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(Bureau of Internal Revenue)

HEARINGS

:) BEFORE THE

COMMITTEE ON EXPENDITURES IN THE

EXECUTIVE DEPARTMENTS .

HOUSE OF REPRESENTATIVES

EIGHTY-SECOND CONGRESS

SECOND SESSION

ON

H. Res. 494

JANÚARY 18, 21, 22, AND 23, 1952

Printed for the use of the
Committee on Expenditures in the Executive Departments

(0363

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1952

93736

m

COMMITTEE ON EXPENDITURES IN THE EXECUTIVE

DEPARTMENTS

WILLIAM L. DAWSON, Illinois, Chairman CHET HOLIFIELD, California

CLARE E. HOFFMAN, Michigan HENDERSON LANHAM, Georgia

R. WALTER RIEHLMAN, New York PORTER HARDY, JR., Virginia

CECIL M. HARDEN, Indiana
FRANK M. KARSTEN, Missouri

GEORGE H. BENDER, Ohio
JOHN W. McCORMACK, Massachusetts CHARLES B. BROWNSON, Indiana
HERBERT C. BONNER, North Carolina THOMAS B. CURTIS, Missouri
JOHN A. BLATNIK, Minnesota

MARGUERITE STITT CHURCH, Illinois
HAROLD D. DONOHUE, Massachusetts GEORGE MEADER, Michigan
M. G. BURNSIDE, West Virginia

WILLIAM E. Y, Illinois
RICHARD BOLLING, Missouri

ALVIN R. BUSH, Pennsylvania
JOHN F. SHELLEY, California
W. J. BRYAN DORN, South Carolina
SIDNEY A. FINE, New York
WILLIAM C. LANTAFF, Florida
WALTER S. BARING, Nevada

CHRISTINE RAY DAVIS, Chief Clerk
THOMAS A. KENNEDY, General Counsel
WILLIAM A. Young, Staff Director
HERBERT ROBACK, Staff Member

II

HUVIEGL

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I Message from the President of the United States transmitting Reorganiza-

tion Plan No. 1 of 1952, providing for reorganizations in the Bureau of In-

ternal Revenue of the Department of the Treasury, prepared in accordance

with the Reorganization Act of 1949 (H. Doc. 327, 82d Cong., 2d sess.)-- 2

Reorganization Plan No. 1 of 1952_

5

House Resolution 494.--

Statement of-

Curtis, Hon. Carl T., a Representative in Congress from the State of

Nebraska -

213

Dunlap, John B., Commissioner of Internal Revenue; accompanied

by William W. Parsons, administrative assistant to the Secretary
of the Treasury; N. A. Sugarman, assistant head of Management
Staff; J. F. Winkle, Assistant Commissioner for Operations; and
Dr. T. C. Atkeson, head, Management Staff -

79, 109

Kelley, Nicholas, president of the National Civil Service League - 245

King, Hon. Cecil R., a Representative in Congress from the State of
California..

227

Lawton, Frederick J., Director, Bureau of the Budget; accompanied

by William F. Finan, Assistant Director for Administrative Man-

agement; Fred E. Levi and Edward Strait, staff members, Bureau

of the Budget-

67

Lynch, Thomas J., general counsel, Treasury Department

202

McCormick, Robert L. L., director of research, Citizens Committee

for the Hoover Report..

187

Ramspeck, Hon. Robert, Chairman, United States Civil Service Com-

mission

157

Snyder, Hon. John W., Secretary of the Treasury; accompanied by

Ē. H. Foley, Under Secretary of the Treasury; Thomas J. Lynch,

general counsel, Treasury Department; John B. Dunlap, Commis-

sioner, Bureau of Internal Revenue; William W. Parsons, Admin-

istrative Assistant Secretary, Treasury Department; and Edward F.

Bartelt, Fiscal Assistant Secretary, Treasury Department -

7, 36

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

Bender, Hon. George H., a Representative in Congress from the State

of Ohio, excerpt from statement made by Elihu Root in 1920.-

248

Curtis, Hon. Thomas B., a Representative in Congress from the State

of Missouri:

Excerpt from President Truman's message on Reorganization Plan

No. 1 of 1952.-

41

Excerpt from recommendation of the Hoover Commission Report.

130

Excerpt from speech made by Congressman Noah H. Mason --

236

Excerpt from task force report re Treasury Department..

130

Memorandum prepared by Henry Cossard Smith, January 17,

1952, re the proposed reorganization of the Bureau of Internal

Revenue.-

202

Questions asked Commissioner John B. Dunlap, and his answers. 152

Dawson, Hon. William L., a Representative in Congress from the

State of Illinois, and chairman, House Committee on Expenditures

in the Executive Departments, excerpt from Reorganization Act

of 1949.

204

Dunlap, John B., Commissioner of Internal Revenue:

Chart 2-Summary of proposed organization, January 14, 1952.

Chart 3—Proposed organization of Bureau Headquarters, January

14, 1952

100

Chart 4-Proposed organization of District Commissioner's office,

January 14, 1952..

102

Chart 5-Proposed organization of Deputy District Commis-
sioner's office, January 14, 1952---

104
Chart 6—Proposed districts, January 14, 1952-

110

98

Letters, statements, memorandums, etc., submitted for the record by- Pago

Continued

Hoffman, Hon. Clare E., a Representative in Congress from the

State of Michigan:

Excerpt from letter dated January 21 from Roy C. Frank,

solicitor, Post Office Department -

160

Excerpts from letter written by Hon. John W. Snyder to Mayor

Fletcher Bowron, Los Angeles, Calif., February 23, 1950.-.

21

Excerpt from report of the Crime Commission study on organized

crime..

235

Holifield, Hon. Chet, a Representative in Congress from the State of

California:

Communication from Hon. John W. Snyder, re section 4 of

Reorganization Plan No. 1 of 1952.

119

Excerpt from a report of the Joint Committee on Internal Revenue

Taxation, pursuant to section 1203 (b) (6), Revenue Act of 1926,

appointed pursuant to Public Law 147 of the Eightieth Congress 58

Excerpt from Hoover Commission report on general management

of the executive branch -

220

King, Hon. Cecil R., a Representative in Congress from the State of

California, letter from Hon. Herbert Hoover

230

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

Excerpt from House appropriations report (H. Rep. 1532, 80th

Cong., Mar. 9, 1948) -

68

Excerpt from report of the Commission on Organization, re the

Treasury Department, March 1949

68

Statement.

95

Lynch, Thomas J., general counsel, Treasury Department, excerpt

from Reorganization Plan No. 26 of 1950..

206

McCormick, Robert L. L., director of research, Citizens Committee

for the Hoover Report, excerpt from Tennessee Valley Authority

statute.-

198

Ramspeck, Hon. Robert, chairman, United States Civil Service

Commission, letter to Hon. John W. Snyder, January 11, 1952.-- 9
Snyder, Hon. John W., Secretary of the Treasury:

Amount paid the management engineering firm of Cresap,

McCormick & Paget for the study of the Bureau of Internal

Revenue authorized by the Congress -
Chart 1–Present organization and the proposed organization of

the Bureau of Internal Revenue, Department of the Treasury - Faces 7

Letter to Hon. Robert Ramspeck, January 7, 1952-

8

List of statutes which have, inconsistently with Reorganization

Plan No. 26 of 1950, vested functions in officials of the Bureau

of Internal Revenue

32

Names of the members of the Treasury Department's Committee

To Direct Management Studies of the Bureau of Internal

Revenue

38

The management-improvement program of the Bureau of Inter-
nal Revenue.

44

39

2

327

96

REORGANIZATION PLAN NO. 1 OF 1952

(Bureau of Internal Revenue)

FRIDAY, JANUARY 18, 1952

HOUSE OF REPRESENTATIVES,
COMMITTEE ON EXPENDITURES IN THE

EXECUTIVE DEPARTMENTS,

Washington, D. C. The committee met, pursuant to call, at 10:10 a. m., in room 1310, New House Office Building, Hon. William L. Dawson, chairman, presiding.

Present: Representatives Dawson (chairman), Holifield, Lanham, Hardy, Karsten, McCormack, Bonner, Burnside, Bolling, Dorn, Lantaff, Baring, Hoffman, Mrs. Harden, Brownson, Curtis, Mrs. Church, McVey, Bush, and Reed.

Also present: Christine Ray Davis, chief clerk, Annabelle Zue, minority clerk, Thomas A. Kennedy, general counsel, William A. Young, staff director, and Herbert Roback, staff member.

The CHAIRMAN. Will the committee please come to order? There is a quorum present. We have met this morning for consideration of Reorganization Plan No. 1 of 1952.

The law provides that the plan shall become law in 60 days unless a resolution of disapproval is filed within that time, and that if a resolution of disapproval is filed, this committee shall act on the same within 10 days.

I will read to you the message from the President of the United States, and the Reorganization Plan, which is short. To the Congress of the United States:

I transmit herewith Reorganization Plan No. 1 of 1952, prepared in accordance with the Reorganization Act of 1949 and providing for reorganizations in the Bureau of Internal Revenue of the Department of the Treasury.

Mr. BONNER. I would like to have that put in the record without reading it. Will you yield?

The CHAIRMAN. Yes. If that is the will of the committee.

Mr. BONNER. I move that it be inserted in the record of the committee.

The CHAIRMAN. It has been moved that the message of the President and the Reorganization Plan be included in the record and that the present reading be dispensed with.

You have heard the motion. Are you ready to vote?
All in favor let it be known by saying, "Aye”; opposed, "No."

The reading of the message and the Reorganization Plan will be dispensed with and be made a part of the record.

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