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Within their respective fields these agencies assist the President in developing plans and policies which extend beyond the responsibility of any single department of the Government. In this they play a role similar in character to that of the various units of the Executive Office of the President. In fact, many of the problems with which they deal require close collaboration with the agencies of the Executive Office.

Since the principal purpose of the National Security Council and the National Security Resources Board is to advise and assist the President and their work needs to be coordinated to the fullest degree with that of other staff arms of the President, such as the Bureau of the Budget and the Council of Economic Advisers, it is highly desirable that they be incorporated in the Executive Office of the President. The importance of this transfer was recognized by the Commission on Organization of the Executive Branch of the Government, which specifically recommended such a change as one of the essential steps in strengthening the staff facilities of the President and improving the over-all management of the executive branch.

Because of the necessity of coordination with other staff agencies, the National Security Council and the National Security Resources Board are physically located with the Executive Office of the President and I have taken steps to assure close working relations between them and the agencies of the Executive Office. This plan, therefore, will bring their legal status into accord with existing administrative practice. It is not probable that the reorganizations included in the plan will immediately result in reduced expenditures. They will, however, provide a firm foundation for maintaining and furthering the efficient administrative relationships already established, and for assuring that we have provided permanent arrangements vitally necessary to the national security.

HARRY S. TRUMAN. THE WHITE House, June 20, 1949.

REORGANIZATION PLAN NO. 4 OF 1949

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, June 20, 1949, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949

Executive Office of the President

The National Security Council and the National Security Resources Board, together with their respective functions, records, property, personnel, and unexpended balances of appropriations, allocations, and other funds (available or to be made available), are hereby transferred to the Executive Office of the President.

[H. Dọc., No. 226, 81st Cong., 1st sess.] MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING RE

ORGANIZATION PLAN No. 5 OF 1949, PROVIDING FOR UNIFIED DIRECTION BY THE CHAIRMAN OF THE UNITED STATES CIVIL SERVICE COMMISSION OF THE

EXECUTIVE AFFAIRS OF THE COMMISSION To the Congress of the United States:

I transmit herewith Reorganization Plan No. 5 of 1949, prepared in accordance with the provisions of the Reorganization Act of 1949. This plan provides for unified direction by the chairman of the United States Civil Service Commission of the executive affairs of the Commission. At the same time, it maintains the advantages of the bipartisan three-member Commission. The Commission will continue to advisс the President on the civil-service system, to issue the basic civil-service regulations, and to assure protection of merit-system principles by conducting investigations and determining appeals.

The need for this reorganization stems from the Government-wide importance of civil-service administration in the executive branch. As in private business, the effectiveness of Government departments and agencies depends in very large part on the competence and morale of the officers and employees. The management of every department and almost every agency and independent establishment is intimately affected by the civil-service system. It is essential that the Commission which directs that system should be effectively organized to discharge its responsibilities. This plan carries into effect one of the major recommendations of the Commission on Organization of the Executive Branch of the Government.

The Civil Service Commission was established in 1883 as a three-member body to aid the President in making the civil-service rules, and to administer a comparatively simple civil-service system. Each Commissioner was made equally responsible under the law for performing the functions assigned to the Commission and the three members functioned as a body in the management of the agency.

Sixty-six years ago the new agency conducted a single major operating program-the recruitment and examination of candidates for admission to the civil service. Eight executive departments then constituted the entire executive branch. The total Federal employment was about 110,000. That is less than are now employed by any one of the five largest executive agencies.

Today the work of the Commission is vastly different, reflecting the great changes in the Government itself and the progress that has been made in personnel management, both in Government and private business. To this original job of recruitment and examination, acts of Congress have subsequently added many other operating programs. Two of these in particular involve large-scale operations: The administration of the civil-service retirement system and the administration of the Classification Act. This augmented program applies today to a government about 20 times as large as that of 1883, employing men and women drawn from almost every American occupation and profession. The statutory structure of the Civil Service Commission itself, however, has not been adjusted over the years to its changing functions.

In its analysis of Federal personnel management, the Commission on Organization of the Executive Branch of the Government stressed the distinction between two types of functions now vested in the Civil Service Commission. In the interest of effective and equitable administration the nature of each of these functions must be recognized.

The development and promulgation of civil-service regulations for the guidance of the departments and agencies under the civil service, and the conduct of hearings on matters appealed by individuals or departments are appropriate for a three-member bipartisan Commission. Here deliberation is important for the protection of the integrity of the civil-service system.

On the other hand, the administrative direction of the day-to-day operations of the Commission's staff requires the unified leadership of one responsible individual. This is particularly so because of the operating relationships with the departments and agencies. Here decisive, prompt, and vigorous action is essential.

The operational functions require a type of leadership different from that useful for the deliberative functions. But under the present statutory organization, the same multiple leadership is provided for both. Accordingly, this reorganization plan separates day-to-day administration from the regulatory and appellate functions. It leaves vested in the full Commission final authority with respect to (1) the formulation of civil-service rules and regulations, (2) hearing and taking action on all types of appeals, (3) the administration of the political-activity statutes, (4) the investigation of all matters pertaining to the civil service, and (5) the function of recommending measures to the President to promote the more effectual accomplishment of the objectives of the civilservice laws and rules.

To aid the full Commission in the exercise of these powers, the plan provides that the regular, full-time personal assistants to the Commission shall be appointed by the Commission itself, and that regional directors and the heads of major administrative units shall be appointed by the Chairman only after consultation with the other Commissioners.

At the same time, to facilitate the most effective and expeditious administration of civil-service matters and related affairs, the plan concentrates operating responsibility and accountability in the Chairman by vesting in him the operating functions under the civil-service rules and regulations. As the chief executive and administrative officer, the Chairman is empowered to appoint, supervise, and direct the Commission staff in the administration of the Commission's affairs. In the conduct of civil-service operations the Chairman is subject to the regulations of the full Commission and to their investigatory powers and appellate jurisdiction. The plan leaves undisturbed the civil-service laws and rules as the controlling body of policy. It preserves the bipartisan nature of the Commission

To provide assurance of undivided responsibility, the plan transfers to the Chairman all of the functions now vested in the President of the Commission, the Executive Director and Chief Examiner, and the Secretary of the Commission.

Thus the plan provides suitable organization arrangements for both the deliberative and the operational functions.

The plan also provides for the position of Executive Director, under the classified competitive civil service. He is to be the chief operating deputy to the Chairman. The Executive Director is authorized to perform the executive and administrative functions of the Chairman in his absence, but is specifically prohibited from sitting as a member or acting member of the Commission.

I have found after investigation and hereby declare that each reorganization included in the plan is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1949. I have also found and hereby declare that by reason of the reorganizations made by this plan, it is necessary to include in the plan provisions for the appointment and compensation of the Executive Director.

It is imporant to consider the economies which will be realized by the adoption of reorganization plans. The Commission on Organization of the Executive Branch of the Government in its report on personnel management stated: . "This is, of course, an area in which it is difficult to develop estimates of savings. After a careful consideration, however, of the various factors involved, the Commission does believe that great savings can be achieved if the Commission's recommendations are put into effect."

The economies to be attained by this plan will result from improvements in the operation of the civil-service system. It is improbable, however, that this plan, in itself, will result in substantial immediate savings. To accomplish the benefits envisioned in the report of the Commission on Organization of the Executive Branch of the Government, this first step of internal adjustment in the organization of the Civil Service Commission should be followed by revisions in basic personnel legislation.

The modification of the Civil Service Commission here proposed is designed to create a modern organization to meet today's problems-an organization which safeguards the merit principles of the civil service and at the same time makes possible the exercise of responsible, unified leadership in the administrative operations of the civil-service system.

HARRY S. TRUMAN. THE WHITE HOUSE, June 20, 1949.

REORGANIZATION PLAN NO. 5 OF 1949

Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, June 20, 1949, pursuant to the provisions of the Reorganization Act of 1949, approved June 20,

1949

Civil Service Commission

SECTION 1. Chairman, United States Civil Service Commission.--The President of the United States shall from time to time designate one of the Civil Service Commissioners constituting the United States Civil Service Commission (hereinafter referred to as the Commission) as the presiding head of the Commission with the title of “Chairman, United States Civil Service Commission."

SEC. 2. Functions of Chairman.-(a) In order to facilitate the most effective and expeditious administration of civil-service matters and related affairs, there are hereby transferred to the Chairman, United States Civil Service Commission, hereinafter referred to as the Chairman, who shall be the chief executive and administrative officer of the Commission:

(1) The functions of the President of the Commission;

(2) The functions of the Executive Director and Chief Examiner of the Commission and of the Secretary thereof;

(3) The functions of the Commission with respect to the appointment of personnel employed under the Commission: Provided, That employees who are engaged regularly and full time in assisting the Commission in the performance of the functions reserved to it under sections 2 (a) (6) (i) to 2 (a) (6) (vii), inclusive, of this reorganization plan shall be appointed by the Commission: And provided further, That the regional directors, and the heads of the major administrative units reporting directly to the Chairman or to the Executive Director, shall be appointed by the Chairman only after consultation with the other Civil Service Commissioners;

(4) The functions of the Commission with respect to the direction of employees of the Commission, the supervision of all activities of such emplovees, the distribution of business among employees and organizational units of the Commission, and the direction of the internal management of the Commission's affairs: Provided, That there are not transferred by the provisions of this

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section 2 (a) (4) any functions with respect to employees whose appointment remains vested in the Commission under the first proviso of section 2 (a) (3), above;

(5) The functions of the Commission with respect to directing the preparation of the budget estimates and with respect to the use and expenditure of the funds; and

(6) The functions of the Commission with respect to executing, administering, and enforcing (A) the civil-service rules and regulations of the President of the United States and of the Commission and the laws governing the same, and (B) the other activities of the Commission, including retirement and classification activities: Provided, That there are not transferred by the provisions of this section 2 (a) (6) the functions of the Commission with respect to:

(i) The preparation of suitable rules in accordance with the provisions of the first subsection of section 2 of the Act of January 16, 1883 (ch. 27, 22 Stat. 403), and the making of an annual report under the fifth subsection of said section 2;

(ii) The promulgation of any rules, regulations, or similar policy directives, now vested in the Commission;

(iii) The prevention of pernicious political activities, including such functions under the Act of July 19, 1940 (54 Stat. 767), as amended;

(iv) The hearing or providing for the hearing of appeals, including appeals with respect to examination ratings, veterans' preference, racial and religious discrimination, disciplinary action, efficiency ratings, and dismissals, and the taking of such final action on such appeals as is now authorized to be taken by the Commission;

(v) The recommendation to the President for transmission to the Congress of such legislative or other measures as will promote an efficient Federal service and a systematic application of merit system principles, including measures relating to the selection, promotion, transfer, performance, pay, conditions of service, tenure, and separation of Federal employees;

(vi) The investigation of matters pertaining to the administration of functions of the Commission or Chairman; nor

(vii) The revision and submission to the Bureau of the Budget of

budget estimates. (b) The functions transferred by the provisions of sections 2 (a) (2) to 2 (a) (6), inclusive, of this reorganization plan shall be performed by the Chairman or, subject to his direction and control, by such officers and employees under his jurisdiction as he shall designate.

(c) Each Civil Service Commissioner, including the Chairman, and duly authorized representatives of the Commission or Chairman, shall have authority to administer oaths pursuant to section 1 of the act of August 23, 1912 (ch. 350 (37 Stat. 372)).

Sec. 3. Executive Director.—There shall be under the Chairman an Executive Director who shall be appointed by the Chairman under the classified civil service. During the absence or disability of the Chairman, or in the event of a vacancy in the office of Chairman, the Executive Director shall perform those functions of the Chairman which are transferred to the Chairman by the provisions of sections 2 (a) (2) to 2 (a) (6), inclusive, of this reorganization plan unless the President shall designate another person so to perform said functions: Provided, That the Executive Director shall at no time sit as a member or acting member of the Commission.

SEC. 4. Offices abolished.The heretofore existing offices of Executive Director and Chief Examiner, and the office of Secretary of the Commission and the title of “President of the United States Civil Service Commission” are hereby abolished. [H. Dọc. No, 227, 81st Cong., 1st sess.] MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING REOR

GANIZATION PLAN No. 6 OF 1949, DESIGNED TO STRENGTHEN THE ADMINISTRATION OF THE UNITED STATES MARITIME COMMISSION BY MAKING THE CHAIRMAN THE EXECUTIVE AND ADMINISTRATIVE OFFICER OF THE COMMISSION AND VESTING IN HIM RESPONSIBILITY FOR THE APPOINTMENT

OF ITS PERSONNEL AND THE SUPERVISION AND DIRECTION OF THEIR ACTIVITIES To the Congress of the United States:

I transmit herewith Reorganization Plan No. 6 of 1949, prepared in accordance with the Reorganization Act of 1949. This plan is designed to strengthen the administration of the United States Maritime Commission by making the Chairman the chief executive and administrative officer of the Commission and vesting in him "responsibility for the appointment of its personnel and the supervision and direction of their activities. After investigation, I have found and hereby declare that each reorganization included in this plan is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1949.

Unlike other major regulatory commissions, the Maritime Commission is responsible not only for the performance of important regulatory functions but also for the administration of large and complex operating and promotional programs. Whereas the budgets of most regulatory agencies amount to only a few million dollars annually, the expenditures of the Maritime Commission exceed $130,000,000 a year. As a result of the war the Commission is the owner of a fleet of over 2,300 ships, aggregating more than 23,00,0000 dead-weight tons.

While it is the policy of the Government, as set forth by the Merchant Marine Act of 1936 and the Merchant Ship Sales Act of 1946, to develop and maintain an adequate and effective merchant marine under private ownership, the Cominission is still confronted with the necessity of carrying on substantial programs for the charter and sale of Government-owned vessels and with the continuing task of maintaining the reserve merchant fleet.

Apart from its functions with respect to the war-built fleet, the accomplishment of the Government's permanent objective with respect to the development of the American merchant marine inevitably involves the Commission to a wide variety of activities. Among these are the regulation of rates and competitive practices of water carriers, the determination of essential trade routes and services, the award of subsidies to offset differences between American and foreign costs, the design and construction of ships, the inspection of subsidized vessels, and the training of seamen.

In the last 2 years the operation of the Maritime Commission has been subjected to independent examination by three bodies—the President's Advisory Committee on the Merchant Marine, the Senate Committee on Expenditures in the Executive Departments, and the Commission on Organization of the Executive Branch of the Government. All of these studies have pointed to difficulties in the conduct of the Commission's business and the necessity of improved organization to strengthen the administration of the agencies. The remedies proposed have differed in some respects, but all the studies have emphasized the need of concentrating in a single official the management of a large part of the agency's work.

During the war such a concentration was temporarily accomplished by Executive order under the authority of the First War Powers Act. In effect, the Chairman of the Commission, as War Shipping Administrator, was made directly responsible for the administration of several major operating programs of the Commission. This arrangement proved its value under the stress of war. About a year after the end of the fighting, however, it was terminated and the organization reverted to the prewar pattern.

As a result of postwar experience, the Commission appointed a general manager in 1948. While this has brought considerable improvement, it has not extricated the Commission from administration to the degree which is desirable.

After careful consideration of the problems involved in improving the operation of the Maritime Commission, I have concluded that the proper action at this time is to concentrate in the Chairman the responsibility for the internal administration of the agency. This is achieved by the proposed reorganization plan by transferring to the Chairman the appointment of the personnel of the agency, except for the immediate assistants of the Commissioners, and the supervision and direction of their work. This is substantially the arrangement recommended

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