Evening star., 1952-11-26
Gray Outlines
Reorganization
Plans for VA
SIS Million Savings
Seen; Move to Close
Area Units Rejected

agency'S 10 regional Offices
throughout the country.
The plans for sweeping reorgan-
ization grow out of a management
and engineering survey ordered by
Mr.. Gray. The VA chief said man
agement engineers estimate the
revisions could save $25 million.
The plan primarily affects the
agency's central Office here, but
Mr.. Gray said it will neither re-
duce the number of VA employees
or result in transfer of any Of its
Washington employees to the field.
Denies Charges.
In response to reporters oues-
tions about charges of overstaffing
in VA. Gen. Gray heatedly denied
this was true.
Il have carefully gone over our
entire organization and am con-
vinced that there are no dead
heads on our payroll" the VA
chief declared.
The VA actually needs more
employees in many of it's hospitals
and installations to care ade-
quately for veterans needs, he
said.
Gen. Gray said the reorganiza-
ton does not contemplate at the
present time decentralizing any of
it's Washington functions or Offices
in the field. Geen. Gray said the
management engineering group
making the study had proposed
some decentralization, but that
the VA had rejected this as i'm
practicable.
Autonomous Setup.
Under the reorganization, there
will be three main departments
which will operate with autonomy
and be responsible directly to the
administrator. The department
|of medicines and surgery will OPP
crate under the chief medical di-
rector who will have absolute
authority over all hospitals and
medical service to veterans. The
other two autonomous depart
ments will be the insurance de-
Ipartment and the veterans bene-
fit department.
Under the system which is be-
ing replaced these functions were
distributed between 10 deputy
administrators.
Representative Rogers, Republi.
can, Of Massachusetts, was an in
terested spectator and interogator
at the conference. Mrs. Rogers
is expected to become chairman
OF the House Veterans Commit
tee in the new Congress.
Cost Is Emphasized.
Mrs. Rogers wanted to know
whether the proposed reorganiza-
ton program would result in ef-
f1ciency and economy. Mr.. GRAY
replied that its purpose was to
give service to veterans at a rea-
Sonable cost.
Mr.. Gray said that while he
was adhering closely to the policy
of separating staff and line func-
tions as recommended by the en-
glneering firm of Booz, Allen and
Hamilton, the organization in the
field deviates materially from that
recommended by the management
experts.
The management firm, Mr.. Gray
said. proposed that regional Office
functions be separated and set up
with each one as a separate bu-
reau in a straight line of author
ity. Each of these would be head
ed by an assistant administrator
in charge of the program with his
Authority extending directly into
the field.
Disadvantages Cited.
However, Mr.. Gray said this
would have resulted in claims
being handled in 10 centers, loan
guarantees in IL and vocational
rehabilitation and education in IA.
The new streamlined organiza-
ton, according to the administra-
tor. will simplify and speed I'D
operations which he said would
improve service to veterans and
make greater economies possible.
It also will provide closer and
more continuous supervision of
field activities.
Each Of the three operating Of
flcials will have within his de.
partment all staff and operating
functions needed to make that de-
partment self-contained and will
have full responsibility and au-
thority for the conduct Of their
functions.