House, so this is a matter which has been in their jurisdiction, and a matter on which they have not acted, as I say, for lo these many years, and therefore, to burden this particular bill with a drastic change of status would be, in the opinion of this member, an unnecessary burden, and one which is not pertinent to this bill. An extraneous consideration. They might just as well hold hearings, and do it after this bill is passed. It is taken out of commerce, and so Mr. BOYD. My recollection, Mr. Chairman, is that the bulk of—that eight bills were introduced last August and September. What has happened since then, I don't know. But there hasn't been a great deal of activity. Mr. HOLIFIELD. All right. Now, Mr. Erlenborn. Mr. ERLENBORN. Well, I would just like to make one comment. Mr. Boyd suggested that the merchant marine was a very important part of our transportation picture, and leaving any important part out of the transportation picture doesn't make much sense, and I agree with him. Also, I think there is another important part of transportation that we are leaving out of this by design, and I can't see the rationale for it, and that is the urban mass transportation program. I know we discussed this in the prior hearings. I don't think it is necessary for us to give our reasons back and forth again, but this has no more relationship to urban development than other things may have relationship to transportation. In other words, urban mass transportation is not unique in that it has to be in Housing and Urban Development. The Coast Guard may just as well say they are so unique, that they should not be in the Department of Transportation. Mr. BOYD. I think, Mr. Erlenborn, a good way to characterize the situation with urban transportation, is that it's not being left out, rather that it is not being put in at this time. I really believe that is a fair way to state it. Mr. ERLENBORN. This sort of answer would indicate that you think it would at some time come in to the Department of Transportation. Mr. BOYD. Personally, there is no doubt in my mind. Mr. HOLIFIELD. As we understand it, there will be a study made of this. Mr. BOYD. Yes. Mr. HOLIFIELD. And when can we expect a report Mr. ZWICK. The President said within 12 months. Mr. BOYD. After the Department is established, within 12 months. Mr. HOLIFIELD. And your reasons for not including it at this time, is that this is new, and a new program, and hasn't settled down yetMr. ERLENBORN. So is the high-speed rail transit program. That is new, as well, but still that is coming in here. I think it is more proper to say that the Housing and Urban Development Department is new, rather than the mass transportation. Maybe this gets more to the nub of the matter. Mr. HOLIFIELD. Well, if there is no further question, we will dismiss the witnesses and their associates, and if the committee will wait a minute, I will appreciate it. Mr. BOYD. Well, thank you very much, Mr. Chairman. Mr. HOLIFIELD. And you will report back to us, Mr. Zwick. (Whereupon, at 4:50 p.m., the committee was adjourned.) APPENDIXES APPENDIX 1 BACKGROUND MATERIALS ON DEPARTMENT OF TRANSPORTATION BILL (Prepared by various executive agencies) CONTENTS 1. Objectives of transportation_reorganization proposals. 2. Establishment of executive departments. Page 760 761 3. Formation of recent Cabinet offices. 761 4. Section-by-section summary of the bill (as introduced). 5. Technical addendum to section-by-section summary.. 763 771 6. The Department of Transportation (agencies and functions transferred in the bill)....... 773 7. Agencies included and excluded from the proposed Department. 775 8. General transfers of authority to Department heads... 777 9. Summaries of all elements transferred to the new Department.. (a) Under Secretary of Commerce for Transportation. () Motor, rail, and pipeline safety, car service (ICC). 788 789 10. Reasons for bringing together in Department of Transportation all safety functions in transportation... 789 11. Safety functions transferred to Department of Transportation and role of the National Transportation Safety Board. 791 12. Transfer of ICC rail safety powers to a Department of Transportation. 13. Background paper concerning the transfer of highway safety and explosives and other dangerous articles functions to the Department of Transportation__ 797 798 14. Background of the Air Safety Board.. 803 15. Background paper concerning the transfer of ICC car service functions to the Department of Transportation.. 808 16. Investment standards and criteria.......... 811 17. Relationship of the mass transportation program to the Department of Transportation_ 812 18. Personnel strength_ 19. Actual Federal civilian employment. 814 815 20. Provisions of the bill which directly affect current employees.. 21. Fund availability for proposed elements-- 815 816 22. Comparative new obligational authority data (including trust funds). 23. Organizational background to the Department of Transportation.. 24. Reorganization of transportation activities of the Federal Government: Chronology of legislative proposals. - 816 817 819 1. OBJECTIVES OF TRANSPORTATION REORGANIZATION PROPOSALS The administration continues to believe that the long term, overall policy objective for transportation should be to place greater reliance on market controls and on business initiative and decisionmaking, less on Government regulation and promotion. When the Federal Government has put its own transportation house in order it can move with greater confidence toward modernization of major national transportation policies. Within this framework the program being proposed by the administration has the following principal objectives: 1. Coordination and more effective administration of the widely dispersed transportation programs of the Federal Government. All major transportation investment programs, except the water navigation projects of the Corps of Engineers and the mass transit assistance projects of the Department of Housing and Urban Development, will be brought within the Department of Transportation. The efforts of the transportation regulatory agencies will be concentrated upon economic regulation by relieving them of safety and other executive functions which will be reassigned to the Department of Transportation. It is expected that the Secretary of Transportation will direct and inform the heads of his program agencies with a consistent and objective point of view which, for the first time, will place their programs in perspective as part of a total transportation effort and in relation to each other. 2. Improvement and coordination of transportation services. For the first time, the various segments of the transportation industry will be provided with a single authoritative source of information and policy advice on national transportation objectives, on the role which the Government hopes the industry will fulfill in meeting the transportation needs of the economy. 3. Encourage cooperation among all interested parties-all levels of Government, management and labor, shippers and consumers' spokesmen. In addition to the genuine differences of interest and motivation among these groups, often sharply conflicting, there are broad areas of common interest which, with concerted effort, can be developed to the mutual advantage of all. One such area is the dissemination of factual information about the industry and its problems; another is the nature and probable impact of various opportunities for technological advancement, and problems needing but not receiving research and development effort. 4. Identification and solution of transportation problems to the extent that Government transportation polícies and programs can contribute to this end. Astonishing information gaps make the full impact of policy reform in many areas difficult or impossible to estimate. It seems probable that, on the basis of systematic scrutiny, many timehonored questions would be shown to be in need of radical restatement. Obviously the correct answers cannot be obtained if the correct questions are not asked. Coordinated research and analysis directed toward identification of policy questions and formulation of alternative solutions can make a major contribution to modernization and redirection of public policy. 5. More systematic and precise valuation of public investment proposals. As a major area for the investment of public funds, transportation is a primary candidate for across-the-board application of costbenefit analysis and other objective analytical techniques for program evaluation as contemplated by the system of programing, planning, and budgeting initiated last year by order of the President. 6. Coordination and reorientation of research and development activities. Federal programs for research and development in transportation are characterized by tremendous differences in effectiveness, reflecting differences in funding and in the number and caliber of personnel engaged. In addition, the effectiveness of channels of communication available to bring research findings to the attention of the industry and the needs of industry to research agencies must be expanded and improved. Treasury. State.. Interior. Name Justice.... Post Office.. Agriculture... Defense.. 2. ESTABLISHMENT OF EXECUTIVE DEPARTMENTS Health, Education, and Housing and Urban Development. Year (and authority) 1789 (act of Sept. 2, 1789). 1849 (act of Mar. 3, 1849)..... 1870 (act of June 22, 1870)... 1889 (act of Feb. 9, 1889)... 1949 (National Security Act 1953 (Reorganization Plan 1965 (act of Sept. 9, 1965)... Predecessor agency Department of Foreign Affairs, established under Created from the transfer of the General Land Office of the Attorney General, established in Nonexecutive department, created in 1862 under Department of Commerce and Labor, created in Federal Security Agency, created in 1939. Housing and Home Finance Agency, established by reorganization plan on July 27, 1947. 3. FORMATION OF RECENT CABINET OFFICES As our Nation has grown and increased in complexity, Congress has responded by restructuring the executive branch to better meet the demands placed upon it. Progress brings with it the need for positive response to new problems. The formation of Cabinet offices has recognized the increasing importance of certain areas of concern and the need for coordinated policies to best promote the national welfare. The formation of the Department of Labor in 1913 was a response to the growing importance of wage earners as industrialization rapidly restructured the economic order. Congress felt that in order to best "foster, promote, and develop" the welfare of the Nation's |