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Printed for the use of the
Committee on Expenditures in the Executive Departments

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COMMITTEE ON EXPENDITURES IN THE EXECUTIVE

DEPARTMENTS

CLARE E. HOFFMAN, Michigan, Chairman GEORGE H. BENDER, Ohio

CARTER MANASCO, Alabama. WALTER H. JUDD, Minnesota

JOHN W. McCORMACK, Massachusetts ROBERT H. RICH, Pennsylvania

WILLIAM L. DAWSON, Illinois HENRY J. LATHAM, New York

JOHN J. DELANEY, New York JAMES W. WADSWORTH, New York CHET HOLIFIELD, California FOREST A. HARNESS, Indiana

HENDERSON LANHAM, Georgia CLARENCE J. BROWN, Ohio

W. J. BRYAN DORN, South Carolina ROSS RIZLEY, Oklahoma

PORTER HARDY, JR., Virginia J. EDGAR CHENOWETH, Colorado

FRANK M. KARSTEN, Missouri
FRED E. BUSBEY, Illinois

J. FRANK WILSON, Texas
MELVIN C. SNYDER, West Virginia
J. CALEB BOGGS, Delaware
R. WALTER RIEHLMAN, New York
RALPH HARVEY, Indiana

HELEN M. BOYER, Clerk
LAWRENCE SULLIVAN, Chief of Staff

CABL E. HOFFMAN, Counsel

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CONTENTS

211

314

332

February 5.

February 6.

February 7.

Analysis: Function of Federal Employment Service under the Wagner-

Peyser Act, submitted by Mr. Webb...

Appendix:

Fair Labor Standards Act of 1938, Public Law 718, Seventy-fifth

Congress-

House Document No. 231, Eightieth Congress, first session, message

from the President of the United States, transmitting Reorganiza-

tion Plan No. 2 of 1947..

Labor regulations: Chapter 1, United States Employment Service,

Department of Labor, part 21— Cooperation of the United States
Employment Service and States in establishing and maintaining a

national system of public employment offices..

Reorganization Plan No. 2 of 1947.

Rules and regulations relating to the cooperation of the United States

Employment Service and States in establishing and maintaining a

national system of public employment offices, June 18, 1938.-

Schwellenbach, Hon. Lewis B., Secretary of Labor:

Letter to Hon. Clare E. Hoffman, dated February 9, 1948,

furnishing list of names and brief summary of the background

of the heads of all the bureaus within the Department of Labor.

Letter to Hon. Clare E. Hoffman, dated February 9, 1948,

regarding rules and regulations promulgated under the Fair

Labor Standards Act----

Testimony before the subcommittee of the Committee on Educa-

tion and Labor, investigation of the GSI strike, January 20,

1948, Hon. Clare E. Hoffman, chairman of the subcommittee,

presiding -

House Concurrent Resolution 131: Resolution disapproving Reorganiza-

tion Plan No. 1 of 1948.

House Document No. 499: Message from the President of the United

States transmitting Reorganization Plan No. 1 of 1948.
Letter: To Hon. Forest A. Harness, dated February 4, 1948, from Noble

R. Shaw, director, Indiana Employment Security Division..---
Reorganization Plan No. 1 of 1948: Prepared by the President and trans-

mitted to the Senate and the House of Representatives in Congress as-
sembled, January 19, 1948, pursuant to the provisions of the Reorgani-

zation Act of 1975, approved December 20, 1945.
Statements of -

Argo, R. K., in behalf of the Associated Industries of Alabama ----
Boyce, H. B., Clark Equipment Co., Buchanan, Mich.--
Broadway, Frank R., Montgomery, Ala., speaking for Alabama State

Chamber of Commerce and the Automobile Dealers Association of

Alabama.
Burris, Ed. C., executive vice president, Texas Manufacturers Associ-

ation, Houston, Tex.-.
Byrnes, Hon. John W., Member of Congress from the State of Wis-

consin..
Christgau, Victor, director of the Division of Employment and Secu-

rity of the State of Minnesota -
Congress of Industrial Organizations, presented by Paul Sifton.
Connelly, Edward F., chairman, social security committee, Associated

Industries of Massachusetts..
Crozier, Harry, chairman, executive director, the Employment Com-

mission of Austin, Tex_
Cruikshank, Nelson H., director of social insurance activities of the

American Federation of Labor.

1

291

2

160
97

155

78

292

272
273

100

172

235

2950

M
1./99 31150-190., 5

Statement of-Continued

Dale, Porter, Youngstown, Ohio, on behalf of the Ohio Chamber of

Commerce, Columbus, Ohio...

69

Davis, John D., commissioner, employment security department,

Olympia, Wash.

253

Dresie, Grey, Wichita, Kans., on behalf of the Wichita Independent

Business Men's Association and the Kansas Independent Business

Men's Association.

184

Garrett, H. F., executive director, employment security agency, State
of Idaho

186

Goodwin, Robert C., Director of the United States Employment

Service-

282

Hake, W.O., commissioner of the department of employment security,

State of Tennessee..

87

Horton, Dwight, employer representative, Texas Employment Com-
mission.-

173

Jacobi, Seward H., member of the social security committee, New

Jersey State Chamber of Commerce.--

108

Johnson, Clayton E., UAW-CIO, unemployment compensation de-
partment, Detroit, Mich.

226, 234
Kile, Elton, Kilesville, Ohio, on behalf of the National Association of
Businessmen, Inc., and the Ohio Association of Businessmen.

38

Kirkpatrick, A. L., manager, Chamber of Commerce of the United

States, Washington, D. C.-

110

Lunt, W. K., Chicago, representing the Chicago Association of Com-

merce and Industry and the Associated Employers of Illinois--- 170

Manak, Frank C., on behalf of the National Association of State

Chambers of Commerce and others..

59

Marshall, Robert E., director of division of employment security,

Commonwealth of Massachusetts--

127

Martin, Robert B., member, social security committee, Illinois State

Chamber of Commerce -

232

Morrison, John, executive director, employment security agency in

Kansas..

125

Patty, Kenneth C., assistant attorney general of Virginia and counsel

and the Virginia Unemployment Compensation Commission. 164

Pendergast, Harry, executive director, Oklahoma Employment Se-
curity Commission.

152
Porter, F. M., president, Mid-Continent Oil and Gas Association,
Tulsa, Okla.

118
Schwellenbach, Hon. Lewis B., Secretary of Labor.

4
Shaw, Hoble R., director of Indiana Employment Security Division
and secretary of the Indiana Employment Security Board.-

291

Sifton, Paul, national legislative representative of UAW-CIO-

272

Silbernagel, John J., representing the Wisconsin State Chamber of

Commerce

122

Smith, Raymond C., Michigan Manufacturers' Unemployment Com-
pensation Bureau, Inc., Detroit, Mich.,

48
Webb, James E., director, Bureau of the Budget-

195
Whittet, Lowell, assistant controller of Ed. Schuster & Co., Inc.,

Milwaukee, Wis., appearing as member of the social security com-
mittee of the National Retail Dry Goods Association.--.

56
Williamson, C. J. S., California State Chamber of Commerce..

121
Wolfe, L. R., Chicago, director of the Social Security Department of
the Illinois Manufacturers' Association ---

27
Zucker, M. William, administrative assistant, Commerce and Industry
Association of New York, Inc.--.

138

Tables:

Basic data-unemployment compensation grants.

198

Federal tax collections under Federal Unemployment Tax Act for the

fiscal year 1947, by States and Territories -

221

Functions of the Bureau of Employment Security -

213

States which have unemployment compensation and employment

services in a State department of labor or comparable department-- 239

States which have unemployment compensation and employment

services located in a department having other labor functions--- 239

Telegram: To Oscar R. Ewing, dated December 15, 1947, from the Gov-

ernor of Tennessee-

89

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REORGANIZATION PLAN NO. 1 OF 1948

THURSDAY, FEBRUARY 5, 1948

HOUSE OF REPRESENTATIVES,
COMMITTEE ON EXPENDITURES IN THE

EXECUTIVE DEPARTMENTS,

Washington, D. C. The committee met at 10 a. m., Hon. Clare E. Hoffman (chairman) presiding.

The CHAIRMAN. The committee will come to order.

(Reorganization Plan No. 1 of 1948 will be inserted in the record at this point, following which will be inserted H. Con. Res, 131.)

(H. Doc. No. 499, 80th Cong., 2d sess.) MESSAGE FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING RE

ORGANIZATION PLAN No. 1 OF 1948, UNDER THE REORGANIZATION ACT OF

1945 To the Congress of the United States:

I transmit herewith Reorganization Plan No. 1 of 1948, under the Reorganization Act of 1945, which transfers the United States Employment Service and the Bureau of Employment Security to the Department of Labor. The United States Employment Service is now in the Department of Labor by temporary transfer under authority of title I of the First War Powers Act, 1941, while the Bureau of Employment Security is at present a constituent unit of the Federal Security Agency. This plan will place the administration of the employment service and unemployment compensation functions of the Federal Government in the most appropriate location within the executive establishment and will provide for their proper coordination.

I find that this proposed reorganization is necessary, to accomplish the following purposes of the Reorganization Act of 1945.: (1) To group, coordinate, and consolidate agencies and functions of the Government according to major purposes, (2) to increase the efficiency of the operations of the Government, and (3) to promote economy to the fullest extent consistent with the efficient operation of the Government.

The United States Employment Service was established in the Department of Labor by the Wagner-Peyser Act in 1933. It was later transferred under Reorganization Plan No. 1, effective July 1, 1939, to the Social Security Board in the Federal Security Agency. After the creation of the War Manpower Commission, the United States Employment Service was placed under that Commission by Executive Order No. 9247 of September 17, 1942. Shortly after the Japanese surrender the Service was transferred to the Department of Labor by Executive Order No. 9617. Both of these transfers were made under the temporary authority of title I of the First War Powers Act.

The provision of a Nation-wide system of public employment offices, which assists workers to get jobs and employers to obtain labor, belongs under the leadership of the Secretary of Labor. Within our Federal Government the Department of Labor is the agency primarily concerned with the labor market and problems of employment.

The Department of Labor already has within its organization many, but not all of the resources needed for the full performance of this role. It has a broad understanding of working conditions and the factors in labor turn-over. Through the Bureau of Labor Statistics it develops extensive information on the long-term trends in employment and on the occupational characteristics of the labor force.

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