ATTACHMENT VII.-Summary description of various bureau contacts with other governmental agencies-Continued ATTACHMENT VIII.-Results of a preliminary survey of building facilities for housing the departmental operations of the Bureau of Old-Age and Survivors Insurance in 9 cities during June and July 1941 1 Detroit: 66888-42-pt. 1-17 1 Surveys in Indianapolis and Columbus did not show any building containing as much as 500,000 square feet. 2 The names, addresses, and other information on each of these buildings were obtained under confidential arrangements. We will, however, be glad to furnish this confidential information if it is required. Both passenger and freight facilities. $688,605 when completed-88,000 garage. 3 Each. 6 Two-thirds of floor space. Ample passenger and freight. 7 One-half. 8 Reinforced concrete. 10 Percent. 11 Yes. 12 All. 13 Or possible 120,000. 14 First floor. 15 Warehouse section. 16 And granite. 17 Limited office space in. Mr. MANASCO. For efficiency, it should be in one building? Mr. MITCHELL. Yes, sir. Mr. MANASCO. If you could find a building in Chicago or in any other city that could house all of those people, would it impair the efficiency of the organization to move a majority of the employees to such city? I Mr. MITCHELL. We feel that it would very definitely. I say that despite the fact that the Board is highly decentralization-minded. think it has evidenced its interest in decentralization by the extent to which it has decentralized thus far. In our opinion, there are a number of quite valid reasons why, for a considerable period of time, it would be unwise to decentralize any more rapidly than the development of the organization would permit. This is the basis on which it has been decentralized thus far that is, as the policies are determined and the procedures and types of administration are refined to the point where they can be taken away from the headquarters set-up, they have been decentralized. It is the Board's intention to continue to do it that way. Because the work of the bureaus of the Social Security Board is so intimately related to other activities of the Government that are for the present centralized here, and, because we are now in a period of expansion and policy formulation, it seems to me highly necessary that all our activities should be housed close to the Board itself. Efficiency and economy also enter into the picture particularly with respect to the Bureau of Old-age and Survivors Insurance. Our survey of last July indicated that the minimum cost of moving that Bureau, depending on the city under consideration, would be about $1,500,000, up to $1,800,000. That would involve the moving expense, including the personnel, and also would include the additional cost that would arise through the necessity of employing temporary personnel for the hiatus that would occur during the moving period. (Estimates are provided on page 8 and attachment II of the forementioned memorandum dated July 22, 1941.) That, as you may realize, is a tremendous operation. There are wage records maintained for 59,000,000 potential beneficiaries under the act. They are currently handling daily a claim load of between 1,500 and 2,000 claims. I might interpolate here that this volume of work is now being handled under extreme difficulty, because the claim adjudication work is performed in Washington while the wage records are maintained in Baltimore. With respect to each claim, it is, of course, necessary to have the adjudication files and the claim files together, and if they are 40 miles apart there is more difficulty of course, in handling them than if they were 40 feet apart, as they should be. Mr. MANASCO. Do you find that the cost of the removal of a large part of the Social Security Board, or a large number of its employees, to Baltimore, has caused an increase in transportation, telegraph, and telephone costs, which is necessitated because of the need for personal communication with the Board members here on the part of the division chiefs in Baltimore? Mr. MITCHELL. Yes, sir; unquestionably. There is a considerable increase in the cost by having the organizations separated even by 40 miles. |