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STATEMENT OF HON. ROBERT A. TAFT, A UNITED STATES

SENATOR FROM THE STATE OF OHIO

Senator TAFt. Mr. Chairman and members of the committee, I appeared before this committee on Thursday, July 28, 1949, in opposition to plan No. 1 of 1949. My testimony on that subject appears at page 75 of the hearings before this committee on Reorganization Plans Nos. 1 and 2 of 1949.

What I said there I think applies almost as strongly today. There is one matter in which an attempt has been made to meet some of the objections raised at that time, and I will discuss that matter in a comparison of the two plans later.

In the first place, this plan is no more in accord with the Hoover Commission recommendations than the plan No. 1 of last year. The Hoover recommendations, as you know, provided for a separate Medical Administration and did not put the health matter in the Department.

It was evident at that time, it was said, and it is said now, that after the Department is established, then maybe you can lift the health out and put it into a separate Medical Administration. It was pointed out a year ago that Mr. Ewing testified that he was absolutely opposed to that. It is perfectly apparent that the President is opposed to it.

They have now had 12 months in which to work out a United Medical Administration or a separate Health Service, or whatever you choose to call it, in accordance with the general principles of the Hoover plan, and they have not shown the slightest interest in it or done anything to bring it about. So it is perfectly obvious that this plan does not contemplate at any time a further separation of the Health Service in accordance with the plans of the Hoover Commission.

So that it seems to me entirely clear that this is in violation of the Hoover report.

I notice that in the House committee report it is stated that

Mr. McCormack, research director of the Citizens Committee for the Hoover Report, whose membership is representative of a strong public sentiment for adoption of the Hoover Commission recommendations, testified that Reorganization Plan No. 24– I think that that should be plan No. 27– was so much at variance with the Hoover Commission program that his committee could not give it support.

It seems to me obvious that the claim that this is part of the Hoover plan is entirely a mistaken one. It is actually an effort to create a permanent Department of Health, Welfare, and Education, in violation of the general recommendations of the Hoover Commission regarding the treatment of health in the Federal Government and the consolidation of those services.

A bill has been introduced and has been pending before the Labor Committee for a year, and the Labor Committee chairman has shown no interest whatever in developing the possibilities of a separate Health Service or a United Medical Administration, or whatever it is to be called, an independent Medical Administration.

I feel very strongly that, whether we exactly agree with the Hoover recommendations or not, this is a subject which Congress ought to study before a committee and ought to work out in detail the proper solution of the problem in accordance with the action of Congress.

Sec. 5. Other officers.There are hereby established, in the Department, the offices of (1) Surgeon General of the Public Health Service, (2) Commissioner of Education, and (3) Commissioner of Social Security. The Surgeon General shall be the head of the Public Health Service and shall perform such other duties concerning health as may be required by law or as the Secretary may prescribe pursuant to law. The Commissioner of Education shall be the head of the Office of Education and shall perform such other duties concerning education as may be required by law or as the Secretary may prescribe pursuant to law. The Commissioner of Social Security shall be the head of the Social Security Administration and shall perform such other duties concerning social security and public welfare as may be required by law or as the Secretary may prescribe pursuant to law. There are hereby transferred to the Surgeon General and to the Commissioner of Education, provided for in this section, all of the functions of the heretofore existing Surgeon General of the Public Health Service and all of the functions of the heretofore existing Commissioner of Education, respectively. The Surgeon General, the Commissioner of Education, and the Commissioner of Social Security shall each report directly to the Secretary; have professional qualifications, experience, and training appropriate to the duties of his office; be appointed by the President, by and with the advice and consent of the Senate; and (except in the case of a Surgeon General who is a member of the commissioned Regular Corps of the Public Health Service) receive compensation at the rate of $14,000 per annum. The Surgeon General shall hold office for a term of four years.

The Surgeon General may be appointed from the commissioned Regular Corps of the Public Health Service, and if so appointed (1) he shall not cease to be a member of such corps by reason of his appointment as Surgeon General, and (2) provisions of law applicable to the heretofore existing office of Surgeon General of the Public Health Service, including those with respect to pay and allowances, shall be applicable to him.

Sec. 6. Administrative services.—In the interest of economy and efficiency the Secretary may from time to time establish central administrative services in the fields of procurement, budgeting, accounting, library, legal, and other services and activities common to the several agencies of the Department; and the Secretary may effect such transfers within the Department of the personnel employed, the property and records used or held, and the funds available for use in connection with such administrative service activities as he may deem necessary for the conduct of any services so established: Provided, however, That nothing contained in this section shall be deemed to authorize the Secretary to transfer or remove from the control of the Surgeon General, the Commissioner of Education, or the Commissioner of Social Security any professional or substantive functions vested in them respectively under the provisions of this reorganization plan or of law hereafter enacted.

SEC. 7. Abolitions.—There are hereby abolished (1) the Federal Security Agency (exclusive of the agencies transferred by the provisions of section 1 (b) of this organization plan), (2) the office of Federal Security Administrator, (3) the office of Assistant Federal Security Administrator, (4) the two offices of assistant heads of the Federal Security Agency provided for in section 5 of Reorganization Plan No. 2 of 1946 (60 Stat. 1095), (5) the heretofore existing office of Surgeon General of the Public Health Service, and (6) the heretofore existing office of Commissioner of Education.

SEC. 8. Interim officers.—The President may designate and empower any person who is an officer of the Federal Security Agency immediately prior to the taking effect of the provisions of this reorganization plan to perform for a period not exceeding 60 days the functions of any office provided for by sections 2, 3, 4, or 5 of this reorganization plan pending the appointment of the first person appointed to such office. While so performing said functions any person designated hereunder shall have the title of the office concerned, with the prefix “Acting,” and, if the President so directs, receive the compensation of such office. No person designated under this section shall by reason of such designation forfeit his rights with respect to his office held immediately prior to the taking effect of the provisions of this reorganization plan.

[S. Res. 302, 81st Cong. 2d sess.)

RESOLUTION Resolved, That the Senate does not favor the Reorganization Plan Numbered 27 of 1950 transmitted to Congress by the President on May 31, 1950.

SENATE COMMITTEE ON EXPENDITURES IN THE EXECUTIVE DEPARTMENTS,

June 3, 1950. Staff Memorandum No. 81–2–62 Subject: Reorganization Plan No. 27 of 1950—To establish a Department of

Health, Education, and Security. The President on May 31, 1950, submitted to the Congress Reorganization Plan No. 27 of 1950 which provides for the establishment of a new department of Government to be known as the Department of Health, Education, and Security

PROVISIONS OF PLAN NO. 27

To the Department would be transferred all components of the present Federal Security Agency, which would be abolished. Two of the three present major components of FSA, the Public Health Service and the Office of Education, would retain their independent statutory authority within the new department. Their relationship to the Secretary of Health, Education and Security would be the same as that to the Federal Security Administrator at the present time. Functions of the third major component, the Social Security Administration, now vested in the Federal Security Administrator, would be lodged in the new Secretary. No new functions or programs, other than those presently incorporated in the Federal Security Agency,

are provided for by the plan. In addition to the Secretary, the plan provides for an Under Secretary, an Assistant Secretary, an Administrative Assistant Secretary, the Office of Surgeon General, Commissioner of Education, and Commissioner of Social Security, all of whom would be appointed by the President subject to approval by the Senate, except the Administrative Assistant Secretary who would be appointed by the Secretary from the classified civil service, subject to the President's approval. The plan provides that the Surgeon General, Commissioner of Education, and Commissioner of Social Security shall have professional qualifications, experience, and training appropriate to their duties.

All present functions of the Federal Security Administrator are transferred to the Secretary. The plan provides that the Surgeon General shall be the head of the Public Health Service, the Commissioner of Education shall be head of the Office of Education, and the Commissioner of Social Security shall be head of the Social Security Administration. Each officer shall perform such other duties concerning his respective field as may be required by law or as the Secretary may prescribe pursuant to law. All functions of the heretofore existing Surgeon General are transferred to the new Surgeon General and all functions of the heretofore existing Commissioner of Education to the new Commissioner of Education. No transfer of functions of the heretofore existing Commissioner of Social Security is made since it appears that they would be lodged directly in the Secretary himself, on the same basis as they are in the Federal Security Agency Administrator at present. The Secretary is given authority to redelegate functions vested directly in him to any department agency, officer, or employee.

The Secretary is authorized to establish central administrative services for procurement, budgeting, accounting, and other activities common to the Department's several components, provided, however, that such authority does not permit of the transfer from the Surgeon General, the Commissioner of Education, or the Commissioner of Social Security professional or substantive functions vested in them by statute.

The President is authorized to designate any person who was an officer of the Federal Security Agency immediately prior to the taking effect of Reorganization Plan No. 27 to perform the functions of any office provided for by section 2, 3, 4, or 5 of the plan for 60 days, pending the appointment of the first person to be appointed to such office.

COMPARISON WITH REORGANIZATION PLAN NO. 1 OF 1949—TO ESTABLISH A DEPART

MENT OF WELFARE

The major difference between Reorganization Plan No. 1 of 1949 (creating a Department of Welfare), and Reorganization Plan No. 27 of 1950 is that the original plan centered all statutory authority for the proposed Department in the Secretary, while Reorganization Plan No. 27 of 1950 vests statutory authority in the Secretary for only those functions presently vested in the Federal Security Administrator, and retains the independent statutory authority of the Public Health Service and of the Office of Education.

Plan No. 1 of 1949 also provided for the appointment of three Assistant Secretaries of Welfare, whereas plan No. 27 of 1950 provides for an Under Secretary, an Assistant Secretary, and an Administrative Assistant Secretary, the latter to be in charge of staff services as recommended by the Commission on Organization of the Executive Branch of the Government in its report on Social Security, Education, and Indian Affairs. Plan No. 27 of 1950 also prescribes professional qualifications for the Commissioner of Education and the Commissioner of Social Security, which requirement was not contained in plan No. 1 of 1949.

CONFORMANCE WITH RECOMMENDATIONS OF THE HOOVER COMMISSION

Plan No. 27 conforms in general to the Hoover Commission recommendations for the establishment of a cabinet department to administer welfare functions with these important deviations: The Hoover Commission recommended that (a) the Social Security Administration, the Office of Education, and the Bureau of Indian Affairs (now in Department of Interior) be incorporated in a new Department of Social Security and Education; and, (b) the Public Health Service be consolidated, along with all other major Government medical activities, in a proposed United Medical Administration, an independent agency which the Commission recommended be created. Although legislation has been introduced to establish such a United Medical Administration, no action has been taken on the bill (S. 2008) by the Committee on Labor and Public Welfare, to which it was referred.

The Hoover Commission also recommended that the Secretary be given full statutory authority for the department he would head. Other major recommendations made by the Hoover Commission, such as the transfer of the Bureau of Employment Security, the Bureau of Unemployment Compensation and the Employees Compensation Appeals Board from the Federal Security Agency to the Department of Labor have been effectuated by the Congress. (Reorganization Plan No. 2 of 1949 and Reorganization Plan No. 19 of 1950, respectively.)

CONCLUSION

Reorganization Plan No. 27 of 1950, as the President pointed out in his accompanying message, is designed to meet the major objections to Reorganization Plan No. 1 of 1949, disapproved by the Senate. It adheres generally to the approach incorporated in S. 140 (the Taft-Fulbright bill), reported favorably by this committee in the Eightieth Congress, which provided Under Secretaries for Health, Education, and Welfare with independent statutory authority, and prescribed the structural organization of these separate bureaus, including transfer of applicable components thereto, with the functions thereof vested in the appropriate Under Secretary. In its report to the Senate on this bill (S. 140), on June 6, 1947, the Senate Committee on Expenditures in the Executive Departments commented in part (S. Rept. No. 242, 80th Cong.), as follows:

"The primary purpose of the legislation is to elevate the existing health, education, and public-welfare agencies into a departmental status. In order that this purpose be made clear and to insure that no additional authority is granted to the new department under the provisions of the act, the bill was amended to provide that it does not give the new department any functions other than those authorized by previous legislation affecting the Federal Security Agency or any of the components thereof.

"Therefore, it should be clearly understood that the purpose of the bill reported herein in no way adds authority or contemplates additional appropriations in the development of services and facilities in the fields of activity as outlined.”

Plan No. 27, in the opinion of the staff, adheres to these major purposes, and since exhaustive hearings were conducted by the committee on Š. 140 in the Eightieth Congress, and Reorganization Plan No. 1 of 1949, each of which had as its major objective the establishment of a department for Federal health, education, and welfare activities, further hearings would be repetitious and unnecessary, whether or not a resolution of disapproval is filed.

Miles Scull, Jr.,

Professional Staff Member. Approved.

WALTER L. REYNOLDS,

Staff Director.

STAFF MEMORANDUM No. 81-2-67, SENATE COMMITTEE ON EXPENDITURES IN

THE EXECUTIVE DEPARTMENTS, JUNE 23, 1950 Comparison of (A) Reorganization Plan No. 1 of 1949, to establish a Department of

Welfare; 1 (B) Reorganization Plan No. 27 of 1950, to establish a Department of Health, Education, and Security; 2 (C) S. 2060 (substitute) (81 st Cong., 1st sess.), to establish a Department of Health, Education, and Security 3

2

3

Plan No. 1 of 1949

Plan No. 27 of 1950

S. 2060

Sec. 1: Elevates the Federal Secu- Sec. 1: (a) Establishes a De- Sec. 1: Establishes a Departrity Agency to the status of an execu- partment of Health, Education, ment of Health, Education, and tive department of Government to and Security as an executive de- Security, to be administered by be known as Department of Welfare. partment;

a Secretary appointed by the (b) Transfers all agencies, President subject to confirmafunctions, appropriations, per- tion by the Senate at a salary of sonnel, property, records, etc., $15,000 per year. of the present Federal Security

Agency to the Department. Sec. 2: (a) Creates a Secretary of Sec. 2: (a) Creates a Secretary Sec. 2: Creates 3 Under SecreWelfare to be appointed by the Presi- of Health, Education, and Se- taries (for Health, Education, dent subject to confirmation by the curity to be appointed by the and Public Welfare) to be apSena at compensation of $15,000 President with the consent of pointed by the President with per annum, or prevailing compensa- the Senate at the prevailing com- consent of Senate at compensation for Cabinet members;

pensation for Cabinet members; tion of $12,000 per annum. Each (b) Consolidates all functions of (b) Transfers all functions of officer shall perform such duties the Department, of all constituent the Federal Security Adminis- concerning his respective field as agencies thereof and of the Federal trator to the Secretary;

may be prescribed by the SecreSecurity Administrator in the Secre- (c) Authorizes Secretary to tary or required by law. tary of Welfare;

delegate to any officer, employ- Sec. 4: Provides that no powers, (c) Authorizes Secretary to dele- ee or agency any function vested functions, or duties shall be congate to any officer, employee or bu- in him.

ferred upon the Department in reau of Department any function ex

addition to those vested in the cept that of promulgating regulations

Federal Security Agency and/or which may be delegated only to Sec

its constituent units upon the retary or Assistant Secretary.

effective date of the act.
Sec. 3: Creates Under Secretary Sec. 3: Creates an Under Sec-
and 3 Assistant Secretaries to be ap- retary and an Assistant Secre-
pointed by the President subject to tary, each of whom shall be ap-
confirmation by the Senate, each of pointed by the President with
whom shall perform such duties as the consent of the Senate at pre-
Secretary shall direct.

vailing compensation for such
executive positions.

Sec. 4: Creates an Adminis-
trative Assistant Secretary to be
appointed by the Secretary with
the approval of the President
from the classified civil service
at compensation of $14,000 per

annum. Sec. 4: Abolishes Office of Federal Sec. 5: Establishes the offices Sec. 5: (a) Establishes within Security Administrator, Assistant of (1) Surgeon General of Public the Department (1) a Bureau of Federal Security Administrator, and Health Service; (2) Commission- Health; (2) a Bureau of Educa2 assistant heads of Federal Security er of Education; (3) Commis- tion; and (3) Bureau of Public Agency.

sioner of Social Security. Pro- Welfare, each of which, under the
vides that Surgeon General shall immediate supervision of the
be head of Public Health Ser- respective Under Secretaries, shall
vice, Commissioner of Educa- have charge of the indicated
tion, head Office of Education, function.
and Commissioner of

So- (c) Authorizes Secretary to ap-
cial Security, head of Social Se- point advisory committees of
curity Administration, and that qualified persons not otherwise
each officer shall perform such employed by the Government to
other duties concerning his res- consult upon major policies in the
pective field as may be required fields of health, education and
by law or as the Secretary may public welfare.
prescribe pursuant to law.

(d) Authorizes Secretary to Transfers to the Surgeon Gen- delegate to any officer, board, or eral all functions of heretofore employee any functions vested in existing Surgeon General, and to him except that promulgation of the Commissioner of Education regulations may be delegated to all functions of the heretofore an Under Secretary only. existing Commissioner of Edu- Sec. 6: (a) Transfers the Office cation. The Surgeon General, of Federal Security AdminisCommissioner of

Education, trator and the Federal Security and Commissioner of Social Se- Agency and its constituent units curity shall (1) report directly to to the Department the functions the Secretary, (2) possess appro- of which shall be allocated, dispriate professional qualifica- tributed and administered by the tions, experience and training, Secretary subject to sec. 5 above and (3) be appointed by the and subsecs. (b) and (c) which President with the consent of follow: the Senate and except for the (b) The following agencies

Surgeon General receives com- shall be transferred as indicated: See footnotes at end of table, p. 8.

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