Dineen, Charles, secretary, Milwaukee Cooperative Milk Producers, 335 Ewens, James J., Grede Foundries, Inc., letter to Hon. John L. 332 Federal Malleable Co., Milwaukee, Wis., letter to Hon. John L. 332 Fox, Leonard P., general secretary, Pennsylvania State Chamber of 337 325 Gardner, Everett L., director, Indiana Employment Security Division, 340 Gilbert, C. C., secretary, Tennessee Manufacturers Association, letter 331 Goodwin, Robert C., director, Bureau of Employment Security, Social 309 Green, William, president, American Federation of Labor, telegram to 320 Haberman, George A., president, Wisconsin State Federation of 326 336 Hatton, Robert E., chairman, unemployment compensation advisory committee, Department of Economics Security, State of Kentucky: Haugen, K. M., president. Schlafer Supply Co., Appleton, Wis., letter 334 Hearst, J. E., comptroller, S. S. Kresge Co., letter to Hon. John L. 335 Hilfinger, Martin F., president, Associated Industries of New York 353 Hoke, Frank, president, Indianapolis chamber of commerce, letter to 327 Hoover, Hon. Herbert, telegram to Hon. Chet Holifield, August 2, 326 Jones, Rowland, Jr., president, American Retail Federation, statement, 188 Ketchum, Omar B., director Veterans of Foreign Wars, letter to Hon. 333 Kimball, Edw. A., executive vice president, Iowa Manufacturers Krawczyk, B. A., attorney at law; supervisor, compensation depart- 327 Telegrams, letters, statements, etc.-Continued Lyman, Ormond F., executive vice president, Illinois State Chamber Mallon, W. L., chairman, public affairs committee, National Auto- Martin, Robert B., representing the Illinois State Chamber of Com- Moomaw, Paul C., managing director, Interstate Tax Service Bureau, Nelson, George R., representative International Association of Patty, Kenneth C., assistant attorney general, Richmond, Va., state- ment_-_. Pearman, John A., veterans, employment representative for Arkansas, Russell, P. M., chairman, social security committee, New Jersey State Schaefer, A. G., secretary, Sengbusch Self-Closing Inkstand Co., letter Schneider, George E., general manager, New Orleans Association of Page 341 334 197 342 244 338 336 353 312 345 239 339 331 258 Sifton, Paul, Congress of Industrial Organizations, statement. 350 338 215 Smith, Raymond C., director, Michigan Manufacturers Unemploy- Tanham, James, chairman, committee on industrial problems and Taylor, Frank J., president, American Merchant Marine Institute, 270 303 301 343 329 Tobin, Hon. Maurice J., Secretary of Labor-members of the Federal Tucker, Harold W., president, the Associated Industries of Rhode 342 ment_ 349 Vogeler, Rudolf F., manager, Industrial Council, Chamber of Com- 266 Whitehouse, Al, president, Kentucky CIO Council and secretary, 328 329 Williams, Hon. G. Mennen, Governor of the State of Michigan, tele- 326 Letters, statements, telegrams, etc.-Continued Page Woolmuth, Edmund W., executive vice president, Newark Chamber of 348 Wunner, E. G., vice president, Yellow Cab Co., letter to Hon. John 336 REORGANIZATION PLAN NO. 1 OF 1949-PROVIDING FOR A DEPARTMENT OF WELFARE THURSDAY, JULY 21, 1949 UNITED STATES SENATE, COMMITTEE ON EXPENDITURES IN The committee met at 10 a. m., pursuant to call, in room 357, Senate Office Building, Senator John L. McClellan, chairman, presiding. Present: Senators McClellan (chairman), Eastland, 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. 1, which has been transmitted to Congress by authority of the Reorganization Act of 1949. Beginning Monday, the committee will hold hearings on Reorganization Plan No. 2. However, some of the witnesses we shall hear this morning would also desire, I believe, to give testimony concerning Reorganization Plan No. 2, and in order to accommodate these witnesses and save them from having to make a trip back to the committee again and testify next Monday, we will probably hear their statements with reference to plan No. 2 this morning. At this point I would like to have printed in the record a copy of the President's message of transmittal and also plan No. 1, which the committee is considering. (The message of transmittal and Reorganization Plan No. 1 are as follows :) [H. Doc. No. 222, 81st Cong., 1st sess.] MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING REORGANIZATION PLAN No. 1 OF 1940, PROVIDING FOR A DEPARTMENT OF WELFARE To the Congress of the United States: I transmit herewith Reorganization Plan No. 1 of 1949, prepared in accordance with the provisions of the Reorganization Act of 1949. This plan will provide for a Department of Welfare to take its place among the principal executive departments of the Government. This new Department will perform the functions and conduct the programs now administered by the Federal Security Agency. Responsibility and authority for the administration of these programs will be vested in the Secretary of Welfare. The creation of a Department of Welfare is long overdue. President Harding first recommended to the Congress the establishment of such a department in *1923. In 1937 President Roosevelt's Committee on Administrative Management likewise recommended the establishment of a Department of Social Welfare. More recently, the Commission on Organization of the Executive Branch of the Government has recommended the ceration of a department to administer the social security and education functions of the Federal Government. 1 The foundation for the Department of Welfare was laid in 1939 with the establishment of the Federal Security Agency. With respect to this action the Senate Committee on Expenditures in the Executive Departments stated in its report on the Reorganization Act of 1949 that "the Federal Security Agency should have been designated an executive department" at the time of its ceration; but the Reorganization Act then in effect did not permit such action. A second step was taken by Reorganization Plan No. 2 of 1946, which transferred additional related activities to the Federal Security Agency and strengthened its internal organization. Again, the Reorganization Act then in effect did not authorize the designation of the Agency as an executive department. However, I stated in my message accompanying that plan: ** * but, while this step is important in itself, I believe that a third step should soon be taken. The time is at hand when that agency should be converted into an executive department." Since then I have several times proposed that the Federal Security Agency be made an executive department. The central purpose of the Federal Security Agency is the conservation and development of the human resources of the Nation. Plainly, as I stated in my message transmitting Reorganization Plan No. 2 of 1946: "The size and scope of the Federal Security Agency and the importance of its functions call for departmental status and a permanent place in the President's Cabinet." In number of personenl and volume of expenditures it now exceeds several of the existing executive departments. The range of its programs and the significance of their impact upon national development obviously entitle it to a place in the highest rank of Federal organizations. On May 9 of this year, when it appeared probable that the reorganization legislation would not permit the establishment of a new department, I urged the Congress to enact a measure creating a Department of Welfare. Since that restriction was later eliminated from the bill and the Reorganization Act of 1949 authorizes the establishment of an executive department, I have concluded that the reorganization-plan procedure affords the simplest and most expeditious method of creating a Department of Welfare. In order to improve the administration of the Department, the plan consolidates in the Secretary of Welfare the functions now vested in the various officers and units of the Federal Security Agency and authorizes him to delegate their performance to appropriate officers and units of the Department. Thus, it carries out two of the cardinal recommendations of the Commission on Organization of the Executive Branch of the Government, namely, that the department heads should control and have full responsibility for the conduct of their departments and that they should have authority to organize their departments. Such authority will enable the Secretary to work out the most effective distribution of the work of the Department and will contribue both to efficiency and economy in administration and to the convenience of State agencies and the public in dealing with the Department. After investigation I have found and hereby declare that each reorganization included in this plan is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1949. I also have found and declare that by reason of these reorganizations it is necessary to include in the plan provisions for the appointment and compensation of a Secretary of Welfare to head the Department of Welfare and of an Under Secretary and three Assistant Secretaries to assist him in the proper performance of the heavy duties involved in the direction of the Department. In submitting this reorganization plan, I am fully aware of the recommendations of the Commission on Organization of the Executive Branch of the Government with respect to the various units of the Federal Security Agency. Among these are proposals for certain transfers to or from other agencies. In Reorganization Plan No. 2 of 1949, which I am transmitting today, I am pro viding for one of the most important of these transfers. The other proposals are currently under study, but final conclusions have not yet been reached with respect to them. The establishment of the Department of Welfare will effectuate the one recommendation of the Commission on Organization of the Executive Branch of the Government for the creation of a new executive department. It will not in anywise interfere with the presentation of additional reorganization plans with respect to other recommendations of the Commission in this field or with the ability of the Congress to deal with any of them by statute. |