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DEPARTMENT OF TRANSPORTATION
[Materials submitted in Administration Briefing Book]
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 policies 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...
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
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
Department of Commerce and Labor, created in
Federal Security Agency, created in 1939.
1965 (act of Sept. 9, 1965).... 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
growing body of wage earners, a Cabinet-level Department was necessary. The formation of the Department coordinated the programs dealing with labor and placed the workers' interests at the highest executive level. The predecessor of the Department of Labor was the Bureau of Labor formed in the Department of Interior in 1884. made independent in 1888, and placed in a new Department of Commerce and Labor in 1903. But the needs of labor were felt to be of sufficient importance and their problems sufficiently specialized to warrant a separate agency of Cabinet level. The 1913 act forming the Department of Labor transferred to that Department not only the Bureau of Labor (which became the Bureau of Labor Statistics) but the Children's Bureau and the Bureaus of Immigration and Naturalization from the Department of Commerce and Labor. The agencies directly relevant to labor policies were therefore brought under unified administration.
As the Nation emerged from World War II into the era of the cold war, national security was recognized as being of crucial importance. The experience of World War II had shown the necessity of coordination between the air, sea, and land forces for successful prosecution of military objectives. The National Security Act of 1947 formed the National Military Establishment to effectuate coordination between the Departments of the Army, the Navy, and the Air Force. The 1949 Amendments to the National Security Act established the Cabinet-level Department of Defense. Congress recognized that "integrated policies and procedures" and "coordination and unified direction" in the important area of national security could best be developed by the formation of such a Department.
During the immediate postwar period, the country began its journey toward unprecedented prosperity. But with increasing affluence came the recognition that human values were an important part of national welfare. A significant number of programs dealing with the health, education, and welfare of the population had been developed during the 1930's, and new efforts in these areas were given increasing priority. Loose coordination of the programs dealing with human welfare had been achieved by the formation of the Federal Security Agency in 1939. Congress recognized, however, that closer coordination and an integrated approach to the development of positive policies was desirable. To this end it passed Reorganization Plan No. 1 in 1953, forming the Department of Health, Education. and Welfare as the 10th Cabinet Department. The new Department took over the functions of the Federal Security Agency and was directed to develop broad new policy approaches to meet the Nation's growing educational, health, and welfare demands.
The Department of Housing and Urban Development was formed in 1965 to "develop and recommend *** policies" and provide "leadership*** in coordination" to the growing problems of urbanization. Its formation recognized the growing concentration of our population in metropolitan areas and the significance of the problems developing in urban centers. Congress felt that urban affairs warranted "full and appropriate consideration at the national level." The act forming this 11th Cabinet position transferred to the new Department all the functions of the Housing and Home Finance
Agency which had been formed in 1947 to coordinate the Nation's housing programs. But the act recognized that housing was only one part of the growing problems of urbanization, and that effective promotion and coordination in all areas of urban affairs could best be prosecuted by a Cabinet-level Department.
This brief discussion of the history of the latest departments added to the Cabinet points out two primary criteria established by Congress in reviewing the need for reorganization. First, the area of concern must be of primary importance to the national welfare. Second, the need for coordination in programs and the development of new policies must be evident. The existing transportation system and policy meet fully both requirements. Transportation is an essential part of the Nation's industrial system, and as such affects directly the economic growth of the Nation and the welfare of its population. It provides the population with the mobility necessary to meet both its business and pleasure needs; and it is essential to national defense. Transportation has undergone dramatic changes during this century. The development of new modes, primarily the automobile and the airplane, has increased the systems efficiency and the complexity of associated problems. Present programs dealing with transportation are spread among many agencies and the need for coordination of these programs is of primary concern. Broad new policies are needed to maintain and improve the efficiency of the system and to meet future demands which will be placed upon it. For these reasons there is both historical precedent and compelling need for the formation of a Department of Transportation.
4. SECTION-BY-SECTION SUMMARY OF THE BILL
Section 1 provides that the act would be cited as the "Department of Transportation Act."
DECLARATION OF PURPOSE
Section 2 sets forth the basic purposes for the establishment of the Department. Congress would declare that the Nation requires development and implementation of national transportation policies and programs conducive to the provision of fast, safe, efficient, and convenient transportation at the lowest cost consistent therewith and with other national objectives, including the efficient utilization and conservation of the Nation's resources.
Congress would find that a Department of Transportation is necessary in the public interest and to assure the coordinated, effective administration of the transportation programs of the Federal Government; to facilitate the development and improvement of coordinated transportation service to be provided by private enterprise to the maximum extent feasible; to encourage the cooperation of Government, industry, labor, and other interested parties toward the achievement of national transportation objectives; to stimulate technological advances in transportation, to provide leadership in the identification and solution of transportation problems and to develop and recommend national transportation policies and programs with