Evening star., 1946-06-20

Plans Rejected
ByHouseGroup
Truman Gets Setback
On Three Proposals
For Modernizution
By Joseph Young

President Truman's three plans
to reorganize the Government
received a severe setback today
when the House Committee on
Expenditures voted against the
proposals, which include making
permanent the National Housing
Agency and transferring Federal
health activities to the Federal
Security Agency.
Committee members predicted
that their action would result in
House disapproval of the proposals.
Under the Reorganization Act of
l945, the Presidents recommends
tions will become law unless both
the Senate and House adopt reso-
lutions expressing disapproval
within 60 days after the plans
are submitted. In this case the
deadline is July 16. Thus both
Senate and House would have to
take positive action by then to kill
the plans.
House Rejection Forecast.
The committee action today
means that the House will act on
the proposals, and observers pre-
dict it will reject them. They now
are the subject of hearings by the
Senate Judiciary Committee, where
action is uncertain.
Acting Chairman Wilmington did
not disclose the committees vote,
but said there had been a heavy
majority in favor of rejecting the
plan.
Representative Hoffman, Repub-
lican, of Michigan said the vote was
10 to 3.
During the committees recent
hearings on the plan, heavy opposi-
tion appeared against the proposals,
especially those contained in plans
No. and No. 2.
Business representatives and
builders appeared before the COM
mittee to oppose the consolidation
of all Federal housing activities
under the National Housing Agency,
asserting that this would lead to
Specialization" of the building in
dustry, and retard the Nations
housing program.
Threat to Builders Seen.
They further contended that OIL
cials of the MIA were unduly SYM
pathetic to public housing, and the
transfer of all Federal housing ac-
tivities, including the Federal Home
Loan Bank Board and the Federal
Savings and Loan Insurance Corp.
would mean the death knell for the
private building industry.
| In taking its action today, the
committee actually voted its ap-
proval of the three resolutions
against the plan presented by Rep
resentative Pittenger, Republican, of
Minnesota.
President Truman's reorganiza- =
tion plan No. called for the trans
fer of the Children's Bureau and
| the vital statistics functions of the
Census Bureau to the Federal Sc
curity Agency. The plan also would
transfer the functions of the United
Safes Employees Compensation Com
mission to the Federal Security
Administrator.
Union Scores Victory.
The committees action represents
a victory for the American Fed
Grafton, of Government Employees
(AFL), which has strongly opposed
abolishing the Employees Compen-
sation Commission. James B. Burns,
president of the AFGE, asserted
that the commission was Perform
ing its work satisfactorily, and its
abolition would work hardship on
Federal employees, whose injury
claims are settled by the agency.
Opposition to the transfer of Fed
eral health functions to the Federal
Security Administration was based
on the fear of some doctors that this
would lead to socialized medicine.
However. the American Medical AS
sociation approved the plan.
Less Opposition to No. 5.
! Plan No. 3 did not draw as intense
opposition as the other two pro-
posals, but some objections were
raised to proposal to take away
from st. Elizabeth's Hospital mental
cases from the armed forces.
i Another feature of the plan would
. abolish the Office of Assistant Com
missioner of Education, Federal
Board of Vocational Education and
Board of Visitors of st. Elizabeth's S
; Hospital.