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ROBERT A. TAFT, Ohio, Chairman

GEORGE D. AIKEN, Vermont

ELBERT D. THOMAS, Utah
JOSEPH H. BALL, Minnesota

JAMES E. MURRAY, Montana
H. ALEXANDER SMITH, New Jersey

CLAUDE PEPPER, Florida

WAYNE MORSE, Oregon

ALLEN J. ELLENDER, Louisiana

FORREST C. DONNELL, Missouri

LISTER HILL, Alabama

WILLIAM E. JENNER, Indiana

IRVING M. IVES, New York

PHILIP R. RODGERS, Clerk

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JOSEPH H. BALL, Minnesota, Chairman
FORREST C. DONNELL, Missouri

JAMES E. MURRAY, Montana
WILLIAM E. JENNER, Indiana

ALLEN J. ELLENDER, Louisiana
II

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131

140

CHRONOLOGICAL LIST OF WITNESSES

Friday, February 27, 1948:

David A. Morse, Under Secretary of Labor.---

James E. Webb, Director, Bureau of the Budget ----

Robert C. Goodwin, Director, United States Employment Service,

accompanied by Edward L. Keenan, Deputy Director, United States

Employment Service-----

Wilbur J. Cohen, Assistant Director, Research and Statistics, Social

Security Administrator, accompanied by R. G. Wagenot, Director,

Bureau of Employment Security-----

Nelson H. Cruikshank, director, social insurance activities, American

Federation of Labor -----

----------------

Oscar R. Ewing, Federal Security Administrator..

Paul Sifton, national legislative representative, United Automobile

Workers, Congress of Industrial Organizations.--------------

Saturday, February 28, 1948:

John D. Davis, commissioner, employment security department,

Olympia, Wash.---

W. O. Hake, commissioner of the Tennessee Department of Economic

Security---------------------------

Robert E. Marshall, director, division of employment security, the

Commonwealth of Massachusetts---

Harry B. Crozier, chairman, employment commission, Austin, Tex...

Michael J. Carroll, director, division of employment security, Jefferson

Ray C. Smith, director, Michigan Manufacturers Unemployment

Compensation Bureau, Detroit, Mich.---

M. William Zucker, administrative assistant, Commerce and Industry

Association of New York-------------------------------------

Herschel C. Atkinson, chairman, social security committee, National

Association of State Chambers of Commerce, Columbus, Ohio ----

Paul F. Gorby, representative, Illinois Chamber of Commerce, Chicago,

Ill.---

Thomas H. Bride, Jr., chairman, Unemployment Compensation

Board of Rhode Island Providence, R. I..

A. R. Findley, secretary-treasurer of Wiebolt Stores, Inc.------

B. A. Krawczyk, Wisconsin State Chamber of Commerce and Wis-

consin Manufacturers Association.--

Wesley K. Lunt, the Chicago Association of Commerce and Industry,

the Associated Employers of Illinois ---

C. G. Caffrey, Washington representative of American Cotton Manu-

· facturers Association, Washington, D. C------

Edward F. Connelly, chairman, social security committee, Associated

Industries of Massachusettts----------

APPENDIX

R. K. Argo, Associated Industries of Alabama_

Frank R. Broadway, Alabama State Chamber of Commerce, Montgomery,

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Marion B. Folsom, United States Chamber of Commerce.-----
Hal E, Harlan, Kansas State Chamber of Commerce-----
B. A. Harrigan, agricultural commissioner, Imperial County, Calif
Illinois Manufacturers Association -------
Elton Kile, National Associated Business Men, Inc.--
F. M. Porter, Mid-Continent Oil and Gas Association...
George A. Starring, Greater South Dakota Association ---
Labor Regulations, United States Employment Service--

Page 223 226 227 228 230

REORGANIZATION PLAN NO. 1 OF 1948

FRIDAY, FEBRUARY 27, 1948

UNITED STATES SENATE,
COMMITTEE ON LABOR AND PUBLIC WELFARE,

SUBCOMMITTEE ON LABOR,

Washington, D.C. The subcommittee met, pursuant to call, at 10 a. m., in the committee room, Capitol Building, Senator Joseph H. Ball presiding.

Present: Senators Ball (presiding), Donnell.

Senator BALL. The committee will come to order. At this point there may be inserted in the record copies of the President's message transmitting Reorganization Plan No. 1 of 1948, and House Concurrent Resolution 131.

(The documents referred to are as follows:)

MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING REORGANIZA

TION PLAN No. 1 OF 1948, UNDER THE REORGANIZATION ACT OF 1945 To the Congress of the Unted States:

I transmit herewith Reorganization Plan No. 1 of 1948, under the Reorganization Act of 1945, which transfers the United States Employment Service and the Bureau of Employment Security to the Department of Labor. The United States Employment Service is now in the Department of Labor by temporary transfer under authority of title I of the First War Powers Act, 1941, while the Bureau of Employment Security is at present a constituent unit of the Federal Security Agency. This plan will place the administration of the employment service and unemployment compensation functions of the Federal Government in the most appropriate location within the executive establishment and will provide for their proper coordination.

I find that this proposed reorganization is necessary to accomplish the following purposes of the Reorganization Act of 1945: (1) To group, coordinate, and consolidate agencies and functions of the Government according to major purposes, (2) to increase the efficiency of the operations of the Government, and (3) to promote economy to the fullest extent consistent with the efficient operation of the Government.

The United States Employment Service was established in the Department of Labor by the Wagner-Peyser Act in 1933. It was later transferred under Reorganization Plan No. I, effective July 1, 1939, to the Social Security Board in the Federal Security Agency. After the creation of the War Manpower Commission, the United States Employment Service was placed under that Commission by Executive Order No. 9247 of September 17, 1942. Shortly after the Japanese surrender the Service was transferred to the Department of Labor by Executive Order No. 9617. Both of these transfers were made under the temporary authority of title I of the First War Powers Act.

The provision of a Nation-wide system of public employment offices, which assists workers to get jobs and employers to obtain labor, belongs under the leadership of the Secretary of Labor. Within our Federal Government the Department of Labor is the agency primarily concerned with the labor market and problems of employment..

The Department of Labor already has within its organization many, but not all of the resources needed for the full performance of this role. It has a broad understanding of working conditions and the factors in labor turn-over. Through

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