I have started the chart in 1938. The lower curve of the two curves on the chart shows the decline in personnel at the intermediate level which was referred to when Mr. Kingsley was testifying.

EMPLOYEES IN 1938 AND NUMBER AT END OF FISCAL YEAR 1948

The total number of employees in 1938, as indicated by this chart, was 2,130. The number of employees that we propose to have as of the end of this fiscal year is 361. That includes 161 employees in Washington, and 200 in the regional offices.

A little more than half of these reductions are due to the outright elimination of personnel, that is, abolition of positions. Slightly less than half is due to the transfer of positions, either to the operating bureaus or to the Federal Security Administrator's office. The upper line of the chart shows the personnel in the operating bureaus.

I should point out that this reduction in personnel has been progressive, and that it has not been forced upon the Social Security Administration by the Congress.

We have turned back, in the course of these years, between $25,000, 000 and $30,000,000. That is to say, we were not forced to make these cuts because of inadequate appropriations. Congress has been very generous.

Particularly from 1942 to 1944, we brought about a great reduction; and that was done by a job-saving program as a part of the war effort. It started in the Social Security Administration, and spread throughout the Government and throughout private industry.

A job ananlysis was made of every single position, and the ideas of the personnel, all the way down to the lowest classified clerk, were obtained in an effort to eliminate unnecessary positions. The total reduction in personnel was over 3,000.

The reduction in these consolidated services, from 1942 to 1944, was 637. That reduction represented abolition of positions, not transfers. ' Senator KNOWLAND. Now, what has been the situation of the agencies themselves during that period of time as to the number of jobs? Mr. ALTMEYER. What do you mean by "agencies?"

Senator KNOWLAND. I am referring to the various bureaus.

INCREASES IN PERSONNEL OF OPERATING BUREAUS

Mr. ALTMEYER. The upper line of the chart represents the increase of the personnel in the Bureaus. The large increase, I should point out, was in the Bureau of Old Age and Survivors Insurance, which is having an increase in work load as more beneficiaries are placed on the rolls.

WORK LOADS OF BUREAUS OF OLD AGE AND SURVIVORS INSURANCE

Senator KNOWLAND. If you do not have it available, can you prepare and put into the record at this point information as to what the case load has been in the Old Age and Survivors Insurance Bureau. Mr. ALTMEYER. Yes; Senator.

(The information is as follows:)

Work loads of the Bureau of Old-Age and Survivors Insurance

1 The fiscal year 1941 was the first full year in which monthly benefits were paid under the Social Security Act as amended in 1939.

2. Estimated.

CHART ON PERSONNEL

Senator KNOWLAND. The chart you have referred to, Mr. Altmeyer, will appear in the record at this point.

Senator KNOWLAND. Will you proceed, Mr. Altmeyer?

EFFECT OF BILL AS PASSED BY HOUSE

Mr. ALTMEYER. Mr. Chairman, and members of the committee, I have had the privilege of appearing before this body for 15 consecutive years in connection with annual appropriation bills. However, this is the first time that I do with a feeling that the appropriation bill under discussion is a matter of life and death as regards the administration of the Social Security Act. In my opinion, the appropriation bill proposes to do three things which will have a devastating effect on social security:

1. It breaks off unemployment insurance from the rest of the socialsecurity program.

2. It wipes out all field supervisory staff for the Social Security Administration.

3. It decimates the staff engaged in carrying on essential consolidated services for the entire social-security program.

As you know, the Federal Security Agency was created in 1939 to bring together the various agencies of the Government dealing with social security, education, health, and other activities affecting the well-being of the people of this country. It was considered essential at that time, and I believe it is still essential, that all of the socialsecurity activities be grouped together within the Federal Security Agency. Until 1946 the Social Security Board continued to exist within the Federal Security Agency. At that time, it was replaced with the Commissioner for Social Security.

The Social Security Administration is only one of several groups of bureaus in the charge of an official who reports to the Federal Security Administrator. The other group of bureaus which is most closely analogous to the Social Security Administration is that which

Estimate (Rumber of positions included in revised 1949 estimates.)

forms the United States Public Health Service. Through grouping related bureaus in this manner it is possible for the Federal Security Administrator to maintain a simple form of organization and an effective chain of command.

ORGANIZATION OF SOCIAL SECURITY ADMINISTRATION

Senator KNOWLAND. Mr. Altmeyer, I wonder if you could prepare for us and have inserted in the record at this point, a simplified organization chart of your organization, showing the relationship of each of these bureaus to the top agency. I think such an organization chart would be helpful to the committee, and I think it would be helpful to the Senate when it is considering the bill.

Mr. ALTMEYER. Yes, sir. It is a very simple form of organization with, only four operating bureaus and two staff units.

(The organization chart is on page 55.)

Mr. ALTMEYER. What is of paramount importance as far as the advancement of social security is concerned is that this form of organization makes certain that interrelated activities of the various bureaus dealing with segments of the social-security program will be properly coordinated and focused to achieve their common objective.

IMPORTANCE OF SOCIAL SECURITY PROGRAM

I am sure that it is not necessary for me to emphasize to this committee the importance of the social-security program in promoting the well-being of the citizens of this country. However, some idea of its size is indicated by the fact that expenditures for social security in this country today amount to approximately $3,000,000,000 a year. The program includes not only what has been termed the "largest insurance company in the world," namely, the Bureau of Old-Age and Survivors Insurance, but also various Federal-State programs which have been eminently successful. In my opinion the chief reason for the success of the social-security program is that Congress provided for a unified administration of the Social Security Act.

EFFECT OF REMOVING THE BUREAU OF EMPLOYMENT SECURITY FROM THE SOCIAL SECURITY ADMINISTRATION

I believe that the proposed transfer out of the Social Security Administration of the Bureau dealing with unemployment insurance is of far greater significance than a mere change in an internal organization of the Federal Security Agency. I believe that such a step would break up the coordinated and balanced development of social security in this country. I believe that it would be merely the beginning of a process which would put the four segments of the socialsecurity program-old-age and survivors' insurance, unemployment insurance, maternal and child health and welfare services, and public assistance-on a competitive basis, each program striving for special recognition without full regard for the needs of the others or for a balanced program.

I am sure that the Congress would not think of breaking up the various segments of the United States Public Health Service. I believe that there is even greater need for keeping together the various