND MILEAGE WHILE IN TRAVEL STATUS ON
GOVERNMENT BUSINESS
(Submitted January 18, 1949)
SUBSISTENCE
James E. Dodson, Director, Office. of Budget and Management
Official trip to Chicago January 1949. Reservation made in advance in letter
to Hotel Stevens. Acknowledgment of reservation received. Arrived Hotel
Stevens. Letter indicating reservation presented. Advised room would not be
ready until 3 p. mim. Baggage checking necessitating unexpected additional tips
to porter. On return to hotel in afternoon, advised no single room available.
Only possibility was a suite of rooms priced at $30 which would be made available
for two occupants for $7 each. Mr. Dodson occupied room with another official
from the Department of Labor. Each paid $7 per night for 2 nights.
Another representative of the Department, Boyd C. Anders, paid $7 per night
at the Hamilton Hotel when he thought he had a reservation. for a $5.50 per
night room. Other members of the group who were in Chicago at the same time
had to pay a minimum of at least $6 per night.
John C. Shinn, field operations officer, Wage and Hour; official staiion, Washington,
D. C.
Uses his own car for official business. 1947 Buick. Has figured his expenses
for income-tax purposes with a total deficit of $616.35 based on losses on per diem
and low mileage rate. Figures his mileage rate $0.086 per mile. Estimates daily
subsistence expenses:
Per day
Hotels (average from bills) ------------------------------------- - - - - $3. 97
Meals- _ _ 4.25
Tips, taxes not paid for by the Government, telegrams for reservations,
baggage checks -------------------------------------------_ -------- 1.00
Laundry and pressing ----------------------------------------------- .75
Total 9. 97
Mr. Gleason, regional director, Wage and Hour, Boston, Mass.
Thirty-two days in travel status in calendar year 1948. Estimates his average
daily hotel costs $4.85. Other miscellaneous subsistence expenses, $6 per day.
Average total daily cost, $10.85.
William S. Singley, regional director, Wage and Hour, Cleveland, Ohio
Six trips to Washington, D. C. Reservations made in advance, Washington
Hotel. One stay, $6 per day. Washington Hotel, another stay, $7.50 per day.
Hamilton Hotel, $4.50 per day. Raleigh Hotel (3 stays), $5 per day. Reserva-
tions for rooms secured here. "Musts," no other choice being available.
William J. Rogers, regional director, Wage and Hour, Dallas, Tex.
"Several months ago I met Hugh Cole in El Paso to have a conference with
a national-known contractor whose headquarters were there. After our confer-
ence the contractor had one of his men take us to town. He asked where we
were stooping and when we told him. the name of the hotel, he said, `I have been
in 101 Paso for many years, but I just don't know where that hotel is located.'
"Whe:i it comes to hotel accommodations, they (men) are staying at second-
rate tourist courts and whatever hotels they can get into."
Aft
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"I have kept track of the money I have personally spent on travel during
the last year and car costs. My average expenditure for 89 and a fraction day's
travel has been $10.16 a day. The cost for my automobile has been slightly over
10 cents per mile. As I used my automobile for over 4,000 miles on official
business, you can see the loss involved. This loss on automobiles is going to
continue as people replace their cars and buy higher-priced ones. For example,
I had up until about a year ago a 1939 DeSoto that cost me $1,106. The same
make and model of the car in Dallas today costs $2,369.50 without radio, heater,
and seat covers."
Charles A. Britton, Bureau of Apprenticeship, region VII
Hotels
Per day
New Orleans (4 days) ----------------------------------------------
$4.50
Miami, Fla. (4 days) -----------------------------------------------
7. 50
Orlando, Fla. (3 days) ----------------------------------------------
8.00
Jackson, Miss. (5 days) --------------------------------------------
5.25
Charleston, S. C. (3 days) ------------------------------- ,-----------
4. 50
Jacksonville, Fla. (7 days) -------------------------------------------
4. 25
Clarence T. Lundquist, field operations officer, Wage and Hour, Washington, D. C.
(official station)
His analyzed expenses covering 130 days of travel with hotel accommodations
in second-rate or lower hotels are as follows:
Hotel------------------------------------------------------------
$3.85
Meals------------------------------------------------------------
3.50
Tips-- --------------------------------------------------
.70
Laundry----------------------------------------------------------
.60
Total-------------------------------------------------------
8.65
Marvin Methvin, field operations officer, Wage and Hour, official station, Washington,
D. C.
Official assignment in past years have taken him to Boston, Mass., $4; New
York, N. Y., $6; Philadelphia, Pa., $4.50; Raleigh, N. C., $4; Birmingham,
Ala., $3.50; Cleveland, Ohio, $4; Chicago, Ill., $4.85; St. Paul, Minn., $4.50;
Kansas City, Mo., $4; Dallas, Tex., $4.50- San Francisco, Calif., $4; Portland,
Oreg., $4.50; Seattle, Wash., $4; Denver bolo., $4. Only twice was he able to
secure room under $4 per night. Average cost was $4.25 per day resulting from
shopping around and usually staying in cheapest and poorest rooms in second-
and third-rate hotels. Due to increased food costs has had to patronize cafeterias
and less desirable restaurants in order to keep average meal costs to about $4
per day. Laundry, tips, package checking, telephone and telegraph costs for
reservations are other items which enter into the picture which are not reim-
bursable.
Other expenses which could not be put on a "daily" cost figure but which add up
to an appreciable amount during the course of a year are baggage checking,
telephone calls, and telegrams for reservations, non reimbursable taxi fares, etc.
"By swallowing my pride and sacrificing comfort as to hotel accommodations,
and `tightening my belt' as to meals, I have managed to squeeze by on an average
cost of about $10 per day, or a mere personal loss of only $4 per day."
Harry D. Manpin, inspector, Texas
"I could not afford to stay and eat at first class places; therefore, the food and
lodging does not reveal the expense of accommodations fitting a Government
inspector. I stayed mostly in tourist camps and not the best of those."
Statement on mileage and subsistence costs in Region I, Wage and Hour, aver-
aged by States and by different classes of employees, is attached. This shows
average mileage costs range from $0.062 to $0.097; hotel costs range from $3.50 to
$4.85 per day; average daily costs of subsistence and other miscellaneous expenses
from $3.70 to $4 per day. Daily average for all subsistence from $7.30 to $10.85.
P. Schilling, supervisor, Wage and Hour, Maine
Auto travel official business 2,099 miles, calendar year 1948. Mileage cost
based on repairs and depreciation, etc., $0.097 covering 40-days in travel status.
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Donald D. Drew, inspector, Wage and Ilour, South Dakota
1948---4,310 miles on official business-83'/ days in travel status.
Milee,ge cost $0.0726, which does not include towing charges and other charges.
Paid from $2.50 to $4.85 per day for hotel rooms, but only once or twice a week
felt flush enough to have a room with bath.
J. Sidney Gonsoulin, branch manager, Wage and Ilour, New Orleans, La.
"The inspectors in Louisiana abhor the thought of travel principally for the
reason chat they lose money on per diem and mileage. It is possible for them
to reduce their losses from a standpoint of per diem by eating less than they might be
accustomed to. However, there isn't any way to overcome the loss on mileage allow-
ances. Gasoline costs 32 cents a gallon in Louisiana and travel on the types of
roads which we must travel in conducting lumber inspections plays the mischief
with an automobile, new and old. As you know, half of our annual quota is
lumber. Incidentally, travel on gravel and dirt roads also tends to increase the
laundry and cleaning bills."
O'Neill Barrett, inspector, Wage and Hour, Mississippi
April 1, 1948 through November 30, 1948. Total mileage 9,670. Official
business total cost $706.09. Average mileage cost .073. Number days in travel
status 194 %.
George B. Knipp, inspector, Wage and Hour, New York, N. Y.
Total mileage on Government business, 4,203. 65 days in travel status covered
in report. Total cost $375.52. Average cost per mile for Government travel
.0287. Average cost of hotel room $3.50 per day. Average cost of meals $4.50
per day. Laundry, tips, other services, $1 per day. Total average cost, $9 per
day.
(NOTE.-Uses Buick, 1940.)
Robert S. Podbros, inspector, Wage and Hour, New York
Four thousand miles on Government business. (Hudson 1948) 50 days of
travel status. Average total cost, $382; average mileage cost, 9.6 per mile. In
travel status, 1948, 60 days (some travel by public transportation). Average
hotel coat, $4 per day; average meal cost, $4.25 per day; miscellaneous expenses,
including tips and other fees, $0.75 per day; average cost subsistence, $9 per day.
Sarah h arris, inspector, Wage and Hour
From January I through October 31, 1948, total official mileage, 2,236; total
cost, $167.15; average mileage cost, $0.074. Number of days in travel status,
31 z. 1946 Ford.
Clayton Carden, inspector, Louisville, Ky.
Official mileage from January 1 to December 24, 1948, 10,603; average cost,
$679; average mileage cost, $0.06355; number of days in travel status, 103%.
1948 Chevrolet.
Charles N. Conner, area supervisor, Bureau of Apprenticeship, Atlanta, Ga.
"My personal income-tax figures, show that during year 1947 I suffered a loss
of $406. Incidentally, the income-tax department told me that my figures were
conservative. I did not include expenses you necessarily incur, such as treating
business associates to lunch, tips, and a number of miscellaneous expenses. I
have not as yet estimated my 1948 loss on travel, but I am certain that it will
exceed the loss that I suffered during the year 1947. I cover the State of Florida
and during the winter season hotel rooms will cost anywhere from $6 to $20 a
night."
Miles on 1941 Dodge sedan, official business, 9,190:
Cost--------------------------------------------------------- .$539.55
Ite;.mbursement, at 5 cents per mile---------------------.------- 443,90
Loss------------------------------------------------------- L05.1 65
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 43
Stephen S. Kaler, field representative, Bureau of Apprenticeship
Mileage, October 1948, official business, 1,934 miles:
$109.06
Total cost ---------------------------------------------------
5 cents per mile ------------------------------------
.
96.70
Loss ---------------
Mileage cost, $0.0613 per mi e no ep >
Uses own car 84 percent for official travel. Gas costs 31% cents per gallon.
John M. Ekeberg, inspector, Wage and Hour, Butte, Mont.
1 ( r airs 1948 included) .
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 Approved For Release 2006/09/27: CIA-RDP57-00384R000400130001-4
U. S. Department of Labor-Chart on mileage and subsistence costs in region I
Total cost
Total gas, oil, re-
mileage pairs, stor-
age, etc.
Number
, Overage dailv1
-
n ..,,..,
A ~ erage
milea
e
days in
gc
hotel el
cost
-rage daily
cost
miscel-
cost cf all
g
cost
travel
co
ae
laneous
sub-
subsistence
status
dations
sistence ex-
penes expenses
penses
Mr. Blake, Regional Mr. Gleason, Regional Director--------------- ____
Mr. Nelson, Assistant Regional Director ___ ____
Supervisory Inspector ------------
R
i
l
January to December 1948_
__do-_
---------
I do
3 ----------
i ------------
------------ 32 $4.85
--- ---- 11 i 4.85
I 2, 658 $186:00 30 4.85
------$0 07
$6.00 $10.85
~ 6.00 10.85
1 6.00 10.85
eg
ona
average-------------------------------
_
07
SUPERVISORY EMPLOYEES
Maine: Schilling. P_________________ -------------------
January to December 1948
2
090 203
00
Connecticut: Clark, G---------------------------------
1
----
?----------
,
.
.097
40
3.75
' 4.00
7.75
Massachusetts: Jordan, J -.__________________________
Western Massachusetts and Vermont: Masucci
J
-
d0
I
15
12
4.85
3.85
5.00
4.25
9.85
8
00
,
____,
Re
i
l
---
----- --
20
4.85
6.00
.
10.85
g
ona
average--------------------------------
------
I------------
Gould, A------------------------------------------
Connors, C________________
January to November 1948__
Janu
t
D
3, 962
314.91
.08
3.50
3
60
7
10
________________________
Belley, A -----------------------------
ary
o
ecember 1948__
do
4,177
24
600
275.00
624
00
1
.065
3.50
.
3.75
.
7.25
Connecticut: Rodio, O___________________
November 1948---
-----
,
391
.
,
32
45
.0661
3.75
3.75
7.50
es ern Massachusetts and Vermont:
-
-----
.
.083
4.00
4.00
8.00
Wason, J-----------------------------------------
Tracy
T
September to December 1948
3, 529
1
2
1
237
00
07
,
---------------------------
Varley
G
May to November 1948_
,
0
,:,
, 090
.
367.87
.
.072
3.50
3
50
4.75
8.25
,
------------------------------------------
New Hampshire:
May to August 1948---------
4,157
267.84
.064
.
3.50
5.15
5.00
8.65
8.50
Spaulding, C ----------------------------
Learmonth, A
---------------------------------
January to December 1948 do
8,736
524.00
.06
3.75
4.00
7
75
Massachusetts;
----
------------------`
11,654
757.50
.065
3.75
4.00
.
7.75
Giorgio, F ----------------------------------------- I
reitlt, J-------------------------------------__--_I
- do --------
July 1947 to June 1948-_-----
3
56
240.00
.Md
068
57
38
450 I
4.
4.60
9.0
1
Regionai ave
_
1
-1
.
.00 1
3.75
7-75
rage -----------
------------------------------ -----
-------
------------ I
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Average
mileage
cost
Average
daily hotel
cost
Average
daily cost,
miscella-
ncons sub-
sistence
expense
Daily aver-
age cost for
all subsist-
ence
Maine.---------------------------------- -------
$0.07
$3.60
$3. 70
$7.30
Connecticut_----------------- ------------------ -------
.083
4.00
4.00
8.00
Western Massachusetts and Vermont__________ -------
.068
3. 50
4.05
8.50
New Ilarnpshire ------------------------ -----------
.062
3.75
4.00
7.75
Massachusetts--------------------------------- --_----
.067
4.25
4. 25
8.45
Regional average:
Inspection employees --------------------_
-------
.07
4.00
4.00
8.00
Supervisory employees-_- ---------------
_--_--_
.007
4.25
4.80
9.00
Administrative employees ------------------
._-__-__
.07
4.85
6.00
10.85
9.25
To: Mr. Edward F. Gallagher.
From: Charles Conner.
Subject: Increased per diem.
DEAR En: Since this is the, beginning of a new year and we continue to lose
money on our travel, I am hoping that you can use the attached information sup-
porting the claim that $6 per diem is not sufficient to cover the expenses of anyone
doing field work who is employed by the United States Government.
You will see from the attached exhibits that a part of any personal income tax
figures show that during the year of 1947 1 suffered a loss of $406. Incidentally,
the income tax department told me that my figures were conservative. I did not
include expenses you necessarily incur, such as treating business associates to lunch,
tips, and a number of miscellaneous expenses that are too numerous to mention.
I have not as yet estimated my 1948 loss or? travel, but I am certain that it will
exceed the loss that I suffered during the year 1947. The reason I say this is
because hotels have been allowed to increase their rents, and then as you know I
cover the State of Florida and during the winter season hotel rooms will cost any-
where from $6 to $20 a night. Meals in restaurants have also increased con-
siderably.
I certainly hope that something can be done to raise the subsistence allowance
because it does not seem fair that an employee of the Government should have to
dig into his own pocket to pay for expenses incurred handling official business.
EXHIBIT :k
Goss on PO automobile (1941 Dodge sedan)
Speedometer reading:
December 31, 1948----__-__._ -__-
-------------------- -------
18, 594
January 1, 1947.----------------------------------------------
17, 106
Total miles traveled---------------------------------------
11,488
Miles used on Government business as per travel vouchers-_---- 8,
878
Miles used on Government business official station not claimed-_
312
190
9
,
2, 298
Cost:
Gasoline -------------- ------------------------------------
$238.41
Oil and grease --------------------------------------------------
39.90
Tires and repairs --__.--_
--------------- - -------------- - _ _ _ _ - -
110.00
Car repairs------------------------------------------------------
154.50
Storage--- ----- -------------- .
60.00
Insurance-__---------------------------------
84.00
Depreciation (none) -------------------------------------------
-------
Total-----------------------------------------------
- - - _
686.
81
Less 20 percent personal use ------------------------------------- ._
137.
36
Total cost-------------------------------------------- .
549.
55
Total reimbursement, 8.878 miles, at 5 cents------------------------
443.
90
Loss claimed----------------------------------------------
1.05.
65
1 Repaired speedometer, 1946.
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
EXHIBIT 11
Subsistence, travel loss
Days in
travel status
Actual
expense
Rei:mburse-
rnee
rercivod
January --------
-----
-----------
-
------------
Februar~`-----
14V4
$126.00
$51.10
$40
50
--
-
------------------
-
-
----------
M. arch
9s,4
81.50
58
50
.
23
-----------------------------------------
- pril
A
63.75
.
45
00
.00
-------- ----------- -
y----------
-------
Irme __.._ ---------------
1
83. UO
57.25
.
57.00
37.40
18.75
26.00
19.85
-...---
August
Sc
te
b
515;4
144.00
15
01)
94.50
49.50
*
p
m
rr------------------------------------
Octobe
O
( 1
.
091.50
23
50
r- -- ----------------------- ------------
November
22.5(1
16
50
C)
- ---------- ------
Derembe^
S
72.00
.
48
00
6.00
-----
13
111.25
.
78.00
24.00
33.25
-- ----
115
988.75
688.40
300.35
No travel sick leave.
1947 expense (used 1947 income-tax return)-Recapitulation exhibits A and R
Tonal travel reimbursement received
Subsistence received
ncidentals_--.------___-_- 443.90
-- -
Loss claimed:
Subsistence
Mileage auto ._____-__-_.-_----
Incidentals
To: Miss Jav.
From: Harris Shane.
$4188. 4400 I $988. 753 $300.35
549. 55 105.65
36.23 36.23
1,168.53 1, 574. 53 406.00
This is in response to your recent request concerning expenses on field trips. ?f,
I eat a standard breakfast of orange juice, eggs, toast, and coffee. [ notice that
with tip this cost me $1.50 on September 27 on the National Limited; $1.50 on
the Southern Pacific's Golden State on September 29, and an average of 90 cents
or $1 in hotels. Breakfast, therefore, takes a sizable chunk of the per diem.
Lunch or trains also runs about $1.50, and dinner on this last trip (far from the
most expensive dinner) cost $2.50 to $3.
The expensive meals on the trains make it impossible to accumulate enough
out of the $6 while traveling on the train to pay the extra expense of hotels.
In St. Louis on September 27, I was lucky enought to get a hotel room for $5.
Some of the others had to pay $5.75, and Mr. Peron had to pay $6.50. In Los
Angeles we stayed at the Mayflower, which is decidedly a second-rate hotel, and
paid $5. I have found it very difficult to get any hotel room in a conveniently
located, reasonably clean hotel, for less than $5. When you add to this tips and
laundry, you have a slight deficit and must be expected to live on cereals and gruel.
To: Edward F. Gallagher. JANU^.Ils' 7, 1949.
From: E. K. Jenkins (r. e. 1.).
Subject: Account of expenses for the month of October 1948.
Attached hereto is a report of actual expenses balanced against reimbursement
by voucher which has been submitted by request by Mr. Stephen S. Kaler for
the month of October 1948. A4r. Kaler does considerable auto travel in an area
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 47
where hotel and meal prices are lower than those areas covered by Mr. Jenkins'
report. Although he has submitted no copies of bills for this period, he does
have them in his personal file if it is necessary for you to have them. We hope
this information will be of assistance, particularly in reference to mileage allow-
ance on the use of privately owned automobile.
Credit: $76.50.
Hotel rooms:
4 nights at $3.50--------------------------------------------- $14.00
3 nights at $4------------------------------------------------ 12.00
1 night at $3--------------------- ---------------------- 3.00
2 nights at $5__________________________ 10.00
39.00
Meals :
- _ _ _ - _ 9.00
10 breakfasts, 90 cents average --------------------------------
- -------------------------
14 lunches, $1.25 average-------------------------------------- 21.50
12 dinners, $2 average----------------------------------------- 24.00
Tips, 10 percent------------- -------- ----------------------- 5.45
59. 95
Total --------------------------------------------------- 98. 95
Received--------------------------------------------------------- 76.50
Loss------------------------------ ----------------------- 22.45
Ten nights on road, $22.45 loss; loss per night, $2.24.
Mileage
Credit: 1,934 miles at 5 cents, $96.70.
Gas, 116 gallons, at 28/2 cents (average 17 miles per gallon) ------------ $33. 06
Oil, 5 quarts at 40 cents--------------------------------------------- 2.00
Lubrication, once in 2,000 miles --_.-_________________________--- 1.00
Insurance per month---------------------------------------------- 10.00
Garage rent while traveling, 10 night at $1---------------------------- 10.00
Depreciation, monthly based on difference between value of old car and
cost of new car last November-_ ------------------------------------ 33.00
Repair,tires,etc ------------------------------------------------- 20.00
Total ------------------------------------------------------ 109.06
Received--------------------------------------------------------- 96.70
Loss------------ ------------ 12.36
-----------------------------
Loss each mile traveled, 1.5 cents.
To: Miss Jay.
From: Helen B. Sater, Women's Bureau.
Subject: Per diem.
I am glad you have given me an opportunity to register my feeling that the
subsistence allowance for travel of $6 per day is far from adequate to meet even
the minimum needs. The situation as far as I am concerned is so serious as to
make me wonder whether I can possibly afford to stay as continuously in the field
as my position requires.
The shortage of hotel accommodations makes the situation more acute. It is
practically impossible to obtain a room at a minimum rate on short notice. I
frequently cannot be sure of exact dates of arrival very far in advance and when
I do make reservation in advance I have many times had the experience of engag-
ing a minimum-priced room to find upon arrival that the reservation has been
made for more expensive accommodations. I believe that blocks of rooms are
held by big business concerns and the lower-priced rooms are held for men who
may be more frequent visitors.
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48 SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES
Seldom have I been able to get a room for less than $5 a day and I have many
times paid $5.50, $6 and on a few occasions it has been necessary to pay $7 a day.
This leaves very little for three meals, tips, etc., that must be paid out of per diem.
In Danville, Va., where one might expect to get cheaper accommodations, my
room was $4.50, and in Abingdon, Va., a town of 4,000 or 5,000 inhabitants, the
rate was $4. So that, you see, even in the smaller, less sophiseicated places, the
rate is high.
In November, I visited Cleveland and was compelled to move from the Cleve-
land Hotel (because of an incoming convention) where I was paying $5 and the
only room I could secure was at the Wade-Park Hotel at a higher rate. I knew
somewhat in advance that I was going on to Chicago. I telephoned three hotels in
Chicago, from Cleveland, at my own expense, and was not able to find a room.
Only after getting assistance from a Chicago-based person was I able to get in at
the fifteenth hotel contacted. Representatives from the frozen-food industry and
the shoe industry were having conventions there. The convention business fre-
quently complicates the situation.
The nature of my work often makes it necessary to ask people to meet me at
their convenience which is so often at lunch or dinner time in with case I feel an
obligation to have them as my guests. Of course, there is no provision for this
kind of entertaining and per diem does not meet the situation.
To: Ada E. Fust, administrative assistant. DECEMBER 7, 1948.
From: John J. Babe, assistant solicitor.
Subject: Per diem allowances versus active expenses.
The following is a generalized view of my last three trips, and affords data on the
inadequacy of the current per diem allowances.
The first of these three trips was to Birmingham in September 1948. I remained
there for approximately 2 days. My hotel cost me $5 per day, which left me $1
to defray the cost of three meals per day, including tips, as well as necessary tips
to bellboys upon arrival and departure. On an average my meals cost me $3.50
per day. Thus, on this trip a minimum of $2.50 per day came out of my own
pocket over and above per diem allowance.
The econd trip was to Cleveland where I also stayed approximately 2 days.
I paid $5.50 for my hotel room which I shared with another employee of the
Department. This was the last available room. My meals again averaged
$3.50 per day, and again the trip cost me about $2.50 per day out of my own
pocket.
The third trip I just completed last week to New York City. I stayed approxi-
mately a day and one-half. My hotel cost me $5.50 plus 28 cents New York
City tax, or a total of $5.'18. This left me 22 cents to defray the cost of meals,
tips, etc. My meals averaged approximately $3.25 out of my own pocket to
defray the cost of this travel.
I have made several trips during the past 2 years to New York, Atlanta, Bir-
miugharn, Dallas, Kansas City, and Chicago, and in each and every one of these
trips my actual expenses exceeded by no less than $2.50 per day the per diem
allowance. This is a conservative estimate. I also attach herewith statements
from James Miller, supervising attorney, and John Mealy, assistant supervising
attorney, with respect to the inadequacy of per diem allowance disclosed by their
stated travel.
To: Edward F. Gallagher.
From: E. K. Jenkins (r. e. 1.).
Subject: Justification of expenses.
In answer to your telephone conversation we have the following report to make.
We hope this information is of value and assistance to you. An accurate account
of our expenses was kept over a period of 8 months, recording even the smallest
amount; the finding was approximately a loss of $3 a day while in travel status
over the period. however, for an actual sample month we are sending the figures
for August 1948, with the hotel statements to substantiate the figures. Although
the hotel rates are in the $5 range, these are considered the "minimum rate"
which is always requested when making reservations.
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SUBSISTENCE EXPENSES AND M[LEAGE ALLOWANCES 49
Aug. 2:
Aug. 16:
Taxi--------------------
$0.65
Taxi--------------------
$0.65
Tip----------------------
.10
Room-------------------
3. 65
Aug. 3:
Tips--------------------
.40
Taxi and tip-------------
Room-------------------
. 75
5.00
Aug. 17:
Meals___________________
4.35
Meals-------------------
3.85
Taxi--------------------
.75
Tips----.----------------
.50
Tips.-------------------
.60
Aug. 4:
Taxies------------------
1.00
Aug. 1.8:
Taxies------------------
1. 25
Meals-------------------
4. 05
Bus fares----------------
1.20
Room-------------------
5.50
Room-------------------
45.00
Tips--------------------
.55
Meals___________________
26. 75
Aug. 5:
Tips--------------------
3.00
Taxi--------------------
Meals-------------------
.35
4. 20
Aug. 30:
Taxies------------------
1.65
Tips--------------------
.70
Meals -------------------
3.00
Aug. 6:
Room------.-------._-._---
3.85
Taxi and tips------------
. 75
Tips--------------------
.50
Aug. 10:
Taxi and tips------------
.75
Aug. 31:
Room-------------------
3.25
Aug. 11:
Meals-------------------
3.50
Taxi--------------------
.35
Tips..-------------------
.50
Room-------------------
4.45
Meals --------------------
Tips--------------------
Aug. 12:
4. 75
.60
Total expenses during
the month while in
travel status ---------
148.90
Taxi and tip-------------
Meals-------------------
. 45
4.50
Reimbursed by Government;
total of expense voucher-----
134. 40
Tips--------------------
.50
Aug. 13:
Taxi and tip--------------
. 75
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MINORITY REPORT
Ever since 1932, when Presidential candidate Franklin Delano
Roosevelt included in his campaign promises one which definitely
promised a 25-percent .reduction in Federal expenditures, both Demo-
crat and Republican ]"arty platforms and the candidates of both
parties have repeatedly promised the taxpayers of this Nation a
reduction in Federal expenditures.
The failure of our national policy makers to keep us out of a war-
a war which gave us a Stalin and a communistic Russia, in lieu of a
Hitler and a Nazi Germany, as Public Enemy No. 1, is a partial excuse
for the stupendous increase in our national debt and the confiscatory
taxes with which our people are, and the future generations will be,
burdened. It is an excuse for, but not an answer to, our failure to
economize.
Two wars- the first fought to end all wars-the seco rid to carry the
"four freedoms" throughout the world, have left the world with active
fightingy on. four fronts, millions of slave laborers, and millions of people
under the domination of Communist leader, Joe Stalin. While we
ourselves are not in a shooting war, we are in a "cold war," an eco-
nomic war. We are at the moment signing up allies to form a coalition
of nations which we hope will win the next world war. We are back
to the Old World balance of power theory.
If the refusal of Congress to bring about some economy, greater
efficiency in our executive departments, our repeated gifts of billions
of dollars to other nations and peoples continue, it is evident that we
will ultimately come to the end of our resources. It is equally ap-
parent that, having reached that point, we will not only be unable to _Aft
help others, but to adequately defend ourselves.
Notwithstanding these two wars, the nations of the world are not
at peace. We are about to enter into an Atlantic Pact which, what
ever may be its legalistic wording and interpretation, commits us to
be a participant in any war which may come to any one of the nations
signing that pact. We on one side, Russia on the other, are striving
to reestablish the old balance-of-power arrangement. But in this case
we do not reserve to ourselves the right to go in, or stay out of, a war-
no matter by whom, or for what cause -started.
We are now committed to an additional Marshall plan of some
$5,550,000,000. Our national defense program, if you wish to call it
that, calls for an expenditure of something like $15,000,000,000. Aid
to veterans will require around $6,000,000,000. The interest charge
on the national debt will cost something like $6,000,000,000 per annum.
Other programs require other billions.
From the foregoing, which is brief and incomplete, and from the
facts known to every member of the committee, it is perfectly clear,
and I doubt if anyone will every deny, that, unless we economize on
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some front, we will go the way of all nations which have consistently
and persistently in their expenditures exceeded their incomes.
We promise our constituents that we will cut down Federal expendi-
tures but, due to the pressure of first one group, then another, we do
not keep faith with our people.
In the current Congressional Record of February 7, 1949, page
A-619 and subsequent pages, there is a statement by the chancellor
of the University of Kansas, entitled " America the Profligate" from
which I quote this paragraph:
In 1933, our national debt was $22,000,000,000; in 1948, it has swollen to
$252,000,000,000; 11 times as great.
In 1933 there were 572,000 Federal civilian employees; in 1948 there were
2,200,000--or four times as many. In 1933, also, these Federal civilian employees
were paid $972,000,000; in 1948, they were paid $6,000,000,000, or over six times
as much. And in 1948, the Federal Government added an additional civilian
employee every 3 minutes-or 513 per working day, or 150,000 for the year.
44111W In 1915, there were 158 Federal bureaus and divisions; in 1932, there were 529;
in 1944, 1,141; in 1948, 2,700. Our very laws foster the growth of bureaucracy,
because our civil-service law bases the pay of Federal employees on the number
of underlings.
We have taken onto the Federal pay roll 24,288 personnel specialists; there are
twenty-odd lending agencies, there are 45 agencies concerned with housing. For
some strange reason, there are 400 people in the Legal Division of the Depart-
ment. of Agriculture. There is one employee in the Bureau of Indian Aff airs for
every six Indian families in America. Chicago alone has 530 Federal offices.
In a recent year, the Federal Government gave hand-outs to individuals and
grants-in-aid to local and State governments totaling $5,500,000,000. One
Federal agency spent $100,000,000 to keep prices down; another spent $80,000,000
trying to keep prices up.
And in all this welter of bureaucratic confusion there is no complete accounting
system and no complete set of books.
On page 2093 of the Congressional Record of March 9, there is a
statement by Senator Byrd which shows that in 1948 the executive
department added to its pay roll more than 101,000 additional em-
ployees. The table on the following page shows that, in December of
1948, the pay of the civilian employees in the executive branch of the
Government was $64,000,000 more than it was in the preceding month.
The present bill increases the travel allowance of civilian Federal
employees who are required to leave their "post of duty" on Govern-
merit business, from 5 to 7 cents per mile when using their own auto-
mobiles.
The bill proposes to increase the subsistence allowance from a maxi-
rnum of $6 per day to a maximum of $9 per day (original figure was
$10).
It is assumed that the cost of travel and the cost of sustenance has
over the years increased. No doubt that is true, but whether those
costs will go up or down during the next few years is wholly proble-
rnatica.l.
The most recent report of the Bureau of Labor Statistics shows that
we have had a 5-month consecutive decrease in the national oaer-all
retail prices and this decline is the longest consecutive one in 10 years.
The sane report shows that food prices have continued to decrease for
seven consecutive months.
From statements on record, there is proof that both President
Hoover and President Roosevelt were utterly mistaken in their predic-
tions on the question of future employment and cost of living-the
first predicted that prosperity was just around the corner-the second
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predicted unemployment, the necessity for creating some 8,000,000
Federal jobs. Each was completely mistaken, though each had the
advice of a staff of so-called experts.
One thing experience has demonstrated and that is that seldom,
if ever, when a job in the executive department has been created or a
rate of pay established, is the job either abolished or the rate of pay
lessened.
The argument in support of this bill is that no Federal employee
should be required to spend his own money while engaged in Govern-
ment business away from his assigned place of duty. That argument
would be sound if the Federal employee did not know his rate of and
total pay and his duty when he applied for the job.
The answer to the argument is that, on the whole, except for top
positions, there are many applicants for every Federal job--and from
qualified applicants who know the rate of compensation and the task
for which they apply. To those of us who believe in the law of supply
and demand, that situation is proof positive that Federal employees
are not underpaid; that they receive ample compensations for the work
they perform. Men do not usually apply for underpaid jobs.
It is true in some instances that the monetary rewards for services
rendered in some of the professions, in some businesses, and in some
industries, are greater than for a comparable service rendered in the
executive departments of State or Federal Governments. But the
direct financial compensation of the civilian employee in the executive
branch of the Federal Government is but a part of the story.
The Federal employee with one exception has sick leave of 15 days
and a vacation allowance of 26 working days each year. In the one
exception, the postal employees, the sick leave allowance is 10 days
and the vacation leave is 15 days.
The Federal employee has a 5-day week. If a holiday falls on a
Thursday, he will sometimes get Friday, as well as Saturday, off.
Sometimes, if there is some celebration in which the administration is
interest ed, as recedtly when President Truman-elect returned to Wash-
ington, there is an additional day or two of vacation.
In short, the Federal employee's work year calls for about 220 days
of employment; his compensation is on a yearly basis.. (Days in a
year number 365. Subtract 26 days of vacation.; 15 days for sick
leave; 52 Sundays; 52 Saturdays and certain other holidays-leaves
less than 220 8-hour workdays).
The Federal employee has retirement pay, for which he, of course,
pays a part.
The Federal employee never misses a pay check, no matter how
much his employer--the Government-may lose during,, a year. No
matter how great the Federal deficit, the Federal employee gets his
check on the appointed day.
The Federal employee, all things considered, has one of the best
jobs available in the. United States of America. He takes that job
with his eyes open, knowing his rate of compensation, the task con-
fronting him, and the approximate effort required to efficiently perform
that task.
There is no more reason for paying the cost of his food and lodging
while absent from his post of duty on the regular work pertaining to
his job, than there is for paying every man who works at a job for the
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SUBSISTENCE EXPENSES AND MILEAGE ALLOWANCES 53
time and expense of traveling to and from that job or while away
from home.
Mr. James Doran, Chief Post Office Inspector, testified that, with
few exceptions, the employees of his Department would be fully
compensated if they received $8 per day for subsistence.
It would seem that a per diem increase from $6 to $9-a net increase
of $3 per day, is an invitation to travel, unfair to the average taxpayer
and grossly excessive when compared with $50 or less per month paid
to millions of our needy citizens.
True, the cases are not comparable, but the wide spread between
$9 per day paid the Federal employee and the $1.70 per day paid the
needy, aged, and unfortunate citizens, should give us pause.
All admit the necessity for it reduction in Federal expenditures-
very few will, when the occasion arises, meet the issue, vote to reduce
expenditures. Very few will refuse to yield to the demand of the
bureaus and the Federal employees for an increase in Federal expendi-
tures.
While the $9 per day is the maximum, not the minimum, experience
and the record show that every dollar appropriated to the various
departments for these particular items is expended.
If in one bureau of a department there is a reduction of employees,
an increase in the rate or the number of employees in other bureaus
invariably absorb the whole appropriation and sometimes calls for a
deficiency bill.
If the promises of candidates for office that Federal expenditures
would be reduced, if they were elected, are ever to be kept, even the
most simple-minded will recognize the fact that some time we must
make a beginning. Why not here? Cannot we at least hold the line?
Respectfully submitted.
CLARE E. HOFFMAN.
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