Mr. Philip N. Brownstein is now serving as an Assistant Secretary for Mortgage Credit and Federal Housing Commissioner; Mr. Charles M. Haar is now serving as an Assistant Secretary for Metropolitan Development; and Mr. Dwight A. Ink is now serving as the Assistant Secretary for Administration. The office of the General Counsel has not yet been filled.

Mr. Ink has been given the duties, customarily assigned to assistant secretaries for administration, of being the principal adviser to the Secretary with respect to administrative management, including budget; organization, methods and directives systems; management of automatic data processing; accounting, audit, and financial management; personnel administration; and general administrative services.

An attachment to this statement summarizes the responsibilities of the two Assistant Secretaries (for Mortgage Credit and for Metropolitan Development) who have previously assumed office. The attachment also indicates organizational units within their offices.

Mr. Hummel's sphere of responsibility will relate primarily to urban renewal and housing assistance (other than private, mortgage credit aids).

He will supervise organizational units concerned with the following programs: 1. Slum clearance and urban renewal under title I of the Housing Act of 1949, including rehabilitation grants, general neighborhood renewal plans, community renewal plans, code enforcement projects and demolition projects;

2. loans for rehabilitation under section 312 of the Housing Act of 1964; 3. the low-rent public housing program under the United States Housing Art of 1937;

4. the college housing loan program under title IV of the Housing Act of 1950; 5. loans for housing for the elderly or handicapped under section 202 of the Housing Act of 1959;

6. grants for neighborhood facilities under section 703 of the Housing and Urban Development Act of 1965; and

7. grants, under sections 702(a), 705 and 706 of the Housing Act of 1961, for the acquisition and development of open space land and for urban beautification and improvement where the programs serve central city or built-up areas (as distinct from programs involving open spaces in outlying parts of metropolitan areas).

This Assistant Secretary will also have responsibilities for housing relocation standards and workable program standards administered by the Department. All these duties related to specific, ongoing programs administered under detailed criteria incorporated by the Congress in the enabling legislation.

Mr. Taylor's sphere of responsibility will involve intergovernmental cooperation and coordination. He will assist the Secretary in carrying out responsibilities for achieving maximum coordination of the programs of the Department with those of other Federal departments and agencies and with those of the States and localities. In addition, he will administer programs of study, research, demonstrations, and training in housing and urban development fields of general interest to the entire Department. Many of his program responsibilities are subject to express legislative requirements that they involve new approaches to solving housing and urban development problems.

More specifically, Mr. Taylor will administer the following activities:

1. The urban renewal demonstration program under section 314 of the Housing Act of 1954;

2. the low-income housing demonstration program under section 207 of the Housing Act of 1961;

3. the demonstration cities program now pending before this Committee, whenever enacted;

4. studies, research, and demonstration projects for the development and improvement of comprehensive planning techniques under section 701 (b) of the Housing Act of 1954;

5. surveys of State and local public works planning under section 702 (f) of the Housing Act of 1954;

6. studies relating to open space land and urban beautification under section 708 of the Housing Act of 1961 (as distinct from the administration of grants for this purpose);

7. programs of general housing research and urban studies (including a study of housing, building, and zoning codes) authorized by a number of enabling acts; and

8. the Federal-State training program and the city planning and urban studies fellowships program, when activated as contemplated by the Housing Act of 1964.

In addition, this Assistant Secretary will provide informational materials to the Department's Regional Offices, and will also administer a clearing house informational service for States, metropolitan areas, counties and urban areas generally.

ATTACHMENT

ASSISTANT SECRETARY FOR MORTGAGE CREDIT AND FEDERAL HOUSING COMMISSIONER (MR. BROWNSTEIN)

The Assistant Secretary for Mortgage Credit and Federal Housing Commissioner shall be the principal adviser to the Secretary with respect to programs involving the private mortgage market He shall be responsible to the Secretary for the administration of the programs and functions assigned to the Federal Housing Administration, and assist in coordinating them with the activities of the Federal National Mortgage Association.

DEPUTY ASSISTANT SECRETARY FOR MORTGAGE CREDIT

The Deputy Assistant Secretary for Mortgage Credit shall assist the Assistant Secretary in the performance of his duties and responsibilities and act for him in his absence.

FEDERAL HOUSING ADMINISTRATION

The Federal Housing Administration shall carry out the following programs of the Department:

Programs of home improvement loan, mortgage, and land development insurance authorized by the National Housing Act.

All functions not otherwise assigned with respect to the rent supplement program authorized by section 101 of the Housing and Urban Development Act of 1965.

Disposition (including management and liquidation of Government-owned mortgages) of Government-owned property at Richland, Washington; Los Alamos, New Mexico; and Oak Ridge, Tennessee, under the Atomic Energy Community Act of 1955 as amended and Executive Orders 10657 and 11105.

FEDERAL NATIONAL MORTGAGE ASSOCIATION

The Federal National Mortgage Association shall carry out the following programs of the Department in accordance with the policies of the Board of Directors of the Association and with the Federal National Mortgage Association Charter Act, as amended:

The provision of supplementary assistance to the secondary market for insured and guaranteed mortgages, under Section 304 of the FŇMA Charter Act.

The provision of special assistance in the financing of eligible types of mortgages, under Section 305 of the FNMA Charter Act.

The management and liquidation of the portfolio of mortgages held by FNMA under Section 306 of the FNMA Charter Act, including management of the Government Mortgage Liquidation Trust.

The chief executive officer of the Federal National Mortgage Association shall be the President of the Association, who shall supervise the activities of the Association in consonance with the policies established by the Board of Directors of the Association.

ASSISTANT SECRETARY FOR METROPOLITAN DEVELOPMENT (MR. HAAR) The Assistant Secretary for Metropolitan Development shall be the principal adviser to the Secretary on programs of metropolitan development, and shall be responsible to the Secretary for the administration of these programs. He shall direct and coordinate, on behalf of the Secretary, the Department's activities with respect to these programs, and shall supervise the following principal staff and organization units:

DEPUTY ASSISTANT SECRETARY FOR METROPOLITAN DEVELOPMENT

The Deputy Assistant Secretary for Metropolitan Development shall assist the Assistant Secretary in the performance of his duties and responsibilities and act for him in his absence.

OFFICE OF PLANNING STANDARDS AND COORDINATION

The Office of Planning Standards and Coordination, headed by a Director, shall develop policies, standards, and procedures for and provide technical advice and guidance with respect to the conduct of the following programs and activities of the Department:

The program of urban planning assistance under Section 701 of the Housing Act of 1954, as amended (except the conduct of studies, research, and demonstration projects under Section 701(b)).

The program of advances for public works planning under Section 702 of the Housing Act of 1954, as amended (except the conduct of surveys of public works planning under Section 702(f)).

The administration of planning requirements affecting the various programs of the Department.

The stimulation and coordination of metropolitan area planning.

The Office shall also perform necessary staff functions with respect to planning for

The proposed program of supplementary grants to assist in planned metropolitan development.

LAND AND FACILITIES DEVELOPMENT ADMINISTRATION

The Land and Facilities Development Administration, headed by a Director, shall develop policies, standards, and procedures for and provide technical advice and guidance with respect to the conduct of the following programs of the Department:

Grants for basic water and sewer facilities under Section 702 of the Housing and Urban Development Act of 1965.

Grants for advance acquisition of land under Section 704 of the Housing and Urban Development Act of 1965.

Grants for the acquisition and development of open-space land under Section 702 of the Housing Act of 1961, as amended, other than central city open-space.

Public Facilities Loans under Title II of the Housing Amendments of 1955, as amended (except the provision of technical advisory services under Section 207).

Grants for urban beautification and improvement outside the central city, under Section 706 of the Housing Act of 1961, as amended.

Management and liquidation of the Department's responsibilities under the following programs: Alaska Public Works Act, defense community facilities, prefabricated housing loans, war public works under Title II of the Lanham Act; Public Agency Loans (RFC); Alaska Housing Act; Public Works Acceleration Act of 1962; and Sections 7 and 8 of the Area Redevelopment Act of 1961 and delegations of authority from the Secretary of Commerce.

URBAN TRANSPORTATION ADMINISTRATION

The Urban Transportation Administration, headed by a Director, shall develop policies, standards, and procedures for and administer, under the direction of the Assistant Secretary, the following programs of the Department which are not decentralized to the Regional Offices:

Loans and grants for mass transportation under the Urban Mass Transportation Act of 1964.

Mass transportation demonstration, research and development projects under the Urban Mass Transportation Act of 1964.

Administration and liquidation of urban mass transportation loans and demonstration grants under the Housing Act of 1961.

OFFICE OF TECHNICAL SERVICES

The Office of Technical Services, headed by a Director, shall develop policies, standards, and procedures for and provide technical advice and guidance with respect to the conduct of the following programs for which construction and technical services are provided by the Department of Housing and Urban Development to the Department of Health, Education and Welfare:

The school construction program under Public Law 815, 81st Congress, as amended.

The academic facilities program authorized by the Higher Education Facilities Act of 1963, as amended.

The CHAIRMAN. We have one other confirmation, Mr. Francis M. Wheat.

This is a reappointment of a man who has given very satisfactory service on the Securities and Exchange Commission. Mr. Wheat is from California. Come up to the front, sir. We don't have any witnesses here because his record speaks for itself, and we didn't think we needed testimony. Mr. Wheat has been nominated for reappointment as a member of the Securities and Exchange Commission for the term of 5 years expiring June 5, 1971. We thank you

Are there any questions? The Chair has none. very much, Mr. Wheat.

STATEMENT OF FRANCIS M. WHEAT, OF CALIFORNIA, NOMINEE TO BE A MEMBER OF THE SECURITIES AND EXCHANGE COMMISSION

Mr. WHEAT. Thank you, Mr. Chairman.

The CHAIRMAN. I should like to insert in the record at this point subsection 4(a) of the Securities and Exchange Act of 1934, which establishes the Commission.

(The subsection follows.)

SECURITIES AND EXCHANGE COMMISSION

SECTION 4. (a) There is hereby established a Securities and Exchange Commission (hereinafter referred to as the "Commission") to be composed of five Commissioners to be appointed by the President by and with the advice and consent of the Senate. Not more than three of such Commissioners shall be members of the same political party, and in making appointments members of different political parties shall be appointed alternately as nearly as may be practicable. No Commissioner shall engage in any other business, vocation, or employment than that of serving as Commissioner, nor shall any Commissioner participate. directly or indirectly, in any stock-market operations or transactions of a character subject to regulation by the Commission pursuant to this title. Each Commissioner shall receive a salary at the rate of $27,000 a year, except that the Chairman shall receive a salary at the rate of $28,500 1 a year and shall hold office for a term of five years and until his successor is appointed and has qualified, except that he shall not so continue to serve beyond the expiration of the next session of Congress subsequent to the expiration of said fixed term of office, and except (1) any Commissioner appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term, and (2) the terms of office of the Commissioners first taking office after the enactment of this title shall expire as designated by the President at the time of nomination, one at the end of one year, one at the end of two years, one at the end of three years, one at the end of four years, and one at the end of five years, after the date of the enactment of this title.

The CHAIRMAN. I should like also to insert in the record the biographical sketch of the nominee.

(The sketch follows:)

BIOGRAPHICAL SKETCH OF FRANCIS M. WHEAT

Born in Los Angeles, Calif., February 4, 1921; son of Carl I. Wheat, retired lawyer, and Helen Millspaugh Wheat.

Secondary education in Palo Alto, Los Angeles, and Washington, D.C. A.B., Pomona College, Claremont, Calif., 1942; LL.B., Harvard Law School, 1948 (cum laude; member of Harvard Legal Aid Bureau).

1 Public Law 88-426, approved August 14, 1964 (78 Stat. 400), amended the fourth sentence of sec. 4(a). This section was previously amended by: Public Law 86-619, approved July 12, 1960 (74 Stat. 408); Public Law 86-771, approved Sept. 13, 1960 (74 Stat. 913); Public Law 359, 81st Cong. (63 Stat. 880); Public Law 429, 81st Cong. (63 Stat. 972); and, Public Law 854, 84th Cong. (70 Stat. 736).

Married since 1944 to Nancy Loring Warner, formerly of Columbus, Ohio. Three children: Douglas, aged 16, a junior in high school; Carl, aged 15, a sophomore in high school; and Gordon, aged 10, a fifth-grader.

Served as lieutenant, U.S. Naval Reserve, on active duty, 1942-46, with destroyers of Atlantic and Pacific Fleets.

Joined the Los Angeles law firm of Gibson, Dunn & Crutcher in 1948, upon graduation from law school; associate 1948-56; partner since 1956. Area of practice included primarily corporation and business law, including securities offerings registered with the SEC.

Chairman, Committee on the Juvenile Court (1958) and Committee on Corporations (1962- ) of the Los Angeles County Bar Association; chairman of the Subcommittee on Investment Companies and Investment Advisers, Committee on Federal Regulation of Securities, American Bar Association Banking and Business Law Section (1962- ).

Author of various publications on legal subjects.

President, the Neighborhood Church of Pasadena (Congregational and Unitarian) (1961); president, Pomona College Alumni Association (1964- ); chairman, Pomona College Alumni fund (1962-63); presently trustee or director of the Southwest Museum, the Honnold Library Society, the United Nations Association of Los Angeles, Max Factor & Co., the Cosmodyne Corp., R. V. Weatherford Co. Residence: 2030 Oak Knoll Avenue, San Marino, Calif.

Office: 634 South Spring Street, Los Angeles, Calif.

The CHAIRMAN. The committee will now go into executive session. (Whereupon, at 10:55 a.m., the committee went into executive session.)

(The public law establishing the Department of Housing and Urban Development follows:)

[Public Law 89-174, 89th Cong., H.R. 6927, September 9, 1965.]

AN ACT To establish a Department of Housing and Urban Development, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Department of Housing and Urban Development Act".

DECLARATION OF PURPOSE

SEC. 2. The Congress hereby declares that the general welfare and security of the Nation and the health and living standards of our people require, as a matter of national purpose, sound development of the Nation's communities and metropolitan areas in which the vast majority of its people live and work.

To carry out such purpose, and in recognition of the increasing importance of housing and urban development in our national life, the Congress finds that establishment of an executive department is desirable to achieve the best administration of the principal programs of the Federal Government which provide assistance for housing and for the development of the Nation's communities; to assist the President in achieving maximum coordination of the various Federal activities which have a major effect upon urban community, suburban, or metropolitan development; to encourage the solution of problems of housing, urban development, and mass transportation through State, county, town, village, or other local and private action, including promotion of interstate, regional, and metropolitan cooperation; to encourage the maximum contributions that may be made by vigorous private homebuilding and mortgage lending industries to housing, urban development, and the national economy; and to provide for full and appropriate consideration, at the national level, of the needs and interests of the Nation's communities and of the people who live and work in them.

ESTABLISHMENT OF DEPARTMENT

SEC. 3. (a) There is hereby established at the seat of government an executive department to be known as the Department of Housing and Urban Development (hereinafter referred to as the "Department"). There shall be at the head of the Department a Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary"), who shall be appointed by the President by and with the advice and consent of the Senate. The Department shall be administered under the supervision and direction of the Secretary. The Secretary shall receive com