INCREASING RATES OF COMPENSATION OF THE HEADS AND ASSISTANT HEADS OF EXECUTIVE DEPARTMENTS AND INDEPENDENT AGENCIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R001000090005-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 104
• Document Creation Date: November 17, 2016
• Document Release Date: July 27, 2000
• Sequence Number: 5
• Publication Date: May 9, 1949
• Content Type: REPORT

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81ST CONGRESS HOUSE OF REPRESENTATIVES I REPORT
1st Session No. 535
INCREASING RATES OF COMPENSATION OF THE HEADS
AND ASSISTANT HEADS OF EXECUTIVE DEPARTMENTS
AND INDEPENDENT AGENCIES
MAY 0, 1949.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. MURRAY of Tennessee, from the Committee on Post Office and
Civil Service, submitted the following
REPORT
The Committee on Post Office and Civil Service, to whom was
referred the bill (H. R. 1689) to increase rates of compensation of the
heads and assistant heads of executive departments and independent
agencies, having considered the same, report favorably thereon with
an. amendment and recommend that the bill as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert the following:
That the rate of basic compensation of the head of each executive department
and of the Secretary of Defense shall be $25,000 per annum.
Sac. 2. (a) The rate of basic compensation of the Administrator for Economic
Cooperation, the Comptroller General of the United States, the Chairman of the
Council of Economic Advisers, the Director of the Bureau of the Budget, the
Chairman of the National Security Resources Board, the Federal Security
Administrator, the Administrator of Veterans' Affairs, each Under Secretary of
an executive department, the Assistant to the Attorney General, the Solicitor
General of the United States, and the First Assistant Postmaster General shall
be $20,000 per annum.
(b) Section 105 of title 3 of the United States Code is amended to read as
follows:
"COMPENSATION OF SECRETARIES AND EXECUTIVE, ADMINIS-
TRATIVE, AND STAFF ASSISTANTS TO PRESIDENT
105. The President is authorized to fix the compensation of the six adminis-
trative assistants authorized to be appointed under section 106 of this title, of the
Executive Secretary of the National Security Council, and of five other secretaries
or other immediate staff assistants in the White House Office as follows: Two at
rates not exceeding $20,000 per annum, three at rates not exceeding $18,000 per
annum, and. seven at rates not exceeding $16,000 per annum."
90480-40-1
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2 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
(c) The first sentence of section 106 of title 3 of the United States Code is
amended to read as follows: "The President is authorized to appoint not to
exceed six administrative assistants and to fix their compensation in accordance
with'section 105 of this title."
SEc. 3. (a) The rate of basic compensation of the Housing and Home Finance
Administrator, the Federal Works Administrator, the Chairman of the Atomic
Energy Commission, the Chairman of the Munitions Board, the Chairman of the
Research and Development Board, the Deputy Administrator for Economic
Cooperation, the Assistant Comptroller General of the United States, the Assistant
Director of the Bureau of the Budget, and the Deputy Administrator of Veterans'
Affairs shall be $18,000 per annum.
(b) The first sentence of section 603 of title 28 of th
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es
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e
(relating to the salary of the Director of the Administrative Office of the United
States Courts) is amended to read as follows:
"The Director shall receive a salary of $17,500 a year."
(c) The rate of basic compensation of the Public Printer, the Librarian of
Congress, the members (other than the Chairman) of the Council of Economic
Advisers, the Director of Central Intelligence, the Federal Mediation and Con-
ciliation Director, and the Assistant Federal Security Administrator shall be
$17,500 per annum,
Si-,c. 4. The rate of basic compensation of the members of the Board of Gover-
nors of the Federal Reserve System; the Director of Aeronautical Research of the
National Advisory Committee for Aeronautics; members of the Civil Aeronautics
Board; the Chairman of the Board of Directors of the Export-Import Bank of
Washington; members of the Federal Communications Commission; members of
the Board of Directors of the Federal Deposit Insurance Corporation (including
the Comptroller of the Currency); members of the Federal Power Commission;
members of the Federal Trade Commission; members of the Interstate Commerce
Commission; members of the National Labor Relations Board; members of the
National Mediation Board; members of the Railroad Retirement Board; the
Chairman of the Board of Directors of the Reconstruction Finance Corporation;
members of the Securities and Exchange Commission; members of the Board of
Directors of the Tennessee Valley Authority; members of the Civil Service Com-
mission; the Chairman of the United States Maritime Commission- members of
the United States Tariff Commission; members (other than the chairman) of
the Atomic Energy Commission; the General Counsel of the National Labor
Relations Board; the Architect of the Capitol; and the Assistant Federal Works
Administrator shall be at the rate of $16,000 per annum.
SLc. 5. (a) The rate of basic compensation of the Housing Expediter; the War
A
A
ssets
dministrator; the Director of Selective Service; the Archivist of the
United States; members of the Displaced Persons Commission; members of the
Indian Claims Commission; members of the War Claims Commission; members
of the Philippine War Damage Commission; members of the Board of Commis-
sioners of the District of Columbia; each Assistant Secretary of an executive de-
partment (including the Fiscal Assistant Secretary of the Treasury); each As-
sistant Attorney General; the Assistant Solicitor General of the United States;
the Counselor of the Department of State; the Second Third, and Fourth As-
sistant Postmasters General; the Associate Federal Mediation and Conciliation
Director; the Deputy Director of Central Intelligence; the Philippine Alien Prop-
erty Administrator; the Chief Assistant L ibrarian of Congress; the Deputy Public
Printer; members (other than the Chairman) of the Board of Directors of the
Export-Import Bank of Washington; members (oth.er than the Chairman) of the
Board of Directors of the Reconstruction Finance Corporation; zn.embers (other
than the Chairman) of the -United States Maritime Commission; Administrator,
Production and Marketing Administration; Com.m.issioner of Internal Revenue;
Director of the Bureau of Prisons; Director, Federal Bureau of Investigation
;
Commissioner of Public Roads; Commissioner of Public Buildings; Commissioner
of Community Facilities; Commissioner of Immigration and Naturalization; Ad-
m.inistrator, Rural Electrification Administration; Commissioner for Social Se-
curity; Commissioner of Reclamation; Chief, Soil Conservation Service; Com-
missioner of Customs; Governor of the Farm. Credit Administration; Chief For-
ester of the Forest Service; Administrator of the Farmers Home Administration;
the three Special Assistants to the Secretary of Defense; and of the Governors of
Alaska, Hawaii, the Virgin Islands, and the Panama Canal shall be at the rate
of $15,000 per annum.. Notwithstanding section 30 of the Act.of May 24, 1924,
as amended (U. S. C., title 5, sec. 152a), the salary of the Legal Adviser of the
Department of State shall continue to be at the rate of $10,330 per annum.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 3
(b) The second sentence of section 603 of title 28 of the United States Code
(relating to the compensation of the Assistant Director of the Administrative
Office of the United States Courts) is amended to read as follows: "The Assistant
Director shall receive a salary of $15,000 a year."
(c) The rate of compensation of the Legislative Counsel of the House of Repre-
sentatives and of the Legislative Counsel of the Senate shall be $12,000 per
annum.
SEc. 6. In any case in which the chairman or other head of a board or. com-
mission and the other members of. such board or commission receive the same
rate of basic compensation under this Act, and such chairman or other head has
important duties or responsibilities not imposed upon other members of such
board or commission, the President is authorized in his discretion to fix the com-
pensation of such chairman or other head at the rate of $18,000 per annum.
SEc. 7. (a) Section 304 of the Postal Rate Revision and Federal Employees
Salary Act of 1948 is hereby repealed effective as of July 3, 1948. No additional
compensation shall be payable by reason of the enactment of this section for any
period prior to the effective date of this Act in the case of any person who is not,
an employee in or under the municipal government of the District of Columbia.
on such date.
(b) Effective as of the first day of the first pay period which began after June
30, 1948, each of the rates of basic compensation provided by sections 412 and'
415 of the Foreign Service Act of 1946 (U. S. C., title 22, sees. 867 and 870) which
do not exceed $10,000 are hereby increased by $330. No additional compensa-
tion shall be payable by reason of the enactment of this section for any period
prior to the effective date of this Act in the case of any person who is not a Foreign
Service officer, a Foreign Service Reserve officer, or a Foreign Service staff officer
or employee on such date.
(c) No person whose compensation is increased by this section shall be entitled
to any overtime pay, or compensation for night and holiday work, as provided
in sections 201, 301, and 302 of the Federal Employees Pay Act of 1945, as amend-
ed, based on the additional compensation provided by this section for any pay
period ending prior to the effective date of this Act.
SEc. 8. This Act shall take effect on the first day of the first pay period which
begins after the date of enactment of this Act.
PURPOSE OF AMENDMENT
The purpose of the amendment is to strike out all after the enact-
ing clause and insert new language agreed to by the committee. (In
the discussion below under "Statement" reference will be made to the
new language of the bill.)
The purpose of this bill is: (1) to establish proper rates of annua
compensation for the heads and assistant heads of executive depart-
ments and agencies; (2) to increase the salaries of 7,598 classified
Federal employees in the municipal government of the District of
Columbia by $330 annually, retroactive to July 1948; and (3) to
provide a $330 annual salary increase in the compensation of the 6,000
officers and employees of the Foreign Service, retroactive to July 1948.
The following chart shows the number of positions affected by the
bill and the estimated cost of the legislation:
Estimated cost of II. R. 1689, as reported
Number
of posi-
tions
Estimated
annual cost
of bill
Sees. 1 through 6: Increase in compensation of top-bracket positions listed in
appendix A ---------------------------------r------ ------------------
See. 7:' ~
7 (a' District of Columbia-------------------------------------------------
7,598
2,507,340
7 (b) Foreign Service of the United States, Department of State-------------
6,000
1,080,000
Total--=---------------------------- ------------------- ------ -----------
6,724,513
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Extensive hearings were conducted with respect to this legislation,
and after much consideration a majority of the committee agreed to
establish the annual compensation of 244 heads and assistant heads
of executive departments and independent agencies as shown in the
bill, as reported, and in appendix A, page 13.
Section 1 establishes the compensation of the head of each executive
department and of the Secretary of Defense at $25,000 per annum.
At present the compensation of Cabinet members is $15,000 per an-
num, and in no case has been changed since 1925. In the judgment
of the committee, upward revisions in the compensation of these
important government officials are long overdue.
Section 2 (a) establishes the compensation of the Comptroller Gen-
eral, the Director of the Bureau of the Budget, the Chairman of the
Council of Economic Advisers, the. Chairman of the N ati.onal Security 0-r
Resources Board, the Federal Security Administrator, the Adminis-
trator of Veterans' Affairs, the Administrator for Economic Coopera-
tion, each Under Secretary of an executive department, the Assistant
to the Attorney General, the Solicitor General of the Unite'd States,
and the First Assistant Postmaster General at $20,000 per annum.
In section 2 (b) the President is authorized to fix the compensation
of his six Administrative Assistants, the Executive Secretary of the
National Security Council and five other secretaries or staff assistants
in the White House Office as follows: two at rates not exceeding
$20,000 annually, three not exceeding $18,000 annually, and seven
not exceeding $16,000 annually.
Section 3 establishes the annual compensation of the Housing and
Home Finance Administrator, Federal Works Administrator, the
Chairman of the Atomic Energy Commission, Chairman of the
Munitions Board, the Chairman of the Research and Development
Board, the Deputy Administrator for Economic Cooperation, the
Assistant Comptroller General, the Assistant Director of the Bureau
of the Budget, and the Deputy Administrator of Veterans' Affairs at
$18,000, and the compensation of the Director of the Administrative
Office of the United States Courts, the Public Printer, the Librarian
of Congress, the Director of Central Intelligence, the Federal Media-
tion and Conciliation Director, the Assistant Federal Security Ad-
ministrator, and the members (other than the Chairman) of the Council
of Economic Advisers, at $17,500 annually.
Section 4 establishes the annual compensation of the Board of
Governors of the Federal Reserve System, the Director of Aeronauti-
cal Research of the National Advisory Committee for Aeronautics,
the Chairman of the Board of Directors of the Export-Import Bank of
Washington, the Comptroller of the Currency, the Chairman of the
Board of Directors of the Reconstruction Finance Corporation, the
Chairman of the United States Maritime Commission, the General
Counsel of the National Labor Relations Board, the Architect of the
Capitol, the Assistant Federal Works Administrator, and the members
of the Civil Aeronautics Board, Federal Communications Commission,
Board of Directors of the Federal Deposit Insurance Corporation,
Federal Power Commission, Federal Trade Commission, Interstate
Commerce Commission, National Labor Relations Board, National
Mediation Board, Railroad Retirement Board, Securities and 'Ex-
change Commission, Board of Directors of the Tennessee Valley
Authority, Civil Service Commission, United States Tariff Commis-
sion, and Atomic Energy Commission (other than the Chairman), at
$ 00
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Section 5 establishes the annual compensation of the Housing
Expediter; the War Assets Administrator; the Director of Selective
Service; the Archivist of the United States; Assistant Director of the
Administrative Office of the United States Courts; each Assistant
Secretary of an executive department; the Fiscal Assistant Secretary
of the Treasury; each Assistant Attorney General; the Assistant
Solicitor General of the United States; the Counselor of the Depart-
ment of State; the Second, Third, and Fourth Assistant Postmasters
General; the Associate Federal Mediation and Conciliation Director;
the Deputy Director of Central Intelligence; the Philippine Alien
Property Administrator; the Chief Assistant Librarian of Congress;
the Deputy Public Printer; the Administrator, Production and Market-
ing Administration; Commissioner of Internal Revenue; Director of
the Bureau of Prisons; Director, Federal Bureau of Investigation;
Commissioner of Public Roads; Commissioner of Public Buildings;
Commissioner of Community Facilities; Commissioner of Immigration
?'"'' and Naturalization; Administrator, Rural Electrification Administra-
tion; Commissioner for Social Security; Commissioner of Reclamation;
Chief, Soil Conservation Service; Commissioner of Customs; Governor
of the Farm Credit Administration; Chief Forester of the Forest
Service; Administrator of the Farmers Home Administration; the
three Special Assistants to the Secretary of Defense.; the Governors of
Alaska, Hawaii, the Virgin Islands, and the Panama Canal; and the
members of the Displaced Persons Commission, Indian Claims Coin-
mission, War Claims Commission, Philippine War Damage Commis-
sion, Board of Commissioners of the District of Columbia, Board of
Directors of the Export-Import Bank of Washington (other than the
Chairman), Board of Directors of the Reconstruction Finance Cor-
poration (other than the Chairman), United States Maritime Com-
mission. (other than the Chairman), at $15,000. The annual. compen-
sation of the Legislative Counsel of the House of Representatives and
of the Legislative Counsel of the Senate is established at $12,000 per
annum.
Section 6 provides that the President is authorized in his discretion
to increase the compensation of any chairman or other head of a
board or commission to $18,000 per annum, when such head has
important duties or responsibilities not imposed upon the other mem-
bers of such board or commission.
Section 7 (a) propose-, to effect a readjustment in the salaries of
? classified Federal employees in the. municipal government of the
District of Columbia. Under this provision, these employees who
were omitted from the Postal Rate Revision and Federal Employees'
Salary Act of 1948, will receive an increase of $330 annually, retro-
active to July 1948. There are 7,598 District of Columbia employees
affected, and the cost of such increase has been estimated by the
Bureau of the Budget to be $2,507,340 annually.
Section 7 (b) provides a $330 annual salary adjustment, retroactive
to July 1948, in the compensation of 6,000 officers and employees of the
Foreign Service whose rates of basic compensation are provided for
under the Foreign Service Act of 1946. Such employees did not
receive the $330 annual increase provided for other Federal employees
under the Postal Rate Revision and Federal Employees' Salary Act
of 1948, which became effective in July 1948. The Bureau of the
Budget estimates that the annual cost of this subsection will be
$1.,980,000.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Section 8 provides that the effective date of the legislation shall be
the first day of the first pay period which begins after the date of
its enactment. This will facilitate the administration of the legisla-
tion, and eliminate unnecessary bookkeeping and pay-roll accounting.
The committee believes that in view of the important responsibilities
and duties of the heads and assistant heads of Government depart-
ments and agencies the annual salary increases provided for in the
bill are moderate and are justified. Past adjustments in the compen-
sation of such officials have been on a piecemeal basis from time to
time as Congress recognized the necessity for action to secure particu-
larly qualified individuals for important assignments. The pattern
of annual pay rates adopted by the committee has established the
relationship which should exist between the annual compensation for
the heads of the executive departments and such compensation for
the heads of the independent agencies, establishments, commissions,
and boards.
In cooperation with the Bureau of the Budget, the committee
secured detailed information with respect to the duties and respon-
sibilities of the 244 Government officials whose salaries are increased
under the provisions of the bill. Appendix B on page 16 contains the
following information regarding each position covered by the bill:
the position title, a brief description of the duties and responsibilities
,
the present salary and the date upon which such salary was established,
the proposed salary, the name of the incumbent and the State of
his residence, the number of employees supervised and the estimated
expenditures for the fiscal year 1949 by the agency in which the posi-
tion is located.
This is the first time information of this nature has been assembled,
and it is believed that such information will be of value in appraising
the importance of the duties of the positions covered by the bill.
The salary increases for these 244 important Government officials
will cost $1,237,173 annually. The committee believes that this small
investment in terms of securing and retaining highly competent
Government officials will be beneficial to the American people.
The committee believes this legislation will provide appropriate
incentives in terms of annual compensation to attract well qualified
and able top-level officials into the Federal Government. As heads
and assistant heads of executive departments and agencies, they
should conduct the affairs of our country more efficiently and more
economically. They will bring with them into the Federal service
extensive experience in handling the affairs of companies in private
industry. They will initiate new procedures and devices for decreas-
ing the cost of government which will result in savings of many millions
of dollars which will more than offset the moderate increases proposed
ift the bill.
In the judgment of the committee, failure to take favorable action
on this measure on the grounds that the annual appropriation of a
little more than a million dollars is too exorbitant will be "penny-wise
and pound-foolish."
During consideration of this measure the committee's attention was
directed to the fact that within the past several years our Government
has suffered because some of its best-qualified and highly competent
officials holding positions covered by the bill left the Federal service
because they could not afford to remain at their present salaries. The
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
committee considers it incongruous that the Government of the United
States, which is charged with the responsibility of administering the
affairs of 145,000,000 people and whose budget is over $40,000,000,000
annually, cannot afford to pay the heads and assistant heads of the
departments and agencies sufficient income to keep them in the Fed-
eral service. While it is recognized that compensation alone is not
the only incentive for attracting competent persons into the Federal
service, it is important that such compensation bear a reasonable rela-
tionship to the duties and responsibilities of the positions being filled.
In its report to the Congress in February 1.949 the Commission on
Organization of the Executive Branch of the Government, usually
referred to as the Hoover Commission, stated that the Congress should
"increase legislative, judicial, and executive salaries at the level of
Assistant Secretary, or its equivalent, and above." The bill ap-
proved by the committee establishes annual compensation consistent
with the report of the Commission's task force.
Witnesses appearing before the committee represented the General
Accounting Office, the Bureau of the Budget, the Civil Service Com-
mission, and the Commission ?on Organization of the Executive
Branch of the Government. They stressed the necessity for im-
mediate salary revisions for the more than 200 heads and assistant
heads of the executive departments and agencies and independent
establishments. Additional statements were submitted to the com-
mittee by Federal and postal employees' organizations, and by execu-
tives in private industry who supported the policy expressed in the bill.
The committee made downward adjustments in the increases pro-
posed in the bill as introduced, but it believes the compensations fixed
by the bill as reported are fair and reasonable. The annual compensa-
tion fixed by the committee is based upon the duties and responsibil-
ities of the positions covered by the bill. Surveys show that the com-
pensation paid executives in private industry far exceeds that which
is paid Government executives performing even more important work.
It is recognized that the Federal Government can never compete with
private industry in this respect. However, the annual compensation
provided for in the bill establishes a better relationship between Gov-
ernment and private industry than exists at the present time.
Since July 1, 1945, the annual compensation of Federal employees
has been substantially increased. The heads and assistant heads of
the departments and agencies covered by this bill have not received
such statutory increases. Except in a few cases, upward salary adjust-
ments have not been made during the past 25 years in the salaries of
the 244 top-level officials included in the bill. Moreover, in those
instances where the annual compensation of heads and assistant heads
of independent establishments and agencies has been fixed since 1940,
the salary adjustments have resulted in a disproportionate relationship
between those positions and similar positions established prior to the
war years.
In establishing the annual compensation for heads and assistant
heads of agencies created since World War II, a more realistic approach
has been made by Congress, e. g., the Administrator for Economic
Cooperation receives a salary of $20,000 annually, the Deputy Ad-
ministrator for Economic Cooperation $17,500 annually, the Chair-
man of the Atomic Energy Commission $17,500 annually, the Housing
and Home Finance Administrator $16,500 annually, and the members
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of the Council of Economic Advisers $15,000 annually. In view of the
recent action by Congress with respect to these salaries the committee
made only minor adjustments in them. Also, such congressional
action served as a guide to the committee in establishing the com-
pensation of the remainder of the positions covered by the bill.
The committee recognizes that consideration should be given to a
comprehensive revision of the entire salary structure of the Federal
Government, and intends to give this matter attention as soon as
possible. However, it must be stressed that this legislation is the
first step toward a realistic revision of the Government's pay structure.
The foregoing statement represents the views of a majority of the
members of the committee.
The reports concerning this legislation from the Bureau of the
Budget and the Civil Service Commission, both dated February 3,
1949; and a letter from the President of the United States to the
Speaker of the House of Representatives with respect to this problem,
dated January 6, 1949, are as follows:
UNITED STATES CIVIL SERVICE COMMISSION,
IIon. Twa MURRAY, Washington 25, D. C., February 3, 1949.
Chairman, Committee on Post Office and Civil Service,
United States House of Representatives
DEAR MR. MURRAY: Receipt is acknowledged of your letter of January 28, 1949,
requesting the Commission's views with respect to H. R. 1689, a bill "To increase
rates of compensation of the heads and assistant heads of executive departments
and independent agencies."
IT. R. 1689 consists of the unenacted provisions of S. 103. This bill was
reported out favorably by the Senate Post Office and Civil Service Committee on
January 11, 1949, considered on the floor of the Senate on January 13, 1949, and
passed with certain provisions, now in II. R. 1689, eliminated.
These provisions-
1. Would establish a new pay schedule for heads and assistant heads of execu-
tive departments and independent agencies, members of independent boards and
commissions, governors of territories or possessions (except Puerto Rico), and
certain White house officials. A salary rate of $25,000 is established for heads of
executive departments, in lieu of the present rate of $15,000 per annum. For the
other positions a new range of pay is fixed with. rates of $17,500, $20,000, and
$22,500. Each of these rates is applied to the positions specifically enumerated in
the various sections of the bill.
2. Would apply to statutory rates of pay in the District of Columbia municipal
government (except those for police, fire fighters, and teachers) and in the Foreign
Service of the United States under the State Department, the $330 increase
authorized generally by Public Law 900, Eightieth Congress, effective July 11,
1948, from the benefits of which these groups have been excluded.
The Commission has on several occasions since 1945 emphasized the need for a
systematic, comprehensive rescheduling of the salary rates for the topmost ad-
ministrative and executive positions in the Federal Government. Legislation ac-
complishing this purpose has long been needed. It is a prerequisite, it seems to
us, to a sound and lasting solution, through a revision of the Classification Act of
1923, as amended, of the problem of revising existing salary rates for positions,
such as heads of bureaus which are, organizationally at least, just below those
covered by II. R. 1689.
We are in favor of extending the $330 per annum increase of last July to those
employees of the District of Columbia municipal government who theretofore had
received the benefits of the Federal Employees Pay Acts of 1945 and 1946.
We believe that the same action should be taken. with reference to the statu-
tory pay scales under the Foreign Service Act of 1946. However, unlike the
District of Columbia employees, none of the officers or employees in the Foreign
Service of the United States under the State Department is compensated under
the Classification Act of 1923, as amended. That Service has its own set of com-
pensation schedules, consisting of three :parts: One for ambassadors and other
chiefs of mission, one for Foreign Service officers, and one for Foreign Service
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 9
staff officers and employees. The ceiling rate of the topmost schedule was raised
from $17,500 to $25,000 in 1946, and the whole set of schedules was then recon-
structed. Whether or not this matter is under the jurisdiction of the House Post
Office and Civil Service Committee, we believe that concurrently with a revision
of the Classification Act of 1923, as amended, there should be a parallel revision
of the Foreign Service schedules.
We recommend enactment of II. R. 1689. The committee's report on S. 103
(S. Rept. No. 1, 81st Cong.) treats the subject fully. H. It. 1689 is highly desir-
able legislation that should be promptly enacted.
The proposed bill is in accord with the President's financial and administrative
program. On January 6, 1949, he recommended, in a letter to the Speaker of the
House of Representatives, House Document No. 34, the passage of legislation of
this type.
By direction of the Commission:
Sincerely yours,
HARRY B. MITCHELL,
President.
EXECUTIVE OFFICE OF THE PRESIDENT,
BUREAU OF THE BUDGET,
Washington 25, D. C., February 3, 1949.
Chairman, Committee on Post Office and Civil Service,
House of Representatives,
Washington 25, D. C.
MY DEAR MR. MURRAY: The Bureau appreciates your invitation of January
24, 1949, to report upon 11. It. 1689, which proposes to increase the compensation
of the heads of the executive departments, the Secretary of Defense, the heads of
independent agencies of the Government, and certain other specified officials.
We note that, in addition, the bill makes provision for granting to employees of
the District of Columbia government, and certain Foreign Service officers and
personnel, the pay increase of $330 which was extended to Government employees
generally by the Federal Employees Salary Act of 1948.
The President has on numerous occasions indicated his desire to see these
objectives achieved. His reasons fqr this position were made available as recently
as December 31, 1948, in the testimony presented to a subcommittee of the Senate
Civil Service Committee by Mr. James E. Webb, former Director of the Bureau
of the Budget, upon S. 103. Sections 2 through 8 of this latter bill are virtually
identical with the provisions of Ii. R. 1689.
The Bureau feels no hesitancy, therefore, in reporting that the enactment of
H. R. 1689 would be in accord with the program of the President.
Sincerely yours,
FRANK PACE, Jr., Director.
THE WHITE HOUSE,
Washington, January 6, 1949.
The honorable the SPEAKER OF THE IIouSE OF REPRESENTATIVES,
Washington, D. C.
DEAR MR.. SPEAKER: I request that the Congress take prompt action to in-
crease the compensation of the heads and assistant heads of the executive depart-
ments and of other Government officers of comparable rank.
Inadequate salaries have long made it difficult to obtain and hold able men for
positions of greatest responsibility in the Government service. For most of those
positions, there have been no pay increases in many years. In the meantime,
other salaries, in both government and industry, have risen sharply, and opportuni-
ties for larger compensation in private industry have greatly expanded.
In recent years, the difficulties of obtaining . and holding the best qualified
citizens for official positions has definitely impaired the Government service.
This condition has now progressed to the point where it constitutes a serious
threat to the efficiency of the Government.
The men who hold the offices in question must translate into action the policies
determined upon by the Congress. Their ability determines in large measure
whether these policies are to succeed or fail. The national interest requires that
we get and keep in these positions the most capable men and women that can be
found. To do this, we must pay fair salaries.
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10 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
I recognize that the Government cannot pay salaries equal to those in private
industry for positions of comparable importance. But it can reduce the discrep-
ancy enough to permit able and public-spirited citizens to serve the Government
without too great a disadvantage.
Fortunately, the Congress is in a position to take intelligent and considered
action on this problem without delay. Within the last month, extensive evidence
on the subject has been presented to a Senate subcommittee and is now available
to the Congress. This evidence includes supporting testimony by former Presi-
dent Hoover, as Chairman of the Commission on Organization of the Executive
Branch of the Government. The subcommittee examined the problem carefully,
fairly, and without partisanship. The bill which they developed, and which has
now been introduced in the Eighty-first Congress, is the result of more than a
year's study.
That bill establishes a salary range of from $17,500 to $25,000 for the officials
in question. These provisions are in accordance with recommendations made to
the subcommittee by the Administration. I urge their passage in their present
form. Questions concerning the. compensation of Federal officers and employees
not included in this bill should not be permitted to impede or delay its passage,
but should be considered separately at an early date.
On January 20, a new Presidential term will begin. During that term the
executive branch of the Government will be called upon to bear responsibilities
of great magnitude. Prompt action on this bill is of great importance to me in
strengthening the management of the executive branch to meet those responsibili-
ties. Its small cost will be repaid many times. I ask the Congress to give me the
means which will make it possible for me to get and keep the men who are required
for the job ahead.
I hope that this legislation will be enacted into law immediately.
Sincerely yours,
CHANGES IN EXISTING LAW
In compliance with paragraph 2a of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill, as
introduced, are shown as follows (existing law proposed to be omitted
is enclosed in black brackets, now matter is printed in italics, existing
law in which no change is proposed is shown in roman) :
TITLE 3 OF UNITED STATES CODE
[SECRETARY TO THE PRESIDENT; COMPENSATION
[? 105. The compensation for the position of Secretary to the President shall
be at the rate of $10,000 per annum.]
COMPENSATION OF SECRETARIES AND EXECUTIVE, ADMINISTRATIVE, AND STAFF
ASSISTANTS TO PRESIDENT
SEC. 105. The President is authorized to fix the compensation of the six adminis-
trative assistants authorized to be appointed under section 106 of this title, of the
Executive Secretary of the National Security Council, and of five other secretaries or
other immediate staff assistants in the White [louse Off Ice as,follows: Two at rates not
exceeding $22,500 per annum, three at rates not exceeding $20,000 per annum, and
seven at rates not exceeding $17,500 per annum.
? 106. 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] their compensation in accordance with section 105 of this
title. * * *
TITLE 28 Or UNITED STATES CODE
? 603. Salaries
The Director shall receive a salary of [$10,000] $20,000 a year. The Assistant
Director shall receive a salary of t$7,500] $17,500 a year.
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[Sec. 304. The provisions of this Act granting an increase in compensation to
employees of the United States and of the District of Columbia shall not apply
to any employee in or under the municipal government of the District of Columbia
prior to the time that legislation providing adequate revenues to meet the obliga-
tion in the District of Columbia is enacted by the Congress and becomes effective. ]
Sac. 412. There shall be seven classes of Foreign Service officers, including the
class of career minister. The per annum salary of a career minister shall be
$13,500. The per annum salaries of Foreign Service officers within each of the
other classes shall be as follows:
Class 1, $12,000, $12,400, $12,800, $13,200, $13,500;
Class 2, [$10,000] $10,330, $10,350, $10,700, $11,050, $11,400, $11,750, $11,900;
[Class 3, $8,000, $8,300, $8,600, $8,900, $9,200, $9,500, $9,800, $9,900;
[Class 4, $6,000, $6,300, $6,600, $6,900, $7,200, $7,500, $7,800, $7,900;
[Class 5, $4,500, $4,700, $4,900, $5,100, $5,300, $5,500, $5,700, $5,900;
[Class 6, $3,300, $3,500, $3,700, $3,900, $4,100, $4,300, $4,400.]
Class 3, $8,330, $8,630, $8,930, $9,230, $9,530, $9,830, $10,130, $10,230;
Class 4, $6,330, $6,630, $6,930, $7,230, $7,530, $7,830, $8,130, $8,230;
Class 5, $4,830, $5,030, $5,230, $5,430, $5,630, $5,830, $6,030, $6,230;
Class 6, $3,630, $3,830, $4,030, $4,230, $4,430, $4,630, $4,730.
Sac. 415. There shall be twenty-two classes of Foreign Service staff officers
and employees, referred to hereafter as staff officers and employees. The per
annum rates of salary of staff officers and employees within each class shall
be as follows:
[Class 1, $8,820, $9,120, $9,420, $9,720, $10,000;
[Class 2, $8,100, $8,340, $8,580, $8,820, $9,120;
[Class 3, $7,380, $7,620, $7,860, $8,100, $8,340;
[Class 4, $6,660, $6,900, $7,140, $7,380, $7,620;
[Class 5, $6,120, $6,300, $6,480, $6,660, $6,900, $7,140;
[Class 6, $5,580, $5,760, $5,940, $6,120, $6,300, $6,480;
[Class 7, $5,040, $5,220, $5,400, $5,580, $5,760, $5,940;
[Class 8, $4,500, $4,680, $4,860, $5,040, $5,220, $5,400;
[Class 9, $3,960, $4,140, $4,320, $4,500, $4,680, $4,860;
[Class 10, $3,600, $3,720, $3,840, $3,960, $4,140, $4,320, $4,500;
[Class 11, $3,240, $3,360, $3,480, $3,600, $3,720, $3,840, $3,960;
[Class 12, $2,880, $3,000, $3,120, $3,240, $3,360, $3,480, $3,600;
[Class 13, $2,520, $2,640, $2,760, $2,880, $3,000, $3,120, $3,240;
[Class 14, $2,160, $2,280, $2,400, $2,520, $2,640, $2,760, $2,880;
[Class 15, $1,980, $2,040, $2,100, $2,160, $2,280, $2,400, $2,520;
[Class 16, $1,800, $1,860, $1,920, $1,980, $2,040, $2,100, $2,160;
[Class 17, $1,620, $1,680, $1,740, $1,800, $1,860, $1,920, $1, 980
[Class 18, $1,440, $1,500, $1,560, $1,620, $1,680, $1,740, $1,800;
[Class 19, $1,260, $1,320, $1,380, $1,440, $1,500, $1,560, $1,620;
[Class 20, $1,080, $1,140, $1,200, $1,260, $1,320, $1,380, $1,440;
[Class 21, $900, $960, $1,020, $1,080, $1,140, $1,200, $1,260;
[Class 22, $700, $780, $840, $900, $960, $1,200, $1,080]
Class 1, $9,150, $9,450, $9,750, $10,050, $10,330;
Class 2, $8,430, $8,670, $8f910, $9,150, $9,150;
Class 3, $7,710, $7,950, $8,190, $8,430, $8,670;
Class 4, $6,990, $7,230, $7,470, $7,710, $7,950;
Class 5, $6,450, $6,630, $6,810, $6,990, $7,230, $7,170;
Class 6, $5,910, $6,090, $6,270, $6,450, $6,630, $6,810;
Class 7, $5,370, $5,550, $5,730, $5,910, $6,909, $6,270;
Class 8, $4,830, $5,010, $5,190, $5,370, $5,550, $5,730;
Class 9,44,290, $4,470, $4,650, $4,830, $5,010, $5,190;
Class 10, $3,930, $4,050, $4,170, $4,290, $4,470, $4,650, $4,830;
Class 11, $3,570, $3,690, $3,810, $3,930, $4,050, $4,170, $4,290;
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12 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Class 12,
$3,210,
$3,330,
$3,450,
$3,570,
$3,690,
$3,810,
$3,930;
Class 13,
$2,850,
$2,970,
$3,090,
$3,210,
$3,330,
$3,450,
$3,570;
Class 14,
$2,490,
$2,610,
$2,730,
$2,850,
$2,970,
$3,090,
$3,210;
Class 15
$2,310,
$2,370,
$2,430,
$2,490,
$2,610,
$2,730,
$2,850;
Class 16,
$2,130,
$2,190,
$2,250,
$2,310,
$2,370,
$2,430,
$2,490;
Class 17,
$1,950,
$2,010,
$2,070,
$2,130,
$2,190,
$2,250,
$2,310;
Class 18,
$1,770,
$1,830,
$1,890,
$1,950,
$2,010,
$2,070,
$2,130;
Class 19,
$1,590,
$1,650,
$1,710,
$1,770,
$1,830,
$1,890,
$1,950;
Class 20,
$1,410,
$1,4.70,
$1,530,
$1,590,
$1,650,
$1,710,
$1,770;
Class 21,
$1,230,
$1,290,
$1,350,
$1,410,
$1,470,
$1,530,
$1,590;
Class 22,
$1,050,
$1,110,
$1,170,
$1,230,
$1,290,
$1,350,
$1,410.
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APPENDIX A
Positions affected by H. R. 1689, describing present pay, amounts proposed in H. R.
1689 and H. R. 1689 as amended by House Post Office and Civil Service Committee,
with increases
Annual compensation
Positions included in H. R. 1680, as amended
Num-
ber
Increase I
Present
H
R
1089
H R.1689,
.
.
amended
SEC. 1
Secretary, Department of State_______________________
1
$1.5,000
$25,000
$25,000
$10,000
Secretary, Department of the Treasury_______________
1
15,000
25,000
25,000
10,000
Secretary of Defenso__________________________________
1
15,000
25,000
25,000
10,000
Secretary, Department oftheArmy ------------------
1
15,000
25,000
25,000
10,000
Secretary, Department of the Navy__________________
1
15,000
25,000
25,000
10,000
Secretary, Department of the Ali- Force______________
15,000
25,000
25,000
10,000
Attorney General, Department of Justice_____________
15, 000
25,000
25,000
10,000
Postmaster General, Post Office Departmment_________
15,000
25,000
25,000
10,000
Secretary, Department of Interior___ ________________
1
15,000
25,000
25,000
10,000
Secretary, Department of Agriculture________________
15,000
25,000
25,000
10,000
Secretary, Department of Commerce_________________
1
15,000
25,000
25,000
10,000
Secretary, Department of Labor________________
15,000
25,000
25,000
10,000
SEC. 2 (a)
Under Secretary, Department of State________________
1
12,000
22,500
20,000
8,000
Under Secretary, Department of Treasury____________
1
10, 000
22, 500
20, 000
10,000
Under Secretary of Defense ----------------------------
1
12,000
22,600
20,000
8,000
Under Secretary, Department of the Armny___________
1
10,000
22,500
20,000
10,000
Under Secretary, Department of the Navy___________
1
10,000
22,500
20,000
10,000
Under Secretary, Department of the Air Force_______
1
10,000
22,500
20,000
10,000
Assistant to the Attorney General, Department of
Justice ---------------------------------------------
1
10,330
22,500
20,000
9,670
Solicitor General, Departmentof Justice ---------------
1
10,330
22,500
20,000
9,670
First Assistant Postmaster General, Post Office Do-
partmont -------------------------------------------
1
10,330
22,500
20,000
9,670
Under Secretary, Department of Interior_____________
1
10,330
22,500
20,000
9,670
Under Secretary, Department of Agriculture---------
1
10,330
22, 500
20,000
9,670
Under Secretary, Department of Commerce__________
1
10,000
22,500
20,000
10,000
Under Secretary, Department ofLabor ---------------
1
10,330
22,500
20,000
9,670
Comptroller General of theUnited States -------------
1
12,000
22,500
20,000
8,000
Director of the Bureau of the Budget_________________
1
10,000
22,500
20,000
10,000
Chairman of Council of Economic Advisers___________
1
15, 000
22, 500
20, 000
5,000
Chairman, National Security Resources Board- ______
1
14, 000
22,500
20, 000
61000
Administrator of Federal Security____________________
1
12,000
22,500
20,000
8,000
Administrator of Veterans' Affairs____________________
1
12,000
22,500
20,000
8,000
Administrator for Economic Cooperation_____________
1
20,000
22,500
20,000
_
SEC. 2 (b)
Assistant to the President____________________________
1
15,000
(2)
(3)
(+)
Special Counsel to the President______________________
1
12,000
(2)
(3)
(r)
Secretaries tothePresident ---------------------------
3
10,330
(2)
(3)
(a)
Administrative Assistants to the President -----------
6
10,330
(2)
(3)
(4)
Executive Secretary, National Security Council_
1
10,000
(2)
O
(a)
SEC. 3 (a)
Assistant Comptroller General_______________________
1
10,330
20,000
18,000
7,670
Assistant Director of the Bureau of the Budget_______
1
10,330
20, 000
18,000
7,670
Chairman of the Munitions Board___________________
1
14,000
20,000
18,000
4,000
Chairman of the Research and Development Board___
1
14,000
20, 000
18, 000
4, 000
Chairman of Atomic Energy Commission ------------
1
17, 500
22, 500
18,000
500
Federal Works Administrator ------------------------
- 1
12,000
20,000
18,000
6,000
[lousing and Homo Finance Administrator--------___
1
16,500
20, 000
18, 000
1,500
Deputy Administrator of Veterans' Affairs___________
1
10,330
20,000
18,000
7,670
Deputy Administrator for Economic Cooperation-- _ _
1
17, 500
20, 000
18, 000
500
r The increase is the difference between annual compensation provided for in H. R.1689, as amended, and
present compensation.
2 Rates of compensation to be fixed by the President as follows: 2 not exceeding $22,500 annually; 3 not
exceeding $20,000 annually; and 7 not exceeding $17,500 annually.
3 Rates of compensation to be fixed by the President as follows: 2 not exceeding $20,000 annually; 3 not
exceeding $18,000 annually; and 7 not exceeding $16,000 annually.
4 Estimated total increase in annual salaries of 12 positions covered in subsoc. 2 (b) is $76,030.
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14 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Positions affected by H. R. 1689, describing present pay, amounts proposed in II. R.
1689 and H. R. 1689 as amended by house Post Of we and Civil Service Committee,
with increases--Continued
Annual compensation
-
Positions included in H. R. 1689, as amended
Nu in-
ber
Increase
Present
R
1689
I
H. R. 1689,
.
.
amended
SEC. 3 (b)
Director of the Administrative Office of the United
States Courts ---------------------------------------
1
$10,330
$20,000
$17,500
$7,170
SEC. 3 (c)
PublicPrinter ----------------------------------------
1
10,330
20,000
17,500
7,170
Librarian of Congress_________________________________
1
10,330
20,000
17,500
7,170
Members (other than Chairman) of the Council of
Economic Advisers_________________________________
2
15,000
20,000
17,500
2,500
Director (Central Intelligence -------------- __--------
1
14,000
20,000
17,500
3500
Federal Mediation and Conciliation Director---------
1
12, 000
20,000
17, 500
6, 500
Assistant Federal Security Administrator ------------
1
10, 000
20,000
17,500
7, 500
SEC. 4
Architect of the Capitol_____________________ ________
1
10,330
17,500
16,000
5,670
Members (other than Chairman) of Atomic Energy
Commission________________________________________
4
15,000
20,000
16,000
1,000
Members of the Civil Aeronautics Board:
Chairman ------------- _---------------------------
1
12,000
17,500
16,000
4,000
Members-----------------------------------------
4
11,500
17,500
16,000
4,500
Chairman of the Board of Directors, Export-Import
Bank of Washington_______________________________
1
1.5,000
17,500
16,000
1,000
Members of the Federal Communications Commis-
sion-----------------------------------------------
7
10,000
17,500
16,000
6,000
Members of the Board of Directors of the Federal
Deposit Insurance Corporation (including the
Comptroller of the Currency) -----------------------
3
15,000
17,500
16,000
1,000
Members of the Federal Power Commission -----------
5
10,000
17,500
16,000
6,000
Mombers of the Board of Governors of the Federal
Reserve System:
Chairman_________________________________________
1
15,000
22,500
16,000
1,000
Members__________________________________________
6
15,000
20,000
16,000
1,000
Members of Federal Trade Commission ---------------
5
10,000
17,500
16,000
6,000
Assistant Federal Works Administrator ---------------
1
10,000
17,500
16,000
6,000
Members of the Interstate Commerce Commission---
it
12, 000
17, 500
16,000
4,000
Director of Aoronautical Research of the National
Advisory Committee for Aeronautics __________-_. _
1
10,330
17,500
16,000
5,670
Members of the National Labor Relations Board and
the General Counsel________________________________
6
12,000
17,500
16,000
4,000
Members of the National Mediation Board------------
3
10,000
17,500
16,000
6,000
Members of the Railroad Retirement Board -----------
3
10, 000
17,500
16, 000
6, 000
Chairman of the Board of Directors of the Recon-
struction Finance Corporation -----------------------
1
15,000
17,500
16,000
. 1,000
Members of Securities and Exchange Commission-.._ _
5
10, 000
17,500
16, 000
6, 00C
Members of the Board of Directors of the Tennessee
Valley Authority -------------------------------------
3
10,000
17,500
16,000
6,000
Members of the Civil Service Commission_____________
3
10,000
17, 500
16,000
6, 00C
Chairman ofU.S.Maritime Commission -------------
1
12,000
17,500
16,000
4,000
Members of the U. S. Tariff Commission_____________
6
10,000
17,500
16,000
6,000
Members of the Honic Loan. Bank Board --------------
3
15, 000
17,500
(5)
(e)
Public Housing Commissioner -------------------------
1
15,000
17,500
(5)
(1)
Federal Housing Commissioner ------------------------
1
15,000
17,500
(1)
(9)
SEC. 5(a)
Assistant Secretaries, Department of State -------------
6
10,330
17,500
15,000
4,670
Counselor ------------------------------------------
1
10,330
17,500
15,000
4,67C
Assistant Secretaries, Department of Treasury ---------
2
10, 000
17, 500
15, 000
5, 00C
Fiscal Assistant Secretary -------------------------
1
10,330
17,500
15,000
4,670
Assistant Secretaries, Department of the Army --------
-
2
10,000
17,500
16,000
5, 00C
Assistant Secretaries, Department of the Navy--------
2
10, 000
17, 500
15,000
5, 00C
Assistant Secretaries, Department of Air Force --------
2
10,000
17,500
15,000
5,000
Assistant Attorneys General, Department of Justice__
7
10, 330
17, 500
15, 000
4, 670
Assistant Solicitor General, Department of Justice___
1
10,330
17, 500
15, 000
4,67(
Second, Third, Fourth Assistant Postmasters Gen-
eral, Post Office Department------------- ----------
3
10,330
17,500
15,000
4,670
Assistant Secretaries, Department of the Interior___ _ _ _
-
2
10,330
17, 500
15,000
4, 670
Governors of Alaska, Hawaii, and Virgin Islands,
Department of the Interior --------------------------
-
3
10,330
17,500
15,000
4,670
I The increase is the difference between annual compensation provided for in H. R. 1689, as amended,
and present compensation.
a The following positions were struck out of H. R. 1689; Commissioner, Public Housing Administration;
Commissioner, Federal Housing Administration; and members of the Home Loan Bank Board, which
left these positions at their present salary of $15,000 per annum.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 15
Archivist of the United States
Members (other than the Chairman) of the Board of
Directors of the
Reconstruction Finance Corpora-
tion -----------------------------------------------
of Selective Service _________________________
Members (other than the Chairman) of the U. S.
Maritime Commission--
____ _______________________
Members
of the War Claims Commission ____________
Deputy Public Printer ________ _
Administrator, Production and Marketing A.dnrin-
istration
------------------------------------------
Co
mmissioner of Internal Revenue__________________
Dirccor
of the Bureau oPrisons_____________________
Dircctor
,Iederal Bureau ofInvestig'ation____________
Commissioner
of Public Reads _______________________
Commissioner
of Public Buildings .__________________
Commissioncr
afCommunityFaeilitic.______________
Commissioner
of Immiration and.Naturali?ation
Administrator, Rural Electrification Administration-
A ministrator for Socia] Security-_______
Commission
orofRcc]amation ________________________
Chief, Soil Conservation Servica_ ___
Director Nkep" Govenistratt of the Farmers Home Administration
Commissioner ofReclams _ _____________.___________
Chicrnor of onserv m CrServicdministration________-
CommisionerofCthe usto--xvice__________________
SpeaialAssistantstoh r ecretary e Adinnsa_____--_
Positions affected
by II. R. 1689 describing present pay, amounts proposed in H. R.
1689 and H. R. 1689 as amended by House Post Office and Civil Service Committee,
with increases-Continued
Annual compensation
N
Positions Included in H. R. 1689, as amended
um-
her
-
Increase I
Present
H. R
1689
H. R. 1689,
.
amended
SEC. 5(a)-Continued
Governor of Panama Canal, National Military Es-
tablishment ----------------------------------------
1
$10,000
$17,500
$15,000
$5,000
Assistant Secretary, Department of Agriculture -----
1
10,330
17,500
15,000
4,670
Assistant Secretaries, Department of Commerce ------
2
10, 000
17, 500
15,000
5, 000
Assistant Secretaries, Department of Labor -----------
3
10, 330
17,500
15, 000
4, 670
Chief Assistant Librarian of Congress ----------------
1
10,330
17,500
15,000
4,670
Deputy Director of Contra] Intelligence 6-------------
1
10,000
17,500
15,000
5,000
Philippine Alien Property Administrator -------------
1
10, 000
17, 500
16,000
5, 000
Housing Expeditor -----------------------------------
1
12,000
17,500
15,000
3,000
War Assets Administrator ---------------------------
1
12,000
17,500
15,000
3,000
Members of the Philippine War Damage Commis-
sion -----------------------------------------------
3
12,000
17, 500
15,000
3,000
Members of Displaced Persons Commission ----------
3
10,000
17,500
15,000
5
000
Members of the Board of Commissioners of the Dis-
,
trict of Columbia ----------------------------- ______
3
10,000
17,600
15, 000
5,000
Members (other than Chairman) of the Board ] of
Directors of the Export-Import Dank of Washing-
ton __-----------------------------------------------
3
12,000
17,500
15,000
3,000
Associate Federal Mediation and Conciliation Di-
rector ----------------- _ _ _ ----- ._ -----------
1
10,330
17,500
15,000
4,670
Members of the Indian Claims Commission ----------
3
10,000
17, 500
15, 000
5,000
1
10,000
17,500
15,000
5,000
4
12,500
17,500
15,000
2,500
1
12,500
17,500
15,000
2,500
4
10,000
,
17,500
15,000
5,000
3
12
000
17,500
15,000
3,000
1
10,330
17,500
15,000
4,670
1
10,330
-----------
000
4,670
1
10,000
_________
15000
5,000
1
10330
_
1000
4,670
1
14,000
___________
5,000
1,000
1
10,330
___________
15000
4,70
1
10,330
___ -_______
15,000
4,670
1
10,330
.__________
15,000
4,70
1
10,000
.__-____-_
5,000
5,000
1
10,000
-----------
5,000
5
1
10,330
-________.._
15,000
,670
1
10,000
__
15,000
5,000
1
10,330
__-_______
15,000
4,670
1
10,330
_________
15,00
4,70
1
10,000
.____-__
15,000
5,000
1
0,000
_
15,000
5,000
1
10,000
____--
15000
5,000
3
10,000
____.______
15,000
5,000
SEC. 5 (b)
Assistant Director of the Administrative OIIice of the
United States Courts_______________________________
1
9,707
17,500
15,000
5,293
SEC. 5 (c)
Legislative Counsels of the House of Representatives
and the U. S. Senate_______________________________
2
--
10,330
-______-_
12000
1,670
Total (exclusive of White House and Executive
-
----
------
Secretary of the National Security Council) _ _
232
2,661,857
3,957,500
3,823,000
1,161,143
White House and National Security Council---------
12
129,970
227, 500
206, 000
76, 030
Grand total ____________________
244
2,791,827
4,185,000
4,029,000
1,237,173
I The increase is the difference between annual Compensation provided for in H. R. 1689, as amended,
urd present compensation.
6 Position presently filled by a brigadier general.
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APPENDIX B
INDEX
Agency: Page
Administrative Office of the United States Courts ----------------- 17
Agriculture Department of-------------------------------------- - 19
Air Force, bepartment of (National Military Establishment) _ _ _ _ _ - - 74
Architect of the Capitol ------------------------------------------- 24
Archives ------------------------------- -.------------------------ 25
Army, Department of (National Military Establishment) ----------- 75
Atomic Energy Commission --------------------------------------- 25
Bureau of the Budget -------------------------------------------- 28
Central Intelligence Agency ------ ---------------------------------- 29
Civil Aeronautics Board ---------------- _________________________ 30
Civil Service Commission ------------------------------------------ -31
Commerce, Department of-------------- -:______ ________--_______- 32
Council of Economic Advisers ------------------------------------- 34
Defense: National Military Establishment -------------------------- 78
Displaced Persons Commission ------------------------------------ 35
District of Columbia --------------------------------------------- 35
Economic Cooperation Administration___________________________ 36
Export-Import Bank of Washington_____________________________ 37
Federal Communications Commission____________________________ 38
Federal Deposit Insurance Corporation ---------------------------- 38
Federal Mediation and Conciliation Service_______________________ 41
Federal Power Commission -------------------------------------- 42
Federal Reserve System: Board of Governors_____________________ 42
Federal Security Agency ------------------------------------------ 44
Federal Trade Commission --------------------------------------- 45
Federal Works Agency ------------------------------------------- 46
General Accounting Office --------------- .------------------------ 49
Government Printing Office -------------------------------------- 50
Governors:
Alaska -----------------------------------------------------. 54
Hawaii----------------------------------------------------- 54
Panama Canal--------------------------------------------- 77
Virgin Islands---------------------------------------------- 55
Housing and Home Finance Agency ------------------------------ 51
Housing Expediter, Office of the ---------------------------------- 52
Indian Claims Commission -------------------------------------- 52
Interior, Department of the -------------------------------------- 53
Interstate Commerce Commission --------------------------------- 55
Justice, Department of ------------------------------------------- 57
Labor, Department of -------------------------------------------- 67
Library of Congress-.---------------.----.------------------------ 68
Maritime Commission----._-___---_-._-_-.________________________ 69
Munitions Board: Defense, National Military Establishment--_-___- 80
National Advisory Committee for Aeronautics -------------------- 71
National Archives ------------------------------------------------ 25
National Labor Relations Board ----------------------------------- 71
National. Mediation Board ---------------------------------------- 73
National Military Establishment:
Air Force, Department of_ ---------------------------- 74
Army, Department of ---------------------------------------- 75
Secretary of Defense ----------------------------------------- 78
Munitions Board ---------------------------------------------
Research and Development Board---------------------------- 81
Navy, Department of ---------------------------------------- 81
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Agency-Continued Page
National Security Council_______________________________ ______ 83
National Security Resources Board______________________________ 84
Navy, Department of------------------------------------------ 81
Office of the Housing Expediter_________________________________ 52
Philippine Alien Property Administration_________________________ 84
Philippine War Damage Commission_____________________________ 85
Post Office Department---------------------------------------- 85
Railroad Retirement Board------------------------------------- 91
Reconstruction Finance Corporation ---__________ - 92
Research and Development Board: Defense, National Military
g1
-------------
Establishment________ -------------------------
Securities and Exchange Commission_____________________________ 94
Selective Service System---------------------------------------- 95
State, Department of-------------------------------------- 95
Tariff Commission--------------------------------------------- 99
Tennessee Valley Authority------------------------------------- 100
Treasury, Department of the____________________________________ 100
Veterans' Administration--------------------------------------- 104
War Assets Administration------------------------------------- 106
War Claims Commission--------------------------------------- 106
Bureau-level positions:
c-
d
P
ro
u
Commodity Credit Corporation, President (Administrator,
22
tion and Marketing Administration) __________________________
Community Facilities, Bureau of, Commissioner------------------ 47
Comptroller of the Currency (Member, Federal Deposit Insurance 40
Corporation)------------------------------------------------
Customs, Bureau of, Commissioner______________________________ 104
Farm Credit Administration, Governor___________________________ 20 21
Farmers home Administration, Administrator____________________
Federal Bureau of Investigation, Director________________________ 64
64
Forest Service, Chief Forester --________ ------
---------------- - -
Immigration and Naturalization Service, Commissioner ------------ 1066
3
Internal Revenue, Bureau of, Commissioner_____________________ 66
Prisons, Bureau of, Director____________________________________
Production and Marketing Administration, Administrator---------- 2222
Public Buildings Administration, Commissioner------------------ 48
Public Roads Administration, Commissioner---------------------- 55
Reclamation, Bureau of, Commissioner__________________________
Rural Electrification Administration, Administrator-------------- 23 23
Soil Conservation Service, Chief--------------------------------
Social Security Administration, Commissioner____________________ 79 44
Special Assistants to the Secretary of Defense____________________
Position title: Director, Administrative Office of the United States Courts.
Section of bill: 3 (b).
Present salary: $10,330. Salary established: July 12, 1948, by Public Law 900
of Eightieth Congress.
The base salary of $10,000 was fixed August 7, 1939, by Public Law 299 of Seventy-
sixth Congress.
Proposed salary: $17,500.
Incumbent: henry P. Chandler. State: Resident of Illinois when appointed,
now Maryland.
Responsibilities: The Director, who is appointed by the Supreme Court, is
responsible by statute (28 U. S. C. 604-605) for the management of the adminis-
trative matters of the United States courts and the improvement of the adminis-
tration of the offices of the courts under the general direction of the Judicial
Conference of the United States consisting of the Chief Justice of the United
States, chairman, and the chief judges of the courts of appeals of the 11 judicial
circuits including the District of Columbia. The United States courts with which
he deals are the courts of appeals, the district courts, the Court of Customs and
Patent, Appeals, the Court of Claims, the Customs Court, and the United States
courts in Alaska, Hawaii, the Canal Zone, Puerto Rico, and the Virgin Islands.
The responsibilities of the Director, more specifically, include the following:
(1) To provide the business administration of the courts including among
others: (a) preparing estimates for the appropriations, justifying them before the
Judicial Conference, the Bureau of the Budget, and the Appropriations Com-
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20 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
general program policies have important effects on American agriculture and world
trade and relationships.
Estimated annual expenditures for fiscal year 1949:
Appropriation authorized to borrow, and trust funds-__ $1,
158,
700
000
Working funds, transferred and allocated from other
departments and agencies --------------------------- 1,
500,
,
000,
000
Commodity loan programs ------------------------------ 2,
000,
000,
000
Proposed salary: $15,000.
Incumbent: Vacancy.
Responsibilities: The Assistant Secretary of Agriculture participates with the
Secretary and the Under Secretary in planning and carrying out the programs of
the Department in accordance with statutory authority and policies of the
President. Ile has a responsibility covering all agricultural programs through
his participation in program planning and policy conferences, but frequently lie
is designated by the Secretary to provide leadership for specific programs or
broad fields of work, such as conservation, land and water use, research activities,
etc.
As a general assistant to the Secretary, his recommendations help to influence
and shape the basic policies and programs for the Department. His decisions
on specific programs assigned to him are made for the Secretary and determine
the scope of such programs and the manner in which they are carried out. In
the absence of the Secretary and the Under Secretary, the Assistant Secretary
carries out the responsibilities of the Secretary.
Estimated annual expenditures for fiscal year 1949:
Appropriation authorized to borrow, and trust funds____ $1, 158, 700, 000
Working funds, transfers, and allocations from other
departments and agencies__________________ ---- 1,500, 000, 000
Commodity loan programs ----------------------------- 2,000, 000, 000
Size of organization: Number of employees, 72,161.
Position title: Governor, Farm Credit Administration, United States Department
of Agriculture. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: May 16, 1933, by Public Law
75 of Seventy-third Congress.
Proposed salary, $15,000.
Incumbent: I. W. Duggan. State: Georgia.
Responsibilities: The Governor is the executive head of the entire farm credit
system. Subject only to the general direction and supervision of the Secretary
of Agriculture, the Governor has over-all direction of the Farm Credit Adminis-
tration in Washington and exercises broad powers of regulation and supervision
over the lending corporations and associations, numbering about 1,800, that
comprise the system. These 1,800 institutions had more than 9,000 employees
and had total assets of about $2,600,000,000 as of December 31, 1948. During
the calendar year 1948 they made loans to farmers and farmers' cooperative
associations aggregating about 1% billion dollars. As of June 30, 1948, they had
outstanding $1,187,000,000 in bonds and debentures which they issue and sell to
the general public (without any guaranty by the Government) to obtain loan
funds.
The Governor's supervisory responsibilities embrace the general management,
the loan policies and terms, the fiscal operations, and all other phases of the
business of the lending institutions. As examples of the importance of his responsi-
bilities, he exercises final authority over the interest rates charged on loans and
the interest rates paid on bonds and debentures. A change of one-fourth of 1
percent in the interest rate on loans could make a difference of over $4,000,000
per year to the system, while a change of one-tenth of 1 percent in the interest
rate paid on bonds and debentures could make a difference of over $1,000,000 a
year.
Appointments to this position. made by the President, by and with the advice
and consent of the Senate.
Size of organization: Number of employees, 72,161.
Position title: Assistant Secretary of Agriculture, United States Department of
Agriculture. Section of bill: 5 (a).
Present salary, $10,305. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
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Size of organization:
Number of employees: 996, plus approximately 9,000 non-Federal em-
ployees of FCA institutions.
Estimated annual expenditures for fiscal year 1949:
Central office-------------------------------------- $3,025,000
Banks and corporations supervised-------------------- 33, 000, 000
Position title: Administrator, Farmers Home Administration, United States
Department of Agriculture. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: August 14, 1946, by Public
Law 731 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbent: Dillard B. Lasseter. State: Georgia.
Responsibilities: The Administrator is responsible for planning, directing, and
coordinating all program activities of the Farmers Home Administration offering
the small farmer a start on the road to better farming and improved living for
his family through supervised credit. Ile has ultimate responsibility for the
efficiency and effectiveness of program operations in the administration of real-
estate loans and production and subsistence loans to low-income farmers and
veterans, in the promotion of ownership of family-type farms, for providing
equitable farm-debt adjustment,, and for administering a water-facilities program
in and and semiarid areas of the United States. The program currently being
administered involves an annual expenditure of approximately $118,000,000.
Collections in the fiscal year 1948 amounted to $148,000,000, involving the
outstanding indebtedness of 950,000 borrowers. In addition to the current
programs, the Administrator is responsible for the liquidation of the assets and
liabilities of predecessor agencies, the assets of which on November 1, 1946,
totaled $830,000,000.
The Farmers Home Administration program is carried out through a national
office, 40 State offices, 4 area finance offices, and approximately 1,600 county
offices. The 40 State directors and 4 area finance managers are in charge of
activities in their respective jurisdictional areas, acting for and serving under
the immediate leadership of the Administrator. In addition, the Administrator
directs his national office staff of technical and administrative personnel and gives
approval to and directs the application of policies and procedure in administering
all program activities and servicing functions. Ile also has primary responsibility
or seeing that the Congress is kept currently advised and fully informed as to the
status of the Farmers Rome Administration program and that the public in
general is properly advised of the activities of the Administration. The Adminis-
trator functions under the general, direction of the Secretary of Agriculture.
Appointments to this position made by the President, by and with the advice
and consent of the Senate.
Size of organization:
Number of employees, 15,071 (including part-time committeemen).
Estimated annual expenditures for fiscal year 1949, $118,000,000.
Position title: Chief Forester, Forest Service, United States Department of
Agriculture. Section of bill: 5 (a).
Present salary: $10,000. Date salary established, June 22, 1946, by Public Law
422 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbent: Lyle F. Watts. State: Oregon.
Responsibilities: The Forest Service, through its Chief, has, by acts of Con-
gress and as delegated to him by the Secretary of Agriculture, the principal
responsibility for providing national leadership in the broad field of forestry and
related watershed management, leading to the best practicable protection,
management, development, and utilization of all forest resources in the national
interest. More specifically; these major responsibilities are:
1. The national forests: The technical management (including the protection,
development and utilization) of more than 180,000,000 acres of these federally
owned lands in 40 States, Alaska, and Puerto Rico; an area equivalent to about
10 percent of the land area of the continental United States. This includes
responsibility for the cutting of 4,000,000,000 board feet of timber from a total
stand of 600,000,000,000 board feet (one-third of the remaining saw timber in
this country), for the grazing of 9,000,000 head of livestock, for 20,000,000
recreation visits, for 70 percent of the big game in the West, and for the protec-
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OF HEADS OF DEPARTMENTS
tion and management of many important watersheds for flood and erosion
control, power, and irrigation. Cash receipts exceed $30,000,000.
2. Cooperation with 44 States, and many private owners, in obtaining better
protection and forest practices on 439,000,000 acres of State and privately owned
lands. These lands are in major part still being badly handled. Through those
cooperating agencies, the Forest Service, through its Chief, aims to provide
national leadershi
d
ti
p, e
uca
on, planning, protection against fire, aid in forest
planting, and technical assistance in obtaining improved forest and watershed-
management practices.
3. All Federal forest and range research for some 1,000,000,000 acres of forest
and open-range lands. (This area is equivalent to one-half of the land area of the
continental United States.) This responsibility includes research for forest man-
agement, range management, watershed management, fire control, forest-products
utilization, and the forest-resource survey. Included also are flood-control sur-
veys, mainly of forested lands.
Organizationally, the work of the Forest Service is handled through 10 regional
offices 152 national forests, a tropical unit, 11 forest and range experiment sta-
tions 62 fo t d
r
s
d
-vc eon ued from nor-
mal channels of trade through export, diversion, and di
rect distribution t schools
and public institutions.
5. The National School Lunch Act, through which more than 6,000,000 school
children are provided midday lunches.
6. The Sugar Act of 1948, which provides assistance. to sugar producers totaling
approximately $72,000,000 in the fiscal year 1949. -
7. The marketing-services activities, involving the administration of more than
a score of agricultural marketing regulatory, research, and service laws. These
include the Federal Seed Act of 1912; the United States Warehouse Act of 1916;
the Cotton Standards, Futures, and Classing Acts; the market-news service; and
market-inspection services.
Policy and program decisions made by the Administrator have a direct effect
on the total economy of the Nation.
Size of organization:
Number of employees, 10,000 full-time Federal employees plus 100,000
non-Federal county-office employees and committeemen.
es an range research centers, and the Forest Products Laboratory.
The average number of employees is some 15,000. Many are temporary; hence
the total number of employments annually exceeds 70,000.
Size of organization:
Number of employees, 15,000 (annual average).
Estimated annual expenditures for fiscal year 1949, $70,215,821.
Position title: Administrator, Production and Marketing- Administration, United
States Department of Agriculture. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent; Ralph S. Trigg. State: New Mexico. -
Responsibilities: The Administrator of the Production and Marketing Adminis-
tration reports directly to the Secretary of Agriculture and is responsible for the
following programs which affect producers, market operators and consumers, and
to a large degree determines the economic stability of American agriculture:
1. Commodity Credit Corporation: The price support, supply, and related
programs of the Department are financed through the CCC. During the fiscal
year 1949 the volume of price-support commodity loans will exceed $2,000,000,000.
The purchase and supply operations for foreign governments, Army, and ECA
during 1949 will approximate $1,500,000,000. The Administrator is also President
of CCC and a member of its Board of Directors.
2. The agricultural conservation program, through which more than 3,000,000
farmers are assisted in carrying out conservation -and soil-building practices
through incentive payments averaging more than $200,000,000 annually. This
program also provides a framework for the State, county, and community com-
mittee system through which the production adjustment, price-support, and
related programs are administered.
3. The production-adjustment program, under which acreage allotments and
marketing quotas are established for certain agricultural commodities.
4. The surplus-removal program, authorized by section 32 of the AAA Act of
1935, under which surplus agricultural commoditie
h b
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Estimated annual expenditures for fiscal year 1949:
Program expenditures, approximately, $2,500,000,000.
Administrative funds expenditures including county expenses,
$80,000,000.
Position title: Administrator, Rural Electrification Administration, United States
Department of Agriculture. Section of bill 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Claude R. Wickard. State: Indiana.
Responsibilities: All of the powers, duties, and responsibilities of the Rural
Electrification Administration are vested in, and exercised by the Administrator
under the general direction of the Secretary of Agriculture. The transfer of REA
to the Department of Agriculture in 1939 did not, as a practical matter, diminish
or lessen in any way the duties and ultimate responsibilities of the Administrator
with respect to the REA program. The Administrator thus administers a lending
program for which Congress, through fiscal 1949, has authorized lending power of
almost 1.9 billions of dollars of which all but $160,000,000 have been loaned. The
assed by the House) would make available up to
bill (as
ti
i
p
on
a
1950 appropr
." $500,000,000 in additional loan authorizations for fiscal 1950. A total of 1.2
stems exist-
tric s
l
t
d
y
e
ec
en
billions of dollars have been advanced to 1,044 indepen
ing in 45 States, Alaska, and Virgin Islands. Such systems are actually serving
over 2.5 million consumers on 765,000 miles of electric lines and related facilities.
The administrative burdens and responsibilities of. the Administrator are
greatly increased and rendered more complex by three important aspects of
the REA program which distinguish it sharply from other lending programs,
either governmental or .private: (1) the loans are 100 percent loans requiring
correspondingly greater precaution by the lender than would be necessary in a
case where the borrower has an equity interest. This factor also requires more
than usual over-all supervision of the construction of the electric systems; (2) the
loans are required by law to be self-liquidating within a limited statutory period,
necessitating effective and continuing attention to assure repayment of the loans
on schedule; and (3) the program is not merely a lending program per so; it is the
responsibility of Administrator, stressed repeatedly by congressional committees,
to see that the basic program objective of extending electric service to all unserved
rural people is effectuated as rapidly as possible. To accomplish this program
objective requires prompt, continuing, and effective solution, under many diverse
conditions, of such matters as power shortage problems, and problems incident
to extending service to the "thinner" or "pocketed" areas of the country.
Appointments to this position made by the President, by and with the advice
and consent of the Senate.
Size of organization:
Number of employees, 1,133.
Estimated annual expenditures for fiscal year 1949:
Loan funds, $466,000,000.
Administrative funds, $5,825,000.
Position title: Chief, Soil Conservation Service, United States Department of
Agriculture. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress,
Proposed salary: $15,000.
Incumbent: Hugh II. Bennett. State: North Carolina.
Responsibilities: The Chief of the Soil Conservation Service directs a program
of soil and water conservation on the privately owned farm and range lands of
the Nation, a program of submarginal land purchase and development, and that
part of the Nation's flood-control program primarily involving watershed pro-
tection work on privately owned farm and range lands. Research investigations
at strategically located experiment stations throughout the country are carried on
currently in support of the operations programs. The soil and water conservation
program, directed toward the protection and improvement of the Nation's agri-
cultural productive capacity, is carried forward in cooperation with more than
2,000 farmer-directed soil-conservation districts, already embracing more than
thr'be-fourths of the farms and ranches of the United States. It is based on
physical analysis of the land, acre by acre; a scientific determination of the
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capabilities of the land; and scientific application of protective measures specifi-
cally designed to meet the needs and capabilities of the land for permanently pro-
ductive use. Insofar as productive land affects the quality, quantity, and cost of
food and other farm products, the work of the Soil Conservation Service to protect
and improve the Nation's productive land resources affects every segment of
American society. It helps hold down production costs on the farm and thereby
improves the economic position of the farmers as a buyer as well as a seller; it
helps insure the food-producing capacity of the Nation, either for national emer-
gencies or for future increases in population; and it contributes to the nutritional
quality of the food produced.
In the soil and water conservation program, as well as the programs for flood
control and submarginal land purchase and development, the technical and
scientific proficiency of the operations are of paramount importance. This pro-
ficiency, as well as the manner in which the operations are related to the require-
ments of the Nation's economy as a whole, are particular responsibilities of the
Chief of the Service. He administers annual appropriations approximating
$56,000,000 and a corps of land and water technicians numbering more than
10,000, stationed in all the States and Territories. All major policy decisions
of the Service are made by the Chief, who is responsible directly to the Secretary.
Size of organization:
Number of employees, 13,493.
Estimated annual expenditures for fiscal year 1949: $55,431,354.
Position title: Architect of the Capitol. Section of bill: 4.
Present salary: $10,330. Date salary established: July 1, 1929, by Public Law 17
of Seventy-first Congress.
Proposed salary: $16,000.
Incumbent: David Lynn. State: Washington, D. C.
Responsibilities: The Architect of the Capitol, acting as an agent of the Con-
gress, is charged with the care and improvement of buildings occupied by the
Congress and the Federal judiciary. The properties under the Architect are
evaluated at more than $100,000,000. The legislative group includes the United
States Capitol Building and Grounds, Senate Office Building, House Office
Buildings, Capitol power plant, Legislative Garage, and Library of Congress
Buildings. The judiciary group includes the United States Supreme Court
Building, United States Court of Claims Buildings, United States Courthouse,
District of Columbia, and United States Court of Appeals Building, District of
Columbia. Duties include structural and mechanical care of all properties,
operation of mechanical equipment, domestic care of the Senate and House
Office Buildings and partial domestic care of the Capitol Building, care of the
works of art in the Capitol, arrangements in cooperation with other officials of
the Congress for ceremonies held in the Capitol Building and on the Capitol
Grounds. The Capitol power plant, as operated by the Architect, supplies heat,
light, and power for the buildings and grounds in the legislative group, the United
States Supreme Court Building and Botanic Garden; air conditioning refrigeration
for the Capitol, Senate and House Office Buildings, and steam for heating the
Government Printing Office and Washington City post office. Duties also include
care of Columbia Hospital for Women; maintenance and operatiop of the United
States Botanic Garden, as Acting Director; operation of the House of Representa-
tives restaurants. The Architect serves as a member of the District of Columbia
Zoning Commission; also as a member of the Capitol Police Board which directs
the policing and protection of the Capitol Buildings and Grounds and regulation
of traffic control in the grounds; also pefforms other miscellaneous maintenance
duties. In. addition, the Architect is charged with the planning and construction
of such buildings and other improvements as committed to his care by Congress
from time to time, being charged at present with the planning and construction
of the New Senate Office Building, a $20,000,000 project; and reconstruction of
the roofs over the Senate and House wings of the Capitol and remodeling of the
Senate and House Chambers, a $5,000,000 project. Maintenance appropriations
average about $4,000,000 annually.
The Architect performs most of his duties under the direction of commissions
and committees of the Congress, the Senate Office Building under the Senate
Committee on Rules and Administration; the House Office Buildings and Capitol
power plant under the House Office Building Commission; the Legislative Qarago
under the Vice President and Speaker of the House; Botanic Garden and works of
art under the Joint Committee on the Library; New Senate Office Building under
the Senate Office Building Commission; Senate roof and Chamber improvements
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INCREASING COMPENSATION OF I-IEADS OF E A
under a special committee of five Senators; House roof and Chamber improvements
under a special committee of five Members of the House. Service to the Congress
is the prime duty of the Architect of the Capitol.
Size of organization:
Number of employees, 1,200.
Estimated annual expenditures for fiscal year 1949, $7,500,000.
Position title: The Archivist of the United States. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: June 19, 1934, by Public Law
432 of Seventy-third Congress.
Proposed salary: $15,000.
Incumbent: Wayne C. Grover. State: Utah.
Responsibilities: The Archivist of the United States is responsible, by law, for
housing, preserving, and making available for use the official records of the United
States Government (legislative, executive, judicial, and other) that, because of their.
administrative, legal, historical, research, or other value have been transferred
to his custody. He is responsible for directing the National Archives Estab-
lishment, Franklin D. Roosevelt Library, and Division of the Federal Register
the National
hives Council
l A
,
rc
and also serves as chairman of the Nationa
Historical Publications Commission, National Archives Trust Fund Board, and
Board of Trustees of the Franklin D. Roosevelt Library. The directors of the
Division of the Federal Register, of the Franklin D. Roosevelt Library, and of the
eight operating divisions of the National Archives are immediately responsible
to the Archivist of the United States.. The Archivist is a member of the: Govern-
ing Body, Federal Fire Council; National Council for Historic Sites and Buildings;
Board of Trustees, American Military Institute; and Board of Directors, National
Records Management Council.
The Archivist of the United States contributes to the improvement of the
national economy and the welfare of the people by preserving the records and
making the evidence of our national experience, as it is embodied in the perma-
nently valuable records of the Government, available to guide and assist the
Government and the people in planning and conducting their activities. The
Archivist of the United States, through his liaison relationships with some 150
fosters the efficient management of records,
cies
d
,
agen
Federal departments an
inspects records in these agencies and evaluates and selects for preservation the
core of valuable records, facilitates the prompt disposal of records of only tempo-
rary usefulness by appraising them and making recommendations to Congress
with respect to their disposition, formulates and applies technical methods for
the repair and preservation of records, organizes the records in custody and
prepares guides and other descriptive aids to their use, and makes the records or
the information in them available for official or public use tinder regulations
prescribed by him. The records in the custody of the Archivist or the more than
twenty million cubic feet subject to the appraisal of his staff involve the legal
rights and obligations of millions of persons and document the expenditure of
billions of dollars. Records in custody, some 875,000 cubic feet, constitute the
largest and probably the most valuable single collection of modern archives in
the world. The Division of the Federal Register receives and publishes the texts
and codes of all Presidential proclamations and Executive orders and of rules and
regulations issued by Federal agencies that have general applicability and legal
effect, and publishes a manual of statements describing the organization. and
functions of agencies in the three Branches of the Government. The Archivist of
the United States is also responsible for the preservation and administration of
historical material in the Franklin D. Roosevelt Library.
Size of organization:
Number of employees, 390.
Estimated annual expenditures for fiscal year 1949, $1,608,123.
Position title: Chairman, Atomic Energy Commission. Section of bill: 3 (a).
Present salary: $17,500. Date salary established: August 1946, by Public Law
585 of Seventy-ninth Congress.
Proposed salary: $18,000.
Incumbent: David E. Lilienthal. State: Tennessee.
Responsibilities: The Atomic Energy Act of 1946 .established salaries for the
chairman and the other members of the Commission, as well as the general
manager, at a level intended "to indicate that the duties and responsibilities of
these positions are comparable to those on the highest level in the Government
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INCREASING COMPENSATION OF HEADS OF
DE
A
P
RTMENTS
administration," The reasons for this were stated in the report of the McMahon
committee (S. Rep. 1211, 79th Cong., 2d sess., p. 11) as follows:
"The provision for full-time Commissioners was urged by many witnesses at the
committee hearings, especially by exports in Government administration. These
witnesses emphasized the grave responsibility for national security and welfare
devolving upon the Commissioners, the need for continuous study of changing
technical developments, and the many innovations in administrative techniques
that will be involved. While the Commissioners need not be scientists or tech-
nical experts, they must combine clear judgment with imagination and courage,
and they must, like the members of the judiciary, be so divorced from private and
competing concerns as to give complete, disinterested, and undivided attention
to their tasks. A salary of $17,500 per annum for the chairman and $15,000 for
the other commissioners has been set to indicate that the duties and responsibilities
of these positions are comparable to those on the highest level of Government
administration."
The Commission has responsibility for determining all important matters of
olic
an
d
in
'
p
y
.
carry
g on the country
s. atomic-energy program.
The Commission is the agent of the United States to develop and control atomic
energy. It has a direct responsibility to the President on atomic matters relating
to the country's common defense and security. It owns all facilities which can or
might produce the fissionable material required for atomic weapons, and deter-
mines which facilities are capable of such production. It controls the manufacture
and transfer of such facilities. It owns all fissionable material under the jurisdic-
tion of the United States. It controls the transfer of all important quantities of
source materials, and determines'what quantities are important. It distributes
atomic materials in the interests of research, medical therapy, industrial uses, and
other purposes.
The Commission is responsible for the conduct of large industrial operations in
various parts of the country and for the national atomic laboratories organized
on a regional basis. It carries on programs of exploration for and acquisition
and production of raw materials; production of fissionable materials; construction
of necessary facilities and installations; development, production, and test of
atomic weapons; development of new types of nuclear reactors and production
of power from. atomic fission; research in the physical sciences and in biology and
medicine; and management of communities which it owns and which are neces-
sary to support the basic programs. By contracts and other arrangements it
assists and f
t
h
os
ers researc
and development work relating to atomic energy by
other public and private institutions. It carries on activities, with the collabora-
tion of the National Military Establishment, which are necessary to enable the
use of atomic energy or atomic weapons in the national defense. It is responsible
for safeguarding atomic plants and restricted data, and for determining what
information may be removed from the category of restricted data. It has a
program relating to dissemination of information relating to atomic energy. It
determines, after receipt of investigative reports from the Federal Bureau of
Investigation, who may have access to restricted data. It rules on patents and
inventions in the field of atomic energy. With the paramount objective of
assuring the common defense and security, the Commission has extensive authority
and responsibility in the fields of personnel administration, labor relations, prop-
erty management, and financial accounting. It establishes boards, conducts
investigations, and advises with the General Advisory Committee and the Mili-
tary Liaison Committee. It has a duty to keep the Joint Committee on Atomic
Energy fully and currently informed with respect to the Commission's activities.
The Commission carries a continuing responsibility for assuring the continued
preeminence of the United States in the applications of atomic energy for peace
or war. The rapidly shifting frontiers of atomic energy reveal daily now and
difficult problems that require decisions for which there is little or no precedent.
These decisions affect the entire Nation's economy and defense. The Commission
has delegated to the General Manager responsibility for the actual execution of
this program.
Size of organization:
Number of employees. Direct AEC, 5,000; contractor, 65,000; total
AEC and contractor, 70,000.
Estimated annual expenditures for fiscal year 1949, $700,000,000.
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INCREASING COMPS S I'
Position title: Commissioner, Atomic Energy Commission. Section of bill: 4.
Present salary: $15,000. Date salary established: August 1946 by Public Law
585 of Seventy-ninth Congress.
Proposed salary: $16,000.
Incumbents: Sumner T. Pike, Maine; Lewis L. Strauss, New York; Robert F.
Bacher, New Mexico; vacancy.
Responsibilities: The Atomic Energy Act of 1.946 established salaries for the
Chairman and the other members of the Commission, as well as the Gex.eral Man-
ager, at a level intended "to indicate that the duties and responsibilities of these
positions are comparable to those on the highest level in the Government admin-
istration." The reasons for this were stated in the report of the McMahon
Committee (S. Rept. 1211, 79th Cong., 2d sess., p. 1.1), as follows:
"The provision for full-time Commissioners was urged by many witnesses at
the committee hearings, especially by experts in Government administration.
al security and
ti
'f
on
or na
These witnesses emphasized the grave responsibility
welfare devolving upon the Commissioners, the need for continuous study of
changing technical developments, and the many innovations in administrative
techm.iques that will he involved. While the Commissioners need not be scientists
or technical experts, they must combine clear judgment with imagination and
courage, and they must, like the members of the judiciary, be so divorced from
private and competing concerns as to give complete, disinterested, and undivided
attention to their tasks. A salary of $17,500 per annum for the Chairman and
$15,000 for the other Commissioners has been set to indicate that the duties and
responsibilities of these positions are comparable to those on the highest level of
Government administration."
The Commission has responsibility for determining all important matters of
policy and carrying on the country's atomic-energy program.
The Commission is the agent of the United States to develop and control
atomic energy. It has a direct responsibility to the President on atomic matters
relating to the. country's common defense and security. It owns all facilities
which can or might produce the fissionable material required for atomic weapons,
and determines which facilities are capable of such production. It controls the
manufacture and transfer of such facilities. It owns all fissionable material
under the jurisdiction of the United States. It controls the transfer of all im-
portant quantities of source materials, and determines what quantities are
important. It distributes atomic materials in the interests of research, medical
therapy, industrial uses, and other purposes.
e industrial operations in
f l
r
t
d
g
o
a
uc
The Commission is responsible for the con
various parts of the country and for the national atomic laboratories organized on
a regional basis. It carries on programs of exploration for and acquisition and
production of raw materials; production of fissionable materials; construction of
necessary facilities and installations; development, production, and test of atomic
weapons; development of new types of nuclear reactors and production of power
from atomic fission; research in the physical sciences and in biology and medicine;
and management of communities which it owns and which are necessary to support
the basic programs. By contracts and other arrangements it assists and fosters
research and development work relating to atomic energy by other public and pri-
vate institutions. It carries on activities, with the collaboration of the National
Military Establishment, which are necessary to enable the use of atomic energy
or atomic weapons in the national defense. It is responsible for safeguarding
atomic plants and restricted data, and for determining what information may be
removed from the category of restricted data. It has a program relating to dissem-
ination of information relating to atomic energy. It determines, after receipt of
investigative reports from the Federal Bureau of Investigation, who may have
access to restricted data. It rules on patents and inventions in the field of atomic,
energy. With the paramount objective of assuring the common defense and
security, the Commission has extensive authority and responsibility in the fields
of personnel administration, labor relations, property management, and financial
accounting. It establishes boards, conducts investigations, and advises with the
General Advisory Committee and the Military Liaison Committee. It has a
duty to keep the Joint Committee on Atomic Energy fully and currently informed
with respect to the Commission's activities.
The Commission carries on continuing responsibility for assuring the continued
preeminence of the United States in the applications of atomic energy for peace or
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GO COMPENSATiON OF HEADS OF DEPARTMENTS
war. The rapidly shifting frontiers of atomic energy reveal daily new and difficult
problems that re
uir
d
i
i
q
e
ec
s
ons for which there is little or no precedent. These
decisions affect the entire Nation's economy and defense. The Commission has
delegated to the General Manager responsibility for the actual execution of this
program.
Size of organization:
Number of employees: Direct AEC, 5,000; contractor, 65,000; total AEC
and contractor, 70,000.
Estimated annual expenditures for fiscal year 1949, $700,000,000.
Position title: Director, Bureau of the Budget. Section of bill: 2 (a).
Present salary: $10,000. Date salary established: June 10 1921 b P
13 of Sixty-seventh ~ by Public Law
seventh Congress.
Proposed salary $20,000.
Incumbent Frank Pace, Jr. State: Arkansas.
Responsibilities: The Director of the Bureau of the Budget is the President's
principal staff assistant for handling budget and management problems of the
Government as a whole. He is the responsible head of the Bureau of the Budget
which is the largest unit of the Executive Office of the President. His primary
responsibilities are to assist the President in (1) the annual formulation of an
integrated budget for the entire Federal Government which, when approved by
the President, is submitted to the Congress, and (2) the administration of the
budget as passed by Congress in such a way as to prevent overobligation of funds
and to insure that they are spent economically and effectively. Formulating an
over-all budget for the Federal Government involves the review and analysis of
the programs and related budget estimates for annual, supplemental and defi-
ciency appropriations proposed by Federal agencies; the analysis and interpreta-
tion of economic guide lines and data furnished by other agencies for use in policy
formulation, program planning and budget preparation; the continuing analysis
of major areas of Government activity; the coordination of agency views on pro-
posed legislation, Executive orders and proclamations; the development of action
recommendations for the President concerning legislative enactments and Execu-
tive proposals; and the furnishing of advice to the President on major policy issues.
Administration of the budget includes the apportionment of funds; the determina-
tion of personnel ceilings; assistance to agencies in developing and installing im-
proved organization, procedures and methods; advising the President on the most
effective organization of the executive bran
h
d
c
an
on methods for coordinating
interagency functions; the planning and promoting of improved and better coor-
dinated Federal and other statistical services; and keeping the President informed
of major work programs proposed, initiated, and completed by the agencies.
In order to carry out his responsibilities, the Director must have a familiarity
with the Government programs of over 75' agencies, which together make up a
budget of over $40,000,000,000 and must be able to see how they relate to each
other. He must have a clear and thorough understanding of general economic,
political, and social conditions in the country in order to advise the President on
the need for and impact of all Government programs. As Director of the organi-
zation which performs the functions described in the first paragraph, he concen-
trates his personal energies on furnishing active leadership to his organization;
maintaining continuous and close relationships with the President, Cabinet mem-
bers, the heads of other agencies, top Executive Office officials, public groups, and
the Congress; making final recommendations to the President on all major policy
issues concerning the budget; handling the budget appeals of major agencies and
negotiating the setting of budget ceilings; and giving some attention to major
internal problems of personnel and organization. As a staff assistant to the Pres-
ident, he advises him regularly from the over-all point of view on problems varyitt,g
from the proper organization of a Government corporation to the proportion of
national resources which should be spent for national-security purposes.
Size of organization:
Number of employees, 534.
Estimated annual expenditures for fiscal year 1949, $3,267,013.
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INCREASING COMPENSATION OF HEADS OF PEP S
Position title: Assistant Director, Bureau of the Budget. Section of bill: 3 (a).
Present Salary: $10,330.1 Date salary established: April 28, 1942,1 by Public
Law 528 of Seventy-seventh Congress.
Proposed salary: $18,000.
Incumbent: Frederick J. Lawton. State: District of Columbia.
Responsibilities: The Assistant Director of the Bureau of the Budget assists
the Director of the Bureau in carrying out the latter's function as principal
adviser to the President on questions of over-all budgeting and management for
the Federal Government. The Assistant Director acts for the Director in the
latter's absence, and in general must have equivalent knowledge of the programs
and activities of all Government agencies. He assists the Director on practically
an equal basis in the formulation of an integrated Federal budget for submission
to the Congress after approval by the President, and in the administration of
the budget as passed by Congress so as to prevent overobligation of funds and
to insure that they are spent economically and effectively. Formulating an over-
all budget for the Federal Government involves the review and analysis of the
programs and related budget estimates for annual, supplemental, and deficiency
appropriations proposed by Federal agencies; the analysis and interpretation of
economic guide lines and data furnished by other agencies for use in policy
formulation, program planning, and budget preparation; the continuing analysis
of major areas of Government activity; the coordination of agency views on pro-
posed legislation, Executive orders and proclamations; the development of
action recommendations for the President concerning legislative enactments and
Executive proposals; and the furnishing of advice to the President on major
policy issues. Administration of the budget includes the apportionment of funds;
the determination of personnel ceilings; assistance to agencies in developing
and installing improved organization, procedures, and methods; advising the
President on the most effective organization of the executive branch and on
methods for coordinating interagency functions; the planning and promoting of
improved and better coordinated Federal and other, statistical services; and
keeping the President informed of major work programs proposed, initiated, and
completed by the agencies.
At the present time, the Assistant Director spends somewhat less time than
the Director in contacts with the President, Cabinet members, and the general
public. He spends more time than the Director in maintaining contact with
the Congressional Appropriations Committees, in dealing with technical budgeting
and accounting problems, in conducting continuous and regular review of agency
budget estimates, and in directing the day-to-day operations of the Bureau of
the Budget.
Size of Organization:
Number of employees, 534.
Estimated annual expenditures for fiscal year 1949, $3,267,013.
Position title: Director, Central Intelligence Agency. Section of bill.: 3 (c).
Present salary: $14,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $17,500.
Incumbent: Roscoe H. Iiillenkoetter, rear admiral, United States Navy. State:
Missouri.
Responsibilities: The Director of Central Intelligence is charged with the over-
all administration of the Central Intelligence Agency and the supervision of its
functions as outlined by section 102 of the National Security Act of 1947 and as
the directives of the National Security Council. These
ted b
l
b
y
ora
a
further e
functions include advising the National Security Council on all matters concern-
ing national intelligence, coordination of the foreign intelligence activities of the
United States, the correlation and evaluation of intelligence relating to the national
security, and its appropriate dissemination, and the performance in the field of
foreign intelligence of certain functions of common concern to the existing intelli-
gence activities of the Government. The Director serves as sole adviser to the
National Security Council in the field of foreign intelligence, and is responsible for
preparing the national intelligence estimates required by the Council for its
deliberation.
I Salary set at $10,000 by Public Law 528 of 77th Cong., April 28, 1942. Raised to $10,330 under Public
Law 900 of 80th Cong., July 3, 1Y48.
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iu ILN UItEASING COMPENSATION OF HEADS OF DEPARTMENTS
In coordinating the foreign intelligence activities of the United States, the
Director recommends fields of primary responsibilities, particularly in regard to
the intelligence organizations of the State Department and members of the Na-
tional Military Establishment. Ile also recommends eliminations of duplications
and unnecessary overlaps, and ascertains gaps in the fields of intelligence collec-
tion and reporting, with the responsibility of closing such gaps. The sole responsi-
bility in these matters lies with the Director of Central Intelligence.
Information on size of organization is classified for security reasons and will he
supplied verbally.
Position title: Deputy Director, Central Intelligence Agency. Section of bill:
5 (a).
Present salary: 2 _ _ _ _ _ -. Date salary established: ------,by Public Law ------
of ------ Congress.
Proposed salary: $15,000.
Incumbent: 2 None. State: ------
Responsibilities: The Deputy Director assists the Director of Central Intelli-
gence in carrying out the functions and responsibilities of the Agency and acts
for the Directo
i
hi
b
r
n
s a
sence in the performance of the functions and duties
assigned by the National Security Act of 1947 and the appropriate directives of
the National Security Council.
Information on size of organization is classified for security reasons and will be
supplied verbally.
Position title: Chairman, Civil Aeronautics Board. Section of bill: 4.
Present salary: $12,000. Date salary established: June 3, 1948, by Public Law
597 of Ei
hti
th C
g
e
ongress.
Proposed salary: $16,000.
Incumbent: Joseph J. O'Connell, Jr. State: New York.
Responsibilities: The responsibilities of the five members of the Board, ap-
pointed by the President' with the advice and consent of the Senate, are estab-
lished by statute since the members collectively are charged with carrying out
the duties and functions devolving upon the Civil Aeronautics Board under the
Civil Aeronautics Act of 1938, as amended. The Board is charged, under the
act, with responsibility for fostering and encouraging the development of an air
transportation system which will be adequate to the present and future needs
of the foreign and domestic commerce of the United States, the postal service
and the national defense; and regulating air commerce in such manner as to best
promote its development and safety. The members act on specific cases, and
develop plans, policies, and programs directly affecting all phases of an industry,
which has expanded with unparalleled rapidity since the war, and is vital to both
the economy and security of the Nation.
In general, the activities of the Board fall into four principal areas: (1) regula-
tion of the economic aspects of United States air carrier operations, both domestic
and international, which includes granting and denying certificates of public
convenience and necessity; prescribing or approving rates and rate practices
of air carriers; fixing mail-rate compensation (at present totaling in excess of
$100,000,000 per year); prevention of unfair methods of competition or discrimi-
nation; approval or disapproval of business relationships between air carriers,
(2) promulgation of safety standards in the form of Civil Air Regulations, which
include standards for the issuance of airman certificates, aircraft type'production
and airworthiness certificates and air carrier operating certificates, with power
to suspend or revoke such certificates
(3) investigation and an
l
i
f
,
a
ys
s o
accidents
involving civil aircraft, which includes reviewing reports of all accidents and
determining, after investigation to the extent required, the probable cause of
all accidents; and the initiation of preventive action as indicated by accident
investigation and analysis, (4) cooperation and assistance in international air
transportation which includes assisting the State Department i
th
n
e negotiation
of agreements with foreign governments for the establishment or development
of air transportation; providing information for. and assisting the International
Civil Aviation Organization in the development of all international safety and
operational standards.
In addition to the statutory responsibilities falling on all members, the duties
of the Chairman embrace certain administrative responsibility. Ile presides' At
2 The position of Deputy Directcr is now vacant. It was formerly occupied by a brigadier general who
was paid by the Department of the Army in accordance with the applicable Army pay scale.
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INCREASING COMPENSATION OF II E A
meetings of the Board; determines the order in which from day to day, matters
will receive attention of the Board; his office is the focal point of a large volume
of communications, incoming and outgoing and for numerous inquiries of various
types; by virtue of his role as Chairman, he is usually called upon to act as spokes-
man of the Board before committees of Congress. In the absence or disability
of the Chairman the foregoing duties are performed by the Vice Chairman.
Size of organization:
Number of employees, 680.
Estimated annual expenditures for fiscal year 1949, $3,637,000.
Position title: Member, Civil Aeronautics Board. Section of hill: 4.
Present salary: $11,500. Date salary established': June 3, 1948, by Public Law
597 of Eightieth Congress.
Proposed salary: $16,000.
Incumbents: Oswald Ryan, Vice Chairman, Indiana; Josh Leo, Oklahoma;
Responsibilities: The responsibilities of the five members of the Board, ap-
pointed by the President with the advice and consent of the Senate, are established
by statute since the members collectively are charged with carrying out the duties
and functions devolving upon the Civil Aeronautics Board under the Civil
Aeronautics Act of 1938, as amended. The Board is charged, under the act,
with responsibility for fostering and encouraging the development of an air
transportation system which will be adequate to the present and future needs of
the foreign and domestic commerce of the United States, the postal service, and
the national defense; and regulating air commerce in such manner as to best
promote its development and safety. The members act on specific cases, and
develop plans, policies, and programs directly affecting all phases of an industry,
which has expanded with unparalleled rapidity since the war, and is vital to both
the economy and security of the Nation.
In general, the activities of the Board fall into four principal areas: (1) Regu-
lation of the economic aspects of United States air carrier operations, both domes-
tic and international, which includes granting and denying certificates of public
convenience and necessity; prescribing or approving rates and rate practices of
air carriers; fixing mail rate compensation (at present totaling in excess of
$100,000,000 per year); prevention of unfair methods of competition or discrimi-
nation; approval or disapproval of business relationships between air carriers
(2) promulgation of safety standards in the form of civil air regulations, which
include standards for the issuance of airman certificates, aircraft type production
and airworthiness certificates and air carrier operating certificates, with power
to suspend or revoke such certificates (3) investigation and analysis of accidents
involving civil aircraft, which includes reviewing reports of all accidents and
determining, after investigation to the extent required, the probable cause of all
accidents; and the initiation of preventive action as indicated by accident investi-
gation and analysis (4) cooperation and assistance in -international air transpor-
tation which includes assisting the State Department in the negotiation of agree-
ments with foreign governments for the establishment or development of air
transportation; providing information for and assisting the International Civil
Aviation Organization in the development of all international safety-operational.
standards.
Size of organization:
r Number of employees, 680..
Estimated annual expenditures for fiscal year 1949, $3,637,000.
Position title: Member, Civil Service Commission. Section of bill: 4.
Present salary: $10,000. Date salary established: November 26, 1940, by Public
Law 880 of Seventy-sixth Congress.
Proposed salar : $16,000.
Incumbents: prances Perkins, New York; Harry B. Mitchell, Montana; James.
M. Mitchell, Illinois."
Responsibilities: As the central personnel, agency for the Fcderal;'Government,
the Civil Service Commission provides leadership in the field of personnel adminis-
tration and promulgates such rules and regulations as are required for the proper
administration. of the merit system. Each Civil. Service Commissioner shares
equally with.his two colleagues the full responsibility for directing the work of the
Civil Service Commission in providing examinations to test the fitness of appli-
cants for positions in the competitive service; establishing qualifications standards
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SING COMPENSATION OF HEADS OF DEPA
1tTM
EN I S
as a basis for reinstatement, promotion, and transfer of Federal employees;
providing, in response to recruitment requests, the best qualified available persons
to fill positions in the Federal service; administering the Veterans' Preference Act of
1944; conducting investigations relative to the enforcement of civil service laws
and rules and to the character and suitability of applicants for certain types of
positions; administering, in part through the Loyalty Review Board, statutory
and Executive order provisions relating to the loyalty of Federal employees;
administering the Classification Act of 1923 as amended; administering an effi-
ciency rating system for Federal employees; maintaining service records of Federal
employees; administering statutory provisions and civil service regulations re-
stricting political activity by Federal employees; administering the Civil Service
Retirement Act, the Canal Zone Retirement Act, and the Alaska Railroad Retire-
t A
men
ct; administering, partly through the Federal Fair Employment Board,
statutory and Executive order provisions relating to the following of fair employ-
ment practices by Federal agencies.
The Commission as a body, and each Commissioner as an individual, must have
a thorough knowledge and appreciation of the current personnel requirements of
the Federal Government. The Commission is responsible, further, for planning
for future personnel needs and responsible for taking steps to meet these needs,
such as recommending legislation; advising the President of the desirability of
the issuance of appropriate Executive orders; and exercising continuing vigilance
to insure that the Commission's own regulations are in such form as Co promote
maximum efficiency and effectiveness in Federal personnel management consistent
with existing legislative and executive policy. Finally, the Commission must
furnish information and other assistance to a very large number of individual
citizens in their capacities as prospective, present, or former employees of the
Federal Government in such a way that Federal employment will be held in good
repute and high esteem.
Size of organization:
Number of employees, 4,185.
Estimated annual expenditures for fiscal year 1949, $244,114,098.3
Position title: Secretary of Commerce. Section of bill: 1.
Present salary: $15,000. Date salary established: March 4, 1925, by Public
La
624
f Ei
hti
th C
w
o
g
e
ongress.
Proposed salary: $25,000.
Incumbent: Charles Sawyer. State: Ohio.
Responsibilities: The Secretary of Commerce directs the activities of th
i
e ent
re
Department of Commerce and serves in the President's Cabinet.
In this capacity he is responsible for extensive national programs of the United
States Government, including population, agricultural, and other censuses; col-
lection, analysis and dissemination of commercial data; efforts to promote foreign
and domestic commerce; coast and geodetic surveys; establishment of commodity
weights, measures, and standards; comprehensive scientific research programs;
issuance of patents and the registration of trade-marks; establishment and main-
tenance of aids to air navigation, certification of airmen, and inspection and
registration of aircraft; issuance of weather forecasts and warnings; development
of inland waterway transportation; operation of Government-owned barge lines;
and many other related activities of great significance to the national well-being.
The foregoing activities are administered through the National Bureau of
Standards, United States Weather Bureau, Bureau of the Census, United States
Coast and Geodetic Survey, United States Patent Office, Civil Aeronautics Ad-
ministration, Bureau of Foreign and Domestic Commerce, Inland Waterways
Corporation, and other organizations comprising the Department of Commerce.
In addition, the Secretary also is a member of the Board of Governors of the
American Red Cross, Foreign Service Buildings Commission, Smithsonian Insti-
tution, Migratory Bird Conservation Commission, National Munitions Control
Board, and the National Security Resources Board, and is Chairman of the
Foreign-Trade Zones Board.
Size of organization:
Number of employees, 4-1,000.4
Estimated annual expenditures for fiscal year 1949, $260,000,000.
8 Expenditures include operating costs and retirement-account costs,
4 Includes 6,200 part-time employcos.
A
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Position title: Under Secretary of Commerce. Section of bill: 2 (a).
000990005-9
Present salary: $10,000. Date salary established: June 5, 1939, by Public Law
113 of Seventy-sixth Congress.
Proposed salary: $20,000.
Incumbent: Cornelius V. Whitney. State: New York.
Responsibilities: The Under Secretary of Commerce performs the duties of the
Secretary of Commerce in the absence of the Secretary.
He also serves as principal deputy of the Secretary in appearances before the
President, Congress, other agencies of Government, industry, and the public.
In the same capacity he also is responsible for planning and coordinating the
activities of the various component bureaus and offices of the Department of
Commerce on an integrated basis. This includes intensive planning and review
of programs related to promotion of the domestic commerce of the United States
and its manufacturing, shipping, and transportation interests; the making of coast
and geodetic surveys; construction, maintenance, and application of standards
of weights and measurements; the gathering and supplying of information regard-
ing industries and markets; promotion of foreign trade; technological aids, and
service to business, including small business; supervision of the issuance of patents
and the registration of trade-marks; the promotion and development of air com-
merce; weather service for the benefit of agriculture, commerce, navigation, and
the general public; development of inland waterways transportation; and numer-
ous other activities related to these responsibilities. In addition, he is responsible
for the direction of and coordination of numerous special studies and other duties
assigned to the Department from time to time and for such special assignments
as may be specified by the Secretary.
Size of organization:
Number of employees, 41,000.6
Estimated annual expenditures for fiscal year 1949, $260,000,00.
Position title: Assistant Secretary of Commerce. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: July 15, 1947, by Public Law
191 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Thomas C. Blaisdell, Jr. State: District of Columbia.
Responsibilities: The Assistant Secretary of Commerce for Foreign and Domes-
tic Commerce exercises immediate direction and supervision overthe Bureau of
Foreign and Domestic Commerce and other activities of the Department of
Commerce which promote and foster foreign and domestic commerce.
These activities are conducted by the Office of International Trade, Office of
Domestic Commerce, Office of Business Economics, Office of Field Service, Office
of Technical Services, and Office of Industry Cooperation. In carrying out their
functions they provide American business with published aids in the fields of inter-
national and' domestic commerce and industry; maintain detailed information
concerning over 750,000 foreign firms and individuals engaged in foreign trade and
suppliers; con Ystitutecthelm jor sourcde of data otntfor ign exchange
d stributo s, ands
noditics developments and foreign public finance; prepare numerous statistical and eco-
nomic reports required by both Government and industry; supply numerous in-
dividual services on business operations to small-business men and to American
industry generally; direct a program of voluntary industry agreements; maintain
requisite export controls; promote United States interests in. exports and imports;
stimulate the profitable operation of manufacturing, construction, distribution,
transportation, and service industries, in order to achieve and sustain full and
efficient production and employment; provide factual, analytical, and interpretive
data on commodities, industry, transportation, and marketing; and provide
basic indicators of the condition of the national economy, current analyses of the
business situation and trends, and technical research in the functioning of the
economy--including the development and analysis of measures of the national
income, gross national product, and international balance of payments of the
United States-thus establishing a factual groundwork for use in both business
and Government operations; and related activities.
Size of organization:
Number of employees, 2,1.00.
Estimated annual expenditures for fiscal year 1.949, $14,000,000.
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Position title: Assistant Secretary of Commerce. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: July 15, 1947, by Public Law
191 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Vacant.
Responsibilities: The Assistant Secretary of Commerce for Air exercises
immediate direction and supervision over the Civil Aeronautics Administration,
the Coast and Geodetic Survey, and the Weather Bureau, and other activities
of the Department which promote and foster civil aviation.
This involves the development of civil aeronautics and air commerce in the
United States; orderly planning and construction of civil airways and landing
areas; installation and maintenance of air navigation facilities; registration of
aircraft; enforcement of air safety rules, regulations, and standards; direction of
programs of aviation development and training; hydrographie surveys of the
coasts of the United States and its possessions, including observations of tides
and currents; geographical surveys and mapping of the United States; compilation
and publication of aeronautical, nautical, and inland maps and charts; observation
and reporting of weather conditions and forecasts from stations throughout the
United States and its possessions; cooperating in the international exchange of
weather reports and information for domestic and international purposes; pro-
grams of agricultural, hurricane, flood warning, and other types of specialized
forecasting; and related activities.
Size of organization:
Number of employees, 24,000.6
Estimated annual expenditures for fiscal year 1949, $196,000,000.
Position title: Chairman of Economic Advisers. Section of bill: 2 (a).
Present salary: $15,000. Date salary established: February 20, 1946, by Public
Law 304 of Seventy-ninth Congress.
Proposed salary: $20,000.
Incumbent: Edwin G. Nourse. State: District of Columbia.
Responsibilities: The Council of Economic Advisers has statutory responsi-
bility (sec. 4 of the Employment Act of 1946) "to assist and advise the President
in the preparation of the Economic Report; to gather timely and authoritative
information concerning economic developments and economic trends, both current
and prospective; to analyze and interpret such information * * *: to appraise
the various programs and activities of the Federal Government in the light of
the policy declared in section 2 * * *; to develop and recommend to the
President national economic policies to foster and promote free competitive
enterprise; to avoid economic fluctuations or to diminish the effects thereof, and
to maintain employment, production, and purchasing power; to make and furnish
such studies, reports thereon, and recommendations with respect to matters of
Federal economic policy and legislation as the President may request.
The Chairman of the Council presides over its work, consults with the President,
and maintains contacts with Cabinet officers 'and agency heads and with outside
organizations of business or economic character.
Size of organization:
Number of employees: 34 (excluding Council members).
Estimated annual expenditures for fiscal year 1949, $300,000.
Position title: Member Council of Economic Advisers. Section of bill: 3 (c).
Present salary: $15,000. Date salary established: February 20, 1946. By Public
Law 304 of Seventy-ninth Congress.
Proposed salary: $17,500.
Incumbents: Leon I-I. Koyserling, Vice Chairman, New York; John D. Clark,
Wyoming.
Responsibilities: The Council of Economic Advisers has statutory responsi-
bility (sec. 4 of the Employment Act of 1946) "to assist and advise the President
in the preparation of the Economic Report; to gather timely and authoritative
information concerning economic developments and economic trends, both cur-
rent and prospective, to analyze and interpret such information * * *; to
appraise the various programs and activities of the Federal Government in the
light of the policy declared in section 2 * * *; to develop and recommend
6 Includes 4,300 part-time employees.
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N OF
DEP
to the President national economic policies to foster and promote free com-
petitive enterprise, to avoid economic fluctuations or to diminish the effects
thereof, and to maintain employment, production, and purchasing power; to
make and furnish such studies, reports thereon, and recommendations with
respect to matters of Federal economic policy and legislation as the President
may request.
Each member of the Council, in the exercise of his responsibilities, consults
with the President, and maintains contacts with Cabinet officers and agency
heads and with outside organizations of business or economic character.
The Vice Chairman of the Council presides over its work in the absence of the
Chairman, and supervises certain assigned segments of the staff work.
Size of organization:
Number of employees 34 (excluding Council members)
Estimated annual expenditures for fiscal year 1949, $300,000.
Position title: Member, Displaced Persons Commission. Section of bill: 5 (a).
Present salary: $10 000. Date salary established: June 25, 1948, by Public Law
774 of Eightieth congress.
Proposed salary: $15,000.
Incumbents: Ugo Carusi, Chairman, District of Columbia; Harry N. Rosenfield,
New York; Edward M. O'Connor, New York.
Responsibilities: Shares joint responsibility with the other members of the
Displaced Persons Commission in establishing the policies, rules, and regulations:
under which the displaced-person immigration program of the United States is
administered. Participates in the direction of the activities of the Commission
in the selection, security investigation, and resettlement of displaced persons in
this country. Shares coordination of the program activities of, and allocates
funds to, such participating Federal agencies as the Department of the Army,
Federal Security Agency, Department of State, and Department of Justice.
Integrates the activities of the State government and voluntary agencies which
are concerned with the problem of resettlement of displaced-person immigrants.
The Chairman of the Commission performs the usual functions of the presiding
head of a commission-type independent agency of the Federal Government.
Size of organization:
Number of employees, 250.
Estimated annual expenditures for fiscal year 1949, $1,375,000.
Position title: Commissioner of the District of Columbia. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: July 1, 1946, by Public Law
390 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbents: John Russell Young, District of Columbia; Guy Mason, District of
Columbia; Brig. Gen. Gordon R. Young, District of Columbia.
Responsibilities: The Board of Commissioners of the District of Columbia as
' i the officers of the corporation of the District of Columbia, direct the executive
functions of government in the District of Columbia by enforcement of pertinent
laws of the Congress, the promulgation and enforcement of police, health, and
other municipal ordinances and regulations, and membership on statutory boards
and commissions. This program must provide for the health, safety, education,
welfare, and good order of the populace of approximately 900,000. The annual
fiscal operations of the corporation involve approximately $100,000,000. The
Commissioners of the District of Columbia are responsible for and collect all
revenues, prepare the budget, and direct expenditures after appropriation by the
Congress. Responsibility for this program is completely that of the Board of
? Commissioners. For the purpose of better coordination, the Commissioners have
allocated the several departments and agencies of the over-all organization among
themselves, reducing thereby the number of channels of communication to and
from the Board, and bringing about a more efficient and speedier correlation and
supervision.
gize of organization:
Number of employees, 18,000.
Estimated annual expenditures for fiscal year 1949, $100,000,000.
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36 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Position title: Administrator for Economic Cooperation. Section of bill: 2 (a).
Present salary: $20,000. Date salary established: April 3, 1948, by Public Law
472 of Eightieth Congress.
Proposed salary: $20,000.
Incumbent: Paul G. Hoffman, State: Michigan.
Responsibilities: The Administrator for Economic Cooperation is responsible
to the President for the administration of the provisions of the Foreign Assistance
Act of 1948, and for the direction and coordination of all activities of the Adminis-
tration. Ile is also charged with carrying out economic relief and recovery
programs in China and Korea.
His status in the executive branch of the Government is comparable to that of
the head of an executive department during the period of operation of the
Administration,
In the performance of his duties, the Administrator is responsible for planning
and determining current and long-range policy and operations. in respect to
economic assistance provided the participating countries consistent with the
declaration of policy in the authorizing acts. The responsibility for organizing
and directing the European recovery program includes the promotion of agricul-
tural and industrial production in the participating countries, the restoration and
maintenance of sound currencies, budgets and finances, and the facilitation of
trade within Europe and by Eurpoe with the rest of the world.
At the same time, he must institute measures to safeguard the interests of
farmers, businessmen, and consumers in the United States, including the en-
couragement of the use of normal private trade channels, assuring that the program
will not react adversely upon the United States economy in the financing of
shipments and commodities the export of which would create domestic shortages,
and arranging for the purchase from participating countries and their dependencies
of strategic materials needed by the United States. Corollary responsibilities
are numerous and include promotion of tourist travel of United States citizens
in Europe, and encouraging voluntary foreign relief activities of American organi-
zations and individuals for the benefit of the participating countries.
In executing the foregoing responsibilities, the Administrator, in effect, is
administering a wide segment of American foreign policy. He must work in
close consultation, of course, with the Secretary of State and with other cabinet
officers. He must deal directly and closely with the heads of foreign governments
in Europe and the Far East, with the Organization for European Economic Coop-
eration in Paris, and with leaders of industry and labor in the United States.
The Administrator serves as a member of the National Advisory Council on
International Monetary and Financial Problems, and is also Chairman of the
Public Advisory Board appointed by the President to advise on general and basic
policy matters relating to economic recovery.
Size of organization:
Number of employees, 3,350.
Estimated annual expenditures for fiscal year 1949, .$4,000,000,000.
Position title: Deputy Administrator for Economic Cooperation. Section of
bill: 3 (a).
Present salary: $17,500. Date salary established: April 3, 1948, by Public Law
472, of Eightieth Congress.
Proposed salary: $18,000.
Incumbent: Howard Bruce. State: Maryland.
Responsibilities: The Deputy Administrator functions as a general assistant
to the Administrator for Economic Cooperation in carrying out the total range
of responsibilities of the Administrator. He handles, on behalf of the Administra-
tar, many of the principal problems of ECA relating to such recovery measures
as agricultural and industrial programs, trade and fiscal policy, provision of
technical assistance to the participating countries, development of dependent
Areas eas and ac uisition of strategic materials.
q
The , D 1 eputy Administrator is generally responsibile for administration of the
agency, which has a domestic and overseas establishment of broad scope and
considerable size, with missions in 1.9 European countries, a European head-
quarters organization in Paris, and special missions in China and Korea.
The Deputy Administrator serves as Acting Administrator for Economic
Cooperation during the absence of the Administrator; such absences are frequently
occasioned by conferences or negotiations abroad.
Size of organization:
Number of employees, 3,350.
Estimated annual expenditures for fiscal year 1949, $4,000,000,000.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 37
Position title: Chairman, Board of Directors, Export-Import Bank of Washington.
Section of bill: 4.
Present salary: $15,000. Date salary established: (7).
Proposed salary: $16,000.
Incumbent: Mr. Herbert E. -Gaston. State: Now York.
Responsibilities: As one of four full-time directors. (excluding the Secretary of
State, who ex officio, is also a director), charged by law with the responsibility
for the management of Export-Import Bank of Washington, whose purpose, as
laid down by Congress, is "to aid in financing and to facilitate exports and imports
and the exchange of commodities between the United States or any of its Terri=
tories or insular possessions and any foreign country or the agencies or nationals
thereof," having lending authority therefor in the present amount of $3,500,000=
000; participates not only in the current management of all the phases of the
bank's activities but also in the discussion and formation of general lending policies
and the formulation of decisions with respect to new loans and the administration of
existing loans; incidental thereto, personally reviews all applications for or
changes in credits, discusses these and administrative actions with other members
of the Board and the staff of the bank; meets and negotiates with high-ranking
officials of foreign governments and with representatives of domestic and foreign
industries; consults and negotiates with commercial bankers and. others in carry-
ing out the expressed policy of Congress that the bank should supplement and
encourage and not compete with the investment of private capital in the foreign
field.
Designated by the President as Chairman of the Board of Directors and, by
election of the Board, President of the bank, serves as the chief administrative
officer of the bank and generally supervises the operations of the staff employees
subject to approval of all his actions by.the Board of Directors as a whole.
Size of organization:
Number of employees, 125.
Estimated annual expenditures for fiscal year 1949, $551,500,000.
Position title: Member, Board of Directors, Export-Import Bank of Washington.
Section of bill: 5 (a).
Present salary: $12,000. Date salary established: July 31, 1945, by Public Law
173 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbents: Hawthorne Arey, vice chairman, Nebraska; Clarence E. Gauss,
Connecticut; Lynn U. Stambaugh, North Dakota.
Responsibilities: As one of four full-time directors (excluding the Secretary of
State, who ex officio, is also a director), charged by law with the responsibility for
the management of Export-Import Bank of Washington, whose purpose, as laid
down by Congress, is "to aid in financing and to facilitate exports and imports
and the exchange of commodities between the United States or any of its Terri-
tories or insular possessions and any foreign country or the agencies or nationals
thereof," having lending authority therefor in the present amount of $3,500,000,-
000; participates not only in the current management of all the phases of the
bank's activities but also in the discussion and formation of general lending
policies and the formulation of decisions with respect to new loans and the adminis-
tration of existing loans; incidental thereto, personally reviews all applications
for or changes in credits, discusses these and administrative actions with other
members of the Board and the staff of the bank; meets and negotiates with high-
ranking officials of foreign governments and with representatives of domestic
and foreign industries; consults and negotiates with commercial bankers and others
in carrying out the expressed policy of Congress that the bank should supplement
and encourage and not compete with the investment of private capital in the
foreign field.
Size of organization:
Number of employees, 125.
Estimated annual expenditures for fiscal year 1949, $551,500,000.
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38 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Position title: Member, Federal Communications Commission. Section of bill: 4.
Present salary: $10,000. Date salary established: June 19, 1934. By Public
Law 416 of Seventy-third Congress.
Proposed salary: $16,000.
Incumbents: Wayne Coy, Indiana; Robert F. Jones, Ohio; Edward M. Webster,
District of Columbia; Frieda B. Hennock, New York; Goo. E. Sterling,
Maine; Rosel H. Hyde, Idaho; Paul A. Walker, Oklahoma.
Responsibilities: The duties of a member of the Federal Communications
Commission include those generally and specifically set forth in the Federal Com-
munications Act of 1934, as amended, and cover the field of radio, telephone, and
telegraph. Specifically, the Commissioners are required to regulate "interstate
and foreign commerce in communication by wire and radio so as to make available,
so far as possible, to all the people of the United States a rapid, efficient, Nation-
wide and world-wide wire- and radio-communication service with adequatefacili-
ties at reasonable charges, for the purpose of the national defense, for the purpose
of promoting safety of life and property through the use of wire and radio com-
munication." The foregoing involves a thorough study not only of the Communi-
cations Act but of all the problems, applications, and complaints arising under the
act. It particularly involves the directing of the staff of the Commission in the
preparation of all matters which Congress has placed within the jurisdiction of the .
Commission. A Commissioner must, so far as possible, make a thorough study
of all matters coming before the Commission, express his views thereon, and vote
on all cases arising thereunder.
Specifically, in the common-carrier field Commission regulation covers interstate
and international tariffs, through routes and charges, construction and abandon-
ments, mergers, accounting, valuation, and service of telephone and telegraph
companies. Each Commissioner must par.ticipate in decisions involving interstate,
or long-distance telephone rates, including matters of conflict" between interstate
and intrastate long-distance rates. He must also study and pass upon matters
involving the operation of Western Union Telegraph Co. to see that this company,
or any telegraph company, shall provide satisfactory Nation-wide telegraph service
at costs sufficiently satisfactory to the public that it will use such service at rates
sufficient to maintain the industry in a sound financial condition. The Commission
must also study and determine those problems looking to and connected with a
possible merger of international communications carriers. The Commission is
confronted with innumerable problems in the radio field. Many of these prob-
lems are the direct result of new developments in the science of radio. The effec-
tive utilization of these new developments is dependent upon policy decisions in
which each Commissioner participates and which require a comprehensive knowl-
edge of highly technical matters and a careful evaluation of the facts. Further-
more, these developments make effective international agreements essential. This
Commission advises the Department of State and the President on such matters
and each Commissioner participates fully in the formulation of these recommenda-
tions. At the request of the Commission each Commissioner undertakes the study
and supervision of special projects in the fields above-mentioned and recommends
appropriate action to be taken thereon.
Size of organization:
Number of employees, 1,350.
Estimated annual expenditures for fiscal year 1949, $6,677,000.
Position title: Member, Board of Directors, Federal Deposit Insurance Corpora-
tion. Section of bill: 4.
Present salary: $15,000. Date salary established: August 5, 1947, by Public
Law 363 of Eightieth Congress.
Proposed salary: $16,000.
Incumbent: Maple T. Harl. State: Colorado.
Responsibilities: As Chairman of the Board: The Board of Directors of the
Corporation has the responsibility of insuring deposits in insured banks tip to
$5,000 for each depositor and of maintaining the solvency of some 14,000 banks.
Deposits in these banks totaled $153,000,000,000, as of December 31, 1948, rep-
resenting the interests of 90,000,000 depositors. Included in these responsibilities
is the management of an insurance fund in excess of $1.1 billion. The Federal
deposit insurance law (12 U. S. C. 264 b) provides that the management of the
Corporation shall be vested in a Board of Directors consisting of three members,
one of whom shall be the Comptroller of the Currency. The Board of Directors
acts in three capacities-quasi-legislative, administrative, and quasi-judicial.
(1) As a quasi-legislative body, under legislative standards prescribed by the
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 39
Federal deposit insurance law (12 U. S. C. 264 g), the Board acts upon applications
from banks for admission to deposit insurance and applications by insured banks
under its jurisdiction for consent to establish, operate, or change location of
branches. It promulgates regulations governing the payment of deposits and
interest thereon by insured banks under its jurisdiction, advertisements by all
insured banks, and other regulations implementing the provisions of the law.
? (2) In an administrative capacity the Board supervises the examination of more
than 6,000 insured State nonmember banks and maintains close vigilance over
the condition of all 14,000 insured banks. It passes upon applications of all
insured banks under its jurisdiction for consent to retirement or reduction of
capital; change of location of main office; merge or consolidate with or assume
deposit liabilities of noninsured banks; transfer of assets to noninsured banks;
extension of corporate or charter powers; or to change the general character of
their business. It passes upon all matters pertaining to the liquidation of assets
acquired from insured banks by purchase or loan or which the Corporation is
administering as receiver thereof including the sale, compromise, settlement, or
other disposition of assets, and the allowance and payment of claims. It also
passes upon all matters relating to internal management of the Corporation which
have not been delegated to the Chairman. (3) Under a procedure prescribed in
F~ detail in the Federal deposit insurance law (12 U. S. C. 264 i) the Board acts as
a quasi-judicial tribunal in regard to the termination of the insured status of
insured banks for continued unsafe and unsound practices. In this capacity it
receives and evaluates evidence, makes findings of fact and conclusions of law,
and takes appropriate action to carry out this quasi-judicial process.
Duties of the Chairman of the Board: In addition to his responsibilities as a
member of the Board of Directors the Chairman is the chief executive and ad-
ministr',tive officer of the Corporation and as such he is responsible for the execu-
tion of policies fixed by the Board and for the operations of the Corporation
including financial transactions averaging $400,000,000 annually. Pursuant to
power delegated to him by the Board, he performs or supervises all managerial
functions and executes, on behalf of the Corporation, all documents of major
importance requiring signature. Ile acts as presiding officer at all Board meet-
ings. Ile is the liaison officer between the Board of Directors and the President,
the Congress, other governmental agencies and the State bank supervisory au-
thorities of the 48 States. As chief executive officer, he maintains a close day-
by-day liaison between the heads of the divisions of the Corporation and the
Board of Directors, concerning all operations of the Corporation and especially
in regard to the condition of approximately 14,000 insured banks, having 90,-
000,000 depositors, as revealed by examinations and investigations conducted by
the Corporation's examiners under the bank examining powers granted the Cor-
poration by the Congress as a vital necessity for the success of deposit insurance.
Size of organization:
Number of employees, 1,065.
Estimated annual expenditures for fiscal year 1949, $5,546,11.4.6
Position title: Member of Board of Directors, Federal Deposit Insurance Corpo-
ration. Section of bill: 4.
Present salary: $15,000. Date salary established: August 5, 1947, by Public
Law 363 of Eightieth Congress.
Proposed salary: $16,000.
Incumbent: H. E. Cook. State: Ohio.
Responsibilities: As appointive member of the Board other than the Chairman:
The Board of Directors of the Corporation has the responsibility of insuring
deposits in insured banks up to $5,000 for each. depositor and of maintaining the
solvency of sonic 14,000 banks. Deposits in these banks totaled $153,000,000,000
as of December 31, 1948, representing the interests of 90,000,000 depositors.
Included in these responsibilities is the management of an insurance fund in.
excess of $1,100,000,000. The Federal deposit insurance law (12 U. S. C. 264b)
provides that the management of the Corporation shall be vested in a Board of
Directors consisting of three members, one of whom shall be the Comptroller of
the Currency. The Board of Directors acts in three capacities-quasi-legislative,
administrative, and quasi-judicial. (1) As a quasi-legislative body, under legis-
lative standards prescribed by the Federal deposit insurance law (12 U. S. C.
264g), the Board acts upon applications from banks for admission to deposit
insurance and applications by insured banks under its jurisdiction for consent to
BAdministrative expenses only.
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40 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
establish, operate, or change location of branches. It promulgates regulations
governing the payment of deposits and interest thereon by insured banks under
its jurisdiction, advertisements by all insured banks, and other regulations imple-
menting the provisions of the law. (2) In an administrative capacity the Board
supervises the examination of more than 6,000 insured State nonmember banks
and maintains close vigilance over the condition of all 14,000 insured banks.
It passes upon applications of all insured banks under its jurisdiction for consent
to retirement or reduction of capital; change of location of main office; merge or
consolidate with or assume deposit liabilities of noninsured banks; transfer of
assets to noninsured banks; extension of corporate or charter powers; or to change
the general character of their business. It passes upon all matters pertaining to
the liquidation of assets acquired from insured banks by purchase or loan or
which the Corporation is administering as receiver thereof including the sale,
compromise, settlement, or other disposition of assets, and the allowance and
payment of claims. It also passes upon all matters relating to internal manage-
ment of the Corporation which have not been delegated to the Chairman. (3)
Under a procedure prescribed in detail in the Federal deposit insurance law
(12 U. S. C. 264i) the Board acts as a quasi-judicial tribunal in regard to the
termination of the insured status of insured banks for continued unsafe and
unsound practices. In this capacity it receives and evaluates evidence, makes
findings of fact and conclusions of law, and takes appropriate action to carry out
this quasi-judicial process.
Duties of the appointive member of the Board other than the Chairman: In
addition to his responsibilities as a member of the Board, the appointive member
of the Board other than the Chairman acts. as Chairman of all committees and
boards which review and make recommendations on matters to be presented to
the Board for consideration and action. In the absence of the Chairman, he
executes documents of major importance on behalf of the Corporation.
Size of organization :
.Number of employees, 1,065.
Estimated annual expenditures for fiscal year 1949, $5,546,114.8
Position title: Member, Board of Directors, Federal Deposit Insurance Corpo-
ration (Comptroller of the Currency). Section of bill: 4.
Present salary: $15,000. Date salary established: August 23, 1935, by Public
Law 305 of Seventy-fourth Congress.
Proposed salary: $16,000.
Incumbent: Preston Delano. State: Maryland.
Responsibilities: As ex-officio member of the Board: The Board of Directors of
the Corporation has the responsibility of insuring deposits in insured banks up to
$5,000 for each depositor and of maintaining the solvency of some 14,000 banks.
Deposits in these banks totaled $153,000,000,000, as of December 31, 1948, repre-
senting the interests of 90,000,000 depositors. Included in these responsibilities
is the management of an insurance fund in excess of 1..1 billion dollars. The
Federal Deposit Insurance law (12 U. S. C. 264b) provides that the management
of the Corporation shall be vested in a Board of Directors consisting of three
members, one of whom shall be the Comptroller of the Currency. The Board of
Directors acts in three capacities-quasi-legislative, administrative, and quasi-
judicial. (1) As a quasi-legislative body, under legislative standards prescribed
by the Federal Deposit Insurance law (12 U. S. C. 264g), the Board acts upon
applications from banks for admission to deposit insurance and applications by
insured banks under its jurisdiction for consent to establish, operate or change
location of branches. It promulgates regulations governing the payment of
deposits and interest thereon by insured banks under its jurisdiction, advertise-
ments by all insured banks, and other regulations implementing the provisions of
the law. (2) In an administrative capacity the Board supervises the examination
of more than 6,000 insured State nonmember banks and maintains close vigilance
over the condition of all 14,000 insured banks. It passes upon applications of all
insured banks under its jurisdiction for consent 'to: retirement or reduction of
capital; change of location of main office; merge or consolidate with or assume
deposit liabilities of noninsured banks; transfer of assets to noninsured banks;
extension of corporate or charter powers; or to change the general character of
their business. It passes upon all matters pertaining to the liquidation of assets
acquired from insured banks by purchase or loan or which the Corporation is
administering as receiver thereof including the sale, compromise, settlement or
Administrative expenses only.
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other disposition of assets, and the allowance and payment of claims. It also
passes upon all matters relating to internal management of the Corporation which
have not been delegated to the Chairman. (3,) Under a procedure prescribed in
detail in the Federal deposit insurance law (12 U. S. C. 264i) the Board acts as a
quasi-judicial tribunal in regard to the termination of the insured status of insured
banks for continued unsafe and unsound practices. In this capacity it receives
and evaluates evidence, makes findings of fact and conclusions of law and takes
appropriate action to carry out this quasi-judicial process.
Duties of the Comptroller of the Currency as ex officio member of the Board:
The Comptroller of the Currency is the ex officio member of the Board of Directors.
In the absence of the Chairman, the Comptroller of the Currency acts as presiding
officer at all. meetings of the Board. In the event of vacancy in the office of the
Chairman, the Comptroller of the Currency acts as Chairman. His entire com-
pensation is paid by the Bureau of Comptroller of the Currency and he receives no
additional compensation from the Corporation for his services as ex officio member
of the Board.
Size of organization:
Number of employees, 1,065.
Estimated annual expenditures for fiscal year 1949, $5,546,114.
Position title: Director, Federal Mediation and Conciliation Service. Section of
bill: 3 (c).
Present salary: $12,000. Date salary established: August 22, 1947; by Public
Law 101 of Eightieth Congress.
Proposed salary: $17,500.
Incumbent: Cyrus S. Ching. State: New York.
Responsibilities: Administers the Federal Mediation and Conciliation Service
which was created by title II of the Labor Management Relations Act, 1947
(Public Law 101, 80th Cong.).
1. The principal objective of the Service is to prevent or minimize interruptions
of the free flow of commerce growing out of labor disputes in industries. affecting
commerce by assisting the parties to settle such disputes through conciliation and
mediation.
2. The Director meets with the National Labor-Management Panel and seeks
its advice on the avoidance of industrial controversies and the manner in which
mediation and voluntary adjustment shall be administered, particularly with
reference to controversies affecting the general welfare of the country.
3. He arranges, through the regional directors in the field, for the development
and maintenance of cooperative working relationships with State and local
mediation agencies.
4. He directs, through the small staff in Washington and a group of 12 regional
directors, a staff of approximately 215 mediators and conciliators engaged in the
prevention and peaceful settlement of labor-management disputes.
5. He provides, through his national office staff, facilities for the nomination
and appointment of arbitrators upon request.
Size of organization:
Number of employees: 380.
Estimated annual expenditures for fiscal year 1949, $2,836,000.
Position title: Associate Director, Federal Mediation and Conciliation Service.
Section of bill: 5 (a).
Present salary: $10,330. Date salary established: December 30, 1945.8
Proposed salary: $15,000.
Incumbent: Howard T. Colvin. State: Virginia.
Responsibilities: Assists the Director in the formulation of policy and has
particular responsibility for the administration and coordination of the program
activities in the field.
1. Serves as Acting Director in the absence of the Director.
2. Has immediate responsibility for the direction and supervision of the 12
regional directors and the coordination of their program activities.
3. Has responsibility for supervising the conciliation of particular cases which
involve two or more regions.
8 Administrativo expenses only.
9 By Civil Service Commission Classification Act of 1937, amended.
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4. Through a series of reports from the field, keeps the Director and the national
office staff informed as to the significant cases arising in the field and the current
status of such cases until settlement is achieved.
5. Upon occasion participates in the conciliation of the more important or
significant cases.
Size of organization:
Number of employees, 380.
Estimated annual expenditures for fiscal year 1949, $2,836,000.
Position title: Member, Federal Power Commission. Section of bill: 4.
Present salary: $10,000. Date salary established: June 23, 1930, by Public
Law 412 of Seventy-first Congress.
Proposed salary: $16,000.
Incumbents: Nelson Lee Smith, chairman, New Hampshire; Claude L. Draper,
Wyoming; Thomas C. Buchanan, Pennsylvania; Harrington Wimberly, Okla-
homa; Leland Olds, New York.
Responsibilities: The five members of the Federal Power Commission share
equally the responsibility placed upon it by Congress for administering the pro-
visions of the Federal Power Act, the Natural Gas Act, and the incidental regula-
tory provisions of certain other Federal statutes. (The functions of the Com-
mission are more fully described in the U. S. Government Manual for 1948, pp.
354-364.)
Under these acts the Commission is responsible for the development and appli-
cation of national policies with respect to: the licensing of all nonfederally owned
water power developments on lands or waters subject to congressional jurisdiction;
the making of numerous and comprehensive river basin, power market, supply,
and requirement surveys for regulatory purposes and for the use of Congress and
other Federal agencies; the regulation of all wholesale rates for electricity and
natural gas sold in interstate commerce for resale; the enforcement of uniform
accounting for electric and gas utilities and licensees; the regulation of security
issues, mergers and consolidations, and interlocking directorates of electric utili-
ties; and the issuance of certificates authorizing construction, acquisition, and
operation of natural-gas pipe-line facilities.
As an indication of the magnitude of the Commission's responsibility, approxi-
mately 70 percent of the privately owned electric utility industry of the United
States, representing a total capitalization of over $11,500,000,000, is subject
to its jurisdiction under the Federal Power Act, and approximately 69 percent
of the natural-gas industry, representing a total capitalization of over $3,000,-
000,000, is subject to its jurisdiction under the Natural Gas Act.
In addition to its quasi-legislative duties of policy determination and its admin-
istrative responsibility for the direction of its staff in their application, the Com-
mission performs quasi-judicial functions through both formal and informal
proceedings, involving the issuance of. its opinions and orders totaling, in 1948,
nearly 1,100.
The Chairman is by statute the principal executive officer of the Commission.
As such he performs such administrative functions as are delegated to him by
the commission, and usually serves as its spokesman before congressional com-
mittees and other governmental agencies on such matters as legislation and finance.
Size of organization:
Number of employees, 830.
Estimated annual expenditures for fiscal year 1949, $4,305,450.
Position title: Chairman, Board of Governors, Federal Reserve System. Section
of bill: 4.
Present salary: $15,000. Date salary established: August 23, 1935, by Public
Law 305 of Seventy-fourth Congress.
Proposed salary: $16,000.
Incumbent: Thomas B. McCabe. State: Pennsylvania.
Responsibilities: Designated by the President as Chairman of the Board of
Governors of the Federal Reserve System, and is its active executive officer.
The Board has responsibility for national monetary and credit policies, the
objective of which is to promote sound banking conditions and an adequate supply
of money and credit for use in commerce, industry, and agriculture. One of the
important instruments of credit policy is open-market operation (administered
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by the Federal Open Market Committee, of which each member of the Board is a
member) for the purpose of maintaining a basis for bank. credit ample to meet
the business needs of the country. Other instruments administered by the Board
include changes in reserve requirements of member banks to prevent injurious
credit expansion or contraction, determination of discount rates of Federal Reserve
banks, regulation of margin requirements to prevent the excessive use of credit
for the purchase of securities, and the regulation of consumer installment credit.
All of these instruments are interrelated and place upon the Board a broad respon-
sibility for the formulation of policies in the monetary and banking field designed
to promote stability in the economy. In addition, the Board is charged with
responsibility for the supervision of the 12 Federal Reserve banks and their 24
branches, the issuance and retirement of Federal Reserve notes, which constitute
the major portion of our currency, and the exercise of special supervision over
all relationships of these banks with foreign banks and bankers. It has numerous
other responsibilities relating to the supervision of banks which are members of
the Federal Reserve System.
When the Federal Reserve System was established in 1913 as a governmental
agency charged with primary responsibility for national monetary and credit
policies, Congress specified for the then-as-now full time Reserve Board members
salaries equal to those of Cabinet heads. Subsequently, though not concurrently,
,w, salaries of Cabinet officers and of Board members were increased to $15,000.
' Size of organization:
Number of employees, Board, 545; Federal Reserve banks, 19,081.
Estimated annual expenditures for fiscal year 1949, Board, $3,357,700;
Federal Reserve banks, $92,581,000.
Position title: Member, Board of Governors, Federal Reserve System. Section
of bill: 4.
Present salary: $15,000. Date salary established: August 23, 1935, by Public
Law 305 of Seventy-fourth Congress.
Proposed salary: $16,000.
Incumbents: Marriner S. Eccles, Utah; M. S. Szymezak, Illinois; Ernest G.
Draper, Connecticut; R. M. Evans, Virginia; James K. Vardaman, Jr., Mis-
souri; Lawrence Clayton, Massachusetts.
Responsibilities: The Board has responsibility for national monetary and
credit policies, the objective of which is to promote sound banking conditions
and an adequate supply of money and credit for use in commerce, industry, and
agriculture. One of the important instruments of credit policy is open-markq
operations (administered by the Federal Open Market Committee, of which each
member of the Board is a member) for the purpose of maintaining a basis for
bank credit ample to meet the business needs of the country. Other instruments
administered by the Board include changes in reserve requirements of member
banks to prevent injurious credit expansion or contraction, determination of
discount rates of Federal Reserve banks, regulation of margin requirements to
prevent the excessive use of credit for the purchase of securities, and the regula-
tion of consumer installment credit. All of these instruments are interrelated
and place upon the Board a broad responsibility for the formulation of policies
in the monetary and banking field designed to promote stability in the economy.
In addition, the Board is charged with responsibility for the supervision of the
12 Federal Reserve banks and their 24 branches, the issuance and retirement of
Federal Reserve notes, which constitute the major portion of our currency, and
the exercise of special supervision over all relationships of these banks with
foreign banks and bankers. It has numerous other responsibilities relating to
the supervision of banks which are members of the Federal Reserve System.
When the Federal Reserve System was established in 1913 as a governmental
agency charged with primary responsibility for national monetary and credit
policies, Congress specified for the then-as-now full-time Reserve Board members
salaries equal to those of Cabinet heads. Subsequently, though not concurrently.
salaries of Cabinet officers and of Board members were increased to $15,000.
Size of organization:
Number of employees, Board, 545; Federal Reserve banks, 19,081.
Estimated annual expenditures for fiscal year 1949, Board, $3,357,700;
Federal Reserve banks, $92,581,000.
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A
Position title: Administrator, Federal Security Agency. Section of bill: 2-(a).
Present salary: $12,000. Date salary established, July 1, 1939, by Public Law 10
-sixth Congress
of Sevent
.
y
Proposed salary: $20,000.
Incumbent: Oscar It.. Ewing. State: New York.
The Administrator directs and supervises all of the activities of the Federal
Security Agency, an organization of more than 37,000 employees, located in over
600 different establishments throughout the continental United States, the
Territories, and in several foreign posts. He administers a budget of over
$1,500,000,000 (proposed. for fiscal year 1950) including the handling of over a
billion dollars in Federal grants to the States for social security, public welfare,
public health, education, and vocational rehabilitation. He is responsible, as
provided by statute, for the proper administration of such major programs as
those provided in the Social Security Act, Public Health Service Act, Office of
Education Act, Federal Employees Compensation Act, Food, Drug, and Cos-
metic Act, for the operation of vast research programs under the National In-
stitutes of Health, and for a wide range of related acts and programs. Ile also
supervises the management of numerous large institutions such as Freedmen's
Hospital, St.'Elizabeths Hospital, 26 Marine hospitals, 2 Public Health mental-
hygiene hospitals, the Federal Leprosarium, and various other smaller institutions.
He is also responsible for the budgeting and handling of Federal funds allocated
to Howard University, Columbia Institution for the Deaf, and the American
Printing House for the Blind.
Size of organization:
Number of employees, over 37,000.
Estimated annual expenditures for fiscal year 1949, $1,350,110,164.
Position title: Assistant Administrator, Federal Security Agency. Section of
bill: 3 (c).
Present salary: $10,330. Date salary established: July 1, 1939,11 by Public Law
to of Seventy-sixth Congress.
Proposed salary: $17,500.
Incumbent: J. Donald Kingsley. State: Ohio.
The Assistant Administrator serves as a deputy and alter ego to the Adminis-
trator in directing and supervising all of the activities of the Federal Security
Agency. Ile shares with the Administrator, as directed by the latter, respon-
sibility for the administration of all of the programs with which this Agency is
charged. In terms of day-to-day operations, he is particularly concerned with the
direction of internal administration, while the Administrator concentrates more
upon congressional and public relations. The scope and content of the functions
supervised by the Assistant Administrator are the same as those described for the
Administrator. He also serves as Acting Administrator in the absence of the
Administrator and at such times performs all the functions of the Administrator.
Position title: Commissioner for Social Security. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: January 1, 1948, by Public
Law 12 - of. Congress.
Proposed salary: $15,000.
Incumbent: Arthur J. Altmeyer. State: Wisconsin.
The Commissioner for Social Security directs and supervises the activities of
the Social Security Administration. He is responsible, under delegated authority,
to the Federal Security Administrator for the administration of all phases of the
Social Security Act pertaining to old-age and survivors insurance, public assist-
ance, and employment security, and also for the Children's Bureau and the Bureau
of Federal Credit Unions. This includes grants to States for the public-assistance
and employment-security programs, and direction of one of the largest insurance
operations in the world. Ile supervises the work of approximately 13,000 em-
ployees located throughout the United States.
Size of organization:
Number of employees, approximately 13,000.
Estimated annual expenditures for fiscal year 1949, $1,010,540,288.
10 53 Stat. 1424 (no Public Law number; Reorganization Plan No. 1 of 1939).
11 Salary initially sot at $9,000; subsequently raised by effects of Pay Acts of 1945, 1946, and 1948 to the
present rate.
12 Not a statutory salary. Position classified as P-8 under Classification Act of 1923, as amended. Prior
to January 1, 1948, this was a statutory salary provided in Reorganization Plan No. 2 of 1946 (no Public
Law number; 60 Stat. 1095).
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 45
Position title: Chairman, Federal Trade Commission. Section of bill: 4.
Present salary: $10,000.13 Date salary established: September 26, 1914, by
Public Law 203 of the Sixty-third Congress.
Proposed salary: $16,000.
Incumbent: Vacancy. State:
Responsibilities: The five Commissioners comprising the Federal Trade Com-
mission are authorized and directed by acts of Congress (1) to promote free and
fair competition in interstate trade in the interest of the public through prevention:
of price-fixing agreements, boycotts, combinations in restraint of trade, unlawful
price discriminations, and other unfair methods of competition and unfair or de-
ceptive acts and practices, including false advertising; (2) to safeguard life and;
health of the consuming public by preventing the dissemination of false advertise
ments of food, drugs, cosmetics, and devices; and (3) to make available to the'
President, the Congresss, and the public factual data concerning economic and
business conditions as a basis for remedial legislation when needed, and for the
guidance and protection of the public.
The extent and magnitude of these responsibilities of the Commissioners is
emphasized by the fact that the value of the goods flowing in interstate commerce
and subject to their authority is in the aggregate tons of billions of dollars' worth
a year. Since the $10,000 per annum. salary for the Commissioners was fixed by
the Congress in 1914, the importance and volume of the duties of the Commis-
sioners have been greatly enlarged both by reason of the extent of the additional
duties delegated by the Congress to the Commissioners and the increase in the
number and complexity of the economic and legal problems presented for their
determination. The Commissioners, in their discretion, must weigh, consider,
and decide delicately balanced questions of law and fact and in individual cases
their decisions, including the choice of remedy imposed, may involve millions of
dollars to a particular concern or concerns and vitally affect the economic interests
of competitors and consumers. The economic and political structure of the
United States is based on a free and competitive economy, and the Congress has
delegated to the Commissioners the responsibility and discretion in the selecting
of the matters for consideration and, in their determination of the matters selected,
the keeping of the channels of interstate commerce free and fair.
In addition to the above duties as a Commissioner, the Chairman calls and
presides at meetings of the Commission and presides at hearings on litigation cases
before the Commission. Ile is ordinarily the spokesman for the Commission in
testifying on appropriations and other matters before the committees of Congress
and at other important official functions. The Chairman reviews and corrects
when necessary all press releases prior to issuance by the Commission. The
Chairman also reviews and signs all stipulations to cease and desist and all find-
ings as to the facts proposed for issuance by the Commission. The Chairman also
reviews and usually signs all letters from the Commission containing important
statements of policy, including letters sent to Members of Congress.
Position title: Member, Federal Trade Commission. Section of bill: 4.
Present salary: $10,000.13 Date salary established: September 26, 1914, by Public
Law 203 of Sixty-third Congress.
Proposed salary: $16,000.
Incumbents: Garland S. Ferguson, North Carolina; Ewin I,. Davis, Tennessee;,
W. A..Ayres, Kansas, Lowell B. Mason, Illinois.
Responsibilities: The five Commissioners comprising the Federal Trade Com-
mission arc authorized and directed by acts of Congress (1) to promote free and
fair competition in interstate trade in the interest of the public through prevention
of price-fixing agreements, boycotts, combinations in restraint of trade, unlawful
price discriminations, and other unfair methods of competition and unfair or:
deceptive acts and practices including false advertising; (2) to safeguard life and
health of the consuming public by preventing the dissemination of false advertise-
ments of food, drugs, cosmetics, and devices; and (3) to make available to the
President, the Congress and the public factual data concerning economic and
business conditions as a basis for remedial legislation when needed, and for the
guidance and protection of the public.
The. extent and magnitude of these responsibilities of the Commissioners is
emphasized by the fact that the value of the goods flowing in interstate commerce
and subject to their authority is in the aggregate tens of billions of dollars' worth
13 Pending independent-offices appropriation bill for fiscal year 1950 provides salaries of $12,000 for each
Commissioner.
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46 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
a year. Since the $10,000 per annum salary for the Commissioners was fixed by
the Congress in 1914, the importance and volume of the duties of the Commis-
sioners have been greatly enlarged both by reason of the extent of the additional
duties delegated by the Congress to the Commissioners and the increase in the
number and complexity of the economic and legal problems presented for their
determination. The Commissioners, in their discretion, must weigh, consider, and
decide delicately balanced questions of law and fact aT.d in individual cases their
decisions, including the choice of remedy imposed, may involve millions of dollars
to a particular concern or concerns and vitally affect the economic interests of
competitors and consumers. The economic and political structure of the United
States is based on a free and competitive economy and the Congress has delegated
to the Commissioners the responsibility and discretion in the selecting of the mat-
ters for consideration and, in their determination of the matters selected, the
keeping of the channels of interstate commerce free and fair.
Size of organization:
Number of employees, 681.
Estimated annual expenditures for fiscal year 1949, $3,612,000.
Position title: Administrator, Federal Works Agency. Section of bill: 3 (a).
Present salary: $12,000. Date salary established: July 1, 1939, by Public Law
20 of Seventy-sixth Congress.
Proposed salary: $18,000.
Incumbent: Maj. Gen. Philip B. Fleming. State, Iowa.
Responsibilities: The Federal Works Administrator is appointed by the
President by and with the approval of the Senate; responsible for general direction
and supervision over administration of the Public Buildings Administration, the
Public Roads Administration, and the Bureau of Community Facilities; exercises
all functions of secretaries of departments relating to bureaus transferred to this
Agency; reports directly to the President; sits regularly with the Cabinet, since
1941; advises the President and congressional committees on matters of public
works planning and construction and relation of such matters to the national
economy; establishes policies and programs of the Agency and effectuates them
by direct negotiations with and delegations to the heads of the constituent bureaus;
provides direct line of responsibility from President to operating officials of the
Agency; provides supervision over the administrative functions of the bureaus
through a small specialized central staff reporting directly to him; maintains
liaison with Members of Congress, the heads of other Federal agencies, State and
local officials, professional societies concerned with public works, and the public;
executes or coordinates special programs assigned to him by the President such
as disaster relief, highway safety, fire prevention, etc.; assigns to the appropriate
bureau for execution, programs vested in him by legislation.
Agency programs involve services in public works planning and construction
by direct action, grants-in-aid, and loans; they spread over all 48 States, the
territories and possessions and 10 foreign countries; they involve continuing
cooperative relationships with almost every agency of the executive establishment,
the governments of each State and Territory as well as each foreign country
involved and with many local public bodies; measured in expenditure of Federal
funds for 1949 the main categories of programs are: highways, $485,000,000
(which generates a total expenditure of some $900,000,000) ; building construction
and maintenance, $135,000,000, other public works, $32,000,000, a total of
$652,000,000; the building-construction program is purposely subnormal to
avoid competition for construction facilities with essential private building
construction: the program of public works other than highways and buildings is
subnormal as certain programs are nearing completion and a now program is just
starting; authorizations for substantial new programs for buildings and for
other public works are being considered by this Congress.
Size of organization:
Number of employees, March 31, 1949, 23,142.
Estimated annual expenditures for fiscal year 1949, $651,662,000.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 47
Position title: Assistant Administrator, Federal Works Agency. Section of bill: 4.
Present salary: $10,000.14 Date salary established: July 1, 1946, by Public Law
334 of Seventy-ninth Congress.
Proposed salary: $16,000.
Incumbent: James W. Follin. State: District of Columbia.
Responsibilities: The position of Assistant Federal Works Administrator is
provided for by law and is filled by appointment by the Administrator; acts
by law for the Administrator in his absence; assists the Federal Works Adminis-
trator throughout the full gamut of his responsibilities; reviews for the Adminis-
trator legislative and budgetary proposals and represents the Administrator
before congressional committees; exercises general supervision over the program
planning and program accomplishments of the agency; as chief of staff directs
the staff activities of the Administrator's office; immediate supervision of eco-
nomic and statistical research concerning construction and State and local plan-
ning, both with specific reference to public construction as a whole and to agency
programs; participates actively in the development and furtherance of proposed
authorizations of new and continued programs; performs such other special
assignments as the Administrator may from time to time require.
Agency programs involve services in public-works planning and construction
by direct action, grants-in-aid, and loans; they spread over all 48 States, the
Territories and possessions and 10 foreign countries; they involve continuing coop-
erative relationships with almost every agency of the executive establishment,
the governments of each State and Territory as well as each foreign country
involved and with many local public bodies; measured in expenditure of Federal
funds for 1949 the main categories of programs are: Highways $485,000,000
(which generates.a total expenditure of some $900,000,000), building construction
and maintenance $135,000,000, other public works $32,000,000, a total of $652,-
000,000; the building-construction program is purposely subnormal to avoid
competition for construction facilities with essential private building construction;
the program of public works other than highways and buildings is subnormal as
certain programs are nearing, completion and a new program is just starting;
authorizations for substantial new programs for buildings and for other public
works are being considered by this Congress.
Size of organization:
Number of employees, March 31, 1949, 23,142.
Estimated annual expenditures for fiscal year 1949, $651,662,000.
Position title: Commissioner, Bureau of Community Facilities. Section of bill:
5 (a).
Present salary: $10,330. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Pere F. Seward. State: Maryland.
Responsibilities: The Commissioner of Community Facilities is appointed by
the Federal Works. Administrator and reports directly to him; responsible by
delegation from the Administrator for the proper administration and execution of
programs assigned to the Bureau of Community Facilities by the Administrator
and in conformity to his policies and programs; directs these programs through
a small central staff and executes them through a field organization of nine
divisions with appropriately limited delegation of his authorities and exactment
of equal responsibilities to him; participates actively in program planning and in
developing and furthering proposed authorizations for new or continued programs
in the field of public works, other than buildings and highways; provides direction
for President's disaster-relief program.
Programs are in the field of public-works planning and construction by direct
action, grants-in-aid, and loans; spread over 48 States, Territories, and possessions;
involve continuing cooperative relationships with other Federal agencies, govern-
ments of States and with local public bodies; include 5-year program of public
works in the Virgin Islands totaling $10,000,000, 5-year program for water-
pollution control totaling $120,000,000, custody and disposal of Federal properties
and bonds totaling some $168,000,000, the completion of programs for veterans'
educational facilities, public-works advance planning involving repayment of
advances to local bodies of some $51,000,000, assistance in maintenance and
19 Independent Offices Appropriation Act, 1950, as passed by the House provides $10,330.
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48 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS.
operation of certain schools, and direction and coordination of disaster relief by
special delegation from the Administrator; authorization for several substantial
new programs are being considered by this Congress.
Size of organization:
Number of employees March 31, 1949, 395.
Estimated annual expenditures for fiscal year 1949, $32,000,000.
Position title: Commissioner, Public Buildings Administration. Section of bill:
5 (a).
Present salary: $10,330. 15 Date salary established: July 1.1, 1948, by Public
Law 900 of Eightieth Congress. ($10,000 July 1, 1943 by Public Law 125 of
Seventy-eighth Cong).
Proposed salary: $15,000. .
Incumbent: W. B. Reynolds. State: Iowa.
Responsibilities: Reorganization Plan No. I provides in section 301 (a) that the
Federal Works Administrator "shall have general direction and supervision over
the administration of the several agencies consolidated into the Federal Works
Agency * * * and shall be responsible for the coordination of their functions."
Section 303 of the plan states: "The Commissioner of Public Buildings shall be
appointed by the Federal Works Administrator. The Commissioner of Public
Buildings shall act under the direction and supervision of the Federal Works
Administrator." Subject to the foregoing general directive, the Commissioner
of Public Buildings is charged with the responsibility of developing and executing
construction and repair programs involving Federally owned buildings and other
programs for the management, operation, and utilization of Federally owned
and rented buildings, including the leasing of space in the latter, for the accom-
modation of the executive establishments in Washington and for the country at
large, exclusive of certain special service types of structures and facilities and those
upon reservations of National Military Establishments.
These programs include: (a) the complete design, construction, repair, and
preservation of Federal buildings; (b) management, operation, and protection of
Government-owned and leased buildings; (c) providing and operating, public
utility communication services to Government activities; (d) maintenance of a
continuous survey of the use of Government-owned and leased office space, and
obtaining economical utilization or surrender; control and disposition of surplus
real. property; acquisition and management until commencement of construction
of sites for Federal buildings; and (e) management of a continuous program,
Nation-wide in scope, whereby an essential nucleus of Government-owned indus-
trial plants and a national reserve of machine tools and industrial manufacturing
equipment may be available to assist the supply of essential needs of the armed
forces in time of national emergency or in anticipation thereof.
Size of organization:
Number of employees March 31, 1949, 19,118.
Estimated annual expenditures for fiscal year 1949, $134,315,000.
Position tile: Commissioner, Public Roads Administration. Section of bill: 5 (a).
Present salary: $10,330.? Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress ($10,000 July 1, 1943, by Public Law 125 of 78th
Cong.).
Proposed salary: $15,000.
Incumbent: Thomas II. MacDonald. State: Iowa.
Responsibilities: The Commissioner of Public- Roads is. head of the Public
Roads Administration of the Federal Works Agency and reports directly to the
Federal Works Administrator. As the principal road-building organization of
the Federal Government, Public Roads administers the Federal-Aid Highway
Act through which funds are made available to the States for a cooperative pro-
gram for improvement of primary, secondary, and urban highways. The Federal-
aid system of these three groups of highways now totals 61.7,215 miles. Public
Roads also carries on an extensive program of highway research, which provides
a setting for national and international leadership in the development of progres-
sive highway administration, engineering, and research. Federal aid to the
States for the improvement of highways has been in effect since 1916. The
current Federal-aid program is financed largely from funds authorized by the
Federal-Aid Highway Acts of 1944 and 1948. The 1944 act authorized $500,-
000,000 a year in Federal funds for eacti of the first three postwar fiscal years,
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 49
and the 1948 act continued the program by authorizing $450,000,000 a year for
each of the fiscal years 1950 gd 1951.
The Public Roads Administration also cooperates with the Forest Service,
National Park Service, and other Federal agencies in the development of programs
for major highway improvements in the national forests, parks, and other Federal
areas and is responsible for plans and surveys, location, design, and construction of
highway projects in the areas. Public Roads Administration is also responsible
for direction of the following programs: Cooperation with other Federal agencies
in the'design and improvement of main highways in Alaska, design and construc-
tion of the Inter-American Highway in cooperation with Central American
Republics, advice and assistance in highway matters to member countries of the
Pan American Union and rehabilitation and restoration of highways destroyed and
damaged during the war in the Philippines.
Size of organization:
Number of employees March 31, 1949, 3,542.
Estimated annual expenditures for fiscal year 1949, $484,984,000.
Position title: Comptroller General of the United States. Section of bill: 2 (a).
Present salary: $12,000. Date salary established: April 5, 1941, by Public Law
Proposed salary: $20,000.
Incumbent: Lindsay C. Warren. State: North.Carolina.
Responsibilities: The Comptroller General controls and directs the General
Accounting Office, created by the Budget and Accounting A.et, 1921, and vested
with all the pothers and duties of the former accounting officers of the Treasury.
The 0111ce is in the legislative branch and the Comptroller General is the agent
of the Congress. The principal functions of the Office are to audit all Federal
expenditures and settle accounts reflecting Federal financial transactions. Its
determinations as to the legal availability of appropriations are final and con-
clusive upon the executive branch.
The execution of these responsibilities involves (a) issuance of rules and regu-
lations for carrying out the work of the General Accounting Office; (b) counter-
signing of warrants authorized by law and issued by the Secretary of the Treasury
making funds available for expenditure; (c) prescribing of forms, systems, and
procedures for administrative appropriation accounting in all departments and
agencies, and inventory accounting systems in all independent agencies as well as
leadership in the joint accounting program of the Budget Bureau, Treasury, and
General Accounting Office; (d) rendering of advance decisions to the heads of
departments and agencies, disbursing or certifying officers upon any question
involving a payment to be made by or under them; (e) settlement and adjust-
ment, independent of the executive departments, of all claims and accounts in
which the United States is concerned either as debtor or creditor-balances certi-
fied by the Comptroller General being final and conclusive upon the executive
branch; (f) audit of all Government corporations and the reporting of their
operations and financial condition, and any illegal transactions found, for each
fiscal year to the Congress, the President, the Secretary of the Treasury, and the
corporation; (g) expenditure analyses of executive agencies, from the standpoint
of economy and efficiency and reporting of results to congressional committees;
(h) investigation of all matters relating to the receipt, disbursement, and appli-
cation of public funds; (i) making of recommendations to the President, when
requested, and to the Congress, for legislation to facilitate prompt rendition and
settlement of accounts, as well as other matters in regard to the application of
public funds and economy or efficiency in public expenditures. The Comptroller
General is required to make investigations and reports ordered by either House
of Congress or by any committee of either House having jurisdiction over revenues,
appropriations, or expenditures.
As having an important bearing upon the national economy, the discharge of
these responsibilities results in an independent audit over expenditures, and
recoveries of large sums of public moneys which have been paid out erroneously
or illegally. Far larger, inestimable savings flow from the effects of audit and
control as a deterrent against careless or wrongful spending.
Size of organization:
Number of employees, 9,500.
Estimated annual expenditures for fiscal year 1949, .$35,600,000.
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50 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Position title: Assistant Comptroller General,, Section of bill: 3 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $18,000.
Incumbent: Frank L. Yates. State: West Virginia.
Responsibilities: The Assistant Comptroller General? is responsible for per-
forming duties assigned to him by the Comptroller General and acts as Comptroller
General during the absence of that official or during a vacancy in such office. Ile
counsels the Comptroller General on major policy matters in connection with
the direction and control of the General Accounting !Office. This Office was
created by the Budget and Accounting Act of 1921 and is in the legislative
branch. Its principal functions are to audit all Federal expenditures and settle
accounts reflecting Federal financial transactions. Its determinations as to the
legal availability of appropriations are final and conclusive upon the executive
b
h
ranc
.
.The execution of these responsibilities involves the rendering of decisions and
opinions, having the same force and effect as though rendered by the Comptroller
General, in cases involving the legality of Government expenditures; representing
the Comptroller General in meetings with officials of the executive branch and
before committees of Congress; consulting with and advising Chiefs of Divisions
of the Office on matters related to their operating problems; and assisting the
Comptroller General in carrying out the duties of his ; office which include (a)
issuance of rules and regulations for carrying out the work of the General Account-
ing Office; (b) countersigning of warrants authorized by law and issued by the
Secretary of the Treasury making funds available for expenditure; (c) prescribing
of forms, systems, and procedures for administrative appropriation accounting in
all departments and agencies and inventory accounting systems in all independent
agencies, as well as leadership in the joint accounting; program of the Budget
Bureau, Treasury, and General Accounting Office; (d) rendering of advance
decisions to the heads of departments and agencies, disbursing or certifying officers
upon questions involving payments to be made by or under them; (e) settlement
and adjustment, independent of the executive departments, of all claims and ac-
counts in which the United States is concerned either as debtor or creditor-
balances certified as a result being final and conclusive upon the executive branch;
(f) audit of all Government corporations and the reporting of their operations and
financial condition, and any illegal transactions found, for each fiscal year to the
Congress; (g) expenditure analyses of executive agencies, from the standpoint of
economy and efficiency; (h) investigation of all matters relating to the receipt,
disbursement, and application of public funds; (i) recommendations to the Presi-
dent upon request, and to the Congress, for legislation to effect prompt settlement
of accounts, and as to the application of public funds and economy or efficiency
in public expenditures; (j) investigations and reports ordered by either House of
Congress or by any committee of either House having jurisdiction over revenues,
appropriations, or expenditures, as well as continuous service to congressional
committees, upon their request, on pending measures or matters under inquiry.
As having an important bearing upon the national economy, the discharge of
these responsibilities results in an independent audit over expenditures, and re-
coveries of large sums of public moneys which have been paid out erroneously or
illegally. Far larger, inestimable savings flow from the effects of audit and control
as a deterrent against careless or wrongful spending.
Size of organization:
Number of employees, 9,500.
Estimated annual expenditures for fiscal year 1940, $35,600,000.
Position title: The Public Printer. Section of bill: 3 (c).:
Present salary: $10,330.16 Date basic salary established: May 29, 1928, by
Public Law 619 of Seventieth Congress (45 Stat. 1006,,44 U. S. C. 39 A).
Proposed salary: $17,500.
Incumbent: John J. Deviny. State: Washington, D. C.
Responsibilities: Appointed by the President by and with the consent of the
Senate, the Public Printer is the executive head of the Government Printing
Office, which is, by law, the agency through which all printing for the United
States Government is produced or obtained, and which employs more than 7,000
persons, several thousand of whom are journeyman craftsmen in the graphic arts
trades; is responsible for originating or approving and promulgating all orders of
is Additional $330 per annum authorized by Public Law 900, Eightieth Gong., effective July 11, 1948.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 51
policy affecting administration, production and personnel within the Government
Printing Office; advises the Congressional Joint Committee on Printing on action
to be taken on applications for the establishment of departmental printing
plants and suggests suitable legislation covering public printing and binding;
grants waivers for direct procurement of printing and binding by Government
agencies; directs procurement of printing from commercial sources; arranges the
making of contracts for paper, printing equipment and supplies; is responsible
for policy decisions, employment of personnel and departmental relations affecting
the expenditure of approximately $55,000,000 annually; negotiates wage rates
with journeyman craftsmen as provided by the Kiess Act and fixes the rates of
pay for all other employees. In addition, the Public Printer is required to adopt
and employ such measures as, in his discretion, may be deemed necessary to remedy
any neglect, delay, duplication, or waste in the public printing and binding and
the distribution and sale of Government publications and documents.
Size of organization:
Number of employees, 7,000.
Estimated annual expenditures for fiscal year 1949, $55,000,000.
Position title: Deputy Public Printer. Section of bill: 5 (a).
Present salary: $10,330.17 Date salag~ry established: May 29, 1928, by Public
Law 619 of Seventieth Congress (45 Stat. 1006, 44 U. S. Code 39A).
Proposed salary: $15,000.
Incumbent: Philip L. Cole. State: Maryland.
Responsibilities: In compliance with statutory requirements, acts as Public
Printer in the absence of the latter. Responsible for over-all administration of
plant production; reviews and passes upon recommendations of Production Man-
ager on all matters affecting policy, techniques, equipment, and personnel of
production divisions; develops and recommends to the Public Printer major policy
affecting production; serves as chairman of Permanent Board of Inspection of
Paper, etc., Board of Inspection-binding materials, board of condemnation,
committee on remelting plates, committee on deferment, employee suggestion
committee, and committee on certification of awards.
In addition, develops policy affecting production and administration through
the medium of direct contact with line and staff officials and conferences with
representatives of the industry; and is responsible for improving methods and
operations and effecting economics therein, through development and placement
of personnel.
Size of organization:
Number of employees, 7,000.
Estimated annual expenditures for fiscal year 1949, $55,000,000.
Position title: Administrator, Housing and Home Figance Agency. Section of
bill: 3 (a).
Present salary: $16,500. Date salary established: August 10, 1948, by Public
h
L
E
aw 901 of
ig
tieth Congress.
Proposed salary: $18,000.
Incumbent: Raymond M. Foley. State: Michigan.
Responsibilities: The Administrator is responsible for general supervision and
coordination of the functions of the constituent agencies (Home Loan Bank Board
including Federal Savings & Loan Insurance Corporation, and Home Owners;
Loan Corporation, the .Federal Housing Administration, and the Public Housing
Administration); supervises and directs management and disposition of war and
emergency housing; supervises a program of research in connection with stand-
ardized building codes and modular coordination;- serves as chairman of the
National Housing Council. He serves as the Government's principal housing
official, and reports to and advises the President and the Congress with respect
to housing matters. Actual program operations are carried out by the Commis-
sioners of the Federal Housing Administration, and the Public Housing Admin-
istration, and the Chairman and Board members of the Home Loan Bank Board.
The program of the Agency under the Administrator's general supervision and
coordination includes assistance to private home building through mortgage
insurance covering approximately one-third of current new construction, plus
insurance of mortgages financing sales of existing housing and notes to finance
repair and modernization; administration of outstanding mortgage and home loan
17 Increase to $8,225 per annum effective July 1, 1045, Public Law 100, 79th Cong. Increase to $10,000
per annum, Public Law 300, 79th Cong.. effective July 1, 1046. Additional $330 per annum, authorized by
Public Law 900, 80th Cong., effective July 11, 1948.
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52 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
insurance totaling more than $7,600,000,000; operation: of a national system of
Federal home loan banks and savings and loan associations; insurance of savings
in institutions of the savings and loan type with an outstanding insured liability
of some $8,000,000,000; administration of nearly 200,000 units of permanent low-
rent housing under the United States Housing Act program; management and
disposition of nearly 500,000 war and emergency housing units and other housing
in liquidation.
Size of organization:
Number of employees; 11,589 as of March 31, 1949.
Estimated annual expenditures for fiscal year 1949, $43,000,000.
Position title: The Housing Expediter. Section of bill: 5 (a),
Present salary: $12,000. Date salary established: May 22, 1946, by. Public Law
388 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbent: Tighe E. Woods. State: Illinois.
Responsibilities: The Housing Expediter is charged with the responsibility of
administering the Housing and Rent Act of 1947, as amended by the Housing and
Rent Act of 1949, in accordance with the intent of the Eighty-first Congress. The
purpose of this act, as indicated by Congress, is to provide an orderly process of
stabilizing rents for housing accornmodations*and to control unwarranted evictions
during the transitional period from war to peace. The act gives the Housing Ex-
pediter the authority to issue such regulations and orders as he may deem necessary
to carry out the provisions of the act, including (1) establishment and maintenance
the right to sue for treble damages in cases of over-ceiling violations, (4) authority
to decontrol areas where the demand for housing has been reasonably met, (5)
authority to recontrol areas whi~ah he has decontrolled after April 1, 1949, (6) ac-
cording preference to veterans of World War II in the sale or rent of new housing
accommodations.
The Housing Expediter has an obligation to both Congress and the people of the
United States to administer a Nation-wide rent-control program on housing which
will result in fair and impartial consideration to both tenants and landlords alike,
and to keep the public in general informed as to their rights and privileges under
the Housing and Rent Act. Ile is responsible further for investigating alleged
violations of the act and bringing about proper legal proceedings in enforcing the
regulations and orders issued thereunder.
Size of organization :
Number of employees, 4,836 (expected to increase by 1,500).
Estimated annual expenditures for fiscal year 1949, $22,972,000.
Position title: Member, Indian Claims Commission. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: August 13, 1946, by Public
Law No. 726 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbents: Edgar E. Witt, Chief Commissioner, Texas; Louis J. O'Marr,
Associate Commissioner, Wyoming; William M. Holt, Associate Commissioner,
Nebraska.
Responsibilities: As a member of the Indian Claims. Commission he has the
responsibility, in conjunction with the two other Commissioners, to hear and.
adjudicate all claims presented by tribes, bands, and identifiable groups of American
Indians against the United States, accruing prior to August 13, 1946. His duties
are judicial in character and correspond to the duties and responsibilities of a
judge of the Court of Claims. He is barred by the act creating the Commission
from engaging in any other business, vocation, or employment during his term.
of office.
Besides the hearings in such cases the Commission must make findings of fact,
conclusions of law, and prepare opinions or statements of the reasons for its
findings and conclusions in each case. Such findings, conclusions, and opinions
are prepared by the Commissioner to whom the cases may be assigned for this
purpose. The claims over which the Commission has jurisdiction are numerous
and involve many millions of dollars; and, under the act creating the Commission,
they must be finally determined within 10 years after April 10, 1947, at which
time the existence of the Commission terminates, unless terminated by an earlier-
completion of its work.
Size of organization:
Number of employees, 11.
Estimated annual expenditures for fiscal year 1949, $82,500.
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Position title: Secretary of. the Interior. Section of bill: 1.
Present salary: $15,000. Date salary established: March 4, 1925, by Public Law
624 of Sixty-eighth Congress.
Proposed salary: $25,000.
Incumbent: Julius A. Krug. State: Wisconsin.
Responsibilities: The Secretary of the Interior is the head of the Department
and is charged with the supervision and direction of the functions performed and
activities carried on by the offices and employees throughout the Department.
The Department is responsible for the management, conservation, and develop-
ment of the natural resources of the United States. These resources include the
public lands and the Federal range, water, and power resources, oil and gas and
other mineral resources, certain forest resources, fish and wildlife resources, and
the national park system. In addition, the Department has specialized responsi-
bilities to the Indians and to the Territories and island possessions of the United
States.
The jurisdiction of the Secretary of the Interior covers the following principal
bureaus and offices: Office of the Secretary, Bureau of Land Management, Bureau
of Indian Affairs, Geological Survey, Bureau of Reclamation, Bureau of Mines,
National Park Service, Fish and Wildlife Service, Bonneville Power Administra-
tion, Southwestern Power Administration, Puerto Rico Reconstruction Adminis-
, e tration, Oil and Gas Division, Board on Geographic Names, Division of Territories
and Island Possessions, Division. of Power, Office of Land Utilization, Office of the
Solicitor, Division of Information, Division of Budget and Administrative
Management, Division of Administrative Services, Division of Personnel Super-
vision and Management.
Size of organization:
Number of employees, paid, 49,958; uncompensated, 2,093; total, 52,051.
Estimated annual expenditures for fiscal year 1949, $537,638,504.
Position title: Under Secretary of the Interior. Section of bill: 2 (a).
Present salary: $10,330. Date salary established: May 9, 1935, by Public Law
53 of Seventy-fourth Congress.
Proposed salary: $20,000.
Incumbent: Oscar L. Chapman. State: Colorado.
Responsibilities: The Under Secretary of the Interior is the ranking adminis-
trative official of the Department under the Secretary of the Interior. He shares
with the Secretary direct supervision of the following bureaus and offices: Office
of the Solicitor, Program Staff, Oil and Gas Division, Office of Land Utilization,
Office of Information, Division of Power (Bonneville Power Administration,
Southwestern Power Administration, power activities of other bureaus), Division
of Personnel Supervision and Management, Division of Budget and Administra-
tive Management, Division of Administrative Services, Division of Territories
and Island Possessions, and Division of Geography.
The Under Secretary performs such other duties as are prescribed by the
Secretary, and is authorized to exercise the powers of the Secretary with respect
to matters which come before him.
Size of organization:
Number of employees, 7.
Estimated annual expenditures for fiscal year 1949, $37,272.
Position title: Assistant Secretary of the Interior. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: February 29, 1944, by Public
Law 241 of Seventy-eighth Congress.
Proposed salary: $15,000.
Incumbent: C. Girard Davidson. State: Oregon.
Responsibilities: The Assistant Secretary of the Interior is one of the chief
administrative officials of the Department under the Secretary of the Interior.
The following bureaus are assigned for supervisory purposes: Bureau of Land
Management, Bureau of Mines, Geological Survey, National Park Service.
In addition, this Assistant Secretary's assignment includes all matters concern-
ing the Pacific Northwest. In this connection he is charged with the respon-
sibility of formulating a departmental program and maintaining a continuing
supervision over the departmental and bureau programs and activities involved
in the Pacific Northwest area.
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The Assistant Secretary performs such other duties as are proscribed by the
Secretary, and is authorized to exercise the powers of the Secretary with respect
to matters which come before him.
Size of organization:
Number of employees, 6.
Estimated annual expenditures for fiscal year 1949, $33,274.
Position title: Assistant Secretary of the Interior. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: February 29, 1944, by Public
Law 241 of Seventy-eighth Congress.
Proposed salary: $15,000.
Incumbent: William E. Warne. State: California.
Responsibilities: The Assistant Secretary of the Interior is one of the chief
administrative officials of the Department under the Secretary of the Interior.
The Department is responsible for the management, conservation, and develop-
ment of the natural resources of the United States.
The following bureaus are assigned for supervisory purposes: Bureau of Recla-
mation, Bureau of Indian Affairs, Fish and Wildlife Service.
Activities of these bureaus include water and power resources, fish and wildlife
resources, and the particular responsibility to the Indians.
In addition, this Assistant Secretary's assignment includes all matters concern-
ing the Territory of Alaska. In this connection he is charged with the responsi-
bility of formulating a department program and maintaining a continuing super-
vision over the departmental and bureau programs and activities involved in the
Territory of Alaska.
The Assistant?Secretary performs such other duties as are prescribed by the
Secretary and is authorized to exercise the powers of the Secretary with respect
to matters which come before him.
Size of organization:
Number of employees, 7.
Estimated annual expenditures for fiscal year 1949, $33,677.
Position title: Governor of Alaska. Section of bill: 5 (a).
Present salary: $10,330.18 Date salary established: March 4, 1931, by Public
Law 863 of Seventy-first Congress.
Proposed salary: $15,000.
Incumbent: Ernest Gruening. State: Alaska.
Responsibilities: The Governor of Alaska has practically all the responsibilities
and duties of the governor of a State plus some important functions not performed
by a State governor. He is the chief executive. He recommends, approves, or
vetoes legislation; supervises the work of Territorial agencies; and represents the
President and the Federal Government in their relations with the Territory.
With the Delegate he is the.spokesman for the Territory in its relations with
Congress and the American public. Because of his position, public and social
demands on his time and purse are very heavy.
Size of organization:
Number of employees, 7.
Estimated annual expenditures for fiscal year 1949, $67,357.
Position title: Governor of Hawaii. Section of bill: 5 (a).
Present salary: $10,330.18 Date salary established: July 9, 1921, by Public Law 34
of Sixty-seventh Congress.
Proposed salary: $15,000.
Incumbent: Ingram M. Stainback. State: Hawaii.
Responsibilities: The Governor of Hawaii has practically all the responsibilities
and duties of the governor of a State plus some important functions not per-
formed by a State governor. Ile is the chief executive. He recommends,
approves, or vetoes legislation; supervises the work of Territorial agencies; and
represents the President and the Federal Government in their relations with the
Territory. With the Delegate he is the spokesman for the Territory in its rela-
tions with Congress and the American public. Because of his position, public
and social demands on his time and purse are very heavy.
Size of organization:
Number of employees, 4.
Estimated annual expenditures for fiscal year 1949, $26,431.
1e Salary established at $10,000 per annum; $330 added in accordance yvith Employees Pay Act of July
1948.
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Position title: Governor of Virgin Islands. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: Under provisions of Classi-
fication Act.
Proposed salary: $15,000.
Incumbent: William II. IIastie. State: Virgin Islands.
Responsibilities: The Governor of the Virgin Islands has practically all the
responsibilities and duties of the governor of a State plus some important functions
not performed by a State governor. He is the chief executive. He recommends,
approves, or vetoes legislation; supervises the work of the municipal governments;
and represents the President and the Federal Government in their relations with
the islands. He is the spokesman for the islands in their relations with Congress
and the American public. Because of his position, public and social demands on
his time and purse are very heavy.
Size of organization:
Number of employees, 49.
Estimated annual expenditures for fiscal year 1949, $225,214.
Position title: Commissioner of Reclamation. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: May 26, 1926, by Public Law
297 of Sixty-ninth Congress.
Proposed salary: $15,000.
Incumbent: Michael W. Straus. State: Illinois.
Responsibilities: The Commissioner of Reclamation is responsible for the ad-
ministration of the reclamation law (original act and all acts amendatory thereof
and supplementary thereto) and the Commissioner',s administration is subject to
the supervision and direction of the Secretary of the Interior. This administra-
tion of the reclamation acts includes responsibility for everything provided for by
approximately 1,000 pages of reclamation law covering the 17 Western States,
including essential investigations, economic studies, physical studies, negotiations,
contracting for delivery of water and repayment therefor and construction, and
the same for power, as well as the administration of funds, reporting on all activi-
ties to the Congress, settlement and development of project areas by irrigation,
and production and disposition of electrical energy and, also, all executive actions
in setting up, developing, and administering a 17-State major planning, economic
development, and construction program.
NOTE.-The statutory office of Commissioner of Reclamation, as well as the
salary, was established by the one-paragraph act of May 26, 1926, which has never
been amended by the Congress. On that date the Bureau of Reclamation was
carrying on a program involving the expenditure of $8,000,000 to $10,000,000 a
year. At the present time, annual reclamation expenditures appear to be approach-
ing the $400,000,000 velocity and the completed works which are also a responsibil-
ity of the Commissioner of Reclamation represent a Federal investment of about
a billion and a half dollars. The program since the war has been accelerated by
the Congress. As demands for water and power are not now being met and
probably will not be met within the immediate foreseeable future, the program
may continue to expand until the supply of water is exhausted. It is estimated
that the supply of available water in the West is about half developed under
present economic and legal standards.
Size of organization:
Number of employees, 13,438.
Estimated annual expenditures for fiscal year 1949, $284,723,295.
Position title: Member, Interstate Commerce Commission. Section of bill: 4.
Present salary: $12,000. Date salary established: February 28, 1920, by Public
Law 152 of Sixty-sixth Congress.
Proposed salary: $16,000.
Incumbents: Charles D. Mahaffie, chairman, District of Columbia; Clyde B.
Aitchison, Oregon; Walter M. W. Splawn, Texas; Carroll Miller, Pennsylvania;
William E. Lee, Idaho- J. Baden Alldredge, Alabama; Richard F. Mitchell,
Iowa; Hugh W. Cross, Illinois; John L. Rogers, Tennessee; William J. Patter-
son, North Dakota.
Responsibilities: The Commissioners are authorized and required: primarily to
execute and enforce the provisions of title 49, of the United States Code as it re-
lates to the transportation of passengers or property in interstate and foreign com-
merce, by railroads, motor carriers, water carriers, express, sleeping cars, pipe
lines (other than for water or gas, natural or artificial) and freight forwarders; is
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authorized and required to determine the lawfulness of interstate, and in some
cases, State rates, rules and regulations of such carriers; to pass upon applications
for certificates of convenience and necessity, permits or licenses to operate as
common carriers, contract carriers, or brokers by motor vehicle in interstate or
foreign commerce; to pass upon applications for certificates of convenience and
necessity or permit to operate as common carriers by water or contract carriers
by water; to pass upon applications for permits to operate as freight forwarders;
to ascertain and report the value of all property owned or used by every common
carrier by rail or pipe line, and to keep such valuations up to date; to authorize
security issues; to act upon applications for convenience and necessity to propose
construction of a new line of railroad or contemplated abandonment or operation
with or without abandonment of the track; to require installation of block signal
systems and other safety devices, and to pass on changes therein; to administer
the car service sections of the act and the emergency powers relating thereto;
all in keeping with national transportation policy, United States Code, title 49.
Also to deal with matters arising under section 77 of the Bankruptcy Act; to make
regulations for the safe transportation, within the United States, of explosives
and other dangerous articles under sections 831-835 of title 18, United States
Code, and part II of the Interstate Commerce Act; to administer the Safety Ap-
pliance Acts, and the Locomotive Inspection Act, United States Code, title 45;
Railway Mail Pay Acts, standard time, and various other miscellaneous and re-
lated acts.
The significance of the program outlined above is to carry out the broad trans-
portation policy declared by Congress, United States Code, title 49, note before
section 1. In carrying out that policy, the Commission is authorized to divide
its members into divisions of not less than three members, as necessary. Certain
of the matters have been initially assigned to each of such divisions, subject to
review by the entire Commission.
Commissioner Mahaflie is Chairman and is assigned to Divisions 1 and 4, and
has direct supervision over the Bureaus of Administration, Finance, and Ac-
counts, and Cost Finding. Member, committees on legislation, and rules and
reports. Commissioner Aitchison is assigned to Division 2, generally, and
Division 1 for certain purposes, and has direct supervision over the Bureau of
Formal Cases, and Sections of Indices, and the Commission's library. Chair-
man, committee on rules and reports. Commissioner Splawn is assigned to
Division 2, and has direct supervision over the Bureau of Transport Economics
and Statistics. Chairman, committee on legislation. ' Commissioner Miller is
assigned to Divisions 3 and 4, and has direct supervision over the Bureau of
Valuation. Commissioner Lee is assigned to Divisions 1 and 5, and has direct
supervision over the Bureaus of Informal Cases and Law. Commissioner All-
dredge is assigned to Division 2 and has direct supervision over the Bureau of
Traffic. Member, committee on rules and reports. Commissioner Mitchell is
assigned to Divisions 1 and 4, and has direct supervision over the Bureau of
Inquiry. Commissioner Cross is assigned to Division 2 for certain purposes
and Division 3, and has direct supervision over the Bureau of Water Carriers
and Freight Forwarders. Commissioner Rogers is assigned to Divisions 2 and
3 for certain purposes, and Division 5, and has direct supervision over the
Bureau of Motor Carriers. Member, committee on legislation. Commissioner
Patterson is assigned to Divisions 3 and 5, and has direct supervision over the
Bureaus of Safety and Locomotive Inspection.
Size of organization:
Number of employees, 2,184.
Estimated annual expenditures for fiscal year 1949, $11,300,317.
Position title: Member, Interstate Commerce Commission. Section of bill: 4.
Present salary: $12,000. Date salary established: February 28, 1920, by Public
Law 152 of Sixty-sixth Congress.
Proposed salary: $16,000.
Incumbent: J. Monroe Johnson. State: South Carolina.
Responsibilities: With the 10 other Commissioners composing the Commission
executes and enforces the provisions of the Interstate Commerce Act and related
acts, and more particularly, performs the duties allocated to Division 3, of which
lie is a member. That division hears and decides cases dealing with railroad-
operating matters, safety and car service, including the hearing of rate cases
alternating in monthly rotation with Division 2, involving rates, fares and
charges of railroads, motor carriers, water carriers, and freight forwarders. The
division administers the sections of the act relating to pooling of traffic, joint use
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
of terminals, physical connection between rail lines and docks, routing of traffic,
reasonable allowances to shippers, compulsory construction of new railroads, or
additional facilities, transportation of explosives and other dangerous articles
and formal complaints handled under the shortened procedure. It also admin-
isters the car-service sections of the act and the emergency powers of the Com-
mission relating thereto, prescribed by sections 1 (10) to (17), inclusive. The
Commissioner likewise sits as a member of the entire Commission in hearing and
deciding any case which goes to the entire Commission for final decision. Such
cases include rate cases of national scope ar,d magnitude involving many hundreds
of millions of dollars, all of the foregoing with the purpose of carrying out the
national transportation policy of the Congress.
The Commission's Bureau of Service which deals with car service, as defined
in the act, through. its Washington office and field force, located at important
railroad terminals throughout the United States, reports direct to this Commis-
sioner. The car service provisions affect commerce and industry and the efficient
and economical operation of all of the railroads in the Nation. Ile likewise has
assigned to him independently uncontested matters relating to the transportation
of explosives and other dangerous articles. Because of this Commissioner's
duties as Director of the Office of Defense Transportation since April 1944, and
which will not be fully discontinued until June 30, 1949, his duties have been
voted with the entire Commission in cases involving tic votes and in cases of
national scope.
Size of organization:
Number of employees, 2,184.
Estimated annual expenditures for fiscal year 1949, $11,300,317.
Position title: The Attorney General. Section of bill: 1. Present salary: $15,000.
Date salary established: March 4, 1925, by Public Law 624 of Sixty-eighth
Congress. Proposed salary: $25,000.
Incumbent: Tom C. Clark. State: Texas.
Responsibilities: The Attorney General, a member of the President's Cabinet,
is the head of the Department of Justice and the chief law officer of the Federal
Government. Ile is responsible for representing the United States in legal matters
generally and advises the President and the heads of executive departments on
legal questions. Ile appears in person in the Supreme Court of the United States
in cases of exceptional gravity and importance and directs the work of the Depart-
ment of Justice through tl,c heads of the offices, divisions, bureaus, and boards
of which the Department consists, including the 96 United States district attor-
neys and the 96 marshals in the various judicial districts of the United States.
The work of the Department of Justice, which is under the administration of
the Attorney General, consists of the following: The Office of the Solicitor
General, the Office of the Assistant to the Attorney General, the Tax Division,
the Claims Division, the Lands Division, the Antitrust Division, the Criminal
Division, the Office of Alien Property, the Customs Division, the Administrative
Division, the Office of the Assistant Solicitor General, the Office of Pardon
Attorney, the Federal Bureau of Investigation, the Immigration and Naturali-
zation Service, the Bureau of Prisons, the Board of Parole, the Board of Immi-
gration Appeals.
Size of organization:
Number of employees, 26,773.
Estimated annual expenditures for fiscal year 1949, $131,081,172.
Position title: Solicitor General, Department of Justice. Section of bill: 2 (a).
Present salary: .$10,330. Date salary established: July 11, 1948, by Public
Law 900 of Eightieth Congress.
Proposed salary: $20,000.
Incumbent: Philip B. Perlman. State: Maryland.
Responsibilities: The Solicitor General has special charge of the business of and
appears for and represents the Government in the Supreme Court. When
requested by the Attorney General he may conduct and argue any case in which
the United States is interested, in any court of the United States, or may attend
to the interests of the Government in any State court or elsewhere, conferring
with and directing the activities of the Federal law officers throughout the country
when the case so requires. No appeal is taken by the United States to any
appellate court without the Solicitor General's approval. Ile becomes Acting
Attorney General in the absence or inability of the Attorney General to perform
his duties.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
During the last (1947) term of the Supreme Court, the Government argued in
88 cases, which was 57 percent of all the cases argued. .In all of the Government
cases the Solicitor General had general supervision of the preparation of the
Government's briefs, and approved them before' filing. The Solicitor General
and his staff personally argued a large number of the cases. The Government
was successful in 51 out of 69 cases decided, or in 74 percent. During the term
the Supreme Court granted 19 petitions for writs of certiorari filed by the Solicitor
General and denied 10. During the term of the petitions for writs of certiorari
filed in the Supreme Court against the Government 22 were granted and 283
were denied. In each of these cases the Solicitor General and his staff had super-
vision over the preparation and filing of briefs.'0 During the last fiscal year, the
Solicitor General personally passed upon some 986 matters involving recom-
mendations from different divisions of the Department of Justice, and various
departments and agencies of the Government. The Solicitor General authorized
46 applications for writs of certiorari, decided not to file applications in 266 cases,
authorized appeals in 226 cases, and decided not to appeal in 361 cases, in addition
to authorizing various actions in 87 other instances.
During the last (1947) term of the Supreme Court the Solicitor General's Office
was responsible for the conduct of more than 40 percent of all the business of
the Supreme Court, in addition to deciding as to appeals and reviews to and from
the several circuit courts of appeals throughout the country.
Size of organization:
Number of employees, 22.
Estimated annual expenditures for fiscal year 1949, $127,670.
Position title: The assistant to the Attorney General. Section of bill: 2 (a).
Present salary: $10,330. Date salary established: July: 11, 1948, 'by Public Law
900 of Eightieth Congress.
Proposed salary: $20,000.
Incumbent: Peyton Ford. State: Oklahoma,
Responsibilities: The assistant to the Attorney General, under the Attorney
General, has supervision over all major units of organization of the Department,
and over United States attorneys and marshals. He iS also chief liaison officer
of the Department of Justice with the Congress and With other governmental
departments and agencies.
The assistant to the Attorney General has direction of all personnel and general
administration of the Department and coordinates the' functions of the various
divisions, offices, and bureaus of the Department. He ;has charge of all reports
and recommendations to the Congress with respect to pending legislation in
response to request of congressional committees and other agencies, and prepares
recommendations as to the approval of enrolled bills. During the absence or
inability of both the Attorney General and Solicitor General he becomes Acting
Attorney General.
As general manager of the Department of Justice the assistant to the Attorney
General exercises final direction of all appointments, promotions, and other per-
sonnel changes. In this capacity, he also coordinates for the Attorney General
the activities of the legal divisions of the Department heretofore enumerated, as
well as the 96 United States attorneys and 96 United States marshals, with their
staffs. Under the direction of the Attorney General, he supervises the work of the
Department in connection with the recommendations made to the President as to
the appointment of judges, United States attorneys, United States marshals, and
other presidential appointees relating to the legal work of the Government.
As chief liaison officer with respect to legislation, he coordinates the reports and
recommendations of the Department with the work of congressional committees,
as well as the work of the Bureau of the Budget, and the other agencies of the
Government.
Size of organization:
Number of employees, 42.
Estimated annual expenditures for fiscal year 1949, $181,930.
19 The records indicate 66 of the Government's petitions were granted and only 7 percent of those against
the Government.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Position title: Assistant Solicitor General. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 11, 1948, by Public Law
900.of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: George T. Washington. State: New York.
Responsibilities: The Assistant Solicitor General, as the Attorney General's
chief adviser on matters of law, holds one of the most responsible and difficult
posts in the Department of Justice. Ile is appointed by the President with the
advice and consent of the Senate, and by law receives the same compensation as the
Assistant Attorneys General (5 U. S. C. 293a). The Assistant Solicitor General
reports directly to the Attorney General. His staff of attorneys constitutes a
separate office in the Department, distinct from that of the Solicitor General and
having entirely different functions.
The Assistant Solicitor General prepares for the Attorney General formal legal
opinions to the President, the heads of the executive departments, and the
Veterans' Administration; lie also gives informal opinions and legal advice on a
continuous basis to the various agencies and instrumentalities of the executive
branch, as well as advising the other divisions and offices of the Department of
Justice on any questions of law requiring special consideration. The scope of the
opinions rendered is as broad as the legal problems which arise in the administra-
tion of the executive branch of the Government, and usually relate to matters of
special importance and difficulty.
The Assistant Solicitor General also reviews as to form and legality, and makes
necessary revisions of, all proposed Executive orders and proclamations of the
President prior to their final submission to the President; all proposed regulations
which require the approval of the President or of the Attorney General; all land
orders of the Secretary of the Interior; and all instruments making disposition of
land under the Federal Airport Act. Ile reports on pending legislation, partic-
ularly with regard to constitutionality and effect on governmental structure, and
assists in the drafting of important legislation sponsored by the President or the
Attorney General. Ile also supervises all legal work connected with the receipt
of gifts and bequests by the Government of the United States. The Assistant
Solicitor General also handles nearly all international matters in which the
Department of Justice is interested, and is consulted by the Department of State
on a day-to-day basis concerning questions of international and domestic law
arising in connection with the United Nations and other international organiza-
tions. The Assistant Solicitor General is by designation the legal adviser to the
United States delegation to the Economic and Social Council of the United Na-
tions. Ile also represents Federal agencies in the coordination of Federal-State
relations in the field of law, to the end that matters which may best be disposed of
by State action are handled by the States rather than by the Federal Government.
Aside from matters on general assignment to him, the Assistant Solicitor General
handles numerous important miscellaneous special assignments made by the
Attorney General involving the many complicated and diverse legal and policy
problems with which that officer is faced.
The Assistant Solicitor General must personally review each matter presented
to his office, and must assume full responsibility for each decision made. He must
be familiar with the Federal statutes, old and new, as well as with the regulations
and orders of the departments and agencies. He must be ready to advise with
expedition and accuracy on questions of importance arising in every branch of the
Government, and must endeavor to establish unformity in legal policy and
administrative standards throughout the executive branch. The work is semi-
judicial in nature and involves a high degree of responsibility. The rulings made
by the Assistant Solicitor General are regarded as final by the departments and
agencies and by the other attorneys and officials of the Department of Justice,
subject, of course, to appeal to the Attorney General. No instance is known in
which a ruling of the Assistant Solicitor General has been reversed by the Attorney
General or overturned by the courts in litigation.
In addition, the Assistant Solicitor General is frequently called upon by the
Solicitor General to prepare and argue cases in the Supreme Court. In the ab-
sence of the Solicitor General, or in the case of a vacancy in that office, the Assist-
ant Solicitor General also acts as the Solicitor General of the United States.
Size of organization:
Number of employees, 29.
Estimated annual expenditures for fiscal year 1949, $162,370.
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Position title: Assistant Attorney General, Tax Division. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Theron L. Caudle. State: North Carolina.
Responsibilities: Heads the Tax Division and has charge of the prosecution and
defense in all courts of civil suits arising out of the internal revenue laws including
appellate proceedings in connection therewith, briefs and arguments in the
Federal circuit courts of appeals of petitions to review decisions of The Tax Court
of the United States and appellate proceedings in the Supreme Court of the United
States upon assignment by and under the supervision of the Solicitor General. of
the United States. Also has charge of criminal prosecutions of violations of the
internal revenue laws except criminal prosecutions arising out of the liquor tax
laws; the enforcement of tax liens, the conduct of mandamus, injunctions, and
other specific writs and all general matters relating to taxes including jurisdiction
over questions of intergovernmental tax immunity. Also has charge of special
assignments by the Attorney General.
The Assistant Attorney General supervises a staff of 162 employees including
93 attorneys, in the discharge of the functions of the Tax Division, and is finally
responsible for all of the work done by them in court. In fact, everything that is
done to further the progress of litigation of either civil. or criminal tax cases, de-
volves upon the Assistant Attorney General. All briefs, pleadings, stipulations,
and correspondence are signed in his name. All of the decisions affecting civil
compromises are approved by him personally and he assumes the responsibility
for such action.
All criminal tax cases wherein it is recommended that prosecution be had must
be personally passed upon by him and it devolves uporr him to guide and to super-
vise, as well as assume the full responsibility for any decision and recommendation
of, his staff as to whether prosecutions are to be made, depending upon the facts
in a given case. The taxpayer and his attorneys have the right to appeal to the
Assistant Attorney General for a final hearing as if it were the last court before
grand jury consideration. Such conferences go on all the time.
The Tax Division is a litigative division. It has no administrative responsi-
bilities; it confines itself to the actual preparation and trial of all tax litigation,
whether in a trial court or in an appellate court. It is the responsibility of the
Assistant Attorney General personally to see that sufficient funds are provided
annually to carry on the work of the Tax Division from year to year and he must
justify his estimates before the Bureau of the Budget and committees of Congress..
The Tax Division annually produces or saves approximately $24,000,000 per year
in revenue and during the last 5 years it has put into the Treasury approximately
$120,000,000.
Size of organization:
Number of employees, 162.
Estimated annual expenditures for fiscal year 1949, $910,000.
Position title: Assistant Attorney General, Criminal Division. Section of bill:
5 (a).
Present salary: $10,305. Date salary established: July 11, .1948. By Public
Law 900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Alexander M. Campbell. State: Indiana.
Responsibilities: The Assistant Attorney General of the United States in charge
of the Criminal Division of the Department of Justice has supervision of all of the
Federal criminal cases in the United States and its possessions. The work entails
constant supervision, direction, and conferring with the United States attorneys
in the many Federal judicial districts regarding said criminal matters, including
FBI investigations, grand jury investigations, an3 presentations and supervision
of the trial of said criminal cases in court. -
The office of the Criminal Division ccordinates on a national plane all matters
of policy outlined, designated, and directed by the Attorney General with respect
to criminal prosecutions and investigations.
An example of such coordinating activity is the various policies with respect to
the administration from a criminal legal viewpoint of the selective service and
training act, and particularly with respect to the many and varied types of consci-
entious objectors and the treatment of their cases by United States attorneys.
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INCREASING COMPEN A )'
It entails the organization on a national plane of programs for the prosecution
of certain types of cases, which include export-control cases (meaning the illegal
export of arms, munitions, airplanes, and implements of war with respect to
attempted aid to foreign countries in an illegal manner).
The Criminal Division has vigorously and actively and directly supervised
and coordinated grand-jury investigations and prosecutions by United States
attorneys in the now all-important and vital field of subversive activities. The
work along these lines includes the direction of investigations, grand-jury pres-
entations, and prosecutions in Federal court of cases involving former Govern-
ment employees who are members of the Communist Party.
The head of the Criminal Division is supervising grand-jury presentations and
prosecutions of such Communist cases in New York, Pennsylvania, District of
Columbia, Louisiana, Ohio, Illinois, Colorado, California, and elsewhere through-
out the country.
The Criminal Division supervises prosecution of the 12 top Communists in
New York and is now correlating similar investigations which are alleged violations
of the Smith Act in other parts of the United States.
Cases involving espionage, such as the instant Judith Coplon and Gubitchev
espionage case in New York and Washington, are under the immediate supervision
of the Assistant Attorney General in charge of the Criminal Division.
The treason cases which have been investigated and tried and are being
investigated in Massachusetts, New York, District of Columbia, and California,
involving such defendants as Mildred Gillars, alias Axis Sally, Iva Ikoku Toguri
D'Aquino, alias Tokyo Rose, Herbert John Burgman, Douglas Chandler, and
Robert Best, and others. In the process of investigation and grand-jury pre-
sentation of these cases, the work comes under the direct supervision of the
Assistant Attorney General.
The Criminal Division supervises such grand-jury investigations as the present
espionage and subversive activity investigating through the grand jury sitting
in the Federal court in New York City, which returned an indictment against
Alger Hiss and which is currently investigating the Hiss-Chambers-Bentley, etc.,
espionage and alleged subversive evidence.
The Criminal Division of the Department of Justice supervises currently
between 60,000 and 70,000 criminal cases in the United States and its possessions.
Size of organization:
Number of employees: 158.
Estimated annual expenditures for fiscal year 1949: $785,000.
Position title: Assistant Attorney General, Claims Division. Section of bill:
5 (a).
Present salary: $10,305. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: H. Graham Morison. State: Virginia.
Responsibilities: Has charge of all civil suits and claims for and against the
Government or its officers not otherwise specially assigned, patent and copyright
cases, cases arising out of war transactions including civil war frauds matters,
civil bankruptcy matters, civil proceedings, under the National Bank Act, ad-
miralty and shipping matters, veterans' claims and litigation including all suits
under national service life insurance contracts, defending all suits under the Fed-
eral Tort Claims Act and all contract termination and renegotiation cases. Has
charge of civil matters arising out of military control measures over the civil
population of the United States and its Territorial possessions, habeas corpus
matters and other civil litigation relating to alien enemies. Also defends all suits
against the Government in the Court of Claims and has charge of preparation of
briefs and arguments in the Supreme Court on assignment by the Solicitor Gen-
eral, and of special assignments by the Attorney General.
The Assistant Attorney General, in carrying out his responsibility as head of the
Division, must consider and act upon all offers in compromise generally not in
excess of $50,000 in the name of the Attorney General. He must make decisions
prior to and during the conduct of matters in litigation as to the legal position of
the Government,, both on the pleadings and oral argument. In important cases
of national interest lie is required to personally appear in court and litigate on
behalf of the United States both in the Court of Claims, the district Federal
courts, the appellate courts, and Supreme Court of the United States. The
Assistant Attorney General, in addition, must handle in the first instance the
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administrative problems of the Division, including the efficiency of his staff, the
procurement of qualified personnel, and the expenditure of the funds appropriated
to the Division by the Congress.
Size of organization:
Number of employees: 326.
Estimated annual expenditures for fiscal year 1940: $1,671,000.
Position title: Assistant Attorney General; Director, Office of Alien Property
Section of bill: 5 (a).
Present salary: $10,000. Date salary established July 1, 1948, by Public Law
597 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: David L. Bazelon. State: Illinois.
Responsibilities: As Assistant Attorney General and Director of the Office of
Alien Property, exercises the functions of the Attorney General in controlling
foreign-owned property and in vesting enemy property in the United States.
Once vested, the enemy property is held, used, administered, liquidated sold,
or otherwise dealt with in the interest of and for the benefit of the United Mates.
To date, vested business enterprises and other properties are valued at approxi-
mately $482,000,000 of which $348,900,000 represents the Governments net
equity interest. Included in that amount, 88 business enterprises are being super-
vised with assets exceeding $224,000,000, employing approximately 15,000
persons, performing a wide variety of activities, manufacturing and selling
dyestuff, film, chemicals, pharmaceuticals, machinery, and petroleum products.
Also over 45,000 patents, 500,000 copyrights, 500 trademarks and interests in over
800 patent contracts have been vested. The Director supervises the administra-
tion of all of these activities and establishes Government policies with respect to
liquidation and disposal of these properties. In the patent field, the Office has
adopted the policy of making the vested patents available to American citizens
on a nonexclusive, royalty-free basis, because it is believed that the public interest
is best served by the retention and control by the Government of the monopoly
privileges involved. In supervising the business enterprises vested, the operating
and policy questions which affect the public interest are determined by the
]director, Office of Alien Property.
The Office directs the foreign funds program under which foreign property was
blocked before and during the war to protect assets of occupied countries so as to
assure their availability for postwar reconstruction of those countries. As a part
of the Government's program for liquidation of the over-all wartime controls,
properties are presently being unblocked under arrangements assisting the
Marshall plan countries to secure the benefit of these assets for reconstruction.
Blocked property is estimated to be valued at $300,000,000.
The Director, Office of Alien Property, is also responsible for all litigation in
which property vested is concerned. The payment of debt claims, title claims,
and taxes out of vested property is authorized under specific statutory conditions.
Over 42,000 administrative claims have been filed either for the return of property
or asserting debts against the former enemy owners to be satisfied out of the
proceeds of that property.
Size of organization:
Number of employees, 851.
Estimated annual expenditures for fiscal year 1949, $4,300,000.
Position title: Assistant Attorney General, Customs Division. Section of bill:
5 (a).
Present salary: $10,305. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: David N. Edelstein. State: New York.
Responsibilities: Has charge of protecting the interests of the Government in
matters of reappraisement and classification of imported goods, and all litigation
incident thereto. Also has charge of briefs and arguments in the Supreme Court
on assignment by the Solicitor General, and of matters specially assigned to him
by the Attorney General.
The Assistant Attorney General in charge of this Division is a Presidential
appointee. He directs and supervises a staff of lawyers and clerks who are
technicians in a specialized field of law, namely customs litigation. He assumes
the responsibility of the staff carrying out their required duties under the law and
in protecting the interests of the United States. His is a great responsibility
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inasmuch as revenues running into hundreds of millions of dollars are involved
in these lawsuits and the operations of his office result in saving many millions
of dollars to the Treasury of the United States each year.
Size of organization:
Number of employees, 33.
Estimated annual expenditures for fiscal year 1949, $197,000.
Position title: Assistant Attorney General, Antitrust Division. Section of bill:
5 (a).
Present salary: $10,330. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Herbert A. Bergson. State: Massachusetts.
Responsibilities: The Assistant Attorney General for the Antitrust Division is
charged with the enforcement of the antitrust laws and 30 other kindred acts.
? In addition to the administrative direction of the Division, he is primarily re-
sponsible for making and carrying out all policies relative to effective enforce-
ment of these laws. As the Division head, he initiates and recommends to the
Attorney General the instituting of all investigations and the criminal and civil
cases resulting therefrom.
in the Washington office and the 12 field offices located throughout the country.
As of May 1, 1949, there were under his supervision 354 attorneys and economists
in addition to 292 nonprofessional, or a total of 646 employees. The Assistant
Attorney General assigns all investigations and cases to the Division's sections
and field offices. On May 1, 1949, there were 217 active antitrust investigations,
89 civil antitrust cases, and 33 criminal antitrust cases on the docket, exclusive
of numerous kindred law cases. The Assistant Attorney General defines the
scope of these investigations and determines the appropriate procedures to be
followed by the staff.
The Assistant Attorney General argues antitrust cases in the courts of appeal,
particularly if the case is of national importance. From time to time and at the
request of the Solicitor General he argues antitrust cases before the Supreme Court,
because of his familiarity with the law and facts and its significance in the national
economy.
The position the Assistant Attorney General occupies has a direct relation to
the national economy since the primary purpose of the antitrust laws is to protect
the free competitive enterprise system of this Nation from monopolies, combina-
tions, or conspiracies in restraint of trade or. commerce among the several States.
Antitrust enforcement is the only bulwark in the country today against con-
centration of economic power in this country, which constantly threatens the
continued existence of small business. The law is an expression of the people for
free enterprise which every individual gains from the enormous social advantages
due to the skill and initiative of their fellow man.
Size of organization:
Number of employees, 658.
Estimated annual expenditures for fiscal year 1949, $3,571,700.
Position title: Assistant Attorney General, Lands Division. Section of bill: 5 (a),
Present salary: $10,330. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: A. Devitt Vanech. State: Connecticut.
Responsibilities: The Assistant Attorney General in charge of the Lands Divi-
sion is responsible for and supervises the handling of litigation and legal matters
arising in connection with the acquisition of real property (by condemnation or
direct purchase) and the ownership, possession, or use of real property, including
the public domain, housing, and water rights. He also supervises and partici-
pates in the conduct of litigation relating to Indian affairs, including the protec-
tion of Indians in their rights and property, acts as counsel for the Government in
defense of claims filed in the Court of Claims by Indians under special jurisdic-
tional acts, and represents the Government in claims filed against the United
States before the Indian Claims Commission. He also is responsible for the
enforcement of statutes regulating the use of public domain, the national forests,
and other Federal lands, the interpretation and cancellation of land grants and
patents, trespasses and evictions, the recovery of rents and royalties, the adjudi-
cation of water rights and the interpretation of irrigation and reclamation laws,
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the defense of actions against Government officers and of actions against the
United States under the Tucker Act and the Tort Claims Act relating to. real
property, and the handling of litigation involving conservation of natural resources,
including oil, gas, and other minerals.
Litigation involving the above matters is extremely complicated and involves
very large amounts of money. Each year titles to properties valued at many
millions of dollars are acquired and claims amounting to over $5,000,000,000 are
now pending before the Indian Claims Commission. Condemnation proceedings
and other litigation are pending throughout the entire United States, its Terri-
tories and possessions. The handling of this great amount of legal work requires
the supervision of a: force of professional and clerical personnel (approximately
450 persons) in the field as well as at the seat of government, and the work is
chann.elized through four sections, each headed by a chief located at Washington.
In carrying out his responsibilities it is necessary for the Assistant Attorney
General to determine major questions of policy involving law, practice and
procedure, and the public welfare, and, in many instances, it is necessary for him
to prepare and present to the interested committees of Congress legislation
touching upon these matters. In addition, he personally acts upon and assumes
full responsibility for the acceptance or rejection of compromise offers within
certain limitations fixed by the Attorney General, and as to other such matters
he recommends acceptance or rejection to the Attorney General. He also pre-
pares memoranda and opinions of the Attorney General, upon the effect, legality,
and form of proposed executive orders and legislation involving matters within
the purview of the work of the division and upon questions as to which the legal
opinion of the Attorney General has been requested by the President or the head
of an executive department. In addition, he prepares. and argues cases before
the Supreme Court of the United States upon assignment of the Solicitor General
and appears before the courts of appeals in unusual or complex cases; he makes
recommendations to the Solicitor General for or against appeals and as to peti-
tions for certiorari to the Supreme Court.
Size of organization:
Number of employees, 438.
Estimated annual expenditures for fiscal year 1.949, $2,600,000.
Position title: Director, Federal Bureau of Investigation. Section of bill: 5 (a).
Present salary: $14,000. Date salary established: July 1, 1948, by Public Law
5)7 of Eightieth Congress.
Pro-cosed salary: $15,000.
Incumbent: J. Edgar Hoover. State: District of Columbia.
Responsibilities: I. How the Director administers the bureau in carrying out
its responsibilities: The Director personally has organized the FBI's seat-of-gov-
ernment offices into seven divisions with a chief of each division. Each division
in turn is organized into sections and subordinate units when necessary. The
Director is in personal contact with the chiefs of these divisions frequently and
regularly; gives close personal attention to the performances of each of these
divisions and passes on all matters of policy, all suggestions, all general procedural.
requirements and all programs of planning. Through regular and frequent con-
sultation with the division chiefs and at times their subordinates, through the
personal examination of the major items of production of each division., he is able
to keep in touch with the efficiency and economy of their operations and to make
changes, improvements, and modifications as circumstances require. He is
assisted in these duties by an associate director who reviews and makes recom-
mendations as to matters of.pblicy but even these recommendations are passed
on personally by the Director of the Federal Bureau of Investigation.
The field organization of the FBI consists of 51 territorial divisions with an
office located in each division. There is a special agent in charge of each office.
Matters of major importance are communicated directly to the Director and lie
is thus able to keep in touch with these matters of major importance and major
developments as they occur. He is able also to give personal direction to major
cases and procedures in the field, although naturally, due to the volume of work,
routine and the normal flow of work is first processed and supervised in the respec-
tive divisions responsible therefor. The Director, at least annually, is in personal
conference with each special agent in charge and with many of the special agents
from these various offices, and. he is thus able to identify their major problems, to
counsel, advise, and direct the programs and make modifications of procedure
being employed.
Through a system of inspections, carefully selected personnel of the most
experienced type are designated as inspectors and they conduct personal inspec
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 65
Lions both of the field offices and of the seat of government divisions and during
such inspections they are acting as personal representatives of the Director.
Their reports, in turn, are forwarded to the Director. The inspection of each of
these seat of government and field establishments embraces every phase of oper-
ations, including physical condition, maintenance, property, inventory, opera-
tions, administration, personnel, economy, training, planning, and general func-
tionings of these establishments. Through this relationship there is provided to
the director personally a second method of contact and supervision of the entire
operations of the Federal Bureau of Investigation.
Of course, within prescribed policies, the special agents in charge in the field
.and the seat of government division chiefs operate with considerable latitude.
Modifications of these policies, however, are first approved by the Director when
.exigencies require. Any changes of policy are also approved personally by the
Director himself.
Through a system established personally by the Director of the Federal Bureau
.of Investigation, there is a careful selection of personnel who, after selection, are
each adequately trained and then through the procedure of organization they
are supervised and directed through organizational processes.
II. How the Director's responsibilities and duties relate to the national security,
..economy, or health: Law enforcement is a security program. The internal
:security duties of the Federal Bureau of Investigation also are of primary impor-
tance in the work of the FBI. Cooperation is obtained through a program of co-
ordination with all of the police forces of the Nation at State, county, and local
levels. Relations and cooperative services have been established over a period
of years. The FBI offers services to the local, county, and State police in finger-
print identification, in technical laboratory services, in uniform crime reporting
.and crime statistics work, in police training, and in numerous other similar ways.
The police of all levels, in turn, offer assistance to the special agents of the FBI in
-their work. The director initiated as an outgrowth of the FBI training program,
the FBI National Academy to help train police instructors and police executives.
.Similarly, there are hundreds of schools conducted annually with the assistance
-of the FBI, all of which raise the standard of police performance in both the
enforcement of criminal laws and the handling of national defense, internal
security, and related matters, including espionage, sabotage, and subversiveness.
The Presidential directive of September 6, 1939, specifically designates the
Federal Bureau of Investigation as the coordinator of internal security matters.
The program of law enforcement conferences, activating this directive, has
resulted in a broad national pattern of friendly cooperation on a voluntary basis
to insure the country maximum protection against subversiveness, spies, sabo-
teurs, and similar enemies of the Nation and at the same time through personal
-contacts and training- the enforcement of the criminal laws has been improved,
giving added protection on a national basis to the citizenry.
Since crime is an enormously expensive problem, estimated in its total costs in
". -the billions of dollars annually, the consequence of improved security naturally
results in savings and affects the national economy. Improved law enforcement
-and improved work by the police in national security in cooperation with the
FBI has also given added confidence to the citizens in their security as a Nation,
-which, as a consequence, affects the national security.
The responsibilities placed on the FBI by either congressional action or Ex-
ecutive order, or both, give added security in connection with the atomic-energy -
s -projects, the Seleltive Service Act enforcement, the loyalty of Government em-
.ployees, and the qualifications of certain governmental personnel in key positions
who are investigated prior to appointment by the FBI. The latter groups in-
clude judges', United States district attorneys, marshals, and key Government
,officials when inquiries are requested by competent authority.
As a result of the responsibilities and duties performed by the Federal Bureau
,of Investigation under the personal direction of the Director of the FBI, there
is supervision or coordination of the activities and the results of such activities
of not only the staff of the FBI but of over 100,000 law-enforcement officers
`brought within the voluntary program of cooperation and coordination in keeping
with the Presidential directive.
The FBI also maintains the closest liaison with the intelligence agencies of
the military services, both foreign and domestic, which also relates to the national
?pattern of security, and the Director personally is a member of the Interdepart-
mental Intelligence Conference.
Size of organization:
Number. of employees, 9,664.
Estimated annual expenditures for fiscal year 1949, $47,461,800.
00486-49-6
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66 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
The national security and welfare of the Government and the people of the
United States are dependent in a very great measure upon the efficient and Ik
effective execution of the duties and responsibilities of the Commissioner of the
Immigration and Naturalization Service.
Size of organization:
Number of employees, 7,057.
Estimated annual expenditures for fiscal year 1949, $30,657,900.
Position title: Director, Bureau of.Prisons. Section of bill: 5 (a).
out of operating needs or directives received from the Attorney General; reviews
appeals and determines matters involving difficulty;; maintains liaison with the
Attorney General., officials of the Department and other Government, public and
private agencies; appears before congressional committees and maintains personal
contact with Members of the Congress on matters of mutual. interest, and with
the general public and consultation with persons or their legal representatives.
Position title: Commissioner, Immigration and Naturalization Service. Section
of bill: 5 (a).
Present salary: $10,330. Date of salary established: July it, 1948, by Public
Law 900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Watson B. Miller. State : Maryland.
Responsibilities: The Commissioner, under the direction of the Attorney
General, supervises and directs the administration of the Immigration and
Naturalization Service, which agency is responsible for the enforcement of the
immigration, nationality and alien registration laws. These laws require gener-
ally (1) theJrsp3eLion of all persons applying for admission or reentry to the United
States to determine admissibility; (2) the prevention of the entry of persons not
entitled under these laws to enter the United States; (3) the investigation, deter-
mination of status and expulsion of aliens unlawfully in the United States; (4)
the maintenance of records of aliens who are in or enter the United States; and
(5) the supervision of administrative processes and preliminary determination for
the courts concerning persons applying for naturalization as citizens of the
United States.
In the execution of his duties and responsibilities,'the Commissioner is assisted
by an official staff as follows: (1) a Deputy Commissioner who assists the Com-
missioner generally and acts for him in his absence; (2) an Assistant Commissioner,
Enforcement Division, who supervises all enforcement work of the field including
inspection, examination, investigation, patrol of the border, arrest, custody and
deportation of aliens; (3) an Assistant Commissioner, Adjudications Division,
who directs the quasi-judicial functions of the Service arising out of determinations
of alien or citizenship status, exclusion and expulsion of aliens unlawfully in the
United States; (4) an Assistant Commissioner, Administrative Division, who super-
vises the management functions of the Service including budget and fiscal matters,
personnel administration and the procurement of services and supplies; and (5)
an Assistant Commissioner, Research and Education Division, who supervises
the citizenship educational programs and the general statistical work of the
Service. The Commissioner is also assisted by a general counsel who renders
legal a-1vico to the Commissioner and other o`hicers of tin Service.
i he foregoing functions include the direc(ion of all field activities of the 16 field
districts throughout the continental United States, Alaska; Hawaii, Puerto Rico
and the Virgin Islands. Offices and stations are located in approximately 450
places in this area to accommodate border and seaport travel of approximately
80,000,000 persons annually seeking entry or reentry into the United States, and
the apprehension and removal of approximately 250,000 aliens who have violated
immigration laws. The Service personnel consists of approximately 7,000
employees and the appropriation to the Service runs :approximately $30,000,000
annually.
Present salary: $10,330. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: James V. Bennett. State: Maryland.
Responsibilities: The Director of the Bureau of Prisons has administrative
responsibility for the operation of the Federal Prison System which certainly
is the largest integrated prison system in this country and probably in the world.
He is responsible for the control and management of twenty-six institutions of
various types, housing approximately 17,000 prisoners convicted of offenses
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against the United States. The Government has a capital investment in these
institutions and their facilities of a value conservatively estimated at over $100,-
000,000.
In addition to prisoners confined in Federal institutions there are approximately
3,000 Federal prisoners confined in State, city, and county institutions under con-
tracts executed by the Director for their care and custody, Contracts are entered
into with only such of these institutions as meet Federal standards. The Director
must not only be an outstanding expert in the field of penology but in order to
properly administer the activities of the system must have technical knowledge
in many fields, such as agriculture, operation of power plants, construction of
buildings, road building, and the many varied activities necessary in the housing,
subsistence, and training of inmates. In connection with these operations the
Director must supervise over 4,000 civilian employees, many of whom are highly
skilled technicians in their various fields.
The Director of the Bureau of Prisons is also ox-officio Commissioner of Indus-
tries and is directly responsible to the Board of Directors of Federal Prison Indus-
tries, Inc.,'a Government corporation which operates more than 40 industries in
the various institutions, giving employment and training to about 3,500 inmates
with a civilian staff of approximately 500. These industries produce articles for
sale to other Government agencies of a gross value of approximately $18,000,000
per year. A wide variety of articles is manufactured, such as mail bags, textiles,
shoes, clothing, brushes, metal shelving and specialties, to name only a few.
These industries operate at a net profit to the Government of approximately
$3,000,000 per year. The Director must have an intimate knowledge of the pro-
duction problems in these various industries. In order to successfully administer
the Bureau of Prisons and the related industrial and training activities the Direc-
tor must have experience and technical knowledge in probably as wide a field as is
required of any administrative officer of the Government.
Size of organization:
Number of employees, 4,476.
Estimated annual expenditures for fiscal year 1949, $23,430,372.
Position title: Secretary of Labor. Section of bill: 1.
Present salary: $15,000. Date salary established: March 4, 1925, by Public Law
1301 of Sixty-eighth Congress (43 Stat.).
Proposed salary: $25,000.
Incumbent: Maurice J. Tobin. State: Massachusetts.
The Secretary of Labor is responsible for administering the basic act establishing
the Department of Labor which is for the purpose of fostering, promoting, and
developing the welfare of the wage earners of the United States, improving their
working conditions and advancing their opportunities for profitable employment.
Examples of other legislation administered within the Department are the Fair
Labor Standards Act, Walsh-Healey Act, Davis-Bacon Act, Copeland Act, and
Veterans' Reemployment Rights statutes.
The Secretary as a member of the President's Cabinet is the official to whom
the President and Congress look for the development of national and international
labor policy and programs.
At the present time there are included within the framework of the Department
of Labor the Bureau of Apprenticeship, the Bureau of Labor Standards, the
Bureau of Labor Statistics, the Bureau of Veterans' Reemployment Rights, the
Wage and Hour Division, the Women's Bureau, and the Office of International
Labor Affairs.
Size of organization:
Number of employees, 3,304 plus an average of 155 intermittent.
Estimated annual expenditures for fiscal year 1949, $15,263,550.
Position title: Under Secretary of Labor. Section of bill: 2 (a).
Present salary: $10,000.20 Date salary established: April 17,,1946,- by Public
Law 346 of Seventy-ninth Congress.
Proposed salary: $20,000.
Incumbent: Michael J. Galvin. State: Massachusetts.
Responsibilities: Within the scope of policies and instructions issued by the
Secretary, he is charged with full administrative responsibility for directing the
organization and activities of the several bureaus, divisions, offices, and services
of the Department to the end that the policies and programs of which they have
20 Rate increased to $10,330 by Public Law 000, 80th Cong., effective July fl, T048.
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charge shall be coordinated and executed efficiently without duplication or over-
lapping.
Size of organization:
Number of employees, 3,304 plus an average of 155 intermittent.
Estimated annual expenditures for fiscal year 1949, $15,263,550.
Position title: Assistant Secretary of Labor. Section of bill: 5 (a).
Present salary: $10,000.20 Date salary established: April 17, 1946, by Public Law
346 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbent: Ralph Wright. State: New York.
Responsibilities: The Assistant Secretary acts in a liaison capacity for assigned
bureaus and functions on matters of concern to the Secretary. This involves
responsibility for proper relationship of the bureaus' programs with each other and
the Department's relationship with other agencies of Government. Also handles
matters of major importance by special assignment from the Secretary which may
concern labor, management, Government, State, educational, municipal, and
other groups.
Size of organization:
Number of employees, 3,304 plus an average of 155 intermittent.
Estimated annual expenditures for fiscal year 1949, $15,263,550.
Position title: Assistant Secretary of Labor. Section of bill: 5 (a).
Present salary: $10,000.20 Date salary established: April 17, 1946, by Public
Law 346 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbent: John W. Gibson. State: Michigan.
Responsibilities: The Assistant Secretary acts in a liaison capacity for assigned
bureaus and functions on matters of concern to the Secretary. This involves
responsibility for proper relationship of the bureaus' programs with each other
and the Department's relationship with other agencies of Government. Also
handles matters of major importance by special assignment from the Secretary
which may concern labor, management, Government, State, educational, munici-
pal, and other groups.
Size of organization:
Number of employees, 3,304 plus an average of 155 intermittent.
Estimated annual expenditures for fiscal year 1949, $15,253,550.
Position title: Assistant Secretary of Labor. Section of bill: 5 (a).
Present salary: $10,000.20 Date salary established: April 17, 1946, by Public
Law 346 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbent: Vacancy. Ad%
Responsibilities: One Assistant Secretary is responsible for developing, direct-
ing, supervising, and coordinating all of the activities of all organizational units
of the Department in the field of international labor activities. The Department
of Labor is held responsible for the development and coordination of the Federal
Government's international labor policy and programs.
Size of organization:
Number of employees, 3,304 plus an average of 155 intermittent.
Estimated annual expenditures for fiscal year 1949, $15,263,550.
Position title: Librarian of Congress. Section of bill: 3 (c).
Present salary: $10,330. Date salary established: March 6, 1928, by Public Law
97 of Seventieth Congress.21
Proposed salary: $17,500.
Incumbent: Luther H. Evans. State: Texas.
Responsibilities: The Librarian of Congress is appointed by the President,
by and with the advice and consent of the Senate and gives bond to the United
States in the sum of $20,000. He directs the Library of Congress; makes rules
and regulations for its government; selects and appoints all officers and employees
of the Library, including the Register of Copyrights; makes an annual report
to Congress; and is ex officio a member of the Library of Congress Trust Fund
Board, and of the National Archives Council.
20 hate increased to $10,330 by Public Lou- 900, 80th Cong., effective July 11, 1948..
31 At $10,000, increased to $10,330 by Public Law 900, 80th Cong.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 69
The Library of Congress, in addition to the primary function indicated by its
name, is the principal library of the Federal Government and of the United
States. It has collections approximating 27,000,000 pieces, and is organized in
40 divisions in 5 departments, in addition to a number of special projects.
These include the Legislative Reference Service (124 persons, performing research
and analysis work exclusively for Members and committees of Congress), the
Copyright Office (229 persons, which as a self-sustaining activity handles 238
copyright registrations and more than half a million dollars in fees per annum);
the Manuscripts Division (which holds the papers of most of the Presidents from
Washington to Coolidge, in addition to other principal historical sources for
United States history). It has principal collections of Chinese, Japanese, Rus-
sian, and rare books, maps, music, prints, and many other categories of ma-
terials. Through its national union catalog and interlibrary loan system it
serves as a national clearinghouse for published research materials and supple-
ments local resources throughout the United States; and through its technical
divisions (especially the Card Division, 153
persons) it provides largely self-
sustaining central cataloging and bibliographic services to the libraries of the
country (22,000,000 catalog cards sold in 1948). It provides a national library
`%W service for the blind through 26 regional libraries under a special annual authorized
appropriation of over $1,000,000. Through private endowments it has funds
for the promotion of chamber music, not only in Washington but throughout
the country, and for the prosecution of activities in behalf of researches in
American history. As the agency of the Federal Government for conducting
international exchanges under the Brussels conventions it is in contact with
institutions in most foreign countries.
Size of organization:
Number of employees, 1,874 (1,601 on annual appropriations, 273 on other
funds).
Estimated annual expenditures for fiscal year 1949, $9,839,346 ($8,439,346
annual appropriations, $1,400,000 other funds).
Position title: Chief Assistant Librarian of Congress. Section of bill: 5 (a).
Present salary: $10,330. Date salary established, July 3, 1948, by Public Law
900 of Eightieth Congress 22
Proposed salary: $15,000.
Incumbent: Verner W. Clapp. State: Maryland.
Responsibilities: The Chief Assistant Librarian assists the Librarian of Congress
in the general administration of the Library, serving for this purpose as his deputy
in all matters including the oversight of the Library's 40 divisions and numerous
special projects, the, special service to Congress, and the general service to the
Federal agencies and to the public, as well as relations with libraries in the United
States and foreign countries.
Size of organization:
Number of employees, 1,874 (1,601 on annual appropriations, 273 on other
funds) .
Estimated annual expenditures for fiscal year 1949, $9,839,346 ($8,439,346
annual appropriations; $1,400,000 other funds).
Position title: Chairman, United States Maritime Commission. Section of bill: 4.
Present salary: $12,000. Date salary established: June 29, 1936, by Public Law
835 of Seventy-fourth Congress.
Proposed salary: $16,000.
Incumbent: Vacant.
Responsibilities: The United States Maritime Commission is an independent
executive agency created by the Merchant Marine Act, 1936, comprised of five
members appointed by the President, with the advice and consent of the Senate.
The Chairman is designated by the President and functions as the presiding
official of meetings, but all authority exercised by the Commission rests in the
Commission acting as a single body, hence the authority and responsibility of
each member of .the Commission is equal. As one of five Commission members
nominated by the President and approved by the Senate, the Chairman, with
other members, is responsible to the Congress and the President under a declara-
tion of merchant marine policy and discretionary standards prescribed by the
Congress, for deliberative exercise of judgment and impartial determination in
22 Position allocated at P=8 by Civil Service Commission September 4, 1444, in accordance withClassiflea
tion Act of 1923 as amended.
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70 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
the public interest in respect of controversial policy issues, the wise selection of
courses within a wide range of choice, and the approval or disapproval of applica-
tions, complaints, and recommendations in the administration, execution, and
enforcement of the merchant-marine and shipping statutes affecting directly a
private industry with investments of more than a billion dollars, and employing
thousands of persons, and indirectly affecting virtually the entire economy of the
United States, important. matters of foreign and domestic policy and relations,
the whole national public interest, and the national defense.
These laws vest in the Commission, in addition to the quasi-judicial and legis-
lative function of regulating carriers in oceangoing water transportation, the
administration of direct subsidies and other aids to the development and main-
tenance of the merchant marine, the construction of essential ships and the pro-
visions for shipping services needed to serve the requirements of the domestic
and foreign water-borne commerce and the national defense, the development of
long-range programs for additions to and replacement with efficient vessels for
the merchant marine, the training of ship operating personnel, the fixing of mini-
mum manning and wage and working conditions for employment by subsidized
operators and the management of a Government-owned national defense vessel
reserve comprising some 1,500 vessels costing several billion dollars, Government-
owned reserve shipyards worth several million dollars, terminal facilities worth
several million dollars, reserve fund deposits of subsidized operators of over
$100,000,000, construction reserve funds of nonsubsidized operators, the operation
under agency or charter of Government-owned vessels involving expenses and
revenues and charter return of many million dollars monthly, processing of marine
and war risk insurance of values amounting to several billion dollars, the operation,
sale, charter, and trade-in of merchant vesels in accord with the merchant marine
policy, the insurance of ship mortgages, the administration of reserve funds for
new vessel construction, the control of sales and transfers of registry of American-
owned vessels to foreign ownership or flag, and the requisition and operation
of the American-owned merchant fleet in time of war or national emergency.
The regulatory powers of the Commission extend to carriers in foreign water-
borne commerce and commerce with our possessions and Territories, to freight
forwarders, and to port terminal operators and include the prescribing of rules and
regulations relating to their operations, the control of abuses with respect to the
practices of such carriers, and the investigation and elimination of discriminations
by foreign governments against American vessels.
Size of organization:
Number of employees, 6,512.
Estimated annual expenditures for fiscal year 1949, $142,500,000.
Position title: Member, United States Maritime Commission. Section of bill:
5 (a).
Present salary: $10,000. Date salary established: June 30, 1948, by Public
Law 862 of Eightieth Congress.
Proposed salary: $15,000.
Incumbents: Grenville Mellen, Mississippi; Raymond S. McKeough, Illinois;
David J. Coddaire, Massachusetts; Joseph K. Carson, Oregon.
Responsibilities: As one of five Commission members nominated by the Presi-
dent and approved by the Senate, the Commissioner, with other members, is
responsible to the Congress and the President under a declaration of merchant-
marine policy and discretionary standards prescribed by the Congress, for delibera-
tive exercise of judgment and impartial determination in the public' interest in
respect of controversial policy issues, the wise selection of courses within a wide
range of choice, and the approval or disapproval of applications, complaints, and
recommendations, in the administration, execution, and enforcement of the mer-
chant-marine and shipping statutes affecting directly a private industry with
investments of more than a billion dollars, and employing thousands of persons,
and indirectly affecting virtually the entire economy of the United States, im-
portant matters of foreign and domestic policy and. relations, the whole national
public interest, and the national defense.
These laws vest in the Commission, 'in addition to the quasi-judicial and legis-
lative function of regulating carriers in oceangoing water transportation, the
administration of direct subsidies and other aids to the development and mainte-
nance of the merchant marine, the construction of essential. ships and the provi-
sions for shipping services needed to serve the requirements of the domestic and
foreign water-borne commerce and the national defense, the development of long-
range programs for additions to and replacement with efficient vessels for the
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merchant marine, the training of ship-operating personnel, the fixing of minimum
manning and wage and working conditions for employment by subsidized opera-
tors, and the management of a Government-owned national defense vessel reserve
comprising some 1,500 vessels costing several billion dollars, Government-owned
reserve shipyards worth several million dollars, terminal facilities worth several
million dollars, reserve-fund deposits of subsidized operators of over $100,000,000,
construction reserve funds of nonsubsidized operators, the operation under age 'ley
or charter of Government-owned vessels involving expenses and revenues and
charter return of many million dollars monthly, processing of marine and war-
risk insurance of values amounting to several billion dollars, the operation, sale,
charter, and trade-in of merchant vessels in accord with the merchant-marine
policy, the insurance of ship mortgages, the administration of reserve funds for
new vessel construction, the control of sales and transfers of registry of American-
owned vessels to foreign ownership or flag, and the requisition and operation of
the American-owned merchant fleet in time of war or national emergency. The
regulatory powers of the Commission extend to carriers in foreign water-borne
commerce and commerce with our possessions and Territories, to freight forwarders
and to port terminal operators and include the prescribing of rules and regulations
relating to their operations, the control of abuses with respect to the practices of
such carriers, and the investigation and elimination of discriminations by foreign
governments against American vessels.
Size of organization:
Number of employees, 6,512.
Estimated annual expenditures for fiscal year 1949, $142,500,000.
Position title: Director of Aeronautical Research, National Advisory Committee
for Aeronautics. Section of bill: 4.
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $16,000.
Incumbent: IIugh L. Dryden. State: Maryland.
Responsibilities: The Director of Aeronautical Research is the operating head
of the organization which conducts the major portion of the basic aeronautical
research for the Nation. This work is of vital importance to the national security
and is the basis for our hope of maintaining American supremacy in the air.
In directing the research program of the NACA, he anticipates the research
needs of aviation, civil and military, plans the necessary new research facilities
to meet those needs, and times the institution and evaluation of research programs
so as most effectively to provide the military services and the aircraft industry
with the basic design data needed for the .continuing improvement in the per-
formance and effectiveness of America's military aircraft and in the safety and
efficiency of America's civil aircraft. He directs and evaluates research contracts
with other organizations, public and private, including scientific and educational
institutions. He acts as the Government's leading expert adviser on basic aero-
nautical research.
Under his direction are three major and two smaller research stations employing
approximately 7,000 employees, with an annual expenditure of $44,000,000 and
having a plant value of $120,000,000. The Director meets frequently with an
unpaid committee of the Nation's outstanding aeronautical authorities from the
fields of industry, science, and the military services to formulate the research
programs, not only for this organization, but also for other governmental agencies
and for scientific and educational institutions throughout- the country.
Size of organization:
Number of employees, 6,863.
Estimated annual expenditures for fiscal year 1949, $44,000,000,
Position title: Chairman and member, National Labor Relations Board. Section
of bill: 4.
Present salary: $12,000. Date salary established: August 22, 1947,'by Public
Law 101 of Eightieth Congress.
Proposed salary: $16,000.
Incumbent: Paul M. Herzog. State: Now York.
Responsibilities: As a member of the Board, is responsible for effectuating the
Federal labor policy expressed in the National Labor Relations Act, as amended,
regulating all industries, trades, and businesses affecting commerce in the United
States and its Territories except railroads and air lines. Prescribes rules and
regulations necessary to carry out provisions of the act. Decides cases arising
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under the act involving all major phases of employer-employee relations, unfair
labor practices by employers and unions, rights of employees, representation
(election), and jurisdictional disputes. Also decides rights of employees under
Telegraph Merger Act and certifies labor organizations as bona fide for purposes
of section 7 (b' of Fair Labor Standards Act.
Besides resolving disputes which obstruct or threaten to obstruct commerce,
the Board members in their quasi-judicial capacity inevitably make decisions
deeply affecting the entire economic life of the Nation, as they translate the
general statutory language into specific policies and principles of law governing
labor relations, establish the units for collective bargaining, fix the scope of col-
lective bargaining, and define the rights of employers, employees, and labor
organizations.
In addition to his duties as a member of the Board, the Chairman is responsible-
for such administrative functions as handling the Board's more important corre-
spondence and personal contacts with Members of Congress, with executive
agencies and with the public; the preparation and presentation of the Board's
testimony on legislation and on appropriations; presiding at Board meetings
and-with the assistance of the Executive Secretary-planning the flow of the
Board's judicial work. Of course, if section 3 (d) of the present act (which
created the independent general counsel) is repealed or modified and/or if certain
Hoover Commission recommendations on regulatory agencies are implemented,
the special administrative duties of the Chairman's office would increase.
Size of organization:
Number of employees, 1,420 full-time employees, as of March 31, 1949.
Estimated annual expenditures for fiscal year 1949, $8,750,000.
Position title: Member, National Labor Relations Board. Section of bill: 4.
Present salary: $12,000. Date salary established: August 22, 1947, by Public'
Law 101 of Eightieth Congress.
Proposed salary: $16,000.
Incumbents: James J. Reynolds, New Jersey; John M. Houston, Kansas; Abe
Murdock, Utah; J. Copeland Gray, New York.
Responsibilities: As a member of the Board, is responsible for effectuating the
Federal labor policy expressed in the National Labor Relations Act, as amended,
regulating all industries, trades, and businesses affecting commerce in the United
States and its Territories except railroads and air lines. Prescribes rules and
regulations necessary to carry out provisions of the act. Decides cases arising
under the act involving all major phases of employer-employee relations, unfair-
labor practices by employers and unions, rights of employees, representation
(election) and jurisdictional disputes. Also decides rights of employees under
Telegraph Merger Act and certifies labor organizations as bona fide for purposes
of section 7 (b) of Fair Labor Standards Act.
Besides resolving disputes which obstruct or threaten to obstruct commerce,
the Board members in their quasi-judicial capacity inevitably make decisions
deeply. affecting the entire economic life of the Nation, as they translate the general
statutory language into specific policies and principles of law governing labor
relations, establish the units for collective bargaining, fix the scope of collective
bargaining, and define the rights of employers, employees, and labor organizations..
Size of organization:
Number of employees, 1,420 full-time employees, as of March 31, 1949.
Estimated annual expenditures for fiscal year 1949, $8,750,000.
Position title: General Counsel, National Labor Relations Board. Section of
bill: 4.
Present salary: $12,000; Date, salary established: August 22, 1947, by Public
Law 101 of Eightieth Congress.
Proposed salary: $16,000.
Incumbents Robert N. Denham. State: Maryland.
Responsibilities: The General Counsel is, in fact, the general administrator of the?
National Labor-Management Relations Act in all of its aspects, except the judicial.
task of conducting hearings, making findings, and reviewing records and making
final decisions and orders. Another exception is that questions concerning repre-
sentation, when contested, are determined by the Board and not by the General
Counsel, notwithstanding that this is an administrative function.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 73
The agency receives and processes unfair labor practice and representation
cases involving virtually every type of business and industry which affects inter-
state commerce, except agriculture. During the calendar year 1948, the offices
under the direction of the General Counsel, received and processed 47,263 cases.
The General Counsel has full supervision, responsibility, and authority over
the 19 regional offices of the National Labor Relations Board which are strate-
gically placed throughout the United States, and the nine subregional offices.
By Statute he has final authority concerning the issuance of all complaints
charging offenders with commissions of unfair labor practices. Ile also determines
whether and when injunctions shall be sought to stop unfair labor practices. In
certain cases he is required by the law to seek such injunctions. He is in charge
of all the administrative affairs of the Washington office as well, with responsibility
for all personnel matters except those particularly applicable to the Board, the
staffs of the Board members, and the Executive Secretary's office. All matters
pertaining to policies in the handling of unfair labor practice charges, and the
relations of the regional offices with the public, the conduct and handling of all
of the business of the Board short of that which falls into the judicial field, are
the responsibility of the General Counsel and his staff.
There are at present 873 employees who man the various regional offices and
suboffices under the supervision and on behalf of the General Counsel and there
a ?e 373 in Washington who function under his administration and direction.
Size of organization:
Number of employees, 1,420 as of March 31, 1949, full time employees.
Estimated annual expenditures for fiscal year 1949, $8,750,000.
Position title: Member, National Mediation Board. Section of hill: 4.
Present salary: $10,000. Date of salary established: June 21, 1934, by Public
Law 442 of Seventy-third Congress.
Proposed salary: $16,000.
Incumbents: Frank P. Douglass, Oklahoma; Francis A. O'Neill, Jr., New York;
John Thad Scott, Jr., Texas.
Responsibilities: The three members of the National Mediation Board are
charged with administering the Railway Labor Act, which governs labor relations
on the railroads and air lines of the continental United States and its Territories.
The mediation of issues growing out of the making, maintaining, and revising of
labor agreements affecting wages, hours, and conditions of employment of more
than 2,000,000 employees, and the prevention of strikes in these vital transporta-
tion industries is the major responsibility of the members of this Board, together
with the detailed functions outlined in the act. The Board also acts in a quasi-
judicial capacity, making findings of fact and conclusions of law after hearings on
problems involving representation of employees. In instances where agreements
are achieved through mediation, the Board is required to interpret such agree-
ments on request. In addition to the principal duties outlined above, members
of the Board are charged with expediting the functioning of many other provisions
.in the act.
The execution of the exacting duties of this Board makes it necessary that the
members be men who have gained national prominence in some related field and
be of such caliber that they will command respect and engender confidence in the
people with whom they deal, whether it be the representatives of labor and man-
.agement, the Members of the Congress, or the White House. In addition, a wide
.area of specific knowledge of working conditions and techniques, economic condi-
tions, objectiveness, infinite patience, and utmost discretion are essential qualities
of Board members in their task of coordinating the views of the parties to a dispute.
Operating from a single headquarters in Washington, with no regional offices,
the members spend much time at various points throughout the country, conduct-
ing hearings and mediating cases of special importance, often national in scope,
which cannot be delegated to their staff of mediators. Prior to 1984, the pred-
ecessor of the present Board, the United States Board of Mediation, consisted of
five members with salaries of $12,000 each, per annum. The Board is bipartisan
.and the chairmanship is rotated. -
Size of organization:
Number of employees, 91 plus 20 intermittent.
Estimated annual expenditures for fiscal year 1949, $939,250.
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74 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Position title: Secretary of the Department of the Air Force. Section of bill: 1.
Present salary: $15,000. Date salary established: March 4, 1925, by Public Law
624 23 of Sixty-eighth Congress.
Proposed salary: $25,000.
Incumbent: W. Stuart Symington. State: Missouri.
Responsibilities: The Secretary of the Air Force is designated as the head of the
Department by the National Security Act of 1947. He is responsible to the.Presi-
dent and the Secretary of Defense for the carrying out of congressional and Execu-
tive directives on military aviation policy. The National Security Act also
provides that he serve as a member of the National Security Council and the War
Council. As head of the Department of the Air Force, the Secretary has final
authority for all matters pertaining to the Air Force. Through his statutory
civilian and military assistants (including the Under Secretary, the two Assistant
Secretaries, and the Chief of Staff) he directs the day-to-day operation of the
Department and both its short- and long-term programs. In general, only mat-
ters of a policy nature are referred to the Secretary for decision. The emergency
and short-term programs (such as the Berlin air lift) require that the Secretary
have full knowledge of the operational and administrative capabilities of the Air
Force. He is responsible to the Secretary of Defense for integrating the programs
of the Department of the Air Force with national and foreign policy in such mat-
ters as defense, military and civil aviation, military and civil air transport, intelli-
gence, etc.
He must determine. the scope and nature of the long-term program of the Air
Force. This requires the integration of a budget of more than $5,000,000,000, a
civilian. and military personnel strength of over 560,000, and an active aircraft
strength of more than 9,500 into a phased operation that is in accord with the
economic potential of the Nation as expressed by the President and the Secretary
of Defense.
As a member of the National Security Council, the Secretary participates with
the Secretaries of State, Defense, Army, and Navy in advising the President on
the integration of domestic, foreign, and military policies relating to the national
security. As a War Council member, he, together with the civilian and military
heads of the other two military services, advises the Secretary of Defense on
policy matters relating to the armed forces.
Position title: Under Secretary of the Department of the Air Force. Section of
bill: 2 (a).
Present salary: $10,000. Date salary established: July 26, 1.947 by Public Law
253 of Eightieth Congress.
Proposed salary: $20,000.
Incumbent: Arthur S. Barrows. State: California.
Responsibilities: The Under Secretary of the Air Force is responsible to the
Secretary of the Air Force for the formulation and supervision of policies relating
to procurement, production, and related industrial matters; contract renegotiation;
planning for industrial mobilization; supply, maintenance, and transportation;
research and development; industrial security. The Under Secretary is the Air
Force member of the Munitions Board.
The degree of effectiveness with which the above-listed functions are discharged
is directly reflected in the success of the tactical mission. The scope of the func-
tions is indicated by the following: Procurement includes the purchase of all Air
Force type matdriel (Public Law 547 provided $2,285,100,000 for aircraft and
related equipment). The direction of the procurement program. by the Under
Secretary requires constant review of contract methods and procedures, the
capabilities of aircraft companies, and the coordination of production scheduling
to meet Air Force tactical requirements. In this connection the Under Secretary
is responsible for the introduction, of sound purchasing and distribution practices
and for the establishment of effective methods for the distribution and storage of
materiels valued at approximately $2,000,000,000.
23 July 26, 1047, Public Law 253, 80th Gong.
Ad%
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Position title: Assistant Secretary of the Department of the Air Force. Section
of bill: 5 (a).
Present salary: $10,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed. salary: $15,000.
Incumbent: Eugene M. Zuckert. State: Connecticut.
Responsibilities: The Assistant Secretary acts for the Secretary on all matters
pertaining to the over-all management of the Department. He formulates the
departmental policy on organization, budget, fiscal affairs, cost control, military
installations, and civilian and military personnel. He supervises and directs
the carrying out of these policies. Some examples of the scope of this position
? follow: Ile supervises the obligation and expenditure of the Department's budget
of approximately $5,000,000,000. Ile controls these matters through the Comp-
troller, United States Air Force, and works closely with the designated representa-
tive of the Secretary of Defense. Together with the Secretary of the Air Force,
presents to the Congress the annual budget. Ile is responsible for seeing that
such estimates represent valid requirements.
Ile closely supervises the Air Force cost control program to provide not only
a sound basis for budgeting but an effective measurement of efficiency in expendi-
`irW ture of funds. Ile is responsible for seeing that the Department's policies with
~- respect to personnel are properly executed. The Chief of Staff or his designated
representative report to him directly on these matters. The Secretary has
directed him to supervise the carrying out of Presidential and congressional pro-
grams with respect to fair employment and loyalty. In this connection, the
Assistant Secretary personally supervises the fair employment officer and the
Loyalty-Security Appeal Board.
Position title: Assistant Secretary of the Department of the Air Force. Section
of bill: 5 (a).
Present salary; $10,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Vacant.
Responsibilities: In general the responsibilities of the Assistant Secretary may
be defined as all matters pertaining to national security. This includes, the de-
velopment of a sound Reserve force program. In this connection, working under
the policy direction of the Secretary, develops and prescribes Air Force policy
relative to its Reserve components. It requires the supervision of all detailed
plans and the development of a Reserve force sufficient to meet the defense
requirements of the Nation. Further, he is responsible for recommending to
the Secretary the formulation of national policy with respect to military and
civil air carriers; intelligence and foreign affairs concerned with air matters. In
performing such functions the Assistant Secretary acts as. the representative of
NOWthe Secretary in providing assistance to other Federal agencies and civil organi-
zations concerned with national aviation policy. In this connection he acts as
a member of the Air Coordinating Committee and the State-Army-Navy-Air
Force Coordinating Committee.
The major responsibilities of the Assistant Secretary are of a highly classified
and confidential nature.
Position title: Secretary of the Army. Section of bill: 1.
Present salary: $15,000. Date salary established: March 4, 1925, by Public
Law 624 of Sixty-eighth Congress.
Proposed salary: $25,000.
Incumbent: Vacant.
Responsibilities: The Secretary of the Army is head of the Department of the
Army and performs such duties as are required of him by law or may be enjoined
upon him by the President and the Secretary of Defense. Basically he is respon-
sible for the provision of adequate forces organized, trained, and equipped pri-
marily for prompt and sustained combat incident to operations on land in defense
of the United States. As a member of both the War Council and the National
Security Council, he advises the Secretary of Defense on broad armed forces
policy matters and the President on integration of domestic, foreign, and military
policy.
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The Secretary of the Army also performs a number of tasks of a quasi-military
or civil nature, each of which is of special significance. Problems incident to
occupation of foreign areas demand a-considerable amount of his attention. He is
charged with the defense, maintenance, care, and operation of the Panama Canal.
The development and execution of plans for flood control on inland rivers, as well
as rivers and harbors projects in the United States, its Territories, and possessions,
have been placed under his supervision. Likewise, he is president of the National
Forest Reservation Commission, which is authorized to purchase such forested,
cut-over, or denuded lands within the watersheds of navigable streams as in its
judgment may be necessary to the regulation of stream flow or for the production
of timber. These and other similar functions require active attention and, in
many instances, coordination with other Government agencies and detailed
reporting to the Congress.
Size of organization:
Number of employees: civilian, 370,011; military, 705,076; total 1,075,087.
Estimated annual expenditures for fiscal year 1949, $7,776,000,000 (includ-
ing civil functions).
Position title: Under Secretary of the Army. Section of bill: 2 (a).
Present salary: $10,000. Date salary established: July 26, 1947, by Public Law
. 253 of Eightieth Ccnigress.
Proposed salary: $20,000.
Incumbent: Vacancy.
;Responsibilities: The Under Secretary of the Army acts as the principal assist-
ant to the Secretary of the Army in the entire field of the Secretary's responsibili-
ties. He assists with the formulation of policy and supervises at the secretarial
level those Army activities delegated by the Secretary and not specifically assigned
to an Assistant Secretary. He acts as the Secretary of the Army in the absence of
the Secretary.
His major interest and responsibility is in coordinating the policies and activities
of the Department of the Army with those of the State Department and other
governmental agencies in the development and execution of United States foreign
policy. In the field of politico-military affairs, the Under Secretary is concerned
with the integration of military policy with national policy. Consequently, the
Under Secretary of the Army has for consideration those politico-military matters
(other than occupation matters) upon which Army opinion and advice is requested-
by.the National Security Council, the War Council, and the Joint Chiefs of Staff.
Ile is the Army member of the State-Army-Navy Air Force Coordinating Com-
mittee. Also for the Under Secretary's consideration are the military aspects
of United Nations' plans and policies, the Army's role in psychological and
economic warfare, the development of policies relating to war plans and all other
requirements of United States security, the Army's responsibilities resulting from
international treaties and agreements, and supervision of Army missions to
foreign nations, such as the hemisphere defense groups and special missions for
Aid to Greece and Turkey.
(This position is now vacant and the duties which might normally be assigned
to this office are now being carried out by the two Assistant Secretaries.)
Position title: Assistant Secretary of the Army. Section of bill: 5 (a). -
Present salary: $10,000. Date salary established:. July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $15,000. -
Incumbent: Tracy S. Voorhees. State: New York.
Responsibilities: The Assistant Secretary of the Army is responsible for super-
vision and control of military government affairs in the occupied areas of Germany,
Japan, Austria, and Trieste. As the primary agent for implementation of the
Department of the Army's responsibility in this field, the Assistant Secretary is
primarily concerned with the diverse political, economic, and psychological
problems arising among almost 130,000,000 peoples and involving an expenditure
of United States Government funds of approximately one and one-half billion
dollars in the 1949 fiscal year. Briefly, he is responsible for the development,
initiation, and execution of policy on such varied subjects as the German consti-
tution, reparations, economic stabilization, foreign investment policy exchange
rates of the mark and the yen, restitution of property, reorientation of tfie German
and Japanese people in the ways of democracy, and numerous similar matters.
In addition, the Assistant Secretary of the Army is designated as the Food
Administrator for Occupied Areas and supervisor of the bizone's (Germany)
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INCREASING COMPENSATION OF BEADS OF DEPARTMENTS 77
operations as a member of the OEEC. Administration of relief in Germany
and Japan requires the expenditure of over one-half billion dollars for food and
fertilizer. Preparation of the budget and its presentation before the Congress
is the responsibility of the Assistant Secretary. Apart from the above functions,
the Assistant Secretary of the Army is the supervisor at secretarial level of other
Army activities assigned by the Secretary, such as membership on the National
Military Establishment Personnel Policy Board and on. the Committee on Federal
Medical Services.
To carry out his responsibilities the Assistant Secretary is required to be in
constant communication with numerous other departments and agencies of the
Government. He is in daily contact with State Department and ECA chiefs
working out details of United States Government policies which affect all three of
these agencies. The Congress and the public need constantly to be informed
on occupation matters, and this duty devolves largely upon the Assistant Secre-
tary of the Army.
(Since the position of Under Secretary of the Army has been vacant, the
political-military matters which concern the Army throughout the world (except
for the occupied areas) have been handled by one of the Assistant Secretaries.
At this time responsibility is being assigned to the Assistant Secretary.)
Position title: Assistant Secretary of the Army. Section of bill.; 5 (a).
Present salary: $10,000. Date salary established: February 12, 1925, by Public
Law 413 of Sixty-eighth Congress.
Proposed salary: $15,000.
Incumbent: Gordon Gray. State: North Carolina.
Responsibilities: The Assistant Secretary exercises the supervisory responsibil-
ity of the Secretary of the Army for all logistical and related fiscal activities of the
Department, including the broad aspects of logistics programs, over-all procedures,
advance planning, budget estimates, future expenditure programs, and the imple-
mentation of these plans and programs. Briefly it includes the procurement of
all military supplies and other business pertaining thereto; industrial and related
matters including industrial mobilization and demobilization; matters relating
to the supply and service systems of the Army; and research and development.
In addition, the Assistant Secretary exercises policy supervision over renego-
tiation; contract appeals; contractual and damage claims; acquisition and dis-
posal of real estate; bridge permits and relocations; civil functions of the. Corps
of Engineers; national cemeteries, monuments, and military parks; patents;
transactions involving the management of civil and military property both real
and personal; disposal of utilities; transfer of supplies and equipment; engineering
surveys for civil projects; Army exchange system; labor relations; and operation
of disciplinary barracks and custody of military prisoners. Ile is the Depart-
ment of the Army member of the Munitions Board, President of the National
and Department of the Army member
Board for the Promotion of Rifle Practice
,
of the State Army-Navy-Air Force Coordinating Committee (SANACC). Ile
supervises the political-military activities (other than Occupied Areas' matters)
of the Department as well as matters pertaining to psychological warfare. In
addition, the Assistant Secretary performs such other duties of a military and
nonmilitary nature as are delegated to him by the Secretary of the Army and in
the absence of both the Secretary and the Under Secretary acts as the Secretary
of the Army.
Position title: Governor, The Panama Canal. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: August 24, 1912; by Public
Law 337 of Sixty-second Congress.
Proposed salary: $15,000.
Incumbent: Brig. Gen. Francis K. Newcomer. State: Illinois.
Responsibilities: The Governor of the Panama Canal under the general
supervision of the President exercised through the Secretary of the Army and in
conformity to the treaty obligations and foreign policy of the United States
affecting the Republic of Panama, is responsible for the operation, maintenance,
and protection of the Panama Canal, the operation of the auxiliary enterprises
necessary to provide adequately for the needs of shipping and of the Canal opera-
ting forces, the operation of the Panama Railroad Company, and the goavernment
and sanitation of the Canal Zone. These broad responsibilities include complete
and immediate responsibility for:
(1) Operation and maintenance of the Cana), including ports, transiting of ships,
operation of locks, dredging of channels and general administration at a gross
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78 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
expense of $13,400,000 during the fiscal year 1948 in which 5,920 tolls-paying
ships were transited, producing over $20,000,000 in tolls;
(2) Operation of the auxiliary enterprises of shipyards, storehouses, electric
power system, water system, building, and other construction, quarters for em-
ployees etc., doing a business of $35,000,000 in fiscal year 1948;
(3) Operation of the Panama Railroad Company under the management of a
Board of Directors, including the three 10,000-ton ships between New York and
Cristobal; the railroad between the Atlantic and Pacific terminal cities, Colon
and Panama; two hotels; the wharves and piers in the terminal ports; the Panama
Railroad commissary and minor auxiliary enterprises doing a gross business of
$45,000,000 in fiscal year 1948;
(4) The government of the Canal Zone, including the provision of municipal
government, police, fire, schools, etc, for a population of 40,000 persons at a
gross expense of $3,250,000 in fiscal year 1948;
(5) The sanitation of the Canal Zone, the supervision of the sanitation and
health in the cities of Colon and Panama in the Republic of Panama; including
provision of water sewerage and street maintenance and repairs, and the opera-
tion of the health and hosoital services in the Canal Zone at a gross expense of
$5,650,000 in fiscal year 1948.
The significance of the activities and responsibilities is that the Canal-i'ailroad
enterprise is an international utility performing an indispensable service to world
trade and an essential element in the defense of the United States.
Size of organization:
Number of employees, 22,560.
Estimated. annual expenditures for fiscal year 1949, $106,000,000.
Position title: Secretary of Defense, National Military Establishment. Section
of bill: 1.
Present salary: $15,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $25,000.
Incumbent: Louis Johnson. State: West Virginia.
Responsibilities: While recognizing that the functions of the Secretary of
Defense may materially change as a result of an evolutionary process growing
out of accumulating experience and further legislative action, his basic functions
at the present time may be described broadly as follows:
1. Assistant to the President in all matters relating to the national security,
including matters beyond the jurisdiction of the National Military Establishment,
as such.
2. Establish the policies and formulate the basic programs of the National
Military Establishment.
3. Generally direct and control the affairs of the National Military Establish-
ment as a whole, a duty which includes among other things-
(a) Determining those major jobs or responsibilities which must be performed
to carry out the general. mission of the National Military Establishment;
(b) Deciding upon the general procedures and techniques by which each job
will be done;
(c) Assigning these responsibilities among the several component agencies at
least to the extent that such assignment has not already been made by statute;
(d) Assuring that each responsibility is being adequately discharged;
(c) Coordinating the activities of the several component agencies in the per-
formance of these responsibilities both among themselves and with outside
agencies; and
(f) Making certain that the objectives, policies, and programs which are es-
tablished are carried out by all concerned.
4. Eliminate unnecessary duplication and overlapping in the fields of procure-
ment, supply, transportation, storage, health, and research.
5. To supervise and coordinate preparation of budget estimates of the several
components of the National Military Establishment, to determine the final budget
estimates, and to supervise the budget programs which are adopted.
Size of organization:
Number of employees, military 1,662,046, civilians 893,026.
Estimated annual expenditures for fiscal year 1949, $13,800,000,000.
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Position title: Under Secretary of Defense, National Military Establishment.
Section of bill: 2 (a).
Present salary: $12,000. Date salary established: April 2, 1949, by Public Law
36 of Eighty-first Congress.
Proposed salary: $20,000.
Incumbent: Stephen T. Early. State: District of Columbia.
Responsibilities: The National Military Establishment is still in the process of
evolution. The organization headed by the Secretary of Defense is unique to
the Government and there is no body of law, tradition, or usage which. serves as
a guide to the specific authorities and requisites of the office. The multitude of
problems to be considered, the variety of programs to be coordinated, the decisions
to be made-all make it humanly impossible for any one individual to carry the
full weight of directing the affairs of the National Military Establishment. The
Under Secretary, therefore, serves as an "alter ego' to the Secretary in all matters
and acts for him in his absence. He is specifically charged with coordinating on
;.- a day-to-day basis the activities of the agencies above the level of the three military
departments.
Position title: Special Assistant to the Secretary of Defense, National Military
~rrr~ Establishment. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: W. J. McNeil. State: Iowa.
Responsibilities: One of the strongest directives and powers given to the Secre-
tary of Defense by the National Security Act of 1947 is that of supervising and
coordinating the preparation of budget estimates of the National Military Es-
tablishment, formulating and determining the budget estimates for submittal to
the Bureau of the Budget and supervising the budget programs of the departments
and agenicies of the National Military Establishment.
It has been one of the primary responsibilities of this special assistant to carry
out for the Secretary of Defense his responsibilities in budget matters. Ile has
developed a complete budget process which coordinates all the planning of the
National Security Council, Joint Chiefs of Staff, Research and Development
Board, Munitions Board, and the departments, assuring that each annual budget
program will enable the National Military Establishment to support effectively the
foreign and domestic policy of the United States.
lie supervises for the Secretary the expenditure of funds administered by the
National Military Establishment; establishes general policies, programs, and
procedures for fiscal., cost, and other accounting; he supervises the establishment
of programs and statistical reporting procedures which provide for the Secretary
current information on the operations of the National Military Establishment.
He has been the primary motivating force in securing uniformity and simplifica-
tion of the administrative processes involved in running the National Military
Establishment. Examples of such activities are (1) the efforts made in. estab-
lishing appropriation structures which will enable the inclusion of all costs for a
particular operation in a single budget program; (2) the proposed management
fund bill, and (3) the proposed National Military Establishment Accounting Act
of 1948, both of which would simplify procedures within the Military Establish-
ment in cross-servicing activities and in common operations. In this work, the
special assistant has carried out, the programs almost entirely on his own initiative
with complete authority from the Secretary of Defense.
In general, he is responsible for establishing the policies and coordinating the
programs of budget, fiscal, reporting, and related activities of the National Mili-
tary Establishment, involving over 2,500,000 employees and an annual expendi-
ture of $13,800,000,000.
Position title: Special Assistant to the Secretary of Defense, National Military
Establishment. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: John Ohly. State: District of Columbia.
Responsibilities: Due to the complexity of the National. Military Establishment,
there are arising continually problems of major importance on which the Secretary
must take action and on which he needs expert advice, but which do not fall
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within the field of responsibility of one of his staff agencies. It has been the,
responsibility of this special assistant to secure for the Secretary this information
and guidance and act for him in the resolution of the problems. Under the
guidance of the special assistant have been carried out studies on intelligence
activities, civil defense, planning against unconventional forms of attack, internal.
security, foreign aid, politico-military affairs; and he has provided primary
guidance to the Secretary on all these matters. He has provided for the Secretary,
guidance to such specific operations as the Committee on Medical and Hospital
Services of the Armed Forces; the Advisory Commission on Service Pay; and the
Committee on Civilian Components.
The need for coordination of activities at this level is of paramount importance
and it has been the responsibility of this special assistant to make certain that the
141,
activities of each
t
o
e s
aff agencies are properly coordinated with, and related to,
the activities of all other staff agencies.
In carrying out his responsibilities, the actions taken by this Special Assistant
affect the total Establishment, involving over 2,500,000 employees and an annual
expenditure of $13,800,000,000.
Position title: Special Assistant to the Secretary of Defense, National Military
Establishment. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Marx Leva. State: District of Columbia.
Responsibilities: At the time the National Security Act of 1947 was enacted,.
the military departments had long years of history in developing their own
legislative programs. The resulting maze of laws under which the Military
Establishment had to be governed was completely confusing and one of the pri
mary responsibilities of this special assistant has been to bring order out of this.
chaos. IIc has instituted procedures which, under his active direction, now
provide a complete and coordinated legislative program for the entire Military
Establishment. It can be truly said that in the legal and legislative field the
National Military Establishment is operating on a unified basis, largely through
the personal work of this special assistant. In addition, this special assistant has
been the personal adviser to the Secretary on all legal matters and has directed a
staff which furnishes legal advice and counsel to all elements of the National
Military Establishment above the level of the military departments.
One of the major jobs carried out under his direction was a study of the several.
systems of military justice in the armed services, resulting in a recommended
uniform Code of Military Justice for the Military Establishment. Further, he
has represented the Secretary of Defense in activities leading to the consolida-
tion of NATS and ATC into the single Military Air Transport Service; in reor--
ganizing the Military Liaison Committee to th
At
e
omic Energy Commission;
and in negotiations leading to the enactment of the Selective Service Act of 1948. Aft
In all these activities, he has acted with complete authority from the Secretary
of Defense to make decisions which have the same force as decisions by the
Secretary.
In carrying out his responsibilities of coordinating and directing the legal and.
national affairs of the National Military Establishment, the policies, programs,,
and procedures which he establishes directly affect the operations of the Na
tional Military Establishment including over 2,500,000 employees and an annual
expenditure of $3,800,000,000.
Position title: Chairman, Munitions Board, National Military Establishment.
Section of bill: 3 (a).
Present salary: $14,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $18,000.
Incumbent: Donald F. Carpenter. State: Connecticut.
Responsibilities: The Chairman of the Munitions Board is responsible for
directing the industrial aspects of the activities of theNational Military Establish-
ment. With full authority delegated by the Secretary to act in his name, his is-
the responsibility for seeing that our supply program keeps pace with the strategic
and logistic-planning of the Joint Chiefs of Staff. He assures that the strategic
and logistic plans of the Joint Chiefs of Staff are feasible from an industrial and
economic standpoint-that plants and tools are available to produce the goods.
required to implement the JCS plans and that such production will not seriously-
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affect the civilian economy of the country. Through a stock-piling program, he
makes certain that adequate stocks of strategic and critical materials are on
hand in this country to enable industry to start immediate production of instru-
ments of war in the event of an emergency. By means of a reserve-plant and
machine-tool program, he assures that industry is capable of a quick change-over
from peacetime to wartime production. Ile is responsible for determining that
the policies, procedures, and programs for procurement, production, and related
activities throughout the Military Establishment are properly coordinated, do
not contain any unnecessary duplication, and generally provide for the efficient
and economical procurement, production, and distribution. of material.
Position title: Chairman, Research and Development Board, National Military
Establishment. Section of bill: 3 (a).
Present salary: $14,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $18,000.
Incumbent: Dr. Karl T. Compton, State: Massachusetts.
Responsibilities: The Chairman of the Research and Development Board is
responsible for directing the research and development aspects of the activities
of the National Military Establishment. With full authority delegated by the
Secretary to act in his name, his is the responsibility for seeing that the research
and development programs provide for the armed forces of the United States the
most advanced equipment and weapons of warfare. He advises the Joint Chiefs
of Staff on the interaction of research and development and strategy. Ile furnishes
the scientific know-how in the evaluation of proposed weapons and weapons
systems.
Ile is responsible for determining that every dollar appropriated for research
and development activities ($530,000,000 for fiscal year 1949) is so used as to
secure the maximum benefit for the National Military Establishment.
Size of organization:
Number of employees: 58 military (immediate staff only) ; 257 civilian.
Estimated annual expenditures for fiscal year 1949, $1,500,000.
Position title: Secretary of the Navy. Section of bill: 1.
Present salary: $15,000. Date salary established March 4, 1925, by Public Law
624 of Sixty-eighth Congress.
Proposed salary: $25,000.
Incumbent: Vacant.
Responsibilities: The Secretary of the Navy is directly responsible by law for
supervision of all naval affairs, the public trust for proper administration of the
Naval Establishment resting finally upon him as its top executive. This estab-
lishment involves both military and business operations extremely diverse in
character which extend over a wide portion of the world. It represents capital
investment and expenditures, personnel, plants, and operations which by a rough
comparison are almost three times the size of the United States Steel Corp.
Effective management in the public interest of an organization of this size places
upon. its executive head a responsibility without parallel in private business and
with few parallels even in government.
From the Secretary of the Navy stems the top direction, guidance, and control
which maintain the Naval Establishment in a position to bear its share of the
military task of meeting national interests and obligations, balance that position
with the Nation's economic and political situation, and provide a constant and
progressive drive for improvement in its effectiveness. He must understand
national interests and policies fully, interpret, apply, and uphold them in their
naval aspects, and by explicit policies and instructions of his own direct the Naval
Establishment so that its development and use will be in consonance with them.
The Secretary of the Navy is provided with executive and technical assistants,
both civil and military, and apportions the work of the Naval Establishment
among them in such a manner as is most efficient, varying this proportion as
circumstances dictate. He furnishes to them the policies to be followed in ad-
ministering naval affairs, and reviews and evaluates their performance for ad-
herence to these policies and for effective achievement of the missions assigned
to the Navy. He coordinates their work so that the whole is kept in balance and
consistent with the military and civil policies and objectives of the country
at large. In evaluating the performance of his assistants he is responsible for
recommending the appointment, removal, or reassignment of the incumbents of
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on
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and assignment of all other principal naval officials. His is the task of insuring
that naval strength and effectiveness is maintained sufficiently for the Nation's
needs, that its level of operations is consistent with the public interest, that such
factors as the local economic and social influence of naval installations are con-
sidered in its operations, that its money and property are administered in accord-
ance with the public trust, and that the Naval Establishment in its far-flung
activities conducts itself as a good neighbor in relations with the other Govern-
ment agencies and with the public.
Size of organization:
Number of employees, 901,462 (539,942 military; 361,520 civilian).
Estimated annual expenditures for fiscal year 1949, $4,485,000,000.
Position title: Under Secretary of the Navy. Section of bill: 2 (a).
Present salary: $10,000. Date salary established: June 20, 1940, by Public
Law 644 of Seventy-sixth Congress.
Proposed salary: $20,000.
Incumbent: W. John Kenney. State: California.
Responsibilities: As one of the Secretary's civilian executive assistants, the
Under Secretary of the Navy has as a principal responsibility that of insuring
that the business operations of the Navy are properly administered and that
sound business administration is obtained. To this end he collaborates with the
Assistant Secretaries as regards the shore establishment and with the Chief of
Naval Operations as regards the operating forces, and sees to it that the work
of all is coordinated to the best interests of economical and efficient operation.
Ile has the responsibility for the general supervision of the preparation of the
Navy budget, a business operation involving over $4,000,000,000. A balanced
distribution of funds, proper emphasis to priority programs, and adequate justi-
fication of the money required for the work of the Naval Establishment. are
factors demanding his careful attention throughout the budget's review and
analysis. Since the budget naturally is the most determining factor in prescrib-
ing the extent of naval operations, its proper preparation is of utmost importance
and requires exceeding care in each step of its construction. To the Under
Secretary has been assigned the responsibility for insuring that its preparation
follows sound principles and that its structure meets essential requirements.
The Under Secretary is responsible for the administration of the petroleum
reserves assigned to the Navy's custody, and for the direction of all petroleum
matters. The paramount importance of petroleum as a fuel extends to both the
military and civil economies and the demands of one must be tempered by the
requirements. of the other. In the event of an emergency these petroleum re-
serves provide a ready source for at least partially offsetting a sudden increase in
requirements by the armed services. To keep them in a condition of readiness,
the Navy must pursue an intensive conservation and exploratory program. j
This program is a business operation of size involving many millions of.dollars.
The Under Secretary has also the responsibility for the proper handling of the
legislative and legal matters of the Navy, which include the preparation of legis-
lation required for the administration of naval affairs and the review and careful
analysis of all proposed legislation which would affect the Naval Establishment.
The Under Secretary might well be likened to an executive vice president of a
large corporation, in that he coordinates its business operations and administra-
tion and assures by collaboration. effective business administration by the other
executive assistants of the most specialized functions assigned to their cognizance.
Position title: Assistant Secretary of the Navy. Section of bill 5: (a).
Present salary: $1.0,000. Date salary established: May 26, 1947, by Public
Law 253 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: John T. Koehler. State: Maryland.
Responsibilities: As one of the Secretary's civilian executive assistants, the
Assistant Secretary of the Navy has as his principal responsibility the super-
vision of all naval affairs which concern procurement, production, and disposition
of materials and facilities, To this end he supervises the operations of the bureaus
and offices of the Navy Department in their purchase, manufacture, or other
acquisition of materials necessary to carry out their functions; in the disposition
of materials which are in excess of their requirements; in the determination of
proper stock levels and replenishment requirements; in establishing and admin-
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 83
!storing inventory control systems which will insure the right quantities of the
right material at the right place at the right time.
Of primary significance in the Navy's material and procurement programs is
the administration of purchase assignments for a single procurement agency both
within Navy and within the National Military Establishment so that the econo-
mics of large-scale purchasing may be obtained and the waste of competitive
procurement eliminated. Also of importance is the screening of procurement
actions of one activity against material in excess of requirements at other ac-
tivities to avoid needless purchase of items already on hand.
Since the amount of the Navy's procurement and production amounts in any
one year to several billion dollars, supervision of its procurement matters is a
tremendous responsibility and one requiring constant care and attention to the
prevention of waste.
To the Assistant Secretary of the Navy are also assigned the responsibility for
Navy participation in the joint procurement activities of the National Military
Establishment, His also is the task of reviewing the requests and proposals for
new facilities to see that they are in consonance with personnel available for their
staffing. He has the responsibility for the contractual matters of the Navy in
its procurement affairs, including the leasing of facilities for industrial reserve
purposes and the preparation of industrial mobilization plans.
Position title: Assistant Secretary of the Navy for Air. Section of bill: 5 (a).
Present salary: $10,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Dan A. Kimball. State: California.
Repsonsibilities: As one of the Secretary's civilian executive assistants, the
Assistant Secretary of the Navy for Air is assigned as his principal responsibility
the supervision of the Navy's aeronautical affairs and the coordination of these
affairs with other Government agencies interested in aeronautics. With a total
inventory of 14,000 planes, over 50 air stations, and extensive plants,. over-all
facilities and personnel to man them, the Navy's aviation organization and its
operations have considerable influence on aviation in general; and its mobile
character enhances the problems of administering it so that the public good as
well as military requirements are met. As Assistant Secretary of the Navy for
Air, this official is responsible for the decisions which affect the Navy's use of the
airways and for coordination with other users in resolving the problems of air
traffic, control, regulations, and similar matters. With the growth of aviation
the Navy's active operation of over 10,000 planes presents problems requiring
constant effective collaboration with other aviation organizations, both United
States and international, and the administration of its supporting aeronautical
organization is a task of very broad scope.
No less important in their effect are the Navy's research, development, experi-
mental and testing activities, the supervision of which is also the responsibility
of the Assistant Secretary of the Navy for Air. Since these activities range widely
from fundamental research on abstract scientific subjects to the development of
specific weapons, close coordination of the programs they involve is essential to
channel them toward proper objectives and to prevent unnecessary duplication of
projects.. Many millions of dollars are spent for research and development and
close administration is necessary to insure that they are spent wisely.
Also assigned to the Assistant Secretary of the Navy for Air are the administra-
tion of civilian personnel matters and supervision of all affairs regarding naval
personnel. The Navy is one of the world's largest employers with over 350,000
civilian employees and its task of handling its relations with those employees is
correspondingly greater than that of any single industrial activity.
Position title: Executive Secretary, National Security Council. Section of bill:
2 (b).
Present salary: $10,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: Fixed by President.
Incumbent: Sidney W. Souers: State: Missouri.
Responsibilities: Under the personal. direction of the President, who is Chair-
man of the National Security Council, the Executive Secretary is responsible for
assisting the Council in advising the President with respect to the integration
of domestic, foreign, and military policies relating to the national security, by
the performance of the following functions on behalf of the Council:
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84 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
(a) Developing a program of studies and recommendations for consideration
by the council and arranging for their preparation by the Council's staff or by
other appropriate departments and agencies.
(b) Preparing and maintaining the agenda of subjects under consideration b,y.
the Council, assuring in each case that they are appropriate matters for Council
consideration.
(c) Keeping the President and other members of the Council advised concerning
all current and pending items of Council business.
(d) Arranging and attending all Council meetings, and preparing and dis
semi
ti
d
na
ng a recor
of the actions taken therein.
(e) Advising the other Council members of the President's actions with respect
to the Council's recommendations.
(f) Maintaining the official Council files and acting as the official channel of
communications and liaison between the Council and other departments, agencies,
and individuals.
The Executive Secretary is the head of the Council's staff, which assists him in
discharging the above responsibilities. Some members of the staff are employees
of the Council, while others are detailed from the participating departments and
agencies.
Size of organization:
Number of employees, 30.
Estimated annual expenditures for fiscal year 1949, $155,000.
Position title: Chairman, National Security Resources Board. Section of bill:
2 (a).
Present salary: $14,000. Date salary established: July 26, 1947, by Public Law
253 of Eightieth Congress.
Proposed salary: $20,000.
Incumbent: Vacant.24
Responsibilities: To serve as the Chairman of the National Security Resources:.
B
d
d
oar
an
to appoint and direct the staff of the Board in such programs as may
be necessary to carry out the function of the Board which is to advise the President.
concerning the coordination of military, industrial, and civilian mobilization
including:
(1.) Policies concerning industrial and civilian mobilization in order to assure
the most effective mobilization and maximum utilization of the Nation's man-
power in the event of war;
(2) Programs for the effective use in time of war of the Nation's natural and
industrial resources for military and civilian needs, for the maintenance and
stabilization of the civilian economy in time of war, and for the adjustment of
such economy to war needs and conditions;
(3) Policies for unifying, in time of war, the activities of Federal agencies and
departments engaged in or concerned with production, procurement, distribution,
or transportation of military or civilian supplies, materials, and products;
(4) The relationship between potential supplies of, and potential requirements
for, manpower, resources, and productive facilities in time of war;
(5) Policies for establishing adequate reserves of strategic and critical material,
and for the conservation of these reserves;
(6) The strategic relocation of industries, services, government, and' economic
activities, the continuous operation of which is essential to the Nation's security.
Size of organization:
Number of employees, 327.
Estimated annual expenditures for fiscal year 1949, $2,610,362.
Position title: Administrator, Philippine Alien Property Administration. Section
of bill: 5 (a).
Present salary: $10,000. Date salary established: December 9, 1946, Presidential
letter.
Proposed salary: $15,000.
Incumbent: James McInnes Henderson. State: Texas,
Responsibilities: The Philippine Alien Property Administrator is responsible
for the vesting of enemy-owned property and interests in the Republic of the
Philippines under the Philippine Property Act of 1946; and the Trading With the
24 John R. Steelman of Arkansas, the assistant to the President, has been designated by the President as
Acting Chairman. Dr. Stoelman is not on the pay roll of the Board. Mr. Mon C. Wallgren of Washington
was nominated Feb. 3, 1949 by the President for the position of chairman of the National Security
Resources Board. Mr. Wallgron's nomination is pending before the Senate.
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Enemy Act, as amended. The Philippine Property Act of 1946 extended the
provisions of the Trading With the Enemy Act to the Republic of the Philippines,
and provided that the United States should, after vesting of enemy property, pay-
ment of claims, and expenses of administration, transfer the property or proceeds
to the Republic of the Philippines. The authority and jurisdiction of the incum-
bent with respect to Philippine activities is comparable to the authority and
jurisdiction of the Director of the Office of Alien Property of the Department of
Justice (formerly Alien Property Custodian) in the United States.
The Philippine Property Act was enacted by the United States Congress and
the program was undertaken by the United States at the request of the Philippine
Government, and the enemy property or proceeds vested in this connection,
amounting to millions of dollars and consisting of great agricultural lands, manu-
facturingplants, businesses, mines, and other holdings, will according to law be
transferred to the Philippine Government. The incumbent'holds, uses, adminis-
ters, liquidates, sells these formerly enemy-owned properties in the name of the
United States. He must by statute, however, pay title and debt claims, taxes
and expenses, and defend suits in the Philippine courts. Transfers of properties
to the Republic of the Philippines are accomplished periodically and as expedi-
tiously as possible under law.
Size of organization:
Number of employees, 125.
Estimated annual expenditures for fiscal year 1949, $440,000.
Position title: Member, Philippine War Damage Commission. Section of bill:
5 (a).
Present salary: $12,000. Date salary established: April 30, 1946, by Public Law
370 of Seventy-ninth Congress.
Proposed salary: $15,000.
Incumbents: Frank A. Waring, chairman, California; John A. O'Donnell,
Pennsylvania; Francisco A. Delgado, Philippine Islands.
Responsibilities: The Commissioners are responsible for the administration of
title I and section 304 of title III of the Philippine Rehabilitation Act of 1946,
as amended. The total authorization for the payment of private and public
claims by the Commission is $457,000,000. The responsibility for title I includes
the examination, investigation, and adjudication, by April 30, 1951, of more than
1,250,000 private claims filed by individuals and organizations for war damage
in the Philippines with a claimed value of $1,215,000,000 and the review of a
claim when its adjudication has been appealed by the claimant. As of April 1,
1949, the Commission has received 10,800 appeals, or 1.5 percent of the 709,000
claims liquidated. The responsibility for section 304 of title III includes the
authorization of compensation to the Philippine Government, its political sub-
divisions, and corporate entities for loss or damage to public property as a result
of certain perils of war. The task of administering the program of rehabilitating
public-property damage, as a result of the war, is divided into two phases: (1)
The receipt, evaluation, and adjudication of claims, and (2) the servicing, control,
and evaluation of the accomplishments resulting from the granting of awards.
Commissioner Waring is the elected Chairman of the Commission and, as such,
is responsible for the administrative, fiscal, and public-relations functions of the
Commission.
Commissioner O'Donnell is responsible for the supervision of the operations of
the Bureau of Private Property Claims and the Bureau of Public Property Claims.
Commissioner Delgado is responsible for the supervision of the operations of the
Bureau of Law and Appeals.
Size of organization:
Number of employees, 951.
Estimated annual expenditures for fiscal year 1949, $167,454,904.
Position title: The Postmaster General. Section of bill: 1.
Present salary: $15,000. Date salary established: March 4, 1925, by Public Law
624 of Sixty-eighth Congress.
Proposed salary: $25,000.
Incumbent: Jesse M. Donaldson. State: Illinois.
Responsibilities: As a member of the President's Cabinet he is an adviser to
the President of the United States in matters concerning the formulation of
national policy and is appointed for and during the term of the President, and
for 1 month thereafter.
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He is the chief executive of the Postal Establishment, which is the national
postal communications arm of the Federal Government, authorized by article I,
section 8, of the Constitution of the United States.
The United States postal service is probably the largest single enterprise in
the world and one of the largest employers of civilian personnel. It handles
more than 43 billion pieces of mail matter and 975 million special service trans-
actions annually. The revenue from all. postal service operations in 1949 will.
amount to more than 1.6 billion dollars, or two and one-half times the revenue
in 1925. Its operations will cost more than 2 billion dollars and the present
number of employees is one and one-half 'times the number in 1925. More than
18 billion dollars are received and disbursed through it annually.
This postal system provides many communication and special services, including
transmission of money, to all of the 145 million citizens of the United States
through more than 47,000 local offices, and provides similar services between them
and citizens of foreign countries where such postal services are available to their
citizens. Within its ramified structure are found activities of such magnitude
as a fleet of over 1.3,000 trucks; a savings system with more than 4,000,000 de-
positors; a real-estate operation of over 3,000 Government-owned public buildings
and around 20,000 rental units; a civilian-procurement program requiring an
expenditure of approximately $60,000,000 annually for supplies, material, and
equipment.
For the purpose of making better postal arrangements with foreign countries,
he negotiates and concludes postal treaties, by and with the advice and consent of
the President, and sets postage rates thereunder, and his construction and inter-
pretation of provisions of such treaties are final and conclusive upon all officers of
the United States.
Ile is Chairman of the Board of Trustees of the Postal Savings System and with
the other two members, who are the Secretary of. the Treasury of the United States,
and the Attorney General of the United States, is responsible for the management
and investment of the postal savings funds of more than $3,000,000,000.
The execution of these responsibilities involves the planning for, the establish-
meet and provision of, postal service; the formulation of postal policy in terms of
the national interest; the appointment, instruction, and direction through sub-
ordinate officials of more than 500,000 civilian personnel in all branches of the
postal service; the interpretation and enforcement of laws of the United States as
they may apply to tb,e operation of the postal system; the planning of the postal
service to'keep in step with national progress, and to meet emergency require-
ments on a national scale; the management, of finances of the postal service; and
the accounting for his stewardship of property and money.
The proper discharge of these responsibilities is important to the national
interest because the objective of the postal service is to provide the lowest priced
and most available means of communication between the citizens of the United
States, and with their friends and relatives in foreign countries; to provide an
economical means of communication for the business community of this Nation
within the boundaries. of the United States and with foreign countries; and it
has been from the beginning of this Nation a most important means for the
dissemination of knowledge to the citizens. of this country.
In addition to the services provided directly to the citizens of the United States
for a small fee, the postal system provides many services indirectly to them by
serving other branches of their Government without charge. In time of war,
free service has been extended to members of the armed services wherever they
might be located throughout the world. These services have been rendered
with such alacrity that it has become traditional, and the citizens have learned
to expect it.
The Postmaster General is assisted in the administration of the Postal Estab-
lishment by four Assistant Postmasters General who are responsible, respectively,
for the administration of post office services, transportation of mail, postal finan-
cial operations, and services and supply; and by the Comptroller, Bureau of Ac-
counts; Director of Budget and Administrative Planning; Solicitor for the Post
Office Department; Chief Post Office Inspector; Chief Clerk and Director of Per-
sonnel; and the Purchasing Agent.
In addition to the foregoing responsibilities, the Postmaster General serves the
United States further as a statutory member of the Smithsonian Institution; as
a member of the National Archives Council; as a member of the United States
Washington and Leo University Bicentennial Commission by appointment by
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President Truman; and as a member of the Advisory Board,. Federal Interde-
partmental Safety Council.
Size of organization:
Number of employees (March 1949) : Full time, 345,903; part time, 163,-
023.; total, 508,926.
Estimated annual expenditures for fiscal year 1949, $2,072,392,872.
Position title: First Assistant Postmaster General. Section of bill: 2 (a).
Present salary: $10 330. Date salary established: July 1, 1948, by Public Law
900 of'Eightieth congress.
Proposed salary: $20,000.
Incumbent: Vincent C. Burke. State: Kentucky.
Responsibilities: The First Assistant Postmaster General is chairman of the
Postmaster General's Staff, the chief functions of which are formulation and imple-
mentation of policy respecting administration and coordination of the activities
of the bureaus and offices of the postal establishment. Ile is appointed by the
President of the United States for an indefinite term with the advice and consent
of the Senate. He functions as head of the Department in the absence of the
Postmaster General, unless otherwise directed by the President.
He is the chief administrative officer of the bureau which supervises the operation
of and authorizes expenditures for the operation of post offices, contract stations,
delivery services, and custodial services in rented and leased quarters; determines
the treatment of ordinary mail in post offices and its delivery; handles and disposes
of dead letters and parcel post.
Ile authorizes 'the establishment and discontinuance of post offices, stations
and branches. He sets standards for respective post office services and authorizes
establishment, expansion or discontinuance in conformity therewith.
As fair-employment officer for the postal field service he regulates the employ-
ment activities of the field service in compliance with the Executive order of July
26, 1948.
Acting for the Postmaster General., he selects and recommends for nomination
by the President postmasters at first-, second-, and third-class post offices. He
selects and recommends for appointment by the Postmaster General postmasters
at fourth-class post offices. Ile acts for the Postmaster General in the appoint-
ment, instruction, and direction of about 450,000 postal personnel.
The execution of these responsibilities involves direction of specialists in the
planning and development of policies for the administration of the 47,000 offices
of the postal. service through which the public is served. This, involves the de-
velopment of plans and programs for efficient and economical spending of more
than $1,300,000,000 for the operation of the postal service respecting organiza-
tion, staffing, operating, maintaining and managing every post office in the postal
service from the smallest fourth-class office which may average only a few dollars
of business in a month to the largest first-class office with average business of more
than $12,000,000 a month. This means planning not only to meet the day-to-day
demands of the public for service, but to keep pace with the expanding require-
ments of.a growing. section or a national emergency.
The proper discharge of these responsibilities is important to the national in-
terests because the purposes of the postal establishment, to provide the lowest
priced, most available and economical means of communication and other special
services, can be accomplished only through proper administration.
The activities of the Bureau are administered through the following divisions:
Division of Post Office Clerical Service, responsible for planning, administration
and budgetary control of post offices of the first, second, and third classes; Division
of City Delivery Service, responsible for planning, establishment, administration,
and budgetary control of delivery services; Division of Post Office Personnel,
responsible for all personnel management in the field, except that relating to rural
carriers and postmasters; Division of Postmasters, responsible for selection, nom-
ination and instruction of postmasters at first, , second-, and third-class offices and
the appointment of postmasters at offices of the fourth class, the handling of per-
sonnel matters affecting postmasters, the establishment of post offices, and han-
dling of service matters in connection with fourth-class post offices; Division of
Rural Delivery Service, responsible for planning and administration of the rural
delivery service; Division of Budget and Administrative Services, responsible for
financial planning and budgetary control, budget organization, work methods and
procedures analyses of bureau operations, and the annual adjustment of salaries
of postmasters.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
The First Assistant Postmaster General is a member of the'Post Office Depart-
meat Loyalty Board.
Size of organization:
Number of employees (March 1949) : Full time. 296,448; part time, 149,827;
total, 446,275.
Estimated annual expenditures for fiscal year 1949, $1,370,154,534.
Position title: Second Assistant Postmaster General. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 1, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Paul Aiken. State: Kansas.
Responsibilities: The Second Assistant Postmaster General is a member of the
Postmaster General's staff and participates in the formulation and implementation
of policy concerning the operation of the postal establishment and is appointed
by the President of the United States for an indefinite term by and with the advice
and consent of the Senate. He assumes all of the responsibilities and performs
all of the duties of the Postmaster General in the absence of that official and the
First Assistant Postmaster General, unless otherwise directed by the President.
He is the chief administrative officer of the Bureau of Postal Transport and
plans, procures, and directs the use of surface and air transportation within and
between the United States and its Territories and between the United States and
foreign countries. He is the representative of the Postmaster General in negoti-
ating and concluding postal treaties with foreign countries and administers the
International Postal Service. He selects means and methods of routing mail and
establishes time schedules controlling its movemolit and distribution en route.
Ile plans and budgets financial requirements for postal transport and authorizes
papment under appropriations therefor. Ile represents the Postmaster General in the
appointment and instruction through various subordinate officials of the service
more than 33,000 personnel employed in mail transportation activities. In the
planning of transportation requirements he selects sites for terminal post-office
-facilities and negotiates leases therefor.
Transportation of mail is performed by railroads, electric cars, steamships,
powerboats, mail messengers, star routes, highway post offices, and air carriers,
which will cost more than $500,000,000 in 1949.
The execution of these responsibilities involves the planning for, and provision
of, transportation service to meet requirements of normal growth and emergency
conditions; implementation of postal policy in terms of the national interest;
appointment, instruction, and direction through subordinate officials of the
personnel employed in transportation of mails.
The proper discharge of these responsibilities is important to the national
interest because of the vast stake the Post Office Department has in the economy
and security of the Nation through the postal transport system, particularly in
light of the staggering implications of air transportation operating, developing,
and expanding for world-wide coverage.
The affairs of the Bureau are administered through the following offices: Office
of Surface Postal Transport responsible for surface transportation of mails in the
continental United States, territories, and possessions; Office of Air Postal Trans-
port responsible for all mail. transportation by aircraft of all types in the domestic
and foreign air postal transport system; Office of International Postal Service
responsible for the entire operation of international postal service embracing the
exchange of mails with foreign countries and the making of agreements and
arrangements in the name of the United States with foreign postal administra-
tions; Office of Administrative Services responsible for the verification and author-
ization of the payment of claims for the transportation of mails, improvement in
systems and procedures of the Bureau, and the preparation of budget estimates.
The Second Assistant Postmaster General is a member of the Air Coordinating
Committee and its Panel on International Civil Aviation Organization; Inter-
agency Committee on Development of Alaska; Liaison and Technical Committees
of the Universal Postal Union; and the Transportation Committee of the National
Security Resources Board. Ile represents the Postmaster General at congresses
of the Universal Postal Union, the Postal Union of the Americas and Spain, and
the Universal Postal Union at meetings of the United Nations. He is contact
and liaison officer with the State Department and the Office of International
Trade.
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Size of organization:
Number of employees (March 1949): Full time, 25,964; part time, 7,096;
total, 33,060.
Estimated annual expenditures for fiscal year 1949, $501,672,047.
Position title: Third Assistant Postmaster General. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 1, 1948, by Public Law 900
of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Joseph J. Lawler. State: Pennsylvania.
Responsibilities: The Third Assistant Postmaster General is a member of the
Postmaster General's staff and participates in the formulation and implementa-
tion of policy concerning the operation of the postal establishment. He is ap-.
pointed by the President of the United States for an indefinite term by and with
the advice and consent of the Senate. He functions as head of the Department
in absence of the Postmaster General, the First Assistant and Second Assistant
Postmasters General, unless otherwise directed by tle President.
He is the chief finance officer of the postal service and through subordinate
officials administers the Bureau which supervises all postal financial operations
Napo, and many special services. Ile determines the manner of handling the financial.
operations of the post office and money order services, controlling through sub-
ordinate officials the movement of cash throughout the postal service.
He interprets the application of the financial provisions of laws relating to the
postal service, including postal rate legislation and establishes mail classifications
for the protection of postal revenue.
He advises the Postmaster General and Congress on matters concerning postage
rates and controls the use of the free mailing privileges. Ile controls the manu-
facture and distribution of stamps and stamped paper, administers the philatelic
activities of the postal service, and authorizes the use of the second-class mail
privilege and the issuance of permits for metered and nonmetered mail.
As agent of the Postal Savings System he is responsible for the stewardship of
all funds and the operation of the system. Ile also directs and accounts for the
sale of savings bonds and stamps and documentary stamps by the postal system
for the United States Treasury, and migratory bird stamps for the Department
of the Interior.
He administers the domestic and international money order system, This not
only involves the movement of large sums of money within the United States and
territories, but extensive dealing in foreign exchange.
He regulates the manner of performance respecting insurance, registry service.
and collect-on-delivery mail and the payment of indemnities for damage or loss
thereunder.
Revenues in 1949 are two and one-half times and expenditures are more than
three times those in 1925. At present nearly three times as much money flows
through the postal system as in 1925.
The execution of the foregoing responsibilities involves direction of specialists
in determination of and planning for the funds required of each of the 47,000,
offices of the postal. service and financial management respecting post office,
money order, and postal-savings services; in the regulation for receipt of, move-
ment, and safe-keeping of funds throughout the service; in interpretation of legal
requirements respecting classification, admissibility and rating of mail matter; in
the determination of and planning for the use of stamps and stamped paper,
including the design, procurement, distribution, sale and accounting for postage
stamps, which represent 66 percent of postal revenue; in the purchase and sale of
foreign exchange; and in the discharge of the fiduciary responsibilities respecting
both money order and postal savings funds.
The proper discharge of these responsibilities is important to the national
interests because the purpose of the postal establishment, to provide the lowest
priced, most available and economical means of communication and other special
services, can be accomplished only through proper financial management.
The affairs of the Bureau are. administered through heads of the following
divisions: Division of Postal Finances, responsible for receipts, disbursements
and accounting for postal funds and for maintenance of methods and procedures
for the handling of postal finances from origin to disposition according to the laws
of Congress, the decisions of the Comptroller General of the United States, and
Treasury Department regulations; Division of Postal Savings Banking and
Investments, responsible for administration of the entire postal savings system
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Approv fl F9 1NA129pO
A 1 OIV OF HEADS OF DEPARTMENTS
and investment of the funds derived therefrom, control of the sale of United States
savings bonds and stamps in post offices, and the handling and accounting for
the proceeds from such sales; Division of Stamps and Philately, responsible for
the procurement, manufacture, and distribution of stamps, stamped paper, and
postal cards and the examination, verification, adjustment, certification, and
settlement of accounts due contractors; Division of Letter and Miscellaneous
Mail, responsible for determination of the classification of mail of the first, third,
and fourth classes, including collection of and accounting for such postage, as
well as administration of the laws and regulations governing penalty, franking,
and other free mailing privileges; Division of Newspaper and Periodical Mail,
responsible for administration of all matters pertaining to the entry of publications
as second-class matter, their right to continue therein, and supervision of the
collection of postage on such matter; Division of Money Orders, responsible for
management and conduct of the domestic and international money order services,
including the issuance and payment of postal notes; Division of Registered,
Insured, and C. 0. D. Mail, responsible for management and operation of the
registry, insurance, and c. o. d. services, the collection of foes therefor, and the
adjustment of claims for indemnity to cover loss or damage arising therefrom;
Division of Administrative Services, Parcel Post and Budget, responsible for the
planning and scheduling of projects for the examination of organization methods,
prodecures, forms, and services and the development of new services and methods
affecting the operations of the Bureau, the preparation of budget estimates, and
the study and consideration of matters relating to development of the.parcel post
system and methods designed to improve this system.
In addition to the foregoing responsibilities, the Third Assistant Postmaster
General is a member of the Interdepartmental Committee for Voluntary Pay-roll
Savings Bonds and the Post Office Department Loyalty Board.
Size of organization:
Number of employees (March 1949), 429.
Estimated annual expenditures for fiscal year 1949, $18,080,988.
Position title: Fourth Assistant Postmaster General. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 1, 1.948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Walter Myers. State: Indiana.
Responsibilities: The Fourth Assistant Postmaster General is a member of the
Postmaster General's staff and participates in the formulation. and implementation
of policy concerning the operation of the postal establishment. He is appointed
by the President of the United States for an indefinite term by and with the advice
and consent of the Senate. He functions as head of the Department in the absence
of the Postmaster General and the other Assistant Postmasters General unless
otherwise directed by the President.
He is the chief administrative officer of the Bureau which is responsible for the
engineering research affecting the use of space and equipment by the postal
service; the equipment and supplies used in the operations of the postal service;
the procurement standards and specifications, inspection, custody, and distribu-
tion of equipment and supplies; the administration and operation of Government-
owned post-office buildings; the leasing or renting of quarters for post-office units
not housed in Federal buildings; the administration and operation of local trans-
portation of mail by pneumatic tube and Government-owned and rented vehicles;
the production and distribution of post-route maps; the manufacture and repair
of mail-bag and lock equipment; the traffic management involved in transportation
of equipment, material, and supplies for the postal establishment.
He represents the Postmaster General on the Interdepartmental Committee
on Public Buildings in joint action with the Federal Works Agency in the selection
of sites and planning construction of public buildings that will be used for postal
operations.
The execution of these responsibilities involves financial planning and budgetary
control and coordination of all operations with activities of other bureaus; engi-
neering research and planning for the provision of adequate and economical
utilization of space for post-office operations; the acquisition of the necessary
supplies and equipment to meet the specialized requirements of the postal service;
and the exercising of technical supervision over the activities in the field under
the jurisdiction of the Bureau.
The proper discharge of these responsibilities is important to the national
interest because the purpose of the postal establishment to provide lowest priced,
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INCREASING COMPENSATION A S P + A ,
most available and economical moans of communication and other special services,
can be accomplished only through the uninterrupted flow of necessary equipment,
materials, supplies, and services, and the research and planning for their most
econon ical.procurement and use.
The affairs of the Bureau are administered through the heads of the following
divisions: Division of Equipment and Supplies, responsible for planning, budget-
ary control, specifications and standards, procurement and distribution of the
supplies and equipment used in the operation of the postal service: Division of
Federal Building Operations, responsible for planning, budgetary control, stand-
ards and specifications for management and operation of 3,262 Government-owned
buildings housing large postal units and-field offices of other Government depart-
ments, including personnel management for 19,800 employees; Division of
Engineering and Research, responsible for technical and mechanical research,
planning, and development relating to utilization of postal space in Federal
buildings including the installation and design of all mechanical equipment; en-
ginecring, installation, and lay-out problems related to quarters; detailed plans
of screen lines; design and supervision of installation of conveyors, and other labor-
saving devices; Division of Motor Vehicle Service, responsible for the planning,
budgetary control, standards, specifications, and inspection of equipment and
supplies, and authorization, operation, and maintenance of 13,000 Government-
owned motor vehicles and rented vehicles and the pneumatic-tube service, includ-
ing personnel management for.6,600 employees and provision of transportation
for special delivery service; Division of Topography, responsible for design,
compilation, production, and distribution of post-route maps, county and local
maps; Division of Mail Equipment Shops, responsible for management, budgetary
control, procurement and inspection of materials and supplies, and personnel
management for 540 employees for manufacture and repair of mail-bag and
lock equipment; Division of Traffic, responsible for budgetary control, traffic
management including routing and rating for the shipment of equipment, material,
and supplies; Division of Post Office Quarters, responsible for budgetary control,
planning for space utilization, and negotiating for the leasing or renting of quarters
for 20,000 postal. units not. housed in Federal buildings.
The Fourth Assistant Postmaster General is a member of the Federal: Fire
Council as well as the governing body of that Council; the Federal Interdepart-
mental Safety Council; and the Post Office Department Loyalty Board.
Size of organization:
Number of employees (March 1949) : Full time, 21,365; part time, 6,099;
total, 27,464.
Estimated annual expenditures for fiscal year 1949, $170,332,574.
Position title: Member, Railroad Retirement Board. Section of bill: 4.
Present salary: $10,000. Date salary established: August 29, -1935, by Public
Law 399 of the Seventy-fourth Congress.
Proposed salary: $16,000.
Incumbent: William J. Kennedy, Chairman. State: Ohio.
Responsibilities: The Board members, acting collectively, exercise all of the
duties and powers conferred by the Railroad Retirement Act of 1937 and the
Railroad Unemployment Insurance Act which provide (a) retirement benefits for
aged and disabled railroad employees and benefits for their survivors; and (b)
unemployment, maternity, and sickness insurance benefits for such employees.
Total employees covered by both programs number approximately 8,000,000. As
of the close of the fiscal year 1949 fund balances were approximately $2,600,000,000.
The Board is responsible for the certification of benefit payments aggregating
approximately $400,000,000 annually; the collection of contributions from
employers for payment of unemployment-insurance benefits; the operation of a
system of free employment offices and the promotion of vocational training so as to
reduce unemployment; entrance into agreements with State, Federal, and foreign
agencies conducting similar programs so as to coordinate all phases of related
operations; entrance into agreements with employers, employee organizations,
hospitals, clinics, and others for use of facilities for taking benefit claims and
conducting physical, mental, and other types of examinations of claimants; and
appointment of advisory councils and the conduct of research projects to aid in
the formulation of Board policies, programs, and recommendations of amendatory
legislation. The members acting collectively also determine the structure of the
administrative organization and personnel policies; review requests for appro-
priations totaling approximately 600 to 800 million dollars annually, including
40 to 12 million dollars for administrative expenditures; authorize all litigation by
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
or in behalf of-the Board; and serve as the court of final administrative appeal for
employees of the administrative organization and employers and employees
covered by the acts.
In addition to his duties as a member of the Board, outlined above, the Chair-
man is the presiding officer at Board meetings; concludes formal agreements with
States, employers, and others; furnishes information concerning Board policies
and operations requested by the President, the Director of the Budget, the Com-
troller General, and chairmen of the various committees of the Congress,appears
before appropriations committees of the Congress at hearings on Board requests
for annual and deficiency appropriations; as circumstances require, conducts
negotiations on administrative matters with the heads of other Government
agencies; furnishes to the Bureau of the Budget the Board's views on pending
legislation affecting the administration of the Railroad Retirement Act and the
Railroad Unemployment Insurance Act and appears before committees of the
Congress holding hearings on such legislation to give testimony on behalf of the
Board.
Size of organization:
Number of employees, 2,550.
Estimated annual expenditures for fiscal year 1949, $369,800,000.
Position title: Member, Railroad Retirement Board. Section of bill: 4
Present salary: $10,000. Date salary established: August 29, 1935 by Public Law
399 of Seventy-fourth Congress.
Proposed salary: $16,000.
Incumbents: Julius G. Luhrsen (railroad labor member), Illinois; Frank C.
Squire (railroad member), Illinois.
Responsibilities: The Board members, acting collectively., exercise all of the
duties and powers conferred by the Railroad Retirement Act of 1937 and the Rail-
road Unemployment Insurance Act which provide (a) retirement benefits for aged
and disabled railroad employees and benefits for their survivors; and (b) unem-
ployment-, maternity-, and sickness-insurance benefits for such employees. Total
employees covered by both programs number approximately 8,000,000. As of
the close of the fiscal year 1949 fund balances were approximately $2,600,000,000.
The Board is responsible for the certification of benefit payments aggregating
approximately $400,000,000 annually; the collection of contributions from
employers for payment of unemployment-insurance benefits; the operation of a
system of free employment offices and the promotion. of vocational training so
as to reduce unemployment; entrance into agreements with State, Federal and
foreign agencies conducting similar programs so as to coordinate all phases of
related operations; entrance into agreements with employers, employee organi-
zations, hospitals, clinics and others for use of facilities for taking benefit claims
and conducting physical., mental and other types of examinations of claimants;
and appointment of advisory councils and the conduct of research projects to aid
in the formulation of Board policies, programs, and recommendations of amenda-
tory legislation. The members acting collectively also determine the structure.of
the administrative organization and personnel policies; review requests for appro-
priations totaling. approximately 600 to 800 million dollars annually, including
10 to 12 million dollars for administrative expenditures; authorize all litigation
by or in behalf of the Board; and serve as the court of final administrative appeal
for employees of the administrative organization and employers and employees
covered by the acts.
Size of organization:
Number of employees, 2,550.
Estimated annual expenditures for fiscal year 1949, $369,800,000.
Position title: Chairman, Board of Directors, Reconstruction Finance Corpora-
tion. Section of bill: 4.
Present salary: $15,000. Date salary established: June' 30, 1947, by Public
Law 132 of Eightieth Congress.
Proposed salary: $16,000.
Incumbent: Harley Hise. State: California.
Responsibilities: The direction and management of RFC, including its 31 loan
agencies, is vested in a Board of Directors consisting of 5 persons appointed by the
President, by and with the consent of the Senate. The Chairman of the Board of
Directors, designated by the President, is the chief executive officer of the Corpora-
tion, and is charged with the responsibility of general executive supervision, in an
operating capacity, of the affairs of the Corporation as?described below.
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Lending operations: The normal peacetime loan and investment program of the
Corporation embraces the making of direct business loans and participations with
banks and other lending institutions in such loans, including loans to foster and
develop small business enterprises and loans to railroads, air lines and other
common carriers, public agencies, financial institutions, castastrophe loans,
provision for a secondary market for FIIA-insured and VA-guaranteed mortgage
loans through its subsidiary; the Federal National Mortgage Association. From
1932 through March 31, 1949, the Corporation authorized loans aggregating
approximately $21,000,000,000. The Corporation had outstanding as of March
31, 1949, loans (excluding the purchase of FIIA-insured and VA-guaranteed mort-
gage.loans),of $747,784,961. As of the same date the Corporation had in port-
folio, or committed itself to purchase, FIIA-insured and VA-guaranteed mortgage
loans of $696,954,986.
Production and sales of synthetic rubber: Synthetic rubber is produced under
the Rubber Act of 1948 and Executive Order 9942, through the operation and
maintenance of 34 plants, representing a capital investment of over $500,000,000.
Practically all the synthetic rubber consumed in the United States is produced in
these plants, with current annual production and sales exceeding 400,000 long tons
at a cost of approximately $200,000,000.
Production, purchases and sales of tin: This program includes the operation
and management of the Texas City tin smelter under Public Law 125, as amended
by Public Law 824, both of the Eightieth Congress. This smelter is a unique
facility and produces a large proportion of the Nation's current annual industrial
requirements of tin metal. Production is dependent upon the acquisition of the
requisite tin-bearing materials from highly competitive sources in the foreign
market. For the current fiscal year acquisition of materials in the form of ores,
concentrates and metal will aggregate approximately $200,000,000. Both opera-
tions, production, and sales, are subject to close supervision by the RFC Directors.
Liquidation of war activities: This includes the disposal of plants and properties,
of which 83, valued at approximately $99,000,000, are under leases expiring over
the next 30 years; sales of $8,000,000 of properties under expired leases; liquidation
of miscellaneous claims and accounts aggregating approximately $82,000,000, such
claims and accounts arising out of the wartime operations of RFC's former sub-
sidiaries, plus approximately $27,000,000 of liabilities arising from the same
source. There are also approximately $28,000,000 of contingent assets and lia-
bilities, many of which are presently the subject of litigation.
Except as otherwise provided by law, the Directors of the Corporation deter-
mine the necessity for, and the character and amount of, its obligations and
expenditures under the RFC Act, and the manner in which they are incurred,
allowed, paid, and accounted for, without regard to the provisions of any other
laws governing the expenditure of public funds, and such determinations are final
and conclusive upon all other officers of the Government. Since 1932, the
Directors have authorized the expenditure (including wartime activities) of
approximately $42,500,000,000, and under existing law for new business since
June 30, 1947, are authorized to have outstanding at any one time in normal
lending operations $2,050,000,000.
Size of organization:
Number of employees, 4,575 (as of March 31, 1949).
Estimated annual expenditures for fiscal year 1949,,$1,000,000,000 (approx-
imately).
Position title: Member, Board of Directors, Reconstruction Finance Corpora-
tion. Section of bill: 5 (a).
Present salary: $12,500. Date salary established: June 30, 1947, by Public Law
? 132 of the Eightieth Congress.
Proposed salary: $15,000.
Incumbents: Walter L. Dunham, Michigan; Harvey J. Gunderson, South Dakota;
Renry A. Mulligan, New York; William E. Willett, Maryland.
Responsibilities: The direction and management of RFC is vested in a Board
of Directors consisting of five persons appointed by the President by and with the
advice and consent of the Senate. The Directors are charged jointly with the
Bole responsibility.-in an executive operating capacity, for carrying out the. duties
and activities of tie Corporation described below:
Lending operations: The normal peacetime loan and investment program of
the Corporation embraces the making of direct business loans and participations
with banks and other lending institutions in such loans, including loans to foster
and develop small business enterprises and loans to railroads, air lines, and other
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9. INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
common carriers, public agencies, financial institutions, catastrophe loans, pro-
vision for a secondary market for FIIA-insurod and VA-guaranteed mortgage
loans through its subsidiary, the Federal National Mortgage Association. From
1932 through March 31, 1949, the Corporation authorized loans aggregating
approximately $21,000,000,000. The Corporation had outstanding as of March
31, 1949, loans (excluding the purchase of FHA-insured and VA-guaranteed
mortgage loans) of $787,784,961. As of the same date the Corporation had in
portfolio, or committed itself to purchase, FIIA-insured and VA-guaranteed
mortgage loans of $696,954,986.
Production and sales of synthetic rubber: Synthetic rubber is produced under
the Rubber Act of 1948 and Executive Order 9942, through the operation and
maintenance of 34 plants, representing a capital investment of over $500,000,000.
Practically all the synthetic rubber consumed in the United States is produced
in those plants, with current annual production and sales exceeding 400,000 long.
tons at a cost of approximately $200,000,000.
Production, purchases, and sales of tin: This program includes the operation
and management of the Texas City tin smelter under Public Law 125, as amended
by Public Law 824, both of the Eightieth Congress. This smelter is a unique
facility and produces a large proportion of the Nation's current annual industrial
requirements of tin metal. Production is dependent upon'the acquisition of the
requisite tin-bearing materials from highly competitive sources in the foreign
market. For the current fiscal year acquisition of materials in the form of ores,
concentrates, and metal will aggregate approximately $200,000,000. Both opera-
tions, production, and sales are subject to close supervision bythe RFC Directors..
Liquidation of war activities: This includes the disposal of plants and properties,
of which 83, valued at approximately $99,000,000, are under leases expiring over
the next 30 years; sales of $8,000,000 of properties under expired leases; liquida-
tion of miscellaneous claims and accounts aggregating approximately $82,000,000,
such claims and accounts arising out of the wartime operations of RFC's former
subsidiaries, plus approximately $27,000,000 of liabilities arising from the same
source. There are also approximately $28,000,000 of contingent assets and liabil-
ities, many of which are presently the subject of litigation.
Except as otherwise provided by law, the Directors of the Corporation deter-
mine the necessity for, and the character and amount of, its obligations and
expenditures under the RFC Act, and the manner in which they are incurred,
allowed, paid, and accounted for, without regard to the provisions of any other
laws governing the expenditure of public funds, and such determinations are final
and conclusive upon all other officers of the Government. Since 1932, the Direc-
tors have authorized the expenditure (including wartime activities) of approxi-
mately $42,500,000,000, and under existing law for new business since June 30,
1947, are authorized to have outstanding at any one time in normal lending opera-
tions $2,050,000,000.
Size of organization:
Number of employees: 4,575 (as of March 31, 1949).
Estimated annual expenditures for fiscal year 1949, $1,000,000,000 (ap-
proximately).
Position title: Member, Securities and Exchange Commission. Section of bill: 4.
Present salary: $10,000. Date salary established: June 6, 1934, by Public Law 291
of Seventy-third Congress.
Proposed salary: $16,000:
Incumbents: Edmond M. Hanrahan, New York; Richard B. McEntire, Kansas;
Robert K. McConnaughey, Ohio; Harry A. McDonald, Michigan; Paul R.
Rowen, Massachusetts.
Responsibilities: The Commission administers seven statutes which provide for
a variety of work in connection with corporate financing; the regulation of stock
exchanges; the supervision of trading in securities both on stock exchanges and in
the over-the-counter markets; the reorganization of gas and electric public utility
holding company systems to simplify their security structures, to distribute voting
power equitably, and to integrate their properties geographically; the qualifica-
tion of trust indentures underlying the issues of the debt; the regulation of certain
activities of investment advisers and the supervision of internal financial affairs
of investment companies; and the rendition of advice to Fi deral courts in corpo-
rate reorganization proceedings arising under chapter X of the Bankruptcy Act.
The Commissioners participate in the quasi-judicial adjudication 'of individual
rights and duties and affairs of companies and their security holders, often invojv-
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ing large sums of money. Whether calling for direct regulatory action or deter-
mination of the adequacy of disclosure the problems may involve law, accounting,
financial analysis, domestic and foreign economics, or engineering. Each Commis-
sioner bears primary responsibility for full understanding, sound judgment, and
fair administration in deciding matters as a body. The conduct of the Commis-
sion vitally affects individual and economic welfare and is exposed to public
scrutiny in courts and through extensive news coverage.
Some of the effects of the Commission's administration upon the particular
fields it regulates and upon the national economy, as well as the multitude of
individual actions involved, may be envisioned by these summary figures:
Securities Act of 1933, issues of securities for public sale:
I year, fiscal 1948
As originally filed_____________________________________
$6,
149,
704,
287
As effective__________________________________________
5,
675,
723,
016
Trust Indenture Act, securities covered by indenture:
As originally filed_____________________________________
2,
554,
029,
380
As effective------------- -_-_---_-__-___-__-__
2,
445,
903,
580
Approximate assets of registered investment companies--------
3,
825,
000,
000
Assets of public utility holding company systems under the Com-
mission's jurisdiction------------------------------------
14,
574,
000,
000
Total market value of stock sales on national stock exchanges---
orate reor
anizations under ch
C
r
X of th
B
k
t
A
t
13,
932,
441,
000
g
o
p
.
rup
e
an
cy
c
:
Assets----------------------------------------------- 1, 744,
674,
000
Indebtedness_________________________________________ 1, 130,
548,
000
Size of organ zation:
Number of employees, 1,150.
Estimated annual expenditures for fiscal year 1949, $5,826,140.
Position title: Director, Selective Service. Section of bill: 5 (a).
Present salary: $12,500. Date salary established: June 24, 1948, by Public Law
759 of Eightieth Congress.
Proposed salary: $1.5,000.
Incumbent: Maj. Gen. Lewis B. Hershey. State: Indiana.
Responsibilities: The Director of Selective Service is the head of the Selective
Service System and is responsible directly to the President for the organization
and administration of the Selective Service System, established by title I of the
Selective Service Act of 1948, which consists of a national headquarters; 54 State
headquarters in the States, Territories, possessions, and District of Columbia;
54 appeal boards, and 3,659 local boards.
The Director of Selective Service is responsible for the carrying out of the
functions of the Selective Service System under title I of the Selective Service
Act of 1948, which include the registration, examination, classification, delivery
for induction, and maintenance of records of the male persons ages 18 to 26 who
are required to register under the provisions of that title; the preservation and
servicing of the 50,000,000 individual records of persons who registered under the
Selective Training and Service Act of 1940, as amended, and the preservation of
the knowledge and methods of Selective Service.
Size of organization:
Number of employees, 5,943 compensated; 36,697, uncompensated.
Estimated annual expenditures for fiscal year 1949, $27,476,700.
Position title: Secretary of State. Section of bill: 1.
Present salary: $15,00.0. Date salary established: March 4, 1925, by Public Law
624 of Sixth-eighth Congress.
Proposed salary: $25,000.
Incumbent: Dean Acheson. State: Maryland.
Responsibilities: The Secretary of State, who is the highest ranking Cabinet
member, serves as principal adviser to the President in the determination and
execution of United States foreign policy, and has general direction over all the
functions, of the Department and the Foreign Service.' He has custody of the
Seal of the.United States, conducts correspondence with the States of the Union
on the ratification of proposed amendments to the Constitution and on the ascer-
tainment of Presidential electors, and publishes laws enacted by Congress.
Size of organization:
Number of employees, 21,672 positions.
Estimated annual expenditures for fiscal year 1949, $317,512,941.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Position title: Under Secretary of State. Section of bill: 2 (a).
Present salary: $12,000. Date salary established: June 3,1948, by Public Law
597 of Eightieth Congress.
Proposed salary: $20,000.
Incumbent: James E. Webb. State: North Carolina (District of Columbia).
Responsibilities: The Under Secretary of State serves as the principal adviser
and assistant to the Secretary in the formulation, determination, and execution
of United States foreign policy. The Under Secretary is the second ranking
officer in the Department and in the absence of the Secretary serves as Acting
Secretary of State.
Position title: Assistant Secretary of State, Assistant Secretary for Economic
Affairs. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Willard L. Thorp. State: Connecticut.
Responsibilities: The Assistant Secretary for Economic Affairs advises and
assists the Secretary in the development and implementation of foreign economic
policy with respect to international trade, finance, transportation, communica-
tions, and economic and social development and security.
In these respects, the Assistant Secretary is responsible for the effective per-
formance of the following functions:
1. Initiating, formulating, and coordinating foreign economic policy and action,
and the implementing of such policy and action determinations.
2. Providing an economic policy information service for editing and publishing
periodic and special economic reports and summaries of activities and policy
positions of the economic offices of the Department, for the use and guidance of
the Department, the Foreign Servi^e, and other interested Government agencies.
3. Forecasting and bringing to the attention of high-level interdepartmental
committees for consideration and policy recommendations problems arising in
the Federal agencies that involve United States foreign economic and social
relations.
4. Providing departmental representation on foreign economic and social
affairs in international conferences and in connection with the negotiation and
implementation of international treaties and agreements.
The Assistant Secretary participates at the highest level with the Secretary
and Under Secretary in the formulation of the United States foreign policy and
in the administration of the Department and the Foreign Service.
Position title: Assistant Secretary of State, Assistant Secretary for Congressional
Relations. Section of bill: 5 (a).
Present salary: $10 330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Ernest A. Gross. State: New York.
Responsibilities: The Assistant Secretary for Congressional Relations collab-
orates closely with the Secretary, Under Secretary, and Assistant Secretaries on
major policy and program considerations. He advises and assists the Secretary
and Under Secretary in determining current and long-range foreign policy.
The Assistant Secretary is responsible for the maintenance of liaison with the
Congress and the Bureau of the Budget in connection with the development and
implementation of United States foreign policy. His authority includes directing
consultation with Members of the Congress concerning foreign policy develop-
ments, legislative proposals and related matters, including testimony before
congressional committees; correspondence with Members of the Congress and
with Government officials and private individuals concerning congressional
matters; development of the Department's legislative program and the pres-
entation of legislative proposals, and treaties and other international agreements
to the Congress; and maintenance of liaison with the Bureau of the Budget in
connection with legislative reports to Congress, proposals for legislation and
related matters.
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Position title: Assistant Secretary of State, Assistant Secretary for Public Affairs.
Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: George V. Allen. State: North Carolina.
Responsibilities: The Assistant Secretary for Public Affairs serves as the
principal adviser to the Secretary of State with regard to the development and
implementation of (1) international information and educational exchange pro-
grams as authorized by Public Law 402; and (2) domestic information programs
designed to inform the American public concerning foreign relations.
The area of responsibility of the Assistant Secretary for Public Affairs includes
the following: United States participation in UNESCO, including the furnishing
of secretariat services to the National Commission; liaison with the United States
Advisory Commission on Information and the United States Advisory Commis-
I- sion on Educational Exchange and the furnishing of secretariat services to these
Commissions; the preparation and distribution of material regarding the American
way of life to foreign audiences through the media of radio, motion pictures, press,
photographs, film strips, and publications, including the broadcast operations of
the Voice of America, the issuance of daily State Department Wireless Bulletin,
and the publication of the Russian-language magazine Amerika; the cooperation
with other nations in the interchange of knowledges and skills, the rendering of
technical services, and the interchange of developments in education, the arts,
and sciences, including the furnishing of a secretariat for the Interdepartmental
Committee on Scientific and Cultural Cooperation, the maintenance of overseas
libraries and institutes, the achninistration of exchange of pesens and programs
under the Falbright Act and other laws; the direction of domestic public infor-
mation programs designed to furnish the American people with information on
United States foreign policy, and to provide the Department with accurate
knowledge and understanding of public opinion with regard to foreign policy
issues; the direction of a program of historical research studies in the field of
American foreign policy and American displomatic relations; and the direction
of the Department's publications program, which includes the publication of the
annual volumes entitled "Foreign Relations of the United States," the State
Department Bulletin, and other periodicals.
He directs the relations of the Department of State with other Federal agencies
on all above matters.
He is responsible for stimulating and facilitating the activities of public and
private agencies in carrying out the above responsibilities.
Position title: Assistant Secretary of State, Assistant Secretary for Administra-
tion. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: John E. Peurifoy. State: Virginia.
Responsibilities: The Assistant Secretary for Administration advises and assists
the Secretary in the development and formulation of over-all organizational,
administrative, and budgetary policies for the Department, the Foreign Service,
and such special programs as may be vested in the Department of State or the
Secretary by statute, Executive order, or otherwise; for executing and implement-
ing policies so developed; and for providing the necessary facilities to implement
policies approved by the Secretary.
In these respects, the Assistant Secretary is responsible for the effective per-
formance of the following functions:
1. Supervision and control over the organization of the Department, the
Foreign Service, and special programs, and their component offices, divisions,
and other units.
2. Exercise of the authority vested in the Secretary of State or the Department
of State; by Statute, Executive order, or otherwise, to allocate funds made
available to the Secretary or the Department.
3. Prepai ation of annual budget estimates; and supervision over the use of and
accounting for appropriated funds, in accordance with congressional limitations,
administrative objectives, and policies of the President and the Secretary..
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INC1tEASI C P SA 0 OF ADS D+ A
and Under Secretary in the formulation of the United States foreign policy and
in the administration of the Department and the Foreign Service.
Position title: Assistant Secretary of State, Assistant Secretary of State for
Political Affairs. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law 900?
of Eightieth Congress.
Proposed salary: $15,000.
Incumbent: Dean Rusk.25. State: Virginia.
4. Direction of personnel management of the Department, the Foreign Service,
and the special programs, including training and educational programs for the
Foreign Service and departmental personnel.
5. Operation of the procurement, communication, cryptographic, transporta-
tion, and language interpretation and translation services.
6. Provision, maintenance, and operation of the physical establishments in the
United States and abroad.
7. Provision of physical and personnel security within the Department, the
Foreign Service, and the special programs.
8. Protection of American interests through administration of passport, visa,
and munition-control, laws and programs, and other pertinent laws.
The Assistant Secretary participates at the highest level with the Secretary
and assists the Secretary in the formulation and coordination of policy and action
for the conduct of United States relations with the various nations of the world,
taking the initiative in affairs primarily political, and, in other affairs, stimulating
the functional offices of the Department and other Federal agencies charged with
primary responsibility in specialized fields.
He controls the activities of and gives final approval to policy recommendations
emanating from the several offices established on a geographical basis engaged in:
1. Developing basic policies to govern the conduct of United States relations.
with countries and areas under their respective jurisdiction.
2. Reviewing and evaluating programs and activities of other offices of the
Department and other: Federal agencies as they affect the political situation in a
particular area.
3. Directing and instructing United States Foreign Service establishments in
the countries and areas within their jurisdiction.
4. Maintaining close relationships with appropriate foreign diplomatic missions.
in the United States and at international conferences.
The Assistant Secretary participates at the highest level with the Secretary and
Under Secretary in the formulation of United States foreign policy and in the
administration of the Department and the Foreign Service.
Position title: Assistant Secretary of State, Assistant Secretary of State for
United Nations Affairs. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1948, by Public Law
900 of Eightieth Congress.
.Proposed salary: $15,000.
Incumbent: Dean Rusk.26 State: Virginia.
Responsibilities: The Assistant Secretary of State for United Nations Affairs.
advises and assists the Secretary in the formulation and coordination of policy
and action with respect to programs for United States participation in United
'Nations and other international organizations. It is his responsibility to see:
that the most effective use is derived of the machinery of international organiza-
tions in the conduct of foreign affairs, through the development and presentation
of constructive policies and programs to the United Nations and other interna-
tional bodies.
He is responsible for. supervising the work of the Office of United Nations.
Affairs, which in collaboration with other offices of the Department, is responsi-
ble for the follo`bing functions:
(a) Initiation :-and development, recommendation, and. execution of United.
States policy on problems of concern to the United Nations and other interna.
tional organizations with particular reference to United States commitments as.
'a member of the United Nations.
25 Mr. Rusk is temporarily serving in a dual capacity.
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INCREASING COMPENSATION OF HEADS F A
(b) Reviews the development and execution of the foreign policy of the United
States from the viewpoint of its United Nations or multilateral aspects.
(c) Interprets the provisions of the United Nations Charter for use by the
Department, other Federal agencies, and United States representatives to the
United Nations.
(d) Preparation of instructions to United States representatives to the United
Nations and its related international specialized and regional organizations.
(e) Implementation by the United States of decisions and recommendations of
the United Nations and other international organizations.
(f) Dissemination of information to the Department, to the field, and through
the Office of Public Affairs, to the public regarding the United States participation
in the United Nations and other international organizations assigned to the
jurisdiction of the Office.
The Assistant Secretary participates at the highest level with the Secretary and
Under Secretary in the formulation of United States foreign policy and its imple-
mentation through membership in various international organizations.
Position title: Counselor of the Department of State. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1.948, by Public Law
~? 900 of Eightieth Congress.
Statutory salary of $10,000 established May 18, 1937, by Public Law 91 of
Seventy-fifth Congress.
Proposed salary: $15,000.
Incumbent: Charles E. Bohlen. State: District of Columbia.
Responsibilities: The counselor serves as close personal adviser to the Secre-
tary of State in the entire field of foreign relations, assisting the Secretary in the
consideration and solution of major problems of foreign relations, and specializing
on problems of a highly critical nature. Ile regularly attends international
meetings and conferences with the Secretary. Generally, his assignments include
those matters as are referred to him from time to time by the Secretary which
require uninterrupted consideration and investigation, and involve advanced
policy or other questions.
Position title: Member, United States Tariff Commission. Section of bill: 4.
Present salary: $10,000.
Proposed salary: $16,000.
Incumbents: Oscar B. Ryder, Chairman, Virginia; Lynn R. Edminster, Vice
Chairman, Illinois; Edgar B. Brossard, Utah; E. Dana Durand, Minnesota;
John P. Gregg, Oregon; George McGill, Kansas.
Responsibilities: The six members of the Tariff Commission, acting as a unit,
have responsibility for investigating and reporting to the President and the
Congress on the operation and effects of United States customs laws (and proposed
legislation regarding them), on import competition with domestic industry and
`o on the commercial policies of the United States and of foreign countries; for
finding differences in costs of production here and abroad upon the basis of which
the President may proclaim changes in tariff rates; for determining whether
imports are competing unfairly and injuriously with domestic industry and, if so,
recommending to the President appropriate action; for finding for each article
listed for negotiations in a trade agreement the lowest duty which could be
imposed without causing or threatening serious injury to the domestic industry
concerned; for determining whether, with respect to an article on which a con-
cession has been made in a trade agreement, imports are causing or threatening
serious injury to the domestic industry and, if so, recommending to the President
appropriate action; for determining whether imports are interfering with any
program of the Department of Agriculture and, if so, recommending to the
President what action should be taken to prevent such interference; for reporting
annually on the operations of the trade-agreements program; for determining
whether imports of Philippine articles which have preferential free entry are
interfering with domestic industry and, if so, to recommend a quota which the
President has authority to impose. In some cases the Commission is required to
hold public hearings; in other cases it may do so at its discretion.
The Commission has a number of other duties but those mentioned above
include the major ones. In carrying out its duties, each Commissioner partici-
pates in all the findings and decisions. Each Commissioner also participates in
the planning, and in the review and revision, of every report issued.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Mr. Ryder, as Chairman of the Commission, in addition to his duties as a
member of the Commission, presides over the Commission meetings and, under
the direction of the Commission, has charge of the general administrative activi-
ties of the Commission.
Size of organization:
Number of employees, 235.
Estimated annual expenditures for fiscal year 1949, $1,270,300.
Position title: Member, Board of Directors, Tennessee Valley Authority. Section
of bill: 4.
Present salary: $10,000. Date salary established: May 18, 1933, by Public Law
1.7 of Seventy-third Congress.
Proposed salary: $16,000.
Incumbents: Gordon It. Clapp, Tennessee; James P. Pope, Idaho; Harry A.
Curtis, Tennessee.
Responsibilities: The members of the Board of Directors of the Tennessee
Valley Authority are responsible for the administration of all the agency's activi-
ties. They provide administrative leadership and policy guidance for the organi-
zation, establish the administrative framework, develop plans and programs for
carrying out the provisions of the basic legislation, and authorize or approve all
activities and expenditures. They do not engage in detailed administrative super-
vision, the execution of all programs and activities being confided to a general
manager who operates under the direction of the Board.
The Board administers a broad program for the integrated development of the
natural resources of the Tennessee Valley area, comprising approximately 40,000
square miles and including parts of seven States. The program includes the
development of the water resources of the area for navigation, flood control, and
power purposes, and programs for the development of the agricultural, forestry,
minerals, recreation, and other regional resources, including the operation of
large-scale experimental works for the production of new and improved fertilizer
materials in peacetime and munitions in time of war. The TVA water-control
system includes 28 major dams and reservoirs, including 9 dams on the main
river which provide a 9-foot navigable channel for the entire length of the Ten-
nessee River, a distance of 630 river miles. The power system, the largest
integrated system in the country, includes 2,285,502 kilowatts of installed capacity
in hydro plants, 444,900 kilowatts in steam plants, and 7,000 miles of high-tension
transmission lines.
TVA sells power at wholesale to 144 municipalities and cooperatives, who in
turn sell power at retail to approximately 950,000 residential, commercial, and
industrial consumers. In fiscal year 1948 TVA sold over 1132 billion kilowatt-
hours of electricity and received gross power revenues of more than $46,500,000;
370,000 tons of fertilizer materials were sold in that year and revenues from this
source were more than $14,500,000.
Size of organization:
Number of employees, 1.3,205 as of March 31, 1949.
Estimated annual expenditures for fiscal year 1949, $113,237,000.
Position title: Secretary of the Treasury. Section of bill: 1.
Present salary: $15,000. Date salary established: March 4, 1925, by Public
Law 624 of Sixty-eighth Congress.
Proposed salary: $25,000.
Incumbent: John W. Snyder. State: Missouri.
Responsibilities: The Secretary of the Treasury is responsible for the man-
agement of the national finances. The execution of his responsibilities involves
the following duties: The supervision and over-al] direction of the bureaus,
offices, and divisions of the Treasury Department which are charged with (1) the
collection of the revenue; (2) the management of the public debt; (3) the market-
ing of United States securities; (4) the maintenance of the financial accounts of
the Government; (5) the receipt and disbursement of public funds, and account-
ing therefor; (6) the publication of statements. showing the financial condition
of the Government: (7) the formulation and execution of policies and programs
in the international financial and monetary field which require collaboration with
other governments; (8) the studying of the national economy in order that
recommendations may be made for the improvement and protection of the
revenue; (9) the printing of currency and securities; (10) the minting of coins;
(11) the protection of the President and the suppression of counterfeiting, forg-
ing, and alteration of obligations, currency, securities, and coins of the United
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INCREASING COMPENSATION OF LEADS OF DEPARTMENTS
States; (12) the procurement and stock piling of strategic and critical materials
and the purchase, warehousing, and distribution of supplies for use by Federal
agencies; (13) the enforcement of tariff and export and import control acts, and
the suppression of smuggling; (14) the regulation and inspection of the national
banking system; (15) the protection and safety of vessels at sea and the saving
of lives; (1.6) the enforcement of navigation laws, and those pertaining to the
registry, enrollment, and licensing of vessels; (17) the inspoction.of vessels and
the signing on of crews; (18) the suppression of illicit traffic in narcotics and the
regulation of the distribution of narcotic drugs; (19) the regulation of the alco-
holic beverage industry and the suppression of illicit distilleries; and (20) such
other duties as may be assigned from time to time by the President of the United
States.
The financial integrity of the country depends upon the proper discharge of
these responsibilities, therefore, they are important to the national economy.
Listed below are the principal bureaus and divisions comprising the Treasury
Department which are under the supervision and direction of the Secretary of
the Treasury: Bureau of Internal Revenue, Coast Guard, Office of Comptroller
of the Currency, Bureau of Engraving and Printing, Bureau of the Mint, Bureau
of Narcotics, Secret Service, Bureau of Federal Supply, Bureau of Customs,
United States Savings Bonds Division, Bureau of Accounts, Bureau of Public
Debt, Office of the Treasurer of the United States, and Office of International
Finance.
The Secretary of the Treasury is ex officio a member of the following boards
and committees: Chairman, board of trustees, endowment fund of the American
Red Cross; Chairman, Library of Congress Trust Fund Board; Chairman, Na-
tional Advisory Council on International Monetary and Financial Problems;
Chairman, Contract Settlement Advisory Board; United States Governor of the
International Monetary Fund and International Bank for Reconstruction and
Development; Managing Trustee, Board of Trustees of the Federal old-age and
survivors insurance trust fund; Member, National Park Trust Fund Board; Board
of Trustees, Postal Savings System; Board of Directors, Federal Farm Mortgage
Corporation; Advisory Board, Export-Import Bank of Washington; Joint Com-
mittee on Reduction of Nonessential Federal Expenditures; Foreign-Trade
Zones Board; National Munitions Control Board; Smithsonian Institution;
Board of Trustees, National Gallery of Art; National Archives Council; Foreign
Service Buildings Commission; National Security Resources Board; Trustee,
Franklin D. Roosevelt Library.
Size of organization:
Number of employees, 93,537.
Estimated annual expenditures for fiscal year 1949, $795,914,855.
In addition, permanent indefinite appropriations of $11,923,307,408 for
fiscal year 1949.
+r~ Position title: Under Secretary of the Treasury. Section of bill: 2 (a).
Present salary: $10,330. Date salary established: April 4, 1924, by Public Law
68 of Sixty-eighth Congress.
Proposed salary: $20,000.
Incumbent: Edward II. Foley, Jr. State: New York.
Responsibilities: The Under Secretary of the Treasury assists the Secretary of
the Treasury in the administration of the affairs of the Department and partici-
pates in the formulation of over-all policies of the Department. I-Ic exercises
direct supervision over the bureaus and divisions listed below and performs such
other duties as may be prescribed by the Secretary. In the absence of the Secre-
tary, the Under Secretary assumes management of the entire Department. (See
statement of duties of the Secretary of the Treasury.)
The execution of these responsibilities and duties requires that the Under
Secretary render decisions regarding the operation of a wide range of activities
which include: (1) large industrial activities; (2) tremendous procurement and
warehousing enterprise; (3) the regulation and inspection of national banks;
(4) law enforcement; (5) a maritime agency which is responsible for aids to navi-
gation, assistance to distressed vessels, and the rescue of shipwreck victims; and
(6) the enrollment of agents and attorneys to practice before the Treasury Do-
partment.
The Under Secretary exercises direct supervision over the following organiza-
tional units of the Department: United States Coast Guard, United States Secret
Service, Bureau of the Mint, Office of the Chief Coordinator, Treasury Enforce-
ment Agencies, Bureau of Federal Supply, Bureau of Engraving and Printing,
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102 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
Bureau of Narcotics, Office of Comptroller of the Currency, Committee on
Practice.
The Under Secretary serves as the representative of the Secretary of the
Treasury or as his alternate on the following committees or boards: National
Security Resources Board, Board of Trustees, National Gallery of Art, Foreign
Service Buildings Commission, Air Coordinating Committee, Interdepartmental
Rubber Committee, Inter-Agency Committee on the Development of Alaska,
Shipping Coordinating Committee.
In addition, the Under Secretary has been appointed by the President as a
member of the Board of Governors of the American National Red Cross and has
been designated as its treasurer.
Size of organization:
Number of employees: Civilian, 16,979; military, 22,856.
Estimated annual expenditures for fiscal year 1949, $466,893,355.
Position title: Assistant Secretary of the Treasury. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: May 10, 1934, by Public Law
216 of Seventy-third Congress.
Proposed salary: $15,000.
Incumbent: John S. Graham.. State: North Carolina.
Responsibilities: The Assistant Secretary of the Treasury assists the Secre-
tary of the Treasury in the administration of the affairs of the Department and
participates in the formulation of the policies of the Department. He exercises
supervision over the bureau and divisions listed below and, in addition, under-
takes such assignments as the Secretary may direct with respect to the adminis-
tration of the Bureau of Internal Revenue. In the absence of the Secretary and
the Under Secretary, the Assistant Secretary serves as Acting Secretary of the
Treasury and assumes management of the entire Department. (See statement
of duties for the Secretary of the Treasury.)
The execution of these duties requires that the Assistant Secretary render
decisions regarding the management policies of organizations charged with the
responsibility of (1) the collection of the revenue; (2) the survey of tax problems
of the Federal Government to devise 'methods of meeting revenue requirements
and to develop methods of adjusting the tax system to changing economic condi-
tions; and (3) the promotion and sale activities relating to United States savings
bonds and savings stamps.
The Assistant Secretary of the Treasury exercises direct supervision over the
following organizational units of the Department: Bureau of Customs, Division
of Tax Research, United States Savings Bonds Division.
Size of organization:
Number of employees, 9,095.
Estimated annual expenditures for fiscal year 1949, $54,775,000.
Position title: Assistant Secretary of the Treasury. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: May 10, 1934, by Public Law
216 of Seventy-third Congress.
Proposed salary: $15,000.
Incumbent: William McChesney. Martin, Jr. State: New York.
Responsibilities: The Assistant Secretary of the Treasury assists the Secretary
of the Treasury in the administration of the affairs of the Department and par-
ticipates in the formulation and execution of policies and programs in the inter-
national financial and monetary field. He exercises direct supervision over the
.Office of International Finance and the operations of the United States Exchange
Stabilization Fund. In addition, he performs such other duties as may be pro-
scribed by the Secretary of the Treasury. In the absence of the Secretary, the
Under Secretary, and the Senior Assistant Secretary, he serves as Acting Secretary
of the Treasury. (See statement for Secretary.)
The execution of this responsibility requires thatthe Assistant Secretary advise
the Secretary and render decisions regarding policies, programs, and operations
arising in connection with international monetary and financial affairs. These
duties include: (1) Serving as the Secretary's alternate on the National Advisory
.Council on International Monetary and Financial Problems, which has the statu-
tory function of coordinating the policies and operations of United States repre-
sentatives on the International Monetary Fund and the International Bank, and
of United States Government agencies involved in lending or foreign financial,
exchange, or monetary transactions; (2) supervision of the administration and
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS 103
operation of the Exchange Stabilization Fund and stabilization agreements;
(3) advising the Secretary regarding the financial aspects of international treaties,
agreements, organizations, or operations in which the United States Government
participates; (4) participation in negotiations with foreign governments with
respect to the foregoing responsibilities; and (5) maintains liaison with foreign
governments and with the State Department and other interested United States
Government agencies with reference to international financial and monetary
matters.
. In addition to his other responsibilities the Assistant Secretary serves on the
following as a representative of the Treasury: National Advisory Council on
International Monetary and Financial Problems, Advisory Committee on Oc-
cupied Area Affairs, Advisory Committee on Requirements, Interdepartmental
Committee on Scientific and Cultural Cooperation.
'Size of'the organization:
Number of employees, 162.
Estimated annual expenditures for fiscal year 1949, $1,200,000.
Position title: Fiscal Assistant Secretary of the Treasury. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: June 30, 1940, by Reorgan-
ization Plan No. III of 1940.
Proposed salary: $15,000.
Incumbent: Edward F. Bartolt. State: Illinois.
Responsibilities: The Fiscal Assistant Secretary exercises supervision over the
administration of financing operations; supervises the fiscal service established in
the Treasury effective June 30, 1940, pursuant to Reorganization Plan No. III;
and through the Commissioner of Accounts supervises the administration of the
accounting functions and activities in the Treasury Department. The execution
of these responsibilities involves (1) the supervision of the three bureaus listed
below; (2) making contacts with the departments, boards, corporations, and other
branches of the Government with respect to their financial operations; coordinat-
ing such operations with those of the Treasury; representing the Secretary in such
contacts in a liaison capacity; and keeping the Secretary fully informed at all
times; (3) supervision of the preparation of periodical estimates of the future cash
position of the Treasury for use of the Department in connection with its financing
and the preparation of calls for the withdrawal of funds in special depositaries to
meet current expenditures; (4) direction of the transfer of governmental funds
between the Federal Reserve banks when necessary; and (5) direction of fiscal
agency functions of the Federal Reserve banks.
The Fiscal Assistant Secretary exercises direct supervision over the following
organizational units of the Department: Bureau of Accounts, Bureau of the
Public Debt, Office of the Treasurer of the United States,
The Fiscal Assistant Secretary serves on the following interdepartmental com-
mittees: Interdepartmental Savings Bond Committee (Chairman); representative
of the Secretary on a joint committee, composed of the Secretary of the Treas-
ury, the Comptroller General of the United States, and the Director of the
Budget, for the purpose of developing policies and procedures for the improve-
ment of the accounting systems of the Government.
The Fiscal Assistant Secretary was designated by the President as United
States representative on the Fiscal Commission of the Economic and Social Coun-
cil of the United Nations.
Size of organization:
Number of employees (as of Mar. 31, 1949), 12,471.
Estimated annual expenditures for fiscal year 1949, $70,648,000.
(Does not include $4,250,000 allotted to the United States Savings Bonds
Division.)
Position title: Commissioner of Internal Revenue. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: February 24, 1919, by Public
Law 254 of Sixty-fifth Congress.
Proposed salary: $15,000.
Incumbent: George J. Schoeneman. State: Rhode Island.,
Responsibilities: The Commissioner of Internal Revenue is responsible for the
assessment and collection of all internal-revenue taxes and other miscellaneous
taxing acts of Congress, and the assessment of taxes and penalties on liquors, the
administration of the Federal Alcohol Administration Act, and the suppression of
illicit distilling. The execution of these duties and responsibilities involves (1)
the issuance of regulations and instructions, tax forms, etc.; (2) the collection of'
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taxes due; (3) the audit and review of tax returns; (4) the inspection of taxpayers,
records; (5) the apprehension of willful evaders of the tax laws and recommenda-
tion that they be prosecuted; and (6) the settlement of disputed assessments, either
by negotiation or litigation.
The affairs of the Bureau of Internal Revenue are administered through 142
principal field offices scattered throughout the United States. It is estimated that
the Bureau of Internal Revenue will collect $43,264,000,000 in taxes during the
fiscal year 1950.
Size of organization:
Number of employees (as of March 31, 1949), 54,173.
Estimated annual expenditures for fiscal year 1949, $193,588,500.
Position title: Commissioner of Customs. Section of bill: 5 (a).
Present salary: $10,330. Date salary established: July 3, 1930, by Public Law
528 of Seventy-first Congress.
Proposed salary: $15,000.
Incumbent: Vacancy.
Responsibilities: The Commissioner of Customs administers the tariff and
ti
t
d
on,
ocumen
a
related laws, the laws pertaining to the entrance, clearance,
and admeasurement of vessels, and the laws pertaining to the entrance and
clearance of aircraft. The execution of these responsibilities involves the is-
suance of regulations and the supervision of the following functions of the customs
service: (1) enter and clear vessels; (2) supervise the discharge of cargo; (3)
ascertain the quantities of imported merchandise, appraise and classify such
merchandise, and assess and collect the duties thereon; (4) control the customs
warehousing of imported merchandise; (5) enforce customs and other laws by
patrolling the international borders and inspecting international traffic by
vessel, highway, railway, and air; (6) review protests against assessments of
duties; (7) determine and certify for payment the amount of draw-back due upon
the exportation. of articles manufactured or produced from duty-paid or tax-paid
imports; (8) prevent smuggling of contraband merchandise and the release of
prohibited articles; (9) prevent and detect undervaluations and frauds on the
customs revenue; (10) apprehend violators of the customs laws; (11) enforce the
Antidumping Act, and perform certain duties under the Foreign Trade Zones
Act; (12) administer the navigation laws and related laws pertaining to the
registry, enrollment and licensing of vessels, including the issuance of commissions
to yachts and the assignment of signal letters; the measurement of vessels; the
collection of tonnage duties and tolls; the entry and clearance of aircraft, the
operation of vessels in the coasting and fishing trades and limitation of the use
of foreign vessels in waters under the jurisdiction of the United States; the
recording of sales, conveyances, and mortgages of vessels; and the protection of
steerage passengers; (13) administer the laws governing the remission and mitiga-
tion of fines, penalties, and forfeitures incurred under laws governing the fore-
going matters; and (14) cooperates with other departments and agencies of the
Government in the collection of taxes, fees, and other charges, and in the enforce-
ment of preventive, sanitary, and other laws under their respective administra-
tions relating principally to persons and articles coming into this country and in
some cases to articles sent out of the country.
The affairs of the customs service are administered through 46 district offices
located throughout the United States. Customs receipts for the fiscal year 1948
amounted to $421,723,028. Entries of merchandise imported into the United
States during the same period of time amounted to 3,771,628.
The Commissioner of Customs serves as chairman of the Committee on Estab-
lishment of Airports of Entry.
Size of organization:
Number of employees (as of March 31, 1949), 8,550.
Estimated annual expenditures for fiscal year 1949, $50,400,000.
Position title: Administrator of Veterans' Affairs. Section of bill: 2 (a).
Present salary: $12,000. Date salary established: July 3, 1930, by Public Law 536
of Seventy-first Congress.
Proposed salary: $20,000.
Incumbent: Carl R. Gray, Jr. State: Wisconsin.
Responsibilities: Under the direction of the President, the Administrator of
Veterans'Affairs is charged by statute with the control, direction, and manage-
ment of the various programs authorized by statute providing benefits for veterans
and the dependents of veterans of the military and naval forces of the United
States. There are at present approximately 18,668,000 living veterans.
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INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
The magnitude of these responsibilities is revealed by the following examples of
major programs: Insurance-The amount of insurance in force is larger than that
of any other organization; the insurance in force is more than one-fourth of all
ordinary insurance in force in the United States; United States Government life
insurance with 505,419 policies in force with a face value of $2,201,411,667 on
February 28, 1949, and national service life insurance with 7,193,000 policies in
force with a face value of $41,416,000,000 on March 31, 1949. Claims (compensa-
tion and pension)-With 2,898,130 living and deceased veterans' cases involved
in current awards beginning with dependents of deceased veterans of the Mexican
War, with a gross expenditure of $162,917,103 for the month of March 1949.
Vocational rehabilitation for service-connected disabilities, and educational train-
ing under the Servicemen's Readjustment Act of 1944, as amended-With 219,666
in training at the end of March in the first group and 2,325,930 in training in the
latter group (of all students enrolled in colleges and universities between 40 and
50 percent are beneficiaries under these programs) the gross expenditure certified
A for the month of March 1949 on those two training programs totaled $307,740,269.
Hospitalization and domiciliary care-With the largest hospital program in the
world under a single agency, with 127,966 authorized beds, with 126 hospitals and
15 domiciliary units, and 110;821 VA patients receiving hospitalization in VA and
non-VA hospitals in February 1949, and 15,983 veterans domiciled in VA homes
during the same month; during January 1949 there were 529,235 out-patient medi-
cal examinations for treatment or rating purposes and 416,400 out-patient treat-
ments (medical) afforded, the medical program under the VA Department of
Medicine and Surgery has produced a definite leadership in the advance of medical
care and treatment. Readjustment allowances-Through February 1949 paid
$2,896,151,000 plus $552,983,000 for self-employed. Loan guaranty program
(homes, farms, and business loans)-1,540,227 loans involving $3,965,073,000 in
guaranty commitments.
Size of organization:
Number of employees, 190,898 average.
Estimated annual expenditures for fiscal year 1949, $6,860,000,000.
Position title: Deputy Administrator of Veterans' Affairs. Section of bill: 3 (a).
Present salary: $10,330. Date salary established: July 11, 1948, by Public Law
900 of Eightieth Congress.
Proposed salary: $18,000.
Incumbent: Omer W. Clark, State: Ohio.
Responsibilities: The Deputy Administrator of Veterans' Affairs, as the term
implies, is the principal assistant of the Administrator of Veterans' Affairs. He
takes independent action in the name of the Administrator with respect to all
problems affecting the Veterans' Administration which do not require the Ad-
ministrator's personal attention. During the absence of the Administrator he
acts as Administrator in all matters affecting the Veterans' Administration
within the limits of the authority delegated to him by the Administrator.
The magnitude of these responsibilities is revealed by the following examples of
major programs: Insurance-The amount of insurance in force is larger than that
of any other organization; the insurance in force is more than one-fourth of all
ordinary insurance in force in the United States; United States Government life
insurance with 505,419 policies in force with a face value of $2,201,411,667 on
February 28, 1949, and national service life insurance with 7,193,000 policies in
force with a face value of $41,416,000,000 on March 31, 1949. Claims (compensa-
tion and pension)-with 2,898,130 living and deceased veterans' cases involved in
current awards beginning with dependents of deceased veterans of the Mexican
War, with a gross expenditure of $162,917,103 for the month of March 1949. Vo-
cational rehabilitation for service-connected disabilities, and educational training
under the Servicemen's Readjustment Act of 1944, as amended-With 219,666 in
training at the end of March in the first group and 2,325,930 in training in the lat-
ter group (of all students enrolled in colleges and universities between 40 and 50
percent are beneficiaries tinder these programs) the gross expenditure certified for
the month of March 1949 on these two training programs totaled $307,740,269.
Hospitalization and domiciliary care-With the largest hospital program in the
world under a single agency, with 127,966 authorized beds, with 126 hospitals and
15 domiciliary units, and 110,821 VA patients receiving hospitalization in VA and
non-VA hospitals in February 1949, and 15,983 veterans domiciled in VA homes
during the same month; during January 1949 there were 529,235 out-patient
medical examinations for treatment or rating purposes and 416,400 out-patients
treatments (medical) afforded, the medical program under the VA Department of
Medicine and Surgery has produced a definite leadership in the advance of medical
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106 INCREASING COMPENSATION OF HEADS OF DEPARTMENTS
care and treatment. Readjustment allowances-Through February 1949 paid
$2,896,151,000 plus $552,983,000 for self-employed. Loan guaranty program
(homes, farms, and business loans)-1,540,227 loans involving $3,965,073,000 in
guaranty commitments.
Size of organization:
Number of employees, 190,898 average.
Estimated annual expenditures for fiscal year 1949, $6,860,000,000.
Position title: Administrator, War Assets Administration. Section of bill: 5 (a).
Present salary: $12,000. Date salary established: September 18, 1945, by Public
Law 181 of Seventy-ninth Congress.z"
Proposed salary: $15,000.
Incumbent: Jess Larson. State: Oklahoma.
Responsibilities: 1. As provided by the Surplus Property Act of 1944, as
amended, the War Assets Administrator has final responsibility in the general
supervision, care, maintenance, and disposition of all domestic surplus property,
both real and personal, declared prior to July 1, 1948. Under this program,
property. has been disposed of which originally cost the Government approxi-
mately $25,000,000,000. The total inventory yet remaining to be disposed of is
$2,208,000,000. In carrying out his responsibilities, the Administrator is subject
to all applicable provisions of the Surplus Property Act and the laws and regula-
tions issued by Government agencies which have authority to control surplus
inventory declared prior to July 1, 1948. In finally approving terms of disposal,
the Administrator is called upon to pass judgment upon all forms of credit,
financing, and analyzing of property values. Likewise, he is called upon to exer-
cise final authority on what constitutes aid to independent enterprise and small
business, impacts upon domestic markets, and the weighing of claims of various
priority claimants. Ile also has supervisory control over the surplus-disposal
activities of the inventory described herein which has been assigned to the Farm
Credit Administration and the Federal Works Agency for disposal.
Size of organization:
Number of employees: 4,709 (WAA only).
Estimated annual expenditures for fiscal year 1949: $80,000,000 (estimated
obligations).
Position title: Member, War Claims Commission. Section of bill: 5 (a).
Present salary: $12,000. Date salary established: July 3, 1948, by Public Law
896 of Eightcith Congress.
Proposed salary: $15,000.
Incumbents: Three vacancies (members not yet appointed).
Responsibilities: As a member of a three-man Commission the incumbent will
share responsibility for the performance of the following major functions:
1. Inquire into and report to the President, who will in turn submit such report
to Congress, with respect to war claims, except those that may be adjudicated
under Public Law 896, supra, arising out of World War II. Such report shall
include the categories and types of claims to be considered, the legal and equitable
bases therefor, the administrative method by which they should be considered,
any applicable priorities or limitations., appropriate recommendations or legisla-
tive proposals, and the extent to which such claims have been or may be. satisfied
under international agreements or domestic or foreign laws. The recommenda-
tions of the Commission contained in this report will have a definite bearing on
the Government's policies for the liquidation of claims arising out of World War
II, and these policies may have an important impact upon the national economy.
2. Receive, adjudicate, and certify for payment by the Treasury out of a
trust fund created by Public Law 896 from the proceeds of alien enemy property
three classes of claims as follows:
(a) Claims of certain civilian American citizen internees for detention benefits.
(b) Claims of certain prisoners of war for compensation for food deficiencies.
(c) Claims of religious organizations or personnel for reimbursement for cer-
tain relief supplies and services furnished members of the United States armed
forces or to certain civilian American citizens after December 6, 1941, and before
August 15, 1945.
The foregoing three classes of claims are estimated to number approximately
127,000 and to involve approximately $16,000,000. As the Commission has not
as yet been established, procedures for implementation of the foregoing responsi-
bilities have not been determined.
ae Reference should be made to Executive Order 9689, dated January 31, 1946, and Reorganization Plan
No. 1 of 1947.
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