UNFINISHED BUSINESS OF THE FIRST HOOVER COMMISSION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00269R000300010015-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 19
• Document Creation Date: December 15, 2016
• Document Release Date: June 30, 2003
• Sequence Number: 15
• Publication Date: May 1, 1954
• Content Type: REPORT

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. ri~~r`~rr,`. ~
!UNFINISHED BUSINESS
ICI ~ of the
First Hoover Commission
A Citizen's Guide to the Progress o f
Federal Reorgayaization
and'
A Brief Presentatioya of the Organization, Scope
and Aims o f the
Second Hoover Commission
Published by
CITI7_ENS COMMITTEE FOR THE HOOVER REPORT
RF.SEARCI-I DEPARTMENT
Suite 1300, The Wyatt Building
Washington S, D. C.
PUBLICATIONS OFFICE
441 Lexington Avenue
New York 17, N. Y.
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 Approved For Release 2004/05/12 :CIA-RDP86B00269R000300010015-1 MAY 1954
UNFINISHED BUSINESS
of the
First Hoover Commission
As the 83rd Congress enters its final months, 30 major recommendations of the first
Hoover Commission (1947-49) remain unenacted. Meanwhile, the second Hoover Commission
has begun extensive researches. Its Report is not expected to be submitted to the Congress,
however, for at least six months. Before campaigning for the adoption of the second Com-
mission's program, it is highly urgent to realize all possible profit from the first Commission's
recommendations.
THE SECONIy HOOVER CONII~ZISSION
Of(~icially known, like its predecessor, as the Commission on
Organization of the Executive Branch of the (Iovernment, the second
Hoover Commission (also like the first) was unanimously created by
Congress on a bipartisan basis under the Brown-Ferguson Act signed
by President Eisenhower on July 10, 1953. The Commissioners are
HERBERT HOOVER, Chairman CHET HOLIFIErIn
CLARENCE J. BROwN SOLOMON C. HOLLISTER
HERBERT BROWNELL, JR. JOSEPH P. KENNEDY
JAMES A. PARLEY JOHN L. MCCLELLAN
HOMER FERGUSON SIDNEY A. MITCHELL
ARTHUR S. FLEMMING ROBERT C~-. STOREY
JOHN B. HOLLISTER, Executive Director
With ten task forces actively at work, and with a much wider
latitude in its fields of inquiry, the new body is making substantial
progress. (See "Role of the Second Hoover Commission" on Page 16.)
This analysis of the results of the first Commission's worl: is published by the Citizens Committee
for the Hoover Report at this time for three definite purposes
1. To identify the. 30 most important proposals still requiring action.
2. To give the reasons why these 30 recommendations are important.
3. To point out that time still remains for the Administration and COngress to take
action and achieve real results in 1954.
Some 72 percent of the first Commission's recommendations have been adopted. This fact
is gratifying, ~ but it would, be better still to leave a "clean slate" for the new Commission
and the next Congress.
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RECORD OF THE FIRST CONIIVIISSION
Congress voted unanimously for the Lodge-Brown Act which created the first 12-man
bipartisan Commission on Organization of the Executive Branch of the Government. The Act
was signed by President Truman on July 7, 1947. At the initial Commission meeting, held
in the White House, former President Herbert Hoover was named Chairman.
Besides Mr. Hoover, the Commission included: Dean G. Acheson as Vice Chairman, George
D. Aiken, Clarence J. Brown, Arthur S. Flemming, the late James V. Forrestal, Joseph P. Ken-
nedy, Carter Manasco, John L. McClellan, George H. Mead, James K. Pollock, and James H.
Rowe, Jr.
Based on the researches of 24 highly qualified committees, or Task Forces, the Commission
submitted 19 reports to Congress in 1949. These contained 273 recommendations for strengthen-
ing the structure of the Federal Government. To put these proposals into effect, three types
of action were available
25 percent called. for Presidential "Plea'". The Reorganization Act, signed on June 20,
1949, and effective until April 1, 1955, provided that the President could submit Reorganization
Plans to the Congress and that these Plans had the effect of law -unless vetoed within 60 days
by one more than half of the full membership of either the House or the Senate.
40 percent called for new legislation. To get real reforms in the long-established big
departments of Government, sweeping changes in law are usually required. A great body of law
already surrounds the operation of old-line departments and long-established functions of Gov-
ernment. For example, it was necessary to repeal a total of 106 laws -dating back to 1$44 - to
effectuate some of the Commission's recommendations on budgeting and accounting.
35 percent called for adazinistrative action. These required no legislation. The President
and department heads have always had authority to make certain changes, if they wish to
do so. For example, modern mechanized accounting machines can be installed in place of hand-
written ledgers without legislative authorization.
REVIEW OF LEGISLATIVE AQTION
Under the Reorganization Act of 1949, 52 Reorganization Plans have been submitted by
Presidents Truman-and Eisenhower to the Congress. Of these, 39 have taken effect. The specific
record is as follows
Sub~nilted
Disapproved
Approved
Pending
1949
..............
7
1
6
1950
..............
27
7
20
1951
..............
1
0
1
1952
..............
5
g
2
1953
..............
10
0
10
1954
..............
2
0
0
2.
ToxnL
52
11
39
2
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In addition, over 100 bills embodying various recommendations of the Commission were
introduced in Congress. Many of these bills were neglected. Others were given extensive hear-
ings before Congressional Committees. In fact, nearly 200 hearings were held on the Plans and
on the bills together. By the end of the 1953 session, 58 of these bills had been enacted as Public
Laws. So far, during the 1954 Congressional-session no enactments have occurred.
Thus, counting the 39 approved Presidential Plans and the 58 laws, there have been 97
legislative enactments attributable to the hoover Commission's Report. All of these occurred in
the years from 1949 through 1953.
Many other Hoover Commission recommendations were adapted by administrative ac-
tion -those which did not require legislation. As a result, the score on accomplishing the Com-
mission's recommendations is
Recommendations made by the Commission ........................
273
Deduct : Accomplished ...........................................................
116
Mostly accomplished .............................................
35
Partially accomplished ...........................................
45
___..
196
Recommendations remaining .......................................................
77
? Deduct : Recommendations which are obsolete, no longer
of importance or duplicative with, or explana-
tory of, other recommendations ..........................
11
Important remaining recommendations of the Commission
66
Of these recommendations, there are 30 remaining which may be considered major in nature.
PRINCIPAL ACCOMPLISHMENTS TO DATE
While numerous great and small improvements have resulted from the first Commission's
endeavors, some were particularly noteworthy:
1. Better teamwork in the Armed Services was developed by the National Security Act
Amendments of 1949. Speed in meeting the Korean crisis was the result.
2. More efficient "housekeeping". The new General Services Administration combined
four previous agencies. It rapidly went about cutting out duplication and waste in Federal pur-
chasing, storage, inventory control, records management, and building operations.
3. Internal reorganization of the State Department, clarifying staff responsibilities and
expediting action in many areas.
4. A modernized Budgeting and Accounting System paved the way to the greatest Fed-
eral fiscal advance in three decades.
5. The Labor Department was rebuilt to Cabinet stature.
6. Modernized accounting procedures were initiated in the Post Office Department, elimin-
ating much delay and duplication.
7. The Bureau of Internal Revenue was taken out of polities.
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8. Anew Department of $ealth, Education and Welfare was established.
9. The Department of Agriculture was reorganized and many of the_ Commission's pro-
posals for that Department were put into effect.
10. Airline subsidies were separated from payments for the carrying of mail.
IMPORTANT SAVINGS REALIZED TO DATE
The 24 Task Forces of the Commission made estimates of savings and budget reductions
which in total amounted to $3 billion per annum - if all recommendations were accomplished and
fully implemented. These estimates were based upozY a Federal budget of slightly over $40 bil-
lion. The amounts so estimated naturally would increase -with the virtual doubling of the Federal
budget in subsequent years. Admittedly such savings are difficult to trace, however. They become
obscured in the new expansion. of the budget.
Among the more important savings or budget reductions attributable to the Commission
are these:
1. General Services ddministration. On June 30,1953, Jess Larson, the General Services
Administrator at that time, stated in an official press release
"GSA's third year is especially notable because it was the first year in which
most of our programs began to come into full swing. Flanning and organizing
were necessary to a sound start and laid a foundation for the concrete achieve-
ments of the last year. .
"As a result, GSA can account for specific, identifiable savings. amounting to
much more than $100,000,000. They are far larger than the savings in the pre-
ceding year when many money-saving practices were in their early operating
stages. The savings, in fact, climbed to a point where they were equal to about
three-fourths of GSA's operating expenses of $169,000,000 for the year. In other
words, for every. dollar in operating cost, there were approximately 75 cents in
savings, and GSA still performed its service operations for the other agencies of
the Government."
On January 25, 1954, Mr. Edmund Mansure, the present Administrator, told the Washington Min-
isterial Union that savings of $150 million were expected for the fiscal year ending June 30, 1954.
2. Federal Medical Services. President Truman, acting upon information in the Com-
mission's Task Force Report, cancelled. a Congressional authorization to construct 16,000 hos-
pital beds for the Veterans' Administration - on the grounds that these beds were not necessary
and could not be staffed adequately. The official Veterans' Administration report regarding the
savings from this action estimated the amounts as follows
a. Cost of operation for 16,000 beds ..........................$60.5 million (annual)
b. Cost of constructing 16,000 beds ........................$335.5 million (one-time)
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3. National Security Organization. Official reports of the Department of Defense through
the calendar year 1950 listed well over $300 million in annual savings of an administrative
nature.
4. Post 0~`ice. The Commission recommended that special services and penny postcards
be placed upon aself-supporting basis. While this recommendation has not been put -into effect
fully, as yet, postal revenues have been increased by between $50 million and $100 million annually.
Described in this section are some of the more important savings from reorganization.
There are numerous others. If the remaining recommendations are adopted, and all of the 273
recommendations vigorously exploited, further large savings are possible.
THE ~ ~ UNFINISHED BIISINESS ~ ~ CAN BE COMPLETED
Many of the remaining 30 major recommendations require Congressional action. Some
can be effected by the President or the department heads acting on their own authority. In the
moxe important cases, however, the President must. submit Reorganization Plans to Congress, or
legislation must be initiated.
While some of these recommendations have proven to be controversial in the past, there
has been major agI?eement between two great political parties on the need. This should make
substantial accomplishments possible.
The 1952 Democratic Platform included the The 1952 Republican Platform included the
following plank: following plank:
"We endorse in general the program of gov- "We pledge a thorough reorganization of the
enunent reorganization along the lines recom- Federal Government in accordance with the prin.
mended by the Hoover Commission and we ciples set forth in the report of the Hoover Com-
cammend our President [Mr. Trumarn] for his mission, which was established by the Republican
earnest efforts to bring about governmental 80th Congress. We denounce the duplicity is
reforms and reorganization to promote Federal submitting to Congress for approval, reorganiza-
efficiency. We condemn the actions of those tion plans which -were represented as being is
who make speeches in favor of economy and accordanice with the principles of the Hoover
efficiency but vote against it for partisan rea- Commission recommendations, but which in
sons when major aspects of the reorganization fact were -actually. intended to further partisan
program are up for a vote: ' political purposes of the Administration in power."
During the Presidential campaign, both President Eisenhower and (1-overnor Stevenson
strongly indicated their support for further action on the Reports of the first Commission. Where
such unanimity exists, further action should not prove difTicult.
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THE 30 IIVlPORTANT REFORMS ,AND THEIR SIGNffTC141~TCE
The 30 major recommendations fall into seven general categories
I. Recommendations of principal concern to the Executive Office of the President.
II. Personnel recommendations.
III. Fiscal and financial recommendations.
IV. Recommendations affecting agriculture and natural resources.
V. Recommendations affecting commerce .and transportation.
VI. Recommendations affecting regulatory activities.
VII. Recommendations requiring transfers of functions or of bureaus.
I. RECOMMENDATIONS OF PRINCIPAL CONCERN TO THE EXECUTrVE OFFIOE OF THE PRESIDENT
L ~ The 65 agencies under the direct supervision of the President should be
consolidated ixito about oae-third that nuanber.
Recommendation No. 19, Re?ort on General Management of tke Executive Branch.
Importance. While some agencies have been abolished since the first Commission reported in
1949, almost as many new ones have been created. Hence, the number of independent departments,
agencies and commissions today stands at 64. As the first Commission pointed out, no President
can possibly find time to give close supervision to so many agencies.
Method of Accomplishment. Some abolitions and mergers can be made by the President without
legislation but most of the actions call for Reorganization Plans or legislation.
2. there should be as iaven~tory of iafierdepartntental coaunittees by the Presi-
dent's Officae at least. once a-year and those whose work is complete should
be terminated.
-Recommendation No. 8, Repost on General Management of tTte Executive Branch.
Importance. Only by this means can the numberof `interdepartmental committees be kept within
bounds. In 1950, the Secretary of Defense - to cite just one department -abolished hundreds of
such committees. No one knows how many the Executive Branch has now, but it has been several
years since a concerted effort has been made to reduce their number. Elimination of unnecessary
committees will save time and money and free the machinery of (Iovernment from many needless
impediments.
Method o f Accomplishment. This recommendation can be accomplished by administrative action
of the President's staff.
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' IL PERSONNEL RECOMMENDATIONS
3. Congress should make it possible for the Executive Breach to provide for
the training of its moat promising career employees.
-Recommendation No. 4 (c), Report on Personnel Management.
Importance. In recent years there has been a gradual improvement in the training of career
employees, but the Civil Service Commission has long held that legislation is required for an
adequate program. Private industry and selected Governmental agencies have long since proven
beyond doubt that a training program is essential to better management.
Method o f Accomplishment. Mainly legislation.
4. Congress should enact' a comprehensive pay administration policy aPPB?-
cable to the entire Executive Branch,
Recommendation No. 16, Report on Personnel Management.
Importance. The Federal Government has numerous pap structures and no uniform pay pol-
icy. In the Post Office, for example, there are two pay structures. The same is true of the State De-
partment. To insure fairness, there should be one personnel system and one pay policy for all
Federal civil servants at home and abroad.
Method . o f Accomplishment. Legislation. ?
5. The heads of departaLe~nffi and agennciea should be regained to provide far
the positive participation of employees in the formulatioai sad improvemea~t
of Federal personnel policies and practices
-Recommendation No. 4 (d), Report on Personnel Management.
Importance. For valid reasons of public policy, the Federal Government has never developed a
labor-management or employee-participation program similar to those found in private industry.
Nevertheless, much can be done to improve these relationships through the formulation and im-
provement of policy. A consistent drive in this respect would give the nation a more closely-
knit and efficient career service.
Method of Accomplishment. Important steps can be taken by administrative action. Some legisla-
tion may, however,- be required.
6. The President, by Executive order, should require all major departments
and agencies to conduct vigorous recruiting programs for, and to examixne
and make final appointme?rts to:
(a) All high-level administrativie, prafessionaL sad technical positions.
(b) All positions peculiar to the agency.
(c) Any other classes of poaitious which, is the judgment of the Givil Serv-
iee . Commission, can be filled more effectively by the agea~cies
-Recommendation No, 6, Report on Personnet Management.
Importance. This recommendation is a fundamental one if we are to improve Federal personnel
activities and rid the Civil Service system of red tape. For many decades the Civil Service Com-
mission has often operated like a "central hiring hall" for the entire ?Federal structure:. Some
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progress has been made towards -the objective of letting the responsible management officials
select their own subordinates under a strict merit system (as in the FBI and the TV`A). Recently
this program has been accelerated, but it is still necessary to .set up a full program for decentraliz-
ing personnel recruitment, subject to standards, inspection and central control.
Method of Accomplishment. Full implementation would require legislation.
7. Departments and agencies should be required, consistent with funds avail-
. able for such purposes, to recruit each year a speciffed number of young
men sad women for ~uaior professional, scientific, technical. and admin-
istrative pasts.
Recomxtendatiox No. Y0, Re?ort on Personnel Managemtnt.
Importance. The continuing need for bringing new. blood into the Federal service is too obvious
to require comment. Steps have been taken to increase the number of young men and women
of promise brought in. On the whole, however, the C4overnment's record in this area has not
been impressive.
Method o f Accomplishment. Much more can be done than is being done - by administrative ac-
tion of the President and the Civil Service Commission. Full implementation of such an effort
would call for legislation and perhaps more funds.
8. The coafiriaation of Postmasters by the Senate should be abolished.
-Recommendation No. 5, Re?ort ox the Post O~'ice.
Importance. The nation can never have an efficient Post Office Department so Long as more than
40,(}()0 postmasters are selected on a basis of partisan politics. Removal of these postmasters and
of almost as many rural mail carriers from the political arena is long overdue.
Method of Accomplishment. Reorganization Plan or legislation.
9. Personnel is the permaaeat State Department establishment is Washiagtoa
and the personnel of the Foreign Service above certain levels should be
amalgamated (into a single foreign affairs service obligated to serve at hams
or overseas sad constituting a safeguarded career group administered
separately from the general Civil Service.
-Recommendation No. 20, Re?ort ox Foreign A~'airs.
Importance. This recommendation has been made in several studies of the State Department
subsequent to that of the Hoover Commission. So long as there are two personnel systems in
the Department with different pay scales, retirement plans, and terms of employment, it will
never be possible to have a unified career system in the Department.
Method o f Accomplishment. Legislation.
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III. Fisc~, exD FixOxoier. REOOazrn.xneTTOxs
10. An Accountant General should be established under the Secretary of the
Treasury, arith authority to prescribe general accounting methods and
enforce accounting procedures, subject to the approval of the Comptroller
General. The Accountant General should, on a report basis, combine
agency accounts into the summary accounts of the Government and pro-
duce financial reports for the information of the Chief Executive, the Con-
gress, and the public.
-Recommendation No. 10 (a) (b), Report ox Budgeting and dccouuting.
Importance. No one official in the Executive Branch is now responsible for Federal accounting.
.A.t present Federal accounting is concentrated under athree-man committee. Although improve-
ments have been made, it will be years at the present rate before the Federal (Iovernment has a
good accounting system. (There never has been a certified accountant in the leading Federal
accounting position during the 33 years of its existence.)
Method o f Accomplishment. Legislation, although the President can accomplish much ender his
executive powers.
11. Supervision of the operations of ...the Federal Deposit Insurance Corpora-
tion, and the Export-Import Bask should be vested in the Secretary of the
Treasury.
-Recommendation No. 3, Report on Treasury Drpareme>t.
Importance. These two independent agencies report directly to the President. Their functions
are similar to other fiscal functions of the Federal (1-overnment, which are concentrated in the
Treasury Department. While a good case ca,n be made for transfer of the Federal Deposit
Insurance Corporation to either the Treasury or to the Federal Reserve Board, the important
thing is to put it somewhere - to reduce the number of independent agencies reporting to the
President. This can. be done without lessening its financial independence. Since -the Export-
Import Bank is now under the chairmanship of the Secretary of the Treasury, there seems
no good reason why it should not be placed in his Department.
Method o f Accomplishment. Reorganization Plan.
12. The Treasury Department should examine and report to t1ye~ President sad
Congress gemiaanually upon all lending agencies is liquidation.
-Recommendation No. 8, Report on Treasury Depart7--ent.
Importance. The problem of liquidating agencies without lengthy delays has existed for many
years. Where such agencies are permitted to liquidate themselves, too often they only "drift ".
Were the Treasury Department to be made responsible for all liquidations, substantial savings
could be attained.
Method o f Accomplishment. The President could accomplish this recommendation by Executive
Order. In the long run, legislation would insure better results.
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13. The Conmsission recommends that the insurance operations of the Vet-
erana Administration, including dhe proae,ssing of death claims from ben-
ficiaries, bye separated #roaa, all other programs of the .Administration and
b~e organized as a Government corporation, under the Government Gorpo-
ration Control 'Act of 1945. The Administrator should be President, with
authority for day-by-day operations vested in an Executive Vioe President
and General Manager, appointed by the-Administrator. The Administrator
should also be gives authority to appoint apart-time advisory board.
-Recommendation No. 3, Report on l~eterans' A?$'airs.
Importance. Following the recommendations of the first Commission, veterans' life insurance
has been segregated from most other VA operations. As a result the service has improved greatly.
However, insurance is a business-type operation, and so long as it is run as a straight-line Govern-
ment agency, rather than as an incorporated business, VA .insurance will never be operated as
etTiciently as it can be.
Method o f Accomplishment. Legislation.
IV. RECOMMENDATIONS AFFECTING AGRICULTURE AND NATURAL RESOURCES
14. Inspection costs on farm products, when imposed for the benefit and pro-
tection of the general public, should be paid by tha Federal Government.
Inspection and grading services primarily for the benefit or protection of
producers or pmaessors should be paid for by the producers or processors.
--Recommendation No. 10, Report on Department of Agriculture.
I~rl~portance. These recommendations are clearly consistent with the expressed policies of the
present Administration. Although they have been implemented partially, further action is needed.
Method o f Accomplishment. Legislation..
15. Custo?ns receipts now allotted directly to the Department of Agriculture
should be paid into the Treasury and direct annual appropriations should
be made by the Congress for specified purposes.
-Recommendation No. 11, Report on Department of Agriculture.
Importance. The Congress granted to the Department of Agriculture, same years ago, the use
of 30 percent of certain customs receipts for various purposes. Under this arrangement, unneces-
sary obscurity results with respect to the responsibility of Congress for both appropriations and
Government accounting. It is necessary for the Congress to re-establish its obligation to appropriate
all public monies, and cease automatic grants.
Method of Accomplishment. Legislation.
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16: The Depariznent of Agriculture should be required to report to the Presi-
dent and the Congress on all irrigation or reclamation projects about their
use ar timeliness.
-Recommendation No, 12, Repor! an Department of Agriculture.
Importance. The planning and operation of irrigation projects has been marked by long-standing
friction between the Bureau of Reclamation in the Department of the Interior and the Depart-
ment of Agriculture. Programs from one department have at times gone to Congress without
prior knowledge of the other, Thus, for more efficient operation, it is again urged that the De-
partment of Agriculture be granted the opportunity to comment on all irrigation projects with
respect to their impingement on, or applicability to, agricultural needs.
Method o f Accomplishment. Administrative Action.
17. (a) The Forest Service af~ the Department of Agriculture, and the Bureau
of Land Management of the .Department of the Interior, should he
consolidated.
. -Recommendation No. 14, Report on Department of Agriculture.
Importance. The two agencies perform approximately the same functions. In some instances,
they operate in contiguous areas. Consolidation would eliminate duplication and uneconomical
activity. At present timber buyers, for example, have to deal with two agencies. Uniform policies
of forest management and timber sales could be developed and a saving to the Federal (Iov-
ernment would result. On land controlled by the Forest Service, 25 percent of gross revenues are
returned to the states while on some forest holdings of. the Bureau of Land Management from 50
to 75 percent of the revenue must be paid to the states.
Method o f Accomplishment. Reorganization Plan.
(b) Major land agencies should be grouped, in the Department of Agri-
culture, except those involved in activities with. respect to mineral
questions. Water development activities should be grouped in the
Department of the Interior.
-Recommendation No. I5, Report on Department of Agriculture.
Importance. There has been a long and wasteful conflict due to overlapping between certain
soil conservation,. range, forest, and allied services resulting from the division of functions be-
tween the Department of Agriculture and the Department of the Interior. Basic organizational
changes are needed to resolve these conflicts.
Method o f Accomplishment. Reorganization Plan.
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lfl. Rfvers sad harbors and flood control activities of the- Carps of Eagir~eesa
should be transferred to-the I)epasla~ent of the Interior.
Recommendation No. 9, Report on Departonent of the Interior.
Importance. There- have been, and there still are, glaring defects in the organization of such
services as water development and use in the Federal C~avernment. Duplication and overlapping
of effort, as well as policy conflicts, continue to exist between the Corps of Engineers and the
Bureau of Reclamation in the construction of, and the jurisdiction over, water, resources pro-
jects. There is no fundamental reason why rivers and harbors and flood control work should be
directed exclusively by the Army Engineers, particularly since civilians actually supply most of
the detailed lmowledge and continuing direction, and since such a vast proportion of funds is spent
on multiple-purpose dams, virtually identical with -and often on the same rivers as -those
of the Department of the Interior. Therefore, the transfer of those activities of the Corps of Engi-
neers to the Department of the Interior should be expedited in the best interests of efficiency.
Method o f .Accomplishment. Reorganization Plan.
V: RECOMMENDATIONS AFFECTING- COMDdERCE AND TRANSPORTATION
19. The National Advisory Coanmittae for Aeronautics should be incorporated
within the Bureau of Civil Aviation fn the reconstituted Department of
Coanmerce.
Recommendation No. 6, Report on Department of Commerce.
Importance. The National Advisory Committee for Aeronautics is basically a research organiza-
tion which supervises and directs scientific studies for civil and military aviation. Its functions
do not appear to be of such nature as to require the direct supervision of the President. More-
over, it is unsound organization for a committee type of operation to be responsible for admin-
istering such an operational program.
Method o f Accomplishment. Reorganization Plan.
20. The Secretary of Commerce should be assigned the duty of maldag over-
. all route programs for air, land, and water transportation.
Recommendation No. 12, Report on De?artment of Commerce.
Importance. Efficiencies in policy determination and administration will be furthered by the
carrying out of this recommendation. Moreover, it is in accordance with the traditional and leg-
islative purposes of the Department ... "to foster, promote and develop the foreign and do-
mestic commerce; the mining, manufacturing ... and the transportation facilities of the United
States." [underscoring added]
Method o f Accomplishment. Reorganization Plan.
21. The promulgation of rules relating to the safety of botlx commercial and
non-commercial aircraft operation including contract operations, should
b~e transferred from the Civil Aeronautics Board to the Department of Com-
merce, subject to right of appeal. Investigation of major aircraft accidents
should remain with the Civil Aeronautics Board.
-Recommendation No. 11, Report on Regulatory Commissions.
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Importance. The Department of Commerce, by statute, is much concerned with transportation,
particularly in the Civil Aeronautics Administration. This recommendation is a logical part of
the plan to consolidate executive functions dealing with transportation in that Department.
Method of ,d.ccomplishment. Either legislation or Reorganization Plan.
22. The United States Coast Guard -and probably certain marine functions
of the Bureau of Custoas; -should be transferred to the laepartment of
Con~anerce.
-Recommendation- No. Z (b), Report on Treasury Department.
Importance. On the principle that the Department of the Treasury should be responsible for the
essential financial processes of the Federal (government and that nonfisca,l units should be trans-
ferred from the Treasury to other departments, the above recommendation is still valid. A Treas-
ury Department built along functional lines as the central finance agency of the Government has
been the objective of the Commission. Moreover, since the repeal of the XVIII Amendment, the
Coast Guard has been fundamentally concerned with transportation, afunction of the Department
of Commerce.
Method o f Accomplishment. Reorganization Plan.
VI. RECOMMENDATIONS AFFECTING REGIII,ATORY ACTIVITIES
23. Members of the Securities and Facchange Commission, Federal Power
Commission, and Federal CoQnmunications Commission should be remov-
able only for cause, as is the case with other cammiasio~ns.
-Recommendation No. 2 (a) (b) (c), Report on Regulatory Commissions.
Importance. The tenure of members of the regulatory commissions varies unnecessarily. Provi-
sion is made in some instances for removal from office only for cause, while in other cases members
are removable at the President's pleasure. This recommendation is still valid and needs implement-
ation in the interest of uniformity.
Method o f Accomplishment. Legislation.
24. All regulatory ce~f*++~ions should have bipartisan meaib~ership.
-Recommendation No. 12, Report on Regulatory Commissions.
Importance. The independent regulatory commission is still a comparatively new feature of the
Federal Government. The activities of these commissions center in the regulation of some form of
private. activity and they function as agencies independent of any Executive Department. As
they provide for the proper disposition of complicated issues which are often of great. significance
to the nation's economic development, their efficient operation is imperative. Clearly, the mainten-
ance of their independent nature demands bipartisan representation. Two of the independent
agencies, the Federal Reserve Board and the National Labor Relations Board, are not bipartisan
by law.
Method of Accomplishment. Legislation.
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VII. . RF,COMMENDATIONS RERUiztING TRANSFER OF FUNCTIDNS OR OF BUREAUS
25. This Commission recommends that the statutes be ameaded to provide
that a Camsniasioaer, upaa the expiration of his term, oontiaue to hold
office until his successor has been appointed and qualified; subject, of
course, to the general statutes on "holdover" appointments.
Recommendation No. 3, Report on Regulatory Commissions.
Importance. In the past,- gaps in the membership have frequently occurred, resulting in the un-
necessary disruption of a Commission's work. This recommendation represents an easy cure
for the situation.
Method of .Accomplishment. Legislation.
26. The Commission therefore recommends that the statutes be ameaded so
as to permit the commissions to delegate routine, prelimia,ary, and lees
important work to members of the staffs under their supervision,
-Recommendatwn No. 6, Report on Regulatory Commissions.
Importance. Regulatory Commissions deal. with a multitude of minor matters as well as major
problems. Statutory authority at present prevents the delegation of minor problems to staff
members in some instances.
Method of Accomplishment. While some Commissions already leave this authority, legislation is
needed for others.
27. All commercial fishery activities of the Department of the Interior should
be transferred to a Bureau of Comsmercial Fisheries is the Department of
Commerce.
-Reeommendatio> No. 13, Report on Department of Commerce.
Importance. The first Hoover Commission recommended that a Bureau of Commercial Fisheries,
related as it would be to industrial and commercial activities as well as to the Merchant Marine,
should be established in the Department of Commerce. This proposal aims at avoiding duplica-
tion of effort through consolidation of all Federal operations in the maritime field.
Method of Accomplishment. Reorganization Plan.
28. The Bureau of Narcotics should be transferred to the Department of Justice.
-Recommendation Na. 2 (c), Report o> Treasury Department.
Importance. The work of the Bureau of Narcotics is of two types : (1) law enforcement which
comprises about 80 percent 'of its work; and (2) regulation of the flow and manufacture of drugs
and preparations made from narcotics which comprises about 20 percent of its work and is per-
formed primarily through licensing. As it is principally a law enforcement agency, benefits will be
obtained by transferring this Bureau to the Department of Justice.
Method o f Accomplishment. Reorganization Plan.
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29. The Commisslon revoma~ends the estabIfsbment of a United Medioal Ad-
miaistration iata which would be consolidated most of the large-scale
activities of the Federal Government is the fields of medical cars, medical
research, and public health (ia which preventive medicine is included).
-Recommendation No. 1, Repart an Federal Medical Activities.
Importance. The Commission found nearly 40 agencies attempting to render varying degrees of
medical service to about one-sixth of the Nation's population. The primary objective in urging the
adoption of this recommendation is to eliminate the overlapping of activities, enormous waste and
inefficiency that now characterizes our Federal medical program. Specifically the objectives are
First : To provide better medical care.
Second: To create a better foundation for medical training.
Third: To reduce the drain of doctors from private practice.
Fourth : To provide a better climate for medical research.
Fifth : To make possible a better state of medical preparedness for war.
This plan permits each major agency an advisory voice in the management of the Federal
Medical program, yet represents a program of medical care that would serve the basic interests
of the whole nation.
Method of Accomplishment. Requires legislation for best results.
30. (a) The Bureau of Indian Affairs should be transferred from the Depart-
ment of the Interior to the Department of Health, Education and
Welfare.
-Recommendation No. 8, Report on Indian A$airs.
Importance. The dominant objective of the government's policy with respect to Indians is to
integrate them into the general population. Such a policy will be furthered by transferring the
Bureau of Indian Affairs to the Department of health, Education and Welfare. The problems
of education, health and welfare are more important for assimilation of the Indians in the general
population than are the application of technical standards in farming, forestry and cattle rais-
ing. These latter practices can be developed through coordination with the Departments of
Agriculture and the Interior which specialize in these fields. This step should be taken as a for-
ward move toward the ultimate goal of the Bureau which is to abolish the need for its own existence.
Method of Accomplishment. Reorganization Plan.
(b) In the establishment of tribal and Indian enterprises on a corporate
or cooperative basal, each important enterprise should have its own
charter of basic policies and objectives, and a hoard of directors pre-
ponderantly draws from the Indian, community with the other m~em-
bezs appointed because of their business or technical competence.
-Recommendation Nos. 5 and 6, Report on Indian A$airs.
Importance. The corporate device would be valuable in ending the troublesome problem of "heir-
ship lands.". Over the years these lands have not been utilized because agreement on operations
could not be achieved with the many heirs that share the ownership. The Commission's recom-
mendations are designed to strengthen tribal government and leadership as a stage in transition
from Federal tutelage to full participation of the Indians in state and local government.
Method of Accomplishment. Legislation.
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.THE .ROLE OF ,THE .SECOND, HOOVE#I. C.OMiv,~ISSION
On July 10, 1953, President Eisenhower signed the, bill, establishing the second bipartisan
Hoover Commission. This was a little .over four .years after the original Commission ceased to exist.
While the second'Commission has the same fundamental objectives as the first Hoover Commission,
it has new and wider authority. In its important concern with matters of national policy, the scope
of the second Commission permits it to cut .across department and. agency lines. Its predecessor, on
the other hand, concentrated more heavily on organization and only rarely considered such policy
matters as Federal withdrawal from activities competitive with .private business.
Perhaps the best expression of the mission of -the second Hoover Commission was made by
former President Herbert Hoover himself, in a speech on March 10, 1954, when he declared
"The major purpose of this Commission is to
find ways of saving money for the taxpayers."
The new Commission, whose members are listed on page one, consists of twelve appointees -
four Commissioners appointed by the President, four by the Vice President and four by the Speaker
of the House. In the same way that recommendations were developed by the first Commission, the
work of the second Hoover Commission is proceeding by the use of Task Forces. Under this method,
groups of distinguished citizens who are familiar with the specific field to be reviewed and unbiased
in their approach to the problem make studies of broad fields of Government activity and administra-
tion. Subsequently, the Task Forces formulate their conclusions and make recommendations to the
Commission. As of this date, ten Task Forces have been created, as listed below with their respective
Chairmen
Budget and Accounting
J. HAROLD STEW ART, Certified Public Accountant
Business Organization of the Department of Defense
CHARLES R. Hook, Chairman, Armco Steel Corporation
Legal Services and Procedure
JAMES M. DOUGLAS, Former Chief Justice, Su?resne Court of Missouri
Lending Agencies
PAUL GRADY, Certified Public Accountant
Medical Services
CHAUNCEY McCoRnllcx, Retired Industrialist
Personnel
_ HAROLD W. DODDS, President, Princetosz University
'Procurement
ROBERT W. WOLCOTT, Chairman, Lukens Steel Cosn?any
Subsistence Services
JOSEPH P. BINNS, Vice President, Hilton Hotels Corporation
Use and Disposal of Federal Surplus ,Property
ROBERT E, WOOD, Former Chairman, Sears, Roebuck #r Company
Water Resources and Power
BEN MOREELL, Chairman, Jones and Laughlin Steel Corporation
Of the 30 major recommendations set forth in the preceding. pages, it is a fact that a number
of them are within the scope of the second Hoover Commission as they were of the first. Moreover,
many of them are currently -under study by the Task Forces of the second Commission. It cannot be
stressed too strongly, however, that action on-these recommendations by the Congress is vitally needed
now in order. that the second Commission can proceed with the least possible delay in its intensive
and thorough studies from the point where the first Commission concluded its work.
It is only. through the wholehearted cooperation of forward-looking citizens - in private life and in
the. Congress, and regardless of political affiliation- that the important purpose of achieving substantial
economies and greater efficiency in the ad:ninistradon of our Federal Govennnent 'can be realised 'for the
benefit of all the peapkes of our aatioa.
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Citizens Committee for the Hoover Report
THE HON. HERBERT .HOOVER
HONORARY CHAIRMAN
Clarence Francis
Ch~mirman
Colby M. Chester
Chairman, Frnarrce Committee
Charles B. Coates
Vice Chairman FJ Gemeral Manager
Hon. Joseph B. Ely
B. E. Hutchinson
N, Baxker Jackson
Treasurer
Leith M. Urmy
Assistant T~neasurer
Vice Chairmen
Neil Pettee
John Stuart
BOARD OF DIRECTORS
Paul Bernard
Administrative Dir~ectar
Robert L. L. McCormick
Research Director
Julian S. Myrick
Wallace H. Savage
Neal Dow Becker
Ferdinand Eberstadt
George Meany
Charles Dana Bennett
Hon. James A. Farley
Sidney A. Mitchell
Richard L. Bowditch
Clarence Francis
Herschel D. Newsom
Colby M. Chester
Clinton S. Golden
Dr. Fred D. Patterson
Charles B. Coates
Robert Heller
Neil Petree
William E. Cotter
Robert L. Johnson
Stanley Resor
Dain J. Domich
Mrs. Oswald B, Lord
Capt. Edward V. Rickenbacker
Gen. William J, Donovan
John Stuart
Hon. Warren R. Austin
ADVISORY BOARD
Henry Ford II
Anna Lord Strauss
Hon. Colgate W. Darden, Jr.
Hon. john N. Garner
Charles E. Wilson
Hon. Charles Edison
Lessing J. Rosenwald
Hon. Harry H. Woodring
Dr. Robert G. Sproul
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