U.S. CIVIL SERVICE COMMISSION, DEAR MR. : I am sorry that you consider the completion of the "Statement of Employment and Financial Interests" and the minority group status questionnaire as an intrusion into your private affairs that necessitates a letter of protest. I would like to explain to you why we in the Civil Service Commission believe these are reasonable and proper means of assuring good government and are in no sense detrimental to the rights of Federal employees. Each of these inquiries is designed to aid the Government as an employer in carrying out its respon sibilities under law and in accordance with public policy. By this I refer, in regard to the Statement of Employment and Financial Interest, to the provisions in law, in Executive order, and in the regulations of every agency in the executive branch to promote ethical conduct and to prevent conflicts of interest. In addition, the Statement is also intended to assist the employee who completes it in avoiding any unwitting involvement in a conflicts-of-interest situation. With respect to the questionnaire concerning minority group status, we feel it is essential to have this information about the Federal workforce in order to evaluate the success of the Government's policy of equal opportunity in employment. I can, of course, understand that you consider it an intrusion into your private affairs to divulge any outside employment you may have and to list your financial interests. Nevertheless, I do believe that each of us in service to our Government must recognize that as public employment involves a public trust the requirement for this information is both reasonable and proper. I am sure you understand that the information given in the Statement is held in strict confidence by those in your agency authorized to review it; and that the Statement itself requests only information we feel is truly necessary. The completion of the minority group status questionnaire is voluntary on the part of Federal employees. If you or any employee feels deeply against completing it, you are under no obligation to do so. I do, however, hope that before declining to complete it you will give consideration to our need for the information it will produce. It is the best judgment of those who have studied the matter of equal employment opportunity that no worthwhile program to eliminate discrimination can exist without reliable statistical information. This is all we seek. I hope this letter will let you see our side of these matters and will convince you of our sincerity of purpose and of the proper spirit in which we are carrying out these important programs. Sincerely yours, Senator SAM J. ERVIN, Jr., JOHN W. MACY, Jr., Chairman. DEAR SENATOR ERVIN: I thought that the inclosed editorial from a local paper would be of interest to you and your staff. It is reassuring to note that the average federal employee does have some outspoken defenders in the Congress. Have also noted several other indorsements of your proposd bill in other publications such as the Federal Employees News Digest of August 22, 1966. The inclosed extract copy of the Fort Monmouth News shows how Electronics Command directed all employees grade GS-13 and higher to complete and submit DD Form 1555. If your office doesn't have a copy of that form I will send one on request. Briefly, it is a Financial Interest questionnaire wherein the employee must list stocks owned, debts etc. It should be noted that the parent organization made the same arbitrary decision that all GS-13s and higher, whether engaged in procurement or not must submit Form DD 1555. Namely USAMC, Washington, D.C. At Fort Monmouth, completed forms were submitted without benefit of cover. handled and no doubt read by sundry employees who had no need to know personal affairs of employees. There is no guarantee that such forms will be retained in confidence and no indication how and when a form will be destroyed. Incidentally, Fort Monmouth has already notified some employees that the information on the forms must be up dated every three months. Thank you for your sincere interest in federal employees who are as you known more vulnerable to such inquisitions than his counterpart in industry. Lots of luck with your bill. Also all the best to you in case you do run for a full term. Sincerely, P.S.-When your bill comes up for action, I and others will write our own legislators to support same. Senator SAM J. ERVIN, AUGUST 16, 1966. DEAR SENATOR ERVIN: I have read in the newspapers where you and your committee on Constitutional Rights are concerned with the corroding of basic rights of Federal Employees. I am very happy to know that you are working on this, as this trend of making Government employees third rate citizens seems to be happening at an accelerating pace. I am particularly upset about having to fill out DD Form 1555 (see enclosure). This is a matter of principle! I am thus losing my rights of privacy as a free man and citizen of these United States. My dignity as a human being is being degraded. I can understand the concern about conflict of interest, and believe that an employee should disqualify himself when there is a question of possible conflict of interest. Filling out DD Form 1555 is no way of guaranteeing honesty on the part of responsible employees, it, in fact, shifts the responsibility to someone else, so that a man may not have to live and suffer with his own conscience, if he is tempted into doing something that is dishonest. I have been a Government servant for a long time and have lived under many of the rules, and most were reasonable, but the present trend, I think, is going too far so that the Government will stand to lose many capable people. I work at the U.S. Navy Underwater Sound Laboratory in New London, Connecticut. My position is that of a Supervisory Physicist, GS-14 and I am Head of the Sonar Transducer Division. I have been a Physicist at the Underwater Sound Laboratory since March 1947. Prior to that I was an Officer in the Naval Reserve with active duty in World War II from August 1942 to March 1946. For two years and four months I was a Radar Officer on the cruiser USS Columbia (CL56) which participated in many combat actions in the south and central Pacific Oceans. When my active duty was completed in March 1946, I had the rank of a Lieutenant, File No. 131290. I have presented this information on myself to show that I have over many years lived and enjoyed working under reasonable regulations. The present trend is going too far, and I can still get excited about a matter of principle. If there is any way that I can help in your investigation into the loss of basic rights of Government employees, I would be pleased to assist. Sincerely yours, [From the Washington Post, May 10, 1965] STANDARDS SET ON GIFTS, FAVORS-JOHNSON ORDERS AIDS TO LIST FINANCES (By Edward T. Folliard, Washington Post Staff Writer) President Johnson has ordered all top officials in the Executive Branch to file statements of their outside financial interests with the Civil Service Commission. At the same time, Mr. Johnson set down strict standards of conduct for other Government employes. He did this in an executive order signed Saturday and made public by the White House today. It marks the first time that a President has asked his appointees to file statements of their holdings, although such information has sometimes come out before Senate committees. About 200 officials are affected immediately-Cabinet officers, agency heads, presidential appointees at the White House, and each full-time member of a committee, board or commission appointed by the President. In his executive order, Mr. Johnson Directed the Civil Service Commission to decide what officials just below the agency heads should be required to file statements of their outside financial interests. About 2000 are expected to fall into this category. The executive order, which is titled Standards of Ethical Conduct for Government Officers and Employes, supersedes two executive orders issued in the Kennedy Administration, in 1961 and 1963, and one issued by President Eisenhower in 1954. It affects 2.5 million Government employes and lays down limitations on the acceptance of gifts, entertainment and favors by Executive Branch personnel. It also deals with outside employment or "moonlighting." In a statement made public along with the order, President Johnson said: "Government personnel bear a special responsibility to be fair and impartial in their dealings with those who have business with the Government. We cannot tolerate conflicts of interest or favoritism-or even conduct which gives the appearance that such actions are occurring-and it is our intention to see that this does not take place in the Federal Government. "I have, therefore, today signed an executive order which codifies, clarifies and strengthens the standards of ethical conduct for Executive Branch personnel." Mr. Johnson praised the high standards of honesty, integrity and impartiality in the Federal Government, and went on to say: "Although the overwhelming majority of Federal employes experience absolutely no problem in this regard, there are some whose duties on occasion place them in difficult or awkward situations, and thus the order issued today lays down general guidelines and standards of conduct as clearly as possible. "In large measure, the special problems faced by Federal employes lie in the area of judgment, propriety and good taste. Obviously, these cannot be legislated or prescribed by order or regulation. "I am confident, however, that the executive order will direct the attention of both Federal employes and those who do business with the Federal Government to this sometimes difficult area. In drafting the order, every effort has been made to take into account the rights and privileges of Federal employes and, on the other hand, the right of the public to have confidence in the fairness and integrity of government personnel." SUBJECTIVE JUDGMENT Mr. Johnson said that one of the main purposes of his order was to encourage Federal workers faced with questions involving a subjective judgment to seek counsel and guidance. "Thus." he said, "the chairman of the Civil Service Commission has been instructed to work with each department and agency head to establish within his organization designated individuals who can provide the guidance and interpretation necessary to relate general principles to specific situations." The order assigns central responsibility to the Civil Service Commission for issuing government-wide regulations implementing the order and for reviewing supplementary agency regulations. Part One of the order states the general Government policy regarding the ethical conduct expected of all officials and employes. Part Two sets forth standards governing the conduct of Executive Branch personnel with specific attention given to acceptance of gifts, entertainment and favors; outside employment, teaching and writing; and the use of Government information for private personal gain. The order would have no bearing on a case like that of Bobby Baker, it was pointed out, because Baker worked for the Legislative Branch. [From the New York Times, May 10, 1966] JOHNSON ORDERS TOP AIDS TO FILE FINANCE REPORTS-ACCOUNTINGS ALSO DUE IN 90 DAYS FROM 2,000 INVOLVED IN GOVERNMENT CONTRACTS Ethics Code Bolstered-All U.S. Employees Told Not to Accept Gifts-President Denounces 'Favoritism' (By Charles Mohr) WASHINGTON, May 9.-Top Government officials who are directly responsible to President Johnson were ordered today to file statements of their financial interests within 90 days. In an Executive order, Mr. Johnson also codified and strengthened standards of ethical conduct for all employes of the executive branch and members of the military forces. The President, in a special statement, declared: "We cannot tolerate conflicts of interest or favoritism-or even conduct which gives the appearance that such actions are occurring-and it is our intention to see that this does not take place in the Federal Government." RULES ARE CLARIFIED The new regulations are much like former ones but meant to be clearer. They prohibit a Federal employe from accepting gifts from those dealing with the Government except in very special circumstances, but do not prohibit him from accepting lunch or dinner entertainment. Individual departments, such as the Defense Department, are permitted to continue stricter rules, however. The Defense Department for example, prohibits contract officers from accepting a martini or a free lunch from a defense contractor. The President's action followed by less than three weeks the resignation on April 22 of Assistant Secretary of Commerce Herbert W. Klotz, who had profited from an indirect inside tip about stock of the Texas Gulf Sulphur Company. Government sources, however, said the Executive order was not triggered by any "specific situation" and had been in preparation for a long time. FINANCIAL REPORTS NEW The major innovation in the order is the requirement of financial statements from the heads of all Federal agencies and of Presidential appointees-such as special assistants in the White House-who report directly to the President. The financial reports will be made to John W. Macy Jr., chairman of the Civil Service Commission, who has been given over-all responsibility for coordinating and directing Government ethics programs. About 2,000 important policymakers and men involved in making and supervising Government contracts will be required to make financial statements to their agency or department heads, as well as the 200 officials who are subordinate only to the President. The financial statements will not be made public. Mr. Macy will report any apparent conflict of interest to the President. The statements are to include lists of stocks and other assets held by the official, his wife or children rather than a full accounting of amounts and value. If the official is dealing with a company on the list, he would almost certainly be required to give a full accounting of his holdings. An official source said Mr. Johnson himself intended to make a financial statement to Mr. Macy, although his is not required. The Executive order does not attempt to make detailed instructions in every given circumstance because, as Mr. Johnson said, most problems "lie in the area of judgment, propriety and good taste" and cannot be anticipated by watertight rules. "One of the main purposes of the Executive order is to encourage individuals faced with questions involving subjective judgment to seek counsel and guidance," Mr. Johnson said. If agency heads themselves are uncertain of what guidance to offer, Mr. Macy is to provide them with interpretation. Although the rules prohibit accepting gifts from those dealing with the Government, it authorizes agency heads to make some exceptions if the giver has an "obvious family or personal relationship" and if it is clear that this relationship is the motive for the gift. Federal employes are also prohibited from outside employment, including, teaching, lecturing and writing that might result in a conflict "or an apparent conflict" with their duties. The order, however, adds that, in general, teaching, lecturing and writing are to be encouraged. The rules provide that employes may not have financial interests that "conflict substantially," or appear to do so, with their duties, but this might not prohibit small stock holdings in companies involved in the man's work. [From the Washington Star, May 10, 1965] U.S. OFFICIALS ORDERED TO LIST OWN FINANCES-JOHNSON ALSO ISSUES STIFF NEW RULES ON ETHICAL CONDUCT IN GOVERNMENT (By Orr Kelly, Star staff writer) Every top government official will have to submit a complete list of his financial holdings and his business associations under a stiff new executive order on ethical conduct issued by President Johnson. In addition to the original reports, which must be submitted within 90 days, each top official must bring his report up to date every three months. The 7-page order issued yesterday also pulls together a host of earlier rules designed to avoid conflicts of interest and spells out what government employes may and may not do. For the first time, the new order brings together under one authority-the Civil Service Commission-the responsibility for establishing and enforcing rules designed to avoid conflict of interest. COVERS 5 MILLION The general rules on ethical conduct apply to all 2.5 million employees of the executive branch of the government and the some 2.5 million members of the armed forces. The rigid new rules on reporting of financial interests apply to about 200 Cabinet officers and other top level government officials. Under the new rules, they will have to submit their reports to the chairman of the Civil Service Commission, who will tell the President of any possible conflict of interest. Otherwise, the reports will be confidential even from members of Congress. In addition to top-level government officials, about 2,000 other officials, such as assistant and deputy secretaries of the various departments, will be required to submit financial reports to their superiors under rules laid down by the Civil Service Commission. THE PERPETUAL PROBLEM At a White House background briefing on the new order, a government official, asked if the order would solve all of the government's conflict-of-interest problems, laughed ruefully and said: "That's a problem that will always be with us." But the new rules, he added, should make it easier for government workers to know what is expected of them. Work on the new order has been under way since about the first of the year and was not triggered by any specific event or by any special concern over a decline in governmental ethics, officials said. In a statement accompanying the order, President Johnson said: "The unusually high standards of honesty, integrity, and impartiality of United States government employes are cause for pride on the part of all Americans, for unquestionably they are among the highest ever attained by any government-national or local-that has ever existed." A major feature of the new order will be a provision for the designation of a person within each department "who can provide the guidance and interpretation necessary to relate general principles to specific situations." NO PENALTIES LISTED No penalties are included in the new order although there are penalties for certain kinds of unethical behavior contained in existing laws. The new executive order is clearly designed to help avoid conflict of interest rather than to catch those guilty of acting unethically. Reporters asked how the new rules would have applied to Herbert W. Klotz, who recently resigned as assistant secretary of commerce for administration after it had been revealed that he had profited by speculating in the stock market on the basis of a tip he received from sources not connected with his official duties. The new rules, a government official said, would not prevent speculating on the stock market. But they would have required Klotz to report to his superior on his new stock holdings no later than 90 days after his purchase. |