The New York herald., 1921-12-06

or the dFpoflnlCtltS-
| "Ninth--The administrative heads of
the departments az the corporation were
selected. az a rule. with less reference to
their business qualifications than TO their
qualifications as advisers 10 the presi-
| dent of the corporation along other lines
| than routine business administration At
the inception OF tseir appointment they
were introduced 10 a business with
which they We're generally unfamiliar
and were compelled 20 rely largely on
! the advice Of subordinates who werc
welded to the theory Of the right of IN
dependent operation of a department.
The tenure OF their administration was
often less than four years.
"As a rule. they became the earnest
| advocates OF departmental plans which
! their inexpcrience In departmental buei-
| ness prevented them from fully compre-
| hending In all their aspects. Being
/ held to no responsibility by the execu-
| tive head TO operate their departments
along a unified corporation policy In
routine business, they became. there-
fore. In general only shelter and pro.
lection for the independent operation OF
| departments.
| ..Instead of becoming coaduits as in
he properly run corporation. for the i'm
position of an executive plan, made In
the interests of the corporation as
whole. upon the body of the business
administration. they became, OF neces-
| sity, more or less OF an obstruction 10
the occa sionai flow OF executive author
ity in routine business. Their general
| position was, Of necessity. determined py
the advice OF those operating the depart
n,ent under the theory that it was In
| dependent, while there existed no one to
! place before them the necessities OF the
/ corporation considered as a whole.
| Business Rules Violated.
"Tenth-The subordinate members OF
departmental organization or the cor
| Ioration were encouraged to state the
! needs of their particular subdivision Of
their department directly to the agency
| CT the corporation (Consress). which
made the desired levy upon the stock
holders (the public). This custom, in
violation OF all the rules governing the
correct functioning of the successful
| corporation. tended to increase the con-
/ fidence of these subordinate officials in
| opposing any change operating to sub
ordinate departmental control In routine
| business to an executive control of the
| corporation.
/ "Eleventh--A general public interest
| III the operations Of the corporation en-
couraged subordinate members OF its
business organization, including its ad-
! minlstrative vce-presidents. in making
programmes OF business and expenditure
to consider their relation to popular ap-
, proval, whether right or wrong. thus
! cften forcing question of policy which
was properly in che purview of the presi-
dent of the corporation alone. pre-
MUM was often placed upon the expen-
diture of money as distinguished from
its saving. since uniformed public ap-
proval is often reserved for activity and
! apparent enterprise in extending the cor
, roration's functions. irrespective of their
wisdom.
practically all OF the last ten defects
OK the corporation were the direct result
OF the first one, TO wit, that the president
of the corporation gave practically no
attertion to its ordinary routine busi-
ness
Director Dawes then proceeds to show
how. following the passage of the budget
act last spring and the organization of
he Bureau of the Budget, President Har-
ding established by executive order
series of agencies to overcome those de-
focts and to coordinate in all matters of
routine business the activities of the
separate departments and establish
mcnts
The Federal Purchasing Board, con-
slsting of the chief purchasing officer OF
zach department or establishment. with
a chief coordinator as chairman. named
by the President.
Tb- Federal Liquidation Board, COR
sisting OF one representative from each
department or establishment having sales
activity.
An organization OF corps area coordi-
nators, to make practical extension Of the
principles involved in the two above
4 ,r1s t1-n ffra nffsxr
For this purpose the United States has
been divided into nine areas, correspond
ing TO the nine army corps areas, and a
coordinator established at the head Of
each
A Surveyor General OF real estate
Federal motor transport agent
A Federal Traffic Board.
a Federal Board of disqualification.
Federal Specifications Board.
In explaining the functions TO these
several agencies and their relation to
the Chief Executive Director Dawes
says:
an any discussion OF these agencies
created through executive order by the
President 20 assist him in the imposition
| of a unified plan for the transaction of
the routine business of the Government
II cannot be too strongly emphasized
/ that they are concerned only with rou-
tine business and not with matters of
governmental policy. Policies OF gov
ernment are determined by the Execu-
| tive and by Congress. When Congress
passes a law appropriating money for
| the cost Of governmental activities and
projects II becomes the duty of the Ex-
| ecutive. I'm so far as these expenditures
are concerned, TO see that the money Is
devoted to the objects of appropriation
| In the most economical and efficient
manner possible.
These coordinating agencies estab-
lished by the Executive are for the sole
purpose OF enabling the President in
matters OF routine business to so CO.
! ordinate the activities OF the different
departments and establishments as will
! insure the most efficient and economical
expenditure OF the money appropriated
\ by Congress. The powers they exer-
else, the questions thev consider the cir
cumfcrence OF their activities are ell
concerned fundamentally with the rou-
I tine Of business methods as distin-
gulshed from anything In the nature OF
4 governmental policy. They operate
effective the policy adopted by Congress
and tie Executive.
These agencies, concerned alone with
efficient and economical methods. should
operate In the same manner whatever
| the political changes which may occur
in administration. Like the Budget Bu-
resu and other agencies for the iinposl-
ton OF business policy they are imper-
sonai impartial and non-partisan. They
can never properly become the subject