Mr. MCCLELLAN, from the Committee on Government Operations, submitted the following

REPORT

To accompany a chart on organization of Federal executive departments and agencies]

This report is submitted to the Senate pursuant to the provisions of the Legislative Reorganization Act of 1946, which directs the Committee on Government Operations to evaluate the effects of laws enacted to reorganize the executive branch of the Government. It includes details relative to organizational changes in the executive branch of the Government during calendar year 1956, and is the 17th in a series first compiled as of January 1, 1947. Accompanying this report is a chart outlining the organization of Federal executive departments and agencies, with personnel assignments to each major operating unit down to the division level, as of January 1, 1957.

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A complete tabulation of all agencies active on January 1, 1947, and those which have been created or abolished during the intervening period, with total employees assigned to such agencies as of January i of each year, is contained in the appendix of this report. Explanatory footnotes indicate when and under what authority new agencies were established, and similar data are included with respect to those which have been abolished or transferred.

Significant personnel changes during the past year, and reorganizations effected in the departments and agencies as set forth in this report, are based upon information supplied, at the request of the chairman, by the department or agency heads, or by their appropriate accountable officers. Reorganization data and changes in personnel

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figures, and the resultant savings and efficiencies reported, are based upon comments and estimates furnished by the agencies, and do not necessarily represent either the views or the findings of the committee. Organizational changes effected pursuant to recent enactments, or resulting from internal surveys conducted under administrative controls, as well as appreciable changes in personnel assignments, are set forth on the chart and in the section of this report entitled "Organization and Personnel Changes in Executive Departments since January 1, 1956." A similar section covers the independent agencies. Other sections of the report deal with (a) nomenclature and components; (b) total employees in the executive departments and independent agencies; (c) overseas employees; (d) overseas contract employees; (e) the legislative and judicial branches; (f) Government corporations; and (g) new components established or abolished since January 1, 1947. Comparative figures are included where appropriate. The chart which accompanies this report reflects a number of additions, transfers, transpositions, and other changes throughout some of the department or agency structures, which tend to prevent any meaningful comparison relative to the assignment of personnel to continuing activities within the department or agency. This is particularly true in connection with the Department of State, including the International Cooperation Administration, which completely reversed and transposed many of the reorganizational patterns submitted with previous chart information. The Departments of Commerce and Interior, the Post Office Department and the General Services Administration also made numerous additions, transpositions, or other alterations in their organizational structures. In some instances these were due to agency reorganization programs (see pp. 35-39 and 47-48), while others occur regularly so that each succeeding report has shown a number of changes from the outline contained in the preceding report without any apparent significance, thus preventing uniformity of reporting from one year to the next. These types of changes, although necessary in effecting desirable reorganizations, materially affect the nomenclature count tabulation which follows.

NOMENCLATURE AND COMPONENTS

In accordance with a policy initiated by this committee in the 80th Congress (S. Rept. No. 243), the new agencies have followed, in general, uniform reorganization patterns, and other agencies have effected changes designed to improve nomenclature. The committee is continuing its efforts to encourage the improvement of nomenclature standards and uniformity, which were also endorsed by the first Hoover Commission, and has repeatedly urged all agencies to conform to this program when reorganizations are to be made.

In the tabulation which follows, all field offices and overseas activities, regardless of the number involved, were counted as single units. In the miscellaneous and functional category are included all operating, descriptive, or functional components, as well as field and overseas activities which do not conform to the standard nomenclature designations.

The total of 2,123 operating components to which personnel assignments were made as of January 1, 1957, reflects an increase of 24 from

a total of 2,099 reported as of January 1, 1956-an increase of 26 in the 13 executive departments, and a decrease of 2 in the 45 independent agencies.

In the first chart released by the committee, as of January 1, 1947, operating components totaling 2,369 units were reported, or 246 more than on January 1, 1957. Many of these, however, included components which were omitted from the current chart, since they did not conform to the committee's general policy of reporting only major operating units down to the equivalent of the division level.

Type of corporations only, shown as a functioning unit, and not the actual number. For example, the 12 intermediate credit banks have been counted as 1 bank. Mixed ownership corporations (3 groups) are not included. (See table, p. 61.)

TOTAL EMPLOYEES

At the end of calendar year 1956, the Federal Government had in an employment status a total of 2,403,311 persons, exclusive of the uniformed personnel of the Armed Forces, as compared to 2,355,192 at the beginning of the year-a net increase of 48,119. Of this total, 2,376,513 served in the executive branch; 22,190 in the legislative branch; and 4,608 in the judicial branch.

The total of 2,376,513 employees reported by the executive branch represented a net increase of 47,494 during the last calendar year: 32 in the Executive Office of the President, 46,446 in the departments, and 1,016 in the independent agencies.

The executive branch total is 113,888 more than were reported on January 1, 1947. It also exceeded the previous postwar low (prior to the Korean invasion), on January 1, 1950, by 415,484. The total employment figures include 133,829 WAE (when actually employed) and part-time employees in a pay status as of January 1, 1957, as compared to 121,868 WAE reported on January 1, 1956, and 125,045 on January 1, 1955.

Employees serving without compensation (WOC's) (shown parenthetically on the chart opposite the totals for each department or agency) aggregating 105,661 on January 1, 1957, or 5,209 more than a year ago, are not included in the totals. These included 41,414 uncompensated employees of the Selective Service System serving as local board members, advisers to registrants, and so forth; 47,847 in the Veterans' Administration; and 16,400 in other agencies. For

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security reasons, no employees of the Central Intelligence Agency are reported.

Executive departments

The executive departments reported a total of 2,075,807 paid employees as of January 1, 1957, an increase of 46,446 during the last calendar year, and 52,544 more than on January 1, 1955. The Executive Office of the President reported a total of 1,217 employees, or an increase of 32 during the year.

In the Department of Defense, the Department of the Air Force reported an increase of 25,002 during 1956, representing an increase of 46,185 during the past 2 years. The Office of the Secretary of Defense, and the Departments of the Army and the Navy reported decreases of 193, 6,783, and 8,803, respectively, for a total overall increase of 9,223 for the Department of Defense since January 1, 1956.

All other departments reported increases during the last calendar year, as follows: 14,384 by the Post Office Department; 5,090 by the Department of Health, Education, and Welfare, which included 3,806 new employees in connection with medical research programs at the National Institutes of Health and 2,986 for the expanded program of the Social Security Administration; 4,199 by the Department of Commerce, of which 631 were employees of the Alaska Road Commission transferred from the Department of the Interior; 4,507 by the Department of State; 6,063 by the Department of Agriculture; 2,115 by the Department of the Interior; 671 by the Department of Labor; 106 by the Department of the Treasury; and 88 by the Department of Justice.

During the 10-year period from 1947 to 1957, there has been an overall increase of 285,543 employees within the executive departments, of whom 169,437 were in the Military Establishment; 64,428 in the Post Office Department; 10,891 in State, including 7,465 employees of ICA transferred to the Department in 1955; 6,240 in Justice; 9,465 in Commerce; and 2,096 in Agriculture. The Department of Health, Education, and Welfare, created in 1953, now has 49,946 employees (an increase of 18,430 over the 1947 total of 31,516 reported by its predecessor, the Federal Security Agency). Decreases of 24,023 in Treasury; 1,115 in Interior; and 1,822 in Labor were reported at the end of the 10-year period.

Independent agencies

The independent agencies reported a total of 299,489, or a net increase of 1,016 employees during the past calendar year. Increases totaling 4,582 were reported by 29 agencies. The largest, 1,209, and 996, respectively, were reported by the General Services Administration and the United States Information Agency. Other increases included the United States Civil Service Commission, 500; the Atomic Energy Commission, 439; the Federal Civil Defense Administration, 188; the Interstate Commerce Commission, 189; the Small Business Administration, 190; and a total of 871 for 22 other agencies. Decreases were reported during calendar year 1956 of 1,487 by the Tennessee Valley Authority; 874 by the Panama Canal Company; 364 by the Housing and Home Finance Agency; 176 by the Veterans' Administration, with 12 other agencies reporting decreases of 197, or a total of 3,098 for these 16 agencies. The Farm Credit Administration reported a decrease of 456 employees during the calendar

year. This was due to the fact that employees of the wholly owned Government corporations supervised by the Farm Credit Administration, which totaled 459 as of January 1, 1956, were not reported as Federal employees. The Farm Credit Act of 1956 (Public Law 809, 84th Cong., approved July 26, 1956) merged the production credit corporation in each of the 12 Farm Credit districts into the Federal intermediate credit bank of the district, and required the purchase of some of the stock of each bank by the production credit associations in the district. One agency, the Rubber Producing Facilities Disposal Commission, which was abolished, involved 12 employees. These adjustments, with increases or decreases reported as above outlined, resulted in a net increase of 1,016 for the independent agencies.

The current total of 299,489 reflects an overall decrease of 171,845 during the period from January 1, 1947, to January 1, 1957, of which 19,702 have occurred since January 1, 1954, and 10,834 since January 1, 1955. The overall 10-year reduction, with corresponding increases in the executive departments, included more than 36,000 employees who were involved in the elevation of the Federal Security Agency to the Department of Health, Education, and Welfare in 1953, the transfer of 1,206 RFC employees to Treasury in 1954, and the abolishment of the Foreign Operations Administration and the resulting transfer of its functions and personnel to the International Cooperation Administration within the Department of State, involving 6,127 employees reported by FOA on January 1, 1955.

The largest long-range decrease was in the Veterans' Administration, which reported 49,518 fewer employees in 1957 than in 1947. Since January 1, 1947, the Tennessee Valley Authority increased its employees from 13,431 to 14,887 on January 1, 1957, or a net total of 1,456. Decreases of 6,338 in 1955 and 1,487 in 1956, from a high of 22,796 on January 1, 1954, were reported as being largely due to a decline in construction activities. New agencies created since 1947the General Services Administration (27,100), United States Information Agency (11,496), Housing and Home Finance Agency (9,935), and the Atomic Energy Commission (6,673)-whose employees now make up a substantial part of the independent agency personnel total, and the transfer or liquidation of such agencies as the RFC, FSA, and FOA, involving approximately 53,000 employees, does not permit any meaningful comparison as to normal increases or decreases in the independent agencies during the 10-year period. The trend toward centralization of agency activities with the executive departments is in accord with the recommendations of the first Hoover Commission.

OVERSEAS EMPLOYEES

All departments and agencies were requested to report the number of employees engaged in carrying on Federal activities in foreign countries, indicating the number of such employees who are American citizens and those who are nationals of other countries.

A recapitulation of the reports submitted to the committee shows that, as of January 1, 1956, there were 206,186 employees of the executive branch of the Government engaged in overseas activities, of which 88,814 were American citizens and 117,372 nationals of other countries. This represents an increase of 2,167 over the totals for January 1,