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and also to make some of the temporary reorganizations permanent. These were among the more important provisions:

1. Transfer of the Office of Inter-American Affairs to the Department of State, and to abolish said Office.

2. To abolish the office of the U.S. High Commissioner to the Philippine Islands.

3. To compromise the liability for taxes and penalties placed under the Bureau of Internal Revenue, rather than in the Department of Justice as were the bulk of the Prohibition Act enforcements, under Executive Order No. 6639 of March 10, 1934.

4. Six research bureaus, the Office of Experiment Stations, and the Agricultural Research Center were consolidated by Executive Order No. 9096 of February 23, 1942, into an Agricultural Research Administration, and placed under an administrator assigned by the Secretary. The duties of this officer are transferred to the Secretary of Agriculture in order to give him substantive control over the activity, rather than having it rest in a subordinate.

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5. Transfer all the functions of the Director and of the Office of Contract Settlement to the Director and Office of War Mobilization and Reconversion, and abolishing said agency.

6. Consolidate permanently in one National Housing Agency under the direction of a National Housing Administrator all Federal housing activities. 7. Transfer permanently the administration of Federal functions with respect to credit unions from the Farm Credit Administration to the Federal Deposit Insurance Corporation.

Action: This plan was rejected. It was referred in the House to the Committee on Expenditures in the Executive Departments, in the Senate to the Committee on the Judiciary. Resolutions of disapproval were introduced in both houses, hearings were held, and reports issued, as follows:

House Concurrent Resolution No. 155; House Report No. 2326. Senate Concurrent Resolution No. 64; Senate Report No. 1670. Objections were raised chiefly against section 505B. On July 15, the Senate by a vote of 45 to 31 rejected this plan; the House rejected it on June 28 by a vote of 180 to 37. Reorganization Plan No. 2 of 1946 (May 16) House Document No. 595 Purpose: To incorporate into the Federal Security Agency functions then administered by scattered agencies. Specifically:

1. Transferring the Children's Bureau from the Labor Department to the Federal Security Agency.

2. Transferring vital statistics functions of the Bureau of the Census to the Federal Security Agency.

3. Transferring the U.S. Employees Compensation Commission, an independent agency, to the Federal Security Agency.

4. Transferring the Social Security Board, an independent agency, to the Federal Security Agency.

5. Transferring such functions of the Office of Education as relate to the vending stand program for the blind to the Office of Vocational Rehabilitation in the Federal Security Agency.

6. The office of Assistant Commissioner of Education was abolished. 7. The Federal Board of Vocational Education was abolished.

8. The Board of Visitors of St. Elizabeths Hospital was abolished, due to overlapping in the functional area assigned to the Federal Security Agency. 9. The establishment of uniform standards and procedures for grant-inaid programs, and to permit the States to submit a single plan of operation for related grant-in-aid programs.

It may be noted that, by thus increasing the size and scope of the Federal Security Agency, the stage was being set for eventual departmental status for that Agency.

Action: This plan became effective. It was referred in the House to the Committee on Expenditures in the Executive Departments, in the Senate to the Committee on the Judiciary. Resolutions of disapproval were introduced in both houses, hearings were held, and reports issued, as follows:

House Concurrent Resolution No. 151; House Report No. 2327. Senate Concurrent Resolution No. 65; Senate Report No. 1671. After being defeated in the House on June 28 by a vote of 166 to 40 on House Concurrent 32-913-64-6

Resolution No. 151, the plan was approved in the Senate on July 15 by a vote of 37 to 40 on Senate Concurrent Resolution No. 65. It became effective on July 16.

The debate centered chiefly around the proposals to abolish the U.S. Employees Compensation Commission and its transfer to the Federal Security Agency. It was felt that this would weaken the quasi-judicial nature of the Commission's work, which should not be subject to review by the Federal Security Agency.

Reorganization Plan No. 3 of 1946 (May 16) House Document No. 596

Purpose: To accomplish a number of miscellaneous changes designed to improve the Federal structure, as follows:

1. To make permanent the transfer of the Bureau of Marine Inspection from the Department of Commerce to the Coast Guard and the Bureau of Customs. This had been done on a temporary basis under the Frst War

Powers Act.

2. Abolish those functions of St. Elizabeths Hospital relating to insane persons belonging to the Coast Guard. Responsibility for the care of such persons to be henceforth assigned as follows: all veterans, to the Veterans' Administration; military and naval personnel to the appropriate department; prisoners to the Department of Justice; other civilians to the Federal Security Agency. This plan transfers or abolishes the responsibility of St. Elizabeths Hospital and the Federal Security Agency with respect to veterans, military personnel, and prisoners.

3. The transfer of the Hydrographic Office of the Naval Observatory from the Bureau of Navy Personnel to the Chief of Naval Operations is made permanent. This was provided for in Executive Order No. 9126, under the First War Powers Act.

4. Consolidate the Paymaster's Department and the Quartermaster's Department of the Marine Corps into a single Supply Department.

5. To transfer to the National Park Service responsibility for the "housekeeping" functions at Hyde Park, rather than the Public Buildings Administration and the Archivist of the United States, formerly shared with the National Park Service.

6. Transferring to the Department of the Interior jurisdiction over mineral deposits on lands held by the Department of Agriculture.

7. Consolidates the General Land Office and the Grazing Service of the Department of the Interior into a Bureau of Land Management with a Director, an Associate Director, and Assistant Directors.

8. Executive Order No. 9069 of February 23, 1942, provides that programs and agencies dealing with food production and distribution should gradually be consolidated by a series of further Executive orders issued under authority of the First War Powers Act. By Executive Order No. 9334 of April 19, 1943, they were all grouped into a War Food Administration. Executive Order No. 9577 of June 29, 1945, terminated this arrangement, and the functions were transferred back to the Department of Agriculture; the Secretary of Agriculture was authorized to administer them as he saw fit. The Secretary established the Production and Marketing Administration in August 1945; this consolidated some isolated but related agencies. 9. Transferring the functions of two divisions of the National Bureau of Standards in the Department of Commerce; namely, the Division of Simplified Trade Practices and the Division of Commercial Standards, to the Secretary of Commerce in order to reassign these functions to the Office of Domestic Commerce.

10. Abolishing the function of conducting strike ballots vested in the National Labor Relations Board by section 8 of the War Labor Disputes Act (57 Stat. 167, ch. 144).

11. Transferring responsibility for the Canal Zone biological area to the Smithsonian Institution. It had been functioning as an independent agency. 12. Transferring to the U.S. Employment Service the functions of the Selective Service System and its Director with respect to assisting exservicemen in getting employment.

Action: This plan became effective on July 16, 1946. The plan was referred in the House to the Committee on Expenditures in the Executive Departments,

in the Senate to the Committee on the Judiciary. Resolutions of disapproval were introduced in both houses, hearings were held, and reports issued, as follows:

House Concurrent Resolution No. 154; House Report No. 2328. The House, by voice on June 28, 1946, upheld this resolution and the recommendation contained in the report. Senate Concurrent Resolution No. 66; Senate Report No. 1672 indefinitely postponed. On July 13, 1946, Plan No. 3 was approved by a vote of 30-37 on the resolution of disapproval, House Concurrent Resolution 154.

The debate centered around these objections: the transfer of the Bureau of Marine Inspection and Navigation to the Coast Guard would place civilians in this Bureau under military discipline and would violate the nonmilitary interests of these people. By removing military personnel from St. Elizabeths Hospital, the hospital would lose a chance to examine cases peculiar to the military situation. The Federal Security Agency refuted this argument by noting that the number of such cases constitutes only a very small part of the total number of patients.

President Harry S. Truman, 1947, 80th Congress, 1st session

CHANGES PROPOSED BY REORGANIZATION PLAN

Reorganization Plan No. 1 of 1947 (May 1) House Document No. 230 Purpose: To accomplish a more orderly transition from war to peacetime operation to to supplement previous actions designed to terminate wartime legislation.

It was pointed out that nearly 135 Executive orders had been issued in whole or in part under title I of the First War Powers Act. There were a member of types of changes or organizational adjustments which should be continued; such as (1) changes in the organization of permanent functions; (2) transfer of continuing activities which were vested by statute in temporary war agencies but have since been moved by Executive order upon termination of these agencies. These specific changes were proposed:

1. Permanent location of the functions vested by statute in the Alien Property Custodian and the Office of the Alien Property Custodian. In 1934, these were transferred to the Department of Justice; in 1942, by Executive Order No. 9095, a separate office was established; by Executive Order No. 9788, they were transferred back in 1946. This plan transfers to the Attorney General all functions vested by law in the Alien Property Custodian and the Office of the Alien Property Custodian.

2. Section 8 of the Agricultural Marketing Agreements Act of 1937 provides that marketing orders must be approved by the President. The Economic Stabilization Director assumed this function during World War II, under Executive Order No. 9705 of March 15, 1946. It is now provided that this power shall be vested in the Secretary of Agriculture.

3. The Office and the Director of Contract Settlement, established by Executive Order 9809 of December 12, 1946, is now transferred to the Department and Secretary of the Treasury.

4. Powers of the Attorney General remaining under the act of May 27, 1930 (46 Stat. 427), are hereby transferred to the Commissioner of Internal Revenue. This provision relates to the determining and compromising of liability for taxes and penalties.

5. Under Executive Order No. 9069 of February 23, 1942, six bureaus, the Office of Experiment Stations, and the Agricultural Research Center were consolidated into the Agricultural Research Administration, to be administered by an officer appointed by the Secretary of Agriculture. This plans transfers the authority to the Secretary, the duties to be performed by him or under his direction, as he sees fit.

6. Transferring the administration of Federal functions with respect to credit unions from the Farm Credit Administration to the Federal Deposit Insurance

Corporation. This change had been made by Executive Order No. 9148 of April 27, 1942.

7. Transferring the War Assets Administration, created by Executive Order No. 9689 of January 31, 1946, to the statutory Surplus Property Administration and to change the name of the latter to the War Assets Administration. The plan also provided for the creation of an Associate War Assets Administrator. Action: This plan became effective on July 1, 1947. It was referred in each House to the Committee on Expenditures in the Executive Departments. House Concurrent Resolution 50, a resolution of disapproval, was introduced, but no action was taken upon it. Hearings on this plan were held in the House (and plan No. 2 as well) from May 21 through May 27, and these hearings were printed. No other action regarding this plan was taken in either House. Reorganization Plan No. 2 of 1947 (May 1) House Document No. 231

Purpose: This plan included three important changes, as follows:

1. Transferring the U.S. Employment Service to the Department of Labor on a permanent basis; it had been there under title I of the First War Powers Act, by Executive Order No. 9617.

2. Transferring the functions of the Administrator of the Wage and Hour Division to the Secretary of Labor.

3. Authorizing the Secretary of Labor to coordinate the administration of the acts for the regulation of wages and hours on Federal public works through standards, regulations, and procedures to govern the enforcement efforts of the contracting agencies. Responsibility for enforcement operations would remain with the contracting agencies.

Action: This plan was rejected. It was referred in each House to the Committee on Expenditures in the Executive Departments. A resolution of disapproval, House Concurrent Resolution 49, was introduced in the House. Hearings were held in the House (and on plan No. 1 as well) from May 21 through May 27, and these hearings were printed. The resolution was reported out (H. Rept. 499), and approved on June 10 by a voice vote-thereby rejecting the plan. Action in the Senate was taken on June 30, when by a vote of 42 to 40, Senate Report No. 320, on House Concurrent Resolution 49, was approved, thereby rejecting the plan.

There was a good deal of discussion of this plan and much opposition to it. The U.S. Employment Service had been transferred to the Federal Security Agency under Reorganization Plan No. 1 of 1939; under Plan 2 for 1946, the Secretary of Labor had ultimate authority and responsibility for determining prevailing minimum wages, etc. It was argued that the USES should be transferred to the Federal Security Agency rather than to the Department of Labor because the States could deal with one agency rather than with separate agencies, one for employment, another for unemployment benefits. It was also argued that the USES should perform the positive function of finding jobs, rather than become merely an adjunct of the unemployment agency in the Social Security Board.

In the debate over the Wages and Hours Division, the proponents held that under Plan 2 of 1946, the Administrator had little power left to him. The opponents cited the lack of safeguards offered to parties affected by a decision of the Administrator, since the Secretary of Labor could overrule him.

Reorganization Plan No. 3 of 1947 (May 27) House Document No. 270

Purpose: With the demise of title I of the First War Powers Act, the emergency housing program would revert to some 13 agencies in 7 departments. It was the purpose of this plan to consolidate these agencies into the Housing and Home Finance Agency consisting of

1. A Home Loan Bank Board to administer the Federal Savings and Loan Insurance Corporation, the Home Owners Corporation and the functions of the Federal Home Loan Bank Board.

2. Transferring the Federal Housing Administration to the new Agency, with the same functions as now provided by law.

3. A Public Housing Administration to take over the functions of the U.S. Housing Authority.

4. The appointment of an Administrator to head the Housing and Home Finance Agency, the three members of the Home Loan Bank Board; and two

Commissioners to head the Federal Housing Administration with respect to the housing agencies and functions formerly administered with the Federal Loan and Federal Works Agencies, and for other purposes.

5. Creation of a National Housing Council. Action: This plan became effective on July 27, 1947. It was referred in each House to the Committee on Expenditures in the Executive Departments, and a resolution of disapproval was introduced in the House (H. Con. Res. 51). Hearings were held in the House on June 9 and 10; these hearings were printed, and a report (H. Rept. 580) was issued. By a voice vote, the House rejected the plan on June 18. Senate Report No. 400 was issued on the House resolution, and on July 22, the Senate refused to concur in the disapproval expressed by the House, the vote being 38 to 47.

The debate on the plan covered these points: Although the Housing and Home Finance Agency would coordinate general functions and supervise its three component agencies, it would be responsible for the operation of its own program. Also, it was argued, it is important to have these agencies connected in order to promote efficient operation in the housing field.

This plan differed in important respects from Plan No. 1 of 1946, which was rejected because it was claimed-it vested too much power in the hands of the Administrator. The present plan sought to avoid this criticism. Furthermore, HHFA then had permanent housing functions transferred to it, functions which in this plan are delegated to the constitutent agencies. Opponents were still fearful of too much centralization and of the possibility that "private housing" programs might become subservient to public housing. There was, as well, a fear of having leading and insuring agencies in the same organization.

CHANGES PROPOSED BY REORGANIZATION PLAN

Reorganization Plan No. 1 of 1948 (January 19) House Document No. 499

Purpose: To transfer the U.S. Employment Service and the Bureau of Employment Security to the Department of Labor.

Action: This plan was rejected. It was referred in each House to the Committee on Expenditures in the Executive Departments. A resolution of disapproval was introduced in the House. Hearings on the plan were held in the House on February 6, 7, and 8, and these hearings were published. Reports were issued by both Houses: House Concurrent Resolution No. 131; House Report No. 1368. Senate Report No. 967 was adverse to the House resolution, being rejected by the committee by a vote of 9 to 4. (For the House debate, see Congressional Record, pp. 1707-1721, and for the Senate debate pp. 2296, 2841, and 2895.) The House vote defeating the plan was a voice vote, taken on February 25. The Senate concurred by a vote of 58 to 26 on March 16, 1948, concerning the above-cited House concurrent resolution.

The objections to the plan, stated in the course of the debates, included these points: That the Labor Department is a partisan organization, whereas the Federal Security Agency is independent; that handling these cases by the Labor Department, being responsibe to pressure by labor organizations, would tend to increase the cost of unemployment compensation. The validity of this argument was questioned, however, because, although the funds were held by the U.S. Government, they are in fact administered by State agencies.

President Harry S. Truman, 1949, 81st Congress, 1st session

IV. REORGANIZATION ACT OF JUNE 20, 1949 2

SUMMARY OF THE ACT

Act of June 20, 1949 (Public Law 109, 81st Cong.; 63 Stat. 203, ch. 226) Reorganization Act of 1949

The President shall investigate all Government departments and agencies determine necessary organizational changes, and prepare related reorganization plans and transmit them to Congress. The President may suggest

See pp. 6-12, for full text of act as amended.

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