\I 4

.13 243 

•*•1t*'*4

‘14 NOMINATIONS OF ROBERT C. WEAVER 

,,

tzIN

9bb AND ROBERT C. WOOD

GOVERNMENT 

StorageKSU LIBRARIES 

HEARING

BEFORE THE

COMMITTEE ON TANKING- AND CURRENCY

ENITED STATES igNATE

EIGHTY-NINTH ! OGRESS

SECOND SESSION

ON

THE NOMINATIONS OF

ROBERT C. WEAVER TO BE SECRETARY OF THE DEPARTMENT

OF HOUSING AND URBAN DEVELOPMENT

AND

ROBERT C. WOOD TO BE UNDER SECRETARY

JANUARY 17, 1966

Printed for the use of the

Committee on Banking and Currency

US. GOVERNMENT PRINTING OFFICE

i77 ' WASHINGTON: 1966
COMMITTEE ON BANKING AND CURRENCY

A. WILLIS ROBERTSON, Virginia, Chairman

JOHN SPARKMAN, Alabama

PAUL H. DOUGLAS, Illinois

WILLIAM PROXMIRE, Wisconsin

HARRISON A. WILLIAMS, JR., New jersey

EDMUND S. MUSKIE, Maine

EDWARD V. LONG, Missouri

MAURINE B. NEUBERGER, Oregon

THOMAS J. McINTYRE, New Hampshire

WALTER F. MONDALE, Minnesota

MATTHEW HALE, Chief of Staff

WOODLTEF THOMAS, Chief Economist

JOHN R. EVANS, Minority Clerk

II

WALLACE F. BENNETT, Utah

JOHN G. TOWER, Texas

STROM THURMOND, South Carolina

BOURKE B. HICKENLOOPER, Iowa
CONTENTS

WITNESSES

Page Javits, 

Kennedy, 

Jacob K., U.S. Senator from the State of New York 3

Saltonstall, 

Robert F., U.S. Senator from the State of New York 4

Weaver, Robert 

Leverett, U.S. Senator from the State of Massachusetts 6

C., of New York, nominee, to be Secretary of the Depart- ment of Housing and Urban Development 

Wood, Robert 8

C., of Massachusetts, nominee, to be Under Secretary of the Department of Housing and Urban Development 8

LETTERS AND DATA SUPPLIED FOR THE RECORD

Conference reports:

House Report 884, 89th Congress, 1st session 

Senate, 22

Cox, 

excerpt from the Congressional Record, August 30, 1965 18 Lawrence M., executive director, Norfolk Redevelopment and HousKennedy, 

ing Authority, Norfolk, Va.: Letter to Senator Robertson 6

Edward M., U.S. Senator from the State of Massachusetts: Letter to Senator Robertson 

Statement 7

Public 

endorsing the nomination of Professor Wood 7

Law 89-174, to establish a Department of Housing and Urban Development 

Weaver, 14

Wood, 

Robert C., biographical information on 3

Robert C., biographical information on 3

UI

NOMINATIONS OF ROBERT C. WEAVER

AND ROBERT C. WOOD

MONDAY, JANUARY 17, 1966

U.S. SENATE,

COMMITTEE ON BANKING AND CURRENCY,

Washington, D.C.

The committee met, pursuant to notice, at 10 a.m. in room 5302, New Senate Office Building, Senator A. Willis Robertson (chairman of the committee) presiding.

Present: Senators Robertson, Sparkman, Douglas, Proxmire, Long, Neuberger, Mondale, Bennett, Tower, Thurmond, and Hickenlooper. The CHAIRMAN. The committee will please come to order.

We are happy and proud to have as our guests this morning three of our distinguished colleagues from the Senate, the two distinguished Senators from New York, Senator Javits and Senator Kennedy, and the distinguished Senator from Massachusetts, Senator Saltonstall. We also have two distinguished nominees, and we are going to con- duct these hearings jointly.

Gentlemen, your nominations as Secretary and Under Secretary of the new Department of Housing and Urban Development will bring into existence this new Department created last summer by Presi- dential recommendation and congressional action.

There has been some little chat to the effect that the President didn't want to appoint Mr. Weaver, or wasn't enthusiastic about it. I have information that that was not correct; that the President very promptly looked over everybody, and reached the conclusion he couldn't find anybody better; but he did not want to establish a prece- dent of appointing a colored man to the Cabinet while the Congress

was not in session, because it is a precedent, and if anybody wants to complain, he wants them to do it when they have the opportunity. And that is one reason he delayed this appointment until the Congress met.

The new Department will join the other historic departments of the executive branch—such as the State Department and the Treasury Department—as well as the more recently created departments, like the Commerce and Labor Departments and the Department of Health, Education, and Welfare.

And as Secretary of the new Department, Mr. Weaver, you will be the most recent in a long line of Cabinet members which began with Thomas Jefferson and Alexander Hamilton.

The Department of Housing and Urban Development was created in order to focus attention on the important problems of housing, community facilities, and urban development, including the all- important urban mass transportation problem. The Banking and

1
2 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

Currency Committee has worked with these important aspects of our

national economy for more than 30 years. And as Administrator of

the Housing and Home Finance Agency, Mr. Weaver, since your

confirmation 5 years ago, you, too, have wrestled with these problems

and have appeared before us again and again to report on your progress

and to recommend changes in the programs.

Now a distinguished representative of the press said to me "Will

you vote for this confirmation?" and I said, 'Yes. At one time I

thought he was going to be prejudiced, but I have watched him very

closely and I haven't found that he was prejudiced. This time I

am going to vote for his confirmation."

Congress last year decided to create this new Department and to

provide departmental status for the consideration of these problems,

though some of us felt that this step might result in greatly increased

expenditures and in overconcentration on special urban affairs at the

expense of broader questions of nationwide significance.

It is now up to you, gentlemen, and to your other associates in the

new Department, to start the Department off on its course. It is up

to you and to your associates to make sure that the programs which

the President and the Congress have placed in your bands are carried

out effectively and efficiently, and in accordance with the will of the

Congress. It is up to you to make sure that your achievement of the

goals placed in your hands by the Congress is fully and properly

coordinated with the aims and goals assigned to other Departments

by the Congress. In the case of transportation, for example, the

urban mass transit program which we have placed in your hands is of

vital concern to the other Departments and agencies which concern

themselves with transportation—the Department of Commerce, the

ICC, and perhaps the proposed new Department of Transportation.

Incidentally, I mention that because it has been proposed, but I

hope it will not be put into effect, as far as I am concerned.

Those who live in cities are interested in many of the specialized

programs of the Department of Health, Education, and Welfare—

such as education and social security—and of the Departments of

Labor and Commerce. They are, of course, also interested in the

overriding national problems handled by the Departments of State

and Defense, and in the broad economic questions of employment,

production, and stability, which are the particular concern- of the

Federal Reserve Board, the Treasury Department, and the Counsel

of Economic Advisers.

You must carry out the programs vested in your Department by

the Congress, as a member of the executive branch and as a member

of the President's Cabinet, with full regard for the needs of other

programs and other Departments, and with full regard for the broader

objectives of the Government as a whole and for the people of the

United States.

Without objection, the biographies of Mr. Weaver and Mr. Wood

will be placed in the record at this point. In addition, since these

nominees will be the first to occupy their positions at the Department,

Public Law 89-174, which established the Department, and material

relating to the Department will also' be inserted in the record at the

end of the hearing.

(The biographies follow.)
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 3

THE WHITE HOUSE-BIOGRAPHICAL INFORMATION ON ROBERT C. WEAVER

Mr. Robert C. Weaver was born in Washington, D.C., on December 29, 1907. He was educated at Harvard University, receiving a B.S. in 1929, an M.A. in 1931, and a Ph. D. in 1934.

From 1933 to 1937 he was the Adviser for Negro Affairs, Department of the Interior, and from 1937 to 1940 he served as the Special Assistant to the Admin- istrator, U.S. Housing Authority. He also worked from 1940 to 1944 as an official on the War Production Board, where he became Chief of the Minority

Group Service Division. From 1945 to 1948 Mr. Weaver was a member of the American Council on Race Relations.

After teaching at Northwestern University, Columbia Teachers College and New York University, Mr. Weaver became the director of opportunity fellow- ships, John Hay Whitney Foundation, a position he held until 1954.

In 1954, Mr. Weaver was named the deputy commissioner of the New York State Division of Housing and from 1955 to 1959 served as the State Rent Admin- istrator, New York. From 1960 to 1961 he was the vice chairman of the New York City Housing and Redevelopment Board.

Mr. Weaver became the Administrator of the Housing and Home Finance Agency in 1961, a position he has held since that time.

He is the author of "Negro Labor, A National Problem" (1946), "The Negro Ghetto" (1948), and "The Urban Complex" (1964).

He lives at 4600 Connecticut Avenue NW., Washington, D.C. Mr. Weaver is married to the former Ella V. Haith.

THE WHITE HOUSE-BIOGRAPHICAL INFORMATION ON ROBERT C. WOOD

Prof. Robert C. Wood, a native of Jacksonville, Fla., is chairman of the Political Science Department of Massachusetts Institute of Technology. Born in St. Louis, Mo., on September 16, 1923, he served with the 76th Infantry during World War II. He received an A.B. from Princeton University in 1946. At Harvard University, he was awarded an M.A. in 1947, a master of public adminis- tration in 1948, and a Ph. D. in 1950.

From 1949 to 1951 he was associate director, Legislative Reference Bureau of the State of Florida. At the U.S. Bureau of the Budget from 1951 to 1954, Mr. Wood served as a management organization expert in the housing field.

Mr. Wood became a lecturer and then an assistant professor of government at Harvard University in 1954. In 1957 he left Harvard to join the faculty at MIT where he taught as an assistant professor of political science from 1957 to 1959, and as an associate professor from 1959 to 1962. In 1962, Mr. Wood was named professor of political science; and in 1965, he became the chairman of the political science department at MIT.

He is a member of the Advisory Board of the National Capital Transportation

Agency, the Committee for Economic Development, and the American Academy for Arts and Sciences. He was elected to Phi Beta Kappa while at Princeton.

He is the author of "Suburbia, Its People and Their Politics" (1958); "Metro- polis Against Itself" (1959); "1400 Governments, the Political Economy of the New York Region" (1960); and the coauthor of "School Men and Politics" (1962), and "Government and Politics of the U.S." (1965).

Mr. Wood lives on Trapelo Road, Lincoln, Mass., with his wife, the former

Margaret Byers, and three children, Francis, Margaret, and Frank.

The CHAIRMAN. Now the chairman is very happy at this time to recognize the two distinguished Senators from New York, who will

present the nominee from New York.

Senator Javits.

STATEMENT OF JACOB K. JAVITS, U.S. SENATOR FROM THY.

STATE OF NEW YORK

Senator JAVITS. Mr. Chairman and members of the committee, I

am very grateful to you for this opportunity to appear before you with

respect to the nomination of Dr. Weaver.
4 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

Mr. Chairman, I have a rather special feeling about this, as I sat on

this committee 5 years ago when we first considered Dr. Weaver's

nomination as Administrator of the Housing and Home Finance

Agency. I think the most important thing that can be said for him

is that his present appointment is justified on the record. We may

have had our questions at that time, but certaintly for the past 5 years

he has made a splendid Administrator. Dr. Weaver has fully justified

our confidence in reporting out his nomination at that time.

The second point the chairman himself has just made, which to me

is very significant. Having served as attorney general of the State

of New York in the same administration in which Dr. Weaver first

won his spurs in the housing field—that is Governor Harriman's administration—it was my feeling when Dr. Weaver was confirmed

5 years ago that he understood the problems of race in the United

States well enough to know that the one thing you should never do

is to have discrimination in reverse. In this regard he has been, I

think, one of the prime exemplars in the country of "calling them as

he sees them," without any self-consciousness whatever as to his own

origin. And this, I think, is a magnificent tribute to the man, quite

apart from this proceeding. I would like that to be recorded and

Dr. Weaver to know how I feel about that.

There is no question about the overriding significance of this job.

This is the age of the cities, and we have signalized that by creating

this new Cabinet post. I think Dr. Weaver, Mr. Chairman, aside

from the excellence of his past record, is in a very fine position to do

what needs to be done, because he understands the problems of the

rank and file and the problems of the minorities which place the cities

in a unique position.

Finally, Mr. Chairman, one of the things which I have had the

honor of contributing to the bill authorizing this Department was the

responsibility of coordination. I think that the Department is very

deficient in the range of authority and functions which have been

assigned to it, very limited in terms of trying to do the job that needs

to be done for coordinating U.S. aid and U.S. responsibility for the

cities. But it does have a very broad coordination section. I believe

that Dr. Weaver, through the work he has done in the Federal Government, and his general skill. will be able to carry out superbly that

coordinating function, which depends so heavily upon the cooperation

and good will of other administrators and other Cabinet officials.

For all those reasons, Mr. Chairman, I take great pride, as a representative of our State which is the home State of Dr. Weaver, in

sponsoring him before this committee for confirmation in this new

Cabinet post.

The CHAIRMAN. Thank you, Senator Javits. We will now be pleased

to hear from the junior Senator from the great Empire State.

STATEMENT OF ROBERT F. KENNEDY, U.S. SENATOR FROM THE

STATE OF NEW YORK

Senator KENNEDY. Mr. Chairman and members of the committee,

I am pleased and honored to join with my senior colleague in supporting Mr. Weaver as the President's nominee as Secretary of the Department of Housing and Urban Development.

Mr. Weaver's record is a distinguished one and one of great public

service. Immediately following his education he joined the Federal
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 5

Government; he worked first in the Department of the Interior, and

then came to the Housing Authority upon its founding in 1937, so therefore he has had long experience. He moved to various agencies

which were involved in mobilizing the economy during World War II. After the war he worked in a variety of private foundation posts and administered major State and municipal agencies in New York State,

where he was given positions of considerable responsibility and honor.

He came to Washington as Administrator of the Housing and Home

Finance Agency in 1961. In that post he was the embodiment of fairness and judicious judgment. As a result, those who questioned

his appointment when it was made—and as he pointed out to me this morning, we had something in common in that our appointments

were the most controversial that President Kennedy made—were won

over by the way that he administered his agency.

President Kennedy intended to name Mr. Weaver to the proposed

post of Secretary of Urban Affairs and have him join his Cabinet. I

am glad and happy and proud that President Johnson has confirmed

this judgment, so that we have two Presidents who really felt Mr.

Weaver should be a member of their Cabinets.

I would like to add just one final point. I believe the day will come

here in the United States when we will not discuss a nominee's race,

as the day has now arrived that we do not discuss a nominee's religion.

However, Mr. Weaver is the first Negro to attain Cabinet rank and

that is noted not only in this room but across the United States and

even across the world. And I believe there is a very vital point here.

It is the talent, the integrity, and the dedication that he embodies

that will bring the time when an appointee's race will not be considered,

either privately or publicly, in considering any individual for any post within the United States.

I thank you, Mr. Chairman.

The CHAIRMAN. Thank you. As the biographies which we will insert in the record show, both of these nominees are graduates of the

great school of Harvard. The next witness will be from Harvard, and

I just want to let the record show that the only reason Harvard is

older than William & Mary is that the King who promised to send

over the William & Mary charter went hunting and that is how Harvard got there first. [Laughter.]

They also made a little more money up in New England than we did in Virginia and they may have moved ahead a little on the development program.

Harvard has every right to be proud of the next witness. He is a, 10th generation Harvard man. Someone said it is only three genera- tions from shirt sleeves to shirt sleeves and generally that is pretty much true. But here is a man who demonstrates that brains and character and ability can be preserved through generation after generation, that members of the same family can be Governor after

Governor in one of the truly great States, and that, even though under the influence and gentle prodding of a clan called Kennedy, Massa- chusetts •has sort of shifted from its traditional Republican status, he can hold office as long as he chooses to run and will voluntarily retire from office at the end of this term.

The next witness is one of the ablest men in the Senate. There

are only four or five men in the Senate senior to him. He is one of the most highly respected and one of the most beloved. All of us

57-923-06-2
6 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

regretted it when he said "Gentlemen, I am going to leave these

problems to you after this year."

Senator Saltonstall.

STATEMENT OF LEVERETT SALTONSTALL, U.S. SENATOR FROM

THE STATE OF MASSACHUSETTS

Senator SALTONSTALL. Mr. Chairman, I appreciate very much the

kind words you said about me. I can say this to you, that William

& Mary would be the oldest college in the country today if it hadn't

been for the fact that they had a bit of a row or hesitation or something

down there, and allowed Harvard to come in in 1636 and take the

oldest continuous university record away from them. Otherwise

William & Mary would be older.

Now, Mr. Chairman, it is my pleasure to present a man who is

already well known to you, Prof. Robert Wood of the Massachusetts

Institute of Technology. Presently he is a chairman of the political

science department at that fine institution and is in charge of the

urban affairs programs. As you stated, Professor Wood is a graduate

of the Littauer School of Public Administration at Harvard University and served as an assistant professor there before he joined the

faculty at MIT. He is a Massachusetts citizen in the best sense of

that word. He is a former resident of Florida where he served as

associate director of the legislative reference bureau of that State,

so he has a broad background on which to work. He has specialized

in urban problems, is the author of several publications on that subject, and has been a member of a number of major committees dealing

with allied problems. Recently he has been serving as Chairman of

the White House Task Force on Urban Problems. I am confident

that he will make a very fine assistant and Under Secretary to Mr.

Weaver, who is the new Secretary of the new Department. .

I am glad also to endorse Mr. Weaver here before your committee.

I am confident that Mr. Wood will be very helpful to him as he is

very well informed on the subject of urban problems and housing and

the questions that will come before him in the new Department. I

am very glad to present him to you, although I know you have known

him well from past appearances here before your committee. I am

sure that he and Mr. Weaver will make a good team and will get this

new Department off to a good start. I thank you for the opportunity

of being here this morning.

The CHAIRMAN. We thank you, sir.

I would like to read for the record at this time a letter dated January

14, from the executive director of the Norfolk Redevelopment and

Housing Authority, addressed to the Honorable Robert C. Weaver.

DEAR BOB: I want to extend to you my warm congratulations on your nomination as the first Secretary of the Department of Housing and Urban Development.

With the creation of the Department and under your stewardship, the urban

community is duly represented on the Nation's "board of directors." The needs,

concerns, ambitions, and opportunities of our cities and towns can now be dealt

with on a parity with other important segments of our national interest.

I truly hope that once the new Department is in motion, the Congress will

recognize the virtues of moving under its wing Federal activities not presently

included but which are predominately matters affecting urban living.

Kindest regards.

Sincerely,

LAWRENCE M. COX, Executive Director.
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 7

I think that is rather typical of the sentiment of those in Virginia

cities that deal with this problem.

I would also like for the record to show that about 10 minutes after

the ticker showed the nomination of Mr. Weaver to head this Department—and I had never heard of it—I was attending a reception for

a former colleague over in the Senate, and a reporter said "Had you

heard the President has nominated Dr. Robert C. Weaver?" I said

"No". "Well," he said, "what are you going to do about it?" I

told him right then what I was going to do about it. But I am glad

to get these letters from home. [Laughter.]

Here is another one from Edward Kennedy:

DEAR Mr. CHAIRMAN: A prior commitment has, unfortunately, forced me to

be absent from your hearings this morning on the President's nomination of

Robert C. Wood as Under Secretary of the Department of Housing and Urban

Development.

I have the highest regard for Professor Wood's abilities and personal friendship,

as expressed in the attached statement.

I would greatly appreciate it if you could read the attachment into the record

at the appropriate time.

So I will.

(The statement follows:)

STATEMENT OF EDWARD M. KENNEDY, U.S. SENATOR FROM THE STATE or

MASSACHUSETTS

It was a great pleasure for me to learn of the nomination of Prof. Robert C. Wood as Under Secretary of the newly created Department of Housing and Urban Development. I regret that a prior commitment to testify at a Massachusetts hearing has made it impossible for me to appear in person on his behalf. We in Massachusetts are extremely proud of Prof. Robert Wood, and I, as a citizen

and Senator from that State, have long relied upon his friendship and wise counsel.

This new Department has been charged with the responsibility for establishing and directing the important programs which will be responsive to the needs of

our growing cities and local governments. If these programs are to be successful,

the Department must have the leadership of men knowledgeable in their nature and administration. Robert Wood is such a man. His experience in dealing with the complexities of urban development is extensive. His talent as a theore- tician in urban matters is well proven and attested to by his nomination for this important position. But of equal importance, Mr. Chairman, Professor Wood has displayed the unique ability to blend the theoretical with the practical in the application of ideas.

Robert Wood is, at present, the chairman of the Political Science Department

at the Massachusetts Institute of Technology. He has served as a consultant to the Committee on Economic Development and the Municipal Manpower Com- mission and, in 1964, was selected as Chairman of the White House Task Force

on Urban Problems.

Professor Wood has written widely on the subjects of suburbia, the city, their politics and people. His experience in both the university and the Government has given him a rare insight and understanding of the issues he will be facing as Under Secretary.

For the past several years I have benefited greatly from his many abilities. I

have always found him imaginative and realistic in suggesting solutions to com- plex urban problems presented to him and am confident that he will bring these

same qualities to bear on the solutions of the urban problems facing our Nation.

I strongly endorse the appointment of Prof. Robert Wood as Under Secretary of the Department of Housing and Urban Development, and hope that you will give his outstanding qualifications and unusual experience serious consideration.

The CHAIRMAN. Now we will hear from the nominees. If they

wish to make a statement they will have that privilege.

Mr. Weaver?
8 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

STATEMENT OF ROBERT C. WEAVER, OF NEW YORK, NOMINEE,

TO BE SECRETARY OF THE DEPARTMENT OF HOUSING AND

URBAN DEVELOPMENT

Mr. WEAVER. I want first to thank the Senators from New York

for their very gracious remarks and thank the chairman for his extreme

graciousness. It is a privilege to appear again before this committee,

and I am, of course, delighted to have what I hope will be the opportunity, depending upon your action and that of the Senate, of serving

in this—what I think is a very significant—capacity to effect a better

life for the people who live in our urban communities.

The CHAIRMAN. Professor Wood?

STATEMENT OF ROBERT C. WOOD, OF MASSACHUSETTS, NOMINEE, TO BE UNDER SECRETARY OF THE DEPARTMENT OF

HOUSING AND URBAN DEVELOPMENT

Mr. WOOD. With Mr. Weaver, I would like to express my appreciation for the opportunity to be here today, the confidence of the

President that he has placed in me, and my deep gratitude to Senator

Saltonstall for joining me this morning, and to Senator Kennedy for

the statement he sent supporting my nomination. I will do my best,

Mr. Chairman, to work in this job, give it all I can.

I will be glad to answer any questions.

The CHAIRMAN. Members of the committee will now be given an

opportunity to inquire, starting on my left and rotating in seniority.

If the Senators who have appeared to present and support the

nominees feel that they have other urgent matters to attend to, they

may wish to leave at this point.

Are there any questions?

Senator SPARKMAN. Mr. Chairman, I should like to ask just a

couple of questions, if I may.

The CHAIRMAN. The Senator from Alabama is recognized.

Senator SPARKMAN. I want to ask a couple of questions of both Mr.

Weaver and Mr. Wood, with reference to the setup or organization

of this Department.

I believe you know that I have been concerned in setting up a new

department as to just what the relative position would be with

reference to housing and urban affairs. I think it is noticeable that

when the proposition came before us in an earlier session of Congress,

it was headed "The Department of Urban Affairs and Housing."

It seemed to me that the thing was being turned around.

In the last session it came up and is now properly named, I believe,

"Housing and Urban Development." Is that right?

Mr. WEAVER. Yes, sir.

Senator SPARKMAN. And I think that is the way it ought to be.

I just want to be sure that it is going to be carried on that way.

I think there has been a good bit of fear among the people who

are greatly interested in these programs that the problems of

urban affairs might seem to be so great as to push housing more or

less to the side. The thing that I have been thinking about and have

said when this was under consideration at different times, that it

was under the program for housing. But all of the legislation for

urban affairs, almost without exception, has been enacted into law—
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 9

take mass transit, slum clearance, urban renewal—all of that has

come in with housing as the vehicle.

With that in mind, you may recall that I offered an amendment, when the proposal was before the Senate, seeking to preserve the integrity of FHA, the agency under which so much of the housing

program had been carried forward. As a matter of fact, the FHA and the Federal National Mortgage Association together have accounted for the huge profit that has come to the Government out of housing, the housing programs generally.

You are both familiar with the amendment that I offered; and with the eventual compromise in the conference committee on it? Mr. WEAVER. Yes, sir.

Mr. WOOD. Yes, sir.

Senator SPARKMAN. Do I understand, Mr. Wood, that your job is going to be primarily that of organization? You did head up the task force that made the study, did you not?

Mr. WOOD. Yes, I did.

Senator SPARKMAN. According to the newspaper reports, you will be expected to take a lot of the burden off the shoulders of Mr. Weaver. Is that understanding correct?

Mr. WOOD. I think we are working toward an understanding of what my role will be with Mr. Weaver. But certainly I have had an interest in organization and concern for it; yes, sir.

Senator SPARKMAN. You are familiar with my amendment?

Mr. WOOD. Yes.

Senator SPARKMAN. And you are in sympathy with that proposal? Mr. WOOD. Yes, sir. My belief is that urban development activi- ties originated with housing legislation; that it is unrealistic and infeasible to expect any general urban development program to go forward without a strong, hard core in the present housing programs. I would suspect that the kind of attention you indicate as your interest, is clearly a part of the philosophy of the Department. At least it is my personal philosophy.

Senator SPARKMAN. I want to agree with the chairman in the statement that he read about the job, Mr. Weaver, that you have done during the years which you have headed up the Housing and Home Finance Agency. I think there has been a great forward movement in housing the families of America during the time you have been there, and a great deal of it was due to your leadership during that time.

That is all.

Mr. WEAVER. Thank you.

The CHAIRMAN. The Senator from Utah.

Senator BENNETT. Mr. Chairman, like you, I voted against Mr. Weaver's appointment 5 years ago, and for much the same reason. And like the chairman, I am happy that Mr. Weaver has demon- strated that my fears were groundless.

I want to congratulate him on the widened opportunity he now will have, both within the organization that he will head, and in history books from here on out, and I am going to vote for the confirmation of these two gentlemen.

The CHAIRMAN. The Senator from Illinois.

Senator DOUGLAS. Mr. Weaver has demonstrated his ability in 5 years of service. I am delighted that others now come to see his merits, which many of us recognized from the beginning.
10 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

This is not a token appointment; it is an appointment on merit

which he deserves and I know Mr. Weaver will fully confirm the faith

which the President has in him.

Professor Wood comes with an excellent reputation. I think we are

off to a good start.

The CHAIRMAN. The Senator from Texas.

Senator TOWER. Dr. Weaver, the concern on the part of a number

of us relative to the formation of the Department of Urban Affairs has

been that it might create a tendency on the part of many people to

think that the Federal Government is going to resolve all of the ills of

the cities and therefore there will be diminution of a sense of local

initiative and responsibility.

I would like to ask you if it is not your idea that your Department

actually should encourage the opposite, that it should try to stimulate

local initiative and responsibility?

Mr. WEAVER. Senator, I agree completely, and in everything that

we are now doing and everything that we intend to do in the future,

the success of any Federal participation is going to be determined by

the quality of the local leadership and by the quality of the local

activity.

I think it has been crystal clear that the Federal Government does

not go in and do these programs itself. It operates through the local

agencies and the local authority, and local government, and if we are

going to succeed, as I hope we are, and certainly if we are going to

come to grips with some of these unsolved problems, we are not going

to find the answers in Washington; we are going to find the answers

in the locality, with Washington offering technical and finanzial

assistance to some degree, and it is not going to be able to offer all

of the financial assistance that is needed to do the job, either.

Senator TOWER.. Thank you, Doctor. I am glad to hear you

say that.

I would like to note, Mr. Chairman, that my predecessor in this

office voted against Dr. Weaver in confirmation. I intend to vote

for Dr. Weaver in confirmation, and I, as the ranking minority member

of the Housing Subcommittee, would like to express my 'thanks to

him for his cooperation with me in the past, and say that I look forward

to working with him in the future.

The CHAIRMAN. The Senator from Missouri.

Senator LONG. Mr. Chairman, I was a member of this committee

5 years ago when the chairman and the Senator from Texas objected

to Dr. Weaver's confirmation. I am very much impressed with your

answers now and the position you took at that time. I admired you

very much at that time, and during the 5 years since, I have had

admiration and respect for the job you are doing.

I am delighted, certainly, that the President has now offered Dr.

Weaver the opportunity to be confirmed by this body and the Senate,

and that he will be in a better position to render greater service to the

people of this Nation.

I congratulate you, Dr. Weaver.

The CHAIRMAN. The Senator from South Carolina.

Senator THURMOND. Mr. Chairman, I want to make this statement

first: Under our Constitution there are only two levels of government

referred to, and that is government at the State level and government

at the national level. I know of no authority for the National
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 11

Government to establish a Department of Urban Affairs, because this field has not been delegated to the National Government.

I have taken a similar position on many other subjects. It is simply

a question of whether we are going to follow the Constitution or not.

Therefore, when this matter came up in the Senate, I voted against

the formation of the Department of Housing and Urban Affairs.

Now that it has been created, however, the question is on the confirmation of the President's appointee. It is generally felt a

President is entitled to have his Cabinet appointees confirmed, unless

there is a clear showing of lack of capacity or character on the part

of the appointee. I have heard of no evidence against the appointee

on either of these grounds.

Now next, when an appointee has served in the Government and has made a record for himself in the Government, I think this is an important criterion to be considered. And my information is that

Dr. Weaver has made an able Administrator and that he has not shown favoritism.

I had voted originally against Dr. Weaver's confirmation because

I had received information about his particular emphasis on racial

matters, and I was concerned. But since he has been in office and filled the position in the Government that he has, I have been pleased with the information that has come to me that he has been objective in this regard.

Based on this, I shall support his confirmation.

The CHAIRMAN. The Senator from Oregon.

Senator NEUBERGER. Thank you, Mr. Chairman.

Since mention has been made of the previous time that Mr. Weaver

came before this committee, I recall that it was one of the most em- barrassing moments I ever spent in the U.S. Senate, and I thought the embarrassing situation was that the questioner was the one who should have had our sympathies, and the embarrassing situation was the sort of questions that were asked, because I remember how well the candidate replied. Since that time I have continued to enjoy

a very good friendship and acquaintance with Mr. Weaver.

I would like to comment particularly on Mr. Wood's appointment, which I think is interesting in that too often in our society we have students taking courses in political science in a university and then what do they do? I speak to many of these groups and I ask, "What

are you going to do when you graduate?" The reply is, "I am going

to teach political science."

This becomes rather incestuous, I think, so it is good to have a

political science professor who participates so actively in government,

as Mr. Wood has in the past, and as he is going to do now.

I look forward to reading your latest book on government, Mr. Wood, and I presume you will have more after your experience here.

Mr. WOOD. Thank you, Senator. I don't think I will be writing quite as frequently now.

Senator N EUBERGER. Thank you.

The CHAIRMAN. The Senator from Iowa.

Senator HICKENLOOPER. Thank you, Mr. Chairman.

The issue before the committee this morning is solely the confirma- tion of these nominees. And so, as far as I am concerned, I have not the slightest objection to their confirmation.
12 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

I think they are able men. I can only say that I still have the same

opinion that I had several years ago, although I was not on this committee. So I can't say I voted for or against anything. But I did

vote against the establishment of a Department of Urban Affairs in

the Government. I don't think it is good for the American system.

I think it erodes the State responsibility, and I opposed that because

of the bypassing which I think will occur, the bypassing of the State

and local authorities by the cities running to the Federal Government

for aid and for bounty and for handouts and for assistance, where

they should be assuming more of their own responsibility locally.

But, so far as these appointments are concerned, this matter has

been settled by the Congress, and it is a question of the confirmation

of these appointees, who are honorable and able, and I have no objection to their confirmation, although I may have objected to the

formation of the Department which they are heading.

The CHAIRMAN. The Senator from Minnesota.

Senator _MONDALE. Mr. Chairman, I was very pleased to be permitted to cosponsor the proposal for the creation of a Department of

Housing and Urban Development, and I am delighted with the

selection of Dr. Weaver and Dr. Wood by the President.

I think we must do far better than we have in the field of housing,

far better than we have in terms of the local communities, to make

our cities and suburbs better places in which to live. I think by the

creation of this Department, and by the President's nomination of

these two outstanding public servants, we have gotten off to a very

fine start, and I am delighted to see both of you.

The CHAIRMAN. The Chair has no names of any witnesses who want

to be heard. But the notice was short, and the Chair wants to be

very fair to the public.

This is an important appointment. If there be any witness here

who thinks he has a right to be heard, if he will stand up, I will let

him say why he should be heard and then we may be willing to hear

him.

[After a pause.] Nobody appears.

Senator Sparkman?

Senator SPARKMAN. Just as a matter of getting the record straight,

with reference to the point Senator Hickenlooper raised, certainly I

would agree with him--and Senator Thurmond raised it too. But

isn't it necessary, under the law, for a city or urban community which

wishes to benefit under the program to be authorized to do so by the

State?

Mr. WEAVER. In practically every program, in fact every program

we have which involves financial assistance to a local government or

to a city, it is necessary for the State to pass what we call enabling

legislation, either to authorize specifically the city to participate, or

to have such legislation as would give that city that authority.

The city cannot come to the Federal Government unless it is so

authorized by the State, either in the Constitution or by specific

legislation.

Senator SPARKMAN. I thought it would be well for the record ,to

show that.

Senator THURMOND. Mr. Chairman, I have a few questions I wish

to propound to Dr. Wood.

The CHAIRMAN. You may proceed.
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 13

Senator THURMOND. Dr. Wood, you are acquainted, I presume,

with Mr. Harold R. Isaacs, who is also at the Massachusetts Institute

of Technology?

Mr. WOOD. Yes, sir. He is a professor in my department.

Senator THURMOND. Are you familiar with Mr. Isaacs' book "The

New World of Negro Americans"?

Mr. Wood. Yes, sir.

Senator THURMOND. To what extent, if any, did you assist in or

contribute to the writing of this book by Mr. Isaacs?

Mr. WOOD. I didn't assist at all, sir. Mr. Isaacs is an independent

scholar and so am I.

Senator THURMOND. Have you recently participated in the preparation of the task force study on the problems of the big cities?

Mr. WOOD. Yes, sir; I had that pleasure.

Senator THURMOND. What is the status of this task force report?

Mr. WOOD. The report has been available to the President, and is

under consideration.

Senator THURMOND. What are your views on the establishment of

a separate Department of Transportation, rather than leaving the

mass transit problems in the Department of Urban Affairs?

Mr. WOOD. Senator, I have not arrived at any views on this point.

I am not familiar with any specific proposal on transportation beyond

that outlined in the President's state of the Union message. I am not

familiar with the details of the broad outlines he stated there.

So I think, until more information is available, I have no judgment

at the present time.

Senator THURMOND. I wish to ask you a question which I am very

much interested in, and always have been since in public life, and that

is pertaining to the States.

I am a great believer in the States. We have 51 governments in

this country, and the 50 States are sovereign in every respect, except

for those matters delegated in the Constitution to the Central Government. The States have all of the powers any sovereign nation could

have, except for certain limited restricted powers that have been

delegated by the States in the Constitution.

I guess you agree with that?

Mr. WOOD. Yes, sir.

Senator THURMOND. Do you favor abolishing or substantially

changing in any way the status of State governments?

Mr. WOOD. The only hope I would have, as far as State governments are concerned, Senator, is that they become stronger, more

vigorous, and more effective. If you look back over the last 10 or

15 years, you will find that State and local governments represent

the most rapidly growing sector of our economy. I think State governments have within the last 10 years moved very vigorously in a

series of areas to respond to the needs of their citizens. I expect

them to continue.

I think the battery of aids and the kinds of programs that this

Department and other departments and agencies of the National

Government now undertake are designed to make that energy flow

increase.

I began my service in the government as a staff assistant for the

Florida Legislature, and associate director of the Florida Legislative

Reference Bureau. At that time I came to know the capacity and
14 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

the ability of State governments; I became respectful and responsive

to the people who served there; and I have continued to hold that

view ever since.

Senator THURMOND. I am a strong believer in the States remaining

strong with their powers. I am convinced if we delegate many more

powers to the Central Government, that we will have a concentration

of power at the national level that will be dangerous to the freedom

of the people of this Nation.

History shows that wherever there has been a strong concentration

of power at any one level of government, that the people have suffered

terribly. We don't want that to happen in America. So that is the

reason I wanted to ask you about that particular question.

Mr. Chairman, based on the witness' answer to those questions,

I shall be pleased to support his confirmation.

The CHAIRMAN. Are there any further questions?

We will excuse the nominees now in order that we may go into

executive session.

(Whereupon, at 10:50 a.m., the committee went into executive

session.)

(The public law and other material relating to the establishment of

the Department of Housing and Urban Development, previously

referred to, follow:)

[Public Law 89-174, 89th Cong., H.R. 6927, September 9, 1965.1

AN ACT To establish a Department of Housing and Urban Development, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of

America in Congress assembled, That this Act may be cited as the "Department of

Housing and Urban Development Act".

DECLARATION OF PURPOSE

SEC. 2. The Congress hereby declares that the general welfare and security of

the Nation and the health and living standards of our people require, as a matter

of national purpose, sound development of the Nation's communities and metropolitan areas in which the vast majority of its people live and work.

To carry out such purpose, and in recognition of the increasing importance of

housing and urban development in our national life, the Congress finds that

establishment of an executive department is desirable to achieve the best administration of the principal programs of the Federal Government which provide

assistance for housing and for the development of the Nation's communities;

to assist the President in achieving maximum coordination of the various Federal

activities which have a major effect upon urban community, suburban, or metropolitan development; to encourage the solution of problems of housing, urban

development, and mass transportation through State, county, town, village, or

other local and private action, including promotion of interstate, regional, and

metropolitan cooperation; to encourage the maximum contributions that may be

made by vigorous private homebuilding and mortgage lending industries to

housing, urban development, and the national economy; and to provide for full

and appropriate consideration, at the national level, of the needs and interests of

the Nation's communities and of the people who live and work in them.

ESTABLISHMENT OF DEPARTMENT

SEC. 3. (a) There is hereby established at the seat of government an executive

department to be known as the Department of Housing and Urban Development

(hereinafter referred to as the "Department"). There shall be at the head of the

Department a Secretary of Housing and Urban Development (hereinafter referred

to as the "Secretary"), who shall be appointed by the President by and with the

advice and consent of the Senate. The Department shall be administered under

the supervision and direction of the Secretary. The Secretary shall receive compensation at the rate now or hereafter prescribed by law for the heads of executive

departments.
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 15

(b) The Secretary shall, among his responsibilities, advise the President with

respect to Federal programs and activities relating to housing and urban development; develop and recommend to the President policies for fostering the orderly

growth and development of the Nation's urban areas; exercise leadership at the

direction of the President in coordinating Federal activities affecting housing and

urban development; provide technical assistance and information, including

a clearinghouse service to aid State, county, town, village, or other local governments in developing solutions to community and metropolitan development

problems; consult and cooperate with State Governors and State agencies

including, when appropriate, holding informal public hearings, with respect to

Federal and State programs for assisting communities in developing solutions to

community and metropolitan development problems and for encouraging effective

regional cooperation in the planning and conduct of community and metropolitan

development programs and projects; encourage comprehensive planning by the

State and local governments with a view to coordinating Federal, State, and local

urban and community development activities; encourage private enterprise to

serve as large a part of the Nation's total housing and urban development needs

as it can and develop the fullest cooperation with private enterprise in achieving

the objectives of the Department; and conduct continuing comprehensive studies,

and make available findings, with respect to the problems of housing and urban

development.

(c) Nothing in this Act shall be construed to deny or limit the benefits of any

program, function, or activity assigned to the Department by this or any other

Act to any community on the basis of its population or corporate status, except as

may be expressly provided by law.

UNDER SECRETARY AND OTHER OFFICERS AND OFFICES

SEC. 4. (a) There shall be in the Department an Under Secretary, four Assistant

Secretaries, and a General Counsel, who shall be appointed by the President by

.and with the advice and consent of the Senate, who shall receive compensation at

the rate now or hereafter provided by law for under secretaries, assistant secretaries, and general counsels, respectively, of executive departments, and who shall

perform such functions, powers, and duties as the Secretary shall prescribe from

time to time. There shall be in the Department a Federal Housing Commissioner,

who shall be one of the Assistant Secretaries, who shall head a Federal Housing

Administration within the Department, who shall have such duties and powers as

may be prescribed by the Secretary, and who shall administer, under the supervision and direction of the Secretary, departmental programs relating to the

private mortgage market.

(b) There shall be in the Department an Assistant Secretary for Administration,

who shall be appointed, with the approval of the President, by the Secretary under

the classified civil service, who shall perform such functions, powers, and duties as

the Secretary shall prescribe from time to time, and whose annual rate of compensation shall be the same as that now or hereafter provided by or pursuant to

law for assistant secretaries for administration of executive departments.

(c) There shall be in the Department a Director of Urban Program Coordination, who shall be designated by the Secretary. He shall assist the Secretary

in carrying out his responsibilities to the President with respect to achieving

maximum coordination of the programs of the various departments and agencies

of the Government which have a major impact on community development.

In providing such assistance, the Director shall make such studies of urban and

community problems as the Secretary shall request, and shall develop recommendations relating to the administration of Federal programs affecting such

problems, particularly with respect to achieving effective cooperation among the

Federal, State, and local agencies concerned. Subject to the direction of the

Secretary, the Director shall, in carrying out his responsibilities, (1) establish

.and maintain close liaison with the Federal departments and agencies concerned,

And (2) consult with State, local, and regional officials, and consider their recommendations with respect to such programs.

TRANSFERS TO DEPARTMENT

SEC. 5. (a) Except as otherwise provided in subsection (b) of this section,

there are hereby transferred to and vested in the Secretary all of the functions,

powers, and duties of the Housing and Home Finance Agency, of the Federal

Housing Administration and the Public Housing Administration in that Agency,

And of the heads and other officers and offices of said agencies.
16 NOM/NATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

(b) The Federal National Mortgage Association, together with its functions,

powers, and duties, is hereby transferred to the Department. The next to the

last sentence of section 308 of the Federal National Mortgage Association Charter

Act and the item numbered (94) of section 303(e) of the Federal Executive Salary

Act of 1964 are hereby repealed, and the position of the President of said Association is hereby allocated among the positions referred to in section 7(c) hereof.

(c) The President shall undertake studies of the organization of housing and

urban development functions and programs within the Federal Government, and

he shall provide the Congress with the findings and conclusions of such studies,

together with his recommendations regarding the transfer of such functions and

programs to or from the Department. Notwithstanding any other provision of

this Act, none of the functions of the Secretary of the Interior authorized under

the Land and Water Conservation Fund Act of 1965 (78 Stat. 897) or other

functions carried out by the Bureau of Outdoor Recreation shall be transferred

from the Department of the Interior or in any way be limited geographically unless

specifically provided for by reorganization plan pursuant to provisions of the

Reorganization Act of 1949 (63 Stat. 203), as amended, or by statute.

CONFORMING AMENDMENTS

SEC. 6. (a) Section 19(d) (1) of title 3 of the United States Code is hereby

amended by striking out the period at the end thereof and inserting a comma and

the following: "Secretary of Health, Education, and Welfare, Secretary of Housing and Urban Development."

(b) Section 158 of the Revised Statutes (5 U.S.C. 1) is amended by adding at

the end thereof:

"Eleventh. The Department of Housing and Urban Development."

(c) The amendment made by subsection (b) of this section shall not be construed

to make applicable to the Department any provision of law inconsistent with

this Act.

ADMINISTRATIVE PROVISIONS

SEC. 7. (a) The personnel employed in connection with, and the assets, liabilities,

contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, or other funds held, used, arising from, or available or to be

made available in connection with, the functions, powers, and duties transferred

by section 5 of this Act are hereby transferred with such functions, powers, and

duties, respectively.

(b) No transfer of functions, powers, and duties shall at any time be made

within the Department in connection with the secondary market operations of

the Federal National Mortgage Association unless the Secretary finds that the

rights and interests of owners of outstanding common stock issued under the

Federal National Mortgage Association Charter Act will not be adversely affected

thereby.

(c) The Secretary is authorized, subject to the civil service and classification

laws, to select, appoint, employ, and fix the compensation of such officers and

employees, including attorneys, as shall be necessary to carry out the provisions

of this Act and to prescribe their authority and duties: Provided, That any other

provision of law to the contrary notwithstanding, the Secretary may fix the compensation for not more than six positions in the Department at the annual rate

applicable to positions in level V of the Federal Executive Salary Schedule provided by the Federal Executive Salary. Act of 1964.

(d) The Secretary may delegate any of his functions, powers, and duties to

such officers and employees of the Department as he may designate, may authorize

such successive redelegations of such functions, powers, and duties as he may

deem desirable, and may make such rules and regulations as may be necessary to

carry out his functions, powers, and duties. The second proviso of section 101(c)

of the Housing Act of 1949 is hereby repealed.

(e) The Secretary may obtain services as authorized by section 15 of the Act

of August 2, 1946, at rates not to exceed $100 per diem for individuals.

(f) The Secretary is authorized to establish a working capital fund, to be

available without fiscal year limitation, for expenses necessary for the maintenance

and operation of such common administrative services as he shall find to be

desirable in the interest of economy and efficiency in the Department, including

such services as a central supply service for stationery and other supplies and

equipment for which adequate stocks may be maintained to meet in whole or in

part the requirements of the Department and its agencies; central messenger,

mail, telephone, and other communications services; office space; central services
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 17

for document reproduction and for graphics and visual aids; and a central library

service. In addition to amounts appropriated to provide capital for said fund,

which appropriations are hereby authorized, the fund shall be capitalized by

transfer to it of such stocks of supplies and equipment on hand or on order as the

Secretary shall direct. Such fund shall be reimbursed from available funds of

agencies and offices in the Department for which services are performed at rates

which will return in full all expenses of operation, including reserves for accrued

annual leave and for depreciation of equipment.

(g) The Secretary shall cause a seal of office to be be made for the Department

of such device as he shall approve, and judicial notice shall be taken of such seal.

ANNUAL REPORT

SEC. 8. The Secretary shall, as soon as practicable after the end of each calendar

year, make a report to the President for submission to the Congress on the activities of the Department during the preceding calendar year.

SAVINGS PROVISIONS

SEC. 9. (a) No cause of action by or against any agency whose functions are

transferred by this Act, or by or against any officer of any agency in his official

capacity, shall abate by reason of this enactment. Such causes of action may

be asserted by or against the United States or such official of the Department as

may be appropriate.

(b) No suit, action, or other proceeding commenced by or against any agency

whose functions are transferred by this Act, or by or against any officer of any

such agency in his official capacity, shall abate by reason of the enactment of this

Act. A court may at any time during the pendency of the litigation, on its own

motion or that of any party, order that the same may be maintained by or against

the United States or such official of the Department as may be appropriate.

(c) Except as may be otherwise expressly provided in this Act, all powers and

authorities conferred by this Act shall be cumulative and additional to and not in

derogation of any powers and authorities otherwise existing. All rules, regulations, orders, authorizations, delegations, or other actions duly issued, made, or

taken by or pursuant to applicable law, prior to the effective date of this Act, by

any agency, officer, or office pertaining to any functions, powers, and duties transferred by this Act shall continue in full force and effect after the effective date of

this Act until modified or rescinded by the Secretary or such other officer or office

of the Department as, in accordance with applicable law, may be appropriate.

With respect to any function, power, or duty transferred by or under this Act and

exercised hereafter, reference in another Federal law to the Housing and Home

Finance Agency or to any officer, office, or agency therein, except the Federal

National Mortgage Association and its officers, shall be deemed to mean the Secretary. The positions and agencies heretofore established by law in connection

with the functions, powers, and duties transferred under section 5(a) of this Act

shall lapse.

SEPARABILITY

SEC. 10. Notwithstanding any other evidence of the intent of Congress, it is

hereby declared to be the intent of Congress that if any provision of this Act, or

the application thereof to any persons or circumstances, shall be adjudged by any

court of competent jurisdiction to be invalid, such judgment shall not affect,

impair, or invalidate the remainder of this Act or its application to other persons

and circumstances, but shall be confined in its operation to the provision of

this Act, or the application thereof to the persons and circumstances, directly

involved in the controversy in which such judgment shall have been rendered.

EFFECTIVE DATE AND INTERIM APPOINTMENTS

SEC. 11. (a) The provisions of this Act shall take effect upon the expiration of

the first period of sixty calendar days following the date on which this Act is

approved by the President, or on such earlier date as the President shall specify

by Executive order published in the Federal Register, except that any of the

officers provided for in sections 3(a), 4(a), and 4(b) of this Act may be nominated

and appointed, as provided in such sections, at any time after the date this Act

is approved by the President.

(b) In the event that one or more officers required by this Act to be appointed,

by and with the advice and consent of the Senate, shall not have entered upon
18 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

office on the effective date of this Act, the President may designate any person

who was an officer of the Housing and Home Finance Agency immediately prior

to said effective date to act in such office until the office is filled as provided in

this Act or until the expiration of the first period of sixty days following said

effective date, which ever shall first occur. While so acting such persons shall

receive compensation at the rates provided by this Act for the respective offices

in which they act.

Approved September 9, 1965.

LEGISLATIVE HISTORY

House Reports: No. 337 (Committee on Governinent Operations) and No. 884 (committee of conference)._

Senate Report No. 536 accompanying S. 1599 (Committee on Government Operations).

Congressional Record, vol. 111 (1965):

June 15, considered in House.

June 16, considered and passed House.

August 10, considered in Senate.

August 11, considered and passed Senate, amended, in lieu of S. 1599.

August 30, Senate agreed to conference report.

August 31, House agreed to conference report.

[From the Congressional Record, Aug. 30, 1965]

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT—CONFERENCE REPORT

Mr. RIBICOFF. Mr. President, I submit a report of the committee of conference on the disagreeing votes of the two Houses on the amendment of the Senate

to the bill (H.R. 6927) to establish a Department of Housing and Urban Development, and for other purposes. I ask unanimous consent for the present

consideration of the report.

The VICE PRESIDENT. The report will be read for the information of the Senate.

The legislative clerk read the report.

(For conference report, see House proceedings of Thursday, Aug. 26, 1965,

pp. 21134-21135, Congressional Record.)

The VICE PRESIDENT. Is there objection to the present consideration of the

report?

There being no objection, the Senate proceeded to consider the report. •

Mr. RIBICOFF. Mr. President, the Senate, on August 11, passed H.R. 6927 to

establish a Department of Housing and Urban Development. The Senate version of that bill had been introduced by 13 other Senators and myself. We

introduced a bill as proposed by the administration. The Subcommittee on

Executive Reorganization of the Senate Committee on Government Operations

held extensive hearings and reported the bill with various amendments designed

to better define the purpose and direction of the new Department. On_ the

floor we accepted amendments proposed by the Senator from Alabama, Mr.

Sparkman; the Senator from Massachusetts, Mr. Saltonstall; and the Senator

from Iowa, Mr. Miller.

The Senate bill contained 10 amendments to the bill as originally passed by

the House. I am pleased to report that House conferees accepted the Senate

changes in 6 of these 10 matters exactly as we took them to conference. In four

cases, a compromise was reached, but I think that in every case the .managers on

the part of the Senate achieved the objectives of the Senate in the compromise

that was agreed to. I am pleased that this conference report represents just

about as complete an accomplishment of the Senate's purposes as could have

been hoped for.

Let me now, for the information of the Senate, briefly review the matters we

took to conference, and the disposition of them in this conference report:

The Senate added language in section 2 of the bill highlights mass transportation as a major problem area, along with housing and urban development. That

was an amendment originally suggested by the Senator from New York, Mr.

Kennedy. The House conferees accepted the Senate language.

Also in section 2, the Senate added language stressing the importance of

encouraging the maximum contribution that may be made by the private homebuilding and mortgage lending industries to housing, urban development, and

the national economy. That was an amendment originally proposed by the

Senator from Oklahoma, Mr. Harris. The House conferees accepted the Senate

language. The Senator from Oklahoma proposed another amendment, which the

Senate adopted, in section 3 of the bill, which also sought to stress the role of

private enterprise in meeting housing and urban development needs. The

House conferees also accepted the Senate language in this connection.
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 19

The Senate bill added in section 3(b) a responsibility of the Secretary, as

follows:

"The Secretary shall, among his responsibilities, * * * consult and cooperate

with State governments with respect to State programs for assisting communities

in developing solutions to community and metropolitan development problems

and for encouraging effective regional cooperation in the planning and conduct

of community and metropolitan development programs and projects."

This was an amendment originally proposed by the Senator from New Mexico,

Mr. Montoya.

The House in substance agreed to the Senate language, although there was a

change in the wording which I shall describe in a moment, in connection with the

next amendment of the Senate.

The Senate bill, in section 3(b), contained new language proposed by the distinguished Senator from Massachusetts, Mr. Saltonstall. In the Senate version,.

the language read as follows:

"The Secretary shall, among his responsibilities * * * upon the request of the

Governor of any State, within 60 days of such request, hold an informal public

hearing in any community of such State with respect to the manner in which any

program of assistance to a State or local public body or agency administered by

the Department is proposed to be, or is being, carried out in such community.

The House conferees objected strenuously to this provision. They argued

that it allowed the Secretary no discretion as to when or where or about what

hearings would be held. They also argued that it was duplicative of the amendment on the same general subject which I just discussed—that is, the language

proposed by the Senator from New Mexico. However, the Senate conferees.

were determined to achieve what the Senator from Massachusetts had in mind:

the addition of language in the bill to recognize the very great interest and responsibility of the State Governors in the programs of the Department, and to

give them a voice in connection with the administration of these programs in

their States and communities. We had a great deal of discussion, and finally a

compromise was worked out. The language originally proposed by the Senator

from New Mexico relating to consultation and cooperation with State governments with respect to State programs was rewritten to read as follows:

"The Secretary shall * * * consult and cooperate with State Governors and

State agencies, including, when appropriate, holding informal public hearings,.

with respect to Federal and State programs * * *, and so on."

So I think that we have met the objections of the House and still have accomplished everything that the Senator from Massachusetts had in mind. Provision is made for informal public hearings, and I have no doubt that any Secretary

will be responsive to requests for such hearings so long as they are reasonable

with respect to subject matter, time, and place. The Secretary is directed to

consult with State Governors as well as agencies, and the language concerning

consultation and cooperation is broadened to cover Federal as well as State

programs for community and metropolitan development. So that while we had

to compromise, I think we did not concede anything in principle from the position

of the Senate, and I think we developed language which actually improves the bill..

Senators will recall that, on an amendment offered by the very distinguished

Senator from Alabama, the chairman of the Housing Subcommittee of the Committee on Banking and Currency, Mr. Sparkman, for himself and Senator McClellan, Senator Mundt, and Senator Tower, the Senator added the following

language to the bill:

"There shall be in the Department a Federal Housing Administration headed

by a Federal Housing Commissioner, who shall be appointed by the President,

by and with the advice and consent of the Senate. The Federal Housing Commissioner shall have such duties and powers as may be prescribed by the Secretary."

The House conferees objected to this provision. Among other things, they

objected to adding to the bill an additional high level position with Presidential

appointment. They argued that it would blur lines of authority.

The Senate conferees, on the other hand, were adamant in support of the

Senate position, that the continuation of the Federal Housing Administration by

that name in the Department, and at an appropriately high level, ought to be provided for in the law and not left to an executive branch promise. I do not mean

to imply, of course, that anyone questioned the good faith of the commitment

made by the Budget Director on behalf of the executive branch, or doubted that

it would be faithfully carried out. No such question was involved at all. It

was our position that such an important matter ought to be provided for in the

bill.
20 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

I will not take the time of the Senate to try to recite all the arguments on both

sides. We had a great deal of difficulty with this item. In fact, we spent a good

part of the afternoon on it. Finally the managers on the part of the House were

induced to agree to a compromise version.

The compromise strikes out both the original committee amendment, which

provided for an Assistant Secretary to be designated to administer programs

relating to the private mortgage market, and the amendment added on the

Senate floor which I have just read, and would substitute for both the following:

"There shall be in the Department a Federal Housing Commissioner, who shall

be one of the Assistant Secretaries, who shall head a Federal Housing Administration within the Department, who shall have such duties and powers as may be

prescribed by the Secretary, and who shall administer, under the supervision and

direction of the Secretary, departmental programs relating to the private mortgage

market."

So I think we have accomplished everything the Senator from Alabama and

his cosponsors advocated. The continuation of the Federal Housing Administration by that name in the Department is specifically provided for. The title

of "Federal Housing Commissioner" is preserved. The top policy voice in the

Department—under the Secretary—with respect to the policies and programs of

mortgage insurance is to be an Assistant Secretary, appointed by the President

with the advice and consent of the Senate. And thus I believe that the position

of the Senate has been fully maintained in the compromise that was reached.

The Senate bill added a new subsection 4(c) proposed by the senior Senator

from New York, Mr. JAVITS. It provided for the establishment in the Department of an Office of Urban Program Coordination, headed by a Director appointed by the Secretary. The Office would assist the Secretary in carrying out

his responsibilities to the President with respect to achieving maximum coordination of the programs of the various departments and agencies which have a

major impact on community development.

The Director would make studies of urban problems at the request of the

Secretary, and would develop recommendations relating to the administration of

Federal programs affecting these problems, particularly with respect to achieving, effective cooperation among Federal, State, and local agencies.

The Director would also be expected to establish and maintain close liaison

with the Federal departments and agencies concerned, and to consult with State,

local and regional officials and consider their recommendations.

That was the Senate amendment. The House objected to setting up an Office

of Urban Program Coordination. They argued that it was one thing to prescribe

these functions, and another to establish by law an organization unit within the

Department to carry them out.

The Senate conferees felt that the real thrust of the amendment was not.so

much the setting up of an Office as such, as it was the identification of the functions themselves; specific recognition of their importance; and provision for a person to whom the Secretary could make assignments in this area and whom he could

hold responsible for carrying those assignments out.

So a compromise was reached. The specific language requiring that there be

an Office of Urban Program Coordination was eliminated, but the position of

Director was retained. The functions and duties were left unchanged. We feel

that we have accomplished what the senior Senator from New York intended,

and that the compromise does not weaken his amendment as the Senate originally

agreed to it.

The Senate bill contained language, proposed by the junior Senator from New

York [Mr. Kennedy], providing that:

"The President shall undertake studies of the organization of housing and urban

development functions and programs within the Federal Government, and he

shall provide the Congress with the findings and conclusions of such studies, together with his recommendations regarding the transfer of such functions and

programs to or from the Department."

The House accepted the language proposed by the Senate.

The Senate adopted an amendment proposed by the Senator from Washington

[Mr. Jackson] which added the following language to section 5(c) that:

"Notwithstanding any other provision of this Act, none of the functions of the

Secretary of the Interior authorized under the Land and Water Conservation

Fund Act of 1965 (78 Stat. 897) or other functions carried out by the Bureau of

Outdoor Recreation shall be transferred from the Department of the Interior or

in any way be limited geographically unless specifically provided for by reorganition plan pursuant to provisions of the Reorganization Act of 1949, as amended

(79 Stat. 135) or by statute."
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 21

The House accepted the language proposed by the Senate.

Finally, Mr. President, the Senate adopted various amendments offered en

bloc by the Senator from Iowa [Mr. Miller] which, at various points in the bill,

added "community" or "and community" to the text, or substituted the word

"community" for the word "urban." The House agreed to each of these changes.

Mr. President, the establishment of this new Department of Housing and

Urban Development is in keeping with the growth of our Nation from a predominantly rural, agricultural country to the great world power we are today.

We are big, and we are growing. Amazingly, 90 percent of the growth is taking

place in our cities and their urban environs. The establishment of this new

Department recognizes this and creates an agency of Government at the very

highest level to deal with it.

The work of many has gone into the making of this new Department. The

members of our subcommittee—of both parties—have been cooperative and contributed greatly to improving the bill.

Representatives of the executive branch were extremely helpful in developing

this legislation, and while many deserve praise, one individual—Mr. Hilbert

Fefferman—deserves special mention for his outstanding contributions in working

with us on this bill.

Mr. President, America is coming of age. It is beset with problems but the

opportunities for a better and richer life for all are boundless. The bulk of her

people live now in cities and urban complexes. Their problems and opportunities

will now be represented at the Cabinet table.

I am pleased that the Vice President is presiding over the Senate at this time,

when a motion for the adoption of the conference report is about to be made.

No one in the Nation has worked harder for the creation of this new Department

than he. No person in this Nation is more aware of the great problems of urban

urban America—how they exist today and how they will multiply in the future—

than he.

Since the President has designated the present incumbent of the chair, to be

his liaison and to work with the mayors of America in helping to solve the problems

of our cities, it is most fitting that the distinguished Vice President occupies the

chair today.

Mr. President, I move the adoption of the conference report.

The VICE PRESIDENT. The Chair thanks the Senator from Connecticut for

his gracious remarks.

The question is on agreeing to the conference report.

The report was agreed to.

Mr. Javits subsequently said: Mr. President, the conference report on the bill

to create a new Federal Department of Housing and Urban Development, approved by the Senate today, represents an important revision, and in my judgment

a stronger measure than the one introduced with administration support last

March.

I am most gratified that the Department, which I have supported since its

beginning in the 86th Congress, is now almost a reality. Creation of this new

urban development executive department represents the dawn of a new era in

recognition of and in providing hope for the solution of the serious and complex

problems of this Nation's metropolitan man. The Department will provide

important new organizational machinery to deal with the critical problems of

metropolitan communities. The Senator from Connecticut [Mr. Ribicoff] and

the members of the committee did a most outstanding job in working on this

bill.

The need for coordinating all Federal programs which have an impact on urban

development has been provided for in the bill by the creation of staff responsibilities in the Department to coordinate such programs. I believe this coordinating function in the Department is vitally important. A second amendment which

I suggested was the establishment of an Urban Interagency Advisory Council

composed of certain Cabinet Secretaries and heads of independent Federal agencies

concerned with community development programs to advise the Secretary of the

new Department with respect to developing and improving existing development

programs and considering new ones. It was suggested that such a body could be

created with greater flexibility by means of an Executive order. Accordingly,

I very much hope that such an Interagency Advisory Council will soon be established to insure maximum effectiveness of the new Department.

The bill contains a number of effective proposals by the members of the committee and is very much a bipartisan product. The minority was particularly

interested in defining the important role of the States in working with the new
22 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

Federal Department, including provision for informal public hearings on controversial projects administered by the Department; the strengthening of the departmental machinery for coordination of the some 60 Federal programs having an

impact on urban communities operated both within and outside the Department

and emphasis upon a strong and vital role for the Federal Housing Administration within the Department. I believe constructive solutions were reached on

points and both the Senate and House conferees are to be commended for their

determination to forge meaningful new authority for the Cabinet Secretary.

This is a landmark piece of legislation, and we look forward to its implementation

with hope and interest.

[H. Rept. 884, 89th Cong., 1st sess., Aug. 26, 19651

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

(Conference report to accompany H.R. 6927)

The committee of conference on the disagreeing votes of the two Houses on

the amendment of the Senate to the bill (H.R. 6927) to establish a Department

of Housing and Urban Development, and for other purposes, having met, after

full and free conference, have agreed to recommend and do recommend to their

respective Houses as follows:

That the House recede from its disagreement to the amendment of the Senate

and agree to the same with an amendment as follows:

In lieu of the matter proposed to be inserted by the Senate amendment insert

the following: That this Act may be cited as the "Department of Housing and Urban

Development Act".

DECLARATION OF PURPOSE

SEC. 2. The Congress hereby declares that the general welfare and security of the

Nation and the health and living standards of our people require, as a matter of national purpose, sound development of the Nation's communities and metropolitan

areas in which the vast majority of its people live and work.

To carry out such purpose, and in recognition of the increasing importance of

housing and urban development in our national life, the Congress finds that establishment of an executive department is desirable to achieve the best administration of the

principal programs of the Federal Government which provides assistance for housing

and for the development of the Nation's communities; to assist the President in achieving

maximum coordination of the various Federal activities which have a major effect

upon urban community, suburban, or metropolitan development; to encourage the

solution of problems of housing, urban development, and mass transportation through

State, county, town, village, or other local and private action, including promotion

of interstate, regional, and metropolitan cooperation; to encourage the maximum

contributions that may be made by vigorous private homebuilding and mortgage lending

industries to housing, urban development, and the national economy; and to provide

for full and appropriate consideration, at the national level, of the needs and interests

of the Nation's communities and of the people who live and work in them.

ESTABLISHMENT OF DEPARTMENT

SEC. 3. (a) There is hereby established at the seat of government an executive department to be known as the Department of Housing and Urban Development (hereinafter

referred to as the "Department"). There shall be at the head of the Department a

Secretary of Housing and Urban Development (hereinafter referred to as the "Secretary"), who shall be appointed by the President by and with the advice and consent

of the Senate. The Department shall be administered under the supervision and

direction of the Secretary. The Secretary shall receive compensation at the rate now

or hereafter prescribed by law for the heads of executive departments.

(b) The Secretary shall, among his responsibilities, advise the President with

respect to Federal programs and activities relating to housing and urban development;

develop and recommend to the President policies for fostering the orderly growth and

development of the Nation's urban areas; exercise leadership at the direction of the

President in coordinating Federal activities affecting housing and urban development;

provide technical assistance and information, including a clearinghouse service to

aid State, county, town, village, or other local governments in developing solutions

Lo community and metropolitan development problems; consult and cooperate with

State Governors and State agencies, including, when appropriate, holding informal

public hearings, with respect to Federal and State programs for assisting communities
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 23

in developing solutions to community and metropolitan development problems and for

encouraging effective regional cooperation in the planning and conduct of community

and metropolitan development programs and projects; encourage comprehensive planning by the State and local governments with a view to coordinating Federal, State,

and local urban and community development activities; encourage private enterprise

to serve as large a part of the Nation's total housing and urban development needs as

it can and develop the fullest cooperation with private enterprise in achieving the

objectives of the Department; and conduct continuing comprehensive studies, and make

available findings, with respect to the problems of housing and urban development.

(c) Nothing in this Act shall be construed to deny or limit the benefits of any

program, function, or activity assigned to the Department by this or any other Act to

any community on the basis of its population or corporate status, except as may be

,expressly provided by law.

UNDER SECRETARY AND OTHER OFFICERS AND OFFICES

SEC. 4. (a) There shall be in the Department an Under Secretary, four Assistant

Secretaries, and a General Counsel, who shall be appointed by the President by and

with the advice and consent of the Senate, who shall receive compensation at the rate

now or hereafter provided by law for under secretaries, assistant secretaries, and general

counsels, respectively, of executive departments, and who shall perform such functions,

powers, and duties as the Secretary shall prescribe from time to time. There shall

be in the Department a Federal Housing Commissioner, who shall be one of the

Assistant Secretaries, who shall head a Federal Housing Administration within the

Department, who shall have such duties and powers as may be prescribed by the Secretary, and who shall administer, under the supervision and direction of the Secretary,

departmental programs relating to the private mortgage market.

(b) There shall be in the Department an Assistant Secretary for Administration,

who shall be appointed, with the approval of the President, by the Secretary under the

classified civil service, who shall perform such functions, powers, and duties as the

Secretary shall prescribe from time to time, and whose annual rate of compensation

shall be the same as that now or hereafter provided by or pursuant to law for assistant

secretaries for administration of executive departments.

(c) There shall be in the Department a Director of Urban Program Coordination,

who shall be designated by the Secretary. He shall assist the Secretary in carrying

out his responsibilities to the President with respect to achieving maximum coordination of the programs of the various departments and agencies of the Government which

have a major impact on community development. In providing such assistance, the

Director shall make such studies of urban and community problems as the Secretary

shall request, and shall develop recommendations relating to the administration of

Federal programs affecting such problems, particularly with respect to achieving

effective cooperation among the Federal, State, and local agencies concerned. Subject

to the direction of the Secretary, the Director shall, in carrying out his responsibilities,

(I) establish and maintain close liaison with the Federal departments and agencies

concerned, and (2) consult with State, local, and regional officials, and consider their

recommendations with respect to such p? ograms.

TRANSFERS TO DEPARTMENT

SEC. 5. (a) Except as otherwise provided in subsection (b) of this section, there are

hereby transfei red to and vested in the Secretary all of the functions, powers, and duties

of the Housing and Home Finance Agency, of the Federal Housing Administration

and the Public Housing Administration in that Agency, and of the heads and other

officers and offices of said agencies.

(b) The Federal National Mortgage Association, together with its functions, powers,

and duties, is hereby transferred to the Department. The next to the last sentence of

section 308 of the Federal National Mortgage Association Charter Act and the item

numbered (94) of section 303(e) of the Federal Executive Salary Act of 1964 are hereby

repealed, and the position of the President of said Association is hereby allocated

among the positions refe7red to in section 7(c) hereof.

(c) The President shall undertake studies of the organization of housing and urban

development functions and programs within the Federal Government, and he shall

provide the Congress with the findings and conclusions of such studies, together with

his recommendations regarding the transfer of such functions and programs to or from

the Department. Notwithstanding any other provision of this Act, none of the functions of the Secretary of the Interior authorized under the Land and Water Conservation

Fund Act of 1965 (78 Stat. 897) or other functions carried out by the Bureau of Outdoor Recreation shall be transferred from the Department of the Interior or in any way

be limited geographically unless specifically provided for by reorganization plan purS.
24 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

suant to provisions of the Reorganization Act of 1949 (63 Stat. 203), as amended, or

by statute.

CONFORMING AMENDMENTS

SEC. 6. (a) Section 19(d)(1) of title 8 of the United States Code is hereby amended

by striking out the period at the end thereof and inserting a comma and the following:

"Secretary of Health, Education, and Welfare, Secretary of Housing and Urban

Development."

(b) Section 158 of the Revised Statutes (5 U.S.C. 1) is amended by adding at the

end thereof:

"Eleventh. The Department of Housing and Urban Development."

(c) The amendment made by subsection (b) of this section shall not be construed to

make applicable to the Department any provision of law inconsistent with this Act.

ADMINISTRATIVE PROVISIONS

SEC. 7. (a) The personnel employed in connection with, and the assets, liabilities,

contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, or other funds held, used, arising from, or available or to be made

available in connection with, the functions, powers, and duties transferred by section

5 of this Act are hereby transferred with such functions, powers, and duties,

respectively.

(b) No transfer of functions, powers, and duties shall at any time be made within

the Department in connection with the secondary market operations of the Federal

National Mortgage Association unless the Secretary finds that the rights and interests

of owners of outstanding common stock issued under the Federal National Mortgage

Association Charter Act will not be adversely affected thereby.

(c) The Secretary is authorized, subject to the civil service and classification laws,

to select, appoint, employ, and fix the compensation of such officers and employees,

including attorneys, as shall be necessary to carry out the provisions of this Act and

to prescribe their authority and duties: Provided, That any other provision of law to

the contrary notwithstanding, the Secretary may fix the compensation for not more than

six positions in the Department at the annual rate applicable to positions in level V

of the Federal Executive Salary Schedule provided by the Federal Executive Salary

Act of 1964.

(d) The Secretary may delegate any of his functions, powers, and duties to such

officers and employees of the Department as he may designate, may authorize such

successive redelegations of such functions, powers, and duties as he may deem desirable,

and may make such rules and regulations as may be necessary to carry out his functions, powers, and duties. The second proviso of section 101(c) of the Housing Act

of 1949 is hereby repealed.

(e) The Secretary may obtain services as authorized by section 15 of the Act of

August 2, 1946, at rates not to exceed $100 per diem for individuals.

(f) The Secretary is authorized to establish a working capital fund, to be available

without fiscal year limitation, for expenses necessary for the maintenance and operation

of such common administrative services as he shall find to be desirable in the interest

of economy and efficiency in the Department, including such services as a central

supply service for stationery and other supplies and equipment for which adequate

stocks may be maintained to meet in whole or in part the requirements of the Department and its agencies; central messenger, mail, telephone, and other communications

services; office space; central services for document reproduction and for graphics and

visual aids; and a central library service. In addition to amounts appropriated to

provide capital for said fund, which appropriations are hereby authorized, the fund

shall be capitalized by transfer to it of such stocks of supplies and equipment on hand

or on order as the Secretary shall direct. Such fund shall be reimbursed from available

funds of agencies and offices in the Department for which services are performed at

rates which will return in full all expenses of operation, including reserves for accrued

annual leave and for depreciation of equipment.

(g) The Secretary shall cause a seal of office to be made for the Department of such

device as he shall approve, and judicial notice shall be taken of such seal.

ANNUAL REPORT

SEC. 8. The Secretary shall, as soon as practicable after the end of each calendar

year, make a report to the President for submission to the Congress on the activities

of the Department during the preceding calendar year.
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 25

SAVINGS PROVISIONS

SEC. 9. (a) No cause of action by or against any agency whose functions are transferred by this Act, or by or against any officer of any agency in his official capacity,

shall abate by reason of this enactment. Such causes of action may be asserted by or

against the United States or such official of the Department as may be appropriate.

(b) No suit, action, or other proceeding commenced by or against any agency whose

functions are transferred by this Act, or by or against any officer of any such agency

in his official capacity, shall abate by reason of the enactment of this Act. A court

may at any time during the pendency of the litigation, on its own motion or that of any

party, order that the same may be maintained by or against the United States or such

official of the Department as may be appropriate.

(c) Except as may be otherwise expressly provided in this Act, all powers and

authorities conferred by this Act shall be cumulative and additional to and not in

derogation of any powers and authorities otherwise existing. All rules, regulations,

orders, authorizations, delegations, or other actions duly issued, made, or taken by or

pursuant to applicable law, prior to the effective date of this Act, by any agency, officer,

or office pertaining to any functions, powers, and duties transferred by this Act shall

continue in full force and effect after the effective date of this Act until modified or

rescinded by the Secretary or such other officer or office of the Department as, in accordance with applicable law, may be appropriate. With respect to any function, power,

or duty transferred by or under this Act and exercised hereafter, reference in another

Federal law to the Housing and Home Finance Agency or to any officer, office, or

agency therein, except the Federal National Mortgage Association and its officers,

shall be deemed to mean the Secretary. The positions and agencies heretofore established by law in connection with the functions, powers, and duties transferred under

section 5(a) of this Act shall lapse.

SEPARABILITY

SEC. 10. Notwithstanding any other evidence of the intent of Congress, it is hereby

declared to be the intent of Congress that if any provision of this Act, or the application

thereof to any persons or circumstances, shall be adjudged by any court of competent

jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the

remainder of this Act or its application to other persons and circumstances, but shall

be confined in its operation to the provision of this Act, or the application thereof to the

persons and circumstances, directly involved in the controversy in which such judgment

shall have been rendered.

EFFECTIVE DATE AND INTERIM APPOINTMENTS

SEC. 11. (a) The provisions of this Act shall take effect upon the expiration of the

first period of sixty calendar days following the date on which this Act is approved by

the President, or on such earlier date as the President shall specify by Executive order

published in the Federal Register, except that any of the officers provided for in sections

3(a), 4(a), and .4(b) of this Act may be nominated and appointed, as provided in such

sections, at any time after the date this Act is approved by the President.

(b) In the event that one or more officers required by this Act to be appointed, by

and with the advice and consent of the Senate, shall not have entered upon office on

the effective date of this Act, the President may designate any person who was an

officer of the Housing and Home Finance Agency immediately prior to said effective

date to act in such office until the office is filled as provided in this Act or until the

expiration of the first period of sixty days following said effective date, whichever shall

first occur. While so acting such persons shall receive compensation at the rates

provided by this Act for the respective offices in which they act.

And the Senate agree to the same.

WILLIAM L. DAWSON,

CHET HOLIFIELD,

DANTE B. FASCELL,

HENRY S. REUSS,

BENJAMIN S. ROSENTHAL,

JOHN N. ERLENBORN,

JOHN W. WYDLER,

Managers on the Part of the House.

ABRAHAM RIBICOFF,

HENRY M. JACKSON,

ROBERT F. KENNEDY,

J. K. JAVITS,

MILWARD L. SIMPSON,

Managers on the Part of the Senate.
26 NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD

STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE

The managers on the part of the House at the conference on the disagreeing

votes of the two Houses on the amendment of the Senate to the bill (H.R. 6927)

to establish a Department of Housing and Urban Development, and for other

purposes, submit the following statement in explanation of the effect of the action

agreed upon by the conferees and recommended in the accompanying conference

report:

The Senate struck out all of the House bill after the enacting clause and inserted

a substitute amendment. The committee of conference had agreed to a substitute

for both the House bill and the Senate amendment. Except for technical,

clarifying, and conforming changes, the following statement explains the differences between the House bill and the substitute agreed to in conference.

The Senate amendment deleted nothing substantive from the House bill but

made a number of additions.

The Senate inserted the word "community" or substituted it for "urban" at

various points in the bill so that the areas affected by the legislation would be

broadened to include "community" as well as urban, suburban, or metropolitan

as were contained in the House bill. The managers on the part of the House

accepted this amendment.

The declaration of purpose in the House bill was amended by the Senate to

encourage the solution of problems of mass transportation and also to encourage

the maximum contributions that may be made by the vigorous private homebuilding and mortgage lending industries to housing, urban development, and

the national economy. These additions were accepted by the managers on the

part of the House.

In section 3, the Senate created an additional responsibility for the Secretary

of the new Department to consult and cooperate with State governments with

respect to State programs for assisting communties in developing solutions to

community and metropolitan problems and for encouraging effective regional

cooperation in the planning and conduct of community arid metropolitan development programs and projects. It also required the Secretary, upon the request

of the Governor of any State, within 60 days of such request, to hold an informal

public hearing in any community of such State with respect to the manner in

which any program of assistance to a State or local public body or agency administered by the Department is proposed to be, or is being, carried out in such

community. The conferees substituted for the above a provision requiring the

Secretary to "consult and cooperate with State Governors and State agencies

including, when appropriate, holding informal public hearings with respect

to Federal and State programs for assisting communities in developing solutions

to community and metropolitan development problems and for encouraging

effective regional cooperation in the planning and conduct of community and

metropolitan development programs and projects."

The holding of such public hearings would be entirely discretionary with the

Secretary. The Senate managers receded and agreed to this provision.

In section 3, a further responsibility was placed upon the Secretary by the

Senate to "encourage private enterprise to serve as large a part of the Nation's

total housing and urban development needs as it can and develop the fullest

cooperation with private enterprise in achieving the objectives of the Department." The managers on the part of the House agreed to this amendment.

The House bill included a provision in section 4 that one of the Assistant

Secretaries of the new Department shall be designated to administer, under the

supervision and direction of the Secretary, departmental programs relating

to the private mortgage market. The Senate added a provision that "there

shall be in the Department a Federal Housing Administration headed by a Federal Housing Commissioner who shall be appointed by the President, by and with

the advice and consent of the Senate. The Federal Housing Commissioner

shall have such duties and powers as may be prescribed by the Secrettry." The

conferees agreed to eliminate both provisions and substitute the following:

"There shall be in the Department a Federal Housing Commissioner, who

shall be one of the Assistant Secretaries, who shall head a Federal Housing Administration within the Department, who shall have such duties and powers

as may be prescribed by the Secretary, and who shall administer, under the

supervision and direction of the Secretary, departmental programs relating to

the private mortgage market."

The Senate added an additional subsection to section 4 creating within the new

Department an Office of Urban Program Coordination headed by a Director,

to be appointed by the Secretary, who will assist the Secretary in achieving maxi-
NOMINATIONS OF ROBERT C. WEAVER AND ROBERT C. WOOD 27

mum coordination of the programs of the various departments and agencies of

the Government which have a major impact on community development. The conferees agreed that such an Office would not be created, but that a position in the Department would be established called the Director of Urban Program Coordination, to be designated by the Secretary, to assist the Secretary in carrying

out his responsibilities to the President with respect to achieving maximum coordination of the programs of the various departments and agencies of the Government which have a major impact on community development. In providing such assistance, the Director shall make such studies of urban and com- munity problems as the Secretary shall request, and shall develop recommendations

relating to the administration of Federal programs affecting such problems, particularly with respect to achieving effective cooperation among the Federal,

State, and local agencies concerned. Subject to the direction of the Secretary,

the Director shall, in carrying out his responsibilities, (1) establish and maintain

close liaison with the Federal departments and agencies concerned, and (2)

consult with State, local, and regional officials, and consider their recommendations

with respect to such programs.

In section 5, the Senate included an amendment providing as follows:

"(c) The President shall undertake studies of the organization of housing and urban development functions and programs within the Federal Government, and

he shall provide the Congress with the findings and conclusions of such studies,

together with his recommendations regarding the transfer of such functions and

programs to or from the Department. Notwithstanding any other provision of this Act, none of the functions of the Secretary of the Interior authorized under

the Land and Water Conservation Fund Act of 1965 (78 Stat. 897) or other functions carried out by the Bureau of Outdoor Recreation shall be transferred

from the Department of the Interior or in any way be limited geographically

unless specifically provided for by reorganization plan pursuant to provisions of

the Reorganization Act of 1949, as amended (79 Stat. 135), or by statute."

The managers on the part of the House receded from their disagreement with

this amendment and adopted the Senate provision.

WILLIAM L. DAWSON,

CHET HOLIFIELD,

DANTE B. FASCELL,

HENRY S. REUSS,

BENJAMIN S. ROSENTHAL,

JOHN N. ERLENBORN,

JOHN W. WYDLER,

Managers on the Part of the House.