Federal Narcotics Control Board. By act of May 26, 1922, a Federal Narcotics Control Board was established, to consist of the Secretaries of State, Treasury, and Commerce, which was given extensive regulatory powers governing the import and export of narcotic drugs. The board functions through the Division of Customs in the Treasury Department, the law clerk of that division acting as its secretary with authority to pass upon applications and conduct correspondence for and on behalf of the Board."

Federal Fuel Distributor; U. S. Coal Commission. The act of September 22, 1922, which declared a national emergency to exist in the production, transportation, and distribution of coal and other fuel, authorized the appointment by the President of a Federal Fuel Distributor, who should conduct investigations to determine the relative shortage of fuel in various sections of the country and in particular industries, the fields of production and principal markets, and the reasonableness of current prices, and should make recommendations to the Interstate Commerce Commission to insure an equitable distribution of the existing fuel supply so as best to meet the emergency and promote the general welfare. The powers of the Interstate Commerce Commission were enlarged to include the authority to issue priority orders, declare embargoes, and to take such other suitable measures in controlling the transportation of fuel as would tend to secure equitable distribution and prevent undue prices. The duration of the act was limited to one year from the date of its passage, with the provision that the President, by proclamation, might terminate the act prior to that time if, in his opinion, the national emergency had passed. The Office of Federal Fuel Administrator functions as an independent agency, although necessarily maintaining close working relations with the Interstate Commerce Commission."

An act passed on the same date authorized the establishment of a United States Coal Commission, to be composed of not more than seven members appointed by the President, with the consent of the Senate, whose duty it should be to investigate and ascertain fully the facts and conditions and study the problems and questions relative to the coal industry for the purpose of assisting and advising

47

48

42 Stat. L., 596; Congressional directory (January, 1923), 393-96.

42 Stat. L., 1025; Congressional directory (January, 1923), 396-7.

Congress in matters of legislation aimed at insuring an adequate supply of this commodity to the industries and people generally throughout the country, and maintaining the uninterrupted flow of commerce among the states. The life of the commission was fixed at one year by the terms of the act."

Rapid Increase in the Number of Detached Agencies. There can be no question but that the predominant factor which led Congress to create these detached boards and commissions was the nature of the powers vested in them. While all of these independent agencies were to exercise a degree of administrative power, yet they were also clothed with important quasi-judicial and quasi-legislative powers, which Congress did not deem it advisable to intrust to a department, bureau, or even to an independent service under the direction of a single officer. Furthermore, in each instance, Congress was extending the sphere of governmental control and supervision, and therefore endeavored to guard against the arbitrary exercise of such regulatory powers by placing them "in commission." President Cleveland is said to have remarked to Mr. George F. Parker in connection with the Interstate Commerce Act of 1887 that he “did not believe it was ever intended that Government should continually interfere with business," and that he feared lest "the use by independent bodies of the authority of the executive, whether in nation or state, should enable them to concentrate into their hands the great enterprizes of the country," and so lead to government operation. Yet "he well knew that there were abuses and grievances which demanded correction "; and so "in spite of reservations, I signed the bill."

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In spite of the misgivings of many executive, legislative, and judicial officers concerning the rapid extension of these independent boards and commissions, almost every Congress since 1913 has created one or more of them, and as long as that body continues to widen the sphere of federal control, their number will very likely continue to increase. The advisability of placing a large number, if not all, of these independent agencies under the jurisdiction of some one of the executive departments, will be discussed in connection with recent proposals for administrative reorganization.

CHAPTER XXI

ADMINISTRATIVE WAR AGENCIES

The participation of the United States in the World War, involving, as it did, the mobilization of the commercial, industrial, and agricultural, as well as the military, forces of the nation, resulted in the creation of a large number of special administrative services independent of the existing departments and permanent administrative establishments. In the foregoing chapters of this monograph an attempt has been made to point out the more important changes in the administrative organization of the several executive departments effected during the war period. It is now proposed to discuss briefly the establishment and organization of the special war agencies, which, because of the fact that the existing administrative organs of the national government were not adequately prepared, either in personnel, powers, or organization, to meet the pressing needs incident to the problems of mobilization for war, assumed a rôle of major importance during the period of emergency.' The scope of this chapter will not permit a discussion of the functions of these special war agencies, nor of the methods adopted by them in the performance of their work. The present study will be con

'This situation has been succinctly stated by Mr. Frederick Keppel as follows: "It is a striking commentary upon the dislocations that come in the train of modern warfare that so little of what had to be done seemed to fit into the framework of the existing administrative organisms. Here and there a government bureau with an ambitious and competent head seized the chance to develop its work to war-time size, but in general the established services went their accustomed ways. If we except the greater part of the activities of the Navy and the problems of military training and strategy, we find almost uniformly that some entirely new machine was built to meet the war-time need. Often three or four successive machines were set up, only to be scrapped, before we found one that would function properly. This does not imply a general condemnation of our peace-time governmental organization. It is rather a commentary upon the desperate seriousness of going to war in these days." Cf. Willoughby, Government organization in war time and after, xvi (1919).

'Two especially illuminating articles on this subject are the following: Paxson, The American war government, 1917-18, American Historical Review, XXVI, 54-76 (October, 1920); and Bogart, Economic organization for war, American Political Science Review, XIV, 587-606 (November, 1920).

fined chiefly to pointing out the important aspects of administrative war organization, in the light of the development of national administrative organization in the United States prior to 1917.

Administrative War Agencies Established Prior to 1917. The establishment of several detached administrative agencies previous to the entrance of the United States into the World War, which, although permanent in character, were essentially war agencies and which were greatly enlarged both in personnel and organization during the period of the war, has been discussed in the preceding chapter, and, consequently, needs only to be mentioned here. The first of these war agencies to be created was the National Advisory Committee for Aeronautics, organized pursuant to the naval appropriation act of March 3, 1915. This committee, as has been already pointed out, acted as an advisory council to the several governmental agencies concerned with aircraft production and operation during the war.' Mention also should be made of the Naval Consulting Board organized by order of Secretary Daniels in October, 1915, which was later recognized by congressional enactment. This board was primarily organized as a branch of the Navy Department, and, consequently, although during the war its services also were placed at the disposal of the Council of National Defense, its organization has been previously noted in connection with that department.

The most important of the administrative war agencies created prior to 1917 was the Council of National Defense. As this service was organized on a permanent basis, its original organization has been discussed in the preceding chapter. Its organization, together with that of its Advisory Commission, was greatly enlarged early in 1917 in preparation for war. Seven major committees were created, each in charge of one of the members of the Advisory Commission, and composed of civilian experts and administrators who volunteered their services to the council. These committees, in turn, created special boards, such as the Railroads' War Board organized on April 11, 1917, by the Committee on Transportation, and the Munitions Standards Board created on February 28, 1917,

3

4

38 Stat. L., 928, 930; Supra, 427.

Scott, The naval consulting board of the United States, 10-23 (1920); Supra, 322.

'Supra, 428-29.

by the Committee on Munitions. The rapid growth in importance of the Advisory Commission, added to the fact that the council itself was composed of heads of departments burdened with their own departmental affairs, gave it practically a coördinate status with the council.

Another important administrative war agency created prior to 1917, which, because of its permanent character, has also been discussed in the foregoing chapter, was the United States Shipping Board, established by act of September 7, 1916. To enable this board to carry out its functions with respect to the acquisition by construction, purchase, lease, or charter, of vessels suitable for use as naval auxiliaries in time of war, the act of 1916 authorized the organization of one or more corporations to have charge of this work. In the exercise of this authority, the United States Shipping Board Emergency Fleet Corporation was organized on April 16, 1917, under the laws of the District of Columbia, to which the board delegated all of its powers with respect to the acquisition and operation of vessels."

Aircraft Board; Committee on Public Information. The importance of aircraft production led to the creation on April 12, 1917, by the Council of National Defense, of an Aircraft Production Board, which should coöperate with the officers of the army and navy, and of other departments interested in the production of aircraft. This board, which possessed only advisory powers and which had no legal status, was superseded by the Aircraft Board created by act of October 1, 1917. The chairman of the latter board was made Director of Aircraft Production by Executive order dated May 20, 1918, and issued under the authority of the Overman Act.' The urgent need for some agency to act as press censor and publicity agent for the government was recognized almost at the outset of American participation in the war by the creation of a Committee on Public Information on April 14, 1917,

Paxson, op. cit., 58-59; Emery and Williams, Governmental war agencies affecting business, 166-67 (1918).

'39 Stat. L., 728; Supra, 429. The powers of the board relating to the acquisition and operation of vessels were greatly enlarged by subsequent legislation. Cf. Willoughby, op. cit., 144-54.

Willoughby, op. cit., 331; 40 Stat. L., 296; Official Bulletin No. 315 (May 21, 1918), 1.