for the work incumbent upon the office in the processing of personnel applications, not only in the NPA but in the several other offices of the Department, who already received allotments from Defense funds. Senator FERGUSON. What is this item of the telephone room? Of course, I know what the telephone room is, but I suppose that is for the telephone operators?

Mr. CAWLEY. Yes, sir.

Senator FERGUSON. What is "Distribution, 25”?

ADDITIONAL EMPLOYEES TO DISSEMINATE INFORMATION

Mr. CAWLEY. Those are the people having responsibility for assembling and mailing about 14 or 15 million copies of press releases, forms, technical data, et cetera, necessary to inform the business public about the affairs of the NPA. That distribution has grown terrifically. We feel it is incumbent upon that office to see that this information gets out to the field offices and the public as promptly as possible.

Senator FERGUSON. Is it not possible that the people are coming in after this rather than you having to mail it?

Mr. CAWLEY. Just mailing it to approximately 100 field offices is a big undertaking. The people are coming in, yes, but they are coming into our regional offices throughout the country.

Senator FERGUSON. In the distribution you had 25 in the duplicating department. That is, making copies. You add 23.

Mr. CAWLEY. That is correct.

Senator FERGUSON. I know every Senator, if he ever tried to do what your Department is doing every time something comes up, would be in a very bad position. We are in the same position. Look at the thousands of letters and telegrams we get, because of the mobilization. Yet we do not have anybody on our payrolls. Our people work harder. I just do not understand that every time anything happens in Government the agencies have to pyramid. The Office of the Secretary gets 122.

What would this same plan do to my office? We are in the same emergency, but our help is the same.

Senator MCCARRAN. You are not civil service.

Senator FERGUSON. I know I am not. I would like some understanding of what is going on here.

Mr. CAWLEY. I would like to explain, along with the NPA, we have had the Maritime Administration, the Bureau of Public Roads, move into the Department, which has thrown additional burdens on the Office of the Secretary.

Senator FERGUSON. We were told that that would cut down expenses, by putting them in there.

ECONOMIES IN OPERATION ACHIEVED

Mr. CAWLEY. I think we have achieved valuable economies in the Department this year.

Senator FERGUSON. I want you to point them out here.

Mr. CAWLEY. The Secretary did, in his statement this morning, They are detailed for the record.

Senator FERGUSON. When we see the Highway Department, and what they will want extra, what the Maritime Administration will want extra, I wonder what it will do to this statement?

Mr. CAWLEY. This statement is correct.

Senator MCCARRAN. Is there anything further, Mr. Cawley?
Mr. CAWLEY. Yes, Senator.

Senator MCCARRAN. May I say to you, Senator Ferguson, that the Secretary was here. He has filed his statement. I told him that we would insert it in the record.

On page 6 there seems to be an estimated savings listed.

Mr. CAWLEY. Mr. Chairman, if I may, I would like to make a brief statement on the remaining two activities.

INCREASE IN OFFICE OF TRANSPORTATION

The departmental staff services shows an increase of $32,000 and that is set forth here on page 14. It shows that principal increase is in the Office of Transportation, which the Secretary spoke about in his testimony.

Senator MCCARRAN. I Would like to have some more information on that. Will they be before us?

Mr. CAWLEY. Not this particular Office. I have Dr. Zeis here, who has been working in the area, and is prepared to talk about some of the general programs and operations there, if you would like for him to discuss it.

Senator MCCARRAN. I did not want to press the Secretary too much because he was anxious to get away, but I may ask him to come back. I would like to know exactly what the scope of this transportation set-up is going to be, as compared with all the other transportation agencies that we have-the ICC, the CAA, and the others. Do you want to take that up now?

Mr. CAWLEY. Yes, Mr. Chairman. Dr. Zeis is here.

STATEMENT BY PAUL ZEIS

Senator MCCARRAN. Dr. Zeis, how long have you been in the Department?

Mr. ZEIS. Since January 1946.

Senator MCCARRAN. What is your official position or title?

Mr. ZEIS. I am chief of the Transportation and Communications Division, which is part of the Office of Transportation.

Senator MCCARRAN. On page 24 of your justification, it says that a request for 10 additional technical employees to deal with fundamental issues of transportation policy in the United States is justified. I would like you to inform the committee as to just what the fundamental issues are. I am hopeful you do not mean complete Federal operation of all public transportation mediums in this country.

I note also your justification envisages broad-scale studies of rate making and performance of the regulatory functions of the several boards concerning the recommendations of those boards, and how to change their procedures to conform to a central over-all policy. I asked the Secretary about that. He made certain answers to it. I would like to put the same question to you. It is a pretty broad field. I would like to have you go into it at length. When did this set-up come about? What has been the growth of it? What is contemplated?

Senator FERGUSON. They have a new department, the defense transportation department.

Senator MCCARRAN. I would like to have that touched on, too. Senator FERGUSON. How Commerce gets into this field in adding so many employees.

FUNCTION OF AGENCY

Mr. ZEIS. First of all, Mr. Chairman, I would like to point out the number of employees which are being added here in the Office of Transportation is relatively negligible, as compared with the number of transportation employees which the department has in the various operating agencies-the Maritime Administration, the Civil Aeronautics Board, the Bureau of Public Roads, and the Inland Waterways Corporation.

I cannot tell you offhand, but I suspect all of those activities together represent 20,000 or 25,000 employees. What is essentially proposed here is to give the Under Secretary for Transportation a small staff which will help serve him so that he will be able to grapple with all of the transportation activities which the Department has already, involving some 20,000 or 25,000 employees. Placed in that perspective, it seems to me the proposal here is a very modest one indeed.

Senator FERGUSON. Why don't you take in the Defense Transport Administration and do that work? Why should that be out, if you have so much transportation?

Mr. ZEIS. Senator, that is an emergency job.

Senator FERGUSON. Why can it not be done by this same department? Why do you create a new agency?

Mr. ZEIS. As a matter of fact, you should ask the President that, rather than me.

Senator FERGUSON. We have not the privilege of examining the President on these fund requests.

Mr. ZEIS. Let me summarize what was done. What was done was a split and two mobilization transportation agencies were in fact created-the Office of Defense Transport Administration, under Commission Knudson, who has charge of rail and motor transportation, and the Secretary of Commerce was given similar authority over the field of ocean shipping and air transportation.

Why it was done that way, Senator, I do not know, except that is roughly the way it was done during World War II. At that time you had a separate War Shipping Administration to take care of shipping, the CAB and the War Department for Air, and you had an ODT for domestic transportation. They followed the same general pattern this time and the result is that you do have, generally speaking, two separate areas where you have mobilization activities in the transportation field.

Senator FERGUSON. Do you have CAB?

Mr. ZEIS. No, sir; but the war route pattern is a responsibility of the Secretary of Commerce under the Defense Production Act. What the legal implications of that are, that is, the extent to which the Secretary and the Under Secretary could modify during the emergency the normal route pattern, has not been determined. But presumably, if a situation arose, if need came, if the military took 200 or 300 planes for the Korean affair, for example, the Secretary of Commerce has

the authority to allocate the remaining facilities as best as he sees fit. Just as Mr. Knudson has the authority to allocate rail-transport facilities as he sees fit, to see to it that essential goods get moving. Senator MCCARRAN. What is your function in the picture?

Mr. ZEIS. My function is a very minor one. I am simply Chief of this very small Division which would serve as staff adviser to the Under Secretary for Transportation. I have no operating functions. Senator MCCARRAN. It is all to be centralized, however, under Mr. Rentzel?

Mr. ZEIS. That is correct; whom I would serve as a staff adviser. Senator FERGUSON. Recently we had a transfer to your Department of Public Roads and the Maritime Administration?

Mr. ZEIS. That is correct.

Senator FERGUSON. Now we have to have an Under Secretary for Transportation in Commerce, because it comes over there?

Mr. ZEIS. That was proposed at the same time the Maritime Administration was transferred.

Senator FERGUSON. Is that what we call efficiency in Government by consolidation?

Mr. ZEIS. Yes, sir; I think so.

Senator FERGUSON. Will you explain how it is?

RELATED TRANSPORTATION ACTIVITIES UNDER ONE HEAD

Mr. ZEIS. The purpose was to put three or four related transportation activities together under general supervision and control, with the assumption you would get better performance out of all.

Senator FERGUSON. You admit that Public Roads is entirely foreign to the Maritime Administration? There is no connection, is there? Mr. ZEIS. Only in the sense that sometimes you need access roads, in connection with shipbuilding. Generally speaking, you are right. Senator MCCARRAN. I might say I have in my hand here the Executive order defining certain responsibilities of Federal agencies with respect to transportation and storage. Part I is under the caption. "Domestic transportation and storage." Part II, "Shipping and ship construction." Part III, "Air transportation;" Part IV, "Other transportation facilities," and Part V, "General provisions."

That was the President's Executive order and the headings into which it was divided. I think it would do no harm at this time to insert this in the record, so we might know, and those who read the record might know, by what authority this whole thing comes about. (Executive order follows:)

FEBRUARY 28, 1951.

EXECUTIVE ORDER DEFINING CERTAIN RESPONSIBILITIES OF FEDERAL AGENCIES WITH RESPECT TO TRANSPORTATION AND STORAGE

By virture of the authority vested in me by the Constitution and statutes, including the Defense Production Act of 1950, and as President of the United States and Commander in Chief of the Armed Forces, and in order to assure the adequacy and effective utilization of transportation and storage facilities to meet the needs of national defense and of domestic and foreign commerce, it is hereby ordered as follows:

PART I. DOMESTIC TRANSPORTATION AND STORAGE

Section 101. The commissioner of the Interstate Commerce Commission who is responsible for the supervision of the Bureau of Service of the Commission shall

in utilizing the functions vested in him under the Defense Production Act of 1950: (a) Assemble and analyze data with respect to requirements to be imposed on domestic transportation and storage systems and facilities and with respect to the ability of such systems and facilities to satisfy such requirements.

(b) Formulate such plans and programs, and take such actions, as may be desirable to meet requirements for domestic transportation and storage, including, among other things, programs and measures for increasing the efficiency and obtaining maximum utilization of domestic transportation and storage systems and facilities and for providing additional transportation and storage facilities. (c) Coordinate and direct the domestic movement of passenger and freight traffic in cooperation with the Interstate Commerce Commission and private transportation organizations and agencies.

(d) Allocate the use of domestic transportation and storage facilities by operators thereof, and allocate domestic transportation and storage services to the users thereof.

(e) Administer such priorities as may be necessary to insure the movement of essential traffic, subject to such policies and orders as the Defense Production Administrator may prescribe.

(f) Act as claimant for materials and manpower for the construction, operation, maintenance, and repair of domestic transportation and storage systems and facilities.

(g) Cooperate with the Secretary of Commerce, the Secretary of Defense, and the Secretary of the Interior, to achieve the effective coordination of inland and ocean transportation and the efficient operation of all port facilities to meet military and civilian requirements.

(h) Cooperate with the Secretary of Defense and the Administrator of General Services to achieve the effective coordination and utilization of storage facilities.

(i) Utilize the services of the Interstate Commerce Commission and of such other Federal, State, and local agencies as he deems desirable in the performance of his functions.

PART II. SHIPPING AND SHIP CONSTRUCTION

Section 201. The Secretary of Commerce shall, in utilizing the functions vested in him by law, including those under the Defense Production Act of 1950:

(a) Assemble and analyze data on the requirements for oceangoing merchant shipping, including the requirements of the Department of Defense for oceangoing merchant-type vessels, and the supply of merchant shipping of domestic and foreign registry available for meeting these requirements.

(b) Formulate plans and programs for the construction of oceangoing merchant vessels determined to be needed to meet the requirements of national defense and domestic and foreign commerce, and construct such vessels as he may be authorized to construct.

(c) Formulate and, as necessary, undertake the execution of plans and programs for the reactivation of vessels from the national-defense reserve fleet, the requisition, purchase, charter, operation, maintenance, and repair of oceangoing merchant vessels, and the administration of war-risk insurance.

(d) Allocate oceangoing merchant vessels as required to meet the needs of the Department of Defense and other Federal programs.

(e) As necessary, schedule the movement of cargo, and administer priorities for the transportation of cargo, on oceangoing merchant vessels (other than those under the control of the Department of Defense), subject to such policies and orders as the Defense Production Administrator may prescribe.

(f) Act as claimant for materials and manpower for the construction, operation, maintenance, and repair of merchant vessels.

(g) Cooperate with the commissioner of the Interstate Commerce Commission responsible for the supervision of the Bureau of Service of the Commission and with the Secretary of Defense and the Secretary of the Interior to achieve the effective coordination of ocean and inland transportation and the efficient operation of all port facilities to meet military and civilian requirements.

(h) Represent the United States in dealing with shipping agencies of allied and associated governments in matters related to the use of shipping, acting within the framework of the national policy and under the guidance of the Department of State on matters of foreign policy and relations.

(i) Establish such agency or agencies within the Department of Commerce, and utilize the services of such other Federal, State, and local agencies, as he