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Mrs. HOBBY. No; I have no such plan.

Senator HUMPHREY. In other words then, the statement of the Senator "I'm not talking about the top jobs, but debris which Oscar Ewing accumulated over the years” would not mean the terms which you outline in terms of personnel?

Mrs. HOBBY. What I have outlined is an Under Secretary, two Assistant Secretaries, and with the hope that certain jobs could be made schedule A.

Senator HUMPHREY. That is all.

Senator SMITH of Maine. I have in my hand a report of the board of trustees on reorganization Plan No. 1 of 1953, as of March 14, 1953, and I ask you unanimous consent that the paragraph marked be included between the questions of Congressman Holifield and Senator Humphrey, as it pertains to the particular discussion Congressman Holifield had with Mrs. Hobby.

Mr. HOLIFIELD. I would like to know exactly what that is if it has something to do with what I said.

Senator SMITH of Maine. It states: The board of trustees, after a careful study of the policy of the American Medical Association with respect to the administration of health activities in the executive branch of the Government, and after studying the reorganization plan for elevation of the Federal Security Agency to Cabinet status submitted by President Eisenhower to the Congress, finds that Reorganization Plan No. 1 of 1953 provides for a special assistant to the Secretary for Health and Medical Affairs. This provision is a step in the right direction, which should result in centralized coordination under a leader in the medical field of the health activities of the proposed Department. Health, therefore, is given special position. The proposed plan, properly administered, will permit more effective coordination and administration of the health activities of the new Department without interference or control by other branches.

Previous attempts to raise the Federal Security Agency from an independent agency to the level of an executive department have been opposed by the association because the plan did not meet these aims.

It simply clarified the subject you were talking about.
Mr. HOLIFIELD. I have no objection to the insertion.

Senator Smith of Maine. Without objection, it will go into the record at the point indicated.

(Exhibit D is made a part of the record as follows:)

EXHIBIT D

REPORT OF BOARD OF TRUSTEES ON REORGANIZATION PLAN No. 1 OF 1953–PRESENTED

BY DWIGHT H. MURRAY, M. D., CHAIRMAN, TO HOUSE OF DELEGATES, MARCH 14, 1953

The house of delegates of the American Medical Association has for nearly 80 years been on record as favoring an independent Department of Health in the Federal Government. The reason for this stand has been that the house has felt that health and medicine should be given a status commensurate with their dignity and importance in the lives of the American people, and that they should be completely divorced from any political considerations.

The board of trustees, after a careful study of the policy of the American Medical Association with respect to the administration of health activities in the executive branch of the Government and after studying the reorganization plan for elevation of the Federal Security Agency to Cabinet status submitted by President Eisenhower to the Congress, finds that Reorganization Plan No. 1 of 1953 provides for a special assistant to the Secretary for Health and Medical Affairs. This provision is a step in the right direction which should result in centralized coordination under a leader in the medical field of the health activities of the proposed Department. Health, therefore, is given a special position. The proposed plan, properly administered, will permit more effective coordination and administration of the health activities of the new Department without interference or control by other branches.

Previous attempts to raise the Federal Security Agency from an independent agency to the level of an executive department have been opposed by the association because the plan did not meet these aims.

Inasmuch as Federal health benefits and programs are established by the Congress, an administration bent on achieving the nationalization of medicine cannot reach that goal except with the support of Congress. Therefore, an organizational plan through which Federal health activities are administered, although important, is not nearly so vital an issue as the policies adopted by the Congress of the United States.

The board of trustees recommends that the house of delegates reaffirm its stand in favor of an independent Department of Health but that it support the Reorganization Plan No. 1 of 1953 as being a step in the right direction; that the American Medical Association cooperate in making the plan successful and that it watch its development with great care and interest.

It should be understood, however, that the association reserves the right to make recommendations for amendment of the then existing law or to press for the establishment of an independent Department of Health if the present plan does not, after a sufficient length of time for development, result in proper advancement in and protection of health and medical science and in their freedom from political control.

Senator SMITH of Maine. Mr. Hoffman,
The CHAIRMAN. Mr. Poff!
Mr. Hillelson?

Mr. HILLELSON. Yes, I have some questions. Do you expect to have a substantial savings in your new Department for the 1953–54 fiscal year!

Mrs. HOBBY. I am sorry, sir; I cannot hear you. .

Mr. HILLELSON. I say, do you expect to have a substantial saving in expenditures in the 1954 budget? I know that in preparing the budget each year that the Secretary must have assistance of the people in the department before submitting the budget, and if you are to have a substantial saving I am wondering if in the preparation of your budget you will use the same help and

people who prepared the budget for 1954.

Mrs. HOBBY. I had used some of the same people in the Agency and I had some help from the Director of the Agency.

Senator SMITH of Maine. Mr. Hoffman?
The CHAIRMAN. Mr. Fountain?
Mr. FOUNTAIN. No questions.
The CHAIRMAN. Mr. Mollohan?
Mr. MOLLOHAN. No questions.
The CHAIRMAN. Mr. Holtzman?

Mr. HOLTZMAN. No questions except to wish Mrs. Hobby the very best.

Mrs. HOBBY. Thank you.
The CHAIRMAN. Mr. Brooks?

Mr. BROOKS of Texas. Of course we have known you for a long time and realize that you have great ability and capacity for making decisions as reflected by your leadership in the Women's Auxiliary Corps, and I would like to strip some of the extraneous matter from this question, but certainly do not intend to embarrass you; do you feel that this reorganization plan is basically and substantially about the same as that proposed by the former Chief Executive?

Mrs. HOBBY. Was that the 1950 plan?

Mr. BROOKS of Texas. Ma'am?
Mrs. HOBBY. Is that 1950 ?
Mr. BROOKS of Texas. Yes.

Mrs. HOBBY. I am really not an expert, but two things come to my mind as being different, and one was the provision for the Special Assistant to the Secretary for Health and Medical Affairs, and the other was the provision that the Commissioner of Social Security should be a Presidential appointee.

Mr. BROOKS of Texas. With those exceptions then, it seems to be about the same?

Mrs. HOBBY. I really do not think I am competent to answer that, but from a very cursory reading, they seem very much alike.

Mr. BROOKS of Texas. What has been your personal position as regards the reorganization of the Federal Security Agency, as a private citizen and formerly as copublisher of the Houston Post of Houston, Tex.?

Mrs. HOBBY. Well, I will have to go back a minute, Mr. Brooks. I had the good fortune and privilege of serving as a consultant on the Hoover Commission, and I was familiar with the recommendation that the Hoover Commission came up with on the Federal Security Agency, and later as a member of the board of directors of the citizens committee to implement the Hoover report in the United States. I did support the elevation of the Federal Security Agency to Cabinet status, and as an editor.

Mr. Brooks of Texas. If the chairman will permit, I would like to ask another question. Your support, of course, was apparently under both the Democratic and Republican administrations and I would like to ask, do you still sincerely feel that this agency which is dealing particularly with human beings, that is, the aged and the needy, and with the education of our people, do you still feel that this plan will promote efficiency and economy in the operation of the Federal Security Agency?

Mrs. HOBBY. Yes, Mr. Brooks, I do. I am convinced that we can have greater efficiency and I believe, in time, economy. I think I might be in a position of misleading the members of this committee if I were to tell you in advance what I could do. I haven't been there long enough. I do not pose as an expert. I do know from my business operations what you can do when you strengthen an organization and get down to intensified work and that I have had some experience with, and so I would hope that my business experience could carry over into this great program.

Mr. BROOKS of Texas. I have no further questions.

Senator SMITH of Maine. It is true, isn't it, that if there is efficiency, less duplication and overlapping in the agencies there will be economy?

Mrs. HOBBY. I think so.
Senator SMITH of Maine. Mr. Hoffman?
The CHAIRMAN. Mrs. St. George!
Mrs. ST. GEORGE. No questions.
The CHAIRMAN. Mr. Brownson?

Mr. BROWNSON. I have no questions but I would like to ask whether this outline of the functions of the Federal Security Agency which was provided to some of us by the Agency has been included in the record! If it has not, I would like to ask unanimous consent that it

be included in the record at this point as being helpful to the Members of the House and the Senate.

Senator Smith of Maine. If there is no objection, it will be included in the report of the hearing.

(The statement of functions referred to above is as follows:)

FEDERAL SECURITY AGENCY, STATEMENT OF FUNCTIONS MARCH 9, 1953

INTRODUCTION

The Federal Security Agency was established in 1939 in the interest of coordinating and making more effective Government services relating to the general welfare of individuals and their families.

The Federal Security Agency is in direct contact with more Americans than any other department or agency of the Government. The Agency is responsible for the disbursement annually of over $4 billion. Of the Agency's total budget, 93.3 percent of the appropriations go out as grants-in-aid to the States and Territories ; 6.7 percent is for programs directly administered by FSA and for operations. It has 37,500 employees and over 800 points of contact with the public. These points range from regional offices to the person-to-person relationship between the doctor in a United States marine hospital and an outpatient. The implications of the Agency's programs reach every individual in the United States.

To provide efficient operations in the related fields of health, education, and economic security, the Federal Security Agency has the following constituent units :

Public Heathl Service, consisting of the National Institutes of Health,

Bureau of Medical Services, Bureau of State Services, and Freedmen's

Hospital. Office of Education. Social Security Administration, consisting of the Bureau of Old-Age and

Survivors Insurance, Bureau of Public Assistance, Children's Bureau, and

the Bureau of Federal Credit Unions. Food and Drug Administration. Office of Vocational Rehabilitation. St. Elizabeths Hospital. The Federal Security Agency is also responsible for Federal functions per

taining to Howard University, American Printing House for the Blind, and Columbia Institution for the Deaf.

OFFICE OF THE ADMINISTRATOR

The Federal Security Administrator is responsible for the direction and supervision of programs and activities throughout the Agency. To carry on these duties, the Office of the Administrator includes six units specifically designated to perform certain functions for the Administrator.

The Office of Administration supervises the managerial functions necessary to the operation of the entire Agency, including planning, budget and finance, personel operations, service operations, library services, and security.

The Office of the General Counsel provides all legal service required by the various constituents of the Agency.

The Office of Publications and Reports supervises and coordinates the publications and informational activities of the Agency.

The Office of International Relations is responsible for coordinating Federal Security Agency international activities within the Agency and with other Federal agencies.

The Office of Federal-State Relations is responsible for recommending to the Administrator policies and procedures relating to grant-in-aid programs and Federal-State relations in general.

The Office of Field Services is responsible for the general supervision of all field activities of the Agency; for the audit of grant-in-aid funds allotted to the States ; for maintaining standards for State personnel merit systems under Agency grant-in-aid programs; and for the direction of surplus-property-utilization activities. Ten Agency regional offices are charged with the responsibility for carrying out Agency policies in the field.

PUBLIC HEALTH SERVICE

The Public Health Service has evolved from the Marine Hospital Service, established by Congress in 1798 "for the relief of sick and disabled seamen.' Originally administered by the Treasury Department, the Service was transferred to the Federal Security Agency in 1939. Its chief activities are: Adminis.tration of public health programs in cooperation with State and Territorial agencies, as well as with other Federal agencies; medical and hospital care of special groups as provided by Federal law; and research in medical and related sciences. Operation of the United States Public Health Service hospitals continues an important function of the Public Health Service, but it is only one of many responsibilities which have gradually established it as the principal Federal agency concerned with the Nation's health.

Merchant seamen, coastguard men, and other legal beneficiaries receive hospitalization, medical and dental care, and preventive health services through 23 hospitals and over 100 outpatient clinics and offices. These hospitals include tuberculosis sanitaria at Fort Stanton, N. Mex., and Manhattan Beach, Brooklyn, N. Y., a hospital for treatment of leprosy at Carville, La., and hospitals for mentally ill beneficiaries at Fort Worth, Tex., and Lexington, Ky. These last two hospitals also treat Federal prisoners who are narcotic addicts, as well as a limited number of voluntary patients from the general population.

Health programs of several Federal agencies are staffed by personnel assigned from the Public Health Service. Physicians, dentists, and other professional personnel of the Service provide medical services for all Federal prisons and reformatories. Officers of the Public Health Service also staff the medical services of the Coast Guard at their shore stations and aboard vessels, including the Air-Rescue Service. Service personnel administer the public-health and medical programs of the Indian Service.

The Service conducts scientific research into the cause, control, and prevention of disease. In this work, it maintains several laboratories, chief among which are those of the National Institutes of Health at Bethesda, Md., which include the National Cancer Institute, National Heart Institute, National Institute of Arthritis and Metabolic Diseases, National Institute of Dental Research, National Institute of Mental Health, National Institute of Neurological Diseases and Blindness, and National Microbiological Institute. Upon recommendation of advisory councils of non-Federal experts, financial grants are made for research projects conducted by universities, by hospitals, by individuals, and by private and public institutions. Research fellowships and clinical traineeships are also awarded to qualified applicants. Through the Laboratory of Biologics Control, the Service licenses the manufacture and interstate sale of all serums, tovins, and similar products.

In 1947 Congress authorized the construction of a clinical center at the National Institutes. The center—to open in April 1953—will include a 500-bed hospital and laboratory facilities designed and equipped especially to carry on in one structure both fundamental and clinical research in cancer, heart diseases, mental and nervous diseases, and other important causes of disability and death. Patients will be referred to the center by special arrangement with physicians and hospitals on the basis of the problems under study.

The Public Health Service is responsible for foreign and interstate quarantine to guard the Nation against the introduction of dangerous communicable diseases from abroad and their spread between the States. It conducts medical examinations for the Immigration Service of persons arriving from foreign countries, and it also makes medical examinations of prospective immigrants at United States consulates abroad. At the Communicable Disease Center, Atlanta, Ga., methods of controlling diseases spread by insect and rodent carriers and other environmental factors are studied, developed, and improved.

Rapidly increasing in importance in recent years has been the assistance given to States in the development and improvement of public-health services. This includes consultation, technical assistance, financial grants to States, and temporary assignment upon request of professional personnel to the States. Financial grants-in-aid are made for the control of cancer, heart diseases, tuberculosis, venereal disease; for programs of mental health and control of water pollution caused by industrial wastes; for surveying hospital needs and constructing hospitals and health centers; and for a specific program of emergency disease and sanitation investigation and control in Alaska.

The Division of Sanitation is responsible for administering environmental health activities relating to milk and food, shellfish, trains, busses, airplanes, and vessels, as well as municipal and rural sanitation. In addition, this Division

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