The Waterbury Democrat., 1943-11-04
Committee
 Cuts Budget
CContinued from Page D

NOOAeAAAUC4 AAOhA A 0bN ~ He pointed out that the $94l, ,56O,. 305 cut was only about $450, 1000, 900 less than the total economies req lized during the entire last session of congress on all appropriation bills.
 Bulk Of Cut
 The bulk of the near-billion cut came in elimination of a $750,000,- 900 item for the Navy stock fund after Secretary of Navy Frank Knox had advised that 1t could be dis counted from Navy ordnance funds due to changes in procurement plans.
 "This action on the part of the Navy is commendable," the report said. Tt results from a survey of funds previously voted and their status with respect to obligation and programming similar survey is being made of Army expendi- tures."
 The requests of two government departments-Agriculture and In- terior's Bureau of Reclamation were eliminated entirely. Paul V. McNutt's War Manpower Commits sion's $17,000,000 request was whittled down one-third and his Federal Security Agency's $26,000,- 900 budget estimate was halved. The Commerce departments ST. 270,000 now stands at $1,097,0 ,000. The National Housing Agency's request for $200 100000 for addi- tional war shelter was slashed to $50,0OO, 900 because the committee is disturbed over the possibility of public housing being overbuilt." OWI Gets Green Light
 The only government department to get a green light was the OWI which in the past has been the objective of bitter and critical house debate. But after the com- mittee had received communications from Gen. George c. Marshall, chief of staff, and personal testi- mony from a member of Gen. Dwight Eisenhowers staff it de- cided to vote the entire $5,000, GOO requested for carrying on psycholo- gical warfare and propaganda &C., tivies in connection with military operations. Failure to do so, the committee concluded, would impede the war effort, lengthen and add to the cost of the war and possibly result in the loss of unnecessary Americans lives.
 The committee released simultan- eously with its report 1,638 pages of testimony on the mill.
 Highlights
 Highlights of testimony by gov ernment officials include:
 1. Eight per cent of the prisoners taken in the Sicilian campaign were influenced or 'impelled" to sur render by OWI leaflets and pro- paganda broadcast.
 3. Physical discharges by the armed forces will total 10000 week by the end of of the year and next year "our discharges will prob ably run over 100000 for the year" Neuropsychiatric cases in veterans hospital in August accounted for 51 per cent of total hospitalizations.
 4. Twenty to 25 per cent of the nations manpower is being wasted according to WING figures; labor turnover is increasing; peak war employment will be reached by July 1914.
 5. The nation faces a "very, very dangerous" coal situation; the only way to avoid outright allocation" of coal by the government would have been to step up production 100000 tons week month ago. 6. The 30-day strike notice pro- vided in the Smith-Connally war disputes act has resulted in settling a greater number of labor disputies without strikes. Although AT or 48 of the 49 strike ballots taken under the act were for strike, only six or seven strikes actually happened.
 '. The world cost of living is on the average g 1-2 per cent higher than in Washington: In the middle east where costs were below Wash ington in July, 1942, food costs alone now range from PA to 403 per cent above Washington levels; Chinas cost of living index in 1922 was 2,249, compared with 2S6 in 1940. I