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Message from the President of the United States transmitting Reorganiza-

tion Pian No. 27 of 1950 (H. Doc. 610) --

Reorganization Plan No. 27 of 1950-

Senate Resolution 302_-

Statement of -

Bauer, Dr. Louis H., chairman, board of trustees, American Medical

Association, New York, N. Y.

Baylor, Mrs. Ben B., Jr., State education chairman, Maryland divi-

sion, American Association of University Women, and member,

school board, Montgomery County, Md..

Butler, Hon. Hugh, a United States Senator from the State of Neb-

raska.

Campbell, Wallace J., director Washington Office, Cooperative League

of the USA

Cruikshank, Nelson H., director, Social Insurance Activities, A. F.

of L.

Ewing, Oscar R., Federal Security Administrator
Fahy, Mrs. Jack B., executive director, The American Parents Com-

mittee, Washington, D. C.
Fernbach, Frank, legislative department, CIO, Washington. D. C.
Fulier, Edgar, executive secretary, National Council of Chiei State

School Officerz.

Furstenberg, Dr. Frank F., appearing on behalf, Americans for

Democratic Action, Baltimore, Md..

Gale, Dr. E. Harold, chairman, council on legislation, American

Dental Association, New York, N. Y.

Garvey, Francis, secretary, council on legislation, American Dental

Association, Chicago, Ill-

Hendrickson, Hon. Robert C., a United States Senator from the State

of New Jersey

Kennedy, Miles D., director, National Legislative Commission, The

American Legion, Washington, D. C.

Lawton, Frederick J., Director, Bureau of the Budget-

Markoff, Sol, representing National Child Labor Committee, New

York, N. Y

McDonnald, Angus, assistant legislative secretary, National Farmers

Union...
Pakiser, Louis C., executive director, American Veterans Committee,

Washington, D. C.

Parker, Earl N., assistant general director, Family Service Association

of America, New York

Schiff, Philip, chairman, national public social policies committee of the

American Association of Social Workers ..

Shearon, Mrs. Marjorie, Ph. D., editor and legislative consultant,

Washington, D. Č..

Smith, Hon. H. Alexander, a United States Senator from the State of

New Jersey

Stebbins, Dr. Ernest L., director, Johns Hopkins University School of

Hygiene and Public Health, Baltimore, Md.

Taft, Hon. Robert A., a United States Senator from the State of Ohio

Weitzer, Bernard, legislative representative, Jewish War Veterans of

the United States.

Wickenden, Elizabeth, Washington representative, American Public

Welfare Association..
Young, Dr. Robert S., chairman, legislative committee, Association of

American Physicians and Surgeons, Inc., Columbus, Ohio.

Zook, George F., president, American Council of Education.

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Letters, statements, memorandums, submitted for the record by-

American Parents Committee, Inc., list of officers and directors
Anderson, Constance M., president, Young Women's Christian Asso-
ciation of the United States of American, letter to Hon. John L.

McClellan, June 15, 1950..
Bauer, Dr. Louis H., statement on behalf of American Medical Asso-

ciation.
Bonds, A. B., Jr., State commissioner of education, Arkansas, telegram

to Hon. John L. McClellan, July 6, 1950.
Burney, Dr. L. E., secretary-treasurer, Association of State and

Territorial Health Officers, letter to Hon. John L. McClellan, June

21, 1950.-
Colborn, Fern M., secretary, Social Education and Action, letter to

Hon. John L. McClellan, July 18, 1950.-
Congress of Industrial Organizations, statement before Expenditures

in the Executive Departments in support of Reorganization Plan

No. 27, July 6, 1950.
Crookes, Spencer H., executive director, Child Welfare League of

America, Inc., letter to Hon. John L. McClellan, July 6, 1950----
Fuller, Edgar, executive secretary, National Council of Chief State
School Officers:
Nickell, Vernon L., Superintendent of Public Instruction, State

of Illinois, letter from, July 3, 1950-
Resolutions

Statement.
Halverson, Wilton L., president, Association of State and Territorial

Health Officers, letter to Hon. John L. McClellan, June 28, 1950.--
Hirschfeld, Gerhard, director of the Research Council for Economic

Security, article
Johnson, Robert L., Citizens' Committee for the Hoover Report,

letter to Hon. John L. McClellan, July 6, 1950---
Kennedy, Miles D., director, National Legislative Commission of the

American Legion, statement -
Masaoka, Mike, national legislative director, statement-
McClure, Worth, executive secretary, American Association of School

Administrators, letter to Hon. John L. McClellan, June 29, 1950.--
Meyer, Agnes E., Mount Kisco, N. Y., letter to Hon. John L.

McClellan, July 7, 1950.-
Reorganization Plan No. 1, effective July 1, 1939, under pt. 2, Federal

Security Agency -
Scull, Miles, Jr., professional staff member, approved by Walter
L. Reynolds, staff director, memorandums:
No. 81–2–62, June 3, 1950, re to establish a Department of

Health, Education, and Security---
No. 81–2–67, June 23, 1950, re comparison of-

(A) Reorganization Plan No. 1 of 1949—to establish a

Department of Welfare
(B) Reorganization Plan No. 27 of 1950—to establish a

Department of Health, Education, and Security ---
(C) S. 2060 (substitute) (81st Cong., 1st sess.)—to establish

à Department of Health, Education, and Security -
Stebbins, Dr. Ernest L., director, Johns Hopkins School of Hygiene

and Public Health, statement-
Taylor, John W., president of University of Louisville, statement.-
Wickenden, Elizabeth, Washington representative, American Public

Welfare Association, statement-
Willcox, Alanson W., general counsel, Federal Security Agency,

letter, July 7, 1950, to Miles Scull, Jr.
Young, Dr. Robert E. S., chairman, Legislative Committee of the Asso-

ciation of American Physicians and Surgeons, Inc., statement.--
Zook, George F., president, American Council on Éducation, state-

ment..

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REORGANIZATION PLAN NO. 27 OF 1950

THURSDAY, JULY 6, 1950

UNITED STATES SENATE,
COMMITTEE ON EXPENDITURES IN THE

EXECUTIVE DEPARTMENTS,

Washington, D. C. The committee met, pursuant to notice, at 10 a. m., in room 357, Senate Office Building, Senator John L. McClellan (chairman) presiding.

Present: Senators McClellan, Benton, Ives, Mundt, Smith of Maine, and Schoeppel.

The CHAIRMAN. The committee will come to order.

We are scheduled to commence hearings this morning on Senate Resolution 302, introduced by Senator Taft for himself, Senators Butler, Smith of New Jersey, Bricker, Knowland, Mundt, and Hendrickson, which resolution proposes to disapprove Reorganization Plan No. 27 of 1950.

At this point I wish to have printed in the record the President's message, together with the plan; that is, the message of transmittal of the plan, and the plan, and also the resolution. I shall also ask to have printed in the record at this point two staff memorandums analyzing the Reorganization Plan No. 27 and making comparisons of it with the Hoover Commission's recommendations, and also with Reorganization Plan No. 1 of 1949,

(The documents referred to follow:)

(H. Doc. No. 610, 81st Cong., 2d sess.) MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING GOVERN

MENT REORGANIZATION Plan No. 27 OF 1950, WHICH WILL CREATE A DEPART

MENT OF HEALTH, EDUCATION, AND SECURITY To the Congress of the United States:

I transmit herewith Reorganization Plan No. 27 of 1950, prepared in accordance with the provisions of the Reorganization Act of 1949. This plan will create a Department of Health, Education, and Security, as one of the executive departments of the Government, and will transfer to it the functions and constituent units of the Federal Security Agency. The Department will be headed by a Secretary of Health, Education, and Security, who will be vested with essentially the same duties and authority as are now vested in the Federal Security Administrator.

It is unnecessary to recite again the considerations which make the creation of such a department desirable. As I pointed out in my message transmitting Reorganization Plan No. 1 of 1949, such action has repeatedly been recommended by my predecessors and myself, as well as by others who have studied our Government organization. The scope and importance of the functions of the Federal Security Agency plainly warrant departmental status. I feel that there should be no further delay in effecting this essential reorganization.

The present plan is designed to meet the major objections which were raised in opposition to the 1949 plan when it was disapproved by the Senate. A principal

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criticism of the 1949 plan was that, in centralizing all statutory authority in the Secretary, as recommended by the Commission on Organization of the Executive Branch of the Government, the plan threatened in matters of health and education unduly to subordinate professional judgement to non professional domination. The present plan is not open to this criticism.

Under the present plan, the Surgeon General and the Commissioner of Education retain all the statutory authority and duties now vested in them. The Public Health Service and the Office of Education remain intact as statutory entities with statutory functions. The Surgeon General and the Commissioner of Education will have the same relationship to the Secretary of the new Department that they now have to the Federal Security Administrator.

Furthermore, the present plan provides that the Surgeon General and the Commissioner of Education, along with the Commissioner of Social Security, will report directly to the Secretary. This provision assures that these officials can deal directly with the Secretary in the performance of all matters in their respective fields of responsibility, and the Secretary will thus be in a position to transmit their views to the President and the Congress. It represents an additional safeguard against the fear of the possibility that the views of these officials could be unduly subordinated.

A further difference between this plan and last year's plan is in the name of the new Department. In the minds of some, the title "Department of Welfare, which was used in the 1949 plan, did not adequately comprehend the health and educational functions and implied their subordination. To avoid any possible misunderstanding, the present plan uses the longer and more explicit title, “Department of Health, Education, and Security."

The present plan retains one of the major advantages of the 1949 plan, namely, to permit the Secretary to establish central administrative services for the Department in the interest of efficiency and economy. Thus, he will be able, if he finds such purposes will be served, to centralize for the Department such services as procurement, budgeting, and accounting. This grant of authority is specifically limited so as not to infringe on the substantive professional responsibilities retained by officials within the Department.

Another advantage of the plan is that it provides for a uniform method of appointment for the positions of the Surgeon General, the Commissioner of Education, and the Commissioner of Social Security. Today, two of the three positions are filled by Presidential appointment, while the third is filled by appointment by the Administrator. Though the Surgeon General must be selected from the commissioned Regular Corps of the Public Health Service, no professional qualifications are now prescribed by law for the other two posts. The present plan provides that all three positions be filled by Presidential appointment, subject to Senate confirmation. In each case, appropriate professional qualifications are required and the selection of the Surgeon General from the commissioned corps will become discretionary rather than mandatory.

To the extent that this plan would give departmental status to the agency administering the social-security and educational functions, it is in accord with the one recommendation of the Commission on Organization of the Executive Branch for the creation of a new executive department. I recognize, as I did last year, that the Commission made a further recommendation with respect to the organization of the health functions of the Government. The adoption of this plan will not in any way interfere with further adjustments in the functions of the new Department either by statute or reorganization plan.

After investigation I have found and hereby declare that each reorganization included in Reorganization Plan No. 27 of 1950 is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1949. I also have found and hereby declare that by reason of these reorganizations it is necessary to include in the reorganization plan provisions for the appointment and compensation of the following officers: Secretary of Health, Education, and Security; Under Secretary of Health, Education, and Security; Assistant Secretary of Health, Education, and Security; Administrative Assistant Secretary of Health, Education, and Security; Surgeon General of the Public Health Service; Commissioner of Education, and Commissioner of Social Security. The rates of compensation fixed for these officers, are respective, those which I have found to prevail in respect of comparable officers of the executive branch of the Government.

The reorganization plan will go far toward providing the status and type of organization which the magnitude and importance of the functions now administered by the Federal Security Agency demand. It will facilitate coordination with

other major segments of the executive branch through the granting of Cabinet status. It will provide a more adequate supervisory structure and will contribute to administrative efficiency and economy. Consistent with the Reorganization Act itself, the plan neither provides for any new program nor extends or enlarges existing programs beyond the scope of present legislation.

While it is not practicable at this time to estimate the savings that will accrue from the plan, modest but worth-while economies will result from the factors already cited together with the authority conferred by the plan to improve the administration of the services common to the various agencies of the Department.

The creation of this new Department is long overdue. While I do not believe that the criticisms advanced against plan No. 1 of 1949 were well founded, the present plan has been substantially modified to meet them. I recognize that as a result the present plan falls short of what I would regard, and what the Commission on Organization regarded, as the clearest lines of responsibility and authority within executive departments. Nevertheless, in my judgment, the present plan is still an important step forward toward better organization of the executive branch. It provides an adequate basis for establishing this new executive department. I strongly urge that the Congress allow this reorganization plan to become effective.

HARRY S. TRUMAN. THE WHITE HOUSE,

May 31, 1950.

REORGANIZATION PLAN No. 27 OF 1950

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress

assembled, May 31, 1950, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949

DEPARTMENT OF HEALTH, EDUCATION, AND SECURITY SECTION 1. Creation of Department.—(a) There is hereby established a Department of Health, Education, and Security, hereinafter referred to as the Depart, ment, which shall be an executive department.

(b) All agencies of the Federal Security Agency, together with their respective functions, records, property, personnel, and unexpended balances of appropriations, allocations, and other funds, available or to be made available, and all other records, property, personnel, and unexpended balances of appropriations, allocations, and other funds, available or to be made available, of the Federal Security Agency, are hereby transferred to the Department.

Sec. 2. Secretary of Health, Education, and Security.-(a) There shall be at the head of the Department a Secretary of Health, Education, and Security, hereinafter referred to as the Secretary, who shall be appointed by the President by and with the advice and consent of the Senate and who shall receive compensation at the rate now or hereafter provided by law for the heads of executive departments.

(b) All functions of the Federal Security Administrator are hereby transferred to the Secretary.

(e) The Secretary may from time to time make such provisions as he shall deem appropriate authorizing the performance by any other officer, or by any agency or employee, of the Department of any function of the Secretary.

SEC. 3. Under Secretary and Assistant Secretary of Health, Education, and Security.There shall be in the Department an Under Secretary of Health, Education, and Security and an Assistant Secretary of Health, Education, and Security, each of whom shall (1) be appointed by the President, by and with the advice and consent of the Senate, (2) perform such duties as the Secretary shall prescribe, and (3) receive compensation at the rate now or hereafter provided by law for the Under Secretaries and Assistant Secretaries, respectively, of executive departments. The Under Secretary (or, during the absence or disability of the Under Secretary or in the event of a vacancy in his office, the Assistant Secretary) shall be Acting Secretary and perform the functions of the Secretary during the absence or disability of the Secretary or in the event of a vacancy in the office of Secretary.

Sec. 4. Administrative Assistant Secretary.—There shall be in the Department an Administrative Assistant Secretary of Health, Education, and Security, who shall be appointed, with the approval of the President, by the Secretary under the classified civil service, who shall perform such duties as the Secretary shall prescribe, and who shall receive compensation at the rate of $14,000 per annum.

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