COMMITTEE ON APPROPRIATIONS CLARENCE CANNON, Missouri, Chairman JOHN H. KERR, North Carolina LOUIS C. RABAUT, Michigan DANIEL J. FLOOD, Pennsylvania CHRISTOPHER C. MCGRATH, New York FOSTER FURCOLO, Massachusetts JOHN TABER, New York RICHARD B. WIGGLESWORTH, Massachusetts CHARLES A. PLUMLEY, Vermont ALBERT J. ENGEL, Michigan KARL STEFAN, Nebraska FRANCIS CASE, South Dakota H. CARL ANDERSEN, Minnesota FREDERIC R. COUDERT, JR., New York GEORGE Y. HARVEY, Clerk (II) DEPARTMENT OF LABOR-FEDERAL SECURITY AGENCY APPROPRIATIONS FOR 1951 WEDNESDAY, JANUARY 25, 1950. STATEMENT OF THE ADMINISTRATOR OF THE WITNESSES OSCAR R. EWING, ADMINISTRATOR LEO MILLER, EXECUTIVE ASSISTANT M. A. STEPHENS, BUDGET OFFICER Mr. FOGARTY. Do you have a prepared statement, Mr. Ewing? Mr. FOGARTY. We will be pleased to hear from you at this time, Mr. Ewing. GENERAL STATEMENT Mr. EWING. Mr. Chairman and members of the committee: It is a privilege for me to appear before you to discuss the estimates for funds to operate the Federal Security Agency for its twelfth fiscal year. I will also report to you briefly on the progress and accomplishments of the Agency during the current fiscal year. This committee is aware of the "holding company" type organization which we formerly had in the Federal Security Agency. We have progressed from such organization toward a fairly cohesive group of units; and there has been considerable shifting, reassigning, and transferring since the Agency was constituted in 1939. Many of the changes have resulted in improved efficiency, closer coordination between the several programs that work with the States, and a greater understanding of the role of the Agency in the set-up of the executive departments and agencies. The movement toward a cohesive Agency has not resulted only from such administrative shifts; it has resulted in considerable measure from an increasing desire by the heads of all the units to work together to strengthen the Agency. Without such cooperation what progress we have made would have been extremely difficult, if not impossible. ESTABLISHMENT OF REGIONAL OFFICES One of the most far-reaching changes in the Agency, and for that matter in the Federal Government, was brought about, with the assistance of this committee, by abolishing bureau regional offices and in the establishment of Agency regional offices. Such a field organization (663) for an Agency with so many programs is something new in the Federal Government. Its operation is being closely watched by students of public administration, other Government units, the Bureau of the Budget, and no doubt by this committee and the Congress generally. We have no question as to the soundness of the decision to establish such a field set-up. The field programs of the Agency are now being operated more as if they were a part of a team instead of each operating in its own independent way. We have considerable evidence that the States appreciate the consolidation of the Agency operations in regional offices-and this appreciation will grow as our effectiveness increases. It is now possible for governors and other State officials to deal with one office instead of several. This is not only a convenience but improves the effectiveness of our joint operations. We have not yet finished our physical consolidation of field activities, chiefly because of space difficulties. We hope to do so within the next several months. MANAGEMENT-IMPROVEMENT CAMPAIGNS As for headquarters activities, we continue to strive for better and more economical operations, believing that wherever management can be improved with or without a reduction in cost the improvement should be undertaken without delay. For example, formalized management-improvement campaigns are under way in all of the units which will be coordinated by the Administrator's Office so that techniques found profitable in one unit can be shared with other units where practicable. The Office of the Administrator and the Office of the Executive Assistant in particular, as well as the various units, have been concerned with management-improvement programs as a normal part of good administration. The first report of the Hoover Commission, Executive Order No. 10072 and title X of Public Law 429, of course, have given added impetus to our efforts in this direction. Among the specific activities undertaken is a study of procurement, storage, and issue of all common supplies by the Agency and its constituent units, especially those located in the two Federal Security Buildings here in Washington. We have centralized procurement in the regional offices for all the participating bureaus. We believe it desirable to move promptly in the direction of centralizing procurement in the headquarters office, and we hope to do so in the coming year. This would help to round out the consolidation of activities undertaken during the past 2 years, which included centralizing library services, much of the information services, and transportation services, communications, and distribution of mail and supplies. Rising costs have added to our problems this year. We are absorbing a major portion of the increased cost of transportation and per diem and an appreciable proportion of increased pay costs under Public Law 429. REORGANIZATION PLANS During the last year the President proposed two reorganization plans which were of particular interest to the Agency. Reorganization Plan No. 2 of 1949 transferred the Bureau of Employment Security to the Labor Department. That transfer was accomplished as of October 30, 1949. Reorganization Plan No. 1 of 1949, proposing departmental status for the Agency, was disapproved by the Senate. I believe this was a mistake. Departmental status for the Agency is essential if we are to achieve maximum improvement of our program and if we are to have better coordination and economical administration of them. INCREASED RESPONSIBILITY OF ASSISTANT ADMINISTRATOR FOR PROGRAM I should like to say a word about another facet of administration and our attempts to improve it through cooperative action by the units, with leadership and coordination by the Administrator's Office. I refer to the Office of the Assistant Administrator for Program. The overwhelming proportion of our costs is program costs. Many additions or changes in these programs are often suggested by the units. The Congress through innumerable legislative proposals also suggests changes. Because of the close relationship between many of our programs, different units have views-or should have views-about programs directly affecting another unit. It is our firm belief that joint thinking by interested units and the Administrator's Office about our program is indispensable to good management, and that the Administrator must have a solid foundation of knowledge about the various program proposals if he is to meet his responsibilities adequately. With very limited resources we have made considerable progress along these lines, but we have much further to go. With your permission, I will now comment briefly about some of the specific items occurring in the bill. The heads of the different units have appeared before the committee to present the details of their operations, and their estimates. Mr. SCRIVNER. Mr. Chairman, I see no useful purpose in having the Administrator read the rest of these some 23 pages, because for the greater part we have already had a justification of the appropriation made; therefore, I see no use in having it all read by Mr. Ewing and suggest that the rest of it be extended in the hearings at this point. Mr. FOGARTY. I think that will be all right, unless, Mr. Ewing, you have some particular emphasis you wish to place on some item in the appropriations coming under your supervision. We have heard all of the Public Health and most of the first 10 or 11 pages of this. Mr. McGRATH. I quite agree with my colleague, Mr. Scrivner, but I think we should reserve the right to read this. Mr. SCRIVNER. I will withdraw the request. I notice that this is about the same statement as Mr. Thurston presented to us. Mr. McGRATH. I think we should reserve the right to do that. |