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by permitting the Congress and the people to hold it more clearly accountable for the faithful execution of the laws." The message places strong emphasis on civil-service appointments to establish “clear lines of accountability from the top to the bottom of the executive branch," and quotes the following statement by the President's Committee on Administrative Management in 1937 :

“The multiplicity of Presidential appointments defeats the power of the Chief Executive to control his establishment (by robbing) him of time urgently needed for attention to important Executive duties. It interferes with the authority that should be vested in the heads of the several departments for the proper discharge of their responsibilities. It is difficult for them to maintain appropriate relationships, discipline, and morale when their subordinates feel that they have direct and immediate responsibility to the President who appointed them. * *

The message also discusses the great advantages of the Pendleton Act of 1883, which started the successful process of placing all tasks of a non-policy-forming nature “in the hands of civil servants who get and hold their job solely on merit." Finally, this message emphasizes that each of the three plans provides for gradual application of the proposed reorganization.

Supporting the above general message, a separate Presidential message makes additional comments on plan No. 3, to reorganize the Bureau of Customs of the Department of the Treasury (H. Doc. No. 426, dated April 10, 1952). It states that certain obsolete and unnecessary functions are to be abolished, including unduly restrictive fiscal procedures, in order to “promote a more efficient performance of customs functions and a better service to the public."

Some of these abolished functions are requirements carried over from preRevolutionary days when the British Crown provided an independent check on colonial customs revenues through its naval officers. Their abolition under the plan is made possible by two past developments to which the committee has given extended attention and support; namely, (1) the Government's joint accounting program, under which existing procedures have been reviewed by the Bureau of the Budget, the General Accounting Office, and the Treasury Department, and (2) the Budget and Accounting Procedures Act of 19.50.

The message estimates that savings under plan No. 3, from abolition of offices and changes in accounting practices, should be at least $300,000 a year when the plan is in full effect.

Analysis and effect of plan No. 3.–Section 1 of plan No. 3 abolishes the offices “of collector of customs, comptroller of customs, surveyor of customs, and appraiser of merchandise,” who are appointed by the President, subject to Senate confirmation. Their functions are to be assigned to "such civil-service positions as the Secretary of the Treasury may specify."

Section 2 establishes not more than 20 new supergrade offices inder the classified civil service and in addition to the 1949 statutory limit of 400 supergrade appointments : at grade 16 (salary, up to $12,800 a year), grade 17 (up to $13,800), and grade 18 ($14,800). Under that limit the Bureau of Customs now has 1 grade 17 and 4 grade 16 appointments. The Commissioner has ungraded civil-service status with a statutory salary equal to that of grade 18.

Section 3 abolishes the following functions which were transferred to the Secretary of the Treasury by plan No. 26 of 1950: (1) Method of appointment of assistants to many top officials; (2) filling top vacancies; (3) duties of surveyors ; (4) overtime work by New York appraiser; (5) preparation of forins; (6) suspension for delinquency; (7) and (8) detailed accounting and related statutory duties of comptrollers and other top officials; (9) examination of accounts; and (10) certain duties of collectors. These abolitions do not (a) modify similar functions specified elsewhere in the statutes; (b) preclude assignments to Bureau employees which require performance of functions similar to those abolished; or (c) authorize non-Treasury officers or agencies to perform functions now vested by law in the Secretary of the Treasury.

Section 4 provides that the plan shall take effect not later than January 1, 1953, except for unexpired terms of incumbents. (Aside from resignations, etc., 33 terms expire by the end of calendar 1953.)

The effect of plan No. 3 on the number of customs officials depends on future administrative action. The plan abolishes 52 politically appointed offices (44 collectors, 6 comptrollers, 1 surveyor of New York, and 1 appraiser of New York), and transfers their functions to whatever number of career offices is established by annual appropriation, including up to 20 new supergrade career offices beyond the 5 present supergrade appointees. All of the 52 abolished offices now have statutory terms of 4 years, except for the appraiser of New York who has an indefinite term.

DEVELOPMENT AND ORGANIZATION OF BUREAU OF CUSTOMS The history of the Bureau of Customs starts with the very establishment of the American Government. At present, its primary objective is to enforce the Tariff Act of 1930. Principal functions are to enter and clear vessels; supervise discharge of cargo; measure, appraise, and classify imports, and collect duties thereon; control warehousing of imports; inspect international traffic by vessel, highway, railway, and air; review protests against payment of duties; determine admissibility of imports; prevent smuggling ; issue documents to vessels; apprehend violators of customs and navigation laws; enforce Antidumping and Export Control Acts; and perform duties under Foreign Trade Zones Act. The Bureau's collections, number of formal entries (requests for custom's release of imported good), expenditures, and number of employees in selected years are tabulated below:

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Despite a large increase in activities, improved management of the Bureau of Customs has held down the rise in number of employees. This improvement has been based primarily on the McKinsey report which is discussed below.

The organization of the Bureau of Customs is rather complicated. Field operations are located at many different points along the periphery of the United States and its island possessions. Internally, the Bureau consists of 46 customs collection districts, 7 comptrollers' districts, 9 customs agency districts, 32 offices of appraisers of merchandise, and 9 customs laboratories. These types of districts are not uniform, and overlap in considerable degree. Except for 52 politically appointed top officials of the Bureau, these districts are in charge of career employees. Housekeeping has been consolidated with respect to payroll work, personnel records, allotment of funds, purchase of supplies and equipment, and the like.

Among the divisions of the Treasury Department (total of 89,409 employees on January 1, 1952), the Bureau of Internal Revenue is by far the largest (55,433); the Bureau of Customs is a comparatively small second in size of personnel (8,603, 7,930 full-time and 673 part-time and WAE employees); and the two next smaller divisions are the United States Coast Guard and the Bureau of Engraving and Printing (6,118 and 6,089, respectively).

GENERAL BACKGROUND

1948 McKinsey report.--Complaints were voiced by various Senators during the Eightieth Congress over the way in which the Bureau of Customs was spreading the reductions which had been voted in its appropriations. This committee thereupon directed preparation of a staff report which not only helped to correct the immediate situation, but also led to an extended management study by the private consultant firm of McKinsey & Co., which was issued in Janauary 1948. This report involved total expenditures of about $200,000, half for the survey and report, and half for its implementation. In contrast, the Treasury Departmnent states t'at the report is causing the much larger permanent savings of over $1,000,000 a year on a recurring basis.

The McKinsey report recommended that the customs service be reorganized on the basis of 9 or 11 regional offices, that there be 3 assistant collectors in each collector's office, and that 1 of these assistant collectors be in charge of appraisement, classification, and merchandise and baggage inspection. It also recommended that the regional offices be furnished with technical and legal staff to advise the regional collector on all legal and technical phases of customs work. A special committee within the Treasury Department decided against the regional changes as (1) not worth the extra cost involved, and (2) likely to cause a lack of uniformity in decisions.

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DEVELOPMENT AND ORGANIZATION OF BUREAU OF CUSTOMS

The history of the Bureau of Customs starts with the very establishment of the American Government. At present, its primary objective is to enforce the Tariff Act of 1930. Principal functions are to enter and clear vessels; supervise discharge of cargo; measure, appraise, and classify imports, and collect duties thereon; control warehousing of imports; inspect international traffic by vessel, highway, railway, and air; review protests against payment of duties; determine admissibility of imports; prevent smuggling; issue documents to vessels ; apprehend violators of customs and navigation laws; enforce Antidumping and Export Control Acts; and perform duties under Foreign Trade Zones Act. The Bureau's collections, number of formal entries (requests for custom's release of imported good), expenditures, and number of employees in selected years are tabulated below:

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Despite a large increase in activities, improved management of the Bureau of Customs has held down the rise in number of employees. This improvement has been based primarily on the McKinsey report which is discussed below.

The organization of the Bureau of Customs is rather complicated. Field operations are located at many different points along the periphery of the United States and its island possessions. Internally, the Bureau consists of 46 customs collection districts, 7 comptrollers' districts, 9 customs agency districts, 32 offices of appraisers of merchandise, and 9 customs laboratories. These types of districts are not uniform, and overlap in considerable degree. Except for 52 politically appointed top officials of the Bureau, these districts are in charge of career employees. Housekeeping has been consolidated with respect to payroll work, personnel records, allotment of funds, purchase of supplies and equipment, and the like.

Among the divisions of the Treasury Department (total of 89,409 employees on January 1, 1952), the Bureau of Internal Revenue is by far the largest (55,433); the Bureau of Customs is a comparatively small second in size of personnel (8,603, 7,930 full-time and 673 part-time and WAE employees); and the two next smaller divisions are the United States Coast Guard and the Bureau of Engraving and Printing (6,118 and 6,089, respectively).

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Progress under the McKinsey report was recently summarized as follows by customs officials: The total number of recommendations in the report is 178, on which Treasury Department action is completed in the case of 173 recommendations (97.2 percent). Of the latter total, 101 recommendations have been put into effect, 31 have been rejected, 29 require legislative action, 6 have been approved but await necessary appropriations, and 6 were approved but referred to other Federal agencies for implementation.

At recent House committee hearings on the 1953 Treasury-Post Office appropriation bill, questions were raised about the independent actions of customs collectors, appraisers, and comptrollers, possibly because of their political basis of appointment. It was emphasized “that the left hand hardly knows what the right hand is doing," and that to achieve coordination a regionalized organization, such as that included in plan No. 1 of 1952 for the Bureau of Internal Revenue, ought to be given serious consideration.

1949 Hoover Commission recommendations.—The following quotations from Hoover Commission documents relate to plan No. 3 of 1952. The Commission and the plan are in complete accord as to extension of the carreer service, but the plan does not follow the Hoover Commission's proposal of a Consolidated Revenue Service for the Treasury Department, functioning under a politically appointed Assistant Secretary, to be assisted by two career service chiefs of the Bureaus of Customs, and of Internal Revenue. Excerpts from Hoover Commission documents follow:

"One of the chief handicaps to effective organization of the (Treasury) Department is the political appointment of collectors of internal revenue and of customs, and certain other officials. These appointments are regarded by some as sinecures. In any event, they form a bar to orderly development of an experienced staff * * * Recommendation No. 7. The Commission recommends that all officials in the Department below the rank of Assistant Secretary should preferably be appointed from the carrer service without Senate confirmation" (Treasury Department, p. 17).

"Recommendation No. 19: We recommend that to lay the foundation of authority and discipline, the staff officials, and as a rule, bureau chiefs should be appointed by the department heads and that proper consideration be given to the promotion of career employees.” (General Management, pp. 38–39.)

"* * * Political reasons must necessarily dominate the choice of department heads. But the department head must have persons to help him who combine political and administrative talents with emphasis upon the administrative qualifications * * *. We believe that a standard practice should now be introduced in the Federal Government whereby the heads of the subordinate operating units of an executive department are selected by the department head on a merit basis. At the same time we believe that the department head should be free to dismiss any bureau, chief with whom he is unable to collaborate effectively.” (Task Force Appendix E on Department Management, pp. 9, 10.)

Hoover Commission typescript report on Federal field services makes the five following recommendations (vol. 1, pp. 26-27): (1) Customs procedures and regulations should be minimized and liberalized; (2) the existing confusion in both authority and responsibility between the collector and appraiser in the classification of merchandise should be removed as a step to greater efficiency; (3) the positions of collector of customs should be filled through the civil-service merit system, and the responsibility of the collector's office should be consolidated with that of his deputy; (4) the office of the comptroller of customs should be abolished; and (5) the establishment of about eight or nine regional offices on some logical geographical basis is desirable.

Hoover Commission Task Force Report F on Fiscal, Budgeting, and Accounting Activities, urges “a complete reorganization of the major revenue-producing agencies of the Government—the Bureau of Internal Revenue and the Bureau of Customs-into a single service of the Treasury Department” (p. 24).

1951 related proposals.—Of three pending 1951 proposals, S. 1150 was drafted by the Citizens Committee for the Hoover Report to include all outstanding Hoover Commission recommendations relative to the Treasury Department. It was introduced on March 15, 1951, by Senator Humphrey and nine cosponsors, and is now pending before the Subcommittee on Reorganization.

S. 1150 would regroup the functions of the Treasury Department into seven specified administrative units. One of these regroupings would constitute a proposed Consolidated Revenue Service within which the Bureaus of Internal Revenue and of Customs are to be continued. "The Secretary shall provide for the integration of the overhead management, the administrative services, and

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