is inconsistent with sound and economical home financing, or with the purposes of this act." (Id., sec. 4(a), 47 Stat. 726 (1932), 12 U.S.C. sec. 1424 (a) 1958).)

The Commission feels that these provisions would be sufficient for the adoption of a policy of nondiscrimination in the Federal Home Loan Bank System, as would similar provisions in the other Federal agencies.

"Recommendation 3.-That the Federal Government, either by Executive or by congressional action, require all financial institutions engaged in a mortgage loan business that are supervised by a Federal agency to conduct such business on a nondiscriminatory basis, and to direct all appropriate Federal agencies to devise reasonable and effective implementing procedures."

Concurring in part, dissenting in part, Commissioner Rankin cites the danger of "wholesale Federal intervention" in this area. Exacting thought must be devoted to developing limited measures to assure nondiscrimination without infringing the right of financial institutions to pursue their economic policies free from unwarranted Federal control. Yet, he feels some measures should be devised to free mortgage credit from possible discrimination.

Dissent by Vice Chairman Storey: Storey is opposed to further intervention by the Federal Government into the affairs and policies of private financial institutions. He notes that a great number of factors motivate an institution in its decision to grant loans or not, and the first duty of such officials is to make a prudent investment. Private institutions will lend their money on a nondiscriminatory basis when it is in their best interest to do it.

"Recommendations, such as this, for increasing Federal control assume a totally powerful National Government with unending authority to intervene in all private affairs among men, and to control and adjust property relationships in accordance with the judgment of Government personnel. It is at this level that a more serious and obvious weakness arises, because political employees are seldom absolutely objective.

"Therefore, a great deal of caution is needed before succumbing to the politically tempting suggestion of resorting to Federal Government for increased control.

"Successful regulation must be limited to issues that cannot be dealt with by voluntary association and, even then, only after imperative need for more extensive Federal intervention into private affairs has been established."

The Commission pointed to the necessity for action by the President to implement this nondiscrimination provision because it would not be well coordinated among the necessary agencies unless by Executive order. For these reasons, the Commission reiterates its recommendation in its 1959 Report 538 that such action be taken by Executive order by the President.

"Recommendation 4.-That the Federal Government, either by Executive order or congressional action, take appropriate measures to require communities as a prerequisite to receiving Federal urban renewal assistance:

"(a) to assure that there is a supply of decent, safe, and sanitary housing for displacees in fact adequate to the needs of the families displaced; and "(b) to provide sufficient relocation facilities to assure the relocation of such displacees into decent, safe, and sanitary dwellings.

"Recommendation 5.-That the President direct the Urban Renewal Administration to require that each contract entered into between local public authorities and redevelopers contain a provision assuring access to reuse housing to all applicants regardless of race, creed, or color."

These recommendations were suggested to cover those cases where the Commission felt that the procedures of condemnation and eminent domain were used to further discrimination by forcing minority groups to move because of urban renewal but later barred them from reoccupying the new developments. The Commission received testimony that this was simply moving slums from one place to another, if the old occupants are not afforded the oportunity to relocate in the new developments. The Commission found that often the reason for refusal to rent to the old tenants is based on discrimination.

The Commission states the Federal Government should retain a larger control over funds. Indeed, "It is the HHFA, however, that possesses and should wield the ultimate power to assure adequate relocation results-the power to withhold certification or recertification. There is evidence that in the past HHFA has not been vigorous in holding local communities to proper relocation practices." (Hearings 1961, p. 92.)

"Recommendation 6.-That Congress amend the Highway Act of 1956 to require that in the administration of the interstate highway program, States

assure decent, safe, and sanitary housing to persons displaced by highway clearance; that in those localities where there are agencies administering relocation programs, such agencies be made responsible for the relocation of persons displaced by highway construction; and that Congress provide also for financial aid to displaced families in order to facilitate their movement to new homes. "Recommendation 7.-That the President direct all Federal agencies concerned with housing and with home mortgage credit to develop procedures for obtaining information on the availability of home mortgage credit to nonwhites and other minority groups, and the extent to which they participate in the benefits of the housing programs administered by these agencies."

COMPARISON OF FUNCTION OF THE CIVIL RIGHTS COMMISSION WITH RELEVANT FUNCTION OF CIVIL RIGHTS DIVISION

I. FUNCTIONS OF COMMISSION

(1) Investigate allegations that citizens are being deprived of their right to vote and have that vote counted by reason of their color, race, religion, or national origin.

(2) Study and collect information concerning legal developments which constitute a denial of equal protection of the laws under the Constitution.

(3) Appraise the laws and policies of the Federal Government with respect to equal protection of the laws under the Constitution.

(4) Conduct such public and executive session hearings throughout the United States as may be necessary to perform the duties and accomplish the objectives of the Civil Rights Act of 1957.

(5) Prepare and submit interim reports to the President and the Congress, and a final, comprehensive report of its activities, findings, and recommendations by September 9, 1959.

II. CIVIL RIGHTS DIVISION

The following statements appeared in the appropriation request justification for the Civil Rights Division:

For fiscal 1959:

"In addition to the enforcement of the civil rights statutes it will take on a program of liaison and consultation with law-enforcement agencies and other officials of the States in order to promote understanding of the problems and to place the State and Federal responsibilities in their proper perspective." Commenting on this Mr. W. W. White stated:

"We have in mind the great importance of the collection of far greater information-both factually and legally, in the whole civil rights area * * *. We think that without such activity we just cannot do the job."

In January 1962, testifying for appropriations for 1963, Attorney General Kennedy stated:

"In the field of civil rights the Department's basic policy is to seek effective guarantees and action from local officials and civic leaders, voluntarily and without court action where investigation has disclosed evidence of civil rights violations."

Comparison of budgets of Civil Rights Division, Department of Justice, with Commission on Civil Rights

ACTIVITIES OF CIVIL RIGHTS DIVISION OF JUSTICE DEPARTMENT ACCORDING TO THE ANNUAL REPORT OF ATTORNEY GENERAL, 1962

I. VOTING RIGHTS

During 1962 a total of 3,093 complaints were received which merited investigation and hearings; 32 cases were filed as a result of these complaints; 3 had been adjudicated at the time of the report.

Sixty-two counties were still under investigation at the time of the report, and it was estimated that 35 more cases would be filed before the end of the year. After suits have been successfully adjudicated, the Division continues surveillance of the counties involved to assure compliance with court orders. This surveillance has led to two contempt citations during fiscal 1962. Trial dates were set for 5 more cases in the fall of 1962, and it was estimated that 16 additional contempt cases would be tried before the end of fiscal 1963.

II. INTERSTATE TRANSPORT

Two hundred and ninety-nine bus stations were investigated by the FBI. Out of 33 stations practicing segregation, 14 complied voluntarily with the Division's request for desegregation; 9 suits were brought which resulted in 7 court orders of complete relief; 10 stations were still being considered when the report was made.

Sixty-eight railroad stations voluntarily compiled with the Division's requests. Of 165 airports, all except 4 complied voluntarily. These four airports were desegregated following suits.

U.S. COMMISSION ON CIVIL RIGHTS, WASHINGTON, D.C.

Recapitulation of complaints received during the period July 1, 1962, through May 17, 1963 (pursuant to Public Law 85-315, sec. 104 (a) (1) (2) (3))

Voting complaints filed pursuant to Public Law 85-315, sec. 104(a) (1), listed by State and category-Period covered: From the organization of the Commission through May 17, 1963

1 Sworn voting complaints are those in writing and under oath or affirmation alleging unlawful denial of the right to vote and have that vote counted.

2 Unsworn voting complaints are those in writing but not under oath or affirmation alleging unlawful denial of the right to vote and have that vote counted.

3 General voting irregularities complaints are either sworn or unsworn complaints alleging that unlawful restraint or hardship was placed upon the complainant, or that the complainant was subjected to some unlawful, discrimination in the exercise of his suffrage rights.

31 voting complaints received from Mississippi since Mar. 15 of this year: 3 sworn, 28 unsworn.