Government to another under the provisions of this title, but the court, on motion or supplemental petition filed at any time within twelve months after such transfer takes effect, showing a necessity for a survival of such suit, action, or other proceeding to obtain a settlement of the questions involved, may allow the same to be maintained by or against the head of the agency or other officer of the United States to whom the authority, powers, and duties are transferred. (c) All laws relating to any agency or function transferred to, or consolidated with, any other agency or function under the provisions of this title, shall, insofar as such laws are not inapplicable, remain in full force and effect.

SEC. 9. The appropriations or portions of appropriations unexpended by reason of the operation of this title shall not be used for any purpose, but shall be impounded and returned to the Treasury.

SEC. 10. (a) Whenever the employment of any person is terminated by a reduction of personnel as a result of a reorganization effected under this title, such person shall thereafter be given preference, when qualified, whenever an appointment is made in the executive branch of the Government, but such preference shall not be effective for a period longer than twelve months from the date the employment of such person is so terminated.

(b) Any transfer of personnel under this title shall be without change in classification or compensation, except that this requirement shall not operate after the end of the fiscal year during which the transfer is made to prevent the adjustment of classification or compensation to conform to the duties to which such transferred personnel may be assigned.

SEC. 11. If the reorganizations specified in a reorganization plan take effect, the reorganization plan shall be printed in the Statutes at Large in the same volume as the public laws, and shall be printed in the Federal Register.

SEC. 12. No reorganization specified in a reorganization plan shall take effect unless the plan is transmitted to the Congress before January 21, 1941.

PART 2

SEC. 21. The following sections of this part are enacted by the Congress : (a) As an exercise of the rulemaking power of the Senate and the House of Representatives, respectively, and as such they shall be considered as part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in such House in the case of resolutions (as defined in section 22); and such rules shall supersede other rules only to the extent that they are inconsistent therewith; and

(b) With full recognition of the constitutional right of either House to change such rules (so far as relating to the procedure in such House) at any time, in the same manner and to the same extent as in the case of any other rule of such House.

SEC. 22. As used in this part, the term "resolution" means only a concurrent resolution of the two Houses of Congress, the matter after the resolving clause of which is as follows: "That the Congress does not favor the reorganization plan numbered transmitted to Congress by the President on

19-.", the blank spaces therein being appropriately filled; and does not include a concurrent resolution which specifies more than one reorganization plan.

SEC. 23. A resolution with respect to a reorganization plan shall be referred to a committee (and all resolutions with respect to the same plan shall be referred to the same committee) by the President of the Senate or the Speaker of the House of Representatives, as the case may be.

SEC. 24. (a) If the committee to which has been referred a resolution with respect to a reorganization plan has not reported it before the expiration of ten calendar days after its introduction (or, in the case of a resolution received from the other House, ten calendar days after its receipt), it shall then (but not before) be in order to move either to discharge the committee from further consideration of such resolution, or to discharge the committee from further consideration of any other resolution with respect to such reorganization plan which has been referred to the committee.

(b) Such motion may be made only by a person favoring the resolution, shall be highly privileged (except that it may not be made after the committee has reported a resolution with respect to the same reorganization plan), and debate thereon shall be limited to not to exceed one hour, to be equally divided between those favoring and those opposing the resolution. No amendment to such motion shall be in order, and it shall not be in order to move to reconsider the vote by which such motion is agreed to or disagreed to.

(c) If the motion to discharge is agreed to or disagreed to, such motion may not be renewed, nor may another motion to discharge the committees be made with respect to any other resolution with respect to the same reorganization plan.

SEC. 25. (a) When the committee has reported, or has been discharged from further consideration of, a resolution with respect to a reorganization plan, it shall at any time thereafter be in order (even though a previous motion to the same effect has been disagreed to) to move to proceed to the consideration of such resolution. Such motion shall be highly privileged and shall not be debatable. No amendment to such motion shall be in order and it shall not be in order to move to reconsider the vote by which such motion is agreed to or disagreed to.

(b) Debate on the resolution shall be limited to not to exceed ten hours, which shall be equally divided between those favoring and those opposing the resolution. A motion further to limit debate shall not be debatable. No amendment to, or motion to recommit, the resolution shall be in order, and it shall not be in order to move to reconsider the vote by which the resolution is agreed to or disagreed to.

SEC. 26. (a) All motions to postpone, made with respect to the discharge from committee, or the consideration of, a resolution with respect to a reorganization plan, and all motions to proceed to the consideration of other business, shall be decided without debate.

(b) All appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution with respect to a reorganization plan shall be decided without debate.

SEC. 27. If, prior to the passage by one House of a resolution of that House with respect to a reorganization plan, such House receives from the other House a resolution with respect to the same plan, then

(a) If no resolution of the first House with respect to such plan has been referred to committee, no other resolution with respect to the same plan may be reported or (despite the privisions of section 24 (a)) be made the subject of a motion to discharge.

(b) If a resolution of the first House with respect to such plan has been referred to committee

(1) the procedure with respect to that or other resolutions of such House with respect to such plan which have been referred to committee shall be the same as if no resolution from the other House with respect to such plan hand been received; but

(2) on any vote on final passage of a resolution of the first House with respect to such plan the resolution from the other House with respect to such plan shall be automatically substituted for the resolution of the first House.

TITLE II-BUDGETARY CONTROL

SEC. 201. Section 2 of the Budget and Accounting Act, 1921 (U. S. C., 1934 edition, title 31, sec. 2), is amended by inserting after the word "including" the words "any independent regulatory commmission or board and".

TITLE III-ADMINISTRATIVE ASSISTANTS

SEC. 301. The President is authorized to appoint not to exceed six administrative assistants and to fix the compensation of each at the rate of not more than $10,000 per annum. Each such administrative assistant shall perform such duties as the President may prescribe.

Approved, April 3, 1939.

REORGANIZATION PLAN No. II
[53 Stat. 1431]

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, May 9, 1939, pursuant to the provisions of the Reorganization Act of 1939, approved April 3, 1939

SEC. 5. Department of Agriculture: Rural Eletrification Administration Transferred.-The Rural Electrification Administration and its functions and activi

ties are hereby transferred to the Department of Agriculture and shall be administered in that Department by the Administrator of the Rural Electrification Administration under the general direction and supervision of the Secretary of Agriculture.

PART 4.-GENERAL PROVISIONS

SEC. 401. Transfer of Functions of Heads of Departments.-Except as otherwise provided in this Plan, the functions of the head of any Department relating to the administration of any agency or function transferred from his Department by this Plan, are hereby transferred to, and shall be exercised by, the head of the department or agency to which such transferred agency or function is transferred by this Plan.

SEC. 402. Transfer of Records, Property, and Personnel.-All records and property (including office equipment) of the several agencies, and all records and property used primarily in the administration of any functions, transferred by this Plan and, except as otherwise provided, all the personnel used in the administration of such agencies and functions (including officers whose chief duties relate to such administration) are hereby transferred to the respective departments or agencies concerned, for use in the administration of the agencies and functions transferred by this Plan: Provided, That any personnel transferred to any department or agency by this section found by the head of such department or agency to be in excess of the personnel necessary for the administration of the functions transferred to his department or agency shall be retransferred under existing law to other positions in the Government service, or separated from the service subject to the provisions of section 10 (a) of the Reorganization Act of 1939.

SEC. 403. Transfer of Funds.—So much of the unexpended balances of appropriations, allocations, or other funds available for the use of any agency in the exercise of any function transferred by this Plan, or for the use of the head of any department or agency in the exercise of any function so transferred, as the Director of the Bureau of the Budget with the approval of the President shall determine, shall be transferred to the department or agency concerned for use in connection with the exercise of the function so transferred. In determining the amount to be transferred the Director of the Bureau of the Budget may include an amount to provide for the liquidation of obligations incurred against such appropriations, allocations, or other funds prior to the transfer: Provided, That the use of the unexepended balances of approprations, allocations, or other funds transferred by this section shall be subject to the provisions of section 4 (d) (3) and section 9 of the Reorganization Act of 1939.

SEC. 404. Transfer of functions relating to personnel.-Except as prohibited by section 3 (b) of the Reorganization Act of 1939, all functions relating to the appointment, fixing of compensation, transfer, promotion, demotion, suspension, or dismissal of persons to or from offices and positions în any department vested by law in any officer of such department other than the head thereof are hereby transferred to the head of such department and shall be administered under his direction and supervision by such division, bureau, office, or persons as he shall determine.

Hon. HUBERT H. HUMPHREY,

AUGUST 30, 1957.

Chairman, Subcommittee on Reorganization, Committee on Government Operations, United States Senate.

DEAR SENATOR HUMPHREY: I have carefully considered your further letter of August 22, 1957, about the questions you have raised concerning the rumored changes in the lending policy of the Rural Electrification Administration.

These questions were also discussed in Mr. Morse's letter to you of August 9 and my letter of August 20. Substantially the same questions were raised during my press conference of August 20. A transcript of that portion of the press conference which includes my answers regarding REA was inserted in the Congressional Record of August 21 by Senator Morton.

In both the letters and the press conference I have pointed out that there has been no reorganization of REA. The request to Mr. Hamil that he consult or discuss with the Director of Agricultural Credit Services applications for loans over $500,000 has not curtailed his authority for final approval on these loans. This action was taken in view of the record volume of applications for REA loans and the many complex problems which have arisen in the administration of that

program due to population shifts, increased costs of equipment, machinery and labor, and an increasing demand for more electric current for both farm and nonfarm use.

The changing character of the Nation's countryside is having a marked effect on the territory and electric service requirements of many REA borrowers. City people are moving to the country and building homes. Industry is locating in suburban and rural areas. The REA service territories are losing a good bit of their rural traits. About half of their revenue comes from farm service and the remaining half from nonfarm residences, commercial and miscellaneous services.

The increasing demand for electric power throughout the country is reflected in constantly increasing demands for REA loans to provide needed facilities. REA loan approvals are keeping pace with this trend as shown by the following table:

The request of Mr. Scott to Mr. Hamil that he be given a chance to review the applications for the loans in question was completely compatible with my testimony on Reorganization Plan No. 2. It is in line with the legal authority which exists in the basic law, in the reorganization plan, and in the public notices with respect to that plan which were published in the Federal Register in 1953 and 1954.

In my colloquy with you in the hearings on the reorganization plan held on May 18, 1953, 83d Congress, 1st session, at page 169, you asked whether it was my intention to leave the REA pretty much as an autonomous organization. I replied as follows:

"Certainly I do not have in mind weakening the service which REA is rendering. I think it is very essential, and I do feel that we have selected a good man to help it, and he will be given a pretty free hand, I am sure. But if we have in mind any major changes, certainly we would want to consult with the Congress before we took such steps, because I know there is a very wide interest in that agency, probably as much as in almost any other agency in the Department."

The requirement that these applications be reviewed by the Director of Agricultural Credit Services does not weaken the service which the agency was created by Congress to render. It was not a major change either in policy or in organization. It was not a transfer or an abolition of a function. The authority of the Secretary of Agriculture to make that request of an agency head under his supervision and direction, including REA, existed even before the reorganization plan of 1953 was approved.

REA was created as an independent agency of the Government by the Rural Electrification Act of 1936 (7 U. S. C. 901, 914). Section 1 of the act provided that all of the administration's powers would be exercised by an administrator. However, that section was substantially modified by section 5 of President Roosevelt's Reorganization Plan No. II of 1939 (5 U. S. C., p. 125), which transferred REA and its functions and activities to the Department of Agriculture and provided that such functions and activities shall be administered in that Department by the Administrator of the Rural Electrification Administration under the general direction and supervision of the Secretary of Agriculture.

It appears that in 1944 a question arose about the making of allotments as required by the act. The Department took the position, with the full legal approval of its Solicitor, that the Secretary's duty to supervise and direct the activities of REA not only permitted him to approve the allotments but made it his duty to do so if desirable for the proper operation of the program.

This conclusion was based on decisions of the courts, notably Knight v. United States Land Association, (142 U. S. 161), and the decision of the Comptroller General (19 C. G. 400). In the Knight case the Supreme Court concluded that the words "direction and supervision" are synonymous with the word "control" and import broad powers including the power to initiate, guide, superintend, manage, rule, review, notify, and overrule.

In that case the court was construing words directing the Commissioner of the General Land Office to perform certain functions "under the direction of the Secretary of the Interior." The court said that the words under discussion are an expression of the power of the Secretary to supervise and control the extensive operations of the land department and then quoted with approval the statement of the Secretary of Interior as follows:

"The statute in placing the whole business of the Department under the supervision of the Secretary invest him with authority to review, reverse, amend, annul, or affirm all proceedings in the Department * * *."

See also Orchard v. Alexander, (157 U. S. 372 (1895)); States (252 U. S. 450, 460 (1920)); and

U. S. 200, 220 (1929)).

v. United v. Standard Oil Company, (278

State court decisions also follow this rule. They have held that the terms connote a power to superintend generally together with the incidental authority to regulate and control. v. Heffernan et al. (5 Dak. 180, 38 N. W.

52 (1888)); State ex rel, Board of Transportation v. Fremont, R. & N. V. R. Co., (22 Neb. 313, 35 N. W. 18 (1887)).

The courts apparently do not distinguish between phrases using the word "general" with "direction and supervision" from those where the word “general” is not used. See Great Northern Railway Company v. Snohomish County (93 Pac. 924 (Wash. 1908)).

This conclusion with respect to the Secretary's authority over the Rural Electrification Administration Administrator followed the policy determination of the Department reached in early 1940 in connection with the transfer of the Farm Credit Administration to this Department to be "administered in such Department under the general direction and supervision of the Secretary of Agriculture." The Comptroller General (19 Comp. Gen. 400) said:

"Consequently the Farm Credit Administration must be regarded as no longer an independent agency but as an agency within the Department of Agriculture and under the general direction and supervision of the Secretary of Agriculture *** there would appear to be no authority under existing law for the effecting of such a transfer of authority and responsibility as would amount to a restoration of the Farm Credit Administration to its former status 'an autonomous Federal agency.""

It seems clear therefore that the request that the Rural Electrification Administrator review certain loans with the Director of Agricultural Credit Services is not the exercise of new authority vested in me by Reorganization Plan No. 2 of 1953. Moreover, it is a step which is well within the information given to the Congress and the public at the time Reorganization Plan No. 2 of 1953 was presented, approved, and made effective.

The Administrator of the Farmers' Home Administration is not only requested to discuss major loan problems with the Director of Agricultural Credit Services, but the law requires that all special livestock loans over $50,000 must be approved by the Secretary of Agriculture because of the major problems involved.

Soon after I became Secretary of Agriculture, I alined the agencies of the Department into major groups, each group to report to me through designated officials of the Department. During the Senate hearings on Reorganization Plan No. 2, I furnished and there was included in the hearings two charts showing the organization of the Department effective January 21, 1953, and as amended March 10, 1953. The January 21 chart shows the Farm Credit Administration, the Farmers' Home Administration, and the Rural Electrification Administration grouped under "Agricultural Credit" and that these agencies are to report through the head of that group. The March 10 chart shows substantially the same arrangement (p. 142 and 144, hearings before the Subcommittee on Reorganization of the Committee on Government Operations, United States Senate, on Reorganization Plan No. 2 of 1953 and S. Res. 100 disapproving Reorganization Plan No. 2, 1953, May 12, 13 and 18, 1953 (other references to hearings contained in this letter are to hearings before this subcommittee)).

By Secretary's memorandum 1320, dated January 21 1953, all employees of the Department were advised that "agency and office heads within each group will report to their respective group head.* * * The Secretary and the Under Secretary meeting jointly with the major group heads and the Solicitor will consider matters of policy determination and long range planning This organizational arrangement will make possible closer coordination of related activities and will centralize responsibility for consideration and determination of operating problems and other matters requiring departmental attention within each group. A copy of this memorandum was furnished the subcommittee and appears in the hearings at pages 140–141.