Message to the Congress Transmitting Reorganization Plan for the Interstate Commerce Commission.

To the Congress of the United States:

The Interstate Commerce Commission, oldest of the Federal regulatory agencies, has jurisdiction over 17,000 carriers--rail and motor, water and pipeline, express companies and freight forwarders. Its decisions help shape the scope and character of the Nation's transportation system.

But, as important as the Commission is, as extensive as its jurisdiction is, it is hampered by:

1. Lack of continuity: The Chairman of the Commission serves only a year, selected by annual rotation from among the eleven Commissioners. In no other major Federal regulatory agency is the President without the power to designate the Chairman.

2. Lack of leadership: The Chairman does not have vested in him by law the executive and administrative functions of the Commission. As a result there is no firm and c/ear legal responsibility for the management of the Commission's day-today affairs.

To change this situation, I am sending to the Congress today Reorganization Plan No. 1 of 1969, prepared in accordance with chapter 9 of title 5 of the United States Code.

1. CONTINUITY

The Chairman of the Interstate Commerce Commission is the Commission's spokesman, its key link to other agencies and the industry, the supervisor of its staff, and director of its internal operations. Yet today, despite the need for sustained leadership, the Chairman of this agency serves only one year. I know of no modern business that would tolerate the practice of annually rotating its chief executive.

To provide the necessary continuity of leadership in the conduct of the Commission's administrative affairs, I propose that the President be authorized to designate the Chairman of the Commission from among its members. This principle of good management has already been taken with respect to most other major Federal regulatory agencies. The time has come to apply it to the Interstate Commerce Commission.

2. LEADERSHIP

The administrative powers of the Chairman must be strengthened.

In 1961, the Commission delegated its administrative powers to its Chairman. However, unless and until the administrative powers are vested in the Chairman by law, statutory authority will remain dispersed among the Commissioners.

Almost 20 years ago the Hoover Commission emphasized that "Administration by a plural executive is universally regarded as inefficient." It then recommended that all administrative responsibility be assigned the chairmen of these regulatory agencies.

That recommendation is as sound today as it was then. It has already been applied to almost every other major Federal regulatory agency. I propose that administrative authority be vested in the Chairman of the Interstate Commerce Commission.

In sum, the reorganization plan provides continuity of leadership and vests responsibility for internal administrative functions in a chairman designated by the President, with safeguards to ensure that the Commission retains full control over policy and the direction of its regulatory programs. This does not affect the statutory provisions governing the exercise of quasi-legislative and quasi-judicial powers by the Commission and its employees to whom it has delegated the responsibility of hearing and deciding cases.

Each reorganization included in the plan is necessary to accomplish one or more of the purposes set forth in section 901 (a) of title 5 of the United States Code. In particular, the plan is responsive to section 901(a)(1), "to promote the better execution of the laws, the more effective management of the executive branch and of its agencies and functions, and the expeditious administration of the public business;" and section 901 (a) (3), "to increase the efficiency of the operations of the Government to the fullest extent practicable." This plan will help achieve those ends.

This plan should result in more efficient operation of the Commission. To itemize or aggregate resulting expenditure reductions under the plan is not practicable. I shall continue to explore other ways to make the Commission structure more effective.

I strongly recommend that the Congress permit this necessary reorganization plan to become effective.

RICHARD NIXON

The White House

July 22, 1969