ESTABLISHING AN ADVISORY COMMISSION ON INTER-GOVERNMENTAL RELATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61-00357R000100110006-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 13
• Document Creation Date: December 27, 2016
• Document Release Date: August 29, 2013
• Sequence Number: 6
• Publication Date: August 17, 1959
• Content Type: OPEN SOURCE

Declassified and Approved For Release 2013/08/29: CIA-RDP61-00357R000100110006-3
1959 CONGRESSIONAL RECORD HOUSE
in connection with exports of wheat and
wheat flour are occasioned by reason of the
U.S. domestic price of wheat being higher
than the world price.
The Commodity Credit Corporation pro-
gram which has been conducted pursuant
to the International Wheat Agreement Act
of 1949, as amended in 1953 and 1956, en-
ables commercial wheat exporters and millers
to purchase wheat at domestic market prices
and to sell the wheat, or wheat flour pro-
duct, to purchasers in IWA importing coun-
tries, at prices consistent with the agreement
price range, in competition with other ex-
porters in the world market.
The act requires the Commodity Credit
Corporation to utilize the usual and custom-
ary channels, facilities, and arrangements of
trade and commerce to the maximum extent
practicable in making wheat available under
the agreement. During the life of the 1956
agreement, all but a negligible part of the
exports of wheat and wheat flour under the
agreement have been handled by the pri-
vate trade. Specifically, Commodity Credit
Corporation has been directly involved in
foreign sales only under special circum-
stances, in transactions representing 3 per-
cent of all wheat agreement ? exports in
1956-57, eightLtenths of 1 percent in 1957-58,
and four-tenths of 1 percent in 1958-59.
Insofar as Practicable, practices and pro-
cedures applicable to ordinary commercial
exports are permitted and encouraged. The
program reqnirements are such as to make
participation; practicable for small business
or for any exporter regularly engaged in the
exportation of wheat or wheat flour.
Under the program, an exporter in the
private trade negotiates a sale of wheat or
wheat flour with a buyer in a wheat agree-
ment importing country, in the knowledge
of export payment rates which are publicly
announced each day by the Commodity
Credit Corporation after grain markets have
closed. The exporter reports the sale by
telegraph to the CCC, and if the transac-
tion is eligible he receives confirmation of
eligibility under the program within a few
hours. He ;later accomplishes the exporta-
tion and upon presentation of evidence of
sale and proof of export, he collects the ex-
port payment from an office in his area at
the rate per bushel of wheat or hundred-
weight of flour which prevailed at the time
the sale was made. In the case of wheat,
the subsidy payment is made in the form
of a negotiable certificate which is redeem-
able only in wheat from Commodity Credit
stocks at the domestic market price. This
wheat is utilized only in connection with
further exports under the program.
EXPORT SUBSIDY COSTS
During the life of the 1956 agreement,
the average payment per bushel has been
about 73 cents, although during the last 1
of the 3 years it was considerably less than
the preceding 2 years. It is estimated that
during the first year of the 1959 agreement
the payment per bushel may average be-
tween 55 and 60 cents. An estimate of the
cost beyond the first year has not been made
because of the uncertainties in forecasting
(1) the level of domestic market prices and
(2) the future selling prices which will need
to be established in order to remain com-
petitive in the world market. In the latter
connection, no appreciable change is antici-
pated which would result in increased sub-
sidy costs.
(Mr. SPENCE asked and was given
permission to revise and extend his re-
marks and to insert a description of the
operations under the Wheat Agreement
Act.)
Mr. McDONOUGH. Mr. Speaker, the
chairman of the committee has clearly
stated the purposes of this bill.
No. 140-18
One of the items I believe to be of
special interest to those of us who are
seeking to economize on our price sup-
port agriculture program on agricultural
commodities is that the exports provided
for under this bill will help keep the costs
at a minimum for providing a stable
wheat market, and to release from stor-
age many millions of bushels of wheat
that otherwise would have to be stored
at great expense to the American tax-
payer.
Let me read the following from the
committee report:
PURPOSE OF BILL
The bill would extend for an additional
3 years the necessary implementing legis-
lation to carry out U.S. participation in
the International Wheat Agreement. This
agreement was originally signed in 1949 and
since has been extended at 3-year intervals,
the latest extension having been ratified by
the Senate on July 15, 1959, by a vote of
92 to 1. Under the 1959 agreement, some
30 participating wheat-importing countries
have agreed to buy on the average of 70
percent of their commercial wheat imports
from the United States and 8 other wheat-
exporting countries, at prices within a spe-
cified range. HR. 8409 would extend the
Commodity Credit Corporation's authority
to make wheat and wheat flour available for
export to exercise our right and fulfill our
obligations under the agreement.
RIGHTS AND OBLIGATIONS UNDER THE 1959
AGREEMENT
Under the International Wheat Agreement
of 1959 each importing member country un-
dertakes to purchase from member exporters
a specified percentage of its total commer-
cial purchases from all sources. The
weighted average of the percentages sub-
scribed by individual importing countries is
a little over 70 percent. At the level of
trade during the 4 years 1954-58, commercial
transactions per year for these countries
approximated 600 million bushels. It is ex-
pected that these countries will buy a much
greater proportion of their total commer-
cial requirements than the 70 percent sub-
scribed; this percent is the minimum guar-
anteed under the agreement. This im-
porter obligation exists at the agreement
minimum price, and continues throughout
the range up to the maximum price estab-
lished by the agreement. The United States
and other exporting countries have the right
to sell the guaranteed percentage of im-
porters' purchases, with the added benefit
of whatever quantities over and above the
subscribed percentages member importers
may purchase from them.
The exporting countries' obligation be-
comes effective if the price reaches the
agreement maximum. Then, they must fur-
nish any quantities not already purchased
in that year, up to a moving average equal
to importers' historical _commercial pur-
chases during a 5-year period. Importing
countries have the right to purchase up to
these quantities at the maximum price. On
the basis of average commercial exports in
the period 1954-58, the U.S. annual obliga-
tion would be to sell a little over 150 mil-
lion bushels.
Transactions involving inconvertible local
currency such as sales under title I of
Public Law 480, and other transactions
which include features introduced by the
government of a country concerned which
do not conform with usual commercial prac-
tices, do not come within the rights and
obligations of the agreement.
THE PRICE RANGE
The price range specified in the 1958 agree-
ment is $1.50 to $1.90 per bushel. These
prices are in terms of a basic grade, No. 1
14697
Manitoba Northern, at a basing point at the
head of the Great Lakes in Canada. The
current Canadian quotation for this grade
of wheat in the base location (converted
to U.S. funds which coincide with the
monetary basis specified in the agreement)
is $1.74. This is 16 cents below the agree-
ment maximum and 24 cents above the
minimum
The price range under the agreement is
the result of, and consistent with, world
price levels for wheat which have evolved
as a result, to some extent, of supply-de-
mand factors, disposal and pricing policies
of the principal wheat-exporting countries,
and negotiations in connection with the
agreement to maintain a reasonable and
stable price, scarcity or surplus conditions
notwithstanding.
? There is no objection to the bill that
I know of. I have no requests for time.
I hope, in view of the fact that we are
a "party to this international wheat
agreement and this action will extend
the agreement for another 3 years, that
the bill will pass.
Mr. SHELLEY. Mr. Speaker, will the
gentleman yield?
Mr. McDONOUGH. I yield.
Mr. SHELLEY. Does this bill in any
way change the present requirements of
50-50 carriage of cargo wherever this
type of cargo is being released or dis-
tributed by the United States Govern-
ment?
Mr. McDONOUGH. I appreciate the
interest of the gentleman from Califor-
nia in that particular respect. This does
not change the 50-50 formula for the
handling of the commodities.
Mr. BONNER. Mr. Speaker, will the
gentleman yield?
Mr. McDONOUGH. I yield to the
gentleman from North Carolina.
Mr. BONNER. Does it pertain in any
manner to the 50-50 formula for the
carriage of cargoes of this type in Amer-
ican-flag vessels?
Mr. McDONOUGH. No, it does not.
The SPEAKER. The question is on
suspending the rules and passing the
bill.
The question was taken: and (two
thirds having voted in favor thereof)
the rules were suspended and the ill
was passed.
ESTABLISHING AN ADVISORY COM-
MISSION ON INTER-GOVERNMEN-
TAL RELATIONS
Mr. FOUNTAIN. Mr. Speaker,! move
to suspend the rules and pass the bill
(H.R. 6904) to establish an Advisory
Commission on Intergovernmental Re-
lations.
The Clerk read as follows:
Be it enacted by the Senate and House
of Representatives of the United States of
America in Congress assembled,
ADVISORY COMMISSION ON INTERGOVERNMENTAL
RELATIONS
SECTION 1. There is hereby established a
permanent bipartisan commission to be
known as the Advisory Commission on In-
tergovernmental Relations, hereinafter re-
ferred to as the "Commission".
DECLARATION OF PURPOSE
Sac. 2. Because the complexity of modern
life intensifies the need in a federal form
of government for the fullest cooperation
and coordination of activities between the
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14698 CONGRESSIONAL RECORD ? HOUSE
levels of government, and because popula-
tion growth and scientific developments
portend an increasingly complex society in
future years, it is essential that an appro-
priate agency be established to give con-
tinuing attention to intergovernmental
problems.
It is intended that the Commission, in
the performance of its duties, will?
(1) bring together representatives of the
Federal, State, and local governments for
the consideration of common problems;
(2) provide a forum for discussing the
administration and coordination of Federal
grant and other programs requiring inter-
governmental cooperation;
(3) give critical attention to the condi-
tions and controls involved in the admin-
istration of Federal grant programs;
(4) make available technical assistance
to the executive and legislative branches of
the Federal Government in the review of
proposed legislation to determine its over-
all effect on the Federal system;
(5) encourage discussion and study at an
early stage of emerging public problems
that are likely to require intergovernmental
cooperation;
(6) recommend, within the framework of
the Constitution, the most desirable alloca-
tion of governmental functions, responsibil-
ities, and revenues among the several levels
of government; and
(7) recommend methods of coordinating
and simplying tax laws and administrative
practices to achieve a more orderly and less
competitive fiscal relationship between the
levels of government and to reduce the
burden of compliance for taxpayers.
MEMBERSHIP OF THE COMMISSION
SEC. 3. (a) The Commission shall be com-
posed of twenty-five members, as follows:
(1) Six appointed by the President of
the United States, three of whom shall be
officers of the executive branch of the Gov-
ernment, and three private citizens, all of
whom shall have had experience or familiar-
ity with relations between the levels of
government;
(2) Three appointed by the President of
the Senate, who shall be Members of the
Senate;
(3) Three appointed by the Speaker of
the House of Representatives, who shall be
Members of the House;
(4) Four appointed by the President from
"a panel of at least eight Governors sub-
mitted by the Governors' Conference;
(5) Three appointed by the President
from a panel of at least six members of
State legislative bodies submitted by the
board of managers of the Council of State
Governments;
(6) Four appointed by the President from
a panel of at least eight mayors submitted
jointly by the American Municipal Associa-
tion and the United States Conference of
Mayors;
(7) Two appointed by the President from
a panel of at least four elected county offi-
cers submitted by the National Association
of County Officials.
(b) The members appointed from private
life under paragraph (1) of subsection (a)
shall be appointed without regard to politi-
cal affiliation; of each class of members
enumerated in paragraphs (2) and (3) of
subsection (a), two shall be from the ma-
jority party of the respective houses; of
each class of members enumerated in par-
agraphs (4), (5), and (6) of subsection (a),
not more than two shall be from any one
political party and of the members enum-
erated in paragraph (7) of subsection (a),
not more than one shall be from any one
political party; of each class of members
enumerated in paragraphs (5), (6), and (7)
of subsection (a) , not more than One shall
be from any one State; at least two of the
appointees under paragraph (6) of subsec-
tion (a) shall be from cities Under five
hundred thousand population.
(c) The term of office of each member
of the Commission shall be two years, but
members Shall be eligible for reappoint-
ment.
ORGANIZATION OF THE COMMISSION
SEC. 4. (a) The President shall convene
the Commission within ninety days follow-
ing enactment of this Act at such time and
place as he may designate for the Com-
mission's initial meeting.
(b) The President shall designate a
Chairman and a Vice Chairman from
among members of the Commission.
(c) Any vacancy in the membership of
the Commission shall be filled in the same
manner in which the original appointment
was made; except that where the number
of vacancies is fewer than the number of
members specified in paragraphs 4, 5, 6, and
7 of section 3(a), each panel of names sub-
mitted in accordance with the aforemen-
tioned paragraphs shall contain at least
two names for each vacancy.
(d) Where any member ceases to serve in
the official position from which originally
appointed under section 3(a) , his place
on the Commission shall be deemed to be
vacant.
(e) Thirteen members of the Commission
shall constitute a quorum, but two or more
members shall constitute a quorum for the
purpose of conducting hearings.
DITTIES OF THE COMMISSION
SEC. 5. It shall be the duty of the Com-
mission?
(1) to engage in such activities and to
make such studies and investigations as are
necessary or desirable in the accomplish-
ment of the purposes set forth in section
2 of this Act;
(2) to consider, on its own initiative,
ways and means for fostering better rela-
tions between the levels of government;
(3) to submit an annual report to the
President and the Congress on or before
January 31 of each year. The Commission
may also submit such additional reports to
the President, to the Congress or any com-
mittee of the Congress, and to any unit of
government or organization as the Com-
mission may deem appropriate.
POWERS AND ADMINISTRATIVE PROVISIONS
SEC. 6. (a) The Commission or, on the
authorization of the Commission, any sub-
committee or members thereof, may, for the
purpose of carrying out the provisions of this
Act, hold such hearings, take such testimony,
and sit and act at such times and places as
the Commission deems advisable. Any mem-
ber authorized by the Commission may ad-
minister oaths or affirmations to witnesses
appearing before the Commission or any sub-
committee or members thereof.
(b) Each department, agency, and instru-
mentality of the executive branch of the
Government, including independent agen-
cies, is authorized and directed to furnish
to the Commission, upon request made by
the Chairman or Vice Chairman, such in-
formation as the Commission deems neces-
sary to carry out its functions under this Act.
(c) The Commission shall have power to
appoint, fix the compensation of, and remove
a staff director without regard to the civil
service laws and the Classification Act of
1949. Such appointment shall be made solely
on the basis of fitness to perform the duties
of the position ? and without regard to po-
litical affiliation.
(d) Subject to such rules and regulations
as may be adopted by the Commission, the
Chairman, without regard to the civil service
laws and the Classification Act of 1949, and
without reference to political affiliation, shall
have the power? ?
August 17
(1) to appoint, fix the compensation of,
and remove such other personnel as he deems
necessary.
(2) to procure temporary and intermittent
services to the same extent as is authorized
by section 15 of the Administrative Expenses
Act of 1946 (5 U.S.C. 55a) but at rates not
to exceed $50 a day for individuals.
(e) Except as otherwise provided in this
Act, persons in the employ of the Commis-
sion under subsections (c) and (d) (1) of
this section shall be considered to be Fed-
eral employees for all purposes, including?
(1) the Civil Service Retirement Act, as
amended (5 U.S.C. 2251-2267) ,
(2) the Federal Employees' Group Life In-
surance Act of 1954, as amended (5 U.S.C.
2091-2103) ,
(3) annual and sick leave, and
(4) the Travel Expense Act of 1949, as
amended (5 U.S.C. 835-842) .
(f) No individual employed in the service
of the Commission shall be paid compensa-
tion for such employment at a rate in excess
of $20,000 per annum.
COMPENSATION OF COMMISSION MEMBERS
SEC.?. (a) Members of the Commission
who are Members.of Congress, officers of the
executive branch of the Federal Government,
Governors, or full-time salaried officers of
city and county governments shall serve
without compensation in addition to that
received in their regular public employment,
but shall be allowed necessary travel expenses
(or, in the alternative, a per diem in lieu
of subsistence and mileage not to exceed the
rates prescribed in the Travel Expense Act
of 1949, as amended) ,? without regard to the
Travel Expense Act of 1949, as amended (5
U.S.C. 835-842), the Standardized Govern-
ment Travel Regulations, or section 10 of
the Act of March 3, 1933 (5 U.S.C. 73b) , and
other necessary expenses incurred by them
in the performance of duties vested in the
Commission.
(b) Members of the Commission, other
than those to whom subsection (a) is appli-
cable, shall receive compensation at the rate
of $50 per day for each day they are en-
gaged in the performance of their duties as
members of the Commission and shall be
entitled to reimbursement for travel, sub-
sistence, and other necessary expenses in-
curred by them in the performance of their
duties as members of the Commission, as
provided for in subsection (a) of this section.
AUTHORIZATION OF APPROPRIATIONS
SEC. 8. There are authorized to be appro-
priated such sums as may be necessary to
carry out the provisions of this Act.
The SPEAKER. Is a second de-
manded?
Mr. MEADER. Mr. Speaker, I de-
mand a second.
Mr. FOUNTAIN. Mr. Speaker, I ask
unanimous consent that a second be con-
sidered as ordered.
The SPEAKER. Is there objection to
the request of the gentleman from North
Carolina?
There was no objection.
Mr. FOUNTAIN. Mr. Speaker, I
yield myself such time as I might con-
sume.
Mr. Speaker, before addressing myself
to the legislation at hand, I want to
thank each and every member of the
Subcommittee on Intergovernmental Re-
lations, and also the members of the full
Committee on Government Operations,
for their interest in this legislation and
their cooperation in helping me to bring
it to the House for action. I also want
to thank those members who formerly
served on the subcommittee for the sig-
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.1959 CONGRESSIONAL RECORD ? HOUSE
nificant part they played in our hearings
during the 85th Congress. These include
Representatives Robert E. Jones, Henry
S. Reuss, Chet Holifield, Robert H.
Michel, and former Representative Ed-
win H. May, Jr., of Connecticut. Es-
pecially do I want to pay irly respects to
the ranking minority member of our sub-
committee, the distinguished and able
Congresswoman from New Jersey, Mrs.
DWYER, for her untiring efforts and non-
partisan cooperation in making this leg-
islation a reality. She has worked dili-
gently at all times in a genuinely sincere
effort to find a satisfactory vehicle for
the improvement of intergovernmental
relations. Mrs. DWYER has reflected
credit not only upon herself but also
upon the constituency which she has
the high honor to represent.
Mr. Speaker, the bill before the House
at this time, H.R. 6904, was unanimously
reported with amendments by the Com-
mittee on Government Operations on
July 31, 1959. This bill is intended to
implement one of the principal recom-
mendations made by the committee in
its 30th report to the 85th Congress?
Report No. 2533?and is a result of al-
most 3 years of study of Federal-State-
local relations by the committee's Inter-
governmental Relations Subcommittee.
The need for the advisory commission
proposed in this legislation has been
widely recognized and its establishment,
in my judgment, is long overdue. It is
interesting to note that a similar com-
mission was recommended 10 years ago
by the first Hoover Commission. I
might add that the 2-year study of this
neglected area of intergovernmental re-
lations by the Kestnbaum Commission
was the first official undertaking of its
kind since the Constitutional Conven-
tion in 1787.
The Commission would serve in an
advisory capacity to the President, to
the Congress, and to State and local
government. Its function would be to
provide information and to make rec-
ommendations for the, purpose of facili-
tating sound governmental policies with
respect to intergovernmental activities
and problems. The Commission would
have no administrative responsibilities.
It should be made perfectly clear that
the Advisory Commission is not intend-
ed to be exclusively a Federal agency or
an agency dominated or controlled by
any one level of government. Rather,
it is intended to be a genuine interlevel
body. In effect, the Commission is a
political innovation?a new type of or-
ganization tailored to fit the character
and the needs of our Federal system.
This fact is reflected in the Commis-
sion's composition.
The Commission's 25 members would
be a distributed as follows: 6 from the
Congress, 3 from the executive branch
of the Federal Government, 4 State Gov-
ernors, 3 members of State legislatures,
4 mayors, 2 county officers, and 3 persons
from private life. In drawing its mem-
bers from among active and responsible
public officials at all levels of govern-
ment, the Commission would have the
advantage of its _members' firsthand
knowledge of intergovernmental prob-
lems and their ability to communicate
the Commission's findings and recom-
mendations back to their respective
levels of government. While a 25-mem-
ber body may appear to be unduly large,
I believe that a commission of this size
is justified by the various units of gov-
ernment and points of view that will be
represented.
The need for an Advisory Commission
was well documented in the joint hear-
ings which the subcommittee held this
past June with the Senate Committee
on Government Operations. The wit-
nesses who appeared were unanimous in
their support of this legislation. In ad-
dition, a great many statements were
received from Members of Congress,
Governors, mayors, State legislators,
and private organizations, including the
U.S. Chamber of Commerce and the
AFL-CIO, favoring the Commission's es-
tablishment. Only one statement was
received in opposition. It may be of in-
terest that resolutions urging the enact-
ment of this legislation, have been
adopted by such national organizations
as the Governors' conference, the Amer-
ican Municipal Association, the U.S. Con-
ference of Mayors, and the National
Association of County Officials.
As many of you know, I have always
taken a very critical view personally of
proposals for the creation'of new com-
missions and committees. It has been
my feeling that the need for such bodies
must be clearly demonstrated. In my
judgment, the need has been adequately
established in the present case.
In sponsoring this legislation it has
been my intention that the Commission
would be a modest undertaking served
by a very small but outstanding pro-
fessional staff. There is no need to
create a bureaucracy in support of the
Commission, since the staff will func-
tion primarily to draw upon operational
data available from government agen-
cies, to stimulate and coordinate the
research efforts of public and private
agencies in relation to intergovern-
mental matters, and to fill the gaps that
not exist in the analysis and presenta-
tion of information in this field.
In summary, I should like to empha-
size that the basic objective of the
Commission is to strengthen the ability
of our Federal system to meet the prob-
lems of an increasingly complex society
in this space age by promoting greater
cooperation, understanding, and coor-
dination of activities between the sep-
arate levels of government. Even if the
Commission did no more than provide
the machinery for bringing together
Federal, State and local officials to dis-
cuss matters of mutual interest and
concern, I feel the proposed Commis-
sion would be worth the expense. The
importance of establishing effective
lines of communication between the
levels of government should not be
underestimated. However, I sincerely
believe that the Commission, if given a
fair chance, will accomplish a great deal
more, and I urge my colleagues to sup-
port this legislation which has received
the committee's unanimous approval.
Because of its importance is outlining
the committee's thinking with respect to
14699
the nature and role of the Advisory
Commission, I am placing the text of the
report on the bill?Report No. 742?in
the record together with the bill at the
conclusion of my remarks. This report
also includes representative excerpts
from the testimony of the jelInt hear-
ings which emphasize the special impor-
tance of the Commission and its poten-
tial usefulness.
For purposes of clarification, I am also
placing in the RECORD a tabular analysis
of the Advisory Commission's member-
ship and a chronology of the events con-
nected with this legislation.
Before concluding my remarks, I
would like to comment briefly on the re-
lationship between this legislation and
other proposals now under consideration
for the establishment of a commission
on metropolitan area problems.
Unquestionably, the area of responsi-
bility of the Commission in KR. 6904 is
sufficiently broad to include a study or
studies of metropolitan problems. As a
matter of fact, it was intended and an-
ticipated by our subcommittee that the
Advisory Commission would give atten-
tion to present and emerging metropoli-
tan area problems that are intergovern-
mental in origin or effect. However, the
subcommittee did not consider the ques-
tion of whether or not an intensive full-
scale study of metropolitan problems is
needed and should be undertaken at the
present time. Consequently, I presently
have no personal opinion on this ques-
tion. The Congress in its wisdom will
have to determine, of course, whether or
not there is sufficient evidence to warrant
an intensive metropolitan area study at
this time.
In the absence of such a determina-
tion by the Congress in this session, I
would personally expect the ,Advisory
Commission, when it is duly constituted,
to consider the need for such a compre-
hensive study and to advise whether
it or another body would be best
equipped to study this problem.
However, we should bear in mind that
the area of responsibility intended for
the Advisory Commission is very broad
and there are many pressing problems
that will require the Commission's early
attention. Consequently, I doubt that
it would be advisable for the Congress
to require that the Commission channel
its energies at the outset into any single
segment of the entire field of intergov-
ernmental relations.
H.R. 6904
A bill to establish an advisory commission on
intergovernmental relations
Be it enacted in the Senate and House
of Representatives of the United States of
America in Congress assembled,
ADVISORY COMMISSION ON INTERGOVERNMENTAL
RELATIONS
SECTION 1. There is hereby established a
permanent bipartisan commission to be
known as :the Advisory Commission on Inter-
governmental Relations, hereinafter referred
to as the "Commission".
DECLARATION OF PURPOSE
SEC. 2. Because the complexity of modern
life intensifies the need in a federal form of
government for the fullest cooperation and
coordination of activities between the levels
of government, and because population
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14700 CONGRESSIONAL RECORD - HOUSE
growth arid scientific developments portend
an increasingly complex society in future
years, it is essential that an appropriate
agency be established to give continuing at-
tention to intergovermental problems.
It is intended that the Commission, in
the performance of its duties, will-
(1) bring together representatives of the
Federal, State, and local governments for
the consideration of common problems;
(2) provide a forum for discussing the ad-
ministration and coordination of Federal
grant and other programs requiring inter-
governmental cooperation;
(3) give critical attention to the condi-
tions and controls involved in the adminis-
tration of Federal grant programs;
(4) make available technical assistance to
the executive and legislative branches of the
Federal Government in the review of pro-
posed legislation to determine its overall ef-
fect on the Federal system;
(5) encourage discussion and study at an
early stage of emerging public problems that
are likely to require intergovernmental co-
operation; and
(6) recommend, within the framework of
the Constitution, the most desirable allo-
cation of governmental functions and re-
sponsibilities, among the several levels of
government.
MEMBERSHIP OF THE COMMISSION
SEC. 3. (a) The Commission shall be com-
posed of twenty-four members, as follows:
(1) Six appointed by the President of the
United States, three of whom shall be of-
ficers of the executive branch of the Gov-
ernment, and three private citizens, all of
whom shall have had experience or familiar-
ity with relations between the levels of gov-
ernment;
(2) Three appointed by the President of
the Senate, who shall be Members of the
Senate;
(3) Three appointed by the Speaker of the
House of Representatives, who shall be Mem-
bers of the House;
(4) Four appointed by the President from
a panel of at least six Governors submitted
by the Governors' Conference;
(5) Three appointed by the President
from a panel of at least five members of
State legislative bodies submitted by the
board of managers of the Council of State
Governments;
(6) Four appointed by the President from
a panel of at least six mayors submitted
jointly by the American Municipal Associa-
tion and the United States Conference of
Mayors;
(7) One appointed by the President from
a panel of at least two elected county of-
ficers submitted by the National Association
of County Officials.
(b) The members appointed from private
life under paragraph (1) of subsection (a)
shall be appointed without regard to politi-
cal affiliation; of each class of members
enumerated in paragraphs (2) and (3) of
subsection (a), two shall be from the ma-
jority party of the respective houses; of each
class of members enumerated in paragraphs
(4), (5), and (6) of subsection (a), not
more than two shall be from any one po-
litical party; of each class of members enu-
merated in paragraphs (5) and (6) of sub-
section (a), not more than one shall be from
any one State; at least two of the apphintees
under paragraph (6) of subsection (a) shall
be from cities under five hundred thousand
population.
(c) The term of office of each member of
the Commission shall be two years, but mem-
bers shall be eligible for reappointment.
ORGANIZATION OF THE COMMISSION
SEC. 4. (a) The President shall convene the
Commission within ninety days following en-
actment of this Act at such time and place
as he may designate for the Commission's
initial meeting, The President, or his desig-
nee, shall serve as the Commission's tem-
porary Chairman pending the election of a
permanent Chairman.
(b) The Commission shall elect a Chair-
man and a Vice Chairman from among its
members.
(c) Any vacancy in the membership of the
Commission shall be filled in the same man-
ner in which the original appointment was
made: except that where the number of
vacancies is fewer than the number of mem-
bers specified in paragraphs 4, 5, and 6, of
section 3(a), each panel of names submitted
In accordance with the aforementioned para-
graphs shall contain at least one name more
than the number of vacancies.
(d) Where any member ceases to serve in
the official position from which originally
appointed under section 3(a), his place on
the Commission shall be deemed to be va-
cant.
(e) Twelve members of the Commission
shall constitute a quorum, but two or more
members shall constitute a quorum for the
purpose of conducting hearings.
DUTIES OF THE COMMISSION
SEC. 5. It shall be the duty of the Com-
mission-
(1) to engage in such activities and to
make such studies and investigations as are
necessary or desirable in the accomplish-
ment of the purposes set forth in section 2
of this Act;
(2) to consider, on its own initiative, ways
and means for fostering better relations be-
tween the levels of government;
(3) to submit an annual report to the
President and the Congress on or before
January 31 of each year. The Commission
may also submit such additional reports to
the President, to the Congress or any com-
mittee of the Congress, and to any unit of
government or organization as the Commis-
sion may deem appropriate.
POWERS AND ADMINISTRATIVE PROVISIONS
SEC. 6. (a) The Commission or, on the
authorization of the Commission, any sub-
committee or members thereof, may, for the
purpose of carrying out the provisions of
this Act, hold such hearings, take such tsti-
mony, and sit and act at such times and
places as the Commission deems advisable.
Any member of the Commission may ad-
minister oaths or affirmations to witnesses
appearing before the Commission or any sub-
committee or member thereof.
(b) Each department, agency, and instru-
mentality of the executive branch of the
Government, including independent agen-
cies, is authorized and directed to furnish
to the Commission, upon request made by
the Chairman or Vice Chairman, such in-
formation as the Commission deems neces-
sary to carry out its functions under this
Act.
(c) The Commission shall have power to
appoint, fix the compensation of, and re-
move a staff director without regard to the
civil service laws and the Classification Act
of 1949. Such appointment shall be made
solely on the basis of fitness to perform the
duties of the position and without regard to
political affiliation.
(d) Subject to such rules and regulations
as may be adopted by the Commission, the
Chairman, without regard to the civil service
laws and the Classification Act Of 1949, and
without reference to political affiliation, shall
and remove such other personnel as he deems
have the power-
(1) to appoint, fix the compensation of,
necessary
(2) to procure temporary and intermittent
services to the same extent as is authorized
by section 15 of the Administrative Expen-
ses Act of 1946 (5 U.S.C. 55a) but at rates
not to exceed $50 a day for individuals.
(e) Except as otherwise provided in this
Act, persons in the employ of the Commis-
August 17
sion under subsections (c) and (d) (1) of
this section shall be considered to be Fed-
eral employees for all purposes, 'including-
(1) the Civil Service Retirement Act, as
amended (5 U.S.C. 2251-2267),
(2) the Federal Employees' Group Life In-
surance Act of 1954, as amended (5 U.S.C.
2091-2103),
(3) annual and sick leave, and
(4) the Travel Expense Act of 1949, as
amended (5 U.S.C. 835-842).
(f) No individual employed in the service
of the Commission shall be paid compensa-
tion for such employment at a rate in excess
of $20,000 per annum.
COMPENSATION OF COMMISSION MEMBERS
Sm. 7. (a) Members of the Commission
who are Members of Congress, officers of the
executive branch of the Federal Govern-
ment, Governors, or full-time salaried offi-
cers of city and county governments shall
serve without compensation in addition to
that received in their regular public em-
ployment, but shall be allowed necessary
travel expenses, including subsistence (or,
in the alternative, a per diem in lieu of sub-
sistence not to exceed the rate prescribed in
the Travel Expense Act of 1949, as amended),
without regard to the Travel Expense Act of
1949, as amended (5 U.S.C. 835-842) , the
Standardized Government Travel Regula-
tions, or section 10 of the Act of March 3,
1933 (5 U.S.C. 73b), and other necessary ex-
penses incurred by them in the performance
of duties vested in the Commission.
(b) Members of the Conimission, other
than those to whom subsection (a) is ap-
plicable, shall receive compensation at the
rate of $50 per day for each day they are
engaged in the performance of their duties
as members of the Commission and shall be
entitled to reimbursement for travel, sub-
sistence, and other necessary expenses in-
curred by them in the performance of their
duties as members of the Commission, as
provided for in subsection (a) of this sec-
tion.
AUTHORIZATION OF APPROPRIATIONS
SEC. 8. There are authorized to be appro-
priated such sums as may be necessary to
carry out the provisions of this Act.
ESTABLISHING AN ADVISORY COMMISSION ON
INTERGOVERNMENTAL RELATIONS
Mr. DAWSON, from the Committee on Gov-.
ernment Operations, submitted the follow-
ing report:
The Committee on Government Opera-
tions, to whom was referred the bill (H.R.
6904) to establish an Advisory Commission
on Intergovernmental Relations, having con-
sidered the same, report favorably thereon
with amendments and recommends that the
bill as amended do pass.
The amendments are as follows:
Page 2, line 24, strike "cooperation, and"
and insert "cooperation;".
Page 3, line 3, strike "functions and"
insert "functions,".
Page 3, line 3, after the word "respon-
sibilities" insert ", and revenues".
Page 3, line 4, strike "government." and
insert "government; and".
Page 3, after line 4, add the following new
paragraph:
"(7) recommend methods of coordinating
and simplifying tax laws and administrative
practices to achieve a more orderly and less
competitive fiscal relationship between the
levels of government and to reduce the bur-
den of compliance for taxpayers."
Page 3, line 7, strike "twenty-four" and
insert "twenty-five".
Page 3, line 18, strike "six" and insert
"eight".
Page 3, line 20, strike "five" and insert
"six".
Page 3, line 24, strike "six" and insert
"eight".
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1959 CONGRESSIONAL RECORD -- HOUSE
Page 4, line 3, strike "One" and insert
"Two".
Page 4, line 4, strike "two" and insert
"four".
Page 4, line 13, after the word "party"
and before the semicolon add "and of the
members enumerated in paragraph (7) of
subsection (a), not more than one shall be
from any one political party".
Page 4, line 14, strike "(5) and" and insert
"(5) -"-
Page 4, line 14, after "(6)" insert ", and
(7)".
Page 4, beginning in line 25, strike out
"The President, or his designee, shall" and
all that follows down through line 2 on
page 5.
Page 5, lines -3 and 4, strike out "The
Commission shall elect a Chairman and a
Vice Chairman from among its members."
and insert "The President shall designate a
Chairman and Vice Chairman from among
members of the Commission."
Page 5, line 9, strike "and".
Page 5, line 9, after "6" insert ", and '7".
Page 5, lines 11 and 12, strike out "one
name more than the number of vacancies."
and insert "two names for each vacancy."
Page 5, line 16, strike "Twelve" and insert
"Thirteen".
Page 6, line 15, strike "of" and insert
"authorized by".
Page 8, lines 12 and 13, strike out "expenses,
including subsistence" and insert "expenses".
Page 8, line 14, after "subsistence" insert
"and mileage".
Page 8, line 14, strike "rate" and insert
"rates."
PURPOSE
H.R. 6904, as amended, would establish a
permanent bipartisan Advisory Commission
on Intergovernmental Relations which, on a
continuing basis, will (1) bring together rep-
resentatives of the Federal, State, and local
governments for the consideration of common
problems; (2) provide a forum for discuss-
ing the administration and coordination of
Federal grant and other programs requiring
intergovernmental cooperation; (3) give
critical attention to the conditions and con-
trols involved in the administration of
Federal grant programs; (4) make available
technical assistance to the executive and leg-
islative branches of the Federal Government
in the review of proposed legislation to deter-
mine its overall effect on the Federal system;
(5) encourage discussion and study at an
early stage of emerging public problems that
are likely to require intergovernmental coop-
eration; (6) recommend, within the frame-
work of the Constitution, the most desirable
allocation of governmental functions, re-
sponsibilities, and revenues among the sev-
eral levels of government; and (7) recom-
mend methods of coordinating and simplify-
ing tax laws and administrative practices to
achieve a more orderly and fess competitive
fiscal relationship between the levels of gov-
ernment and to reduce the burden of com-
pliance for taxpayers.
The underlying purpose of the Commis-
sion is to strengthen the ability of our Fed-
eral system to meet the problems of an in-
creasingly complex society by promoting
greater cooperation, understanding, and co-
ordination of activities between the separate
levels of government.
The membership of the Commission would
be drawn, for the most part; from among
active and responsible public officials at all
levels of government. Thus, the Commis-
sion would benefit from both the firsthand
knowledge of its members of the problems
under consideration and their ability to com-
municate the findings and recommendations
of the Commission to their respective levels
of government.
It is intended that the Commission will
provide guidance to the President and the
Congress for the development of sound Fed-
eral policies with respect to State and local
government. The Advisory Commission,
however, would in no way substitute for or
interfere with either the responsibility of
the President for the coordination of Federal
intergovernmental programs or with the leg-
islative responsibilities of the Congress. It
is intended that the Commission will also
provide guidance for the development of
sound intergovernmental relations at the
State and local levels.
The committee wishes to emphasize its in-
tention that the Commission will serve to
strengthen State and local government so as
to preserve the values of our Federal system.
It should be an objective of the Commission
to facilitate discussion of intergovernmental
problems and to identify governmental re-
sponsibilities as they arise, and to make ap-
propriate suggestions and recommendations
to the proper level of government if recog-
nized responsibilities are not being met at
such level.
BACKGROUND
HR. 6904 implements a major recommen-
dation of the 30th report of the Committee
on Government Operations which was
unanimously adopted in August 1958.
In that report (H. Rept. 2533, 85th Cong.,
2d seas.) the committee recommended "the
establishment of a broadly based Advisory
Commission on Intergovernmental Relations,
drawing its membership from the Congress,
the executive branch, Governors, State legis-
lators, mayors, county officials, and private
citizens." The committee envisaged "that
such a large body would meet infrequently,
but would maintain working committees to
deal with special problems and would be as-
sisted by a permanent professional staff."
The recommendation for an Advisory Com-
mission is the result of 3 years of intensive
study of Federal-State-local relations by the
committee's Intergovernmental Relations
Subcommitee. In the course of its inves-
tigations the subcommittee held numerous
public hearings, including field hearings
throughout the country during the fall of
1957, and made questionnaire surveys and
special studies., The subcommittee's inves-
1 The printed hearings and reports are as
follows:
Staff Report on Replies from Federal,Agen-
cies to Questionnaire on Intergovernmental
Relations (August 1956).
Replies from State and local governments
to Questionnaire on Intergovernmental Re-
lations, Sixth Report by the Committee on
Government Operations (H. Rept. 575), June
1957.
Federal-State-Local Relations. Hearings
before a subcommittee of the Committee on
Government Operations, House of Repre-
sentatives (July 29, 30, and 31, 1957).
Federal-State-Local Relations, State and
Local Officials. Hearings before a subcom-
mittee of the Committee on Government Op-
erations, House of Representatives:
Part 1: Boston, Mass., and New York, N.Y.
(Sept. 30, Oct. 1, 2, 3, 4, and 7, 1957).
Part 2: Chicago, Ill., and Kansas City, Mo.
(Oct. 16, 17, 18, 21, and 22, 1957) .
Part 3: Denver, Colo., and San Francisco,
Calif. (Oct. 24, 25, 28, and 29, 1957).
Part 4: New Orleans, La., and Raleigh, N.C.
(Nov. 18 and 19, and Dec. 10 and 11, 1957).
Federal-State-Local Relations (Dade Coun-
ty (Fla.) Metropolitan Government. Hear-
ings before a subcommittee of the Committee
on Government Operations, House of Repre-
sentatives (Nov. 21 and 22, 1957).
Federal-State-Local Relations, Joint Fed-
eral-State Action Committee. Hearings be-
fore a subcommittee of the Committee on
Government Operations, House of Repre-
sentatives (Feb. 18, 1958) .
Federal-State-Local Relations, Nongovern-
mental Organizations and Individuals. Hear-
14701
tigations pointed strongly to the need for a
permanent Advisory Commission to build on
the foundation laid by the Commission on
Intergovernmental Relations (the Kestn-
baum Commission, whose 1955 report to the
President and the Congress was referred- to
and thoroughly studied by the subcommit-
tee), and the need to strengthen communi-
cation and relations between the levels of
government. The Kestnbaum Commission's
2-year study of intergovernmental relations
was the first official undertaking of its kind
since the Constitutional Convention in 1787.
Identical bills .to establish an Advisory
Commission on Intergovernmental Relations
were introduced in the House on May 6, 1959,
by Representative L. H. FOUNTAIN (HR.
6904) and Representative FLORENCE P. DWYER
(Ha. 6905). A companion Senate bill, S.
2026, was introduced by Senator EDMUND S.
Musitro for himself and 25 cosponsors.
JOINT HEARINGS
Joint hearings were held on the identical
bills, H.R. 6904, HR. 6905, and S. 2026, by
the Intergovernmental Relations Subcom-
mittee and the Senate Committee on Gov-
ernment Operations. In these joint hearings,
held on June 16, 17, 19, and 22, 1959, the
committees heard 21 witnesses and received
written statements from 45 additional in-
dividuals or organizations who were unable
to be present.
The witnesses included Members of Con-
gress, Governors, mayors representing' the
two national municipal organizations, a
spokesman for the National Association of
County Officials, and members of the former
Commission on Intergovernmental Relations.
Testimony or statements favoring this
legislation were received from 22 Governors.
In addition, the committee received com-
munications from 16 Governors who were
unable to attend the hearings and who ex-
pressed no opinion on the bills. No Gov-
ernor was opposed to the Commission's
establishment.
State Senator Leslie B. Cutler, of Massa-
chusetts, presented the committees in joint
hearing with a unanimous resolution adopt-
ed June 10, 1959, by the Massachusetts Senate
memorializing the Congress to enact this
legislation-for the establishment of an Ad-
visory Commission on Intergovernmental
Relations. Similar resolutions have also
been adopted by the American Municipal
Association, the U.S. Conference of Mayors,
and the National Association of County
Officials.
NEED FOR COMMISSION
The need for a permanent Commission to
give continuing attention to intergovern-
mental problems has been widely recognized.
Ten years ago the first Hoover Commission
recommended the establishment of a Com-
mission on Intergovernmental Relations.
Last year this committee, after hearings
by its subcommittee throughout the United
States, made a similar recommendation. In
emphasizing the need for a permanent com-
mission the committee stated in its report:
"Occasional studies and ad hoc committees,
however useful, are not an effective substi-
tute for the continuous review of intergov-
ernmental programs and problems from the
ings before a subcommittee of the Committee
on Government Operations, House of Repre-
sentatives (Feb. 25 and 26, 1958).
Federal-State-Local Relations, Federal De-
partments and Agencies. Hearings before a
subcommittee of the Committee on Govern-
ment Operations, House of Representatives,
Mar. 26, 27; Apr. 2, 30; May 7, 8; and June
19, 1958.
Federal-State-Local Relations, Federal
Grants-in-Aid, 30th Report by the Commit-
tee on Government Operations (H. Rept.
2553) , August 1958.
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14702 CONGRESSIONAL RECORD -- HOUSE
standpoint of the Federal system as a
whole."2
Last month a joint hearing of the Inter-
governmental Relations Subcommittee and
the Senate Committee on Government Oper-
ations adduced unanimous testimony in
support of a permanent commission. This
support had no geographical limitations, no
political differences, no divisiveness as be-
tween levels of government.
The advocacy of distinguished witnesses
was universal and reflected many areas of
interest and experience; it also, with un-
concerted foresight, anticipated numerous
arguments which might be made_ against the
proposal by those who are not as close to the
problems involved. This report, therefore,
incorporates excerpts at some length from
their testimony.
EXCERPTS FROM TESTIMONY
Mr. Meyer Kestnbaum, in speaking of the
work of the Commission on Intergovern-
mental Relations which he headed, stated:
"I am sure I need not remind you that the
Commission, in making its report, had in
mind the fact that its study was only the
beginning of a real inquiry into the whole
subject.
*
"I should like to go on record as saying
that the idea of a commission that will give
the President and the Congress the benefit
of careful, incisive research and examina-
tion of the many problems that face us in
this area, is sound, and that it can fulfill a
very important and useful function."
Former Congressman Brooks Hays, who
served as a member of the Kestnbaum
Commission, addressed himself to what is
frequently the first reaction when a com-
mission is proposed. Mr. Hays said:
"I see no escape from what you might call
the proliferation of agencies. Now, I do not
mean that we can go on just multiplying
commissions and agencies, but as we find
some new need, and establish a commission,
we also find the atrophy of commissions that
were born out of another necessity that can
be abandoned.
?
"But to refuse to ,meet a new need, with
imagination, such as underlies this legisla-
tion, is simply not to give proper weight to
the dynamic character of this Federal system.
"I see no escape from it. mother words,
the alternative of doing nothing because you
do not want to yield is to assume that we
have already achieved the ideal. But we
need changes, and inaction is unthinkable
with America's genius for going forward in
other fields.
"One trouble, Mr. Chairman, is that we
have lagged in working this whole political
enterprise, as I- like to call it. People in
America have falsely assumed that the sys-
tem, being what Gladstone said, largely will
operate itself.
"And we have given so much of our intel-
lectual energies in America to other fields?
the fields of business, of education, and of
religious institutionalism, if I might come
into another field that has demanded some
of my attention in recent years, as the chair-
man knows.
"If we could relate these energies to this
problem of getting people to recognize their
mutual interests-and to be less rigid in their
loyalties to local, State, and Federal Govern-
ment so they see the higher level through
imaginative eyes, if we could pour some of
their righteousness into the political enter-
prise as distinguished from the valid other
loyalties of commerce, and so on, I 'think we
would be meeting the demands of the 20th
century, because man is a political creature
2H. Rept. 2533, 85th Cong., 2d sess., p. 39.
and he must not let there to be a lag in this
field."
Representative HAROLD C. OSTERTAG, who
was also a member of the Kestnbaum Com-
mission, in voicing his support countered
the arguments which might be raised
against creating a new commission in this
way:
"Of course, with any of these proposals we
must face the reaction which can be ex-
pected to the creation of another commis-
sion. But when a good cause is to be
served, as in this case, I think this is an
obstacle which can be overcome by logical
and sound explanations.
"Certainly, there is a continuing need for
machinery in our governmental structure to
provide the guidance and the balance essen-
tial to strengthening our system of Govern-
ment. The creation of a continuing Com-
mission on Intergovernmental Relations, in
my judgment, makes possible such machin-
ery and provides the means for the necessary
followthrough which is so important to the
very objectives we seek."
Further explaining his support for an ad-
visory commission, Representative OSTERTAG
said:
Now, on the former Commission on Inter-
governmental Relations, the so-called
Kestnbaum Commission, we concluded ex-
haustive studies in a great many areas of
intergovernmental relations. There was not
agreement on all of our findings but one
thing on which we did agree was that there
was a definite need for continuous study and
observation of intergovernmental relations
in this country. Some felt that this could
best be done from an office in the executive.
Others felt that a broader independent com-
mission would be more suitable for the pur-
pose. So, while there may be various
vehicles for carrying out this work, I feel
that the bills which are being considered by
this committee are a step in the right direc-
tion.
"The aims of the Commission which is
proposed are very sound and worthy of at-
tainment. I note that this is to be an ad-
visory commission, but I would hope that
this committee would consider more meas-
ures for translating the advice and recom-
mendations of such an advisory commission
into concrete results."
The committee heard from still another
former member of the Kestnbaum Commis-
sion, former Gore Sam H. Jones of Louisiana,
who wrote:
"In my opinion there is no validity to the
arguments that 'this is just another com-
mission' and 'it has no power and can do
nothing.' The wisest thing about our Fed-
eral system is that each level of government
is, within limitations, autonomous within its
own sphere. It is, therefore, within the
nature of our system that no one level can
completely dominate the other two levels.
This legal situation makes an advisory com-
mission the only method by which we can
tackle and ultimately solve the accumulated
and constantly increasing problems of our
three-level system.
"And I might add here that, whilst the
controversy between the advocates of States
rights and those who lean toward national
control is very real and highly publicized,
there is another controversy that is just as
determined. I refer to the battle that is now
raging between the advocates of State con-
trol and those who sponsor wider latitude
for municipal and county governments. This
latter controversy is, in many respects, more
difficult than the former because local gov-
ernments are creatures of the State; while
the States are not the creatures of the Na-
tional Government. It is much more im-
portant, therefore, that there should be
brought about some forum for the discussion
- August 17
of State-local problems than for the discus-
sion of national-State problems.
"The proposed Advisory Commission on
Intergovernmental Relations would do both."
Gov. Herschel C. Loveless, of Iowa, ex-
plained the need for an advisory commission
in this way when he appeared before the
joint committees:
"The refinement of the science of inter-
governmental relations, I am firmly con-
vinced, is an important key to the future
success of Government under our Federal
system. To compete with totalitarian na-
tions, who command certain efficiencies,
however repugnant their philosophy may be
to us, we too must develop new methods of
obtaining economy and efficiency in our
democratic system. Studious efforts to im-
prove coordination and eliminate duplica-
tions between the levels of government, both
in regulatory functions and in meeting hu-
man needs, will I am convinced, do wonders
toward obtaining these results.
"Of course, today, as heretofore in our
democracy, our problem is a dual one. We
do not propose to sacrifice any of our basic
liberties under the Federal system in our
zeal to make government work more effi-
ciently. But, as I have stated earlier, I
am convinced that the true prerogatives of
State and local government can best be pre-
served by constant study and reevaluation
of the appropriate roles of each level of gov-
ernment in the complicated pattern of in-
tergovernmental relations.
"Additional studies performed by tem-
porary commissions and ad hoc committees
cannot do the job. The face of government
changes, too rapidly. A permanent, impar-
tial agency, equipped with the necessary re-
sources, is required for this important work.
I submit to you that the proposed Advisory
Commission on Intergovernmental Relations
is the logical answer."
Gov. G. Mennen Williams, who also testi-
fied in person in the joint hearings, said:
"The Advisory Commission would make a
significant contribution, I think, if it were
to review the areas of coordinate Federal and
State responsibility with a view toward rais-
ing those unresolved questions of jurisdiction
and responsibility that should be considered
by both the Federal and State Governments.
I am not suggesting any specific directions
that either the Federal or State Governments
should take but rather recommending that
this important series of problems be given
the kind of study that an Advisory Com-
mission could provide.
*
"There is no question in my mind, how-
ever, that the whole range of Federal activity
should be analyzed constantly with a view
toward relieving it of those responsibilities
that can be done better or just as well by the
States. I suggest this because I feel that the
Federal Government should be strengthened
in its capacity to do those things which it
alone can do. Specifically, I think this en-
compasses the crucial tasks of foreign rela-
tions, national security, and economic stabil-
ity. * * * I have indicated what appear to
me to be the major issues confronting the
American Federal-State system. Study of
these issues is the basic reason why I feel the
proposed Advisory Commission on Inter-
governmental Relations is desirable and
should be established. Therefore, I urge
favorable committee consideration for H.R.
6904 and recommend its quick enactment by
the Congress."
Gov. William G. Stratton, of Illinois, wrote
the committee that--
"In my opinion, the creation of such a
permanent commission is timely and nec-
essary. ?
"The Federal system of government which
is so precious to all of us depends in es-
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1'959 CONGRESSIONAL RECORD ? HOUSE
sence on cooperation and correlated activi-
ties of the various State governments and
the Federal Government. With the explo-
sive growth of population and urbanization
we are now experiencing, it becomes impera-
tive that the relationships among our gov-
ernments must be harmonious.
'A permanent commission could serve as
a clearinghouse for the various studies and
investigations which are being made of the
functions and responsibilities of our govern-
ments. In my opinion, such a commission
would not overlap any of the work now be-
ing done, including that of the Joint Fed-
eral-State Action Committee in which the
Governors' conference plays an important
role."
Gov. Luther H. Hodges, of North Caro-
lina, expressed his view of the Advisory
Commission in this manner:
"From the beginning of my service as
Governor of North Carolina, I have had
many occasions to deal with vital questions
affecting Federal-State relations. It is ray
present privilege to serve as a member of
the Joint Federal-State Action Committee
(an unofficial group of State and Federal
officials), of which the U.S. Secretary of the
Treasury and the Governor of Idaho are cur-
rently the cochairmen. In my capacity as
Governor and in my capacity as a member
of this Joint Federal-State Action Commit-
tee, I have become thoroughly convinced
that there is a strong need for a continu-
ing and officially recognized advisory agency
to give concentrated attention to Federal-
State problems.
"Special studies in this area such as was
done by the Commission on Intergovern-
mental Relations are helpful and of course
the special attention to the overall problem
which has been given by the Intergovern-
mental Relations Subcommittee of the
House Committee on Government Opera-
tions has made a great contribution to bur
understanding in this area. But what is
needed is a continuing advisory agency
which can take up specific selected problems,
work out specific solutions, and provide ade-
quate followup to see that proposed action
on specific problems is given adequate con-
sideration by the Federal Government and
by the States."
Gov. Foster Purcolo, of Massachusetts,
made the point that?
"It is important, moreover, that the pres-
ent Federal grant-in-aid formulas be sur-
veyed to determine whether they are equi-
table. It is desirable, too, to have some
source of clear and accurate information as
to the Federal grant program so that State
officials of both the executive and legislative
branches of government will have a clear un-
derstanding of Federal programs. Such an
understanding is vital in the formulation of
policy and the establishment and adminis-,
tration of programs within the State."
Senator CLIFFORD P. CASE, of New Jersey,
took note in his statement of the effects of
the growth of government that has taken
place on all levels over the past few decades:
"The interrelation of Federal, State, and
local governmental units brought about by
this growth has in turn created problems of
its own. Our Federal system has had to
adjust in a manner undreamed of by our
Founding Fathers. Since much of the ex-
pansion_in government has been on an ad
hoc basis, it is perhaps only natural that
inefficiency and confusion have frequently
accompanied this growth. But it is impera-
tive, for the future, that efforts be made now
to insure a more fruitful cooperation be-
tween the various levels of government. The
proliferation of grant-in-aid programs alone
demands continuing study and evaluation.
And there are numerous areas of jurisdic-
tional conflict which should receive more
attention, particularly in relation to current
growth trends.
"I am convinced that the establishment of
a permanent Advisory Comrnission on Inter-
governmental Relations would do much in
this direction. It is a practical idea and
one that could result in concrete suggestions
for the improvement of our Federal system.
By bringing together officials and experts
from all levels of government, the proposed
Commission can foster a spirit Of coopera-
tion and understanding which is so essential
to a proper functioning of a Federal system,
and which in turn could pave the way for
significant improvements in the administra-
tion of cooperative programs.
"More than ever, we need a group of this
nature to study the continuing impact of a
growing society on a system of government
that was originally established for a rural
nation of only 3 million people. Thanks to ?
the flexibility of our Constitution, we have
been able to adjust to the enormous changes
which have taken place since that time. To-
day, however, we live in an age in which the
consequences of change are much more im-
mediate and significant than they were 170
years ago. If we value the basic outlines of
our Federal system, with its balance of Na-
tional and State jurisdictions, we must pay
more constant attention to the problems as-
sociated with intergovernmental relations.
"I believe that the proposed Commission
would prove a valuable and necessary service
for the betterment of our system of govern-
ment."
Representative Chester W. Bowles of Con-
necticut pointed out the urgency of improv-
ing communication between the levels of
government:
"The basic problem, as both the Kestn-
baum Commission and this subcommittee's
report have pointed out, is one of communi-
cations. It seems impossible in this day and
age that a coordinated, effective means of
sharing information and ideas between the
Federal, State, and local governments does
not exist, but unfortunately this is the case.
"As a former Governor of Connecticut, who
has faced the confusion and inconsistencies
of the present situation from a State capitol,
I feel very strongly that the proposed Advi-
sory Commission on Intergovernmental Re-
lations is a constructive, forward step which
is long overdue, and I sincerely hope that
favorable action on this proposal can be
taken soon."
Senator JACOB H. JAVITS, of New York, em-
phasized the pressing need for systematic
and continuous attention to Federal-State
relations:
"S. 2026, which would establish an Advisory
Commission on Intergovernmental Relations,
deals with a problem which has perennially
plagued our Federal system, and which has
become more pervasive and more acute with
the increasing role of the Federal Govern-
ment in our society. It is high time that
the entire problem of relations between the
States and the Federal Government be given
systematic and sustained attention on a
broad basis, since piecemeal attack on the
problems of conflict of jurisdiction and ad-
ministration between them has proved in-
adequate."
Senator ESTES REFAHVER, of Tennessee,
pointed out the value of the Commission to
the committees of Congress:
"In its broadest sense, S. 2026 would, I
believe, help tremendously in bringing about
a better understanding of mutual problems
among officials of local, State, and Federal
Governments.
"Such an intergovernmental advisory com-
mission as S. 2026 proposes would also be
of great value to the various committees of
Congress in providing a broad perspective
of the total picture of the programs which
now originate in many committees and are-
directed to many different jurisdictions.
Coordination of tax resources is still another
14703
advantage that can be brought about
through the functions of the proposed
agency."
Representative SiLvio 0. CONTE, of Massa-
chusetts, noted that the Commission would
be of -particular value to State legislatures:
"As a former State legislator, having served
for 8 years in the Massachusetts State Sen-
ate, I am particularly aware of the desirabil-
ity of bringing the legislative branch of State
government into closer contact with Federal
officials in connection with intergovernmen-
tal matters. I nate with satisfaction that
the Advisory Commission would facilitate
this objective by including State legislative
representation in its membership. Our
State legislatures are desperately in need of
more information on the many Federal activ-
ities that require State and local cooperation.
Moreover, I believe their interest in these
intergovernmental activities should be stim-
ulated well in advance of the paint at which
the Congress takes legislative action which,
for all practical purposes, necessitates State
and local financial and administrative par-
ticipation. A permanent Advisory Commit-
tee should provide an excellent educational
medium for developing greater State legis-
lative interest in this field. Such a develop-
ment, I believe, would be extremely helpful
to the legislative committees of the Con-
gress."
Senator WINSTON L. PRourv, of Vermont,
stressed that the Commission would not in-
terfere with the prerogatives of State and
loyal government:
'I cosponsored the Senate bill under con-
sideration only after satisfying myself that
such a commission as the bill visualizes
offers no threat of interference with . State
and local units of government. The people
of Vermont have always placed a high value
on their rights and prerogatives under local
units of government. They like to make
their own plans and decisions and they have
not usually gone out of their way to wel-
come what they consider outside interfer-
ence, even though they may know it is in-
tended to be helpful.
"I am convinced that the proposed Ad-
visory Commission on Intergovernmental
Relations will not constitute interference.
On the contrary, it should help protect the
legitimate interests and prerogatives of
State and local governmental units, should
help eliminate overlapping of operations.
provide useful information, and increase
efficiency.
"In addition, such a commission should
prove most useful to the Federal Govern-
ment through assisting Congress in assess-
ing local opinion on intergovernmental
problems, through smoothing out relation-
ships between Federal agencies and depart-
ments and local governments, and in keep-
ing open the channels of communication
among the various levels of government."
Representative BYRON L. JOHNSON, of
Colorado, pointed out several areas where
intergovernmental policies tend to conflict:
"Let me speak first to the powers and
duties of the proposed Commission. As the
members of the committee know very well,
there are a number of areas where Federal,
State, and local interests operate less than
harmoniously. First, there is, for example,
the question of the right of each level of
government to tax property owned by an-
other unit and level of government.
"Second, there is the question as to
whether interest on the debt obligations of
one level of government can properly be
taxed by another as part of income taxes.
"Third, there is the question as to
whether the payments in lieu of taxes now
being made by some Federal agency are ade-
quate and properly related to the impact
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14704 CONGRESSIONAL RECORD ? HOUSE
of such Federal property upon local taxing
jurisdictions.
? ?
"Fourth, there is the question of the rea-
sonableness of the shared receipts and reve-
nues on certain public lands. * * *
a ? ? ?
"Fifth, there are questions as to whether
or not certain taxes act as trade barriers,
contrary to the constitutional intent.
"Sixth, there is a very sensitive question
of the rights of several States to tax the
same property or income, because the Fed-
eral courts have taken a very permissive at-
titude toward multiple and overlapping
State taxation. Congress and the Federal
Government could do much under the Con-
stitution to accomplish substantial uni-
formity in State laws with great benefit to
American businessmen in simplifying their
tax compliance. Such improvements need
not materially reduce State revenues but
should certainly simplify tax administra-
tion and enforcement.
"One of the hidden areas in public finance
Is our lack of knowledge of the cost of com-
pliance upon taxpayers in filling out the
thousands of forms that they are required
to fill out for the thousands of taxing juris-
dictions with which the larger corporations
must deal. Many taxpayers are plagued by
the inconsistencies and complexities of the
various tax jurisdictions having power to
tax them.
"Now, these questions will never be re-
solved if we wait for neighboring States to
work out suitable answers. They might-be
resolved by having a Federal commission
conducting continuing research, issuing pub-
lications, and holding conferences as back-
ground for appropriate changes in law at
each level. ?
"Finally, there is a question of grants-in-
aid, which is specifically provided for by
H.R. 6904."
Mayor Frank P. Zeidler, of Milwaukee, rep-
resenting the U.S. Conference of Mayors,
described the need for an advisory commis-
sion in these terms:
"Bills H.R. 6904 and S. 2026, I believe,
would remedy this lack of formal assembly
to gather information from all levels of gov-
ernment in order to adjust the difficulties
which may exist between these levels. It
would also remedy the lack of sense of direc-
tion which the Federal, State, and local gov-
ernments have as to where each one is going
with respect to each other. It will provide
an avenue for channeling the best technical
information and most comprehensive knowl-
edge that is now possessed by experts in the
United States in the science of government
that this knowledge may be able to improve
the inner workings of government in the
United States."
Mayor Gordon S. Clinton, of Seattle, testi-
fying for the American Municipal Associa-
tion, stated that?"because the Commission
proposed recognizes the need for equitable,
responsible, and knowledgeable representa-
tion on the part of all levels of government
* " we feel that the conclusions reached as a
result of its deliberations will enjoy con-
siderable acceptance on the part of all levels
of government ? * *.
? ? ?
"I am certain that we can effect better
Intergovernmental relationships, that we can
encourage and promote realinement of func-
tional responsibilities at various levels of
government, that we can do some within he
broad framework of government laid down
by our Constitution. And, in so doing, be
secure in the knowledge that our democratic
process and individual freedoms need never
be violated in the course of our work."
Mr. Saul I. Stern, chairman of the Mont-
gomery County chapter of the Maryland
Municipal League, expressed the thinking of
a public official familiar with the problems
of small urban communities:
"I believe that those of you who have been
in contact with State, county, and municipal
officials can agree that the vast majority of
these elective and appointive officials are
very dedicated and devoted public servants.
I believe a great many of the problems, a
great part of the inaction, arises from the
fact that these particular officials are con-
fused, and they have no course or direction
because they are truly bewildered by the
complexities of our population and physical
growth. And of course all of us who are
public officials are staggered by the spiraling
costs of government. We wonder where the
dollars are going to come from to provide the
increased demands of service which our
population is insisting upon. And I think
that if this Commission is set up?and I am
most hopeful that it will be?and if it sits
down to determine the roles, functions,
duties, and services that the various levels
of government should perform in light of
they constantly changing conditions im-
posed by growth, we will have made a real
step forward to the solution of the financial
as well as a good many of our other prob-
lems.
"I think we need to have representatives of
the Federal Government and representatives
of the State, county, and municipal govern-
ments sitting down and discussing these
problems together. We need, however, first
of all to determine what our common prob-
lems are. * * *
? ?
If our Federal system is to be workable, if
it is to be vital, and if it is to be continued
on a strong and firm basis, then we must
have this sort of study. But we must have
survival of all systems of government. It is
my firm belief that as long as people par-
ticipate in government at all levels we will
have a very strong, vibrant, and a really
meaningful democracy. And I am most
hopeful that the Commission on Intergovern-
mental Relations will be set up on a con-
tinuing basis. I think it should be estab-
lished now and should be placed on a perma-
nent basis."
NATURE OF COMMISSION
The committee views the Advisory Com-
mission as a political innovation?a new type
of organization designed especially to cope
with the changing problems encountered in
our Federal form of government. It will be
a genuine interlevel body, not an agency
dominated or controlled by any one level of
government.
In providing for the appointment of Com-
mission members, the committee has sought
to assure the selection of persons possessing
special knowledge and qualifications in this
field. Thus, the committee favors the par-
ticipation of the designated organizations
in the selection of State and local members
since these organizations are well equipped
to recommend outstanding individusls from
their respective levels of government. How-
ever, the committee also favors the appoint-
ment of members from panels as proposed in
H.R. 6904, as amended, because it believes the
President is in the best position to weigh
such considerations as the geographic areas
and the type of communities represented so
as to produce a well-balanced advisory body.'
Similarly, the committee believes that the
President is best situated to designate the
Chairman and Vice Chairman, who should
possess outstanding qualifications for these
assignments and a reputation for objectivity
which will make them generally acceptable
to all levels of government.
August 17
The committee studied two other proposals
for the appointment of Commission mem-
bers. It was proposed, on the one hand, that
the State and local organizations directly
appoint representatives to the Commission,
and, on the other hand, that the selection of
members be left completely to the discretion
of the President. Neither of these proposals
Is believed as desirable as the procedure rec-
ommended by the committee.
It is the committee's intent that the des-
ignated organizations will take geographic
considerations into account in selecting the
panels. Further, the committee is confident
that the President and these organizations
will work together for the purpose of achiev-
ing an objective and geographically balanced
body.
It is the committee's expectation that
members will come to the Commission with
open minds and with the intention of
working toward the ultimate goal of respon-
sihle and effective government at all levels
of our Federal system. In this connection,
the committee also believes that the mem-
bers will not regard themselves as pri-
marily representatives of any particular
group, level of government, or geographic
area for the advancement of a special point
of view. It is intended that the Commis-
sion will not urge a Federal solution simply
because Federal action appears the easiest
course. It is rather intended that it will
encourage the assumption of responsibility
by the appropriate level or levels of govern-
ment with respect to any given problem.
It is the committee's expectation that the
Commission will establish working subcom-
mittees which will give intensive and con-
tinuing study to important problems of con-
cern to the Commission as a whole.
The committee is hopeful that the Com-
mission will function as a coordinating cen-
ter for the study of intergovernmental re-
lations and will encourage and stimulate at-
tention to the problems in this field not
only on the part of government but by the
universities and private foundations as well.
COOPERATION OF THE STATES
Consideration was given to the States
contributing a portion of the Commission's
operating expenses. While the committee
believes joint Federal-State financial support
is desirable in principle, considerable doubt
has been raised as to the practicability of
such an arrangement. In order to avoid
handicapping the Commission, the commit-
tee believes it advisable that the Commis-
sion's operating expenses be paid for the
present wholly from Federal funds.
However, the committee is of the opinion
that the States should and will wish to con-
tribute indirectly to the Commission's sup-
port by furnishing staff assistance to the
Commission and to its working committees.
It is expected that the State and local
governments, collectively through their re-
spective organizations, and individually
where feasible, will cooperate actively with
the Commission in the collection and anal-
ysis of State and local research data and by
the assignment, when needed, of appropriate
personnel to assist in the conduct of specific
research projects.
CONCLUSION
Upon recommendation of the Intergovern-
mental Relations Subcommittee, the full
committee favorably reports H.R. 6904, with
amendments, to establish an Advisory Com-
mission on Intergovernmental Relations.
The committee recognizes that the partic-
ular organizational features provided by this
bill may require adjustment from time to
time in response to experience and changing
conditions. For the present, however, the
committee is satisfied that the bill, as
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1959 CONGRESSIONAL RECORD ? HOUSE
amended, represents a sound and carefully
planned method of accomplishing the im-
portant objectives intended for the Com-
mission.
The committee adopted five principal
amendments of H.R. 6904 to incorporate
recommendations made by witnesses in tht
joint hearings and by the Director of the
Bureau of the Budget. These amendments
are: (1) An elaboration of the declaration
of purpose to clarify and make more explicit
the breadth of the Commission's respon-
sibilities (sec. 2(6). (7) ) ; (2) enlargement
of the membership of the Commission from
24 to 25 members, to provide greater repre-
sentation for county government (sec. 8(a));
(3) enlargement of the size of the panels to
be submitted to the President by the several
State and local organizations for the ap-
pointment of Commission members, in order
to afford the President greater flexibility in
the appointments (sec. 3 (a), (4), (5), (6),
(7) ); (4) increase the number of members
from county government from one to two
(sec. 3 (a), (7) ); (5) provision for designa-
tion of the Chairman and Vice Chairman of
the Commission by the President from among
members of the Commission (sec. 4(b) ).
In addition, the committee adopted a
number of technical perfecting amendments.
ADDITIONAL VEEWS OF HON. CLARE E.
HOFFMAN
H.R. 6904 is an outgrowth of the 30th re-
port by the Committee on Government Op-
erations in the 85th Congress. Among the
findings of that report?a report in which
I concurred?was one to the effect that there
was generally favorable Acceptance through-
out the Nation of the grant-in-aid princi-
ple and most existing grant programs.
However, throughout the hearings upon
Which the report was based, it became ap-
parent that the tangled web of intergovern-
mental relationships, in a complex which en-
compasses echelons ranging from the local to
the national, was sorely in need of continu-
ing review and coordination.
While I am basically opposed to the Fed-
eral Government continually increasing its
authority and activities, especially those
which should and can be performed by the
States and the municipalities, inasmuch as
that tendency will continue, we certainly
must seek means to make the spending and
the controls as efficient and economical as
possible.
Perhaps the creation of a commission such
as that provided for in the bill will tend to
bring about those objectives?that is, less
spending, less waste, greater efficiency.
CLARE E. HOFFMAN.
Analysis of composition of advisory commission
25 members
How appointed
Political affiliation
3 Representatives
3 Senators
3 officers of executive branch_ _
3 private citizens
4 Governors
3 State legislators 1
4 mayors I
2 elected county officers
Speaker of House
President of Senate
President
do
President from panel of at least 8 submitted by
Governors' Conference.
President from panel of at least 6 sumbitted by
Board of Managers of Council of State
Governments.
President from panel of at least 8 submitted
jointly by American Municipal Association
and U.S. Conference of Mayors (at least 2
from cities under 500,000).
President from panel of at least 4 submitted by
National Association of County Officials.
2 majority, 1 minority.
Do.
None specified.
Without regard to political affilia-
tion.
Not more than 2 from any 1 politi-
cal party.
Not more than 2 from any I politi-
cal party.
Not more than 2 from any 1 politi-
cal party.
Not more than I from any 1 politi-
cal party.
1 Not more thin 1 from any I State.
CHRONOLOGY OF EVENTS CONNECTED WITH H.R.
6904
August 1955: Kestnbaum Commission re-
port referred to subcommittee.
December 1955: Questionnaire on inter-
governmental relations sent to State and
local governments.
January 1956: Questionnaire sent to all
Federal departments and agencies.
August 1956: Staff report on 'replies from
Federal agencies to questionnaire.
June 1957: Replies from State and local
governments to questionnaire (sixth report
by committee; H. Rept. No. 575) .
July 29-31,- 1957: Hearings for planning
regional hearings.
September 30-December 11, 1957: Regional
hearings (Boston, New York, Chicago, Kan-
sas City, Denver, San Francisco, New Orleans,
Raleigh).
November 21-22, 1957: Hearing on Dade
County (Fla.) metropolitan government.
February 18, 1958: Hearing, Joint Federal-
State Action Committee. ?
February 24-25, 1958: Hearings, nongov-
ernmental organizations and individuals.
March 26-27; April 2, 30; May 7-8, and
June 19, 1958: Hearings, Federal depart-
ments and agencies.
August 8, 1958: Thirtieth report by Com-
mittee on Government Operations (H.R.
2633), "Federal Grants-in-Aid."
May 6, 1959: H.R. 6904 introduced by Rep-
resentative FOUNTAIN and HR. 6905 by Rep-
resentative Dwrza (after informal discus-
sion with Governors and municipal and
county organizations).
No. 140-19
June 16, 17, 19, and 22, 1959: Joint hear-
ings held by Subcommittee and Senate Com-
mittee on Government Operations on HR.
6904, HR. 6905, and S. 2026. (Testimony in-
vited by letter from every Member of House,
every Governor, all members of State legis-
latures who testified in regional hearings,
Governors' Conference, American Municipal
Association, U.S. Conference of Mayors, and
the National Association of County Officials.
All other interested organizations and per-
sons invited to testify or submit statements
through press release printed in CONGRES-
SIONAL RECORD.)
July 22, 1959: HR. 6904 with amendments
unanimously reported by subcommittee.
July 31, 1959: HR. 6904 with amendments
unanimously reported by Committee on
Government Operations.
August 5,1959: Enactment of H.R. 6904
and S. 2026 urged by unanimous resolution
adopted by annual Governors' Conference
(San Juan, P.R.). (Similar, resolutions
adopted earlier by American Municipal As-
sociation, U.S. Conference of Mayors, Na-
tional Association of County Officials, Massa-
chusetts State Senate, etc.).
Mr. FULTON. Mr. Speaker, will the
gentleman Yield?
Mr. FOUNTAIN. I yield to the gen-
tleman from Pennsylvania.
Mr. FULTON. Did the Hoover Com-
mission recommend this type of commis-
sion be established?
Mr. FOUNTAIN. The first Hoover
Commission did, 10 years ago.
14705
Mr. MEADER. Mr. Speaker, I yield 3
minutes to the gentlewoman from New
Jersey [Mrs. DwYER]
Mrs. DWYER. Mr. Speaker, it is a
pleasure to associate myself with the re-
marks of the gentleman from North
Carolina, the chairman of the Subcom-
mittee on Intergovernmental Relations,
in support of the bill (H.R. 6904) to
create a permanent, bipartisan Advisory
Commission on Intergovernmental Rela-
tions.
The record should show that the legis-
lation has had broad bipartisan backing
from its inception as a principal recom-
mendation in the report of the subcom-
mittee last year. The bill before the
House today is the product