When I became Federal Security Administrator, I found that the Public Health Service had 8 regional offices, the Social Security Administration had 10 and the Office of Vocational Rehabilitation had 6. The United States Employment Service, which was transferred to the Federal Security Agency in 1948, had 12. The geographical areas served by the regional offices of the various units all differed. In the same city you might have regional offices of different units in different locations. For a number of years, studies had been conducted by the Administrator's office on a variety of administrative questions. One recommendation resulting from these studies was for the consolidation of field operations throughout the Agency under a single set of Federal Security Agency regional offices. However, notwithstanding the obvious advantages of such consolidation, no steps had been taken to bring it about because of the unwillingness of individual units to cooperate; and there was no power in the Administrator to compel such action. After I became Administrator, the Congress in effect transferred to the Office of the Administrator the regional offices of the Social Security Administration. Using this as a starting point, we undertook negotiations with the other units involved in an endeavor to persuade them to cooperate in the establishment of Agency regional offices. After protracted discussions, a plan was worked out that was satisfactory to the separate units, and Agency regional offices were set up and substantial savings have been effected thereby. In the fiscal year 1950 the integrated regional offices are being operated at a cost which is $581,354, or 8.8 percent below the corresponding expenditures for 1948, the last year in which all Federal Security Agency constituents maintained their own separate regional, district, or field offices. Even in 1949 the reduced cost over 1948 was $135,833, after the absorption of nonrecurring expenditures resulting from relocation of offices and the movement of personnel from their former localities. Furthermore, these figues do not take into account the money value on the additional services being performed in the regional offices as a result of new legislation, new programs, and the established Agency policy of decentralization. I believe, however, that additional savings of many hundreds of thousands of dollars could be shown, if it were possible to determine the value of these services. This I was able to achieve even under my present limited authority. But it was accomplished only with the greatest difficulty and after unnecessarily protracted negotiations. Instead of the head of the organization having the authority to compel such an obvious reform, he had, in effect, to negotiate treaties with the heads of the several constituent units. And as for the treaties thus negiotiated, it is possible for them to be denounced by the heads of the individual units. In conclusion, let me say that I urge that Reorganization Plan No. 1 be allowed to become effective because departmental status will enable us to perform more effectively the functions that Congress has imposed upon us, and also because the "integrated" type of organization provided for in plan No. 1 will enable us to operate more efficiently and to make very substantial savings in the administration of our pro grams. The CHAIRMAN. Thank you very much, Mr. Ewing. A I might make this observation; and you may wish to comment upon it. So far as I have observed, and in my information, one of the principal objections to the creation of this Department stems from the other interests, the educational interests of the country, the doctors, the medical interests of the country, who feel that those agencies, or their particular agency, rate a departmental status of their own. Now, Congress has had this up before in different bills creating a welfare department. Sometimes that name is used, and sometimes it is "welfare, health, and education." But anyway, in consideration of those bills it was perfectly obvious that each department, each service, if the three were to be combined in a department, felt that it should more or less predominate, in having the head of it from their profession. The doctors wanted a doctor at the head of it, and the educational interests wanted the Administrator to be an education man, and the social services wanted a representative of theirs. In that still lies some of the objection to this plan. They still think there should be three separate departments, so that the agency in which each is vitally interested should have departmental status. That is one objection. Another objection is not so much as to the creation of a welfare department, but has to do with a very important issue before the country today with respect to the proposed compulsory national health-insurance program. Those who oppose that program feel that the creation of this Department would simply elevate it to a status that would give it increased force and effect in its propagandization, or in its presentation, whichever we term it, in support of this new legislation to create a compulsory national health insurance program. For that reason there is considerable objection to the establishment of the Department at this time. You have pointed out a number of advantages that would accrue to the Administrator by reason of this line of authority that is created in this plan of reorganization, giving to the Administrator powers that he does not now have. Do you wish to make any statement as to whether those increased powers and authority of the Administrator will be used to their full extent in the promoting of this compulsory health-insurance program? Mr. EWING. Well, Senator, I honestly don't see, on that issue, that there is one single thing The CHAIRMAN. The reason I am asking is because telegrams are pouring in here to this committee, and to me as chairman, that are expressing that apprehension; also to the members, I am advised. And it is something that we have got to consider. Mr. EWING. On that issue, so far as I can see, there is absolutely nothing in the plan that would add in any way to what I might or might not do; or, if someone else were the head of the Agency, what he might or might not do. The CHAIRMAN. In other words, under the plan, you become the Secretary of Welfare; I mean temporarily. Mr. EWING. Yes; until some new man is confirmed. The CHAIRMAN. Assuming that later you were appointed and confirmed, what I am pointing out is that there is apprehension as to the creation of a department, whether it is you or some other individual who becomes the Secretary of it. Of course, it is in the minds of many that you are to become the Secretary of it; and not only in the interim period until an appointment can be made. The apprehension is that by reason of the increased prestige of having Cabinet status and your being a Secretary in the Cabinet, you would naturally be able to bring to bear additional force and persuasion to your advocacy of the compulsory national health insurance program. I just wonder if there are any comments that you would care to make about that; because those are objections that are being presented to this committee, to the chairman, and to other members; and those objections, which have not been presented at the hearing as yet, represent opposition being expressed from all over the country. Mr. EWING. Well, the issue on national health insurance ultimately has got to be decided by the Congress, and no one else. I cannot believe that I would have a bit more prestige in appearing before a committee of Congress as a member of the Cabinet than I have now; because I believe you gentlemen will decide the issue of national health insurance on its merits, whether the individual who heads the present Federal Security Agency is a member of the Cabinet or merely the administrator of an agency. The CHAIRMAN. Then the effect of your statement is that you do not see or concede that you would gain any advantage, as one of the advocates of that legislation, by reason of this service being elevated to a Cabinet status and by reason of your becoming the Secretary of this Department. Mr. EWING. I do not. Senator LONG. Actually, Mr. Ewing, the President of the United States is wholeheartedly behind that program; so if prestige would put it over you could be assured that there is plenty of prestige behind it already. Mr. EWING. He has more prestige than I will ever have. The CHAIRMAN. More than you will have when you are a Cabinet officer. I do think that this should be referred to at this time, because these expressions are coming to us from all over the country. Senator Eastland, do you have any questions? Senator EASTLAND. Do you have now, Mr. Ewing, the authority under the law to delegate the functions of the agencies that are under you? Mr. EWING. No, Senator Eastland; well, I have got to differentiate. There are some of the functions that I referred to there, that have been transferred to the Administrator. The former functions that were at one time in the Social Security Board now rest in the Administrator, with power to delegate. There are some functions which are vested with power to delegate, but there are a great many of these existing functions where the Administrator has nothing in him directly but merely can supervise and direct. I think that is the language. Senator EASTLAND. Which are they? Mr. EWING. I beg pardon? Senator EASTLAND. Would you name those functions? Mr. EWING. Public Health Service, the Office of Education, and the Office of Vocational Rehabilitation. I think that there, without exception, I only have power to supervise and direct. It is only where, by statute, the Administrator vested with powers that he can delegate it; and, as far as I remember, that is only true with respect to the Social Security Board. There may be some others. The CHAIRMAN. Senator Ives? Senator Ives. I have a couple of questions. In the first place, Mr. Ewing, I assume that if you were to become Secretary of Welfare Mr. EWING. I ought to say, Senator, that the President has not told me that he would nominate me. Senator Ives. I say if you were to become Secretary of Welfare, you would in no way relent in your advocacy of this compulsory health program, this national health program, to which the chairman has referred? Mr. EWING. No. I believe in it. Senator Ives. Of course; I do not. I have my own. Mr. EWING. But I think we should thrash out that issue in a democratic way. Senator IVES. The next point I wanted to raise was this: Do you not think that as head of that Department, having under you not only the matter of health and the matter of welfare but also the functions of education insofar as the Federal Government is concerned, you would have at our disposal an instrument or instruments of government whereby you could disseminate information, whereby you could disseminate information, whereby you could, to use the word advisedly, propagandize more effectively than would otherwise be possible? I see you shaking your head. I have had some association with the principles of which I speak over the years in the past, and I happen to know the great power and the great value of what is informal education. And I can see nothing in anybody's way who might be the head of such a department, of utilizing that particular agency in the department dealing with the field of education for the purposes I have in mind. The question I raise in that connection is this: Do you not believe that, with such a department established, the head of that department, whoever he might be, would have at his disposal for that particular purpose far greater governmental machinery, far greater avenues by which information, propaganda, and so forth, could be disseminated, than are now available to any person in the United States outside of the President? Mr. EWING. As to this plan of reorganization, I don't see, Senator Ives, that it would give the Secretary a thing more than the Administrator of the Federal Security Agency has in that respect today. Senator Ives. Well, how much control have you over education today? Mr. EWING. I supervise and direct. I think that is the language of the statute. Senator IVES. How far does that carry you? What do you do in that capacity? Mr. EWING. Well, it is literally supervision and direction. The work of the Office of Education is very largely a professional job. In fact, I would say it is almost 100-percent professional. The administrator's office helps them on their budget and does the housekeeping and various things like that, but certainly I am not a professional educator, and the running of the Office of Education is a thing that should always be left to the professional educators. Senator Ives. Do you have at the present time the authority to instigate programs of education within the agencies under you? Mr. EWING. NO. Senator Ives. Well, you would have under this. Mr. EWING. No. i Senator Ives. If I read this plan correctly, you would have, as a Cabinet official, as Secretary of Welfare. I think you would have that authority. Mr. EWING. Senator, I answered you "No," because there is no statute that gives us that authority now; and I get no more than already exists. That authority is not even in the Office of Education today. It cannot initiate an educational program. Senator Ives. But it conceivably could be if there were a department like this set up. Mr. EWING. If Congress gave us the authority to do so. Senator Ives. You could set up informal education programs without Congress doing it, within the purview of the operation of the department. After all, do not ever forget that informal education is something which sometimes does not take too much money. All you have to do is to get citizen groups established. I know something about that. All you have to do is to get some established and get them to work. You have a functioning agency or group, there, of an informal nature that can do a job. Now, I realize that that is not being done under your control at the present time, or in the education service at the present time. But is there there anything which would prevent such an undertaking being started if a department of this nature were to be established? Mr. EWING. Well, I just do not think we have the authority to do that, even today, under the present law, Senator. Senator Ives. I am not talking about today. I am talking about this. Mr. EWING. If Congress gave us that power- Mr. EWING. No, sir. I do not think we would have that authority. Senator Ives. And you want to say that because you do not think you would have such authority, you would not exercise such authority? Mr. EWING. That is right. The CHAIRMAN. Senator Schoeppel? Senator SCHOEPPEL. Mr. Ewing, if this program goes into effect, either with you in charge or with someone else in charge, whoever it is will have great responsibility and power. We can start with that premise, can we not? Mr. EWING. That is right. Senator SCHOEPPEL. I want to be rather blunt. I have my own ideas, right or wrong, about the medical opportunities which should be afforded the individuals in this country, as well as the educational advantages, operating through the various State agencies that have a responsibility along that line. Now, do you think the head of this department, whether it is you or somebody else, would be more interested in propagandizing the theories that heretofore have been in the headlines of the papers, or in rendering the services attendant upon these various functions? That is what I want to know. Mr. EWING. The operation of a department or of the Federal Security Agency itself takes about 23 out of 24 hours a day. It is perfectly true that I make speeches from time to time when I am requested |