misery and want and no real production came out of anybody's efforts, it would have been a great amount of money. Would it not have been better and would not it be better if we adopted a program here to think of this whole proposition as one dedicated to get people up on their feet so that they can do for themselves and the gross expense would be far less?

Senator PURTELL. I think I might inject that S. 2759 has nothing to do with appropriations. The question of appropriation will be determined by the Appropriations Committee. S. 2759 simply determines a formula by which the funds appropriated will be distributed. It has nothing to do with the amount of the funds at all.

Senator LEHMAN. Secretary Hobby and Mr. Rockefeller testified here a week or 2 ago that the economic gain to the United States by rehabilitating the physically handicapped would be very much greater than the original and continuing cost of training. In fact, my recollection is that they testified that for every $1 expended, the return would be $10. That seems high to me, but I believe that is their testimony.

If that is true, even in a smaller degree than has been testified to, we are facing this situation: we are rehabilitating an almost negligible percentage of the physically handicaped. I think it was Mrs. Hobby's testimony that there were 2 million physically handicapped and that the physically handicapped population was increasing in this country at the rate of about 250,000 a year whereas we were seeking to rehabilitate only a very small percentage of that.

What I do not understand is why, if there is a humanitarian factor and an economic factor involved in it, and I certainly think there is, why we should not proceed at a far faster rate than is now proposed and cover a field that is much greater than is now proposed, because it certainly would appear to me that what I believe to be a niggardly program would only in the slightest degree help to improve the situation over that which is existing today.

Mr. STRACHAN. Mr. Chairman, I would like to reply to your remark about the bill not having anything to do with the appropriation. That, of course, is true but the bill sets down a formula which provides a limitation on appropriation because you cannot go on an average beyond a normal $500 that is appropriated for individual services for the handicapped under the appropriation. I have never known of a Federal-State situation to expend $15,000, for example, in setting a man on his feet so that he can start paying taxes, unless we ask that the formula be revised to take care of that. We are already spending the money in various agencies and ways. It is just a question of making a capital investment in the individual rather than peter this thing out over years and years with no real benefits.

Senator PURTELL. Would you like to ask some questions, Senator Neely?

Senator NEELY. Mr. Chairman, I have just one observation and that is that, in my opinion, what Mr. Strachan has said about the liberality with which the United Mine Workers care for their handicapped is a high tribute to the humanity and vision and leadership of President John L. Lewis and those associated with him.

Senator PURTELL. I want to thank you very much for coming here

and for your well-prepared statement covering S. 2570 which will be inserted in the record at this point.

(An additional statement of Paul A. Strachan is as follows:)

STATEMENT OF PAUL A. STRACHAN, PRESIDENT, AMERICAN FEDERATION OF THE PHYSICALLY HANDICAPPED, WASHINGTON, D. C.

Mr. Chairman, the most important problem before the Nation today is safeguarding and improving the health and economic conditions of our own citizenry.

Rehabilitation and employment of our 38 million handicapped citizens, including the blind, partially sighted, deaf, hard of hearing, amputees, arthritics, cardiacs, cerebral palsied, diabetics, epileptics, victims of muscular dystrophy, multiple sclerosis, poliomyelitis, rheumatism, tuberculosis, and other "cripplers", as well as those having congential defects and deformities, is, of necessity, of prime concern to you, and to all Members of Congress, generally.

After more than 40 years of study and practice in this field, and in the light of the multitude of needs of our handicapped people, we have developed and there is now pending before you, the bill, S. 2570, to establish a Federal agency for handicapped.

This bill does what no other bill now pending proposes: It provides a practical blueprint of a program-not just an excuse for a program-to show you, and all others, a clearly defined plan. It is not vague, nor does it evade meeting issues that have been ignored, largely, by existing Federal agencies. In short, it shows exactly what is proposed to be done for the handicapped, what agency would be best qualified to do it, how the job would be done, to whom it would be done, the cost, and the results. Today, there is no coordination of 35 agencies now existing each having a piece of the program.

We respectfully point out the necessity of establishing this agency, not only for the advancement of welfare of handicapped, themselves, but for the benefit of the whole Nation, and, briefly, the bill would

1. Establish an independent agency, based for housekeeping purposes in the Department of Labor.

2. Establish in said agency, an Advisory Council on Affairs on the Handicapped, consisting of three representing employers; three representing labor; three representing physically handicapped, themselves, (who, after all, are the chief persons concerned, and who, therefore, should and must be so represented,); three to represent farmers and stockraisers, and three experienced in public affairs.

3. Establishes an Office of Services for Blind in the agency and brings into it all farflung agencies for blind now in Federal service, thus consolidating and making more efficient such services.

4. Establishes cooperative enterprises for handicapped revolving fund, with $10 million as initial appropriation, to take the first step toward providing handicapped a practical means to be trained in business and job conditions, so they may stand on their own feet, and gradually get away from the pitfully inadequate and uneconomic so-called public assistance programs, which, at best, are only stopgaps, and in addition to being a continual drain upon the finances of the people, solve nothing and provide no permanent remedies.

5. Establishes a Federal Interagency Committee on Rehabilitation and Employment of Handicapped, to coordinate activities of the present 35 Federal agencies each of which, now, has a piece of the program. We respectfully point out the necessity for establishing such Committee. Previous testimony before this committee has concentrated upon the Office of Vocational Rehabilitation with 1 or 2 corollary agencies in the Department of Health, Education, and Welfare, and have completely ignored the fact that a multitude of activities, costing hundreds of millions of dollars annually, which are within the orbit of an overall handicapped program, are very much in the picture. Such agencies, surely, as good business policy, should have one focal point, the proposed Interagency Committee, through which the results of their efforts could and would be evaluated. This would not only prevent useless duplication of effort, an expense, but would facilitate continual improvement in the overall program. 6. Provides a $60 monthly Federal grant to totally disabled persons, who are unfeasible for rehabilitation. It is pointed out that this grant provides a Federal base, to which States may add additional sums, as it is clear that no person, totally disabled and unable to support himself or herself, could be medically

treated, fed, clothed and housed, to say nothing of necessary incidental living expenses, on $60 per month.

Further, the $60 would not be given, unless competent medical examinations, once yearly, prove such person to be totally disabled, and unfeasible for rehabilitation. In short, the initial placement of a person on such grant does not mean such person is so supported eternally, as is often now the case, but, they would have to prove, by annual examinations, that they are still unfeasible in every way for rehabilitation.

7. Provides $5 million initial, and $2 million annual continuing appropriation, for grants for training of homebound persons.

This is very important, since, particularly in rural areas, today, there is little or no means for providing this essential service at all, and, given such training, many such homebound, could support themselves, wholly, or in part.

8. Provides $10 million revolving loan fund, from which States which have exhausted their appropriations for rehabilitation may borrow, between sessions of their own legislatures.

It may surprise the committee to know that, despite under present laws, wherein the Federal contribution takes care of administrative expenses of the State setups, on an annual basis, yet, because of exhaustion of appropriations, prevent State from rendering any actual services to handicapped for more than half the time.

9. Establishes a Division of Handicapped in the United States Civil Service Commission. As we are dealing with millions of handicapped, including disabled veterans, facilitating their examinations, tests for physical capacities, and ultimate appointment, make such Division imperative.

10. Provides for promotion of public safety programs designed to safeguard life and limb on Federal property. This, no doubt, could save the Government millions of dollars in present cost of accidents and disease.

11. Provides for reports from Federal agencies having parts of the handicapped program, so that there would be a continual and continuing check on overall activities, and improvements designed and applied, in the light of experience.

12. Provides special programs for the severely handicapped (those from 60 to 100 percent disabled), of whom it is estimated, on basis of composite reports from all reliable public and private agencies, that there are now from 7 million to 9 million in such categories.

13. Provides for rehabilitation centers throughout the Nation. This is a vital necessity to development of the program.

14. Establishes a Federal second injury tax and fund, something which has been vitally needed for the past 50 years, and which, when functioning, will enable hundreds of thousands of severely handicapped, with multiple disabilities, to secure and hold remunerative employment, and thus be enabled to support themselves, their families, and make their contribution to the Nation, as a whole, by paying Federal, State, county, and municipal taxes.

15. Provides legal definitions of physically handicapped persons, and persons who are totally disabled and unfeasible for rehabilitation. Lack of clear definitions, today, are not only confusing, but often seriously obstruct the application of benefits needed by the individual.

The foregoing, Mr. Chairman, is more definitively outlined in the statement which I made, in July 1953, to the House Committee on Education and Labor, and I am attaching and sending a copy of this statement to each member of the Senate Committee on Labor and Public Welfare, with respectful request that members give it careful study, as it outlines each section of S. 2570, so that you will know exactly what is intended, and what, when established, the Federal agency for handicapped will be prepared to do.

Such a program, Mr. Chairman-and I emphasize "program"-rather than "bill," is essential today, both as a means of providing vitally important manpower for our national defense, and to develop continuing means of medical, educational, guidance, and placement services for all handicapped who require such services.

We are today at the point where, as a matter of national policy, we must determine whether or not we shall continue the expensive fallacy of so-called public assistance, which produces nothing, and provides no remedies other than meager, temporary aid, or, that we shall make a capital investment in the individual handicapped citizens and get them onto their feet so they may make their own contribution to our economic and social life, and be taxpayers, instead of taxeaters.

Our Federation, with associated organizations supporting this necessary program, brings to you the pleas of more than 15 million American citizens to support

this bill 100 percent. Enactment of this bill would not disturb the basic principles of the present Federal-State setup.

For the betterment of our people, Mr. Chairman and members of the committee, and for the preservation of our Nation, itself, we respectfully urge that you substitute S. 2570 for all other pending measures, which are totally inadequate, unrealistic, and will do nothing more than continue the miserably ineffective, inefficient, and unbusinesslike present programs.

Mr. STRACHAN. Thank you, Mr. Chairman.

Senator PURTELL. We thank you very much for it. This will be given close study by the members of the committee.

Mr. STRACHAN. I wish to say that this will probably be my swan song before Congress, after 42 years, but I hope that I may see a Federal Agency for the Handicapped established. It is absolutely a necessity that it should be done. It is good business. It is common

sense.

If I am to be given any tribute at all, the only reason why is because I have been through the mill. I have seen and experienced, with thousands of others, what this thing means, and therefore I am not taking the word of any academic thinkers whatsoever. This proposition, to me, is personal. I have been through it.

I have never recommended one single program to the Congress that did not pay off 10 to 1 in the end in functioning and I insist that this will do the same.

Senator PURTELL. I think we have included in the record all the other documents except these last two.

The first is a report from the Department of Health, Education, and Welfare, dated October 8, 1953.

The second is a letter from the Bureau of the Budget, dated September 28, 1953.

They will be included in the record.

(Letter from Department of Health, Education, and Welfare; letter from the Bureau of the Budget are as follows:)

EXECUTIVE OFFICE OF THE PRESIDENT,

Hon. H. ALEXANDER SMITH,

BUREAU OF THE BUDGET, Washington 25, D. C., September 28, 1953.

Chairman, Committee on Labor and Public Welfare,

United States Senate, Washington 25, D. C.

MY DEAR MR. CHAIRMAN: This is in answer to your letter of August 3, 1953, inviting the Bureau of the Budget to comment on S. 2570, to establish the Federal Agency for Handicapped, to define its duties, and for other purposes. The general purposes of S. 2570 are to expand Federal aid to citizens handicapped by physical and mental disabilities and to assist such persons in preparing for and securing remunerative employment. Included in the expanded aid program would be financial assistance for cooperative enterprises for the handicapped; grants to the States to provide for the payment of $60 a month to each individual certified by the State as totally disabled, unfeasible for rehabilitation; grants for teaching homebound handicapped persons; loans to replenish funds used to carry out approved State plans for vocational rehabilitation; grants for carrying out programs for the severely handicapped, and grants for establishing rehabilitation centers. The bill would also provide for an excise tax on employers to establish a Federal second injury fund which would be available to relieve employers in some States of the burden of paying those workmen's compensation costs in the case of a second or subsequent injury which are not fairly attributable to the disability caused by such injury. An independent agency to be named the Federal Agency for Handicapped would be established for administering the expanded aid program. This agency would be placed in the Department of Labor for housekeeping purposes. Various functions relating to the handicapped now performed by the Office of Vocational

Rehabilitation, the Division for the Physically Handicapped in the Bureau of Labor Standards, and the Library of Congress would be transferred to the new agency.

As you know, the President recommended to the Congress the establishment of a Commission to study Federal-State relations, including programs of Federal aid. This study will include the review of existing programs of Federal aid, the need for additional programs of Federal aid, and the adequacy of fiscal resources available to the various levels of Government to discharge their proper functions. The Congress subsequently enacted legislation establishing the Commission on Intergovernmental Relations. Until such time as the Commission submits its report, it would seem inappropriate to create new grant and loan programs, some of which are financed entirely by the Federal Government, as is proposed by this bill.

Moreover, the Department of Health, Education, and Welfare now contains most Federal functions relating to assistance and services to the handicapped. These services are closely related to the Department's functions in the general fields of health, education, and welfare. In submitting Reorganization Plan No. 1 of 1953, creating the Department of Health, Education, and Welfare, the President said, “I believe, and this plan reflects my conviction, that these several fields of Federal activity should continue within the framework of a single department." The creation of an independent agency for the handicapped would not be consistent with this objective.

In addition, the programs encompassed in this bill would involve a substantial increase in Federal expenditures at a time when every effort is being made to bring the Federal budget into balance.

For these reasons this office recommends that this measure not be enacted at this time.

Sincerely yours,

ROWLAND HUGHES, Deputy Director.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE,

October 8, 1953.

Hon. H. ALEXANDER SMITH,

Chairman, Committee on Labor and Public Welfare,
United States Senate, Washington 25, D. C.

DEAR MR. CHAIRMAN: This letter is in response to your request of August 3, 1953, for a report on S. 2570, a bill to establish the Federal Agency for Handicapped, to define its duties, and for other purposes.

This bill proposes far-reaching changes in Federal programs and services for the handicapped.

In the first place, it would establish a Federal Agency for Handicapped which is to be an independent agency though based, for housekeeping purposes, in the Department of Labor. To the new agency would be transferred all of the functions of the Federal Security Agency (now this Department) under the Vocational Rehabilitation Act (29 U. S. C. 31 et seq.), relating to grants to States for vocational rehabilitation, the Randolph-Sheppard Act, relating to vending stands for the blind (20 U. S. C. 107 et seq.), and title X of the Social Security Act, relating to grants to the States for aid to the blind, and the Office of Vocational Rehabilitation in this Department would be abolished. There would also be transferred to the new agency the functions of certain other agencies affecting the handicapped.

In the second place, the bill would add to existing programs for the handicapped several new grant and loan programs, diverse and complex in character. some of them financed entirely by the Federal Government. The bill would also provide for a new excise tax on employers to establish a Federal Second Injury Fund which would be available for relief to employers in some States from the burden of paying workmen's compensation costs in the case of a second or subsequent injury which are not fairly attributable to the disability caused by such injury.

1. There are now concentrated in this Department most Federal functions in connection with assistance and services to the handicapped. These programs for the handicapped are not only interrelated but are an integral part of a balanced and coordinated program in the fields of health, education, and welfare with which this Department is concerned.