[1973 Annual Report of the Attorney General of the United States] [From the U.S. Government Publishing Office, www.gpo.gov] Annual Report of the Attorney General of the United State: 1973 Office of the Attorney General Washington,B. (C. 20530 To the Senate and of America in Congress House of Representatives of the United States assembled: It is an honor to report on the business of the Department of Justice for the Fiscal Year 1973. Following this letter is a brief summary of the highlights and major accomplishments of the Department of Justice. The summary sets forth in general terms important matters affecting our system of justice and underscores basic efforts in the areas indicated. Following the summary are reports covering the activities of the various offices, divisions and bureaus of the Department. The Department continues to give increasing attention to assisting local law enforcement personnel in the accomplishment of their missions. Today, approximately 50 percent of the Department’s budget is allocated for local assistance, either in dollars or technical manpower support. The many accomplishments described in this report demonstrate that the initiatives of the last several years are serving to stimulate improvement in the Nation's system of justice. William B. Saxbe Attorney General HOUSTON PUBLIC LIBRARY | OCT 18 1975 i U.S. GOVERNMENT J DEPOSITORY COLLECTION iii Contents Page Summary Letter of Attorney General............................. 1 Office of Deputy Attorney General.............................. 4 Executive Office for U.S. Attorneys....................... 5 U.S. Marshals Service.................................... 17 Office of Criminal Justice............................... 22 Office of Solicitor General................................... 24 Office of Legal Counsel.................................... 31 Office of Legislative Affairs................................. 33 Administrative Division...................................... 35 Community Relations Service................................... 43 Civil Division................................................ 50 Civil Rights Division......................................... 65 Criminal Division............................................. 77 Antitrust Division............................................ 98 Land and Natural Resources Division.......................... Ill Tax Division................................................. 126 Bureau of Narcotics and Dangerous Drugs...................... 141 Immigration and Naturalization Service....................... 150 Board of Immigration Appeals................................. 158 Federal Bureau of Investigation.............................. 163 Law Enforcement Assistance Administration.................... 179 Bureau of Prisons-Federal Prison Industries, Inc............. 192 U.S. Board of Parole........................................ 204 Pardon Attorney.............................................. 207 ADDENDUM Numerous organizational and personnel changes have taken place within the Department of Justice since the close of the 1973 fiscal year. Since the Attorney General’s Annual Report must reflect the structure and activities on June 30, 1973, organizational charts and agency titles reflect the Department’s structure as of that date. The organization chart for the Department of Justice has undergone numerous changes. An updated chart has been included at the end of the Report which reflects the present structure. The names of heads of organizations are also listed on the chart. v G) BUREAU OF NARCOTICS AND DANGEROUS DRUGS* w Enforcement and th SOLICITOR GENERAL OFFICE OF LEGAL COUNSEL OFFICE OF LEGISLATIVE AFFAIRS OFFICE OF CRIMINAL JUSTICE -J CIVIL RIGHTS DIVISION UNITED STATES MARSHALS Office of Drug Abuse L_ 1 o £ 4-» CRIMINAL DIVISION UNITED STATES ATTORNEYS Iministration and Includes Ul Q cn □ COMMUNITY RELATIONS SERVICE D STATES DEPARTMENT OF J June 30, 1973 ATTORNEY GENERAL DEPUTY ATTORNEY GENERAL ANTITRUST DIVISION LAW ENFORCEMENT ASSISTANCE ADMINISTRATION Drug Enforcement Ad ADMINISTRATIVE DIVISION 0) £ o UNITE LAND AND NATURAL RESOURCES DIVISION IMMIGRATION AND NATURALIZATION SERVICE is been reorganized in -c PARDON ATTORNEY BOARD OF PAROLE BOARD OF IMMIGRATION APPEALS CIVIL DIVISION BUREAU OF PRISONS FEDERAL PRISON INDUSTRIES, INC. cs and Dangerous Dru ntelligence. 8 8 5 4-» ■Mi TAX DIVISION FEDERAL BUREAU OF INVESTIGATION •The Bureau of Ne Office of National Narco Summary of Activities and Accomplishments—Fiscal Year 1973 Litigation The United States Attorneys, who handle most of the cases on behalf of the United States in the Federal district and appellate courts, completed more than three times as many criminal cases in 1973 as in 1972. In addition, United States Attorneys brought 30,235 criminal proceedings before Federal grand juries and spent approximately five percent more time before grand juries in 1973 than in 1972. Despite this increase in workload, United States Attorneys continued to reduce case backlog by terminating 47,853 criminal cases and almost five percent more civil cases in 1973 than in 1972. Criminal and civil appeal termination rose by 17 percent. Remarkable advances were made in the area of collecting criminal fines and civil judgments owed to the Government. There was a 94 percent increase in the number of collection suits and a 36 percent increase in the amount of money collected. A total of $136 million was recovered for the Government as a result. The Office of Solicitor General handled 2,133 cases before the Supreme Court, an increase of 16 percent over last term. The Tax Division obtained $74 million in judgments against delinquent taxpayers, the second highest amount recorded in Division history. Savings in refund suits were $111 million while taxpayers recovered $22 million. Decisions of the Tax Court involving assessed deficiencies of over $4 million were upheld in the courts of appeal. The Tax Division also prepared more trial and appellate briefs and tried and argued more cases than in 1972. The Division obtained the convictions of 944 persons for tax offenses, bringing to 13,448 the number found guilty in the past seventeen years. The Criminal Division continued to increase the number of convictions of high-echelon organized crime syndicate members in 1973, doubling the number of 1972. The Division set new records in the areas of filing and terminating narcotic and dangerous drug cases in United States District and Appellate courts. The Criminal Division was also instrumental in dealing with the grave problem of aircraft hijacking. The Division worked with the Department of Transportation, the FBI, U.S. Marshals Service and private industry to develop a security system, and assisted in promoting treaties to reduce hijacking incentives. The longest period free from aircraft hijacking in the United States since the rash of hijackings began in late 1967 occurred in 1973. From mid-November 1972 to the end of the fiscal year, no American commercial aircraft were hijacked. The Antitrust Division filed fewer cases in the Federal district courts in 1973 than in 1972 because of a record number of suits filed the previous year. Consequently, its efforts were directed to reducing the near-record number of cases pending at the end of fiscal year 1972. During 1973, 71 antitrust suits were terminated, the largest number since 1968. Of the 50 civil cases closed, the Government won 44, lost five and dismissed one. Five antitrust cases were appealed to the Supreme Court with the Government winning four. The Division initiated 455 new investigations compared with 437 during the previous year, and began 34 grand jury investigations. The Civil Division worked on a total of 42,397 cases during the year. This workload was comprised of 25,725 cases which were still in various stages of litigation at the close of the fiscal year 1972 plus 16,672 new cases which developed during the year. The Division terminated 16,093 cases in 1973, leaving 26,304 cases pending. Plaintiffs sought a total of $853.4 million in claims against the Government, however, recoveries were held to $40.7 million or 4.7 percent 1 of the aggregate claims. The Government was plaintiff in cases claiming a total of $236.3 million. Judgments and settlements in these cases amount to $172.4 million or a Government recovery rate of 72.9 percent. The Civil Rights Division, created in 1957, continued its emphasis on enforcing the Civil Rights Acts of 1957, 1960, 1964, and 1968 and the Voting Rights Act of 1965, as amended in 1970. In 1973 increased attention was given to the problem of sex discrimination with particular emphasis on employment rights. The Land and Natural Resources Division filed only 36 civil actions and 106 criminal actions during 1973. This reduction in the number of actions filed was a consequence of enactment of the Federal Water Pollution Control Act Amendments of 1972. Section 402 (k) of the Act provides that any discharge which is the subject of an application filed either under the old Refuse Act Permit Program or the new statute shall not be deemed to be in violation of the Refuse Act until December 31, 1974. The effect of Section 402 (k) was to prevent the filing of additional civil actions under the Refuse Act to enjoin any continuing industrial discharge into the navigable waters of the United States. Investigation Investigations by the FBI led to a record number of convictions, 14,465, the highest in history. Ninety-six percent of the persons brought to trial were adjudged guilty. Fines, savings, and recoveries in FBI cases amounted to $474,542,568, an average of $1.32 for every dollar appropriated for operations. Two other records were topped by the FBI: 15,631 fugitive felons were located including fugitives sought for Federal violations as well as those located for state agencies under the Fugitive Felon Act and the FBI laboratory in Washington, D.C. conducted 531,471 examinations of evidence, a 7.4 percent increase over the previous year. During the year, the Bureau of Narcotics and Dangerous Drugs recovered more than 9,625 pounds of heroin from the worldwide illicit market. Bureau agents arrested or assisted state and foreign police in investigations leading to the arrest of nearly 8,300 narcotic violators. Furthermore, in pursuit of its responsibility to prevent legally manufactured drugs from reaching the illicit market, the Bureau initiated more than 1,400 investigations of persons and firms that handle these drugs. Community Relations Service The Community Relations Service received 589 crisis alerts and responded to 284. Crisis prevention accounted for 83 percent of the Service’s workload, the balance being devoted to crisis resolution. The Service was instrumental in bringing the dissident parties together at Wounded Knee in an effort to resolve that conflict. Immigration and Naturalization A record quarter of a billion persons were inspected at United States ports-of-entry during the year, almost one-and-a-half times the admissions ten years ago. During the year, 400,063 immigrants were admitted to the United States. Six countries accounted for 47 percent of the total immigration. A total of 379,604 aliens were denied admission upon their arrival at United States ports-of-entry. The Immigration and Naturalization Service located 655,968 deportable aliens, an increase of 150,019 or 30 percent over 1972. Eighty-eight percent of the deportable aliens located were Mexican nationals. Border Patrol agents apprehended 41,589 aliens who had been induced or assisted to enter illegally or who had been transported unlawfully after entry, an increase of 67 percent over the previous year. United States citizenship was granted to 120,740 persons. Over 56 percent of the new citizens were former nationals of Cuba, China, Italy, the Philippines, the United Kingdom, Germany, Mexico and Greece. Marshals Service United States Marshals, with assistance from the FBI, maintained a round-the-clock vigil and perimeter defense, including manning of roadblocks, in an effort to prevent bloodshed during the 71-day armed confrontation at Wounded Knee, South Dakota. Order was restored to the Pine Ridge Indian Reservation only after 287 arrests were made by federal law enforcement authorities. Financial Assistance The Law Enforcement Assistance Administration continued to assist local law enforcement agencies in reducing crime rates. By the end of fiscal year 1973, LEAA’s aid to the States and localities totaled $2.5 billion. While no single factor is responsible for the recent reduction in the level of crime throughout the nation, the massive financial aid and technical assistance provided by LEAA undoubtedly helped state and local governments fashion a more effective response to crime. During the past year, encouraging signs of progress appeared. The national crime rate dropped by two percent in 1972, according to the FBI’s Uniform Grime Reports, the first such decrease in 17 years. Furthermore, in urban areas where crime is most prevalent, inroads against lawlessness also were evi 2 dent. In the first three months of 1973 alone, 100 major cities reported crime decreases, compared to 88 cities showing decreases during the same period in 1972. Corrections The Bureau of Prisons continued to modernize its operations. Operating 44 correctional institutions, ranging from penitentiaries to community treatment centers, the Bureau provided inmates with extensive educational and vocational opportunities in an effort to assist them in returning to society. The Federal prison population, representing approximately one-ninth of the nation’s confined offenders, was 23,336 at the close of the fiscal year, a 5.6 percent increase over 1972. A continuing upward trend in current commitments and sentence lengths accounts for most of the increase in population. There were 3,873 more admissions to Federal institutions than discharges during the year. The average sentence length of the confined population has continued to rise steadily, from 74.0 months in 1967 to 88.1 months in 1973. The Bureau is presently embarked on a -rogram to decentralize operations and give more management responsibility to the field. Federal-State Cooperation Direct assistance to local law enforcement agencies continued to increase. In addition to financial support provided local law enforcement agencies by LEAA, the FBI, Immigration and Naturalization Service, Community Relations Service, Bureau of Narcotics and Dangerous Drugs and the Bureau of Prisons offered technical service to state and local agencies. These services included laboratory analysis, training and other forms of assistance to supplement the work of local law enforcement agencies. 3 Office of the Deputy Attorney General The Deputy Attorney General assists the Attorney General in overall supervision and management of the Department and in formulation and implementation of major departmental policies and programs. In addition, the Deputy Attorney General’s office coordinates the activities of the several departmental divisions and supervises the work of the U.S. Attorneys’ and Marshals’ offices located in each of the 94 judicial districts as well as other departmental offices located in the field. In addition to his general duties, the Deputy Attorney General represents the Department of Justice in many other areas. He heads the American delegation to meetings of Operation Cooperation, a joint agreement between the United States and Mexican governments to increase enforcement against illegal drug traffic between the two countries. He participates in the Under-Secretaries Group of the Council for Urban Affairs and working groups of the Undersecretaries Committee of the National Security Council. He serves on the Interagency Classification Review Committee. He has been designated by the Attorney General as his chief of staff to coordinate all Federal activities during protest demonstrations. Under the Constitution, the President appoints Fed eral judges, U.S. attorneys and U.S. marshals, subject to confirmation by the Senate. The Office of the Deputy Attorney General is responsible for investigating and processing prospective candidates for Presidential appointments to these positions. During 1973, 28 persons were appointed to the Federal judiciary, including nine appointments to the Superior Court of the District of Columbia and one appointment to the District of Columbia Court of Appeals. In addition, 11 U.S. attorneys and four U.S. marshals were appointed during 1973. All appointments, promotions, and separations of Department attorneys are handled by the Deputy Attorney General’s staff. His staff supervises the appointment of law students for the Attorney General’s employment program for honor law graduates and the summer law intern program. Over 2,095 third-year law students made application for the 1973 Attorney Genjeral’s employment program for honor law graduates. This year’s class of 108 attorneys was selected from 68 law schools. The appointees represented 27 States and the District of Columbia; eight appointees ranked from one to five in their law school class and 49 served on the board of editors of their law reviews. 4 Executive Office for U.S. Attorneys As an arm of the Deputy Attorney General, the Executive Office for U.S. Attorneys provides general executive assistance to, and supervision of, the offices of the 94 U.S. attorneys. The Executive Office also maintains liaison between the U.S. attorneys and the divisions, bureaus and offices of the Department as well as other Federal agencies. Within their respective judicial districts, the U.S. attorneys are the chief law enforcement representatives of the Attorney General. They enforce Federal criminal laws and handle most of the civil litigation in which the United States is involved. The authorized staff level of the U.S. attorneys’ offices for 1973 was 2,906. This included 1,403 attorneys and 1,503 supporting personnel, representing a staffing increase of 258 positions over the previous year. The year 1973 again witnessed a large volume of criminal and civil litigation for U.S. attorneys. Criminal cases filed totaled 46,663 cases, with civil filings showing an increase of 3.45 percent to 34,566. Criminal appeal filings in which U.S. attorneys were involved rose by more than ten percent. U.S. attorneys brought 30,235 criminal proceedings before Federal grand juries and spent approximately five percent more time before grand juries in 1973 than in 1972. Despite this increase in workload, U.S. attorneys continued to reduce case backlog, terminating 47,853 criminal cases and almost five percent more civil cases in 1973 than in 1972. Approximately two percent more civil and criminal cases, or a total of 171 more cases were tried in 1973 than in 1972. Criminal and civil appeal terminations rose by 17 percent. Manhours in court increased by 16 percent—due largely to the increasing difficulty of the cases being handled. The number of prosecutions declined was reduced by 2 percent as U.S. attorneys successfully worked to process the increasing numbers of investigative agents and the cases they discovered. Most remarkable advances were in the area of collecting criminal fines and civil judgments owed the U.S. Government. There was a 94 percent increase in the number of collection suits and a 53 percent increase in the amount of money collected. The total collection of almost $136 million was a welcome addition to the Treasury and a source of pride to the U.S. attorneys who had predicted in last year’s annual report that a marked improvement was expected during the next several years. The activities of the offices of the U.S. attorneys expanded dramatically in scope. These offices experienced rapidly increasing workloads due to the great number of narcotics cases referred to them by the Bureau of Narcotics and Dangerous Drugs and continued to exercise major responsibility for enforcement of the President’s economic stabilization program. Substantial manpower and effort were devoted to the prosecution of crimes involving official corruption on the Federal, state, and local levels. A Federal circuit court judge was convicted of serious criminal charges. In California, a sergeant-major of the U.S. Army was convicted of charges that grew out of a hearing before the U.S. Senate. Widespread fraud and corruption in the management of military club systems was uncovered and many oo-defendants were also prosecuted. In New Mexico and other states, investigations of bribery and corruption of Small Business Administration officials resulted in charges and convictions. Similar investigations led to the conviction of officials in the Federal Housing Administration as well as Housing and Urban Development. In Detroit alone, 87 persons were indicted for fraud and bribery involving FHA and HUD officials and various contractors. The pattern was the same in many other cities. A former U.S. Senator and a Capitol Hill lobbyist were convicted of bribery in trying to influence legislation affecting mail order business. 5 Many prosecutions of state and local officials also were undertaken. In Maryland, two state senators were indicted: one for failure to file Federal tax returns, the other for conspiracy to distribute heroin. Prosecutions of over 50 corrupt public officials occurred in Maryland, Washington, D.C., and Chicago. Other similar cases were made across the country. In Little Rock, Ark., two state senators, two members of the state land commissioner’s office as well as six lawyers and a CPA were convicted on tax charges. In Jackson, Miss., two county supervisors and a county attorney were convicted on tax matters; in Denver, Colo., a state senator was convicted on five counts of tax evasion. In New Jersey alone, the U.S. attorney’s office convicted the former state treasurer, the former executive director of the state highway authority, the former president of the City Council of Newark, the Atlantic County engineer, the former mayor of Atlantic City, the supervisor of airports, parks, and recreation areas, the former purchasing agent for Atlantic City, the director of public welfare and many of their employees. The scale of bribery, extortion, kickbacks, and conspiracy was massive. A number of important murder cases were handled by U.S. attorneys’ offices, including the conviction of four defendants in Sioux City, Iowa, for the murder of a deputy U.S. marshal. Another U.S. marshal was murdered in the District of Columbia and his assailant convicted as well. U.S. attorneys were also successful in two mass murder cases, one in St. Croix, Virgin Islands, where the Fountain Valley case was won in the midst of continuing murders and grave danger to the Government prosecutors. In the District of Columbia, indictments were obtained in the Hanofi Muslim murder case which involved the killing of seven persons, four of them children. Several outstanding attempted murder cases involving assaults on Federal agents occurred in Houston, Pittsburgh, and other cities, including an assault on Senator John Stennis of Mississippi. A conviction was obtained in one threat-to-kill case on the basis of voice print identification. Numerous top echelon narcotic traffickers were prosecuted as the U.S. attorneys continued to play an active role, not only in aiding the Bureau of Narcotics and Dangerous Drugs, but by becoming much more active in casemaking activities related to drugs. The size of drug seizures became so large that “records” rarely lasted 30 days. In San Diego, a one-year total of 135,000 pounds of marihuana, 14 million pills, 70 pounds of heroin, and 46 pounds of cocaine were seized. Many of these totals are nearly double the previous year’s total. Individual seizures in other districts occurred in startling amounts with convictions and long sentences 6 following close behind. In Seattle, M. S. Rifai, 12 pounds of heroin—ten years; Busby and Lanze, 17 pounds of heroin—15 years. In Detroit, Collier, eight kilograms of cocaine—30 years; in Baltimore, 30 kilograms of cocaine (approximately 66 pounds)—awaiting sentence; Sehier, 36,000 LSD tablets—awaiting sentence; Southerland, who was apparently part of a smuggling ring that employed the caskets of deceased Vietnam veterans to transport drugs—20 years. Not only did the amount of drugs increase but so did the number of defendants. A 38-percent increase in the number of narcotics charges filed helped keep the U.S. attorneys in court for a record number of hours. Typical of these large numbers were the cases in Mobile, Ala., involving 24 indictments and 30 defendants; Spokane, Wash., 20 defendants and 19 convictions and in Laredo, Tex., of 813 defendants who pled guilty or stood trial, only four were found not guilty. The impact of all this activity on the illegal drug world has had a major impact. Narcotic purity went down and prices went up as the U.S. attorneys sent a record number of distributors to jail. U.S. attorneys investigated and prosecuted a wide variety of white-collar crimes, including stock manipulations, margin violations, advertising frauds, embezzlements, obstruction of justice suits, and other business-related frauds. One of the most significant prosecutions initiated this year involved a multimillion-dollar fraud in the sale of a glamour stock of the American Stock Exchange which crashed into bankruptcy, causing losses of hundreds of millions of dollars to the investing public. Eight defendants were indicted for participating in this fraud, including two high level executives of a prominent brokerage and investment banking firm, two partners in a national accounting firm and the president and other officers of a nursing home. This was the first criminal fraud charge ever filed against high officers of a major Wall Street investment banking firm and the second such indictment ever filed against partners of a national accounting firm. Another equally extensive investigation in New York resulted in an indictment charging two corporate executives, five stock brokers, and an attorney with manipulating the price of two stocks on the over-the-counter market. In Cleveland, Ohio, the officers of three national firms were convicted of defrauding their clients in advance lending fee rackets. In one case ten businessmen were convicted on a 60-count indictment charging various acts of banking violations. Their 31-day trial with over 60 witnesses and thousands of documents was a huge task which has significantly deterred further attempts to purchase and illegally drain the assets from smalltown banks. In a prosecution against the former president of the world’s largest commodity option dealer, the Federal grand jury in Los Angeles returned a 16-count indictment. Additionally, extensive trafficking in stolen securities has been a serious national problem with convictions in Pittsburgh for over $300,000 of stolen stocks and in Los Angeles of $800 million. Fraud on the Federal medicare program resulted in numerous prosecutions across the country. In Arkansas, in the first case of its kind, the president of a bank and a prominent attorney were indicted with the intent to defraud the United States in the field of Federal revenue-sharing funds. The past year was marked by significant litigation in the field of environmental protection, resulting from investigations initiated by U.S. attorneys in conjunction with the Corps of Engineers, the Environmental Protection Agency, and special pollution grand juries. Efforts by citizen groups contributed greatly to convictions in many instances. An exemplary environmental protection program in cooperation with Seton Hall School of Law put selected law students into a clinical program where they assisted the U.S. attorney in the preparation and prosecution of environmental matters for academic credit in lieu of financial compensation. In New Jersey, Delaware, North Carolina, and other Atlantic Coast States, scores of cases were filed concerning environment protection of marshlands. In Delaware, 11 major cases were won by the Government, setting a new benchmark in the law affecting coastal development. In U.S. v. Stocco Homes, Inc. the Government obtained a favorable ruling for the first time in the 74 year history of a previously overlooked Federal statutory provision and stopped what was reported to be a $25 million project that would destroy vast Federal marshlands. Along both the gulf and Pacific coasts, numerous oil spill cases were won by the Government with some heavy fines being imposed. In Maine, the first case ever involving violations of the Refuse Act by logdriving operations was filed. Countless other cases across the country brought about the further elimination of pollution involving de-inking, chemical wastes, concrete processing, sewage disposal, the construction of dams, roads and buildings of all types. In Chicago the U.S. attorney participated in the first people-pollution case involving the question of density of population in a given area. The first criminal action brought by the Federal Government seeking to punish persons profiting from the poaching of alligators resulted in a felony conviction and a jail sentence for the defendant. An indict ment is pending against one of the largest importers of wild animals and the U.S. attorneys are continuing to investigate the trafficking in endangered animals. Since August of 1971, the U.S. attorneys have taken an active and aggressive role in the administration of the President’s economic stabilization program. The continued active litigation in this area was a testament to the U.S. attorneys’ concern with economic problems. Numerous tort claims actions against the United States, including multi-plaintiff aviation cases, medical malpractice suits, requests for an endless variety of temporary restraining orders, as well as unusual environmental actions were successfully defended by the U.S. attorneys. Since there is no Federal consumer statute as such, the U.S. attorneys have been forced to find new uses for old laws in what has been their most successful year in the indictment and conviction of practices plaguing large numbers of consumers. The success would have been impossible without close contact in the community with local legal services and state and local consumer agencies. One case represents the first time that practices such as bait and switch advertising and selling have been prosecuted under the Federal mail fraud statute. This and another case are part of a serious effort to prosecute the stores and door-to-door salesmen that operate in low-income areas where they can practice systematic and widespread fraud on their customers, the community with local legal services and state and In U.S. v. Louisville Motors, the defendant pled guilty to a charge of illegally intercepting communications by bugging the closing room of their business to listen in on customers’ conversations. Another case involved the preparing and packaging of cookies under conditions in which they may have become contaminated with rodent hair or other filth. The president of Acme Markets was convicted of similar acts involving rodent infestation of food for sale. In still another case, the U.S. attorney obtained the seizure and condemnation of a certain drug that was adulterated and unsafe for use. One of the world’s four largest drug manufacturers and five of its executives were indicted for shipping contaminated drugs. Several of the defendants have already pled guilty and others await trial in U.S. v. George Marsonet, et al., which involves a $1.1 million scheme to sell worthless weight reducing pills and aphrodisiacs. Successful tax evasion cases were completed in every major office with many of the defendants being the leaders of their communities, professionals, or regional groups of organized criminals. Millions of dollars in counterfeit money was seized across the country with numerous defendants convicted or awaiting trial. Like 7 wise, success continued in the prosecution of aircraft safety cases, firearms violations, bank robberies, Hobbs Act violations, obscenity charges, discrimination cases, bombings, and equal employment opportunity cases. The presence of the Federal prosecutor—the U.S. attorney—in law enforcement is so broad, and yet so unique that without him certain criminal activities could not be effectively prosecuted. His unique jurisdictional and resource capabilities often leave him as the only one able to effectively handle certain cases. A few examples of the importance and diversity of these cases are listed below: U.S. v. Billy Mayes, et al., in which 19 defendants were convicted of an auto-theft conspiracy operating in ten states. The trial lasted over eight weeks. Over 1,100 Government witnesses were subpoenaed, of whom 529 actually testified concerning 571 Government exhibits and over 1,000 automobiles that had been stolen. These convictions culminated an extensive three-year investigation involving plans to kill potential witnesses, jury tampering, and auto theft. U.S. v. State of Florida, et al., was the culmination of nearly 25 years of state and federal litigation concerning the ownership of a 1,377-acre tract of land known as the Naval Live Oak Reservation. By obtaining U.S. ownership of this extremely valuable and historic land, the U.S. attorney has helped preserve a beautiful reserve for all Americans. In U.S. v. Vios, et al., approximately $1.2 million worth of counterfeit U.S. stamps were seized. Four defendants were convicted in the largest counterfeit stamp case in history. In Tennessee, in a case still in process, multiple defendants will be charged with the operation of a 15,227-gallon moonshine distillery. The still, thought to be the largest ever seized, was concealed underground in a barn and was electrically operated by remote control. U.S. v. Hillcrest Foods, Inc., resulted in the largest criminal fine ever imposed for safety violations since the creation of the Federal Highway Administration’s Bureau of Motor Carrier Safety. The vigorous prosecution of motor carriers has done much to improve the safety of interstate travel. The traditional role of the U.S. attorney as just a public lawyer presenting evidence to the court and jury no longer fits the challenges of modern America. The U.S. attorney has an obligation to plan creatively the use of his resources to deal with major enforcement problems, to develop more effective techniques for insuring meaningful enforcement and to be an active representative of the public interest in the many areas of law enforcement. The U.S. attorneys have repeatedly appeared before business and professional groups to urge their cooperation in fighting corruption; prepared and distributed literature on white-collar crime; launched training programs designed to improve the professional competence of attorneys, support staff, and investigators; participated in many legislative revision committees dealing with new or changed statutes; engaged in management studies and improvements in new office machines and managerial techniques; and written and distributed dozens of office and trial memoranda to serve as a ready reference for law and procedures. Criminal and Civil Cases Handled by U.S. Attorneys in U.S. District and Appellate Courts and State Courts, Fiscal Year Ended June 30,1973 Judicial districts U.S. civil cases in U.S. district and appellate courts and state courts Criminal cases in U.S. district and appellate courts Defendants in criminal cases in U.S. district and appellate courts Pending Termi- Pending Pending Termi- Pending Pending July 1, 1972* Filed 2 nated 3 June 30, 1973 July 1, 1972* Filed2 nated ’ June 30, 1973 July 1, 1972* Termi- Pending Filed nated June 30, 1973 Alabama: Northern . 186 384 401 169 287 513 575 225 201 263 254 210 Middle 25 315 298 42 30 505 488 47 67 89 104 52 Southern 54 150 134 70 70 238 183 125 82 84 100 66 Alaska 178 194 215 157 224 238 260 202 226 151 134 243 Arizona 835 1,648 1,451 1.032 1.122 2.374 2.105 1.391 417 645 631 431 Arkansas: Eastern.. 85 286 271 100 94 329 313 110 199 196 212 183 Western 17 94 83 28 29 120 117 32 115 153 120 148 California: Northern 848 969 1,086 731 1,066 1,296 1,331 1,031 778 606 527 857 Central ... 1,521 2,435 2,285 1,671 1,782 3,190 2,930 2,042 1,000 1,331 1,238 1,093 Eastern.. 421 1,006 944 483 510 1,118 1,053 575 372 304 251 425 Southern 1,333 2,215 1,985 1,563 1,969 3, 040 2,828 2,181 235 335 322 248 Colorado 271 470 463 278 318 597 606 309 330 378 404 304 Connecticut 319 329 361 287 416 437 461 392 470 397 521 346 Delaware 111 119 152 78 203 140 185 157 142 73 93 122 District of Columbia Florida: Northern 4,299 2,371 5,192 1,478 5,087 2, 901 6, 216 1,772 973 1,016 819 1,170 118 300 312 106 136 421 426 131 140 192 193 139 Middle 545 734 795 484 910 1,127 1,188 849 584 744 754 574 Southern Georgia: 472 1,052 1,041 483 752 1,530 1,528 754 587 795 902 480 Northern 438 800 806 432 591 1,162 1,147 606 359 813 797 375 Middle 96 289 288 97 130 484 470 144 107 141 137 111 Southern 99 313 330 82 125 474 430 169 76 119 105 90 Hawaii 105 209 180 134 141 300 230 211 99 103 90 112 Idaho 57 100 106 51 67 119 125 61 104 146 121 129 See footnotes at end of table. 8 Criminal and Civil Cases Handled by U.S. Attorneys in U.S. District and Appellate Courts and State Courts, Fiscal Year Ended June 30,1973—Continued Judicial districts Criminal cases in U.S. district and appellate courts Defendants in criminal cases in U.S. district U.S. civil cases in U.S. district and appellate and appellate courts courts and state courts Pending July 1, 1972‘ Filed2 Terminated3 Pending June 30, 1973 Pending July 1, 1972‘ Filed2 Terminated 3 Pending June 30, 1973 Pending July 1, 19722 Filed Terminated Pending June 30, 1973 Illinois: Northern 799 1,096 1,153 742 1,217 1,666 1,770 1,113 1,005 1,120 1,009 1,116 Eastern 131 265 215 181 186 378 320 244 181 213 169 225 Southern 150 207 222 135 176 268 279 165 155 187 173 169 Indiana: Northern 254 410 353 311 341 529 501 369 239 116 222 233 Southern 249 362 344 267 370 524 528 366 358 408 338 428 Iowa: Northern 40 74 72 42 47 97 93 51 52 118 88 82 Southern 64 148 125 87 91 185 174 102 117 159 162 114 Kansas 235 492 477 250 298 618 602 314 335 875 783 427 Kentucky: Eastern 151 464 445 170 184 617 578 223 706 370 404 672 Western 90 413 421 82 141 527 528 140 288 266 218 336 Louisiana: Eastern 260 556 631 185 415 793 815 357 461 862 955 368 Middle 1 86 50 37 1 105 59 47 56 90 84 62 Western 148 303 342 109 178 364 395 147 331 370 417 284 Maine ... 104 93 105 92 134 122 148 108 36 72 61 47 Maryland 415 628 627 416 579 875 824 630 428 357 382 403 Massachusetts 404 427 457 374 679 768 764 683 474 408 359 523 Michigan: Eastern 1,063 1,724 1,482 1,305 1,642 2, 268 1,835 2,075 622 653 732 543 Western 179 308 245 242 231 333 272 292 133 175 130 178 Minnesota 407 389 499 297 472 457 579 350 393 406 410 389 Mississippi: Northern 38 137 129 46 53 176 174 55 105 123 121 107 Southern 90 215 242 63 131 284 333 82 246 373 383 236 Missouri: Eastern 166 439 402 203 210 559 509 260 291 372 325 338 Western 307 585 563 329 377 711 691 397 411 922 683 650 Montana 62 217 194 85 76 247 229 94 142 126 141 127 Nebraska ... 133 257 249 141 150 319 298 171 227 264 302 189 Nevada 121 199 219 101 201 271 345 127 156 116 122 150 New Hampshire 69 66 80 55 83 79 104 58 18 76 59 35 New Jersey 859 722 638 943 1,634 1,047 992 1,689 995 1,046 1, 019 1,022 New Mexico. 147 459 416 190 192 627 591 228 219 220 192 247 New York: Northern 251 266 244 273 342 344 324 362 532 286 315 503 Eastern 1,140 1,378 1,228 1,290 2,163 2,265 2,109 2, 319 1,748 1,182 1,015 1,915 Southern 1,485 1,510 1,390 1,605 2, 431 2,649 2,434 2, 646 2,073 1,102 912 2,266 Western 210 590 265 535 297 777 352 722 536 338 273 601 North Carolina: Eastern 91 311 287 115 99 461 381 179 141 159 141 159 Middle 66 399 380 85 75 504 479 100 76 94 69 101 Western 99 271 288 82 123 341 370 94 99 160 172 87 North Dakota 65 80 90 55 85 118 121 82 79 108 98 89 Ohio: Northern 621 996 1,034 583 754 1,151 1,188 717 1, 077 952 912 1,117 Southern 167 378 356 189 208 483 456 235 663 760 711 712 Oklahoma: Northern 55 175 176 54 59 206 199 66 297 243 273 267 Eastern 22 90 80 32 23 120 97 46 88 121 104 105 Western... 123 283 302 104 158 374 397 135 299 455 437 317 Oregon 249 266 332 183 282 330 400 212 309 399 407 301 Pennsylvania: Eastern _. 503 835 830 508 665 1,281 1,245 701 856 675 733 798 Middle. 165 237 228 174 198 290 274 214 263 252 233 282 Western 291 364 370 285 442 561 556 447 298 379 408 269 Puerto Rico.. . 331 270 276 325 374 327 325 376 548 301 169 680 Rhode Island 80 124 151 53 94 141 164 71 140 134 111 163 South Carolina 161 429 467 123 221 554 615 160 542 763 641 664 South Dakota 69 268 123 214 86 306 163 229 91 87 86 92 Tennessee: Eastern 106 308 325 89 136 434 461 109 128 236 249 115 Middle.. . 130 323 326 127 215 431 433 213 166 128 143 151 Western 194 318 307 205 296 475 451 320 108 130 123 115 Texas: Northern. ... 292 691 673 310 330 951 858 423 57 5 695 698 572 Eastern . 93 164 187 70 142 205 249 98 297 192 171 318 Southern 672 1,470 1,243 899 889 2,094 1,712 1,271 618 635 680 573 Western . 434 1,678 1,619 493 593 2,184 2,129 648 263 673 637 299 Utah 67 116 135 48 77 141 162 56 123 174 151 146 Vermont 67 101 83 85 76 151 114 113 82 103 80 105 Virginia: Eastern 472 1,032 1,067 437 591 1,366 1,356 601 351 7 49 536 312 Western 27 210 215 22 31 251 257 25 157 169 162 164 Washington: Eastern . _. 58 153 119 92 65 190 156 99 168 180 165 183 Western .’ 260 520 485 295 325 643 619 349 479 751 /3b 495 West Virginia: Northern.. .. . 87 111 146 52 94 117 156 55 95 87 75 107 Southern 83 200 193 90 116 278 263 131 294 349 353 290 Wisconsin: Eestern .. . 162 304 206 260 225 328 253 300 241 282 231 292 Western 135 113 141 107 150 119 155 114 157 145 124 178 Wyoming 25 131 128 28 33 173 160 46 31 80 65 46 Canal Zone... 143 417 481 79 159 504 576 87 10 5 5 10 Guam. 8 6 2 11 9 2 22 44 38 28 Virgin Islands 222 252 295 179 257 325 354 228 72 24 9 87 Total... 29,542 46, 663 47, 853 28, 352 40, 527 63, 421 64, 093 39, 855 32,038 34, 566 32,922 33, 682 1 July 1,1972 pending figures adjusted to reflect corrections reported by U.S. attorney’s offices. 2 Includes 1,602 cases or 1,699 defendants, initiated by transfer under rule 20. 3 Includes 1,706 cases or 2,088 defendants, terminated by transfer under rule 20 and 2,227 cases or 3,984 defendants dismissed because of superseding indictments or information. 9 Criminal Cases and Defendants in U.S. District Court by Offense, Fiscal Year 1973 Disposition of defendants in terminated cases Offense Defend- Total Cases ants1 defend- Cases termi- in cases ants Guilty filed1 nated 2 filed terminated 2 Not Dis-guilty 3 missed Rule 20 Other * Accessory after the fact............................ -.................. Aiders and abetters_______________________________________________________- Animal health: Animal Virus Act------------------------------------------------------ Quaratine_____________________________________________________________ Antigambling-------------------------------------------------------------- Anti racketeering_________________________________________________________ Anti riot laws____________________________________________________________ Antitrust violations______________________________________________________ Bail______________________________________________________________________ Bank robbery______________________________________________________________ Bankruptcy________________________________________________________________ Banks and banking_________________________________________________________ Betrayal of office________________________________________________________ Bribery___________________________________________________________________ Carriers and transportation: Air carriers and aviat'on_____________________________________________ Motorboats____________________________________________________________ Motor commercial vehicles--------------------------------------------- Navigation and navigable waters--------------------------------------- Railroads and pipeline carriers-------------------------------.--- Shipping______________________________________________________________ Stowaways on vessels or aircraft______________________________________ Transportation of specific items, explosives-------------------------- Citizenship and nationality_______________________________________________ Civil rights.....................................--------------------- Communications------------------.........--------------------------------- Conflict of interest______________________________________________________ Conservation and control of Federal land__________________________________ Conservation of natural resources: Birds_________________________________________________________________ Game------------------------------------------------------------------ Fishing violations---------------------------------------------------- Natural Gas Act___________________________________________________ Pollution_____________________________________________________________ Conspiracy________________________________________________________________ Consumer protection: Agriculture: Agriculture Adjustment Act------------------------------------------- Agriculture inspection____________________________________________ Commodity Exchange Act-------------------------------------------- Federal Insecticide Act..----------------------------------------- Packers and Stockyards Act---------------------------------------- Plant quarantine..___________________________________________________ Federal Trade and Commercial Regulations, Jenkins Act----------------- Miscellaneous food: Meat Inspection Act----------------------------------------------- Poultry inspection------------------------------------------------ Renovated Butter Act---------------------------------------------- Other protection: Mail and wire fraud_______________________________________________ Motor vehicle master keys------------------.—--------------------- Securities frauds: Clinical Laboratories Act_________________________________________ Consumer Credit Protection________________________________________ Investment Advisers Act of 1940----------------------------------- Securities Act of 1934____________________________________________ Securities frauds_________________________________________________ Contempt------------------------------------------------------------------ Copyright_________________________________________________________________ Counterfeiting—misuse and money stamps------------------------------------ Crimes affecting military service_________________________________________ Crimes by and against Indians...................................... .— Customs—Customs laws______________________________________________-.______- Elections and political activities________________________________________ Emblezzlement_____________________________________________________-....... Escape....________________________________________________________________ Espionage________________________________________----------------------------- Extortion...-------------------------------------------------------------- Federal custody----------------------------------------------------------- Food, Drug and Cosmetic Act...-------------------------------------------- Foreign policy impairment------------------------------------------------- Fraud against the Government---------------------------------------------- Forgery and misuse of insignias...---------------------------------------- Immigration_______________________________________________________________ Impersonation_____________________________________________________________ Income tax________________________________________________________________ Injury to Government property............................................. 37 38 67 45 30 1 10 ... 4 183 199 376 393 233 27 99 11 23 3 3 7 7 6 ... 1 ... 16 24 24 28 15 2 10 ... 1 191 166 1,380 1,136 725 52 326 7 26 233 202 527 506 227 58 142 9 70 80 5 96 22 1 2 16 ... 3 16 15 81 89 80 7 1 ... 1 536 421 549 430 272 5 102 45 6 1,878 2,074 2,622 2, 864 1,734 86 596 126 322 44 53 65 82 35 14 27 2 4 1,036 1, 056 1,282 1,200 953 29 143 41 34 66 75 70 77 54 4 12 3 4 186 153 315 218 113 19 62 6 18 214 216 234 224 150 7 46 18 3 1 3 1 3 1 ... 2 ... 257 276 304 335 280 3 45 6 1 44 50 49 56 23 2 14 ... 17 31 41 41 47 36 3 7 ... 1 935 1, 038 1,418 1, 689 995 104 465 26 99 14 12 16 13 13 ... 25 32 29 35 27 2 4 1 1 80 73 85 81 57 5 17 ... 2 77 74 190 175 60 39 65 3 8 34 35 55 44 24 4 11 4 1 3 7 5 9 7 ... 2 123 112 168 199 130 8 48 5 8 243 238 533 489 366 66 47 2 8 31 31 52 56 22 ... 26 5 3 1 5 1 6 6 ... 4 2 4 2 1 ... 1 ... 131 186 144 207 143 7 49 ... 8 391 481 961 1,147 522 68 394 26 137 5 7 5 7 4 ... 3 ... 4 3 7 5 5 ... 5 6 8 8 5 ... 3 ... 101 91 102 92 85 1 6 ... 6 5 8 7 6 ... 1 ... 1 1 1 1 1 ... 20 13 22 15 10 ... — 3 2 ... 5 5 18 15 5 ... 10 ... 1 1 1 1 1 ... 1 1 12 12 .. — 12 ... — 730 695 1,237 1, 092 675 54 218 69 76 5 6 5 6 3 ... — 1 1 1 5 6 8 9 3 1 5 ... 3 4 3 4 2 ... 2 ... 2 1 6 5 4 ... 1 ... 12 12 31 17 13 2 2 ... 25 28 87 58 31 2 15 2 8 50 64 60 73 28 ... 32 ... 13 6 2 10 2 2 ... 1,056 1,317 1,425 1,805 1,193 65 372 51 124 11 14 14 17 13 1 2 ... 1 9 6 18 7 3 3 1 ... 199 188 291 263 159 6 70 11 17 3 2 7 5 2 ... 3 ... ■ ■ 91 101 101 109 82 6 19 1 1 869 916 961 1,003 749 15 142 73 24 1 .. 1 ., 1 ... 154 150 234 209 107 15 62 11 14 28 41 32 49 32 2 8 3 4 61 63 135 128 95 5 25 ... 3 10 5 19 12 4 1 6 ... 1 2,359 2,409 2,815 2,887 1,995 73 617 148 54 27 32 30 33 26 ... 6 ... 1 2,137 2, 083 2, 536 2,464 1,941 28 447 20 28 65 66 69 71 41 1 19 8 2 1,386 1,225 1,559 1,411 1,050 53 187 47 74 46 72 64 158 48 ... 96 5 9 See footnotes at end of table. 10 Criminal Cases and Defendants in U.S. District Court by Offense, Fiscal Year 1973—Continued____ Disposition of defendants in terminated cases Offense Cases filed * Not Guilty guilty» Dismissed Rule 20 Other4 Defend- Total Cases ants1 defend- termi- in cases ants nated 2 filed termi- nated 2 11 525-134 0 - 74 -2 354 346 435 440 243 31 135 3 28 jurisdictional statutes Juvenile delinquency 806 751 926 601 33 202 52 38 109 122 110 149 135 163 135 198 119 101 2 15 12 ... 47 4 2 31 Liquor statutes: 1,012 1 93 1,139 1, 534 1,725 1,346 83 202 9 85 IRS liquor violations Indian liquor laws... 1 118 4 146 4 153 3 89 1 ... 14 37 1 12 3 127 3,318 3,586 3,810 2, 998 87 554 100 71 46 2,076 9 524 44 2,479 49 2, 565 47 3,103 41 2,063 1 91 4 479 1 .... 294 176 8^ 601 15; 408 13; 518 8,738 294 3, 470 207 809 91 94 ' 239 201 49 11 106 7 28 Obscene or harassing phone calls Z.’.'.-.'.' 7 120 7 100 7 171 7 126 5 62 1 11 1 ... 45 1 7 Obstruction of justice Occupational tax on gamblers 3 247 4 253 3 290 4 298 2 .... 170 24 69 9 2 26 1,533 211 1,809 228 2 085 2,348 1,428 69 395 333 123 Other stolen property '218 '240 '208 5 19 4 4 240 198 279 216 103 23 60 2 28 72 78 95 109 58 2 35 4 10 Protection of working men: 1 2 3 1 2 4 1 6 5 1 ... 6 11 2 ... 2 ... 1 .. 4 .. 9 .. Railroad Retirement Act Railroad unemployment insurance --- Unemployment compensation Federal employees 7 3 11 4 7 3 11 4 9 ... 3 ... 2 .. 1 .. Integrity of Federal programs: Commodity Credit Corporation charter Dependents Assistance Act of 1950 Economic opportunity of 1967 7 1 15 317 10 2 14 246 8 1 16 417 10 2 17 321 7 ... 1 ... 13 ... 249 6 1 .. 4 .. 63 .. 1 ... 2 3 1 5 1 13 2 ... 11 .. 4 5 4 6 4 2 .. Motor vehicle emission standards 1 1 80 1 80 1 92 1 ... 57 5 28 1 1 3 21 3 15 4 21 7 15 3 ... 11 1 3 .. 2 1 ... 1 Registration of foreign agents 1 1 2 3 2 .. 128 1 ’. 3,404 689 3,678 712 3 412 3,694 967 180 2,163 256 929 ’ 991 609 45 253 39 45 12 2,501 229 11 2,608 236 12 2 889 11 3,024 10 .. 1,954 150 1 . 672 66 182 '300 '308 182 11 69 6 40 43,730 44, 518 50,192 50,136 38,284 2,156 14, 343 2,072 3,281 D.C. and Territorial Violations 2 12 . 9 2 12 9 4 .. 1 1 4 . 2 . — - 4 5 153 344 169 375 185 35 77 3 75 ’ 5 8 13 18 17 .. 1 . 2 8 3 9 6 .. 2 . 1 167 393 197 477 263 15 127 2 70 2 3 2 3 2 .. 1 . Criminal intent for criminal offenses 2 29 3 18 2 29 3 24 1 .. 6 1 2 . 9 . 8 14 24 14 24 8 2 11 . 3 2 2 2 2 1 .. 1 . 13 17 13 17 11 .. 4 . 2 3 6 3 7 3 .. 4 . 10 84 30 93 57 2 21 3 7 15 7 15 8 .. 4 1 2 11 13 14 15 6 2 6 1 .. 9 161 36 386 10 185 48 432 23 .. 221 36 14 . 84 . 11 91 1 7 8 17 1 7 8 . 24 14 4 3 . 1 . 5 5 83 208 95 234 93 14 78 2 47 2 3 2 3 2 3 2 3 1 .. 2 1 . 1 . 1 2 1 2 1 .. 1 . 2 3 4 5 4 . 1 . 6 7 17 8 6 8 17 . 9 5 .. 1 9 . 4 . 7 319 1,118 366 1,394 912 68 217 2 195 81 ' 157 95 186 92 16 42 . 36 13 16 16 19 6 . 13 . See footnotes at end of table. Criminal Cases and Defendants in U.S. District Court by Offense, Fiscal Year 1973—Continued Disposition of defendants in terminated cases Defend- Total Cases ants1 Offense Cases termi- in cases filed1 nated2 filed defend- Not Dis- ants Guilty guilty3 missed Rule 20 Other < . termi- nated 2 Trespass—injuries to property 7 8 7 Vagrancy — - 4 4 4 Weapons control . - — 99 254 113 All other. 89 129 107 8 2 2 4 4 3 1 301 172 11 68 50 158 79 5 33 2 39 Total...: 1,331 3,335 1,530 3,957 2,209 215 847 16 670 Grand total 45, 061 47, 853 61, 722 64,093 40,493 2,371 15,190 2,088 3,951 i Excludes 1,602 cases or 1,699 defendants initiated by transfer under rule 20. 2 Includes 1,706 cases or 2,088 defendants terminated by transfer under rule 20 and 2,227 cases or 3,984 defendants dismissed because of superseding indictments or information. s Includes verdicts of not guilty by reason of insanity and 654 appellate decisions dismissed in favor of the United States. 1 Includes appellate decisions and proceedings suspended indefinitely by court. U.S. Attorneys Financial Summary Fiscal Year Ended June 30,1973—Part I Imposed Judicial district Fines Forfeitures Penalties Foreclosures Other civil Judgments Bonds forfeited Total Prejudgment civil claims Alabama: Northern $69,420.00 0 $2,130.79 $15,961.63 $309, 938. 90 0 $397, 451, 32 $272,392.81 Middle 108,997.00 0 0 0 48,429.00 0 157,426.00 4,849. 00 Southern 30,025.00 $16,104.55 0 0 220,851.89 0 266, 981. 44 275,155.97 Alaska 97,878.00 0 0 36,379.00 160,415. 39 $200.00 294, 872. 39 123,657.07 Arizona 230,000.00 2,000.00 100. 00 195,001.00 33, 877. 00 133,000.00 593, 978. 00 146, 890. 00 Arkansas: Eastern 49,336.60 0 0 251,809.55 391,334.79 14,500.00 706, 980.94 63,529. 23 Western 47,915.00 1, 302. 00 176.16 489, 783. 70 199, 037. 38 10. 00 738, 224.24 614, 398. 93 California: Northern •. 150,819.00 0 0 0 430, 302. 32 154,100. 00 735, 221.32 1,674, 298. 40 Central 820,413.18 2, 385. 48 5,592.90 1,054.85 7, 356,321.41 267, 500. 00 8, 453, 267. 82 9,811,827. 36 Eastern . 275,509.00 0 0 0 584, 681.59 26, 000. 00 886,190. 59 1,228,628. 39 Southern 374,818.18 49, 798. 39 17, 233. 67 0 139,317.18 467, 868. 46 1, 049, 035. 88 136,542. 22 Colorado.. 159,285.00 93, 390. 00 40, 898. 00 420, 888. 75 361, 799. 76 25, 500. 00 1,101,761.51 2,778,117. 58 Connecticut 31,700.00 0 1,140. 00 0 1, 544, 993. 00 0 1,577,833. 00 0 Delaware 23,172.00 4, 700. 00 41, 075. 00 105,834.18 612,565. 98 0 787,347. 16 152, 639. 99 District of Columbia 63,472.00 0 496. 75 0 69, 829. 03 0 133, 797.78 730,388. 36 Florida: Northern 5,100.00 750. 00 7, 500. 00 77,822.89 79, 388. 32 0 170,561. 21 56, 574. 57 Middle 283,740.00 12, 069. 00 1, 290. 00 1, 806, 223. 00 3,011,056.00 10,554.00 5,124,932. 00 3, 088, 572. 00 Southern 788,627.00 0 3, 000. 00 965, 076.29 668, 063. 65 249, 600. 00 2,674, 366.94 214, 483. 94 Georgia: Northern 53,260.00 3, 309.19 3, 845. 00 69,913.88 117,596. 47 232, 000. 00 479, 924. 54 100, 282.05 Middle 98,934.94 39, 652.05 0 0 255,806. 25 0 394, 393. 24 41, 949.12 Southern 31,265.00 1, 991. 08 1, 477. 20 0 421,918. 33 505.00 457,156.61 ' 311,550.70 Hawaii 20,980.00 0 0 0 0 0 20, 980. 00 1,666. 00 Idaho 8,242.00 0 0 1, 006, 686. 08 122,920.23 0 1,137, 848. 31 0 Illinois: Northern 680,478.50 180,657.10 240. 00 17,337.00 1,051,178.51 686, 500. 00 2,616,411.11 6, 447,940. 00 Eastern 282,435.00 0 100. 00 49,145.33 58, 629. 56 0 390, 309.89 39,526. 26 Southern 43,772.50 0 0 264,800.51 123,787.33 15,000.00 447, 360. 34 161,882.20 Indiana: Northern 129,837.80 0 11,530.58 228,351.41 105,387.98 2,000.00 477,107.77 808,724.06 Southern 150,321.00 800. 00 0 809,961.00 690,758. 00 0 1,651,840.00 12,834, 827. 00 Iowa: Northern 55,800.00 0 200.00 93,876.00 69,480.00 5, 000.00 224, 356.00 720.00 Southern 79,797.98 0 7,891.60 248, 509. 56 90, 989.97 2, 000. 00 429,189.11 204,491.05 Kansas 82,978.31 1,034.66 211.10 7, 362, 991. 47 251,218.63 6, 650. 00 7,705,084.17 374,394. 28 Kentucky: Eastern 45,609.50 70.00 6,220.08 0 1,706,220.64 9,000.00 1,767,120.22 55, 437.12 Western 553,753.00 10, 395. 00 27,551.74 719,586.77 64,758.24 50, 060. 00 1, 426, 044. 75 2,088, 295.28 Louisiana: Eastern 105,529.50 1, 486.16 2,025.00 2,612,883.45 1,193, 239. 70 5, 000.00 3,920,163.81 3,570,216.07 Middle 10,066.50 0 0 686, 443.93 73, 286. 31 0 769,796.74 1,047, 247.91 Western 95,233.00 0 21,605. 00 1,917,171.00 236,576.00 2,000.00 2, 272,585.00 2,570, 337. 22 Maine 48,460.00 0 2,000.00 0 33,158. 73 4, 000. 00 87,618.73 906,052.21 Maryland 178,095.35 0 26,717.56 303, 260. 48 1, 990, 368.18 9, 500. 00 2, 507, 941. 57 1,125,917.33 Massachusetts ... 255,735.00 4, 747. 92 8, 763. 44 593, 645. 06 601, 483. 37 34, 700. 00 1, 499, 074. 79 2,818,863. 70 Michigan: Eastern 3,769,820.00 0 500, 500.00 2,603,102.96 193, 299. 21 195,000. 00 10, 261,722.17 424,608.72 Western 27,700.00 0 5, 878. 52 13,801.27 153,803.06 0 201,182. 85 554,371. 34 Minnesota 130,900.00 0 0 0 1, 266,212.05 0 1,397,112.05 0 Mississippi: Northern 20,960.68 296.84 701.45 17,878.72 651,993.84 2,000.00 693,831.53 362,959.12 Southern 75,720.00 0 28.788.74 990.120. 75 242,018.15 10, 000. 00 1, 346, 647. 64 165, 209.05 Missouri: Eastern 140,581.55 19, 593. 20 3,040.76 17,871.92 537,505.73 7, 000. 00 725, 593.16 100,543.75 Western 66,678.43 4,877. 22 14, 238. 21 0 343, 085. 62 29, 250.00 458,129. 48 619, 497.80 Montana 28,221.48 0 0 880, 668. 28 70, 979. 77 0 979,869. 53 418,714. 42 Nebraska 55,016.32 580. 96 3,322.19 524, 041. 76 498, 379.30 1,000.00 1, 082, 340. 53 0 Nevada 277,498.00 0 0 0 79, 391. 04 0 356,889.04 63,556.31 New Hampshire 22,300.00 0 0 0 17,121.19 0 39,421.19 52,808.17 New Jersey ... 1,090,676.00 160.64 0 2,629,809, 34 4, 214, 275. 37 231, 000. 00 8,165,921,35 1,604, 944. 02 New Mexico .. ... 36,515.50 0 16,928.53 79, 234. 00 328,271.09 15,000. 00 475, 949.12 155, 369.79 New York: Northern 59,525.00 0 0 0 18,622.00 0 78,147. 00 21,776. 00 Eastern 671,150.00 0 0 193,956.83 516,697. 46 0 1, 381, 804. 29 288, 290.14 Southern ... 1,801,130.00 0 0 0 3,249,300.73 99, 000.00 5,149, 430. 73 1, 365,293.84 Western.... 221,000.00 52,545. 00 1,410.00 213,408.00 95,405.00 2,500.00 586,268.00 140,550.39 12 U.S. Attorneys Financial Summary Fiscal Year Ended June 30, 1973—Part 1 Imposed—Continued Judicial district Fines Forfeitures Penalties Foreclosures Other civil judgments Bonds forfeited Total Prejudgment civil claims North Carolina: Eastern $109,250.00 0 $10, 000.00 0 $22,206.46 0 $141,456. 46 $42, 628. 49 Middle .. 81,690. 00 0 0 0 0 0 81, 690. 00 17, 399.35 Western 90,850.00 $3,809.00 219.75 0 86,917.99 $4, 000. 00 185, 796. 74 222,708. 08 North Dakota 12,990. 00 0 150.00 $219,852.22 13,931.36 600.00 247, 523. 58 779, 865.66 Ohio: Northern 232, 575.50 0 0 1,431,811.88 382, 251.18 0 2,046.638. 56 3,011,122.85 Southern 116,869.00 0 0 1,037, 531.11 253,479.96 5, 000.00 1,412,880. 07 162, 786. 54 Oklahoma: Northern 83, 625. 00 0 1,850.00 1, 736, 449. 01 73,230.06 0 1,895,154.07 377, 791. 89 Eastern 5, 950. 00 0 4, 000. 00 261,686.09 67, 469. 68 0 339,105.77 96, 370. 50 Western 69, 695. 00 0 1, 035. 00 2, 409, 791. 00 499, 027. 00 25, 000. 00 3, 004, 548. 00 87, 506.00 Oregon . . 65, 375. 00 126. 35 46, 551. 60 613,251.15 142, 567. 04 25. 00 867, 796.14 270, 533. 34 Pennsylvania: Eastern..•. 822,185.78 0 25. 00 144, 593.95 4,169, 020. 88 20, 000. 00 5,155,825.61 1, 002, 376.77 Middle 111,905.00 0 0 431, 770. 48 76,118. 00 0 619, 793. 48 530. 00 Western 179,149.47 0 0 1, 200, 352.18 208, 737.18 23, 500. 00 1,611.738. 83 66, 504.03 Puerto Rico 28, 301. 00 0 0 0 0 2, 250. 00 30, 551.00 0 Rhode Island 53,700.00 0 2, 500. 00 0 715, 303.26 0 771,503.26 936,902.27 South Carolina 60,500.00 1, 500.00 0 3, 046, 862. 99 237, 066. 27 25, 000. 00 3, 370, 929. 26 1,116,770.87 South Dakota 47,245.00 0 0 0 11,186.30 0 58, 431. 30 95, 335. 00 Tennessee: Eastern 41,891.20 216.80 23, 455. 00 0 88, 044.44 0 153, 607. 44 14, 869. 09 Middle 49,812.00 0 0 0 16, 630. 51 0 66, 442. 51 1,192,913. 37 Western 76,125.00 91.74 21,180. 28 O 510, 968. 62 1, 300. 00 609,665.64 132,624. 58 Texas: Northern ... 132,894.00 0 150, 993. 94 7,895, 500.00 887, 453. 23 42, 850. 00 9,109, 691.17 133,629.31 Eastern 30,875.00 0 29,175.00 39, 034. 00 26, 087.10 0 125,171.10 84, 464. 97 Southern 320,727.50 69, 548. 00 3, 200. 00 0 3, 345, 036. 80 166, 213. 34 3, 904. 725. 64 989,733.98 Western 304,334.00 4, 750.00 4, 450. 00 0 96, 298. 82 91,000. 00 500, 832. 82 8, 000. 00 Utah 112,620.00 0 2, 435. 88 103,726.32 132. 371.19 1, 000. 00 352,153.39 391, 222. 30 Vermont.. .’ 38,675.00 0 0 0 6, 924.13 1, 000. 00 46, 599.13 0 Virginia: Eastern 133, 884. 92 38. 24 0 0 72, 746. 55 1, 500. 00 208,169.71 310, 768. 29 Western 30,133.00 0 14, 080. 47 0 15, 271.88 0 59, 485.35 0 Washington: Eastern 20,654.00 12, 000. 00 0 15, 626.44 316, 429. 65 2, 000. 00 366, 710. 09 1, 585,146. 57 Western 81,748.00 30, 826. 82 41, 999. 58 1,401,412.40 84,910.10 7, 000. 00 1,647,896.90 191,311.09 West Virginia: Northern 44,111.78 0 0 0 140, 509. 52 0 184,621.30 334, 255. 20 Southern 916,850.00 0 200. 00 0 256, 421.45 8, 500.00 1,181,971.45 78,993. 38 Wisconsin: Eastern 41,925.00 0 39, 000. 00 107, 414. 79 234, 264. 98 0 422, 604. 77 5, 464, 454. 09 Western 16,405.00 0 0 ' 171,187.11 114,610.85 0 302, 202.96 346,104. 60 Wyoming 5,100.00 0 0 797, 809. 27 157,469. 85 9, 000. 00 069, 379.12 201,132.00 Canal Zone 4,126.85 0 0 0 24. 00 2, 475. 00 6, 625. 85 0 Guam 1,400.00 0 500. 00 0 0 0 1, 900. 00 0 Virgin Islands 1,250.00 0 0 0 7, 391. 51 0 8,641.51 98, 400. 00 Total ... 19,693,602.80 627,603.39 4, 212,821.47 52, 579,973.99 51,425, 603.43 3,443,650.80 131,983,255.88 83,066,912.70 U.S. Attorneys Financial Summary Fiscal Year Ended Juue 30, 1973—Part 2 Collected Judicial district Fines Forfeitures Penalties. Foreclosures Other civil judgments Bonds forfeited Total Civil without actual suit or prosecution Alabama: Northern $131,142.84 0 $1, 630.79 $15,961.63 $73,282. 50 0 $222, 017.76 $56, 961. 37 Middle .. . 85,236.00 0 0 0 51,980. 00 0 137, 216.00 49, 030. 00 Southern . 7,184.98 $12, 504. 55 0 0 61,195.65 0 80, 885.18 117, 293.16 Alaska... . ... ._ 88,126.05 25.00 0 36,379.00 74, 875.08 $75.00 199, 480.13 98,680. 53 Arizona 105,693.00 21,000.00 2, 000.00 143, 734. 00 94,199. 20 111; 500.00 478,126.20 72,834.00 Arkansas: Eastern 36,214.80 0 2, 000.00 234,180.45 1, 006,092.57 2,200.00 1, 280, 687.82 92, 402.01 Western 41,974.00 0 176.16 110, 581.49 34,709.76 10.00 187,451.41 41,045.97 California: Northern.. 130,414.89 0 0 0 237,314.25 31,670.00 399, 399.14 1, 232,707. 55 Central 259i 069.36 7, 405. 49 16,838.27 2,057.00 493, 405. 99 76, 442. 84 855,218.95 2,258, 547.30 Eastern 93,627.61 15.00 0 0 231,158.91 3,015. 00 327, 816. 52 101, 460. 08 Southern .’ 237,983.39 49, 747. 63 5, 849.82 0 43, 056.15 290, 618. 46 627, 255. 45 75, 061.11 Colorado 37,073.32 90, 590. 00 38, 433. 00 295, 009. 96 472, 891.32 32, 200. 00 966,197. 60 535, 679.16 Connecticut 74,265.00 • 0 11,840. 89 29, 330.40 189, 377. 38 0 304,813.67 186, 956. ZU Delaware 18, 370.00 0 9, 450. 00 79, 061. 52 88, 589. 83 0 195, 471. 35 13, 295. 28 District of Columbia 60,297.00 35, 000. 00 0 0 41,638.65 0 136,935.65 575,640.83 Florida: Northern 12,994.25 750. 00 7, 500.00 587, 396. 26 75,331.47 0 683,971.98 44, 846. 26 Middle 116,788.00 12,069.00 100. 00 4, 278, 697. 00 587,280. 00 12, 554. 00 5, 007, 488. 00 500,673.00 Southern 253,476.09 250.00 4, 527.15 407,277.21 1,112,924. 39 227, 600.00 2, 006, 054.84 3,227,995.94 Georgia: Northern 61,608.61 1,219.97 591.72 36,300.00 106, 550. 87 55,012.02 261,283.19 65,870. 57 Middle 30' 420.00 17,' 564. 34 0 0 183,995.14 0 231, 979.48 81, 744.95 Southern 13^ 715. 00 2, 037. 48 11,858. 52 0 38, 330. 47 505.00 66,446.47 156,129. 38 Hawaii 28,159.99 0 0 433. 41 3, 088. 70 0 31, 682. 10 34, 485. 00 Idaho . 4,730.00 0 0 171, 278. 44 43, 826. 84 0 219,835.28 334,971.73 Illinois: Northern . 343,145.04 15, 079. 78 12,067.20 254,811.91 1, 582, 093. 04 13,775.00 2,220,971.97 645,432. 02 Eastern.. 49,400.60 0 425. 00 114, 557.01 65, 778. 08 0 230, 160.69 138, 349. 47 Southern 30,395.00 0 6, 241.13 315, 017.79 157, 266.25 10, 500.00 519, 420.17 304, 840.13 Indiana: Northern. . .. 60,048.95 0 1, 392.19 200,910.39 23,334.23 190.00 285,875.76 264, 296.80 Southern 95,600.00 880. 00 0 413,475.00 96,430.00 0 606, 38b. 0U 353,409. 00 13 U.S. Attorneys Financial Summary Fiscal Year Ended June 30 1973—Part 2 Collected—Continued Judicial district Fines Forfeitures Penalties Foreclosures Other civil judgments Bonds forfeited Total Civil without actual suit or prosecution Iowa: Northern 45,695.00 5,000.00 554. 00 208,240.00 27,475. 00 0 286,964.00 287,146. 00 Southern 43,408.88 0 4,941.60 211,538.98 20,845,03 225. 00 280, 959. 49 101,395. 46 Kansas 67,157.62 6, 952. 64 1,989.01 6,488,108. 55 178, 025.49 0 6,742, 233. 31 570,385.10 Kentucky: Eastern .. 34,905.50 0 13, 705. 44 18, 327. 64 127,329. 50 14,614.51 208,882. 59 190,307.56 Western ___ 268,512.00 2,895. 00 10,486. 20 337,927. 00 330,543.11 0 950,363.31 541.904.32 Louisiana: Eastern 122, 225. 55 4,105.18 10,551.26 1,203, 505. 26 329,961.24 6, 000.00 1,676, 348. 49 343,803.13 Middle 11,150.00 0 0 217, 077. 08 40,673. 29 0 268,900.37 43,920.71 Western 115,046.00 0 1,475.00 1, 209, 537. 00 105, 865. 00 2, 000. 00 1,433,923. 00 149,347. 00 Maine 45,390.00 0 2,000.00 0 5, 093. 00 4, 000. 00 56, 483. 00 216,460.11 Maryland 355,996.97 0 9,112. 83 212,626.94 55,638. 93 265. 00 633,640.67 476,245. 02 Massachusetts 251,385.48 1,880.92 9, 504. 82 788, 089. 08 284,374.76 33,670.00 1,368,905. 06 1,447,091.81 Michigan: Eastern ... 3,674,067.30 0 500,500.00 2, 347, 064. 34 219,627.42 93,000.00 9, 834, 259. 06 879,962.18 Western 12,552.66 0 1,395. 80 0 34,103. 84 0 48, 052.30 72, 856. 33 Minnesota 98,690.97 0 0 0 293,251.57 0 391,942. 54 127.971.63 Mississippi: Northern 12,520.00 296. 84 868. 25 14,767. 93 122,725.61 0 151,178.63 285,891.57 Southern 65,248.24 0 27,359. 52 966,133.65 275, 544.93 10, 000.00 1,344. 286.34 144.312.78 Missouri: Eastern 85,762.43 19,640. 08 2,362. 00 0 65,177.14 3,781.00 176,722.65 126, 836.38 Western 85,339.97 4, 892. 22 3, 050. 59 0 66, 093. 96 4,332. 00 163,708.74 179,613.73 Montana 14,095.00 0 297. 00 231,431.05 45, 395. 69 0 291,218. 74 545,937.23 Nebraska 46,289,47 580. 96 10,550.21 2, 514,613. 73 930, 879, 84 0 3,502,914. 21 450,826. 06 Nevada 165,155.00 0 0 0 287,135. 00 0 452,290. 00 8, 523. 00 New Hampshire 20,246.00 0 0 0 21,753.69 0 41,999. 69 56,190. 42 New Jersey 686,175.50 692. 48 1,485.00 1,900,875.38 353, 483.13 15,500. 00 2, 958,211.49 1,818, 088.12 New Mexico. ___ 21,982.50 0 16, 928. 53 23, 334. 00 283,370.92 10, 000.00 55,615.95 109,619.65 New York: Northern 50,750.00 0 0 10, 065. 00 11,459. 00 5, 500. 00 77, 774. 00 280,006. 56 Eastern 247,139.75 67, 500. 00 0 7, 584,166. 00 165, 865. 87 2, 000. 00 8, 066,671. 62 185, 478. 76 Southern ... 1,333,746.30 0 0 0 221,571.58 143,550. 00 1,688,867. 88 4,170, 320. 90 Western 36,814.00 3, 000. 00 150. 00 7, 680. 77 33, 231.18 0 80, 875. 95 198,724.93 North Carolina: Eastern.. 61,572.11 0 10, 000. 00 0 31, 544. 09 0 103,116.20 52, 883. 45 Middle 65,451.00 0 0 0 12,122.25 0 77,573.25 10, 393. 49 Western 98,701.53 3, 809. 00 4, 446.76 0 396,841.80 4, 000. 00 507, 799. 09 213,128.91 North Dakota 15,640.00 0 250. 00 197,927.57 36, 795. 20 600. 00 251,212.77 351,655.94 Ohio: Northern 176,342.70 0 150. 00 1, 306,125. 89 605,750.82 0 2, 088, 369. 41 312, 271.41 Southern 87,801.90 0 0 808,192. 04 135,192. 42 0 1,031,186.36 99, 424. 84 Oklahoma: Northern 64,844.00 0 0 874, 419. 99 7, 796.15 0 947, 060.14 119,781.27 Eastern 10,155.00 0 200. 00 192, 337. 69 37, 579. 58 0 240, 272. 27 76,943. 48 Western 90,220.00 0 2,856. 00 2,792,981.00 95,156. 00 20, 000. 00 3, 001, 213, 00 319, 466. 00 Oregon 33,110.00 126.35 7, 200. 00 445,845.50 181, 680. 69 10, 045. 00 678, 007. 54 257,778.15 Pennsylvania: Eastern 790,662.66 0 0 79, 401.00 8, 380,801.11 46, 500. 00 9, 297, 364. 77 238,147.72 Middle 111,352.00 0 0 141,049. 48 88,017.14 0 340, 418. 62 51,920.75 Western 167,453.80 0 18, 285. 85 720, 031. 22 149,558.52 6, 500. 00 1,061,829. 39 48, 018.14 Puerto Rico 26,696.50 2, 050. 00 0 9, 861. 48 145,165.18 200. 00 183, 973.16 111,514.50 Rhode Island 66,160.00 0 100. 00 0 159,781.65 0 226, 041. 65 210, 887. 22 South Carolina 41,394.73 1, 500. 00 185.15 2, 286, 746. 73 45, 468. 83 4, 500. 00 2, 379, 795. 44 430, 255.79 South Dakota 40,001.62 0 0 10, 700. 00 50,211.74 0 100,913.36 96, 849. 57 Tennessee: Eastern 39,286.00 5,810. 34 5,678. 87 146, 055.15 67,335. 32 500. 00 264,665.68 276,769. 42 Middle 43,267.11 0 0 0 50, 859. 86 0 94,126. 97 503, 043. 96 Western 36,059.00 43. 28 1,128.64 0 64, 007. 74 0 101,238. 66 59,667.55 Texas: Northern 135,155. 80 0 134,616. 86 7,895,500. 00 510, 070.11 24,100. 00 8,699,422. 77 4,133,270. 30 Eastern 15,070.80 0 0 39, 034. 00 226, 078. 65 0 280,183. 45 167,311.89 Southern 473,553.32 69, 548. 00 150. 00 0 964, 363. 25 192,813.34 1,700, 427.91 324,235.10 Western _ 286,412.50 124, 080. 00 10,732.36 0 185,866.91 38,750.00 645, 841. 77 117,354. 74 Utah 36,600.00 1,035.00 1,936. 37 129,106.74 33,359.65 1,000.00 203,037. 76 134, 046. 75 Vermont 35,695.00 0 0 2,711.93 0 1,000.00 39,406.93 95,840.37 Virginia: Eastern .. 160,556.84 138. 24 900.00 0 124,887. 86 150. 00 286,632.94 101,882.82 Western 34,988.00 0 1,682.14 1,075. 00 122, 346.91 0 160,092. 05 219, 448. 04 Washington: Eastern 18,954.00 0 0 147,685. 47 23, 431. 67 2, 000. 00 192,071.14 388,056.15 Western 88,510.55 24, 782. 38 37, 729. 04 558,918. 54 101.624. 46 12.000.00 823, 564.97 140,198. 49 West Virgina: Northern 34,981.78 0 0 0 40, 860. 51 0 75,842. 29 145,996. 79 Southern 67,815.00 0 200. 00 0 43, 257. 55 20. 00 111,292. 55 188, 221.54 Wisconsin: Eastern 26,715.00 0 5,731.60 67,018. 44 3, 954. 50 0 103,419. 54 258,976.98 Western 17,687.00 0 0 135,326.97 144, 836.16 0 297,850.13 349,426. 52 Wyoming 5,700.00 0 551.78 389,899. 23 149,989. 69 0 546,140. 70 65,458. 32 Canal zone 4,126.85 0 0 0 24. 00 2,475. 00 6,625. 85 0 Guam 800.73 0 500. 00 0 8,678. 02 0 9,978.75 0 Virgin Islands 450.00 0 0 0 7,391.51 0 7,841.51 0 Total ... 14,034,546.69 616, 497.15 4,007,400. 32 53,599,510.31 25,629,178.94 1,583,458.17 99,470,591. 58 36,340,401.61 14 Work of U.S. Attorneys Fiscal Year 1973 Judicial districts Civil cases terminated Criminal cases terminated Civil cases filed2 Criminal cases filed Criminal matters received Proceedings before grand jury Civil matters received Trials Other Trials Other Alabama: Northern_______ Middle......... Southern------- Alaska.......... Arizona............ Arkansas: Eastern________ Western________ California: Northern_______ Central________ Eastern________ Southern_______ Colorado___________ Connecticut........ Delaware__________ District of Columbia. Florida: Northern______ Middle________ Southern....... Georgia: Northern........... Middle....... Southern_______ Hawaii___________ Idaho....,________ Illinois: Northern------ Eastern....... Southern------- Indiana: Northern------ Southern------- Iowa: Northern_______ Southern_______ Kansas..........— Kentucky: Eastern_______ Western_______ Louisiana: Eastern....... Middle________ Western....... Maine_____________ Maryland__________ Massachusetts----- Michigan: Eastern_______ Western_______ Minnesota--------- Mississippi: Northern______ Southern______ Missouri: Eastern_______ Western_______ Montana___________ Nebraska__________ Nevada____________ New Hampshire.... New Jersey________ New Mexico________ New York: Northern------ Eastern_______ Southern------ Western....... North Carolina: Eastern_______ Middle........ Western....... North Dakota______ Ohio: Northern______ Southern______ Oklahoma: Northern______ Eastern_______ Western....... Oregon____________ Pennsylvania: Eastern....... Middle________ Western_______ Puerto Rico....... Rhode Island______ South Carolina____ South Dakota______ Tennessee: Eastern_______ Middle........ Western....... 13 241 28 373 263 384 1,246 267 376 10 94 59 239 89 315 792 241 132 6 94 22 112 84 150 455 101 103 2 132 15 200 151 194 687 98 175 17 614 133 1,318 645 1,648 4,081 1,238 818 7 205 53 218 196 286 734 199 206 8 112 7 76 153 94 415 61 143 22 505 168 918 606 969 4, 032 523 71 67 1,171 277 2,008 1,331 2,435 8, 879 1,611 1,669 18 233 55 889 304 1,006 2,918 542 344 72 250 197 1,788 335 2,215 23, 503 1,190 385 33 371 87 376 378 470 1,587 273 440 10 511 35 326 397 329 1,423 196 431 93 17 135 73 119 440 62 94 16 803 794 4,398 1,016 2,371 3, 291 1,408 912 4 189 47 265 192 300 808 215 220 22 732 104 691 744 734 3,436 458 888 28 874 159 882 795 1,052 3,688 779 838 26 771 151 655 813 800 2,238 511 845 2 135 49 239 141 289 866 195 174 3 102 30 300 119 313 1,324 188 154 17 73 11 169 103 209 1,023 161 106 7 114 11 95 146 100 591 52 187 31 978 156 997 1,120 1,096 6,206 711 1,221 1 168 33 182 213 265 764 213 216 4 169 18 204 187 207 957 199 223 4 218 56 297 216 410 1,544 303 221 338 37 307 408 362 1,274 300 409 1 87 7 65 118 74 295 42 141 9 153 25 100 159 148 583 103 186 17 766 93 384 875 492 1,370 309 868 8 396 105 340 370 464 1,186 374 771 6 212 37 384 266 413 1,511 252 349 26 929 68 563 862 556 1,815 331 1,008 84 3 47 90 86 270 71 103 10 407 36 306 370 303 1,388 210 427 2 59 12 93 72 93 601 47 136 15 367 76 551 357 628 2, 584 424 424 8 351 91 366 408 427 2, 284 296 535 22 710 122 1,360 653 1,724 4, 569 1,197 727 3 127 12 233 175 308 640 137 206 7 403 102 397 406 389 1,290 265 473 7 114 22 107 123 137 511 105 119 16 367 17 225 373 215 1,078 118 387 10 315 73 329 372 439 1,946 206 451 19 664 62 501 922 585 1,733 345 977 12 129 23 171 126 217 705 127 141 11 291 30 219 264 257 881 160 317 5 117 37 182 116 199 901 169 121 3 56 10 70 76 66 118 46 81 6 1,013 67 571 1,046 722 4,178 510 1,278 12 180 35 381 220 459 1,684 321 258 6 309 24 220 286 266 1,132 194 335 2 1,013 111 1,117 1,182 1, 378 3, 404 840 1,713 19 893 234 1,156 1,102 1,510 3,912 1,056 1, 354 2 271 25 240 338 590 2,013 483 412 23 118 24 263 159 311 1,170 238 161 2 67 120 260 94 399 808 334 104 6 166 45 243 160 271 816 179 16b 2 96 22 68 108 80 385 42 151 8 904 70 964 952 996 2, 541 667 984 13 698 28 328 760 378 1,846 287 766 3 270 14 162 243 175 602 95 286 8 96 12 68 121 90 359 66 132 18 419 39 263 455 283 1,541 178 486 34 373 44 288 399 266 1,090 149 439 18 715 124 706 675 835 3,374 734 883 4 229 34 194 252 237 997 180 298 4 404 86 284 379 364 1,285 235 449 169 16 260 301 270 721 219 307 2 109 21 130 134 124 620 84 142 11 630 58 409 763 429 2,026 302 824 4 82 16 107 87 268 645 282 90 6 243 57 268 236 308 1,172 211 259 21 122 70 256 128 323 1,039 194 198 13 no 67 240 130 318 888 246 146 See footnote at end of table. 15 Work of U.S. Attorneys Fiscal Year 1973—Continued Judicial districts Civil cases terminated Criminal cases terminated Civil cases filed2 Criminal cases filed Criminal matters received Proceedings before grand jury Civil matters received Trials Other Trials Other Texas: Northern. Eastern.. Southern-Western.. Utah...... Vermont...... Virginia: Eastern.. Western.. Washington: Eastern.. Western.. West Virginia: Northern. Southern. Wisconsin: Eastern.. Western.. Wyoming______ Canal Zone... Guam_________ Virgin Islands. Total.. 38 660 53 620 695 691 3,366 517 754 13 158 23 164 192 164 634 94 210 34 646 97 1,146 635 1, 470 3, 744 1,109 760 16 621 86 1,533 673 1,678 12,982 768 738 4 147 26 109 174 116 787 20 180 3 77 7 76 103 101 243 50 98 44 492 200 867 497 1, 032 2, 922 650 552 6 156 13 202 169 210 567 143 543 4 161 21 98 180 153 637 96 215 12 723 67 . 418 751 520 1,841 306 858 1 74 20 126 87 111 268 59 182 3 350 30 163 349 200 494 143 492 2 229 32 174 282 304 680 228 289 4 120 10 131 145 113 407 77 157 3 62 4 124 80 131 457 41 93 5 88 393 5 417 454 8 6 38 1 5 44 8 54 6 49 9 90 205 24 252 280 15 23 1,101 31, 821 6,203 41,650 34, 566 46,663 178, 526 30,235 40, 368 i Includes 1,706 cases terminated, by transfer under rule 20 and 3,984 cases dismissed because of superseding indictments or information. 2 Includes 1,602 cases initiated by transfer under rule 20. 16 U.S. Marshals Service The Director of the U.S. Marshals Service is appointed by the Attorney General and is responsible to the Deputy Attorney General. He directs and supervises the 94 U.S. marshals—one in each of the Federal judicial districts. Assisted by their deputies and administrative staffs, the marshals occupy a unique role in the Federal administration of justice. While agents of the executive branch of Government, they also function as executive officers of the Federal courts. They are located throughout the 50 States as well as in Guam, Puerto Rico, the Virgin Islands, and the Canal Zone and discharge varied responsibilities in widely divergent environments. To insure efficient operation, the Federal judiciary must look to the executive branch for contributory support which is provided in large measure by programs of the U.S. Marshals Service. Personal Security Under the Organized Crime Act of 1970, the U.S. Marshals Service was given responsibility for protecting both State and Federal witnesses having knowledge of matters pertaining to the operation or activity of organized crime. The Service, working closely with the Criminal Division of the Department of Justice, has successfully conducted more than 500 witness protective assignments during the past year. This coverage frequently encompasses the period of time between the witnesses’ first appearance before the grand jury and the culmination of the trial. These 500 assignments were done during a functional reorganization designed to expedite the protection, movement, employment, documentation, and funding of protected witnesses. Key events in this program included the protection of Joseph Luparelli, an eyewitness to the gangland execution of “Crazy Joey” Gallo; John Dean; E. Howard Hunt; and Annette Gilly, a pivotal witness in the Yablonski murder case. To insure the continued success of this important program, the Service designed and implemented a specialized curriculum in witness protection which is attracting wide interagency attention. Court Security The U.S. Marshals service is responsible for maintaining the integrity of the Federal judicial process by insuring the security of buildings housing Federal courts as well as the personal safety of the Federal judges holding court therein. This includes protection of judges, both on and off the bench, who have been the target of specific threats. The Service completed physical security installations in 51 Federal courthouses and initiated the installation of physical security systems in 37 other Federal court buildings. It provided security support for a total of 17,712 trials involving a total of 33,258 trial days. In order to meet the needs of problem trials and personal security for judges, the Service provided 660 out-of-district deputies to staff 33 problem trials, three sequestered juries and four judicial personal security details. Trials which required extraordinary security precautions included the Fountain Valley Five and Brauhaus murder cases in the Virgin Islands, the Gainesville Eight and Camden 28 trials and the 400-defendant Bowling Green (Ky.) trial. An additional responsibility is the security of military weapons program which involves insuring the cooperation of local and state law enforcement officers in a national program designed to keep military weapons from falling into the hands of revolutionaries and criminals. Developed initially as an eight-state pilot pro- 17 Deputy U.S. Marshals provide security for an important witness in a successful organized crime case. The Marshals Service provided protection for over 550 witnesses in FY 1973, an increase of 30% over last year. gram, this activity is currently being expanded into a national program. Service of Process The Service has given priority to the establishment and implementation of standardized warrant apprehension procedures to increase the effectiveness of the apprehension program and reduce the backlog of unexecuted Federal warrants. The new procedures will help maintain the integrity of the judiciary by reducing the amount of time required to apprehend individuals wanted by the courts. The ultimate goal is the expeditious apprehension of all individuals for whom warrants are issued, the elimination of those conditions which allowed this backlog to develop and the expeditious identification of all detained persons to insure that arraigning officials are fully cognizant of the criminal records of those brought before them. Special warrant investigative units were formed in an attempt to clear large numbers of outstanding warrants of arrest. The first 15-man warrant task force, implemented in Minneapolis for a ten-day period in September, cleared 64 cases or 49 percent of the outstanding warrants. The second task force, in Baltimore, cleared 134 cases or 33 percent of outstanding warrants. These successes in reversing the backlog of out standing warrants of arrest that face the court have resulted in the continuation of the program on an expanded scale. When fully operational in early 1974, this program is expected to have a significant impact in reducing the at-large criminal population. Prisoner Movement The marshals have custody of all Federal prisoners from the time of their arrest by marshals or other Federal law enforcement officers until they are finally released by the courts or are delivered to a penal institution. The Marshals Service was instrumental in the move of more than 42,600 prisoners during the year while the cost per mile of prisoner movements was reduced from 10.50 to 9.50. Feasibility studies of mass transit movement of prisoners utilizing over the road buses and Amtrak are expected to contribute significantly to this downward trend in cost. Special Operations Group The special operations group (SOG) is a highly trained, self-sufficient, mobile reaction force designed to provide a suitable Federal response to situations of national significance in which the Attorney General 18 determines that local resources are inadequate and military force inappropriate. SOG can be assembled in a fully operational posture at any point within the continental United States in six hours. SOG was the primary force available to the Federal Government when dissident Indians, associated with the American Indian movement (AIM), attempted to seize the Bureau of Indian Affairs headquarters on the Pine Ridge Indian Reservation, S. Dak. Frustrated at Pine Ridge, AIM seized the historic hamlet of Wounded Knee, S. Dak. SOG established a 15 mile perimeter around the hamlet, contained the dissidents and maintained an effective force of 125 men. Thousands of rounds were fired at SOG members from inside the hamlet of Wounded Knee during the period of occupancy. One U.S. marshal received a permanently paralyzing injury as the result of a gunshot wound. SOG members and staff have provided training to Bureau of Indian Affairs Police at Pine Ridge, S. Dak., and at its facility in Utah, including arrest techniques, use of restraining devices, use of firearms, civil rights, riot and crowd control techniques, and the use of chemical agents. SOG also received a commendation from the President for providing protection and security for the party of Secretary Leonid Brezhnev at Washington and San Clemente during his visit to the United States. Special operations group staff officers continue to evaluate, review, and update techniques and methods employed in SOG operations. Extensive planning and research, together with the selection of highly trained and qualified instructors, has enabled the U.S. Marshals Service to assemble an elite group of dedicated professionals to train together and form a skilled task force Members of the Marshals Service’s Special Operations Group on duty at Wounded Knee, South Dakota, during the longest civil disturbance in the history of our Nation. to meet every requirement in the effective handling of unlawful assemblies. Air Piracy Program On May 1, 1961, Julio Ramierz Ortiz opened the cockpit door on National Airlines flight No. 337 to Key West, Fla., pointed a knife at the copilot, drew a pistol on the pilot and said “Let’s go to Cuba.” These four words, uttered by Ortiz, launched the skyjacking phenomenon that by November of 1969 reached the epidemic proportion of 72 attempted hijackings of U.S. registered aircraft, 56 of them successful. It was at this same time that the Service entered the field of anti-air piracy. The newly designed program centered on the preboard screening of passengers against a typical hijacker behavioral profile, supported by further surveillance of any such passenger for certain characteristics as well as an exposure to a magnetic detection device. The system was designed to apply countermeasures on the ground rather than in flight. From a modest beginning of a one-man detail at Miami, Fla., the anti-air-piracy program of the Service grew to a nationwide operation at 53 airports, located in 34 judicial districts and employing 240 deputy marshals. By June 30, 1973, the threat of air piracy had subsided and the Service can now note with pride the following accomplishments: the arrest of 4,414 persons, 730 of these arrests for concealed weapons; the arrest of 1,078 persons for violation of Federal and state narcotic laws concomitantly involving the seizure of $18,-642,379 worth of narcotics, and the seizure of $1,778,-667 in U.S. currency. Not one flight screened by a deputy U.S. marshal was hijacked during the four-year program. Training The training objective of the U.S. Marshals Service is to provide personnel with high standards of education in order to produce professionally oriented law enforcement officers at all levels and to insure a progressive program of career development. Via internal, interagency, and non-Government training programs, Marshals Service personnel are trained in support of regularly assigned responsibilities and new operational missions. Nearly 1,100 U.S. Marshals Service participants were trained in these programs during fiscal year 1973. The Service continued to provide intergovernmental training assistance with short-term practical courses in court and legislative security and civil disturbance training to almost 100 Federal, state, and local law enforcement officers. Management The Service intensified its internal field management inspection program begun in 1972 to assure that all 19 allocated resources throughout the 94 judicial districts are constantly being utilized with maximum efficiency and effectiveness. In January 1973, the composition of field inspection teams was changed from primarily staff participation to marshals, chief deputy marshals and other district supervisory and administrative personnel. During the year, 12 marshals, 33 chief deputies, and five other field representatives participated in and reported on the examination of 19 districts for a total of 30 inspections since program inception. The interchange of ideas, exposure to different districts, and prompt implementation of corrective measures proved major forces in advancing toward the Service-wide goal of operational uniformity. District performance was monitored through analysis of periodic status reports, daily activity logs, statistical data, and specific program accomplishments which provided a basis for determining resource allocations and overall mission progress. These reviews were integrated with the field survey effort which resulted in heightened inspection effectiveness. The Service identified 11 to 15 major reportable activities in its initial productivity indices submission to the Department. This resulted in the prisoner transportation activity being selected by Office of Management and Budget for productivity measurement. Computed indices indicated an annual productivity increase exceeding ten percent since 1967. Internal Services The Service continued to strive for increased efficiency through acquisition of standardized modem equipment and elimination of waste in terms of equipment, space, and personnel man-hours. The renovation of the communications system is one year ahead of schedule. Installed were 32 new base stations and 27 repeaters to replace obsolete equipment and establish new systems. In addition, 275 new “pull and run” portamobile systems designed to provide mobile, portable, and base station operations from a single transceiver were acquired. This is considered to be the most advanced radio communications system in use in the public safety field today. The Service has assumed responsibility for purchasing and contracting functions under authority delegated by the Assistant Attorney General for Administration. This has resulted in increased personnel efficiency by eliminating duplication of requisitioning documents. Over 100 space surveys were conducted and funds were obligated for improvements in 75 offices. A highly responsive personnel management program was designed to provide sound advice and guidance to Service executives and headquarters and field managers. New qualification and classification standards were developed for deputy U.S. marshal positions. The new classification standards placed these positions into a truly professional grade structure commensurate with the added duties and responsibilities of the modem day deputy U.S. marshal. A new national recruiting program was implemented for entry level deputy marshals. To complement the recruiting program, a new written examination was developed in conjunction with the Civil Service Commission. Statement of Costs in Judicial Districts for Fiscal Year 1973 as of June 30,1973 Judicial districts Total Fees and expenses of witnesses Salaries and expenses, U.S. attorneys and marshals Support of U.S. prisoners Alabama: Northern..................................................................... Middle......................................................................... Southern..................................................................... Alaska............................................................................ Arizona........................................................................... Arkansas: Eastern...................................................................... Western...................................................................... California: Northern..................................................................... Eastern...................................................................... CentraL...................................................................... Southern....................................................................... Canal Zone........................................................................ Colorado.......................................................................... Connecticut........................................................................ Delaware.......................................................................... District of Columbia................................................................. Florida: Northern.......................................................... Middle.......................................................................II Southern..................................................................... Georgia: Northern.................................................. Middle............................................................ Southern..................................................................... Guam................................................................... Hawaii............................................................ . . Idaho............................................... $924,090.36 $41,693. 31 $815,882.43 $66,514.62 663, 492. 77 72,649.13 556,418.67 34, 424. 97 440,627.18 25,814.35 396,285.42 18,527. 41 657,289.43 32,849.83 549, 923. 81 74,515. 79 2,276,309.66 240,952.46 1,459,918.72 575,438. 48 578,109.06 40,588.22 518,107.99 19,412.85 369, 984.14 23,719.08 337,754.00 8,511.06 2,746,292. 51 185,712.06 2,098,867.16 461, 713.29 1,238,263.72 93,088.07 926,716.07 218,459.58 6,034,380.03 506,659. 88 4,395, 576.12 1,132,144.03 3, 948, 382. 38 159,945.05 1,769,594.01 2,018,843.32 153,000.77 .... 153,000.77 .... 1,271,801.01 86,318.25 917,479.60 268,003.16 1,067,907.11 112,646.06 704,811.09 250,449. 96 268,218. 51 7,691.80 225,217. 79 35,308. 92 12,194,144.67 296,404.92 9,017,244.83 2,880,494.92 554,088.19 61,310.00 438,599.57 54,178.62 2,109,627.03 319,338.74 1,531,861.74 258,426.55 2, 302,441.71 262,487. 59 1,773,920.19 266,033. 93 1,625,654.77 181,873.55 1,142,258.73 301,522.49 607,769.03 103,703.87 471,135.75 32, 929. 41 635,889. 56 36, 373. 44 575,528.48 23,987. 64 166, 895. 69 657.00 161,127.09 5,111. 60 552,230.18 15,538. 44 429,127.09 107,564.65 380,916.24 26,124.10 337,484.72 17,307. 42 20 Statement of Costs in Judicial Districts for Fiscal Year 1973 as of June 30,1973—Continued Judicial districts Illinois: Northern............... Eastern........... Illinois: Southern..... Indiana: Northern.......... Sourhtern.......... Iowa: Northern............. Southern.......... Kansas................ Kentucky: Eastern___________ Western............ Louisiana: Eastern............... Middle___________ Western........... Maine............... Maryland.._____________ Massachusetts__________ Michigan: Eastern............ Western............ Minnesota............. Mississippi: Northern.......... Southern........... Missouri: Eastern____________ Western.......... Montana................ Nebraska_______________ Nevada_________________ New Hampshire---------- New Jersey_____________ New Mexico............. New York: Northern.......... Eastern......... Southern__________ Western____________ North Carolina: Eastern............... Middle_____________ Western___________ North Dakota........... Ohio: Northern........... Southern__________ Oklahoma: Northern.............. Eastern ........... Western____________ Oregon________________ Pennsylvania: Eastern........ Middle_____________ Western........... Puerto Rico____________ Rhode Island__________ South Carolina......... South Dakota___________ Tennessee: Eastern............. Middle_____________ Western___________ Texas: Northern............. Eastern____________ Southern.......... Western............ Utah__________________ Vermont_______________ Virginia: Eastern............ Western___________ Washington: Eastern........ Western........... West Virginia: Northern___________ Southern.......... Wisconsin: Eastern......... Western......... Wyoming_______________ Virgin Islands........ Subtotal________ Department total. Grand total..... Total Fees and expenses of witnesses Salaries and expenses, U.S. attorneys and marshals Support of U.S. prisoners 4,161,391.48 358,825.55 3,587,654.43 214,911.50 566,207. 80 50,667.47 415,135.00 100,405. 33 479,136.73 24,105.25 429,618.24 25,413. 24 606,295.90 59,272.75 517,875.24 29,147. 91 888,427.22 62,328.68 742,299.18 83, 799.36 401,697.28 50,188.92 307,431.49 44,076.87 391, 366.22 32,719.65 339,707. 54 18, 939.03 1,273,208.51 144,378.62 1,013,756. 85 115,073.04 946,216.93 168, 565.00 685,598.62 92,053.31 1,052.538. 59 174,254. 54 702,346.16 175, 937. 89 1,888,309.58 140,584.92 1,553,838.08 193, 886.58 243,914.23 8,768.70 205,872. 26 29,273.27 885, 944. 36 99,303.38 74, 973. 88 42, 667.10 289,764.80 11,754.02 266,698. 39 11,312.39 1,938, 506.67 113,994.70 1,578, 411.06 246,100. 91 1,819,060.69 89,916.20 1,402,833.24 326,311.25 1,712, 439.56 113,693.70 1,292,533.71 306, 212.15 462,225.80 9,114.13 410,631.24 42, 480. 43 1,038, 545.41 88,453.58 771,584.92 178, 506. 91 505,468.93 42,250.24 453,968.73 9,249. 96 677,823. 56 25,971.70 609,218. 83 42,633. 03 1,163,684.83 65,280.97 891,335.29 207,068.57 1,236,897.82 87,227.81 1,019,132.38 130,537.63 559, 984.05 54,615.42 475, 404. 28 29, 964.35 571, 989.19 46,116.91 479,850.23 46,022. 05 670,318.11 83,466. 56 516, 459. 49 70,392. 06 229, 577.21 9,793.50 199,154. 46 20,629. 25 3,070,441. 39 122,743.56 2,852,680.44 95, 017. 39 767,897.33 65,366.84 604,726.69 97,803. 80 653,089.92 37, 344.07 576,396.14 39, 349. 71 3,383,833. 59 347, 415. 24 2, 847, 318. 50 189, 099.85 5,474,030. 05 536,321. 86 4, 841, 012. 43 96, 695. 76 938,805.91 86,578.09 722,347.03 129,880. 79 736, 533.86 34,435.05 630,467.31 71,631.50 426,973.61 32, 316.02 333,147.70 61, 509.89 453, 443. 06 31, 576.04 365, 551. 42 56,315.60 392,061.77 22, 765.73 354,802.67 14,493.37 1,584,523.48 101,672.50 1,233,197.79 249,653.19 1,062,221.17 20,511.91 839,617.27 202,091.99 484,003.10 42,169.88 422,343.87 19,489.35 350,483.29 10,623.00 327,128.93 12,731. 36 729, 984.71 34, 687. 44 602,811.11 92,486.16 1,295,962.08 50,976.94 1,029,036.15 215, 948. 99 2,437,934.06 150,884.83 1,693,393.07 593,656.16 910, 560.57 12,338.41 453,523.24 444, 698. 92 1,130,713.97 115,525.99 917, 560.76 97,627. 22 648, 458. 58 22,211.49 587,723.46 38, 523. 63 492, 980.06 118, 584.53 357, 485.48 16,910. 05 1, 240,622. 43 92,600.13 1,055,419.95 92,602. 35 2,277,076.94 61,744.33 2,193,184.30 22,148. 31 681, 881.89 49,358.28 600, 538.76 31,984.85 596, 524. 35 35,853.83 488, 851.20 71,819.32 737,214.52 97,728.50 580,964.71 58, 521. 31 1,844,093.82 153,600.18 1,464,433.52 226,060.12 717, 451. 28 89,085.29 603, 906. 28 24,459.71 2,337,516. 56 131,136.20 1,685,001.06 521, 379. 30 2, 565, 274. 99 149,481.84 1, 504, 088. 92 911,704.23 621, 727. 96 38,796.02 348, 524. 34 234, 407. 60 315,876.66 21,190.27 267,306.65 27, 379. 74 2,010,483.32 194,272.58 1,633,361. 31 182,849.43 377,000.84 14,930.40 313,275.14 48,795.30 456,257.75 21,026.20 406,893.98 28,337,57 1,365,039.24 49,930.08 1,012,220.07 212,889.09 337, 543.51 14,451.00 268,051.06 55,041.45 564,249.91 36,883.67 473,105.96 54,260. 28 509,947.88 76,022.88 412, 949.73 20,975.27 288,409.36 39,884.37 238,301.24 10,223.75 275,759.28 23,154.20 244, 486. 59 8,118.49 312,560.60 14,409. 98 294,588.37 3,562.25 118,286,195.82 8,552, 341.72 92,087,889.66 17,645, 964.44 10, 453,854.18 2,096,829.28 7, 534,278. 34 822, 746.56 128,740,050.00 10,649,171.00 99,622,168.00 18,468,711.00 21 Office of Criminal Justice The Office of Criminal Justice was established within the Department of Justice to be a focal point for thoughtful consideration of all aspects of the criminal justice system in the United States. The Office is interested both in identifying existing problems and proposing reforms and solutions. All elements of the system (suspects, defendants, offenders, police, prosecutors, defense counsel, judges, probation and corrections personnel, and the public, including crime victims and witnesses) fall within the jurisdiction of the Office. So too does the study of all functions of the system (prevention, deterrence, detection, apprehension, prosecution, defense, adjudication, correction and rehabilitation) . The Office initiates proposals for reform and studies and comments on solutions proposed by others. The goal is to present and assist in implementing realistic proposals to improve the machinery and effectiveness of the entire criminal justice system, the climate in which it functions, and its interrelationship with the life of the nation as a whole. During 1973, the Office of Criminal Justice worked closely with other segments of the Department in preparing legislation to revise the Federal Criminal Code. This three-year project resulted in the introduction of S. 1400 (93rd Congress, 1st Session), the Administration’s 335-page reform proposal, by Senators Hruska and McClellan in March 1973. Since introduction of the bill, the Office has continued to work with these Congressional Committees and the Department’s Criminal Division to further refine the draft legislation. The Office also played a leading role in developing the Department’s position and stateinents on speedy trial and federal rules of evidence proposals currently being considered by the Congress. In conjunction with the National Association of Attorneys General, work continued on a reexamination of Federal habeas corpus jurisdiction as it relates to collateral attacks on judgments of conviction. The Office heads a Departmental Task Force to review current law relating to the exclusionary rule, determine the appropriate Administration position on this matter in light of the decision in Bivens v. Six Unkown Federal Narcotics Agents, 403 U.S. 388 (1971), and, if appropriate, prepare draft legislation to modify existing case law. An ongoing assignment for the Office is attention to the special Federal interest in the criminal justice system of the District of Columbia. The District of Columbia Court Reform and Criminal Procedure Act of 1970 (84 Stat. 473) was in large measure the result of basic proposals made by the Office. In its continuing interest in this matter, the Office was involved in two projects in 1973: first, a successful effort to conform the judicial features of the District Home Rule bill to the court system created by the 1970 Act; and second, a partially successful effort to insure adequate funding for the Criminal Justice Act (78 Stat. 552) in the nation’s capital. The Office has responsibility for major aspects of the Department’s liaison with outside groups and agencies. Reference has already been made to work with the National Association of Attorneys General. Other groups with which the Office maintains close relations include the American Bar Association, particularly its Section on Criminal Law and the National District Attorneys Association. In connection with the Office’s continuing interest in the criminal justice system of the District of Columbia, it is represented on the District of Columbia Criminal Justice Coordinating Board and 22 its Projects Proposal Review Subcommittee as well as the Metropolitan Washington Council of Governments. The Office participates in the formulation of major policy statements on criminal justice by the Attorney General and the Deputy Attorney General and other Departmental officials. Its staff members write law review articles and speak extensively to groups concerned with improving the criminal justice system. Each of these endeavors is designed to partially fulfill the mission of the Office to improve the administration of criminal justice in the United States. 23 Office of the Solicitor General The Solicitor General, with the assistance of a small staff of lawyers, is responsible for conducting and supervising all aspects of Government litigation in the Supreme Court of the United States. In addition, the Solicitor General passes upon every case in which a decision is rendered in any court against the United States to determine whether the Government will appeal. He also decides whether the United States should file a brief as amicus curiae in any appellate court. During the past term of the Supreme Court (June 29, 1972, to June 25, 1973), the Office handled 2,133 cases, [Table I] 46 percent of the 4,639 cases on the Court’s docket, an increase of 16 percent over the last term and 134 percent over the past ten terms. Of the cases acted upon at the term, there were 1,470 in which the Government appeared as the respondent, 58 petitions for writs of certiorari filed or supported by the Government and 17 cases in which it appeared as amicus curiae for the respondent. [Table H-A] During the same period, the Court acted upon 29 appeals filed or supported by the Government and 48 cases where the Office either represented the appellee or appeared as amicus supporting the appellee. [Table H-B] In addition, the Office participated in five cases on the Court’s original docket. [Table H-D] Of the 3,295 petitions for writs of certiorari docketed and acted upon, 6 percent were granted during the term. Of those filed or supported by the United States (excluding three protective petitions which were denied when the opposing petitions were likewise denied and one case dismissed under rule 60) 76 percent were granted. This reflects the careful screening of the Government cases by the Solicitor General and his staff before it is determined to file a petition. Of the appeals filed or supported by the Government, probable jurisdiction was noted by the Court in 15. [Tables II-A and H-B] The Government appeared in 85 (48 percent) of the 177 cases argued on the merits before the Supreme Court. Of the cases decided on the merits, with or without argument, the Government participated in 180 of 437 cases, 71 percent of which were decided in favor of the Government’s position. During the term, the Government participated in cases which were the subject of far-reaching decisions in two of the most tightly regulated industries—drug manufacturing and broadcasting. Two of the cases upheld the procedure of the Food and Drug Administration of ordering drugs that lack substantial evidence of effectiveness withdrawn from the market without prior hearing if the drug company has not tendered any evidence that, on its face, meets statutory standards detailed in the Administration’s regulations and three held that the generally-recognized-as-safe exemption from “new drug” requirements of the Drug Amendments of 1962 requires that exempt drugs be shown to be effective as well as safe. Under the “fairness doctrine” of the Federal Communications Act, four cases held that broadcasters are not required to accept paid editorial advertising. Other important cases involved congressional authority: to regulate obscenity, the validity of the Hatch Act’s prohibition against partisan political activity by Government employees under the First, Fifth, Ninth, and Tenth Amendments, de jure /de facto school segregation and unlawful school segregation, the reasonableness of placing on a State the burden of proving that its voting plan is nondiscriminatory, exemption from disclosure under the Freedom of Information Act of documents contained in the under-secretary committee’s report on the advisability of a scheduled underground nuclear test, refinement of the right of unions to discipline their members, the Fair Labor Standards Act, the right of the Attorney General to challenge the validity of patents involved in antitrust violations, the 24 validity under section 7 of the Clayton Act of mergers resulting in the elimination of potential competition, whether the Federal Power Act bars a Government antitrust suit against a federally regulated electric utility company for alleged monopolistic practices, a taxpayer’s assertion of her privilege against self-incrimina-tion against an Internal Revenue Service subpoena directing her accountant to turn over business records going back several years and tax cases involving deferred compensation, estate tax valuation, co-ownership of E Bonds, and taxation of Indians. In the criminal field this term’s primary cases involved the right of a grand jury, without a preliminary showing of the reasonableness required by the Fourth Amendment, to require witnesses to give voice and handwriting exemplars for identification purposes, the holding of a photographic showup in the absence of counsel for an in-custody accused, whether the predisposition of a Federal defendant, rather than the nature of the Government’s inducement, remains the key to an entrapment defense, and the validity of automobile and border searches. In addition to the cases before the Supreme Court, there were 709 cases in which the Solicitor General decided not to petition for certiorari and 14 cases in which a direct appeal was not taken and there were 1,237 cases in which the Solicitor General was called upon to decide whether to authorize taking a case to one of the courts of appeals—a total of 4,093 substantive matters handled by the Office during the year. 25 26 CM e o CD o o 03—< —<00 CD CD 1 o —4 000,00 | | CO S 03 CD E =j 4,639 891 3,748 4,639 3,748 84 807 cn oo 3,832 3,361 354 103 14 0 2,133 2,506 z: E o o CD CD CM 00 cd —< CM F"-00 —4 1 g 1 1 03 in O •”< —4 V”’ cD a-■ cn CD in CM CO in co •e c=>—4 Kt —4 OO cn in in co o co o CD CO CD —4 03 co 2 in 23 in co— oo •=r cm —4 OO E D co"O OO CM o —4 CO CO 1 CD 2t£”=,‘ 1 1 CO ^t CO E o —< OO o 00 —4 1 03 I 1 cn —4 —4 —4 i 75 cn CD o cn u. r* in CM 03—4 CM co CD in C/3 «3 o t>o 4= .5 E O CO CD pon a ipon b ;d but O CO i 4*3 ! 03 cn 1 co > dock et... d in b t n pa n pa »-«coeocnimn CM CM OU CD Tf- CO CM CM 270 14 12 2 256 37 4 215 52 15 9 6 37 6 1 30 1971 Number Percent ooirsN>- O CM UO 00 o«-< cd.—< r- r^fnom^rxCMLn CM CM CM OcM’“'C© CM CM r-S 168 74 10 43 9 45 1 33 158 77 25 93 3 25 130 79 59 26 13 57 11 55 2 67 46 23 2 7 9 75 35 21 CQ 1 UJ -J m Office of the Solicitor General, Classification of Cases Upon Which the Supreme Court Has Acted-Continued 1963 1964 1965 1966 1967 1968 1969 Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent Number Percent 122 100 98 100 145 100 146 100 161 100 165 100 193 100 13 11 11 11 17 12 11 8 15 9 8 5 24 12 9 8 9 9 17 12 9 6 11 7 5 3 20 10 43220—22423242 109 89 87 89 128 88 135 92 146 91 157 95 169 88 24 20 24 25 32 22 43 29 49 30 39 23 36 19 21111—32113252 83 68 62 63 95 66 89 61 96 60 115 70 128 67 92 75 67 68 101 70 114 78 106 66 112 68 130 67 4 31 2 18 4 24 4 37 3 20 2 25 8 33 1 H 2 22 4 24 4 44 3 27 2 40 8 40 3 75 0 — 0 — 0 — 0 — 0 — 0 — 88 81 65 75 97 76 110 81 103 71 110 70 122 72 20 83 16 67 28 87 36 84 33 67 30 77 27 75 50 0 — 1 100 0 — 0 = 2 67 1 20 67 81 49 79 68 72 74 83 70 73 78 68 94 73 30 25 31 32 44 30 32 22 55 34 53 32 63 33 9 69 9 82 13 76 7 63 12 80 6 75 16 67 8 89 7 78 13 76 5 56 8 73 3 60 12 60 1 25 2 100 0 — 2 100 4 100 3 100 4 100 21 19 22 25 31 24 25 19 43 29 47 30 47 28 4 17 8 33 4 13 7 16 16 33 9 23 9 25 1 50 1 100 0 - 3 100 1 100 1 33 4 80 16 19 13 21 27 28 15 17 26 27 37 32 34 27 B. Appeals Total number docketed and acted upon (a) Appeals filed or supported by Government (1) Government as appellant (2) Government as amicus, supporting appellant (b) Appeals not filed or supported by Government (1) Government as appellee (2) Government as amicus, supporting appellee (3) No participation by Government Total number dismissed, affirmed or reversed without argument (a) Anneals filed or suonorted bv Government (1) Government as appellant (2) Government as amicus, supporting appellant (b) Appeals not filed or supported by Government (1) Government as appellee (2) Government as amicus, supporting appellee (3) No participation by Government Total number jurisdiction noted or set for argument (a) Appeals filed or supported by Government (1) Government as appellant (2) Government as amicus, supporting appellant-... (b) Appeals not filed or supported by Government (1) Government as appellee (2) Government as amicus, supporting appellee (3) No participation by Government Note.—Percentages based on participation. 29 1972 umber Percent Sill gooc SS SSC r—4 SS1 1 ISS IS 1 1 r—4 •—4 ^goooggojoc 1 oc lllll 30000 sss 1 1 1 1971 umber Percent N SIH S°° = SS ISS1 1 ISS IS 1 ssossooossos°= 1 oc lllll □ oooo sss 1 1 1 ooo 1969 1970 lumber Percent Number Percent N SI 1 ISS IKS 1 1 ISSIK 1 ooooonoooooooonooooc siiissiksiiiss is I 2O°O2SO23KOOO2K°S'-C 1 50 1 20 lllll 30000 lllll OF-4Or-4O sss 221" sss 1 1 1 ooo 111 ooo ercent N §1 1 ss IKS 1 1 ISS IK 1 1 lllll Sg? 11 1 TABLE ll-C.D.E in of Cases Upon Which the Supreme Court Has A j 1966 1967 1968 ’ercent Number Percent Number Percent Number P gooc si 1 §11 s°° §11 ISSISS 1 1 ISSIS 1 3SSO^OOOSSOS° ISSISS 1 1 ISSIS 1 =KS°SKOOOKS°S° ISSIKS 1 1 ISS IK 1 □ o 11 =>o 1 1 OO 1 Or-4r- Q Z 2E a: o OVERALL CONVICTIONS, ORGANIZED CRIME CASES Secret Service, the Bureau of Customs, and the Postal Inspection Service, as well as State and local law enforcement agencies. These attorneys bring their experience in the field of organized crime to bear on the problem by advising investigators what evidence they need in order to present a case in court and, in addition, actively participate in the evidence-gathering process by conducting grand jury investigations and drawing the warrants necessary to legally conduct wiretaps, microphone surveillance, and searches and seizures directed at the syndicate hierarchy and their associates. Section attorneys pass on to local law enforcement officers information or evidence coming into their hands which points to commission of a local, as opposed to a Federal crime. While cases made as a result of this local liaison do not appear in the Section’s statistics, they nonetheless contribute greatly to the strides being made in jailing the leaders and members of syndicated organized crime. Since January 1969, there have been 32 top organized crime leaders under legal process. These are members of syndicate organizations in their area. Of these, 14 are in Federal or State jail or out on appeal, five recently completed terms and the others are under indictment or deportation process, except for six who have won acquittals or dismissals, and two who died, one gangland style. As of June 30, 1973, 140 attorneys were assigned to the Organized Crime and Racketeering Section compared to 131 in 1972 and 112 in 1971. Of the 140 attorneys, 107 were assigned to strike force locations. Initiated in 1966, the strike force concept quickly proved its effectiveness and was expanded. Uniting representatives of Federal investigative agencies under the legal guidance of attorneys in the Section and a U.S. attorney, the strike forces have led to better intelligence, interchange of information, expertise, and a larger number of prosecutions. The strike force is a team approach. It concentrates efforts of all concerned Federal agencies on a single visible organized crime syndicate. Investigative information and experience are pooled. Each agency representative participates in the planning. Action information is centralized by the strike forces in an efficient intelligence system, benefiting from a faster and more effective means of communication among the agencies. The demonstrated effectiveness of the strike forces has led to their conversion to permanent field offices located in Buffalo, Detroit, Brooklyn, Philadelphia, Newark, Chicago, Miami, Boston, New York City, Cleveland, Los Angeles, St. Louis, New Orleans, Pittsburgh, Baltimore, San Francisco, and Kansas City. In addition, a special strike force on infiltration of legitimate business is operating in Washington, D.C. The Special Operations Unit handles all matters in the Section which are not expressly assigned elsewhere. It provides legal and administrative support to the strike forces. It processes for the Attorney General’s approval requests for permission to apply for court orders authorizing the electronic interception of wire or oral communications under title III, Organized Crime Control Act of 1968. The Unit also formulates and coordinates policies regarding electronic surveillance 80 for approval of the Assistant Attorney General, Criminal Division, requests to apply for witness immunity under 18 U.S.C. 6002 and 6003, requests for certification of the need for a special grand jury under 18 U.S.C. 331 and requests for certification for disposition purposes under 18 U.S.C. 3505. It handles trial court actions in assigned criminal and civil proceedings, prepares memoranda concerning the desirability of appeal of cases and develops guidelines and drafts memoranda establishing general policy. It oversees annual registration pursuant to the Gambling Devices Act of 1962 and maintains liaison with congressional staffs, Federal and local agencies, as well as the public at large on organized crime matters. Finally, it performs miscellaneous administrative duties such as reviewing recommendations for dismissal of indictments. The Intelligence and Special Services Unit maintains an automated central data facility. The Unit, which currently references some 3/ million items of intelligence data supplied by Federal investigative agencies, is at present, the only place in the United States where the national scope of organized crime is indexed and correlated. Funding for the development of the data bank began in 1969. Unit personnel have devised a system of data storage and retrieval, the organized crime and racketeering intelligence language (OCRIL), which has proved workable for handling the vast amounts of raw intelligence received by the Section. The Unit is also responsible for the maintenance and development of a variety of computerized systems to aid the operation of the Section. Chief among the new programs is the biographic data set, under development throughout 1973, and now being implemented in cooperation with the strike forces. Under this system, concise racketeer profiles, designed to reference every investigative subject in the field offices, will be input in each subject, enabling the OCRIL system to yield significant replies to more complex intelligence queries. In addition, the Intelligence and Special Services Unit has assisted in the protection and relocation of several hundred witnesses in cases handled by the strike forces, in the U.S. attorneys’ offices and in matters under investigation by the Jackson committee. The Unit has also begun to assist local law enforcement agencies with protection of their witnesses. Constitutionality During 1973, the Supreme Court and the U.S. circuit courts of appeal have continued to look favorably upon the constitutionality of all the various titles of the Organized Grime Control Act of 1970. In addition, two titles of the act not heretofore invoked, Title IX, prohibiting operation of racket influenced and corrupt organizations and Title X, dealing with special offender sentencing, have been used for the first time. Title IX was used to indict and convict five officers of a Los Angeles labor union and two officers of an affiliated unloading corporation for conspiring to conduct the business of both the union and the corporation through a pattern of racketeering activity. The evidence showed that the union forced Los Angeles meatpackers to use the unloading corporation by threatening strikes and other work stoppages to the packers. The unloading corporation then charged exorbitant prices for their unloading services and kicked back $600 per week to the union officers. The two highest union officers and the officers of the unloading corporation were sentenced. Also during the year a Title IX charge was included in an indictment involving a significant New York organized crime figure with close ties to syndicates. The defendant, who initiated a large scale gambling junket to St. Maarten Isle Casino in the Caribbean while on parole after release for dealing in stolen securities, was charged with masterminding a scheme to gain possession of the casino by a pattern of racketeering. He was charged with loaning the then owner of the casino what eventually was to be the owner’s own money (in form of marker collections), and when the owner could not repay, foreclosing on the collateral, the casino. The true source of the funds was hidden as air transportation expenses by the gambling junket operations. Title X was invoked in the case involving several Kansas City syndicate members who attempted to expand their prostitution and gambling activities to the State of Oklahoma through bribery of State prosecutive officials. While notice of the invocation of the dangerous special offender provisions was served on the defendants prior to trial, final adjudication of its applicability has not yet been made by the court. Each of the syndicate members and the prosecutor convicted in the bribery case has been sentenced. The constitutionality of both provisions was upheld in the LLS. district court involved. The Supreme Court has denied certiorari in two cases in which the constitutionality of title HI of the Omnibus Crime Control and Safe Streets Act of 1968, authorizing court approved electronic surveillance, was challenged. Impact on Criminal Organizations During the year, Joseph Zito, a member of an organized crime syndicate in the northern section of Pennsylvania, gave information which led to the indictment of 16 members and associates on charges of extortion. The charge involved an attempt to drive competitors to their vending machine business out of the area. The indictment framed the charges against 81 CONVICTIONS OF HIGH-ECHELON ORGANIZED CRIME SYNDICATE MEMBERS the leaders in terms of a violation of title IX of the Organized Crime Control Act of 1970, thus making forfeiture of the vending machine business and its assets to the Government possible in the event of conviction. Zito’s testimony also led to two other indictments for subornation of perjury and obstruction of justice arising out of an attempt to fabricate a defense to a previously pending extortion charge. Finally, Zito’s testimony led to the indictment of three syndicate members for extortion in an attempt to shake down the owner of a discount store for $100,000. Other major crime figures were prosecuted during the year: — Frank Valenti was convicted of extortion and interstate shipment of firearms and is under indictment for obstructing justice; — Aniello Dellacroce was convicted of income tax evasion; — Joseph Gambino was convicted of making false statements to the Federal Bureau of Investigation concerning his citizenship status; — Frank Tieri was indicted for loansharking along with eight others; — Ernest La Ponzina and Joseph Gentile along with eight others were indicted for their attempt to bribe Internal Revenue Service employees to fix tax evasion investigations; —Anthony Giardano was sentenced to four years and fined $10,000 for his conviction several months earlier for illegally concealing ownership of a Las Vegas casino. Anthony J. Zerilli and Michael S. Polizzo were sentenced to four years and fined $40,000 in the same case; — Eugene (Checkers) Smalldone was convicted on gambling charges; —Joseph Anselmo was indicted with eight of his gambling associates for carrying on an illegal gambling business; — Moris Lansburgh and Samuel Cohen pled guilty to income tax and interstate gambling charges arising out of a multimillion-dollar skimming operation carried on during their ownership of a Las Vegas casino; — Meyer Lansky was found guilty of contempt arising out of his refusal to appear before a Miami grand jury investigating the Las Vegas skimming; — Arthur Tortorello and 15 others were indicted for stock manipulation; — Etore Coco was found guilty of extortion; — Frank Brancato and his son, grandson, two nephews, and seven others were indicted for illegal gambling operations; — James Duardi and Nathaniel Brancato were convicted along with Lewis Frank Grayson, an Oklahoma district attorney, for bribery; — Six individuals were indicted after a search uncovered heroin with a street value of $250,000, an additional $100,000 in cash and weapons climaxing a six-month investigation into an international heroin smuggling ring with its base in Beirut, Lebanon; — Anthony Grosso was convicted and sentenced to serve 10 years and pay $25,000 in fines. — Vincent Papa pled guilty to narcotic sales and was sentenced to five years; — Norman Lue and Chun Hen Ho were arrested for heroin trafficking. The source of the heroin imported had been Hong Kong; — 46 Chicago police officials have been indicted for extortion and 10 were convicted in their shakedowns of tavern owners in the city. Some nine other officers have been suspended from the force for taking the fifth amendment before the investigating grand jury; — Matthew Musacchio, former Missouri Department of Revenue sales tax auditor, was convicted of counterfeiting along with Kansas City organized crime members; — Congressman Cornelius Gallagher of New Jersey was convicted of income tax evasion; — Edward Barrett, former Illinois State auditor, treasurer, and secretary of state and present Cook County clerk, was convicted of bribery in the purchase of voting machines; — former Los Angeles building safety commissioner, Ray Gene Lewis, was convicted of lying to a grand jury about his receipt of a payoff on a Teamster pension fund loan; — John White and four other officers of Local 57 of the Operating Engineers Union were indicted in Providence for taking payments from employers of their members and related charges. 82 The kickback scheme involved putting the union officials on the payroll but not requiring them to be present or to work; —Alex De Laurentis and four other officials of Local 1115 of the Nursing Home, Hospital, and Senior Citizens Hotel Employees Union were indicted for Civil Rights Act violations after they kept a nursing home’s employees captive in the home for four days to try and force them to accept the union as their bargaining agent; —Mike Grancich and eight others, six of whom were officers of Local 626 of the Teamsters, were convicted of extortion in a shakedown of most of the major meatpackers in the city of Los Angeles. —four officers of Teamster Local 600 were convicted in St. Louis of embezzling over $100,000 from the union treasury; and —Johnnie Sink, president of Local 69 of the Building Services Employees Union, was indicted for allowing employers to pay for his vacations to the Bahamas and Florida. As a result, the local was placed in trusteeship by the parent union and Sink was removed from office. From the initial use in mid-February 1969 through June 30, 1973, a total of 953 applications had been made to the courts for title HI interception orders. This figure includes 174 extensions. Court orders were obtained in 952. The orders were executed in all but six of these. In those six, the illegal activity had ceased before the orders could be executed. A total of 236 Court-authorized electronic surveillances were executed in 1973. Wiretaps are considered to be among the greatest enforcement weapons against organized crime. Although the use of wiretaps increased after court-approved intercepts were authorized, the length of the intercepts steadily decreased, with rigid procedures adhered to in preventing abuse to private rights. Over 3,696 individuals were indicted on 429 indictments and 1,531 convictions have been made as a result of these interceptions as of April 1973. FEDERAL-STATE COOPERATION AGAINST RACKETEERS Cooperative efforts resulted in the following actions: —Louis Malpeso and two others were arrested by New York authorities for the theft of $300,000 in bonds from a New York brokerage house. The arrests resulted from information supplied through the Newark strike force; —Daniel Alonzo was convicted and sentenced to 10 years in jail for attempting to bribe an Oberlin, Ohio, police officer who had been cohered during the attempt by FBI agents; —information supplied to the Massachusetts Department of Correctional Institutions by the Boston strike force resulted in the transfer of 10 major organized crime figures from Walpole Prison to other institutions thus breaking up the group’s attempt at control of the prisoners believed to have resulted in 10 inmate deaths in the year preceding the transfer; — FBI agents, testifying as to their surveillance, aided in convicting Vincent Aloi for perjury in a State court; — St. Louis heroin dealer Ulysses Harris was convicted of firearms violations in a State court on evidence provided by the St. Louis strike force; — close cooperation between the Los Angeles strike force and the Nevada Gambling Control Board in identifying problem areas has resulted in new accounting regulations, authored and proposed by the board which should make skimming from the State’s casinos more difficult; and —Jerome Winsberg, Louisiana State Criminal District Court judge, was indicted for bribery as a result of tape recordings obtained by the New Orleans strike force and turned over to State authorities. General Crimes Section The General Crimes Section supervises the enforcement of statutes relating to protection of Government integrity (bribery, graft, conflict of interest), Government operations and property (attacks on Federal officers, including the President and Members of Congress, and foreign officials and official guests of the United States, theft of Government property, counterfeiting, and postal depredations), channels of interstate commerce (aircraft hijacking, cargo theft, transportation of stolen property, and forged or counterfeit securities), the public (crimes on Federal lands and the high seas, riot, explosive and weapons control offenses, bank robbery, kidnapping, extortion, and interception of communications) and legal procedures (obstruction of justice, false testimony, prison offenses). All matters involving the Fugitive Felon Act, Juvenile Delinquency Act, Youth Corrections Act, mental competency of defendants, probation, parole, and collateral attack on conviction also come under the supervision of the Section. In addition, two units within the Section focus respectively on the special threats of organized terrorism and the traffic in stolen and counterfeit securities. The duties of the Section include coordinating prosecutions, on both policy and operational levels, with other departments and agencies, fostering anticrime measures through coordination with Federal, State, and private agencies and institutions and reviewing and recommending proposed legislation. When possible, either on request or as otherwise deemed appropriate, and most frequently in terrorist or illegal securities matters, attorneys of the Section directly participate in field operations, presenting cases to Federal grand 83 juries, arguing preliminary motions, appearing at trial in selected prosecutions, and briefing and arguing appeals. To preserve integrity in Federal operations, each allegation of corruption involving a public official receives painstaking consideration after prompt and extensive investigation. Such action resulted in a 6-year prison term for bribery on the part of former U.S. Senator Daniel Brewster. A broad-ranging investigation was launched into allegations of corruption in customs and border patrol activities along the Mexican border, producing the conviction of three Immigration and Naturalization Service officers and two customs officers on counts of bribery and alien smuggling and the indictment of three other officials for fraudulent activities in office. The Section continues to press probes of fraud and corruption in Federal Housing Administration programs in several large cities and of some 250 persons indicted to date for their involvement in such activity, 25 were convicted this year. In the protection of Government operation, 1973 witnessed the first prosecution under the congressional assassination statute. The act for this protection of foreign officials was helpful in planning arrangements and handling the Brezhnev visit and in Section participation in activities of the working group of the Cabinet Committee to Combat Terrorism. Following preparation and distribution of the analysis of the act and guidelines for enforcement, the Section has done extensive coordination with the State Department and investigative agencies on matters arising thereunder. The first prosecution was the indictment of five Iranians for assault on the Iranian consul and deputy consul general in San Francisco. The act also provided the basis for extensive investigation and assistance in successful prosecution by the State of California concerning the murder of two Turkish diplomats. Significant theft cases included indictment of Army S. Sgt. Bobby J. Sartian, for theft of $365,000 in cash from the Army Finance Office, Fort Pope, La., six indictments of eight defendants for wrongful acquisition and resale of some $6 million worth of excess property by salvage dealers and Smithsonian Institution employees at Mount Hopkins Observatory, Ariz., and conviction of 18 of 23 indicted for a $500,000 depredation at Tinker Air Force Base, Okla. In addition to substantial Section contribution to the foregoing, much effort was expended in supervising and coordinating prosecutions for theft and destruction of records and property which occurred during the takeover by militants of the Bureau of Indian Affairs building. Indictments were returned in four districts. In June 1973, the Section coordinated and guided the launching of a grand jury investigation in Kentucky of the “Canadian Gang,” a group of some 25 to 100 persons whose mail theft and check forgery depredations amounted to $10,000 to $20,000 per week during the past year. In contrast to 31 prosecutions and 20 convictions over the 15 years preceding enactment of the 1968 interception of communications legislation, under the new law, of 79 defendants, 50 were convicted, nine await trial, and one case was dismissed in favor of a successful state prosecution. Aircraft hijacking has been of great public concern. Section initiatives to combat this threat to public safety have proceeded on a broad front, involving concerned Federal and local agencies and representatives of airline and airport operators. U.S. attorneys hold quarterly meetings to maintain and enhance security measures and obtain vigorous prosecution of violators. The Section participates directly in activities of the Presidential Interagency Committee on Civil Aviation Security and furnished testimony before the Congress in support of legislation to implement the Convention for the Suppression of Unlawful Acts Against the Security of Civil Aviation, and other aviation security legislation. Drawing upon its extensive research into the problem, the Section established a program for pressing favorable development of the law on passenger and baggage inspection. Attempts dropped from 33 in 1972 to 11 in 1973. More important, there has been no attemped or successful hijacking of a commercial carrier aircarft in the United States since adoption in January 1973, of the current preboard screening program. This has been the longest period free of skyjacking since the rash of hijackings began in late 1967. This Section also participated in drafting the Cuban agreement, which, on its face, appears to close the door to a common destination of earlier hijackers. Law enforcement as to cargo thefts is another area in which Section initiatives have brought U.S. attorneys and local prosecutors into close cooperation with the transportation industry to improve security and to expose and prosecute violators. To date 80 percent of the districts have working agreements on the subject. In addition, U.S. attorneys in 29 States have established permanent State level law enforceemnt committees to insure coordinated State and Federal action against all crimes of mutual concern. Formation of similar working groups in major cities, which will include representatives of the business sectors victimized by crime, is underway. In support of this operation, the Section is working with the Department of Transportation in setting up courses in cargo security for police officers in the major cities and in conducting security surveys of affected business establishments. Philadelphia was selected for a prototype program. The Senate Select Committee on Small Business has provided support for these programs and, in turn, the 84 Section works closely with the committee in exploring the scope of and remedies for the problem. Considerable effort went into handling multistate auto theft ring cases which increased from 120 in 1971 to 221 in 1973. To facilitate local prosecution of one-time violators, the Section represents the Department on the auto theft committee of the International Association of Police Chiefs. Expenses of out-of-State witnesses and extradition are the two main obstacles. Return at Federal expense of 77 percent of such offenders who are under 21 is possible under 18 U.S.C. 5001. The Section is now doing the necessary background work and drafting possible legislation to facilitate local disposition of offenders in auto theft and other offenses in which Federal disposition, though technically possible, is unwarranted. The Section has worked with the Department of Transportation in improving State car title and registration systems to frustrate false documentation activities of car theft rings. In the area of protection of the public, militant occupation of Wounded Knee, S. Dak., from February 27, 1973, to the peaceful evacuation on May 8, 1973, placed extraordinary demands on Section attorneys who provided onsite advice to the U.S. attorney and senior officials of the Department. Numerous questions on the laws applicable to Indian lands were researched and answered. In addition to authorizing arrests and drafting indictments, Section attorneys assisted extensively in grand jury presentations. By the close of the year, 112 persons were indicted and 100 additional matters were pending before the grand jury. Bomb control laws cut across the interests of a number of Federal agencies. Following a year and a half of negotiations, Section attorneys achieved mutual agreement of all concerned on guidelines for investigation of such violations on March 1, 1973. Of the prosecutions stemming from the almost 5,000 bombing incidents since enactment of the Federal law in 1970, most were handled by State action. Federal actions to date, total 145 defendants indicted, of which 72 have been convicted. Bank robberies, up 51 percent since 1967, appear to be leveling off with 2,586 in 1971 and 2,618 in 1972. The average dollar loss decreased from $4,463 in 1971 to $3,529 in 1972. Working through the various Federal regulatory agencies, the Section has stimulated a number of improvements in bank security measures which, in part, may account for the recent low percentage increase in violations. Firearms control continues to be an important aspect of defeating criminal activity. A Section attorney successfully argued an appeal in the eighth circuit challenging the constitutionality of the Federal control of wholly intrastate transactions. The defendant headed a burglary ring specializing in the theft of firearms for resale to criminal figures. Following an expression of Section concern over the adequacy of firearms safeguards in defense installations and at the requests of the Department of Defense, the Section arranged through the U.S. Marshals Service for alerting local law enforcement agencies in selected high-risk States to the need for special attention to armories in their jurisdictions. The apparent enhancement of armory security obtained resulted in extension of the program to a number of other States and it may become a nationwide operation. Indictment of five soldiers from Fort Hood for theft of 27 rifles, three pistols, and a .50 caliber machinegun illustrates the danger in any lapse of strict control over military weapons stocks. In the area of legal procedures, pressures for corrections reform have improved prisoner access to legal advice, resulting in more sophisticated challenges and marked by a 65-percent increase in prisoners’ rights litigation. Escapee cases rose from 804 to 849. The 1972 escape of Mace Brown and others from the District of Columbia jail resulted in indictment of 17 defendants on 49 counts with 13 convictions to date. The effectiveness of 18 U.S.C. 1623 in prosecutions for false testimony, is reflected in the 130-percent increase to 146 cases filed in 1973. Perjury cases also almost doubled, reaching 87. Formerly a section of Internal Security Division, the Special Litigation Unit directly handles the prosecution of crimes by persons involved in the conduct of organized terrorism. In 1973, the Unit obtained 57 new indictments and had 69 cases and 19 contempt proceedings pending. Unit attorneys are currently involved in prosecutions for the attempted bombing of two Israeli banks and the El Al Airlines facility in New York, for alleged illegal shipment of arms to Northern Ireland and for the furnishing of arms in San Francisco to Black Liberation Army members in New York. Several of the Weatherman faction of the Students for a Democratic Society were convicted of bombing banks and residences in Missouri. A number of others are indicted in various districts for illegal schemes used to raise money to support underground activity. In operation for only one year a unit providing special attention to the traffic in illicit securities participated in the development of ten cases with about 40 defendants, involving over $9 million worth of securities. The latest estimate given of the float in stolen and counterfeit securities was $50 billion. Successful debriefing of one witness disclosed a sophisticated multi-million-dollar fraud scheme based in Utah but reaching some ten other districts, using corporate shells to deceive the public. With the help of the Section, the list of stolen and missing Government obligations was incorporated into the National Crime Information Center computer. 85 Appellate Section During 1973, the Section, with an average of 25 attorneys, prepared 1,076 responses to petitions for certiorari which were filed in the Supreme Court. (These figures do not include cases handled by the Internal Security Division prior to its integration into the Criminal Division. That Division handled 53 petitions in the Supreme Court and 36 cases in the court of appeals.) This is an 11-percent increase over 1972, when the comparable figure was 954 and represents an increase in workload over the last six years. (In 1967, the comparable figure was 494.) The Section also prepared 18 briefs on merits in the Supreme Court and 15 Government petitions for certiorari and direct appeals to the Supreme Court. The Section alone generated responses to over one-third of all in forma pauperis cases filed in the Supreme Court (806 were filed after preparation in the Section, while the Supreme Court statistics indicates 2,000 in forma pauperis cases were docketed last term). The Section prepared well over half of all Government briefs from all Divisions and agencies. (This Section supplied over 1,000 of the approximately 1,669 cases closed by the Solicitor General’s office last Term.) The Section briefed and argued 127 cases handled by the strike forces of the Organized Crime Section, compared to 71 such cases the previous year. The Section provided aid in preparing pretrial suppression memorandums in the murder cases in the Virgin Islands and commented on new rules, and coordinated, briefed, and argued the many attacks on the authorizations for court-approved wiretaps under 18 U.S.C. 2516. This latter litigation alone generated 45 cases which were directly handled by the Section and many cases where the Section coordinated the proposed arguments and rendered major assistance. There were 719 memoranda to the Solicitor General, many requiring extensive analysis, recommending for or against further review of Division cases. The Court of Appeals Unit reviewed 666 appellants’ briefs in 1973 compared to 294 in 1972. The Unit also reviewed 699 Government briefs in 1973 compared to 348 in 1972. It was instrumental in briefing important en banc cases which resulted in affirming the Government’s position. The Supreme Court decided a series of significant obscenity cases. In two in which this Section participated, the Court held that the importation and the interstate transportation of obscene material for personal use can be prohibited. The Supreme Court also decided a series of cases affecting narcotic convictions. In Almedia-Sanchez v. United States (7) the Court held that a warrantless search by Immigration and Naturalization officials, at a roving checkpoint violates the fourth amendment. Brown v. United States (2) held that defendants who Comparative Workload Summary, Appellate Section Supreme Court only Fiscal years 1967 1968 1969 1970 1971 1972 1973 Responses to petitions for certiorari... 478 539 632 712 777 954 1,076 Briefs on the merits.. 21 14 22 20 28 21 18 Petitions and direct appeals 5 2 9 24 24 16 15 Memoranda to the Solicitor General 153 189 234 566 646 705 719 had transported stolen goods in interstate commerce and had left the goods in the possession of a coconspirator did not have standing to suppress evidence under a claim of an illegal search and seizure of the evidence. In United States v. Russell (3) the Court also upheld the validity of the entrapment rule where a Government agent had supplied an essential element for the manufacture of a drug. The Court reiterated that of the rules that constitute entrapment, the element of predisposition is crucial, concluding that only when the Government’s deception actually implants the criminal design in the mind of the defendant does the defense of entrapment come into play. In Bradley v. United States (4) the Supreme Court held that an offense under the old Narcotic Act was punishable under the provisions of the act by virtue of the saving clause. Thus, probation could not be imposed under the prior statute. However, the Court noted that it was not deciding the question whether the Board of Parole could grant parole after service of one-third of the sentence which was not available under the old Act. During the past term, the Supreme Court also clarified some pretrial procedures. In two' cases involving the use of exemplars and the use of handwriting exemplars before grand juries, the Supreme Court rejected claims that subpenas for exemplars violated the fourth and fifth amendments. On the fourth amendment issue, the Court held that a grand jury subpoena was not a seizure, noting that the fourth amendment was not violated by compelling production of physical characteristics, which, like handwriting and speech, are constantly exposed to the public. In Ash v. United States (5) the Supreme Court refused to expand the doctrine which requires an attorney to be present at the lineup where photographs are shown to prospective witnesses. The Court held that there is no constitutional right to the presence of counsel at such a showing of photographs. In a post-conviction collateral attack that there was unconstitutional discrimination in the composition of a grand jury, the Supreme Court rejected the claim in the absence of a showing of good cause for failure to raise the claim pretrial. Finally, the Supreme Court settled the law in some traditional criminal law areas. In Strunk v. United States (6) the Court reaffirmed the general rule that the only possible remedy for denial of a speedy trial was dismissal of the indictment. The Court reversed 86 the decision of the court of appeals in crediting the defendant with a ten-month delay as a remedy for denial of speedy trial. The Court denied the retroactive application on the rule in O’Callahan v. Parker (7) which held that a serviceman, charged in a non-service-connected crime, is entitled to indictment by a grand jury and trial by jury in a civilian court. And in Barnes v. United States (8) the Supreme Court upheld the validity of a charge to the jury which noted that possession of recently stolen goods, if not satisfactorily explained, was a circumstance from which the jury may infer that the possessor knew that the property was stolen. The Court held that the inference was rational and comported with due process, even if one applied a “beyond reasonable doubt” standard. Fraud Section The Fraud Section supervises the enforcement of a variety of fraud-related statutes which include usp of the mails or interstate wire facilities in fraudulent schemes, misapplications, and embezzlements in Federal and federally insured financial institutions, fraud in bankruptcy proceedings, violations of the securities laws, frauds perpetrated against the Federal Government, and election matters, including the recently enacted Federal Election Campaign Act of 1971, which, among other things, established reporting and disclosure requirements with respect to the receipt and expenditure of Federal election campaign funds. Significant prosecutions were initiated under the new Federal Elections Campaign Act of 1971. The Finance Committee To Re-Elect the President was charged on two occasions with violations of the reporting provisions of the new law and the maximum fine was imposed in each instance. Four congressional candidates were charged with failure to file reports of contributions and expenditures in connection with their campaigns. Three of these cases resulted in convictions and the other is pending. Another case charged an individual with making contributions in the name of another in violation of the new law. The maximum fine was imposed. Other election campaign-related indictments included an Illinois case involving illegal corporate contributions and the illegal dissemination of scurrilous campaign literature concerning two Presidential candidates. The Section, working closely with the Department of Housing and Urban Development, U.S. attorneys, and interested investigative agencies, has continued its program to combat fradulent abuses in inner city housing projects financed with Federal funds. As of June 30, 1973, 15 cities have been designated “target cities” under this program and since its establishment 116 indictments involving 250 defendants have been returned, resulting in 53 convictions this year. Significant results have come from the Section’s continuing emphasis on prosecution of offshore and other foreign-based fraudulent enterprises doing business in the United States. Of 23 persons indicted in connection with the fradulent financial operations of the Bahamian chartered Trans-Continental Casualty Insurance Co., 18 have been convicted as a direct result of this investigation, two other prominent advance fee and international fraud figures have pleaded guilty to fraud charges. Indictments were also returned against 20 individuals involved in the sale of mortgage loan commitments drawn against Canadian and Panamanian companies with no assets. Other major investigations in this area are underway. Following is a selection of significant cases: —Indictment of Glenn W. Turner, Attorney F. Lee Bailey, and eight others for violation of the mail fraud statute in the sale of distributorships for cosmetics and motivational self-improvement courses; —indictment of Leo Winters, treasurer of the State of Oklahoma, and three others on charges that Winters misused his office to obtain and extort benefits from bankers in Oklahoma for placing State funds on deposit in certain banks; —indictment of Jones Quincy Adams and Tom Max Thomas in Texas for securities fraud in the sale of stock of Master Control, Inc.; — indictment charging 18 individuals with securities fraud in connection with the distribution of the unregistered stock of United Australian Oil Corp.; — Conviction in Texas of Charles Graham and Edward Ashdown of misrepresentation in connection with the sale of stock of Mountain States Development; — indictment in Arizona against Lake Havasu Estates, five officers and four salesmen for violations of the mail fraud statute and the Interstate Land Sales Full Disclosure Act in the sale of lots; — conviction of Richard Mackey and Charles Brewer on charges of mail and securities fraud arising out of the acquisition by defendants, of Federated Security Insurance Co. in Salt Lake City, Utah, using the company’s own securities portfolio to pay for the loan used in the purchase; - —indictment of Robert L. Taylor and three others in Maryland for mail and securities fraud in connection with the manipulation of the over-the-counter market price of the stock of American Continental Industries, Inc.; — conviction of C. Donald Robertson, former attorney general of West Virginia, his brother Dana Robertson, and James F. Haught, former director of the Federal Housing Administration in West Virginia, for bribery and conspiracy to accept bribes to influence official action; 87 —indictment of John Robert Hay and three others for conspiracy to defraud the Agency for International Development in connection with an audit of contractor claims on a Saigon, Vietnam, water system project; —indictment of Robert A. Mann, then Chairman of the Texas Finance Commission and the Bank of the Southwest, Houston, Tex., for conspiracy to misapply $4 million in funds of the First National Bank of Waco, Tex.; —conviction in Indiana of Roman Greene and Jerry R. McDonald, managerial personnel of Twigg Industries, a subcontractor of General Dynamics Corp, on the F-lll Air Force procurement, for conspiracy to defraud the United States in supplying defective critical parts under the prime contract; —conviction in Texas of David Band, David Band, Inc., and Christopher Bell for the solicitation and acceptance of kickbacks on Government procurement; —indictment of Daniel D. Moore, former Deputy Comptroller of the Currency, for misapplication of $8,100,000 when president of a Wakefield, Mass., bank; —indictment in Chicago of 18 Republican and 16 Democratic election judges and three Democratic precinct captains for election frauds; —conviction of George Alva Haag, former administrative assistant to a member of Congress for payroll kickbacks; —conviction and sentencing of Joseph P. Pfingst, New York Superior Court judge, for bankruptcy fraud; and —indictment of the board chairman of Four Seasons Nursing Centers of America, Inc., its vice president, two officers of a brokerage firm, and two partners of Arthur Andersen & Co., and others, on conspiracy and securities fraud. Management and Labor Section Federal criminal statutes relating to employee-employer relationships and the internal operations of labor unions are supervised by the Management and Labor Section. Primary statutes within the Section’s jurisdiction are those prohibiting interference with interstate commerce by extortion, embezzlement of a union’s assets by an officer or employee of the union, improper payments by employers to union officials, embezzlement of the assets by an officer of employee funds, and the payment of kickbacks to influence the acts of trustees or agents of pension and welfare funds. The Section also is responsible for supervision of the explosive statutes whenever explosives are used in connection with a labor dispute, for violations of the re porting requirements of the Welfare and Pension Plans Disclosure Act, and violations of the Labor-Management Reporting and Disclosure Act. During 1973, the Section devoted a considerable portion of its manpower to the continuing investigation into the operations of the United Mine Workers of America (UMWA). These efforts resulted in the District of Columbia Circuit Court of Appeals affirming the conviction of former UMWA President W. A. Boyle, on all 13 counts of an indictment charging him with making illegal political contributions and the conversion of union funds. The Section was coordinator of Federal participation in the investigation of the murder of Joseph Yablonski, resulting in the conviction of William Prater, field representative of District 19 of the UMWA, and Albert Pass, secretary-treasurer of District 19 and a member of the union’s international executive board in the Pennsylvania State courts for conspiring to commit Yablonski’s murder. In addition, District 19 Field Representatives Chester Philpot, Ernest Stultz, George Hall, and Noah Doss all pleaded guilty to charges of embezzlement of UMWA funds. The Supreme Court’s interpretation in Emmons v. United States (9) of the Federal extortion statute, 18 U.S.C. 1951 (Hobbs Act), caused revision of the Section’s interpretation of the statute. The Emmons case involved a situation where a labor union, while on strike seeking higher wages and other benefits, enforced its demands by the use of violence and through destruction of the employer’s property. The officers of the unions involved were indicted for interfering with commerce by extortion and the district court dismissed the indictment. In affirming the district court’s decision, the Supreme Court held that by defining extortion in the Hobbs Act as the “. . . wrongful use of actual or threatened force, violence or fear,” Congress meant to proscribe as extortion a coercive appropriation of another’s property only where the “obtaining of the property would itself be ‘wrongful’ because the alleged extorionist has no lawful claim to that property.” The Court then held that labor unions can rightfully use concerted activity in seeking higher wages and the means with which these legitimate goals are pursued, that is through the use of fear and violence directed at an employer or his property, do not make the activities a violation of the Federal extortion statute. The Section has submitted a proposal to amend the statute to cover those situations in which union officials devise a scheme to use force or violence to compel an employer to comply with their bargaining demands. Tn spite of this decision the number of Hobbs Act indictments increased from 23 during 1972 to 102 during this year. This increase does not necessarily reflect a marked increase in criminal activity in the labor field, but can be attributed to increased use of the statute in bank, airline, and business extortions 88 and a substantial number of organized crime indictments. The Section devoted a significant amount of manpower to the investigation of welfare and pension plans. A program was initiated with the Internal Revenue Service auditing certain pension and welfare funds to insure they are complying with the Service’s requirements for tax-exempt status and making available to this Section all indications of criminal activities uncovered by its audits. In addition to the Internal Revenue Service project, the Section’s investigations in the labor and welfare-pension plan areas resulted in the following indictments : —The business manager and two business representatives of Local 478, International Union of Operating Engineers, Hamden, Conn., for embezzlement of union funds and false entries in union records; —80 defendants named in 45 indictments, including a former regional representative of the American Guild of Variety Artists in Detroit, for embezzlement of union funds; and —19 persons named in nine indictments involving section 302 violations of the Taft-Hartley Act. In addition, the Section was instrumental in obtaining the convictions of John Osorio, former president of National Bankers Life Insurance Co., and a pension plan trustee who was sentenced to three years which was affirmed by the Fifth Circuit Court of Appeals and, an official sentenced to four years for mail fraud and ordered to make restitution of $21,000. Other convictions include that of three members, including two business agents of Plumbers and Pipefitters locals, for false entries and obstruction of justice, 48 defendants including four officers of the executive board of Local 100, International Brotherhood of Teamsters, for embezzlement and seven persons for section 302 Taft-Hartley Act violations. The Section also defeated the efforts of James R. Hoffa, former Teamsters president, to overturn his 1964 conviction for jury tampering. Legislation and Special Projects Section Generally, the matters given attention by this Section, have been legislation of interest to the Division, materials prepared for the assistance of Federal prosecutors, preparation of responses to letters from citizens, and projects designed to enhance the ability of the Division to carry out its function of effectively prosecuting Federal crimes. Pursuant to the President’s order to the Department of Justice, the Criminal Code Revision Unit has completed drafting the Criminal Code Reform Act of 1973, and this work has been submitted to both Houses of Congress where it appears as S. 1400 in the Senate and H.R. 6046 in the House of Representatives. In conjunction with work on the revision itself, members of the Unit have met regularly with bar association committees and representatives of state prosecution agencies to discuss various provisions of the bill. Additionally, members of the Unit have met with members of the staffs of the Senate and House Judiciary committees to discuss the bill and have prepared testimony for the Criminal Laws and Procedures Subcommittee of the Senate Judiciary Committee in connection with its hearings on criminal law reform. In addition to preparing comments on numerous bills originating in the Congress, elsewhere in the Department of Justice and in other departments and agencies, the Section generated many legislative proposals. Most important among the bills prepared were those to set forth procedures for imposition of the death penalty in a manner designed to receive the support of a majority of the Justices of the Supreme Court, to implement the provisions of the Montreal Convention on Civil Aviation (aircraft hijacking) and to amend the Comprehensive Drug Abuse Prevention and Control Act to provide more severe penalties for certain categories of narcotics offenders and reduce the incidence of bail in such cases. The Section conducted criminal trial training programs during the year for new Department attorneys who have the responsibility for conducting trials. This program benefits attorneys from the Criminal, Tax, Civil Rights, Lands and Antitrust Divisions. In response to the problems posed by the outbreak of aircraft hijackings, the Section prepared a set of guidelines for use by U.S. marshals involved in air travel security. Furthermore, background information was assembled for use by the Assistant Attorney General in testifying before the House Interstate and Foreign Commerce Committee on the subject of aircraft hijacking. A fully revised manual on the “Law of Search and Seizures” was completed and forwarded to all U.S. attorneys. Memorandums were prepared on such subjects as revisions of portions of the “Federal Rules of Criminal Procedure,” the investigative and evidentiary use of polygraphs, various local rules of court among the Federal judicial districts, the authority of magistrates to reduce bail in removal cases, and policy on expunging records of conviction after Presidential pardon. The Section completed revision of three of the four volumes of the “Guide to Drafting Indictments” which was printed and disseminated to U.S. attorneys. Work continues on the fourth volume which deals with offenses contained in titles of the United States Code outside of title 18. During the year, the Immunity Unit processed 1,223 requests involving 3,252 witnesses. The Correspond 89 ence Unit received 3,315 letters from the public, of which 1,065 were referred from the White House, 196 from Members of Congress and 2,054 were addressed directly to the Department. Another unit of the Section responded to 406 requests for assistance in case research and a third unit responded to 869 requests for assistance in research legislative histories. Government Regulations Section The Government Regulations Section supervises litigation to enforce criminal and civil sanctions of a wide variety of statutes providing for the regulation of private activity by Federal departments and agencies. These include statutes for protection of consumers; conservation of wildlife; regulation of all modes of transportation; regulation of communications; and protection of miners, longshoremen, and other workers. The Section also supervises international extradition proceedings; legal matters arising under the immigration, citizenship, and naturalization laws: criminal and civil litigation under the obscenity laws; criminal and civil sanctions of the customs laws; and the enforcement of miscellaneous criminal statutes, such as the White Slave Traffic Act, the copyright laws, the Jenkins Tobacco Tax Act, the Export Control Act, and the Gold Reserve Act. The Section received 221 petitions for review of deportation orders in the courts of appeal and 67 appeals from district court actions, as well as 209 declaratory judgment actions and 69 other actions in the district courts. The Immigration and Naturalization Service referred directly to U.S. attorneys potential criminal cases involving 41,737 violations, resulting in the prosecution of 16,657 violations. Included were cases of illegal entry, document fraud, false representation as to U.S. citizenship, and reentry without permission after deportation. Two significant deportation battles are those involving Carlos Marcello and Russell Bufalino. The District Court for the District of Columbia upheld a Government request that Marcello execute an Italian passport application. The decision is pending appeal. The Supreme Court denied Bufalino a review of a third circuit decision affirming his deportation order and his deportation awaits Italy’s acceptance. The Section has continued to work closely with the Department of State on a long-range program to expand and modernize extradition treaties. Within the past year, negotiations of four new treaties were completed, additional discussions were held with five countries and steps were taken to schedule negotiations for new treaties with four other countries. The Section has continued to experience a heavy volume of extradition work. Approximately 225 extradition matters were handled, 14 fugitives were extradited to this country, the return of 18 other fugitives 90 was accomplished by other means, such as deportation or voluntary return, extradition requests for eight fugitives were denied by foreign governments, four fugitives were being prosecuted by foreign governments in lieu of extradition, and 38 extradition requests were pending with foreign governments at the end of the year. Some 50 requests for extradition from this country were handled by the Section, resulting in the surrender to foreign governments of eight fugitives. The primary thrust of the Section’s obscenity program continues to be directed at major commercial distributors of pornography. The number of indictments of such distributors increased from 8 on January 1, 1969, to 65 on July 1, 1973. As of the same date, there were a total of 103 cases pending in the Federal courts in either pretrial, trial, or appellate status involving 277 defendants. During 1973, there were 24 cases in which convictions of distributors of obscene materials were secured compared with two in 1969. Special efforts were directed at hardcore, 35-mm motion picture films being distributed to commercial movie houses. The decision by the U.S. District Court for the District of Massachusetts holding the widely distributed film “Deep Throat” obscene is of particular significance. Several significant decisions concerning obscenity were handed down by the Supreme Court affecting both substantive and procedural aspects of the obscenity law which are expected to ease considerably the prosecutor’s burden in these cases. The Section supervises criminal and civil actions to enforce a wide variety of regulatory statutes administered by the Department of Agriculture, including the Agriculture Marketing Agreement Act, the Animal Quarantine and Laboratory Animal Welfare Acts, the Federal Seed Act, the Grain Standards Act, the Wholesome Meat Act, the Wholesome Poultry Products Act, the Egg Products Inspection Act, the Packers and Stockyards Act, the Plant Quarantine Act, the Twenty-Eight Hour Law, and the Warehouse Act. During 1973, 297 criminal and 169 civil cases were referred to the Department, 470 criminal and 166 civil oases were terminated and a total of $117,089 in fines and penalties was imposed. Litigation for enforcement of various transportation statutes is also supervised by the Section. During the past year, 69 civil penalty cases were terminated under the aircraft safety provisions of the Federal Aviation Act and a total of $19,436 in penalties was collected. Under the railroad safety laws, 13 cases were concluded in favor of the Government with fines and penalties of $20,300. A total of 259 convictions were obtained under the motor carrier safety laws with fines totaling $182,025, and 77 convictions were secured under the Interstate Commerce Act (including the supplementary Elkins Act) with fines of $200,525. A prosecution with a potential fine of several million dollars is now pending against a major water carrier, one of its subsidiaries and three individuals in the District Court of New Jersey. The information charges the defendants with 674 violations of the Shipping Act of 1916 which forbids discriminatory grants of preferences to select clients on tariff charges for transportation of goods by water. In the Northern District of Florida a 64-count indictment was returned against a transportation company, its president, vice president, plant manager, traffic and office manager, and driver, as individuals and as agents of the corporation, as a result of the death of four persons and injuries to four others by a hazardous substance being transported in interstate commerce in a corporate vehicle. 91 525-134 0 - 74 -7 INDICTMENTS AND CONVICTIONS OF MAJOR DISTRIBUTORS OF OBSCENITY Among other highlights were the following: —The first criminal prosecution under the Occupational Safety and Health Act of 1970 was begun by a three-count information in Omaha, Nebr., against a construction company and its president for willful violations of the act arising out of the death of an employee who was killed by a cave-in of a sewer trench in which he was working. A similar prosecution is pending in Colorado; —criminal information was filed in the Southern District of Ohio charging the Consolidation Coal Co. and one of its employees with willfull violations of the Federal Coal Mine Health and Safety Act. The violations contributed to the death of a miner when part of the mine roof fell upon him and killed him while he was attempting to install roof bolts in the mine; —several prosecutions under the Bald and Golden Eagle Act were concluded with pleas of guilty or nolo contendere; —multiple count informations charging seven oil companies with killing migratory birds in violation of the Migratory Bird Treaty Act were filed in the District of Colorado. The informations allege that the migratory bird fatalities were caused by the negligent maintenance of oil sludge pits; —in a prosecution under the Lacey Act, two defendants were sentenced in the Southern District of Georgia, after entering guilty pleas to 67 counts of an information charging interstate transportation and sale of alligator skins taken in violation of State law; —in the Southern District of New York, court action against the largest illegal animal fur selling operation ever uncovered terminated with the entry of a consent decree enjoining 33 defendants (14 companies and 19 individuals) from any illegal trafficking in animal skins anywhere in the world and requiring the defendants to make available to fish and wildlife agents their books and records at any time and providing for standardized recordkeeping of export permits and records. In addition, one of the companies pled guilty to buying more than 12,000 skins exported from foreign countries in violation of the Lacey Act; —significant reduction has been effected in the mailing of cigarettes from low-tax states (primarily North Carolina) into high-tax states without complying with the reporting and filing requirements of the Jenkins Act. Five consent judgments were secured in the Eastern District of North Carolina and permanent injunctions were imposed against some of the largest dealers in this cigarette traffic; and —With the enactment of Public Law 92-140, copyright protection of sound recordings was given for the first time, the sale of unauthorized duplication of recordings having mounted to hundreds of millions of dollars annually. Although the program is still in its primary stage, there have been two criminal convictions. Walter Ronald Matthews entered a nolo contendere plea to a charge of ordering stamper plates to reproduce a protected sound recording. Theodore Robert Dien-ger, also known as Ted Danner, entered a plea of nolo contendere to a single count complaint and to four counts of a 16-count complaint charging infringement of copyrights on taped sound recordings. Indictments have been returned in four other cases and additional indictments and prosecutions are anticipated in view of the fact that over 400 FBI investigations were underway at the end of 1973. Internal Security Section The Internal Security Section is assigned, as part of its responsibilities, matters relating to the Nation’s internal security—treason, espionage, sedition, sabotage, and violations of the Neutrality Act and Trading With the Enemy Act. In addition, it is responsible for defending the Government in civil actions which have internal security ramifications. It also supervises the enforcement of the Military Selective Service Act and administers the Foreign Agents Registration Act of 1938. STATUTORY AND SELECTIVE SERVICE UNIT The Statutory and Selective Service Unit enforces criminal statutes relating to subversive activities and supervises the prosecution of offenses arising under the Military Selective Service Act. In addition, it supervises prosecutions of violations under the neutrality statutes, the Bartlett Act, the Trading With the Enemy Act, and the Port Security Act. The Unit is also responsible for prosecuting certain cases involving false statements, perjury, contempt of Congress, and passport violations. The following are among the more significant cases handled by the Unit during the past year: —A Federal grand jury in Detroit, Mich., returned a two-count indictment charging the Chrysler Corp, with exporting military items to a firm in Portugal without obtaining an export license from the Department of State in violation of the munitions control law; —A Federal grand jury in St. Thomas, V.I., returned an indictment charging an individual with conspiracy to destroy an electrical powerplant in the Republic of Haiti in violation of the neutrality laws; and —As an apparent result of the vigorous enforcement of title 16, U.S.C., section 1081, last year, when 92 eight foreign fishing vessels were seized for fishing in U.S. territorial waters and a record total of $603,500 in criminal and civil penalties was assessed, there were no reported violations of the statute this year. The Unit received 5,010 memoranda from the FBI. These, together with other matters received for evaluation and reply, required the preparation of 3,478 items of correspondence. In addition, the Unit prepared 35 memoranda related to legislative matters. The Unit provided specific guidance and assistance to the various U.S. attorneys in matters of law, policy, and procedure in over 5,100 instances involving prosecutions under the Selective Service Act, as well as civil litigation where in-service conscientious objectors sought habeas corpus relief. During this period, 3,501 new cases were instituted and 3,702 cases were terminated, resulting in a decrease in the number of pending indictments from 5,750 to 5,601. Of this number 4,-673 are fugitives from justice. During the year, 2,429 indictments were dismissed. Approximately 60 percent of these were dismissals of delinquents whose offenses were unattended by aggravating circumstances and who belatedly submitted to induction. CIVIL LITIGATION UNIT The Civil Litigation Unit represents the United States in all civil cases involving internal security matters instituted against the United States or its officials and has the responsibility for initiating suits for damage or injunctive relief involving internal security matters. With this duty goes the ancillary responsibility for providing advisory opinions and legal advice to all governmental agencies and departments on internal security matters which may in the future generate civil litigation. Additionally, the Unit has supervision of all civil forfeiture actions under statutes within the jurisdiction of the Section. The bulk of the workload of the Unit involves the defense of civil suits against the Attorney General and various Federal officials by individuals alleging that they have been the subject of a warrantless national security electronic surveillance. Each of these suits is grounded upon the Supreme Court decision in Bivens v. Six Unknown Agents of the Federal Bureau of Narcotics, (10) establishing a Federal cause of action under the fourth amendment for alleged torts committed by Federal agents and upon 18 United States Code No. 2520 providing a civil remedy for surveillance alleged to have been conducted in violation of title III of the Omnibus Crime Control and Safe Streets Act. The majority of these suits arise from either the disclosure of a warrantless national security electronic surveillance by the Government in a companion criminal case or simply upon a general allegation by the plaintiff stating a belief that he has been illegally over heard. In all these actions the plaintiffs seek monetary damages and in most cases injunctive relief prohibiting such alleged surveillances by the Government in the future. Several important legal issues are presented by these pending cases. One example involves a suit instituted following the decision by the Supreme Court in United States v. United States Disrtict Court (11), holding that the President does not have the power to authorize electronic surveillance of purely domestic organizations in order to obtain information to protect the Nation’s security. There, the criminal defendant involved in the surveillance instituted a civil suit alleging a violation of his fourth amendment rights by the Federal officials who authorized and conducted that surveillance. In resolving this question, one of the issues before the Court will be whether its decision should be applied retroactively to provide the plaintiff a civil cause of action against those Federal officials who acted in the good faith belief that their conduct was lawful (12). In a similar context, a civil suit (13) was instituted following disclosure of a national security electronic surveillance in early 1969 authorized by the President to determine the source or sources of the news leak of highly classified information which had appeared in the press. In that suit, one of the subjects of the surveillance alleged that his fourth amendment rights were violated. In resolving this issue, the Court will be presented with the question of whether the conduct of such surveillance by the Executive is reasonable under the constraints of the fourth amendment when it is authorized by the President for foreign policy purposes to protect national security information against foreign intelligence activities. The Unit is currently defending these and 15 other similar cases involving challenges to the conduct by the Executive of warrantless national security surveillances as well as seven suits challenging the investigative and intelligence gathering activities of the FBI and other government agencies. In one such suit decided this year (14), the District Court for the District of Columbia dismissed an action against the Director and two special agents of the FBI which sought to enjoin the Bureau from surveilling their public meetings and sending reports thereon to FBI headquarters. In its opinion the court found that the compliant was insufficient to create the case or controversy required to invoke the subject matter jurisdicion of the court and that the plaintiffs had failed to state a claim upon which relief may be granted. Other litigation handled by the Unit involve suits arising under the Trading with the Enemy Act, suits challenging certain actions of the House Internal Security Committee, suits seeking reversal of adverse determinations made under the personnel security program of various governmental agencies, civil forfeiture actions, and Freedom of Information Act cases. 93 In one Freedom of Information Act case (75) decided this year, the District Court for the District of Columbia denied the plaintiff’s efforts to obtain copies of the special collection containing the papers of Soviet Colonel Penkovskiy which were in the possession of the Government. The court upheld the Government’s claim that the defendants had made an adequate factual showing that the disclosure of the documents would be harmful to the national defense or foreign policy and that the defendants had factually met their burden of showing that the documents were of the type which were entitled to the protection of the confidentiality exception afforded under the act. REGISTRATION UNIT The Registration Unit administers and enforces three registration statutes designed to protect the national defense, internal security, and foreign relations of the United States. These require public disclosure by persons who, on behalf of foreign interests, engage in propaganda and other activities seeking to influence public opinion, or official action. Administration of the Foreign Agents Registration Act resulted in the filing of 94 new registration statements and termination of 74, leaving a total of 493 active registration statements on file. In addition, 587 new short-form registration statements were filed by persons who directly rendered services or assistance as officials or employees of a registrant in the interest of the latter’s foreign principal. A total of 3,482 active short-form registrations remained after 359 were terminated. The Unit also conducted reviews of 24,649 separate pieces of propaganda filed during the year and 7,253 reports were made on the dissemination of the propaganda filed by registrants. Finally, 11 registration statements were filed under Public Law 893 by persons who had knowledge of or had received an assignment or training in the espionage or sabotage service of a foreign country. There were five such registration statements. CIVIL DISTURBANCE UNIT The Civil Disturbance Unit receives, collates, and evaluates investigative reports from departmental and other sources relating to the activities, plans, and methodology of individuals and groups that initiate or engage in extremist or terrorist activities. The Unit has the primary responsibility for the receipt and distribution of over 50,000 pieces of mail annually which consists of FBI reports, letterhead memoranda, teletypes as well as reports and memoranda from other investigative agencies. Each communication received in the Unit is reviewed for content and thereafter routed to the appropriate unit. Analysts also review approximately 25,000 pieces of mail, con sisting primarily of FBI reports and letterhead memoranda regarding individuals and groups engaging in extremist or terrorist activities for possible prosecutive action. The Unit is the focal point for the discharge of the Attorney General’s responsibility for coordinating all Federal civil activity in connection with civil disorders. It administers and operates the Department of Justice Information Center (DJIG) which monitors, nationwide, all activity having civil disturbance potential. The Unit has continuing liaison with Federal investigative agencies and U.S. attorneys in order to maintain an informed posture calculated to insure a carefully measured response to civil disorders. It administers the civil disorder program in liaison with the senior civilian representative of the Attorney General teams which may be deployed during civil disorder to provide him with on-the-scene information to assist him in the discharge of his responsibilities. The Unit also provides key departmental personnel and other elements of the executive branch with timely, necessary information in potential civil disturbances. The DJIC was recently given the additional responsibility of functioning as the focal point for intradepartmental coordination of information relative to nonmilitary incidents which could have an adverse effect upon the conduct of foreign relations. This additional function required that the DJIC operate on a 24-hour, 7-day-week basis with certain senior departmental officials designated as watch officers. During the occupation of Wounded Knee, S. Dak., the DJIC maintained liaison with Government representatives at the scene and rendered daily reports. ADDITIONAL RESPONSIBILITIES The Section also represents the Department on the Interdepartmental Committee on Internal Security (ICIS) and on four of its subordinate groups. ICIS is directed by its charter to “effect the coordination of all phases of the internal security field, except those specifically assigned to the Interdepartmental Intelligence Conference.” ICIS is comprised of representatives of the Departments of Justice, State, Defense, and Treasury. The chairman is appointed by the President after consultation with the Attorney General. ICIS has established under it a standing committee, four subcommittees (each of which is responsible for a particular area of internal security) and a joint committee with the Interdepartmental Intelligence Conference. The Office of the Emergency Coordinator of the Internal Security Section has the responsibility for preparing and coordinating plans and programs for use by the Department in a civil defense-type emergency. The Office is required to plan for the continuity of de- 94 NARCOTIC AND DANGEROUS DRUG CASES FILED AND TERMINATED IN U.S. DISTRICT AND APPELLATE COURTS Fiscal Years 1969-1973 partmental operations in the event of limited war or nuclear war and to carry out its national level essential functions during an immediate preattack, transattack, and immediate post-attack period. The Office prepared the necessary plans to enable the Department to carry out its functions during a national emergency from any one of three geographic locations. These plans are summarized in a booklet captioned, “Emergency Readiness Instructions,” which was distributed to all departmental employees who were designated as relo-catees by their Division heads. Narcotic and Dangerous Drug Section The Narcotic and Dangerous Drug Section is responsible for criminal and civil litigation arising under the Federal laws pertaining to narcotics, marihuana, and other dangerous drugs all of which are classified as controlled substances under the Controlled Substances Act (21 U.S.C. 801 et seq.). In addition, the Section is responsible for supervision of litigation arising under the Narcotic Addict. Rehabilitation Act of 95 1966 as well as litigation arising under the laws which relate to the forfeiture of property used in conjunction with violations of the narcotics, marihuana, controlled substances, liquor, counterfeiting, gambling, and firearms laws. For the current year, the number of cases filed in Federal courts throughout the country involving statutes under this Section’s jurisdiction has increased 30 percent over the previous year to a point where it is now estimated that approximately 20 percent of the Federal criminal caseload concerns controlled substances. Supplementing the Section’s supervisory function are two Units, one for the Southeastern United States at Miami, Fla. and the other for the Southwest at San Diego, Calif., each of which is actively involved in the investigation and prosecution of controlled substance offenses. In addition, attorneys from the Section have continued to assist U.S. attorneys in the trial of complex cases. The following are the highlights of major prosecutions coming under the Section’s supervisory authority during the year: —The conviction and sentencing of Joseph (JoJo) Manfredi and Joseph Lacosa on conspiracy charges arising out of a $25 million a year narcotics operation; — the conviction of Auguste J. Ricord on charges of conspiring to smuggle 290 pounds of heroin into the United States; — the unprecedented sentencing of Willie Abraham to life imprisonment without possibility of parole following his conviction under the continuing criminal enterprise provision of the Controlled Substances Act; — the conviction of Leroy Collier of engaging in a continuing criminal enterprise and specifically of importing cocaine into the United States from South America; —the indictment of Clarence F. Bachelder and others on charges of importing and distributing LSD. At the time of arrest, 236 grams of pure LSD having an estimated street value of $12 million were seized; the largest of such seizures to date; —the conviction of Francisco Condom-Gil, Ronald Condom-Gil, and Ciro Garcia of conspiring to import cocaine into the United States in violation of 21 United States Code 963; and —the conviction of Christian David on charges of conspiring to smuggle more than 1,000 pounds of heroin valued at $250 million into the United States. Approximately 1,000 pounds of marihuana and 11 kilos of cocaine were seized that had been thrown overboard in weighted packages by crewmembers of a vessel docked in Brooklyn. Scuba divers operating from remote locations on the Brooklyn waterfront were able to recover the packages. The Section acted on 262 original petitions for remission on mitigation of forfeiture of property seized for violation of the various forfeiture statutes which the Section is responsible for enforcing. Of these petitions 164 were granted and 98 denied. The Section also represents the Administrator of the Drug Enforcement Administration (formerly BNDD) in proceedings instituted by parties claiming to be adversely affected by that Bureau’s action. In the past year attorneys from the Section have defended in the United States Court of Appeals the rule-making decisions of the Administrator involving the classification of marihuana and the extent to which it should be controlled under the Controlled Substances Act, determining that the tranquilizers Librium and Valium should be placed under the inventory and record-keeping controls of that statute and determining that the hallucinogenic substance peyote should likewise be controlled under the act. 96 CRIMINAL CONVICTIONS 1094 CASE CITATIONS (7) No. 71-6278 (1973). (2) 411 U.S. 223 (1973). (3) 411 U.S. 423 (1973). (4) 410 U.S. 605 (1973). (5) No. 71-1255 (1973). (6) 412 U.S. 434 (1973). (7) 395 U.S. 258 (1969). (8) 412 U.S. 837 (1973). (9) No. 71-1255 (1973). (70) 403 U.S. 388 (1971). (77) 407 U.S. 297 (1972). (72) John Sinclair, et al. v. Richard G. Kleindienst, et al., Civil Action No. 610-73 (D.D.C.). (73) Morton H. Halperin, et al. v. Henry A. Kissinger, et al., Civil Action No. 1187-73 (D.D.C.). (74) Virginia Collins, et al. v. John Edgar Hoover, et al., Civil Action No. 1205-71 (D.D.C., July 17, 1972). (75) John M. Ashbrook, et al. v. Melvin R. Laird, et al., Civil Action No. S-Civ-72-40 (D.D.C., July 17, 1972). 97 Antitrust Division The Antitrust Division has as its primary goal the promotion of competition in all sectors of the American economy. The Sherman and Clayton Acts, which the Division has primary responsibility for enforcing, reflect the basic economic tenet that business decisions made in a setting of competition in price, quality, and service will produce more and better goods, at lower prices to the consumer, than decisions made in an environment of monopoly or combinations of competitors. In the past fiscal year, the Division’s activities fell into five basic categories. Each of these major activities were directed at the promotion of competition and protection of the American consumer. First, and of primary importance, the Division seeks to prevent conspiracies in restraint of trade and monopolization in the free market sector of the economy and to prevent anticompetitive mergers. This is the Division’s basic mission and it requires the great bulk of staff time and attention. As the American economy grows and becomes more complex, the Division’s responsibilities in this respect continue to increase. Second, the Division seeks to advise other Government agencies which presently have regulatory duties involving competitive considerations and, where necessary, to present principles fostering competition in litigation arising out of such agency regulation. As a result of recent court decisions, this activity represents a growing demand upon staff resources. Third, the Division is increasingly active in -advising both the Administration and the Congress with respect to the impact on competition of existing law and new legislative proposals, and in appraising whether such legislation is needed and appropriately drafted. In the past this has represented a small demand upon Division staff resources in terms of numbers, but a large demand upon the time of Division leaders. Fourth, the Division advises courts handling private litigation involving the application and interpretation of antitrust principles through the filing of briefs amicus curiae. This activity is also growing since as private antitrust litigation increases, more important principles of antitrust law are being raised and decided in the context of such litigation. Finally, the Division devotes an ever-increasing amount of staff and time to direct consumer protection functions conferred upon it by statutes such as the Federal Food, Drug and Cosmetic Act, the Hazardous Substances Act, the Federal Trade Commission Act, the Fair Credit Reporting Act, and the Consumer Product Safety Act. These responsibilities, assigned primarily to the Consumer Affairs and Appellate Sections, involve considerable liaison and consultation with other Government agencies as well as supervision and assistance for the many U.S. Attorneys’ offices handling litigation in these important areas. The Division was staffed by over 300 attorneys, 25 economists, and 250 support personnel. Well over one-third of the attorneys served in the Division’s seven field offices. The Division filed 62 antitrust cases (42 civil and 20 criminal) in the Federal district courts. This is a decrease from the 87 cases (72 civil and 15 criminal) filed in 1972. However, much of the Division’s resources were devoted to reducing the nearrecord number of cases pending at the end of fiscal 1972 (143—124 civil and 19 criminal) as a result of those filings. At the end of the fiscal year, 134 cases (116 civil and 18 criminal) were pending. Of the cases instituted in 1973, 16 involved mergers, 38 alleged price fixing, and six contained monopolization charges. In the past year, 71 antitrust suits (50 civil and 21 criminal) were terminated, more than in any year since 1968. There were, in addition, eight cases in which consent decrees were signed by one or more, but 98 not all, of the defendants or in which suits were settled, but not terminated, due to the customary 30-day waiting period from the time a decree is lodged with the court to the time it is finally entered. Of the 50 civil cases closed, the Government won 44, lost five, and dismissed one ; of the 21 criminal cases concluded, the Government won 17, lost three, and dismissed one. Five antitrust cases were appealed to the Supreme Court in fiscal 1972. All of these cases were terminated by decisions of the Court during fiscal 1973, with the Government winning four and losing one. One case was appealed to the Supreme Court during fiscal 1973. Litigation, of course, flows from investigations. The Division initiated 455 new investigations compared with 437 in the previous year. Of these investigations, 127 involved the issuance of civil investigative demands, documents similar to subpoenas which require the firm or individual under investigation to produce documents relevant to the investigation. Ninety-seven civil investigative demands were issued during the previous year. Moreover, the Division commenced 34 grand jury investigations compared to 32 grand jury inquiries in 1972. Much of the Division’s litigation and investigatory work is conducted by six litigating sections in Washington—General Litigation, Special Litigation, Trial, Special Trial, Patent, and Judgments and Judgment Enforcement. The first four sections have broad responsibility within defined industries and focus upon all potentially anticompetitive conduct or transactions, from price fixing through mergers within those industries. The Patent Section concentrates upon the anticompetitive procurement and use of patents. The Judgments and Judgment Enforcement Section is charged with securing defendants’ compliance with judicial decrees which the Division has won in previous litigation. In addition, the Division’s seven field offices—located in Chicago, Cleveland, New York, Philadelphia, Atlanta, Los Angeles, and San Francisco—have broad enforcement responsibility for all antitrust violations within the regions they serve. Finally, three other sections located in Washington have important litigation and enforcement tasks. The Public Counsel and Legislative Section conducts significant antitrust investigations and litigation in the regulated industries, the Foreign Commerce Section has responsibility for antitrust cases and investigations involving the export and import trade of the United States and the Consumer Affairs Section is responsible for litigation under consumer protection statutes other than the Sherman and Clayton Acts. All of this litigation and investigation, with the exception of the activities of the Consumer Affairs Section, is supervised and directed by the Office of Operations. Novel and difficult issues of antitrust law and policy are often referred to the Evaluation Section for analysis and comment The Antitrust Division’s appearances before regulatory agencies and advice on proposed legislation are also assigned primarily to the Public Counsel and Legislative Section but personnel from other sections are often involved in such activities as well, including staff from the Foreign Commerce Section, the Evaluation Section, and the Economic Section. In addition, both the Appellate and Consumer Affairs Sections have considerable contact with other executive branch agencies. Thus, all of these sections report to the Director of Policy Planning who has overall responsibility for interagency affairs, legislative activity, and continuing reassessment of long-term Division goals and policies. Although this organizational structure has worked well over the years, the steady growth in all phases of Division activity prompted a thorough study during fiscal 1973 of the possibility of reorganization of the Antitrust Division. A major reorganization has been recommended and will be implemented early in fiscal 1974. New Cases Initiated The Division continued a vigorous program of litigation attacking price fixing, market and customer allocations, reciprocity, monopolization, mergers, and other forms of anticompetitive conduct. Because of the broad-ranging nature of the antitrust enforcement responsibilities of most of the Division’s litigating sections, a brief description of some of the significant cases filed during the year follows. Price Fixing United States v. Eagle Fuel Oil Co., et al. (7). On December 22, 1972, a Federal grand jury indicted two Hudson County, N.J., fuel oil dealers on charges of bid rigging in connection with the sale of fuel oil to Union City, N.J., and to its board of education. Named as defendants in the indictment were Eagle Fuel Oil Co., Jersey City, N.J., and Lionetti Fuel Co., Inc., North Bergen, N.J. Named as a co-conspirator, but not as a defendant, was Combustion Sales Corp., N.J., also a Hudson County dealer. The indictment charged that, with respect to specific fuel oil contracts let by Union City and its board of education, the defendants: Discussed the submission of prospective bids, designated the successful bidder, submitted intentionally high or complementary bids where another dealer had been designated as the successful bidder, and agreed not to submit bids on specific contracts. As a result of the conspiracy between Eagle and Lionetti, the indictment charged price competition on fuel oil sales made to Union City and its board of education were being restrained and eliminated and quotations and bids were being fixed at noncompetitive levels. 99 CONSUMER AFFAIRS SECTION EVALUATION SECTION PUBLIC COUNSEL AND LEGISLATIVE SECTION SPECIAL ASSISTANT(S) DIRECTOR OF POLICY PLANNING APPELLATE SECTION O _ FOREIGN COMMERCE SECTION ECONOMI SECTlOh ANTITRUST DIVISION ASSISTANT ATTORNEY GENERAL DEPUTY ASSISTANT ATTORNEYS GENERAL ADMINISTRATIVE OFFICER ADMINISTRATIVE SECTION SPECIAL TRIAL SECTION TRIAL SECTION JUDGMENTS ANDJUDGMENT ENFORCEMENT SECTION DIRECTOR OF OPERATIONS FIELD OFFICES GENERAL LITIGATION SECTION SPECIAL LITIGATION SECTION PATENT SECTION 100 United States v. Champaign Asphalt Co., et al. (2). On December 19, 1973, a Federal grand jury indicted nine Illinois contracting firms and four of their executives on charges of bid rigging in connection with the construction of Interstate Highway 74 in the State of Illinois. According to this indictment, the defendants agreed to submit rigged bids to the State of Illinois, in an attempt to allocate among themselves specific projects let by Illinois on November 14, 1969, in connection with the construction of Interstate 74. The indictment charged that, as a result of the conspiracy, the price of interstate highway construction was set at high, noncompetitive levels and the State of Illinois and the Government was denied the benefit of free and open competition in the construction of interstate highways. United States v. Blue Ribbon Meat Co., et al. (3). On September 12, 1972, a Federal grand jury indicted five wholesale meat companies and two of their officials on charges of price fixing and collusive bidding in the Reno, and Lake Tahoe regions of Nevada and California. A companion civil suit was filed in U.S. District Court in Nevada. The defendants are the principal wholesalers of meat in the Reno, and Lake Tahoe areas and their annual sales of meat products amount to approximately $12 million. The indictment and civil suit charged that the defendants had conspired, since at least as early as 1969, to submit collusive and rigged bids to the Washoe County, Nev., School District and to their private customers. The intent and effect of the conspiracy, it was alleged, was to suppress and restrain competition among the defendants and to raise and maintain meat prices at artificial, noncompetitive levels. The civil suit asked that the defendants be permanently enjoined from continuing or reviving their conspiracy and from engaging in any practices having a similar purpose or effect, including any exchange of information concerning prices charged to customers of each defendant. United States v. National Broiler Marketing Association (4). On April 16, 1973, the Division filed in the U.S. District Court for the Northern District of Georgia, a civil antitrust suit charging the National Broiler Marketing Association (NBMA) with fixing the price of chickens in violation of section 1 of the Sherman Act. NBMA is a Georgia corporation headquartered in Jackson, Miss., whose members are engaged in the marketing of broiler chickens. In 1971, the approximately 60 member firms of NBMA sold over $600 million worth of broilers nationwide—about 50 percent of total U.S. broiler sales. The broilers marketed by NBMA members are produced for the members under agreements with growers who raise the broilers from chicks supplied by members of NBMA. The complaint alleged that the members of NBMA and others entered into a combination and conspiracy to fix prices of broiler chickens at artificially high levels through agreements to: exchange information about past, present, and future prices for broilers; establish and disseminate broiler prices; sell less than grade A broilers at agreed-upon discounts from the grade A price; withhold broiler parts from the market in order to increase their price; establish production guidelines and regulate the number of broilers available for marketing in accordance with such guidelines; and sell surplus broilers outside the United States. The suit asked that NBMA and all persons acting under, through, or for NBMA be enjoined from carrying out the alleged conspiracy and from furnishing or requesting from processors of broilers any information concerning prices, terms, or conditions for the sale or production of broilers. United States v. American Bakeries Co., et al. (5). On September 12, 1972, a Federal grand jury in the U.S. District Court for the Southern District of New York indicted four major baking companies—makers of Taystee, Bond, Wonder, and Tip-Top Bread—on charges of price fixing. The defendants are the principal producers of bread for retail grocers in the New York region which includes all of New York City, Rockland, Westchester, Nassau, and Suffolk Counties in New York, and much of northern New Jersey. Their total sales in that region exceeded $75 million a year. The indictment charged that the defendants and unnamed co-conspirators had conspired between 1966 and 1969 to restrain competition among themselves and to raise and maintain prices of nonpremium branded bread and bread-type rolls in the New York City region. Reciprocity The Division also continued its attack on systematic reciprocity, which involves the use by one firm of its purchasing power to gain sales from other firms. United States v. Yellow Freight System, Inc. (6). On October 26, 1972, a complaint was filed in U.S. District Court in Kansas City, charging Yellow Freight System, Inc., the Nation’s fourth largest truckline, with using reciprocal purchasing arrangements with its customers and suppliers in violation of sections - 1 and 2 of the Sherman Act. Yellow Freight, based in Kansas City, operates over 41,700 miles of truck routes through more than 100 terminals. The company’s 1970 revenues were approximately $170 million. The complaint charged that since at least 1961, Yellow Freight has violated section 1 of the Sherman Act by entering into arrangements to purchase products and services from its suppliers upon the understanding they would use Yellow Freight as their carrier. In addition, the complaint charged that, since 1961, Yellow Freight has used its purchasing power in an attempt to monopolize the freight transportation requirements of its 101 actual and potential suppliers in violation of section 2 of the Sherman Act. Yellow Freight’s reciprocal purchasing arrangements were alleged to foreclose sale of transportation services to its suppliers by competing trucklines. Competition among suppliers was also said to be foreclosed by Yellow Freight’s reciprocal arrangements. The complaint asked that Yellow Freight be enjoined from continuing any reciprocal purchasing arrangements, from telling suppliers they will receive preference if they purchase Yellow Freight’s service and from compiling statistics comparing sales and purchases between Yellow Freight and its suppliers. United States v. Crane Company (7). On January 23, 1973, a complaint and consent judgment were filed in Manhattan’s U.S. District Court against Crane Co. of New York City. Crane was alleged to have violated sections 1 and 2 of the Sherman Act by engaging in reciprocal dealings. Crane manufactures a wide variety of plumbing and other fluid control and treatment products and is also the majority stockholder of CF&I Steel Corp., a manufacturer and fabricator of steel products based in Denver, Colo. The total sales of Crane and CF&I Steel in 1970 were approximately $680 million. As of 1970, Crane’s operation and distribution facilities were spread over 38 States and 8 foreign countries. The suit charged that, since 1959, Crane purchased products and services from its suppliers with the understanding that the suppliers would purchase products and services from Crane. Crane was also alleged to have used its purchasing power since 1959 to promote reciprocal dealings in an attempt to monopolize the requirements of its actual and potential suppliers for the types of products sold by Crane. Crane’s competitors, it was charged, were thus foreclosed from selling substantial amounts of goods and services to Crane’s suppliers. Under the consent judgment, Crane is prohibited for ten years from: considering sales to any supplier as a factor in its purchasing decisions; using its purchases to aid, influence, or promote its sales to suppliers; purchasing or selling goods or services on the condition or understanding that purchases from any supplier will be based on sales to such suppliers; communicating to anyone that its sales to any firm are a factor in any decision to purchase from that firm; maintaining statistical comparisons of sales to and purchases from suppliers; and assigning any trade relations function or duty to any employee. Monopolization Among the important cases filed pursuant to section 2 of the Sherman Act, which prohibits monopolization or attempts to monopolize, was United States v. Dairymen, Inc. (6), a civil suit filed in the U.S. District Court for the Western District of Kentucky. The complaint charged Dairymen, Inc., one of the Nation’s largest dairy marketing cooperatives, with attempting to monopolize and unreasonably restrain the sale of milk. Dairymen, which has about 9,500 dairy farmer members in the Southeastern United States, allegedly entered into agreements with milk haulers and processors which unreasonably restrained the sale of milk to processors in violation of section 1 of the Sherman Act and section 3 of the Clayton Act. The suit also charged that, since 1968, Dairymen attempted to monopolize the sale of milk to processors in violation of section 2 of the Sherman Act. Among the practices complained of were the following: requiring milk haulers to haul only Dairymen milk; refusing to sell to those haulers who do not purchase substantially all their milk requirements from Dairymen members; coercing producers to become members of Dairymen and preventing nonmember producers from delivering their milk to processors; manipulating the supply of milk by flooding the market in order to depress the price competing producers receive for their milk; and unreasonably restricting the rights of members to withdraw from Dairymen and market milk in competition with it. Challenges to Anticompetitive Conduct in the Service Industries The Division continues to view the service sector of the economy as important. Accordingly, the Division brought a number of significant cases, mainly directed at price fixing, in this sector. United States v. National Society of Professional Engineers (9). On December 5, 1972, a civil suit was filed in the U.S. District Court in Washington, D.C., charging the National Society of Professional Engineers (NSPE) with eliminating price competition among its members in the sale of engineering services. NSPE is a nonprofit membership corporation made up of about 67,000 professional engineers who design and supervise the construction of roads, bridges, dams, industrial plants, and other structures located throughout the United States and abroad. The complaint charges that NSPE’s code of ethics, which prohibits members from submitting competitive bids for engineering services, violates section 1 of the Sherman Act. The suit asks the court to eliminate those provisions of the NSPE code of ethics which suppress price competition among its members and to enjoin NSPE and its members from adopting or abiding by any agreement to suppress or eliminate price competition United States v. Chicago Board Options Exchange, Inc. (10). On April 26, 1973, a suit was filed in the U.S. District Court for the Northern District of Illinois, seeking to prohibit the Nation’s first securities options exchange, the Chicago Board Options Exchange, Inc., from fixing the commission rates and brokerage fees charged by brokers trading securities options. A secu 102 rities option is a contract for the right to purchase or sell shares for a set period of time at a price determined at the time the contract is entered into. These options have traditionally been traded over-the-counter without any fixed brokerage commission rates, floor brokerage, or other fees to be charged by exchange members for the purchase and sale of securities options. The suit alleged that the defendant’s rules eliminated price competition in violation of section 1 of the Sherman Act. The court was asked to enjoin the defendant from fixing commission rates or other fees for brokerage services or from engaging in any other practices having a similar purpose or effect. United States v. National Association of Securities Dealers, Inc., et al. (77). The Division filed suit on February 21, 1973, in the U.S. District Court for the District of Columbia against the 4,400-member National Association of Securities Dealers (NASD) and 15 other defendants on charges of conspiring to prevent brokers from dealing in mutual fund shares among themselves or from processing sales between customers at competitive brokerage rates. Also named in the suit were three mutual funds, their principal underwriters and .nine of the largest securities brokerage firms in the country. A mutual fund is an investment company which invests in securities of other corporations and issues shares which represent an interest in the invested assets. Mutual fund shares are sold to a principal underwriter under a distribution contract. Shares are then resold by the underwriter under sales ageements to numerous broker-dealers who in turn sell to the investing public. In 1971 sales of mutual fund shares in the United States exceeded $5.1 billion. NASD, headquartered in Washington, D.C., is a national association of broker-dealers. The complaint alleges that NASD and the other defendants have conspired to establish a system under which broker-dealers can only buy from an underwriter or fund on their own account or on behalf of customers. Brokers may not buy from each other. The complaint alleges that if a secondary market involving competition among brokers were established, commission rates might go down from the level now set through sales contracts between brokers and underwriters. The suit charged that NASD and its members acted together to prevent the growth of a secondary dealer and brokerage market, thereby keeping commission rates artificially high. This was done, the complaint alleged, by establishing NASD rules which inhibited the development of secondary markets; inducing principal underwriters to include restrictive provisions in their distribution agreement with securities dealers; discouraging interested persons from participating in brokerage markets in fund shares and distributing misleading information concerning the legality of such markets; and suppressing market quotations for secondary dealer markets. The suit further charged the mutual funds, their underwriters, and the nine broker-dealers with entering into distribution contracts which contain provisions inhibiting the development of secondary dealer and brokerage markets for mutual fund shares. Mergers and Acquisitions Strong enforcement of section 7 of the Clayton Act to prevent anticompetitive mergers and joint ventures remains of critical importance to maintaining competitive structures in American markets. The Division filed a number of merger cases in 1973, exemplified by the suits discussed below. United States v. Texaco, Inc., et al. (72). On June 12, 1973, a civil action was filed in the U.S. District Court for the Southern District of New York against Texaco, Inc. and Coastal States Gas Producing Co., a large independent refiner, alleging violations of section 1 of the Sherman Act and section 7 of the Clayton Act. Texaco, with headquarters in New York City, is the Nation’s largest oil refiner and marketer. Coastal, which is located in Corpus Christi, Tex., is the largest nonmajor source of gasoline to independent marketers. The complaint charges that Texaco has conditioned its sales of crude oil to Coastal upon Coastal’s agreement to sell substantial amounts of refined products to Texaco over the next four years. Coastal is alleged to have agreed to sell refined petroleum from its Corpus Christi, Tex., refinery to Texaco in amounts increasing from 14,000 barrels per day in 1973 to 106,000 barrels per day in 1976. During this same' period, Coastal may purchase crude oil from Texaco, at the latter’s option, in amounts increasing from 16,400 barrels per day in 1973 to 121,000 barrels per day in 1976. It is alleged that this agreement deprives Coastal of the right to sell refined products to others—including independents—and deprives competitors of Texaco of the opportunity to buy substantial amounts of refined products from Coastal. This is alleged to be an unreasonable restraint upon the sale of gasoline and fuel oil in violation of section 1 of the Sherman Act. In addition, the complaint states that Texaco has made arrangements for the right to purchase, at its option, Coastal’s Corpus Christi refinery. The complaint charges that Texaco’s acquisition of this 135,000-bar-rel-a-day refinery would foreclose independent marketers from a substantial supply source and would eliminate competition between Texaco and Coastal. This, the complaint alleges, would violate section 7 of the Clayton Act. The complaint asks the court to dissolve the Texaco-Coastal agreements and to enjoin Texaco from selling crude oil to anyone on the condition that Texaco be given preference as a customer for refined petroleum products. United States v. Pacific Southwest Airlines, et al. (13). On December 5, 1972, a civil suit was filed to block the merger of the two leading air passenger 103 carriers serving routes between northern and southern California. The suit was filed in U.S. District Court for the Central District of California. The proposed merger involved Pacific Southwest Airlines (PSA) of San Diego and Air California, Inc., of Newport Beach, Calif. Also named as a defendant was the Westgate California Corp, of San Diego, from which PSA planned to acquire a majority of Air California’s outstanding shares. According to the complaint, PSA is the leading air passenger carrier serving the California air corridor, carrying approximately 70 percent of the air passengers traveling between northern and southern California. Air California is the second largest air carrier in the same area, carrying about 11 percent of all passengers. The complaint charged that if the merger were permitted: actual and potential competition between PSA and Air California would be permanently eliminated; competition generally in the California air corridor would be substantially lessened; and concentration in the California scheduled air passenger transportation market would be substantially increased. Thus, it was alleged that the merger would substantially lessen competition in violation of Section 7 of the Clayton Act. The court was asked to declare the proposed acquisition unlawful, enjoin its consummation and further, to enjoin PSA for ten years from acquiring any other air carrier operating in the California air corridor. On denial of defendants’ motion to dismiss, PSA and Air California abandoned the proposed acquisition. United States v. American Television and Communications Corp., et al. (14). On December 20, 1972, a civil suit was filed in the U.S. District Court for the Northern District of Georgia, challenging the proposed acquisition of Cox Cable Communications, Inc., of Atlanta, Ga., an owner of multiple-cable television systems by American Television & Communications Corp. (ATC), a cable TV operator based in Denver, Colo. The complaint charged that the proposed acquisition would violate section 7 of the Clayton Act. The complaint said that both ATC and Cox were active and successful competitors to operate cable television franchises in the major television markets across the United States and that recent mergers had already eliminated some other of the limited number of companies capable of competing for these franchises. The suit charged that: the acquisition would permanently eliminate competition between ATC and Cox for cable television franchises, particularly in the Nation’s largest markets; competition generally for cable television franchises in these markets would be substantially lessened; and concentration in the number of companies capable of competing for these franchises would be increased and mergers of other major cable television companies might be fostered and encour aged. Subsequent to the filing of the complaint, the companies abandoned the proposed acquisition. United States v. Halliburton Co. (15). On April 24, 1973, a suit was filed in the U.S. District Court for the Southern District of New York, challenging the acquisition of Ebasco Services, Inc., of New York City, by the Halliburton Co., of Dallas, Tex. Ebasco and Halliburton, through its wholly owned subsidiary, Brown & Root, Inc., of Houston, Tex., are both leading consulting engineering and construction firms specializing in the design and construction of electrical power generating facilities throughout the United States. According to the complaint, Ebasco provided consulting engineering services in connection with the design and construction of electric power generating facilities accounting for approximately 14.5 percent of the fossil fuel megawattage capacity installed in the United States from 1968 through 1972. Ebasco also accounted for about 13.7 percent of the consulting engineering services in terms of megawattage capacity installed for nuclear electric power generating facilities in the United States from 1968 through 1972. In 1971, Ebasco’s net revenues were $173 million. The complaint said that Brown & Root acted as consulting engineer on electric power generating plants accounting for about 5.7 percent of the fossil fuel megawattage capacity installed from 1968 through 1972. Before acquiring Ebasco, Brown & Root had tried but failed to develop nuclear designing capability and was one of the few firms in this industry without that capability. In 1971 Halliburton had net revenues of $1.3 billion and its Brown & Root subsidiary had net U.S. revenues of $822.9 million. Halliburton acquired Ebasco from Boise Cascade Corp, of Boise, Idaho, on January 22, 1973. The complaint charged that, as a result of the acquisition, actual and potential competition between Brown & Root and Ebasco would be eliminated and that concentration in the industry of engineering and construction of fossil fuel and nuclear power generating facilities would be increased. The suit asked that Halliburton be ordered to divest itself of Ebasco. United States v. Hercules Inc., et al. (16). On May 31, 1973, a civil suit and proposed consent judgment were filed in the U.S. District Court in Wilmington, Del., challenging a joint venture involving manufacture of plastics between Hercules, Inc., of Wilmington, Del., and Mitsui Petrochemical Industries, Ltd., of Japan. Mitsui Petrochemical Industries (U.S.A.) Inc. of New York City, a wholly owned subsidiary of Mitsui of Japan, was also named as a defendant. Hercules is the leading U.S. manufacturer of polypropylene, used in making plastic bottle caps, fibers, and film products. Mitsui is a leading Japanese producer of polypropylene and also of high-density polyethylene, a related plastic used in making bottles and tubes. Hercules and Mitsui agreed to manufacture 104 and sell high-density polyethylene jointly in the United States. According to the complaint, Mitsui refrained from competing with Hercules in the United States in polypropylene because of Mitsui’s participation in the high-density polyethylene joint venture. It was also alleged that Hercules and Mitsui agreed to exchange patents and technology relating to the manufacture of polypropylene and to manufacture and sell polypropylene jointly in the United States at some time in the future. The result of these agreements, the suit charged, was elimination of actual and potential competition between Hercules and Mitsui in both the polypropylene and high-density polyethylene markets. The proposed consent judgment requires Hercules and Mitsui to terminate their partnership and certain license agreements. It also permanently prohibits Hercules and Mitsui from retaining any joint interest in any manufacture of polypropylene or high-density polyethylene. Hercules is also prohibited from agreeing with anyone to refrain from competing in any line of commerce as a condition of going into business with Hercules in some other field. Banking Here again, the Division continued its close scrutiny of bank mergers because of the significance of financial institutions to all phases of industrial growth. United States v. The Wachovia Corp., et al. (17). On December 1, 1972, a complaint was filed in the U.S. District Court for the Western District of North Carolina to enjoin the proposed merger of Bank of Granite, Granite Falls into Wachovia Bank & Trust Co., N.A., a subsidiary of the Wachovia Corp, of Winston-Salem. The complaint alleged that the merger would violate section 7 of the Clayton Act by eliminating existing and potential competition between the major commercial banks in a commercial center of west-central North Carolina designated as the Western Urban Complex. Wachovia Bank is North Carolina’s largest bank, holding 22 percent of all commercial bank deposits in the state. It holds the third largest share (nine percent) of commercial bank deposits in the Western Urban Complex. Granite Bank, doing business entirely within the Western Urban Complex, holds the fifth largest share (5.6 percent) of that area’s deposits. The two banks are direct competitors in several communities in the Western Urban Complex. The complaint alleged that commercial banking in North Carolina and in the Western Urban Complex is highly and increasingly concentrated. In North Carolina, percent of total deposits held by the five largest banks went from 59.7 to 68.2 between 1962 and 1972. In 1972 the four leading banks in the Western Urban Complex held 85 percent of that area’s commercial bank deposits. It was alleged that the proposed merger may substantially lessen competition or tend to create a monopoly in violation of section 7 of the Clayton Act in the following ways, among others: existing and potential competition between Wachovia and Granite Bank in the Western Urban Complex will be eliminated; existing and potential competition between Wachovia Corp, (the holding company owner of Wachovia Bank and American Credit Corp.) and Granite Bank in automobile financing and consumer lending in the Western Urban Complex will be eliminated ; concentration of commercial banking resources in the Western Urban Complex will be increased and additional acquisitions of leading local banks by large banking organizations in North Carolina may be fostered, thereby further increasing concentration. United States v. The First National Bank of Platteville, et al. (18). On January 12, 1973, a civil suit was filed in U.S. District Court for the Western District of Wisconsin challenging the proposed merger of two commercial banks in Platteville, Wis., the First National Bank of Platteville and The Mound City Bank. The complaint alleged that the merger would violate section 7 of the Clayton Act by eliminating existing competition between the two banks in Platteville and the surrounding area. The First National Bank of Platteville holds approximately 29 percent of the total commercial bank deposits in the city of Platteville. Mound City Bank holds approximately 33 percent of such deposits. If the merger were consummated, the resulting bank would thus hold about 62 percent of the total deposits in Platteville commercial banks. In the broader Platteville area, Mound City holds the largest share of deposits, approximately 17 percent ($15.7 million). First National is fifth largest in the area holding about 12 percent of the deposits ($11.3 million). If merged, the new bank would hold about 29 percent of the area’s deposits. The complaint alleges that commercial banking is highly concentrated in both the city and area of Platteville. The proposed merger, it was charged, would eliminate existing competition between the two banks and would also unnecessarily increase the concentration of commercial banking in the Platteville area. Patents The Patent Section continued its active program of litigation challenging restrictive patent licensing practices and its numerous investigations into fraudulent procurement of patents. In addition, two important patent cases involving the Division were favorably decided in the Supreme Court. In United States v. Glaxo Group Ltd. (19) the Court sustained the Government’s right to challenge the validity of a patent in cases where such patent is used to effectuate an allegedly anticompetitive scheme. The Court also upheld the Government’s right to secure compulsory licensing 105 and sales relief if necessary to bring about competitive conditions in a market previously affected by illegal restrictions in the licensing of patents. In Gottshalk v. Benson and Tabbott (20) the Court held that a system of converting numerical information from binary-coded-decimal numbers into pure binary numbers for use in computer programming was unpatentable. In addition to litigation and investigatory work, personnel from the Division—and particularly the Patent Section—were heavily involved in an executive branch task force charged with drafting a patent reform bill for the Administration. Work on this legislative proposal, which consists of a complete revision of Title 35 of the United States Code, was nearing completion at the end of the year. The resulting Administration bill—the Patent Reform and Modernization Act of 1973—is expected to be transmitted to Congress with a Presidential message and introduced early in fiscal 1974. Action on Previously Filed Cases In addition to the patent cases just discussed, a number of other significant cases filed by the Division in earlier years were concluded during the year. Several of the most important developments are described below. Tidewater Oil Co. v. United States (21). On December 6, 1972, the Supreme Court affirmed a decision of the Court of Appeals for the Ninth Circuit refusing to consider an interlocutory appeal which the district court had certified under 28 U.S.C. § 1292(b). The Court held that the Expediting Act, 5 U.S.C. § 29, necessarily eliminated court of appeals jurisdiction over appeals from interlocutory as well as final decrees in Government civil antitrust cases. California-Pacific Utilities Co. v. United States (22). On March 5, 1973, the Supreme Court summarily affirmed an order approving a plan for the divestiture of certain assets of El Paso Natural Gas Co. pursuant to a 1964 decision holding that the acquisition of Pacific Northwest Pipeline Corp, violated section 7 of the Clayton Act. The Supreme Court had previously set aside two successive divestiture plans approved by the district court. Several appellants urged the Court to permit El Paso to retain the assets it had illegally acquired because of the current natural gas shortage. The Government urged the Court to affirm the divestiture decree and its position was sustained. United States v. Otter Tail Power Co. (23). On February 22, 1973, the Supreme Court affirmed a district court decision holding that Otter Tail violated section 2 of the Sherman Act by refusing to sell or wheel electric power to proposed municipal electric systems in order to prevent communities from replacing Otter Tail’s retail power distribution systems. The Court rejected Otter Tail’s contention that the Federal Power Act superseded the antitrust laws with respect to interconnections among sellers and buyers of wholesale electric energy. The Court vacated a portion of the district court’s order and directed the lower court to reconsider whether Otter Tail should be enjoined from instituting or supporting litigation to prevent the establishment of municipal power systems in the light of California Motor Transport, Inc. v. Trucking Unlimited (24), which the Supreme Court had decided the previous term. That case held that efforts to influence governmental action through judicial proceedings which are not initiated as a sham to suppress competition are exempt from the antitrust laws. United States y. Falstaff Brewing Corp. (25) and United States v. First National Bancorporation, Inc. (26). On February 28, 1973, the Supreme Court reversed a judgment dismissing a complaint challenging Falstaff Brewing Corp.’s acquisition of Narragansett Brewing Co. and affirmed a judgment dismissing a complaint challenging the acquisition of the First National Bank of Greeley by First National Ban corporation. Both complaints alleged that the acquisitions violated section 7 of the Clayton Act by eliminating potential competition in the markets served by the acquired firms. The district court decision in First National Bancorporation was affirmed without opinion by an equally divided court. In Falstaff, the district court found that Falstaff was not a potential competitor because the Falstaff management had decided not to attempt to enter the market unless it could acquire an existing brewery with a strong distribution system. The Supreme Court held that the district court erred as a matter of law in failing to consider “whether Falstaff was a potential competitor in the sense that it was so positioned on the edge of the market that it exerted beneficial influence on competitive conditions in that market.” The Court remanded the case for consideration of that question. United States v. The Greyhound Corporation, et al. (27). On June 27, 1973, Chief Judge Robson of the Northern District of Illinois, issued an opinion holding Greyhound Corp., and Greyhound Lines, Inc., guilty of five counts of civil and criminal contempt and three executives of Greyhound guilty of civil contempt. In 1969, in a case in which the Public Counsel and Legislative Section of the Antitrust Division intervened on the side of complainant, Mt. Hood Stages, Inc., the ICG held that Greyhound was illegally injuring Mt. Hood Stages and the traveling public by refusing to quote shorter, faster interline service with Mt. Hood or to show Mt. Hood service on Greyhound maps or schedules, and that such conduct by Greyhound was inconsistent with the representations it had 106 made to the ICC when it acquired certain bus companies in the Northwest‘in the late 1940’s and thereby surrounded Mt. Hood’s routes throughout central Oregon. Greyhound appealed the 1969 ICC order and the U.S. counterclaimed, urging that the three-judge court should not only affirm the ICC order but also issue its own injunction against the continuation of Greyhound’s objectionable practices. On February 5, 1970, the three-judge court affirmed the ICC order and issued its own ten-paragraph injunction. In June of 1969, the Judgments and Judgment Enforcement Section of the Division and Bureau of Enforcement of the ICC filed these civil and criminal contempt actions against Greyhound, charging that respondents had violated or were violating eight of the ten paragraphs of the court order. Judge Robson concluded that as to five paragraphs of the court order, there had been both criminal and civil contempt and that contempt as to three paragraphs of the order was continuing. The court found that Greyhound had been unreasonably tardy in correcting its maps and schedules, had not negotiated in good faith to improve connections with Mt. Hood Stages, had failed to take adequate steps to insure that Greyhound agents and information clerks quoted shorter, faster interline service with Mt. Hood, and had unilaterally adopted strained interpretations of the order without seeking guidance from the court. In particular, Judge Robson found that Greyhound’s program of compliance with the earlier court order was unacceptable. The court held, as the Government had argued, that Greyhound’s contempt as to quoting service lay not in the weakness of its compliance program but in the fact that ICC telephone checks revealed scores of instances in which Greyhound agents and clerks had failed to quote relevant interline service and instead urged the callers to take longer and slower all-Greyhound routes. The inadequacies of Greyhound’s compliance program were pointed out merely in rebuttal of its defense that it had done everything possible to insure its employees’ compliance with the court’s mandate. The court found guilty of civil contempt not only those Greyhound executives who ordered specific policies which interfered with compliance, but also Greyhound’s president, who allegedly simply did nothing in regard to the question of compliance. The court ruled that a responsible corporate executive cannot avoid a contempt citation by avoiding all contacts with the compliance program of his company. The court deferred for further hearings the question of appropriate civil and criminal sanctions for the contempt. Foreign Activities In addition to its investigatory work directed at corporate activities tending to restrain free competition as to America’s import and export trade, the Foreign Commerce Section continued its program of notification and cooperation with Canada and the other members of the Organization for Economic Cooperation and Development (OECD). Semi-annual meetings of the OECD Restrictive Business Practices Committee were held in November and April. Many topics were discussed at these meetings, but special attention was given to the need for increased antitrust enforcement and legislation, internationally, as a restraint on inflation, and to the possibilities of increased cooperation in international antitrust enforcement. There was considerable discussion of the antitrust aspects of patent licensing arrangements. Antitrust actions instituted by OECD member countries were reviewed. The Division also participated in several meetings of working parties of the Restrictive Business Practices Committee of the OECD. These working parties produce summaries and recommendations concerning particular international competitive problems such as multinational corporations, transnational mergers, export cartels, and government procurement policy. The Division noted an increasing number of instances of enforcement actions by foreign countries against acts taking place outside their borders but which have anticompetitive effects within their own territory. In addition to its normal casework and activities regarding international cooperation, the Division has been increasingly active in its role as advocate for pro-competitive policies in U.S. foreign commerce before other agencies of the U.S. Government. Principal activities of this kind concern Tariff Commission proceedings, antidumping enforcement, and oil import policy. The Division has, through its Foreign Commerce Section, presented its views to the Tariff Commission and the Office of the Special Trade Representative in proceedings under section 337 of the Tariff Act of 1930, which provides for temporary and permanent exclusion of imports. These include: (1) filing of a brief with the Tariff Commission arguing against the permanent exclusion of the drug Ampicillin (a temporary exclusion having been denied by the President earlier), and (2) participating in pending section 337 proceedings involving the drugs meprobamate and furazolidone. The Division also appeared before the Tariff Commission and the Office of the Special Trade Representative to present views on competitive aspects ■ of investigations to limit imports under the escape clause of the Trade Expansion Act of 1962 and the Agricultural Adjustment Act. Products involved in such proceedings during the past year include ball bearings, mushrooms, and marble. In antidumping proceedings, the Division has filed briefs and proposed changes in the existing regulations with the objective of preserving fair import competition as sanctioned by law, as 107 525-134 O -74-8 well as having appeared before the Tariff Commission in antidumping investigations. The establishment of the Oil Policy Committee during 1973, on which the Division represents the Department of Justice, has involved substantial efforts with a view toward moderating the effects of import controls on competition within the United States. Regulatory Proceedings In an effort to maintain as competitive an economy as possible and recognizing that Government regulation affects ten percent of the Nation’s gross national product, the Division participated in a number of actions before many of the Federal regulatory agencies to present procompetitive arguments. At the end of 1973, the Division was participating in 30 pending proceedings before the following agencies; Atomic Energy Commission, Federal Maritime Commission, Civil Aeronautics Board, Interstate Commerce Commission, and Securities and Exchange Commission. The Atomic Energy Act requires that all applications for licenses to construct and operate nuclear power plants be referred to the Attorney General for antitrust advice. If the Attorney General so recommends, the AEC is required to hold a hearing on antitrust issues. Since December of 1970, the Division has received from the AEC 43 license applications. Through the end of 1973, the Division has provided detailed letters analyzing the competitive effects in 35 of these cases. Applications by five electric utilities were involved in proceedings before AEC hearing boards in which the Department had an active role during the year 1973. These concerned Consumers Power Co.’s Midland units; Duke Power Co.’s McGuire and Oconee units; Georgia Power Co.’s Hatch and Vogtle units; Alabama Power Co.’s Farley units; and Louisiana Power & Light Co.’s Waterford unit. In each of these proceedings, the Division has advised the AEC that the applicant’s activities under the requested license would maintain a situation inconsistent with the antitrust laws. Before the Civil Aeronautics Board, the Division has participated in various phases of the general passenger fare investigation urging, among other things, that a zone of reasonableness be established within which fare flexibility would be permitted in order to introduce more price competition to the airline industry. The Division also participated in the air carrier reorganization proceeding and in a number of other matters before the Board. The Division also entered the Interstate Commerce Commission investigation of rate bureaus. This is the first inquiry since enactment of the Reed-Bulwinkle Act in 1949 into the operations of the conferences of carriers through which rates charged the public are jointly established by the carrier-members. The Di vision requested the ICC to require a number of conferences and carriers to produce documents concerning rate-fixing activities. In the ocean shipping area, the Division has intervened in the Federal Maritime Commission proceeding concerning the Hawaiian rate agreement. This represents the first attempt by carriers serving the U.S. mainland-Hawaii trade route to establish rates through conference rate-fixing procedures. Consumer Protection The Division was actively engaged during 1973 in enforcing the principal consumer protection statutes (e.g. The Federal Food, Drug, and Cosmetic Act, the Hazardous Substances Act, the Federal Trade Commission Act, the Fair Credit Reporting Act, and the Consumer Product Safety Act). The Division was successful this year in defending the Food and Drug Administration’s drug efficacy study implementation program to remove ineffective drugs from the marketplace. In June 1973, the U.S. Supreme Court held that the agency had authority to determine the status of marketed drugs and could apply summary judgment-type procedures to remove drugs found to be ineffective. These decisions allow expedited administrative determinations and procedures to deal with ineffective drugs that are not voluntarily removed from the market (28). In a landmark appellate decision, United States v. Article of Drug . . . “White Quadrisect” (29), the Seventh Circuit upheld the constitutionality of the provisions of the Food, Drug and Cosmetic Act requiring drug manufacturers to manufacture their drugs in accordance with current good manufacturing processes. A number of large food wholesalers and warehousers were also successfully prosecuted for unsanitary facilities. These suits for criminal violations of the Food, Drug and Cosmetic Act resulted in the imposition by the courts of more than $129,000 in fines and penalties against the offending companies. In actions to obtain civil penalties for violations of Federal Trade Commission cease and desist orders, a district court in New York imposed civil penalties in excess of $800,000 against the J. B. Williams Co. and its advertising agency for commercials for “Geritol” (30). Settlements or judgments were obtained in other civil penalty actions totaling approximately $80,000. The Division has also worked closely with the Federal Trade Commission, the Federal Reserve Board, Treasury Department, and individual U.S. Attorneys’ offices to develop a unified enforcement of the Truthin-Lending Act and to identify violations of the act appropriate for criminal prosecution. During the year, the Division successfully prosecuted the first three criminal cases under the statute. 108 Legislative Reports and Other Interagency Activity The Assistant Attorney General in charge of the Division, or his representative, made eight appearances before congressional committees for the purpose of giving testimony on matters of concern to the Division. Division personnel prepared 188 reports relating to proposed or pending legislation, and answered 633 letters of inquiry from Members of Congress. Division personnel also assisted other departments and agencies with their legislative programs. During the year, reports on the Interstate Oil Compact and the Defense Production Act were also submitted to Congress. The Division answered numerous inquires from other executive departments and furnished reports to other agencies in connection with such subjects as bank mergers and bank holding company acquisitions, patent matters, and advice to other agencies as to competitive implications in 50 matters concerning proposed disposal of surplus Government property. Members of the Division staff have continued active participation in various interagency committees, including the Committee on Government Patent Policy, the Restrictive Business Practice Committee of the Organization for Economic Cooperation and Development, and the Oil Import Appeals Board. Business Review Procedure Although the Department is not authorized to give advisory opinions to private parties, the Division, in certain circumstances, reviews proposed business plans for private firms and states its present enforcement intentions. Under the business review procedure (31), a request for a business review letter is submitted in writing to the Assistant Attorney General in charge of the Division. The requesting parties are considered to be under an affirmative obligation to submit complete information on the proposed business conduct. This information may be supplemented with additional investigations by Division personnel. After a review of the request, a letter will be sent to the parties which may: (a) state the Division’s present enforcement intentions with respect to the proposed conduct; (b) decline to pass on the request because of insufficient information or for other reasons; or (c) take such other position or action as is considered appropriate. When a business review letter states that the Division does not presently intend to bring suit against the proposed conduct, the letter includes the provision that the Division reserves the right to take action in the future if other evidence or subsequent developments warrant it. During the past year, the Division received 12 requests for business review letters. Years Comparative Summary of Workload Statistics by Fiscal Years, Antitrust Division Antitrust cases: Filed........................ Appealed________________ Terminated.............. Pending_________________ Consumer affair proceedings: Pending beginning of year________________________ Instituted______________ Terminated______________ Pending end of year_____ Investigations: Pending beginning of year................... Instituted.............. Terminated______________ Pending end of year_____ Administrative law cases: Instituted______________ Terminated.............. Pending_________________ Miscellaneous proceedings... 1966 1967 1968 1969 1970 1971 1972 1973 44 53 50 53 59 64 87 62 10 5 4 5 5 7 7 2 . 55 61 78 47 60 54 56 171 . 133 125 97 103 102 112 143 134 395 856 525 2 726 567 590 644 692 710 678 758 449 444 446 555 516 562 437 426 390 398 537 548 482 422 590 644 692 710 678 758 773 236 208 342 195 208 197 211 183 236 378 201 205 175 185 238 220 184 178 181 203 229 248 277 242 371 409 515 508 257 257 229 3 523 773 455 452 776 726 1,265 878 1,113 Comparative Analysis of Antitrust Cases Filed by Fiscal Years 1966 1967 1968 1969 1970 1971 1972 1973 Cases filed: 42 20 Civil Criminal 32 12 36 17 40 10 39 14 54 5 52 12 72 15 Total 44 53 50 53 59 64 87 62 Cases filed involving price fixing: Civil 14 26 9 10 15 14 31 19 Criminal 12 16 10 13 4 9 14 19 Total 26 42 19 23 19 23 45 38 Merger cases filed 14 7 20 26 15 24 19 16 Of which there were bank merger cases numbering... 4 1 7 12 5 8 9 3 Monopolization cases filed: Civil 5 6 3 3 11 15 13 5 Criminal 0 0 1 2 0 2 1 1 Total 5 6 4 5 11 17 14 6 Individuals indicted 43 70 48 28 14 34 24 42 1 There were 8 additional cases where a decree was signed by 1 or more but not all defendants and cases were settled but not terminated due to 30 day waiting period. 2 Adjusted figure due to inability to reconcile statistics with Food and Drugs Administration. 3 Miscellaneous proceedings include intervention in merger proceedings, surplus property clearance, statutory advice to financial regulatory agencies in merger cases, reports to defense agencies, reports to AEC on nuclear powerplant licensing, FTC litigation, reports to CAB and appearances in other agency, interagency and intergovernmental proceedings. 109 Workload Statement—Antitrust Division Antitrust cases Fiscal years 1966 1967 1968 1969 1970 1971 1972 1973 District Courts: Civil Pendingfirst of year... Filed________________ Terminated___________ Won.............. Lost_____________ Dismissed________ Pending end of year... Criminal: Pendingfirst of year... Filed________________ Terminated___________ Won______________ Lost_____________ Dismissed________ Pending end of year... Court of Appeals: Pending first of year____ Filed____________________ Terminated_____________ Won__________________ Lost................. Dismissed____________ Pending end of yearl_____ Supreme Court: Pending first of year____ Filed____________________ Terminated_______________ Won__________________ Lost_________________ Pending end of year______ 118 32 35 25 3 7 115 26 12 20 17 2 18 3 2 2 0 0 2 115 36 52 47 0 5 99 18 17 9 9 0 0 26 2 2 0 0 6 4 6 5 99 75 83 88 96 124 40 39 54 52 72 42 64 31 49 44 44 50 59 30 43 42 41 44 3 1 4 1 1 5 2 0 2 1 2 1 75 83 88 96 124 116 26 22 20 14 16 19 10 14 5 12 15 20 14 16 11 10 12 21 13 16 10 9 12 17 1 0 0 1 0 3 0 0 1 0 0 1 22 20 14 16 19 18 1 1 2 4 2 3 1 4 3 4 2 1 1 3 1 6 1 3 1 0 1 3 1 3 0 1 0 3 0 0 0 1 0 0 0 0 1 2 4 2 3 1 4 2 0 1 4 5 3 1 2 4 5 1 5 3 1 1 4 5 4 3 0 1 3 4 1 0 0 0 1 1 2 0 1 4 5 I 3 7 2 2 6 2 4 CASES CITED (7) Cr. 748-72. (2) 72 Cr. 67 D. (3) Cr. R—14, 482; United States v. Len Harris Wholesale Meats, Inc., Civ. R-2735. (4) Civ. 18173. (5) 72 Cr.-1010. (6) Civ. 20632-2. (7) 73 Civ. 347. (8) Civ. 7635-B. (9) Civ. 2412-72. (70) Civ. 73 C 1085. C77) Civ. 338-73. (72) 73 Civ. 2608. (73) Civ. 72-2901. (74) Civ. 17573. (75) 73 Civ. 1806. (76) Civ. 4667. (77) Civ. St. C-72-40. (78) Civ. 73-C-ll. (79) 410 U.S. 52. (20) 409 U.S. 63. (27) 409 U.S. 151. (22) 410 U.S. 962. (23) 410 U.S. 366. (24) 404 U.S. 508 (1972). (25) 410 U.S. 526. (26) 410 U.S. 577. (27) Civ. 69-C-l 148; Cr. 71 Cr. 924. (28) USV Pharmaceutical Corporation v. Caspar W. Weinberger, Secretary of Health, Education, and Welfare, and Charles C. Edwards, Commissioner of Food and Drugs, 412 U.S. 640 (1973); Hynson, Westcott & Dunning, Inc. v. Caspar W. Weinberger, etc., 412 U.S. 609 (1973); Caspar W. Weinberger, etc. v. Hynson, Westcott and Dunning, Inc., 412 U.S. 609 (1973); CIBA Corporation v. Caspar W. Weinberger, etc., 412 U.S. 640 (1973) ; Caspar W. Weinberger etc. v. Bentex Pharmaceuticals, Inc., et al., 412 U.S. 645 (1973). (29) No. 72-1349. (30) United States v. ]. B. Williams Co., 354 F.Supp. 521 (S.D.N.Y. 1973). (37) 28 CFR seciton 50.6. 110 Land and Natural Resources Division The Land and Natural Resources Division is responsible for all suits and matters of a civil nature relating to real property, water, and other related natural resources, the outer continental shelf and protection of the environment. These matters encompass condemnation proceedings for the acquisition of property, actions to remove clouds and quiet title, recover possession and damages, determine boundaries, cancel patents, set aside ad valorem taxes and tax sales, establish rights in minerals, including mineral leases in oil reserves and other natural resources, establish water rights and protect water resources, abate water, air, and noise pollution, defend actions for compensation for the claimed taking by the United States of real property or any interest therein and defend actions seeking to establish an interest in real property adverse to the United States. The Division is charged with representing the interests of the United States in all civil litigation pertaining to Indians and Indian affairs, including the defense of Indian claims against the United States, whether in the Court of Claims or before the Indian Claims Commission. It defends officers of the United States, handles injunction and mandamus proceedings and litigation arising from contracts whenever those matters affect the rights of the United States in the use or title to its real property, as well as suits against Government officers arising out of the National Environmental Policy Act. It is also responsible for criminal prosecutions for air, water, and noise pollution. The work of the Division is carried on through eight Sections and a Legislative Assistant. Pollution Control Section One of the primary activities of the Pollution Control Section—the abatement of water pollution under the Refuse Act—was fundamentally affected by the enactment of the Federal Water Pollution Control Act Amendments of 1972. Section 402 (k) provides that any discharge which is the subject of an application filed either under the old Refuse Act permit program or the new statute shall not be deemed to be in violation of the Refuse Act until December 31, 1974, or such earlier time as final unfavorable administrative disposition of the application has been made. Since approximately 50,000 applications for discharge permits have been filed—and these embrace every major continuing discharge in the United States—the administrative processing of these applications has not been rapid. The effect of section 402 (k) is to prevent the filing of additional civil actions under the Refuse Act to enjoin any continuing industrial discharges of consequence into the navigable waters of the United States. This provision also precludes bringing a criminal action under the Refuse Act against any discharge covered by a pending application, although, of course, isolated or accidental discharges which, by their very nature, would not be the subject of an application for a permit, remain subject to prosecution. The inevitable result of this provision was to bring the filing of new actions under the Refuse Act almost to a complete halt. As the attached table shows, only 36 civil actions and 106 criminal actions were initiated during 1973. Although the number of new suits declined, the prosecution of actions already filed was pursued. A suit against Rohm and Haas (7) to enjoin discharges of refuse into the Houston Ship Channel resulted in a court order requiring the company to limit its discharges to amounts which the Government had indicated would prevent the violation of water quality standards. A major obstacle which had to be overcome in securing this ruling was the contention by the defendant that all actions brought under the Refuse Act and pending on the date of the enactment of the Fed 111 eral Water Pollution Control Act amendments automatically abated by virtue of section 402 (k). This contention was rejected by the court in the Rohm and Haas case and subsequently by district courts in Illinois and Indiana. These decisions were instrumental in enabling the government to negotiate consent decrees in 19 other cases, some of which—such as those involving the United States Steel plant and the United States Pipe & Foundry Co. in Birmingham, Alabama, the du-Pont Chemical Co. in Gary, Indiana, and the Marcal Paper Co. plants in Maine and Massachusetts—were of major importance. The decision of the Supreme Court in United States v. Pennsylvania Industrial Chemical Corp. (2) was also essential to preserving the potency of the Refuse Act and thus the civil and criminal actions pending as of the date of the passage of the Federal Water Pollution Control Act amendments. The Supreme Court held that the prohibition of the Refuse Act against discharges into navigable bodies of water is not contingent upon the establishment under that statute of a formalized program for issuing permits thereby reversing the decision of the Third Circuit Court of Appeals which had held to the contrary. Thus one difficulty was removed from continuing with the trial of a major water pollution abatement case—an action to enjoin the Reserve Mining Company (3) from discharging 67,000 tons of taconite tailings into Lake Superior each day. However, it should be noted that the Government’s claims for relief in the Reserve case are based not only upon the Refuse Act but also upon proceedings held under the old Federal Water Pollution Control Act as well as upon the Federal common law. The latter basis seems warranted by the Supreme Court’s opinion in Illinois v. City of Milwaukee (4) and by the holding of the District Court for the District of Vermont in United States v. Bushey (5). The States of Minnesota, Michigan, Wisconsin and a number of environmental organizations have intervened as plaintiffs in the Reserve case. A number of local governments, businesses, and labor organizations have intervened on behalf of the defendant. Intensive pretrial discovery involved taking over 120 depositions and disclosed that the water of Lake Superior is infused with short asbestos-like fibers which might, upon ingestion, be carcinogenic. One other major water pollution abatement case in which the United States is involved is Vermont v. New York (6), an original action brought in the Supreme Court by the State of Vermont to abate discharges into Lake Champlain from the International Paper Co.’s paper and pulp mill in New York State and to require the removal of sludge beds created over the years by these discharges. At the request of the Environmental Protection Agency, the Government moved to intervene in order that the Court have readily ac cessible the Agency s studies and conclusions with respect to the possible environmental impact of the removal of the sludge beds. The motion to intervene was granted in January 1973. While the Federal Water Pollution Control Act Amendments presently preclude litigation under the Refuse Act to abate pollution, they establish, as does the Clean Air Act upon which they are modeled, a comprehensive regulatory scheme for the administrative control of sources of pollution. Both acts require the establishment of levels of water and air quality to be achieved by the Environmental Protection Agency. The Federal Water Pollution Control Act amendments are couched in terms, basically, of effluent limitations which are to be effected through the issuance of discharge permits. The Clean Air Act is couched in terms of national ambient air quality standards which are to be achieved through the promulgation of state implementation plans and regulations requiring automobile manufacturers to produce engines with acceptable emission control devices or systems. It is through the enforcement of the terms of water discharge permits, state implementation plans, and engine emission limitation regulations, that pollution is to be abated. Both the air and water statutes provide for judicial review directly in appellate courts of the guidelines, standards, state implementation plans, and water discharge permits prepared, promulgated or issued by the Administrator. Both statutes authorize citizens to file suits to enforce those standards or limitations or to require the Administrator of the Environmental Protection Agency to perform any act which the statutes do not leave to his discretion. Because the Federal Water Pollution Control amendments are so new, there has been relatively little litigation under their judicial review or citizen’s suit provisions. However, in view of the large number of standards, guidelines, limitations, and regulations which the Environmental Protection Agency must establish and the pendency of 50,000 permit applications, each of which may be the subject of a petition for review in the courts of appeal, it is expected that vast numbers of petitions for review will be filed. Furthermore, those standards and permits surviving the judicial review process will be the basis for scores of citizen’s suits to enforce their provisions and terms. Litigation of this type is already arising under the Clean Air Act and forms a major portion of the Section’s work. Approximately 75 petitions to review actions of the Administrator—mostly in approving or disapproving portions of state implementation plans— were filed during the year. Working under the supervision of the Appellate Section, personnel from this Section handled approximately 50 of these petitions. Because the standards and limitations of the Clean Air Act, are for the most part yet to be established, 112 LAND AND NATURAL RESOURCES DIVISION ASSISTANT ATTORNEY GENERAL DEPUTY ASSISTANT ATTORNEY GENERAL GENERAL LITIGATION SECTION LAND ACQUISITION SECTION INDIAN CLAIMS SECTION ADMINISTRATIVE SECTION MARINE RESOURCES SECTION APPELLATE SECTION LEGISLATIVE ASSISTANT APPRAISAL SECTION POLLUTION CONTROL SECTION few citizen’s suits were filed. Most were actions by state or local governments to require Federal installations to secure state permits for air emissions. In State of California v. Stastny (7), a district court held that the Clean Air Act does not require Federal agencies to apply for or obtain permits for air emissions from state air pollution control agencies, a holding followed in Puget Sound Air Pollution Control Agency v. United States (8), Alabama v. Seeber (9), and Kentucky v. Ruckelshaus (10). The number of citizen’s suits filed to require the Administrator to take some nondiscretionary action also was small. One suit, however, resulted in a decision of great importance. Sierra Club v. Ruckelshaus (11) was an action to require the Administrator to perform the allegedly nondiscretionary duty of disapproving all state implementation plans not prohibiting the significant degradation of air in those portions of the country where the quality of air is already better than the quality sought to be achieved by the national ambient air quality standards. The court issued the requested order which was affirmed per curiam by the court of appeals and reaffirmed by the Supreme Court. This decision will doubtless have profound economic and demographic consequences for the country in view of the fact that it may preclude substantial industrial develpment of, or the migration of people into areas of the country which now have high quality air. Both the Federal Water Pollution Control Act amendments and the Clean Air Act authorize the courts to award, when appropriate, reasonable attorneys’ and expert witness’ fees to any party. The Sierra Club seeks an award of $100,000 from the Environmental Protection Agency for attorneys’ fees in the “nondegradation” case, the first such claim presented under either statute. Although there was no litigation during the year to enforce federally approved implementation plans under the Clean Air Act due to the extensive judicial review to which such plans were being subjected, there was one major action to enforce the regulations relating to the control of emissions from automobile engines. In this proceeding the Ford Motor Company was charged with 700 instances of unauthorized maintenance on engines which were in the process of being tested for compliance with the emission limitations of the act and 350 instances of failure to report the unauthorized maintenance. The district court in Detroit accepted a nolo contendere plea to the criminal informations and fined Ford $3,500,000. Simultaneously a consent decree requiring the payment in civil penalties of an additional $3,500,000 was entered. Both the civil and criminal penalties were paid the following day. Finally, this Section continued its program of litigation pursuant to Section 10 of the River and Harbor Act of 1899 to protect wetlands from the unauthorized dredging and filling operations of real estate developers. Impetus was provided by the passage of the Coastal Zone Management Act on October 27, 1972, 113 which, while containing no specific provisions for enforcement, declared it to be “the national policy * * * to preserve, protect, develop, and where possible, to restore or enhance, the resources of the national coastal zone for this and succeeding generations.” In almost all coastal states, civil suits, seeking either injunctions against filling in of wetlands, or compelling their restoration (the availability to the United States of restorative relief under section 10 was firmly established by the Fifth Circuit in United States v. Moretti (12), and criminal actions, seeking fines for unauthorized dredging and filling, were filed. One of the civil actions, United States v. Sunset Cove (13), resulted in the. significant holding that a bank constructed so that it restricts the usual migrations of river channel near its mouth may be removed, even though the bank, when constructed, was completely above the ordinary high watermark of the river as it existed. This decision, now on appeal, could provide the Government with a substantial legal weapon to preserve river deltas and esturaine areas. Land Acquisition Section During the year, 549 new condemnation actions were filed to acquire 3,026 tracts of land for the use of Federal departments and agencies. Final judgments were obtained in 476 cases, including the acquisition of 6,307 tracts of land. This was an increase of 1,764 over the number of tracts closed in the previous year. There were 1,940 condemnation cases pending at the end of this year involving 10,751 tracts of land. Since there were 14,032 tracts pending in condemnation proceedings on June 30, 1972, the pending tracts were reduced by a total of 3,281. One of the major goals of the Section is to reduce the condemnation caseload by at least 700 tracts each year, down to a total of 9,000. Such reduction is not only of primary benefit to the Government because it also reduces the amount of interest paid, but is also a service to the citizenry to whom just compensation is more expeditiously paid for their property condemned for public purposes. The Section rendered 6,985 title opinions relating to lands being acquired by direct purchase. This was an increase of 1,022 opinions over the number rendered in the previous year. The lands included in the closed cases and purchases totaled 248,783.83 acres and were acquired at a total cost of $111,027,454.13. By reason of the continued emphasis which has been given during this and previous years to the trial training program, a greater number of younger attorneys have participated in trials this year. At the close of the fiscal year, trial attorneys of the Section were acting as counsel or co-counsel with the U.S. attorneys for 5,510 tracts in pending condemnation proceedings. Appraisal Section In 1973 the Appraisal Section analyzed 2,192 appraisal reports involving 2,454 tracts and participated in 417 compromise settlements. In addition, a total of 544 memorandums were written to complete the workload of 921 cases processed. Indian Claims Section The exclusive function of the Indian Claims Section is the defense of claims brought by Indian Tribes under the Indian Claims Act. The most important development affecting Indian claims litigation during the year was the congressional apipropriation of $1,-800,000 for the purpose of reactivating the accounting unit of the General Services Administration which develops information necessary to try in excess of 40 accounting cases pending before the Indian Claims Commission. Under recent decisions, the Government must supply greatly expanded information concerning pre-1946 receipts and expenditures of tribal funds and, in some instances, account for post-1946 expenditures and disbursements. During the year, the Indian Claims Commission issued 81 formal opinions or orders. However, most of these were procedural or nonsubstantive orders. The Commission wrote 12 valuation decisions involving 14 cases. It rendered three decisions holding that tribes held title to lands by virtue of treaties. It also rendered five decisions holding that 30 tribes had recognized Indian title and were entitled to recover the fair market value of the land in each instance. The Commission dismissed 11 cases and rendered final judgments in the amount of $31,726,374.23 in 30 cases. Of these, 19 judgments resulted from settlements made by this Section amounting to $15,516,054.50. There were 13 appeals to the Court of Claims during the year and the court handed down 12 decisions. From its inception in 1946 to June 30, 1973, the Indian Claims Commission has rendered final judgments against the United States aggregating $441,004,-848.28. General Litigation Section The National Environmental Policy Act of 1969 has continued to spawn an increasing quantity and variety of environmental litigation. During the year, 120 new cases were received and 66 were closed, leaving 188 pending at the end of the year. This litigation seeks court determination as to whether Federal agency activities are in compliance with the act. More than 35 actions were brought challenging the Federal aid program administered by the Federal Highway Administration. Several projects of the Corps of 114 Engineers and the Department of the Interior were the subject of litigation involving compliance with the Act. Probably the most publicized case, because of its bearing on the energy crisis, involved enjoining construction of a pipeline across Alaska to bring North Slope oil to the lower 48 states. The court refused to enjoin construction, finding the pipeline authorized by the applicable public land statutes and the environmental impact statement in accordance with the requirements of the Act. The court of appeals reversed (14), holding that the Secretary of the Interior was not authorized to issue a permit for a right-of-way of the width required for its construction but did not pass upon the adequacy of the impact statement. The result was that the issue of construction of the pipeline was transferred from the courts to Congress where proposed legislation was pending at the end of the fiscal year. Litigation continued during 1973 involving Federal oil leases in the Santa Barbara Channel off California. In Union Oil v. Morton (15) the court determined that the Secretary of the Interior acted within the scope of his authority in denying Union Oil’s application to place an additional production platform on the company’s lease. Plaintiffs have appealed that decision. In 1971 the Secretary of the Interior suspended a number of oil and gas leases in the Santa Barbara Channel to permit Congress to consider legislation to purchase back the leases. In Exxon v. Morton (16) plaintiffs have challenged the authority of the Secretary to issue the 1971 suspension order. In Mobil Oil Corp., et al. v. Morton (17) a second suspension order issued in 1973 has been challenged. Both cases are being held in abeyance pending an appeal in Gulf Oil v. Morton (18). In that case the trial court held the Secretary had acted without authority in promulgating the 1971 suspension order. A number of conservation organizations and other public interest groups brought an action (19) against the Secretaries of Interior, Agriculture, and Army and several officials of those Departments to obtain a declaratory judgment and an injunction restraining the further processing of coal prospecting permits, mining leases and mining plans, and to enjoin execution of contracts governing water rights and permits for interests in public lands of the United States in Montana, Wyoming, North Dakota, and South Dakota, unless a comprehensive environmental impact statement is prepared and filed. Plaintiffs contend that further development of the areas in the four states will cause irreparable harm to the environment and seek to prevent further mining of coal and the construction of powerplants, coal gasification, and related plants. Existing mining leases covering literally thousands of acres of public lands and lands within Indian reservations will be affected. Approximately 35 coal mining and power companies have interests in the long-term development of the four-state area which contains one of the richest known coal deposits. The increase in litigation involving rights of Indians, noted in previous years, continued during the year. The number of cases pending at the beginning of the year was 261 and at the close of the year 300, or an increase of 15 percent. Under 28 U.S.C. 2415(b), Congress provided a six-year statute of limitations on certain types of Indian claims, including trespass on Indian lands. The six-year period expired July 18, 1972, and a number of requests for actions were received during the last few days prior to expiration. Most of the requests involved claims which had existed for long periods of time, some more than 150 years. Congress later extended the statutory period until July 18, 1977. The Alaska Native Claims Act of 1971 authorized payment over a period of years of almost $1 billion to the natives in addition to the creation of 40 million acres of land reservations. The act also authorized the payment to native associations of actual costs of advancing the land claims settlement legislation up to a maximum of $600,000 and payment of attorneys’ fees and expenses up to $2 million, such claims to be paid upon approval by the Chief Commissioner of the Court of Claims. There were 6 claims by native associations, totaling $1,531,846.72, and 29 claims for attorneys’ fees, totaling $7,254,055.60, have been filed and are now being processed by the Commissioner. A group of Natives on the Alaska North Slope brought suit (20) against the Secretary of the Interior claiming that all selections of public land made by the State of Alaska on the North Slope which interfered with the Natives’ right of occupancy were void and asking that the Secretary be ordered to take steps to recover all moneys received by the state from the leasing of such selections for oil and gas development. Damages to the right of occupancy resulting from trespasses by third parties were claimed. The court found that the act validated the Alaska selections but refused to dismiss the claim based upon alleged trespasses committed prior to its enactment. One of the more complex problems in the field of water rights that has faced the Section has been Pyramid Lake located near Reno, Nevada. Pyramid Lake receives most of its water supply from the Truckee River and lies entirely within the boundaries of the Pyramid Lake Indian Reservation. Excess diversions of water from the river over a period of many years, primarily for the Newlands Reclamation project, have resulted in a 70-foot drop in the water level of the lake. The Pyramid Lake Indians filed a suit (21) against the Secretary of the Interior alleging that the Secretary was not complying with his own regulations. The court ruled that the Secretary’s operating criteria promul- 115 gated to implement the basic regulation did not fully comply with the regulation and ordered the Secretary to revise these criteria. No right has ever been adjudicated for the use of waters of the Truckee River for the maintenance of Pyramid Lake, although many of the water rights were decreed in the U.S. District Court for Nevada in 1944. The Supreme Court declined original jurisdiction in a suit brought against the States of Nevada and California seeking recognition of such right, stating that the United States could seek relief in the lower Federal courts. In other litigation 11 suits (22) were filed in the U.S. Court of Claims in 1968 by a number of natives of the U.S. Trust Territory of the Pacific to recover compensation from the United States for the asserted taking of their lands. The United States was appointed trustee of the territory by the United Nations and has administered it first through the Department of the Navy and since 1951, through the Department of the Interior. Seven of the cases were dismissed prior to March of 1973. In that month four cases were tried in Saipan and Koror. The two cases in Koror were voluntarily dismissed during the trial. The pending Saipan claims are based upon the military invasion of the area in 1944 and its subsequent administration by the Government of the Trust Territory under the auspices of the United States. By the Act of July 1, 1971 (85 Stat. 92), Congress provided for ex gratia payment of war damage claims to Micronesians occurring prior to July 1, 1951. Plaintiffs in these actions, however, while recognizing the military use of their property during the invasion, contend that takings occurred subsequent to the 1951 date. The cases present unusual problems in land tenure and difficult and complex factual issues relating to attempted land exchanges and ownership determinations by the territorial government. In the case of State of California v. Morton (23) and four companion cases, the issue of whether the State of California may impose conditions on the operation of Central Valley irrigation projects constructed within the State by the United States, where the construction and operation of the projects have been authorized by Federal legislation, is being tested. This litigation could have far-reaching effects on all Federal irrigation projects in the State of California and could involve billions of dollars in Federal and private funds. In Utah Power and Light Company v. Morton (24), the court upheld the authority of the Secretary of the Interior to impose, as a condition to granting a permit for a private utility to construct a power transmission line across public lands, a requirement that the utility transmit electric power from a Federal hydroelectric generating facility over the excess capacity of the proposed line. Marine Resources Section As in prior years, the major activity of the Marine Resources Section has been in original suits in the Supreme Court to fix Federal-state offshore boundaries. By August 1972, the evidentiary hearings and all requirements for closing the record before the Special Master in United States v. Louisiana (25) had been completed and a briefing schedule established. Briefing before the Special Master has now been completed and oral arguments will follow. The Section has filed a motion for leave to file an accounting showing the amount and categories of impounded revenues which were released to the United States pursuant to the motion of the United States for Supplemental Decree No. 3 in this case (granted on Dec. 20, 1971). The granting of the motion decreed to the United States the right to the resources of approximately 2.5 million acres in the seabed off the coast of Louisana and released to the United States approximately $1.1 billion previously impounded. The Supreme Court ordered the accounting to be filed. The rights to the resources of a considerable area of the seabed involving approximately $850 million of impounded moneys will be determined by the continuing proceedings in this litigation before the Special Master and the Court. Texas v. Louisiana (26) involves a dispute between the States of Texas and Louisiana as to the location of their shared boundary in the Sabine River and ownership of islands in that river. By its motion, Louisiana asked the Court to enlarge the reference of the Special Master to include a determination of the boundary of the States in the Gulf of Mexico. The Court referred the motion to the Special Master and invited the United States to submit its views. Since Texas’ boundary has been determined by the Court to extend considerably farther into the gulf than Louisiana’s boundary, the location of their shared boundary may affect the interests of the United States in areas of the seabed beyond that granted to the States under the Submerged Lands Act. The last of five evidentiary hearings before the Special Master in United States v. Maine (27) was concluded on January 24, 1973. After the 12 defendant states introduced five expert witnesses on their behalf, the United States introduced five of its own expert witnesses. On May 18, 1973, the State of Massachusetts filed a motion in the Supreme Court to enjoin the United States from conducting shallow core drilling proposed for the summer of 1973 on that part of the Continental Shelf which it claims in this litigation. After filing a memorandum in opposition by the Section, the Supreme Court denied Massachusetts’ motion. Negotiations to defer pending litigation before a Special Master until the conclusion of the proposed 116 U.N. Conference on the Law of the Sea were conducted without resolution during the year (28). On October 27, 1972, after learning that Texas was prosecuting Mexican vessels for fishing in the area in dispute in litigation subsequent to their conviction under Federal law, officials of the State of Texas were persuaded to dismiss charges against the Mexicans. In a related development the Supreme Court in United States v. Florida (29) continued a preliminary injunction enjoining the State of Florida from interfering with foreign fishing vessels on the high seas in the Gulf of Mexico adjacent to Florida until the Court has ruled in United States v. Florida (30) and United States v. Florida and Texas (31). After an extensive trial in United States v. Alaska (32), the Court found that the waters of outer Cook Inlet are historic inland waters. The effect of this decision was to give Alaska all rights to the seabed and resources within the inlet. The case is now on appeal. The Section has maintained close liaison with other departments and agencies regarding international and domestic aspects of marine resources law. In particular, it has continued active participation as a member of the Interagency Law of the Sea Task Force with respect both to coastline delimitation and deep seabed matters. In addition to continued participation on two interagency State Department committees dealing with international environmental matters—the Committee on International Environmental Affairs (CIEA) and the Committee on International Ocean Affairs (CIOA)—the Section participated in the Interdepartmental Legal Study Group on Offshore Superports established by the Department of Justice to study the legal problems associated with the construction and operation of such facilities. Appellate Section This year the volume of cases handled by the Appellate Section has increased, continuing the trend for recent years. In each of the last two years, the number of new cases has increased by 50 percent. More of this Section’s work is now being handled on an accelerated basis than ever before, particularly in situations involving the environment. ENVIRONMENTAL LITIGATION The courts have been prolific in the number of their decisions relating to environmental law. Environmentalists have succeeded for a time in blocking the construction of the trans-Alaska pipeline (33). Other projects enjoined or partially enjoined as not having complied with the National Environmental Policy Act involve a dam on the Little Tennessee River (34) and the Truman Dam and Reservoir Project (35). The courts have refused in several instances to enjoin on-going construction pending completion of an environmental impact statement and its review (36) and denied preliminary injunctions against the construction of dams where the adequacy of the impact statement has been challenged (37). While recognizing that courts may not substitute their judgment for an agency decision, an impact statement has been found inadequate for its unsatisfactory discussion of alternatives (38). In approving an impact statement as adequate, the standard of review was held to be one of good faith objectivity, rather than impartiality which was subject to review to determine whether the agency’s decision was arbitrary, capricious, an abuse of discretion or otherwise not in accordance with law (39). Certiorari was denied when environmentalists sought to have the arbitrary and capricious standard reviewed (40). On the one hand, it was held that mandatory payments of farm subsidies are not “major Federal actions significantly affecting the quality of the human environment” necessitating compliance with National Environmental Policy Act (41), while, on the other hand, holding that the Department of the Interior’s approval of a lease of Indian fee lands was a major Federal action and the requirements of the act must be satisfied (42). A suit challenging prospecting for minerals within a national forest on National Environmental Policy Act grounds was dismissed after prospecting had ceased (43). The limited range of an impact statement in its consideration of alternatives was the basis of a decision halting the sale of outer continental shelf lands for oil and gas exploration (44). The court of appeals on motion of the appellant, remanded a timber case to the district court to enable the filing of a motion for a new trial on the grounds of newly discovered evidence (45). In another timber case, the transfer of a case from the District of Columbia to California was upheld (46). In an important decision, the court rejected an allegation under the National Environmental Policy Act that Government officials may act improperly. The court also went on to hold that courts are only to review the procedural requirements, not the necessity or desirability of projects under the Act, that an impact statement need not await development of total knowledge of environmental effects and that public hearings are not required under the Act (47). The need for an environmental protection agency to file an impact statement with its proposals was limited by the court which stopped short of saying that it was never necessary (48). Laches was found to bar stoppage of construction of a highway through a city park where the environmental harm had already largely occurred (49). In another case in which a highway would pass 117 through a city park, Federal funding was halted for a 4.25-mile segment where 16 miles of a 23-mile loop had already been constructed. It was determined that National Environmental Policy Act and the statutes regarding the taking of parkland must first be complied with (50). An impact statement was found necessary to be prepared by the National Capital Planning Commission prior to giving approval of a proposed change in zoning by a District of Columbia agency (51) .• Finding the granting of Federal funds to have been made as to one project prior to passage of the Act, the court denied injunctive relief. But as to another project where the contract for funds was entered into shortly after passage of the Act, the court enjoined the granting of Federal funds. (52) The Federal funding of an urban renewal project by the Department of Housing and Urban Development was also enjoined until an impact statement was prepared and filed (53). In another Housing and Urban Development case, the court upheld as reasonable the agency’s decision that an impact statement was not required in its funding of a housing project (54). The rule of reasonableness was also applied by the court in remanding for a determination as to the effect on the environment of a ten-story office building to be constructed in a downtown area (55). A proposed detention center and garage, notwithstanding the filing of an negative impact statement, were enjoined since the negative impact statement would likely be found inadequate under the arbitrary and capricious standard of review (56). In refusing to halt construction of a jail in New York City, the court refused to enjoin the project but went on to require a negative impact statement nearly as comprehensive as a full National Environmental Policy Act statement. Certiorari was sought and denied (57). The Atomic Energy Commission’s liquid metal fast breeder reactor program was determined by the court to require the preparation of a detailed statement (58). It was also determined that the Commission’s order extending the time for completing a nuclear power facility was improper since neither a hearing had been held nor proper notice given of its extension of the power company’s construction permit. The court, however, declined to order suspension of construction pending the hearing (59). Where petitioners, seeking to review the Commission’s revised regulations implementing the Act, had not participated in the rulemaking process, they could not properly challenge the regulations in the district court (60). The Supreme Court denied certiorari in a suit challenging the filling of certain submerged areas in San Francisco Bay (61). A three-judge district court’s injunction restraining the Interstate Commerce Commission from permitting railroads to collect a surcharge on goods being transported for recycling was reversed by the Supreme Court which found that the Act did not change the exclusive jurisdiction of the Commission to suspend rates pending its final decision on their lawfulness (62). The Supreme Court also refused to vacate the circuit court’s stay of a district court order involving the flooding of Rainbow Bridge by waters impounded for agricultural purposes (63). An equally divided Supreme Court approved a circuit court ruling allowing the Environmental Protection Agency four months to review State implementation plans under the Clean Air Act of 1970 and to reject those plans which lacked provisions prohibiting any significant deterioration of air quality where the air is better than the secondary standards (64). The air cases have involved situations of great public impact. An example of this type of case involves the proposed standards requiring the installation of anti-air-pollution devices on 1975 automobiles. The court directed further hearings on the application for a one-year suspension of the 1975 emission standards (65). While finding that the Administrator of the Environmental Protection Agency had acted in the best of faith in attempting to comply with the time limitations of the Clean Air Act, he was wrong in granting two-year extensions for compliance. In spite of this finding the court itself gave the States an extension of time not authorized by statute, amounting to approximately one year (66). Numerous challenges to the approval and disapproval of state implementation plans were raised in the courts. The disapproval of a plan was held not reviewable by the courts (67). In approving a plan the court also found that the Environmental Protection Agency need not satisfy the impact statement requirements of the National Environmental Policy Act (68). On remand the Agency was required to afford a limited legislative hearing, but not an adjudicative hearing (69). Explanations to permit meaningful court review of Agency approval of plans must be given (70). Unless standing is alleged or demonstrated, petitions to review plans will be dismissed (71). A petition for review was denied after applying the Administrative Procedure Act’s standard “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law” standard of review (72). The transfer of challenges to plans in several New England States to the District of Columbia Circuit was found to be authorized by the Clean Air Act (73). In not seasonably seeking to review the Environmental Protection Agency’s approval of a plan by a petition for review, the refusal to enjoin the Agency from enforcing its denial of a request for a variance-exception was found to be justified (74). Dismissed as moot were appeals from an injunction blocking a Federal flood control project since an impact statement had been filed subsequent to the issuance of the injunction (75). 118 The Supreme Court denied certiorari in a case where attempts were made to compel the issuance of a lapsed permit to dredge and fill without giving consideration to environmental consequences. The suit had been dismissed by the court of appeals as not being ripe for decision (76). The dismissal of a suit to compel the Corps of Engineers to prevent a power company from constructing expanded generating facilities on a landfill owned by the company and completed under permit some 20 years previously was affirmed (77). Challengers to a rezoning petition were found to lack standing as not being within the zone of interests protected by the Federal Water Pollution Control Act. The court concluded that the act does not permit a private Attorney General approach through private suits (78). The passage of the Federal Water Pollution Control Act amendments of 1972 rendered moot several appeals involving regulations governing discharges into navigable waters (79). The Supreme Court, in reversing a three-judge district court, found that neither the Federal Water Quality Improvement Act nor the Admiralty Extension Act would operate to preclude recovery under state law for cleanup costs of oil spills (80). In an interpretation that the person in charge was the corporate owner for purposes of reporting an oil spill, which granted immunity to a corporation, the court in effect repealed the Refuse Act by allowing oil spillers to report spills before they are discovered and escape prosecution (81). The Supreme Court found that a criminal conviction could be obtained under the 1899 Refuse Act notwithstanding the absence of procedures for obtaining a permit. On remand, however, the respondent must be given an opportunity to show that it was affirmatively misled by the Corps of Engineers’ regulations (82). In a similar situation, concerning the absence of a permit program, decided three days prior to the Supreme Court’s decision, a different court of appeals found that the absence of a permit program was not a denial of due process in affirming a conviction under the Refuse Act (83). In another criminal prosecution under the Refuse Act it was determined that a corporation may be placed on probation and supervised in an attempt to prevent further illegal acts (84). A criminal proceeding was held to be premature when the Corps of Engineers had not denied a permit and filling had occurred. The Court found, however, that the Refuse Act permitted the corps to require an individual who had filled navigable waters without a permit to remove the fill (85). The depositing of refuse matter on the shore and its subsequent washing by rain was sufficient to support a conviction for violating the Refuse Act (86). The discharging of matter into a public sewer likewise violates the Refuse Act. There is no right to dump waste and obtaining a permit is a condition precedent to dumping waste into a navigable water (87). It is only necessary to show that refuse would likely flow into navigable waters to sustain a conviction under the Refuse Act (88). On remand for a final decision the court recognized the distinction between navigable and non-navigable rivers under the Refuse Act (89). PUBLIC LANDS AND PROPERTY The wide-ranging variety of cases involving property interests of the United States has created new precedents of substantial impact in the field of property law. Litigation which began more than a quarter century ago was concluded by the Supreme Court’s decision holding that Louisiana’s Act 315, enacted in 1940, did not apply to mineral reservations agreed to by parties to a sale of real estate in 1937 and 1939. Louisiana had sought to make mineral reservations reserved for a period of time in conveyances to the United States imprescriptible. The decision will have a substantial effect on many similar mineral reservations in deeds conveying property (later found to be valuable for oil) to the United States in Louisiana (90). The Supreme Court also denied certiorari in a challenge raised by longshoremen to the issuance of a fill permit in the Hudson River by the Corps of Engineers to deposit the excavated material from the World Trade Center and the granting of tax-exempt status to the property by New York and New Jersey (91). The Court also refused to review the lower court’s decision in what are called the helium cases (92). The court dismissed an appeal, for want of jurisdiction, from an eviction from an apartment within the Panama Canal Zone. This issue had become moot due to the subsequent deportation of the appellant from the Canal Zone (93). The problem of protecting the public domain from trespassers and unauthorized uses continues unabated. Summary judgment was found to have been granted prematurely where there were contested fact issues as to the accessibility to private lands. (94) In a suit to establish the right of passage over land patented without a reservation of a roadway, it was held that the continued use of the road constituted a taking by seizure of any rights adverse to the United States use (95). In affirming the district court finding of the existence of an occupancy trespass, the court approved the Government’s dependent resurvey which established the disputed boundary (96). In a quiet title proceeding involving a dependent resurvey it was determined that the disputed land actually was within an Indian reservation and its occupants were properly ejected (97). Self-help by a landowner was discouraged by awarding the United States damages for the wrongful removal of barricades which took the landowner’s access to a parkway. The landowner’s relief, if still available, was found to be a suit under the Tucker 119 Act (98). Certiorari has been denied (99). A claim of ownership of beach front property by a landowner was rejected by the court which found ownership to be in the county. This case first arose as a civil rights case involving the public use of a beach improved with Federal funds (100). A judgment of ejectment was affirmed involving a millsite location where the mining claim on which it was based had previously been declared null and void (101). Activities which are inconsistent with mining activities were enjoined on an unpatented mining claim. Mining, the court found, was limited to prospecting, extraction, and processing and did not include manufacturing and packaging a commercial product (102). In a color of title case it was determined that good faith possession was lacking (103). A dispute as to whether a transmission line easement precluded the construction of residences and a gasoline service station within its limits was resolved in favor of those who had built under the powerline (104). In a disappointed bidder’s challenge to a General Services Administration-negotiated lease the court directed a new record be made and further consideration be given to the standing of the disappointed bidder to bring the action (105). The Department of the Interior’s longstanding administrative determination as to the availability of lands with which to satisfy scrip holders was approved in one instance and limited in another (106). The rejection by the Secretary of scrip which was nearly 120 years old was upheld due to the lack of a valid power of attorney from the scripee (107). Desert land entries and patents were found to have been obtained by a fraudulent scheme. A substantial acreage of public land in Idaho is involved (108). In an attempt to obtain an increase of state tax receipts, a U.S. Air Force Base and military housing were sought unsuccessfully to be annexed to a city in Nebraska (109). The Federal Power Commission was found to lack jurisdiction to determine the value of gas at the wellhead to permit the ascertaining of the royalty between the lessor and lessee (110). A land exchange between the United States and the Governor of Guam was found to be invalid without the concurrence of the Legislature of Guam (HI). The ownership of oil and gas deposits under a railroad right-of-way has again been held not to pass to railroad companies under right-of-way grants (112). The United States is entitled to damages and possesses the right under a state statute to recover fire suppression costs incurred in putting out a fire in a national forest the same as any other landowner in the state (113). A court of appeals declined to rule on the Department of the Interior Secretary’s authority to set electric power rates in the Imperial Irrigation District since there was no threshold showing an abuse of dis cretion or disregard of duty (114). In an affirmance without opinion the court approved the award of a summary deficiency judgment as well as the granting of summary judgment against setting aside a foreclosure sale (115). Certiorari was denied to review an Interior Department’s land exchange. Sovereign immunity and unreviewable discretion were the basis of the court of appeals decision (116). INDIAN LITIGATION The number of appeals involving Indian property and treaty rights has continued to increase. The Section has handled a variety of appeals which range from income tax to divorce. The Supreme Court, while making it clear that Indian off-reservation rights are minimal if not nonexistent and that their rights on-reservation are based primarily on their relationship to the United States and not on Indian sovereignty, still prohibited a state from taxing the on-reservation earned income of a reservation Indian (117). The Court also prohibited taxation of Indian fixtures on federally owned tax-exempt land. Income earned off-reservation was held taxable (118). In light of the Supreme Court’s recent decisions a case involving tax-free sales on a reservation to Indians as well as non-Indians was remanded to the Supreme Court of Washington (119). The New Mexico Court of Appeals, apparently anticipating the recent rulings of the Supreme Court, found that an on-reservation business was not subject to a state gross receipts tax, nor was the on-reservation salary of an Indian subject to state income tax (120). In reversing the court of claims the Supreme Court ruled that the United States had not failed its fiduciary duty in paying state inheritance taxes rather than challenging them (121). Congress was held to have validly enlarged the class of beneficiaries of the proceeds from oil and gas leases to include all Navahos in San Juan County rather than only those living in the lease area (122). The Court, in an Indian fishing case, determined that an Indian reservation was not terminated by the opening of it to homestead entry and unrestricted alienation of allotments (123). Certiorari has been granted to determine whether suits to determine ownership of land were properly dismissed under 28 U.S.C. Section 1362, because of the “Well-Pleaded Complaint” rule (124). Certiorari also was granted to review the court of appeals’ extension of Indian programs administered by the Department of the Interior to Indians who live off-reservation (125) and to rule on the validity of state regulation of Indian net fishing at their usual and accustomed places as provided by treaty (126). The Court, without opinion, dismissed the appeal of a non-Indian attorney, employed by the Navaho Tribe who had sought to avoid payment of State income taxes since he resided on-reservation and was paid from tribal funds (127). 120 The Supreme Court of Montana, in deciding a unique jurisdictional question, found that since the United States had not preempted the field of divorce law and the tribe had no such law, state courts had jurisdiction to grant divorces to reservation Indians. The alternative was to recognize a hiatus in the law which deprived Indians of the means to obtain divorces (128). In a ruling concerning the actuality or nonexistence of an Indian reservation’s boundaries involving a question of criminal jurisdiction, the court of appeals held that, notwithstanding varying administrative practice and acts of Congress, the reservation continued to exist and would exist until Congress specifically authorized a change in boundaries (129). Where the United States declines to represent an Indian tribe, the tribe, under 28 U.S.C. section 1362, may bring its own suit in a Federal court and not be subject to dismissal for lack of an indispensable party (130). In a dispute between an applicant for an Indian allotment and a holder of soldiers’ scrip, the state court, which had quieted title in the scripholder, was held to lack jurisdiction to review the conflicting claims (131). In an action to recover possession and title to allotted land, it was held that 25 U.S.C. Sections 345 and 346 must be strictly construed as not waiving the U.S. immunity from liability for damages (132). By summary affirmances, suits to compel the allotment to Indians of withdrawn public lands were dismissed (133). Back royalties sought by the United States on behalf of an Indian tribe were disallowed on the one hand (134), while water distribution practices of a Commissioner were held to be contrary to the terms of a 1935 decree and adverse to the interests of several Indian tribes (135). CONDEMNATION The Supreme Court has now required the payment of compensation for the useful life of improvements placed on a leasehold without limitation to the remainder of the lease term (136). The Court also has determined that, in the condemnation of fee land, no compensation should be given for any value added by revocable grazing permits issued under the Taylor Grazing Act. These grazing leases specified that no property right was given by the issuance of the grazing permit (137). As a result of this ruling, the Government’s motion for summary reversal was granted, remanding to the district court a similar case for appropriate disposition (138). The Court denied certiorari in a suit which sought to enlarge the scope of the Government’s taking and introduce valuation evidence relating to flooding beyond the condemned area (139). The Supreme Court also denied certiorari in a case involving a Federal land patent which was held not to have conveyed islands in a navigable stream along with fast land, contrary state law notwithstanding (140). Whether the unit rule on valuation has been violated was again determined to be a factual question to be determined by the district judge (141). The taxing of costs by the district court in a condemnation trial was held to have been improper (142). After approving instructions given a commission regarding sales being the best evidence of market value, the United States was awarded interest on its overpayment to the condemnee from the date of judgment (143). In a controversial decision, the market value standard was equated to the developer residual approach (144). In approving the exclusion of sales as a proper exercise of discretion, the court placed its decision on the grounds of judicially noticed incomparability (145), while the exclusion of sales after the date of taking was found to be a per se abuse of discretion (146). When confronted with a complex state and Federal project, and multiple suits in Federal and state courts, the court, while regretting the possibility of a double compensation windfall being given to the landowners, placed the responsibility and cost on the state. This was due to the state’s failure to have pursued its state court remedy (147). In a dispute over a condemnation award for a schoolhouse which had been used to educate Seneca Indians, the State of New York, which furnished a substitute school, was found to be entitled to compensation for its taking (148). By summary affirmance, a landowner’s claim to entitlement to a jury trial and to a greater estate to be specified by the declaration of taking was rejected (149). A similar result was arrived at in a Tucker Act suit where the disputed raising of the water level one-half mile from the Government’s project was involved. It was held that a taking of property requires substantial interference with rights in it, not a mere tortious invasion (150). The deposit and disbursal of a deficiency judgment pending appeal, to stop interest from accumulating does not moot the appeal. Interest must be paid on the withdrawn deposit from the date of final judgment by the landowner when it is determined that he must refund any excess deposit withdrawn from the court’s registry (151). An award for the taking of an easement over a timber company’s private road was set aside and a new trial ordered based upon showings that the district court had used erroneous assumptions of the existence of prior rights under a contract (152). The removing of property from the tax rolls of the city of Boston by the United States taking does not constitute a taking which entitles the city of Boston to compensation. The city’s contract claim was held to be an unconsented suit against the United States (153). Increasing a rule 71A(h) commission award by the district court was found to be error without having examined the transcript of evidence presented to the commission (154). In a challenge to the right to take, landowners were found to be entitled to a hearing on 121 this issue (755). An appropriation act was also found to be authority for a taking (156). In a contest between oil and gas lessors and the lessee over entitlement to compensation in condemnation of mineral interests, it was held that insubstantial production did not extend the lease term (157). A rule 71A(h) commission determined the cost of a municipal sewage plant should be paid by the Government even though it was not described in the Govern- TABLE I. Litigation Under the Refuse Act (33 U.S.C. 407) Criminal Ac- Fiscal tions Convic- Fines year initi- tions paid ated Civil Com- Actions Bounties Actions plaint termi- awarded filed dis- nated missed by entry of decree 1961 15 (*) (*) (*) * 0 0 0 1962 16 (*) (*) (*) 0 0 0 1963 20 (*) (*) (*) 0 0 0 1964 45 (*) (*) (*) 0 0 0 1965 32 (*) (*) (*) 0 0 0 1966 42 (*) (*) (*) 0 0 0 1967 56 (*) (*) (*) 0 0 0 1968 41 (*) (*) (*) 0 0 0 1969 46 42 (*) (*) 0 0 0 1970 129 59 (*) (*) 2 0 0 1971 _ 2 191 127 3 174, 800.00 18, 900.00 58 0 24 1972 198 200 3 216, 500. 00 36, 500 00 4 68 9 29 1973 106 132 3 336, 450. 00 20,750.00 36 4 19 *No figures available. 1 So far as is known, prior to Mar. 13, 1970, when an action to enjoin the discharge of heated water into Biscayne Bay was filed against the Florida Power & Light Co., no civil actions to secure injunctions primarily to abate pollution had ever been filed under the Refuse Act. However, a number of civil actions under the Refuse Act to secure injunctions to remove impediments to navigation had been filed, most notably U.S. v. Republic Steel, 362 U.S. 482 (1960) and U.S. v. Consolidated Paper (unreported), Civil No. 3722, E.D. Mich. (1943); these actions, of course, upon their successful conclusion, had the result not only of removing obstructions to navigation, but also of abating sources of pollution. 2 Jurisdiction over criminal litigation under the Refuse Act was transferred from the Criminal Division of the Department of Justice to the Land and Natural Resources Division on Feb. 11, 1971, pursuant to Department Memo No. 75. 3 This figure represents only fines paid on cases closed during the fiscal year. ’ This includes one action (U.S. v. Reserve Mining Co., No. 5-72 Civ. 19, N.D. Minn.) which contains also causes of action based upon the Federal Water Pollution Control Act, 33 U.S.C. 1160 and the Federal common law (see Illinois v. City of Miwaukee, 406 U.S. 91; 40 U.S.L.W. 4439). merit’s declaration of taking. Part of the system was taken which was found by the commission sufficient to constitute a taking of the whole (158). The taking of access rights was found to have reduced the value of property not taken even though the access rights had not been legally sufficient to support a residential subdivision. If there was error, it was found to have been waived by the Government’s failure to object (159). TABLE III Land Acquisition Section—Tracts and Parcels Received, Closed, Pending-Acres Acquired—Cost 1951—73 Fiscal, Years Inclusive Fiscal year Tracts received T racts closed T racts pending June 30 Acres acquired Cost of parcels and acres 1973 . 11,433 114,714 13,955 248,783 $111,027,454.13 1972 8,881 211,347 15,267 471,040 132,175, 872.94 1971 . 15,290 316, 933 17,733 499,912 189, 340,994.34 1970 . 25,699 420,821 19, 376 897, 873 161,234, 933.96 1969 . 20,238 319,139 14, 498 594,141 175, 392,775.19 1968 . 16,317 3 22, 820 13, 399 1,066,875 183, 440,371.26 1967 _ 16,230 18,343 19, 570 1,129,087 171,826, 973. 83 1966 _ 20,743 24, 398 21, 683 1,451,010 160,910,127.56 1965 _ 28,747 24, 525 25, 338 1,729,207 177, 069,’764,98 1964 _ 22,822 27, 462 21,116 1, 530, 087 191, 260, 285. 59 1963 . 22,289 32,710 25,756 701,953 149, 543,359.20 1962 . 19,982 23, 845 36,177 575, 390 145, 441,802.13 1961 . 19,616 17,999 40,040 405, 094 116,615,398.79 1960 . 16,453 17,876 38, 423 401, 388 128, 209, 884. 82 1959 . 18,858 16, 554 39, 846 456,639 107,195,951.52 1958 . 16,223 15,954 37,542 668, 835 84,235,231.96 1957 . 16,971 15, 509 37,273 753,710 59,998,318.04 1956 . 19,706 13, 627 35,811 595, 679 63, 489, 732. 80 1955 . 11,357 13,744 29,732 448, 233 60,954,619.48 1954 . 10,997 13, 302 32,119 580, 418 78,198, 483. 41 1953 . 17,953 20,740 33, 537 626, 426 74,145, 506.79 1952 . 16,159 16, 283 36, 324 736,900 91,150,700.00 1951 18,015 14, 434 36, 448 1,405,745 60,801,140.14 Total . 410,979 433,079 . — 17,974,425 2,873,659,682.86 1 Includes 3,430 tracts closed by preliminary opinion or cancellation. 2 Includes 3,795 tracts closed by preliminary opinion or cancellation. 3 Includes 4,935 tracts closed by preliminary opinion or cancellation. 4 Includes 7,210 tracts closed by preliminary opinion or cancellation. s Includes 4,466 tracts closed by preliminary opinion or cancellation. 6 Includes 6,571 tracts closed by preliminary opinion or cancellation. TABLE IV Land Acquisition Section—Tracts Received, Closed and Pending Fiscal Years 1951-73, Inclusive TABLE II Appellate Case Statistics 1973 1972 1971 1970 Number of new cases 440 301 204 143 Number of cases closed 312 286 214 153 Cases pending end of year . 417 289 274 284 Total cases handled ... . 729 575 488 437 Memoranda for the Solicitor General 133 109 94 96 Number of briefs filed 223 158 97 109 Number of oral arguments 107 72 58 53 Number of cases d’ecided 151 130 95 84 Number of cases summarily disposed of 43 O) (') (') Number of substantive motions or responses filed. 124 0) (>) (>) i No records kept for these years. Fiscal year Condemnation tracts received Condemnation tracts closed Condemnation tracts pending Title tracts received Title tracts closed Title tracts pending 1973 3,026 6,307 10,751 8,407 i 8,407 3,204 1972 2,262 4, 543 14, 032 6,619 2 6, 804 1,235 1971 2,691 4, 333 16,313 12, 599 312,600 1,420 1970 8,495 4, 431 17,955 17,204 4 16, 390 1,421 1969 4,717 3,696 13,891 15, 521 3 15, 443 607 1968 4, 089 4,782 12,870 12, 228 «17,706 529 1967 3, 967 6,788 13, 563 12,263 11, 555 6,007 1966 4, 957 7,768 16, 384 15,786 16,630 5,299 1965 10, 062 6,614 19,195 18, 685 17,911 6,143 1964 6,917 12, 527 15,747 15,905 14, 935 5, 369 1963 8,259 16, 261 21,357 14,030 16, 449 4, 399 1962 8, 663 11,361 29, 359 11,319 12,484 6,818 1961 10,848 6, 399 32, 057 8,768 11,600 7,983 1960 9, 942 8,989 27,608 6, 511 8, 887 10,815 1959 7,276 8,907 26,655 11,582 7,647 13,191 1958 6, 796 7,883 28, 286 9,427 8,071 9,256 1957 7, 437 7,864 29, 373 9, 534 7,645 7,900 1956 12,119 7,535 29, 800 7, 587 6,092 6, 011 1955 6,147 7,598 25,216 5,210 6,146 4,516 1954 5,700 6,339 26,667 5, 297 6,963 5,452 1953 10,025 9,282 27, 306 7,928 11,458 6,231 1952 7,609 8,191 26, 563 8, 550 8, 092 9,761 1951 7,851 6,870 27,145 10,164 7,564 9,303 Total ... 161,855 175, 268 . 251,124 257,479 . i 2 3 4 5 e Includes 3,430 tracts Includes 3,795 tracts Includes 4,935 tracts Includes 7,210 tracts Includes 4,466 tracts Includes 6,239 tracts closed by preliminary closed by preliminary closed by preliminary closed by preliminary closed by preliminary closed by preliminary opinion or cancellation, opinion or cancellation, opinion or cancellation, opinion or cancellation, opinion or cancellation, opinion or cancellation. 122 CASES CITED (2) 353 F. Supp. 993 (S.D. Tex. 1973). (2) 411 U.S. 655 (1973). (3) United States v. Reserve Mining Company, Civil Action No. 5-72 Civ. 19 (D. Minn. 1972). (4) 406 U.S. 91 (1972). (5) 4 E.R.C. 1389 (1972). (6) S. Ct., No. 50, Original (1973). (7) 4 E.R.C. 1447 (C.D. Cal. 1972). (8) Civil Action No. 214-72C3 (W.D. Wash. 1972). (9) Civil Action No. 72-939 (N.D. Ala. 1972). (16) 5 E.R.C. 1728 (W.D. Ky. 1973). (71) 344 F. Supp. 253 (D.D.C.), aff’d per curiam, 4 E.R.C. 1815 (C.A.D.C., 1973), aff’d by an equally divided Court, sub nom. Fri v. Sierra Club, 412 U.S. 541 (1973). (72) 478 F. 2d 418 (C.A. 5, 1973). (73) 5 E.R.C. 1023 (D. Ore., 1973). (74) Morton v. Wilderness Society, 479 F. 2d 842 (C.A.D.C., 1973), cert, denied sub nom. Wilderness Society v. Morton, 411 U.S. 917 (1973). (75) Union Oil v. Morton, Civil Action No. 72-1692 (C.A. 9, 1972). (76) Exxon v. Morton, Civil Action No. 72-2580-RJK (C.D. Cal. 1972). (77) Mobil Oil v. Morton, Civil Action No. 73-1302-WPG (C.D. Cal.,1973). (78) Gulf Oil v. Morton, Civil Action No. 72—2449 (C.A. 9, 1972). (79) Sierra Club v. Morton, Civil Action No. 1182-73 (D.D.C. 1973). (26) Edwardsen v. Morton, Civil Action No. 2014-71, Memorandum Order of Apr. 19, 1973 (D.D.C. 1971). (27) Pyramid Lake Paiute Tribe v. Morton, 431 F. 2d 763 (C.A. 9), cert, denied 401 U.S. 909 (1971). (22) Camacho v. United States, Action No. 245-68 (U.S. Ct. Cis., 1968), Nov. 14, 1973 Opinion of Commissioner. (23) State of California v. Morton, Civil Action No. S-2924 (E.D. Cal. 1973). (24) Utah Power & Light v. Morton (unreported opinion of Nov. 3, 1972 (D. Idaho)), Civil Action No. 73-1150 (C.A. 9, 1973). (25) S. Ct. No. 9, Original (1973). (26) S. Ct., No. 36, Original (1973). (27) S. Ct., No. 35, Original (1973). (28) United States v. Florida and Texas, S. Ct., No. 54, Original (1973). (29) S. Ct., No. 52, Original (1973). (36) Id. (31) S. Ct., No. 54, Original (1973). (32) Civil No. A-45-67 (D. Alas. 1973). (33) Wilderness Society v. Morton, 463 F. 2d 1261 (C.A.D.C., 1972). (34) Environmental Defense Fund v. Tennessee Vai. Auth., 468 F. 2d 1164 (C.A. 6, 1972). (35) Environmental Defense Fund, Inc. v. Froehlke, 477 F. 2d 1033 (C.A. 8, 1973). (36) Committee to Save North Dakota, Inc. v. Morton, 476 F. 2d 1284 (C.A. 8, 1973); Conservation Council of North Carolina v. Froehlke, 473 F. 2d 664 (C.A. 4, 1973). (37) Allison v. Froehlke, 470 F. 2d 1123 (C.A. 5, 1972). (38) Environmental Defense Fund, Inc. (Cache River) v. Froehlke, 473 F. 2d 346 (C.A. 8, 1972). (39) Environmental Defense Fund v. Corps of Eng., U.S. Army (Gillham Dam); 470 F. 2d 289 (C.A. 8, 1972), cert, den., 412 U.S. 931 (1973). (40) Id. (41) Kings County Ass’n v. Hardin, 478 F. 2d 478 (C.A. 9, 1973). (42) Davis v. Morton, 469 F. 2d 593 (C.A. 10, 1972). (43) State of Alabama ex rel. Baxley v. Woody, 473 F. 2d 10 (C.A. 5, 1973). (44) Natural Resources Defense Council, Inc. v. Morton, 458 F. 2d 827 (C.A.D.C., 1972). (45) Sierra Club v. Butz, 349 F. Supp. 934 (N.D. Cal. 1973). (46) Sierra Club v. Jones, ----- F. 2d ------ (C.A.D.C. 1972). (47) Jicarilla Apache Tribe of Indians v. Morton, 471 F. 2d 1275 (C.A. 9, 1973). (48) Portland Cement Assoc, v. Ruckelshaus, 5 E.R.C. 1593 (D.D.C., 1973). (49) Clark v. Volpe, 461 F. 2d 1266 (C.A. 5, 1972). (50) Monroe County Conservation Council, Inc. v. Volpe, 472 F. 2d 693 (C.A. 2, 1972). (51) McLean Gardens Residents Association, Inc. v. National Capital Planning Commission,----------F. 2d------, 4 E.R.C. 1708 (C.A.D.C., 1972). (52) San Francisco v. Romney, 472 F. 2d 1021 (C.A. 9, 1973). (53) Silva v. Romney, 473 F. 2d 287 (C.A. 1, 1973). (54) Hiram Clarke Civic Club v. Lynn, 476 F. 2d 421 (C.A. 5, 1973). (55) Save Our Ten Acres v. Kreger, 472 F. 2d 463 (C.A. 5, 1973). (56) First National Bank of Chicago v. Kleindienst, 47^ F. 2d 1406 (C.A. 7, 1973). (57) Hanly v. Kleindienst, 471 F. 2d 823 (C.A. 2, 1972). cert, denied, 412 U.S. 908 (1973). (58) Scientists’ Institute for Public Information, Inc. V-AEC, ----------- F. 2d ------ 5 E.R.C. 1418 (C.A.D.C., 1973). (59) Brooks v. AEC and United States, 476 F. 2d 924 (C.A.D.C., 1973). (66) Gage v. AEC and United States, 479 F. 2d 1099 (C.A.D.C., 1973). (67) Helen L. Freeman v. Superior Court of the State of California in and for the County of Alameda, ----------- F. 2d-----, cert, denied, 412 U.S. 909 (1973). (62) United States v. Students Challenging Regulatory Procedures, 412 U.S. 669 (1973). (63) Friends of the Earth v. Armstrong, 485 F. 2d 1 (C.A. 10, 1973). (64) Sierra Club v. Ruckelshaus, ---- F. 2d ----- (C.A. D.C. 1972); cert, granted, 409 U.S. 1224 (1973). (65) International Harvester Co. v. Ruckelshaus, 478 F. 2d 615 (C.A.D.C., 1973). (66) Natural Res. Def. Coun., Inc. v. Environmental Pro. Agcy., 475 F. 2d 968 (C.A.D.C., 1973). (67) Utah International, Inc. v. EPA, 478 F. 2d 126 (C.A. 10, 1973). (68) Appalachian Power Co. v. EPA, 477 F. 2d 495 (C.A. 4, 1973). (69) Duquesne Light Co. v. EPA, 481 F. 2d 1 (C.A. 3, 1973); Buckeye Power Co. v. EPA, 481 F. 2d 162 (C.A. 6, 1973). (76) Natural Resources Defense Council, Inc. v. EPA, 478 F. 2d 875 (C.A. 1, 1973). (71) Natural Resources Defense Council, Inc. v. EPA, 481 F. 2d 116 (C.A. 10, 1973). (72) Delaware Citizens for Clean Air, Inc. v. Ruckelshaus, 480 F. 2d 972 (C.A. 3, 1973). 123 525-134 0 - 74 -9 (73) Natural Resources Defense Coun. v. E.P.A., 465 F. 2d 492 (C.A. 1, 1972). (74) Getty Oil Company (Eastern Operations) v. Ruckelshaus, 467 F. 2d 349 (C.A. 3, 1972), cert, denied, 409 U.S. 1125 (1973), (75) Sierra Club v. Laird, Unreported order (C.A. 9, Mar. 8, 1973). (76) Bankers Life & Cas. Co. v. Village of Palm, Fla., 469 F. 2d 994 (C.A. 5, 1972), cert, denied, 411 U.S. 916 (1973). (77) Save the Dunes Council, Inc. v. Froehlke, 478 F. 2d 1404 (C.A. 7, 1973). (78) Higginbotham v. Barrett, 473 F. 2d 745 (C.A. 5, 1973). (79) Businessmen for the Public Interest, Inc. v. Froehlke, unpublished opinion (C.A. 7, Dec. 20, 1972); Kalur v. Resor, unpublished opinion dismissing appeal as moot (S.D.N.Y., 1971). (80) Askew v. American Waterways Operators, Inc., 411 U.S. 325 (1973). (81) United States v. Mobil Oil Corp., 464 F. 2d 1124 (C.A. 5, 1972). (82) United States v. Pennsylvania Industrial Chemical Corp., 411 U.S. 655 (1973). (83) United States v. United States Steel Corp., 482 F. 2d 439 (C.A. 7, 1973). (84) United States v. Atlantic Richfield Co., 465 F. 2d 58 (C.A. 7, 1972). (85) United States v. Moretti, 478 F. 2d 418 (C.A. 5, 1973). (86) United States v. Valley Camp Coal Co., 480 F. 2d 617 (C.A. 4, 1973). (87) United States v. Granite State Packing Co., 470 F. 2d 303 (C.A. 1, 1972). (88) United States v. American Cyanamid Co., 480 F. 2d 1132 (C.A. 2, 1973). (89) United States v. Crow, Pope and Land Enterprises, 474 F. 2d 200 (C.A. 5, 1973). (90) United States v. Little Lake Misere Land Co., 412 U.S. 580 (1973). (91) Field v. United States, ---- F. 2d ------ (C.A. 2, 1972), cert, denied, 411 U.S. 931 (1973). (92) Northern Natural Gas. Co. v. Grounds, 441 F. 2d 704, (C.A. 10, 1972), cert, denied, 404 U.S. 951 (1972). (93) Mason v. Panama Canal Co., 469 F. 2d 1120 (C.A. 5, 1973), Appeal dis., --------- U.S. -----, 37 L. Ed. 393 (1973). (94) Dunn v. United States, 418 F. 2d 443 (C.A. 9, 1973). (95) United States v. Wood, 466 F. 2d 1385 (C A 9 1972). (96) United States v. Doyle, 468 F. 2d 633 (C.A 10 1972). (97) United States v. Smith, unreported opinion (C.A 9 May 6, 1973). (98) Stringer v. United States, 471 F. 2d 381 (C.A. 5, 1973), cert, denied, 412 U.S. 943 (1973). (99) Id. (100) United States v. Harrison County, Mississippi, 463 F. 2d 1328 (C.A. 5, 1972). (101) United States v. Henrikson, 350 F. 2d 949 (C.A. 9, 1973), cert, denied,-----------U.S.------ (Oct. 23, 1973)’ (102) United States v. Springer, 478 F. 2d 43 (C A 9 1972). (103) Day v. Hickel, 481 F. 2d 473 (C.A. 9, 1973). (104) United States v. Cross, 477 F. 2d 317 (C.A. 10, 1973). (105) Merriam v. Kunzig, 476 F. 2d 1233 (C.A. 3, 1973). (106) Bronken v. Morton, 473 F. 2d 790 (C.A. 9, 1973). (107) Preston Nutter Corp. v. Morton, 479 F. 2d 696 (C A 10, 1973). ' ' (108) Reed v. Morton, 480 F. 2d 634 (C.A. 9, 1973), cert, denied,------------U.S.-------- (Oct. 16, 1973). (109) United States v. City of Bellevue, Neb., 474 F. 2d 473 (C.A. 8, 1973). (110) Mobil Oil Corp. v. F.P.C., 469 F. 2d 130 (C.A.DC 1972) . ' ’’ (111) Bordallo v. Camacho, 475 F. 2d 712 (C.A. 9, 1973). (112) Rice v. United States, 479 F. 2d 58 (C.A. 8, 1973)^ cert, denied,-----------U.S.------ (Oct. 9, 1973). (113) United States v. Boone, 476 F. 2d 276 (C A 10 1973). ’ (114) Yellen v. Morton, 480 F. 2d 1185 (C.A.D.C. 1973). (115) Hilltop House, Inc. v. Romney, Unreported opinion affirming lower court (C.A.D.C., Jan. 12, 1973). (116) Sierra Club v. Hickel, 467 F. 2d 1048 (C.A. 6, 1972) cert, denied, 411 U.S. 920 (1973). (117) McClanahan v. Arizona State Tax Comm’n, 411 U S 164 (1973). (118) Mescalero Apache Tribe v. Jones, 411 US 145 (1973). (119) Tonasket v. State of Washington, 411 U.S 451 (1973). (120) Hunt v. O’Cheskey,------N.M.App. ------, 512 P. 2d 961 (1973). (121) United States v. Mason, 412 U.S. 391 (1973). (122) United States v. Jim, 409 U.S. 80 (1972). (123) Mattz v. Arnett, 412 U.S. 481 (1973). (124) Oneida Nation of N.Y. State v. County of Oneida, 464 F. 2d 916 (C.A. 2, 1972), cert, granted, 412 U.S. 927 (1973). (125) Ruiz v. Morton, 462 F. 2d 818 (C.A. 9, 1972), cert, granted, 411 U.S. 947 (1973). (126) Puyallup Tribe v. Dept, of Game of Wash., 80 Wash. 2d 561, 497 P. 2d 171 (1973), cert, granted, 410 U.S. 981 (1973). (127) Kahn v. Arizona State Tax Comm., 411 U.S. 941 (1973). (128) State ex rel. Mary Iron Bear v. District Court of the Fifteenth Judicial District, --------- Mont. ----- 512 P 2d 1292 (1973). (129) The City of New Town, North Dakota v. United States, 454 F. 2d 121 (C.A. 8, 1972). (130) Fort Mojave Tribe v. La Follette, 478 F. 2d 1016 (C.A. 9, 1973). (131) Kale v. United States, ---- F. 2d------ unpublished opinion (C.A. 9, Dec. 17, 1973). (132) Vicenti v. United States, 470 F. 2d 845 (C.A 10, 1972). (133) Hopkins-Dukes v. United States, ------- F. 2d ----- summary affirmed (C.A. 9, Dec. 11, 1972). (134) United States v. Lewiston Lime Co., 466 F. 2d 1358 (C.A. 9, 1972). (135) United States v. Gila Valley Irrigation Dist., 454 F. 2d 219 (C.A. 9, 1972). (136) Almota Farmers Elev. & Warehouse Co. v. United States, 450 F. 2d 125 (C.A. 9, 1971); 409 U.S. 470 (1973). (137) United States v. Fuller, 442 F. 2d 504 (C.A. 9, 1971); 409 U.S. 488 (1973). (138) United States v. 6,404.19 Acres in Phillips Co., Mont. (Lock),------------F. 2d------- (C.A. 9, 1973). (139) United States v. 3,317.39 Acres, Etc., Jefferson Co., Ark., 443 F. 2d 104 (C.A. 8, 1971), cert, denied, 404 U.S. 1025 (1973), 481 F. 2d 417 (1973). (140) Severson v. United States, 447 F. 2d 631 (C.A. 7, 1972), cert, denied, 404 U.S. 1039 (1972). 124 (141) United States v. 105.40 Acres in Porter County, Ind. (Northern Indiana Bank, and Trust Co., Trustee for Bethlehem Steel Corp.), 471 F. 2d 207 (C.A. 7, 1972). (142) United States v. 2,186.63 Acres of Land, Wasatch Cty., Utah, 464 F. 2d 676 (C.A. 10, 1972). (143) United States v. 421.89 Acres of Land, Marion, Polk and Warren Cos., Iowa (White Materials Corp.), 465 F. 2d 336 (C.A. 8, 1972). (144) United States v. 100 Acres of Land, Etc., Marine Cty., Cal. (Drakes’ Beach Estates, Inc.), 468 F. 2d 1261 (C.A. 9, 1972). (145) United States v. Certain Land in Squares 532 and 570, etc., Parcels 1 and 9, 473 F. 2d 94 (C.A.D.C., 1972). (146) United States v. 1,129.75 Acres of Land, Cross and Poinsett Cos., Ark., 473 F. 2d 996 (C.A. 8, 1973). (147) United States v. 2,997.06 Acres of Land, Etc., Marion Cty., Fla. (Ocala Manufacturing, Ice and Packing Co. and Canal Authority of the State of Florida), 471 F. 2d 320 (C.A. 5, 1972). (148) United States v. 62.39 Acres of Land, Cattaraugus Co., N.Y. (Seneca Nation of Indians), 473 F. 2d 1404 (C.A. 2, 1973). (149) United States v. 2,431.4 Acres, Hancock Co., Miss. (Clay Calhoun), 4T3 F. 2d 1389 (C.A. 5, 1973). (150) Harris v. United States, 467 F. 2d 801 (C.A. 8, 1972). (151) United States v. 3,317.39 Acres, Jefferson Co., Ark. (Ark-Mo Farms, Inc.), 443 F. 2d 104 (C.A. 8, 1973), cert, denied, 404 U.S. 1025 (1973), 481 F. 2d 417 (1973). (152) United States v. 201.19 Acres, Grays Harbor Co., Wash. (Simpson Timber Co.), 478 F. 2d 1042 (C.A. 9, 1973). (153) United States v. 6,321 Acres, Suffolk Co., Mass. (City of Boston), 479 F. 2d 404 (C.A. 1, 1973). (154) United States v. 444.79 Acres, Clermont Co., Ohio (Lynam), 477 F. 2d 598 (C.A. 6, 1973). (155) United States v. 58.16 Acres, Clinton Co., III. (Cooley), 478 F. 2d 1055 (C.A. 7, 1973). (756) United States v. Mock, 476 F. 2d 272 (C.A. 4, 1973). (157) United States v. Stovall, Unreported opinion (C.A. 6, Jan. 1, 1973). (158) United States v. 20.53 Acres, Osborne Co., Kan. (City of Downs), 478 F. 2d 484 (C.A. 10, 1973). (159) United States v. Six Access Rights in York Co., Va. (Ferguson Corp.), Unpublished opinion (C.A. 4, Dec. 6, 1973). 125 Tax Division Introduction The Assistant Attorney General in charge of the Tax Division represents the United States and officers in litigation, both civil and criminal, arising under the Internal Revenue laws, except proceedings in the United States Tax Court. The Division’s chief activity is to act as trial and appellate counsel for the Internal Revenue Service; however, it also represents other agencies—such as the Departments of Defense and Interior and the Atomic Energy Commission—which may have problems with state and local taxing authorities. While the Division’s mission is to aid the Internal Revenue Service in collecting Federal revenue and to deter willful cheating by taxpayers through the vigorous prosecution of criminal offenders, it has an equal interest in establishing correct legal principles which will serve as guidelines to taxpayers and their representatives as well as the employees of the Service. Every taxpayer with a legal tax problem, after exhausting his administrative remedies with the Service, is entitled to a fair and speedy resolution of the controversy by the courts. The Division endeavors to cooperate with private attorneys to expedite the processing of litigation. Among the types of litigation in which the Division represents the Federal Government are: 1. refund suits brought by taxpayers against the United States to recover taxes alleged to have been erroneously or illegally collected; 2. suits brought by individuals to foreclose mortgages or to quiet title to property in which the United States is named as a party defendant because of the existence of a Federal tax lien on the property involved; 3. suits brought by the United States to collect unpaid assessments, to foreclose Federal tax liens, to obtain judgments against delinquent taxpayers, and to enforce tax claims in bankruptcy, receivership or probate proceedings; 4. proceedings involving mandamus, injunctions and other specific writs arising in connection with internal revenue matters; 5. intergovernmental immunity suits in which the United States resists attempts to apply a state or local tax to some activity or property of the United States; and 6. criminal cases involving, among others, attempts to evade and defeat taxes, willful failure to file returns and to pay taxes, filing false returns and other deceptive documents, making false statements to revenue officials and other miscellaneous offenses involving Internal Revenue matters. Increasing the quality of legal work has always been of major importance to the Division. With this goal in mind, the following management objectives were either introduced for the first time or materially expanded in 1973: 1. all procedural aspects of work were reviewed and, where necessary, improved; 2. authority was delegated to Section chiefs to approve settlements in tax cases within monetary limits, eliminating several steps in the processing of offers in compromise which, in turn, aided in reducing backlog; 3. additional tax dockets were established; 4. extensive surveys of work in U.S. attorneys’ offices were conducted and closer coordination was achieved; 5. a program was instituted to have special assignment of judges to try many of the older cases; 6. the Division intensified its program for identifying and according special treatment to prime tax cases which represent the best opportunities for clarifying major points of tax law; 126 7. new procedures were established with the Internal Revenue Service to speed up the obtaining of administrative files; 8. the joint Tax Committee of the Internal Revenue Service and the Tax Division was reorganized ; 9. a Judgment and Collection Unit was established to oversee the collection of some $115 million in civil and criminal judgments; 10. a Legislative Committee was established for purposes of preparing comments on legislation within the jurisdiction of the Tax Division; 11. after extensive study, including the conduct of a pilot project, the Division revised its method of gathering and reporting statistical data; and 12. the docket room was decentralized to the opera-ating sections. Fiscal year 1973 was another successful year for savings and recovery or revenue through the conduct of litigation. A total of $76 million in judgments was obtained against delinquent taxpayers, the second highest in Division history. Savings in refund suits were $111 million, while taxpayers recovered $22 million. Further, decisions of the Tax Court involving assessed deficiencies of over $4 million were upheld in the courts of appeals. Thus, the total monetary benefits to the Federal Government attributable to the Division’s activities was $191 million, the third highest rate of recovery in the Division’s history. During 1973, the Division’s staff prepared more trial and appellate briefs and tried and argued more cases than in 1972. For the 15 th consecutive year, over 1,000 court appearances were made by Division attorneys and for the 11th straight year, over 1,500 formal trial and appellate briefs were prepared and filed in court. In such areas as pleadings prepared, trials conducted, and briefs prepared, the Division surpassed the fiscal 1972 figures. The year 1973 was another successful year in handling tax litigation in the courts. The Division obtained the conviction of 944 persons for tax offenses. It brought to 13,448 the number found guilty in the past 17 years and 16,349 in the past 41 years. The number of convictions for the past ten years is revealed by the following tables. The number of requests for extensions of time to file responsive pleadings continued at the lowest level since such records have been kept. The time required to process settlement offers, to issue checks to successful taxpayers in refund suits and to dispose of criminal cases remained within acceptable time limits. And the time required to dispose of the average tax case continued to be well under two years. Criminal Tax Responsibility for deciding whether or not to prosecute a criminal tax case rests with the Division. By such centralization, national uniformity is achieved in policy matters and legal positions for all of the Federal Judicial Districts. Cases involving supposed violations of the internal revenue laws are investigated by agents of the Intelligence Division. The resulting investigative report and exhibit file is then reviewed by the appropriate Regional Counsel. Those cases in which it is believed there is evidence to support a criminal prosecution are forwarded to the Criminal Section. There, each case is analyzed and a recommendation is made to the Assistant Attorney General on whether or not the case warrants prosecution and on what charges. In 1973 criminal prosecution memoranda containing a review of the evidence and recommendations were prepared in 1,568 cases, an increase of 48 percent over 1972. If a matter is approved for prosecution, the file containing the report and exhibits is forwarded to the U.S. attorney for the district in which the case is to be tried. The Division sets forth in its letter transmitting the case the precise charges which are to be brought and any specific instructions applying to a particular case. Other procedural matters are also detailed in the letter, such as the indictment form to follow and the date of the statute of limitations on the offense. Regular followup reporting is required by the Division to keep abreast of the progress of the prosecution through the stages of indictment, plea, trial and final disposition. This is achieved through status reporting forms which are sent out periodically. Frequent telephone calls and written communications are also had with the U.S. attorneys on questions of criminal tax law, trial strategy' and departmental policy. There have been an increasing number of requests for attorneys from the Criminal Section to assist in grand jury investigations, trial preparations and to conduct the trial of criminal tax cases. Added to this are those cases in which departmental attorneys are directed to assume responsibility for prosecution. The latter include cases of national importance and cases developed under the Attorney General’s drive on organized crime and racketeering which generally are of great complexity and have ramifications beyond the borders of a judicial district or state. In the past year, members of the Criminal Section staff of 47 attorneys had field assignments on 173 cases in 35 states. The Tax Division and the Criminal Division coordinate closely in cases arising in the drive against organized crime. Under special procedures, tax fraud cases against racketeers and cases involving income from criminal activities are brought to the attention of the Criminal Division. This Division, in turn, consults with 127 128 ADMINISTRATIVE SECTION LITIGATION CONTROL UNIT RESEARCH AND DIGEST UNIT JUDGMENT AND COLLECTION UNIT EXECUTIVE ASSISTANT TAX DIVISION REFUND TRIAL SECTION NO. 1 ND TRIAL ION NO. 3 ASSISTANT ATTORNEY GENERAL deputy Assistant ATTORNEY GENERAL DEPUTY FOR REFUND LITIGATION REFU 5 Ld W COURT OF CLAIMS SECTION REFUND TRIAL SECTION NO. 2 APPELLATE SECTION REVIEW SECTION 1 ■ DEPUTY ASSISTANT ATTORNEY GENERAL CRIMINAL SECTION GENERAL LITIGATION SECTION the Tax Division on the tax aspects of matters developed through the Criminal Division’s investigations. This close liaison enables each Division to carry out its responsibilities more effectively. The Division’s supervision of criminal tax matters enables it to apply the same high evidentiary and policy standards to racketeer tax cases as in other cases. The specialized knowledge of its attorneys is brought to bear on racketeer tax cases and the same high percentage of success has been maintained in this category as in nonracketeer tax cases. To implement its cooperation with the Department’s antirackets drive, the Division has assigned experienced tax prosecutors to maintain liaison with each of the 18 Criminal Division strike forces in the major cities across the country. During the past 12 months, Criminal Section specialists participated in the. .development and prosecution of major rackets figures throughout the United States. In 1973, 311 new racketeer and public corruption cases, including 143 narcotics trafficker cases, were received. The racketeer caseload is 15 percent of the Division’s total criminal tax caseload and is an increase of 125 percent from last year. Some 145 such convictions were obtained in 1973, of which 35 were narcotics traffickers. The Division received 2,009 new criminal tax cases, representing a 28-percent increase over the preceding year and a 79-percent increase over the receipts for 1971. Pending criminal tax cases in the hands of the U.S. attorneys and in the appellate courts numbered 2,253. The Division handled 283 criminal tax appeals. The rate of convictions continues to be 95 percent. A total of 1,094 defendants were convicted and most of these were found guilty on their pleas of either guilty or nolo contendere. In 241 cases going to trial, convictions were achieved in 186 for a trial success rate of 77 percent. Fines totaled $3,026,350. The Criminal Tax Enforcement Program of the Tax Division resulted in the prosecution of taxpayers constituting a cross-section of occupational activities and social positions. Nonracketeer convictions included accountants, lawyers, schoolteachers, municipal officers, corporation officers, doctors, a former Congressman, a Federal Court of Appeals judge and a series of dishonest tax return preparers operating tax services in many of the major cities across the country. While the drive to increase the criminal enforcement of the revenue laws continued and the drive against organized crime intensified during the year, new impetus was given to a program against drug traffickers inaugurated in 1972. The narcotic traffickers program is aimed at middle and upper echelon distributors and financiers involved in narcotics trafficking. These individuals insulate themselves from the daily operations of the drug traffic but their practice of living beyond their means as disclosed in their tax returns makes them vulnerable to successful prosecution under the Internal Revenue Code. Civil Tax Civil cases account for approximately 85 percent of the volume of tax work of the Division. In 1973, 3,331 regular civil tax suits excluding lien and miscellaneous cases involving $300 million in tax liability were filed in trial courts. Taxpayers instituted 2,683 suits involving $235 million, while the Government filed 648 suits involving $65 million. Appellate Cases With minor exceptions, the Division is responsible for handling all appeals from judgments of the district courts in civil and criminal tax cases and for handling all appeals from decisions of the United States Tax Court. The Division also handles appeals to state appellate courts in cases involving certain defined issues, such as the enforcement of Federal tax liens and the applicability of state taxes to the Federal Government or its lessees. The Division, under the supervision of the Solicitor General, also prepares briefs and memoranda in tax cases before the Supreme Court. In 1973, there were 202 appeals from Tax Court decisions and 390 appeals from the Federal district courts processed. The Division handled 42 appeals from state courts and 147 criminal appeals. The Supreme Court acted on 113 petitions for certiorari in tax cases. The Government petitioned in only eight cases—six were granted and two denied. During 1973, 129 taxpayer petitions for review were pending or received, of which 104 were denied. The Supreme Court decided nine cases on the merits, eight for the Government, one for the taxpayers. The Appellate Section prepared 632 briefs on the merits and presented oral arguments in 311 cases. The Government prevailed in 283 of the 386 cases decided by the courts of appeals, a 74-percent margin of victory. SUPREME COURT DECISIONS During its 1972 Term, the Supreme Court ruled on an unusually large number of Federal tax matters. Of eight decisions on the merits, the Supreme Court ruled in favor of the Government in seven cases and, in addition, ruled in favor of the Government’s position in a state tax case in which the Government participated as amicus curiae. In one of the cases decided in favor of the Government (1) the Court held that a railroad company could not deduct, as an allowance for depreciation, the cost of facilities constructed at highway-railroad intersections which were not paid for by the railroad but rather 129 were constructed with public funds appropriated for the development of highway systems. The Court rationalized its seemingly contradicatory decisions in two prior cases (2) to reach the conclusion that a depreciable nonshareholder contribution to a corporation’s capital: must become a permanent part of the corporation’s working capital structure, may not be compensation for the corporation’s services, must be bargained for, must benefit the corporation commensurately with its value, and ordinarily will be used to produce additional income. In another Government victory (5) the Court held that the payment of a portion of compensation to a retirement trust for the benefit of a partnership of physicians—none of whom was eligible to receive the amounts in his tentative account prior to retirement after a specified number of years of service—constituted taxable income to the physicians in the year of payment. The Court relied on a long list of precedents (4) for the proposition that income is taxed to the person who has earned it. In so ruling, the Court expressly distinguished and limited its recent holding (5) that the Commissioner’s allocations of income between two related taxpayers had been improper because it attributed to one taxpayer income it had no legal right to receive. In an important summons enforcement case (6) the Court held that the privilege against self-incrimination asserted by the taxpayer was not available to her to effect the quashing of a summons served on and directing her accountant to produce records which she had transmitted to him for use in the preparation of her returns. The Court found that the taxpayer had effectively surrendered possession of her records to the accountant. Consequently, the accountant’s compliance with the summons involved no compulsion against her nor did she have any legitimate expectation of privacy to invoke her rights either under the Fourth or Fifth Amendments. The Court decided one criminal tax case (7) on its merits. The defendant had contended that in his trial and conviction for the felony of “willfully” making and subscribing a tax return which he did not believe to be true and correct as to every material matter, the district court had wrongfully refused to give a lesser included offense charge to the jury under a misdemeanor statute proscribing the “willful” delivery or disclosure of any material to the Internal Revenue Service known to be false or fraudulent. In reversing the district court, the court of appeals had held that “willfully,” as used in the felony statute, implies an evil motive and bad faith, but that the same word as used in the misdemeanor provision requires only a showing of unreasonable, capricious, or careless disregard for the truth. The Supreme Court reversed the court of appeals and held that the word willfully has the same meaning in both sections and connotes the voluntary, intentional violation of a known legal duty. Thus, the district court had been correct in refusing to give the requested lesser-included-offense instruction. The single Government loss (8) came in an estate tax case in which the Court invalidated a Treasury regulation which required that mutual fund shares be valued for estate tax purposes at their “asked” or public offering price rather than at their “bid” or redemption price. The Court reasoned that the regulation imposed an unreasonable and unrealistic measure of value which was clearly inconsistent with the provisions of the Investment Company Act of 1940 which governs the operations of mutual funds. The Court disposed of three cases in per curiam opinions without oral argument. In one of these decisions (9) the Court held that no portion of a commercial airline pilot’s automobile commuting expenses could be deducted as ordinary and necessary business expenses where it had been stipulated that the same commuting expenses would have been incurred even if the taxpayer had not had to transport his flight bag and his overnight bag to work. In a second case (10), the Court held that the entry of a judgment obtains under the Rules of Civil Procedure only when it has been “set forth on a separate document” and that the Government’s notice of appeal from such action was not untimely even though a formal judgment, on a separate document, had not been entered until some two years after the jury had returned a verdict. In a third per curiam opinion (11) the Court held that under applicable Federal savings bond regulations, the purchaser and registered co-owner of Series E U.S. savings bonds could not, by physical inter vivos delivery of the bonds to the other registered co-owner with the intent to make a gift, divest himself of the incidents of ownership so as to prevent inclusion of the bonds in his gross taxable estate. Finally, the Government was requested by the Court to express its views as amicus curiae in a state tax matter with respect to the application of a Federal statute (12). Agreeing with the Government’s position in that case, the Court upheld South Carolina’s imposition of income tax on the activities of an out-of-state liquor distributor whose contacts with the state were required by state liquor control laws. The Court rejected the taxpayer’s argument that it was impermissible to impose a tax based solely on localized activities which, but for the state liquor law requirements, would not have been undertaken. COURT OF APPEALS DECISIONS An extremely wide variety of Federal tax issues were resolved at the appellate level. Cases decided this year—in addition to those involving typical income and estate tax questions—concerned the jurisdiction of tax-exempt organizations to sue for injunctive relief 130 to protect their exempt status and the constitutionality of certain taxing statutes. In two cases (13) two courts of appeals held that non-profit educational organizations which had failed to bring themselves in compliance with the Internal Revenue Service’s requirement that such schools demonstrate the absence of racially discriminatory policies in order to maintain tax-exempt status could not bring suit to enjoin the revocation of their exempt status or the withdrawal of advance assurance of deductibility of charitable contributions. In both cases it was held that the district courts lack jurisdiction to entertain such suits since the schools could not demonstrate that the Government could in no event ultimately prevail in a suit for refund of taxes paid by the schools. In a third case (14), however, the Court of Appeals for the District of Columbia held that a tax-exempt educational corporation could properly bring suit to compel its reinstatement as an organization, contributions to which are tax deductible. The court also ruled that significant constitutional questions had been raised (requiring the convening of a three-judge district court) as to the validity of the Code’s denial of eligibility to organizations to receive tax-deductible contributions if a “substantial” part of their activities are aimed at influencing legislation. The Government’s petition for certiorari was granted and the case will presumably be argued before the Supreme Court at its next term. The same tax-exemption provision was also at issue in a case (15) involving a nonprofit religious corporation headed by the Reverend Billy James Hargis. The court rejected all the corporation’s constitutional objections to the denial of its tax exemption and held that the exemption had been properly revoked, retroactively, on the ground that the corporation’s activities had consisted in substantial part in attempting to influence legislation and intervening in political campaigns on behalf of candidates for public office. The Government’s action, the court held, violated neither the free speech nor the free exercise clause of the First Amendment. In another case involving constitutional issues (16) the court invalidated as unconstitutionally discriminatory the provisions of the Internal Revenue Gode which deny an unmarried taxpayer deductions for the care of dependents, if such care is for the purpose of enabling the taxpayer to be gainfully employed, but allow the same deductions to women, widowers, and husbands whose wives are incapacitated or institutionalized. The Government filed a petition for certiorari from this decision which was denied. In another case (17) however, the court ruled that the application of the tax rates for single individuals without the income-splitting benefits accorded to married couples filing joint returns did not contravene either the Fifth, Ninth, or Sixteenth Amendments or Article I of the Constitution. In a final case of constitutional dimension (18) the marihuana excise tax was upheld against the contention that it constituted an impermissible infringement of the Fifth Amendment right to avoid selfincrimination. Although it had earlier been held (19) that a criminal conviction based on failure to meet the reporting requirements of the marihuana excise tax must fail on Fifth Amendment grounds, the present case dealt only with the imposition of a civil tax liability arising with no need for voluntary disclosure by the taxpayer of any underlying possession of the drug. Thus, the court reasoned, the civil tax provision and the liability assessed thereunder could be sustained without doing violence to the taxpayer’s right to avoid incriminating himself. In corporate tax matters, an important decision (20) was handed down which has great effect on the motion picture industry. The court held that motion picture film negative constituted “tangible personal property” with a useful life in excess of eight years for purposes of qualifying for the seven-percent investment credit. In so ruling, the court held that all production costs of creating the negative were to go into the calculations of the investment credit and were not properly attributable to the intangible copyright attaching to the artistic work. In another case of great monetary importance (21), the court held a deduction for bond discount was available to a corporation which exchanged its five-percent cumulative preferred stock for five-percent debentures in identical face amounts. The deduction, the court ruled, was to be computed on the difference between the fair market value of the stock at the date of exchange and the value of the bonds. In contrast, another court held (22) that no bond discount arose where the taxpayer corporation reclassified its common stock and issued new common stock and debentures to its shareholders with aggregate par and face amount in excess of the par value of the old common stock. In another holding (23) of potentially great effect on the collection of revenues, the court ruled that a utility company was entitled to depreciate equipment employed in the construction of capital improvements used in its trade or business. This holding obtained in contradiction to the generally accepted accounting procedures by which such expenses—and, indeed, the labor costs associated with capital construction—are capitalized over the useful life of the capital improvement being constructed rather than over the shorter useful life of the construction equipment itself. The courts uniformly rejected the Government’s contention that traditional debt-equity criteria should 131 be employed in determining whether purported loans to a Subchapter S corporation in reality constituted a “second class of stock” which, by statute, would cause a revocation of the corporation’s Subchapter S status, Instead, the courts ruled (24) the form of the loans should govern over their substance in order to give shareholders a greater degree of certainty that the tax status of their Subchapter S corporations would not unexpectedly be altered. The Internal Revenue Service subsequently abandoned its position in this area and other pending appeals were dismissed (25). Finally, in the estate tax area, two decisions of note were rendered this year. In the first (26) the court invalidated a Treasury regulation to the extent that it imposed any limitation on the deduction for administrative expenses incurred in the selling of a decedent’s real property other than that the expense must be an allowable probate expense under local state law. In the second case (27) the court held that the right to select optional modes of settlement was an incident of ownership of a group term life insurance policy, sufficient by itself to require inclusion of the proceeds of the policy in the decedent’s gross estate. TRIAL COURT PROCEEDINGS Division attorneys tried 652 civil cases in the lower courts. Of the total, 477 were before the Federal district courts, 121 before state courts, and 54 before the Court of Claims. The Government’s position was upheld in 709 of the 956 decisions handed down by the trial courts. The Division also continued its active preparation of cases for trial. Its attorneys took 2,029 discovery actions and conducted 788 pretrial proceedings. Civil cases at the trial level were concerned with over $955 million in tax liability and involved a variety of transactions. Trial Court Cases REFUND SUITS The Division continued its efforts to litigate those cases representing the best opportunities for clarifying major points of tax law, thus giving the general public and the business community clear-cut guidance. As noted in prior annual reports, one of the most important areas of civil tax litigation from the standpoint of the impact on the revenue, involves the construction and application of the Life Insurance Company Income Tax Act of 1959 which substantially revised the method of taxing life insurance companies. Two cases were decided at the trial level (28) and at year end there were some 20 cases pending, primarily in the Court of Claims. Another important area of litigation involves the reallocation of income and deductions among related parties under Section 482 of the Internal Revenue Code. During the year, one decision was rendered at the trial level (29). Also, during the year, a trial was conducted over a period of nine months, including 100 days of trial in the United States and abroad (30). Plaintiff in this case made sales of products to its Swiss-based, wholly-owned subsidiary for resale primarily in West Europe. It was the Government’s position that such sales were made at unreasonably low prices, thereby enabling the subsidiary to resell the products at substantial profits which were not subject to United States income tax. A substantial amount of tax was at stake in this case, which is an important judicial test of the Section 482 regulations involving the pattern, used by many American companies, of selling goods at what the Government claims to be low prices to subsidiaries in tax haven countries. A suit was instituted challenging the tax treatment of amount withheld from the salary of an Internal Revenue Service employee and contributed to the civil service retirement fund (31). The plaintiff contended that the amounts withheld were not taxable during the year of withholding since they were not actually or constructively received. The potential impact of this litigation on the retirement system and the fiscal impact is tremendous. Another important issue being litigated is whether bond discount can arise when a corporation exchanges interest-bearing bonds for all or a part of its outstanding debt and/or stock, allegedly worth less than the face value of the new bonds, when the face value of the new debt does not exceed the amount originally paid for the stock or old debt. Decisions at the trial level were rendered in two cases (32). In a case involving original issue discount (33) the Court of Claims held that the taxpayer incurred no amortizable original issue discount when it issued interest-bearing convertible debentures at par. The Court held that a nonprofit psychiatric hospital was not exempt from tax under Section 501(c)(3) of the Code since it was operated almost exclusively for the benefit of the attending psychiatrists, some of whom were the former shareholders of the plaintiff’s predecessor for profit hospital and was not operated exclusively for charitable purposes (34). In another case (35) the Court held that an organization whose activity was to arrange for the repaving of streets, curbs, and sidewalks of New York City required to be repaved by its members licensed master plumbers) was exempt from tax as a social welfare organization under Section 501(c)(4) and as a business league under Section 501(c)(6). 132 GENERAL LITIGATION The General Litigation Section is responsible for supervising and handling, at the trial level, all civil tax litigation in both Federal and state courts, except suits for the refund of taxes paid. These judicial! proceedings include suits to reduce tax assessments to judgment and to enforce tax liens; suits to establish transferee liability and to set aside fraudulent transfers; suits to enforce levies and to recover taxes erroneously refunded; suits to enforce Internal Revenue summonses issued pursuant to Section 7602 of the 1954 Code for the purpose of ascertaining the correctness of returns and determining liability of a person for taxes; the defense of suits against the United States under 28 U.S.C., Section 2410; as well as representing the tax interests of the United States in bankruptcy and receivership proceedings. This past year saw a continuation of the litigation involving the tax exemption provisions of the Internal Revenue Code. Among the new cases which have been instituted, two have challenged the right of certain organizations to tax exempt status under Section 501 (c) (3) of the 1954 Code on the ground that they discriminated against women by refusing to admit them to membership. In one case (36) the Court denied the application for a three-judge court and dismissed one count of the complaint which had alleged unconstitutional Fifth Amendment discrimination for failure to state a claim in that no state action was involved merely because of the Government’s ruling that an organization was entitled to a tax-exempt status. The second count of the complaint, which alleged that according tax-exempt status to organizations which discriminate against women on the basis of sex is a violation of Federal policy, is pending before the Court on motions to dismiss and for summary judgment. In the second case (37) the plaintiff, a local chapter of the Jaycees, was expelled because it admitted women to its membership. In its suit, the plaintiff alleged that the state and National Jaycees organizations had been improperly classified as civic organizations under Section 501(c)(4) of the 1954 Code and that thereby the Federal defendants had endorsed and subsidized the discrimination practiced by the state and National Jaycees organizations. The Government’s motion to dismiss was granted and the case is now pending on appeal. In two other new cases public interest corporations have invoked the equity powers of the Court for the purpose of obtaining a favorable ruling from the Treasury Department that the organization is either exempt from Federal taxation under provisions of Section 501(c) of the 1954 Code or to prevent the Secretary from revoking its tax-exempt status. In one such case (38) a mandatory injunction was sought requiring the Secretary to issue an affirmative ruling that it was exempt from Federal income taxes under Section 501(c)(3) and qualified to receive deductible contributions under Section 170(c) (2). The organization asserted that it is engaged in activities in support of such goals as protection of the environment, vindication of minority rights, and achievement of greater product safety. After the suit was brought, the Secretary issued a ruling denying exemption on the ground that the organization was engaged in a non-qualified activity in that it purchased stock in various corporations and engaged in private proxy contests for the purpose of fostering litigation to achieve its ends. In another case (39) an organization which provided funds for the establishment and operation of coffee houses and newspapers for military personnel which encouraged opposition to the war in Southeast Asia sought an injunction enjoining revocation of its tax-exempt status under Section 503(c)(3). Its exempt status was revoked because its operations were determined to contravene that part of the statute which prohibits engaging in substantial activities to influence legislation. The tax laws and regulations pertaining to the financing of Presidential political campaigns were the subject of litigation in five cases. In one (40) the plaintiff, sueing as a taxpayer and voter, attacked the constitutionality of the Presidential Election Campaign Fund Act (26 U.S.C., Sections 9001-9021) and its complementary provision (26 U.S.C., Section 6096) on the ground that it was repugnant to the First and Fifth Amendments. The Act deals with the creation of a fund for the purpose of providing public financing as an alternative way of financing the general election campaigns of Presidential and Vice-Presidential candidates. The financing is to be provided by a “check-off” system whereby a taxpayer may designate that $1 of his tax liability be set aside in a general nonpartisan account or in an account earmarked for a specific political party (Section 6096). The Court granted the Government’s motion to dismiss the complaint holding that plaintiff had no standing to maintain the action inasmuch as he had not shown that he was a member of any political party adversely affected by the statute. Another case (41) sought to enjoin the Commissioner’s implementation of Section 6096 of the Code. Specifically, it objected to the requirement that the “check-off” designation be made on a form separate and apart from Form 1040 and Form 1040A, complained that the Internal Revenue Service had not given sufficient publicity to the provisions of the Act and argued that the regulation improperly allowed designation to the fund to be made only at the time of the filing of an original return. The Court ruled in favor of the Government except as to the last item. Thereafter, Congress amended Section 6096 and thereby drastically changed the terms of the statute. The Court denied the Government’s 133 motion for reconsideration and the case is now pending on appeal on the question of whether the Court’s ruling improperly usurps the rule-making authority of the Secretary of the Treasury under the challenged Act, as amended, with respect to the time of a taxpayer designation to the fund. In another case brought under the Freedom of Information Act (42) the plaintiff sought an order requiring the Internal Revenue Service to permit inspection and copying of certain letters and documents relating to the adoption of the temporary regulations implementing Section 6096 of the 1954 Code. The two other cases involve the validity of Revenue Ruling 72-355, which recognizes an exclusion from gift tax liability of gifts up to $3,000 each by one individual per year to each of multiple political campaign committees, provided the officers of the respective committees are not the same. One of these suits (43) brought by Ralph Nader under the Act, sought to have the Government produce certain records, characterized as third-party written communications, either which led to the adoption of the Revenue Ruling or which show at whose direction the ruling was issued. Failing in his attempt, Nader was allowed to amend his complaint to seek an injunction setting aside the ruling as invalid on the ground that it was the product of improper influence. In this regard, depositions of several officials of the Treasury Department and the Internal Revenue Service have been taken and the case is presently under submission with respect to the plaintiff’s motion for summary judgment and the Government’s motion to dismiss. By virtue of the amended complaint, this case now poses the same issue as that involved in another similarly prominent case (44). Attorneys in the Section also handled cases involving state and local taxes. These cases usually arise when a state or local government seeks to impose its tax on the Federal Government, its instrumentalities and agencies, or its contractors. Some involve the protection of nondomiciliary servicemen under the provisions of Section 514 of the Soldiers’ and Sailors’ Civil Relief Act. Examples of these include a case (45) where the Government successfully challenged the application of California’s sales tax with respect to leases of tangible personal property to the Government; one (46) where the Government is appealing an adverse ruling by the New Mexico Commissioner of Revenue upholding the imposition of its gross receipts and compensating use tax with respect to an operations contractor of a Government-owned installation; and another (47) which questions the application of the South Dakota sales and use tax to procurement and use of Government property by Government contractors. In addition, favorable trial court decisions were obtained in exempting nondomiciliary servicemen from Pennsylvania school per capita taxes (48) and in invalidating the application of the Texas sales and use tax to procurement and use of tangible personal property by Federal contractors (49). Compromise of Civil Tax Cases The Division took final action on 1,059 settlement offers under authority of Section 7122 of the Internal Revenue Code. The comparable figure for 1972 was 1,298 and for 1971 for 1,207. Of the 1,059 offers acted on in 1973, 843, or approximately 80 percent, were approved and 216, or approximately 20 percent, were rejected. Likewise, in 1972, 80 percent were approved and 20 percent rejected. Final actions for fiscal year 1973 were taken as follows: Approved Rejected Total Attorney General..................................... 59_______________ 59 Assistant Attorney General......................... 174 35 209 Chief, Review Section______________________________ 252 11 263 Chiefs of other sections___________________________ 358 170 528 Of the 233 settlements approved, 75 involved refunds in excess of $100,000 which were submitted to the Joint Congressional Committee on Internal Revenue T axation. The 59 cases acted on by the Attorney General in 1973 represent a continuation of the upward trend established in the prior 3 years: 1970, 26; 1971, 48; 1972, 51. The 75 cases submitted to the Joint Congressional Committee on Internal Revenue Taxation (those involving refunds in excess of $100,000), though down from 109 in 1972, are still in excess of the number thus submitted in 1971 (71) and are almost twice the number submitted in 1970 (38). Thus, the overall civil tax settlement picture for 1973 is one of a decrease in the number of settlements of smaller cases and an increase in the number of cases processed for action at the Assistant Attorney General and Attorney General levels. The category which has continued to increase usually requires extensive documentation due to the size and complexity of the cases involved. Statistical Review of 1973 Fiscal year 1973 was another successful year for savings and recovery of revenue through the conduct of litigation. A total of $76 million in judgments was obtained against delinquent taxpayers, the second highest in Division history. Savings in refund suits were $111 million, while taxpayers recovered $22 million. Further, decisions of the Tax Court involving assessed deficiencies of over $4 million were upheld in the courts of appeals. Thus, the total monetary benefit to the Federal Government attributable to the Division’s 134 activities was $191 million, the third highest rate of recovery in the Division’s history. The tables and charts which follow show the trend in the volume of new tax litigation over the past 11 years. It will be noted that receipts during this period fluctuated around the 10,000 case-plateau. What lies ahead will be directly influenced by the recent revision of the tax laws, increased involvement in the Administration’s organized crime program, further increase in the Internal Revenue Service’s enforcement staff, continued business expansion and prosperity, and, the growing population. During 1973, the Division’s staff prepared more trial and appellate briefs and tried and argued more cases than in fiscal 1972. For the 15th consecutive year, over 1,000 court appearances were made by Division attorneys, and for the 11th straight year, over 1,500 formal trial and appellate briefs were prepared and filed in court. In such areas as pleadings prepared, trials conducted and briefs prepared, the Division surpassed the fiscal 1972 figures. Supreme Court: The Division won eight of nine tax cases. Court of Appeals: The Government’s position was upheld in 283 of 383 decisions of the courts of appeals (a 74 percent margin). Trial Courts: The Government was successful in 709 of 898 trial court judgments (a 79 percent margin). Criminal Cases: The Division obtained the conviction of 944 persons for tax offenses. It brought to 13,448 the number of persons found guilty in the past seventeen years and 16,349 in the past 41 years. The number of convictions for the past ten years is revealed by the following figures: The amount of monetary gain is not a true measure of the success of the Division and it fluctuates from year to year, depending upon the taxes involved in concluded cases. Of paramount importance is the contribution of litigation to the development of sound interpretations of the revenue laws and their effect upon the determination of cases at the administrative level. Tax Division Wins and Losses Percent of Won Lost Total Govern- ment wins 1973 1972 1973 1972 1973 1972 1973 1972 Supreme Court.......... Circuit Court of Appeals. District Court........ Court of Claims_______ State Court............ 8 2 12 283 264 100 82 709 6Q1 189 77 57 12 13 8 77 116 29 22 9 4 89 50 383 346 74 76 898 678 79 88 70 20 82 60 106 138 66 84 Total................ 1,134 995 332 191 1,466 1,186 77 84 1973 1972 1971 1970 1969 1968 1967 1966 1965 1964 1963 Cases Resulting In Convictions 1,094 835 775 612 673 664 653 632 625 607 597 [Amount in percent] 1973 1972 1971 1970 1969 1968 1967 Government wins .... 78 84 79 81 78 75 75 Criminal convictions ....-95 95 95 95 95 95 95 Taxpayer’s recovery of money ..... 22 23 22 23 24 25 21 135 Average Time 1973 1972 1971 1970 1969 1968 1967 I age nine tu . Dispose of a tax case___________ 1 year, 10 months.. 1 year, 8 months. _ 1 year, 9 months._ 1 year, 10 months. 1 year, 8 months.. 1 year, 10 months. 1 year, 7 months. Process a criminal case in de- 2 months, 25 days.. 2 months, 29 days.. 3 months, 1 day.... 2 months, 10 days.. 3 months, 5 days... 2 months, 29 days.. 3 months, 8 days, partment. Process a settlement offer______2 months...........2 months, 2 days... 2 months________2 months, 1 day______2 months, 2 days... 2 months, 4 days_2 months, 11 days. Issue a check to a taxpayer_____1 month, 5 days____1 month,5 days.... 1 month,7 days__1 month,9 days_______1 month, 17 days.. 2 months,7 days... 1 month, 28 days. Average number of extensions 0.02_______________ 0.04______________0.04_______________ 0.04---------------- 0.05................. 0.05____________0.06. per case. Percentage of cases under 2 72_______________ 74.----------------- 71...------------- 73------------------ 73---------------- 72----------------- 74. years old. Comparative Workload Summary 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Pending 5,212 5,880 5,610 5,923 5,909 6,031 5,827 5,824 6,268 6, 220 6,702 Received 9,811 10,362 10,608 10,142 9, 492 9,602 10,127 9,835 10,036 10,528 10,601 Closed 9,143 10, 632 10, 295 10,156 9,370 9,806 10,130 9, 391 10,084 19,046 9,851 Pending 5,880 5,610 5,923 5,909 6,031 5,827 5, 824 6, 268 6,220 6,702 7,452 Comparison of Work Received and Closed 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Received Civil cases .. 2,629 2, 877 3,035 2,855 2,871 2,893 2,731 2,869 2,999 3,349 3,331 Criminal cases 743 727 745 786 695 852 934 1,077 1,120 1, 570 2,009 Total cases 3,372 3,604 3,780 3,641 3,566 3,745 3,665 3,946 4,119 4,919 5,340 Liens 4,829 4, 880 4,853 4,624 4,835 4,125 3,428 3, 528 4,108 4,081 4,050 Miscellaneous 1,610 1,878 1,975 1,877 1,091 1,732 3,034 2,361 1,809 1,528 1,211 Total miscellaneous.. 6,439 6, 758 6, 828 6,501 5, 926 5,857 6,462 5,889 5,917 5,609 5,261 Total 9,811 10,362 10,608 10,142 9, 492 9,602 10,127 9,835 10,036 10, 528 10,601 Closed Civil cases 2,484 2,810 2, 585 2, 911 2,695 3,178 2,1Z1 2,515 3,054 3,210 3,127 Criminal cases 646 708 700 719 651 711 1,024 1,046 1,005 1,207 1,596 Total cases 3,130 3, 518 3,285 3,630 3,346 3,889 3,751 3, 561 4, 059 4,417 4,723 Liens 4,658 5,020 4, 894 4,605 4, 853 4,138 3,423 3,527 4,108 4,081 4,050 Miscellaneous 1,355 2, 094 2,116 1,921 1,171 1,779 2,956 2,303 1,917 1,548 1,078 Total miscellaneous 6,013 7,114 7,010 6, 526 6,024 5,917 6,379 5,830 6,025 5,629 5,128 Total 9,143 10,632 10,295 10,156 9,370 9,806 10,130 9,391 10,084 10,046 9,851 Work Production 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 Pleadings prepared 1,854 2, 506 2,736 3,190 2, 834 3,152 3,167 2,835 3,356 3,565 3,421 Discovery action 1,776 2,039 2, 843 3,755 2, 934 2, 435 2, 521 2,203 2,214 2,053 2,029 Pretrials 1,389 1,121 1,194 1,215 1,193 1,007 1,032 852 863 839 788 Trials 766 1,211 1,136 1,159 1,202 1,049 1,126 1,127 1,159 1,054 1,054 Appellate arguments 340 321 416 296 317 297 353 366 373 342 342 Briefs prepared 1,617 1,578 1,539 1,598 1, 539 1,557 1,630 1,662 1,674 1, 882 1,906 Legal memos 3,610 3, 523 3, 547 3, 599 3,734 3,792 3, 840 3,657 3,975 3,836 4,335 136 PERCENTAGE OF SUCCESS 137 138 COMPARATIVE SUMMARY OF AMOUNT OF MONEY IN LITIGATION GOVERNMENT SUITS, $65,173,864; TAXPAYERS’ SUITS, $234,915,667; TOTAL SUITS, $300,089,531. COMPARATIVE SUMMARY OF SAVINGS AND COLLECTIONS (In millions) 525-134 0 - 74 - 10 139 CASES CITED (7) United States v. Chicago, Burlington & Quincy Railroad Co., 41 U.S. Law Week 4783. (2) Detroit Edison Co. v. Commissioner, 319 U.S. 98 (1943), and Brown Shoe Co. v. Commissioner, 339 U.S. 583 (1950). (5) United States v. Basye, 410 U.S. 441 (1973). (4) Beginning with Lucas v. Earl, 281 U.S. Ill (1930). (5) Commissioner v. First Security Bank of Utah, 405 U.S. 394 (1972). (6) Couch v. United States, 409 U.S. 322 (1973). (7) United States v. Bishop, 412 U.S. 346 (1973). (8) United States v. Cartwright, 411 U.S. 546 (1973). (9) Fausner v. Commissioner, 41 U.S. Law Week 3670 (June 26, 1973), rehearing denied, 42 U.S. Law Week, 3200 (October 9, 1973). (10) United States v. Indrelunas, 411 U.S. 216 (1973). (77) United States v. Chandler, 410 U.S. 257 (1973). (12) Heublein, Inc. v. South Carolina Tax Comm’n, 409 U.S. 275 (1972). (13) Bob Jones University v. Connally, 472 F. 2d 903 (C.A. 4, 1973), certiorari granted, 42 U.S. Law Week 3194 (Oct. 9, 1973); Crenshaw County Private School Foundation v. Connally, 474 F. 2d 1185 (C.A. 5, 1973), petition for certiorari pending (No. 73-170). (14) "Americans United,” Inc. v. Walters, 477 F. 2d 1169 (C.A. D.C. 1973), certiorari granted, 412 U.S. 927 (1973). (75) Christian Echoes National Ministry, Inc. v. United States, 470 F. 2d 849 (C.A. 10, 1972), cert, den., 42 U.S. Law Week 3198 (Oct. 9,1973). (16) Moritzv. Commissioner, 469 F. 2d 466 (C.A. 10, 1972), cert, den., 412 U.S. 906 (1973). (77) Kellems v. Commissioner, 474 F. 2d 1399 (C.A. 2, 1973), cert, den., 42 U.S. Law Week 3195 (Oct. 9, 1973). (78) Simmons v. United States, 476 F. 2d 715 (C.A. 10, 1973). (19) Leary v. United States, 395 U.S. 6 (1969). (20) Walt Disney Productions v. United States, 480 F. 2d 66 (C.A. 9, 1973), petition for certiorari pending (No. 73-1017) (27) National Alfalfa Dehydrating & Milling Co. v. Commissioner, 472 F. 2d 796 (C.A. 10, 1973), certiorari granted, 42 U.S. Law Week 3194 (Oct. 9, 1973). (22) Claussen’s Inc. v. United States, 469 F. 2d 340 (C.A. 5, 1972). (23) Idaho Power Co. v. Commissioner, 477 F. 2d 688 (C.A. 9, 1973), certiorari granted, 42 U.S. Law Week 3270 (Nov. 5, 1973). (24) Shores Realty Co. v. United States, 468 F. 2d 572 (C.A. 5, 1972) ; Amory Cotton Oil Co. v. United States, 468 F. 2d 1046 (C.A. 5, 1972); Portage Plastics Co. v. United States, 31 A.F.T.R. 2d 864 (C.A. 7, Mar. 2, 1973). (25) Appeals were dismissed in Stinnett v. Commissioner, 54 T.C. 221 (1970); H.R. Spinner Corp. v. Commissioner, P-H Memo T.C., par 70,099 (1970); and Estate of Allison v. Commissioner, 57 T.C. 174 (1971). (26) Estate of Park v. Commissioner, 475 F. 2d 673 (C.A. 6, 1973). (27) Estate of Lumpkin v. Commissioner, 474 F. 2d 1092 (C.A. 5, 1973). (28) Great Commonwealth Life Ins. Co. v. United States 31 A.R.T.R. 2d 358 (N.D. Tex., Nov. 1, 1972), appeal pending (C.A. 5); United American Ins. Co. v. United States, 31 A.F.T.R., 475 F. 2d 612 (Ct. Cl. 1973). (29) Liberty Loan Corp. v. United States, 32 A.F.T.R. 2d 5028 (E.D. Mo., Apr. 13, 1973), appeal pending (C.A. 8). (30) DuPont v. United States (Ct. Cl.). (31) Hoganv. United States (E.D. Mich.). (32) Gulf Mobile & Ohio R.R. Co. v. United States, 31 A.F.T.R. 2d 436 (S.D. Ala., Nov. 27, 1972), appeal pending (C.A. 5); Cities Service Co. v. United States, 32 A.F.T.R. 2d 5244 (S.D. N.Y., June 12, 1973). (33) AMF, Inc. v. United States, 476 F. 2d 1351 (Ct. Cl.), 1973, petition for certiorari pending (No. 73-73). (34) Harding Hospital, Inc. v. United States, 32 A.F.T.R., 2d 5011 (S.D. Ohio, Apr. 27, 1973), appeal pending (C.A. 6). (35) Contracting Plumbers Cooperative Restoration Corp. v. United States, 30 A.F.T.R. 2d 5780 (E.D.N.Y., Oct. 31, 1972), reversed (C.A. 2, Dec. 13, 1973). (36) Gladys McCoy v. Schultz, 31 A.F.T.R. 2d 858 and 31 A.F.T.R. 2d 1397 (D.C. D.C., Feb. 13, 1973). (37) Junior Chamber of Commerce of Rochester, Inc. v. The United States Jaycees (N.D. of Okla., Civil Action No. 73-C-66). (38) Center on Corporate Responsibility, Inc. v. Shultz, 32 A.F.T.R. 2d 5088 (D.C. D.C., May 9, 1973), appeal dismissed, case remanded, 32 A.F.T.R. 2d 5298-A (D.C. D.C., July 6, 1973) (C.A. D.C., May 31, 1973). (39) United States Servicemen’s Fund v. Shultz (D.C. D.C., Civil Action No. 780-73). (40) Dennison v. United States, 31 A.F.T.R. 2d 1348 (S.D. N.Y., May 1, 1973). (41) John W. Gardner and Common Cause v. Shultz, 32 A.F.T.R. 2d 6097 (D.C. D.C., Aug. 1, 1973), appeal pending (C.A. D.C.). (42) Eric Schwartz v. Internal Revenue Service (D.C.D.C., Civil Action No. 945-73). (43) Ralph Nader, Public Citizen v. Internal Revenue Service (D.C.D.C., Civil Action No. 185-72). (44) Tax Analysts and Advocates v. Shultz (D.C.D.C., Civil Action No. 594-73). (45) United States v. California State Board of Equalization, (C.D. Cal.), Civil No. 72-2568-R). (46) United States, Zia, and LACI v. New Mexico (N. Mex. Ct. of Appeals, No. 1217). (47) United States, Consolidated Coal and Stearns-Rogers v. South Dakota (Hughes County Circuit Court, Sixth Judicial Circuit, S.Dak.). (48) Dapper and United States v. Upper Moreland Township (Pa.) School District (Court of Common Pleas, Montgomery County, Pa., Equity Div., No. 71-00655, Feb. 20, 1973). (49) Day and Zimmerman & United States v. Calvert, Travis County, Tex., Civil No. 186,214 decided May 25, 1973), appeal pending (C.T. Civ. App., Third Supreme Judicial District). 140 Bureau of Narcotics and Dangerous Drugs By the beginning of 1973, four years of training, planning, and evaluation solidified the Bureau of Narcotics and Dangerous Drugs into an internationally recognized law enforcement agency. During the year, more than 9,625 pounds of heroin or its equivalent were removed from the worldwide illicit market by the Bureau. Bureau agents arrested or assisted State, local, and foreign police in investigations leading to the arrests of nearly 8,300 narcotics violators. In the pursuit of its responsibility to prevent legally manufactured drugs from reaching the illicit market, the Bureau initiated more than 1,400 investigations of parties who handle these drugs. The Bureau’s tasks were not limited to those which attack only the supply side of the supply-demand equation. The flow of illicit drugs will not be stopped until the demand for them is eliminated. Aware of this reality, the Bureau took an active role in the field of drug abuse prevention and scientific support. It worked closely with educators, local and State government officials in planning and conducting community action programs. On March 28, 1973, as a step toward increasing the effectiveness of the Federal anti-narcotics enforcement effort, President Nixon sent Reorganization Plan No. 2 to the Congress. This plan proposed the merger of the Bureau with the Office for Drug Abuse Law Enforcement and the Office of National Narcotics Intelligence and called for the transfer of drug investigative and intelligence functions of the Treasury Department’s Bureau of Customs to the new agency.' With no adverse action from the Congress, the plan went into operation on July 1, 1973, combining the Federal drug law enforcement agencies under one command—the Drug Enforcement Administration. Operations In the field of drug law enforcement, principal emphasis is placed on the source and distribution of illicit drugs of abuse rather than on the abusers themselves. These drugs may be divided roughly into two categories which include those of clandestine origin, such as heroin, cocaine, marihuana, and LSD and those which are illicitly diverted from a legitimate origin, such as barbiturates, amphetamines, certain narcotics, and tranquilizers. With certain exceptions, most of the drugs of clandestine origin are smuggled into the United States from abroad, whereas a large part of the diverted legitimate drugs are manufactured domestically. In all cases these substances are made available to abusers through the activity of various criminal groups operating at different levels within the market. The Bureau’s principal emphasis in enforcement of the law has been on stopping the flow of drugs at their foreign sources and disrupting illicit domestic commerce in them at the highest and most organized levels. OFFICE OF CRIMINAL INVESTIGATIONS The Office of Criminal Investigations has responsibility for the Bureau’s foreign and domestic criminal enforcement programs. In this role, the Office planned and implemented such programs as the geographic drug enforcement program, special enforcement operations, mobile task forces, organized crime programs, and Internal Revenue narcotic traffickers program. These programs were coordinated with regional offices and other Federal agencies. The basic Bureau enforcement program—the geodrug enforcement program—was designed to provide 141 A portion of warehoused marihuana seized in “Operation Cactus,” a cooperative Government of Mexico/U.S. investigative effort conducted along the Southwest border. a multilevel attack on selected violators. It combines drug categories, such as heroin, cocaine, hashish, and others with domestic and foreign geographic areas. Thus, the United States, Europe, the Middle East, Southeast Asia, South America, and other locations were considered drug trafficking situations called geodrug areas. The program employed the use of violator rating systems which provided broad selectivity and a measurement of effectiveness. The objective of this program was to continue an effective enforcement action designed to suppress illicit drug distribution organizations on a national and worldwide basis through selective enforcement. It directed 80 percent of the Bureau’s enforcement resources toward the arrest and prosecution of the highest level violators. On October 26, 1972, a year-long joint investigation by Mexican Federal Judicial Police, Bureau of Customs, and Bureau agents into the manufacture and distribution of black amphetamine capsules was culminated in Monterey, Mexico, when the suspected laboratory operator was arrested in possession of 195,-000 unmarked black amphetamine capsules and red secobarbital capsules called “red devils.” Follow-up investigation resulted in the seizure of the illicit laboratory with 33 pounds of bulk amphetamine powder and 66 pounds of sodium secobarbital powder. Laboratory production was estimated at 25,000 dosage units per day. On March 13, 1973, a five-week enforcement operation—Operation Cactus—along the Arizona-Mexico border—resulted in the crippling of a major drug ring, the seizure of $19.1 million in illegal naroctics including 24.5 tons of marihuana, and the arrest of over 100 traffickers. 142 The international enforcement operation was carried out by the Bureau, the Bureau of Customs, the Mexican Government, and State and local police in the Sonora, Mexico-Yuma, Ariz. area. The coordinated operation resulted, in addition to the seizure of marihuana, in confiscation of 9.3 pounds of heroin, several private dwellings used as smuggling warehouses (one valued at $100,000) and a number of vehicles and weapons. Records of a large smuggling conspiracy responsible for bringing tons of marihuana and multikilos of heroin into the United States were also captured. On May 29, 1973, a two-year investigation resulted in the breakup of an international narcotics ring which carried heroin from Southeast Asia to California and New York. The investigation was climaxed in Los Angeles when Bureau and Customs agents arrested Su-kit Benjatarupong, of Bangkok, Thailand, and seized 44 pounds of heroin which he had planned to deliver to a buyer in a downtown Los Angeles hotel. Sukit, the subject of an indictment in the Eastern District of New York on an earlier charge of possession with intent to distribute 40 pounds of heroin, also was wanted in connection with a case in San Francisco which resulted in the seizure of 42 pounds of heroin and the arrest of Tan Khio-Huang of Penang, Malaysia. At the time of Sukit’s arrest, Malaysian Attorney General officers and Royal Malaysian customs and excise officers, assisted by Bureau agents, arrested Chuah Swee Cheok and Tan Cheng Guan, two of Sukit’s associates, in Penang. Sukit had been named as a kingpin of two interrelated groups of heroin traffickers, one based in Thailand and the other in Malaysia. The two groups had been considered responsible for the shipment of thousands of pounds of heroin, morphine base and opium to South Vietnam, Hong Kong, the Philippines, the United States, and other parts of the world. OFFICE OF INTERNATIONAL AFFAIRS Responsibilities of the Office of International Affairs include the development of policy, program recommendations, and coordination of foreign program developments and implementation by various headquarters elements. The Office served as the primary point of contact and policy representative for the Bureau with other agencies and White House working staffs on matters concerning the Bureau’s overseas programs. The Office also assisted in program planning and policy development of the international narcotics control program, drawing upon all the relevant components of the Bureau to bring about the establishment of an effective overseas narcotics enforcement effort. The Assistant Director for International Affairs represented the Bureau on the Cabinet Committee on BUREAU OF NARCOTICS AND DANGEROUS DRUGS OFFICE OF THE DIRECTOR — OFFICE OF INSPECTION OFFICE OF THE DEPUTY DIRECTOR FOR SUPPORT PROGRAMS a: Id o o c c Id 5 u I G OFFICE OF THE OFFICE OF °FF'J* °F CONTROLLER ADMINISTRATION inX oUrrUK1 BNDD NATIONAL REGIONAL OFFICES LABORATORIES TRAINING INSTITUTE 11 I ■ OFFICE OF THE CHIEF COUNSEL OF THE >1 RECTOR RATIONS OFFICE OF OFFICE OF OFFICE OF QFFICE QF OFFICE OF ' INTERNATIONAL STRATEGIC CRIMINAL TRAININC COMPLIANCE AFFAIRS INTELLIGENCE INVESTIGATIONS INVESTIGATIONS OFFICE । DEPUTY C FOR OPEI c 0 5 r r n 7 5 E d L □ « m ■■■ 143 International Narcotics Control (CCINC) Coordinating Subcommittee and served as chairman of the Law Enforcement Subcommittee of CCINC. The purpose of the subcommittee was to develop policy and approve interagency programs for submission to the CCINC. In response to the request of the subcommittee, the Office has developed policy recommendations relative to the administration’s international narcotics enforcement initiatives and recommended narcotics enforcement programs to the cabinet level committee for approval. The Department of State’s involvement in international narcotics control is substantial because of the U.S. mission team’s importance in implementing U.S. policy overseas. Because of this, the Bureau established close working relationships with regional narcotics coordinator counterparts at the Department. Interagency coordinating committees were established at the Department to approve for White House submission the narcotics control action plans from 57 countries. The Bureau had a significant role in approving these programs, which are the approval mechanism for new narcotics control and prevention assistance programs to foreign governments. OFFICE OF STRATEGIC INTELLIGENCE The Office of Strategic Intelligence was charged with the responsibility for the collection, processing, analyzing, and dissemination of strategic narcotics intelligence to the Bureau Director and executive staff. This intelligence, both foreign and domestic, provided an accurate situation assessment of the narcotics problem throughout the world. The Office also represented the Bureau with the U.S. intelligence community and had primary liaison responsibility with the Office of National Narcotics Intelligence. The Office of Strategic Intelligence in collaboration with other U.S. and foreign narcotics intelligence sources, produced 15 international narcotics reports complete with narcotic profiles of selected geographic areas. It also published a weekly Intelligence Situation Report which provided Bureau management with a summary of important narcotics intelligence information received during the preceding week. More than 50 special papers were also prepared for the White House, Department of State, and other organizations involved in the suppression of the narcotics traffic. During overseas visits by Strategic Intelligence personnel, direct intelligence interchange was established with Office counterparts in other governments, including Germany, Great Britain, and France. This interchange was accomplished with the participation of Bureau agents stationed in other countries so that the narcotics intelligence interchange would continue on a permanent basis. By the close of 1973, Bureau intelligence efforts began to approach full potential. Regional intelligence units, both foreign and domestic, have played significant roles in ongoing investigations, many of which have resulted in conspiracy-type prosecutions or major violator arrests. The continuous flow of information from the regional intelligence units to the Strategic Intelligence Office provided field input for many of the profiles, reports, and papers produced during 1973. Experienced intelligence analysts in the Office, in turn, have provided a steady flow of area background expertise to the field. OFFICE OF COMPLIANCE INVESTIGATIONS The Office of Compliance Investigations was responsible for the fulfillment of the Bureau’s objective to reduce the amount of legally manufactured drugs available for abuse. To accomplish this, the Office worked through the Bureau’s 13 domestic regions. In addition, the Registration Division of the Office was responsible for processing applications for registration, setting quotas, and monitoring transactions of certain controlled substances. Special surveys were conducted by the Office to gather information showing the extent of abuse and the potential for abuse of certain drugs and to delineate potential diversion problem areas. Among the drugs surveyed were: —Methaqualone and butabarbital.—The Office updated two surveys covering the extent of and potential for abuse of butabarbital and methaqualone; and —Anorectics (weight-reducing substances').—In June 1973, six anorectics were placed under schedules HI and IV of the Controlled Substances Act. Compliance assisted in the efforts to control them by compiling data on their occurrence in the illicit drug trade. The six drugs are benzphetamine, chlorphentermine, clortermine, mazindol, fenfluramine, and phendimetrazine. Enforcement programs conducted by the Bureau have reduced substantially the quantity of legitimately produced controlled substances being diverted into illicit channels. As a result, attempts have been made to obtain controlled substances from legitimate sources by means of highly sophisticated fraudulent practices. Field investigations have revealed a pronounced increase in the number of incidents whereby individuals have obtained controlled substances from pharmacies by means of forged, stolen, or altered prescriptions. A study was conducted to determine the relative ease in perpetrating prescription frauds. Employing four of the most prevalent prescription fraud techniques, agents participating in Project Script presented 256 fraudulent prescriptions to randomly selected 144 community and mail-order pharmacies across the Nation. Project Script revealed that in those pharmacies sampled, fraudulent prescriptions were accepted and controlled substances dispensed in 56 percent of the test cases involving community pharmacies and in 25 percent of the test cases involving mail-order pharmacies. In light of the results of Project Script, the Bureau proposed that new regulations be implemented to assist pharmacists in fulfilling their responsibilities under the Controlled Substances Act. The regulations would require the bearer of a prescription for a controlled drug to display identification to the pharmacist. If no suitable identification is produced, the pharmacist would have to verify the prescribing practitioner’s signature by reference to a master file maintained at the pharmacy or by calling the prescribing practitioner. Copies of a discussion draft of the proposed regulations were distributed to representatives of the major professional pharmaceutical associations for their review. At the end of 1973, there were approximately 488,000 active registrants in the Bureau’s files. These have been broken down into Federal obligations and State obligations. The Bureau has agreements with most States, whereby the States have primary responsibility for regulation and enforcement at the retail level. Registrants falling into this area are termed type A registrants and include practitioners, pharmacies, hospitals, clinics and teaching institutions. The Federal obligation includes manufacturers, distributors, researchers, analytical laboratories, importers, exporters, and brokers. This group is referred to as type B registrants and each is inspected at least once every 3 years. Specialists have been recruited, trained, and placed in the field to conduct the necessary investigations to assure that registrations are consistent with the public interest. Seizures of controlled drugs from registrants may be effected either incident to arrest or administratively. Situations which might lead to administrative seizures could be illegal importation, improper registration, or no registration. In 1973, investigators and special agents made 52 seizures including 69.2 million dosage units of controlled drugs, 4,191 pounds of chloral hydrate, and 31,320 pounds of paraldehyde. A new concept was initiated during the year to investigate diversion of controlled substances at the retail level and to provide a continuing system of identifying the sources of drug availability in certain areas. On a pilot project basis, the Bureau enlisted the participation of Michigan, Texas, and Alabama in a two-year program. This effort, initially funded by the Law Enforcement Assistance Administration in the sum of $1 million, has resulted in teams of Bureau-trained state investigators who are now working full time on retail-level diversion. An additional $2 million in LEAA funds has been allocated to provide for the participation of seven more states in the diversion investigative units program. The units are composed of investigators from various state agencies (having drug enforcement responsibility) and a Bureau representative. The units also utilize local police investigators from selected target cities. They are intended to increase state efforts to interdict diverted drugs at that level. Previous studies have shown that the establishment of controls over domestic production and distribution of stimulant and depressant drugs has created a void in the illicit market. This void has been rapidly filled with a variety of tablets and capsules manufactured in Mexico from bulk materials produced by European pharmaceutical manufacturers. In an effort to stem the illicit flow, the Office of Compliance, under the auspices of the Attorney General of Mexico, formed a committee composed of representatives of the Bureau, the Mexican Attorney General’s Office, and the Mexican Secretariat of Health to increase and improve the regulatory control of drugs entering and leaving Mexico. OFFICE OF TRAINING (NATIONAL TRAINING INSTITUTE) The Office of Training, better known as the National Training Institute, was responsible for the conduct of training programs for Bureau personnel, domestic law enforcement, and foreign law enforcement officers. The Institute concentrated on the refinement of the basic agent program, the development of the compliance investigator program, the continued expansion of the ten-week police training program, and the specialized foreign training programs. Major steps were taken to expand the audiovisual-videotape capacities of Institute programs and to introduce practical exercises into the foreign training program. The Agent Training Division of the National Training Institute was responsible for the following programs: Agent training, compliance investigator training, supervisory training, technical skills training, and language training; 160 special agents went through the ten-week program consisting of a 300-hour academic curriculum and 300 hours of sequential practical field exercises; 94 compliance investigators graduated from the six-week schools which prepared them to perform regulatory audits of pharmaceutical manufacturers and distributors to insure compliance with the Controlled Substances Act of 1970. The Police Training Division of the National Training Institute was responsible for the conduct of the 145 Marihuana packaged for mailing, seized during “Operation Cactus.” Bureau’s domesic drug law enforcement training program which consisted of ten-week, two-week, and other specialized schools, seminars, and sessions conducted throughout the United States. These programs have been made available at no cost to police officers of state, county, and city agencies and to military and civilian enforcement officers of other Federal agencies. The ten-week police training school and the two-week law enforcement training school were continuously monitored and evaluated by the Evaluation and Technical Services staff of the Institute. Evaluation results and selected feedback data indicate that the programs have been beneficial to operating police officers who have completed the programs and are considered to be of great value by participating law enforcement agencies. In addition, the Institute and regional training officers have conducted specialized schools, seminars, and sessions for police officers, forensic chemists, probation officers, and other persons engaged in law enforcement activities. Under the Special Training Division of the Institute, the Bureau intensified its international training activities in recognition of the importance of gaining and maintaining the cooperation of foreign law enforcement officials in the efforts of the United States to interdict the international trafficking of illicit drugs. The Special Training Division of the Institute conducted programs for 2,088 foreign officers from 30 countries around the world. Legal Counsel Bureau attorneys worked with personnel of the Drug Control Division in the preparation of recommendations to the Secretary of the Department of Health, Education, and Welfare relating to the scheduling of 22 substances under the Controlled Substances Act of 1970. Attorneys prepared 130 orders to show cause why action should not be taken by the Bureau to revoke, deny, or suspend a registration to engage in controlled substances activities which resulted in the denial or revocation of 123 registrations. Under the Administrative Procedures Act relating to this function, 13 hearings were conducted. Attorneys represented the Bureau at 49 hearings under sections 505 and 513 of the Controlled Sub 146 stances Act relating to infractions by registrants and obtained agreements in such cases whereby the registrant acknowledged the infraction and agreed to take remedial action. Attorneys continued assistance to states in enactment of the State Uniform Controlled Substances Act and by the close of the year, 40 states (a net gain of seven from the previous year) and three territories had adopted the act. Over 1,000 hours of instruction were provided by attorneys at Bureau training schools, including such subjects as search and seizure, law of arrest, court procedure, rules of evidence, forfeitures, conspiracy, postarrest procedures, and applicable criminal laws; 806 vehicles were processed by Bureau attorneys for review of legal sufficiency and rulings on more than 400 petitions for remission or mitigation of forfeiture were made. Legal representation was provided in four employee adverse action hearings and decisions were made on 22 employee claims. A total of 430 vehicle accidents were referred to attorneys for review of liability and 114 tort claims were processed by attorneys. Sixty-six contracts were reviewed for legal sufficiency; approximately 380 advisory and legal opinions were given, including 47 which required extensive research and formal written preparations. Approximately 40 notices and orders were drafted for publication in the Federal Register relating to the Bureau’s regulatory functions, and comments and advisory reports were prepared on 59 legislative proposals. Bureau attorneys participated extensively in the field of international drug control in cooperation with the State Department and commented on proposed legislation by foreign countries. Office of Scientific Support LABORATORY DIVISION The Laboratory Division exercises technical supervision over the laboratory system and consists of three branches: Field Operations Branch, which provides operational support for the laboratories; Investigative Services Branch, which acts as an interface between certain laboratory programs and enforcement activities; and the Special Studies and Advanced Technology Branch, which researches potential procedures and instruments and applies developed research to the needs for sophisticated investigative methods. The Investigative Services Branch provides printouts on drugs analyzed throughout the year. More than 40 specific queries involving 150 drug combinations were prepared for various Bureau offices. Also, the Investigative Services Branch issued drug intelligence flashes alerting laboratories to the occurrence of a new drug or new drug combinations. Approximately 400 requests for drug standards were processed. The Investigative Services Branch coordinates the drug ballistics program. A unique laboratory examination of tablets and capsules has been developed which combines classic toolmark examination with microchemical analysis, leading to the identity of common sources of drug tablets. Over 8,000 lots of authentic tablets and capsules are maintained in the National Authentic Drug Library. Experts examine tablets submitted by state and local police and foreign law enforcement agencies in addition to those submitted to the Bureau by other Federal agencies. Results of examinations are compiled for potential drug intelligence, and reports are sent to the submitting agencies. Compilations of the results indicate the kind and extent of distribution from a common tableting source, link names with a common source, and permit evaluation of enforcement action. DRUG CONTROL DIVISION The Drug Control Division is responsible for the Bureau’s research pertaining to the scheduling of drugs and their identification in body fluids. The professional staff who possess a variety of scientific skills forms two branches: the Drug Information Branch and the Biological Research Branch. The Drug Information Branch gathers, on a worldwide basis, the information necessary to make a scheduling decision, then reviews it from a scientific and regulatory standpoint in accordance with the precepts of the Controlled Substances Act of 1970. In order to gather data of a scientific intelligence nature, Project DAWN (Drug Abuse Warning Network), was initiated. The network collects data on reported cases of drug abuse incidences from many sources and analyses it for trends. PREVENTIVE PROGRAMS DIVISION The Division focused on three major areas: Providing information materials to law enforcement agencies and the public; completing a series of pilot organizational programs and initiating a series of community/ justice system programs called Operation Alternatives; and encouraging registrants to promote drug abuse prevention programs. Under the public inquiry program more than 35,000 individual requests were answered by headquarters and 200,000 inquiries were answered by the regions. The Bureau moved into Phase II of its plan to develop comprehensive drug abuse programs through coordination of the community and the criminal justice system calling for a series of thirteen three-day working seminars. 147 Other accomplishments in the action field include the completion of a series of eight policy/educator seminars begun earlier, aimed at developing cooperation between law enforcement agencies and the schools. In order to provide all registrants under the Controlled Substances Act with basic information in lay language on the requirements of the law, the Bureau initiated a registrant leadership program to promote voluntary self-regulation and drug abuse prevention programs. Office of Administration PERSONNEL MANAGEMENT DIVISION A number of significant staffing and organizational changes were undertaken in 1973 to improve the Bureau’s personnel management programs and to keep pace with the expanding work force. Detailed studies of the status of Equal Employment Opportunity (EEO) programs within the Bureau were completed. In accordance with the findings, a full-time EEO position was established in the Office of the Director. Increased emphasis has been directed to all EEO programs and special emphasis employment programs. Other accomplishments in the field of personnel management include the transition from manual maintenance of personnel records to a computerized system ; the delegation of personnel management and appointment authority to the regional directors at New York, Miami, Chicago, and Los Angeles; the establishment of formalized career management programs for key Bureau job disciplines; and, the establishment of a method of maintaining a complete career profile on every special agent. The Employment Branch and the functions of the Bureau recruitment officer were organized to fix total responsibility for all recruitment, staffing, and placement activities in a single branch. DATA SYSTEMS MANAGEMENT The newly installed computer system provides a data storage capacity five times larger than the previous system, a control unit memory capacity eight times bigger, and job processing speeds three times faster. One major computer innovation—a nationwide automated information display system—was implemented. Current file data can now be provided to regional offices within seconds after the introduction of a request. Major systems accomplishments were: —the narcotics and dangerous drugs information system which will make available biographical and intelligence data; —an automated ballistics intelligence system, the purpose of which is to automate the production of ballistics intelligence tables so that greater amounts of intelligence can be provided to the agents on a timely basis; —the system to retrieve information from drug evidence which is designed to collect, compile, and provide the Bureau with intelligence, statistical, and management information which is generated by the analysis of drug exhibits in the Bureau laboratories; —an automated reports consummated order form system, developed to provide an audit of the monthly, quarterly, and annual returns of wholesalers, distributors, and manufacturers throughout the drug industry; and, —diversion analysis and detection, developed to identify various diversion situations and potential diversion situations in the manufacturing and distribution of schedules I and II controlled substances and narcotics controlled substances in schedule III. A major task was the development of an information retrieval system which made immediately available information on approximately 500,000 registered handlers of controlled substances. A recurring activity is the review of various formulations to determine their proper schedule. This process led to the discovery of an anomaly in the law—no provisions had been made for chemical reagents, buffers, and diagnostic agents. With the assistance of the Office of Chief Counsel, a new class of substances called exempt chemical preparations was identified. During the year, 218 products were so classified. After the Controlled Substances Act went into effect, no listing of controlled products was available. To fill .this information gap, Project Label was initiated. Labeling information was requested from all Bureau registrants authorized to manufacture or repack controlled products. Among the significant drug control activities during 1973, were recommendations submitted to the Secretary of the Department of Health, Education, and Welfare to control 2,5-dimethoxyamphetamine, etrophine, diprenorphine, methaqualone, paramethoxyamphetamine, and nine barbiturates. The barbiturate study was the largest control effort undertaken by the Bureau. More stringent controls of the dispensing of paregoric prescriptions and controls on preparations containing narcotics that can be sold without a prescription were recommended. The objectives of the Biological Research Branch are to develop methods to predict the abuse potential of drugs and to develop methods for measuring accurately drugs of abuse and/or their metabolites in body fluids. The Bureau’s methodology research to predict abuse potential reached such a level of development that the National Research Council-National Academy of Sciences, Committee of Drug Dependence, included these 148 r methods in a special addendum to the “United States 2 Procedures to Evaluate Narcotic Substances.” The achievement put the Bureau well on the way to having ? an accepted method to rank-rate drugs according to , their abuse potential—a significant step forward in the orderly control of drugs under the Controlled Substances Act. i ADMINISTRATIVE SERVICES DIVISION In support of Bureau operations, graphic arts has t become more involved in a multitude of diversified projects, including photo processing, photo coverage ) of significant events, production of antidrug abuse 1 posters, productions of recruitment ads, and the devel- opment of charts, maps, and other graphics. The library answered a steady flow of requests for 1 information from headquarters staff, district offices, other libraries, as well as other Federal agencies, contractors, and individual students. The library worked with the LEAA library to compile a combined catalog of law enforcement materials from the Bureau collection, LEAA, and the Bureau of Prisons. TELECOMMUNICATIONS The Bureau’s facsimile service consists of 51 terminals including facilities in Vancouver, Montreal, and Mexico City. Equipment which provides the Bureau the capability to query or to provide input to the National Crime Information Center was operational in the communications center. In addition, indirect access by the regional offices through their local or state information systems is available in New York, Philadelphia, Baltimore, Detroit, Chicago, New Orleans, Kansas City, and Seattle. Drugs Removed Worldwide (Quantity In pounds) 1971 1972 1973 Heroin/equivalent...................... Cocaine................................. Marihuana................................. Hashish................................... 3,144 688 41,517 12,362 5,108 689 154,610 8,574 9,62 1,25 246,13 25,24 Note.—The total street value of these drugs during 1973 exceeds $5,534,000,000. Federal Convictions and Acquittals 1973 Percentage of increase over 1972 Convictions__________________________________ 2,747 54 Acquittals.............................................. Ill 59 Dismissals.............................................. 376 52 Total.............................................. 3,234 Arrests 1973 Percentage of change over 1972 Heroin__________________________........................ 2,313 +29 Cocaine............................................. 1,443 +66 Other narcotics......................................... 40 —48 Cannabis................................................ 980 +12 Hallucinogens......................................... 350 —17 Depressants............................................... 84 +4 Stimulants............................................... 282 —22 Other................................................... 100 +6 Total............................................... 5,592 +22 149 Immigration and Naturalization Service The Immigration and Naturalization Service enforces and administers the immigration and nationality laws of the United States. Within the Service, the Travel Control Division inspects persons arriving at U.S. ports of entry to determine their admissibility and adjudicates requests for benefits and privileges under the immigration laws. The Domestic Control Division, comprised of investigators and border patrol agents, enforces the law through the prevention of illegal entry of aliens into the United States, the investigation of aliens in the United States, and the apprehension of aliens who may be subject to deportation through violation of the immigration laws. The Service is also responsible for the examination of applicants for citizenship to determine their qualifications for naturalization. After a determination has been reached in each case, the facts are presented to Federal and state naturalization courts where the final granting or denial of citizenship takes place. Certificates of citizenship are also granted to persons deriving or acquiring U.S. citizenship under provisions of the law. Promotion of instruction and training in citizenship and fostering of meaningful citizenship ceremonies are also included in the Service’s responsibilities. Travel Control Division A record quarter of a billion persons were inspected at U.S. ports of entry during 1973, almost l/2 times the admissions only ten years earlier. A great increase in air arrivals was again evidenced with 18,909,559 persons arriving by air, representing a 2 IB-percent rise over the six million reported in 1963. ADMISSIONS The 259,536,269 persons admitted to the United States included 138,363,082 alien border crossers, 789,418 resident aliens returning after short trips abroad, 6,161,761 aliens admitted for temporary periods, including tourists, businessmen, students, foreign government officials, temporary workers, and others, 2,719,092 alien crewmen granted shore leave, and 400,063 immigrant aliens admitted for permanent residence. Ninety percent of the 111,102,853 United States citizens admitted during the year crossed the Canadian and Mexican borders. IMMIGRANTS As provided under the 1965 Amendments to the Immigration and Nationality Act, natives of countries in the Eastern Hemisphere and their dependencies are subject to an annual numerical limitation of 170,000 immigrant visa numbers with no more than 20,000 numbers to be alloted to any one country. Immigrant visas issued under this numerical restriction are assigned on the basis of seven preference categories, four of which provide for the reunion of families of U.S. citizens and resident aliens, two for professional, skilled, or unskilled workers whose services are needed in the United States and one for refugees. A limit of 120,000 per year, available on a first-come first-served basis, is placed on the immigration of natives of independent countries of the Western Hemisphere. The parents, spouses, and children of U.S. citizens are designated as “immediate relatives” and are exempt from the numerical restrictions of both hemispheres. During 1973, 400,063 immigrants were admitted to the United States with 166,108 persons subject to the numerical restrictions of the Eastern Hemisphere and 116,803 subject to the numerical limitations of the Western Hemisphere. Only six countries accounted for 47 percent of the total immigration: Mexico, 70,141; the Philippines, 30,799; Cuba, 24,147; Korea, 22,930; 150 Primary inspection of arriving passengers at John F. Kennedy International Airport. Italy, 22,151; and China (including Taiwan), 17,297. A total of 309,299 of the immigrants admitted were granted their visas abroad while the remaining 90,764 had their temporary status in the United States administratively adjusted to permanent residence. ADJUDICATIONS The Service adjudicates a wide variety of applications and petitions regarding the right of aliens to enter, reenter, or remain in the United States in its administration of the immigration laws. Included are petitions for preference visas for aliens or for temporary workers, applications for adjustment of status, and the issuance of border crossing cards. As the number of aliens coming to the United States increases each year, the number of adjudications received also rises. A record 1,393,163 applications and petitions were received during 1973 compared with 1,353,819 in 1972. INADMISSIBLE ALIENS While keeping inconvenience to the traveling public at a minimum, it is important that each person inspected for admission to the United States meet the qualifications for admission specified by law. There were 379,604 aliens denied admission upon their arrival at U.S. ports of entry. Included in this number were 252,325 aliens seeking to enter as border crossers, 28,968 crewmen who were denied landing privileges, and 358 stowaways who were discovered and detained on the vessels that brought them. Formal exclusion proceedings led to the denial of admission to 504 of these aliens, 328 of which were excluded because they lacked the proper documents for the type of admission for which they had applied, 87 because they attempted entry without inspection or by false statements, 59 because they had criminal, immoral, or narcotics convictions, two on subversive grounds, five because the Public Health Service had certified them as being afflicted with mental or physical defects rendering them inadmissible under the law, and 23 for other reasons. Domestic Control DEPORTABLE ALIENS LOCATED During the year, Service officers located 655,968 deportable aliens, an increase of 150,019 or 30 percent over 1972. The increase is accounted for primarily by the increase of 146,610 in the number of deportable Mexican aliens located. Of the deportable aliens, located, 88 percent were Mexican nationals. Border patrol agents located 498,123 deportable aliens while investigators and other Service officers located the remaining 157,845. Of the total located, 84 percent (551,328) entered illegally at other than ports of inspection; 99 percent of these surreptitious entries were made over the Mexican border. Aliens who entered legally but became deportable as the result of violating the terms of their admissions numbered 104,640. Exclusive of 8,456 crewmen who technically violated their terms of admission because their ships were unable to depart the United States within the time specified, 73 percent of the illegal aliens were located within 30 days after becoming deportable and only seven percent had been in the country illegally more than one year before location. Deportable aliens who were employed at the time of apprehension numbered 238,030. SMUGGLING Alien smuggling violations continued to follow the upward trend established over the past several years. Border patrol agents apprehended 41,589 aliens who had been induced or assisted to enter illegally or who had been transported unlawfully after entry, an increase of 67 percent over the previous year. Apprehensions of smugglers of aliens and violators of statutes relating to unlawful transportation of aliens increased from 4,564 in 1972 to 6,355 in 1973. COOPERATION WITH OTHER LAW ENFORCEMENT AGENCIES Cooperative efforts between the Service and other Federal, state, local, and foreign country law enforcement agencies continued to receive major emphasis. Supervisory officers throughout the country served as instructors in police schools and academies and explained the Service’s law enforcement mission to numerous school groups and civic organizations. The positive results of liaison activities are reflected in the 68,231 violators of immigration and nationality laws referred to border patrol agents by other law enforcement agencies. Border patrol officers encoun- 151 ■ ■ 1 DETENTION AND DEPORTATION i. ■ ADMINISTRATIVE SERVICES ADMINISTRATION OFFICE OF GENERAL COUNSEL MANAGEMENT NATURALIZATION SECURITY ■■ Ul o > ir UJ FIELD INSPECTION AND SECURITY VTION AND NATURALIZATION OFFICE OF COMMISSIONER SPECIAL PROJECTS TRAVEL CONTROL DIVISION a: o S s EXAMINATIONS OFFICE OF EXECUTIVE ASSISTANT OPERATIONS ENFORCEMENT DOMESTIC CONTROL DIVISION INVESTIGATIONS 152 tered and released to appropriate agencies 3,342 violators of other laws, including 1,984 violators of narcotics laws. Incident to pursuing their primary mission of immigration law enforcement, Service officers seized marihuana, hard narcotics, and other dangerous drugs valued at more than $21.7 million. FOREIGN-BORN LAW VIOLATORS Continued Service efforts in the field of anticrime and antiracketeering resulted in the completion of 11,725 investigations of aliens suspected of being involved in criminal, immoral, or narcotics activities. Deportable aliens located through these investigations numbered 3,422. The 2,062 criminal identification lookouts posted along U.S. borders during 1973 resulted in 750 aliens of the criminal, immoral, and narcotic classes being denied entry. The Service, through its antisubversive programs, continued to emphasize the detection, identification, and investigation of foreign-bom persons whose conduct may be prejudicial to the internal security of the United States. The 4,361 investigations of suspected foreign-born subversives led to the location of 232 deportable aliens of this class. Antisubversive programs were also carried out along the Canadian and Mexican borders in order to preclude the entry of known alien subversives. Service officers encountered an increasing number of schemes designed to circumvent the immigration laws. Completion of 14,854 immigration fraud inves tigations exposed continued use of altered, fraudulent, or counterfeit passports, nonimmigrant visas, and immigration documents as well as “sham” marriages, and attempts to evade labor certification requirements. During the year, 4,231 fraudulent claims to U.S. citizenship were detected. Also uncovered were 3,294 cases in which various immigration documents were used to support fraudulent claims to legal status in the United States. DEPORTATIONS AND REQUIRED DEPARTURES The number of aliens deported under formal orders of deportation increased slightly in 1973, reaching a total of 16,842. Over 55 percent of these persons entered the country without inspection. Aliens required to depart from the United States without a formal order of deportation numbered 568,005, a 26-percent increase over 1972. Naturalization and Citizenship NATURALIZATIONS GRANTED U.S. citizenship was granted to 120,740 persons in 560 Federal and State naturalization courts. At these court proceedings, Service officers make recommendations for the grant or denial of citizenship based on a complete examination to determine that each applicant meets the statutory prerequisites for naturalization. Before citizenship is granted, each alien must take a solemn oath of allegiance and promise to support U.S. Border Patrol agents returning illegal aliens to the border for deportation. 153 Final naturalization hearing at U.S. District Court, Rutland, Vt. and defend the Constitution and laws of the United States against all enemies, both foreign and domestic. Of the new citizens, 94,039 were naturalized under the general provisions of the law requiring five years’ permanent residence in the United States. Certain other groups are eligible for naturalization after a shorter period of permanent residence. Included in this category were 13,380 spouses, 5,461 natural or adopted children of U.S. citizens, 7,796 servicemen and veterans who had honorably served the United States, and 64 other aliens who qualified for citizenship by other means. Over 56 percent of the new citizens were former nationals of Cuba, 17,415; China (including Taiwan), 9,056; Italy, 8,902; the Philippines, 8,149; the United Kingdom, 7,589; Germany, 6,670; Mexico, 5,507; and Greece, 5,423. The remaining 52,029 were former nationals of 135 other foreign nations. DERIVATIVE CITIZENSHIP Certificates of citizenship were issued to 30,804 persons. Of this number, 13,485 had derived or acquired U.S. citizenship at birth abroad to citizen parents, 16,-201 through the naturalization of one or both parents, 221 through marriage to a U.S. citizen prior to 1922, and 897 for other reasons. As the only document recognized by statute as proof of U.S. nationality, the certificate of citizenship is of immeasurable value to all these persons. CITIZENSHIP EDUCATION AND RESPONSIBILITY Applicants for naturalization, with few exceptions, are required by law to have a speaking, reading, and writing knowledge of the English language and a knowledge and understanding of the history and the principles and form of government of the United States. For many years the law has authorized Federal agency activity to promote the instruction and training of naturalization applicants to meet these prerequisites and the Service has carried out this prerogative through close liaison with educational institutions. During 1973, 108,203 naturalization candidates attended 6,657 public school classes and another 4,564 persons enrolled in 66 home study courses. The Service-published “Federal Textbook on Citizenship” was widely distributed free of charge to applicants who attended public school classes or who enrolled in home study courses and to instructors working with these candidates. The Service’s film library was also used extensively to supplement the textbook materials. Deportable Aliens Found in the United States, 1969-73 1969 1970 1971 1972 1973 M exica ns Total_________________________ 201,636 277,377 348,178 430,213 576,823 Surreptitious entries________________ 161,673 239,866 312,943 391,887 542,244 All other entries____________________ 39,963 37,511 35,235 38,326 34,579 Other Nationalities Total_________________________ 81,921 67,976 71,948 75,736 79,145 Surreptitious entries__________________ 5,501 4,626 4,879 6,403 9,084 All other entries_____________________ 76,420 63,350 67,069 69,333 70,061 154 DEPORTABLE ALIENS FOUND IN THE UNITED STATES 155 ALIEN ADDRESS REPORTS - BY STATES 1973 156 IMMIGRANTS ADMITTED BY AREA OF BIRTH PERCENT OF TOTAL IMMIGRATION Years ended June 30, 1964-1973 157 The Board of Immigration Appeals The Board of Immigration Appeals is a quasijudicial body appointed by and responsible to the Attorney General. He has delegated to the Board certain aspects of his statutory power and authority in connection with cases arising under the Immigration and Nationality Act. The Board is completely separate from the Immigration and Naturalization Service, the agency responsible for the enforcement of the immigration laws. The Board has jurisdiction, fixed by regulation (1), to hear and determine appeals from formal orders of immigration judges involving deportation of aliens in the United States, discretionary relief from deportation, and the exclusion of aliens applying for admission to the United States. The Board also may review orders of district directors concerning petitions to classify the status of alien relatives for the issuance of immigrant visas, administrative fines imposed upon carriers because of violation of the immigration laws, parole, bond and detention determinations, and other cases. Final orders of deportation entered by the Board are reviewable in the United States courts of appeal. As is shown in Table I, the courts rarely overturn the orders of the Board. In reviewing final orders of deportation, the courts take into account the Board’s characterization of the issues and its interpretation of the Immigration and Nationality Act. Thus, the Board provides a productive input into the judicial process which is essential to the smooth disposition of immigration cases. The Board strives to implement the mandate of Congress that the immigration laws receive uniform application throughout the United States. It works toward this goal by systematizing and clarifying policy and procedure in its decisions. Except as they may be modified or overruled by the Board or the Attorney General, decisions of the Board are binding on all officers of the Immigration and Naturalization Service. Selected decisions designated by the Board serve as precedents in all proceedings involving the same issue or issues. (2). Precedent decisions of the Board are published, comprising 13 bound volumes to date. In the past year, it published 45 additional precedent decisions. During 1973, the Board increased its production from 1,525 to 1,623 cases, despite the handicap of replacing and training five of its authorized strength of nine staff attorneys. At the same time, the number of cases reaching it rose from 1,591 to 2,016, an increase of 26.7 percent. Moreover, the cases increased not only in numbers but in complexity as well. Each case may contain various subsidiary issues in addition to the main issues of deportability, excludability, or eligibility for visa preference. There is a steadily increasing number of due process questions requiring separate review and decision. All issues receiving significant treatment in Board orders have been tallied for the past four years. As Table II indicates, the average number of issues per case continued to rise in 1973. The total number of issues receiving individual attention has also steadily increased: 2,416 in 1970, 2,813 in 1971, 2,813 in 1972, and 3,211 in 1973. During the year, the Board decided a number of cases involving interesting and complex issues, many having wide application. Deportation APPELLATE PROCEDURE A major problem facing the Board, in addition to a growing backlog, was an ever-increasing number of dilatory appeals coming before it. The Board accordingly adopted an innovative approach in Matter of Gamboa (3). In that case the Board discussed an ex 158 pedited procedure for dealing with appeals filed for the mere sake of delay. It held that when a district director believes an appeal to be frivolous or otherwise subject to summary dismissal, while he may not reject the notice of appeal outright, he should forward the record to the Board for prompt review. In such cases, in order to avoid unnecessary delay, the record need not include a transcript of the hearing if the issues can be adequately presented without it. In a subsequent case, Matter of Ambrosio (4), an alien in deportation proceedings claimed that he was entitled, as a matter of due process, to receive the transcript so that he could prepare a proper brief on appeal. The Board rejected this argument, finding sufficient uncontroverted facts already in the record to support the immigration judge’s finding of deportability. In another case, Matter of Chavarri-Alva (5), the Board was confronted with an untimely appeal containing stereotype reasons for appeal, seemingly plausible on their face, but bearing no realistic relation to the record. The Immigration and Naturalization Service had forwarded the appeal without transcribing the hearing. Inasmuch as the stated reasons for appeal did not permit a summary dismissal, the Board asked that a transcript be provided to make sure that no possible right of the alien had been overlooked. Nevertheless, after reviewing the record, it found no merit to the untimely appeal. The time granted the alien in which to depart voluntarily in lieu of deportation had already expired when the Board handed down its decision. It elected not to restore the privilege of voluntary departure, saying that to do so would only encourage similar meritless appeals. DEPORTATION HEARINGS The nature of the Board’s function of providing guidance for the Immigration and Naturalization Service in its day-to-day operations was reflected in four decisions which dealt with deportation proceedings before immigration judges of the Immigration and Naturalization Service. In one, Matter of Bark (6), the Board ruled that substitution of hearing officers is authorized when the original officer is unavailable. An immigration judge regularly stationed elsewhere was deemed unavailable. In a similar case, Matter of Molcilio (7), the Board stated that an objection to substitution of an immigration judge will lie only when the objection is made at the deportation hearing. The third case concerned a slightly different point. In Matter of Reyes-Gomez (5), in deportation proceedings, the Board rejected a claim of prejudice raised by counsel for an alien on the ground that the assigned trial attorney was not, in fact, an attorney at law. The Board’s review of the record satisfied it that the hearing was fair in all respects and that the Immigration and Naturaliztion Service’s trial attorney had comported himself properly. During a hearing before him, an immigration judge need not maintain a completely passive attitude in order to preserve his impartiality. In the fourth case, Matter of Lam (9), the Board ruled that there was no lack of the fundamental fairness required by due process when an immigration judge, in his quest for the truth, sought to clarify the record by calling attention of the trial attorney to areas of inquiry not yet developed. SECTION 243(h)— WITHHOLDING OF DEPORTATION In a landmark decision, Matter of Dunar (10), the Board had occasion to consider the impact of article 32 of the 1951 United Nations Convention Relating to the Status of Refugees which became binding on the United States when it adhered to the 1967 Protocol Relating to the Status of Refugees, on section 243(h) of the Immigration and Nationality Act. Section 243 (h) authorizes the Attorney General to withhold deportation of an alien to any country in which, in his opinion, the alien would be subject to persecution on account of race, religion, or political opinion. The Board held that adherence to the Convention was not intended to work a substantial change in Section 243 (h). It ruled that, taking into account the language of the convention, the standard now to be used to determine whether a claim of persecution has been made out under Section 243(h) is whether an alien has a well-founded fear that his life or liberty will be threatened on account of his race, religion, nationality, membership of a particular social group, or political opinion. The Board found nothing in article 32 to preclude the deportation of an alien refugee who entered the United States lawfully as a nonimmigrant but who remained longer than authorized. SECTION 241(f)— TERMINATION OF DEPORTATION PROCEEDINGS Section 241(f) of the Immigration and Nationality Act affords relief from deportation to an alien who is found deportable on the ground that he was excludable at the time of his entry as an alien who had sought to procure or had procured a visa or other documentation, or entry into the United States by fraud or misrepresentation if he is the spouse, parent, or child of a U.S. citizen or a lawful permanent resident. The Board ruled in Matter of Iqbal (11) that Section 241 does not relate to an alien in rescission of adjustment of status proceedings under Section 246 of the Act. Following rescission proceedings, the alien reverted to the nonimmigrant status he had held prior to adjustment to permanent resident status. It held that in subsequent deportation proceedings charging the alien with deportability as a nonimmigrant visitor who had remained longer than permitted, the provisions of Section 241(f) likewise did not apply. 159 ENTRY An alien becomes deportable if convicted of a crime involving moral turpitude committed within five years of “entry.” Hence, the question of when an alien makes an “entry” frequently may be very important in deportation cases. In Matter of Nakoi (72) a lawful permanent resident departed to Canada to fulfill a nine-month teaching contract. The Board ruled this was not an “innocent, causal, and brief excursion abroad” within the ambit of the Supreme Court’s decision in Rosenburg v. Fleuti (13}. Consequently, upon his return to the United States, the alien made an entry within the meaning of the immigration laws upon which a ground of deportation could be predicated. SUSPENSION OF DEPORTATION Pursuant to Section 244(a) (1) of the Immigration and Nationality Act, an alien may become eligible for consideration for suspension of deportation if: (1) he has been physically present in the United States for seven years, (2) during all of that period he was a person of good moral character, and (3) his deportation would cause extreme hardship to himself or to his family. In one case, Matter of Sipus (14}, an alien moved to reopen deportation proceedings because the record indicated that she had achieved the minimum statutory period of continuous physical presence. The Board held that this alone does not justify granting a motion to reopen the deportation proceedings, absent a prima facie showing that the other requirements for suspension of deportation are satisfied. In one case, Matter of Anduade (15}, the Board affirmed an immigration judge’s denial of suspension of deportation on the ground that an alien was unable to establish the requisite period of good moral character because he had been convicted in California of the offense of possession of marihuana. The Board held that expungement of the conviction under California law under a procedure not on the merits did not bar consideration of the offense for purposes of determining good moral character. It distinguished this case from one in which there had been an expungement under the Federal Youth Corrections Act even though the alien was a minor at the time the crime was committed (16}. The Board noted that deportation was a function of Federal and not state law and that the controlling factor was the state conviction, not the manner of state punishment. VOLUNTARY DEPARTURE The Board endorsed the proposition that an alien in deportation proceedings has the right to refuse to testify with regard to the issue of deportability without forfeiting his opportunity to receive the privilege of departing voluntarily in lieu of deportation, Matter of Tsang (17}. That case involved a Chinese crewman who invoked the Fifth Amendment privilege against self-incrimination regarding his deportability but did testify in connection with his application for voluntary departure. The Board held that the alien’s refusal to testify regarding deportability was not a factor that should weigh against a favorable exercise of discretion with regard to a grant of voluntary departure. It added, however, that this does not mean that the privilege may not be denied in the sound exercise of discretion on some other basis. In an earlier case, Matter of Lam (18}, in which a Chinese crewman refused to testify at all on the ground of self-incrimination, the Board held that the immigration judge may deny voluntary departure where the respondent refuses to testify in support of his application. It based its opinion on the fact that an application for discretionary relief shall not be held to constitute a concession of alienage or deportability. BOND In Matter of Tsoi (19} the Board found that it lacked jurisdiction under the regulations to entertain an appeal from an order of a district director denying the alien release on bond. The district director concluded that exaction of a bond was precluded by Section 242(c) of the Immigration and Nationality Act because more than six months had elapsed since the deportation order became final and that release on the alien’s own recognizance was not justified inasmuch as he had previously failed to surrender for deportation. The Board based its decision on the regulation that rules out an appeal when “the Service notifies the alien that it is ready to execute the order of deportation and takes him into custody for that purpose.” The Board was of the opinion that the alien’s application for political asylum did not, under the facts of this case, make the alien’s deportation any less imminent. Exclusion The Board held in Matter of Conceiro (20} that the Attorney General had not delegated to it, either directly or by implication, his parole authority under Section 212(d) (5) of the Immigration and Nationality Act. That section empowers the Attorney General to parole temporarily into the United States, for emergent reasons or for reasons deemed strictly in the public interest, an alien applying for admission to the United States. It found that the exercise of this power was specifically delegated to district directors and officers in charge of ports of entry. It rejected the argument that the regulation empowering the Board to take action “necessary and proper for the disposition” of cases before it constituted a grant of parole authority. The scope of section 212(d) (5) was the subject of another Board decision, Matter of Accardi (21}. In 160 1963 the alien was extradited from Italy and paroled “indefinitely” into the United States under Section 212 (d)(5) for prosecution for the sale and possession of narcotics. He was convicted in 1964 and imprisoned until 1972. Upon release from prison he was brought before an immigration judge because he appeared to be excludable as a person who had been convicted of an offense relating to the illicit possession or sale of narcotics under Section 212(a) (23) of the act. The alien’s counsel argued that a grant of parole “indefinitely” was in contravention of a grant of parole “temporarily” contemplated by Section 212(d)(5). The Board pointed out that the legislative history of section 212(d) (5) revealed that the section was enacted in compliance with a recommendation of the Attorney General that he be given authority to parole aliens for purposes of prosecution as well as for other reasons. The Board accordingly ruled that an “indefinite” parole for purposes of prosecution was not inconsistent with the “temporary” parole provided for by law. It also held that the regulation permitting district directors to exercise parole authority under Section 212(d) (5) did not limit this authority solely to district directors. Visa Petition In Matter of Donoso (22) the Board noted that persons born in independent foreign countries of the Western Hemisphere do not come within the numerical limitations system specified in Section 201(a) of the act. Therefore, they are not eligible for any of the preference classifications contained in Section 203(a) of the Act. Western Hemisphere natives, as special immigrants, are considered for entry without priority, on a first-come-first-served basis under the 120,000 annual Western Hemisphere quota. The Board noted an exception to this rule in Matter of Ascher (23). Despite birth in an independent country of the Western Hemisphere, an alien may be charged alternately to the foreign state of birth of his accompanying spouse in accordance with Section 202 (b) (2) of the Immigration and Nationality Act, if necessary to prevent the separation of husband and wife. In such event, the alien may be accorded one of the preference classifications set forth in Section 203(a) of the Act. In a case involving a petition for preference classification under Section 203(a) (4) as the married daughter of a U.S. citizen, the Board approved a petition filed on behalf of a girl born of a bigamous marriage in Poland. It held that, under the law of Poland, the act of the father in reporting the birth of his child to the Civil Registry Office was sufficient to legitimate her. (24). Regarding the procedure to be followed in visa petition cases, the Board held that, absent a showing that a petitioner was aware of derogatory evidence which formed the basis for the denial of a visa petition, the case should be remanded to the district director in order that the petitioner might be advised of such evidence and be offered an opportunity to rebut it and to present countervailing evidence in her behalf. Matter of Arteaga-Godoy (25). Inasmuch as the validity of many claimed Chinese adoptions must be determined without benefit of a recorded formal decree of adoption, the Board ruled that resort may be had to probative secondary evidence. It said in one case that affidavits, photographs, letters, evidence of support, residence, and other relevant documents should be submitted. A petitioner should submit, or satisfactorily explain the absence of, affidavits executed by: (1) both adoptive parents, (2) witnesses to the adoption ceremony, and (3) relatives and neighbors. It added that information in an affidavit should not be disregarded simply because it appears to be hearsay. In administrative proceedings, that fact merely affects the weight to be afforded it. Moreover, there is an exception to the hearsay rule in favor of statements as to pedigree and family history made by relatives or members of the same community. Matter of Kwan (26). In another case involving a claimed Chinese adoption, Matter of Tang (27), the Board found that doubt was cast upon the validity of an adoption where: (1) there was no showing that the purported adopted child had ever come under the parental control of her adoptive parents, (2) the child later moved from China to Hong Kong with its natural mother, and (3) the putative adoptive father was a blood uncle. In a case arising in Hong Kong, the Board held that the validity of an adoption under Chinese customary law was not vitiated by the fact that the child was adopted by an unmarried woman. Matter of Rodriguez (28). In Matter of Darwish (29) the Board affirmed a denial of a petition filed on behalf of an alleged spouse on the ground that the petitioner had not established the termination of his prior marriage. The Board based its decision on the fact that in the Dominican Republic a divorce decree issued by a court of law does not suffice per se to dissolve a marriage: this is accomplished by a “declaration” or pronouncement by the Office of Civil Registry. 161 TABLE I TABLE II Average Number of Independent Issues Receiving Significant Treatment in Board of Immigration Appeals Decisions Fiscal year 1970: First half............................................................. 1.248 Second half-----------------------------------------------------------------1.200 Fiscal year 1971: First half__________________________________________________________________ 1.620 Second half_________________________________________________________________ 1.450 Fiscal year 1972: First half____________________________________________________________ 1.837 Second half_________________________________________________________________ 1.924 Fiscal year 1973: First half___________________________________________________________ 2.025 Second half_________________________________________________________________2.136 Results of Petitions for Review of Final Orders of Deportation Filed by Aliens in U.S. Courts of Appeals1 Fiscal year Petitions filed Board final orders of deportation upheld Cases withdrawn by alien or otherwise closed Numberof board orders overturned 1969 224 164 38 5 1970 441 251 83 5 1971 201 334 43 4 1972 165 126 28 7 1973. 218 139 21 1 1 Based upon data furnished by the Immigration and Naturalization Service.*- TABLE III Workload Summary Number of oral arguments heard_________________________________________ Number of briefs in lieu of oral argument filed by attorney for aliens_ Number of reply briefs received from Immigration and Naturalization Service.. 328 580 242 CASES CITED (1) CFR 3.1(b). (2) Sec. 103, Immigration and Nationality Act. (8 U.S. 1103) ; 8 CFR 3.1 (g). (3) Interim decision 2176 (Dec. 7, 1972). (4) Interim decision 2210 (June 8, 1973). (5) Interim decision 2188 (Mar. 29, 1973). (6) Interim decision 2174 (Nov. 27, 1972). (7) Interim decision 2184 (Feb. 22, 1973). (8) Interim decision 2179 (Jan. 26, 1973). (9) Interim decision 2157 (July 5, 1972). (10) Interim decision 2192 (April 17, 1973). (11) Interim decision 2173 (Nov. 22, 1972). (12) Interim decision 2168 (Oct. 11, 1972). (13) 347 U.S. 449 (1963). (14) Interim decision 2172 (Nov. 10, 1972). (15) Interim Decision 2205 (May 31, 1973). (16) Morera v. I.N.S., 462 F. 2d 1030 (C.A. 1, 1972). (17) Interim decision 2187 (Feb. 16, 1973). (18) Interim decision 2157 (July 5, 1972). (19) Interim decision 2167 (Oct. 4, 1972). (20) Interim decision 2183 (Feb. 12, 1973), habeas corpus dismissed, Conceiro v. Marks, 360 F. Supp. 454 (S.D. N.Y., 1973). (21) Interim decision 2206 (June 4, 1973). (22) Interim decision 2198 (April 27, 1973). (23) Interim decision 2182 (Jan. 23, 1973). (24) Interim decision 2189 (Oct. 20, 1972). (25) Interim decision 2171 (Oct. 27, 1972). (26) Interim decision 2158 (July 13, 1972). (27) Interim decision 2159 (July 13, 1972). (28) Interim decision 2195 (April 13, 1973). (29) Interim decision 2191 (April 4, 1973). 162 Federal Bureau of Investigation Despite massive commitments of manpower to special cases as “Wounded Knee’ and “Watergate,” Federal Bureau of Investigation achievements during 1973 reached record proportions in many areas. The number of convictions resulting from FBI investigations—14,465—was the highest in history. More than 96 percent of persons brought to court were adjudged guilty and of these, 84.5 percent pleaded guilty. Fines, savings, and recoveries in FBI cases amounted to $474,542,568—an average of $1.32 for every dollar appropriated for operations. A record number of 37,543 fugitives were located, a three-percent increase over the previous year. A 70-percent increase was recorded in crimes aboard aircraft including hijackings. Convictions in these cases totaled 234, more than double the number of convictions obtained the previous year. Records were shattered in convictions resulting from investigations of bank robberies (1,771), bank frauds and embezzlements (1,064), and several major professional automobile theft rings were broken up resulting in 2,017 convictions. Additionally, 341,107 items of criminal intelligence developed by the FBI were disseminated to Federal, state, and local agencies. Examinations conducted by latent fingerprint experts reached an all-time high of 486,146 in 36,123 cases. An average daily volume of 24,234 fingerprint cards was received. Another record was toppled by the FBI Laboratory in Washington, D.C., which conducted 531,471 examinations of evidence—a 7.4-percent increase over the previous year. These examinations were performed for other Federal, state, and local agencies, as well as Federal Bureau of Investigation field divisions. Organization Federal Bureau of Investigation field divisions and foreign liaison posts are directed and coordinated by Federal Bureau of Investigation headquarters, Washington, D.C. Federal Bureau of Investigation headquarters consisted of 11 divisions, the Press Services and Congressional Services Offices and the Office of Legal Counsel. Special agents conduct investigations in 59 field divisions located in major cities throughout the United States and Puerto Rico. Wide geographic coverage is afforded through 462 resident agencies or suboffices, staffed by special agents. In order to facilitate the exchange of information with foreign agencies on matters pertaining to international crime and subversive activities, the FBI maintained 20 liaison posts throughout the world. Liaison by these posts resulted in the location of stolen prop-•erty valued at $2,260,725 as well as the location of 1,156 fugitives, 1,047 of whom were wanted by the FBI. Noninvestigative personnel, many of whom are highly trained specialists, provide invaluable technical and administrative assistance designed to assist special agents in discharging their investigative responsibilities. All employees undergo thorough background investigations and a careful selection process before entering on duty. As of June 30, 1973, there were a total of 19,781 employees, consisting of 8,658 special agents and 11,-123 clerical, stenographic, technical, and other support personnel. In an effort to insure that the FBI is as representative of the American public as possible, the Office of Equal Employment Opportunity Affairs conducts a positive action program to attract minorities to all 163 525-134 0 - 74 - 11 OFFICE OF PLANNING AND EVALUATION ■■■■ COMPUTER SYSTEMS DIVISION PRESS SERVICES OFFICE INSPECTION DIVISION OFFICE OF LEGAL COUNSEL SPECIAL INVESTIGATIVE DIVISION STIGATION ~T~ CONGRESSIONAL SERVICES OFFICE LABORATORY DIVISION BUREAU OF INVE! ACTING DIRECTOR i® ACTING ASSOCIATE DIRECTOR GENERAL INVESTIGATIVE DIVISION -j < ai Id a uj INTELLIGENCE DIVISION FILES AND COMMUNICATIONS DIVISION ADMINISTRATIVE DIVISION TRAINING DIVISION ■ IDENTIFICATION DIVISION 164 positions throughout its service. In addition, 15 women successfully completed training and were assigned to various field offices. Nine female special agents were undergoing training at the FBI Academy, Quantico, Va., as the fiscal year ended. Criminal Investigations Criminal investigations are primarily the responsibility of the Special Investigative Division and General Investigative Division. ORGANIZED CRIME Continued pressure on racketeering in the United States resulted in the confiscation of almost $4.5 million in cash, property, weapons, and gambling paraphernalia and in the conviction of 1,114 gambling and vice figures. Nearly 2,900 organized crime figures were awaiting . trial in FBI cases at the close of the year. Several of the successful cases involving underworld figures are highlighted below: — Anthony M. Grosso and three other individuals were convicted of violation of Federal gambling laws. Grosso, who at one time had told a Senate subcommittee that his operation grossed between $12 and $13 million annually, was fined $15,000 and sentenced to ten years in prison; — Eugene Smaldone, a syndicate captain in the Colorado area, was convicted under Federal gambling laws and was fined $2,500-and sentenced to a 3/a -year prison term; — Frank J. Valenti, a ranking syndicate member in the Buffalo, N.Y., area, was convicted of extorting money from a local contractor. Valenti was fined $60,000 and sentenced to 20 years in prison; — agents assigned to three field offices coordinated raids which resulted in 12 arrests. One of those arrested was described by the press as “the underworld boss in northeastern Pennsylvania;” — a New York City rackets boss and a group of his associates were arrested for their alleged participation in a stock-manipulation scheme which involved more than $300,000 worth of stock; — based on testimony he had given in Federal court during September 1971, Carmine Tramunti, New York City syndicate chieftain, was arrested and charged with perjury; — a ranking Massachusetts figure, Gennaro Angiulo, was convicted of assaulting a Federal officer. Angiulo subsequently was fined $2,000, sentenced to a three-month prison term, and placed on probation for two years; — a Federal grand jury indicted six persons in connection with alleged bookmaking activities by certain racetrack employees in the Los Angeles, Calif., area, under the Organized Crime Control Act of 1970; and —Seven individuals were convicted of conducting a sports-betting operation estimated as handling approximately $500,000 monthly. Other major organized crimes cases included: — the sentencing of Henry Sentner to 15 years in prison on charges of extortion, kidnaping, and manslaughter stemming from the 1972 murder of Emanuel Gambino, nephew of national syndicate leader Carlo Gambino; —the indictment of an underworld loan shark in connection with the interstate transportation of approximately $553,000 in securities stolen from two New York City brokerage houses; and —the conviction of Frank Amato and two of his associates on Federal antiracketeering charges arising out of the beatings of two Florida restaurant owners following demands for protection money. Amato subsequently received a 10-year prison sentence. DISSEMINATION OF INFORMATION The continuing drive against organized crime included cooperation with other Federal, state, and local agencies. As a result of information disseminated by the FBI, 570 raids by these agencies resulted in the arrest of nearly 2,200 organized crime subjects and the seizure of more than $2 million in cash, property, and gambling paraphernalia. Highlights of accomplishments resulting from the dissemination of information were: —a series of 15 gambling raids in Memphis, Tenn., which led to the arrest of some 85 persons by local authorities; —the arrest of four persons and recovery of $550,000 in counterfeit $20 bills by the U.S. Secret Service; and —the nationally publicized organized crime raids in which New York City police officers served subpoenas on 677 syndicate members and associates in what was described as a “massive probe of mob dealings in narcotics, prostitution, and extortion.” DRUG OFFENSES Organized crime narcotics operations pose a serious threat to American society. Because of this threat, the FBI has placed emphasis on the development and dissemination of information relating to drug offenses. This information was directly responsible for numerous arrests as well as the recovery of more than $10 million in narcotics. Included among the cases in which such information was used were the following: The Royal Canadian Mounted Police and the Bureau of Narcotics and Dangerous Drugs arrested seven members of a major smuggling ring, including three with close syndicate ties in the New York City area 165 iKi and confiscated uncut heroin valued at $2.5 million. The same two agencies alo arrested another supplier and seized as estimated $3.25 million in heroin. The Los Angeles County Sheriff’s Office arrested two individuals and confiscated 4.5 pounds of cocaine valued at $3 million. FUGITIVE INVESTIGATIONS Milestones were reached in the location of fugitives during 1973. Some 37,543 fugitives were located— the highest number of fugitives found during a single year in the entire history of the FBI. Some 21,912 of these were military deserters. This was also a new record. Under the Fugitive Felon Act, which enables the FBI to locate felons who flee interstate to avoid prosecution, confinement, custody or giving testimony, 3,156 fugitives were located for state and local agencies. Fugitives Located in FBI Cases Dennis Vincent Durkin peers through cockpit window of Ozark Airlines DC-9 at Standiford Field, Louisville, during negotiations to free a mechanic held hostage. Durkin shotgunned the main passenger terminal before boarding the DC-9. He was charged with violation of the National Firearms Act and has been convicted and sentenced. (Copyright 1973 Louisville Courier-Journal.) CRIMES ABOARD AIRCRAFT Although the number of crimes aboard aircraft investigated by the FBI increased by 70 percent over the previous year, aircraft piracy offenses declined. Crime aboard aircraft increased from 1,222 in 1972, to 2,080 in 1973. However, the number of individuals who hijacked or attempted to hijack aircraft dropped from 46 to 27. The number of aircraft involved declined from 36 to 13. The identities of all the hijackers are known. Three were killed by agents and one was killed by a passenger. The remainder either have been sentenced, await court action, or have fled the United States. The dramatic reduction in aircraft hijackings can be attributed to various factors. Keeping the potential hijacker off aircraft has been a major goal of the Nation’s anti-hijacking program. Added preflight passenger screening requirements instituted midway through the year had an impact on reducing air piracy offenses. Furthermore, the agreement signed by the United States and Cuban officials in February 1973, in which each government agreed to prosecute hijackers in its own courts or return them to the other country for prosecution may help deter future hijackings. However, many crimes other than hijacking aboard aircraft are still being committed. Convictions in this category more than doubled the previous year’s total— from 116 to 234. BANK ROBBERIES, BURGLARIES, AND LARCENIES Convictions reached an all-time high in cases involving violations of the Federal Bank Robbery and Incidental Crimes Statute. While conviction figures showed an increase over 1972, the total number of violations during 1973 declined by 198. Total violations—2,974—consisted of 2,474 robberies, 301 burglaries, and 199 larcenies. A record 1,771 convictions were obtained. The downward trend in violations of this Statute is attributable in part to the increased use of security devices by financial institutions. Since passage of the 166 Bank Protection Act of 1968, the quality of security and security devices has steadily improved under rules established by regulatory agencies. destruction of aircraft OR MOTOR VEHICLES The willful destruction or damage to aircraft or passenger-carrying motor vehicles engaged in interstate, overseas, or foreign commerce is within the FBI’s jurisdiction, as are attempts or false reports thereof. A 300-percent increase in convictions resulting from investigations of destruction of aircraft or motor vehicle matters was achieved in 1973. INTERSTATE TRANSPORTATION CRIMES Interstate automobile theft rings operated by skilled professionals continued to receive a large measure of attention under the Interstate Transportation of Stolen Motor Vehicle Statute. Investigations under the Statute resulted in 2,017 convictions. A multimillion-dollar auto theft ring investigation was successfully concluded when a Federal jury in Bowling Green, Ky.—after hearing testimony for eight weeks from 982 witnesses—returned guilty verdicts for 19 persons on the charge of conspiring to violate the One of the subjects in a major automobile theft ring operating between New York and Florida is searched following his arrest in an Orlando, Florida, garage. statute. Two other individuals previously had entered guilty pleas. The trial concluded more than two years of investigative work by the FBI in cooperation with state and local law enforcement agencies. The FBI also investigates cases falling under the Theft from Interstate Shipment Statute, aimed at thefts perpetrated against air freight, rail, and trucking industries. Such crimes range from armed hijacking of entire trailer loads, embezzlement and burglary, to petty thievery by employees. During 1973, 1,146 convictions were obtained and more than $9.8 million worth of stolen goods was recovered. Under the Interstate Transportation of Stolen Property Statutes, 1,333 convictions were obtained and more than $56.5 million worth of stolen property recovered. LABOR-MANAGEMENT CRIMES AND COMMERCIAL EXTORTIONS Antiracketeering—Hobbs Act cases involve extortion or robbery carried out by means of threats, force or violence, or under color of official right, where interstate commerce is involved. There was an upward trend in the number of cases involving commercial extortions in which the Hobbs Act was applicable. Investigations of cases falling within labor-management crimes and commercial extortions include violations committed in connection with labor union activities as well as extortionate rackets in which businessmen are victims. The Labor-Management Reporting and Disclosure Act of 1959 covers numerous criminal acts which fall within the jurisdiction of the FBI. Most violations involve embezzlement of union funds by union officials and employees of unions. Extensive investigations may relate to interference with the rights of union members by use of force or threats. “White collar” offenses sometimes fall under the Labor-Management Relations Act of 1947 (involving illegal payments by businessmen to labor union representatives), or the Welfare and Pension Plans Disclosure Act which includes criminal penalties for embezzlement of funds from such plans, kickbacks to persons connected with pension or welfare plans, and false statements made in documents filed by officials administering the plans with the Department of Labor. A total of 77 convictions were obtained under the Hobbs Act, 17 under the Labor-Management Relations Act, 31 under the Labor-Management Reporting and Disclosure Act, and ten under the Welfare and Pension Plans Disclosure Act—a total of 135 convictions. 167 KIDNAPING The Federal Kidnaping Statute or Lindbergh Law makes it a Federal violation to transport in interstate or foreign commerce a kidnaped person for purpose of ransom or reward. After 24 hours, there is a presumption a victim may have been taken out of the State. Some 71 convictions were obtained for violations of the Statute, an increase of 73 percent. EXTORTION The Federal Extortion Statute provides that a threat to kill, kidnap, or injure a person, or destroy his property, or demand ransom for release of a kidnaped person, sent through the U.S. mail or transmitted interstate by any means, is a violation. Investigations of violations of this Statute resulted in 62 convictions. CIVIL RIGHTS, INVOLUNTARY SERVITUDE, AND ELECTION LAW MATTERS Among the more important investigative responsibilities of the FBI are those having to do with violations of civil rights. These violations are both criminal and civil in nature and are handled in close coordination with the Civil Rights Division. The scope of responsibility includes such matters as election laws, involuntary servitude and slavery, and deprivation of civil rights by discrimination in public accommodations, education, employment, public facilities, and housing. Highlights include: —Indictment of Donald Henry Segretti for violation of a Federal election law prohibiting publication and/or distribution of campaign literature in a Federal election campaign, when such literature is not properly identified as to its source; —five convictions for the bombing of ten schoolbuses in Pontiac, Mich. The buses were to be used in the cross-busing of students pursuant to court-ordered school desegregation; —investigation of numerous election law violations connected with the 1972 campaigns, including such allegations as intimidation, vote buying, and ghost voting. These investigations, centered around Chicago, Ill., resulted in more than 70 persons being indicted. Several individuals have been convicted and trials are pending for the remainder; and —gathering evidence to enable the Department to file 65 civil law suits against places of public accommodation for alleged discrimination against members of minority groups. THEFT OF GOVERNMENT PROPERTY Under the Theft of Government Property Statute, the FBI investigates major violations involving the theft, robbery, illegal possession, or destruction of U.S. Government property. Investigations resulted in 792 convictions and the recovery of more than $1.2 million worth of stolen property. ASSAULTING OR KILLING FEDERAL OFFICERS AND OTHER GOVERNMENT OFFICIALS On January 30, 1973, U.S. Senator John C. Stennis was robbed and shot in front of his Washington, D.C., residence. Although critically wounded, he eventually recovered. An intensive investigation was launched by the FBI closely coordinated with the Metropolitan Police Department—under the Congressional Assassination Statute which makes it a crime to assault, kill, kidnap, or threaten Members or Members-elect of Congress. Two young males and an accomplice allegedly responsible for the robbery-shooting of Senator Stennis were arrested and charged with violation of the statute and a multitude of local offenses. One has pled guilty and awaits sentencing. The other two await court action. The FBI also has jurisdiction in cases wherein certain designated Federal employees are assaulted, killed, or interferred with while on duty or as a result of the performance of their duties. A total of 98 convictions resulted from investigations in these matters—an increase of 18 over the previous year. Assaults on FBI agents increased from 89 in the previous year to 155 during 1973. CRIME ON GOVERNMENT RESERVATIONS, INDIAN RESERVATIONS, AND THE HIGH SEAS The FBI was extensively involved in responding to the takeover of Wounded Knee, S. Dak., by militant Indians. This involvement was based on its responsibility to investigate major crimes in those areas where the Government has either exclusive or concurrent jurisdiction. Included are certain crimes committed on Indian reservations where this jurisdiction has not been granted to the states. At the height of this operation the FBI used five special agents in charge and 150 special agents from field offices throughout the country. U.S. marshals and Bureau of Indian Affairs officers also assisted. As of June 30, 1973, 119 persons had been indicted by a Federal grand jury in Sioux Falls, S. Dak., for various violations resulting from Wounded Knee incidents. A number of those indicted were leaders of the American Indian Movement. During 1973, 1,732 convictions resulted from investigations of crimes on Government and Indian reservations. Certain crimes committed on the high seas aboard American vessels or aircraft, within the special mari- 168 time jurisdiction of the United States, as well as other designated violations dealing with shipping, fall within FBI jurisdiction. Convictions resulting from investigation of crimes committed on the high seas, or related thereto, totaled 33. Los Angeles, California, police car blown up by extremists. (Photo courtesy of Los Angeles Police Department.) POLICE KILLINGS Some 125 law enforcement officers were killed in the performance of their duties during the year ending June 30, 1973—17 more than were killed during the previous 12-month period. Upon written request of a duly constituted head of a local law enforcement agency, the FBI will participate in investigation of such killings, based on a Presidential directive issued June 3,1971. This is in addition to making available the facilities of the FBI Laboratory, Identification Division, and National Crime Information Center. BOMBING MATTERS Two bombings, one at the U.S. Navy and Marine Corps recruiting station and another at a U.S. Army recruiting station, both located in Portland, Oreg., were reported during the year. BANK FRAUD AND EMBEZZLEMENT Various criminal statutes apply to internal thefts by employees and agents of banking institutions, insured by agencies of the U.S. Government. These statutes have gradually broadened so that, at the present time the FBI has investigative jurisdiction over approximately 56,000 federally insured financial institutions. These are primarily banks, federal savings and loan associations, and credit unions. Officers and directors of banking institutions were involved in many of the fraud and embezzlement cases in which a recordbreaking number of convictions were obtained. A total of 1,064 convictions resulted from investigations. The amounts of money involved in bank frauds and embezzlements continued to increase. During the past decade, the number of convictions in these cases has almost doubled—577 in 1963 compared to 1,064 in 1973. The amounts of shortages (approximate) have increased yearly, from $14.1 million in 1963, to $135.6 million 1973. The number of cases reported also has climbed over the decade from 2,469 to 6,787. White-collar crimes—offenses committed by persons in responsible positions in government and private enterprise—increased dramatically during the past year. These crimes have become more sophisticated, requiring greater expertise by investigators. ANTITRUST INVESTIGATIONS The FBI investigates alleged violations of antitrust laws, such as monopolies and restraints of trade in interstate commerce. Investigations of antitrust violations led to 43 convictions in 1973, an increase over the 26 convictions obtained during the previous year. Fines imposed and recoveries effected amount to approximately $42.5 milion. NATIONAL BANKRUPTCY ACT Preconceived bankruptcies engineered by the criminal underworld and unscrupulous businessmen are subject to investigation by the FBI. Such investigations are based on concealment of assets from the Bankruptcy Court and related offenses. Investigations in these matters resulted in 27 convictions and fines and recoveries totaling $343,434. FRAUD AGAINST THE GOVERNMENT: BRIBERY Special projects to combat fraud in programs administered by the Federal Housing Administration in 19 metropolitan cities achieved significant results. In New York, 63 persons were indicted—ten have been convicted, six are awaiting sentencing, and the remainder are awaiting trial. In Philadelphia, 70 individuals and companies were indicted, 42 have been convicted and the others are awaiting trial. In Detroit, 67 persons were indicted and 23 have been convicted. The remainder are awaiting trial. Those indicted were charged variously with fraud against the Government, conspiracy, obstruction of justice, and bribery. 169 The following tabulation shows the results of increased investigative activity in fraud- and bribery-type investigations during the past three years. 1971 1972 1973 Convictions_____________________________ 277 292 320 Fines, savings, and recoveries__________ $6,703,519 $11,216,402 $19,931,471 INTERCEPTION OF COMMUNICATIONS The FBI conducts investigations regarding illegal use or possession of surreptitious listening devices commonly known as bugs. Violations often involve domestic and marital discord in which services of private detective agencies are used to record conversations obtained by surreptitious listening devices. Occasionally, the allegations involve industrial espionage. The most far-reaching and important investigation conducted by the FBI in recent years involving the Interception of Communications Statutes (IOC) has become known as the Watergate case. On June 17, 1972, five persons were arrested by officers of the Washington, D.C., Metropolitan Police Department inside the Democratic National Committee Headquarters located in the Watergate Office Building, Washington, D.C. By midmorning, when it became obvious the matter involved illegal bugging and wiretapping rather than a routine burglary, investigative jurisdiction was assumed by the FBI at the request of the U.S. Attorney’s Office, with the concurrence of the Criminal Division. An investigation was conducted which ultimately involved 56 of the 59 FBI field offices as well as inquiries in foreign countries through liaison by four legal attaches with authorities in those countries. On September 15, 1972, a Federal grand jury in Washington, D.C., returned an eight-count indictment charging James Walter McCord, Jr., Everette Howard Hunt, Jr., George Gordon Liddy, Bernard L. Barker, Eugenio R. Martinez, Frank A. Sturgis, and Virgilio R. Gonzalez with violations of the IOC statutes, conspiracy and burglary. Hunt, Barker, Martinez, Sturgis, and Gonzalez pleaded guilty to all counts. McCord and Liddy were found guilty on all counts by the jury. Liddy was sentenced to six years and eight months in Federal prison; Hunt, Barker, Martinez, Sturgis, and Gonzalez were sentenced to the maximum term under the provisions of section 4208(b), title 18, United States Code, to undergo study for 90 days by the Bureau of Prisons, at the conclusion of which the court was to receive a recommendation as to the actual term to be served. McCord was awaiting sentence as the year ended. Extensive additional Federal grand jury hearings were held concerning efforts to obstruct the original Federal grand jury investigation. Non-Criminal Investigations FEDERAL EMPLOYEE SECURITY PROGRAM Under Executive Order 10450, which was implemented in 1953, the FBI is charged with the responsibility for checking through its files, names and fingerprints of employees and applicants in the executive branch of the Federal Government. Although the Civil Service Commission and/or the employing agency conduct investigations pertaining to general suitability, the FBI conducts investigation where information of a disloyal or subversive nature is disclosed. It is not the responsibility of the FBI to issue security clearances, but to report the facts developed without bias, conclusion, or recommendation. The Civil Service Commission and / or the employing agency evaluate the investigative findings and take appropriate action. During 1973, 284,085 individual security forms were handled. As a result of the processing of these forms, specific requests by the Civil Service Commission and other agencies, and complaints received directly by the FBI, 985 investigations were instituted. U.N. LOYALTY PROGRAM Executive Order 10422, which established the U.N. loyalty program in January 1953, gave the FBI the responsibility for conducting investigations of American citizens employed by or seeking employment on the staff of the U.N. Secretariat and other international organizations of which the United States is a member. These cases are referred to the FBI by the Civil Service Commission when information is developed which bears adversely on the loyalty of such employees or applicants. In 1973, 31 investigations were instituted. DEPARTMENTAL APPLICANTS At the request of the Department, the FBI conducts investigations of individuals employed in the various divisions and bureaus within the Department of Justice, including candidates for the positions of U.S. attorney, assistant U.S. attorney, and U.S. marshal. In addition, investigations are conducted on applicants for Federal judgeships, U.S. magistrates and Federal public defender positions. During 1973, 3,576 such investigations were conducted. Other applicant and employee-type investigations instituted by the FBI during 1973 are listed in the table below. 170 Employee Investigations Source: Number Atomic Energy Commission: Applicants .................................... E 083 Employees .............-......:................— *67 White House ................................................. 979 Congressional committees........................... 98 Public Law 298 ..................-................. 1 J60 Application for pardon after completion of sentence ........... 32Z Maintenance employees (FBI headquarters and field offices) .... 767 Total ...................-............-.......... 4, 876 i Includes investigations conducted under the Arms Control and Disarmament Act, the National Aeronautics and Space Agency Act, and the Peace Corps Act. NAME CHECKS In line with its responsibilities for maintaining internal security of the United States, the FBI coordinates and disseminates information to authorized Government agencies to assist them in carrying out their functions and to safeguard the security of the Nation. During 1973, the FBI conducted 1,929,323 name checks for other governmental agencies. Intelligence Division INTERNAL SECURITY AGAINST VIOLENCE The FBI’s responsibility to protect the Nation’s internal security is based on legislative enactments and instructions from the Attorney General. Specific investigative jurisdiction covers matters relating to sabotage, espionage, counterespionage, treason, insurrection and rebellion, seditious conspiracy, advocating overthrow of the Government, and other matters affecting the national security. Investigations in the internal security field fall into two basic categories: (1) gathering intelligence-type data and disseminating it to appropriate officials in the executive branch of the Government to assist in making decisions affecting national security; and (2) collecting evidence for possible use in prosecutive proceedings. The Department initiates prosecutions relating to internal security violations. SOVIET-BLOC INTELLIGENCE The Soviet-bloc countries continue to actively engage in intelligence collection in the United States. The FBI counterintelligence operations seek to identify a high and fairly consistent percentage of Sovietbloc personnel in the United States as intelligence officers or agents. Accordingly, the threat to the United States and the counterintelligence responsibilities of the FBI have been growing in proportion to the Sovietbloc presence in the United States. PEOPLE’S REPUBLIC OF CHINA The FBI Counterintelligence responsibilities have also grown in response to the official presence of the People’s Republic of China in New York City and Washington, D.C., since admission to United Nations. EXTREMIST MATTERS Black, white, and more recently, American Indian extremists, intent on creating a climate of violence throughout the United States, continue to receive attention. There are a multiplicity of groups throughout the United States who espouse violence and engage in guerrilla warfare. Their tactics include attacks on police, assault, murder, and the spread of terror. — during the past year, 14 police officers were killed and 44 wounded in urban guerrilla-related attacks. A total of 138 separate incidents of possible urban guerrilla-type activity were reported during this same period for an average of about one such incident every three days; — since January 1, 1973, armed attacks against police attributed to the Black Liberation Army have resulted in two police officers killed and nine injured; — nine leaders and members of the Secret Army Organization were arrested and charged locally for such activity as wounding a woman by firing into the home of a local college professor and bombing an X-rated movie theater. Six of its members were convicted on charges ranging from possession of explosive materials, assault with intent to commit murder, assault with a deadly weapon on a police officer, to perjury; — during the past year, five individuals affiliated with the United Klans of America in Pontiac, Mich., were convicted of Federal conspiracy charges growing out of the 1971 bombing of ten schoolbuses; — five United Klans of America affiliates are also currently awaiting trial in connection with the tarring and feathering of a high school principal in Michigan; —the American Indian Movement provoked violent demonstrations in early 1973 at Scottsbluff, Nebr., and Custer and Rapid City, S. Dak., prior to culminating its violent actions at Wounded Knee on the Pine Ridge Indian Reservation and also occupied the Bureau of Indian Affairs Building, resulting in $2 million in damage to building and records; and — during the past year, Weatherman has claimed to have committed sporadic acts of extreme violence such as the bombing of two New York City Police Department patrol cars. Several incidents involving foreign-inspired terrorism have occurred in the recent past in this country. Persons affiliated with the Arab terrorist movement, variously referred to as Al Fatah, Palestinian Liberation Organization and the fedayeen movement, are known to have entered or attempted to enter the 171 United States from overseas, allegedly to carry out assassinations here. —a major Arab terrorist effort was attempted by Al Fatah’s Black September Organization in New York City. Literature was found in each of three rental automobiles containing massive explosive devices which were placed near three separate Israeli business establishments. The FBI investigation led to the location of the vehicles and the devices were disarmed. In those instances where information was received concerning individual Arab terrorists who had entered the United States or were attempting to enter the United States to carry out assassination plots, the Government has been successful to date in thwarting any such attempts. Terrorist organizations advocating independence for Puerto Rico have carried out over 400 bombings or acts of incendiarism since the 1967 Plebiscite in Puerto Rico but only a negligible number occurred during the past year. Practically all the attacks were against U.S. military or U.S.-owned business establishments. PROTECTION OF FOREIGN OFFICIALS AND OFFICIAL GUESTS OF THE UNITED STATES Since the passage of the statute for the Protection of Foreign Officials and Official Guests, a weekly average of four or five incidents with subversive ramifications involving foreign diplomatic establishments or personnel has been reported. Three significant investigations have been conducted to date arising under the act. The consul general and vice consul at the Turkish Consulate, Los Angeles, Calif., were murdered at Santa Barbara, Calif. Extensive investigation was conducted by the FBI and evidence was provided to local authorities concerning Gourgen M. Yanikian, who was charged with the murders and tried in Superior Court, Santa Barbara County, Calif. Yanikian was found guilty on two counts of first degree murder and sentenced to life imprisonment. Five Iranian students assaulted the deputy consul general of the Iranian Consulate, San Francisco, Calif., at a public meeting. Four of the students were arrested and the fifth surrendered. At the close of the year, their trial was pending. Col. Yosef Alon, assistant armed forces attache, Israeli Embassy, Washington, D.C., was murdered by an unknown assailant. No tangible clues as to the identity or motive of the assailant have been developed to date. Training Division The new FBI Academy at Quantico, Va., swung into full operation in 1973 enabling the FBI to more effec tively meet its own growing and complex training needs as well as those of law enforcement at all levels of government. As the year ended, construction of a student services building, garage, and concourses between buildings was underway. These projects are scheduled for completion by March 1974. The plans call for an 11-build-ing complex capable of accommodating as many as 720 resident students. FBI NATIONAL ACADEMY It is now possible for unprecedented numbers of police officers to attend the FBI National Academy. Since its establishment in 1935, the National Academy has provided a professional training program to career officers from throughout the law enforcement community. During 1973, the National Academy graduated a total of 1,044 officers—more than five times the number graduated during the previous year. Of the 7,178 officers who have completed National Academy training, nearly 4,100 remained actively engaged in law enforcement at the close of fiscal 1973. Approximately one in four was executive head of his agency. More than 250 foreign officers, representing almost 50 countries, have participated in the intensive 12-week program. Arrest techniques are practiced by E. M. Norwood (left), Vivian Carpenter (center), and Fanida Johnson with instruction from SA James R. Allen, the Central Police School, Virginia State Police Headquarters, Richmond, Virginia. (Photo courtesy of Richmond Times-Dispatch). Officers enrolled in the 94th session of the National Academy received the most comprehensive academic and vocational training program in its history. Through an affiliation with the University of Virginia, these officers could earn up to 16 semester hours of undergraduate credit. A wide variety of vocational 172 subjects balance out a program designed to meet the needs of the law enforcement officer in today’s expanding and complex society. A National Academy Associates Sectional Retraining Session was held in Milwaukee, Wis., for the Central States with 319 graduates in attendance. Police Training Local, County, and State Police Training Schools Extended FBI Assistance As a further service to law enforcement, three national symposiums devoted to major police concerns were conducted at the Academy. The first dealt with “Police-Community Relations” and included 124 leading law enforcement administrators. The second treated “Urban Police Patrol Practices” and was attended by 115 law enforcement officials. The third dealt with “Terrorism” and was attended by 126 law enforcement executives. A national seminar and a number of other special schools for police officers were also conducted at the FBI Academy. To carry out the FBI’s vital role in field police training, more than 1,600 special agents are qualified to provide instruction in a broad range of law enforcement topics. The FBI provided 91,156 hours of instructional assistance to 10,370 law enforcement training schools attended by 319,995 criminal justice personnel. Specialized field schools were also conducted by members of the Academy staff on such topics as criminology, police management, and instructor development. The continuing problem of attacks on police and citizens by extremists led to 284 nationwide law enforcement conferences on “Extremists and Terrorism.” These conferences were attended by 24,953 persons representing 6,773 different criminal justice agencies. In June 1972, the FBI, at the request of the Law Enforcement Assistance Administration, assumed operation of the National Bomb Data Center. This Center provided extensive technical information and training assistance on bombing matters to law enforcement agencies throughout the country. Laboratory Division The FBI reached record plateaus of achievements in 1973, while completing its fourth decade of operation. The Laboratory made 531,471 examinations— 7.4 percent more than the previous year. These examinations consisted of: —274,960 document matters; —147,190 gambling, translation, and related fields: —105,913 physics and chemistry; and —3,408 radio engineering. A total of 338,812 specimens were received, a five percent increase over the previous year Twenty-five percent of all laboratory examinations were conducted for agencies other than the FBI throughout the United States and these were provided without cost. Such examinations are conducted with the understanding that the evidence submitted relates to an official investigation of a criminal matter and that the Laboratory’s findings will be used only in connection with this purpose. With gambling activities being organized crime’s largest source of revenue, the Laboratory’s Gambling Unit continued to play an important role. Gambling-related examinations range from inspection of gambling paraphernalia to determine their operations and irregularities to the study of materials seized in connection with arrests of persons suspected of maintaining illegal gambling records. The Laboratory conducted 81,631 gambling-related examinations, an increase of 14,555 over the previous year. In its research efforts, the Laboratory added equipment which extended its capability to detect many drug substances. A research project was completed, further refining means of analyzing fluid petroleum products using limited amounts of flammable liquids often found in arsons. The Instrumental Analysis Unit devised and perfected a one- or two-day procedure in which quantitative thin-layer chromatography permits identification of exotic explosives frequently found in letter bombs using minute samples of the explosive. Relatively large samples were necessary in the past. 173 FBI LABORATORY Examinations Made For Non-Federal Law Enforcement Agencies FISCAL YEAR 1973 CANAL ZONE 0 5 PUERTO RICO 171 <968 ',831 <568 2,709 1,264 2,449 <553 762 2,490 ',906 8,5)4 3,234 2,S65 199 660 FOREIGN 1,129 '40 1,948 628 1,934 1,212 1,286 TOTAL 120,498 VIRGIN ISLANDS. U.S.A. 64 64 34 23 1,346 2,407 4,115 1,542 10,1 10 - 8,766 lo.c.) 518 8,951 CANADA GUAM SAIPAN BAHAMAS ALASKA 2,322 929 6,063 Breakdown of FBI Laboratory Examinations Other Federa Non-Federal Agencies 531,471 performed in fiscal year 1973 Identification Division Historical reflection may prove 1973 to be a landmark for the Identification Division as well as for all law enforcement. In 1972, a prototype fingerprint-reading scanner system was delivered to the Division. This equipment, known as FINDER (an acronym for FINgerprint ReaDER) is capable of electronically scanning inked fingerprint cards and locating and recording identifying characteristics found in the print. Currently, over 1,400 highly trained fingerprint technicians perform the work to be performed by FINDER. The FINDER prototype was developed through five and one-half years of research and development costing $1.25 million. Automation of Identification Division functions is not limited solely to the FINDER system. All preliminary technical work on a data entry and retrieval system which will automate the recording and processing of alphabetic and numeric descriptive and arrest data appearing on the first offender fingerprint cards has been completed. This automated function will be operationally implemented early in 1974. 174 The Division received 6,034,310 fingerprint cards, 3,253,119 of which were criminal fingerprint card submissions. This was a reduction in the number of criminal fingerprint cards received in 1972. At the direction of the Attorney General, contributors were instructed that fingerprints taken in connection with nonserious offenses, including drunkenness, traffic violations and loitering, should not be submitted to the Division. The purpose of the policy change is to achieve uniformity between the arrest data stored in the manual identification system and similar data maintained in the relatively new computerized criminal history system of the National Crime Information Center. The 845,762 non-Federal applicant fingerprint cards received in 1973 represented a 43.5-percent increase over the previous year. This increase is attributed to submissions by agencies in the aftermath of the Menard v. Mitchell and the resulting congressional legislation making state legislation a prerequisite to Federal processing of employment and licensing fingerprints. The total fingerprint cards on file was reduced from 193,822,138 in 1972 to 159,345,941 in 1973. This reduction came about as a result of efforts of the Division to attain the goal of retaining only one fingerprint card for each person represented in the civil file. This purge project has been programed into three phases: 1. removal and destruction of fingerprints received in connection with civilian national defense work during World War II; 2. removal and destruction of civil fingerprint cards of all individuals 75 years of age or older; and 3. identification and consolidation of duplicate fingerprint cards of individuals remaining in the file. Virtually all of the work has been completed on the first two phases of this program. The Division continued to receive an increased number of requests involving correspondence, name check, and other miscellaneous forms. The 4,640,927 items in these categories in 1973 represented an increase over the 4,529,222 received for the same period in 1972. In addition, there was an increase in the trend of eradicating arrest records through expungement proceedings. Some 18,111 fingerprint cards were returned to contributors following expunction requests. Of the 22,-815 arrest fingerprint cards expunged in 1972, 9,000 represented 1971 May Day arrests in Washington, D.C. The missing persons program of the Division provides assistance to close relatives, Members of Congress, and other public agencies acting in behalf of the families of missing persons. At the close of the year, 4,972 active missing persons notices were on file. In addition, 2,016 notices were cancelled during the year. Many of these persons were located for their families through identification in the fingerprint files. Federal Bureau of Investigation latent fingerprint examiners made a total of 594 court appearances in 1973, 259 of which were for state and local authorities. Representatives of the Latent Fingerprint Section conducted 62 advanced latent fingerprint schools for law enforcement agencies and offered instruction in fingerprint identification or related matters in 47 additional instances. These representatives also gave fingerprint instruction to 15 special agent classes, 33 FBI National Academy groups, 15 in-service classes, one fingerprint instructor’s class, and one administrative advanced latent fingerprint school. The FBI Disaster Squad assisted in the identification of victims of six disasters—a tavern fire and five airplane crashes—occurring in the past year. In these tragedies victims are often so mutilated identification can only be established through their fingerprints. Some 202 victims were examined in these disasters, of which 58 victims were identified by fingerprints. Computer Systems Division The Computer Systems Division is charged with responsibility for providing automatic data processing services. These services are provided in such areas as accounting, statistics, personnel actions, file maintenance, indices searches, fingerprint processing, law enforcement training, and investigative matters. In addition, the Division provides computer support for the exchange of law enforcement information and statistics through the National Crime Information Center and the uniform crime reporting programs. NATIONAL CRIME INFORMATION CENTER (NCIC) Widely acclaimed by the nationwide criminal justice community, NCIC has been an integral part of the crimefighting services offered to Federal and local law enforcement units throughout the United States and Canada. Through a telecommunications network involving 90 NCIC control terminals, information from more than 4.4 million records stored in the FBI’s computer is almost immediately available to more than 6,000 police agencies and other members of the crimefighting community. More than 108,000 transactions are handled daily by NCIC. These transactions involve records concerning wanted criminals, criminal histories, and stolen vehicles, aircraft, boats, license plates, firearms, securities, and other identifiable property. Records stored in the NCIC computer increased 17.6 percent over the previous year. UNIFORM CRIME REPORTING (UCR) PROGRAM The FBI’s annual UCR publication, “Crime in the United States,” continued to be one of the most widely used documents published by the Government. The 175 publication is utilized by local, state, and Federal officials in planning, budgeting, disbursement of Federal grants, legislation, and analysis of the crime problem. Publications The FBI makes available to the law enforcement community a variety of publications dealing primarily with matters of professional interest. Perhaps the most widely read of these publications is the “FBI Law Enforcement Bulletin,” a monthly professional journal designed to both instruct and inform lawmen. Its circulation presently exceeds 77,000. Distribution of technical publications usually is restricted to law enforcement agencies; however, some literature dealing with the nature of the FBI’s work and jurisdiction is available to the public. Inspection Division Serving as the internal audit system of the FBI, the Inspection Division makes periodic and penetrative examinations of all phases of the FBI’s operations on behalf of the Director. Consisting of a specially trained staff under the supervision of an Assistant Director, the inspection staff is specifically geared to uncover and correct operational deficiencies, promote maximum effectiveness and efficiency, insure economy, and evaluate the implementation of new techniques and procedures in every area of the FBI’s responsibilities. An inspection team yearly visits each field office, resident agency, liaison post, and headquarters division at which time a detailed survey and analysis is made of the entire operation including employees’ responsibilities. During 1973, 87 major inspections and 369 special, surveys and miscellaneous inquiries were made by the staff. Office of Planning and Evaluation Established during 1973, the Office of Planning and Evaluation was created to assist the Director in the formulation and development of policy procedures. Completing numerous comprehensive studies of the FBI during its short tenure of operation, the Office has made a number of recommendations which have been adopted and have resulted in internal policy changes. These changes were recommended after completion of lengthy and detailed studies which included reviews of existing procedures, the historical Reasons for establishing same and the examination of the suitability of these policies in today’s FBI. Geared toward strengthening the overall capabilities of the FBI in the performance of its assigned functions, the Office draws upon the vast reservoir of diverse knowledge within the FBI in the performance of its assigned functions as well as resources of private enterprise and expert Government opinion. Files and Communications Division Often referred to as the memory of the FBI the Files and Communications Division is charged with maintaining investigative, applicant and administrative files, and records. This Division stores the results of investigations and keeps a central index system which enables personnel to locate data in a matter of minutes. As the year ended, the FBI had in its possession over 6,483,000 files, 151,000 of these being new files pertaining to investigations during 1973. Index cards on all types of subject matters referring to these files in the central index system numbered over 57,740,000. Since the volume of name check requests and the transactions pertaining to the almost 6.5 million files have increased by significant proportions each year, the Division has begun analyzing and preparing for an automated system which will provide a more complete and efficient method for handling chargeout and return procedures for requested files. This system will be called the file automated control system (FACS). When it becomes operational in 1974, all file requests will be made automatically to determine the location and availability of files and records. In addition to its responsibilities of maintaining the files and records, the Division is in charge of 24-hour communication between headquarters in Washington, D.C., and all field divisions. Tours Highlighted by a behind-the-scene glimpse of FBI Laboratory experts at work and a firearms demonstration by a special agent, tours through FBI headquarters in Washington, D.C., continued to be a popular tourist attraction drawing 410,983 persons during the year. J. EDGAR HOOVER FBI BUILDING Significant progress was made in construction of the J. Edgar Hoover FBI Building during 1973. According to General Services Administration officials, the planned occupancy date of July 1974 is realistic in view of the construction progress to date. It is anticipated that 7,700 employees and all headquarters operations will occupy the new building. 176 Summary of Statistics for the 1973 Fiscal Year ■ Classification title Actual, suspended and probationary Convictions sentences Fines imposed Savings Years Months Days Recoveries Fugitives located 1 Life sentences—40 (kidnaping—12; Government and Indian matters—13; bank robberies—12; crime aboard aircraft—3). Death sentences—None. Gambling devices confiscated—479. 177 Admiralty matters Antiracketeering Antiriot laws . 77 523 8 12 149, 800 16, 053, 482 107, 000 531,552 ... 1,127, 843 52 14 Antitrust 43 1 3 .... 598,500 .. 41,895,325 2 Ascertaining financial ability 1,773,201 ... Assaulting or killing a Federal officer 98 269 2 1 11,425 .. 41 Assaulting President or Vice-President 1 Bank fraud and embezzlement: Banks 946 2, 841 2 17 218,055 9,101 16,109, 980 277 Federal Credit Union ... 57 186 3 28 11,869 .. 200,932 25 Savings and loan association 61 213 7 15 13, 400 2,750,000 671,346 16 Bank robbery, burglary, and larceny i 1,771 17,465 4 7 56, 705 858 15, 884,610 967 Bombing matters 19 101 2 24 100 .. 11,000 21 Bond default ... ... _ ... 239 663 10 9 8,437 .. 466 Bribery and conflict of interest 64 160 9 7 572,150 2, 744, 503 6, 500 25 Civil rights 5 8 6 .... 500 .. 15 Civil Rights Act of 1964 .. 1 Contempt of court.. 57 22 5 11 23,870 .. 801,698 1 Copyrights 2 2 .... 250 .. 19, 794,667 2 Court of Claims 19,647 ... Crime aboard aircraft i 234 446 2 9 24,480 .. 6,950,722 35 Crimes on the high seas ... ... ... 33 64 1 27 2,800 .. 152,442 13 Desecration of the flag.._ 10 Desertion, harboring deserters, enticing to desert. .. .. 2 5 2 500 .. 2, 500 21,912 Destruction of aircraft 87 129 4 28 23,526 .. 11 Destruction of interstate property 4 6 .... 3 Discrimination in housing.. 4 10 9 .... 1,145 .. 49, 250 Election laws 16 60 .... 134,750 .. 76 Escaped Federal prisoners, parole, probation, and conditional release violators.. ._ 688 1,359 11 16 1,100 .. 63, 539 2,359 Espionage 9,300 ... Extortion 62 300 8 15 2,500 .. 25,000 57 Extortionate credit transactions 41 341 .... 27 165,000 .. 41 False entries in records of interstate carriers 2 3 6 .... 3,139 Federal firearms acts 63 275 2 9 4,500 .. 10 Federal Housing Administration matters 65 211 3 1 329,450 45,091 710, 381 74 Federal lending and insurance agencies 10 22 9 .... 250 .. 203, 206, 001 69,239 4 Federal Tort Claims Act 7, 500 ... Federal Train Wreck statute. .. 3 10 .... 2, 699 8 Fraud Against the Government 175 485 7 2 227,610 ■ 1,497,401 13,715,326 73 Government and Indian Reservation matters i 1,732 3,238 .... 28 63,714 .. 658, 236 649 Harboring fugitives 16 52 3 .... 2,650 .. 4, 021,601 4 Illegal gambling business.. . _. 643 2,022 3 26 515,990 .. 468 Illegal wearing of uniform and related statutes 59 63 6 25 2,200 .. 85 17 Impersonation. 48 125 7 .... 1,850 .. 150 55 Interception of communications 29 88 6 .... — 65,850 .. 2,418 9 Interstate obscene or harassing telephone calls 6 19 44,000 .. 23, 587 5 Interstate transmission of wagering information 44 134 10 4 44 Interstate transportation in aid of racketeering 151 420 2 2 322,250 395,000 244, 231 122 Interstate transportation of fireworks 1 1 1,250 .. 15, 499 ... Interstate transportation of gambling devices 3 6 3 .... — 2,728 3 Interstate transportation of lottery tickets 3 1 .... 700 .. 138,562 Interstate transportation of obscene matter 18 60 .... - - - 38,500 .. 37 Interstate transportation of stolen cattle 4 17 .... 86, 412 9 Interstate transportation of stolen motor vehicles or aircraft . . 2,017 6, 744 7 1 95,900 .. 9,767,834 1,154 Interstate transportation of stolen property 1,333 5,229 4 12 186, 400 9, 391,355 56, 500, 478 1,235 1 Interstate transportation of wagering paraphernalia 2 9 .... 1,000 .. Involuntary servitude and slavery 2 5 1,000 .. 9 Irregularities in Federal penal institutions 29 90 10 28 8,000 .. 196,500 5 Kidnaping .. i 71 797 3 23 .... 12,000 .. 53 Labor Management Relations Act 17 18 .... 24 Labor-Management Reporting and Disclosure Act of 1959.. 31 112 9 .... 1,500 .. 55,015 7 Mail frauds 45 176 6 1 77,500 .. 617,154 ... Miscellaneous 133 228 9 5 34, 440 11,427, 605 7, 358, 587 10 National Bankruptcy Act 27 112 2 5 49,000 .. 294, 434 25 Neutrality Act and related statutes 6,075 .. 2 Obstruction of justice 13 48 4 11 11 Passports and visas Perjury. 2 4 1 .... 26, 000 2 61 198 1 4 17,200 .. 17 Police killings 10,995 3 Protection of foreign nationals 150,000 ... 5 Racketeer influenced and corrupt organizations 1 3 .... 9,335,311 .. Renegotiation Act. Sabotage.. 6, 495 1 Selective Service Act. 985 3,145 .... 16 122,601 .. 2, 813 Sports bribery 10 Switchblade Knife Act 1 1 .... 1 611 Theft from interstate shipment 1,146 3,675 6 24 322, 725 947, 776 9, 824, 579 Theft, embezzlement, or illegal possession of Government property- 792 1,276 .... 7 99,001 .. 1,217, 284 314 Unlawful flight to avoid prosecution, confinement or the giving of testimony 2,500 .. 39, 768 3,156 Veterans Administration matters 4 23 .... 11,070 9 Welfare and pension plans.. 22,500 .. 2,444 ... Disclosure Act 10 31 .... White Slave Traffic Act 58 210 5 20 37,000 .. — 32, 632 55 I 178 I ALBANY 21 HOUSTON 41 OKLAHOMA CITY 2 ALBUQUERQUE 22 INDIANAPOLIS 42 OMAHA 3 ALEXANDRIA 23 JACKSON 43 PHILADELPHIA 4 ANCHORAGE 24 JACKSONVILLE 44 PHOENIX 5 ATLANTA 25 KANSAS CITY 45 PITTSBURGH 6 BALTIMORE 26 KNOXVILLE 46 PORTLAND 7 BIRMINGHAM 27 LAS VEGAS 47 RICHMOND 8 BOSTON 28 LITTLE ROCK 48 SACRAMENTO 9 BUFFALO 29 LOS ANGELES 49 ST. LOUIS 10 BUTTE 30 LOUISVILLE 50 SALT LAKE CITY II CHARLOTTE 3| MEMPHIS 51 SAN ANTONIO 12 CHICAGO 32 MIAMI 52 SAN DIEGO 13 CINCINNATI 33 MILWAUKEE 53 SAN FRANCISCO 14 CLEVELAND 34 MINNEAPOLIS 54 SAN JUAN 15 COLUMBIA 35 MOBILE 55 SAVANNAH 16 DALLAS 36 NEWARK 56 SEATTLE 17 DENVER 37 NEW HAVEN 57 SPRINGFIELD 18 DETROIT 38 NEW ORLEANS 58 TAMPA 19 EL PASO 39 NEW YORK 59 WASHINGTON. D.C. 20 HONOLULU 40 NORFOLK FEDERAL BUREAU OF INVESTIGATION FIELD OFFICES Law Enforcement Assistance Administration The year 1973 marked the fifth year of the Law Enforcement Assistance Administration’s program to help states and localities mount a more effective attack on crime and juvenile delinquency. Congress created LEAA under the Omnibus Crime Control and Safe Streets Act of 1968 at a time when violence and lawlessness had reached an unprecedented peak. During the period 1960-68, serious reported crime rose by 122 percent. During the past year, some encouraging signs of progress appeared, although crime remained at unacceptably high levels. The national crime rate dropped by two percent in 1972, according to the FBI’s “Uniform Crime Reports”—the first such decrease in 17 years. In urban areas, where crime is most prevalent, inroads against lawlessness also were evident. In the first three months of 1973, 100 major cities reported crime decreases, compared to 88 cities showing decreases in the same period in 1972. By the end of the year, LEAA aid to states and localities totaled $2.4 billion. While no one factor is solely responsible for the drop in crime, the massive financial aid and technical assistance provided by LEAA has undoubtedly helped state and local governments fashion a more effective response to crime. The LEAA program is a partnership among Federal, state, and local levels of government. It is based on the philosophy of state and local responsibility for law enforcement, a concept reaffirmed by Congress in the Safe Streets Act. The Federal role, as outlined in the legislation, is to supply resources and technical assistance to help support plans and programs devised by the states and localities to meet their own individual needs and problems. In keeping with this philosophy, LEAA awards the major share of its budget in block grants to the states which set their own priorities for allocation of the funds to city, county, and state agencies. In 1973 LEAA had a total of $841 million available for its budget. Of this total, more than $580 million was allocated for block grants to the states for planning, action, and corrections improvement programs. The remaining $261 million in the LEAA budget was distributed among the following programs: — $86.9 million for direct grants awarded at LEAA’s discretion for crime reduction projects that have nationwide implications; — $10 million for technical assistance to build state and local criminal justice expertise; — $51.6 million for discretionary grants earmarked for corrections projects; — $44 million for education and training programs, including the Law Enforcement Education Program; — $31.6 million for research and development to study criminal behavior and devise innovative techniques for crime reduction; — $21.2 million for criminal justice statistics and data systems; and —$15.5 million for administration of LEAA. Congress has continued to support the block grant concept as the most effective way to implement the nationwide crime control program. In 1970 Congress passed a number of amendments to the Safe Streets Act which strengthened the LEAA program. At the end of this fiscal year, Congress was preparing to act on new legislation which would extend the life of LEAA until 1976 and would authorize budgets totaling $3.25 billion over the three-year period. The proposed legislation would also make these key changes in the LEAA program: 179 525-134 0 - 74 - 12 — increase the minimum planning grant each state receives annually from $100,000 to $200,000; — require state comprehensive plans to include comprehensive programs for the improvement of juvenile justice and development of narcotics and alcoholism treatment programs in corrections institutions; — reduce the match required for most LEA A projects from 25 to 10 percent and eliminate the requirement for soft match—i.e., existing facilities, resources, or services; —expand the functions of LEAA’s research and development office—The National Institute of Law Enforcement and Criminal Justice—to include law enforcement training programs; and —replace the tripartite LEAA by naming the Administrator as the agency’s sole director. The Administrator would be assisted by two deputies— one for policy development and one for administration. In the closing months of the fiscal year LEAA established a management committee to review operations and help map the agency’s plans for future progress. In the past LEAA placed its primary emphasis on fund awards to state and local governments for a variety of anti-crime programs. Today, LEAA has reached one plateau and is now ready to ascend to another. While funding will continue to be a major function of the agency, development of new evaluation programs will receive priority attention. The management committee recommended several organizational changes in LEAA, to be implemented in 1974, which will bolster the agency’s efficiency and effectiveness: Among the key proposals: —The Office of Criminal Justice Assistance (OCJA) will be reorganized as the Office of Regional Operations to reflect more accurately its chief mission of program implementation through the ten LEAA regional offices. An Office of National Scope Programs will be established to develop and fund programs of nationwide impact. This new office will assume responsibility for the technical assistance functions formerly in OCJA and for the Office of Education and Manpower Assistance—including the Law Enforcement Education Program. —An Executive Secretariat will be established to streamline staff operations and insure implementation of decisions. —An Office of Comptroller will be created to assume responsibility for all financial management functions as well as LEAA contract operations. —An Office of Planning and Management will be responsible for management, setting standards and goals, special projects, guideline development, and performance measurement. LEAA’s Offices of Audit, Civil Rights Compliance, General Counsel, Equal Employment Opportunity, the National Institute of Law Enforcement and Criminal Justice, the National Criminal Justice Information and Statistics Service, and Congressional Liaison and Public Information will remain virtually unchanged. Criminal Justice Standards and Goals One of the most important programs supported by LEAA since it began is the National Advisory Commission on Criminal Justice Standards and Goals. The Commission, created by the Department of Justice, was financed by $1.7 million in LEAA funds. It was charged with developing a blueprint for crime reduction programs for state and local units of government and the private sector. It did not address itself to Federal programs or policies. The Commission was composed of 22 members representing a cross section of leaders in criminal justice from state and local governments plus recognized criminal justice experts from the private sector. Another 180 persons served on four operational and eight advisory task forces. More than 100 experts and consultants prepared material for the Commission’s consideration, and hundreds of other outstanding criminal justice and law enforcement practitioners with broad experience were asked their views in formulating standards and setting priorities in preparing the Commission’s report. Many of the Commission’s major findings were discussed in detail at the National Conference on Criminal Justice in Washington, D.C., in January 1973. The conference was attended by more than 1,500 state and local criminal justice officials and community leaders as the Commission sought the widest possible involvement for eventual state and local consideration of the proposals. The Commission started from the basic premise that “America can and should make its cities and neighborhoods, its highways and parks, and its homes and commercial establishments, safe places for all persons at all times.” The Commission proposed hundreds of recommendations to transform that goal into a reality in reports to be released early in fiscal 1974. In its summary report, “A National Strategy to Reduce Crime,” the Commission outlined step-by-step procedures to reduce crime at the state and local levels. Specific and detailed standards and goals are contained in five separate task force volumes on Community Crime Prevention, Police, Courts, Corrections, and Criminal Justice System. The standards and goals are designed to serve as a model for state and local governments to use in reducing crime and improving the criminal justice system. 180 LAW ENFORCEMENT ASSISTANCE ADMINISTRATION SAN FRANCISCO IX OFFICE OF PUBLIC INFORMATION AND CONGRESSIONAL LIAISON OFFICE OF OPERATIONS SUPPORT SEATTLE X DENVER VIII —■ OFFICE OF CIVIL RIGHTS COMPLIANCE OFFICE OF EDUCATIONAL AND MANPOWER ASSISTANCE KANSAS CITY VII OFFICE OF THE ADMINISTRATION OFFICE OF GENERAL COUNSEL OFFICE OF CRIMINAL JUSTICE ASSISTANCE DALLAS VI CHICAGO V OFFICE OF INSPECTION AND REVIEW i' ’ ' NATIONAL CRIMINAL JUSTICE INFORMATION AND STATISTICS SERVICE ATLANTA IV PHILADELPHIA III OFFICE OF AUDIT NATIONAL INSTITUTE OF LAW ENFORCEMENT AND CRIMINAL JUSTICE NEW YORK II - > -BOSTON 1 181 Their use is strictly voluntary. They are not intended to be federally imposed. LEAA plans to work with the states in demonstrating and testing the concept of using standards and goals as a criminal justice planning tool. Simultaneously, all states will be encouraged to use their own particular standards and goals as a guide to block action grant programs. LEAA funded several programs directed toward the Commission’s recommendations. The American Bar Association, for example, received LEAA funds to compare the ABA standards for criminal justice to the National Advisory Commission’s standards and goals. Funds also were awarded to the ABA to enable it to work with the states in implementing both the ABA’s and the Commission’s standards. More than $500,000 was awarded to the Kansas City Police Department to analyze the effect of police response time on crime reduction. One of the Commission’s major recommendations was improvement of police response time. High Impact Programs Another major LEAA effort against crime was the High Impact Program operating in eight major cities: Atlanta, Baltimore, Cleveland, Dallas, Denver, Newark, St. Louis, and Portland. Target cities were announced in 1972, and since that time LEAA has awarded more than $70 million under the program. The cities had begun implementation of some 172 anti-crime projects by the end of 1973. Interim evaluation reports on three of these projects demonstrate the progress being made: —A St. Louis foot patrol project, deploying pairs of volunteer patrolmen in selected high-crime areas during high-crime evening hours, reduced serious crimes 9.5 percent during the first half of 1973 compared to the same period the previous year. Crimes against persons decreased 19.9 percent overall and 25.8 percent during the project’s hours of operation. —The Employ-Ex Project in Denver offered job training and counseling to 370 persons during the first half of the year. A total of 150 were placed in jobs and processing was completed for 85 other offenders still confined. —The Anti-robbery/Burglary Unit in Atlanta placed a team of plainclothes officers in high-crime areas to conduct stakeouts, gather information and investigate fencing activities. The project played a key role in reducing robberies by 15.6 percent and burglaries by 4.2 percent and increasing apprehension by five percent in the period April-June 1973. Office of Audit During the year, the Audit Office conducted 120 audits, reviews, and inspections of State Planning Agency operations, LEAA grants and contracts and academic assistance grants. A total of 335 state auditors have now completed a special training session for the heads of state audit agencies. The program is designed to explain the LEAA block grant program and audit methodology. In another effort to improve state auditing capabilities, state auditors are assigned to LEAA under the Intergovernmental Personnel Act. LEAA pays the costs for the auditors and they gain in-service experience in the comprehensive type of audits required under the LEAA program. They then return to their states to assume principal responsibility for audits. Office of Inspection and Review During the past year, the Office directed planning and evaluation of LEAA programs. To aid states in conducting evaluation of LEAA-funded programs, the Office published a guide to criminal justice evaluation, “Program Planning Techniques.” The Office also represented LEAA at the undersecretaries’ working group which helps to formulate policy in the Federal regional councils. It performed staff work for the Interdepartmental Council to Coordinate all Federal Juvenile Delinquency programs. Since the Council’s creation in 1972, the LEAA Administrator has served as chairman-designate. The Office also supervised the work of the Information Systems Division during the past year. This Division provides data processing support in developing LEAA information systems. In 1973 the Division began operation of the LEAA grants management information system (GMIS) which provides easy retrieval of a wide range of grant information from a computerized data base. Office of General Counsel This Office provides legal opinions, interpretations, and advice to the agency on legal aspects of LEAA activities and broad policy matters affecting the agency and its statutory authority. The Office participated in the drafting of the Administration’s proposals leading to the Crime Control Act of 1973 which would extend the LEAA program for a three-year period. Office of Civil Rights Compliance The Office is responsible for monitoring LEAA-funded programs to insure that they comply with civil 182 rights laws and regulations. It performs four basic functions: —conducts compliance reviews of state and local agencies receiving LEAA funds; —processes complaints of alleged discrimination; —monitors LEAA-financed construction and renovation projects; and —supports programs to improve minority employment practices in criminal justice. In 1973 the Office published Equal Employment Opportunity guidelines requiring agencies with 50 or more employees to institute affirmative action programs assuring equal employment opportunity to minorities and women. It also issued guidelines forbidding the use of minimum height requirements in law enforcement agencies receiving funds which disproportionately disqualify women and persons of certain national origins, unless the height requirements are shown to be an operational necessity. Full-scale compliance reviews were undertaken in 12 law enforcement agencies and one correctional institution. During the past year, the Office docketed 64 complaints alleging discrimination from individuals and organizations. Forty-four percent of the complaints were resolved; 45 percent are under investigation; and 11 percent are pending investigation. The Office also supported two projects to improve minority recruitment and advancement. The Center for Criminal Justice Agency Organization and Minority Employment Opportunities at Marquette University in Milwaukee helped 18 state and local law enforcement agencies improve minority hiring and personnel practices. The Center also conducted two seminars: one on “The Native American and Law Enforcement Opportunities” and the second on “The Minority Community and the Police Profession.” A project conducted by the National Urban League was completed last year. The League studied minority recruitment, promotion and retention and operated recruitment efforts in Dallas, Cleveland, and Newark. More than 6,000 minority persons were interviewed for law enforcement positions and 219 were hired. Many other applicants successfully met selection criteria and await the opening of additional positions. The project trained and counseled applicants prior to civil service tests for police, corrections, and parole agencies. Under a new grant, the Urban League will conduct recruitment programs in Sacramento, Little Rock, and Springfield. LEAA also awarded a contract to the International Association of Official Human Rights Agencies which will aid state and local criminal justice planning units in meeting civil rights responsibilities. Office of Public Information and Congressional Liaison The Office responds to inquiries from the general public, the press, and Congress and provides information on policies and grants. The Office provided Members of Congress with information on more than 2,400 separate grant awards during 1973. The Public Information Office also published the LEAA Newsletter which is issued ten times a year and reports on projects throughout the country and policies and programs of interest to criminal justice professionals. National Institute of Law Enforcement and Criminal Justice The National Institute is LEAA’s research and development office. In 1973 the Institute’s budget was $31 million. The Institute used the funds to support projects in the following five categories: —community crime prevention—increasing citizen action and target-hardening to reduce opportunities for crime; —detection, identification, and apprehension—improving capabilities of law enforcement agencies; —adjudication—improving court capabilities; —correctional intervention—research into criminal behavior and intervention in criminal careers; and —equipment systems improvement—testing and evaluating new and existing equipment to develop standards and guidelines encouraging appropriate use by criminal justice agencies. Over the past four years, the Institute has awarded several million dollars for projects on crime prevention through environmental planning and design and to identify techniques to reduce burglary and stranger-to-stranger streets crimes. The most widely disseminated research in this area was an LEAA report entitled “Architectural Design for Crime Prevention.” The study demonstrated how, in large public housing projects, four elements of defensible space can help to reduce crimes: —designing zones of territorial influence; —providing opportunities for natural surveillance; —removing the stigma of institution-like appearance; and —recognizing that adjacent activities affect residential security. An application of these principles in private residential settings is now being given consideration by the Institute. 183 In a current demonstration study, a model employing environmental design principles is being developed and implemented in two Hartford, Connecticut, neighborhoods. Strategies for mobilizing community support for crime reduction efforts also are being tested. One of the Institute’s major goals is evaluation of police patrol operations and recommendations for improvement. With Institute funds, the Washington, D.C. Police Department tested a computer simulation model of patrol which can predict the probable results of policy changes, thus permitting prior evaluation of such actions as modification of patrol beat structures or alterations in dispatching rules. In addition, a computerized system in St. Louis enables the police department to deploy police personnel according to demands for service, thus preventing work overloads in certain units. The Institute is financing several projects to reduce delays in legal cases and to eliminate huge case backlogs which hamper most metropolitan court systems. Recommendations for streamlining the pretrial process, developed under an earlier grant, will be tested in demonstration projects in criminal courts in two cities. The alternatives to adjudication project is examining the value of a number of pretrial diversion efforts aimed at special groups of offenders such as first offenders, alcoholics, and narcotics users as well as the use of special quasi-judicial commissions, administrative tribunals, and special courts for certain types of offenders. Also being studied are ways to cut the time required for preparation of court transcripts. Techniques being explored and tested are audio and video tape recordings and computer-aided transcription. Since the use of video tapes in courts presents many legal problems, the Institute provided courts with the equipment and expertise to experiment with video tape for depositions, presentation of evidence, and trial records. The goal is to obtain as many appellate decisions as possible based on legally acceptable use of video tape. The Institute has awarded more than $5 million to study correctional intervention and classification. In 1973 the Institute selected an LEAA-funded intervention effort as its first exemplary project. Communitybased corrections in Des Moines has helped to reduce the jail population by more than half, making new jail construction unnecessary. Some 3,300 defendant jail-days in one calendar year were saved. Under the exemplary projects program, complete documentation of operating procedures will be distributed to communities wishing to launch similar efforts. The National Assessment of Juvenile Corrections— a five-year study by the University of Michigan—is expected to have a significant impact on programs for youthful offenders. In addition, under an Institute 184 grant, the Harvard Center for Criminal Justice is evaluating the Massachusetts program which closed all large correctional facilities for youths in favor of small, community-based settings. Several Institute studies focused on drug abuse offenders. A five-year study—Evaluation of the Effects of Methadone Treatment on Crime and Criminal Addicts—is providing information on the type of addict offender for whom methadone maintenance can be effective. The Vera Institute of Justice is conducting the study in the Bedford-Stuyvesant area of New York City to measure the effects of methadone treatment on reducing criminal activity by addicts. Two of their recent studies analyzed changes in criminal behavior of addicts in the program for one-and two-year periods. The studies revealed an overall decline in the crime rate during the initial treatment year which continued for patients remaining during the second year. However, major differences in criminal behavior were observed among different age groups. Patients over 30 showed substantial reduction in property crimes but retained the level of illegal drug behavior after entering the program as before. Younger patients decreased illegal drug use but slightly increased their rate of property crimes. The Institute’s Equipment Systems Improvement Program was begun in June 1972 and expended $5 million in its first year. The program tests and evaluates existing and new equipment and develops standards and guidelines to assist in identifying problems which improved equipment can help solve. Technical work is performed by three groups operating under Institute contracts. The Analysis Group directed by the Mitre Corporation is studying equipment problems in a number of criminal justice agencies: The Philadelphia Court System, the Illinois Department of Corrections, the Michigan State Police, and police departments in Los Angeles, Indianapolis, Columbus, Georgia, Miami, and the Dade County (Florida) Sheriff’s Office. The Development Group develops prototype equipment systems for evaluation. Directed by the Aerospace Corporation, the Development Group worked on two key projects in 1973: A reliable low-cost burglar alarm for residential and small business use and protective garments utilizing a new synthetic fiber which demonstrates a capability to prevent penetration of bullets up to .38 caliber. The Standards Group is directed by the Law Enforcement Standards Laboratory established in the National Bureau of Standards. The Laboratory develops voluntary performance standards and tests procedures in the following areas: Communications equipment, security devices, protective equipment, investigative aids, vehicles, weapons, clothing, and emergency and institutional equipment. By the end of the year, 84 standards, guidelines, research papers, and special reports were in preparation. In the evaluation area the Institute’s major effort related to the High Impact Anti-crime Program in eight major cities. The Impact Program is designed to reduce stranger-to-stranger crime and burglary. In each city, Institute funds supported creation of a crime analysis team to direct planning, program management, and project evaluation. The Institute will provide technical assistance to the teams throughout the life of the program. A national level evaluation is also being conducted by the Mitre Corporation under contract to the Institute. The Institute developed and published “National Level Evaluation: Concept and General Plan” to guide the evaluation. The Institute also fosters adoption and use of new approaches to crime reduction by criminal justice agencies through the technology transfer program. Detailed information on successful projects is disseminated under the exemplary projects program and “how-to-do-it” manuals are issued on a number of law enforcement topics under the prescriptive packages program. The law enforcement science adviser program is a two-year experiment which will place federally supported science advisers in state criminal justice planning agencies across the country. The program is voluntary, and more states have indicated interest than can be accommodated in the pilot phase. The Criminal Justice Reference Service provides a wide range of information and distribution services to criminal justice personnel. By the end of the year, user population had increased from 7,000 to 11,000. National Criminal Justice Information and Statistics Service (NCJISS) The Service develops national data on crime and criminal justice operations and encourages uniform development of statistics at the state level. STATISTICS DIVISION During 1973, a total of $13.7 million was obligated for a wide variety of statistical programs, ranging from developmental projects to utilization of data. The most significant developmental program is the National Crime Panel, a nationwide survey of citizens and businesses designed to measure criminal victimizations and attitudes concerning crime. After three years in the testing stage, data collection was firmly established during the year and first results are expected to be published in the coming year. The data will include location and time of occurrence, social and demographic characteristics of victims, victim-offender relationships, use of weapons, injuries suffered, multiple victimizations, and costs. The survey is carried out for LEAA by the Bureau of the Census through monthly interviews of a representative sample of households and business establishments. Surveys also were conducted in the eight high impact cities. The National Prisoner Statistics Program, inaugurated during 1973, provides statistical profiles on inmates of state institutions and the facilities in which they are confined. When fully operational, the program will publish periodic reports on the numbers of adults moving in and out of state systems and annual reports providing greater detail on admissions and releases, sentence length, time served, and demographic characteristics. The program rounds out the National Correctional Statistics Series begun previously by the Statistics Division. National data have been gathered on adults in local jails as well as characteristics of both adult jails and juvenile institutions. Statistical data for individual county and city jails were compiled in a report entitled, “Local Jails.” The Division’s third major program inaugurated during 1973 was a National Survey of Criminal Justice Employees. Designed to provide information on characteristics, training, and experience of criminal justice employees at various levels, it will form a sound base for manpower planning and development. The Division also published the third annual report on “Expenditure and Employment Data for the Criminal Justice System, 1970-71,” which revealed the Nation spent $10.5 billion for criminal justice activities in 1971, an increase of nearly $2 billion over 1970. Expanded coverage of the survey permitted publication of data separately for aggregate county and municipal governments within each state as well as for 312 large counties and 384 large cities. To fulfill provisions of the 1970 amendments to the Omnibus Crime Control and Safe Streets Act, the third report also included reliable estimates for each state of the percentage of law enforcement expenditures by local governments. In 1973 the Division published the “National Survey of Court Organization,” its first report on court data. Bureau of Census information obtained from 15,000 court systems revealed 17,057 courts in operation as of January 1, 1972. Of these, 206 were appellate courts, 3,630 were courts of general jurisdiction, and 13,221 were courts of limited or special jurisdiction. Some 22 percent of all courts exercised only criminal jurisdiction, 10 percent exercised only civil jurisdiction, and the remainder exercised a mixture of civil, criminal, and/or juvenile jurisdiction. Of courts with original jurisdiction, 86 percent exercised some criminal jurisdiction. Of these courts, 26 percent heard felonies while the remainder heard lesser offenses and traffic violations. The report also contained data on judges and court 185 personnel, court practices, and the types of statistics maintained. SYSTEMS DEVELOPMENT DIVISION A total of $4.8 million was obligated for developmental projects and implementation of proven information systems. The Division also provided a clearinghouse for data about existing information systems to reduce duplication in development of new systems. In its fourth year, Project SEARCH continued to conduct research and development designed to apply current technology to the criminal justice system. The main policy-making body of Project SEARCH is made up of law enforcement, court, corrections, and criminal justice planning officials from agencies of the 50 states which direct the overall effort. Project SEARCH had a number of projects in various stages of development during the year, representing approximately $2 million in LEAA funds. Examples include: —requirements analysis for state level identification bureaus designed to develop standardized modules of functions associated with state-level identification bureaus including the capability for automated fingerprint comparisons and name searches; —Interstate Organized Crime Index System to make available to law enforcement intelligence units throughout the country information requirements of all users of crime reports and to satisfy those information requirements by defining required data elements, reporting forms, and controls; and —Prototype Offender-based Transaction Statistics System to develop an operating prototype in five participating states for a system of tracking criminal offenders through the criminal justice system. Results have been incorporated into guidelines for the offender based transaction statistics/computer-ized criminal history system, a major part of the LEAA comprehensive data systems program. Comprehensive data systems are needed in each state to provide a sound basis for planning, evaluation, and facilitation of information exchange between states and various elements of the criminal justice system. To qualify for grants, states must submit a plan including these specific high-priority components: — an independent statistical analysis center; — offender-based transaction statistics and criminal histories; — uniform crime reports collected on a mandatory basis from all sources within the State and furnished to the FBI for publication; — management and administrative statistics; and —technical assistance to criminal justice agencies at all levels in the area of information systems and statistics. During the year, 19 states submitted plans and 13 were approved. LEAA launched an accelerated improvement program in the area of law enforcement telecommunications. The first phase consists of expanding the National Law Enforcement Teletype System which is operated by a nonprofit consortium of 52 users, including the 48 continental states, the FBI, the District of Columbia, New York City, and the National Auto Theft Bureau in Chicago. In 1973 a $1.2 million grant was awarded for a three-year upgrading of the system. The second phase of the project will determine the magnitude, scope, and form of current and projected user information exchange requirements so that a more sophisticated follow-up system can be installed. This phase was launched in 1973 with a $500,000 grant to the Jet Propulsion Laboratory of the California Institute of Technology. Project SEARCH is assisting in determining user requirements. Office of Criminal Justice Assistance This Office coordinated the award of nearly 87 percent of all funds and provided technical assistance to state and local criminal justice agencies. The major portion of the budget is allocated for grants to state and local governments. In 1973 such grants accounted for nearly $729 million, in the following categories: Planning .................................... $48, 535, 000 Block action.............................. 480, 180, 000 Discretionary ............................ 86, 887, 000 Correctional improvement (part E).............. 103, 264, 000 Technical assistance........................ 10, 000. 000 Total ................................. $728. 866, 000 Planning grants are awarded annually to each state planning agency in 55 jurisdictions—the 50 states, American Samoa, Washington, D.C., Guam, Puerto Rico, and the Virgin Islands—to support the development of comprehensive law enforcement improvement plans. The $48 million allocated for planning represents an increase of approximately $13 million over 1972 and reflects the increased importance placed upon long-range planning. The bulk of LEAA funds are awarded as block action grants, allocated to each state according to its population. The states then redistribute funds to their cities and counties. The $480 million awarded in block action grants was an increase of more than $67 million over 1972. It was approximately 20 times larger than the $24.17 million awarded during LEAA’s first year of operation in 1969. States use their block action funds to finance a broad range of programs covering virtually all aspects of the 186 crime problem. Examples of major programing emphasis in 1973 were: —specialized police patrols, use of civilians to assume non-crime-related functions, community relations units, communications systems, improved police response time, consolidation and regionalization of police services, crime laboratories, and a wide range of training programs; — efforts to reduce caseloads through screening and diversion, criminal code revision, training for prosecutors, creation of public defender offices, judicial training, and modernization of court equipment and management; — community-based treatment centers, expanded probation, work-study-release, post-release counseling services, special handling of offenders who are alcoholics or drug users, modernization of local jails, education and job training for inmates, and training for inmates, corrections managers and line officers; — youth service bureaus, community-based rehabilitation programs, group and foster homes, specialized training for police officers and other criminal justice personnel who work with juveniles; —multi-modality drug treatment programs (detoxification, methadone maintenance, etc.), drug education programs in public schools, screening programs to determine if offenders entering the criminal justice system are drug abusers and regional drug enforcement units; and —specialized training for law enforcement officers to help them recognize and combat organized crime activity, intelligence units, strike force efforts, consumer protection and commercial fraud prosecution units, and public education programs. A portion of the total action grant budget, $87 million in 1973, was reserved for direct or discretionary grants in support of worthwhile projects which were not emphasized in state plans. Eligible for these funds were programs which appeared innovative, provided reform or were multi-state or national in scope. Specific projects funded by discretionary grants included a $300,000 grant to continue the National Crime Prevention Institute at the University of Louisville, Kentucky. With the additional funds, the Institute’s training courses have been expanded to offer courses to some 750 state and local police officers annually. The Institute trains municipal officers to set up crime prevention bureaus in their departments. During the past year, the Institute added a new course for representatives of organizations with established crime prevention programs. Another discretionary grant for $1.3 million went to the National Center for State Courts to support these efforts: speeding state appellate processes, assisting states to provide defense counsel for indigents charged with misdemeanors, developing a program to demonstrate the feasibility of video taping court proceedings, and developing a new method of training court reporters in audio recording techniques. A $275,000 discretionary grant was made to continue the Legal Services to Indigent Prisoners Project underway in Minnesota, Kansas, and Georgia, which uses law students to interview prisoners and review complaints and requests for appeals. During the past year, the project handled 1,194 civil matters and 2,643 criminal matters in three states. A $700,000 grant was awarded to continue the National Project Using Minibikes (NYPUM) to provide recreational activities through the use of donated minibikes to involve troubled youngsters in a program of remedial education and counseling. Three-fourths of the youths served by the project are referred by the juvenile courts, probation departments, police agencies, schools, and social welfare agencies. As of June 30, 1973, there were 221 local NYPUM projects serving almost 7,500 young people. Of that total, some 5,700 youths were referred by the above-mentioned agencies. The project reports a recividism rate of four percent among the referred juveniles. A $5 million discretionary grant was made to the special narcotics courts in New York City. The courts began operating in February 1972 and are making significant inroads in the city’s backlog of narcotics felony cases. And finally, a $275,000 grant was made to the Florida Strategic Investigations Bureau which will focus on major financial manipulations, stock market irregularities, illegal insurance, real estate and corporate transactions, infiltration of corporations by organized crime, and extortion. In 1970 amendments to the Safe Streets Act, Congress placed special emphasis on improving corrections. It authorized a new Part E which provided funds solely for the purpose of upgrading correctional programs and facilities. Congress stipulated that these funds were to supplement—not supplant—grants for corrections from the part C block funds. Part E funds totaled $103,264,000 in 1973. Half the funds are allocated in block grants and the remainder awarded by LEAA at its discretion. State and local governments are encouraged to give priority to community-based programs such as probation, halfway houses, diagnostic services, and other release programs—especially those dealing with youthful offenders. Advanced practices and innovative programs are encouraged. Progressive design techniques are likewise to be utilized in construction programs and construction of regional and /or multi-state facilities is encouraged. Provisions for treatment of drug and alcohol abusers 187 and the separation of adults and juveniles, and males and females, is strongly recommended. LEAA provides technical assistance in every criminal justice component to state and local governments upon request. The number of requests for assistance from police agencies was five times larger in 1973 than in the previous year. Assistance was provided in 48 of the 55 states and territories at no cost to state and local police agencies. Typical requests dealt with operations, organizational structure, manpower, information systems, facilities and equipment, and general management. Specialized assistance also was provided in organized crime, port security, and air safety. Training was provided through the National Sheriffs’ Institute at the School of Public Administration, University of Southern California, in which a series of intensified two-week training programs for newly elected sheriffs was offered. The Hazardous Devices Course, directed by the U.S. Army Missile and Munitions Center at Redstone Arsenal, at Huntsville, Alabama, was designed to improve the ability of state and local public safety agencies to respond to the problems of terrorists and criminal bombings. Some 400 public safety officers completed the three-week course, bringing the total number of bomb disposal specialists trained there to more than 1,100. The Police Legal Officer Training Program, instituted by the International Association of Chiefs of Police, recruits and trains legal officers for police departments. Courts and related agencies have been aided through creation of national-level technical assistance capabilities. The assistance was provided through centers funded by LEAA, staffed by experts in state courts and related agencies and operating under direction of boards representative of courts and prosecution. The courts section of the Technical Assistance Division processed more than $9 million in grants to national organizations during 1973. The most prominent of these is the National Center of State Courts. The new National Center for Prosecution Management has provided guidance in strengthening the prosecution function throughout the country. Assistance also was provided to organizations such as the National District Attorneys Association, American Bar Association, National Association of Attorneys General, and National Legal Aid and Defender Association. National training or research organizations which received LEAA funds included the National College of District Attorneys, National College of Criminal Defense Lawyers and Public Defenders, National Institute of Trial Advocacy, Institute for Judicial Administration, National College of the State Judiciary, National Council of Juvenile Court Judges, American Academy of Judicial Education, American Judicature Society, and Institute for Court Management. There were 245 requests for technical assistance in the corrections area during the year and a considerably larger volume of assistance was provided through three technical assistance contracts and staff support. Most frequent areas of assistance in adult corrections dealt with county and city jails, assistance to state departments, probation and parole, alternatives to incarceration and training. Areas of primary interest in juvenile corrections included detention facilities, administration of state juvenile delinquency programs, probation and parole and alternatives to incarceration. The LEAA-funded National Clearinghouse for Criminal Justice Planning and Architecture provided technical assistance to state and local criminal justice agencies. In the corrections field, the Clearinghouse helps correction officials devise progressive treatment programs and design modern facilities conducive to rehabilitation. The Clearinghouse also reviews many projects seeking Part E funding from LEAA and makes recommendations to the respective SPA’s and the LEAA regional offices. The Clearinghouse reviewed more than 300 individual projects during the past year. Office of Educational and Manpower Assistance The Office of Educational and Manpower Assistance (OEMA) was established during the year to administer LEAA’s educational, manpower development, and Indian programs. In 1973 approximately 100,000 persons received some form of criminal justice education, training, or assistance under one of the seven OEMA programs. The budget for the programs totaled almost $44 million. The largest effort supervised by the Office was the Law Enforcement Education Program (LEEP). In four and one-half years LEEP has grown from 20,602 students in 485 colleges and universities to more than 95,000 students in 993 schools. The annual appropriation has increased from $6.5 million in 1969 to $40 million in 1973. LEEP grants to men and women employed in criminal justice agencies enable them to enroll in college courses which will enhance their criminal justice capabilities. Grants cover the cost of tuition, fees, and books—up to $200 per quarter or $300 per semester. LEEP also provides loans to a limited number of preservice students preparing for future criminal justice employment and to criminal justice practitioners— in-service students—who attend school full time. Loans pay for direct education costs up to $1,800 per academic year. 188 The internship program was designed to develop interest in criminal justice careers by giving college students the opportunity to work in criminal justice agencies while on summer recess or academic leave of absence. The program has grown steadily since its inception in 1971 when 262 interns from 52 schools received $119,000. In 1973 some 1,101 interns from 136 colleges received $461,000. The graduate research fellowship program provides grants to academic institutions in support of graduate students who have completed all requirements for the doctoral degree except the dissertation. Educational development grants are designed to promote development and improvement of criminal justice doctoral studies programs. The grants encourage the building of a consortium of institutions of higher education working with each other and LEAA. Of the $2,250,000 allocated for these functions in 1973, $643,775 was transferred to the ten LEAA regional offices to fund regional programs ranging from highly specialized correctional personnel training to advanced seminars in program planning and evaluation for state planning agency personnel. More than 5,000 criminal justice personnel received training. The remaining $1.6 million financed national scope programs such as the Federal Aeronautics Administration’s airport security training program, the National College of Criminal Defense and Public Defenders, and the National Conference for Judicial Educators. A grant of $250,000 was allocated to finance eight specialized seminars conducted by the National Association of Attorneys General which trained 160 prosecutors in combating official corruption, developing tax cases and using antitrust laws against organized crime. In the past three years LEAA has awarded more than $6 million in discretionary funds to Indian tribes. Another $2 million has been awarded to Indians under state block grant programs. The grants were awarded according to priorities established by elected tribal leadership in keeping with the President’s policy of Indian self-determination. In 1973 the Indian desk processed grants to Indian local government units totaling $2.5 million in Part C discretionary funds and $900,000 in Part E corrections funds. Office of Operations Support The Office provides support to LEAA in the areas of property and facilities, audiovisual services, procurement, administrative services, personnel and program and management evaluation. Regional Offices LEAA operates offices in each of the ten Federal regions. Through regionalization, LEAA has placed decision-making authority and assistance as close as possible to the grassroots level. LEAA regional administrators review and approve the award of most LEAA grants. A specialist assigned to each state in the relevant LEAA regional office provides a single point of contact for state and local criminal justice planners. The regional offices work closely with the states in developing the annual comprehensive law enforcement improvement plans required under the Safe Streets Act. Allocation of Part C Funds by Program Categories and by State [Amounts in dollars] State Funds available Legislation Planning and evaluation Research and information systems Prevention Detection, deterrence, apprehension Diversion Adjudication Institutional rehabilitation Non-institutional rehabilitation Alabama 8,026,000. 695,802 674,503 2,631,776 1,022,489 1,760,430 557,255 683,745 Alaska 1,150,000. 84,000 200,000 286,000 255,000 35,000 120,000 42,000 128,000 Arizona . 4,127,000. 199,825 447,135 175,940 1,719,530 370,795 510,265 214,090 489,420 Arkansas 4,482,000 . 50,000 299, 600 162,000 1,728,400 . 670,000 665,000 907,000 California .. 46,495,000 . 2,067,945 1,987,863 6,965, 806 22,624, 380 3,115, 572 2, 947, 847 3,338, 250 3,447,337 Colorado. 5,143,000 30,000 75,000 1,860,750 1,024,250 513,000 65,000 240,000 375,000 960,000 Connecticut... 7,064,000 . 801,000 846,800 1,111,000 1,216, 200 915, 000 467, 500 474, 000 1,232,500 Delaware... 1,405,000 . 108,000 . 259, 250 251,000 188,000 235, 000 23, 750 340,000 District of Columbia 2,000,000 . 104,835 . 284, 958 289,615 620,833 398, 849 300,910 Florida... .. 15,821,000 . 1,406,171 1,406,172 1,225,419 5,742, 266 1,743,150 588, 672 1,178,750 2,530,400 Georgia ... 10,695,000 . 2,121,500 3,274,973 2,202,489 853,775 1,458,113 404,150 380,000 Hawaii 2,000,000 . 100,000 91,500 342,750 688,750 201,000 241,500 145,000 189, 500 Idaho 1,826,000 . 6,000 776,600 60,000 232,138 553,881 197,381 Illinois ... 25,898,000 100,000 40,000 4, 726,000 2,342,000 8,162,000 2,129,000 3,347,000 2,146,000 2,906,000 Indiana.. ... 12,102,000 60,000 190,124 831,150 2,617,710 4,984,350 . 943,301 1, 541,519 933,846 Iowa 6,581,000 . 263,240 379, 860 3, 027, 260 . 1,002,150 332,000 1, 576, 490 Kansas 5,235,000 . 30,000 30,000 263,069 1,505,843 263,070 1,416,618 1,500,100 226,300 Kentucky 7,500,000 76,000 200,000 253,555 648, 500 3,618,695 648, 500 868, 500 56, 250 1,130,000 Louisiana. 8,485,000 14,000 305, 589 827,054 2,925,541 217,225 1,926,841 2,032,910 235, 840 Maine 2,312,000 96,830 52,550 1,196,597 206,011 343,411 203,901 212,700 Maryland 9,140,000 111,000 575,000 857, 500 3,118, 500 376,000 1,336,000 394, 000 2,372,000 Massachusetts ... 13,257,000 912,140 891,700 1,775,865 3,351,300 1,782,403 2, 532, 032 963, 300 1, 048, 260 Michigan ... 20,681,000 ' 716,200 1,249,700 3,377,500 8,935,200 1,874, 500 1,752,600 1,342,900 1,432,400 Minnesota 8,866,000 835,000 1,436,000 3,177,000 695,000 503,000 685,000 1,535,000 Mississippi 5,166; 000 66,027 50,000 63,103 276,000 2,663,061 340,570 420,131 497,784 789, 324 Missouri ... 10,897,000 2,082,194 1,599, 338 2, 652, 462 1,389,959 1,649,652 870,163 653,232 Montana 1,780,000 8,000 65,000 45,000 27,000 1,140,500 10,000 172,500 192,000 120,000 Nebraska 3,457,000 35,000 20,000 355,000 1,578,000 73,000 535,000 624,000 237,000 Nevada 1,253,000 477, 380 5,000 229, 563 . 184, 307 204,750 152,000 New Hampshire 2,000,000 50,000 50,000 334, 500 845,000 45,000 280,000 219,500 176,000 189 Allocation of Part C Funds by Program Categories and by State—Continued [Amounts in dollars] State Funds available Legislation Planning and evaluation Research and information systems Prevention Detection, deterrence, apprehension Diversion Adjudication Institutional rehabilitation Non-institutional rehabilitation New Jersey 16,703,000 40,500 50,000 760,000 3,815,000 3, 899, 500 1,740,000 4,125,000 950,000 1,323,000 New Mexico 2,367,000 54,950 129, 272 135,977 240,481 1,145,763 26,206 120,777 431,847 81) 727 New York 42,496,000 . 13,000,000 4, 400,000 12,396,000 1,800,000 5,800,000 5,100,000 North Carolina 11,842,000 61,269 173,087 883, 529 930,714 4, 538, 571 854,739 1,882,453 2,052,398 465) 240 North Dakota 1,583,000 . 40,000 191,500 410,000 52,500 377,000 290,000 222,000 Ohio. 24,821,000 . 2,318,618 2, 468, 972 3,017,418 6, 221,179 314,974 2,428,154 5,128,071 2,923,614 Oklahoma 5,964,000 17,717 100,000 663,000 814, 272 1,515,717 707,000 773,294 425,000 948,000 Oregon 4,873,000 91,067 266, 663 982,716 575,500 1,446,077 243,262 349,984 50,610 867,121 Pennsylvania 27,482,000 719, 691 287, 250 262, 024 2,512,338 8,619,522 3,187,607 1,641,243 3,408,124 6, 843', 701 Rhode Island 2,206,000 . 34,000 45,000 220,125 1,476,875 200,000 103,000 127,000 South Carolina 6,036,000 194,531 452,583 452,583 1,167,495 1,720,254 976,085 194,531- 438, 969 438', 969 South Dakota 1,707,000 . 60,000 188, 882 771,918 19,000 295, 200 372,000 Tennessee 9,143,000 80,000 . 1,340,500 270,000 4,061,250 465,000 868, 250 1,778,000 280,000 Texas 26,091,000 132,000 149,000 3,594,000 1,332,000 10,331,000 800,000 5,498,000 75'5,000 3, 500,000 Utah 2,468,000 63,000 . 359, 860 257,744 472,921 438, 564 432,035 307,369 136, 507 Vermont 1,150,000 16,500 . 173,989 87,750 327, 695 261,816 181,000 41,250 60,000 Virginia 10,832,000 . 1,060,000 516,500 5,006,668 363, 500 1,196,666 2,638,666 50,000 Washington 7,944,000 . 242,000 2,469,500 476,000 1,641,500 594,000 553,000 . 1,968,000 West Virginia 4,064,000 . 5,000 185,000 1,382,000 1,030,000 580,000 521,000 361,000 Wisconsin 10,294,000 . 290,000 . 400,000 2,749,000 630,000 2,325,000 800,000 3,100,000 Wyoming 1,150,000 38,000 28,000 38,000 103,000 481,000 68,000 182,000 142,000 70,000 American Samoa 150,000 15,000 . 750 27,825 66,275 9,000 27) 900 3,' 250 Guam 360,000 24,000 . 17,000 58,119 99, 064 16,000 34, 419 111,398 . Puerto Rico. 6,320,000 127,200 191,500 567,700 1,752,600 2,566,100 170,500 465,000 414,900 64,500 Virgin Islands 360,000 . 17,500 180,000 17, 500 20,000 62,500 62; 500 Totals 483,250,000 2,064,452 11,973, 378 39,417, 498 66,037,600 158,923, 070 43,831,887 55,778,347 49, 066,054 56,157,714 Note.—Small State supplements from discretionary grant funds, totaling $3,000,000 are included in these figures. DISTRIBUTION OF BLOCK ACTION FUNDS BY PROGRAM (In millions) $483,250,000* ‘Includes $3 small states to of $15 million. million in LEAA discretionary funds awarded to ensure a minimum block action grant allocation 190 COMPARATIVE SUMMARY OF DISTRIBUTION OF FUNDS (In thousands) $855,597 $698,723 $528,954 ACTION GRANTS OTHER* 1973 1972 1971 MANPOWER DEVELOPMENT AID FOR CORRECTIONAL INSTITUTIONS AND PROGRAMS DISCRETIONARY GRANTS COMPREHENSIVE PLANS •Includes Administration, Technical Assistance, Data Systems Enforcement with Criminal Justice. and Statistical Assistance and National Institute of Law 191 Bureau of Prisons The Federal Bureau of Prisons was established by Act of Congress and signed by President Hoover May 14, 1930. It was constituted expressly to develop the seven existing autonomous Federal prisons into an integrated system, providing a program of custody and treatment based on the individual needs of the offender. Today, the Federal Prison System has expanded to 44 correctional facilities, ranging from penitentiaries to community treatment centers. As an integral part of the Federal criminal justice system, its primary mission is to safeguard Federal offenders committed to the custody of the Attorney General and to carry out the judgments of the Federal courts. To achieve the Bureau’s threefold concerns—care, custody, and correction—the following major goals have been established: 1. To provide a level of supervision that is consistent with human dignity and which offers maximum protection to the community, staff, and inmates; 2. To significantly increase the number of Federal offenders achieving a successful adjustment upon their return to the community; 3. To provide a wide variety of program alternatives for offenders, including those that do not require institutional confinement; 4. To provide institutional environments that minimize the corrosive effects of confinement; and, 5. To increase the knowledge of correctional technology through systematic evaluation, and research. Overcrowding, with its attendant pressures, is one of the most serious problems faced by the Bureau today. The Federal prison population, which represents approximately one-ninth of the Nation’s confined offenders, was 23,336 on June 30, 1973, a 5.6-percent increase over 1972 and a 19-percent increase over 1967. A continuing upward trend in court commitments and sentence lengths accounts for most of the increase in population. During the past year, there were 3,783 more admissions to Federal institutions than discharges. The average sentence length of the confined population has been going up steadily, from 74.0 months in 1967 to 88.1 months in 1973. The length of the average sentence imposed, 39.0 months in 1967, rose to 51.2 months in 1973. Federal institutions will gain some measure of relief from population pressures in the next few months when the Bureau acquires a state correctional facility in Oxford, Wis. Negotiations also are underway for the transfer of the Clinical Research Center in Lexington, Ky., scheduled to be closed by the National Institute of Mental Health. To relieve overcrowding in its south-central facilities, the Bureau leased space from the Immigration and Naturalization Service at El Paso, Tex., to house short-term aliens awaiting deportation. A number of new Bureau facilities are now under construction. Several are scheduled to open in the coming year and will provide further relief from population pressures. During 1973, the Bureau developed increased correctional resources and more effective methods of management—in both treatment and administration— involving institutional, regional, headquarters, and servicewide operations. Decentralization, aimed at giving more management responsibility to the field, has been one of the Bureau’s primary efforts. The major achievement in this area was the initiation of a pilot regionalization project involving seven Bureau institutions in the South Central United States. Decentralization has taken varied forms in other 192 LOCATION OF FACILITIES McNEIL ISLAND SANDSTONE OXFORD DANBURY MILAN LEWISBURG CHICAGO MORGANTOWN ENGLEWOOD PLEASANTON MAR ON PETERSBURG LEX NGTON LOMPOC TERMINAL IS. EL RENO Existing Institution ATLANTA FLORENCE Planned Institutions FT. WORTH SAFFORD MONTGOMERY LA TUNA Youth Center SEAGOVILLE * Metropolitan Correctional Center * To Be Acquired From Other Agencies ■A. Center for Correctional Research NEW YORK NEW YORK SAN • DIEGO SAN FRANCISCO TERRE HAUTE ASHLAND ALDERSON Bureau activities, including conversion from a regional to an institution-administered financial management system and a change from central office to regional administration of institution religious programs. Within the institutions, the shift of case management and correctional program responsibility to individual functional unit teams further reflects the Bureau’s trend toward decentralization. The work of the Bureau is carried out by six operating Divisions: a legal counsel staff, Public Information Office, and special assistants in the Office of the Director provide support services. Community Services Division The Community Services Division develops policies and directs regional administrators in the operation of community-based programs for offenders. The regional responsibilities include residential treatment facilities and services, monitoring the performance of local detention and community care contract facilities and serving as liaison with local community agencies and other resources. The Division, primarily at the regional level, also provides technical assistance to state and local correctional facilities in conjunction with LEAA. LEAVENWORTH J? SPRINGFIELD TEXARKANA ,— EGLIN TALLAHASSEE DIRECT SERVICES Responsibility for the Division’s field operations is divided among six regions across the country under the direction of regional managers. The regional managers supervise a variety of community service activities, including 15 community treatment facilities in nine metropolitan areas. The facilities can accommodate over 400 residents in programs designed to ease their transition to community life. During the year, the centers served nearly 1,800 offenders. Of these, over 1,500 came from Federal institutions. Others were sent by the courts for study and evaluation or were referred by the court and the Board of Parole under the provisions of Public Law 91-492. The law, which authorized the Bureau to extend its residential facilities to Federal probationers and parolees, provides an alternative to confinement for these offenders. In addition to its community treatment centers, the Division maintains a field staff of 46 community programs officers in 37 metropolitan areas across the country. In 1973 these staff members found over 4,000 jobs for former offenders at an average salary of $2.92 an hour. 193 CONTRACT FACILITIES As of June 30, 1973, the Division had furnished residential and other prerelease services to another 1,700 Federal offenders who were being released to areas not served by a community treatment center. Their needs were met through the use of over 100 contract facilities, operated by public and private agencies in 40 states. This includes agreements with ten state correctional systems which have given the Bureau access to all prerelease facilities in their states. During the year a new contract review and improvement system was developed for implementation in 1974. This system will provide computerized composite profiles on all prerelease contract units, enabling an institution to match the offender’s needs with the resources available in the community. The system also will make it possible to determine what improvements are needed at a contract unit and what improvement was made during the year. A new population reporting system, also to be implemented in 1974, will follow the offender through the prerelease phase in the community and eventually will provide a method of postrelease follow-up. About 4,000 Federal offenders are housed daily in nearly 850 contract correctional facilities. Most of these individuals are serving short sentences or are being held pending trial or transfer to a Federal institution for service of sentence. Institutional Services Division The Division plans, directs, and evaluates a nationwide program of custody, care, treatment, and training for Federal offenders under the jurisdiction of the Bureau. Included is the responsiblity to develop policies and direct field administrators in all areas of inmate management. Along with overcrowded facilities, a second critical factor affecting Bureau planning and operations is the change in the type of offender committed to its institutions. Approximately one of every four inmates was convicted of a violent offense: robbery, sex offenses, kidnapping, assault, skyjacking, or homicide. The number of such offenders in the Federal Prison System has increased from 15 percent in 1967 to 22 percent in 1972 to 24.9 percent on June 30, 1973. Much of the Division’s efforts have been devoted to developing more effective corectional programs for this hard-to-reach group. CASE MANAGEMENT One of the major changes in the Division this past year has been the initiation of a program to decentralize inmate management by reorganizing the structure of institutions along functional unit lines. An outgrowth of the treatment team concept, functional units make it possible for staff to work in a close, intensive-treatment relationship with inmates. Basically, the units are small, flexible, semi-autonomous subgroups, operating within the confines of the larger facility. They are made up of from 50 to 100 inmates, housed together, generally for a specific treatment objective and occassionally assigned to work together. They are under the supervision of a small, permanently assigned, multidisciplinary staff team, working directly in the unit. Typically, the staff team might consist of a unit manager, a caseworker, an education specialist, a vocational training representative, a psychologist, and a correctional officer. The team has decision-making authority and is responsible for planning and managing correctional programs for all the inmates in the unit. All of the Bureau’s youth and young adult facilities are in various stages of converting to functional units and most of the adult institutions have at least one such unit in operation. The functional unit concept is not a panacea for all correctional problems. However, through better use of staff and program resources and improved inmatestaff relationships, it appears to be a potentially, more effective and humane approach to corrections. During the past year, the Division computerized its RAPS II classification system and taught new procedures required by the system to about 2,000 employees at all institutions. RAPS II, an acronym, is an updated version of a classification system based on Rating by staff, Age, Prior record, and Sentence length. The system is designed to help staff set correctional goals for an offender according to his individual needs and the availability of resources. The computer application makes it possible to follow the inmate’s progress and make necessary program adjustments. EDUCATION AND VOCATIONAL TRAINING Education and work skills are the two areas in which Federal offenders most frequently need help in order to become productive, law-abiding citizens. While their intelligence level is comparable to the average of the national population, their educational achievement lags several years behind. Between 15 and 20 percent are unable to read at the sixth grade level. A large majority of inmates, especially young offenders, have no work skills at the time they are admitted. The Division has established three basic objectives to help inmates improve their knowledge and skills: 1. every inmate leaving the Federal Prison System will be able to read at the sixth grade level; 2. every inmate capable of doing so will have earned a high school diploma or equivalency certificate by the time he is released; and 194 Students at Kennedy Youth Center, Morgantown, W. Va., learning to wire electrical circuits. 3. every inmate who does not have a work skill will have been given training that will qualify him for postrelease employment in a relevant, career-oriented occupation. To carry out these objectives the Bureau operates an education system consisting of 27 schools located in the major institutions across the country. The schools have a full-time staff of 446 and a daily student load averaging more than 8,300. The number of inmates completing academic programs rose by 19.9 percent last year compared to the previous year. About 2,900 inmates completed programs in social education, introduced last year to help offenders learn to relate to others and to function appropriately in life situations. The progress made by inmate-students may be related to innovative learning concepts and materials developed by the system. More educational facilities were built or redesigned as total learning centers this past year. Education staff have been using a variety of techniques—language laboratories, team teaching, programed instruction, video tape, remedial help for learning disabilities and speech therapy—to reach inmates who have not responded in the past to traditional classroom teaching methods. The past year also saw progress in the area of academic program development. Demonstration “Right to Read” (literacy) programs, funded by the U.S. Office of Education, were implemented at the Federal Reformatory, El Reno, Okla., and at the Federal Reformatory for Women, Alderson, W. Va. The programs have helped approximately 300 residents raise their reading level. Paid inmate tutors work with the students in the “Right to Read” program and in other educational programs at the institutions. Over 3,000 inmates were enrolled in college level courses this past year, including 550 attending courses on campus in the community. Offenders in a special college preparation program at four Bureau facilities can receive financial and other assistance with their college or vocational studies after they are released. VOCATIONAL TRAINING More than 8,200 Federal inmates were enrolled in vocational training programs covering 52 different 195 525-134 0 - 74 - 13 skills. The training programs were funded by Federal Prison Industries, Inc. (FPI), which operates 49 industries in 21 institutions. In line with its policy to train inmates in skills that are in current demand, FPI established three new industrial operations during the past year. They include a keytape industry at the Federal Correctional Institution, Terminal Island, Calif., serving U.S. Navy needs on the west coast and a new automated data processing industry at the Federal Correctional Institution, Fort Worth, Tex. Both of the industries employ men and women residents. A third new industry was established at the Federal Youth Center at Ashland, Ky., and consists of auto maintenance and repair. It is the first industry to offer this type of service in the Federal Prison System and has as its primary customer the General Services Administration Motor Pool in Richmond, Va. The new Ashland industry is the focal point for one of the institution’s functional units. All students employed in the industry are assigned to the same housing unit and live, work, and study together. This exemplifies a new program approach in which social rehabilitation, vocational training, and industrial experience are interrelated in a functional unit concept. A computer programming industry begun in 1972 at the U.S. Penitentiary, Leavenworth, Kans., will graduate its first class of trainees in August 1973. The following month, the industry will provide programming services to its primary customer, the Agricultural Stabilization and Conservation Service of the Department of Agriculture. Management and unions are cooperating with a number of Bureau institutions in developing apprenticeship programs that meet the standards of the U.S. Department of Labor’s Bureau of Appenticeship and Training. Federal inmates will be able to enter apprenticeship programs in a variety of recognized trades and will be assisted in job placement by union representatives. CORRECTIONAL SERVICES The role of the correctional officer in the Federal Prison System has changed substantially in recent years, reflecting an increasing emphasis on his responsibilities as a counselor and active participant in inmate management. To underline their revised status, Bureau correctional officers have been taken out of the traditional uniform and now wear jackets and slacks. The change also is expected to contribute to a more relaxed institutional climate that will improve inmate-staff rapport. The establishment and implementation of formal, structured counseling programs was a major treatment innovation in the Bureau. All institutions, except prison camps, now have the correctional counselors. They visit work areas in the daytime and living units and recrea tion areas during inmate off-duty time for the specific purpose of listening to inmates and helping them resolve problems. Preliminary reports of an intensive five-institution study of the effects of the correctional counseling program indicate that there was a significant drop in the number of disciplinary reports written and in the number of escapes and serious incidents at the facilities studied. The implications are that the program has had a stabilizing influence on the institutions’ populations. MENTAL HEALTH Two areas formerly under the Health Services Division—Mental Health and Drug Abuse treatment— were transferred to the Institutional Services Division during the past year for better integration of these treatment functions into overall inmate programs. Every Bureau institution now has a mental health program, an achievement due at least in part to a 27.2-percent increase in mental health position allocations (from 66 in 1972 to 84 in 1973). The staff increase has produced parallel increases in diagnostic and therapeutic services to inmates. For example, individual therapy sessions rose by 49 percent, group therapy sessions by 16 percent, and situational counseling sessions by 95 percent. Almost 39 percent more psychiatric evaluations were made on a routine basis and over 44 percent more were made at the request of the courts. The operating functions of the Mental Health Branch will be decentralized throughout the Federal Prison System beginning in 1974. While policy and guidance will still be supplied by a central office staff, institution programs will be supervised by a mental health coordinator assigned to each of five regions. One of the innovative treatment disciplines that is used fairly extensively in the Federal Prison System is the therapeutic community. This is a separate unit within the institution where a designated group of offenders live and participate together in specially designed counseling and therapy programs. This treatment approach is widely used in institution Narcotic Addict Rehabilitation Act (NARA) and drug abuse programs. It is also the format for a therapeutic community built around transactional analysis at the U.S. Penitentiary, Marion, Ill. Several inmate residents of the community have received advanced training in the therapy technique and last year two earned clinical membership in the International Transactional Analysis Association. They were later transferred to the U.S. Penitentiary, Terre Haute, Ind., to serve as paraprofessional transactional analysis instructors and trainers in the institution’s drug abuse treatment program. 196 INMATE PROFILE White .........—....-...—...... 66% Black _________—--------------- 32% Male ................ ---- 96% Female ________________________ 4% Age ................... —....... 30 I.Q.: Normal range Urban resident Education................... 8th Unmarried Prior arrests................... 8 Prior commitments --------------- 1 Length of sentence (months) __ 47.6 Needs: Medical—Dental Unskilled DRUG ABUSE TREATMENT About one in four Federal offenders admitted to Bureau institutions has a history of drug addiction or drug dependency. Bureau facilities first established intensive-treatment units for drug abusers committed under the NARA programs. The number of NARA units has now increased to five, and ten institutions established additional units to treat those not eligible under the NARA program. Incare capability rose from 1,050 in 1972 to 1,200 in 1973, and is expected to reach 1,400 during the next year. The most significant increases have been in the area of community care, which includes counseling, druguse surveillance, training, job placement, housing, and any other needs the drug-dependent releasee may have. At the end of FY 1972, local community care facilities under contract to the Division served 395 clients, almost all in the NARA program. With the passage of Public Law 92-293 in May 1972, however, all drugdependent Federal parolees and probationers became eligible for treatment in Bureau contract facilities. As a result, about 1,600 offenders had received community care by the end of 1973, including 500 NARA, 400 non-NARA, and 700 probationers. Most Federal institutions have alcoholics anonymous programs to aid the ten percent of offenders whose postrelease prognosis is guarded because of alcoholism. A special treatment unit was established for alcoholics at the Federal Correctional Institution, Fort Worth, Tex., and a similar unit will be established at the U.S. Penitentiary, Leavenworth, Kans., in 1974. RELIGIOUS PROGRAM The Division regionalized its Religious Branch in March 1973, assigning the responsibility for administration of religious programing to five institution chaplains who were designated as regional administrators. They coordinate administrative functions and make staff assistance visits, including review and evaluation of religious programing at the institutions within their region. A new chapel was dedicated at the Federal Correctional Institution, Texarkana, Tex., in October 1973. Institution chapels are used by all faiths and ecumenical worship services are held regularly. Citizens from the local community are invited to participate with inmates in the services. Many also visit institutions regularly as volunteers. LEISURE TIME A leisure time activities coordinator was assigned in the central office to give this program added support and direction. Closer working relationships were established with national recreation organizations and with community agencies to expand and improve institution recreational programs. Within the past year, the Federal Correctional Institution, Tallahassee, Fla., has been using its recreational program as a therapeutic resource to help offenders overcome physical, emotional, or social handicaps. Poor physical stamina also can be a handicap, affecting an inmate’s employability. Some unions are now stipulating that before they will accept a Federal inmate into one of their apprenticeship training programs, it must be determined that he is physically able to do the required manual labor. At Tallahassee, the special recreation regimen is integrated into the resident’s overall institutional program through the RAPS II system, which originally identified his need and thereafter helps the staff follow his progress toward all of his correctional goals. More Bureau institutions are expected to initiate recreational therapy in the coming year. DIVISIONAL REGIONALIZATION In a continuing effort to make management more readily responsive to local institution needs, the Institutional Services Division will restructure its central office operations along regional lines July 1, 1973. Duties and offices in the Washington, D.C., headquarters will be realigned to provide coordination and support functions to institutions according to their geographic region. Institutions in the south-central region will be served by the Dallas regional headquarters office and 197 its regional director. He will provide the institutions with administrative and support services in all divisional areas, including institutional services. The other regions will receive their guidance and assistance from one of the administrators of the Division’s four branches (Case Management, Education and Vocational Training, Correctional Services, and Mental Health). Each branch administrator also will serve as a regional coordinator, providing the institutions assigned to his region with the whole range of services formerly supplied by the Division’s individual branches. He will be assisted in carrying out these responsibilities by an interdisciplinary staff team representing each of the Division’s branches. The Division’s reorganization is an interim step, preliminary to a future decision on further regionalization of the Bureau’s operations. INTERAGENCY ACTIVITIES The Bureau has been working actively with other agencies in the criminal justice community to achieve a better understanding of mutual goals and improve coordination of efforts to reduce crime and correct the offender. Over the past year the Bureau has participated in judicial conferences and special joint meetings with the Board of Parole and the U.S. Probation Division. The meetings have enhanced the working relationships between the agencies and produced increased cooperation in dealing with offenders. Administrative Services Division The Administrative Services Division directs all of the Bureau’s support programs and operations, which include personnel, financial management, management programs, and field services (food, farm, construction, and maintenance). PERSONNEL BRANCH In 1973 the Bureau focused much of its energies on attracting career-minded individuals to its service, particularly minority group members. Undergraduate and graduate students in a variety of disciplines regularly receive intern and practicum experience at Bureau institutions. A number have accepted employment with the Bureau on completing their education. Minority group members make up one-third of the offender population in Federal institutions. To overcome the proportional imbalance between minority staff and inmates, the Bureau established a goal in November 1971, of attempting to make at least one-third of all new appointments from minority groups. The cumulative total on minority hires over the past 18 months was 30 percent. Equal opportunity counselors have been assigned at all institutions to help employees resolve questions locally concerning discrimination. The Personnel Branch is establishing a special Equal Employment Opportunity Section to improve recruitment and retention of minority group employees. These efforts also will involve recruitment and career opportunities for the Spanish-surnamed men and women. FINANCIAL MANAGEMENT BRANCH Three projects with Bureau-wide impact were undertaken in the Financial Management Branch in 1973. The first was a shift in responsibility for institutional accounting—from a regional function back to the individual institutions. The next two steps involve implementation of a computerized financial management system which has been under development for three years. The design and entire structure of the accounting system were changed to meet the need for more specific information on which to base management decisions. The revised system incorporates fund control, budget planning and performance review, and will help management relate costs to productivity. The automated system is being tested on a pilot basis at several institutions and is scheduled to become fully operational in 1974. MANAGEMENT PROGRAMS BRANCH The Division’s Management Programs Branch was established last year with a dual role: (1) to coordinate staff training operations and provide leadership and direction to all components of the training network; and (2) to coordinate ADP systems design, development, and operations. The branch concentrated its activities on improving staff training opportunities, developing management and staff programs for the new institutions to be opened next year, and expanding information and communication services throughout the Bureau. Of the Bureau’s major institutions, 27 received special equipment that links them together in a national data communications network and gives them access to the Department of Justice’s computer. With their new equipment, the institutions can send automated data over telephone lines to counterpart equipment in the central office for transmission to the Department computer. The institutions also can transmit directly to each other and can receive printouts of data, forms, and reports. Personnel, payroll, and inmate operations have been among the prime users of the automated system. 198 STAFF TRAINING The influx of more aggressive offenders poses complex management problems for Bureau institutions today. Helping hard-to-reach offenders change their attitude and behavior requires intensive treatment programs, implemented by a staff of highly trained professionals. To meet the continuing challenges presented in the correction of the Federal offender, the Division has developed its staff training resources from an unstructured institutional function prior to 1970 to an integrated servicewide training network which last year provided the Bureau’s 7,000 employees with over 325,000 manhours of training. Each institution is staffed with an employee who can plan and implement its training programs. His training efforts are coordinated with the Bureau’s Staff Training Centers, located in El Reno, Okla., and Atlanta, Ga. In July 1973, the El Reno center will move its operations to a new, larger center in Dallas, thereby doubling its training capacity. In two years time, virtually all current employees will have received training in correctional and/or counseling skills at the centers. Supplementary training is being given on a continuous basis in all the Bureau’s facilities. The Division’s training network includes two technical training institutes offering one-year programs in an occupational specialty. The Food Service Training Center at Petersburg, Va., graduated its first class of six food supervisors last year. An additional ten trainees from state and local agencies also attended individual courses. The second technical training operation is the Physician’s Assistant and Paramedical Training Institute at the Medical Center for Federal Prisoners, Springfield, Mo. Designated as a training center in 1973, it provides 675 classroom hours, 1,600 hours of pre-clinical and clinical experience, and a second year of on-the-job training under the direction of a physician at one of the Bureau’s facilities. The program also provides refresher training to help upgrade the skills of employees in paramedical specialties. PROJECTED TRAINING The Bureau will have a massive training job on its hands in 1974 when it expects to open four new institutions. About 500 new employees will receive their initial training directly at the facilities from training teams drawn principally from the Staff Training Centers. MEDIA SERVICES CENTER Video tape is being used more extensively as a direct communication medium throughout the Bureau. A Media Services Center established in Washington, D.C., last year operates a television studio whose principal product is a video-taped report sent biweekly to all the institutions. The report features the Bureau’s director and staff in brief informative discussions covering a broad range of subjects, such as new facilities, industrial operations, and Bureau policies and programs. The Media Services Center provides the institutions with guidance on their audiovisual operations, including use of video tape. It also has a library of audiovisual aids available for loan to the field installations. WARDEN’S ADVISORY GROUPS Five advisory groups, made up of wardens throughout the Federal Prison System, were established as a policy-making resource to the Director and central office executive staff. Each wardens’ group meets periodically to review problems and proposals in its assigned area and to suggest courses of action. The forerunner of the Wardens’ Advisory Groups was a staff training advisory group which helped plan the Bureau’s first staff training centers. It has since been converted to a Wardens’ Advisory Group on personnel and training. Areas assigned to the other advisory groups are budget and long-range planning, inmate management and services, inmate programs, and community and interagency relations. COMMUNICATIONS To meet a need for rapid, documented communication between the central office, field installations and other Federal agencies, such as the U.S. Marshals Service, the Bureau will install teletype machines in the central office, in nine institutions and the Dallas regional office next year. This will be a pilot project, which will use the Department of Justice computer to relay programed messages, individually or simultaneously. If the system is more efficient and decreases workload and costs, as expected, it will be extended to include all Bureau facilities. FBI DATA EXCHANGE The Bureau’s centralized automated inmate information system began exchanging data with the Federal Bureau of Investigation’s National Crime Information Center. The new procedure will allow central office staff to update and maintain custody information on 23,000 Federal offenders. CONSTRUCTION AND MAINTENANCE The 1973 budget included $9.3 million for improvements to existing institutions. The primary emphasis 199 this past year was on inmate facilities. Planned or completed were the conversion of dormitories to more private inmate space, incorporation of unit management into the housing units, and improvements and expansion of educational, vocational training, and recreation facilities. Projects involving major improvements to inmate program facilities were included in the budget for the institutions at Danbury, Conn.; Milan, Mich.; Ashland, Ky.; Englewood, Colo.; and Petersburg, Va. Inmate housing improvements also were initiated at Terminal Island, Calif; Sandstone, Minn.; and Lewisburg, Pa. Planning and Development Division In July 1972, the Bureau restructured its organizational alignment, adding a Planning and Development Division to its central office operations. The Division coordinates the Bureau’s future budget and planning needs, facilities and program development, and research activities. BUDGET The Bureau of Prisons’ 1973 operational budget was $118.3 million, reflecting an increase of $13.4 million over 1972, and $55.9 million over 1969. The increase reflects a corresponding heightened concern about correctional improvement on the part of the Government and the public. Over 250 positions were added to institutional rolls over the past year to help the Bureau implement its new correctional programs in a humane, supportive environment. FACILITIES DEVELOPMENT The 1973 budget also included $33.3 million for planning and construction of new institutions. This included funds for the planning and site acquisition for a complex of youth facilities to serve the northeast region of the United States, another for the southeast, and a cocorrectional facility in the. central region for male and female youths and young adults. Construction funds for metropolitan correctional centers in San Francisco, San Diego, and Philadelphia also were furnished. Through a fast-track design construction process, a site was acquired, design was completed, and construction is well underway on the San Diego Metropolitan Correctional Center. The new 28-story, 500-bed detention facility will be connected by a pedestrian tunnel to a new Federal courthouse, also under construction. The New York City Metropolitan Correctional Center was about 50 percent complete at the end of the year and will open around January 1974. The Chicago Metropolitan Correctional Center will be completed the summer of 1974. The five multipurpose correctional centers will serve the community by providing presentence and shortterm postsentence detention facilities, diagnostic services to the courts, prerelease programs for offenders returning to the community from institutions, and correctional services for parolees and probationers. The Federal Center for Correctional Research, Butner, N.C., is scheduled for a mid-1974 opening. The center will be unique in the Federal correctional system. It will have a dual role: (1) to provide intensive mental health programs for offenders with emotional problems, and (2) to serve as a correctional research center and resource for the training of professional correctional personnel from Federal, state, and local systems. Two Federal youth centers in California are under construction. One of the centers, in Pleasanton, will be in operation early in 1974. The San Diego center should be ready for occupancy later in the year. These campus-like youth centers will provide a variety of correctional treatment programs for youthful and young adult offenders from the western region. PROGRAM DEVELOPMENT The Office of Program Development is a new addition to the Bureau of Prisons’ central office organization. It was established in October 1972, as part of the newly organized Division of Planning and Development. The purpose of the Office is to stimulate and coordinate the Bureau’s planning activities. The major program development effort has been the establishment of planning objectives that will provide continuity to future development in the Bureau. During 1973, master plans were produced by five pilot institutions under the guidance of the Office. Each plan outlines the major program philosophies endorsed by the institution, the programs that are currently operational, and future programs that will be implemented. Also in each plan is a basic set of broad measures and annual achievement targets to assess program effectiveness. The master plans will serve as a planning and operational guideline designed to hold the institution consistently on course with its stated mission, regardless of changes in administration or staff. Master plans will be prepared by the remaining 23 institutions in the coming year. RESEARCH The Division is involved in several research activities that are aimed primarily at evaluating Bureau programs. Some studies assess the social climate at various institutions. One such project is being undertaken at 200 Fort Worth, which is a co-correctional institution housing male and female offenders. Other studies aim to evaluate institutional and community programs, mainly through postrelease outcome measures. Such projects are being conducted in cooperation with the FBI and the Board of Parole. A third group of studies attempts to relate demographic, institutional, and postrelease variables in order to discover what combination of factors affects an inmate’s adjustment in the free community. From these analyses, the Bureau hopes to achieve the best possible program for each inmate. Health Services Division This Division administers a comprehensive medical, dental, and environmental health care system for inmates in the Federal prisons. A professional, technical, and support staff of approximately 400 full-time employees is distributed among 29 Bureau facilities throughout the country to provide comprehensive health care to more than 23,000 Federal offenders. Facilities without full-time physicians generally have clinics staffed by medical technicians. They use the services of contract physicians who make regular visits and also are on call. The standards of patient care at institution hospitals approximate those recommended by the Joint Commission on Accreditation of Hospitals. Last year institution health services staff saw an average of 840 inmates a day. They took care of 600,000 clinic visits, made over 440,000 laboratory tests, and took 61,000 X-rays. Physicians made more than 26,000 patient examinations and performed 5,600 operations. Dentists filled almost 32,000 cavities and provided inmates with 4,100 dentures. The dentures are made at the Bureau’s Central Dental Laboratory, a Federal Prison Industries operation at the U.S. Penitentiary, Lewisburg, Pa. Immate-trainees earn Associate Degrees in dental technology for their work at the laboratory from the Williamsport (Pa.) Area Community College. About 90 percent receive jobs in commercial dental laboratories at salaries of up to $10 an hour when they are released. A recent addition to the Federal Correctional Institution, Terminal Island, Calif., includes a new hospital which will be used whenever possible as a west coast Referral Center. Female offenders also will be given care as inpatients at the hospital. The physicians’ assistant training program at the Springfield Medical Center was upgraded to a training institute last year, with a full-time program director. Federal Prison Industries, Inc. Federal Prison Industries, Inc. (FPI) is a self-supporting Government-owned corporation producing a wide range of products and services for use by Government agencies. The corporation maintains a nationwide system of installations that provide intensive vocational and industrial training for Federal inmates. Products and services in the 49 industrial operations vary widely. They include electronic cable assembly and repair, furniture manufacture, printing plant services, computer operations and programing, automated data processing, metal products, and textiles. Last year the Atlanta industry developed a new synthetic fabric to meet the special needs of the Postal Service, one of its customers. Called “Colton,” a blend of cotton and nylon, it replaces the too-slippery nylon fabric previously used for mail sacks. According to its earnings statement, FPI had record sales in 1973. But expenditures, inflated by higher costs and higher material and product inventories, also set a record, resulting in a decrease in cash available by $2 million for the year. Included in the expenditures figures were $5,027,614 for vocational training and equipment, $901,000 for meritorious service awards to inmates (given for exceptional performance) and $98,000 for inmate accident compensation. Last July, FPI established an Industrial Programs Division to plan and develop new long-range programs and implement them in cooperation with Bureau and other FPI activities. The Division also has the responsibility for planning new industries that provide training inmates can use to get good jobs when they are released. Office of General Counsel and Review The Office of General Counsel and Review advises the Bureau, as well as members of the Federal judiciary, on the legality, appropriateness, and implementation of sentences and other legal procedures affecting Federal prisoners. The Office also deals with legal issues involving attacks on administrative decisions and policies. The Office conducts administrative review of suits brought under the Federal Tort Claims Act and provides necessary assistance to the Department of Justice’s Civil Division. The inmate accident compensation system, for work-connected disabilities, also is administered by this Office. Proposed congressional legislation affecting Bureau operations or corrections in general is analyzed by the Office, which also drafts supplemental proposals. During the past year, the Office spent much of its time in precedent-setting litigation involving prisoner’s rights. Gases now in the courts concern offenders’ rights to prison disciplinary hearings, First Amendment rights involving religious services and the right of the media to interview inmates. 201 The Office is also responsible for the Bureau’s equal employment opportunity (EEO) program and supervises EEO investigators assigned to the institutions. Legal services are now available on site to administrators at three Bureau institutions, beginning with the assignment in 1972 of an attorney-adviser at the Medical Center for Federal Prisoners, Springfield, Mo. In 1973 the U.S. Penitentiary at Atlanta, Ga., became the second institution to have an attorney-adviser on its staff. The third institution is the U.S. Penitentiary, Leavenworth, Kans., where a position combining the functions of executive assistant and attorney-adviser has been functioning since 1973. During the year, the Office drafted several- new policy statements for Bureau issuance based on recent court decisions. One concerned the crediting of jail time under new court decisions. Another covered parole eligibility for narcotics cases, as determined by the Department of Justice’s interpretation of a recent Supreme Court case. So much of the time of the U.S. courts is taken by inmate suits attacking institution procedures that Supreme Court Justice Warren E. Burger suggested an alternative be provided at the institution level. A formal grievance program has been under development for some time in the Bureau and will be instituted September 1, 1973, on a pilot basis at three Bureau institutions. Inmates who feel their problems cannot be resolved informally with an institution staff member will be able to use the grievance procedure which documents the complaint and the action taken at the various appeal levels provided—from the institution to the central office. The courts are expected to require inmates to exhaust their new administrative remedies before applying for legal redress. The grievance program will be administered by an additional full-time employee to be assigned to the Office. If it proves worthwhile, it will be extended to all Bureau facilities. Conclusion The Bureau has been expanding its contacts with local resources, including other agencies, in an effort to provide needed community services for offenders. It also has placed a strong emphasis on extending its residential community services to more qualified offenders as an alternative to confinement. The basic objective in the Federal Prison System is to upgrade • all areas of corrections—to move ahead with a balanced approach—one that will see institutional and community treatment both developed to the highest degree of effectiveness. 202 ............................................. ■ PERCENTAGE OF POPULATION CONFINED TO INSTITUTIONS BY OFFENSE BURGLARY 0.9 1973 PERCENT OF TOTAL POPULATION CONFINED FOR VIOLENT OFFENSES (Assault, Homicide, Kidnapping, Robbery, Rape) PERCENT 203 U.S. Board of Parole The Federal parole system has been in operation since 1910. A centralized Board, with parole jurisdiction over all Federal prisoners wherever housed, was created by statute in 1930. Amendments to the statutes through the years have resulted in the present Board of eight members, appointed by the President, by and with the advice and consent of the Senate. Members serve six-year, overlapping terms and may be reappointed. The Board has jurisdiction over all Federal prisoners paroled and other prisoners released on mandatory release “as if on parole” under the “good time” statutes. The Board issues a release certificate for each parolee and may issue a warrant for his return if he violates the regulations established by the Board governing his behavior in the community. In 1950 Congress created a .Youth Correction Division within the Board. This Division has specific powers with regard to the Federal Youth Corrections Act enacted in 1950. Any member of the Board may be designated by the Attorney General to serve on the Youth Division. The chairman of the Board and the chairman of the Youth Division are designated by the Attorney General. Regionalization Project The Board has recognized a need to make substantive changes in its organization, policies, and procedures. This recognition is consistent with several court decisions, pending legislation, and a comprehensive study by the Administrative Conference of the United States. It also reflects the recommendations of the 1973 report of the National Advisory Commission on Criminal Justice Standards and Goals. In October 1972, the Board initiated a pilot regionalization project to determine the feasibility of a regional operation and development of significantly different methods of operation. A proposal envisioned the creation of five regions distributed throughout the United States generally following the geographical guidelines established by the Office of Management and Budget. Each region would be headed by a regional director with examiners holding all hearings and making tentative decisions in most cases. In addition, three members would remain in Washington, D.C., and comprise the National Appellate Board. In the pilot project, the designation of a regional director and a National Appellate Board permitted implementation of a two-level administrative appeal process which brought fairness to the paroling process as well as decreased the possibility of error. Under this new procedure, each inmate was permitted a representative to assist him at the parole hearing and all denials of parole were accompanied by the reasons therefor. Board decisions were given to the inmate on a personal basis at the institution soon after the hearing. The examiners heard cases in panels of two, using explicit decision-making guidelines previously adopted by the Board. The pilot project comprised five Federal institutions in the northeast region. These institutions are the U.S. Penitentiary, Lewisburg, Pa.; the Kennedy Youth Center, Morgantown, W. Va.; the Federal Reformatory for Women, Alderson, W. Va.; the Federal Reformatory, Petersburg, Va.; and the Federal Correctional Institution, Danbury, Conn. A review of the first six months of the operation shows that 1,679 hearings were held at the five institutions. Over 40 percent of the hearings had representatives present and in 99.5 percent of the cases the decisions and reasons in cases of denial or continuance were given to the inmates personally within five working days. The examiner recommendations were within the decision-making guidelines 64.2 percent of the time. During this first 204 COMPARATIVE SUMMARY OF BOARD HEARINGS, PAROLES GRANTED AND PAROLE VIOLATION WARRANTS ISSUED six months, there were a number of outside observers, including the press, and the opinion, in general, was favorable not only from outside observers but also from the inmates and institutional staff. The goals of the regionalization are: 1. to provide timely, well-reasoned decisions based upon personal interviews of inmates by a professionally trained hearing panel; 2. to develop and implement an explicit paroling policy to provide greater consistency and equity in decision-making ; 3. to provide for a two-level appellate process. This administrative procedure will provide an efficient, effective, and legal method of affording substantive review of case decisions; and 4. to place regional directors and staff closer to the institution, courts, and parole agents to more effectively enable responsive liaison with these agencies and with the persons under the supervision of the Board. Guidelines for Parole Decision-Making Building upon a three-year study of parole decisionmaking conducted by the National Council on Crime and Delinquency in collaboration with the Board of Parole and financed by a grant from LEAA, the Board has established written guidelines for determining the length of time to be served before an individual is released on parole. The guidelines indicate the usual range of time served before parole release for various combinations of offenses and estimates of risk of repeated criminal behavior. The offenses are categorized by their relative severity and the risk is estimated according to the characteristics of the offender. The ranges of time suggested assume good institutional adjustment and normal progress in institutional programs. These guidelines are presently being used in the Board’s pilot regionalization project. Where the circumstances indicate, decisions may be made outside the guidelines in the direction of either earlier or later parole. When a decision outside the guidelines is proposed, however, the hearing panel must specify the special factors considered. In this manner the guidelines lead to a more consistent exercise of discretion and promote equity without removing individual consideration of each case. Due Process in Parole Revocation The Supreme Court has redefined the procedural rights required by due process in revocation of parole 205 hearings (Morrissey v. Brewer, 408 U.S. 471, 92 S. Ct. 2593). Reviewing parole revocation procedures in Iowa, the Supreme Court held that a parolee who is accused of violation of the conditions of his release, who does not admit such violation and who has not been convicted of a new offense while under supervision, is constitutionally entitled to a two-step procedure by which the Board determines whether there has been a violation of parole justifying revocation and return to an institution. The Supreme Court held that the revocation process requires notice of the claimed violations of parole, disclosure to the parolee of the evidence used against him and an opportunity for the parolee to be heard in person and to present witnesses and documentary evidence on his own behalf. He also has the right to confront and cross-examine adverse witnesses, unless the hearing officer finds good cause for not allowing confrontation. He is also entitled to a neutral and detached hearing officer or hearing panel. If the parole is subsequently revoked, the prisoner is entitled to a statement of the evidence relied on by the Board and the reasons for the revocation. Committed Fines The Board and the Bureau of Prisons, on March 19, 1973, issued a joint policy statement directing that a prisoner with an unpaid committed fine will not be re leased on parole unless he has been discharged from the committed part of his sentence under the pertinent Federal statute (sec. 3569, title 18, U.S.C.). Such discharge may be ordered by the warden of the institution, by a U.S. magistrate or by the Board of Parole acting for the Attorney General. Such a discharge must be made on the basis that the prisoner needs all or part of the assets he may possess for the support of himself or his family. The effect of this policy will be to resolve the issue of committed fines before release takes place. This is in contrast to the previous procedure whereby a prisoner could have been paroled but had to continue under supervision beyond the normal expiration date of the sentence until the fine was paid or otherwise resolved. Trends in Board Decisions During the past year, the Board conducted 14,306 hearings with Federal prisoners. In addition, reviews were made of previous decisions on the basis of institutional progress reports in 3,234 cases. The Board made 19,174 parole decisions of all types. This compares with 18,994 such decisions the previous year. During 1973, the Board granted 5,975 paroles, the second highest number in its history. This was an increase from the 5,734 paroled in 1972. Despite the high number of paroles, the number of parole violator warrants issued dropped once more for the third straight year. There were 1,256 warrants in 1973 compared to 1,328 in 1972. 206 Pardon Attorney Article II, section 2 of the U.S. Constitution authorizes the President to grant reprieves and pardons for Federal offenses. It is the responsibility of the Pardon Attorney to provide the President with the best information available on which to base a fair and just decision. As a member of the Attorney General’s staff, the Pardon Attorney receives and reviews all petitions for clemency, initiates the necessary investigations and prepares the Attorney General’s recommendations to the President. The pardoning power as set forth in the Constitution is unlimited and unqualified. This discretionary power given the President extends to all offenses against the United States except cases of impeachment. The exercise of this authority is not subject to review by the courts nor may it be circumscribed by Congress. The decision to pardon or not to pardon is the President’s alone even though, as a matter of practice, he relies on the written advice of the Attorney General. The single exception is the modification of prison sentences in military cases. In such cases, clemency (i.e., commutation of sentence) is exercised by clemency boards within the military departments. Only a small percentage of convicted persons ever apply for executive clemency. In addition to the 548 clemency cases closed in 1973, correspondence amounted to 5,120 items received and 6,625 mailed, 324 congressional inquiries answered and 357 informal petitions considered. Clemency may be a reprieve, remission of fine, commutation (shortening) of sentence, or pardon after completion of sentence. A commutation of sentence may reduce the number of years of a sentence to permit a prisoner to be released at some future time or accelerate his eligibility for parole. It frequently reduces a sentence to time already served. A commutation of sentence is usually granted only in cases in which exceptional circumstances are pres ent, such as terminal illness or disparity of sentence. Outstanding conduct in prison and evidence of rehabilitation are important factors but commutations are rarely granted on such grounds alone. A pardon is a forgiveness of an offense. It does not expunge the record of conviction and does not in itself restore civil rights. As a general proposition, it may be said that a pardon by the President relieves the recipient of legal disabilities attached to his conviction by reason of Federal law. The ground on which a pardon is usually granted is the demonstrated good conduct of the petitioner for a certain period of time after his release from confinement. Among the factors considered are the petitioner’s subsequent arrest record, financial responsibility, family responsibility, and reputation in the community. In a recent study based upon all 194 persons who received pardons in fiscal year 1965, it was found that only three percent had been convicted of subsequent crimes. An earlier study, based upon all 149 persons who received a pardon in fiscal year 1960, showed only four percent were subsequently convicted, and these of only misdemeanors. Executive Clemency Statistics Granted Fiscal year Received---------------------------------Denied Pending Pardons Commu- tations 1953_____________ 1954_____________ 1955............. 1956_____________ 1957_____________ 1958............. 1959_____________ 1960............. 1961_____________ 1962_____________ 1963.......... 1964_____________ 1965........... 1966_____________ 1967_____________ 1968.......... 1969_____________ 1970.......... 1971_____________ 1972_____________ 1973............. 599 461 662 585 585 406 434 437 481 595 592 921 1, 008 865 863 749 724 459 454 514 485 97 55 59 192 232 98 117 149 226 166 133 314 195 364 222 13 0 82 157 235 202 8 356 681 7 348 732 4 684 647 9 568 463 4 443 369 6 302 369 2 286 398 5 244 437 18 266 408 16 315 506 45 233 687 74 437 783 80 569 947 81 726 641 23 520 739 3 415 1,057 0 505 1,276 14 698 941 16 648 574 20 410 425 5 341 362 207 Law Enforcement Assistance Administration Richard W. Velde Immigration and Naturalization Service Leonard F. Chapman, Jr. United States Marshals Service Wayne B. Colburn =3 TO o> Federal Bureau of Investigation Clarence M. Kelley Drug Enforcement Administration John R. Bartels, Jr. Bureau of Prisons Norman A. Carlson Federal Prison Industries, Inc. co pilllllllllllll hs 1 g 5 ari.o to ■ to = Criminal Division Henry E. Petersen Tax Division Scott P. Crampton Civil Rights Division J. Stanley Pottinger cn QJ « O ■ S i iiiiimiuuA Civil Division Carla A. Hills Antitrust Division Thomas E. Kauper Land and Natural Resources Division Wallace H. Johnson, Jr. O ' GENERAL R Saxhe RNEY GENERZ i Silberman FORNEY William 'Y ATTO irence 1 | DEPU1 Board of Parole Maurice H. Sigler Board of Immigration Appeals Maurice A. Roberts Boards Solicitor General Robert H. Bork Office of Legal Counsel Antonin Scalia Executive Office Philip H. Modlin United States Attorneys Community Relations Service Benjamin J. Holman Office of Management and Finance Glen E. Pommerening Office of Criminal Justice Jonathan C. Rose Offices Office of Legislative Affairs W. Vincent Rakestraw Pardon Attorney Lawrence M. Traylor Office of Public Information Robert L. Havel US. GOVERNMENT PRINTING OFFICE : 1974—O-S2S-134 208