Evening Star Newspaper, December 9, 1932, Page 7

MERCHANT MARKET BRANCH IS CREATED Commerce Department to Have Industrial, Trade and Service Post. interpreted by the service having ::ddn with the {mbllc health. The gathering of facts relating to births and deaths involves many technical gflflmfl of classification which direct iemselves to persons of medical train- Only such persons can interpret the returns to the best advantage. The work of the Division of Vital Statistics has little or no relation to the other work of the Bureau of the Census, which would in no way be in- terfered with by separating it from that eau. _Moreover, Public Health Service now has the re- sponsibility for gathering data re- garding births and deaths in other countries and regarding morbidity in this and other countries. This divisfon responsibility is unfortunate and will be corrected by the proposed trans- fer of the Division of Vital Statistics from the Bureau of the Census to the | Public Health Service. National Cemeteries, Parks and Monu- | ments of the War Department. At present, the Quartermaster Corps of the War Department has jurisdiction over the national eemeteries, national military parks and certain national monuments and battle sites. The duties of the War Department (Quatermaster Corps) relative to those cemeteries, parks, etc, deal entirely with their management, care, and maintenance. Their military origin is the only basis upon which the jurisdiction of the War Department rests. These cemeteries, m‘h. monuments, etc., are a part of should be in the service primarily con- cerned with the management and op- eration of parks and monuments. This is the National Park Service. 1t is proposed, therefore, that all ju- lon over the national cemeteries, national military parks, monuments and battle sites, now vested in the War Department be transferred to the De- partment of the Interior and associated ‘with the National Park Service, Assistant to Direct Land Utilization. It is intended by the executive order on the Department of Agriculture to make of that organization a department of agriculture, land utilization and con- servation. In addition to activities which are directly and strictly of an nature, the Department of lture has been charged with tasks pertain to land utilization and conservation and which historically have been intimately associated with the work of the department and are M'h..m related to many problems «l ic of agriculture. ese ac- tivities are performed for the most part by the Forest Service, the Bureau of logical Survey, the Bureau of Chem- istry and Soils and the Advisory Council ©of the National Arboretum. It is proposed that the «consolidated activities of the Federal Government which deal with land utilization and conservation problems be placed under the direction of an Assistant Secretary of iture for Land Utilization, who Tesponsible to the Secretary of ture for the proper administra- tion of the organizations performing work directly relating to land utiliza- tion and conservation. The activities and organizations, in addition to the Forest Service, the Bureau of Biological Survey, the Bureau of Chemistry and Soils and the Advisory Council of the National Arboretum, which it is pro- posed should be placed under the imme- diate direction of the Assistant Secre- tary of Agriculture for Land Utilization are: 1. The General Land Office of the Department of the Interior. 2. The administrative duties, powers and functions of the Committee on the Conservation and Administration of the Public Domain. Accordingly, it is proposed to transfer to the Department of Agriculture the foregoing organizations or activities which are now under the direction of other departments. There follows a | statement of the origin, duties and rea- sons for the transfer of each bureau and office named above. General Land Office. ‘The General Land Office was estab- lished in the Department of the Treas- | ury by an act of Congress approved April 25, 1812 (2 Stat. L., 717) and, after passing through various stages of Te- organization, was later placed under the i:lrudxcuon of the Department of the terior by the act of March 3, 1849 (9 Stat. L., 395). The General Land Office is charged with the adjudication of applications claims involving the disposition of pub- lic lands under the public land laws and the recording of all matters affect- ing the public lands and their disposi- tion and status; the adjudication of ap- plications for oil and gas leases, pros- mg permits, coal-mining permits, and licenses, and potash, phos- nh:u. sodium and sulphur permits and s; the adjudication of applications | to lease the public lands for fur farm- ing, grazing, the free use of timber and the Division of | Sanitary Reports and Statistics of the | blic domain and their control | | | By the Associated Press. tion of Government activities, gress intervenes, go into effect 60 days to: diate effect, or Suspend them entirely by lution, or continue the committee to serve only in an aavisory capacity to the Secretary of Agriculture. Commerce Department Given Assistant. ‘The purpose of the reorganization program with respect to the Depart- ment of Commerce is to bring together so far as practicable in major groups |all activities of the Federal Government that have to do with the protection and advancement of commerce. These | major groups and their subdivisions are listed below. !INDUSTRIAL AND TRADE GROUP. Bureau of Foreign and Domestic Commerce. Bureau of Mines—Federal Oil Con- servation Board (independent). Patent_Office. Federal Employment Board. Stabilization BERVICE GROUP. Bureau of Standards, National Screw Thread Commission (independent), Na- tional Advisory Committee for Aero- nautics (independent). Weather Bureau (Agriculture). Bureau of the Census. ‘Aeronautics Branch. MERCHANT MARINE GROUP. Coast and Geodetic Survey—Hydro- graphic Office (Navy), Great Lakes Survey (War). Naval Observatory (Navy). United States Shipping Board Emer- gency Fleet Corporation (independent). Inland Waterways and Steamboat Inspection—supervisor of New York Harbor (War), Bureau of Lighthouses. One executive order on the Depart- ment of Commerce provides for the transfer to that department or to the bureaus of that department certain agencies and activities which are now outside the department, but which logically should be associated with the activities of either the industrial and trade group or the service group of the department. Another executive order provides for the consolidation and grouping of merchant marine activities now in the Department of Commerce or to be transferred to that depart- ment and placed in the merchant marine group under the immediate direction of an_Assistant Secretary of Commerce for Merchant Marine, who will be directly responsible to the Sec- retary of Commerce. There follows & discussion of the changes which are effected in the two executive orgders covering the Department of Commerce. INDUSTRIAL AND TRADE GROUP. The only change proposed in this group is the absorption of the powers and duties of the Federal Oil Conserva- tion Board, now an independent estab- lishment, by the Bureau of Mines. Federal Oil Conservation Board. The Federal Oil Conservation Board was_established by the President De- cember 19, 1924. The board consists of the Secretary of the Interior, chairman; the Secre- tary of War, the Secretary of the Navy and the Secretary of Commerce. ‘The actual work of the board is con- ducted under the direction of an ad- visory ccmmittee consisting of repre- sentatives of the board members. ‘The powers and duties of the board are as follows: Comprehensive in- quiries into naticnal and international petroleum conditions as they relate to production, refining, distribution, future supply, etc., end the study of the Gov- ernment’s Tesponsibilities, with a view to providing ways and means for safe- guarding our natfonal security, and promotion of sound economics through equitable conservation of the country’s natural petroleum resources, and sub- mission of findings to the President for such action as may be deemed proper. The duties of the board as above stated are primarily of an economic | character, although the purpose of its activities is conservation, with a view to national security. The Bureau of Mines is a scientific organization and covers the general field of mining, in- cluding economic as well as technologic features of the industry. It has ex- tensive activities dealing with petroleum and natural gas. “In the technologic branch, the bureau has a division of petroleum and natural gas which deals with all the technical phases of the industry, and in the economics branch which deals with economic problems as related to conservation, the problems for various other purposes; the grant- | ing of rights of way over the public lands; the execution of surveys and re- surveys of the public lands; the prep- aration and maintenance of plats and fleld notes thereof; the making of in- vestigations to determine compliance with law by claimants under the public land laws: the determination of the of supply and demand, etc. In this production and refining in foreign countries through co-operation of the | United States consular offices. A considerable part of the informa- tion now considered by the Federal Oil Conservation Board is furnished by the Bureau of Mines. It appears that the Bureau of Mines is well qualified and equipped to conduct the activities of the board. Under the proposed plan the President would not be deprived of the direct contact and advice of the board members since they are members of his cabinet. There seems no logical reason to retain the board as an inde- pendent_establishment. 1t is propesed to abolish the board as such and to transfer its powers and duties to the Bureau of Mines. SERVICE GROUP. The changes proposed in this group are: | 1. The transfer of the administrative duties, powers and functions of the Na- mineral of non-mineral character of |tional Screw Thread Commission, now public lands and the feasibility of irri- an independent establishment, to the gation projects in connection with in- | Bureau of Standards and the continu- dividual claims or entries; and the in- vestigation of trespass on the public | vis domain and adjudication of trespass | cases. ance of the commission solely as an ad- isory body. 2. The transfer of the administrative | duties, powers and functions of the Na- The work of the General Land Office | tional Advisory Committee for Aero- deals directly with problems concerning | nautics, now an independent establish- the public domain and the conservation | ment, to the Bureau of Standards, and of lands. tural problems. e natural resources of the public |the continuance of the committee in an It also relates to many agricul- | advisory capacity only. This work should be | 3. The transfer of the Weather Bu- intimately 2ssociated with the other ac- | reau, now in the Department of Agri- tivities of the Federal Government ger- | culture, to the Department of Com- taining to the public domain and con- | merce. servation and agricultural matters. It is therefore proposed to transfer the | General Land Office to the Department of Agriculture. Committee on the Conservation and Administration of the Public Domain. National Screw Thread Commission. The National Screw Thread Commis- | sion was created by act of July 18, 1918 | (40 Stat. 912) and was made a perma- nent body by the act of April 16, 1926 (44 Stat. 297). The duties of the com- The act of Congress approved April | mission are to ascertain and establish 10, 1930 (46 Stat. 153) appropriated the | standards for screw threads, which shall sum of $50,000, or so much thereof as | be submiited to the Secretaries of War, might be necessary, to cover any Navy and Commerce for their accept- s which might’ be incurred by the |ance and approval and upon such ap- President, througn such methods as he | proval these standards shall be adopted might employ, in making a study and |and used in the several manufacturing report, on the’conservation and admin- | plants of the War and Navy Depart- sstration of the public domain. Under | ments and, so far as practicable. in all the authority of this act, the President | specifications for screw threads in pro- sppointed the Committee on the Con- |posals for manufactured articles, parts pervation and Administration of the |or material to be used under the direc- Public Domain. The committee's find- | tion of these departments. ings and recommendations were em- bodied l::"n reponl.us\;%?litted to the President January 16, B ‘The duties and functions of the Com- on the Conservation and Ad- |The activity of standardizing screw ninistration of the Public Domain are | threads seems to be clearly a ?uncuon clearly related to the conservation and domain activities of the Federal t and should be grou with | Pederal activities pertaining to %fim. It is therefore proposed fer the administrai and functions of the tive duties, comumijtet | { The director of the Bureau of Stand- | ards is ex officio chairman of the com- |mission and an employe of the same | bureau is designated as its secretary. the commission, an ons $lonal Screw Thread there is a petroleum economics division | division studies are also made of oil | of the Bureau of Standards and there no longer appears to be any reason for continuing the independent status of | Na- to the Congress Can Hasten Changes President Hoover’s orders for reorganization and consolida- issued today, will, unless Con- on Februarv 9 of next year. This will be barely more than three weeks before he turns over the Government to Franklin D. Roosevelt. Congress has retained the authority within the intervening ApRrove the Executive orders and thus put them into imme- e passage of an appropriate reso- Alter them by passing consolidating legisiation of its own. to the Department of Agriculture and to | Bureau of Standards, Department of Commerce and to retain the commission to serve in an advisory capacity to the Secretary of Commerce. National Advisory Committee for Aero- nauties. ‘The National Advisory Committee for Aecronautics was created by the act of March 3, 1915 (38 Stat. 930), which was |an act making appropriations for the | naval service for the fiscal year 1916, | and for other purpo: The committee | consists of 15 members who serve with- | out compensation. Its functions are as follows: 1. Under the law the committee holds itsel at the service of any department | or agency of the Government interested | | in aeronautics for the furnishing of in- | formation or assistance in regard to | scientific or technical matters relating | to aeronautics and in' particular for the | | investigation and study of fundamental | problems submitted by the War and | Navy Departments with a view to their | practical solution. 2. The committee may also exercise | its functions for any individual, firm, | | association or corpcration within the United States, provided that such indi- vidual, firm, association or corporation defray the actual cost involved. 3. The committee institutes research, investigation and study of problems which, in the judgment of its members or of the members of its various sub- committees, are needful and timely for the advance of the science and art of aeronautics in its various branches. 4. The committee keeps itself advised of the progress made in research and experimental work in aeronautics in all parts of the world, particularly in Eng- land, France, Italy, Germany and Canada. 5. The information thus gathered is brought to the attention of the various subcommittees for consideration in con- nection with the preparation of pro- | grams for research and experimental work in this country. This information is also made available promptly to the military and naval air organizations and other branches of the Government and such as is not confidential is immedi- ately released to university laboratories and aircraft manufacturers interested in the study of specific problems and also to the public. service of the President, the Congress | Government for the consideration of | special problems which may be referred to it. It is clear that the National Advisory Committee for Aeronautics is primarily a service organization engaged in scien- tific research in aviation for the benefit of all Federal departments and estab- lishments interested in aviation prob- | lems, as well as of outside firms or | corporations, provided that such outside agencies defray the cost of service re- quested. The functions of this commit- tee are closely related to and coincide with those of the Bureau of Standards. The Bureau of Standards is funda- mentally a service organization which conducts extensive scientific research in a comprehensive list of subjects related to commerce and industry for the bene- fit of all Federal departments and estab- lishments, State governments, and, sub- ject to reasonable fees, the general pub- lic. These researches include among others the subject of aviation. The bureau is represented on the National Advisory Committee for Aeronautics, In co-operation with that committee, the aeronautics branch of the Depart- ment of Commerce and other Federal departments, it conducts scientific re- search in aviation problems. During the fiscal year 1931, it had several projects in aviation such as the following: Ailr navigation facilities—radio, avia- tion lighting, control surfaces of air- planes, measurement of turbulence, re- duction of noise in airplanes, crash- resistant tanks, type testing of commer- cial airplane engines, effect of humidity on engine performance, aircraft-instru- ment developments. From the standpoint of major pur- pose or function, the subject of civil aviation falls in the field of promotion of commerce and industry and the major purpose of both the National Ad- visory Committee for Aeronautics and | the Bureau of Stancards is to conduct | scientific research projects, having as | their objective the protection and de- velopment of commerce and industry. I’I‘he activities of the National Advisory | Committee for Aeronautics are confined to the general subject of aviation, | whereas in the case of the Bureau of Standards, aviation is only one among many other subjects for research. Since the activities and major purposes of the two organizations are so closely related, and fall within the same broad fleld, | it is believed they should be more | closely co-ordinated. It is therefore | | proposed that the administrative duties, | powers, and functions of the National | Advisory Committee for Aeronautics be | transferred to the Bureau of Stand- ards of the Department of Commerce, | It 1s believed that the committee itself | | should be retained to serve in an ad- | visory capacity to the Secretary of Com- | merce. | Weather Bureau. The Weather Bureau was created as |a_separate bureau in the Department | of Agriculture by the act of October 1, | 1890, which transferred the meteoro- | Jogical work of the Signal Corps of the Army to the newly created bureau | The functions of the Weather Bu- | reau, as originally establiched, involve: | Forecasting the weather, issuance of storm warnings, display of weather and flood signals, gauging and reporting of rivers, maintenance and operation of seacoast telegraph lines, collection and | transmission of marine intelligence, the reporting of temperature and rainfall | conditions, display of frost, cold-wave and other signals, distribution of me- teorological information, taking of meteorological observations, for the benefit of agriculture, commerce, and navigation The air commerce act of 1926 further enlarged the functions of the Weather Bureau by requiring that | bureau to furnish such weather reports, | forecasts, warnings, apd advices as may ®: required to promote the safety and | efficiency of air navigation in the | United States and above the high seas, particularly upon civil airways desig- nated by the Secretary of Commerce under authority of law as routes suit- able for air commerce, and for such purposes to observe, measure, and in- vestigate atmospheric phenomena, and establish meteorological offices and stations. The work of the Weather Bureau | is done for the benefit of agriculture, commerce, and navigation—both ma- rine and air. Regardless of the de- partment in which the bureau is lo- cated, service must be rendered to all these interests. The Weather Bureau has no real connection with the other | bureaus of the Department of Agricul- | ture except that it utilizes the fleld stations of other bureaus to obtain ob- servations and reports which are es- sential to its service. But it also uti- | lizes the field stations of other depart- | ments for the same purpose. No | change is proposed in this plan of uti- | lizing all Government field stations for | pu essential to the functions of | the bureau. There is, however, a direct | relation between the functions of the Weather Bureau and those of the mer- marine and aviation miu‘pu of 6. The committee holds itself at the | and the executive departments of the | transfer the Weather Bureau to the Department of Commerce. Because the bureau renders direct service to two of the major groupings of activities in the Department of Commerce, besides its service to the agricultural interests and the public generally, it is included in the service group of activities. MERCHANT MARINE GROUP. In the merchant marine group, it is proposed to bring together all activities of the Federal Government that have to do with the protection and develop- ment of the American Merchant Ma- rine. There are now in the Depart- ment of Commerce the following units ;hlch deal with merchant marine mat- 2 Coast and Geodetic Survey. Bureau of Navigation and Steamboat Inspection. Bureau of Lighthouses. It is proposed to transfer the follow- ing activities to the Department of Commerce for inclusion in the mer- chant marine group: From the Navy Department— The Hydrographic Office. Naval Observatory. From the War Department— Great Lakes Survey. Inland Waterways Corporation. Supervisor of New York Harbor. Independent establishments— United States Shipping Board Emer- gency Fleet Corporation. Hydrographic Office. ‘The Hydrographic Office of the Navy Department was established by the act of June 21, 1866. Its functions com- prise topographic and hydrographic surveys in foreign waters and on the high seas; the collection end dissemi- nation of hydrographic and naviga- tional information and data; prepara- tion and printing by its own personnel and with its own equipment, of maps and charts relating to and required in navigation, including confidential, stra- tegical, and tactical charts required for naval operations and maneuvers; the preparation and issue of sailing direc- tions (pilots), light list, pilot charts, navigational manuals, periodicals, and radio broadcasts for the use of sels of the United States and for the benefit and use of navigation generally; the furnishing of the foregoing to the Navy and other public services, and the sale to the mercantile marine of all nations and to the general public, the cost of printing and paper. It maintains intimate relations with the hydrographic offices of all foreign countries and with the International Hydrographic Bureau, Monaco, and (through branch hydrographic offices and sales agents) wkh mariners and the general public. 2 The Hydrographic Office prepares spe- cial charts for the use of aviators, cov- ering the coastal areas of the United States and foreign countries; dissemi- nates through notices to aviators infor- mation relative to aids to aerial navi- gation and aviation facilities; prepares and publishes plotting sheets, plotting instruments and navigational tables es- | pecially designed for aviation use, and carries out research into the science of aerial navigation. ‘The Hydrographic Office co-operates with the National Academy of Sciences by conducting research work in ocean- ography, especially in soundings and in the collection of temperatures of the surface of the sea, ‘The functions of the Coast and Geo- detic Survey in the Department of Com- merce are similar, if not identical, to those of the Hydrographic Office of the Navy, except that the activities of the Coast and Geodetic Survey are con- fined to the coasts of the United States and its insular possessions whereas the work of the Hydrographic Office is largely confined to foreign waters and on the high seas. A large portion of the data used by the Hydrographic Office is obtained from foreign coun- tries in exchange for similar informa- tion with respect to United States possessi ons. ‘The Navy Hydrographic Office and the Coast and Geodetic Survey each maintains separate printing and litho- graphic plants for the production of their charts. There seems to be no log- ical reason for the maintenance of these separate plants in two different Federal establishments which perform the same major functions although in a different field of operation. ‘The Hydrographic Office should con- tinue to render the same service to the Navy that it does under the present arrangement, and the Navy should con- tinue to gather and furnish the same for use in the preparation and correc- tion of charts and other nautical in- formation as it now furnishes the Hy- drographic Office. It is proposed to transfer the Hydro- graphic Office from the Navy Depart- it is recommended that legislation be enacted to abolish the Hydrographic Office and vest its powers and duties in the Coast and Geodetic Survey. Great Lakes Survey. ‘The survey of northern and north- western lakes is conducted by the United States Lake Survey Office, De- troit, Mich. The work is under the direction of the Office of the Chief of Engineers of the War Department and the appropriation is carried under the heading of “Rivers and Harbors.” For the fiscal year 1933 the wording in the apprgpriation act is as follows: “For survey of northern and north- western lakes, and other boundary and connecting waters as heretofore au- thorized, including the preparation, cor- rection, printing, and issuing of charts and bulletins and the investigation of lake levels.” The survey of northern and north- western lakes covers the American waters of the Great Lakes and their connecting and outflow rivers from St. Regis, on the St. Lawrence River, to the heads of Lakes Michigan and Supe- rior; the natural navigable waters of the New York State canals; Lake Champlain, and Lake of the Woods and other boundary and connecting waters between said lake and Lake Superior. The operations have also been extended to waters to include main-traveled courses for American commerce, and boundary rivers where surveys were essential to the integrity of navigation charts. The work consists of ascertainment and charting of depths in all significant regions; triangulation and precise level- ing needed to control the areas under survey; river-discharge measurements; investigations of lake levels; magnetic surveys irr and near main vessel courses; prompt examination of areas where ob- structions to navigation have been re- ported; hydrographic and topographic surveys required for the publication of navigation charts; the preparation and publication of charts and bulletins, sup- plements, and notices to mariners re- quired for continuous and safe naviga- tion, including revision and reissue of old charts. A review of the foregoing functions clearly indicates that these activities conducted by the Corps *X Engineers of the War Department aré practically identical to the activities of the Hydro- graphic Office of the Navy Department and those of the Coast and Geodetic Survey of the Department of Commerce, except that the fleld of activity lies in |a different area. There appecrs no logical reason for maintaining three separate establishments in as many different major departments, all of which contribute to the same major purpose—that of safeguarding naviga- tion in order to protect and promote maritime commerce. It is therefore proposed to transfer the functions of the survey of northern and northwest- ern lakes from the War Department Corps of Engineers to the Coast and Commerce in order to consolidate and co-ordinate the work of the three simi- lar services. The work of the survey of northern and northwestern lakes is conducted | States merchant marine and therefore | data to the Department of Commerce ment to the Coast and Geodetic Survey | |in the Department of Commerce, and Geodetic Survey in the Department of | amen: funds represented by the allotment set aside for this work. Naval Observatory. ‘The work of the Naval Observatory was first started in 1845 as a division of the then Depot of Charts and Instru. ments. At the present time it is a division of the Bureau of Navigation cf the Navy Department. The functions of the observatory are to broadcast daily the time signals which establish the standard time for the country and for the benefit of mariners; to maintain continuous ob- servations for absolute positions of the fundamental stars and the independent determination, by observations of the sun, of the position of the ecliptic and of the equator among the stars, and of the pogitions of the stars, moon and planets with reference to the equator and equinoxes, in order to furnish data to assist in preparing the Ameri- can Ephemeris and Nautical Almanac and improving the tables of the planets, moon stars; to compute and prepare for publication the Ameri- can Ephemeris and its mgplemen 3 to conduct edsential research work to derive improved values of the funda- mental astronomical elements and em- body them in new tables of the celestial motions. It is also the function of the Nav: Observatory to develop, supply, main- tatin, repair and inspect the naviga- tional, aeronautical and aerological in- struments for the ships and aircraft of the Navy. A review of the foregoing functions of the Naval Observatory indicates that it is a scientific organization in the fleld of astronomy, producing and furnishing to the ships of the Navy and the mer- chant marine data that is essential to accurate navigation as well as the standard time for the entire country. It is also a scientific laboratory for the development and _dissemination of knowledge in the science of astronomy. It 1s proposed that the Naval Observ: tory, with the exception of those activities which relate to the develop- ment, mainténance and repair of in- struments for the Navy, be transferred to the Department of Commerce. United States Shipping Board Merchant Fleet Corporation. ‘The United States Shipping Board Merchant Fleet Corporation is a corpora- tion organized April 16, 1917, under the laws of the trict of Columbia and under the authority contained in section 11 of the shipping act of 1916 (39 Stat. 728). The purpose of the corporation “is the purchase, construction, equipment, lease, charter, maintenance and opera- tion of merchant vessels in the com- merce of the United States and in | general to do and to perform every lawful act and thing necessary or expedient to be done or performed for the efficlent and profitable conducting of said business, as author] by the laws of Congress and to have and to exercise all the powers conferred by the laws of the District of Columbia upon corporations, under said sub- chapter 4 of the corporation laws of the District of Columbia.” The functions of the United States Shipping Board Merchant Fleet Corpora- tion are clearly a part of the major purpose of developing the United | should be transferred to the merchant | marine group in the Department of Commerc& Inland Waterways Corporation. The Inland Waterways Corporation was created by the act of Congress ap- proved June 3, 1924 (43 Stat. 360). It is operated primarily for the purpose of demonstrating to private capital that our streams may be utili to furnish, in co-ordination with other forms of transportation, cheap transportation, with & reasonable return on the money invested. The policy of Congress in this respect was_declared in the act of February 28, 1920 (U. 8. C,, title 49, Sec. 142) as Tollows: “It is declared to be the policy of Congress to promote, encourage and develop water transportation, service and facilities in connection with the commerce of the United States, and to foster and preserve in full vigor both rail and water transportation.” In pursuance of this policy the In- land Waterways Corporation was created by the following provision in the act of June 3, 1924: “For the purpose of carrying on the operations of the Government-owned inland, canal and coastwise waterways system to the point wheré the system can be transferred to private opera- tion to the best advantage of the Gov- ernment, of carrying out the mandate of Congress prescribed in section 201 of the transportation act of 1920, as amended, and of carrying out the policy enunciated by Congress in the first paragraph of section 500 of such act, there is hereby created a corporation, in tke District of Columbia, to be known as the Inland Waterways Corporation. The Secretary of War | shall be deemed to be the incorporator, and the incorporation shall be held effected upon the enactment of this t. The Secretary of War shall govern and direct the corporation in the exercise of the functions vested in it by this act.” It will be noted from a review of the above provisions of law that the major purpose of the Inland Waterways Corporation is to promote, develop and encourage commerce on the inland waterways of the United States. Clearly this is a civil rather than a military function and should be transferred to a civil department. Since it has to do with the promotion of water-borne commerce it is proposed that it be transferred to the merchant marine group of activities in the Department of Commerce. Justice to Take Over Alien Property. Under the provisions of the “trad- ing with the enemy act” approved Oc- tober 6, 1917, the President was author- ized to appoint an official to be known as the alien property custodian, who | was empowered to receive all moneys and property in the United States due or belonging to an enemy or ally of an enemy. Under this authority the office of the alien property custodian was created by executive order, dated Ociober 12, 1917, The settlement of war claims act of 1928, approved March 10, 1928, author~ ized the custodian to return 80 per cent of the funds to German nationals and 100 per cent to Austrian and Hungarian nationals, under certain conditions. The work of this office is diminishing as the claims are allowed and paid. ‘The final disposition of a number of claims has been withheld because of intervening suits that have been insti- tuted which affect these claims. The Department of Justice defends or prosecutes all suits in which the property held by the alien property custodian is involved. _As the principal duties of the latter office in the future are the settlement of litigation and the payment of claims to the nationals of foreign countries, it is clear that the office of the alien property custodian should be transferred to the Depart- ment of Justice, Justice Will Defend Veterans’ Suits. of one of the executive act, 1924, as ded. At the present time the Veterans’ Administration maintains a staft of investigators and lawyers whose duty tnesses it is to obtain facts, interview wi Hoover Plan Would Affect D.C Significant among the the President’s recommendations to Congress for reorganization—in its effect on the municipality of the National Capital—is a proposal to take from the Office of Public Buildings and Public Parks the operation, protection and maintenance of the parks, arkways and certain of the recreational activities in the District of Columbia and turn them over to the municipal administration. The appropriations come from the District revenues. This would make possible politan and Park Police forces. a consolidation of the Metro- Theoretically, it opens the way for co-ordination of the whole recreational program, and would develop closer relation- ship with the school system. It relieves the Federal Government from control over activi- ties of a purely local ch: revenues. acter, The defense in court of cases arising under section 19 of the World War veterans’ act, 1924, as amended, is now made in some cases by laywers in the Veterans’ Administration, in other instances by United States attorneys or their assistants, and in some cases jointly by the United States attorneys or their assistants and the lawyers of the Veterans’ Administration. This inevitably results in some confusion and fails to place responsibility for the trial of such cases in a single organization. The Department of Justice now has the power and authority under law to represent the United States Govern- ment in the courts and this is one of the mejor activities of the department. | The consolidation of the trial work, which it is herein proposed to be trans- ferred from the Veterans' Administra- tion, with the trial work of the De- partment of Justice will make possible the more complete utilization of the organization which has been set up by the Department of Justice and will center responsibility for the conduct of such trial work in the Department of Justice. Accordingly, it is proposed that the defense in court of cases involving litigation arising under section 19 of the World War veterans’ act, 1924, as amended, be transferred to the Depart- ment of Justice. However, the obtain- ing of facts, the interviewing of wit- nesses, the prepnntlo[l of evidence and the procuring of all material which fhe Government needs in the trial of such cases should be retained in the Veterans’ Administration, because such activities are intimately related to the other work of the administration and to the proper making of administrative decisions fn the cases before they have reached the stage of litigation. Duties Transferred To Civil Service. In discussing the proposal to trans- fer to the Department of Labor certain duties and powers now exercised by the Employes’ Compensation Commission, pertaining to the administration of the longshoremen'’s and harbor workers’ act and the act approved May 17, 1928, pro- | viding compensation for employes in | private industry in the District of Co- lumbia, I indicated that some of the present activities of the commission now relate to compensation granted Fed- eral employes on account of injuries. ‘The Federal employes’ compensation law of 1916, and amendments thereto, provide benefits exclusively for civilian employes of the Federal Government and the municipal government of the District of Columbia. Their adminis- tration involves a direct service by the Government to its own employes in all departments and establishments and does not in any way involve a contact with private employers or employes. The Civil Service Commission is the recognized agency of the Federal Gov- ernment for administering all interde- partmental personnel functions. It now administers the laws governing the ad- mission of employes to the Federal serv- ice, their advancement from one class or service to another, their allocation to the several grades which limit com- pensation ranges, their transfer, separa- tion and reinstatement, and their re- tirement for age or disability. It seems entirely logical and natural, therefore, that it should be also assigned the duty of administering the law which provides compensation for the members of the same group of employes who sustain injuries in the course of their employ- ment. In addition to the theoretical justification for this change, the trans- fer would make availabe the several field offices of the Civil Service Commis- sion as a claim development and inves- tigating agency. The need for a field agency which could obtain at first hand without loss of time or undue expense the facts with respect to claims sub- mitted by employes in the field service has long been apparent to the Em< ployes’ Compensation Commission. The Civil Service Commission’s field offices are located with a view to availability to the majority of Federal employes in the fleld services and would, therefore, be in the most advantageous locations to obtain first-hand information with re- spect to the claims of all employes within the respective districts. It is proposed therefore to transfer the administrative dutles, powers and functions of the Employes’ Compensa- tion Commission relating to the admin- istration of the act of September 7, 1916 (39 Stat., 742), and amendments thereto providing compensation for ci- vilian employes of the Federal Govern- ment and the municipal government of the District of Columbia to the Civil Service Commission. This transfer, to- gether with the transfer to the Depart- ment of Labor of the duties and powers of the Employes’ Compensation Com- mission pertaining to the administra- tion of the longshoremen’s and harbor workers’ act and the act approved May 17, 1928, providing compensation for employes in private industry in the District of Columbia make unnecessary the continuance of the commission. Ac- cordingly, I recommend that the com- mission_be abolished by legislative ac- tion. Pending such action, the Em- | ployes’ Compensation Commission will continue to serve in an advisory ca- pacity to the Civil Service Commission. {Labor Will Handle Workmen’s Laws. The Employees’ Compensation Com- mission is an independent establishment composed of three commissioners ap- pointed by the President, by and with the advice and consent of the Senate. It was created by the act approved September 7, 1916 (39 St. 742), provid- ing compensation for civil employees of the United States injured in the per- formance of their official duties. For more than 10 years the administration of this law constituted the sole func- tion of the commission. Added duties were placed upon the commission by the longshoremen’s and harbor workers’ act approved March 4, 1927 (44 St. 1424), extending workmen's compensa- tion benefits to employees in certain maritime employments, and by the act approved May 17, 1928 (45 St. 600), providing compensation for employees of private industry in the District of Columbia. ‘The act of September 7, 1916, applies primarily to the civil employees of the , which are paid for from local rules of admiralty and maritime juris- diction. ‘The act of May 17, 1928, made appli- cable to employers and employees in the District of Columbia the provisions of the longshoremen'’s and harbor work- ers’ compensation act, thus extending the principles of compensation to pri- vate employment in the District of Co- lumbia. Compensation under both of these acts is pald by the employer through an insurance carrier author- ized by the commission or direct as & self-insurer under conditions prescribed by the commission. The cost of admin- istration in both cases is paid by the United States. Section 41 of the act of March 4, | 1927, requires the commission to make | | studies and investigations with respect to safety provisions and the causes of | injuries in employments covered by the act and from time to time make to Con- | gress and employers recommendations | as to the best means of preventing in- juries. To comply with this require- ment the commission has established a safety division in charge of a safety engineer who has been engaged for several years in the study of marine accident-prevention problems and the development of a national safety code. The laws administered by the Em- ployees’ Compensation Commission nat- urally divide themselves into two classes, benefits to be paid by the Federal Gov- ernment to its civilian employees, and (2) the longshoremen's and harbor workers’ act (later extended to cover private employees in the District of | Columbia) which covers benefits to be | paid by certain private employers (or their insurers) to their employees. The administration of these laws is singu- larly different and distinct, there being few functions bearing any similarity. In the case of the law covering Federal employees, there is broad discretion resting in the commission in determin- ing tne measure, extent and service connection of disabilities alleged by claimants, and the commission's au- thority to determine the rights of the claimants is absolute and final. On the other hand, the functions of the com- mission under the longshoremen’s act are primarily those of regulating the acts of certain private concerns in the | administration of the provisions of the law with respect to benefits they are required to provide for their employees who suffer injury. This law specifies in great detail the kind and extent of the benefits required under all conditions, and while the commission is given gen- eral authority over the administration of the law such as the appointment and assignment of personnel, the location and provision for fleld offices, the fur- nishing of appropriate forms and the promulgation of rules and regulations, the authority to adjudicate contested claims £ ally delegated to dep- uty commissioners located in the several field offices, whose decisions are review- able not by the commission but by the Federal district courts. ‘The functions of the commission the administration of this law are closely related to the functions of the department charged with the welfare Such important industrial of labor, Illinois, New Jersey, States as York, Ohio and Pennsylvania have rec- ognized this close relationship by ex- tending the jurisdiction of their cen- tralized labor departments to include the administration of workmen's com- pensation laws. A similar organization is proposed for the Federal Government by the transfer to the Department of Labor of the activities, powers and du- ties of the Employees’ Compensation Commission relating to the administra- tion of the longshoremen’s and harbor workers' act approved March 4, 1927, and the act approved May 17, 1928, providing compensation for employees in private industry in the District of Columbia, I have pointed out elsewhere that the administrative duties, powers and functions of the Employees’ Comipen- sation Commission relating to the ad- ministration of the laws providing com- pensation on account of injuries sus- tained by civilian employees of the Fed- eral Government and the municipal government of the District of Colum- bia should be transferred to the Civil Service Commission and that the Employees’ Compensation Commission should serve in an advisory capacity to the Civil Service Commission. Border Patrol Placed Under Coast Guard. At present the land borders of the United States are patrolled by two dif- ferent units—the Immigration Border Patrol and the Customs Patrol. The Immigration Border Patrol was organ- ized to patrol the Canadian and the Mexican, Florida and Gulf borders to prevent the f{llegal entry of aliens into this country, The Canadian patrol constitutes one district and the Mexican and Florida-Gulf patrol constitutes one district, with the united | control of the entire border patrol in the Commissioner General of Immigra- tion. The Immigration Border Patrol | has about 973 employes with a total | annual pay roll of about $1,900,000. The Customs Patrol is not unified fr the fleld. Each customs collection dis- trict has its own customs patrol, which is under tre control and supervision of the collector of customs. The customs Patrol has about 718 employes with an annual pay foll of approximately $1,500,000. The two services are responsible for the protection of the same areas. In some cases the two services are operat- ing out of the same or nearby towns. The Immigration Patrol is charged with the prevention of illegal entry of per- 50! while the Customs Patrol is| char; charged with the prevention of illegal entry of merchandise and the protection of the customs revenues. ‘The unification of the border patrols has been before the Congress for at least three years. A bill providing for their unification was passed by the House of Representatives during the Seventy-first session but failed to pass the Senate. The consolidation of the two border patrols into one organization charged with the enforcement of all laws of the United States relative to entry of persons or property is admitted by all to be desirable. It would simplify the E‘mcedure in_handling violations of the law and would work toward a more effective enforcement. ment should a single border patrol be located? The enforce- ment of the immigration laws and the enforcement of the customs laws are each important, so there can be no se- lection on the basis of the most impor- other | tant laws. However, the Government namely, (1) the original law covering | in | serving this tion of auditing the receipt and ex- penditure accounts of the Government should be separate and independent of any of the executive departments. The separation of this audit function from the executive departments and placing the responsibility for auditing all re- ceipt and expenditure accounts in an establishment that is independent of all others is believed to follow & sound Eflncégle and one that should be strict- adhered to. The budget and ac- counting act, however, went further than to centralize the audit function in & separate independent establishment. It conferred upon the General Account- ing Office duties of an administrative or executive character. The wording of the act has been interpreted to per- mit the General Accounting Office to extend its powers and duties into the field of administration in the several departments and establishments of the Government to an extent that is far beyond its primary function. & It is proposed to transfer from the General Accounting Office to the Bu- reau of the Budget those duties and functions which are administrative or executive in character, except those re- lating to the primary function of au- diting the Government accounts. Par- ticularly it is proposed to transfer— (1) Those activities that relate to the designing, prescribing, and install- ing of accounting forms, systems, and procedure to be used in the several ex- ecutive departments and establishments, except that comptroller general shall retain the power and duty to pre- scribe the form and manner in which accounts shall be submitted to his of- fice for audit; (2) Those activities which relate to the administrative examination of fiscal officers’ accounts and claims against the United States, and the adequacy and effectiveness of the administrative examination of accounts and claims in the respective departments and estab- lishments and the adequacy and effec- tiveness of departmental inspection of the officers and accounts of fiscal offi- ers. Section 309 of the budget and ac- counting act gives the comptroller general, as head of the General Ac- counting Office, the power and duty to “prescribe the forms, systems, and pro- cedure for administrative appropriation and fund accounting in the several de- partments and establishments and for the administrative examination of fiscal officers’ accounts and claims against the United States.” Section 312 (d) provides that-— “He (the comptroller general) shall submit to Congress reports upon the | adequacy and effectiveness of the ad- | ministrative examination of accounts and claims in the respective depart- ments and establishments and upon the adequacy and effectiveness of depart- mental inspection of the offices and ac- counts of fiscal officers.” ‘The comptroller general should have the power and duty of prescribing the form and manner in which accounts are submitted to the General Account- ing Office for the purpose of auditing and to require all information neces- sary for such audit. It is not, however, a proper function of an establishment created primarily for the purpose of au- diting Government accounts to make the necessary studies and to develop and prescribe accounting systems in- volving the entire field of Government | accounting. Neither is it a p: func- tion of such an establishment mine the effectiveness of the adminis- trative examination of accounts. Ac- counting is an essential element of ef- be developed with the primary objective of purpose. It should be so standardized as to facilitate the prepa- ration of financial data and reports for the Government as a whole, as well as to provide the proper basis for audit. New | Th effective means available for the use of the department head in the activities under his jurisdiction; and they also furnish the information upon which future requirements must be predicated. The administrative examination of accounts is, as its name implies, an ad- ministrative function. It is the final essential link in the administrative con- trol of the fiscal activities of a depart- ment. It is not restricted to the check- ing of the accuracy of computation al- though this may be a necessary inci- dent of the examination. Its real pur- pose is the complete and detailed analy- sis of the actual expenditures which enables the depr.rtment head to control the activities lor which he is respon- sible., It provides him information as to the actual cost of the various ob- Jects for which he has authorized the expenditure of appropriated funds, en- ables him to furnish the President, through the Bureau of the Budget, with justification for estimates of future re- quirements, and thus forms the basis of the whole estimating system of the Government. The duty of developing the forms, systems, and procedure of accounting, and the administrative examination of accounts should, therefore, be under the general direction of the Bureau of the Budget, which is vitally concerned with these purposes. Bureau of Efficiency Put Under Budget. The Bureau of Efficiency was cre- ated as a division of the Civil Service Commission in pursuance of a provi- slon of the legislative, executive, and Jjudicial appropriation act approved Maich 4, 1913. It was made an inde- pendent establishment by the deficiency appropriation act, approved February 28, 1916. The chief of the bureau is appointed by the President, with the advice and consent of the Senate. The functions of the bureau now include the making of investigations pertain- |1ng to the-duplication and overlapping of statistical services and other activi- ties of the Federal Government, busi- ness methods and procedures in the Government service, and the personnel needs of the executive departmentsand independent establishments. The duties and powers of the bureau with t to investigations in the executive de- partments and independent establish- ments were extended by an act of Congress approved May 16, 1928, to in- clude the municipal government of the District of Columbia. The bureau also conducts Investigations, at the request of the heads of the departments or in- dependent establishments or commit- tees or individual members of Col E A large part of the regular duties now performed by the Bureau of Effi- ciency relate to the efficient and eco- nomical operation of the Government service. The sole responsibility for this work should be vested in the Bureau of the Budget which is directly inter- ested in the proper co-ordination and the economical performance of Federal activities. The budget and account- ing act of 1921 specifically c! Bum‘hu of e