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REORGANIZATION PLAN NO. 9 OF 1950

MONDAY, APRIL 24, 1950

HOUSE OF REPRESENTATIVES,
COMMITTEE ON EXPENDITURES IN THE

EXECUTIVE DEPARTMENTS,

Washington, D. C. The committee met, pursuant to call, at 10 a. m., in room 1501, New House Office Building, Hon. William L. Dawson (chairman) presiding.

The CHAIRMAN. Will the committee kindly come to order, please?

The committee has before it for consideration this morning House Resolution 545 on the Reorganization Plan No. 7 of 1950.

(H. Res. 545 and Reorganization Plan No. 7 with the President's message follow :)

[H. Res. 545, 81st Cong., 2d sess.)

RESOLUTION

Resolved, That the House of Representaitves does not favor the Reorganization Plan Numbered 7 transmitted to the Congress by the President on March 13, 1950.

[H. Doc. No. 511, 81st Cong., 2d sess. ]

REORGANIZATION PLAN No. 7 OF 1950

MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING REORGANIZATION

PLAN NO. 7 OF 1950 PROVIDING FOR REORGANIZATIONS IN THE INTERSTATE COMMERCE COMMISSION

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 7 of 1950, prepared in accordance with the Reorganization Act of 1949 and providing for reorganization in the Interstate Commerce Commission. My reasons for transmitting this plan are stated in an accompanying general message.

After investigation I have found and hereby declare that each reorganization included in Reorganization Plan No. 7 of 1950 is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1949.

The taking effect of the reorganizations included in this plan may not in itself result in substantial immediate savings. However, many benefits in improved operations are probable during the next years which will result in a reduction in expenditures as compared with those that would be otherwise necessary. An itemization of these reductions in advance of actual experience under this plan is not practicable.

HARRY S. TRUMAN. THE WHITE HOUSE, March 13, 1950.

REORGANIZATION PLAN No. 7 OF 1950 Prepared by the President and transmitted to the Senate and the House of Representa

tives in Congress assembled, March 13, 1950, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949

1

INTERSTATE COMMERCE COMMISSION

SECTION 1. Transfer of functions to the Chairman.-(a) Subject to the provisions of subsection (b) of this section, there are hereby transferred from the Interstate Commerce Commission, hereinafter referred to as the Commission, to the Chairman of the Commission, hereinafter referred to as the Chairman, the executive and administrative functions of the Commission, including functions of the Commission with respect to (1) the appointment and supervision of personnel employed under the Commission, (2) the distribution of business among such personnel and among administrative units of the Commission, and (3) the use and expenditure of funds.

(b) (1) In carrying out any of his functions under the provisions of this section the Chairman shall be governed by general policies of the Commission and by such regulatory decisions, findings, and determinations as the Commission may by law be authorized to make.

(2) The appointment by the Chairman of the heads of major administrative units under the Commission shall be subject to the approval of the Commission.

(3) Personnel employed regularly and full time in the immediate ofices of Commissioners other than the Chairman shall not be affected by the provisions of this reorganization plan.

(4) There are hereby reserved to the Commission its functions with respect to revising budget estimates and with respect to determining upon the distribution of appropriated funds according to major programs and purposes.

(c) The Director of Locomotive Inspection and the two Assistant Directors of Locomotive Inspection shall perform their functions subject to the direction and control of the Chairman.

SEC. 2. Performance of transferred functionsThe Chairman may from time to time make such provisions as he shall deem appropriate authorizing the performance by any officer, employee, or administrative unit under his jurisdiction of any function transferred to the Chairman by the provisions of section 1 of this reorganization plan.

SEC. 3. Designation of Chairman.-The functions of the Commission with respect to choosing a Chairman from among the Commissioners composing the Commission are hereby transferred to the President.

The CHAIRMAN. We are very happy to have with us a former Member of Congress, during which time he served as Chairman of the Interstate Commerce Commission, Mr. Clarence Lea.

We take great pleasure in having you with us, Mr. Lea, and ask you to join with us in any way you see fit. If you wish to ask questions of the witnesses, we will be happy to have you ask them. If you should wish to testify yourself, we will be glad to take on a former Member of Congress now and then.

Mr. LEA. Thank you very much, Mr. Chairman, for that opportunity.

The CHAIRMAN. As I said, this hearing is called on House Resolution 545. It is a disapproving petition filed on Plan No. 7 submitted to us by the President.

Because the House meets early today, I am going to dispense with the reading of the resolution and the reading of the plan for I believe that everybody here knows what it contains and is familiar with its provision.

As our first witness this morning we are going to call on Mr. Donald D. Conn. He is executive vice president of the Transportation Association of America. He is from Chicago.

a

STATEMENT OF DONALD D. CONN, EXECUTIVE VICE PRESIDENT,

TRANSPORTATION ASSOCIATION OF AMERICA Mr. Conn. Thank you, Mr. Chairman.

The CHAIRMAN. Being from Chicago, I am sure we all appreciate that is a great town.

Mr. CONN. Mr. Chairman, I am executive vice president of the Transportation Association of America, a nonprofit, nonpartisan research and educational institution which is supported by a far-flung membership of 9,000 enterprises engaged in agriculture, industry, retail and wholesale trades, finance, and transportation. The chart of the organization, Mr. Chairman, is here for your use. The CHAIRMAN. Thank you.

. Mr. Conn. The association is unique in that it is the only national organization with a cross-section membership which deals with the economics, the public relations, and the legislative aspects, or the legislation of over-all transportation in the broad public interest. It seeks the determination and adoption of sound national policies for all transportation under which travelers in this country, shippers, and consumers may be assured of adequate, safe, and efficient service at the lowest rates consistent with two things: Fair treatment of labor and an opportunity for the private investor to earn a reasonable return. and, in further qualification, let me emphasize that the association does ont represent nor speak for the particular or self interests of any segment of its membership. It does not promote one form of transportation as against another. Its sole concern is what is best for the economic and social welfare of the entire country and for its national defense. And in conclusion of this qualification let me say that the association complies with the so-called lobbying act by filing with the Clerk of the House and the Secretary of the Senate, a photostatic copy of its ledger journal showing every expenditure of every nature in detail, although less than 5 percent of the total budget is allocated to legislative matters in Washington.

As a public-interest body, therefore, all of our accounts, income and outgo, are open to public inspection. We think the Congress is entitled to all of this information.

Reorganization Plan No. 7 is now before this committee. We are opposed to the adoption of this measure and ask for its veto by this Congress. What I say in support of this plea applies with equal force to plans 13 and 21 which have not yet been scheduled for hearing.

Our reasons are as follows: First, these plans deal with only facets of the whole problem of Federal transportation policy. The transportation of the United States is too important and too vital to the people of this cuntry to be subjected to such piecemeal treatment.

Second, none of these plans should even be considered until the investigations of the House and the Senate Interstate Commerce Committees now under way have been completed and the whole structure of Federal policy overhauled in the light of this Nation's present-day and forseeable economy and for its national defense.

Mr. HOLIFIELD. Mr. Chairman, may I ask a question of the witness, Mr. Conn?

Mr. Conn. Yes, sir.

Mr. HOLIFIELD. You say that an investigation of the over-all transportation is now being made by these committees?

Mr. CONN. Yes, sir.
Mr. HOLIFIELD. How long has it been in process ?

Mr. Conn. The House, as I understand it, has been continuing its investigation for some time and under different resolutions; the Senate investigation, as I understand it, is under way under Resolution 50 now with hearings going on in the Senate.

INTERSTATE COMMERCE COMMISSION

SECTION 1. Transfer of functions to the Chairman.-(a) Subject to the provisions of subsection (b) of this section, there are hereby transferred from the Interstate Commerce Commission, hereinafter referred to as the Commission, to the Chairman of the Commission, hereinafter referred to as the Chairman, the executive and administrative functions of the Commission, including functions of the Commission with respect to (1) the appointment and supervision of personnel employed under the Commission, (2) the distribution of business among such personnel and among administrative units of the Commission, and (3) the use and expenditure of funds.

(b) (1) In carrying out any of his functions under the provisions of this section the Chairman shall be governed by general policies of the Commission and by such regulatory decisions, findings, and determinations as the Commission may by law be authorized to make.

(2) The appointment by the Chairman of the heads of major administrative units under the Commission shall be subject to the approval of the Commission.

(3) Personnel employed regularly and full time in the immediate offices of Commissioners other than the Chairman shall not be affected by the provisions of this reorganization plan.

(4) There are hereby reserved to the Commission its functions with respect to revising budget estimates and with respect to determining upon the distribution of appropriated funds according to major programs and purposes.

(c) The Director of Locomotive Inspection and the two Assistant Directors of Locomotive Inspection shall perform their functions subject to the direction and control of the Chairman.

SEC. 2. Performance of transferred functions—The Chairman may from time to time make such provisions as he shall deem appropriate authorizing the performance by any officer, employee, or administrative unit under his jurisdiction of any function transferred to the Chairman by the provisions of section 1 of this reorganization plan.

SEC. 3. Designation of Chairman.-The functions of the Commission with respect to choosing a Chairman from among the Commissioners composing the Commission are hereby transferred to the President.

The CHAIRMAN. We are very happy to have with us a former Member of Congress, during which time he served as Chairman of the Interstate Commerce Commission, Mr. Clarence Lea.

We take great pleasure in having you with us, Mr. Lea, and ask you to join with us in any way you see fit. If you

wish to ask questions of the witnesses, we will be happy to have you ask them. If you should wish to testify yourself, we will be glad to take on a former Member of Congress now and then.

Mr. LEA. Thank you very much, Mr. Chairman, for that opportunity.

The CHAIRMAN. As I said, this hearing is called on House Resolution 545. It is a disapproving petition filed on Plan No. 7 submitted to us by the President.

Because the House meets early today, I am going to dispense with the reading of the resolution and the reading of the plan for I believe that everybody here knows what it contains and is familiar with its provision.

As our first witness this morning we are going to call on Mr. Donald D. Conn. He is executive vice president of the Transportation Association of America. He is from Chicago.

STATEMENT OF DONALD D. CONN, EXECUTIVE VICE PRESIDENT,

TRANSPORTATION ASSOCIATION OF AMERICA

Mr. Conn. Thank you, Mr. Chairman.

The CHAIRMAN. Being from Chicago, I am sure we all appreciate that is a great town.

Mr. Conn. Mr. Chairman, I am executive vice president of the Transportation Association of America, a nonprofit, nonpartisan research and educational institution which is supported by a far-flung membership of 9,000 enterprises engaged in agriculture, industry, retail and wholesale trades, finance, and transportation. The chart of the organization, Mr. Chairman, is here for your use.

The CHAIRMAN. Thank you.

Mr. Conn. The association is unique in that it is the only national organization with a cross-section membership which deals with the economics, the public relations, and the legislative aspects, or the legislation of over-all transportation in the broad public interest. It seeks the determination and adoption of sound national policies for all transportation under which travelers in this country, shippers, and consumers may be assured of adequate, safe, and efficient service at the lowest rates consistent with two things: Fair treatment of labor and an opportunity for the private investor to earn a reasonable return. and, in further qualification, let me emphasize that the association does ont represent nor speak for the particular or self interests of any segment of its membership. It does not promote one form of transportation as against another. Its sole concern is what is best for the economic and social welfare of the entire country and for its national defense. And in conclusion of this qualification let me say that the association complies with the so-called lobbying act by filing with the Clerk of the House and the Secretary of the Senate, a photostatic copy of its ledger journal showing every expenditure of every nature in detail, although less than 5 percent of the total budget is allocated to legislative matters in Washington.

As a public-interest body, therefore, all of our accounts, income and outgo, are open to public inspection.' We think the Congress is entitled to all of this information.

Reorganization Plan No. 7 is now before this committee. We are opposed to the adoption of this measure and ask for its veto by this Congress. What I say in support of this plea applies with equal force to plans 13 and 21 which have not yet been scheduled for hearing.

Our reasons are as follows: First, these plans deal with only facets of the whole problem of Federal transportation policy. The transportation of the United States is too important and too vital to the people of this cuntry to be subjected to such piecemeal treatment.

Second, none of these plans should even be considered until the investigations of the House and the Senate Interstate Commerce Committees now under way have been completed and the whole structure of Federal policy overhauled in the light of this Nation's present-day and forseeable economy and for its national defense.

Mr. HOLIFIELD. Mr. Chairman, may I ask a question of the witness, Mr. Conn?

Mr. CONN. Yes, sir.

Mr. HOLIFIELD. You say that an investigation of the over-all transportation is now being made by these committees ?

Mr. Conn. Yes, sir.
Mr. HOLIFIELD. How long has it been in process ?

Mr. Conn. The House, as I understand it, has been continuing its investigation for some time and under different resolutions; the Senate investigation, as I understand it, is under way under Resolution 50 now with hearings going on in the Senate.

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