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to exemptions in the previous plan, the functions of the Farın Credit Administration, which would have been transferred to the Secretary under the provisions of Plan No. 4 of 1950, are exempted under the present plan. Provisions are also included to insure that any major change in departmental structure meet with the approval of persons and groups who would be directly affected by such changes by affording them an opportunity to fully present their views before the

proposed reorganizations become effective. The plan further requires that the Secretary of Agriculture shall, in connection with the distribution of the functions of the Department, .do so only in order to simplify and make more efficient the operations affected thereby. The plan would also require the Secretary to continually exert his efforts toward the adaptation of the administration of all farm programs on a decentralized basis at regional, State, and local levels.

The present plan is in line with action taken by the Congress in relation to other departments of the Government. Central administrative authority and control over functions and operations have been vested in the heads of all other departments, except the Department of Defense, on which a plan is now pending, and of many of the independent agencies.

In view of the importance of Federal responsibilities in relation to the development of the agricultural industries and the production of essential food requirements of the people of the Nation, it is imperative that some action be taken without further delay to improve the outmoded structure of the Government in dealing with these problems. The Department of Agriculture, along with the other agencies of the Federal Government, should be brought into alinement with present day programs and policies. It is important that the Congress should do its part in perfecting the organizational structure of those agencies, such as the Department of Agriculture, which are so close to the people, so that they may be made to function properly in their interest, with less cost to the taxpayers. The difficulties involved are recognized by this committee, but we are fully conscious of our responsibility to do everything possible toward effecting improvements in the organizational structure and administration of this important Federal agency.

I desire to insert in the record at this point a copy of the President's message transmitting Reorganization Plan No. 2 of 1953, and a copy of the plan prepared and transmitted to the Senate and House of Representatives on March 25, 1953. Senate Resolution 100, providing for disapproval of the plan, will also be inserted in the record.

(The material referred to is as follows:)

(H. Doc. No. 111, 83d Cong., 1st sess.)

MESSAGE FROM THE PRESIDENT OF THE UNITED STATES, TRANS

MITTING REORGANIZATION PLAN NO. 2 OF 1953 To the Congress of the United States:

I transmit herewith Reorganization Plan No. 2 of 1953, prepared in accordance with the Reorganization Act of 1949, as amended, and providing for reorganizations in the Department of Agriculture.

Reorganization Plan No. 2 of 1953 is designed to make it possible for the Secretary of Agriculture to simplify and improve the internal organization of the Department of Agriculture. It is substantially in accord with the recommendations made in 1949 by the Commission on Organization of the Eexecutive Branch of the Government.

With certain exceptions, Reorganization Plan No. 2 of 1953 transfers to the Secretary of Agriculture the functions now vested by law in other officers, and in the agencies and employees, of the Department. It allows the Secretary to authorize any other officer, agency, or employee of the Department to perform any function vested in the Secretary. He is directed to utilize this delegation authority in such a way as to further certain objectives set forth in the reorganization plan. Those objectives are to simplify and make effective the operation of the Department of Agriculture, to place the administration of farm programs close to the State and local levels, and to adapt the administration of the programs of the Department to regional, State, and local conditions. Further, to the extent deemed practicable by the Secretary, he is required to give appropriate advance public notice and to afford appropriate opportunity for interested persons and groups to present to the Department of Agriculture their views on such proposed delegations of the Secretary as involve assignments of major functions or major groups of functions to major constituent organizational units of the Department or their officers.

Reorganization Plan No. 2 of 1953 will permit the establishment of a clearer line of responsibility and authority from the President through the Secretary of Agriculture down to the lowest level of operations in the Department. It will make the Secretary responsible under law for activities within his Department for which he is now in fact held accountable by the President, the Congress, and the public. Also, it will enable the Secretary, from time to time, to adjust the organization of the Department in order to achieve continuous improvement in operations to meet changing conditions.

The Congress has in the past repeatedly followed the sound policy of vesting functions directly in department heads so that they can be held accountable for the performance of their agencies. In acting upon recommendations of the Commission on Organization of the Executive Branch of the Government, the Congress approved, in 1949 and 1950, a series of statutes and reorganization plans which applied that policy to all the executive departments except the Department of Defense and the Department of Agriculture. While some laws vest important functions directly in the Secretary of Agriculture, others place major functions in subordinate officers and agencies of the Department. By transferring to the Secretary the latter functions, with certain exceptions, the reorganization plan corrects the present patchwork assignment of statutory functions in the Department.

The functions excepted from transfer to the Secretary are the functions of hearing examiners under the Administrative Procedure Act; of the corporations of the Department, including their boards of directors and officers; of the Advisory Board of the Commodity Credit Corporation, and of the Farm Credit Admini. stration and the banks, corporations, and associations supervised by it.

The exception of the hearing examiners is in accordance with the intent of the Administrative Procedure Act, and is consistent with the status of hearing examiners in other departments and agencies.

The corporations of the Department, together with their boards of directors and officers, are excepted because they have a different legal status than other constituent agencies of the Department. Bodies corporate have independent legal personalities and act in their own name rather than in the name of the Department of Agriculture or of the United States.

The same reasons which prompt the exception of the corporations of the Department make desirable the exception of the entities supervised by the Farm Credit Administration. The Farm Credit Administration itself is also excepted, since it is anticipated that general legislation covering this field will be recommended to the Congress.

The Department of Agriculture now has only one Assistant Secretary. Reorganization Plan No. 2 of 1953 provides the Secretary with two more Assistant Secretaries and an Administrative Assistant Secretary to aid him in supervising the Department. The Assistant Secretaries will be appointed by the President, by and with the advice and consent of the Senate. The Administrative Assistant Secretary will be appointed under the classified civil service by the Secretary, with approval of the President. These methods of appointment are similar to those prevailing in other executive departments.

The Secretary will prescribe the functions to be performed by these new assistants. It is his intention to have the new Assistant Secretaries aid him in providing closer policy and program supervision over the Department of Agriculture, and to have the new Administrative Assistant Secretary perform substantially the same role as that performed by the administrative assistant secretaries in other departments. Thus, the new officers will assist the Secretary in giving continuous attention to matters which are essential for the most efficient and economical operation of the Department.

The Secretary of Agriculture has advised me that the 2 new offices of Assistant Secretary of Agriculture, and the 1 new office of Administrative Assistant Secretary of Agriculture, provided for in the reorganization plan, will merely replace existing positions in the Department, and that hence the creation of these offices will not result in any net increase in the personnel in the Department of Agriculture. He has further advised me that both the number of officers and employees in the Office of the Secretary and the aggregate of their salaries will be less than those existing prior to January 1, 1953.

The Secretary of Agriculture, aided by the Interim Agricultural Advisory Committee, has been studying the organization and functions of the Department of Agriculture. Recently the Secretary rearranged the organizational units of the Department so as to form in addition to the Office of the Solicitor and a reorganized Foreign Agricultural Service) four major groups of agencies, each with a supervising head to whom the agencies within the group report. By so doing, the Secretary sought both to reduce the number of separate officials reporting to him and to improve coordination within the Department. Reorganization Plan No. 2 of 1953 will make it possible for the Secretary to make further internal adjustments within the Department as study and experience identify opportunities for improvement. It will thus further the better management of the affairs of the Department of Agriculture.

After investigation I have found and hereby declare that each reorganization included in Reorganization Plan No. 2 of 1953 is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1949, as amended.

I have found and hereby declare that it is necessary to include in the accompanying reorganization plan, by reason of reorganizations made thereby, provisions for the appointment and compensation of two Assistant Secretaries of Agriculture and an Administrative Assistant Secretary of Agriculture. The rates of compensation fixed for these officers are those which I have found to prevail in respect of comparable officers in the executive branch of the Government.

Reductions in expenditures will result from reorganizations of the Department of Agriculture made possible by the taking effect of Reorganization Plan No. 2 of 1953, but such reductions cannot be itemized at this time.

I recommend that the Congress allow the accompanying reorganization plan to become effective.

Dwight D. EISENHOWER. THE WHITE HOUSE, March 25, 1953.

REORGANIZATION PLAN No.

OF 1953 (Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, March 25, 1953, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949, as amended)

DEPARTMENT OF AGRICULTURE SECTION 1. Transfer of functions to the Secretary.-(a) Subject to the exceptions specified in subsection (b) of this section, there are hereby transferred to the Secretary of Agriculture all functions not now vested in him of all other officers, and of all agencies and employees, of the Department of Agriculture.

(b) This section shall not apply to the functions vested by the Administrative Procedure Act (5 U. S. C. 1001 et seq.) in hearing examiners employed by the Department of Agriculture nor to the functions of (1) the corporations of the Department of Agriculture, (2) the boards of directors and officers of such corporations, (3) the Advisory Board of the Commodity Credit Corporation, or (4) the Farm Credit Administration or any agency, officer, or entity of, under, or subject to the supervision of the said Administration.

Sec. 2. Assistant Secretaries of Agriculture.-Two additional Assistant Secretaries of Agriculture shall be appointed by the President, by and with the advice and consent of the Senate. Each such assistant secretary shall perform such functions as the Secretary of Agriculture shall, from time to time, prescribe and each shall receive compensation at the rate prescribed by law for Assistant Secretaries of executive departments.

Sec. 3. Administrative Assistant Secretary: -- An Administrative Assistant Secretary of Agriculture shall be appointed, with the approval of the President, by the Secretary of Agriculture under the classified civil service, and shall perform such functions as the Secretary of Agriculture shall, from time to time, prescribe. The provisions of the item numbered (1) of the third proviso under the heading "General Provisions" appearing in chapter XI of the Third Supplemental Appropriation Act, 1952, approved June 5, 1952 (66 Stat. 121), are hereby made applicable to the position of Administrative Assistant Secretary of Agriculture.

Sec. 4. Delegation of functions.-(a) The Secretary of Agriculture may from time to time make such provisions as he shall deem appropriate authorizing the performance by any other officer, or by any agency or employee, of the Department of Agriculture of any function of the Secretary, including any function transferred to the Secretary by the provisions of this reorganization plan.

(b) To the extent that the carrying out of subsection (a) of this section involves the assignment of major functions or major groups of functions to major constituent organizational units of the Department of Agriculture, now or hereafter existing, or to the heads or other officers thereof, and to the extent deemed practicable by the Secretary, he shall give appropriate advance public notice of delegations of functions proposed to be made by him and shall afford appropriate opportunity for interested persons and groups to place before the Department of Agriculture their views with respect to such proposed delegations.

(c) In carrying out subsection (a) of this section the Secretary shall seek to simplify and make efficient the operation of the Department of Agriculture, to place the administration of farm programs close to the State and local levels, and to adapt the administration of the programs of the Department to regional, State, and local conditions.

Section 5. Incidental transfers.-The Secretary of Agriculture may from time to time effect such transfers within the Department of Agriculture of any of the records, property, and personnel affected by this reorganization plan and such transfers of unexpended balances (available or to be made available for use in connection with any affected function or agency) of appropriations, allocations, and other funds of such Department, as he deems necessary to carry out the provisions of this reorganization plan; but such unexpended balances so transferred shall be used only for the purposes for which such appropriation was originally made.

18. Res. 100, 83d Cong., 1st sess.)

RESOLUTION Resolved, That the Senate does not favor Reorganization Plan Numbered 2 of 1953 transmitted to Congress by the President on March 25, 1953.

Senator Smith. In addition, I include for the record a staff memorandum No. 83-1-10, dated April 9, 1953, setting forth in detail the provisions of the plan, the basic Hoover Commission recommendations applying thereto, and those omitted therefrom; exemptions included; the major differences between Reorganization Plan No. 4 of 1950 and the present plan; an estimate as to the expenditure that will be anticipated through the creation of new positions and the elimination of existing positions and offices within the Department of Agriculture; and the contemplated savings and improved services that will result through improved organization and administration of the Department.

Also included is a copy of Plan No. 4 of 1950.
(The staff memorandum referred to, and Plan No. 4 follow :)

SENATE COMMITTEE ON GOVERNMENT OPERATIONS,

April 9, 1953. Staff Memorandum No. 83-1-10. Subject: Reorganization Plan No. 2 of 1953—Department of Agriculture.

Reorganization Plan No. 2 of 1953, transmitted to the Congress by the President on March 25, 1953, under authority of the Reorganization Act of 1949, provides as follows:

18. Res. 100, disapproving Reorganization Plan No. 2, was introduced in the Senate by Senator Russell on April 9, 1953.

Section 1: Transfers to the Secretary of Agriculture all functions of all officers, agencies and employees of the Department, except, (a) hearing examiners, (b) corporations of the Department, (c) the boards of directors and officers of such corporations, (d) the Advisory Board of the Commodity Credit Corporation, and (e) the Farm Credit Administration, or any agency, officer, or entity under the supervision of the FCA.

Section 2: Authorizes the appointment of 2 additional Assistant Secretaries of Agriculture, by the President with the consent of the Senate, to perform such functions as may be prescribed by the Secretary (salary, $15,000).

Section 3: Authorizes the appointment of an Administrative Assistant Secretary of Agriculture, by the Secretary with the approval of the President, under the classified civil service, who shall perform such functions as the Secretary prescribes (salary, $14,800).

Section 4: (a) Authorizes the Secretary of Agriculture to redelegate any of the functions vested in him to any officer, agency or employee of the Department. Subsection (6) provides that, before the Secretary may assign major functions to any constituent oganizational units, or to the heads or to any officers of such units, he shall give advance public notice to interested persons or groups to afford them an opportunity to express their views with respect to the proposed delegations. Subsection (c) provides that the Secretary shall seek simplify and make more efficient the operations of the Department, place the administration of farm programs close to the State and local levels, and to adapt the administration of the programs of the Department to regional, State, and local conditions.

Section 5: Authorizes the Secretary to transfer within the Department, records, property, personnel, appropriations and funds as required to carry out the provisions of this reorganization plan; but unexpended balances of appropriations transferred shall be used only for the purpose for which they were originally made.

The President stated in his message to the Congress that Reorganization Plan No. 2 of 1953 is designed to make it possible for the Secretary of Agriculture to simplify and make effective the operation of the Department of Agriculture, to simplify and improve the internal organization of the Department, to place the administration of farm programs close to State and local levels, and to adapt administration of the programs of the Department to regional, State, and local conditions. The President emphasized in his message that the plan was in conformity with many of the recommendations of the Hoover Commission, and with similar reorganizations approved by the Congress. These actions vested all administrative functions directly in the department heads, providing & clear line of authority reaching down through every step of the organization, and holding them accountable for the conduct of their departments, as is proposed under the pending plan.

HOOVER COMMISSION RECOMMENDATIONS In its report on general management the Hoover Commission made four recomTM mendations with reference to the centralization of functions and the creation of adequate supervisory staff, applying to all of the departments of the executive branch, as follows:

1. Under the President, the heads of departments must hold full responsibility for the conduct of their departments. There must be a clear line of authority reaching down through every step of the organization and no subordinate should have authority independent from that of his superior.

2. Department heads must have adequate staff assistance if they are to achieve efficiency and economy in departmental operations.

3. Each department head should receive from the Congress administrative authority to organize his department * * *.

4. The department head should be given authority to determine the organization within his department *** The Commission also submitted 16 specific recommendations relating directly to the Department of Agriculture which were designed to bring about better internal organization, improved management, and more effective administration. The following recommendations in this report may be carried out under existing authority or under authority granted to the Secretary by the provisions of Reorganization Plan No. 2 of 1953:

1. Permit the grouping of activities related to the same major purpose.

2. Add two Assistant Secretaries (the Hoover Commission recommended one new Assistant Secretary), and an Administrative Assistant Secretary.

3. Overhaul Department organization at State, county, and farmer levels.

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