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PRESIDENT'S PLANS FOR REORGANIZATION OF

EXECUTIVE DEPARTMENTS

FRIDAY, JUNE 14, 1946

UNITED STATES SENATE,
COMMITTEE ON THE JUDICIARY,

Washington, D. C.

The committee met, pursuant to call, at 10:30 a. m., in the committee room, Capitol, Senator Pat McCarran (chairman) presiding. Present: Senators McCarran, Murdock, Huffman, and Stanfill. Also present: Mr. J. G. Sourwine, committee counsel. The CHAIRMAN. The committee will come to order.

This time is set for hearings in the matter of Reorganization Plans Nos. 1, 2, and 3 as transmitted to Congress by the President on May 16, 1946, and Senate Concurrent Resolutions Nos. 64, 65, and 66 as they concern the reorganization plans.

These documents will be included in the record at this point. (The documents are as follows:)

[H. Doc. No. 594, 79th Cong., 2d sess.]

MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING REORGANIZATION PLAN NO. 1 OF 1946, PREPARED IN ACCORDANCE WITH THE PROVISIONS OF THE REORGANIZATION ACT OF 1945

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 1 of 1946, prepared in accordance with the provisions of the Reorganization Act of 1945.

In my message to the Congress of May 24, 1945, requesting passage of a reorganization act, I stated that an important purpose of the act would be to permit making permanent certain of the reorganization actions taken by Executive order under the authority of title I of the First War Powers Act, 1941 (55 Stat. 838). The effect of this reorganization plan would be, in the main, to continue in force some of the reorganization actions now in effect by virtue of Executive orders. The reorganization actions continued in force by this plan all constitute improvements in the organization of permanent functions of the Government or functions which may be expected to be active after the expiration of title I of the First War Powers Act, 1941. Those improvements should, therefore, be made permanent under the procedure established in the Reorganization Act of 1945.

I have found, after investigation, that each reorganization contained in the plan is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1945. Each part of the reorganization plan is explained in further detail below.

DEPARTMENT OF STATE

The first part of the plan provides for the transfer of certain functions to the Department of State, and imposes certain liquidation duties on that Department.

1

OFFICE OF INTER-AMERICAN AFFAIRS

Executive Order No. 8840 of July 30, 1941, established the Office of the Coordinator of Inter-American Affairs. Throughout the war period this Office (later redesignated the Office of Inter-American Affairs) played a major role in the development of better relations among the American Republics. In accordance with the general realinement of the functions and organization of wartime agencies in the international field, this Office was abolished and certain remaining functions were transferred to the Secretary of State by Executive Order No. 9610 of April 10, 1946. The plan confirms this transfer, providing specifically for the direction by the Secretary of State of the activities of certain corporations formerly headed by the Director of the Office of Inter-American Affairs.

The necessity for confirming Executive Order No. 9610 arises from the fact that certain of the corporations have program commitments, for which funds have been made available, extending into fiscal year 1949. The reorganization plan will assure that the activities of the several corporations listed in the plan will be under the direction of the Secretary and Department of State so long as they are in existence.

UNITED STATES HIGH COMMISSIONER TO THE PHILIPPINE ISLANDS

Under the terms of the Tydings-McDuffie Act, the Philippine Islands will become independent on July 4, 1946. This event makes necessary a change in the conduct of the political relationships between this Government and that of the Republic of the Phillipines.

The reorganization plan accordingly abolishes the office of United States High Commissoner to the Philippine Islands (established by Tydings-McDuffie Acts, ch. 11, 47 Stat. 761, and ch. 11, 48 Stat. 456) and provides for the orderly liquidation of its affairs by the Department of State. It is contemplated that after July 4, 1946, the conduct of relations with the Republic of the Philippines will be carried on in the same manner as relations with other countries.

DEPARTMENT OF THE TREASURY

(National Prohibition Act functions)

The act of May 27, 1930 (46 Stat. 427), imposed upon the Attorney General general duties respecting administration and enforcement of the National Prohibition Act. By Executive Order No. 6639 of March 10, 1934, all of the powers and duties of the Attorney General respecting that act, except the power and authority to determine and to compromise liability for taxes and penalties, were transferred to the Commissioner of Internal Revenue. The excepted functions, however, were transferred subsequently to the Commissioner of Internal Revenue by Executive Order No. 9302 of February 9, 1943, issued under the authority of title I of the First War Powers Act, 1941.

Since the functions of determining taxes and penalties under various statutes and of compromise of liability therefor prior to reference to the Attorney General for suit are well-established functions of the Commissioner of Internal Revenue, this minor function under the National Prohibition Act is more appropriately placed in the Bureau of Internal Revenue than in the Department of Justice.

DEPARTMENT OF AGRICULTURE

(Agricultural Research Administration)

By Executive Order No. 9069 of February 23, 1942, six research bureaus, the Office of Experiment Stations, and the Agricultural (formerly Beltsville) Research Center were consolidated into an Agricultural Research Administration to be administered by an officer designated by the Secretary of Agriculture. The constituent bureaus and agencies of the Administration have, in practice, retained their separate identity. This consolidation, and certain transfers of functions between the constituent bureaus and agencies have all been recognized and provided for in the subsequent appropriation acts passed by the Congress.

By the plan the functions of the eight research bureaus and agencies which are presently consolidated into the Agricultural Research Administration are transferred to the Secretary of Agriculture to be exercised under his direction and control by the Agricultural Research Administration or by such other officers or agencies of the Department of Agriculture as he may provide.

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