the work now done through the USES or the unemployment compensation, or both, and if so what would be the cost of such offices? Mr. EWING. I do not know the answer to that, Senator Ives. I just do not know what the Labor set-up is. And I am sure Secretary Tobin, who I think will be here Monday, could answer that. Senator IVES. Thank you very much. I appreciate your other answers to my questions, too. The CHAIRMAN. The Chair makes this announcement: Due to the voting schedule in the Senate this afternoon we cannot hold hearings this afternoon, and the committee will recess until tomorrow morning at 10 o'clock. But I want to make this suggestion to those who expect to volunteer to testify before the committee. It is advisable that you submit a prepared statement first, so that the committee may ascertain approximately the length of time you expect to testify and so that we may make some other determinations. We are not going to make that an inflexible rule; yet that is a standing rule of the committee, and we may find it necessary if too many want to volunteer to testify on these issues. The committee stands in recess until 10 o'clock tomorrow. (Thereupon, at 12:21 p. m., the hearings on Reorganization Plan No. 2 were recessed, to reconvene at 10 a. m., Monday, July 25, 1949.) REORGANIZATION PLAN NO. 2 OF 1949-TRANSFERRING THE BUREAU OF EMPLOYMENT SECURITY MONDAY, JULY 25, 1949 UNITED STATES SENATE, The committee met at 10 a. m., pursuant to recess, in room 357, Senate Office Building, Senator John L. McClellan, chairman, presiding. Present: Senators McClellan, Hoey, Long, Ives, Smith, and Schoeppel. Present also: Walter L. Reynolds, Chief Clerk. The CHAIRMAN. The committee will come to order. We begin hearings this morning on the President's Reorganization Plan No. 2. Mr. Secretary, we are glad to have you. We appreciate your views on the President's Reorganization Plan No. 2. I see you have a prepared statement. We will be very glad to hear you. You may either read your statement or file it for the record and make comments about it, at your pleasure. Secretary TOBIN. Fine, Senator. I think I will read it for the record. The CHAIRMAN. All right. STATEMENT OF HON. MAURICE J. TOBIN, SECRETARY OF LABOR; ACCOMPANIED BY MICHAEL J. GALVIN, UNDER SECRETARY OF LABOR; WILLIAM S. TYSON, SOLICITOR, DEPARTMENT OF LABOR; AND ROBERT C. GOODWIN, DIRECTOR, BUREAU OF EMPLOYMENT SECURITY, FEDERAL SECURITY AGENCY Secretary TOBIN. Mr. Chairman and members of the Committee on Expenditures in the Executive Departments: I appreciate very much the opportunity you have afforded me to give my views on Reorganization Plan No. 2 of 1949. The plan is a simple one. It has been analyzed in the President's message transmitting the plan and by the Director of the Bureau of the Budget, and I can add nothing, except to point out to you that under the plan the Federal Advisory Council, created by the Secretary of Labor pursuant to the Wagner-Peyser Act, has "the purpose of formulating policies and discussing problems relating to employment and insuring impartiality, neutrality, and freedom from political influence in the solution of such problems." The Council has, by statute "access to all files and records of the United States Employ ment Service." The Council is composed of men and women representing employers and employees in equal numbers and the public. I should like to submit for your information a list of the outstanding public, management, labor, and veterans representatives who serve on this Council. As you can see, they are 33 of the leading citizens of the United States. The CHAIRMAN. Do you have that list? Secretary TOBIN. It is attached to the statement presented to the committee. The CHAIRMAN. This may be incorporated in the record at this point. (The list referred to follows:) MEMBERS OF THE FEDERAL ADVISORY COUNCIL PUBLIC REPRESENTATIVES Dr. William Haber, professor of economics, University of Michigan, Ann Arbor, Mich., chairman of the Council. Mr. John J. Corson, circulation director, Washington Post, Washington, D. C. Mrs. Saidie Orr Dunbar, past president, Federated Women's Clubs, Portland, Oreg. Dr. Merle E. Frampton, principal, New York Institute for the Education of the Blind, New York City. Mr. Fred K. Hoehler, executive director, Community Fund of Chicago, Inc., Chicago, Ill. Mrs. Henry A. Ingraham, former president, national board, YWCA, Brooklyn, N. Y. Mr. Roscoe C. Martin, bureau of public administration, University of Alabama, University, Ala. Mr. Ira D. Reid, professor, Haverford College, Haverford, Pa. Mrs. Anna M. Rosenberg, New York City. Mr. Max F. Baer, national director, B'nai B'rith Vocational Service Bureau, Washington, D. C. Dr. Sumner Slichter, professor of economics, Harvard University, Cambridge, Mass. Dr. Edwin E. Witte, department of economics, University of Wisconsin, Madison, Wis. MANAGEMENT REPRESENTATIVES Miss Bess Bloodworth, vice president, the Namm Store, Brooklyn, N. Y. Mr. Prentiss L. Coonley, business consultant, Washington, D. C. Mr. John Lovett, general manager, Michigan Manufacturers' Association, Detroit, Mich. Mr. George Mead, president, the Mead Corp., Dayton, Ohio. Mr. H. S. Vance, chairman of the board, Studebaker Corp., South Bend, Ind. Mr. Marion Folsom, treasurer, Eastman Kodak Co., Rochester, N. Y. LABOR REPRESENTATIVES Mr. John Brophy, director, industrial union councils, Congress of Industrial Organizations, Washington, D. C. Mr. Harry Boyer, president, Pennsylvania Industrial Union Council, Harrisburg, Pa. Mr. Nelson H. Cruikshank, director, social insurance activities, American Federation of Labor, Washington, D. C. Mr. James L. McDevitt, president, Pennsylvania Federation of Labor, Harrisburg, Pa. Mr. H. L. Mitchell, president, National Farm Labor Union, American Federation of Labor, Washington, D. C. Mr. Paul Sifton, national legislative representative, UAW, Congress of Industrial Organizations, Washington, D. C. Mrs. Katherine Ellickson, assistant director of research, Congress of Industrial Organizations, Washington, D. C. Mr. James Brownlow, secretary-treasurer of the metal trades department, AFL, Washington, D. C. Mr. Joseph M. Rourke, secretary-treasurer, Connecticut State Federation of Labor, Bridgeport, Conn. VETERANS REPRESENTATIVES Mr. Robert S. Allen, author, member of American Veterans' Committee, Washington, D. C. Mr. Lawrence J. Fenlon, chairman, national economic commission, American Legion, Chicago, Ill. Mr. Omar B. Ketchum, director, national legislative service, Veterans of Foreign Wars, Washington, D. C. Mr. Millard W. Rice, executive secretary, Disabled American Veterans' Service. Foundation, Washington, D. C. Mr. Edgar Corry, Jr., past national commander, American Veterans of World War II, Washington, D. C. Secretary TOBIN. I want the advice of these men and women on the administration of this Bureau, and I will consider very carefully the advice of these men and women in the administration of this Bureau, if the Congress sees fit to transfer the Bureau to the Department of Labor. I am not going to attempt to discuss the fact that this is a FederalState program, or the desirability of a united administration of the Employment Service and the Unemployment Compensation Service as both of these points have already been covered adequately by the Director of the Bureau of the Budget and the Federal Security Administrator in their statements to this committee. I do want to point out to you that this plan was the unanimous recommendation of the Hoover Commission. That Commission was established on a bipartisan basis. It had as its chairman the Honorable Herbert Hoover. It had among its members distinguished Members of the Senate and the House of Representatives, namely, you yourself, Mr. Chairman, Senator George D. Aiken, of Vermont, Representative Clarence J. Brown of Ohio, and former Representative Carter Manasco, of Alabama. It also listed among its members high Government officials and distinguished private citizens. The Commission put in almost 2 years of intensive study and spent almost $2,000,000 of the taxpayers' money on its studies. This expenditure of time and money should not be lightly disregarded. It seems clear to me that there is a heavy burden of proof upon any special interests opposing this plan to prove that all of these distinguished men were wrong and that the plan is wrong. The plan has the support of the very people in the Federal Government who are charged with its administration and with the responsibility of making the Bureau of Employment Security operate most effectively and efficiently for the benefit of the people of the country. It has the unqualified support of the Chief Executive of the United States, the President. It has the wholehearted support of the Federal Security Administrator, who is now charged with its administration. It is strongly supported by the Director of the Bureau of Employment Security, who actually administers the program on a day-to-day basis. I believe that the judgment of these gentlemen is entitled to the greatest weight in your determinations. If the Congress approves this plan, the President of the United States, the Secretary of Labor, and the Di |