OCEANOGRAPHY 1961— PHASE 3 



FRIDAY, JULY 14, 1961 



House of Representatives, 

 Subcommittee on Oceanography of the 

 Committee on Merchant Marine and Fisheries, 



Washington^ D.C. 



The subcommittee met at 10 a.m., pursuant to adjournment, Hon. 

 George P. Miller (chairman of the committee) presiding. 



Present : Representatives Miller, Lennon, Casey, and Morse. 



Also present : Representative Gross. 



Staff members present : John M. Drewry, chief counsel, and Paul S. 

 Bauer, staff consultant. 



Mr. Miller. The subcommittee will be in order. 



Today we will resume the hearings on H.R. 4276 with respect to 

 the testimony of the National Science Foundation, represented so 

 ably by Dr. Randal M. Robertson. His testimony, interrupted by 

 the congressional call bell, was of such importance that we have re- 

 quested him to return. 



His incompleted testimony raised the problem of the financial man- 

 agement of grants, or essentially gifts, to nonprofit institutions, of 

 public funds. It should be manifiest that any increase in the work- 

 ing assets of nonprofit instiJ!:utions will by itself increase the general 

 and administrative costs of the institution. This could reflect in an 

 increased allowable cost of the Defense Department cost-type con- 

 tracts. There are many more problems of a technical accounting na- 

 ture which will be explored by the subcommittee with the aid of 

 qualified experts and the assistance of those granting agencies of the 

 executive department. 



We further shall concern ourselves with that portion of the bill 

 which requires title to vessels constructed by grant or contract to rest 

 with the Federal Government and as an ancillary problem the question 

 of grants or gifts of shore facilities from public funds. 



It gives me a great deal of pleasure to recall as a witness Dr. Randal 

 M. Robertson of the National Science Foundation whose interesting 

 testimony was unfortunately cut short by the summons to the House 

 floor. 



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