12. Transfer of ICC rail safety powers to the new Department 13. Background paper concerning the transfer of highway safety and explosives and other dangerous articles functions to the new 23. Organizational background to the Department of Transportation 24. Reorganization of transportation activities of the Federal Govern- ESTABLISH A DEPARTMENT OF TRANSPORTATION TUESDAY, MARCH 29, 1966 U.S. SENATE, COMMITTEE ON GOVERNMENT OPERATIONS, The committee met, pursuant to notice, at 10:10 a.m., in room 3302, New Senate Office Building, Senator John L. McClellan (chairman) presiding. Present: Senators McClellan, Jackson, Gruening, Kennedy of New York, Montoya, Curtis, and Simpson. Also present: James R. Calloway, chief clerk and staff director; Ann M. Grickis, assistant chief clerk; Eli E. Nobleman and W. E. O'Brien, professional staff members; and Arthur A. Sharp, staff editor. OPENING STATEMENT OF THE CHAIRMAN The CHAIRMAN. The committee will come to order. The Chair will make a brief statement, as we open these hearings. Today we begin a series of hearings on S. 3010, a bill to establish a Department of Transportation. This legislation was introduced. by Senator Warren Magnuson at the request of the administration. It is one of several reorganization measures which the administration. wishes to have the Congress consider and which it hopes to have enacted this year. This proposal to create a 12th Cabinet Department, is complex and most comprehensive. Its importance becomes apparent when we realize that it seeks to bring together transportation functions and activities now carried on by some 35 existing departments and agencies. The proposed new Department would, under the terms of the pending bill, have a budget of $6.2 billion, and almost 95,000 personnel. This would rank it fifth in size, in terms of budgets of the executive departments, and fourth in terms of personnel. It is an ambitious proposal affecting numerous Government activities which have an impact upon the lives of many of our citizens and major industries. There is widespread interest in this legislation. In view of this, hearings will be conducted by the full Committee on Government Operations. I have requested, however, and Senator Abraham Ribicoff, chairman of the Subcommittee on Executive Reorganization, has agreed to serve as cochairman with me, for the purpose of holding these hearings. This committee will seek to determine, from the information supplied by witnesses representing the Government, the transportation industry, and other interests whether such a new Department of Transportation is advisable to improve the functions and services of 1 the Government. We hope to ascertain whether such a Department will promote economy and efficiency in Government, and whether it will add to the safety of public transportation on the highways, in the air, and on the sea. Some of the authority proposed in S. 3010 appears quite broad, and we will, of course, want to find out the details. We will want to delve carefully into the proposed procedures to be followed by various agencies transferred to the new Department. The President, in his message on transportation, stated that * America today lacks a coordinated transportation system that permits travelers and goods to move conveniently and efficiently from one means of transportation to another, using the best characteristics of each. We will have to determine whether a reshuffling of Government agencies will bring about the results which the President hopes to achieve. These hearings will be continued tomorrow and, in order to give certain witnesses an opportunity for further study of the legislation and the testimony to be presented today, additional hearings have been tentatively scheduled for May 3 and 4. Beyond these dates, others will be scheduled, if needed, and they will likely be needed. We already have 22 witnesses who desire to appear, and they have been scheduled. Others have requested an opportunity to testify, and many will want to submit prepared statements for the record. There are other committees that have a vital interest in this legislation. This committee, under the rules, has jurisdiction of legislation to reorganize executive agencies of the Government: But there are other committees, and especially the Committee on Commerce and the Committee on Public Works that have a vital interest in this proposed legislation. We certainly will want to give those committees opportunities to examine testimony that we receive here, and to make further comments and recommendations to this committee respecting them. We will welcome their views and extend them every consideration. We are going to study this bill-we are going to examine it carefully and try to do a constructive job. This will take time, perhaps a long time. The chairman begins these hearings with a completely open mind. I have no prejudice against any provision of it. So far as I know now, I have no preconceived conviction as to what should or should not be done. I propose to hear the testimony and study this legislation, and then undertake to discharge my responsibility as chairman of this committee and as a Member of the U.S. Senate. Have you any comment, Senator Jackson? Senator JACKSON. I have no comment, Mr. Chairman. I think the chairman has made a very able statement. The CHAIRMAN. Senator Simpson? Senator SIMPSON. No comment. The CHAIRMAN. Before we proceed any further, I will place in the record at this point a copy of the bill S. 3010 to establish a Department of Transportation; the message from the President of the United States transmitting the proposal to the Congress; and a copy of Staff Memo 89-2-11, dated March 25, 1966. (The documents referred to follow :) 89TH CONGRESS 2D SESSION S. 3010 IN THE SENATE OF THE UNITED STATES MARCH 2, 1966 Mr. MAGNUSON introduced the following bill; which was read twice and referred to the Committee on Government Operations A BILL To establish a Department of Transportation, and for other 1 purposes. Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Department of Trans4 portation Act." 5 DECLARATION OF PURPOSE 6 SEC. 2. The Congress hereby declares that the general 7 welfare, the economic growth and stability of the Nation 8 and its security require the development and implementation 9 of national transportation policies and programs conducive to the provision of fast, safe, efficient, and convenient trans 11 portation at the lowest cost consistent therewith and with 1 other national objectives, including the efficient utilization 2 and conservation of the Nation's resources. 3 4 The Congress therefore finds that the establishment of a Department of Transportation is necessary in the public 5 interest and to assure the coordinated, effective administra6 tion of the transportation programs of the Federal Gov7 ernment; to facilitate the development and improvement of 8 coordinated transportation service, to be provided by private 9 enterprise to the maximum extent feasible; to encourage co10 operation of Federal, State, and local governments, carriers, 11 labor, and other interested parties toward the achievement 12 of national transportation objectives; to stimulate technologi13 cal advances in transportation; to provide general leadership 14 in the identification and solution of transportation problems; 15 and to develop and recommend national transportation 16 policies and programs to accomplish these objectives with 17 full and appropriate consideration of the needs of the pub18 lic, users, carriers, industry, labor, and the national defense. 19 ESTABLISHMENT OF DEPARTMENT 20 SEC. 3. (a) There is hereby established at the seat of 21 government an executive department to be known as the 22 Department of Transportation (hereinafter referred to as the 23 "Department"). There shall be at the head of the Depart24 ment a Secretary of Transportation (hereinafter referred to |