Bureau of Employment Security in the Federal Security Agency ad the Federal activities relating to the Nation-wide unemployment compe stem. As a practical matter these functions have proved to be intima d to those of the United States Employment Service. Under existing S claimants for unemployment compensation must register with the Emp Service before they may become eligible for benefits. In consequ all States have assigned the administration of these two programs to agency.

the Employment Service and the unemployment compensation sys ncerned with the worker as a member of the labor force. Both are

I with shortening the periods of unemployment and with promoting y of employment. When the worker becomes unemployed, the alternat ther to assist him in obtaining new employment or to pay him bene roper emphasis is on employment rather than on benefit payments. sis can best be achieved by having the two programs administered in most concerned with the employment process-the Labor Department. reason of the reorganizations made by this plan, I find that the respo s and duties of the Secretary of Labor will be of such nature as to req clusion in the plan of provisions for the appointment and compensa Commissioner of Employment to coordinate the employment service loyment insurance activities within the Department. The plan also that the Federal Advisory Council, a group representative of labor, man and the public, authorized by the Wagner-Peyser Act, shall advise ary and the Commissioner on the operation of both the unemploym nsation system and the United States Employment Service.

WHITE HOUSE, January 19, 1948.

HARRY S. TRUMA

NIZATION PLAN NO. 1 OF 1948, PREPARED BY THE PRESIDENT AND TRANSMI? HE SENATE AND THE HOUSE OF REPRESENTATIVES IN CONGRESS ASSEMB UARY 19, 1948, PURSUANT TO THE PROVISIONS OF THE REORGANIZATION ACT , APPROVED DECEMBER 20, 1945

TION 1. United States Employment Service.--The United States Emp Service is transferred to the Department of Labor and the functions of al Security Administrator with respect to the United States Employm e are transferred to the Secretary of Labor.

2. Bureau of Employment Security.-The Bureau of Employment Secu Federal Security Agency is transferred to the Department of Labor nctions of the Federal Security Administrator with respect to unemploym nsation, together with his functions under the Federal Unemployment! as amended, and as affected by the provisions of Reorganization P ered 2 of 1946 (60 Stat. 1095, 26 U. S. C. 1600–1611)), are transferred cretary of Labor.

3. Performance of transferred functions.-The functions transferred 'ovisions of sections 1 and 2 of this plan (a) shall be performed by ary or, subject to his direction and control, by such officers (including issioner of Employment hereinafter provided for) and agencies of tment of Labor as the Secretary may designate and (b) shall be perform t to such rules and regulations as the Secretary may prescribe.

Department of Labor, for use in connection with th the provisions of this plan, the personnel, property, balances of appropriations, allocations, and other fund available) of the United States Employment Servi Employment Security, together with so much as the the Budget shall determine of other personnel, propert balances of appropriations, allocations, and funds available) of the Federal Security Agency which rela by the provisions of this plan.

[H. Con. Res. 131, 80th Cong., 2d s CONCURRENT RESOLUTION

Resolved by the House of Representatives (the Ser Congress does not favor the Reorganization Plan Num transmitted to Congress by the President on the 19th Passed the House of Representatives February 25 Attest:

Senator BALL. Our first witness this morning Labor David A. Morse, who I believe is here Mr. MORSE. Yes, sir, Senator.

Senator BALL. Do you wish to proceed now ment on the reorganization plan? Mr. MORSE. Yes, sir.

STATEMENT OF DAVID A. MORSE, UNI

DEPARTMENT OF LABO

Mr. MORSE. Mr. Chairman and members of to thank the committee for permitting me t the Department of Labor on Reorganization P you now have under consideration.

Due to unavoidable circumstances the Secret to appear before the committee this morning. (Subsequently the Secretary of Labor add follows:)

Hon. JOSEPH H. BALL,

Chairman of Subcommittee on Labor,

DE

Wa

United States Senate, Washington, D. C. DEAR SENATOR BALL: I wish to express my appre to appear in person and to express my views on Red

васи клate is eiue to carry out ins pопсу шассогианce with

aw, customs, and practices which prevail in that State. have the authority to change by regulation State laws. Since Novem 16, when the public employment offices in the State were changed from o State operaton, the above-quoted policy has been in effect. Since each State has carried out this policy under its State law, customs, ices. No attempt has been made, nor will any attempt be made, to is system of operation. Any statement to the contrary is a falsehood. trict of Columbia Employment Office is part of the Federal Government. ion and tenure of its personnel is in accordance with the requirements deral civil-service law and regulations. This is not true with respect Olic employment offices in the various States. Personnel are selected is of State laws.

rs very truly,

L. B. SCHWELLENBACH.

HORSE. The testimony which I am giving is, I am sure, in ach the views which would have been expressed by Secretary enbach if it had been possible for him to be here. I would like out in addition that if the committee desires, the Secretary vailable tomorrow and will come here to answer any questions any statements that the committee might like him to make. ecretary of Labor appeared before the House Committee on tures in the Executive Departments when that committee was ing this plan, and I should like to submit for the record a the testimony he presented there, if I have the committee's

on.

or BALL. May I ask Mr. Rodgers: We will have copies of se hearings available, will we not?

ODGERS. Yes.

or BALL. We will probably get it more readily from the House than we would by putting it into our own.

ODGERS. It is apparently available now.

or DONNELL. Those hearings were held February 5, 6, and 7 ear?

ORSE. That is right, sir.

or BALL. I think we will get it more quickly in the House We will have those available probably before we can get printed.

[ORSE. Very well, Senator, as long as the record shows the › that it can be obtained from the House hearings.

oodwin, Director of the United States Employment Service, ear before the committee to clear up some of the points of con

were carried out by three small units-Children Immigration and Naturalization, and the Burea The functions of two of these Bureaus were co fare aspects of our working population. Thus, t was concerned with advancing the welfare of ch abuses of child labor. The Immigration and N was concerned with the standards and condition grants were to come to this country, with emphas immigration upon American labor. It is rather that time both the Children's Bureau and the 1 turalization Bureau have been transferred from Labor.

During the past 30 years the Government's r spect to labor has ceased to be merely a concern w iorate distressed conditions among wage earner: population. It is now a well-established princi responsibilities involving labor functions deal nomic force which vitally affects our national w function today must take full account of the fact interrelated and interdependent economic facto ment, labor, and the public interest.

This conception of the Federal Government respect to labor functions is well illustrated by th past few years. It has been recognized that wag conditions of employment cannot be treated a have to be regarded as a part of price structure, portation costs, and a host of other elements wh plex economy. Accordingly, the Federal Govern islation and established agencies to handle man in the labor field. The Federal Government h State system of public employment offices on a has provided for State unemployment compens established machinery for dealing with problems relations, and it has developed standards invol of work. The Employment Act of 1946 provide that it is the continuing policy and responsibility of th use all practicable means to foster and pron terprise and conditions under which there w

* * *

* * *

nder the law employs experts in an пelds with which it deals perts come from all walks of life and include outstanding ils who have had experience in the labor field. The hiring Is is necessary in all departments of the Government. Th epartment employs numerous eminent lawyers affiliated with ofessional organizations. The Department of Commerce competent business executives and the Federal Reserve Sys - bankers. This does not mean, however, that each Departs as a special pleader for the special interest in its field of ility. No thoughtful individual would allege that the Deof Justice is being dominated by the American Bar Associaits actions governed by special interest groups; or that the ent of Commerce operates in behalf of the National AssociaManufacturers or the United States Chamber of Commerce; he Federal Reserve System has its decisions governed by the Bankers Association in behalf of the banking fraternity. ed States Department of Labor, the Departments of Justice merce, and the Federal Reserve Bank are all instruments ment created and governed by the laws of the land and have rated in the public interest.

ar has been expressed that the Department of Labor is biased of labor in the administration of the laws and programs eno it. I submit this fear is without basis in fact. Now the ore you provides for the continuation of the United States ment Service in the Department of Labor where it has been 5 and the transfer of the unemployment compensation funchat Department so that the two programs may operate more y. I think it is significant that in the testimony before the ommittee on the plan no witness cited a single example that rtment of Labor acted in any way other than in an impartial n carrying out its responsibilities. All of the pretended fears ed upon the possibility that some time in the future the Deof Labor might take action that would be biased so as to e group of our population at the expense of another. Such e surely without foundation in view of the fact that both yment compensation and employment service programs are by the State officials of the several States in accordance te laws and, in the case of unemployment compensation, dents established by State courts. But more important is